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(6) PERFORMANCE INDICATORS.—The Secretary
shall establish, for each year of the program, perform-
ance indicators and expected levels of performance for
meal and food distribution and job training for eligi-
ble entities to continue to receive and use grants
under this section.
(7) TECHNICAL
ASSISTANCE.—The Secretary
may provide such technical assistance to eligible enti-
ties as the Secretary considers appropriate to help the
eligible entities in carrying out this section.
(8) RELATIONSHIP TO OTHER LAW.—
(A) BILL EMERSON GOOD SAMARITAN FOOD
DONATION ACT.—An action taken by an eligible
entity using a grant provided under this section
shall be covered by the Bill Emerson Good Sa-
maritan Food Donation Act (42 U.S.C. 1791).
(B) 
FOOD
HANDLING
GUIDELINES.—In
using a grant provided under this section, an el-
igible entity shall comply with any applicable
food handling guideline established by a State or
local authority.
(9) MAXIMUM AMOUNT OF GRANT.—The amount
of a grant provided to an eligible entity for a fiscal
year under this section shall not exceed $200,000.
(c) AUTHORIZATION OF APPROPRIATIONS.—
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(1) IN GENERAL.—There are authorized to be ap-
propriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through
2012.
(2) TECHNICAL ASSISTANCE.—Of the amount of
funds that are made available for a fiscal year under
paragraph (1), the Secretary shall use to provide tech-
nical assistance under subsection (b)(7) not more
than the greater of—
(A) 5 percent of the amount of funds that
are made available for the fiscal year under
paragraph (1); or
(B) $1,000,000.
SEC. 
4915. 
INFRASTRUCTURE 
AND 
TRANSPORTATION
GRANTS TO SUPPORT RURAL FOOD BANK DE-
LIVERY OF HEALTHY PERISHABLE FOODS.
(a) PURPOSE.—The purpose of this section is to pro-
vide grants to State and local food banks and other emer-
gency feeding organizations (as defined in section 201A of
the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501))—
(1) to support and expand the efforts of food
banks operating in rural areas to procure and trans-
port highly perishable and healthy food;
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(2) to improve identification of potential pro-
viders of donated food and to enhance the nonprofit
food donation system, particularly in and for rural
areas; and
(3) to support the procurement of locally pro-
duced food from small and family farms and ranches
for distribution to needy people.
(b) DEFINITION
OF TIME-SENSITIVE FOOD PROD-
UCT.—
(1) IN
GENERAL.—In this section, the term
‘‘time-sensitive food product’’ means a fresh, raw, or
processed food with a short time limitation for safe
and acceptable consumption, as determined by the
Secretary.
(2) INCLUSIONS.—The term ‘‘time-sensitive food
product’’ includes—
(A) fruits;
(B) vegetables;
(C) dairy products;
(D) meat;
(E) fish; and
(F) poultry.
(c) GRANT PROGRAM.—
(1) IN GENERAL.—The Secretary shall establish
a program under which the Secretary shall provide
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grants, on a competitive basis, to expand the capacity
and infrastructure of food banks, statewide food bank
associations, and regional food bank collaboratives
that operate in rural areas to improve the capacity
of the food banks to receive, store, distribute, track,
collect, and deliver time-sensitive food products made
available from national and local food donors.
(2) MAXIMUM AMOUNT.—The maximum amount
of a grant provided under this subsection shall be not
more than $1,000,000 for a fiscal year.
(3) USE OF FUNDS.—A food bank may use a
grant provided under this section for—
(A) the development and maintenance of a
computerized system for the tracking of time-sen-
sitive food products;
(B) capital, infrastructure, and operating
costs associated with—
(i) the collection and transportation of
time-sensitive food products; or
(ii) the storage and distribution of
time-sensitive food products;
(C) improving the security and diversity of
the emergency food distribution and recovery sys-
tems of the United States through the support
of—
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(i) small, midsize, or family farms and
ranches;
(ii) fisheries and aquaculture; and
(iii) donations from local food pro-
ducers and manufacturers to persons in
need;
(D) providing recovered healthy foods to
food banks and similar nonprofit emergency food
providers to reduce hunger in the United States;
and
(E) improving the identification of—
(i) potential providers of donated
foods;
(ii) potential nonprofit emergency food
providers; and
(iii) persons in need of emergency food
assistance in rural areas.
