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(A) normally harvest all or a portion of 
their crop of corn or grain sorghum in a high 
moisture state; 
(B) present— 
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill, 
distillery, or other similar entity approved 
by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined by 
the Secretary, that do not have certified 
commercial scales from which certified scale 
tickets may be obtained within reasonable 
proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time of 
delivery to, and that the quantity to be placed 
under loan under this subsection was in fact 
harvested on the farm and delivered to, a feedlot, 
feed mill, or commercial or on-farm high-mois-
ture storage facility, or to a facility maintained
† HR 2642 EAS 
by the users of corn and grain sorghum in a 
high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity de-
termined by multiplying— 
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the 
farm of the producer; by 
(B) the lower of the actual average yield 
used to make payments under subtitle A or the 
actual yield on a field, as determined by the Sec-
retary, that is similar to the field from which the 
corn or grain sorghum was obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2014 through 2018 crops of upland 
cotton and extra long staple cotton, the Secretary shall make 
available recourse seed cotton loans, as determined by the 
Secretary, on any production.
† HR 2642 EAS 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate estab-
lished for the commodity by the Secretary, plus interest (de-
termined in accordance with section 163 of the Federal Ag-
riculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection 
(e), the Secretary may make appropriate adjustments in 
the loan rates for any loan commodity (other than cotton) 
for differences in grade, type, quality, location, and other 
factors. 
(b) MANNER
OF
ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan 
level for the commodity will, on the basis of the anticipated 
incidence of the factors, be equal to the level of support de-
termined in accordance with this subtitle and subtitles C 
through E. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan
† HR 2642 EAS 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this sub-
section shall not result in an increase in the national 
average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN GENERAL.—The Secretary may make ap-
propriate adjustments in the loan rate for cotton for 
differences in quality factors. 
(2) REVISIONS TO QUALITY ADJUSTMENTS FOR 
UPLAND COTTON.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall implement revisions in the adminis-
tration of the marketing assistance loan program 
for upland cotton to more accurately and effi-
ciently reflect market values for upland cotton. 
(B) 
MANDATORY
REVISIONS.—Revisions 
under subparagraph (A) shall include— 
(i) the elimination of warehouse loca-
tion differentials; 
(ii) the establishment of differentials 
for the various quality factors and staple 
lengths of cotton based on a 3-year, weight-
ed moving average of the weighted des-
† HR 2642 EAS 
ignated spot market regions, as determined 
by regional production; 
(iii) the elimination of any artificial 
split in the premium or discount between 
upland cotton with a 32 or 33 staple length 
due to micronaire; and 
(iv) a mechanism to ensure that no 
premium or discount is established that ex-
ceeds the premium or discount associated 
with a leaf grade that is 1 better than the 
applicable color grade. 
(C) DISCRETIONARY REVISIONS.—Revisions 
under subparagraph (A) may include— 
(i) the use of non-spot market price 
data, in addition to spot market price data, 
that would enhance the accuracy of the 
price information used in determining qual-
ity adjustments under this subsection; 
(ii) adjustments in the premiums or 
discounts associated with upland cotton 
with a staple length of 33 or above due to 
micronaire with the goal of eliminating any 
unnecessary artificial splits in the calcula-
tions of the premiums or discounts; and
† HR 2642 EAS 
(iii) such other adjustments as the Sec-
retary determines appropriate, after con-
sultations conducted in accordance with 
paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton indus-
try. 
(B) INAPPLICABILITY
OF
FEDERAL
ADVI-
SORY
COMMITTEE
ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton quality 
adjustments implemented pursuant to this subsection 
and may make further revisions to the administration 
of the loan program for upland cotton, by— 
(A) revoking or revising any actions taken 
under paragraph (2)(B); or 
(B) revoking or revising any actions taken 
or authorized to be taken under paragraph 
(2)(C).
† HR 2642 EAS 
(e) RICE.—The Secretary shall not make adjustments 
in the loan rates for long grain rice and medium grain 
rice, except for differences in grade and quality (including 
milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION OF CURRENT PROGRAM AND LOAN 
RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the Fed-
eral Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘each of the 2014 
through 2018 crop years’’. 
(2) SUGAR
BEETS.—Section 156(b)(2) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(b)(2)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(b) 
FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C.
† HR 2642 EAS 
1359bb(a)(1)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2018’’. 
(2) EFFECTIVE PERIOD.—Section 359l(a) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ll(a)) is amended by striking ‘‘2012’’ and insert-
ing ‘‘2018’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCTION MARGIN PROTEC-
TION AND DAIRY MARKET STABILIZATION 
PROGRAMS 
SEC. 1401. DEFINITIONS. 
In this part: 
(1) ACTUAL DAIRY PRODUCTION MARGIN.—The 
term ‘‘actual dairy production margin’’ means the 
difference between the all-milk price and the average 
feed cost, as calculated under section 1402. 
(2) ALL-MILK PRICE.—The term ‘‘all-milk price’’ 
means the average price received, per hundredweight 
of milk, by dairy operations for all milk sold to 
plants and dealers in the United States, as deter-
mined by the Secretary. 
(3) ANNUAL PRODUCTION HISTORY.—The term 
‘‘annual production history’’ means the production 
history determined for a participating dairy oper-
ation under section 1413(b) whenever the partici-
† HR 2642 EAS 
pating dairy operation purchases supplemental pro-
duction margin protection. 
(4) AVERAGE FEED COST.—The term ‘‘average 
feed cost’’ means the average cost of feed used by a 
dairy operation to produce a hundredweight of milk, 
determined under section 1402 using the sum of the 
following: 
(A) The product determined by multiplying 
1.0728 by the price of corn per bushel. 
(B) The product determined by multiplying 
0.00735 by the price of soybean meal per ton. 
(C) The product determined by multiplying 
0.0137 by the price of alfalfa hay per ton. 
(5) BASIC
PRODUCTION
HISTORY.—The term 
‘‘basic production history’’ means the production his-
tory determined for a participating dairy operation 
under section 1413(a) for provision of basic produc-
tion margin protection. 
(6) CONSECUTIVE 2-MONTH PERIOD.—The term 
‘‘consecutive 2-month period’’ refers to the 2-month 
period consisting of the months of January and Feb-
ruary, March and April, May and June, July and 
August, September and October, or November and De-
cember, respectively. 
(7) DAIRY OPERATION.—
† HR 2642 EAS 
(A) IN GENERAL.—The term ‘‘dairy oper-
ation’’ means, as determined by the Secretary, 1 
or more dairy producers that produce and mar-
ket milk as a single dairy operation in which 
each dairy producer— 
(i) shares in the pooling of resources 
and a common ownership structure; 
(ii) is at risk in the production of milk 
on the dairy operation; and 
(iii) contributes land, labor, manage-
ment, equipment, or capital to the dairy op-
eration. 
(B) 
ADDITIONAL
OWNERSHIP
STRUC-
TURES.—The Secretary shall determine addi-
tional ownership structures to be covered by the 
definition of dairy operation. 
(8) HANDLER.— 
(A) IN
GENERAL.—The term ‘‘handler’’ 
means the initial individual or entity making 
payment to a dairy operation for milk produced 
in the United States and marketed for commer-
cial use. 
(B) PRODUCER-HANDLER.—The term in-
cludes a ‘‘producer-handler’’ when the producer 
satisfies the definition in subparagraph (A).
† HR 2642 EAS 
(9) PARTICIPATING
DAIRY
OPERATION.—The 
term ‘‘participating dairy operation’’ means a dairy 
operation that— 
(A) signs up under section 1412 to partici-
pate in the production margin protection pro-
gram under subpart A; and 
(B) as a result, also participates in the sta-
bilization program under subpart B. 
(10) PRODUCTION
MARGIN
PROTECTION
PRO-
GRAM.—The term ‘‘production margin protection pro-
gram’’ means the dairy production margin protection 
program required by subpart A. 
(11) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(12) STABILIZATION PROGRAM.—The term ‘‘sta-
bilization program’’ means the dairy market sta-
bilization program required by subpart B for all par-
ticipating dairy operations. 
(13) STABILIZATION PROGRAM BASE.—The term 
‘‘stabilization program base’’, with respect to a par-
ticipating dairy operation, means the stabilization 
program base calculated for the participating dairy 
operation under section 1431(b). 
(14) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, in a geographical sense, means the 50 States,
† HR 2642 EAS 
the District of Columbia, American Samoa, Guam, 
the Commonwealth of the Northern Mariana Islands, 
the Commonwealth of Puerto Rico, the Virgin Islands 
of the United States, and any other territory or pos-
session of the United States. 
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCTION MARGINS. 
(a) CALCULATION OF AVERAGE FEED COST.—The Sec-
retary shall calculate the national average feed cost for each 
month using the following data: 
(1) The price of corn for a month shall be the 
price received during that month by farmers in the 
United States for corn, as reported in the monthly 
Agricultural Prices report by the Secretary. 
(2) The price of soybean meal for a month shall 
be the central Illinois price for soybean meal, as re-
ported in the Market News–Monthly Soybean Meal 
Price Report by the Secretary. 
(3) The price of alfalfa hay for a month shall be 
the price received during that month by farmers in 
the United States for alfalfa hay, as reported in the 
monthly Agricultural Prices report by the Secretary. 
(b) CALCULATION
OF ACTUAL DAIRY PRODUCTION 
MARGINS.—
† HR 2642 EAS 
(1) PRODUCTION
MARGIN
PROTECTION
PRO-
GRAM.—For use in the production margin protection 
program under subpart A, the Secretary shall cal-
culate the actual dairy production margin for each 
consecutive 2-month period by subtracting— 
(A) the average feed cost for that consecutive 
2-month period, determined in accordance with 
subsection (a); from 
(B) the all-milk price for that consecutive 2- 
month period. 
(2) STABILIZATION PROGRAM.—For use in the 
stabilization program under subpart B, the Secretary 
shall calculate each month the actual dairy produc-
tion margin for the preceding month by subtracting— 
(A) the average feed cost for that preceding 
month, determined in accordance with subsection 
(a); from 
(B) the all-milk price for that preceding 
month. 
(3) TIME FOR CALCULATIONS.—The calculations 
required by paragraphs (1) and (2) shall be made as 
soon as practicable using the full month price of the 
applicable reference month.
† HR 2642 EAS 
Subpart A—Dairy Production Margin Protection 
Program 
SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MAR-
GIN PROTECTION PROGRAM. 
Effective not later than 120 days after the effective date 
of this subtitle, the Secretary shall establish and administer 
a dairy production margin protection program under 
which participating dairy operations are paid— 
(1) basic production margin protection program 
payments under section 1414 when actual dairy pro-
duction margins are less than the threshold levels for 
such payments; and 
(2) supplemental production margin protection 
program payments under section 1415 if purchased 
by a participating dairy operation. 
SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRO-
DUCTION MARGIN PROTECTION PROGRAM. 
(a) ELIGIBILITY.—All dairy operations in the United 
States shall be eligible to participate in the production mar-
gin protection program, except that a participating dairy 
operation shall be required to register with the Secretary 
before the participating dairy operation may receive— 
(1) basic production margin protection program 
payments under section 1414; and 
(2) if the participating dairy operation pur-
chases supplemental production margin protection
† HR 2642 EAS 
under section 1415, supplemental production margin 
protection program payments under such section. 
(b) REGISTRATION PROCESS.— 
(1) IN GENERAL.—The Secretary shall specify 
the manner and form by which a participating dairy 
operation may register to participate in the produc-
tion margin protection program. 
(2) TREATMENT OF MULTIPRODUCER DAIRY OP-
ERATIONS.—If a participating dairy operation is op-
erated by more than 1 dairy producer, all of the 
dairy producers of the participating dairy operation 
shall be treated as a single dairy operation for pur-
poses of— 
(A) registration to receive basic production 
margin protection and election to purchase sup-
plemental production margin protection; 
(B) payment of the participation fee under 
subsection (d) and producer premiums under sec-
tion 1415; and 
(C) participation in the stabilization pro-
gram under subtitle B. 
(3) TREATMENT OF PRODUCERS WITH MULTIPLE 
DAIRY OPERATIONS.—If a dairy producer operates 2 
or more dairy operations, each dairy operation of the 
producer shall separately register to receive basic pro-
† HR 2642 EAS 
duction margin protection and purchase supple-
mental production margin protection and only those 
dairy operations so registered shall be covered by the 
stabilization program. 
(c) TIME FOR REGISTRATION.— 
(1) EXISTING DAIRY OPERATIONS.—During the 
15-month period beginning on the date of the initi-
ation of the registration period for the production 
margin protection program, a dairy operation that is 
actively engaged as of such date may register with the 
Secretary— 
(A) to receive basic production margin pro-
tection; and 
(B) if the dairy operation elects, to pur-
chase supplemental production margin protec-
tion. 
(2) NEW ENTRANTS.—A dairy producer that has 
no existing interest in a dairy operation as of the 
date of the initiation of the registration period for the 
production margin protection program, but that, after 
such date, establishes a new dairy operation, may 
register with the Secretary during the 1-year period 
beginning on the date on which the dairy operation 
first markets milk commercially—
† HR 2642 EAS 
(A) to receive basic production margin pro-
tection; and 
(B) if the dairy operation elects, to pur-
chase supplemental production margin protec-
tion. 
(d) TRANSITION FROM MILC TO PRODUCTION MARGIN 
PROTECTION.— 
(1) DEFINITION
OF
TRANSITION
PERIOD.—In 
this subsection, the term ‘‘transition period’’ means 
the period during which the milk income loss pro-
gram established under section 1506 of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 8773) 
and the production margin protection program under 
this subtitle are both in existence. 
(2) NOTICE OF AVAILABILITY.—Not later than 30 
days after the date of enactment of this Act, the Sec-
retary shall publish a notice in the Federal Register 
to inform dairy operations of the availability of basic 
production margin protection and supplemental pro-
duction margin protection, including the terms of the 
protection and information about the option of dairy 
operations during the transition period to make an 
election described in paragraph (3). 
(3) ELECTION.—Except as provided in para-
graph (4), a dairy operation may elect to participate
† HR 2642 EAS 
in either the milk income loss program established 
under section 1506 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8773) or the production 
margin protection program under this subtitle for the 
duration of the transition period. 
(4) TRANSFER TO PRODUCTION MARGIN PROTEC-
TION.—A dairy operation that elects to participate in 
the milk income loss program established under sec-
tion 1506 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8773) during the transition period 
may, at any time, make a permanent transfer to the 
production margin protection program. 
(e) ADMINISTRATION FEE.— 
(1) ADMINISTRATION FEE REQUIRED.—Except as 
provided in paragraph (5), a participating dairy op-
eration shall— 
(A) pay an administration fee under this 
subsection to register to participate in the pro-
duction margin protection program; and 
(B) pay the administration fee annually 
thereafter to continue to participate in the pro-
duction margin protection program. 
(2) FEE AMOUNT.—The administration fee for a 
participating dairy operation for a calendar year 
shall be based on the pounds of milk (in millions)
† HR 2642 EAS 
marketed by the participating dairy operation in the 
previous calendar year, as follows: 
Pounds Marketed (in millions) 
Administration Fee 
less than 1 
$100
1 to 5 
$250
more than 5 to 10 
$350
more than 10 to 40 
$1,000
more than 40 
$2,500. 
(3) DEPOSIT OF FEES.—All administration fees 
collected under this subsection shall be credited to the 
fund or account used to cover the costs incurred to ad-
minister the production margin protection program 
and the stabilization program and shall be available 
to the Secretary, without further appropriation and 
until expended, for use or transfer as provided in 
paragraph (4). 
(4) USE OF FEES.—The Secretary shall use ad-
ministration fees collected under this subsection— 
(A) to cover administrative costs of the pro-
duction margin protection program and sta-
bilization program; and 
(B) to cover costs of the Department of Ag-
riculture relating to reporting of dairy market 
news, carrying out the amendments made by sec-
tion 1476, and carrying out section 273 of the 
Agricultural Marketing Act of 1946 (7 U.S.C.
† HR 2642 EAS 
1637b), to the extent funds remain available 
after operation of subparagraph (A). 
(5) WAIVER.—The Secretary shall waive or re-
duce the administration fee required under paragraph 
(1) in the case of a limited-resource dairy operation, 
as defined by the Secretary. 
(f) LIMITATION.—A dairy operation may only partici-
pate in the production margin protection program or the 
livestock gross margin for dairy program under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both. 
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 
DAIRY OPERATIONS. 
(a) PRODUCTION HISTORY FOR BASIC PRODUCTION 
MARGIN PROTECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing basic production margin protection, the 
Secretary shall determine the basic production history 
of a participating dairy operation. 
(2) CALCULATION.—Except as provided in para-
graph (3), the basic production history of a partici-
pating dairy operation for basic production margin 
protection is equal to the highest annual milk mar-
ketings of the participating dairy operation during 
any 1 of the 3 calendar years immediately preceding 
the calendar year in which the participating dairy
† HR 2642 EAS 
operation first signed up to participate in the produc-
tion margin protection program. 
(3) ELECTION BY NEW DAIRY OPERATIONS.—In 
the case of a participating dairy operation that has 
been in operation for less than a year, the partici-
pating dairy operation shall elect 1 of the following 
methods for the Secretary to determine the basic pro-
duction history of the participating dairy operation: 
(A) The volume of the actual milk mar-
ketings for the months the participating dairy 
operation has been in operation extrapolated to 
a yearly amount. 
(B) An estimate of the actual milk mar-
ketings of the participating dairy operation 
based on the herd size of the participating dairy 
operation relative to the national rolling herd 
average data published by the Secretary. 
(4) NO CHANGE IN PRODUCTION HISTORY FOR 
BASIC PRODUCTION MARGIN PROTECTION.—Once the 
basic production history of a participating dairy op-
eration is determined under paragraph (2) or (3), the 
basic production history shall not be subsequently 
changed for purposes of determining the amount of 
any basic production margin protection payments for
† HR 2642 EAS 
the participating dairy operation made under section 
1414. 
