‘‘(bb) conservation practices
that 
are 
newly 
implemented
under the conservation security
contract; and
‘‘(III) meet applicable resource
management system criteria for the
chosen resource of concern of the ag-
ricultural operation;
‘‘(ii) CONSERVATION
PRACTICES.—
Tier II conservation practices shall consist
of, as appropriate for the agricultural oper-
ation of an owner or operator, any of the
Tier I conservation practices and 1 or
more of the following land use adjustment
or protection practices:
‘‘(I) Resource-conserving crop ro-
tations.
‘‘(II) Controlled, rotational graz-
ing.
‘‘(III) Conversion of portions of
cropland from a soil-depleting use to a
soil-conserving use, including produc-
tion of cover crops.
‘‘(IV) Partial field conservation
practices (including windbreaks, grass
waterways, shelter belts, filter strips,
riparian buffers, wetland buffers, con-
tour buffer strips, living snow fences,
crosswind trap strips, field borders,
grass terraces, wildlife corridors, and
critical area planting appropriate to
the agricultural operation).
‘‘(V) Fish and wildlife habitat
protection and restoration.
‘‘(VI) Native grassland and prai-
rie protection and restoration.
‘‘(VII) Wetland protection and
restoration.
‘‘(VIII) 
Agroforestry 
practices
and systems.
‘‘(IX) Any other conservation
practice involving modification of the
use of land that the Secretary deter-
mines to be appropriate and com-
parable to other conservation practices
described in this clause.
‘‘(C) TIER III.—
‘‘(i) IN GENERAL.—A conservation se-
curity plan for land enrolled in the con-
servation security program that will be
maintained using Tier III conservation
practices shall—
‘‘(I) address all resources of con-
cern in the total agricultural oper-
ation;
‘‘(II) cover both—
‘‘(aa) conservation practices
that are being implemented as of
the date on which the conserva-
tion security contract is entered
into; and
‘‘(bb) conservation practices
that 
are 
newly 
implemented
under the conservation security
contract; and
‘‘(III) meet applicable resource
management system criteria;
‘‘(ii) CONSERVATION
PRACTICES.—
Tier III conservation practices shall consist
of, as appropriate for the agricultural oper-
ation of an owner or operator—
‘‘(I) appropriate Tier I and Tier
II conservation practices; and
‘‘(II) development, implementa-
tion, and maintenance of a conserva-
tion security plan that, over the term
of 
the 
conservation 
security
contract—
‘‘(aa) integrates a full com-
plement of conservation practices
to foster environmental enhance-
ment and the long-term sustain-
ability of the natural resource
base of an agricultural operation;
and
‘‘(bb) improves profitability
and quality of life associated with
the agricultural operation.
‘‘(e) CONSERVATION SECURITY CONTRACTS.—
‘‘(1) IN GENERAL.—On approval of a conserva-
tion security plan of an owner or operator, the Sec-
retary shall enter into a conservation security con-
tract with the owner or operator to enroll the land
covered by the conservation security plan in the con-
servation security program.
‘‘(2) TERM.—Subject to paragraphs (3) and
(4)—
‘‘(A) a conservation security contract for
land enrolled in the conservation security pro-
gram that will be maintained using 1 or more
Tier I conservation practices shall have a term
of 5 years; and
‘‘(B) a conservation security contract for
land enrolled in the conservation security pro-
gram that implements a conservation security
plan that meets the requirements of subpara-
graph (B) or (C) of subsection (d)(5) shall have
a term of 5 to 10 years, at the option of the
owner or operator.
‘‘(3) MODIFICATIONS.—
‘‘(A) OPTIONAL MODIFICATIONS.—
‘‘(i) IN GENERAL.—An owner or oper-
ator may apply to the Secretary to modify
the conservation security plan in a manner
consistent with the purposes of the con-
servation security program.
‘‘(ii) 
APPROVAL
BY
THE
SEC-
RETARY.—Any modification under clause
(i)—
‘‘(I) shall be approved by the
Secretary; and
‘‘(II) shall authorize the Sec-
retary to redetermine, if necessary,
the amount and timing of the pay-
ments pursuant to the conservation
is 90 days after the date of receipt of the
written request for the modification.
‘‘(iv) TERMINATION.—An owner or
operator that is required to modify a con-
servation security contract under this sub-
paragraph may, in lieu of modifying the
contract—
‘‘(I) terminate the conservation
security contract; and
‘‘(II) retain payments received
under the conservation security con-
tract, if the owner or operator fully
complied with the obligations of the
owner or operator under the conserva-
tion security contract.
