I 
112TH CONGRESS 
1ST SESSION H. R. 3111 
To reform and reauthorize agricultural programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 5, 2011 
Mr. STUTZMAN introduced the following bill; which was referred to the Com-
mittee on Agriculture, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To reform and reauthorize agricultural programs, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Rural Economic Farm and Ranch Sustainability and 
Hunger Act of 2011’’ or the ‘‘REFRESH Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Secretary. 
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TITLE I—PRODUCER SAFETY NET 
Subtitle A—Revenue-Based Safety Net 
Sec. 1001. Aggregate risk and revenue management program. 
Sec. 1002. Supplemental insurance. 
Subtitle B—Federal Crop Insurance Program 
Sec. 1201. Whole farm revenue insurance tools. 
Sec. 1202. Insurance availability. 
Sec. 1203. Crop insurance education assistance. 
Subtitle C—Sugar Program Repeal 
Sec. 1301. Repeal of sugar program. 
Sec. 1302. Elimination of sugar price support and production adjustment pro-
grams. 
Sec. 1303. Elimination of sugar tariff and over-quota tariff rate. 
Sec. 1304. Application. 
Subtitle D—Dairy Program Reform 
PART I—DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET 
STABILIZATION PROGRAMS 
Sec. 1401. Definitions. 
Sec. 1402. Calculation of average feed cost and actual dairy producer margins. 
SUBPART A—DAIRY PRODUCER MARGIN PROTECTION PROGRAM 
Sec. 1411. Establishment of dairy producer margin protection program. 
Sec. 1412. Eligibility and registration of dairy producers for margin protection 
program. 
Sec. 1413. Production history and annual production quantity of participating 
dairy producers. 
Sec. 1414. Basic margin protection. 
Sec. 1415. Supplemental margin protection. 
Sec. 1416. Effect of failure to pay administrative fees or premiums. 
Sec. 1417. No payment limitations. 
SUBPART B—DAIRY MARKET STABILIZATION PROGRAM 
Sec. 1431. Establishment of dairy market stabilization program. 
Sec. 1432. Threshold for implementation and reduction in dairy producer pay-
ments. 
Sec. 1433. Producer milk marketings information. 
Sec. 1434. Calculation and collection of reduced dairy producer payments. 
Sec. 1435. Remitting monies to Commodity Credit Corporation. 
Sec. 1436. Suspension of reduced payment requirement. 
Sec. 1437. Audit requirements. 
Sec. 1438. Board of directors. 
SUBPART C—COMMODITY CREDIT CORPORATION 
Sec. 1451. Use of Commodity Credit Corporation. 
SUBPART D—DURATION 
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Sec. 1461. Duration. 
PART II—FEDERAL MILK MARKETING ORDER REFORM 
Sec. 1471. Required amendments to Federal milk marketing orders. 
Sec. 1472. Amendment process. 
Sec. 1473. Development of effective balancing programs for milk markets. 
Sec. 1474. Study on elimination of milk marketing orders. 
PART III—REPEAL OF SUPERSEDED PROVISIONS 
Sec. 1481. Repeal of dairy product price support and milk income loss contract 
programs. 
Sec. 1482. Repeal of permanent price support authority for milk. 
Sec. 1483. Repeal of dairy export incentive program. 
Sec. 1484. Effective date. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve Program 
Sec. 2001. Conservation reserve program. 
Sec. 2002. Pilot program for enrollment of wetland and buffer acreage in con-
servation reserve. 
Sec. 2003. Duties of owners and operators. 
Sec. 2004. Payments. 
Sec. 2005. Contracts. 
Sec. 2006. Conversion of land subject to contract to other conserving uses. 
Subtitle B—Easement Benefits Program 
Sec. 2101. Easement benefits program. 
Subtitle C—Working Land Program 
Sec. 2201. Working land program. 
Subtitle D—Other Conservation Programs 
Sec. 2301. Other conservation programs of the Food Security Act of 1985. 
Sec. 2302. Funding of conservation programs under Food Security Act of 
1985. 
Sec. 2303. Cooperative conservation partnership initiative. 
Sec. 2304. Administrative requirements for conservation programs. 
Sec. 2305. Repeal of healthy forests reserve program. 
TITLE III—NUTRITION 
Subtitle A—Supplemental Nutrition Assistance Program 
Sec. 3001. Categorical eligibility limitations. 
Sec. 3002. Repeal of funding for employment and training programs. 