(b) ANNUAL PRODUCTION HISTORY
FOR SUPPLE-
MENTAL PRODUCTION MARGIN PROTECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing supplemental production margin protec-
tion for a participating dairy operation that pur-
chases supplemental production margin protection for 
a year under section 1415, the Secretary shall deter-
mine the annual production history of the partici-
pating dairy operation under paragraph (2). 
(2) CALCULATION.—The annual production his-
tory of a participating dairy operation for a year is 
equal to the actual milk marketings of the partici-
pating dairy operation during the preceding calendar 
year. 
(3) NEW DAIRY OPERATIONS.—Subsection (a)(3) 
shall apply with respect to determining the annual 
production history of a participating dairy operation 
that has been in operation for less than a year. 
(c) REQUIRED INFORMATION.—A participating dairy 
operation shall provide all information that the Secretary 
may require in order to establish— 
(1) the basic production history of the partici-
pating dairy operation under subsection (a); and
† HR 2642 EAS 
(2) the production history of the participating 
dairy operation whenever the participating dairy op-
eration purchases supplemental production margin 
protection under section 1415. 
(d) TRANSFER OF PRODUCTION HISTORIES.— 
(1) TRANSFER BY SALE OR LEASE.—In promul-
gating the rules to initiate the production margin 
protection program, the Secretary shall specify the 
conditions under which and the manner by which the 
production history of a participating dairy operation 
may be transferred by sale or lease. 
(2) COVERAGE LEVEL.— 
(A) BASIC
PRODUCTION
MARGIN
PROTEC-
TION.—A purchaser or lessee to whom the Sec-
retary transfers a basic production history under 
this subsection shall not obtain a different level 
of basic production margin protection than the 
basic production margin protection coverage held 
by the seller or lessor from whom the transfer 
was obtained. 
(B) SUPPLEMENTAL
PRODUCTION
MARGIN 
PROTECTION.—A purchaser or lessee to whom the 
Secretary transfers an annual production history 
under this subsection shall not obtain a different 
level of supplemental production margin protec-
† HR 2642 EAS 
tion coverage than the supplemental production 
margin protection coverage in effect for the seller 
or lessor from whom the transfer was obtained 
for the calendar year in which the transfer was 
made. 
(e) MOVEMENT AND TRANSFER OF PRODUCTION HIS-
TORY.— 
(1) MOVEMENT AND TRANSFER AUTHORIZED.— 
Subject to paragraph (2), if a participating dairy op-
eration moves from 1 location to another location, the 
participating dairy operation may transfer the basic 
production history and annual production history as-
sociated with the participating dairy operation. 
(2) NOTIFICATION
REQUIREMENT.—A partici-
pating dairy operation shall notify the Secretary of 
any move of a participating dairy operation under 
paragraph (1). 
(3) SUBSEQUENT OCCUPATION OF VACATED LO-
CATION.—A party subsequently occupying a partici-
pating dairy operation location vacated as described 
in paragraph (1) shall have no interest in the basic 
production history or annual production history pre-
viously associated with the participating dairy oper-
ation at such location.
100 
† HR 2642 EAS 
SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION. 
(a) PAYMENT THRESHOLD.—The Secretary shall make 
a payment to participating dairy operations in accordance 
with subsection (b) whenever the average actual dairy pro-
duction margin for a consecutive 2-month period is less 
than $4.00 per hundredweight of milk. 
(b) BASIC PRODUCTION MARGIN PROTECTION PAY-
MENT.—The basic production margin protection payment 
for a participating dairy operation for a consecutive 2- 
month period shall be equal to the product obtained by mul-
tiplying— 
(1) the difference between the average actual 
dairy production margin for the consecutive 2-month 
period and $4.00, except that, if the difference is more 
than $4.00, the Secretary shall use $4.00; by 
(2) the lesser of— 
(A) 80 percent of the production history of 
the participating dairy operation, divided by 6; 
or 
(B) the actual quantity of milk marketed by 
the participating dairy operation during the 
consecutive 2-month period. 
SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTEC-
TION. 
(a) ELECTION OF SUPPLEMENTAL PRODUCTION MAR-
GIN PROTECTION.—A participating dairy operation may
101 
† HR 2642 EAS 
annually purchase supplemental production margin protec-
tion to protect, during the calendar year for which pur-
chased, a higher level of the income of a participating dairy 
operation than the income level guaranteed by basic produc-
tion margin protection under section 1414. 
(b) SELECTION OF PAYMENT THRESHOLD.—A partici-
pating dairy operation purchasing supplemental produc-
tion margin protection for a year shall elect a coverage level 
that is higher, in any increment of $0.50, than the payment 
threshold for basic production margin protection specified 
in section 1414(a), but not to exceed $8.00. 
(c) COVERAGE PERCENTAGE.—A participating dairy 
operation purchasing supplemental production margin pro-
tection for a year shall elect a percentage of coverage equal 
to not more than 90 percent, nor less than 25 percent, of 
the annual production history of the participating dairy 
operation. 
(d) PREMIUMS
FOR
SUPPLEMENTAL
PRODUCTION 
MARGIN PROTECTION.— 
(1) PREMIUMS
REQUIRED.—A participating 
dairy operation that purchases supplemental produc-
tion margin protection shall pay an annual premium 
equal to the product obtained by multiplying—
102 
† HR 2642 EAS 
(A) the coverage percentage elected by the 
participating dairy operation under subsection 
(c); 
(B) the annual production history of the 
participating dairy operation; and 
(C) the premium per hundredweight of 
milk, as specified in the applicable table under 
paragraph (2) or (3). 
(2) PREMIUM PER HUNDREDWEIGHT FOR FIRST 
4 MILLION POUNDS OF PRODUCTION.—For the first 
4,000,000 pounds of milk marketings included in the 
annual production history of a participating dairy 
operation, the premium per hundredweight cor-
responding to each coverage level specified in the fol-
lowing table is as follows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.01
$5.00 
$0.02
$5.50 
$0.035
$6.00 
$0.045
$6.50 
$0.09
$7.00 
$0.40
$7.50 
$0.60
$8.00 
$0.95. 
(3) PREMIUM PER HUNDREDWEIGHT FOR PRO-
DUCTION
IN
EXCESS
OF
MILLION
POUNDS.—For 
milk marketings in excess of 4,000,000 pounds in-
cluded in the annual production history of a partici-
pating dairy operation, the premium per hundred-
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weight corresponding to each coverage level is as fol-
lows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.02
$5.00 
$0.04
$5.50 
$0.10
$6.00 
$0.15
$6.50 
$0.29
$7.00 
$0.62
$7.50 
$0.83
$8.00 
$1.06. 
(4) TIME FOR PAYMENT.—In promulgating the 
rules to initiate the production margin protection 
program, the Secretary shall provide more than 1 
method by which a participating dairy operation that 
purchases supplemental production margin protection 
for a calendar year may pay the premium under this 
subsection for that year in any manner that maxi-
mizes participating dairy operation payment flexi-
bility and program integrity. 
(e) PREMIUM OBLIGATIONS.— 
(1) PRO-RATION OF PREMIUM FOR NEW DAIRY 
OPERATIONS.—A participating dairy operation de-
scribed in section 1412(c)(2) that purchases supple-
mental production margin protection for a calendar 
year after the start of the calendar year shall pay a 
pro-rated premium for that calendar year based on 
the portion of the calendar year for which the partici-
pating dairy operation purchases the coverage.
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(2) LEGAL OBLIGATION.—A participating dairy 
operation that purchases supplemental production 
margin protection for a calendar year shall be legally 
obligated to pay the applicable premium for that cal-
endar year, except that the Secretary may waive that 
obligation, under terms and conditions determined by 
the Secretary, for 1 or more producers in any partici-
pating dairy operation in the case of death, retire-
ment, permanent dissolution of a participating dairy 
operation, or other circumstances as the Secretary 
considers appropriate to ensure the integrity of the 
program. 
(f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par-
ticipating dairy operation with supplemental production 
margin protection shall receive a supplemental production 
margin protection payment whenever the average actual 
dairy production margin for a consecutive 2-month period 
is less than the coverage level threshold selected by the par-
ticipating dairy operation under subsection (b). 
(g) SUPPLEMENTAL PRODUCTION MARGIN PROTEC-
TION PAYMENTS.— 
(1) IN GENERAL.—The supplemental production 
margin protection payment for a participating dairy 
operation is in addition to the basic production mar-
gin protection payment.
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(2) AMOUNT
OF
PAYMENT.—The supplemental 
production margin protection payment for the par-
ticipating dairy operation shall be determined as fol-
lows: 
(A) The Secretary shall calculate the dif-
ference between the coverage level threshold se-
lected by the participating dairy operation 
under subsection (b) and the greater of— 
(i) the average actual dairy production 
margin for the consecutive 2-month period; 
or 
(ii) $4.00. 
(B) The amount determined under subpara-
graph (A) shall be multiplied by the percentage 
selected by the participating dairy operation 
under subsection (c) and by the lesser of the fol-
lowing: 
(i) The annual production history of 
the participating dairy operation, divided 
by 6. 
(ii) The actual amount of milk mar-
keted by the participating dairy operation 
during the consecutive 2-month period.
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SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION 
FEES OR PREMIUMS. 
(a) LOSS OF BENEFITS.—A participating dairy oper-
ation that fails to pay the required administration fee 
under section 1412 or is in arrears on premium payments 
for supplemental production margin protection under sec-
tion 1415— 
(1) remains legally obligated to pay the adminis-
tration fee or premiums, as the case may be; and 
(2) may not receive basic production margin 
protection payments or supplemental production mar-
gin protection payments until the fees or premiums 
are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such ac-
tion as necessary to collect administration fees and pre-
mium payments for supplemental production margin pro-
tection. 
Subpart B—Dairy Market Stabilization Program 
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA-
TION PROGRAM. 
(a) PROGRAM REQUIRED; PURPOSE.—Effective not 
later than 120 days after the effective date of this subtitle, 
the Secretary shall establish and administer a dairy market 
stabilization program applicable to participating dairy op-
erations for the purpose of assisting in balancing the supply
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of milk with demand when participating dairy operations 
are experiencing low or negative operating margins. 
(b) ELECTION
OF STABILIZATION PROGRAM BASE 
CALCULATION METHOD.— 
(1) ELECTION.—When a dairy operation signs 
up under section 1412 to participate in the produc-
tion margin protection program, the dairy operation 
shall inform the Secretary of the method by which the 
stabilization program base for the participating dairy 
operation will be calculated under paragraph (3). 
(2) CHANGE IN CALCULATION METHOD.—A par-
ticipating dairy operation may change the stabiliza-
tion program base calculation method to be used for 
a calendar year by notifying the Secretary of the 
change not later than a date determined by the Sec-
retary. 
(3) CALCULATION
METHODS.—A participating 
dairy operation may elect either of the following 
methods for calculation of the stabilization program 
base for the participating dairy operation: 
(A) The volume of the average monthly milk 
marketings of the participating dairy operation 
for the 3 months immediately preceding the an-
nouncement by the Secretary that the stabiliza-
tion program will become effective.
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(B) The volume of the monthly milk mar-
ketings of the participating dairy operation for 
the same month in the preceding year as the 
month for which the Secretary has announced 
the stabilization program will become effective. 
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUC-
TION IN DAIRY PAYMENTS. 
(a) WHEN STABILIZATION PROGRAM REQUIRED.—Ex-
cept as provided in subsection (b), the Secretary shall an-
nounce that the stabilization program is in effect and order 
reduced payments by handlers to participating dairy oper-
ations that exceed the applicable percentage of the partici-
pating dairy operation’s stabilization program base when-
ever— 
(1) the actual dairy production margin has been 
$6.00 or less per hundredweight of milk for each of 
the immediately preceding 2 months; or 
(2) the actual dairy production margin has been 
$4.00 or less per hundredweight of milk for the imme-
diately preceding month. 
(b) EXCEPTION.—If any of the conditions described in 
section 1436(b) have been met during the 2-month period 
immediately preceding the month in which the announce-
ment under subsection (a) would otherwise be made by the
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Secretary in the absence of this exception, the Secretary 
shall— 
(1) suspend the stabilization program; 
(2) refrain from making the announcement 
under subsection (a) to implement order the stabiliza-
tion payment; or 
(3) order reduced payments. 
(c) EFFECTIVE DATE FOR IMPLEMENTATION OF PAY-
MENT REDUCTIONS.—Reductions in dairy payments shall 
commence beginning on the first day of the month imme-
diately following the date of the announcement by the Sec-
retary under subsection (a). 
SEC. 1433. MILK MARKETINGS INFORMATION. 
(a) COLLECTION OF MILK MARKETING DATA.—The 
Secretary shall establish, by regulation, a process to collect 
from participating dairy operations and handlers such in-
formation that the Secretary considers necessary for each 
month during which the stabilization program is in effect. 
(b) REDUCE REGULATORY BURDEN.—When imple-
menting the process under subsection (a), the Secretary 
shall minimize the regulatory burden on participating 
dairy operations and handlers.
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SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 
DAIRY OPERATION PAYMENTS. 
(a) REDUCED PARTICIPATING DAIRY OPERATION PAY-
MENTS REQUIRED.—During any month in which payment 
reductions are in effect under the stabilization program, 
each handler shall reduce payments to each participating 
dairy operation from whom the handler receives milk. 
(b) REDUCTIONS BASED ON ACTUAL DAIRY PRODUC-
TION MARGIN.— 
(1) REDUCTION
REQUIREMENT
1.—If the Sec-
retary determines that the average actual dairy pro-
duction margin has been less than $6.00 but greater 
than $5.00 per hundredweight of milk for 2 consecu-
tive months, the handler shall make payments to a 
participating dairy operation for a month based on 
the greater of the following: 
(A) 98 percent of the stabilization program 
base of the participating dairy operation. 
(B) 94 percent of the marketings of milk for 
the month by the participating dairy operation. 
(2) REDUCTION
REQUIREMENT
2.—If the Sec-
retary determines that the average actual dairy pro-
duction margin has been less than $5.00 but greater 
than $4.00 for 2 consecutive months, the handler shall 
make payments to a participating dairy operation 
for a month based on the greater of the following:
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(A) 97 percent of the stabilization program 
base of the participating dairy operation. 
(B) 93 percent of the marketings of milk for 
the month by the participating dairy operation. 
(3) REDUCTION
REQUIREMENT
3.—If the Sec-
retary determines that the average actual dairy pro-
duction margin has been $4.00 or less for any 1 
month, the handler shall make payments to a partici-
pating dairy operation for a month based on the 
greater of the following: 
(A) 96 percent of the stabilization program 
base of the participating dairy operation. 
(B) 92 percent of the marketings of milk for 
the month by the participating dairy operation. 
(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 month 
until the Secretary suspends the stabilization program and 
terminates payment reductions in accordance with section 
1436. 
(d) PAYMENT
REDUCTION
EXCEPTION.—Notwith-
standing any preceding subsection of this section, a handler 
shall make no payment reductions for a participating dairy 
operation for a month if the participating dairy operation’s 
milk marketings for the month are equal to or less than
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the percentage of the stabilization program base applicable 
to the participating dairy operation under paragraph (1), 
(2), or (3) of subsection (b). 
SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE 
OF FUNDS. 
(a) REMITTING FUNDS.—As soon as practicable after 
the end of each month during which payment reductions 
are in effect under the stabilization program, each handler 
shall remit to the Secretary an amount equal to the amount 
by which payments to participating dairy operations are 
reduced by the handler under section 1434. 
(b) DEPOSIT OF REMITTED FUNDS.—All funds re-
ceived under subsection (a) shall be available to the Sec-
retary, without further appropriation and until expended, 
for use or transfer as provided in subsection (c). 
(c) USE OF FUNDS.— 
(1) AVAILABILITY FOR CERTAIN COMMODITY DO-
NATIONS.—Not later than 90 days after the funds de-
scribed in subsection (a) are due as determined by the 
Secretary, the Secretary shall obligate the funds for 
the purpose of— 
(A) purchasing dairy products for donation 
to food banks and other programs that the Sec-
retary determines appropriate; and
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† HR 2642 EAS 
(B) expanding consumption and building 
demand for dairy products. 
(2) NO
DUPLICATION
OF
EFFORT.—The Sec-
retary shall ensure that expenditures under para-
graph (1) are compatible with, and do not duplicate, 
programs supported by the dairy research and pro-
motion activities conducted under the Dairy Produc-
tion Stabilization Act of 1983 (7 U.S.C. 4501 et seq.). 
(3) ACCOUNTING.—The Secretary shall keep an 
accurate account of all funds expended under para-
graph (1). 
(d) ANNUAL REPORT.—Not later than December 31 of 
each year that the stabilization program is in effect, the 
Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report that 
provides an accurate accounting of— 
(1) the funds received by the Secretary during 
the preceding fiscal year under subsection (a); 
(2) all expenditures made by the Secretary under 
subsection (b) during the preceding fiscal year; and 
(3) the impact of the stabilization program on 
dairy markets. 
(e) ENFORCEMENT.—If a participating dairy oper-
ation or handler fails to remit or collect the amounts by
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† HR 2642 EAS 
which payments to participating dairy operations are re-
duced under section 1434, the participating dairy operation 
or handler responsible for the failure shall be liable to the 
Secretary for the amount that should have been remitted 
or collected, plus interest. In addition to the enforcement 
authorities available under section 1437, the Secretary may 
enforce this subsection in the courts of the United States. 
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE-
MENT. 
(a) DETERMINATION OF PRICES.—For purposes of this 
section: 
(1) The price in the United States for cheddar 
cheese and nonfat dry milk shall be determined by the 
Secretary. 
(2) The world price of cheddar cheese and skim 
milk powder shall be determined by the Secretary. 