‘‘(4) RENEWAL.—
‘‘(A) IN GENERAL.—At the option of an
owner or operator, the conservation security
contract of the owner or operator may be re-
newed, for a term described in subparagraph
(B), if—
‘‘(i) the owner or operator agrees to
any modification of the applicable con-
servation security contract that the Sec-
retary determines to be necessary to
achieve the purposes of the conservation
security program;
‘‘(ii) the Secretary determines that
the owner or operator has complied with
the terms and conditions of the conserva-
tion security contract, including the con-
servation security plan; and
‘‘(iii) in the case of a conservation se-
curity contract for land previously enrolled
at the tier I level in the conservation secu-
rity program, the owner or operator shall
increase the level of conservation treatment
on lands enrolled in the conservation secu-
rity program by—
‘‘(I) adopting new conservation
practices; or
‘‘(II) expanding existing practices
to meet the resource management sys-
tems criteria.
‘‘(B) TERMS OF RENEWAL.—Under sub-
paragraph (A)—
‘‘(i) a conservation security contract
for land enrolled in the conservation secu-
rity program that will be maintained using
a Tier I conservation practice may be re-
newed for 5-year terms;
‘‘(ii) a conservation security contract
for land enrolled in the conservation secu-
rity program that will be maintained using
a Tier II or Tier III conservation practice
may be renewed for 5-year to 10-year
terms, at the option of the owner or oper-
ator; and
‘‘(iii) previous participation in the
conservation security program does not bar
renewal more than once.
‘‘(f) NO VIOLATION FOR NONCOMPLIANCE DUE TO
CIRCUMSTANCES BEYOND THE CONTROL OF THE OWNER
OR OPERATOR.—The Secretary shall include in the con-
servation security contract a provision, and may modify
a conservation security contract under subsection
(e)(3)(B), to ensure that an owner or operator shall not
be considered in violation of a conservation security con-
tract for failure to comply with the conservation security
contract due to circumstances beyond the control of the
owner or operator, including a disaster or related condi-
tion.
‘‘(g) DUTIES OF OWNERS AND OPERATORS.—Under
a conservation security contract, an owner or operator
shall agree, during the term specified under the conserva-
tion security contract—
‘‘(1) to implement the applicable conservation
security plan approved by the Secretary;
‘‘(2) to keep appropriate records showing the
effective and timely implementation of the conserva-
tion security plan;
‘‘(3) not to engage in any activity that would
interfere with the purposes of the conservation secu-
rity plan;
‘‘(4) at the option of the Secretary, to refund
all or a portion of the payments to the Secretary if
the owner or operator fails to maintain a conserva-
tion practice, as specified in the conservation secu-
rity contract; and
‘‘(5) on the violation of a term or condition of
the conservation security contract—
‘‘(A) if the Secretary determines that the
violation warrants termination of the conserva-
tion security contract—
‘‘(i) to forfeit all rights to receive pay-
ments under the conservation security con-
tract; and
‘‘(ii) to refund to the Secretary all or
a portion of the payments received by the
owner or operator under the conservation
security contract, including an advance
payment and interest on the payments, as
determined by the Secretary; or
‘‘(B) if the Secretary determines that the
violation does not warrant termination of the
conservation security contract, to refund to the
Secretary, or accept adjustments to, the pay-
ments provided to the owner or operator, as the
Secretary determines to be appropriate.
‘‘(h) DUTIES OF THE SECRETARY.—
‘‘(1) ADVANCE
PAYMENT.—At the time at
which a person enters into a conservation security
contract, the Secretary shall make an advance pay-
ment to the person in an amount not to exceed—
‘‘(A) in the case of a contract to maintain
Tier I conservation practices described in sub-
section (d)(5)(A), the greater of—
‘‘(i) $1,000; or
‘‘(ii) 20 percent of the value of the
annual payment under the contract, as de-
termined by the Secretary;
‘‘(B) in the case of a contract to maintain
Tier II conservation practices described in sub-
section (d)(5)(B), the greater of—
‘‘(i) $2,000; or
‘‘(ii) 20 percent of the value of the
annual payment under the contract, as de-
termined by the Secretary; or
‘‘(C) in the case of a contract to maintain
Tier III conservation practices described in sub-
section (d)(5)(C), the greater of—
‘‘(i) $3,000; or
‘‘(ii) 20 percent of the value of the
annual payment under the contract, as de-
termined by the Secretary.
