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‘‘(8) FARM.—The term ‘farm’ means a farm 
that— 
‘‘(A) is under the general control of one 
operator; 
‘‘(B) has one or more owners; 
‘‘(C) consists of one or more tracts of land, 
whether or not contiguous; 
‘‘(D) is located within a county or region, 
as determined by the Secretary; and 
‘‘(E) may contain lands that are incidental 
to the production of perennial crops, including 
conserving uses, forestry, and livestock, as de-
termined by the Secretary.’’. 
(c) INDIAN TRIBE.—Section 1201(a) of the Food Se-
curity Act of 1985 (16 U.S.C. 3801(a)) is amended by 
inserting after paragraph (13), as redesignated by sub-
section (a)(1), the following new paragraph: 
‘‘(14) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4(e) of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b(e)).’’. 
(d) INTEGRATED PEST MANAGEMENT; LIVESTOCK; 
NONINDUSTRIAL PRIVATE FOREST LAND; PERSON AND 
LEGAL ENTITY.—Section 1201(a) of the Food Security 
Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting 
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after paragraph (15), as redesignated by subsection 
(a)(1), the following new paragraphs: 
‘‘(16) INTEGRATED PEST MANAGEMENT.—The 
term ‘integrated pest management’ means a sustain-
able approach to managing pests by combining bio-
logical, cultural, physical, and chemical tools in a 
way that minimizes economic, health, and environ-
mental risks. 
‘‘(17) LIVESTOCK.—The term ‘livestock’ means 
all animals raised on farms, as determined by the 
Secretary. 
‘‘(18) 
NONINDUSTRIAL
PRIVATE
FOREST 
LAND.—The term ‘nonindustrial private forest land’ 
means rural land, as determined by the Secretary, 
that— 
‘‘(A) has existing tree cover or is suitable 
for growing trees; and 
‘‘(B) is owned by any nonindustrial private 
individual, group, association, corporation, In-
dian tribe, or other private legal entity that has 
definitive decisionmaking authority over the 
land. 
‘‘(19) PERSON AND LEGAL ENTITY.—For pur-
poses of applying payment limitations under subtitle 
D, the terms ‘person’ and ‘legal entity’ have the 
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meanings given those terms in section 1001(a) of 
this Act (7 U.S.C. 1308(a)).’’. 
(e) SOCIALLY DISADVANTAGED FARMER OR RANCH-
ER.—Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended by inserting after para-
graph (22), as redesignated by subsection (a)(1), the fol-
lowing new paragraph: 
‘‘(23) SOCIALLY DISADVANTAGED FARMER OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term in sec-
tion 2501(e)(2) of the Food, Agriculture, Conserva-
tion, 
and 
Trade 
Act 
of 
1990 
(7 
U.S.C. 
2279(e)(2)).’’. 
(f) TECHNICAL ASSISTANCE.—Section 1201(a) of the 
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amend-
ed by inserting after paragraph (24), as redesignated by 
subsection (a)(1), the following new paragraph: 
‘‘(25) TECHNICAL
ASSISTANCE.—The term 
‘technical assistance’ means technical expertise, in-
formation, and tools necessary for the conservation 
of natural resources on land active in agricultural, 
forestry, or related uses. The term includes the fol-
lowing: 
‘‘(A) Technical services provided directly to 
farmers, ranchers, and other eligible entities, 
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such as conservation planning, technical con-
sultation, and assistance with design and imple-
mentation of conservation practices. 
‘‘(B) Technical infrastructure, including 
activities, processes, tools, and agency functions 
needed to support delivery of technical services, 
such as technical standards, resource inven-
tories, training, data, technology, monitoring, 
and effects analyses.’’. 
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RE-
LATED TO HIGHLY ERODIBLE LAND CON-
SERVATION. 
Section 1212 of the Food Security Act of 1985 (16 
U.S.C. 3812) is amended by striking subsection (f) and 
inserting the following new subsection: 
‘‘(f) GRADUATED PENALTIES.— 
‘‘(1) INELIGIBILITY.—No person shall become 
ineligible under section 1211 for program loans, pay-
ments, and benefits as a result of the failure of the 
person to actively apply a conservation plan, if the 
Secretary determines that the person has acted in 
good faith and without an intent to violate this sub-
title. 
‘‘(2) ELIGIBLE REVIEWERS.—A determination 
of the Secretary, or a designee of the Secretary, 
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under paragraph (1) shall be reviewed by the appli-
cable— 
‘‘(A) State Executive Director, with the 
technical concurrence of the State Conserva-
tionist; or 
‘‘(B) district director, with the technical 
concurrence of the area conservationist. 
‘‘(3) PERIOD FOR IMPLEMENTATION.—A person 
who meets the requirements of paragraph (1) shall 
be allowed a reasonable period of time, as deter-
mined by the Secretary, but not to exceed 1 year, 
during which to implement the measures and prac-
tices necessary to be considered to be actively apply-
ing the conservation plan of the person. 
‘‘(4) PENALTIES.— 
‘‘(A) APPLICATION.—This paragraph ap-
plies if the Secretary determines that— 
‘‘(i) a person has failed to comply 
with section 1211 with respect to highly 
erodible cropland, and has acted in good 
faith and without an intent to violate sec-
tion 1211; or 
‘‘(ii) the violation— 
‘‘(I) is technical and minor in na-
ture; and 
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‘‘(II) has a minimal effect on the 
erosion control purposes of the con-
servation plan applicable to the land 
on which the violation has occurred. 
‘‘(B) REDUCTION.—If this paragraph ap-
plies under subparagraph (A), the Secretary 
shall, in lieu of applying the ineligibility provi-
sions of section 1211, reduce program benefits 
described in section 1211 that the producer 
would otherwise be eligible to receive in a crop 
year by an amount commensurate with the seri-
ousness of the violation, as determined by the 
Secretary. 
‘‘(5) SUBSEQUENT CROP YEARS.—Any person 
whose benefits are reduced for any crop year under 
this subsection shall continue to be eligible for all of 
the benefits described in section 1211 for any subse-
quent crop year if, prior to the beginning of the sub-
sequent crop year, the Secretary determines that the 
person is actively applying a conservation plan ac-
cording to the schedule specified in the plan.’’. 
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RE-
LATED TO WETLAND CONSERVATION. 
Section 1222(h) of the Food Security Act of 1985 
(16 U.S.C. 3822(h)) is amended— 
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(1) by redesignating paragraph (2) as para-
graph (3); 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) ELIGIBLE REVIEWERS.—A determination 
of the Secretary, or a designee of the Secretary, 
under paragraph (1) shall be reviewed by the appli-
cable— 
‘‘(A) State Executive Director, with the 
technical concurrence of the State Conserva-
tionist; or 
‘‘(B) district director, with the technical 
concurrence of the area conservationist.’’; and 
(3) in paragraph (3) (as redesignated by para-
graph (1)), by inserting ‘‘be’’ before ‘‘actively’’. 
Subtitle B—Conservation Reserve 
Program 
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PRO-
GRAM. 
Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended— 
(1) by striking ‘‘2007 calendar year’’ and in-
serting ‘‘2012 fiscal year’’; and 
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(2) by inserting before the period the following: 
‘‘and to address issues raised by State, regional, and 
national conservation initiatives’’; and 
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CON-
SERVATION RESERVE. 
Section 1231(b) of the Food Security Act of 1985 
(16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘Farm Security and Rural 
Investment Act of 2002’’ and inserting ‘‘Food, 
Conservation, and Energy Act of 2008’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(2) in paragraph (4)— 
(A) in subparagraph (C), by striking ‘‘; or’’ 
and inserting a semicolon; 
(B) in subparagraph (D), by striking 
‘‘and’’ at the end and inserting ‘‘or’’; and 
(C) in subparagraph (E), by inserting ‘‘or’’ 
after the semicolon at the end. 
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CON-
SERVATION RESERVE. 
Section 1231(d) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)) is amended— 
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(1) by striking ‘‘2007 calendar years’’ and in-
serting ‘‘2009 fiscal years’’; 
(2) by striking ‘‘( 16 U.S.C.’’ and inserting 
‘‘(16 U.S.C.’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘During fiscal years 2010, 2011, and 2012, 
the Secretary may maintain up to 32,000,000 acres 
in the conservation reserve at any 1 time.’’. 
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY 
AREAS. 
Section 1231(f) of the Food Security Act of 1985 (16 
U.S.C. 3831(f)) is amended by striking ‘‘the Chesapeake 
Bay Region (Pennsylvania, Maryland, and Virginia)’’ and 
inserting ‘‘the Chesapeake Bay Region’’. 
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEG-
UMES. 
Subsection (g) of section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended to read as fol-
lows: 
‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 
‘‘(1) IN GENERAL.—For purposes of this sub-
chapter, alfalfa and other multi-year grasses and 
legumes in a rotation practice, approved by the Sec-
retary, shall be considered agricultural commodities. 
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‘‘(2) CROPPING HISTORY.—Alfalfa, when grown 
as part of a rotation practice, as determined by the 
Secretary, is an agricultural commodity subject to 
the cropping history criteria under subsection 
(b)(1)(B) for the purpose of determining whether 
highly erodible cropland has been planted or consid-
ered planted for 4 of the 6 years referred to in such 
subsection.’’. 
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF 
WETLAND AND BUFFER ACREAGE IN CON-
SERVATION RESERVE. 
(a) REVISED PROGRAM.— 
(1) IN GENERAL.—Title XII of the Food Secu-
rity Act of 1985 is amended by inserting after sec-
tion 1231 (16 U.S.C. 3831) the following new sec-
tion: 
‘‘SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WET-
LAND AND BUFFER ACREAGE IN CONSERVA-
TION RESERVE. 
‘‘(a) PROGRAM REQUIRED.— 
‘‘(1) IN GENERAL.—During the 2008 through 
2012 fiscal years, the Secretary shall carry out a 
program in each State under which the Secretary 
shall enroll eligible acreage described in subsection 
(b). 
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‘‘(2) PARTICIPATION
AMONG
STATES.—The 
Secretary shall ensure, to the maximum extent prac-
ticable, that owners and operators in each State 
have an equitable opportunity to participate in the 
program established under this section. 