(b) SUSPENSION
THRESHOLDS.—The stabilization 
program shall be suspended or the Secretary shall refrain 
from making the announcement under section 1432(a) if 
the Secretary determines that— 
(1) the actual dairy production margin is great-
er than $6.00 per hundredweight of milk for 2 con-
secutive months; 
(2) the actual dairy production margin is equal 
to or less than $6.00 (but greater than $5.00) for 2
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† HR 2642 EAS 
consecutive months, and during the same 2 consecu-
tive months— 
(A) the price in the United States for ched-
dar cheese is equal to or greater than the world 
price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is equal to or greater than the world 
price of skim milk powder; 
(3) the actual dairy production margin is equal 
to or less than $5.00 (but greater than $4.00) for 2 
consecutive months, and during the same 2 consecu-
tive months— 
(A) the price in the United States for ched-
dar cheese is more than 5 percent above the 
world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is more than 5 percent above the 
world price of skim milk powder; or 
(4) the actual dairy production margin is equal 
to or less than $4.00 for 2 consecutive months, and 
during the same 2 consecutive months— 
(A) the price in the United States for ched-
dar cheese is more than 7 percent above the 
world price of cheddar cheese; or
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† HR 2642 EAS 
(B) the price in the United States for non-
fat dry milk is more than 7 percent above the 
world price of skim milk powder. 
(c) IMPLEMENTATION BY HANDLERS.—Effective on the 
day after the date of the announcement by the Secretary 
under subsection (b) of the suspension of the stabilization 
program, the handler shall cease reducing payments to par-
ticipating dairy operations under the stabilization pro-
gram. 
(d) CONDITION ON RESUMPTION OF STABILIZATION 
PROGRAM.—Upon the announcement by the Secretary 
under subsection (b) that the stabilization program has been 
suspended, the stabilization program may not be imple-
mented again until, at the earliest— 
(1) 2 months have passed, beginning on the first 
day of the month immediately following the an-
nouncement by the Secretary; and 
(2) the conditions of section 1432(a) are again 
met. 
SEC. 1437. ENFORCEMENT. 
(a) UNLAWFUL ACT.—It shall be unlawful and a viola-
tion of the this subpart for any person subject to the sta-
bilization program to willfully fail or refuse to provide, or 
delay the timely reporting of, accurate information and re-
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† HR 2642 EAS 
mittance of funds to the Secretary in accordance with this 
subpart. 
(b) ORDER.—After providing notice and opportunity 
for a hearing to an affected person, the Secretary may issue 
an order against any person to cease and desist from con-
tinuing any violation of this subpart. 
(c) APPEAL.—An order of the Secretary under sub-
section (b) shall be final and conclusive unless an affected 
person files an appeal of the order of the Secretary in 
United States district court not later than 30 days after 
the date of the issuance of the order. A finding of the Sec-
retary in the order shall be set aside only if the finding 
is not supported by substantial evidence. 
(d) NONCOMPLIANCE WITH ORDER.—If a person sub-
ject to this subpart fails to obey an order issued under sub-
section (b) after the order has become final and 
unappealable, or after the appropriate United States dis-
trict court has entered a final judgment in favor of the Sec-
retary, the United States may apply to the appropriate 
United States district court for enforcement of the order. 
If the court determines that the order was lawfully made 
and duly served and that the person violated the order, the 
court shall enforce the order.
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† HR 2642 EAS 
SEC. 1438. AUDIT REQUIREMENTS. 
(a) AUDITS
OF DAIRY OPERATION
AND HANDLER 
COMPLIANCE.— 
(1) AUDITS AUTHORIZED.—If determined by the 
Secretary to be necessary to ensure compliance by 
participating dairy operations and handlers with the 
stabilization program, the Secretary may conduct 
periodic audits of participating dairy operations and 
handlers. 
(2) SAMPLE OF DAIRY OPERATIONS.—Any audit 
conducted under this subsection shall include, at a 
minimum, investigation of a statistically valid and 
random sample of participating dairy operations. 
(b) SUBMISSION OF RESULTS.—The Secretary shall 
submit the results of any audit conducted under subsection 
(a) to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate and include such recommenda-
tions as the Secretary considers appropriate regarding the 
stabilization program. 
SEC. 1439. STUDY; REPORT. 
(a) IN GENERAL.—The Secretary shall direct the Of-
fice of the Chief Economist to conduct a study of the im-
pacts of the program established under section 1431(a). 
(b) CONSIDERATIONS.—The study conducted under 
subsection (a) shall consider—
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† HR 2642 EAS 
(1) the economic impact of the program through-
out the dairy product value chain, including the im-
pact on producers, processors, domestic customers, ex-
port customers, actual market growth and potential 
market growth, farms of different sizes, and different 
regions and States; and 
(2) the impact of the program on the competi-
tiveness of the United States dairy industry in inter-
national markets. 
(c) REPORT.—Not later than December 1, 2017, the 
Office of the Chief Economist shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes the results of the study con-
ducted under subsection (a). 
Subpart C—Administration 
SEC. 1451. DURATION. 
The production margin protection program and the 
stabilization program shall end on December 31, 2018. 
SEC. 1452. ADMINISTRATION AND ENFORCEMENT. 
(a) IN GENERAL.—The Secretary shall promulgate 
regulations to address administrative and enforcement 
issues involved in carrying out the production margin pro-
tection, supplemental production margin protection, and 
market stabilization programs.
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† HR 2642 EAS 
(b) RECONSTITUTION AND ELIGIBILITY ISSUES.— 
(1) RECONSTITUTION.—Using authorities under 
section 1001(f) and 1001B of the Food Security Act 
of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary 
shall promulgate regulations to prohibit a dairy pro-
ducer from reconstituting a dairy operation for the 
sole purpose of the dairy producer— 
(A) receiving basic margin protection; 
(B) purchasing supplemental margin pro-
tection; or 
(C) avoiding participation in the market 
stabilization program. 
(2) ELIGIBILITY
ISSUES.—Using authorities 
under section 1001(f) and 1001B of the Food Security 
Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary 
shall promulgate regulations— 
(A) to prohibit a scheme or device; 
(B) to provide for equitable relief; and 
(C) to provide for other issues affecting eli-
gibility and liability issues. 
(3) ADMINISTRATIVE APPEALS.—Using authori-
ties under section 1001(h) of the Food Security Act of 
1985 (7 U.S.C. 1308(h)) and subtitle H of the De-
partment of Agriculture Reorganization Act (7 U.S.C. 
6991 et seq.), the Secretary shall promulgate regula-
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† HR 2642 EAS 
tions to provide for administrative appeals of deci-
sions of the Secretary that are adverse to participants 
of the programs described in subsection (a). 
PART II—DAIRY MARKET TRANSPARENCY 
SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING. 
(a) DEFINITIONS.—Section 272(1)(A) of the Agricul-
tural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is 
amended by inserting ‘‘, or any other products that may 
significantly aid price discovery in the dairy markets, as 
determined by the Secretary’’ after ‘‘of 1937’’. 
(b) MANDATORY REPORTING FOR DAIRY PRODUCTS.— 
Section 273(b) of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1637b(b)) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) IN GENERAL.—In establishing the program, 
the Secretary shall only— 
‘‘(A)(i) subject to the conditions described in 
paragraph (2), require each manufacturer to re-
port to the Secretary, more frequently than once 
per month, information concerning the price, 
quantity, and moisture content of dairy products 
sold by the manufacturer and any other product 
characteristics that may significantly aid price
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† HR 2642 EAS 
discovery in the dairy markets, as determined by 
the Secretary; and 
‘‘(ii) modify the format used to provide the 
information on the day before the date of enact-
ment of this subtitle to ensure that the informa-
tion can be readily understood by market par-
ticipants; and 
‘‘(B) require each manufacturer and other 
person storing dairy products (including dairy 
products in cold storage) to report to the Sec-
retary, more frequently than once per month, in-
formation on the quantity of dairy products 
stored.’’; and 
(2) in paragraph (2), by inserting ‘‘or those that 
may significantly aid price discovery in the dairy 
markets’’ after ‘‘Federal milk marketing order’’ each 
place it appears in subparagraphs (A), (B), and (C). 
SEC. 1462. FEDERAL MILK MARKETING ORDER PROGRAM 
PRE-HEARING PROCEDURE FOR CLASS III 
PRICING. 
(a) IN GENERAL.—The Secretary shall use the pre- 
hearing procedure described in this section to consider alter-
native formulas for Class III milk product pricing under 
section 8c of the Agricultural Adjustment Act (7 U.S.C.
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† HR 2642 EAS 
608c), reenacted with amendments by the Agricultural Mar-
keting Agreement Act of 1937. 
(b) REQUESTS FOR PROPOSALS.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of enactment of this Act, the Secretary shall 
issue a request for the submission by interested per-
sons of preliminary proposals for replacement of the 
Class III milk product pricing formula. 
(2) 
PRELIMINARY
PROPOSALS.—Preliminary 
proposals submitted under paragraph (1)— 
(A) may include competitive pay price for-
mulas; and 
(B) shall provide sufficient detail in concept 
to serve as the basis for the convening by the Sec-
retary of a public information session for review 
and discussion in accordance with section 900.24 
of title 7, Code of Federal Regulations (as in ef-
fect on the date of enactment of this Act), but 
need not conform with the other procedural re-
quirements of part 900 of title 7, Code of Federal 
Regulations (as in effect on the date of enact-
ment of this Act). 
(c) PRE-HEARING INFORMATION SESSION REVIEW.— 
(1) IN GENERAL.—Not later than 180 days after 
the date on which the Secretary issues a request under
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† HR 2642 EAS 
subsection (b)(1), the Secretary shall convene a public 
information session in accordance with section 900.24 
of title 7, Code of Federal Regulations (as in effect on 
the date of enactment of this Act). 
(2) REQUIREMENTS.—The Secretary shall review 
all preliminary proposals submitted under this sec-
tion that are of sufficient conceptual detail to allow 
for the review described in paragraph (b)(2)(B). 
(d) HEARING DETERMINATION.— 
(1) IN GENERAL.—Not later than 90 days after 
the conduct of the public information session under 
subsection (c), the Secretary shall determine whether 
to conduct a formal hearing in accordance with part 
900 of title 7, Code of Federal Regulations (as in ef-
fect on the date of enactment of this Act). 
(2) HEARING TO BE CONDUCTED.—If the Sec-
retary determines under paragraph (1) to conduct a 
formal hearing, the Secretary shall issue notice and 
conduct the hearing in accordance with part 900 of 
title 7, Code of Federal Regulations (as in effect on 
the date of enactment of this Act). 
(3) HEARING NOT TO BE CONDUCTED.—If the 
Secretary determines under paragraph (1) not to con-
duct a formal hearing, not later than 90 days after 
that determination, the Secretary shall submit to the
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† HR 2642 EAS 
Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition 
and Forestry of the Senate a written report that ex-
plains the basis for the decision. 
(e) PROCEEDING WITH A HEARING AT ANY TIME.— 
Consistent with the purposes of this section, the Secretary 
may dispense with the pre-hearing requirements of this sec-
tion and initiate at any time a formal hearing under part 
900 of title 7, Code of Federal Regulations (as in effect on 
the date of enactment of this Act). 
PART III—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1471. 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.— 
(1) PAYMENTS UNDER MILK INCOME LOSS CON-
TRACT
PROGRAM.—Section 1506(c)(3) of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 
8773(c)(3)) is amended—
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† HR 2642 EAS 
(A) in subparagraph (A), by inserting 
‘‘and’’ after the semicolon; 
(B) in subparagraph (B), by striking ‘‘Au-
gust 31, 2013, 45 percent; and’’ and inserting 
‘‘June 30, 2014, 45 percent.’’; and 
(C) by striking subparagraph (C). 
(2) EXTENSION.—Section 1506(h)(1) of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 
8773(h)(1)) is amended by striking ‘‘September 30, 
2013’’ and inserting ‘‘June 30, 2014’’. 
(3) REPEAL.—Effective July 1, 2014, section 
1506 of the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8773) is repealed. 
SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) REPEAL.—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), respectively.
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† HR 2642 EAS 
SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PRO-
GRAM. 
Section 1502(e) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8772(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and in-
serting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and in-
serting ‘‘2021’’. 
SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 
amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RE-
SEARCH PROGRAM. 
Section 113(e)(2) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING 
ORDER REVIEW COMMISSION. 
Section 1509(a) of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1726) is 
amended by inserting ‘‘or other funds’’ after ‘‘Subject to the 
availability of appropriations’’.
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† HR 2642 EAS 
PART IV—FEDERAL MILK MARKETING ORDER 
REFORM 
SEC. 1481. FEDERAL MILK MARKETING ORDERS. 
(a) AMENDMENTS.—The Secretary shall provide an 
analysis on the effects of amending each Federal milk mar-
keting order issued under section 8c of the Agricultural Ad-
justment Act (7 U.S.C. 608c), reenacted with amendments 
by the Agricultural Marketing Agreement Act of 1937 (in 
this part referred to as a ‘‘milk marketing order’’), as re-
quired by this section. 
(b) USE OF END-PRODUCT PRICE FORMULAS.—In 
carrying out subsection (a), the Secretary shall— 
(1) consider replacing the use of end-product 
price formulas with other pricing alternatives; and 
(2) submit to the Committee on Agriculture of 
the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a 
report describing the findings of the Secretary on the 
impact of the action considered under paragraph (1). 
PART V—EFFECTIVE DATE 
SEC. 1491. EFFECTIVE DATE. 
Except as otherwise provided in this subtitle, this sub-
title and the amendments made by this subtitle take effect 
on October 1, 2013.
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Subtitle E—Supplemental Agricul-
tural Disaster Assistance Pro-
grams 
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE PROGRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PRODUCER ON A FARM.— 
(A) IN GENERAL.—The term ‘‘eligible pro-
ducer on a farm’’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricultural 
production of crops or livestock. 
(B) DESCRIPTION.—An individual or entity 
referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability 
corporation, or other farm organizational 
structure organized under State law. 
(2) FARM.— 
(A) IN GENERAL.—The term ‘‘farm’’ means, 
in relation to an eligible producer on a farm, the
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total of all crop acreage in all counties that is 
planted or intended to be planted for harvest, for 
sale, or on-farm livestock feeding (including na-
tive grassland intended for haying) by the eligi-
ble producer. 
(B) AQUACULTURE.—In the case of aqua-
culture, the term ‘‘farm’’ means, in relation to 
an eligible producer on a farm, all fish being 
produced in all counties that are intended to be 
harvested for sale by the eligible producer. 
(C) HONEY.—In the case of honey, the term 
‘‘farm’’ means, in relation to an eligible pro-
ducer on a farm, all bees and beehives in all 
counties that are intended to be harvested for a 
honey crop for sale by the eligible producer. 
(3) FARM-RAISED FISH.—The term ‘‘farm-raised 
fish’’ means any aquatic species that is propagated 
and reared in a controlled environment. 
(4) 
LIVESTOCK.—The 
term 
‘‘livestock’’ 
in-
cludes— 
(A) cattle (including dairy cattle); 
(B) bison; 
(C) poultry; 
(D) sheep; 
(E) swine;
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(F) horses; and 
(G) other livestock, as determined by the 
Secretary. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
(1) PAYMENTS.—For each of fiscal years 2012 
through 2018, the Secretary shall use such sums as 
are necessary of the funds of the Commodity Credit 
Corporation to make livestock indemnity payments to 
eligible producers on farms that have incurred live-
stock death losses in excess of the normal mortality, 
as determined by the Secretary, due to— 
(A) attacks by animals reintroduced into 
the wild by the Federal Government or protected 
by Federal law, including wolves; or 
(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, disease, 
wildfires, extreme heat, and extreme cold. 
(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 65 percent of the market 
value of the applicable livestock on the day before the 
date of death of the livestock, as determined by the 
Secretary.
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(3) SPECIAL RULE FOR PAYMENTS MADE DUE TO 
DISEASE.—The Secretary shall ensure that payments 
made to an eligible producer under paragraph (1) are 
not made for the same livestock losses for which com-
pensation is provided pursuant to section 10407(d) of 
the Animal Health Protection Act (7 U.S.C. 8306(d)). 
(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) ESTABLISHMENT.—There is established a 
livestock forage disaster program to provide 1 source 
for livestock forage disaster assistance for weather-re-
lated forage losses, as determined by the Secretary, by 
combining— 
(A) the livestock forage assistance functions 
of— 
(i) the noninsured crop disaster assist-
ance program established by section 196 of 
the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333); and 
(ii) the emergency assistance for live-
stock, honey bees, and farm-raised fish pro-
gram under section 531(e) of the Federal 
Crop Insurance Act (7 U.S.C. 1531(e)) (as 
in existence on the day before the date of en-
actment of this Act); and
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(B) the livestock forage disaster program 
under section 531(d) of the Federal Crop Insur-
ance Act (7 U.S.C. 1531(d)) (as in existence on 
the day before the date of enactment of this Act). 
(2) DEFINITIONS.—In this subsection: 
(A) COVERED LIVESTOCK.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of an eligible forage loss, as 
determined by the Secretary, the eligible 
livestock producer— 
(I) owned; 
(II) leased; 
(III) purchased; 
(IV) entered into a contract to 
purchase; 
(V) was a contract grower; or 
(VI) sold or otherwise disposed of 
due to an eligible forage loss during— 
(aa) the current production 
year; or 
(bb) subject to paragraph 
(4)(B)(ii), 1 or both of the 2 pro-
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† HR 2642 EAS 
duction years immediately pre-
ceding the current production 
year. 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
were or would have been in a feedlot, on the 
beginning date of the eligible forage loss, as 
a part of the normal business operation of 
the eligible livestock producer, as determined 
by the Secretary. 
(B) 
DROUGHT
MONITOR.—The 
term 
‘‘drought 
monitor’’ 
means 
a 
system 
for 
classifying drought severity according to a range 
of abnormally dry to exceptional drought, as de-
fined by the Secretary. 
(C) ELIGIBLE
FORAGE
LOSS.—The term 
‘‘eligible forage loss’’ means 1 or more forage 
losses that occur due to weather-related condi-
tions, including drought, flood, blizzard, hail, ex-
cessive moisture, hurricane, and fire, occurring 
during the normal grazing period, as determined 
by the Secretary, if the forage— 
(i) is grown on land that is native or 
improved pastureland with permanent vege-
tative cover; or
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(ii) is a crop planted specifically for 
the purpose of providing grazing for covered 
livestock of an eligible livestock producer. 