‘‘(2) ANNUAL PAYMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) through (F), under a conservation
security contract, the Secretary shall, in
amounts and for a period of years specified in
the conservation security contract and taking
into account any advance payments, make an
annual payment to the person in an amount not
to exceed—
‘‘(i) in the case of a contract to main-
tain Tier I conservation practices described
in subsection (d)(5)(A), $20,000;
‘‘(ii) in the case of a contract to main-
tain Tier II conservation practices de-
scribed in subsection (d)(5)(B), $35,000;
or
‘‘(iii) in the case of a contract to
maintain Tier III conservation practices
described in subsection (d)(5)(C), $50,000.
‘‘(B) INFLATION ADJUSTMENT.—The Sec-
retary may periodically, including at the time at
which a conservation security contract is re-
newed, adjust the payment and payment limita-
tions under subparagraph (A) to reflect changes
in the Prices Paid by Farmers Index.
‘‘(C) TIME OF PAYMENT.—The Secretary
shall provide payment under a conservation se-
curity contract as soon as practicable after Oc-
tober 1 of each calendar year.
‘‘(D) 
CRITERIA
FOR
DETERMINING
AMOUNT OF PAYMENTS.—Subject to subpara-
graphs (A) and (F), the Secretary shall estab-
lish criteria for determining the amount of an
annual payment to a person under this para-
graph that—
‘‘(i) shall be as objective and trans-
parent as practicable; and
‘‘(ii) shall be based on—
‘‘(I) to the maximum extent prac-
ticable, outcome-based factors related
to the natural resource and environ-
mental benefits that result from the
adoption, maintenance, and improve-
ment in implementation of the con-
servation practices carried out by the
person;
‘‘(II) 
practice-based 
factors,
including—
‘‘(aa) the number of eligible
practices established or main-
tained;
‘‘(bb) the schedule for the
conservation practices described
in subsection (c)(1)(C);
‘‘(cc) the cost of the adop-
tion, maintenance, and improve-
ment in implementation of con-
servation practices that are newly
implemented under the conserva-
tion security contract;
‘‘(dd) the extent to which
compensation will ensure mainte-
nance and improvement of con-
servation practices that are or
have been implemented;
‘‘(ee) the extent to which the
conservation security plan meets
applicable resource management
system standards;
‘‘(ff) the extent to which the
conservation security plan ad-
dresses State and local conserva-
tion priorities as provided for
under subsection (c)(3); and
‘‘(gg) the extent of activities
undertaken beyond what is re-
quired to comply with any appli-
cable Federal agricultural law;
‘‘(III) additional cost factors,
including—
‘‘(aa) the income loss or eco-
nomic value forgone by the per-
son due to land use adjustments
resulting 
from 
the 
adoption,
maintenance, and improvement
of conservation practices;
‘‘(bb) the costs associated
with any on-farm research, dem-
onstration, or pilot testing com-
ponents of the conservation secu-
rity plan; and
‘‘(cc) the costs associated
with monitoring and evaluating
results under the conservation se-
curity plan; and
‘‘(IV) such other factors as the
Secretary determines to be appro-
priate to encourage participation in
the conservation security program and
to reward environmental stewardship.
‘‘(E) BONUS PAYMENT.—Subject to sub-
paragraph (A), the Secretary shall offer bonus
payments based on—
‘‘(i) participation in a watershed or
regional resource conservation plan involv-
ing at least 75 percent of landowners in
the targeted area; and
‘‘(ii) the special considerations associ-
ated with an owner or operator that is a
qualified beginning farmer or rancher (as
defined in section 343(a) of the Consoli-
dated Farm and Rural Development Act (7
U.S.C. 1991(a))).
‘‘(F) LAND
ENROLLED
IN
OTHER
CON-
SERVATION PROGRAMS.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, if an owner or
operator has land enrolled in another con-
servation program administered by the
Secretary and has applied to enroll the
same land in the conservation security pro-
gram, the owner or operator may elect
to—
‘‘(I) convert the contract under
the other conservation program to a
conservation security contract, with-
out penalty, except that this subclause
shall not apply to a long-term perma-
nent conservation or easement; or
‘‘(II) have each annual payment
to the owner or operator under this
paragraph reduced to reflect payment
for practices the owner or operator re-
ceives under the other conservation
program, except that the annual pay-
ment under this paragraph may in-
clude incentives for qualified practices
that enhance or extend the conserva-
tion benefit achieved under the other
conservation program.