‘‘(b) ELIGIBLE ACREAGE.— 
‘‘(1) WETLAND AND RELATED LAND.—Subject 
to subsections (c) and (d), an owner or operator may 
enroll in the conservation reserve, pursuant to the 
program established under this section, land— 
‘‘(A) that is wetland (including a converted 
wetland described in section 1222(b)(1)(A)) 
that had a cropping history during at least 3 of 
the immediately preceding 10 crop years; 
‘‘(B) on which a constructed wetland is to 
be developed that will receive flow from a row 
crop agriculture drainage system and is de-
signed to provide nitrogen removal in addition 
to other wetland functions; 
‘‘(C) that was devoted to commercial pond- 
raised aquaculture in any year during the pe-
riod of calendar years 2002 through 2007; or 
‘‘(D) that, after January 1, 1990, and be-
fore December 31, 2002, was— 
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‘‘(i) cropped during at least 3 of 10 
crop years; and 
‘‘(ii) subject to the natural overflow of 
a prairie wetland. 
‘‘(2) BUFFER
ACREAGE.—Subject to sub-
sections (c) and (d), an owner or operator may en-
roll in the conservation reserve, pursuant to the pro-
gram established under this section, buffer acreage 
that— 
‘‘(A) with respect to land described in sub-
paragraph (A), (B), or (C) of paragraph (1)— 
‘‘(i) is contiguous to such land 
‘‘(ii) is used to protect such land; and 
‘‘(iii) is of such width as the Secretary 
determines is necessary to protect such 
land, taking into consideration and accom-
modating the farming practices (including 
the straightening of boundaries to accom-
modate machinery) used with respect to 
the cropland that surrounds such land; and 
‘‘(B) with respect to land described in sub-
paragraph (D) of paragraph (1), enhances a 
wildlife benefit to the extent practicable in 
terms of upland to wetland ratios, as deter-
mined by the Secretary. 
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are ineligible for payment, shall be covered by 
the conservation contract. 
‘‘(2) BUFFER ACREAGE.—The maximum size of 
any buffer acreage described in subsection (b)(2) 
that an owner or operator may enroll in the con-
servation reserve under this section shall be deter-
mined by the Secretary in consultation with the 
State Technical Committee. 
‘‘(3) TRACTS.—Except for land described in 
subsection (b)(1)(C) and buffer acreage related to 
such land, the maximum size of any eligible acreage 
described in subsection (b)(1) in a tract of an owner 
or operator enrolled in the conservation reserve 
under this section shall be 40 acres. 
‘‘(e) DUTIES OF OWNERS AND OPERATORS.—During 
the term of a contract entered into under the program 
established under this section, an owner or operator shall 
agree— 
‘‘(1) to restore the hydrology of the wetland 
within the eligible acreage to the maximum extent 
practicable, as determined by the Secretary; 
‘‘(2) to establish vegetative cover (which may 
include emerging vegetation in water and bottom-
land hardwoods, cypress, and other appropriate tree 
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species) on the eligible acreage, as determined by the 
Secretary; 
‘‘(3) to a general prohibition of commercial use 
of the enrolled land; and 
‘‘(4) to carry out other duties described in sec-
tion 1232. 
‘‘(f) DUTIES OF THE SECRETARY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), in return for a contract entered 
into under this section, the Secretary shall— 
‘‘(A) make payments to the owner or oper-
ator based on rental rates for cropland; and 
‘‘(B) provide assistance to the owner or op-
erator in accordance with sections 1233 and 
1234. 
‘‘(2) CONTRACT OFFERS AND PAYMENTS.—The 
Secretary shall use the method of determination de-
scribed in section 1234(c)(2)(B) to determine the ac-
ceptability of contract offers and the amount of rent-
al payments under this section. 
‘‘(3) INCENTIVES.—The amounts payable to 
owners and operators in the form of rental payments 
under contracts entered into under this section shall 
reflect incentives that are provided to owners and 
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operators to enroll filterstrips in the conservation re-
serve under section 1234.’’. 
(2) REPEAL OF SUPERCEDED PROGRAM.—Sec-
tion 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended— 
(A) by striking subsection (h); and 
(B) by redesignating subsections (i) and (j) 
as subsections (h) and (i), respectively. 
(b) CONFORMING CHANGES TO EMERGENCY FOR-
ESTRY CONSERVATION RESERVE PROGRAM.—Subsection 
(k) of section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended— 
(1) by striking ‘‘(k) EMERGENCY FORESTRY 
CONSERVATION RESERVE PROGRAM.—’’ and insert-
ing the following: 
‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RE-
SERVE PROGRAM.’’; 
(2) by striking ‘‘subsection’’ each place it ap-
pears (other than paragraph (3)(C)(ii)) and insert-
ing ‘‘section’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c), respectively; 
(4) in subsection (a), as so redesignated, by re-
designating subparagraphs (A) and (B) as para-
graphs (1) and (2), respectively; and 
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(5) in subsection (c), as so redesignated— 
(A) by redesignating subparagraphs (A) 
through (I) as paragraphs (1) through (9), re-
spectively; 
(B) in paragraph (1), as so redesignated, 
by striking ‘‘subparagraph (B)’’ and ‘‘subpara-
graph (G)’’ and inserting ‘‘paragraph (2)’’ and 
‘‘paragraph (7)’’, respectively; 
(C) in paragraph (3), as so redesignated— 
(i) by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respec-
tively; and 
(ii) by striking ‘‘subsection (d)’’ and 
inserting ‘‘section 1231(d)’’; 
(D) in paragraph (4), as so redesignated, 
by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; 
(E) in paragraph (5), as so redesignated— 
(i) 
by 
redesignating 
clauses 
(i) 
through (v) as subparagraphs (A) through 
(E), respectively, and subclauses (I) and 
(II) as clauses (i) and (ii), respectively; 
(ii) in subparagraph (B), as so redes-
ignated, by striking ‘‘clause (i)(I)’’ and in-
serting ‘‘subparagraph (A)(i)’’; and 
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(iii) in subparagraph (C), as so redes-
ignated, by striking ‘‘clause (i)(II)’’ and in-
serting ‘‘subparagraph (A)(ii)’’; and 
(F) in paragraph (9), as so redesignated, 
by redesignating clauses (i) through (iii) as sub-
paragraphs (A) through (C), respectively, and 
subclauses (I) through (III) as clauses (i) 
through (iii), respectively. 
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER 
CONSERVATION RESERVE CONTRACTS. 
Section 1232(a) of the Food Security Act of 1985 
(16 U.S.C. 3832(a)) is amended— 
(1) by redesignating paragraphs (5) through 
(10) as paragraphs (6) through (11), respectively; 
and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) to undertake management on the land as 
needed throughout the term of the contract to imple-
ment the conservation plan;’’. 
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SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COM-
MERCIAL USE OF FORAGE ON ENROLLED 
LAND AND INSTALLATION OF WIND TUR-
BINES. 
(a) GENERAL PROHIBITION; EXCEPTIONS.—Section 
1232(a) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)) is amended by striking paragraph (8), as redes-
ignated by section 2107, and inserting the following new 
paragraph: 
‘‘(8) not to conduct any harvesting or grazing, 
nor otherwise make commercial use of the forage, on 
land that is subject to the contract, nor adopt any 
similar practice specified in the contract by the Sec-
retary as a practice that would tend to defeat the 
purposes of the contract, except that the Secretary 
may permit, consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during nesting seasons for birds in the area)— 
‘‘(A) managed harvesting (including the 
managed harvesting of biomass), except that in 
permitting managed harvesting, the Secretary, 
in coordination with the State technical com-
mittee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
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‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted; 
‘‘(B) harvesting and grazing or other com-
mercial use of the forage on the land that is 
subject to the contract in response to a drought 
or other emergency; 
‘‘(C) routine grazing or prescribed grazing 
for the control of invasive species, except that 
in permitting such routine grazing or prescribed 
grazing, the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stock-
ing rates for the land that are suitable for 
continued routine grazing; and 
‘‘(ii) shall establish the frequency dur-
ing which routine grazing may be con-
ducted, taking into consideration regional 
differences such as— 
‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
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‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(D) the installation of wind turbines, ex-
cept that in permitting the installation of wind 
turbines, the Secretary shall determine the 
number and location of wind turbines that may 
be installed, taking into account— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land; 
‘‘(ii) the extent to which the land con-
tains wildlife and wildlife habitat; and 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter;’’. 
(b) RENTAL PAYMENT REDUCTION.—Section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) RENTAL PAYMENT REDUCTION FOR CERTAIN 
AUTHORIZED USES OF ENROLLED LAND.—In the case of 
an authorized activity under subsection (a)(8) on land that 
is subject to a contract under this subchapter, the Sec-
retary shall reduce the rental payment otherwise payable 
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under the contract by an amount commensurate with the 
economic value of the authorized activity.’’. 
SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, 
WINDBREAKS, SHELTERBELTS, AND WILD-
LIFE CORRIDORS. 
Section 1234(b) of the Food Security Act of 1985 
(16 U.S.C. 3834(b)) is amended by striking paragraph (3) 
and inserting the following new paragraph: 
‘‘(3) TREES, 
WINDBREAKS, 
SHELTERBELTS, 
AND WILDLIFE CORRIDORS.— 
‘‘(A) APPLICABILITY.—This paragraph ap-
plies to— 
‘‘(i) land devoted to the production of 
hardwood trees, windbreaks, shelterbelts, 
or wildlife corridors under a contract en-
tered into under this subchapter after No-
vember 28, 1990; 
‘‘(ii) land converted to such produc-
tion under section 1235A; and 
‘‘(iii) land on which an owner or oper-
ator agrees to conduct thinning authorized 
by section 1232(a)(9), if the thinning is 
necessary to improve the condition of re-
sources on the land. 
‘‘(B) PAYMENTS.— 
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‘‘(i) PERCENTAGE.—In making cost 
share payments to an owner or operator of 
land described in subparagraph (A), the 
Secretary shall pay 50 percent of the rea-
sonable and necessary costs incurred by 
the owner or operator for maintaining 
trees or shrubs, including the cost of re-
planting (if the trees or shrubs were lost 
due to conditions beyond the control of the 
owner or operator) or thinning. 