(D) ELIGIBLE LIVESTOCK PRODUCER.— 
(i) IN GENERAL.—The term ‘‘eligible 
livestock producer’’ means an eligible pro-
ducer on a farm that— 
(I) is an owner, cash or share les-
see, or contract grower of covered live-
stock that provides the pastureland or 
grazing land, including cash-leased 
pastureland or grazing land, for the 
covered livestock; 
(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by an eligible for-
age loss; 
(III) certifies the eligible forage 
loss; and 
(IV) meets all other eligibility re-
quirements established under this sub-
section.
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† HR 2642 EAS 
(ii) EXCLUSION.—The term ‘‘eligible 
livestock producer’’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
(E) NORMAL
CARRYING
CAPACITY.—The 
term ‘‘normal carrying capacity’’, with respect 
to each type of grazing land or pastureland in 
a county, means the normal carrying capacity, 
as determined under paragraph (4)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal graz-
ing period, in the absence of an eligible forage 
loss that diminishes the production of the graz-
ing land or pastureland. 
(F) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a coun-
ty, means the normal grazing period during the 
calendar year for the county, as determined 
under paragraph (4)(D)(i). 
(3) PROGRAM.—For each of fiscal years 2012 
through 2018, the Secretary shall use such sums as 
are necessary of the funds of the Commodity Credit 
Corporation to provide compensation under para-
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† HR 2642 EAS 
graphs (4) through (6), as determined by the Sec-
retary for eligible forage losses affecting covered live-
stock of eligible livestock producers. 
(4) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES 
DUE TO DROUGHT CONDITIONS.— 
(A) ELIGIBLE FORAGE LOSSES.— 
(i) IN GENERAL.—An eligible livestock 
producer of covered livestock may receive as-
sistance under this paragraph for eligible 
forage losses that occur due to drought on 
land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegetative 
cover; or 
(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
(ii) EXCLUSIONS.—An eligible livestock 
producer may not receive assistance under 
this paragraph for eligible forage losses that 
occur on land used for haying or grazing 
under the conservation reserve program es-
tablished under subchapter B of chapter 1 of 
subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.), unless
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† HR 2642 EAS 
the land is grassland eligible for the con-
servation reserve program under section 
1231(d)(2) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)(2)) (as amended by sec-
tion 2001). 
(B) MONTHLY PAYMENT RATE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the payment rate for assist-
ance for 1 month under this paragraph 
shall, in the case of drought, be equal to 50 
percent of the lesser of— 
(I) the monthly feed cost for all 
covered livestock owned or leased by the 
eligible livestock producer, as deter-
mined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
(ii) PARTIAL COMPENSATION.—In the 
case of an eligible livestock producer that 
sold or otherwise disposed of covered live-
stock due to drought conditions in 1 or both 
of the 2 production years immediately pre-
ceding the current production year, as de-
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† HR 2642 EAS 
termined by the Secretary, the payment rate 
shall be 80 percent of the payment rate oth-
erwise calculated in accordance with clause 
(i). 
(C) MONTHLY FEED COST.— 
(i) IN
GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
(I) 30 days; 
(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
(III) a payment rate that is equal 
to the corn price per pound, as deter-
mined under clause (iii). 
(ii) FEED
GRAIN
EQUIVALENT.—For 
purposes of clause (i)(II), the feed grain 
equivalent shall equal— 
(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
(II) in the case of any other type 
of weight of livestock, an amount deter-
mined by the Secretary that represents 
the average number of pounds of corn 
per day necessary to feed the livestock.
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† HR 2642 EAS 
(iii) CORN
PRICE
PER
POUND.—For 
purposes of clause (i)(III), the corn price 
per pound shall equal the quotient obtained 
by dividing— 
(I) the lesser of— 
(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
(bb) the average national 
marketing year average corn price 
per bushel for the most recent 5 
crop years, excluding each of the 
crop years with the highest and 
lowest prices; by 
(II) 56. 
(D) 
NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
(i) FSA COUNTY COMMITTEE DETER-
MINATIONS.— 
(I) IN GENERAL.—The Secretary 
shall determine the normal carrying 
capacity and normal grazing period
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† HR 2642 EAS 
for each type of grazing land or 
pastureland in the county served by the 
applicable Farm Service Agency com-
mittee, except that the normal grazing 
period shall not exceed 240 days. 
(II) CHANGES.—No change to the 
normal carrying capacity or normal 
grazing period established for a county 
under subclause (I) shall be made un-
less the change is requested by the ap-
propriate State and county Farm 
Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock pro-
ducer that owns or leases grazing land 
or pastureland that is physically lo-
cated in a county that is rated by the 
U.S. Drought Monitor as having a D2 
(severe drought) intensity in any area 
of the county for at least 8 consecutive 
weeks during the normal grazing pe-
riod for the county, as determined by 
the Secretary, shall be eligible to re-
ceive assistance under this paragraph 
in an amount equal to 1 monthly pay-
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† HR 2642 EAS 
ment using the monthly payment rate 
determined under subparagraph (B). 
(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by the 
U.S. Drought Monitor as having at 
least a D3 (extreme drought) intensity 
in any area of the county at any time 
during the normal grazing period for 
the county, as determined by the Sec-
retary, shall be eligible to receive as-
sistance under this paragraph— 
(aa) in an amount equal to 2 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B); or 
(bb) if the county is rated as 
having a D3 (extreme drought) 
intensity in any area of the coun-
ty for at least 4 weeks during the 
normal grazing period for the 
county, or is rated as having a 
D4 (exceptional drought) intensity 
in any area of the county at any
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† HR 2642 EAS 
time during the normal grazing 
period, in an amount equal to 3 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B). 
(iii) ANNUAL
PAYMENT
BASED
ON 
DROUGHT
CONDITIONS
DETERMINED
BY 
MEANS
OTHER
THAN
THE
U.S. DROUGHT 
MONITOR.— 
(I) IN GENERAL.—An eligible live-
stock producer that owns grazing land 
or pastureland that is physically lo-
cated in a county that has experienced 
on average, over the preceding calendar 
year, precipitation levels that are 50 
percent or more below normal levels, 
according to sufficient documentation 
as determined by the Secretary, may be 
eligible, subject to a determination by 
the Secretary, to receive assistance 
under this paragraph in an amount 
equal to not more than 1 monthly pay-
ment using the monthly payment rate 
under subparagraph (B).
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† HR 2642 EAS 
(II) NO DUPLICATE PAYMENT.—A 
producer may not receive a payment 
under both clause (ii) and this clause. 
(5) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN GENERAL.—An eligible livestock pro-
ducer may receive assistance under this para-
graph only if— 
(i) the eligible forage losses occur on 
rangeland that is managed by a Federal 
agency; and 
(ii) the eligible livestock producer is 
prohibited by the Federal agency from graz-
ing the normal permitted livestock on the 
managed rangeland due to a fire. 
(B) PAYMENT RATE.—The payment rate for 
assistance under this paragraph shall be equal to 
50 percent of the monthly feed cost for the total 
number of livestock covered by the Federal lease 
of the eligible livestock producer, as determined 
under paragraph (4)(C). 
(C) PAYMENT DURATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be
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† HR 2642 EAS 
eligible to receive assistance under this 
paragraph for the period— 
(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
(II) ending on the last day of the 
Federal lease of the eligible livestock 
producer. 
(ii) LIMITATION.—An eligible livestock 
producer may only receive assistance under 
this paragraph for losses that occur on not 
more than 180 days per year. 
(6) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES 
DUE TO OTHER THAN DROUGHT OR FIRE.— 
(A) ELIGIBLE FORAGE LOSSES.— 
(i) IN GENERAL.—Subject to subpara-
graph (B), an eligible livestock producer of 
covered livestock may receive assistance 
under this paragraph for eligible forage 
losses that occur due to weather-related con-
ditions other than drought or fire on land 
that—
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† HR 2642 EAS 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegetative 
cover; or 
(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
(ii) EXCLUSIONS.—An eligible livestock 
producer may not receive assistance under 
this paragraph for eligible forage losses that 
occur on land used for haying or grazing 
under the conservation reserve program es-
tablished under subchapter B of chapter 1 of 
subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.), unless 
the land is grassland eligible for the con-
servation reserve program under section 
1231(d)(2) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)(2)) (as amended by sec-
tion 2001). 
(B) PAYMENTS
FOR
ELIGIBLE
FORAGE 
LOSSES.— 
(i) IN GENERAL.—The Secretary shall 
provide assistance under this paragraph to 
an eligible livestock producer for eligible for-
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† HR 2642 EAS 
age losses that occur due to weather-related 
conditions other than— 
(I) drought under paragraph (4); 
and 
(II) fire on public managed land 
under paragraph (5). 
(ii) TERMS
AND
CONDITIONS.—The 
Secretary shall establish terms and condi-
tions for assistance under this paragraph 
that are consistent with the terms and con-
ditions for assistance under this subsection. 
(7) NO
DUPLICATIVE
PAYMENTS.—An eligible 
livestock producer may elect to receive assistance for 
eligible forage losses under either paragraph (4), (5), 
or (6), if applicable, but may not receive assistance 
under more than 1 of those paragraphs for the same 
loss, as determined by the Secretary. 
(8) DETERMINATIONS BY SECRETARY.—A deter-
mination made by the Secretary under this subsection 
shall be final and conclusive. 
(d) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY 
BEES, AND FARM-RAISED FISH.— 
(1) IN GENERAL.—For each of fiscal years 2012 
through 2018, the Secretary shall use not more than 
$15,000,000 of the funds of the Commodity Credit
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† HR 2642 EAS 
Corporation to provide emergency relief to eligible 
producers of livestock, honey bees, and farm-raised 
fish to aid in the reduction of losses due to disease, 
adverse weather, or other conditions, such as blizzards 
and wildfires, as determined by the Secretary, that 
are not covered under subsection (b) or (c). 
(2) USE
OF
FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
(3) AVAILABILITY OF FUNDS.—Any funds made 
available under this subsection shall remain available 
until expended. 
(e) TREE ASSISTANCE PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE ORCHARDIST.—The term ‘‘eli-
gible orchardist’’ means a person that produces 
annual crops from trees for commercial purposes. 
(B) NATURAL DISASTER.—The term ‘‘nat-
ural disaster’’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
(C) NURSERY
TREE
GROWER.—The term 
‘‘nursery tree grower’’ means a person who pro-
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† HR 2642 EAS 
duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
(D) TREE.—The term ‘‘tree’’ includes a 
tree, bush, and vine. 
(2) ELIGIBILITY.— 
(A) LOSS.—Subject to subparagraph (B), 
for each of fiscal years 2012 through 2018, the 
Secretary shall use such sums as are necessary of 
the funds of the Commodity Credit Corporation 
to provide assistance— 
(i) under paragraph (3) to eligible or-
chardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
(ii) under paragraph (3)(B) to eligible 
orchardists and nursery tree growers that 
have a production history for commercial 
purposes on planted or existing trees but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary. 
(B) LIMITATION.—An eligible orchardist or 
nursery tree grower shall qualify for assistance 
under subparagraph (A) only if the tree mor-
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† HR 2642 EAS 
tality of the eligible orchardist or nursery tree 
grower, as a result of damaging weather or re-
lated condition, exceeds 15 percent (adjusted for 
normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), the 
assistance provided by the Secretary to eligible or-
chardists and nursery tree growers for losses described 
in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural dis-
aster, as determined by the Secretary, in excess 
of 15 percent mortality (adjusted for normal 
mortality); or 
(ii) at the option of the Secretary, sufficient 
seedlings to reestablish a stand; and 
(B) reimbursement of 50 percent of the cost 
of pruning, removal, and other costs incurred by 
an eligible orchardist or nursery tree grower to 
salvage existing trees or, in the case of tree mor-
tality, to prepare the land to replant trees as a 
result of damage or tree mortality due to a nat-
ural disaster, as determined by the Secretary, in 
excess of 15 percent damage or mortality (ad-
justed for normal tree damage and mortality). 
(4) LIMITATIONS ON ASSISTANCE.—
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† HR 2642 EAS 
(A) DEFINITIONS
OF
LEGAL
ENTITY
AND 
PERSON.—In this paragraph, the terms ‘‘legal 
entity’’ and ‘‘person’’ have the meaning given 
those terms in section 1001(a) of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308(a)). 
(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $100,000 for any crop year, or an 
equivalent value in tree seedlings. 
(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a per-
son or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
(f) PAYMENTS.— 
(1) PAYMENT LIMITATIONS.— 
(A) DEFINITIONS
OF
LEGAL
ENTITY
AND 
PERSON.—In this subsection, the terms ‘‘legal en-
tity’’ and ‘‘person’’ have the meanings given 
those terms in section 1001(a) of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308(a)). 
(B) AMOUNT.—The total amount of disaster 
assistance payments received, directly or indi-
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† HR 2642 EAS 
rectly, by a person or legal entity (excluding a 
joint venture or general partnership) under this 
section (excluding payments received under sub-
section (e)) may not exceed $100,000 for any 
crop year. 
(C) DIRECT ATTRIBUTION.—Subsections (d) 
and (e) of section 1001 of the Food Security Act 
of 1985 (7 U.S.C. 1308) or any successor provi-
sions relating to direct attribution shall apply 
with respect to assistance provided under this 
section. 
(2) PAYMENT
DELIVERY.—The Secretary shall 
make payments under this section after October 1, 
2013, for losses incurred in the 2012 and 2013 fiscal 
years, and as soon as practicable for losses incurred 
in any year thereafter. 
Subtitle F—Administration 
SEC. 1601. ADMINISTRATION GENERALLY. 
(a) USE OF COMMODITY CREDIT CORPORATION.—The 
Secretary shall use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out this title. 
(b) DETERMINATIONS BY SECRETARY.—A determina-
tion made by the Secretary under this title shall be final 
and conclusive. 
(c) REGULATIONS.—
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† HR 2642 EAS 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, not later than 90 days after the 
date of enactment of this Act, the Secretary and the 
Commodity Credit Corporation, as appropriate, shall 
promulgate such regulations as are necessary to im-
plement this title and the amendments made by this 
title. 
(2) PROCEDURE.—The promulgation of the regu-
lations and administration of this title and the 
amendments made by this title and sections 11001 
and 11012 shall be made without regard to— 
(A) the notice and comment provisions of 
section 553 of title 5, United States Code; 
(B) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); and 
(C) the Statement of Policy of the Secretary 
of Agriculture effective July 24, 1971 (36 Fed. 
Reg. 13804), relating to notices of proposed rule-
making and public participation in rulemaking. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.—In carrying out this subsection, the Sec-
retary shall use the authority provided under section 
808 of title 5, United States Code.
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† HR 2642 EAS 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE 
AGREEMENTS COMPLIANCE.— 
(1) REQUIRED DETERMINATION; ADJUSTMENT.— 
If the Secretary determines that expenditures under 
this title that are subject to the total allowable domes-
tic support levels under the Uruguay Round Agree-
ments (as defined in section 2 of the Uruguay Round 
Agreements Act (19 U.S.C. 3501)) will exceed the al-
lowable levels for any applicable reporting period, the 
Secretary shall, to the maximum extent practicable, 
make adjustments in the amount of the expenditures 
during that period to ensure that the expenditures do 
not exceed the allowable levels. 
(2) 
CONGRESSIONAL
NOTIFICATION.—Before 
making any adjustment under paragraph (1), the 
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the 
Senate a report describing the determination made 
under that paragraph and the extent of the adjust-
ment to be made. 
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT 
AUTHORITY. 
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The 
following provisions of the Agricultural Adjustment Act of
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1938 shall not be applicable to the 2014 through 2018 crops 
of covered commodities (as defined in section 1104), cotton, 
and sugar and shall not be applicable to milk during the 
period beginning on the date of enactment of this Act 
through December 31, 2018: 
(1) Parts II through V of subtitle B of title III 
(7 U.S.C. 1326 et seq.). 
(2) In the case of upland cotton, section 377 (7 
U.S.C. 1377). 
(3) Subtitle D of title III (7 U.S.C. 1379a et 
seq.). 
(4) Title IV (7 U.S.C. 1401 et seq.). 
(b) AGRICULTURAL ACT OF 1949.—The following pro-
visions of the Agricultural Act of 1949 shall not be applica-
ble to the 2014 through 2018 crops of covered commodities 
(as defined in section 1104), cotton, and sugar and shall 
not be applicable to milk during the period beginning on 
the date of enactment of this Act and through December 31, 
2018: 
(1) Section 101 (7 U.S.C. 1441). 
(2) Section 103(a) (7 U.S.C. 1444(a)). 
(3) Section 105 (7 U.S.C. 1444b). 
(4) Section 107 (7 U.S.C. 1445a). 
(5) Section 110 (7 U.S.C. 1445e). 
(6) Section 112 (7 U.S.C. 1445g).
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(7) Section 115 (7 U.S.C. 1445k). 
(8) Section 201 (7 U.S.C. 1446). 
(9) Title III (7 U.S.C. 1447 et seq.). 
(10) Title IV (7 U.S.C. 1421 et seq.), other than 
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 
1431). 
(11) Title V (7 U.S.C. 1461 et seq.). 
(12) Title VI (7 U.S.C. 1471 et seq.). 
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 
The joint resolution entitled ‘‘A joint resolution relating to 
corn and wheat marketing quotas under the Agricultural 
Adjustment Act of 1938, as amended’’, approved May 26, 
1941 (7 U.S.C. 1330 and 1340), shall not be applicable to 
the crops of wheat planted for harvest in the calendar years 
2014 through 2018. 
SEC. 1603. PAYMENT LIMITATIONS. 
(a) IN GENERAL.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking sub-
sections (b) and (c) and inserting the following: 
‘‘(b) LIMITATION ON PAYMENTS FOR PEANUTS AND 
OTHER COVERED COMMODITIES.—The total amount of 
payments received, directly or indirectly, by a person or 
legal entity (except a joint venture or general partnership) 
for any crop year under subtitle A of title I of the Agri-
culture Reform, Food, and Jobs Act of 2013 for—
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‘‘(1) peanuts may not exceed $50,000; and 
‘‘(2) 1 or more other covered commodities may 
not exceed $50,000.’’. 