‘‘(ii) PAYMENT
LIMITATIONS.—If an
owner or operator has identical land en-
rolled in the conservation security program
and 1 or more other conservation pro-
grams administered by the Secretary, the
Secretary shall include all payments, other
than easement or rental payments, from
the conservation security program and the
other conservation programs in applying
the annual payment limitations under sub-
paragraph (A).
‘‘(iii) PAYMENT FROM NON-FEDERAL
AGRICULTURAL PROGRAMS.—Payments re-
ceived from a Federal program adminis-
tered by the Secretary, or any State, local,
or private agricultural program, shall not
be considered an annual payment for pur-
poses of the annual payment limitations
under subparagraph (A).
‘‘(G) WASTE STORAGE OR TREATMENT FA-
CILITIES.—An annual payment to an owner or
operator under this paragraph shall not be pro-
vided for the purpose of construction or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer
devices for animal feeding operations.
‘‘(3) REGULATIONS.—
‘‘(A) IN
GENERAL.—The Secretary shall
issue regulations—
‘‘(i) defining the term ‘person’ for the
purposes of this chapter—
‘‘(I) which regulations shall con-
form, to the extent practicable, to the
regulations defining the term ‘person’
issued under section 1001; and
‘‘(II) which term shall be defined
so that no individual directly or indi-
rectly may receive payments exceeding
the applicable amount specified in
paragraph (1) or (2);
‘‘(ii) providing adequate safeguards to
protect the interests of tenants and share-
croppers, including provision for sharing,
on a fair and equitable basis; and
‘‘(iii) prescribing such other rules as
the Secretary determines to be necessary
to ensure a fair and reasonable application
of the limitations established under para-
graphs (1) and (2).
‘‘(B) PENALTIES
FOR
SCHEMES
OR
DE-
VICES.—
‘‘(i) IN
GENERAL.—If the Secretary
determines that a person has adopted a
scheme or device to evade, or that has the
purpose of evading, the regulations issued
under subparagraph (A), the person shall
be ineligible to participate in the conserva-
tion security program for the year for
which the scheme or device was adopted
and each of the following 5 years.
‘‘(ii) FRAUD.—If the Secretary deter-
mines that fraud was committed in connec-
tion with the scheme or device, the person
shall be ineligible to participate in the con-
servation security program for the year for
which the scheme or device was adopted
and each of the following 10 years.
‘‘(4) TERMINATION.—
‘‘(A) IN GENERAL.—Subject to subsection
(g), the Secretary shall allow an owner or oper-
ator to terminate the conservation security con-
tract.
‘‘(B) PAYMENTS.—The owner or operator
may retain any or all payments received under
a terminated conservation security contract if—
‘‘(i) the owner or operator is in full
compliance with the terms and conditions,
including any maintenance requirements,
of the conservation security contract; and
‘‘(ii) the Secretary determines that re-
tention of payment will not defeat the
goals enumerated in the conservation secu-
rity plan of the owner or operator.
‘‘(5) TRANSFER OR CHANGE OF INTEREST IN
LAND SUBJECT TO CONSERVATION SECURITY CON-
TRACT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the transfer, or change in
the interest, of an owner or operator in land
subject to a conservation security contract shall
result in the termination of the conservation se-
curity contract.
‘‘(B) 
TRANSFER
OF
DUTIES
AND
RIGHTS.—Subparagraph (A) shall not apply if,
not later than 60 days after the date of the
transfer or change in the interest in land, the
transferee of the land provides written notice to
the Secretary that all duties and rights under
the conservation security contract have been
transferred to the transferee.
‘‘(6) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—For each fiscal year,
the Secretary shall use such sums as are nec-
essary from funds of the Commodity Credit
Corporation to provide technical assistance to
owners and operators for the development and
implementation of conservation security con-
tracts.
‘‘(B) TECHNICAL
ASSISTANCE
PROVIDED
BY PERSONS NOT EMPLOYED BY THE DEPART-
MENT OF AGRICULTURE.—
‘‘(i) IN
GENERAL.—Under subpara-
graph (A), subject to clause (ii), technical
assistance provided by qualified persons
not employed by the Department of Agri-
culture, including farmers, ranchers, and
local conservation district personnel, may
include—
‘‘(I) conservation planning;
‘‘(II) design, installation, and
certification of conservation practices;
‘‘(III) training for producers; and
‘‘(IV) such other activities as the
Secretary determines to be appro-
priate.