Sec. 3003. Repeal of incentive payments to States with low SNAP benefit allo-
cation error rates. 
Sec. 3004. Quality control. 
Subtitle B—Extensions 
Sec. 3101. Supplemental nutrition assistance program. 
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(B) Section 1101(d)(1) of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 
8711(d)(1)) is amended by striking ‘‘average 
crop revenue election’’ and inserting ‘‘aggregate 
risk and revenue management’’. 
(C) Section 1106 of the Food, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8716) 
is amended by striking ‘‘average crop revenue 
election’’ each place it appears in subsections 
(a)(1), (b), and (e) and inserting ‘‘aggregate 
risk and revenue management’’. 
(D) Section 1302(d)(1) of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 
8752(d)(1)) is amended by striking ‘‘average 
crop revenue election’’ and inserting ‘‘aggregate 
risk and revenue management’’. 
(E) Section 1305 of the Food, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8755) 
is amended by striking ‘‘average crop revenue 
election’’ each place it appears in subsections 
(a)(1), (b), and (e) and inserting ‘‘aggregate 
risk and revenue management’’. 
(F) Section 1001 of the Food Security Act 
of 1985 (7 U.S.C. 1308) is amended— 
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(i) by striking ‘‘ACRE’’ each place it 
appears in the headings of subsections (b) 
and (c) and inserting ‘‘ARRM’’; 
(ii) by striking ‘‘ACRE’’ each place it 
appears in the headings of paragraph (3) 
of subsections (b) and (c) and inserting 
‘‘ARRM’’; and 
(iii) by striking ‘‘average crop revenue 
election’’ each place it appears in sub-
sections (b) and (c) and inserting ‘‘aggre-
gate risk and revenue management’’. 
(G) Section 1001D of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a) is amended— 
(i) in subsection (b)(C)(i), by striking 
‘‘average crop revenue election’’ and insert-
ing ‘‘aggregate risk and revenue manage-
ment’’; and 
(ii) in subsection (f), by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 1002. SUPPLEMENTAL INSURANCE. 
(a) IN GENERAL.—Section 508(c)(4) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended— 
(1) by striking ‘‘The level of coverage’’ and in-
serting the following: 
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‘‘(A) BASIC COVERAGE.—The level of cov-
erage’’; 
(2) by striking ‘‘Not later than’’ and inserting 
the following: 
‘‘(B) PROVISION
OF
INFORMATION.—Not 
later than’’; and 
(3) by adding at the end the following: 
‘‘(C) SUPPLEMENTAL COVERAGE.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
paragraph (3) and subparagraph (A), the 
Corporation may offer supplemental cov-
erage, based on an area yield and loss 
basis, to cover that portion of a crop loss 
not covered under the individual yield and 
loss basis plan of insurance of a producer, 
including any revenue plan of insurance 
with coverage based in part on individual 
yield and loss. 
‘‘(ii) LIMITATION.—The sum of the 
indemnity paid to the producer under the 
individual yield and loss plan of insurance 
and the supplemental coverage may not ex-
ceed 100 percent of the loss incurred by 
the producer for the crop. 
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‘‘(iii) ADMINISTRATIVE
AND
OPER-
ATING
EXPENSE
REIMBURSEMENT.—Not-
withstanding subsection (k)(4), the reim-
bursement rate for approved insurance 
providers for the supplemental coverage 
shall equal 6 percent of the premium used 
to define the loss ratio. 
‘‘(iv) DIRECT COVERAGE.—If the Cor-
poration determines that it is in the best 
interests of producers, the Corporation 
may offer supplemental coverage as a Cor-
poration endorsement to existing plans and 
policies of crop insurance authorized under 
this title. 
‘‘(v) PAYMENT OF PORTION OF PRE-
MIUM BY CORPORATION.—Notwithstanding 
subsection (e), the amount of the premium 
to be paid by the Corporation for supple-
mental coverage offered pursuant to this 
subparagraph shall be determined by the 
Corporation, but may not exceed the sum 
of— 
‘‘(I) 50 percent of the amount of 
premium established under subsection 
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(d)(2)(C)(i) for the coverage level se-
lected; and 
‘‘(II) the amount determined 
under subsection (d)(2)(C)(ii) for the 
coverage level selected to cover oper-
ating and administrative expenses.’’. 