‘‘(ii) DURATION.—The Secretary shall 
make payments as described in clause (i) 
for a period of not less than 2 years, but 
not more than 4 years, beginning on the 
date of— 
‘‘(I) the planting of the trees or 
shrubs; or 
‘‘(II) the thinning of existing 
stands to improve the condition of re-
sources on the land.’’. 
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT 
OFFERS, ANNUAL RENTAL PAYMENTS, AND 
PAYMENT LIMITATIONS. 
(a) EVALUATION AND ACCEPTANCE OF CONTRACT 
OFFERS.—Section 1234(c) of the Food Security Act of 
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1985 (16 U.S.C. 3834(c)) is amended by striking para-
graph (3) and inserting the following new paragraph: 
‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.— 
‘‘(A) EVALUATION OF OFFERS.—In deter-
mining the acceptability of contract offers, the 
Secretary may take into consideration the ex-
tent to which enrollment of the land that is the 
subject of the contract offer would improve soil 
resources, water quality, or wildlife habitat or 
provide other environmental benefits. 
‘‘(B) ESTABLISHMENT OF DIFFERENT CRI-
TERIA IN VARIOUS STATES AND REGIONS.—The 
Secretary may establish different criteria for 
determining the acceptability of contract offers 
in various States and regions of the United 
States based on the extent to which water qual-
ity or wildlife habitat may be improved or ero-
sion may be abated. 
‘‘(C) 
LOCAL
PREFERENCE.—In 
deter-
mining the acceptability of contract offers for 
new enrollments, the Secretary shall accept, to 
the maximum extent practicable, an offer from 
an owner or operator that is a resident of the 
county in which the land is located or of a con-
tiguous county if, as determined by the Sec-
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retary, the land would provide at least equiva-
lent conservation benefits to land under com-
peting offers.’’. 
(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED 
CASH RENTAL RATES.— 
(1) ANNUAL
ESTIMATES
REQUIRED.—Section 
1234(c) of the Food Security Act of 1985 (16 
U.S.C. 3834(c)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) RENTAL RATES.— 
‘‘(A) ANNUAL ESTIMATES.—The Secretary 
(acting through the National Agricultural Sta-
tistics Service) shall conduct an annual survey 
of per acre estimates of county average market 
dryland and irrigated cash rental rates for crop-
land and pastureland in all counties or equiva-
lent subdivisions within each State that have 
20,000 acres or more of cropland and 
pastureland. 
‘‘(B) PUBLIC
AVAILABILITY
OF
ESTI-
MATES.—The estimates derived from the an-
nual survey conducted under subparagraph (A) 
shall be maintained on a website of the Depart-
ment of Agriculture for use by the general pub-
lic.’’. 
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(2) FIRST SURVEY.—The first survey required 
by paragraph (5) of section 1234(c) of the Food Se-
curity Act of 1985 (16 U.S.C. 3834(c)), as added by 
subsection (a), shall be conducted not later than 1 
year after the date of enactment of this Act. 
(c) PAYMENT LIMITATIONS.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘made to a 
person’’ and inserting ‘‘received by a person or legal 
entity, directly or indirectly,’’; 
(2) by striking paragraph (2); and 
(3) in paragraph (4), by striking ‘‘any person’’ 
and inserting ‘‘any person or legal entity’’. 
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSI-
TION INCENTIVES FOR BEGINNING FARMERS 
OR RANCHERS AND SOCIALLY DISADVAN-
TAGED FARMERS OR RANCHERS. 
(a) CONTRACT MODIFICATION AUTHORITY.—Section 
1235(c)(1)(B) of the Food Security Act of 1985 (16 
U.S.C. 3835(c)(1)(B)) is amended— 
(1) in clause (ii), by striking ‘‘or’’ at the end; 
(2) by redesignating clause (iii) as clause (iv); 
and 
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(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) to facilitate a transition of land 
subject to the contract from a retired or 
retiring owner or operator to a beginning 
farmer or rancher or socially disadvan-
taged farmer or rancher for the purpose of 
returning some or all of the land into pro-
duction using sustainable grazing or crop 
production methods; or’’. 
(b) TRANSITION OPTION.—Section 1235 of the Food 
Security Act of 1985 (16 U.S.C. 3835) is amended by 
adding at the end the following new subsection: 
‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.— 
‘‘(1) DUTIES OF THE SECRETARY.—In the case 
of a contract modification approved in order to fa-
cilitate the transfer, as described in subsection 
(c)(1)(B)(iii), of land to a beginning farmer or 
rancher or socially disadvantaged farmer or rancher 
(in this subsection referred to as a ‘covered farmer 
or rancher’), the Secretary shall— 
‘‘(A) beginning on the date that is 1 year 
before the date of termination of the contract— 
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‘‘(i) allow the covered farmer or 
rancher, in conjunction with the retired or 
retiring owner or operator, to make con-
servation and land improvements; and 
‘‘(ii) allow the covered farmer or 
rancher to begin the certification process 
under the Organic Foods Production Act 
of 1990 (7 U.S.C. 6501 et seq.); 
‘‘(B) beginning on the date of termination 
of the contract, require the retired or retiring 
owner or operator to sell or lease (under a long- 
term lease or a lease with an option to pur-
chase) to the covered farmer or rancher the 
land subject to the contract for production pur-
poses; 
‘‘(C) require the covered farmer or rancher 
to develop and implement a conservation plan; 
‘‘(D) provide to the covered farmer or 
rancher an opportunity to enroll in the con-
servation stewardship program or the environ-
mental quality incentives program by not later 
than the date on which the farmer or rancher 
takes possession of the land through ownership 
or lease; and 
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‘‘(E) continue to make annual payments to 
the retired or retiring owner or operator for not 
more than an additional 2 years after the date 
of termination of the contract, if the retired or 
retiring owner or operator is not a family mem-
ber (as defined in section 1001A(b)(3)(B) of 
this Act) of the covered farmer or rancher. 
‘‘(2) REENROLLMENT.—The Secretary shall 
provide a covered farmer or rancher with the option 
to reenroll any applicable partial field conservation 
practice that— 
‘‘(A) is eligible for enrollment under the 
continuous 
signup 
requirement 
of 
section 
1231(h)(4)(B); and 
‘‘(B) is part of an approved conservation 
plan.’’. 
Subtitle C—Wetlands Reserve 
Program 
SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS 
RESERVE PROGRAM. 
Subsection (a) of section 1237 of the Food Security 
Act of 1985 (16 U.S.C. 3837) is amended to read as fol-
lows: 
‘‘(a) ESTABLISHMENT AND PURPOSES.— 
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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a wetlands reserve program to assist owners 
of eligible lands in restoring and protecting wet-
lands. 
‘‘(2) PURPOSES.—The purposes of the wetlands 
reserve program are to restore, protect, or enhance 
wetlands on private or tribal lands that are eligible 
under subsections (c) and (d).’’. 
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT 
METHODS. 
Section 1237(b) of the Food Security Act of 1985 
(16 U.S.C. 3837(b)) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) MAXIMUM ENROLLMENT.—The total num-
ber of acres enrolled in the wetlands reserve pro-
gram shall not exceed 3,041,200 acres.’’; 
(2) in paragraph (2), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Subject to paragraph (3), the 
Secretary’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In 
the case of acreage owned by an Indian tribe, the 
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Secretary shall enroll acreage into the wetlands re-
serve program through the use of— 
‘‘(A) a 30-year contract (the value of 
which shall be equivalent to the value of a 30- 
year easement); 
‘‘(B) restoration cost-share agreements; or 
‘‘(C) any combination of the options de-
scribed in subparagraphs (A) and (B).’’. 
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM 
AND LANDS ELIGIBLE FOR ENROLLMENT. 
(a) IN GENERAL.—Section 1237(c) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(c)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘2007 calendar’’ and in-
serting ‘‘2012 fiscal’’; and 
(B) by inserting ‘‘private or tribal’’ before 
‘‘land’’ the second place it appears; 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) such land is— 
‘‘(A) farmed wetland or converted wetland, 
together with the adjacent land that is function-
ally dependent on the wetlands, except that con-
verted wetland with respect to which the con-
version was not commenced prior to December 
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23, 1985, shall not be eligible to be enrolled in 
the program under this section; or 
‘‘(B) cropland or grassland that was used 
for agricultural production prior to flooding 
from the natural overflow of a closed basin lake 
or pothole, as determined by the Secretary, to-
gether (where practicable) with the adjacent 
land that is functionally dependent on the crop-
land or grassland; and’’. 
(b) CHANGE OF OWNERSHIP.—Section 1237E(a) of 
the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is 
amended by striking ‘‘in the preceding 12 months’’ and 
inserting ‘‘during the preceding 7-year period’’. 
(c) ANNUAL SURVEY AND REALLOCATION.—Section 
1237F of the Food Security Act of 1985 (16 U.S.C. 
3837f) is amended by adding at the end the following new 
subsection: 
‘‘(c) PRAIRIE POTHOLE REGION SURVEY AND RE-
ALLOCATION.— 
‘‘(1) SURVEY.—The Secretary shall conduct a 
survey during fiscal year 2008 and each subsequent 
fiscal year for the purpose of determining interest 
and allocations for the Prairie Pothole Region to en-
roll eligible land described in section 1237(c)(2)(B). 
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‘‘(2) ANNUAL
ADJUSTMENT.—The Secretary 
shall make an adjustment to the allocation for an in-
terested State for a fiscal year, based on the results 
of the survey conducted under paragraph (1) for the 
State during the previous fiscal year.’’. 
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASE-
MENTS. 
Section 1237A(b)(2)(B) of the Food Security Act of 
1985 (16 U.S.C. 3837a(b)(2)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking ‘‘; and’’ and in-
serting ‘‘; or’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(iii) to meet habitat needs of specific 
wildlife species; and’’. 
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WET-
LANDS RESERVE PROGRAM. 
