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‘‘(2) if the Secretary determines that the viola-
tion does not warrant termination of the conserva-
tion security contract, the producer shall refund to 
the Secretary, or accept adjustments to, the pay-
ments provided to the producer, as the Secretary de-
termines to be appropriate; or 
‘‘(3) some combination of the remedies author-
ized by paragraphs (1) and (2), as determined by 
the Secretary to be appropriate. 
‘‘SEC. 1238C. DUTIES OF THE SECRETARY. 
‘‘(a) IDENTIFICATION OF PRIORITY RESOURCES OF 
CONCERN.— 
‘‘(1) IDENTIFICATION AT STATE LEVEL.—The 
Secretary shall ensure that the identification of pri-
ority resources of concern is made at the State level 
so that each priority resource of concern— 
‘‘(A) represents a significant environmental 
concern, including watershed management or 
wildlife habitat, in the State to which agricul-
tural activities are contributing; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation 
practices and other activities by producers. 
‘‘(2) LIMITATION.—The Secretary shall identify 
not more than 5 resources of concern as priority re-
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sources of concern in a particular watershed or other 
appropriate region or area within a State. 
‘‘(3) ADVICE
AND
CONSULTATION.—The Sec-
retary, with the advice of the appropriate State tech-
nical committee and in consultation with Federal 
and State agencies with expertise related to natural 
resources and environmental quality, shall designate, 
to the extent practicable, each priority resource of 
concern identified under paragraph (1) as either a 
primary, secondary, or tertiary resource of concern. 
‘‘(b) DEVELOPMENT OF RESOURCE-SPECIFIC INDI-
CES.—The Secretary shall develop resource-specific indi-
ces to measure the management intensity with which spe-
cific resources of concern are addressed, for purposes of 
determining eligibility and payments for participants in 
the conservation security program. 
‘‘(c) STEWARDSHIP ENHANCEMENT PAYMENT.— 
‘‘(1) TIMING
OF
PAYMENT.—The Secretary 
shall make a payment under a conservation security 
contract as soon as practicable after October 1 of 
each fiscal year. 
‘‘(2) 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-
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•HR 2419 EH1S 
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation practices and activities 
for which there is no net cost or loss of income 
to the producer, as determined by the Sec-
retary. 
‘‘(3) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide a stewardship enhancement pay-
ment to a producer under a conservation security 
contract to compensate the producer for— 
‘‘(A) ongoing implementation and mainte-
nance of conservation practices, activities, and 
management measures in place on the pro-
ducers operation at the time the conservation 
security contract is accepted; and 
‘‘(B) installation and adoption of new con-
servation practices, activities, and management 
measures or improvements to conservation prac-
tices, activities, and management measures in 
place on the producer’s operation, as required 
by the conservation security contract. 
‘‘(4) PAYMENT AMOUNT.—The amount of the 
stewardship enhancement payment shall be deter-
mined by the Secretary and shall be based, to the 
maximum extent feasible, on—
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‘‘(A) a portion of the actual costs incurred 
by the producer; 
‘‘(B) the income forgone by the producer; 
and 
‘‘(C) resource-specific indices, in any case 
in which such indices have been developed and 
implemented. 
‘‘(d) PAYMENT LIMITATIONS.—An individual or enti-
ty may not receive, directly or indirectly, payments under 
a conservation security contract that, in the aggregate, ex-
ceed $150,000 for the 5-year term of the conservation se-
curity contract, excluding funding arrangements with fed-
erally recognized Indian Tribes or Alaska Native Corpora-
tions. 
‘‘(e) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) provide for adequate safeguards to protect 
the interests of tenants and sharecroppers, including 
provision for sharing payments, on a fair and equi-
table basis; and 
‘‘(2) 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 (d).
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‘‘(f) ALLOCATION TO STATES.—When making alloca-
tions to States of funds made available to carry out the 
conservation security program, the Secretary shall give 
significant consideration to the extent and magnitude of 
the environmental needs associated with agricultural pro-
duction in each State, the degree to which implementation 
of the conservation security program in the State is, or 
will be, effective in helping producers address these needs, 
and other considerations to achieve equitable geographic 
distributions of funds, as determined by the Secretary. 
‘‘(g) TECHNICAL ASSISTANCE.—For each of fiscal 
years 2008 through 2017, the Secretary shall provide ap-
propriate technical assistance to producers for the develop-
ment and implementation of conservation security con-
tracts, in an amount not to exceed 15 percent of the 
amounts expended for the fiscal year. 