(b) CONFORMING AMENDMENTS.—Section 508(d)(2) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) 
is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘additional coverage’’ and inserting ‘‘ad-
ditional and supplemental coverages’’; and 
(2) by adding at the end the following: 
‘‘(C) In the case of supplemental coverage 
offered under subsection (c)(4)(C), the amount 
of the premium shall— 
‘‘(i) be sufficient to cover anticipated 
losses and a reasonable reserve; and 
‘‘(ii) include an amount for operating 
and administrative expenses, as determined 
by the Corporation on an industry-wide 
basis as a percentage of the amount of the 
premium used to define loss ratio.’’. 
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Subtitle B—Federal Crop 
Insurance Program 
SEC. 1201. WHOLE FARM REVENUE INSURANCE TOOLS. 
(a) ESTABLISHMENT.—Section 508(c) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(c)) is amended by 
adding at the end the following: 
‘‘(11) WHOLE
FARM
INSURANCE
PLAN.—The 
Corporation shall offer a whole farm insurance plan 
that allows a producer to qualify for an indemnity 
if actual gross farm revenue is below 80 percent of 
the average gross farm revenue of the producer.’’. 
(b) ADJUSTED GROSS REVENUE INSURANCE PILOT 
PROGRAM.—Section 523(e) of the Federal Crop Insurance 
Act (7 U.S.C. 1523(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2004’’ and 
inserting ‘‘2014’’; 
(2) in paragraph (2), by striking subparagraph 
(A) and inserting the following: 
‘‘(A) IN GENERAL.—In addition to coun-
ties otherwise included in the pilot program, the 
Corporation shall include in the pilot program 
for each of the 2010 through 2014 reinsurance 
years all States and counties that meet the cri-
teria for selection (pending required rating), as 
determined by the Corporation.’’; and 
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which the Secretary has announced the sta-
bilization program will become effective. 
(c) 
TREATMENT
OF
MULTI-PRODUCER
OPER-
ATIONS.—As provided in section 1412(b)(2), if a dairy op-
eration consists of more than one dairy producer, all of 
the dairy producers of the operation shall be treated as 
a single participating dairy producer for purposes of oper-
ation of the stabilization program with respect to the pro-
ducers. 
(d) TREATMENT OF PRODUCERS WITH MULTIPLE 
DAIRY OPERATIONS.—As provided in section 1412(b)(3), 
if a participating dairy producer operates two or more 
dairy operations, only those dairy operations of the dairy 
producer registered under section 1412 shall be subject 
to the stabilization program. 
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND RE-
DUCTION IN DAIRY PRODUCER PAYMENTS. 
(a) WHEN STABILIZATION PROGRAM REQUIRED.— 
The Secretary shall announce that the stabilization pro-
gram is in effect and order reduced payments for any par-
ticipating dairy producer that exceeds the applicable per-
centage of the producer’s stabilization program base when-
ever— 
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(1) the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for the im-
mediately preceding two months; or 
(2) the actual dairy producer margin has been 
$4.00 or less per hundredweight of milk for the im-
mediately preceding month. 
(b) EFFECTIVE DATE
FOR IMPLEMENTATION
OF 
PAYMENT REDUCTIONS.—Reductions in dairy producer 
payments shall commence beginning on the first day of 
the month immediately following the announcement by the 
Secretary under subsection (a). 
SEC. 1433. PRODUCER MILK MARKETINGS INFORMATION. 
(a) COLLECTION OF MILK MARKETING DATA.—For 
each month during which the stabilization program is in 
effect, each handler shall calculate the following: 
(1) The volume of milk marketings the handler 
has received from each participating dairy producer 
during that month. 
(2) The volume of milk marketings the handler 
has received from each participating dairy producer 
during the same month of the preceding year. 
(3) The volume of milk marketings the handler 
has received from each participating dairy producer 
during each of the three months preceding the 
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month in which the Secretary makes the announce-
ment that the stabilization program will be in effect. 
(b) EFFECT OF CHANGING HANDLERS.—If a partici-
pating dairy producer changes handlers, the producer shall 
ensure that milk marketings data required to make the 
calculations under subsection (a) is provided to the new 
handler. 
SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 
DAIRY PRODUCER PAYMENTS. 
(a) REDUCED PRODUCER PAYMENTS REQUIRED.— 
During any month in which payment reductions are in ef-
fect under the stabilization program, each handler shall 
reduce payments to each participating dairy producer 
from whom the handler receives milk. 