Subsection (f) of section 1237A of the Food Security 
Act of 1985 (16 U.S.C. 3837a) is amended to read as 
follows: 
‘‘(f) COMPENSATION.— 
‘‘(1) DETERMINATION.—Effective on the date 
of the enactment of the Food, Conservation, and En-
ergy Act of 2008, the Secretary shall pay as com-
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pensation for a conservation easement acquired 
under this subchapter the lowest of— 
‘‘(A) the fair market value of the land, as 
determined by the Secretary, using the Uniform 
Standards of Professional Appraisal Practices 
or an area-wide market analysis or survey; 
‘‘(B) the amount corresponding to a geo-
graphical cap, as determined by the Secretary 
in regulations; or 
‘‘(C) the offer made by the landowner. 
‘‘(2) FORM
OF
PAYMENT.—Compensation for 
an easement shall be provided by the Secretary in 
the form of a cash payment, in an amount deter-
mined under paragraph (1) and specified in the 
easement agreement. 
‘‘(3) PAYMENT SCHEDULE FOR EASEMENTS.— 
‘‘(A) EASEMENTS VALUED AT $500,000 OR 
LESS.—For easements valued at $500,000 or 
less, the Secretary may provide easement pay-
ments in not more than 30 annual payments. 
‘‘(B) 
EASEMENTS
IN
EXCESS
OF 
$500,000.—For easements valued at more than 
$500,000, the Secretary may provide easement 
payments in at least 5, but not more than 30 
annual payments, except that, if the Secretary 
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determines it would further the purposes of the 
program, the Secretary may make a lump sum 
payment for such an easement. 
‘‘(4) RESTORATION AGREEMENT PAYMENT LIM-
ITATION.—Payments made to a person or legal enti-
ty, directly or indirectly, pursuant to a restoration 
cost-share agreement under this subchapter may not 
exceed, in the aggregate, $50,000 per year. 
‘‘(5) ENROLLMENT
PROCEDURE.—Lands may 
be enrolled under this subchapter through the sub-
mission of bids under a procedure established by the 
Secretary.’’. 
SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM 
AND RESERVED RIGHTS PILOT PROGRAM. 
Section 1237A of the Food Security Act of 1985 (16 
U.S.C. 3837a) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(h) WETLANDS RESERVE ENHANCEMENT PRO-
GRAM.— 
‘‘(1) PROGRAM
AUTHORIZED.—The Secretary 
may enter into 1 or more agreements with a State 
(including a political subdivision or agency of a 
State), nongovernmental organization, or Indian 
tribe to carry out a special wetlands reserve en-
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hancement program that the Secretary determines 
would advance the purposes of this subchapter. 
‘‘(2) RESERVED RIGHTS PILOT PROGRAM.— 
‘‘(A) 
RESERVATION
OF
GRAZING 
RIGHTS.—As part of the wetlands reserve en-
hancement program, the Secretary shall carry 
out a pilot program for land in which a land-
owner may reserve grazing rights in the war-
ranty easement deed restriction if the Secretary 
determines that the reservation and use of the 
grazing rights— 
‘‘(i) is compatible with the land sub-
ject to the easement; 
‘‘(ii) is consistent with the long-term 
wetland protection and enhancement goals 
for which the easement was established; 
and 
‘‘(iii) complies with a conservation 
plan. 
‘‘(B) DURATION.—The pilot program es-
tablished under this paragraph shall terminate 
on September 30, 2012.’’. 
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SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE 
UNDER WETLANDS RESERVE PROGRAM. 
Section 1237C of the Food Security Act of 1985 (16 
U.S.C. 3837c) is amended— 
(1) in subsection (a)(1), by inserting ‘‘including 
necessary maintenance activities,’’ after ‘‘values,’’; 
and 
(2) by striking subsection (c) and inserting the 
following new subsection: 
‘‘(c) RANKING OF OFFERS.— 
‘‘(1) CONSERVATION BENEFITS AND FUNDING 
CONSIDERATIONS.—When evaluating offers from 
landowners, the Secretary may consider— 
‘‘(A) the conservation benefits of obtaining 
an easement or other interest in the land; 
‘‘(B) the cost-effectiveness of each ease-
ment or other interest in eligible land, so as to 
maximize the environmental benefits per dollar 
expended; and 
‘‘(C) whether the landowner or another 
person is offering to contribute financially to 
the cost of the easement or other interest in the 
land to leverage Federal funds. 
‘‘(2) ADDITIONAL CONSIDERATIONS.—In deter-
mining the acceptability of easement offers, the Sec-
retary may take into consideration— 
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‘‘(A) the extent to which the purposes of 
the easement program would be achieved on the 
land; 
‘‘(B) the productivity of the land; and 
‘‘(C) the on-farm and off-farm environ-
mental threats if the land is used for the pro-
duction of agricultural commodities.’’. 
SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RE-
SERVE CONTRACTS AND AGREEMENTS. 
Section 1237D(c)(1) of the Food Security Act of 
1985 (16 U.S.C. 3837d(c)(1)) is amended— 
(1) by striking ‘‘The total amount of easement 
payments made to a person’’ and inserting ‘‘The 
total amount of payments that a person or legal en-
tity may receive, directly or indirectly,’’; and 
(2) by inserting ‘‘or under 30-year contracts’’ 
before the period at the end. 
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION 
FOR STATE AGREEMENTS FOR WETLANDS 
RESERVE ENHANCEMENT. 
Section 1237D(c) of the Food Security Act of 1985 
(16 U.S.C. 3837d(c)) is amended by striking paragraph 
(4). 
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SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NA-
TURE OF CONSERVATION EASEMENTS. 
(a) REPORT REQUIRED.—Not later than January 1, 
2010, the Secretary of Agriculture shall submit to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that evaluates the implications 
of the long-term nature of conservation easements granted 
under section 1237A of the Food Security Act of 1985 
(16 U.S.C. 3837a) on resources of the Department of Ag-
riculture. 
(b) INCLUSIONS.—The report required by subsection 
(a) shall include the following: 
(1) Data relating to the number and location of 
conservation easements granted under that section 
that the Secretary holds or has a significant role in 
monitoring or managing. 
(2) An assessment of the extent to which the 
oversight of the conservation easement agreements 
impacts the availability of resources, including tech-
nical assistance. 
(3) An assessment of the uses and value of 
agreements with partner organizations. 
(4) Any other relevant information relating to 
costs or other effects that would be helpful to the 
Committees referred to in subsection (a). 
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Subtitle D—Conservation 
Stewardship Program 
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—Chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 
is amended— 
(1) by redesignating subchapters B (farmland 
protection program) and C (grassland reserve pro-
gram) as subchapters C and D, respectively; and 
(2) by inserting after subchapter A the fol-
lowing new subchapter: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) CONSERVATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures that are de-
signed to address a resource concern. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
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ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a re-
source concern. 
‘‘(2) CONSERVATION MEASUREMENT TOOLS.— 
The term ‘conservation measurement tools’ means 
procedures to estimate the level of environmental 
benefit to be achieved by a producer in implementing 
conservation activities, including indices or other 
measures developed by the Secretary. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.— 
The term ‘conservation stewardship plan’ means a 
plan that— 
‘‘(A) identifies and inventories resource 
concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation ac-
tivities. 
‘‘(4) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a resource 
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concern that is identified at the State level, in con-
sultation with the State Technical Committee, as a 
priority for a particular watershed or area of the 
State. 
‘‘(5) PROGRAM.—The term ‘program’ means 
the conservation stewardship program established by 
this subchapter. 
‘‘(6) RESOURCE CONCERN.—The term ‘resource 
concern’ means a specific natural resource impair-
ment or problem, as determined by the Secretary, 
that— 
‘‘(A) represents a significant concern in a 
State or region; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities by producers on land eligible for enroll-
ment in the program. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of natural 
resource conservation and environmental manage-
ment required, as determined by the Secretary using 
conservation measurement tools, to improve and con-
serve the quality and condition of a resource con-
cern. 
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‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 
of fiscal years 2009 through 2012, the Secretary shall 
carry out a conservation stewardship program to encour-
age producers to address resource concerns in a com-
prehensive manner— 
‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining and managing 
existing conservation activities. 
‘‘(b) ELIGIBLE LAND.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (c), the following land is eligible for enroll-
ment in the program: 
‘‘(A) Private agricultural land (including 
cropland, grassland, prairie land, improved 
pastureland, rangeland, and land used for agro- 
forestry). 
‘‘(B) Agricultural land under the jurisdic-
tion of an Indian tribe. 
‘‘(C) Forested land that is an incidental 
part of an agricultural operation. 
‘‘(D) Other private agricultural land (in-
cluding cropped woodland, marshes, and agri-
cultural land used for the production of live-
stock) on which resource concerns related to ag-
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ricultural production could be addressed by en-
rolling the land in the program, as determined 
by the Secretary. 
‘‘(2) SPECIAL RULE FOR NONINDUSTRIAL PRI-
VATE FOREST LAND.—Nonindustrial private forest 
land is eligible for enrollment in the program, except 
that not more than 10 percent of the annual acres 
enrolled nationally in any fiscal year may be non-
industrial private forest land. 
‘‘(3) 
AGRICULTURAL
OPERATION.—Eligible 
land shall include all acres of an agricultural oper-
ation of a producer, whether or not contiguous, that 
are under the effective control of the producer at the 
time the producer enters into a stewardship con-
tract, and is operated by the producer with equip-
ment, labor, management, and production or cultiva-
tion practices that are substantially separate from 
other agricultural operations, as determined by the 
Secretary. 
‘‘(c) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land is not be eligible for enrollment in the 
program: 
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‘‘(A) Land enrolled in the conservation re-
serve program. 
‘‘(B) Land enrolled in the wetlands reserve 
program. 
‘‘(C) Land enrolled in the grassland re-
serve program. 