‘‘(ii) OUTSIDE ASSISTANCE.—
‘‘(I) IN
GENERAL.—The Sec-
retary may contract directly with
qualified persons not employed by the
Department of Agriculture to provide
technical assistance.
‘‘(II) 
PAYMENT
BY
SEC-
RETARY.—The Secretary may provide
a payment or voucher to an owner or
operator enrolled in the conservation
security program if the owner or oper-
ator chooses to contract with qualified
persons not employed by the Depart-
ment of Agriculture.
‘‘(iii) COORDINATION
BY
THE
SEC-
RETARY.—The Secretary shall provide
overall technical coordination and leader-
ship for the conservation security program,
including final approval of all conservation
security plans.
‘‘(7) EDUCATION, 
OUTREACH, 
MONITORING,
AND EVALUATION.—
‘‘(A) IN GENERAL.—
‘‘(i) FUNDING.—In addition to the
amounts made available under paragraph
(6), for each fiscal year, the Secretary
shall use such sums as are necessary from
funds of the Commodity Credit Corpora-
tion to carry out education, outreach, mon-
itoring, and evaluation activities in support
of the conservation security program, of
which not less than 50 percent of the sums
shall be used for monitoring and evaluation
activities.
‘‘(ii) AMOUNT.—For each fiscal year,
the amount made available under clause (i)
shall be not less than 40 percent of the
amount made available for technical assist-
ance under paragraph (6) for the fiscal
year.
‘‘(B) USE OF PERSONS NOT AFFILIATED
WITH DEPARTMENT OF AGRICULTURE.—
‘‘(i) IN
GENERAL.—In carrying out
activities described in subparagraph (A),
the Secretary may use persons not em-
ployed by the Department of Agriculture,
including networks of agricultural pro-
ducers operating in a small watershed,
local conservation district personnel, or
other appropriate local entity.
‘‘(ii) EDUCATION, OUTREACH, AND
MONITORING.—The Secretary may con-
tract with private non-profit, community-
based organizations, and educational insti-
tutions with demonstrated experience in
providing education, outreach, monitoring,
evaluation, or related services to agricul-
tural producers (including owners and op-
erators of small and medium-size farms,
socially disadvantaged agricultural pro-
ducers, and limited resource agricultural
producers).
‘‘(C) 
INCLUDED
ACTIVITIES.—Activities
described in subparagraph (A) may include in-
novative uses of computer technology and re-
mote sensing to monitor and evaluate resource
and environmental results on a local, regional,
or national level.
‘‘(8) SOCIALLY DISADVANTAGED AND LIMITED
RESOURCE
OWNERS
AND
OPERATORS.—The Sec-
retary shall provide outreach, training, and technical
assistance specifically to encourage and assist so-
provide the owner or operator with mediation serv-
ices or an informal hearing on the decision.
‘‘(i) REPORTS.—Not later than 18 months after the
date of enactment of this chapter and at the end of each
2-year period thereafter, the Secretary shall submit to
Congress a report evaluating the results of the conserva-
tion security program, including—
‘‘(1) an evaluation of the scope, quality, and
outcomes of the conservation practices carried out
under this section; and
‘‘(2) recommendations for achieving specific
and quantifiable improvements for each of the pur-
poses specified in subsection (a).
‘‘(j) FUNDING.—Of the funds of the Commodity
Credit Corporation, the Corporation shall make available
to carry out this chapter such sums as are necessary, to
remain available until expended.
‘‘(k) EXEMPTION FROM AUTOMATIC SEQUESTER.—
Notwithstanding any other provision of law, no order
issued for any fiscal year under section 252 of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 902) shall affect any payment under this chap-
ter.’’.
(b) ADMINISTRATION.—Section 1243(a) of the Food
Security Act of 1985 (16 U.S.C. 3843(a)) is amended—
(1) in paragraph (1)(C), by striking ‘‘and’’ at
the end;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) the conservation security program estab-
lished under chapter 6 of subtitle D.’’.
(c) 
STATE
TECHNICAL
COMMITTEES.—Section
1262(c)(8) of the Food Security Act of 1985 (16 U.S.C.
3862(c)(8)) is amended by striking ‘‘chapter 4’’ and in-
serting ‘‘chapters 4 and 6’’.
SEC. 4. REGULATIONS.
The Secretary of Agriculture shall promulgate such
regulations as are necessary to carry out this Act and the
amendments made by this Act.
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