(d) AUDITS.—The Secretary shall establish fair and
reasonable procedures to audit the use of funds made avail-
able to carry out this section.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 2008 through 2012.
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TITLE V—CREDIT
Subtitle A—Farm Ownership Loans
SEC. 5001. DIRECT LOANS.
Section 302 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1922) is amended—
(1) by striking the section designation and head-
ing and all that follows through ‘‘(a) The Secretary
is authorized to’’ and inserting the following:
‘‘SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.
‘‘(a) IN GENERAL.—The Secretary may’’; and
(2) in subsection (a)(2), by inserting ‘‘, taking
into consideration all farming experience of the appli-
cant, without regard to any lapse between farming ex-
periences’’ after ‘‘farming operations’’.
SEC. 5002. PURPOSES OF LOANS.
Section 303(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1923(a)(1)) is amended—
(1) in subparagraph (D), by striking ‘‘or’’ at the
end;
(2) in subparagraph (E), by striking the period
at the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(F) refinancing guaranteed farm owner-
ship loans of qualified beginning farmers and
ranchers under this subtitle that were used to
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carry out purposes described in subparagraphs
(A) through (E).’’.
SEC. 5003. SOIL AND WATER CONSERVATION AND PROTEC-
TION.
Section 304 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1924) is amended—
(1) in subsection (a)—
(A) in paragraph (4), by inserting ‘‘or con-
version to a certified organic farm in accordance
with the Organic Foods Production Act of 1990
(7 U.S.C. 6501 et seq.)’’ after ‘‘systems’’;
(B) in paragraph (5), by striking ‘‘and’’ at
the end;
(C) by redesignating paragraph (6) as
paragraph (7); and
(D) by inserting after paragraph (5) the fol-
lowing:
‘‘(6) the implementation of 1 or more practices
under the environmental quality section of the com-
prehensive stewardship incentives program established
under subchapter A of chapter 6 of subtitle D of title
XII of the Food Security Act of 1985; and’’; and
(2) by striking subsections (b) and (c) and in-
serting the following:
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‘‘(b) PRIORITY.—In making or guaranteeing loans
under this section, the Secretary shall give priority to—
‘‘(1) qualified beginning farmers or ranchers and
socially disadvantaged farmers or ranchers;
‘‘(2) owners or tenants who use the loans to con-
vert to sustainable or organic agricultural production
systems;
‘‘(3) producers who use the loans to build con-
servation structures or establish conservation practices
to comply with section 1212 of the Food Security Act
of 1985 (16 U.S.C. 3812); and
‘‘(4) producers who have a certification from the
Natural Resources Conservation Service issued pursu-
ant to section 1240B(d) of the Food Security Act of
1985.’’.
SEC. 5004. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP
LOANS.
Section 305(a)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1925(a)(2)) is amended by
striking ‘‘$200,000’’ and inserting ‘‘$300,000’’.
SEC. 5005. DOWN PAYMENT LOAN PROGRAM.
Section 310E of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1935) is amended—
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(1) in subsection (a)(1), by inserting ‘‘and so-
cially disadvantaged farmers and ranchers’’ after
‘‘ranchers’’;
(2) in subsection (b)—
(A) by striking paragraph (1) and inserting
the following:
‘‘(1) PRINCIPAL.—
‘‘(A) PURCHASE
PRICE
OF
$500,000
OR
LESS.—Each loan made under this section for a
purchase price that is $500,000 or less, shall be
in an amount that does not exceed 45 percent of
the lesser of—
‘‘(i) the purchase price; or
‘‘(ii) the appraised value of the farm or
ranch to be acquired.