‘‘(2) CONVERSION TO CROPLAND.—Land used 
for crop production after the date of enactment of 
the Food, Conservation, and Energy Act of 2008 
that had not been planted, considered to be planted, 
or devoted to crop production for at least 4 of the 
6 years preceding that date shall not be the basis for 
any payment under the program, unless the land 
does not meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as de-
termined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli-
gible to participate in the conservation stewardship pro-
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gram, a producer shall submit to the Secretary for ap-
proval a contract offer that— 
‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
tract offer, is meeting the stewardship threshold for 
at least one resource concern; and 
‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 priority resource 
concern by the end of the stewardship contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the op-
eration of the producer at the time the contract 
offer is accepted by the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING
OF
APPLICATIONS.—In evalu-
ating contract offers made by producers to enter 
into contracts under the program, the Secretary 
shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application, based to the maximum ex-
tent practicable on conservation measurement 
tools; 
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‘‘(B) the degree to which the proposed con-
servation treatment on applicable priority re-
source concerns effectively increases conserva-
tion performance, based to the maximum extent 
possible on conservation measurement tools; 
‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet 
or exceed the stewardship threshold by the end 
of the contract; 
‘‘(D) the extent to which other resource 
concerns, in addition to priority resource con-
cerns, will be addressed to meet or exceed the 
stewardship threshold by the end of the con-
tract period; and 
‘‘(E) the extent to which the actual and 
anticipated environmental benefits from the 
contract are provided at the least cost relative 
to other similarly beneficial contract offers. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL
CRITERIA.—The Secretary 
may develop and use such additional criteria for 
evaluating applications to enroll in the program that 
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the Secretary determines are necessary to ensure 
that national, State, and local conservation priorities 
are effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a deter-
mination that a producer is eligible for the program under 
subsection (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conserva-
tion stewardship contract with the producer to enroll the 
land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) PROVISIONS.—The conservation steward-
ship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for 
each year of the conservation stewardship con-
tract under section 1238G(e); 
‘‘(B) require the producer— 
‘‘(i) to implement during the term of 
the conservation stewardship contract the 
conservation stewardship plan approved by 
the Secretary; 
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‘‘(ii) to maintain, and make available 
to the Secretary at such times as the Sec-
retary may request, appropriate records 
showing the effective and timely implemen-
tation of the conservation stewardship con-
tract; and 
‘‘(iii) not to engage in any activity 
during the term of the conservation stew-
ardship contract on the eligible land cov-
ered by the contract that would interfere 
with the purposes of the conservation stew-
ardship contract; 
‘‘(C) permit all economic uses of the land 
that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control 
of the producer, including a disaster or related 
condition, as determined by the Secretary; and 
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‘‘(E) include such other provisions as the 
Secretary determines necessary to ensure the 
purposes of the program are achieved. 
‘‘(e) CONTRACT RENEWAL.—At the end of an initial 
conservation stewardship contract of a producer, the Sec-
retary may allow the producer to renew the contract for 
one additional five-year period if the producer— 
‘‘(1) demonstrates compliance with the terms of 
the existing contract; and 
‘‘(2) agrees to adopt new conservation activities, 
as determined by the Secretary. 
‘‘(f) MODIFICATION.—The Secretary may allow a 
producer to modify a stewardship contract if the Secretary 
determines that the modification is consistent with achiev-
ing the purposes of the program. 
‘‘(g) CONTRACT TERMINATION.— 
‘‘(1) VOLUNTARY
TERMINATION.—A producer 
may terminate a conservation stewardship contract 
if the Secretary determines that termination would 
not defeat the purposes of the program. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under this sub-
chapter if the Secretary determines that the pro-
ducer violated the contract. 
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‘‘(3) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of 
the program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments already received and assess 
liquidated damages. 
‘‘(4) CHANGE OF INTEREST IN LAND SUBJECT 
TO A CONTRACT.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (B), a change in the interest of a 
producer in land covered by a contract under 
this chapter shall result in the termination of 
the contract with regard to that land. 
‘‘(B) 
TRANSFER
OF
DUTIES
AND 
RIGHTS.—Subparagraph (A) shall not apply 
if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in land 
covered by a contract under the program, 
the transferee of the land provides written 
notice to the Secretary that all duties and 
rights under the contract have been trans-
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ferred to, and assumed by, the transferee; 
and 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program. 
‘‘(h) COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent 
means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et. seq.) while participating in a contract 
under this subchapter. 
‘‘(i) ON-FARM RESEARCH AND DEMONSTRATION OR 
PILOT TESTING.—The Secretary may approve a contract 
offer under this subchapter that includes— 
‘‘(1) on-farm conservation research and dem-
onstration activities; and 
‘‘(2) pilot testing of new technologies or innova-
tive conservation practices. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation 
goals of a contract under the conservation stewardship 
program, the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, one of which shall occur in 
the first quarter of each fiscal year; 
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‘‘(2) identify not less than 3 nor more than 5 
priority resource concerns in a particular watershed 
or other appropriate region or area within a State; 
and 
‘‘(3) develop reliable conservation measurement 
tools for purposes of carrying out the program. 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible acres under section 1238E(b)(1) to the total 
number of eligible acres in all States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural 
production in each State; 
‘‘(B) the degree to which implementation 
of the program in the State is, or will be, effec-
tive in helping producers address those needs; 
and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
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propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(d) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2008, and ending on 
September 30, 2017, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
12,769,000 acres for each fiscal year; and 
‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses associated with enrollment 
or participation in the program. 
‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide a payment under the program to 
compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the op-
eration of the producer at the time the contract 
offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the 
conservation stewardship payment shall be deter-
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mined by the Secretary and based, to the maximum 
extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer asso-
ciated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected environmental benefits as 
determined by conservation measurement tools. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the 
producer. 
‘‘(4) TIMING OF PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make payments as soon as practicable after Oc-
tober 1 of each fiscal year for activities carried 
out in the previous fiscal year. 
‘‘(B) ADDITIONAL ACTIVITIES.—The Sec-
retary shall make payments to compensate pro-
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ducers for installation of additional practices at 
the time at which the practices are installed 
and adopted. 
‘‘(f) SUPPLEMENTAL PAYMENTS
FOR RESOURCE- 
CONSERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide additional payments to pro-
ducers that, in participating in the program, agree 
to adopt resource-conserving crop rotations to 
achieve beneficial crop rotations as appropriate for 
the land of the producers. 
‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1), based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer 
shall agree to adopt and maintain beneficial re-
source-conserving crop rotations for the term of the 
contract. 
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‘‘(4) 
RESOURCE-CONSERVING
CROP
ROTA-
TION.—In this subsection, the term ‘resource-con-
serving crop rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource con-
serving crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need 
for irrigation. 
‘‘(g) PAYMENT LIMITATIONS.—A person or legal en-
tity may not receive, directly or indirectly, payments under 
this subchapter that, in the aggregate, exceed $200,000 
for all contracts entered into during any 5-year period, 
excluding funding arrangements with federally recognized 
Indian tribes or Alaska Native corporations, regardless of 
the number of contracts entered into under the program 
by the person or entity. 
‘‘(h) REGULATIONS.—The Secretary shall promul-
gate regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (g); and 
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‘‘(2) otherwise enable the Secretary to carry out 
the program. 
‘‘(i) DATA.—The Secretary shall maintain detailed 
and segmented data on contracts and payments under the 
program to allow for quantification of the amount of pay-
ments made for— 
‘‘(1) the installation and adoption of additional 
conservation activities and improvements to con-
servation activities in place on the operation of a 
producer at the time the conservation stewardship 
offer is accepted by the Secretary; 
‘‘(2) participation in research, demonstration, 
and pilot projects; and 
‘‘(3) the development and periodic assessment 
and evaluation of conservation plans developed under 
this subchapter.’’. 
(b) TERMINATION
OF
CONSERVATION
SECURITY 
PROGRAM
AUTHORITY; EFFECT
ON
EXISTING
CON-
TRACTS.—Section 1238A of the Food Security Act of 
1985 (16 U.S.C. 3838a) is amended by adding at the end 
the following new subsection: 
‘‘(g) PROHIBITION
ON CONSERVATION SECURITY 
PROGRAM
CONTRACTS; EFFECT
ON
EXISTING
CON-
TRACTS.— 
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‘‘(1) PROHIBITION.—A conservation security 
contract may not be entered into or renewed under 
this subchapter after September 30, 2008. 
‘‘(2) EXCEPTION.—This subchapter, and the 
terms and conditions of the conservation security 
program, shall continue to apply to— 
‘‘(A) conservation security contracts en-
tered into on or before September 30, 2008; 
and 
‘‘(B) any conservation security contract en-
tered into after that date, but for which the ap-
plication for the contract was received during 
the 2008 sign-up period. 
‘‘(3) EFFECT
ON
PAYMENTS.—The Secretary 
shall make payments under this subchapter with re-
spect to conservation security contracts described in 
paragraph (2) during the remaining term of the con-
tracts. 
‘‘(4) REGULATIONS.—A contract described in 
paragraph (2) may not be administered under the 
regulations issued to carry out the conservation 
stewardship program.’’. 
(c) REFERENCE TO REDESIGNATED SUBCHAPTER.— 
Section 1238A(b)(3)(C) of title XII of the Food Security 
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Act of 1985 (16 U.S.C. 3838a(b)(3)(C)) is amended by 
striking ‘‘subchapter C’’ and inserting ‘‘subchapter D’’. 
Subtitle E—Farmland Protection 
and Grassland Reserve 
SEC. 2401. FARMLAND PROTECTION PROGRAM. 
(a) DEFINITIONS.—Section 1238H of the Food Secu-
rity Act of 1985 (16 U.S.C. 3838h) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) any agency of any State or local gov-
ernment or an Indian tribe (including a farm-
land protection board or land resource council 
established under State law); or 
‘‘(B) any organization that— 
‘‘(i) is organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in 
clause (i), (ii), (iii), or (iv) of section 
170(h)(4)(A) of the Internal Revenue Code 
of 1986; 
‘‘(ii) is an organization described in 
section 501(c)(3) of that Code that is ex-
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empt from taxation under section 501(a) 
of that Code; and 
‘‘(iii) is— 
‘‘(I) described in paragraph (1) 
or (2) of section 509(a) of that Code; 
or 
‘‘(II) 
described 
in 
section 
509(a)(3), and is controlled by an or-
ganization 
described 
in 
section 
509(a)(2), of that Code.’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘that—’’ and inserting 
‘‘that is subject to a pending offer for pur-
chase from an eligible entity and—’’; and 
(ii) by striking clauses (i) and (ii) and 
inserting the following new clauses: 
‘‘(i) has prime, unique, or other pro-
ductive soil; 
‘‘(ii) contains historical or archae-
ological resources; or 
‘‘(iii) the protection of which will fur-
ther a State or local policy consistent with 
the purposes of the program.’’; and 
(B) in subparagraph (B)— 
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(i) in clause (iv), by striking ‘‘and’’ at 
the end; and 
(ii) by striking clause (v) and insert-
ing the following new clauses: 
‘‘(v) forest land that— 
‘‘(I) contributes to the economic 
viability of an agricultural operation; 
or 
‘‘(II) serves as a buffer to protect 
an agricultural operation from devel-
opment; and 
‘‘(vi) land that is incidental to land 
described in clauses (i) through (v), if such 
land is necessary for the efficient adminis-
tration of a conservation easement, as de-
termined by the Secretary.’’. 