(b) LIMITATION
ON MARKETING LOAN GAINS
AND 
LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER 
LOAN COMMODITIES.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking sub-
section (d) and inserting the following: 
‘‘(d) LIMITATION ON MARKETING LOAN GAINS AND 
LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER 
LOAN COMMODITIES.—The total amount of marketing loan 
gains and loan deficiency payments received, directly or in-
directly, by a person or legal entity (except a joint venture 
or general partnership) for any crop year under subtitle 
B of the Agriculture Reform, Food, and Jobs Act of 2013 
(or a successor provision) for— 
‘‘(1) peanuts may not exceed $75,000; and 
‘‘(2) 1 or more other loan commodities may not 
exceed $75,000.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) is amended— 
(A) in subsection (a)(1), by striking ‘‘sec-
tion 1001 of the Food, Conservation, and Energy 
Act of 2008’’ and inserting ‘‘section 1104 of the
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Agriculture Reform, Food, and Jobs Act of 
2013’’; 
(B) in subsection (e)— 
(i) in paragraph (1), by striking ‘‘sub-
sections (b) and (c) and a program de-
scribed in paragraphs (1)(C)’’ and inserting 
‘‘subsection (b) and a program described in 
paragraph (1)(B)’’; and 
(ii) in paragraph (3)(B), by striking 
‘‘subsections (b) and (c)’’ each place it ap-
pears and inserting ‘‘subsection (b)’’; 
(C) in subsection (f)— 
(i) by striking ‘‘or title XII’’ each place 
it appears in paragraphs (5)(A) and (6)(A) 
and inserting ‘‘, title I of the Agriculture 
Reform, Food, and Jobs Act of 2013, or title 
XII’’; 
(ii) in paragraph (2), by striking 
‘‘Subsections (b) and (c)’’ and inserting 
‘‘Subsection (b)’’; 
(iii) in paragraph (4)(B), by striking 
‘‘subsection (b) or (c)’’ and inserting ‘‘sub-
section (b)’’; 
(iv) in paragraph (5)—
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(I) in subparagraph (A), by strik-
ing ‘‘subsection (d)’’ and inserting 
‘‘subsection (c)’’; and 
(II) in subparagraph (B), by 
striking ‘‘subsection (b), (c), or (d)’’ 
and inserting ‘‘subsection (b) or (c)’’; 
and 
(v) in paragraph (6)— 
(I) in subparagraph (A), by strik-
ing ‘‘subsection (d), except as provided 
in subsection (g)’’ and inserting ‘‘sub-
section (c), except as provided in sub-
section (f)’’; and 
(II) in subparagraph (B), by 
striking ‘‘subsections (b), (c), and (d)’’ 
and inserting ‘‘subsections (b) and 
(c)’’; 
(D) in subsection (g)— 
(i) in paragraph (1)— 
(I) 
bv 
striking 
‘‘subsection 
(f)(6)(A)’’ and inserting ‘‘subsection 
(e)(6)(A)’’ and 
(II) by striking ‘‘subsection (b) or 
(c)’’ and inserting ‘‘subsection (b)’’; 
and
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(ii) in paragraph (2)(A), by striking 
‘‘subsections (b) and (c)’’ and inserting 
‘‘subsection (b)’’; and 
(E) by redesignating subsections (d) through 
(h) as subsections (c) through (g), respectively. 
(2) Section 1001A of the Food Security Act of 
1985 (7 U.S.C. 1308–1) is amended— 
(A) in subsection (a), by striking ‘‘sub-
sections (b) and (c)’’ and inserting ‘‘subsection 
(b)’’; and 
(B) in subsection (b)(1), by striking ‘‘sub-
section (b) or (c)’’ and inserting ‘‘subsection (b)’’. 
(3) Section 1001B(a) of the Food Security Act of 
1985 (7 U.S.C. 1308–2(a)) is amended in the matter 
preceding paragraph (1) by striking ‘‘subsections (b) 
and (c)’’ and inserting ‘‘subsection (b)’’. 
(4) Section 1001C(a) of the Food Security Act of 
1985 (7 U.S.C. 1308–3(a)) is amended by inserting 
‘‘title I of the Agriculture Reform, Food, and Jobs Act 
of 2013,’’ after ‘‘2008,’’. 
(d) APPLICATION.—The amendments made by this sec-
tion shall apply beginning with the 2014 crop year. 
SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS. 
Section 1001A of the Food Security Act of 1985 (7 
U.S.C. 1308–1) is amended—
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(1) in subsection (b)(2)— 
(A) by striking ‘‘or active personal manage-
ment’’ each place it appears in subparagraphs 
(A)(i)(II) and (B)(ii); and 
(B) in subparagraph (C), by striking ‘‘, as 
applied to the legal entity, are met by the legal 
entity, the partners or members making a sig-
nificant contribution of personal labor or active 
personal management’’ and inserting ‘‘are met 
by partners or members making a significant 
contribution of personal labor, those partners or 
members’’; and 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking subparagraph (A) and 
inserting the following: 
‘‘(A) the landowner share-rents the land at 
a rate that is usual and customary;’’; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing:
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‘‘(C) the share of the payments received by 
the landowner is commensurate with the share of 
the crop or income received as rent.’’; 
(B) in paragraph (2)(A), by striking ‘‘ac-
tive personal management or’’; 
(C) in paragraph (5)— 
(i) by striking ‘‘(5)’’ and all that fol-
lows through ‘‘(A) IN GENERAL.—A person’’ 
and inserting the following: 
‘‘(5) CUSTOM FARMING SERVICES.—A person’’; 
(ii) by inserting ‘‘under usual and cus-
tomary terms’’ after ‘‘services’’; and 
(iii) by striking subparagraph (B); 
and 
(D) by adding at the end the following: 
‘‘(7) FARM MANAGERS.—A person who otherwise 
meets the requirements of this subsection other than 
(b)(2)(A)(i)(II) shall be considered to be actively en-
gaged in farming, as determined by the Secretary, 
with respect to the farming operation, including a 
farming operation that is a sole proprietorship, a 
legal entity such as a joint venture or general part-
nership, or a legal entity such as a corporation or 
limited partnership, if the person—
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‘‘(A) makes a significant contribution of 
management to the farming operation necessary 
for the farming operation, taking into account— 
‘‘(i) the size and complexity of the 
farming operation; and 
‘‘(ii) the management requirements 
normally and customarily required by simi-
lar farming operations; 
‘‘(B) is the only person in the farming oper-
ation qualifying as actively engaged in farming; 
‘‘(C) does not use the management contribu-
tion under this paragraph to qualify as actively 
engaged in more than 1 farming operation; and 
‘‘(D) manages a farm operation that does 
not substantially share equipment, labor, or 
management with persons or legal entities that 
with the person collectively receive, directly or 
indirectly, an amount equal to more than the 
applicable limits under section 1001(b).’’. 
SEC. 1605. ADJUSTED GROSS INCOME LIMITATION. 
(a) IN GENERAL.—Section 1001D(b)) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by 
striking paragraph (1) and inserting the following: 
‘‘(1) COMMODITY PROGRAMS.—
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‘‘(A) LIMITATION.—Notwithstanding any 
other provision of law, a person or legal entity 
shall not be eligible to receive any benefit de-
scribed in subparagraph (B) during a crop, fis-
cal or program year, as appropriate, if the aver-
age adjusted gross income (or comparable meas-
ure over the 3 taxable years preceding the most 
immediately preceding complete taxable year, as 
determined by the Secretary) of the person or 
legal entity exceeds $750,000. 
‘‘(B) COVERED
BENEFITS.—Subparagraph 
(A) applies with respect to the following: 
‘‘(i) A payment under section 1107 or 
1108 of the Agriculture Reform, Food, and 
Jobs Act of 2013. 
‘‘(ii) A marketing loan gain or loan 
deficiency payment under subtitle B of title 
I of the Agriculture Reform, Food, and Jobs 
Act of 2013. 
‘‘(iii) A payment under subtitle E of 
the Agriculture Reform, Food, and Jobs Act 
of 2013.’’. 
‘‘(iv) A payment under section 196 of 
the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333).’’.
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(b) APPLICATION.—The amendments made by this sec-
tion shall apply beginning with the 2014 crop year. 
SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
Section 1621(d) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8792(d)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES. 
Section 164 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7284) is amended by 
striking ‘‘and title I of the Food, Conservation, and Energy 
Act of 2008’’ each place it appears and inserting ‘‘title I 
of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8702 et seq.), and title I of the Agriculture Reform, 
Food, and Jobs Act of 2013’’. 
SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RE-
CEIVING 
PAYMENTS 
UNDER 
FARM 
COM-
MODITY PROGRAMS. 
(a) RECONCILIATION.—At least twice each year, the 
Secretary shall reconcile social security numbers of all indi-
viduals who receive payments under this title, whether di-
rectly or indirectly, with the Commissioner of Social Secu-
rity to determine if the individuals are alive.
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(b) PRECLUSION.—The Secretary shall preclude the 
issuance of payments to, and on behalf of, deceased individ-
uals that were not eligible for payments. 
SEC. 1609. APPEALS. 
(a) DIRECTION, CONTROL, AND SUPPORT.—Section 
272 of the Department of Agriculture Reorganization Act 
of 1994 (7 U.S.C. 6992) is amended by striking subsection 
(c) and inserting the following: 
‘‘(c) DIRECTION, CONTROL, AND SUPPORT.— 
‘‘(1) DIRECTION AND CONTROL.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (2), the Director shall be free from the 
direction and control of any person other than 
the Secretary or the Deputy Secretary of Agri-
culture. 
‘‘(B) ADMINISTRATIVE SUPPORT.—The Di-
vision shall not receive administrative support 
(except on a reimbursable basis) from any agen-
cy other than the Office of the Secretary. 
‘‘(C) PROHIBITION
ON
DELEGATION.—The 
Secretary may not delegate to any other officer 
or employee of the Department, other than the 
Deputy Secretary of Agriculture or the Director, 
the authority of the Secretary with respect to the 
Division.
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‘‘(2) EXCEPTION.—The Assistant Secretary for 
Administration is authorized to investigate, enforce, 
and implement the provisions in law, Executive 
order, or regulations that relate in general to competi-
tive and excepted service positions and employment 
within the Division, including the position of Direc-
tor, and such authority may be further delegated to 
subordinate officials.’’. 
(b) CONFORMING AMENDMENT.—Section 296(b) of the 
Department of Agriculture Reorganization Act of 1994 (7 
U.S.C. 7014(b)) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘affect—’’ and inserting ‘‘affect:’’; 
(2) by striking ‘‘the authority’’ each place it ap-
pears in paragraphs (1) through (7) and inserting 
‘‘The authority’’; 
(3) by striking the semicolon at the end of each 
of paragraphs (1) through (5) and inserting a period; 
(4) in paragraph (6)(C), by striking ‘‘; or’’ at 
the end and inserting a period; and 
(5) by adding at the end the following: 
‘‘(8) The authority of the Secretary to carry out 
amendments made by the Agriculture Reform, Food, 
and Jobs Act of 2013.’’.
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SEC. 1610. TECHNICAL CORRECTIONS. 
(a) Section 359f(c)(1)(B) of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by 
adding a period at the end. 
(b)(1) Section 1603(g) of the Food, Conservation, and 
Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) 
is amended in paragraphs (2) through (6) and the amend-
ments made by those paragraphs by striking ‘‘1703(a)’’ 
each place it appears and inserting ‘‘1603(a)’’. 
(2) This subsection and the amendments made by this 
subsection take effect as if included in the Food, Conserva-
tion, and Energy Act of 2008 (Public Law 110–246; 122 
Stat. 1651). 
SEC. 1611. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)), relating to assignment of payments, shall apply 
to payments made under this title. 
(b) NOTICE.—The producer making the assignment, or 
the assignee, shall provide the Secretary with notice, in such 
manner as the Secretary may require, of any assignment 
made under this section. 
SEC. 1612. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment of 
this Act, the Secretary may track the benefits provided, di-
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rectly or indirectly, to individuals and entities under titles 
I and II and the amendments made by those titles. 
SEC. 1613. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title 
II and amendments made by those titles, if the Secretary 
approves a document, the Secretary shall not subsequently 
determine the document is inadequate or invalid because 
of the lack of authority of any person signing the document 
on behalf of the applicant or any other individual, entity, 
general partnership, or joint venture, or the documents re-
lied upon were determined inadequate or invalid, unless the 
person signing the program document knowingly and will-
fully falsified the evidence of signature authority or a signa-
ture. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to af-
firm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO RETROACTIVE EFFECT.—A denial of bene-
fits based on a lack of affirmation under paragraph 
(1) shall not be retroactive with respect to third-party 
producers who were not the subject of the erroneous 
representation of authority, if the third-party pro-
ducers—
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(A) relied on the prior approval by the Sec-
retary of the documents in good faith; and 
(B) substantively complied with all pro-
gram requirements. 
SEC. 1614. IMPLEMENTATION. 
(a) STREAMLINING.—In implementing this title, the 
Secretary shall, to the maximum extent practicable— 
(1) seek to reduce administrative burdens and 
costs to producers by streamlining and reducing pa-
perwork, forms, and other administrative require-
ments; 
(2) improve coordination, information sharing, 
and administrative work with the Risk Management 
Agency and the Natural Resources Conservation Serv-
ice; and 
(3) take advantage of new technologies to en-
hance efficiency and effectiveness of program delivery 
to producers. 
(b) IMPLEMENTATION.—On October 1, 2013, the Sec-
retary shall make available to the Farm Service Agency to 
carry out this title $97,000,000.
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TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 
OF CONSERVATION RESERVE PROGRAM. 
(a) EXTENSION.—Section 1231(a) of the Food Security 
Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(b) ELIGIBLE LAND.—Section 1231(b) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘the date of 
enactment of the Food, Conservation, and Energy Act 
of 2008’’ and inserting ‘‘the date of enactment of the 
Agriculture Reform, Food, and Jobs Act of 2013’’; 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2); 
(3) by inserting before paragraph (4) the fol-
lowing: 
‘‘(3) grassland that— 
‘‘(A) contains forbs or shrubland (including 
improved rangeland and pastureland) for which 
grazing is the predominant use; 
‘‘(B) is located in an area historically 
dominated by grassland; and
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‘‘(C) could provide habitat for animal and 
plant populations of significant ecological value 
if the land is retained in its current use or re-
stored to a natural condition;’’; 
(4) in paragraph (4)(C), by striking ‘‘filterstrips 
devoted to trees or shrubs’’ and inserting ‘‘filterstrips 
and riparian buffers devoted to trees, shrubs, or 
grasses’’; and 
(5) by striking paragraph (5) and inserting the 
following: 
‘‘(5) the portion of land in a field not enrolled 
in the conservation reserve in a case in which— 
‘‘(A) more than 50 percent of the land in 
the field is enrolled as a buffer or filterstrip or 
more than 75 percent of the land in the field is 
enrolled in a practice other than as a buffer or 
filterstrip; and 
‘‘(B) the remainder of the field is— 
‘‘(i) infeasible to farm; and 
‘‘(ii) enrolled at regular rental rates.’’. 
(c) PLANTING STATUS OF CERTAIN LAND.—Section 
1231(c) of the Food Security Act of 1985 (16 U.S.C. 
3831(c)) is amended by striking ‘‘if’’ and all that follows 
through the period at the end and inserting ‘‘if, during the 
crop year, the land was devoted to a conserving use.’’.
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(d) ENROLLMENT.—Section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended by striking sub-
section (d) and inserting the following: 
‘‘(d) ENROLLMENT.— 
‘‘(1) MAXIMUM ACREAGE ENROLLED.—The Sec-
retary may maintain in the conservation reserve at 
any 1 time during— 
‘‘(A) fiscal year 2014, no more than 
30,000,000 acres; 
‘‘(B) fiscal year 2015, no more than 
27,500,000 acres; 
‘‘(C) fiscal year 2016, no more than 
26,500,000 acres; 
‘‘(D) fiscal year 2017, no more than 
25,500,000 acres; and 
‘‘(E) fiscal year 2018, no more than 
25,000,000 acres. 
‘‘(2) GRASSLAND.— 
‘‘(A) LIMITATION.—For purposes of apply-
ing the limitations in paragraph (1), no more 
than 1,500,000 acres of the land described in 
subsection (b)(3) may be enrolled in the program 
at any 1 time during the 2014 through 2018 fis-
cal years.
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‘‘(B) PRIORITY.—In enrolling acres under 
subparagraph (A), the Secretary may give pri-
ority to land with expiring conservation reserve 
program contracts. 
‘‘(C) METHOD OF ENROLLMENT.—In enroll-
ing acres under subparagraph (A), the Secretary 
shall make the program available to owners or 
operators of eligible land at least once during 
each fiscal year.’’. 
(e) DURATION OF CONTRACT.—Section 1231(e) of the 
Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended 
by striking paragraphs (2) and (3) and inserting the fol-
lowing: 
‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In the 
case of land devoted to hardwood trees, shelterbelts, 
windbreaks, or wildlife corridors under a contract en-
tered into under this subchapter, the owner or oper-
ator of the land may, within the limitations pre-
scribed under this section, specify the duration of the 
contract.’’. 
(f) CONSERVATION PRIORITY AREAS.—Section 1231(f) 
of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is 
amended—
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(1) in paragraph (1), by striking ‘‘watershed 
areas of the Chesapeake Bay Region, the Great Lakes 
Region, the Long Island Sound Region, and other’’; 
(2) in paragraph (2), by striking ‘‘WATER-
SHEDS.—Watersheds’’ 
and 
inserting 
‘‘AREAS.— 
Areas’’; and 
(3) in paragraph (3), by striking ‘‘a watershed’s 
designation—’’ and all that follows through the pe-
riod at the end and inserting ‘‘an area’s designation 
if the Secretary finds that the area no longer contains 
actual and significant adverse water quality or habi-
tat impacts related to agricultural production activi-
ties.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’. 
(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 
the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) 
is amended by striking ‘‘flow from a row crop agriculture 
drainage system’’ and inserting ‘‘surface and subsurface 
flow from row crop agricultural production’’.