(b) REDUCTIONS BASED ON ACTUAL DAIRY PRO-
DUCER MARGIN.— 
(1) REDUCTION REQUIREMENT 1.—Unless the 
reduction required by paragraph (2) or (3) applies, 
when the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for two con-
secutive months, the handler shall make payments to 
a participating dairy producer for a month based on 
the greater of the following: 
(A) 98 percent of the stabilization program 
base of the dairy producer. 
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(B) 94 percent of the marketings of milk 
for the month by the producer. 
(2) REDUCTION REQUIREMENT 2.—Unless the 
reduction required by paragraph (3) applies, when 
the actual dairy producer margin has been $5.00 or 
less per hundredweight of milk for two consecutive 
months, the handler shall make payments to a par-
ticipating dairy producer for a month based on the 
greater of the following: 
(A) 97 percent of the stabilization program 
base of the dairy producer. 
(B) 93 percent of the marketings of milk 
for the month by the producer. 
(3) REDUCTION
REQUIREMENT
3.—When the 
actual dairy producer margin has been $4.00 or less 
for any one month, the handler shall make payments 
to a participating dairy producer for a month based 
on the greater of the following: 
(A) 96 percent of the stabilization program 
base of the dairy producer. 
(B) 92 percent of the marketings of milk 
for the month by the producer. 
(c) CONTINUATION OF REDUCTIONS.—The largest 
level of payment reduction required under paragraph (1), 
(2), or (3) of subsection (b) shall be continued for each 
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month until the Secretary suspends the stabilization pro-
gram and terminates payment reductions in accordance 
with section 1436. 
(d) PAYMENT REDUCTION EXCEPTION.—Notwith-
standing any preceding subsection of this section, a han-
dler shall make no payment reductions for a dairy pro-
ducer for a month if the producer’s milk marketings for 
the month are equal to or less than the percentage of the 
stabilization program base applicable to the producer 
under paragraph (1), (2), or (3) of subsection (b). 
SEC. 1435. REMITTING MONIES TO COMMODITY CREDIT 
CORPORATION. 
(a) REMITTING MONIES.—As soon as practicable 
after the end of each month during which payment reduc-
tions are in effect under the stabilization program, each 
handler shall remit to the Commodity Credit Corporation 
an amount equal to the amount by which payments to par-
ticipating dairy producers are reduced by the handler 
under section 1434. 
(b) AVAILABILITY OF MONIES.—As soon as prac-
ticable after receipt of monies under subsection (a), the 
Commodity Credit Corporation shall make the monies 
available to the board of directors under section 1438. 
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SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE-
MENT. 
(a) SUSPENSION THRESHOLDS.—The Secretary shall 
suspend the stabilization program whenever the Secretary 
determines that— 
(1) the actual dairy producer margin is greater 
than $6.00 per hundredweight of milk for 2 consecu-
tive months; 
(2)(A) the price for cheddar cheese or non-fat 
dry milk in the United States, as determined by the 
National Agricultural Statistics Service, is not less 
than 97 percent of the world price of cheddar cheese 
or skim milk powder in Oceania, as determined by 
the Secretary, for 2 consecutive months; and 
(B) the dairy producer margin is equal to or 
less than $6 for the same 2 consecutive months; 
(3)(A) the price for cheddar cheese or non-fat 
dry milk in the United States, as determined by the 
National Agricultural Statistics Service, is more 
than 3 percent higher than the world price of ched-
dar cheese or skim milk powder in Oceania, as de-
termined by the Secretary, for 2 consecutive months; 
and 
(B) the dairy producer margin is equal to or 
less than $5 for the same 2 consecutive months; or 
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(4)(A) the price for cheddar cheese or non-fat 
dry milk in the United States, as determined by the 
National Agricultural Statistics Service, is more 
than 6 percent higher than the world price of ched-
dar cheese or skim milk powder in Oceania, as de-
termined by the Secretary, for 2 consecutive months; 
and 
(B) the dairy producer margin is equal to or 
less than $4 for the same 2 consecutive months. 
(b) IMPLEMENTATION
BY
HANDLERS.—Handlers 
shall cease reducing payments to participating dairy pro-
ducers under the stabilization program upon receiving no-
tice of the suspension of the stabilization program from 
the Secretary. 
SEC. 1437. AUDIT REQUIREMENTS. 
(a) AUDITS OF PRODUCER AND HANDLER COMPLI-
ANCE.— 
(1) AUDITS
AUTHORIZED.—If determined by 
the Secretary to be necessary to ensure compliance 
by participating dairy producers and handlers with 
the stabilization program, the Secretary may con-
duct periodic audits of participating dairy producers 
and handlers. 