‘‘(h) DATA.—The Secretary shall maintain conserva-
tion security program contract and payment data in a 
manner that provides detailed and segmented data that 
allows for quantification of the amount of payments made 
to producers for— 
‘‘(1) the maintenance of conservation practices, 
activities, and management measures in place on the 
producer’s operation at the time the conservation se-
curity offer is accepted by the Secretary;
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‘‘(2) the installation and adoption of new con-
servation practices, activities, and management 
measures and the improvements to conservation 
practices, activities, and management measures in 
place on the producer’s operation at the time the 
conservation security offer is accepted by the Sec-
retary; 
‘‘(3) participation in research, demonstration, 
and pilot projects; and 
‘‘(4) the development and periodic assessment 
and 
evaluation 
of 
comprehensive 
conservation 
plans.’’. 
(b) EFFECT ON EXISTING CONSERVATION SECURITY 
CONTRACTS.—Subchapter A of chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 
3838 et seq.), as in effect on the day before the date of 
the enactment of this Act, shall continue to apply to con-
servation security contracts entered into before October 1, 
2007. The Secretary of Agriculture may continue to make 
payments under such subchapter, as so in effect, with re-
spect to such a conservation security contracts during the 
term of the contract. 
(c) PROHIBITION ON NEW CONTRACTS.—A conserva-
tion security contract may not be entered into or renewed 
under subchapter A of chapter 2 of subtitle D of title XII
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of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), 
as in effect on the day before the date of the enactment 
of this Act, after September 30, 2007. 
SEC. 2104. GRASSLAND RESERVE PROGRAM. 
(a) ENROLLMENT PRIORITY.—Subsection (b) of sec-
tion 1238N of the Food Security Act of 1985 (16 U.S.C. 
3838n) is amended by striking paragraph (3) and insert-
ing the following new paragraph: 
‘‘(3) PRIORITY FOR LONG-TERM AGREEMENTS 
AND EASEMENTS.—Of the total number of acres en-
rolled in the program at any one time through the 
methods described in paragraph (2)(A), the Sec-
retary shall ensure that at least 60 percent of the 
acres were enrolled through the use of 30-year rental 
agreements and permanent and long-term easements 
described in clause (ii) of such paragraph.’’. 
(b) ENROLLMENT OF ACREAGE.—Subsection (b) of 
section 1238N of the Food Security Act of 1985 (16 
U.S.C. 3838n) is amended by striking paragraph (1) and 
inserting the following new paragraph: 
‘‘(1) ENROLLMENT.—The Secretary shall enroll 
an additional 1,340,000 acres of restored or im-
proved grassland, rangeland, and pastureland in the 
grassland reserve program during fiscal years 2008 
through 2012.’’.
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(c) ENROLLMENT OF CONSERVATION RESERVE PRO-
GRAM LAND.—Section 1238N of the Food Security Act 
of 1985 (16 U.S.C. 3838n) is amended by adding at the 
end the following new subsections: 
‘‘(d) ENROLLMENT
OF CONSERVATION RESERVE 
PROGRAM LAND.— 
‘‘(1) ENROLLMENT
AUTHORIZED.—Subject to 
the eligibility requirements of subsection (c) and all 
other requirements of this subchapter, land enrolled 
in the conservation reserve program may be enrolled 
in the grassland reserve program if the Secretary de-
termines that the land is of high ecological value and 
under significant threat of conversion to other uses. 
‘‘(2) MAXIMUM ENROLLMENT.—The number of 
acres of conservation reserve program land enrolled 
under this subsection in a calendar year shall not ex-
ceed 10 percent of the total number of acres enrolled 
in the grassland reserve program in that calendar 
year. 
‘‘(3) PROHIBITION ON DUPLICATION OF PAY-
MENTS.—Land enrolled in the program under this 
subsection shall no longer be eligible for payments 
under the conservation reserve program. 
‘‘(e) METHOD FOR DETERMINATION OF FAIR MAR-
KET VALUE.—The Secretary shall determine the fair mar-
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•HR 2419 EH1S 
ket value of land to be enrolled in program based on the 
option specified in paragraph (1), (2), (3), or (4) that re-
sults in the lowest amount of compensation to be paid by 
the Secretary: 
‘‘(1) A percentage of the fair market value 
based on the Uniform Standards for Professional 
Appraisals Procedures, as determined by the Sec-
retary. 