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(c) CLERICAL AMENDMENTS.—Section 1231B of the 
Food Security Act of 1985 (16 U.S.C. 3831b) is amended— 
(1) by striking the heading and inserting the fol-
lowing: 
‘‘SEC. 1231B. FARMABLE WETLAND PROGRAM.’’; 
and 
(2) in subsection (f)(2), by striking ‘‘section 
1234(c)(2)(B)’’ 
and 
inserting 
‘‘section 
1234(c)(2)(A)(ii)’’. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
(a) LIMITATION ON HARVESTING, GRAZING OR COM-
MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)(8)) is amended 
by striking ‘‘except that’’ and all that follows through the 
semicolon at the end of the paragraph and inserting ‘‘except 
as provided in section 1233(b);’’. 
(b) CONSERVATION PLAN REQUIREMENTS.—Section 
1232 of the Food Security Act of 1985 (16 U.S.C. 3832) 
is amended by striking subsection (b) and inserting the fol-
lowing: 
‘‘(b) CONSERVATION PLANS.—The plan referred to in 
subsection (a)(1) shall set forth— 
‘‘(1) the conservation measures and practices to 
be carried out by the owner or operator during the 
term of the contract; and
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‘‘(2) the commercial use, if any, to be permitted 
on the land during the term.’’. 
(c) RENTAL PAYMENT REDUCTION.—Section 1232 of 
the Food Security Act of 1985 (16 U.S.C. 3832) is amended 
by striking subsection (d). 
SEC. 2004. DUTIES OF THE SECRETARY. 
Section 1233 of the Food Security Act of 1985 (16 
U.S.C. 3833) is amended to read as follows: 
‘‘SEC. 1233. DUTIES OF THE SECRETARY. 
‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re-
turn for a contract entered into by an owner or operator, 
the Secretary shall— 
‘‘(1) share the cost of carrying out the conserva-
tion measures and practices set forth in the contract 
for which the Secretary determines that cost sharing 
is appropriate and in the public interest; and 
‘‘(2) for a period of years not in excess of the 
term of the contract, pay an annual rental payment 
in an amount necessary to compensate for— 
‘‘(A) the conversion of highly erodible crop-
land or other eligible land normally devoted to 
the production of an agricultural commodity on 
a farm or ranch to a less intensive use;
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‘‘(B) the retirement of any cropland base 
and allotment history that the owner or operator 
agrees to retire permanently; and 
‘‘(C) the development and management of 
grassland for multiple natural resource conserva-
tion benefits, including soil, water, air, and 
wildlife. 
‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec-
retary shall permit certain activities or commercial uses of 
land that is subject to the contract if those activities or uses 
are consistent with a plan approved by the Secretary and 
include— 
‘‘(1) harvesting, grazing, or other commercial use 
of the forage in response to drought, flooding, or other 
emergency without any reduction in the rental rate; 
‘‘(2) grazing by livestock of a beginning farmer 
or rancher without any reduction in the rental rate, 
if the grazing is— 
‘‘(A) consistent with the conservation of soil, 
water quality, and wildlife habitat (including 
habitat during the primary nesting season for 
critical birds in the area); and 
‘‘(B) described in subparagraph (B) or (C) 
of paragraph (3);
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‘‘(3) consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during the primary nesting season for critical birds 
in the area) and in exchange for a reduction of not 
less than 25 percent in the annual rental rate for the 
acres covered by the authorized activity— 
‘‘(A) managed harvesting and other com-
mercial use (including the managed harvesting 
of biomass), except that in permitting those ac-
tivities the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
‘‘(ii) shall identify periods during 
which the activities may be conducted, such 
that the frequency is at least once every 5 
years but not more than once every 3 years; 
‘‘(B) prescribed grazing for the control of 
invasive species, which may be conducted annu-
ally; 
‘‘(C) routine grazing, except that in permit-
ting routine grazing, the Secretary, in coordina-
tion with the State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stocking
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rates for the land that are suitable for con-
tinued routine grazing; and 
‘‘(ii) shall identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
once every 2 years, taking into consider-
ation regional differences such as— 
‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(D) the installation of wind turbines and 
associated access, except that in permitting the 
installation of wind turbines, the Secretary shall 
determine the number and location of wind tur-
bines that may be installed, taking into ac-
count— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land;
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‘‘(ii) the extent to which the land con-
tains threatened or endangered wildlife and 
wildlife habitat; and 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter; and 
‘‘(4) the intermittent and seasonal use of vegeta-
tive buffer practices incidental to agricultural produc-
tion on land adjacent to the buffer such that the per-
mitted use does not destroy the permanent vegetative 
cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLAND.—Not-
withstanding section 1232(a)(8), for eligible land described 
in section 1231(b)(3), the Secretary shall permit the fol-
lowing activities: 
‘‘(1) Common grazing practices, including main-
tenance and necessary cultural practices, on the land 
in a manner that is consistent with maintaining the 
viability of grassland, forb, and shrub species appro-
priate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions during 
the primary nesting season for critical birds in the 
area. 
‘‘(3) Fire presuppression, rehabilitation, and 
construction of fire breaks.
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‘‘(4) Grazing-related activities, such as fencing 
and livestock watering. 
‘‘(d) RESOURCE CONSERVING USE.— 
‘‘(1) IN GENERAL.—Beginning on the date that 
is 1 year before the date of termination of a contract 
under the program, the Secretary shall allow an 
owner or operator to make conservation and land im-
provements that facilitate maintaining protection of 
highly erodible land after expiration of the contract. 
‘‘(2) CONSERVATION PLAN.—The Secretary shall 
require an owner or operator carrying out the activi-
ties described in paragraph (1) to develop and imple-
ment a conservation plan. 
‘‘(3) REENROLLMENT
PROHIBITED.—Land al-
tered under paragraph (1) may not be reenrolled in 
the conservation reserve program for 5 years. 
‘‘(4) PAYMENT.—The Secretary shall provide an 
annual payment that is reduced in an amount com-
mensurate with any income or other compensation re-
ceived as a result of the activities carried out under 
paragraph (1).’’. 
SEC. 2005. PAYMENTS. 
(a) TREES, WINDBREAKS, SHELTERBELTS, AND WILD-
LIFE CORRIDORS.—Section 1234(b)(3)(A) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended—
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(1) in clause (i), by inserting ‘‘and’’ after the 
semicolon; 
(2) by striking clause (ii); and 
(3) by redesignating clause (iii) as clause (ii). 
(b) INCENTIVES.—Section 1234(b)(3)(B) of the Food 
Security Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amend-
ed— 
(1) in clause (i), by inserting ‘‘, practices to im-
prove the condition of resources on the land,’’ after 
‘‘operator)’’; and 
(2) by adding at the end the following: 
‘‘(iii) INCENTIVES.—In making rental 
payments to an owner or operator of land 
described in subparagraph (A), the Sec-
retary may provide incentive payments suf-
ficient to encourage proper thinning and 
practices to improve the condition of re-
sources on the land.’’. 
(c) ANNUAL RENTAL PAYMENTS.—Section 1234(c) of 
the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended— 
(1) in paragraph (1), by inserting ‘‘and other el-
igible land’’ after ‘‘highly erodible cropland’’ both 
places it appears;
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(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) METHODS OF DETERMINATION.— 
‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental pay-
ments under contracts entered into under this 
subchapter may be determined through— 
‘‘(i) the submission of bids for such 
contracts by owners and operators in such 
manner as the Secretary may prescribe; or 
‘‘(ii) such other means as the Secretary 
determines are appropriate. 
‘‘(B) GRASSLAND.—In the case of eligible 
land described in section 1231(b)(3), the Sec-
retary shall make annual payments in an 
amount that is not more than 75 percent of the 
grazing value of the land covered by the con-
tract.’’; and 
(3) in paragraph (5)(A)— 
(A) by striking ‘‘The Secretary’’ and insert-
ing the following: 
‘‘(i) SURVEY.—The Secretary’’; and 
(B) by adding at the end the following: 
‘‘(ii) USE.—The Secretary may use the 
survey of dryland cash rental rates de-
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scribed in clause (i) as a factor in deter-
mining rental rates under this section as 
the Secretary determines appropriate.’’. 
(d) PAYMENT SCHEDULE.—Section 1234 of the Food 
Security Act of 1985 (16 U.S.C. 3834) is amended by strik-
ing subsection (d) and inserting the following: 
‘‘(d) PAYMENT SCHEDULE.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this section, payments under this subchapter shall 
be made in cash in such amount and on such time 
schedule as is agreed on and specified in the contract. 
‘‘(2) SOURCE.—Payments under this subchapter 
shall be made using the funds of the Commodity Cred-
it Corporation. 
‘‘(3) ADVANCE PAYMENT.—Payments under this 
subchapter may be made in advance of determination 
of performance.’’. 
(e) PAYMENT LIMITATION.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘, including 
rental payments made in the form of in-kind com-
modities,’’; 
(2) by striking paragraph (3); and
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(3) by redesignating paragraph (4) as para-
graph (2). 
SEC. 2006. CONTRACT REQUIREMENTS. 
Section 1235 of the Food Security Act of 1985 (16 
U.S.C. 3835) is amended— 
(1) in subsection (f)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘DUTIES’’ and all 
that follows through ‘‘a beginning farmer or 
rancher or’’ and inserting ‘‘TRANSITION TO 
COVERED
FARMER
OR
RANCHER.—In the 
case of a contract modification approved in 
order to facilitate the transfer of land sub-
ject to a contract from a retired farmer or 
rancher to a beginning farmer or rancher, 
a veteran farmer or rancher (as defined in 
section 2501(e) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 
U.S.C. 2279(e))), or a’’; 
(ii) in subparagraph (D), by striking 
‘‘the farmer or rancher’’ and inserting ‘‘the 
covered farmer or rancher’’; and
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(iii) in subparagraph (E), by striking 
‘‘section 1001A(b)(3)(B)’’ and inserting 
‘‘section 1001’’; and 
(B) in paragraph (2), by striking ‘‘require-
ment of section 1231(h)(4)(B)’’ and inserting 
‘‘option 
provided 
under 
section 
1234(c)(2)(A)(ii)’’; and 
(2) by adding at the end the following: 
‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary shall 
not consider an owner or operator to be in violation of a 
term or condition of a conservation reserve contract if— 
‘‘(1) during the year prior to expiration of the 
contract, the land is enrolled in the conservation stew-
ardship program; and 
‘‘(2) the activity required under the conservation 
stewardship program pursuant to the enrollment is 
consistent with this subchapter. 
‘‘(h) LAND ENROLLED IN AGRICULTURAL CONSERVA-
TION EASEMENT PROGRAM.—The Secretary may terminate 
or modify a contract entered into under this subchapter if 
eligible land that is subject to such contract is transferred 
into the agricultural conservation easement program under 
subtitle H.’’.
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SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is repealed. 
SEC. 2008. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this sub-
title shall take effect on October 1, 2013, except, the amend-
ment made by section 2001(d), which shall take effect on 
the date of enactment of this Act. 
(b) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subtitle shall 
not affect the validity or terms of any contract en-
tered into by the Secretary of Agriculture under sub-
chapter B of chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
before October 1, 2013, or any payments required to 
be made in connection with the contract. 
(2) UPDATING
OF
EXISTING
CONTRACTS.—The 
Secretary shall permit an owner or operator with a 
contract entered into under subchapter B of chapter 
1 of subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3831 et seq.) before October 1, 
2013, to update the contract to reflect the activities 
and uses of land under contract permitted under the 
terms and conditions of paragraphs (1) and (2) of
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section 1233(b) of that Act (as amended by section 
2004). 
Subtitle B—Conservation 
Stewardship Program 
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 
(a) REVISION OF CURRENT PROGRAM.—Subchapter B 
of chapter 2 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3838d et seq.) is amended to read 
as follows: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL OPERATION.—The term ‘ag-
ricultural operation’ means all eligible land, whether 
or not contiguous, that is— 
‘‘(A) under the effective control of a pro-
ducer at the time the producer enters into a con-
tract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation practices 
that are substantially separate from other agri-
cultural operations, as determined by the Sec-
retary. 
‘‘(2) CONSERVATION ACTIVITIES.—
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‘‘(A) IN GENERAL.—The term ‘conservation 
activities’ means conservation systems, practices, 
or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conservation 
activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage management 
systems, as determined by the Secretary; 
and 
‘‘(ii) planning needed to address a pri-
ority resource concern. 
‘‘(3) CONSERVATION STEWARDSHIP PLAN.—The 
term ‘conservation stewardship plan’ means a plan 
that— 
‘‘(A) identifies and inventories priority re-
source concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation activi-
ties.
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‘‘(4) ELIGIBLE LAND.— 
‘‘(A) IN GENERAL.—The term ‘eligible land’ 
means— 
‘‘(i) private and tribal land on which 
agricultural commodities, livestock, or for-
est-related products are produced; and 
‘‘(ii) land associated with the land de-
scribed in clause (i) on which priority re-
source concerns could be addressed through 
a contract under the program. 
‘‘(B) INCLUSIONS.—The term ‘eligible land’ 
includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pastureland; 
‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural land (includ-
ing cropped woodland, marshes, and agri-
cultural land used for the production of 
livestock), as determined by the Secretary. 
‘‘(5) PRIORITY RESOURCE CONCERN.—The term 
‘priority resource concern’ means a natural resource
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concern or problem, as determined by the Secretary, 
that— 
‘‘(A) is identified at the national, State or 
local level, as a priority for a particular area of 
the State; 
‘‘(B) represents a significant concern in a 
State or region; and 
‘‘(C) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities under this program. 
‘‘(6) PROGRAM.—The term ‘program’ means the 
conservation stewardship program established by this 
subchapter. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of manage-
ment required, as determined by the Secretary, to 
conserve and improve the quality and condition of a 
natural resource. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of 
fiscal years 2014 through 2018, the Secretary shall carry 
out a conservation stewardship program to encourage pro-
ducers to address priority resource concerns and improve 
and conserve the quality and condition of natural resources 
in a comprehensive manner—
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‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining, and managing 
existing conservation activities. 
‘‘(b) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVATION 
PROGRAMS.—Subject to paragraph (2), the following 
land (even if covered by the definition of eligible land) 
is not eligible for enrollment in the program: 
‘‘(A) Land enrolled in the conservation re-
serve program, unless— 
‘‘(i) the conservation reserve contract 
will expire at the end of the fiscal year in 
which the land is to be enrolled in the pro-
gram; and 
‘‘(ii) conservation reserve program 
payments for land enrolled in the program 
cease prior to the date on which the first 
program payment is made to the applicant 
under this subchapter. 
‘‘(B) Land enrolled in the agricultural con-
servation easement program in a wetland reserve 
easement. 
‘‘(C) Land enrolled in the conservation se-
curity program.
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‘‘(2) CONVERSION TO CROPLAND.—Eligible land 
used for crop production after October 1, 2013, that 
had not been planted, considered to be planted, or de-
voted to crop production for at least 4 of the 6 years 
preceding that date shall not be the basis for any pay-
ment under the program, unless the land does not 
meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as deter-
mined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligi-
ble to participate in the conservation stewardship program, 
a producer shall submit a contract offer for the agricultural 
operation that— 
‘‘(1) demonstrates to the satisfaction of the Sec-
retary that the producer, at the time of the contract 
offer, is meeting the stewardship threshold for at least 
2 priority resource concerns; and
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‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 additional pri-
ority resource concern by the end of the stewardship 
contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging existing conservation activities on the ag-
ricultural operation in a manner that increases 
or extends the conservation benefits in place at 
the time the contract offer is accepted by the Sec-
retary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING OF APPLICATIONS.—In evaluating 
contract offers the Secretary shall rank applications 
based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application; 
‘‘(B) the degree to which the proposed con-
servation activities effectively increase conserva-
tion performance; 
‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet or
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† HR 2642 EAS 
exceed the stewardship threshold by the end of the 
contract; 
‘‘(D) the extent to which other priority re-
source concerns will be addressed to meet or ex-
ceed the stewardship threshold by the end of the 
contract period; 
‘‘(E) the extent to which the actual and an-
ticipated conservation benefits from the contract 
are provided at the least cost relative to other 
similarly beneficial contract offers; and 
‘‘(F) the extent to which priority resource 
concerns will be addressed when transitioning 
from the conservation reserve program to agri-
cultural production. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL CRITERIA.—The Secretary may 
develop and use such additional criteria that the Sec-
retary determines are necessary to ensure that na-
tional, State, and local priority resource concerns are 
effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a determina-
tion that a producer is eligible for the program under sub-
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† HR 2642 EAS 
section (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conservation 
stewardship contract with the producer to enroll the eligible 
land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) REQUIRED PROVISIONS.—The conservation 
stewardship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for each 
year of the conservation stewardship contract 
under section 1238G(d); 
‘‘(B) require the producer— 
‘‘(i) to implement a conservation stew-
ardship plan that describes the program 
purposes to be achieved through 1 or more 
conservation activities; 
‘‘(ii) to maintain and supply informa-
tion as required by the Secretary to deter-
mine compliance with the conservation 
stewardship plan and any other require-
ments of the program; and
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† HR 2642 EAS 
‘‘(iii) not to conduct any activities on 
the agricultural operation that would tend 
to defeat the purposes of the program; 
‘‘(C) permit all economic uses of the eligible 
land that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control of 
the producer, including a disaster or related con-
dition, as determined by the Secretary; 
‘‘(E) include provisions where upon the vio-
lation of a term or condition of the contract at 
any time the producer has control of the land— 
‘‘(i) if the Secretary determines that 
the violation warrants termination of the 
contract— 
‘‘(I) to forfeit all rights to receive 
payments under the contract; and
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† HR 2642 EAS 
‘‘(II) to refund all or a portion of 
the payments received by the producer 
under the contract, including any in-
terest on the payments, as determined 
by the Secretary; or 
‘‘(ii) if the Secretary determines that 
the violation does not warrant termination 
of the contract, to refund or accept adjust-
ments to the payments provided to the pro-
ducer, as the Secretary determines to be ap-
propriate; 
‘‘(F) include provisions in accordance with 
paragraphs (3) and (4) of this section; and 
‘‘(G) include any additional provisions the 
Secretary determines are necessary to carry out 
the program. 
‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT TO 
A CONTRACT.— 
‘‘(A) IN GENERAL.—At the time of applica-
tion, a producer shall have control of the eligible 
land to be enrolled in the program. Except as 
provided in subparagraph (B), a change in the 
interest of a producer in eligible land covered by 
a contract under the program shall result in the
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† HR 2642 EAS 
termination of the contract with regard to that 
land. 
‘‘(B) TRANSFER OF DUTIES AND RIGHTS.— 
Subparagraph (A) shall not apply if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in all or 
a portion of the land covered by a contract 
under the program, the transferee of the 
land provides written notice to the Sec-
retary that duties and rights under the con-
tract have been transferred to, and assumed 
by, the transferee for the portion of the land 
transferred; 
‘‘(ii) the transferee meets the eligibility 
requirements of the program; and 
‘‘(iii) the Secretary approves the trans-
fer of all duties and rights under the con-
tract. 
‘‘(4) MODIFICATION AND TERMINATION OF CON-
TRACTS.— 
‘‘(A) VOLUNTARY MODIFICATION OR TERMI-
NATION.—The Secretary may modify or termi-
nate a contract with a producer if—
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† HR 2642 EAS 
‘‘(i) the producer agrees to the modi-
fication or termination; and 
‘‘(ii) the Secretary determines that the 
modification or termination is in the public 
interest. 
‘‘(B) 
INVOLUNTARY
TERMINATION.—The 
Secretary may terminate a contract if the Sec-
retary determines that the producer violated the 
contract. 
‘‘(5) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of the 
program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments received and assess liquidated 
damages. 
‘‘(e) CONTRACT RENEWAL.—At the end of the initial 
5-year contract period, the Secretary may allow the pro-
ducer to renew the contract for 1 additional 5-year period 
if the producer— 
‘‘(1) demonstrates compliance with the terms of 
the existing contract;
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† HR 2642 EAS 
‘‘(2) agrees to adopt and continue to integrate 
conservation activities across the entire agricultural 
operation as determined by the Secretary; and 
‘‘(3) agrees, at a minimum, to meet or exceed the 
stewardship threshold for at least 2 additional pri-
ority resource concerns on the agricultural operation 
by the end of the contract period. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation goals 
of a contract under the conservation stewardship program, 
the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, 1 of which shall occur in the 
first quarter of each fiscal year; 
‘‘(2) identify not less than 5 priority resource 
concerns in a particular watershed or other appro-
priate region or area within a State; and 
‘‘(3) establish a science-based stewardship thresh-
old for each priority resource concern identified under 
paragraph (2). 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall al-
locate acres to States for enrollment, based—
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‘‘(1) primarily on each State’s proportion of eli-
gible land to the total acreage of eligible land in all 
States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural pro-
duction in each State; 
‘‘(B) the degree to which implementation of 
the program in the State is, or will be, effective 
in helping producers address those needs; and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2013, and ending on 
September 30, 2022, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
10,348,000 acres for each fiscal year; and 
‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses associated with enrollment or 
participation in the program. 
‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.—
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‘‘(1) AVAILABILITY
OF
PAYMENTS.—The Sec-
retary shall provide annual payments under the pro-
gram to compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the op-
eration of the producer at the time the contract 
offer is accepted by the Secretary. 
‘‘(2) PAYMENT
AMOUNT.—The amount of the 
conservation stewardship annual payment shall be de-
termined by the Secretary and based, to the max-
imum extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer associ-
ated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected conservation benefits. 
‘‘(D) The extent to which priority resource 
concerns will be addressed through the installa-
tion and adoption of conservation activities on 
the agricultural operation.
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‘‘(E) The level of stewardship in place at 
the time of application and maintained over the 
term of the contract. 
‘‘(F) The degree to which the conservation 
activities will be integrated across the entire ag-
ricultural operation for all applicable priority 
resource concerns over the term of the contract. 
‘‘(G) Such other factors as determined by 
the Secretary. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the pro-
ducer. 
‘‘(4) DELIVERY OF PAYMENTS.—In making stew-
ardship payments, the Secretary shall, to the extent 
practicable— 
‘‘(A) prorate conservation performance over 
the term of the contract so as to accommodate, 
to the extent practicable, producers earning equal
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annual stewardship payments in each fiscal 
year; and 
‘‘(B) make stewardship payments as soon as 
practicable after October 1 of each fiscal year for 
activities carried out in the previous fiscal year. 
‘‘(e) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CON-
SERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY
OF
PAYMENTS.—The Sec-
retary shall provide additional payments to producers 
that, in participating in the program, agree to adopt 
resource-conserving crop rotations to achieve bene-
ficial crop rotations as appropriate for the eligible 
land of the producers. 
‘‘(2) BENEFICIAL
CROP
ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1), based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer shall 
agree to adopt and maintain the resource-conserving 
crop rotations for the term of the contract.
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‘‘(4) RESOURCE-CONSERVING CROP ROTATION.— 
In this subsection, the term ‘resource-conserving crop 
rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource conserving 
crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need for 
irrigation. 
‘‘(f) PAYMENT LIMITATIONS.—A person or legal entity 
may not receive, directly or indirectly, payments under the 
program that, in the aggregate, exceed $200,000 under all 
contracts entered into during fiscal years 2014 through 
2018, excluding funding arrangements with Indian tribes, 
regardless of the number of contracts entered into under the 
program by the person or legal entity. 
‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(h) 
COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent
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means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.) while participating in a contract under 
the program. 
‘‘(i) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (f); and 
‘‘(2) otherwise enable the Secretary to carry out 
the program.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2013. 
(c) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—The amendment made by this 
section shall not affect the validity or terms of any 
contract entered into by the Secretary of Agriculture 
under subchapter B of chapter 2 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 
3838d et seq.) before October 1, 2013, or any pay-
ments required to be made in connection with the 
contract. 
(2) CONSERVATION
STEWARDSHIP
PROGRAM.— 
Funds made available under section 1241(a)(4) of the
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Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) (as 
amended by section 2601(a)) may be used to admin-
ister and make payments to program participants en-
rolled into contracts during any of fiscal years 2009 
through 2013. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 2201. PURPOSES. 
Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and, in such subparagraph, by 
inserting ‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (A) the 
following: 
‘‘(B) develop and improve wildlife habitat; 
and’’; 
(2) in paragraph (4), by striking ‘‘; and’’ and 
inserting a period; and 
(3) by striking paragraph (5).
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SEC. 2202. DEFINITIONS. 
Section 1240A of the Food Security Act of 1985 (16 
U.S.C. 3839aa–1) is amended— 
(1) by striking paragraph (2) and redesignating 
paragraphs (3) through (6) as paragraphs (2) 
through (5), respectively; and 
(2) in paragraph (2) (as so redesignated), by in-
serting ‘‘established under the Organic Foods Produc-
tion Act of 1990 (7 U.S.C. 6501 et seq.)’’ after ‘‘na-
tional organic program’’. 
SEC. 2203. ESTABLISHMENT AND ADMINISTRATION. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and in-
serting ‘‘2018’’; 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following: 
‘‘(2) TERM.—A contract under the program shall 
have a term that does not exceed 10 years.’’; 
(3) in subsection (d)— 
(A) in paragraph (3), by striking subpara-
graphs (A) through (G) and inserting the fol-
lowing: 
‘‘(A) soil health; 
‘‘(B) water quality and quantity improve-
ment;
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‘‘(C) nutrient management; 
‘‘(D) pest management; 
‘‘(E) air quality improvement; 
‘‘(F) wildlife habitat development, including 
pollinator habitat; 
‘‘(G) invasive species management; or 
‘‘(H) other resource issues of regional or na-
tional significance, as determined by the Sec-
retary.’’; and 
(B) in paragraph (4)— 
(i) in subparagraph (A) in the matter 
preceding clause (i), by inserting ‘‘, veteran 
farmer or rancher (as defined in section 
2501(e) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 
2279(e))),’’ before ‘‘or a beginning farmer or 
rancher’’; and 
(ii) by striking subparagraph (B) and 
inserting the following: 
‘‘(B) ADVANCE PAYMENTS.— 
‘‘(i) IN GENERAL.—Not more than 30 
percent of the amount determined under 
subparagraph (A) may be provided in ad-
vance for the purpose of purchasing mate-
rials or contracting.
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‘‘(ii) RETURN
OF
FUNDS.—If funds 
provided in advance are not expended dur-
ing the 90-day period beginning on the date 
of receipt of the funds, the funds shall be re-
turned within a reasonable time frame, as 
determined by the Secretary.’’; 
(4) by striking subsection (f) and inserting the 
following: 
‘‘(f) ALLOCATION OF FUNDING.— 
‘‘(1) LIVESTOCK.—For each of fiscal years 2014 
through 2018, at least 60 percent of the funds made 
available for payments under the program shall be 
targeted at practices relating to livestock production. 
‘‘(2) WILDLIFE
HABITAT.—For each of fiscal 
years 2014 through 2018, at least 5 percent of the 
funds made available for payments under the pro-
gram shall be targeted at practices benefitting wildlife 
habitat under subsection (g).’’; and 
(5) by striking subsection (g) and inserting the 
following: 
‘‘(g) WILDLIFE HABITAT INCENTIVE PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
payments under the environmental quality incentives 
program for conservation practices that support the
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restoration, development, and improvement of wildlife 
habitat on eligible land, including— 
‘‘(A) upland wildlife habitat; 
‘‘(B) wetland wildlife habitat; 
‘‘(C) habitat for threatened and endangered 
species; 
‘‘(D) fish habitat; 
‘‘(E) habitat on pivot corners and other ir-
regular areas of a field; and 
‘‘(F) other types of wildlife habitat, as de-
termined by the Secretary. 
‘‘(2) STATE TECHNICAL COMMITTEE.—In deter-
mining the practices eligible for payment under para-
graph (1) and targeted for funding under subsection 
(f), the Secretary shall, at a minimum, consult with 
the relevant State technical committee once a year. 
‘‘(3) WAIVER.—Notwithstanding any other pro-
vision of this chapter, the Secretary may make pay-
ments to a State or local unit of government to enroll 
land that is riparian to, or submerged under, a water 
body or wetland if the Secretary determines that the 
inclusion of the land would support the restoration, 
development, and improvement of wildlife habitat.’’.
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SEC. 2204. EVALUATION OF APPLICATIONS. 
Section 1240C(b) of the Food Security Act of 1985 (16 
U.S.C. 3839aa–3(b)) is amended— 
(1) in paragraph (1), by striking ‘‘environ-
mental’’ and inserting ‘‘conservation’’; and 
(2) in paragraph (3), by striking ‘‘purpose of the 
environmental quality incentives program specified in 
section 1240(1)’’ and inserting ‘‘purposes of the pro-
gram’’. 
SEC. 2205. DUTIES OF PRODUCERS. 
Section 1240D(2) of the Food Security Act of 1985 (16 
U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, ranch, 
or forest’’ and inserting ‘‘enrolled’’. 
SEC. 2206. LIMITATION ON PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 
U.S.C. 3839aa–7) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘by the person or entity 
during any six-year period,’’ and inserting 
‘‘during fiscal years 2014 through 2018’’; and 
(B) by striking ‘‘federally recognized’’ and 
all that follows through the period and inserting 
‘‘Indian tribes under section 1244(l).’’; and 
(2) in subsection (b)(2), by striking ‘‘any six- 
year period’’ and inserting ‘‘fiscal years 2014 through 
2018’’.
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SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended— 
(1) in subsection (b)(2), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; and 
(2) by adding at the end the following: 
‘‘(c) REPORTING.—Not later than December 31, 2014, 
and every 2 years thereafter, the Secretary shall submit to 
the Committee on Agriculture, Nutrition, and Forestry of 
the Senate and the Committee on Agriculture of the House 
of Representatives a report on the status of projects funded 
under this section, including— 
‘‘(1) funding awarded; 
‘‘(2) project results; and 
‘‘(3) incorporation of project findings, such as 
new technology and innovative approaches, into the 
conservation efforts implemented by the Secretary.’’. 
SEC. 2208. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this sub-
title shall take effect on October 1, 2013. 
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ments made by this title shall not affect the validity or 
terms of any contract entered into by the Secretary of Agri-
culture under chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839aa et seq.) before Octo-
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† HR 2642 EAS 
ber 1, 2013, or any payments required to be made in con-
nection with the contract. 
Subtitle D—Agricultural 
Conservation Easement Program 
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PRO-
GRAM. 
(a) ESTABLISHMENT.—Title XII of the Food Security 
Act of 1985 is amended by adding at the end the following: 
‘‘Subtitle H—Agricultural 
Conservation Easement Program 
‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish 
an Agricultural Conservation Easement Program for the 
conservation of eligible land and natural resources through 
easements or other interests in land. 
‘‘(b) PURPOSES.—The purposes of the program are 
to— 
‘‘(1) combine the purposes and coordinate the 
functions of the wetlands reserve program established 
under section 1237, the grassland reserve program es-
tablished under section 1238N, and the farmland pro-
tection program established under section 1238I; 
‘‘(2) restore, protect, and enhance wetland on eli-
gible land;
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† HR 2642 EAS 
‘‘(3) protect the agricultural use, viability, and 
related conservation values of eligible land by lim-
iting nonagricultural uses of that land; and 
‘‘(4) protect grazing uses and related conserva-
tion values by restoring and conserving eligible land. 
‘‘SEC. 1265A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) AGRICULTURAL
LAND
EASEMENT.—The 
term ‘agricultural land easement’ means an easement 
or other interest in eligible land that— 
‘‘(A) is conveyed for the purposes of pro-
tecting natural resources and the agricultural 
nature of the land, and of promoting agricul-
tural viability for future generations; and 
‘‘(B) permits the landowner the right to 
continue agricultural production and related 
uses subject to an agricultural land easement 
plan. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) an agency of State or local government 
or an Indian tribe (including farmland protec-
tion board or land resource council established 
under State law); or 
‘‘(B) an organization that is—
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‘‘(i) organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in clause 
(i), (ii), (iii), or (iv) of section 170(h)(4)(A) 
of the Internal Revenue Code of 1986; 
‘‘(ii) an organization described in sec-
tion 501(c)(3) of that Code that is exempt 
from taxation under section 501(a) of that 
Code; or 
‘‘(iii) described in— 
‘‘(I) paragraph (1) or (2) of sec-
tion 509(a) of that Code; or 
‘‘(II) section 509(a)(3) of that 
Code and is controlled by an organiza-
tion described in section 509(a)(2) of 
that Code. 
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 
means private or tribal land that is— 
‘‘(A) in the case of an agricultural land 
easement, agricultural land, including land on a 
farm or ranch— 
‘‘(i) that is subject to a pending offer 
for purchase from an eligible entity; 
‘‘(ii) that—
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‘‘(I) has prime, unique, or other 
productive soil; 
‘‘(II) contains historical or ar-
chaeological resources; or 
‘‘(III) the protection of which 
could, consistent with the purposes of 
the program— 
‘‘(aa) further a State or local 
policy; or 
‘‘(bb) conserve grassland or 
agricultural landscapes of signifi-
cant ecological value; and 
‘‘(iii) that is— 
‘‘(I) cropland; 
‘‘(II) rangeland; 
‘‘(III) grassland or land that con-
tains forbs, or shrubland for which 
grazing is the predominant use; 
‘‘(IV) pastureland; or 
‘‘(V) nonindustrial private forest 
land that contributes to the economic 
viability of an offered parcel or serves 
as a buffer to protect such land from 
development;
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‘‘(B) in the case of a wetland reserve ease-
ment, a wetland or related area, including— 
‘‘(i) farmed or converted wetland, to-
gether with the adjacent land that is func-
tionally dependent on that land if the Sec-
retary determines it— 
‘‘(I) is likely to be successfully re-
stored in a cost effective manner; and 
‘‘(II) will maximize the wildlife 
benefits and wetland functions and 
values as determined by the Secretary 
in consultation with the Secretary of 
the Interior at the local level; 
‘‘(ii) cropland or grassland that was 
used for agricultural production prior to 
flooding from the natural overflow of a 
closed basin lake or pothole, as determined 
by the Secretary, together (where prac-
ticable) with the adjacent land that is func-
tionally dependent on the cropland or grass-
land; 
‘‘(iii) farmed wetland and adjoining 
land that— 
‘‘(I) is enrolled in the conserva-
tion reserve program;
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† HR 2642 EAS 
‘‘(II) has the highest wetland 
functions and values; and 
‘‘(III) is likely to return to pro-
duction after the land leaves the con-
servation reserve program; 
‘‘(iv) riparian areas that link wetland 
that is protected by easements or some other 
device that achieves the same purpose as an 
easement; or 
‘‘(v) other wetland of an owner that 
would not otherwise be eligible if the Sec-
retary determines that the inclusion of such 
wetland in such easement would signifi-
cantly add to the functional value of the 
easement; and 
‘‘(C) in the case of both an agricultural 
land easement or wetland reserve easement, other 
land that is incidental to eligible land if the Sec-
retary determines that it is necessary for the effi-
cient administration of the easements under this 
program. 
‘‘(4) PROGRAM.—The term ‘program’ means the 
Agricultural Conservation Easement Program estab-
lished by this subtitle.
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‘‘(5) WETLAND RESERVE EASEMENT.—The term 
‘wetland reserve easement’ means a reserved interest 
in eligible land that— 
‘‘(A) is defined and delineated in a deed; 
and 
‘‘(B) stipulates— 
‘‘(i) the rights, title, and interests in 
land conveyed to the Secretary; and 
‘‘(ii) the rights, title, and interests in 
land that are reserved to the landowner. 
‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall facilitate and provide funding for— 
‘‘(1) the purchase by eligible entities of agricul-
tural land easements and other interests in eligible 
land; and 
‘‘(2) technical assistance to provide for the con-
servation of natural resources pursuant to an agricul-
tural land easement plan. 