(2) SAMPLE OF DAIRY PRODUCERS.—Any audit 
conducted under this subsection shall include, at a 
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minimum, investigation of a statistically valid and 
random sample of participating dairy producers. 
(b) AUDIT BY INSPECTOR GENERAL.— 
(1) AUDIT REQUIRED.—At the end of the sec-
ond year of operation of the stabilization program, 
the Inspector General of the Department of Agri-
culture shall audit and evaluate the effectiveness of 
the stabilization program. In conducting the audit 
and evaluation, the Inspector General shall include 
the use of established dairy economic models to as-
certain the effectiveness, operation, and administra-
tion of the program. 
(2) SUBMISSION OF RESULTS.—The Inspector 
General shall submit the results of the audit and 
evaluation conducted under paragraph (1) to the 
Secretary, who shall make such recommendations to 
Congress as the Secretary considers appropriate re-
garding the stabilization program. 
SEC. 1438. BOARD OF DIRECTORS. 
(a) ESTABLISHMENT; PURPOSE.—The Secretary 
shall establish a board of directors for the stabilization 
program for the purpose of— 
(1) administering the monies made available to 
the board of directors under section 1435; and 
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(2) determining the most effective use of such 
monies. 
(b) APPOINTMENT OF DIRECTORS.— 
(1) NUMBER AND QUALIFICATIONS.—The Sec-
retary shall appoint 15 members to serve on the 
board of directors, who shall be representative of the 
United States dairy producer community, taking 
into account geographical diversity, cooperative 
membership, and volumes of milk produced in var-
ious States and regions. 
(2) REIMBURSEMENT
OF
EXPENSES.—Monies 
made available to the board of directors under sec-
tion 1435 may be used to reimburse a member of 
the board of directors for reasonable and appro-
priate costs incurred by the member to serve on the 
board of directors. 
(c) DECISIONMAKING.—The board of directors shall 
reach decisions by an affirmative vote of 2⁄3 of its mem-
bers. 
(d) REMOVAL OF DAIRY PRODUCTS AND EXPANSION 
OF DEMAND.— 
(1) SPENDING AUTHORITY.—The board of di-
rectors shall have the authority to use monies made 
available to the board of directors under section 
1435— 
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(A) to purchase dairy products through 
commercial sources for donation to food banks 
and other food programs that the Board deter-
mines appropriate, within three months of col-
lecting the funds; and 
(B) to expand consumption and build de-
mand for dairy products. 
(2) NO DUPLICATION OF EFFORT.—The board 
of directors shall ensure that projects supported 
under paragraph (1) are compatible with, and do not 
duplicate, programs supported by the dairy research 
and promotion activities conducted under the Dairy 
Production Stabilization Act of 1983 (7 U.S.C. 4501 
et seq.). 
(3) MANAGEMENT
CONTRACT.—The board of 
directors may enter into a contract with a managing 
entity to carry out this subsection. 
(e) ACCOUNTING AND REPORTING REQUIREMENT.— 
(1) ACCOUNTING.—The board of directors shall 
keep an accurate account of all monies made avail-
able to the board of directors under section 1435. 
(2) REPORTING.—Not later than December 31 
of each year that the stabilization program is in ef-
fect, the board of directors shall provide to the Com-
mittee on Agriculture of the House of Representa-
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tives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that provides an 
accurate accounting of the monies received by the 
board of directors during that year and all expendi-
tures made by the board of directors during that 
year. 
Subpart C—Commodity Credit Corporation 
SEC. 1451. USE OF COMMODITY CREDIT CORPORATION. 
The Secretary shall use the funds, facilities, and the 
authorities of the Commodity Credit Corporation to carry 
out this part. 
Subpart D—Duration 
SEC. 1461. DURATION. 
The Secretary shall conduct the margin protection 
program and the stabilization program during the period 
beginning on January 1, 2012, and ending on December 
31, 2017. 
PART II—FEDERAL MILK MARKETING ORDER 
REFORM 
SEC. 1471. REQUIRED AMENDMENTS TO FEDERAL MILK 
MARKETING ORDERS. 
(a) AMENDMENTS REQUIRED.— 
(1) IN GENERAL.—The Secretary of Agriculture 
shall amend each Federal milk marketing order 
issued under section 8c of the Agricultural Adjust-
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ment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act 
of 1937 (in this part referred to as a ‘‘milk mar-
keting order’’), as required by this section. 