‘‘(B) PURCHASE
PRICE
GREATER
THAN
$500,000.—Each loan made under this section for
a purchase price that is greater than $500,000,
shall be in an amount that does not exceed 45
percent of the lesser of—
‘‘(i) $500,000; or
‘‘(ii) the appraised value of the farm or
ranch to be acquired.’’;
(B) by striking paragraph (2) and inserting
the following:
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‘‘(2) INTEREST RATE.—The interest rate on any
loan made by the Secretary under this section shall
be a rate equal to the greater of—
‘‘(A) the difference obtained by subtracting
400 basis points from the interest rate for reg-
ular farm ownership loans under this subtitle; or
‘‘(B) 2 percent.’’; and
(C) in paragraph (3), by striking ‘‘15’’ and
inserting ‘‘20’’;
(3) in subsection (c)—
(A) in paragraph (1), by striking ‘‘10 per-
cent’’ and inserting ‘‘5 percent’’;
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as
paragraph (2); and
(D) in subparagraph (B) of paragraph (2)
(as so redesignated), by striking ‘‘15-year’’ and
inserting ‘‘20-year’’; and
(4) in subsection (d)—
(A) in paragraph (3), by striking the ‘‘and’’
at the end;
(B) in paragraph (4), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
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‘‘(5) establish annual performance goals to pro-
mote the use of the down payment loan program and
other joint financing participation loans as the pre-
ferred choice for direct real estate loans made by any
lender to a qualified beginning farmer or rancher or
socially disadvantaged farmer or rancher.’’.
SEC. 5006. BEGINNING FARMER OR RANCHER CONTRACT
LAND SALES PROGRAM.
Section 310F of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1936) is amended to read as fol-
lows:
‘‘SEC. 310F. BEGINNING FARMER OR RANCHER CONTRACT
LAND SALES PROGRAM.
‘‘(a) IN GENERAL.—Subject to subsection (c), the Sec-
retary shall, in accordance with each condition described
in subsection (b), provide a prompt payment guarantee for
any loan made by a private seller of farmland or ranch
land to a qualified beginning farmer or rancher on a con-
tract land sale basis.
‘‘(b) CONDITIONS
FOR GUARANTEE.—To receive a
guarantee for a loan by the Secretary under subsection
(a)—
‘‘(1) the qualified beginning farmer or rancher
shall—
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‘‘(A) on the date on which the contract land
sale that is the subject of the loan is complete,
own and operate the farmland or ranch land
that is the subject of the contract land sale;
‘‘(B) on the date on which the contract land
sale that is the subject of the loan is
commenced—
‘‘(i) have a credit history that—
‘‘(I) includes a record of satisfac-
tory debt repayment, as determined by
the Secretary; and
‘‘(II) is acceptable to the Sec-
retary; and
‘‘(ii) demonstrate to the Secretary that
the qualified beginning farmer or rancher is
unable to obtain sufficient credit without a
guarantee to finance any actual need of the
qualified beginning farmer or rancher at a
reasonable rate or term;
‘‘(2) the loan made by the private seller of farm-
land or ranch land to the qualified beginning farmer
or rancher on a contract land sale basis shall meet
applicable underwriting criteria, as determined by
the Secretary; and
‘‘(3) to carry out the loan—
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‘‘(A) a commercial lending institution shall
agree to serve as an escrow agent; or
‘‘(B) the private seller of farmland or ranch
land, in cooperation with the qualified beginning
farmer or rancher, shall use an appropriate al-
ternate arrangement, as determined by the Sec-
retary.
‘‘(c) LIMITATIONS.—
‘‘(1) DOWN PAYMENT.—The Secretary shall not
guarantee a loan made by a private seller of farm-
land or ranch land to a qualified beginning farmer
or rancher under subsection (a) if the contribution of
the qualified beginning farmer or rancher to the down
payment for the farmland or ranch land that is the
subject of the contract land sale would be an amount
less than 5 percent of the purchase price of the farm-
land or ranch land.