(b) FARMLAND PROTECTION.—Section 1238I of the 
Food Security Act of 1985 (16 U.S.C. 3838i) is amended 
to read as follows: 
‘‘SEC. 1238I. FARMLAND PROTECTION PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a farmland protection program under 
which the Secretary shall facilitate and provide funding 
for the purchase of conservation easements or other inter-
ests in eligible land. 
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terest in eligible land, an eligible entity may in-
clude a charitable donation or qualified con-
servation contribution (as defined by section 
170(h) of the Internal Revenue Code of 1986) 
from the private landowner from which the con-
servation easement or other interest in land will 
be purchased. 
‘‘(d) DETERMINATION OF FAIR MARKET VALUE.— 
Effective on the date of enactment of the Food, Conserva-
tion, and Energy Act of 2008, the fair market value of 
the conservation easement or other interest in eligible land 
shall be determined on the basis of an appraisal using an 
industry approved method, selected by the eligible entity 
and approved by the Secretary. 
‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary 
determines that 2 or more applications for cost-share as-
sistance are comparable in achieving the purpose of the 
program, the Secretary shall not assign a higher priority 
to any 1 of those applications solely on the basis of lesser 
cost to the program. 
‘‘(f) CONDITION ON ASSISTANCE.— 
‘‘(1) CONSERVATION PLAN.—Any highly erod-
ible cropland for which a conservation easement or 
other interest is purchased using cost-share assist-
ance provided under the program shall be subject to 
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a conservation plan that requires, at the option of 
the Secretary, the conversion of the cropland to less 
intensive uses. 
‘‘(2) CONTINGENT RIGHT OF ENFORCEMENT.— 
The Secretary shall require the inclusion of a contin-
gent right of enforcement for the Secretary in the 
terms of a conservation easement or other interest 
in eligible land that is purchased using cost-share 
assistance provided under the program. 
‘‘(g) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall enter 
into agreements with eligible entities to stipulate the 
terms and conditions under which the eligible entity 
is permitted to use cost-share assistance provided 
under subsection (c). 
‘‘(2) LENGTH OF AGREEMENTS.—An agreement 
under this subsection shall be for a term that is— 
‘‘(A) in the case of an eligible entity cer-
tified under the process described in subsection 
(h), a minimum of five years; and 
‘‘(B) for all other eligible entities, at least 
three, but not more than five years. 
‘‘(3) 
SUBSTITUTION
OF
QUALIFIED 
PROJECTS.—An agreement shall allow, upon mutual 
agreement of the parties, substitution of qualified 
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projects that are identified at the time of the pro-
posed substitution. 
‘‘(4) MINIMUM
REQUIREMENTS.—An eligible 
entity shall be authorized to use its own terms and 
conditions, as approved by the Secretary, for con-
servation easements and other purchases of interests 
in land, so long as such terms and conditions— 
‘‘(A) are consistent with the purposes of 
the program; 
‘‘(B) permit effective enforcement of the 
conservation purposes of such easements or 
other interests; and 
‘‘(C) include a limit on the impervious sur-
faces to be allowed that is consistent with the 
agricultural activities to be conducted. 
‘‘(5) EFFECT OF VIOLATION.—If a violation oc-
curs of a term or condition of an agreement entered 
into under this subsection— 
‘‘(A) the agreement shall remain in force; 
and 
‘‘(B) the Secretary may require the eligible 
entity to refund all or part of any payments re-
ceived by the entity under the program, with in-
terest on the payments as determined appro-
priate by the Secretary. 
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‘‘(h) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(1) CERTIFICATION PROCESS.—The Secretary 
shall establish a process under which the Secretary 
may— 
‘‘(A) directly certify eligible entities that 
meet established criteria; 
‘‘(B) enter into long-term agreements with 
certified entities, as authorized by subsection 
(g)(2)(A); and 
‘‘(C) accept proposals for cost-share assist-
ance to certified entities for the purchase of 
conservation easements or other interests in eli-
gible land throughout the duration of such 
agreements. 
‘‘(2) CERTIFICATION CRITERIA.—In order to be 
certified, an eligible entity shall demonstrate to the 
Secretary that the entity will maintain, at a min-
imum, for the duration of the agreement— 
‘‘(A) a plan for administering easements 
that is consistent with the purpose of this sub-
chapter; 
‘‘(B) the capacity and resources to monitor 
and enforce conservation easements or other in-
terests in land; and 
‘‘(C) policies and procedures to ensure— 
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‘‘(i) the long-term integrity of con-
servation easements or other interests in 
eligible land; 
‘‘(ii) timely completion of acquisitions 
of easements or other interests in eligible 
land; and 
‘‘(iii) timely and complete evaluation 
and reporting to the Secretary on the use 
of funds provided by the Secretary under 
the program. 
‘‘(3) REVIEW AND REVISION.— 
‘‘(A) REVIEW.—The Secretary shall con-
duct a review of eligible entities certified under 
paragraph (1) every three years to ensure that 
such entities are meeting the criteria estab-
lished under paragraph (2). 
‘‘(B) REVOCATION.—If the Secretary finds 
that the certified entity no longer meets the cri-
teria established under paragraph (2), the Sec-
retary may— 
‘‘(i) allow the certified entity a speci-
fied period of time, at a minimum 180 
days, in which to take such actions as may 
be necessary to meet the criteria; and 
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‘‘(ii) revoke the certification of the en-
tity, if after the specified period of time, 
the certified entity does not meet the cri-
teria established in paragraph (2).’’. 
SEC. 2402. FARM VIABILITY PROGRAM. 
Section 1238J(b) of the Food Security Act of 1985 
(16 U.S.C. 3838j(b)) is amended by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
SEC. 2403. GRASSLAND RESERVE PROGRAM. 
Subchapter D of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838n et 
seq.), as redesignated by section 2301(a)(1), is amended 
to read as follows: 
‘‘Subchapter D—Grassland Reserve Program 
‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM. 
‘‘(a) ESTABLISHMENT
AND PURPOSE.—The Sec-
retary shall establish a grassland reserve program (re-
ferred to in this subchapter as the ‘program’) for the pur-
pose of assisting owners and operators in protecting graz-
ing uses and related conservation values by restoring and 
conserving eligible land through rental contracts, ease-
ments, and restoration agreements. 
‘‘(b) ENROLLMENT OF ACREAGE.— 
‘‘(1) ACREAGE
ENROLLED.—The Secretary 
shall enroll an additional 1,220,000 acres of eligible 
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land in the program during fiscal years 2009 
through 2012. 
‘‘(2) METHODS
OF
ENROLLMENT.—The Sec-
retary shall enroll eligible land in the program 
through the use of; 
‘‘(A) a 10-year, 15-year, or 20-year rental 
contract; 
‘‘(B) a permanent easement; or 
‘‘(C) in a State that imposes a maximum 
duration for easements, an easement for the 
maximum duration allowed under the law of 
that State. 
‘‘(3) LIMITATION.—Of the total amount of 
funds expended under the program to acquire rental 
contracts and easements described in paragraph (2), 
the Secretary shall use, to the extent practicable— 
‘‘(A) 40 percent for rental contacts; and 
‘‘(B) 60 percent for easements. 
‘‘(4) ENROLLMENT
OF
CONSERVATION
RE-
SERVE LAND.— 
‘‘(A) PRIORITY.—Upon expiration of a 
contract under subchapter B of chapter 1 of 
this subtitle, the Secretary shall give priority 
for enrollment in the program to land pre-
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viously enrolled in the conservation reserve pro-
gram if— 
‘‘(i) the land is eligible land, as de-
fined in subsection (c); and 
‘‘(ii) the Secretary determines that 
the land is of high ecological value and 
under significant threat of conversion to 
uses other than grazing. 
‘‘(B) MAXIMUM ENROLLMENT.—The num-
ber of acres of land enrolled under the priority 
described in subparagraph (A) in a calendar 
year shall not exceed 10 percent of the total 
number of acres enrolled in the program in that 
calendar year. 
‘‘(c) ELIGIBLE LAND DEFINED.—For purposes of 
the program, the term ‘eligible land’ means private or trib-
al land that— 
‘‘(1) is grassland, land that contains forbs, or 
shrubland 
(including 
improved 
rangeland 
and 
pastureland) for which grazing is the predominant 
use; 
‘‘(2) is located in an area that has been histori-
cally dominated by grassland, forbs, or shrubland, 
and the land— 
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‘‘(A) could provide habitat for animal or 
plant populations of significant ecological value 
if the land— 
‘‘(i) is retained in its current use; or 
‘‘(ii) is restored to a natural condi-
tion; 
‘‘(B) contains historical or archaeological 
resources; or 
‘‘(C) would address issues raised by State, 
regional, and national conservation priorities; or 
‘‘(3) is incidental to land described in para-
graph (1) or (2), if the incidental land is determined 
by the Secretary to be necessary for the efficient ad-
ministration of a rental contract or easement under 
the program. 
‘‘SEC. 1238O. DUTIES OF OWNERS AND OPERATORS. 
‘‘(a) RENTAL CONTRACTS.—To be eligible to enroll 
eligible land in the program under a rental contract, the 
owner or operator of the land shall agree— 
‘‘(1) to comply with the terms of the contract 
and, when applicable, a restoration agreement; 
‘‘(2) to suspend any existing cropland base and 
allotment history for the land under another pro-
gram administered by the Secretary; and 
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‘‘(3) to implement a grazing management plan, 
as approved by the Secretary, which may be modi-
fied upon mutual agreement of the parties. 