‘‘(2) A percentage of the market value deter-
mined by an area wide market survey. 
‘‘(3) A geographic cap, as prescribed in regula-
tions issued by the Secretary. 
‘‘(4) The offer made by the owner of the land.’’. 
(d) GRASSLAND RESERVE ENHANCEMENT.—Section 
1238N of the Food Security Act of 1985 (16 U.S.C. 
3838n) is amended by inserting after subsection (d), as 
added by subsection (b), the following new subsection: 
‘‘(e) GRASSLAND RESERVE ENHANCEMENT.—The 
Secretary may enter into such agreements with States, in-
cluding political subdivisions and agencies of States, that 
the Secretary determines will advance the purposes of the 
grassland reserve program. Section 1305(d) of the Agri-
cultural Reconciliation Act of 1987 (Public Law 100–203; 
7 U.S.C. 1308 note) shall not apply to payments received
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•HR 2419 EH1S 
by a State or political subdivision or agency thereof in con-
nection with such an agreement.’’. 
(e) USE
OF PRIVATE ORGANIZATIONS
OR STATE 
AGENCIES.—Section 1238Q of the Food Security Act of 
1985 (16 U.S.C. 3838q) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) AUTHORITY TO USE PRIVATE ORGANIZATIONS 
OR STATES.—The Secretary shall permit a private con-
servation or land trust organization (referred to in this 
section as a ‘private organization’) or a State agency to 
own, write, and enforce an easement under this sub-
chapter, in lieu of the Secretary, subject to the right of 
the Secretary to conduct periodic inspections and enforce 
the easement, if— 
‘‘(1) the Secretary determines that granting the 
permission will promote protection of grassland, land 
that contains forbs, and shrubland; 
‘‘(2) the owner authorizes the private organiza-
tion or State agency to hold and enforce the ease-
ment; and 
‘‘(3) the private organization or State agency 
agrees to assume the costs incurred in administering 
and enforcing the easement, including the costs of 
restoration or rehabilitation of the land as specified
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•HR 2419 EH1S 
by the owner and the private organization or State 
agency.’’; 
(2) in subsection (b), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’; and 
(3) in subsection (c), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’. 
SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
(a) 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, organic transition,’’ 
after ‘‘agricultural production’’; and 
(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, 
while sustaining production of food and fiber— 
‘‘(A) enhance soil, water, and related nat-
ural 
resources, 
including 
grazing 
land, 
forestland, wetland, and wildlife; and 
‘‘(B) conserve energy; 
‘‘(4) assisting producers to make beneficial, cost 
effective changes to cropping systems, grazing man-
agement, energy use, forest management, nutrient
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•HR 2419 EH1S 
management associated with livestock, pest or irriga-
tion management, or other practices on agricultural 
and forested land; and’’. 
(b) DEFINITIONS.—Section 1240A of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839aa–1) is amended— 
(1) by striking paragraph (3) and inserting the 
following new paragraph: 
‘‘(3) LAND MANAGEMENT PRACTICE.— 
‘‘(A) IN GENERAL.—The term ‘land man-
agement practice’ means a site-specific nutrient 
or manure management, integrated pest man-
agement, irrigation management, tillage or res-
idue management, grazing management, air 
quality management, forest management, sil-
vicultural practice, or other land management 
practice carried out on eligible land that the 
Secretary determines is needed to protect from 
degradation, in the most cost-effective manner, 
water, soil, or related resources. 
‘‘(B) FOREST MANAGEMENT PRACTICES.— 
For purposes of subparagraph (A), forest man-
agement practices may include activities that 
the Secretary determines are needed to— 
‘‘(i) improve water quality; 
‘‘(ii) restore forest biodiversity;
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‘‘(iii) control invasive species; or 
‘‘(iv) improve watershed health. 
‘‘(C) COORDINATED IMPLEMENTATION.—A 
land management practice may involve multiple 
landowners implementing eligible conservation 
activities in a coordinated fashion.’’; 
(2) in paragraph (4), by inserting ‘‘alpacas, 
bison,’’ after ‘‘sheep,’’; 
(3) by redesignating paragraphs (3), (4), (5), 
and (6), as so amended, as paragraphs (4), (5), (6), 
and (8), respectively; 
(4) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) 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, an environ-
mental risks.’’; and 
(5) by inserting after paragraph (6), as so re-
designated, the following new paragraph: 
‘‘(7) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term under