‘‘(2) MAXIMUM
PURCHASE
PRICE.—The Sec-
retary shall not guarantee a loan made by a private
seller of farmland or ranch land to a qualified begin-
ning farmer or rancher under subsection (a) if the
purchase price or the appraisal value of the farmland
or ranch land that is the subject of the contract land
sale is an amount greater than $500,000.
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‘‘(d) PERIOD OF GUARANTEE.—The Secretary shall
guarantee a loan made by a private seller of farmland or
ranch land to a qualified beginning farmer or rancher
under subsection (a) for a 10-year period beginning on the
date on which the Secretary guarantees the loan.
‘‘(e) PROMPT PAYMENT GUARANTEE.—The Secretary
shall provide to a private seller of farmland or ranch land
who makes a loan to a qualified beginning farmer or ranch-
er that is guaranteed by the Secretary, a prompt payment
guarantee, which shall cover—
‘‘(1) 3 amortized annual installments; or
‘‘(2) an amount equal to 3 annual installments
(including an amount equal to the total cost of any
tax and insurance incurred during the period covered
by the annual installments).’’.
Subtitle B—Operating Loans
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIRE-
MENT.
Section 311 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1941) is amended—
(1) by striking the section designation and all
that follows through ‘‘(a) The Secretary is authorized
to’’ and inserting the following:
‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS.
‘‘(a) IN GENERAL.—The Secretary may’’;
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(2) in subsection (a)(2), by inserting ‘‘, taking
into consideration all farming experience of the appli-
cant, without regard to any lapse between farming ex-
periences’’ after ‘‘farming operations’’; and
(3) in subsection (c)(1)(C), by striking ‘‘6’’ and
inserting ‘‘7’’.
SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING
LOANS.
Section 313(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1943(a)(1)) is amended by
striking ‘‘$200,000’’ and inserting ‘‘$300,000’’.
SEC. 5103. LIMITATION ON PERIOD BORROWERS ARE ELIGI-
BLE FOR GUARANTEED ASSISTANCE.
Section 319 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1949) is repealed.
Subtitle C—Administrative
Provisions
SEC. 5201. BEGINNING FARMER AND RANCHER INDIVIDUAL
DEVELOPMENT ACCOUNTS PILOT PROGRAM.
The Consolidated Farm and Rural Development Act
is amended by adding after section 333A (7 U.S.C. 1983a)
the following:
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‘‘SEC. 333B. BEGINNING FARMER AND RANCHER INDI-
VIDUAL 
DEVELOPMENT 
ACCOUNTS 
PILOT
PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 
DEMONSTRATION
PROGRAM.—The 
term
‘demonstration program’ means a demonstration pro-
gram carried out by a qualified entity under the pilot
program established in subsection (b)(1).
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible
participant’ means a qualified beginning farmer or
rancher that—
‘‘(A) lacks significant financial resources or
assets; and
‘‘(B) has an income that is less than—
‘‘(i) 80 percent of the median income
of the area in which the eligible participant
is located; or
‘‘(ii) 200 percent of the most recent an-
nual Federal Poverty Income Guidelines
published by the Department of Health and
Human Services for that area.
‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The
term ‘individual development account’ means a sav-
ings account described in subsection (b)(4)(A).
‘‘(4) QUALIFIED ENTITY.—
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‘‘(A) IN GENERAL.—The term ‘qualified en-
tity’ means—
‘‘(i) 1 or more organizations—
‘‘(I) described in section 501(c)(3)
of the Internal Revenue Code of 1986;
and
‘‘(II) exempt from taxation under
section 501(a) of such Code; or
‘‘(ii) a State, local, or tribal govern-
ment submitting an application jointly
with an organization described in clause
(i).
‘‘(B) NO
PROHIBITION
ON
COLLABORA-
TION.—An organization described in subpara-
graph (A)(i) may collaborate with a financial
institution or for-profit community development
corporation to carry out the purposes of this sec-
tion.
‘‘(b) PILOT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall establish
a pilot program to be known as the ‘New Farmer In-
dividual Development Accounts Pilot Program’ under
which the Secretary shall work through qualified enti-
ties to establish demonstration programs—
‘‘(A) of at least 5 years in duration; and