‘‘(b) EASEMENTS.—To be eligible to enroll eligible 
land in the program through an easement, the owner of 
the land shall agree— 
‘‘(1) to grant an easement to the Secretary or 
to an eligible entity described in section 1238Q; 
‘‘(2) to create and record an appropriate deed 
restriction in accordance with applicable State law to 
reflect the easement; 
‘‘(3) to provide a written statement of consent 
to the easement signed by persons holding a security 
interest or any vested interest in the land; 
‘‘(4) to provide proof of unencumbered title to 
the underlying fee interest in the land that is the 
subject of the easement; 
‘‘(5) to comply with the terms of the easement 
and, when applicable, a restoration agreement; 
‘‘(6) to implement a grazing management plan, 
as approved by the Secretary, which may be modi-
fied upon mutual agreement of the parties; and 
‘‘(7) to eliminate any existing cropland base 
and allotment history for the land under another 
program administered by the Secretary. 
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‘‘(c) RESTORATION AGREEMENTS.— 
‘‘(1) WHEN
APPLICABLE.—To be eligible for 
cost-share assistance to restore eligible land subject 
to a rental contract or an easement under the pro-
gram, the owner or operator of the land shall agree 
to comply with the terms of a restoration agreement. 
‘‘(2) TERMS AND CONDITIONS.—The Secretary 
shall prescribe the terms and conditions of a restora-
tion agreement by which eligible land that is subject 
to a rental contract or easement under the program 
shall be restored. 
‘‘(3) DUTIES.—The restoration agreement shall 
describe the respective duties of the owner or oper-
ator and the Secretary, including the Federal share 
of restoration payments and technical assistance. 
‘‘(d) TERMS
AND
CONDITIONS
APPLICABLE
TO 
RENTAL CONTRACTS AND EASEMENTS.— 
‘‘(1) PERMISSIBLE ACTIVITIES.—The terms and 
conditions of a rental contract or easement under 
the program shall permit— 
‘‘(A) common grazing practices, including 
maintenance and necessary cultural practices, 
on the land in a manner that is consistent with 
maintaining the viability of grassland, forb, and 
shrub species appropriate to that locality; 
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‘‘(B) haying, mowing, or harvesting for 
seed production, subject to appropriate restric-
tions during the nesting season for birds in the 
local area that are in significant decline or are 
conserved in accordance with Federal or State 
law, as determined by the State Conserva-
tionist; 
‘‘(C) fire presuppression, rehabilitation, 
and construction of fire breaks; and 
‘‘(D) grazing related activities, such as 
fencing and livestock watering. 
‘‘(2) PROHIBITIONS.—The terms and conditions 
of a rental contract or easement under the program 
shall prohibit— 
‘‘(A) the production of crops (other than 
hay), fruit trees, vineyards, or any other agri-
cultural commodity that is inconsistent with 
maintaining grazing land; and 
‘‘(B) except as permitted under a restora-
tion plan, the conduct of any other activity that 
would be inconsistent with maintaining grazing 
land enrolled in the program. 
‘‘(3) ADDITIONAL TERMS AND CONDITIONS.—A 
rental contract or easement under the program shall 
include such additional provisions as the Secretary 
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determines are appropriate to carry out or facilitate 
the purposes and administration of the program. 
‘‘(e) VIOLATIONS.—On a violation of the terms or 
conditions of a rental contract, easement, or restoration 
agreement entered into under this section— 
‘‘(1) the contract or easement shall remain in 
force; and 
‘‘(2) the Secretary may require the owner or 
operator to refund all or part of any payments re-
ceived under the program, with interest on the pay-
ments as determined appropriate by the Secretary. 
‘‘SEC. 1238P. DUTIES OF SECRETARY. 
‘‘(a) EVALUATION
AND
RANKING
OF
APPLICA-
TIONS.— 
‘‘(1) CRITERIA.—The Secretary shall establish 
criteria to evaluate and rank applications for rental 
contracts and easements under the program . 
‘‘(2) CONSIDERATIONS.—In establishing the cri-
teria, the Secretary shall emphasize support for— 
‘‘(A) grazing operations; 
‘‘(B) plant and animal biodiversity; and 
‘‘(C) grassland, land that contains forbs, 
and shrubland under the greatest threat of con-
version to uses other than grazing. 
‘‘(b) PAYMENTS.— 
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‘‘(1) IN GENERAL.—In return for the execution 
of a rental contract or the granting of an easement 
by an owner or operator under the program, the 
Secretary shall— 
‘‘(A) make rental contract or easement 
payments to the owner or operator in accord-
ance with paragraphs (2) and (3); and 
‘‘(B) make payments to the owner or oper-
ator under a restoration agreement for the Fed-
eral share of the cost of restoration in accord-
ance with paragraph (4). 
‘‘(2) RENTAL CONTRACT PAYMENTS.— 
‘‘(A) PERCENTAGE OF GRAZING VALUE OF 
LAND.—In return for the execution of a rental 
contract by an owner or operator under the pro-
gram, the Secretary shall make annual pay-
ments during the term of the contract in an 
amount, subject to subparagraph (B), that is 
not more than 75 percent of the grazing value 
of the land covered by the contract. 
‘‘(B) PAYMENT
LIMITATION.—Payments 
made under 1 or more rental contracts to a per-
son or legal entity, directly or indirectly, may 
not exceed, in the aggregate, $50,000 per year. 
‘‘(3) EASEMENT PAYMENTS.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in return for the granting of an 
easement by an owner under the program, the 
Secretary shall make easement payments in an 
amount not to exceed the fair market value of 
the land less the grazing value of the land en-
cumbered by the easement. 
‘‘(B) METHOD
FOR
DETERMINATION
OF 
COMPENSATION.—In making a determination 
under subparagraph (A), the Secretary shall 
pay as compensation for a easement acquired 
under the program the lowest of— 
‘‘(i) the fair market value of the land 
encumbered by the easement, as deter-
mined by the Secretary, using— 
‘‘(I) the Uniform Standards of 
Professional Appraisal Practices; or 
‘‘(II) an area-wide market anal-
ysis or survey; 
‘‘(ii) the amount corresponding to a 
geographical cap, as determined by the 
Secretary in regulations; or 
‘‘(iii) the offer made by the land-
owner. 
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‘‘(C) 
SCHEDULE.—Easement 
payments 
may be provided in up to 10 annual payments 
of equal or unequal amount, as agreed to by the 
Secretary and the owner. 
‘‘(4) RESTORATION AGREEMENT PAYMENTS.— 
‘‘(A) 
FEDERAL
SHARE
OF
RESTORA-
TION.—The Secretary shall make payments to 
an owner or operator under a restoration agree-
ment of not more than 50 percent of the costs 
of carrying out measures and practices nec-
essary to restore functions and values of that 
land. 
‘‘(B) PAYMENT
LIMITATION.—Payments 
made under 1 or more restoration agreements 
to a person or legal entity, directly or indirectly, 
may not exceed, in the aggregate, $50,000 per 
year. 
‘‘(5) PAYMENTS TO OTHERS.—If an owner or 
operator who is entitled to a payment under the pro-
gram dies, becomes incompetent, is otherwise unable 
to receive the payment, or is succeeded by another 
person who renders or completes the required per-
formance, the Secretary shall make the payment, in 
accordance with regulations promulgated by the Sec-
retary and without regard to any other provision of 
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law, in such manner as the Secretary determines is 
fair and reasonable in light of all the circumstances. 
‘‘SEC. 1238Q. DELEGATION OF DUTY. 
‘‘(a) AUTHORITY
TO DELEGATE.—The Secretary 
may delegate a duty under the program— 
‘‘(1) by transferring title of ownership to an 
easement to an eligible entity to hold and enforce; or 
‘‘(2) by entering into a cooperative agreement 
with an eligible entity for the eligible entity to own, 
write, and enforce an easement. 
‘‘(b) ELIGIBLE ENTITY DEFINED.—In this section, 
the term ‘eligible entity’ means— 
‘‘(1) an agency of State or local government or 
an Indian tribe; or 
‘‘(2) an organization that— 
‘‘(A) is organized for, and at all times 
since the formation of the organization has 
been operated principally for, one or more of 
the conservation purposes specified in clause (i), 
(ii), (iii), or (iv) of section 170(h)(4)(A) of the 
Internal Revenue Code of 1986; 
‘‘(B) is an organization described in sec-
tion 501(c)(3) of that Code that is exempt from 
taxation under section 501(a) of that Code; and 
‘‘(C) is described in— 
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‘‘(i) paragraph (1) or (2) of section 
509(a) of that Code; or 
‘‘(ii) in section 509(a)(3) of that 
Code, and is controlled by an organization 
described in section 509(a)(2) of that 
Code. 
‘‘(c) TRANSFER OF TITLE OF OWNERSHIP.— 
‘‘(1) TRANSFER.—The Secretary may transfer 
title of ownership to an easement to an eligible enti-
ty to hold and enforce, in lieu of the Secretary, sub-
ject to the right of the Secretary to conduct periodic 
inspections and enforce the easement, if— 
‘‘(A) the Secretary determines that the 
transfer will promote protection of grassland, 
land that contains forbs, or shrubland; 
‘‘(B) the owner authorizes the eligible enti-
ty to hold or enforce the easement; and 
‘‘(C) the eligible entity agrees to assume 
the costs incurred in administering and enforc-
ing the easement, including the costs of restora-
tion or rehabilitation of the land as specified by 
the owner and the eligible entity. 
‘‘(2) APPLICATION.—An eligible entity that 
seeks to hold and enforce an easement shall apply to 
the Secretary for approval. 
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‘‘(3) APPROVAL
BY
SECRETARY.—The Sec-
retary may approve an application described in para-
graph (2) if the eligible entity— 
‘‘(A) has the relevant experience necessary, 
as appropriate for the application, to administer 
an easement on grassland, land that contains 
forbs, or shrubland; 
‘‘(B) has a charter that describes a com-
mitment to conserving ranchland, agricultural 
land, or grassland for grazing and conservation 
purposes; and 
‘‘(C) has the resources necessary to effec-
tuate the purposes of the charter. 
‘‘(d) COOPERATIVE AGREEMENTS.— 
‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.— 
The Secretary shall establish the terms and condi-
tions of a cooperative agreement under which an eli-
gible entity shall use funds provided by the Sec-
retary to own, write, and enforce an easement, in 
lieu of the Secretary. 