(2) RELATION
TO
OTHER
LAWS.—Except as 
provided in section 1472, the Secretary shall execute 
the amendments required by this section without re-
gard to any provision of section 8c of the Agricul-
tural Adjustment Act (7 U.S.C. 608c), reenacted 
with amendments by the Agricultural Marketing 
Agreement Act of 1937, as in effect on the day be-
fore the date of the enactment of this Act. 
(b) USE OF END-PRODUCT PRICE FORMULAS.—The 
Secretary shall eliminate the use of end-product price for-
mulas for setting prices for Class III milk, and instead 
use a competitive price for setting prices for Class III 
milk. 
(c) ADMINISTRATIVE AUTHORITY.—In addition to 
and notwithstanding the authority provided under section 
8d of the Agricultural Adjustment Act (7 U.S.C. 608d), 
reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, the Secretary may— 
(1) require handlers to report, maintain, and 
make available all information and records as the 
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Secretary considers necessary for the administration 
of any milk marketing order; and 
(2) adopt only such conforming amendments to 
milk marketing orders as the Secretary determines 
to be necessary to implement the amendments re-
quired by this section. 
SEC. 1472. AMENDMENT PROCESS. 
(a) IN GENERAL.—The amendments to milk mar-
keting orders required to be made by section 1471 shall 
be subject to the provisions of sections 8c(17) and 8c(19) 
of the Agricultural Adjustment Act (7 U.S.C. 608c(17) 
and (19)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, except as follows: 
(1) NOTICE OF FINAL DECISION ON PROPOSED 
AMENDMENTS.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of 
Agriculture shall publish in the Federal Register no-
tice of a final decision on the proposed amendments 
to be made to milk marketing orders in order to 
comply with the requirements of section 1471. 
(2) PRODUCER REFERENDUM.— 
(A) REFERENDUM REQUIRED.—As soon as 
practicable after publication of the final deci-
sion on the proposed amendments under para-
graph (1), the Secretary shall conduct a pro-
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ducer referendum regarding the final decision 
on the proposed amendments. 
(B) TERMS
OF
REFERENDUM; 
EXCEP-
TIONS.—The producer referendum shall be con-
ducted in the manner provided by section 
8c(19) of the Agricultural Adjustment Act (7 
U.S.C. 608c(19)), reenacted with amendments 
by the Agricultural Marketing Agreement Act 
of 1937, except that— 
(i) the referendum shall be a single 
referendum upon which approval or failure 
of the proposed amendments to all milk 
marketing orders shall depend; and 
(ii) the proposed amendments shall re-
quire approval by 1⁄2 of participating pro-
ducers or by volume of production (rather 
than 2⁄3) in order for the referendum to 
pass and the proposed amendments to take 
effect. 
(C) EFFECT
OF
FAILURE.—If the ref-
erendum fails, the milk marketing orders shall 
remain in force as in effect before the proposed 
amendments were published. 
(b) EFFECT OF COURT ORDER.—In the event that 
the Secretary is enjoined or otherwise restrained by a 
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court order from executing the amendments to milk mar-
keting orders required by section 1471, the length of time 
for which that injunction or other restraining order is ef-
fective shall be added to any time limitation in effect under 
paragraph (1) or (2) of subsection (a), thereby extending 
those time limitations by a period of time equal to the 
period of time for which the injunction or other restraining 
order is in effect. 
(c) RELATION
TO OTHER AMENDMENT AUTHOR-
ITY.—Nothing in this part affects the authority of the Sec-
retary to subsequently amend milk marketing orders, or 
the ability of producers or other persons to seek such 
amendments, in accordance with the rulemaking process 
provided by section 8c(17) of the Agricultural Adjustment 
Act (7 U.S.C. 608c(17)), reenacted with amendments by 
the Agricultural Marketing Agreement Act of 1937. 
SEC. 1473. DEVELOPMENT OF EFFECTIVE BALANCING PRO-
GRAMS FOR MILK MARKETS. 
(a) ADVANCED
NOTICE
OF
PROPOSED
RULE-
MAKING.—Not later than 90 days after the enactment of 
this Act, the Secretary of Agriculture shall publish in the 
Federal Register an Advanced Notice of Proposed Rule-
making seeking public comment on, and proposals recom-
mending, effective programs that address the issues of the 
costs of balancing milk markets, including the use of inter- 
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and intra-marketing transportation credits. The Secretary 
shall solicit comments and proposals that— 
(1) address the market’s balancing needs; 
(2) target support to those producers and han-
dlers who provide balancing services; and 
(3) provide compensation that is in line with 
the costs of providing the services and with the bene-
fits to the market of the services. 