‘‘(2) MINIMUM
REQUIREMENTS.—At a min-
imum, the cooperative agreement shall— 
‘‘(A) specify the qualification of the eligible 
entity to carry out the entity’s responsibilities 
under the program, including acquisition, moni-
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toring, enforcement, and implementation of 
management policies and procedures that en-
sure the long-term integrity of the easement 
protections; 
‘‘(B) require the eligible entity to assume 
the costs incurred in administering and enforc-
ing the easement, including the costs of restora-
tion or rehabilitation of the land as specified by 
the owner and the eligible entity; 
‘‘(C) specify the right of the Secretary to 
conduct periodic inspections to verify the eligi-
ble entity’s enforcement of the easement; 
‘‘(D) subject to subparagraph (E), identify 
a specific project or a range of projects to be 
funded under the agreement; 
‘‘(E) allow, upon mutual agreement of the 
parties, substitution of qualified projects that 
are identified at the time of substitution; 
‘‘(F) specify the manner in which the eligi-
ble entity will evaluate and report the use of 
funds to the Secretary; 
‘‘(G) allow the eligible entity flexibility to 
develop and use terms and conditions for ease-
ments, if the Secretary finds the terms and con-
ditions consistent with the purposes of the pro-
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gram and adequate to enable effective enforce-
ment of the easements; 
‘‘(H) if applicable, allow an eligible entity 
to include a charitable donation or qualified 
conservation contribution (as defined by section 
170(h) of the Internal Revenue Code of 1986) 
from the landowner from which the easement 
will be purchased as part of the entity’s share 
of the cost to purchase an easement; and 
‘‘(I) provide for a schedule of payments to 
an eligible entity, as agreed to by the Secretary 
and the eligible entity. 
‘‘(3) COST SHARING.— 
‘‘(A) IN GENERAL.—As part of a coopera-
tive agreement with an eligible entity under this 
subsection, the Secretary may provide a share 
of the purchase price of an easement under the 
program. 
‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTI-
TY.—The eligible entity shall be required to 
provide a share of the purchase price at least 
equivalent to that provided by the Secretary. 
‘‘(C) PRIORITY.—The Secretary may ac-
cord a higher priority to proposals from eligible 
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entities that leverage a greater share of the 
purchase price of the easement. 
‘‘(4) VIOLATION.—If an eligible entity violates 
the terms or conditions of a cooperative agreement 
entered into under this subsection— 
‘‘(A) the cooperative agreement shall re-
main in force; and 
‘‘(B) the Secretary may require the eligible 
entity to refund all or part of any payments re-
ceived by the eligible entity under the program, 
with interest on the payments as determined 
appropriate by the Secretary. 
‘‘(e) PROTECTION
OF
FEDERAL
INVESTMENT.— 
When delegating a duty under this section, the Secretary 
shall ensure that the terms of an easement include a con-
tingent right of enforcement for the Department.’’. 
Subtitle F—Environmental Quality 
Incentives Program 
SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY IN-
CENTIVES PROGRAM. 
(a) REVISED PURPOSES.—Section 1240 of the Food 
Security Act of 1985 (16 U.S.C. 3839aa) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting ‘‘, forest management,’’ after ‘‘agricultural 
production’’; and 
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(2) by striking paragraphs (3) and (4) and in-
serting the following new paragraphs: 
‘‘(3) providing flexible assistance to producers 
to install and maintain conservation practices that 
sustain food and fiber production while— 
‘‘(A) enhancing soil, water, and related 
natural resources, including grazing land, 
forestland, wetland, and wildlife; and 
‘‘(B) conserving energy; 
‘‘(4) assisting producers to make beneficial, cost 
effective changes to production systems (including 
conservation practices related to organic production), 
grazing management, fuels management, forest 
management, nutrient management associated with 
livestock, pest or irrigation management, or other 
practices on agricultural and forested land; and’’. 
(b) TECHNICAL CORRECTION.—The Food Security 
Act of 1985 is amended by inserting immediately before 
section 1240 (16 U.S.C. 3839aa) the following: 
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY 
INCENTIVES PROGRAM’’. 
SEC. 2502. DEFINITIONS. 
Section 1240A of the Food Security Act of 1985 (16 
U.S.C. 3839aa–1) is amended to read as follows: 
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‘‘SEC. 1240A. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means land on which agricultural com-
modities, livestock, or forest-related products 
are produced. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes the following: 
‘‘(i) Cropland. 
‘‘(ii) Grassland. 
‘‘(iii) Rangeland. 
‘‘(iv) Pasture land. 
‘‘(v) Nonindustrial private forest land. 
‘‘(vi) Other agricultural land (includ-
ing cropped woodland, marshes, and agri-
cultural land used for the production of 
livestock) on which resource concerns re-
lated to agricultural production could be 
addressed through a contract under the 
program, as determined by the Secretary. 
‘‘(2) NATIONAL ORGANIC PROGRAM.—The term 
‘national organic program’ means the national or-
ganic program established under the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et. seq.). 
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‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘or-
ganic system plan’ means an organic plan approved 
under the national organic program. 
‘‘(4) PAYMENT.—The term ‘payment’ means fi-
nancial assistance provided to a producer for per-
forming practices under this chapter, including com-
pensation for— 
‘‘(A) incurred costs associated with plan-
ning, design, materials, equipment, installation, 
labor, management, maintenance, or training; 
and 
‘‘(B) income forgone by the producer. 
‘‘(5) PRACTICE.—The term ‘practice’ means 1 
or more improvements and conservation activities 
that are consistent with the purposes of the program 
under this chapter, as determined by the Secretary, 
including— 
‘‘(A) improvements to eligible land of the 
producer, including— 
‘‘(i) structural practices; 
‘‘(ii) land management practices; 
‘‘(iii) vegetative practices; 
‘‘(iv) forest management; and 
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‘‘(v) other practices that the Secretary 
determines would further the purposes of 
the program; and 
‘‘(B) conservation activities involving the 
development of plans appropriate for the eligi-
ble land of the producer, including— 
‘‘(i) comprehensive nutrient manage-
ment planning; and 
‘‘(ii) other plans that the Secretary 
determines would further the purposes of 
the program under this chapter. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the environmental quality incentives program estab-
lished by this chapter.’’. 
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF EN-
VIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended to read as follows: 
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION. 
‘‘(a) ESTABLISHMENT.—During each of the 2002 
through 2012 fiscal years, the Secretary shall provide pay-
ments to producers that enter into contracts with the Sec-
retary under the program. 
‘‘(b) PRACTICES AND TERM.— 
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‘‘(1) PRACTICES.—A contract under the pro-
gram may apply to the performance of one or more 
practices. 
‘‘(2) TERM.—A contract under the program 
shall have a term that— 
‘‘(A) at a minimum, is equal to the period 
beginning on the date on which the contract is 
entered into and ending on the date that is one 
year after the date on which all practices under 
the contract have been implemented; but 
‘‘(B) not to exceed 10 years. 
‘‘(c) BIDDING DOWN.—If the Secretary determines 
that the environmental values of two or more applications 
for payments are comparable, the Secretary shall not as-
sign a higher priority to the application only because it 
would present the least cost to the program. 
‘‘(d) PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—Payments 
are provided to a producer to implement one or more 
practices under the program. 
‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A 
payment to a producer for performing a practice 
may not exceed, as determined by the Secretary— 
‘‘(A) 75 percent of the costs associated 
with planning, design, materials, equipment, in-
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stallation, labor, management, maintenance, or 
training; 
‘‘(B) 100 percent of income foregone by 
the producer; or 
‘‘(C) in the case of a practice consisting of 
elements covered under subparagraphs (A) and 
(B)— 
‘‘(i) 75 percent of the costs incurred 
for those elements covered under subpara-
graph (A); and 
‘‘(ii) 100 percent of income foregone 
for those elements covered under subpara-
graph (B). 
‘‘(3) SPECIAL RULE INVOLVING PAYMENTS FOR 
FOREGONE
INCOME.—In determining the amount 
and rate of payments under paragraph (2)(B), the 
Secretary may accord great significance to a practice 
that, as determined by the Secretary, promotes— 
‘‘(A) residue management; 
‘‘(B) nutrient management; 
‘‘(C) air quality management; 
‘‘(D) invasive species management; 
‘‘(E) pollinator habitat; 
‘‘(F) animal carcass management tech-
nology; or 
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‘‘(G) pest management. 
‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRO-
DUCERS.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a producer that is a 
limited resource, socially disadvantaged farmer 
or rancher or a beginning farmer or rancher, 
the Secretary shall increase the amount that 
would otherwise be provided to a producer 
under this subsection— 
‘‘(i) to not more than 90 percent of 
the costs associated with planning, design, 
materials, equipment, installation, labor, 
management, maintenance, or training; 
and 
‘‘(ii) to not less than 25 percent above 
the otherwise applicable rate. 
‘‘(B) ADVANCE
PAYMENTS.—Not more 
than 30 percent of the amount determined 
under subparagraph (A) may be provided in ad-
vance for the purpose of purchasing materials 
or contracting. 
‘‘(5) FINANCIAL
ASSISTANCE
FROM
OTHER 
SOURCES.—Except as provided in paragraph (6), 
any payments received by a producer from a State 
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or private organization or person for the implemen-
tation of one or more practices on eligible land of 
the producer shall be in addition to the payments 
provided to the producer under this subsection. 
‘‘(6) OTHER PAYMENTS.—A producer shall not 
be eligible for payments for practices on eligible land 
under the program if the producer receives payments 
or other benefits for the same practice on the same 
land under another program under this subtitle. 
‘‘(e) MODIFICATION
OR
TERMINATION
OF
CON-
TRACTS.— 
‘‘(1) VOLUNTARY
MODIFICATION
OR
TERMI-
NATION.—The Secretary may modify or terminate a 
contract entered into with a producer under the pro-
gram if— 
‘‘(A) the producer agrees to the modifica-
tion or termination; and 
‘‘(B) the Secretary determines that the 
modification or termination is in the public in-
terest. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under the program 
if the Secretary determines that the producer vio-
lated the contract. 
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