(b) TIMELINESS OF RULEMAKING.—Not later than 
one year after the date of the enactment of this Act, the 
Secretary shall— 
(1) initiate formal rulemaking (by publishing in 
the Federal Register a hearing notice) in response to 
the public comments received under subsection (a); 
or 
(2) publish notice of the reasons that such a 
rulemaking is not to be initiated. 
SEC. 1474. STUDY ON ELIMINATION OF MILK MARKETING 
ORDERS. 
(a) IN GENERAL.—The Secretary shall study the ef-
fects on the marketplace associated with the elimination 
of the Federal milk marketing orders. 
(b) REQUIREMENTS.—The study under this section 
shall, at a minimum, address— 
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(1) the regional differences in milk prices that 
would result from the elimination of the Federal 
milk marketing orders, compared to the regional dif-
ferences derived from the order system in effect on 
the day before the date of enactment of this Act; 
(2) shifts in milk production patterns and prod-
uct use that would derive from the elimination; 
(3) an examination of changes in the flow of 
milk and what would be required for milk to move 
from surplus to deficit regions in the absence of the 
orders; 
(4) the potential for any premiums to be paid 
for milk in fluid use form and what, if any, regional 
differences in those premiums might exist; 
(5) the potential impact on export markets; and 
(6) potential changes in market price volatility. 
(c) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary shall submit to 
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report on the results of the study 
conducted under this section, including any recommenda-
tions. 
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PART III—REPEAL OF SUPERSEDED PROVISIONS 
SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
AND MILK INCOME LOSS CONTRACT PRO-
GRAMS. 
(a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
PROGRAM.—Section 1501 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771) is repealed. 
(b) REPEAL OF MILK INCOME LOSS CONTRACT PRO-
GRAM.—Section 1506 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8773) is repealed. 
SEC. 1482. REPEAL OF PERMANENT PRICE SUPPORT AU-
THORITY FOR MILK. 
(a) REPEAL.— 
(1) IN GENERAL.—Section 201 of the Agricul-
tural Act of 1949 (7 U.S.C. 1446) is amended— 
(A) in subsection (a) (as amended by sec-
tion 1302(c)(3)), by striking ‘‘honey, and milk,’’ 
and inserting ‘‘and honey’’; and 
(B) by striking subsections (c) and (d). 
(2) 
CONFORMING
AMENDMENTS.—Section 
256(j) of the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 906(j)) is amend-
ed— 
(A) by striking paragraph (5); and 
(B) redesignating paragraph (6) as para-
graph (5). 
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(b) EXCLUSION FROM PRICE SUPPORT FOR OTHER 
NONBASIC AGRICULTURAL COMMODITIES.—Section 301 
of the Agricultural Act of 1949 (7 U.S.C. 1447) is amend-
ed by inserting ‘‘(other than milk)’’ after ‘‘agricultural 
commodity’’. 
SEC. 1483. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) IN GENERAL.—Section 153 of the Food Security 
Act of 1985 (15 U.S.C. 713a–14) is repealed. 
(b) CONFORMING AMENDMENTS.—Section 902(2) of 
the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7201(2)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and 
(F) as subparagraphs ((D) and (E). 
SEC. 1484. EFFECTIVE DATE. 
The amendments made by this part shall take effect 
on January 1, 2012. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 2001. CONSERVATION RESERVE PROGRAM. 
(a) IN GENERAL.—Section 1231(a) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831(a)) is amended— 
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(1) by striking ‘‘(a) IN GENERAL.—Through 
the 2012 fiscal year’’ and inserting the following: 
‘‘(a) AUTHORITY.— 
‘‘(1) IN GENERAL.—Through the 2017 fiscal 
year’’; and 
(2) by adding at the end the following: 
‘‘(2) RELATIONSHIP TO EASEMENT BENEFITS 
PROGRAM.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
administer the conservation reserve program in 
conjunction with the easement benefits program 
under subchapter C in a manner that encour-
ages landowners to enroll land in the easement 
benefits program to maximize the long-term 
benefits of fiscal outlay. 
‘‘(B) TRANSFER.—The Secretary shall 
make available to all owners and operators en-
rolled in the conservation reserve program the 
option to transfer the enrolled land into the 
easement benefits program under subchapter C. 
‘‘(3) MINIMIZATION OF COSTS.— 
‘‘(A) NEW CONTRACTS.—In entering into 
contracts under the conservation reserve pro-
gram, the Secretary shall seek to minimize cost 
by allowing limited commercial use of land 
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under contract, as authorized under section 
1232(a)(3) and subparagraphs (A) through (D) 
of section 1232(a)(8). 
‘‘(B) EXISTING CONTRACTS.— 
‘‘(i) IN GENERAL.—Not later than 2 
years after the date of enactment of the 
Rural Economic Farm and Ranch Sustain-
ability and Hunger Act of 2011, the Sec-
retary shall make available a revision of 
contracts in existence on the date of enact-
ment of this subsection to allow limited 
commercial usage under the contracts of 
not less than 5,000,000 acres of land (such 
as for prescribed or routing grazing and 
managed harvesting), subject to conditions 
in section 1232. 
‘‘(ii) USE OF SAVINGS.—Any amounts 
saved through contract revisions described 
in clause (i) may, as determined the Sec-
retary, be used— 
‘‘(I) to expand the provision of 
technical assistance; and 
‘‘(II) to provide incentives for 
owners or operators to shift land into 
the easement benefits program.’’. 
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(b) ELIGIBLE LAND.— 
(1) IN GENERAL.—Section 1231(b) of the Food 
Security Act of 1985 (16 U.S.C. 3831(b)) is amend-
ed— 
(A) in paragraph (4)— 
(i) in subparagraph (B)— 
(I) in clause (i), by striking ‘‘or’’ 
at the end; 
(II) in clause (ii), by adding ‘‘or’’ 
at the end; and 
(III) by adding at the end the 
following: 
‘‘(iii) riparian buffer or filter strip 
planted to grass, shrubs, trees or other ap-
propriate vegetation, as determined by the 
Secretary;’’; and 
(ii) in subparagraph (E), by striking 
‘‘or’’ at the end; 
(B) in subparagraph (5)(B)(ii), by striking 
the period at the end and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(6) subject to subsection (j), land— 
‘‘(A) that is wetland (including a converted 
wetland described in section 1222(b)(1)(A)) 
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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— 
‘‘(i) cropped during at least 3 of 10 
crop years; and 
‘‘(ii) subject to the natural overflow of 
a prairie wetland; or 
‘‘(7) subject to subsection (j), buffer acreage 
that— 
‘‘(A) with respect to land described in sub-
paragraph (A), (B), or (C) of paragraph (6)— 
‘‘(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-
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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 (6), enhances a 
wildlife benefit.’’. 
(2) LIMITATIONS
AND
DUTIES
RELATING
TO 
ENROLLED WETLAND AND BUFFER ACREAGE.—Sec-
tion 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended by adding at the end the 
following: 
‘‘(j) LIMITATIONS AND DUTIES RELATING TO EN-
ROLLED WETLAND AND BUFFER ACREAGE.— 
‘‘(1) ENROLLMENT LIMITATIONS.— 
‘‘(A) WETLAND AND RELATED LAND.— 
‘‘(i) WETLANDS
AND
CONSTRUCTED 
WETLANDS.—The maximum size of any 
land described in subparagraph (A) or (B) 
of subsection (b)(6) that an owner or oper-
ator may enroll in the conservation reserve 
shall be 40 contiguous acres. 
‘‘(ii) 
FLOODED
FARMLAND.—The 
maximum size of any land described in 
subparagraph (D) of subsection (b)(6) that 
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an owner or operator may enroll in the 
conservation reserve shall be 20 contiguous 
acres. 
‘‘(iii) COVERAGE.—All acres described 
in clause (i) or (ii), including acres that 
are ineligible for payment, shall be covered 
by the conservation contract. 
‘‘(B) BUFFER
ACREAGE.—The maximum 
size of any buffer acreage described in sub-
section (b)(7) that an owner or operator may 
enroll in the conservation reserve shall be deter-
mined by the Secretary, in consultation with the 
State Technical Committee. 
‘‘(C) TRACTS.—Except for land described 
in subsection (b)(6)(C) and buffer acreage re-
lating to that land, the maximum size of any el-
igible acreage described in subsection (b)(6) in 
a tract of an owner or operator enrolled in the 
conservation reserve under this section shall be 
40 acres. 
‘‘(2) DUTIES OF OWNERS AND OPERATORS.— 
During the term of a contract entered into involving 
land described in paragraph (6) or (7) of subsection 
(b), an owner or operator shall agree to a prohibi-
tion of commercial use except for activities conducive 
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