‘‘(b) COST-SHARE ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
cost-share assistance to eligible entities for purchasing 
agricultural land easements to protect the agricul-
tural use, including grazing, and related conservation 
values of eligible land.
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† HR 2642 EAS 
‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 
‘‘(A) FEDERAL
SHARE.—Subject to sub-
paragraph (C), an agreement described in para-
graph (4) shall provide for a Federal share deter-
mined by the Secretary of an amount not to ex-
ceed 50 percent of the fair market value of the 
agricultural land easement or other interest in 
land, as determined by the Secretary using— 
‘‘(i) the Uniform Standards of Profes-
sional Appraisal Practices; 
‘‘(ii) an area-wide market analysis or 
survey; or 
‘‘(iii) another industry approved meth-
od. 
‘‘(B) NON-FEDERAL SHARE.— 
‘‘(i) IN GENERAL.—Subject to subpara-
graph (C), under the agreement, the eligible 
entity shall provide a share that is at least 
equivalent to that provided by the Sec-
retary. 
‘‘(ii) SOURCE OF CONTRIBUTION.—An 
eligible entity may include as part of its 
share a charitable donation or qualified 
conservation contribution (as defined by 
section 170(h) of the Internal Revenue Code
224 
† HR 2642 EAS 
of 1986) from the private landowner if the 
eligible entity contributes its own cash re-
sources in an amount that is at least 50 
percent of the amount contributed by the 
Secretary. 
‘‘(C) WAIVER AUTHORITY.— 
‘‘(i) GRASSLAND.—In the case of grass-
land of special environmental significance, 
as determined by the Secretary, the Sec-
retary may provide up to 75 percent of the 
fair market value of the agricultural land 
easement. 
‘‘(ii) CASH CONTRIBUTION.—For pur-
poses of subparagraph (B)(ii), the Secretary 
may waive any portion of the eligible entity 
cash contribution requirement for projects of 
special significance, subject to an increase 
in the private landowner donation that is 
equal to the amount of the waiver, if the do-
nation is voluntary. 
‘‘(3) EVALUATION
AND
RANKING
OF
APPLICA-
TIONS.— 
‘‘(A) CRITERIA.—The Secretary shall estab-
lish evaluation and ranking criteria to maximize
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† HR 2642 EAS 
the benefit of Federal investment under the pro-
gram. 
‘‘(B) CONSIDERATIONS.—In establishing the 
criteria, the Secretary shall emphasize support 
for— 
‘‘(i) protecting agricultural uses and 
related conservation values of the land; and 
‘‘(ii) maximizing the protection of 
areas devoted to agricultural use. 
‘‘(C) BIDDING DOWN.—If the Secretary de-
termines that 2 or more applications for cost- 
share assistance are comparable in achieving the 
purpose of the program, the Secretary shall not 
assign a higher priority to any of those applica-
tions solely on the basis of lesser cost to the pro-
gram. 
‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
enter into agreements with eligible entities to 
stipulate the terms and conditions under which 
the eligible entity is permitted to use cost-share 
assistance provided under this section. 
‘‘(B) LENGTH OF AGREEMENTS.—An agree-
ment shall be for a term that is—
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† HR 2642 EAS 
‘‘(i) in the case of an eligible entity 
certified under the process described in 
paragraph (5), a minimum of 5 years; and 
‘‘(ii) for all other eligible entities, at 
least 3, but not more than 5 years. 
‘‘(C) MINIMUM TERMS AND CONDITIONS.— 
An eligible entity shall be authorized to use its 
own terms and conditions for agricultural land 
easements so long as the Secretary determines 
such terms and conditions— 
‘‘(i) are consistent with the purposes of 
the program; 
‘‘(ii) are permanent or for the max-
imum duration allowed under applicable 
State law; 
‘‘(iii) permit effective enforcement of 
the conservation purposes of such easements, 
including appropriate restrictions depend-
ing on the purposes for which the easement 
is acquired; 
‘‘(iv) include a right of enforcement for 
the Secretary if terms of the easement are 
not enforced by the holder of the easement;
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† HR 2642 EAS 
‘‘(v) subject the land in which an in-
terest is purchased to an agricultural land 
easement plan that— 
‘‘(I) describes the activities which 
promote the long-term viability of the 
land to meet the purposes for which the 
easement was acquired; 
‘‘(II) requires the management of 
grassland according to a grassland 
management plan; and 
‘‘(III) includes a conservation 
plan, where appropriate, and requires, 
at the option of the Secretary, the con-
version of highly erodible cropland to 
less intensive uses; and 
‘‘(vi) include a limit on the impervious 
surfaces to be allowed that is consistent with 
the agricultural activities to be conducted. 
‘‘(D) 
SUBSTITUTION
OF
QUALIFIED 
PROJECTS.—An agreement shall allow, upon mu-
tual agreement of the parties, substitution of 
qualified projects that are identified at the time 
of the proposed substitution.
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† HR 2642 EAS 
‘‘(E) EFFECT OF VIOLATION.—If a violation 
occurs of a term or condition of an agreement 
under this subsection— 
‘‘(i) the agreement may be terminated; 
and 
‘‘(ii) the Secretary may require the eli-
gible entity to refund all or part of any 
payments received by the entity under the 
program, with interest on the payments as 
determined appropriate by the Secretary. 
‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(A) CERTIFICATION
PROCESS.—The Sec-
retary shall establish a process under which the 
Secretary may— 
‘‘(i) directly certify eligible entities 
that meet established criteria; 
‘‘(ii) enter into long-term agreements 
with certified eligible entities; and 
‘‘(iii) accept proposals for cost-share 
assistance for the purchase of agricultural 
land easements throughout the duration of 
such agreements. 
‘‘(B) CERTIFICATION
CRITERIA.—In order 
to be certified, an eligible entity shall dem-
onstrate to the Secretary that the entity will
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† HR 2642 EAS 
maintain, at a minimum, for the duration of the 
agreement— 
‘‘(i) a plan for administering ease-
ments that is consistent with the purposes of 
the program described in paragraphs (3) 
and (4) of section 1265(b); 
‘‘(ii) the capacity and resources to 
monitor and enforce agricultural land ease-
ments; and 
‘‘(iii) policies and procedures to en-
sure— 
‘‘(I) the long-term integrity of ag-
ricultural land easements on eligible 
land; 
‘‘(II) timely completion of acqui-
sitions of easements; and 
‘‘(III) timely and complete eval-
uation and reporting to the Secretary 
on the use of funds provided under the 
program. 
‘‘(C) REVIEW AND REVISION.— 
‘‘(i) REVIEW.—The Secretary shall 
conduct a review of eligible entities certified 
under subparagraph (A) every 3 years to 
ensure that such entities are meeting the
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criteria established under subparagraph 
(B). 
‘‘(ii) REVOCATION.—If the Secretary 
finds that the certified entity no longer 
meets the criteria established under sub-
paragraph (B), the Secretary may— 
‘‘(I) allow the certified entity a 
specified period of time, at a minimum 
180 days, in which to take such actions 
as may be necessary to meet the cri-
teria; and 
‘‘(II) revoke the certification of the 
entity, if after the specified period of 
time, the certified entity does not meet 
such criteria. 
‘‘(c) TECHNICAL ASSISTANCE.—The Secretary may 
provide technical assistance, if requested, to assist in— 
‘‘(1) compliance with the terms and conditions of 
easements; and 
‘‘(2) implementation of an agricultural land 
easement plan. 
‘‘SEC. 1265C. WETLAND RESERVE EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall provide assistance to owners of eligible land to restore, 
protect, and enhance wetland through—
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† HR 2642 EAS 
‘‘(1) easements and related wetland reserve ease-
ment plans; and 
‘‘(2) technical assistance. 
‘‘(b) EASEMENTS.— 
‘‘(1) METHOD OF ENROLLMENT.—The Secretary 
shall enroll eligible land through the use of— 
‘‘(A) 30-year easements; 
‘‘(B) permanent easements; 
‘‘(C) easements for the maximum duration 
allowed under applicable State laws; or 
‘‘(D) as an option for Indian tribes only, 
30-year contracts. 
‘‘(2) LIMITATIONS.— 
‘‘(A) INELIGIBLE
LAND.—The Secretary 
may not acquire easements on— 
‘‘(i) land established to trees under the 
conservation reserve program, except in 
cases where the Secretary determines it 
would further the purposes of the program; 
and 
‘‘(ii) farmed wetland or converted wet-
land where the conversion was not com-
menced prior to December 23, 1985. 
‘‘(B) CHANGES IN OWNERSHIP.—No ease-
ment shall be created on land that has changed
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ownership during the preceding 12-month period 
unless— 
‘‘(i) the new ownership was acquired 
by will or succession as a result of the death 
of the previous owner; 
‘‘(ii)(I) the ownership change occurred 
because of foreclosure on the land; and 
‘‘(II) immediately before the fore-
closure, the owner of the land exercises a 
right of redemption from the mortgage hold-
er in accordance with State law; or 
‘‘(iii) the Secretary determines that the 
land was acquired under circumstances that 
give adequate assurances that such land was 
not acquired for the purposes of placing it 
in the program. 
‘‘(3) EVALUATION AND RANKING OF OFFERS.— 
‘‘(A) CRITERIA.—The Secretary shall estab-
lish evaluation and ranking criteria to maximize 
the benefit of Federal investment under the pro-
gram. 
‘‘(B) CONSIDERATIONS.—When evaluating 
offers from landowners, the Secretary may con-
sider—
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‘‘(i) the conservation benefits of obtain-
ing an easement or 30-year contract, in-
cluding the potential environmental benefits 
if the land was removed from agricultural 
production; 
‘‘(ii) the cost-effectiveness of each ease-
ment or 30-year contract, so as to maximize 
the environmental benefits per dollar ex-
pended; 
‘‘(iii) whether the landowner or an-
other person is offering to contribute finan-
cially to the cost of the easement or 30-year 
contract to leverage Federal funds; and 
‘‘(iv) such other factors as the Sec-
retary determines are necessary to carry out 
the purposes of the program. 
‘‘(C) PRIORITY.—The Secretary shall place 
priority on acquiring easements based on the 
value of the easement for protecting and enhanc-
ing habitat for migratory birds and other wild-
life. 
‘‘(4) AGREEMENT.—To be eligible to place eligi-
ble land into the program through a wetland reserve 
easement, the owner of such land shall enter into an 
agreement with the Secretary to—
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† HR 2642 EAS 
‘‘(A) grant an easement on such land to the 
Secretary; 
‘‘(B) authorize the implementation of a wet-
land reserve easement plan; 
‘‘(C) create and record an appropriate deed 
restriction in accordance with applicable State 
law to reflect the easement agreed to; 
‘‘(D) provide a written statement of consent 
to such easement signed by those holding a secu-
rity interest in the land; 
‘‘(E) comply with the terms and conditions 
of the easement and any related agreements; and 
‘‘(F) permanently retire any existing crop-
land base and allotment history for the land on 
which the easement has been obtained. 
‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— 
‘‘(A) IN GENERAL.—A wetland reserve ease-
ment shall include terms and conditions that— 
‘‘(i) permit— 
‘‘(I) repairs, improvements, and 
inspections on the land that are nec-
essary to maintain existing public 
drainage systems; and 
‘‘(II) owners to control public ac-
cess on the easement areas while iden-
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† HR 2642 EAS 
tifying access routes to be used for res-
toration activities and management 
and easement monitoring; 
‘‘(ii) prohibit— 
‘‘(I) the alteration of wildlife 
habitat and other natural features of 
such land, unless specifically author-
ized by the Secretary; 
‘‘(II) the spraying of such land 
with chemicals or the mowing of such 
land, except where such spraying or 
mowing is authorized by the Secretary 
or is necessary— 
‘‘(aa) to comply with Federal 
or State noxious weed control 
laws; 
‘‘(bb) to comply with a Fed-
eral or State emergency pest treat-
ment program; or 
‘‘(cc) to meet habitat needs of 
specific wildlife species; 
‘‘(III) any activities to be carried 
out on the owner’s or successor’s land 
that is immediately adjacent to, and 
functionally related to, the land that is
236 
† HR 2642 EAS 
subject to the easement if such activi-
ties will alter, degrade, or otherwise di-
minish the functional value of the eli-
gible land; and 
‘‘(IV) the adoption of any other 
practice that would tend to defeat the 
purposes of the program, as determined 
by the Secretary; 
‘‘(iii) provide for the efficient and ef-
fective establishment of wetland functions 
and values; and 
‘‘(iv) include such additional provi-
sions as the Secretary determines are desir-
able to carry out the program or facilitate 
the practical administration thereof. 
‘‘(B) VIOLATION.—On the violation of the 
terms or conditions of the easement, the easement 
shall remain in force and the Secretary may re-
quire the owner to refund all or part of any pay-
ments received by the owner under the program, 
together with interest thereon as determined ap-
propriate by the Secretary. 
‘‘(C) COMPATIBLE USES.—Land subject to a 
wetland reserve easement may be used for com-
patible economic uses, including such activities
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† HR 2642 EAS 
as hunting and fishing, managed timber harvest, 
or periodic haying or grazing, if such use is spe-
cifically permitted by the wetland reserve ease-
ment plan and is consistent with the long-term 
protection and enhancement of the wetland re-
sources for which the easement was established. 
‘‘(D) RESERVATION OF GRAZING RIGHTS.— 
The Secretary may include in the terms and con-
ditions of an easement a provision under which 
the owner reserves grazing rights if— 
‘‘(i) the Secretary determines that the 
reservation and use of the grazing rights— 
‘‘(I) is compatible with the land 
subject to the easement; 
‘‘(II) is consistent with the histor-
ical natural uses of the land and long- 
term protection and enhancement goals 
for which the easement was established; 
and 
‘‘(III) complies with the wetland 
reserve easement plan; and 
‘‘(ii) the agreement provides for a com-
mensurate reduction in the easement pay-
ment to account for the grazing value, as 
determined by the Secretary.
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† HR 2642 EAS 
‘‘(E) APPLICATION.—The relevant provi-
sions of this paragraph shall also apply to a 30- 
year contract. 
‘‘(6) COMPENSATION.— 
‘‘(A) DETERMINATION.— 
‘‘(i) IN GENERAL.—The Secretary shall 
pay as compensation for a permanent ease-
ment acquired an amount necessary to en-
courage enrollment in the program based on 
the lowest of— 
‘‘(I) the fair market value of the 
land, as determined by the Secretary, 
using the Uniform Standards of Pro-
fessional Appraisal Practices or an 
area-wide market analysis or survey; 
‘‘(II) the amount corresponding to 
a geographical cap, as determined by 
the Secretary in regulations; or 
‘‘(III) the offer made by the land-
owner. 
‘‘(ii) OTHER.—Compensation for a 30- 
year contract or 30-year easement shall be 
not less than 50 percent, but not more than 
75 percent, of the compensation that would 
be paid for a permanent easement.
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† HR 2642 EAS 
‘‘(B) FORM
OF
PAYMENT.—Compensation 
shall be provided by the Secretary in the form of 
a cash payment, in an amount determined under 
subparagraph (A). 
‘‘(C) PAYMENT SCHEDULE.— 
‘‘(i) EASEMENTS
VALUED
AT
LESS 
THAN
$500,000.—For easements valued at 
$500,000 or less, the Secretary may provide 
easement payments in not more than 10 an-
nual payments. 
‘‘(ii) EASEMENTS
VALUED
AT
MORE 
THAN
$500,000.—For easements valued at 
more than $500,000, the Secretary may 
provide easement payments in at least 5, 
but not more than 10 annual payments, ex-
cept that, if the Secretary determines it 
would further the purposes of the program, 
the Secretary may make a lump sum pay-
ment for such an easement. 
‘‘(c) EASEMENT RESTORATION.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
financial assistance to carry out the establishment of 
conservation measures and practices and protect wet-
land functions and values, including necessary main-
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† HR 2642 EAS 
tenance activities, as set forth in a wetland reserve 
easement plan. 
‘‘(2) PAYMENTS.—The Secretary shall— 
‘‘(A) in the case of a permanent easement, 
pay an amount that is not less than 75 percent, 
but not more than 100 percent, of the eligible 
costs; and 
‘‘(B) in the case of a 30-year contract or 
30-year easement, pay an amount that is not 
less than 50 percent, but not more than 75 per-
cent, of the eligible costs. 
‘‘(d) TECHNICAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall assist 
owners in complying with the terms and conditions 
of easements and 30-year contracts. 
‘‘(2) CONTRACTS
OR
AGREEMENTS.—The Sec-
retary may enter into 1 or more contracts with pri-
vate entities or agreements with a State, non-govern-
mental organization, or Indian tribe to carry out nec-
essary restoration, enhancement or maintenance of an 
easement if the Secretary determines that the contract 
or agreement will advance the purposes of the pro-
gram. 
‘‘(e) WETLAND ENHANCEMENT OPTION.—The Sec-
retary may enter into 1 or more agreements with a State
241 
† HR 2642 EAS 
(including a political subdivision or agency of a State), 
nongovernmental organization, or Indian tribe to carry out 
a special wetland enhancement option that the Secretary 
determines would advance the purposes of the program. 
‘‘(f) ADMINISTRATION.— 
‘‘(1) WETLAND RESERVE EASEMENT PLAN.—The 
Secretary shall develop a wetland reserve easement 
plan for eligible land subject to a wetland reserve 
easement, which will include the practices and activi-
ties necessary to restore, protect, enhance, and main-
tain the enrolled land. 
‘‘(2) DELEGATION
OF
EASEMENT
ADMINISTRA-
TION.— 
‘‘(A) IN GENERAL.—The Secretary may del-
egate any of the easement management, moni-
toring, and enforcement responsibilities of the 
Secretary to other Federal or State agencies that 
have the appropriate authority, expertise and re-
sources necessary to carry out such delegated re-
sponsibilities or to other conservation organiza-
tions if the Secretary determines the organiza-
tion has similar expertise and resources. 
‘‘(B) LIMITATION.—The Secretary shall not 
delegate any of the monitoring or enforcement re-
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† HR 2642 EAS 
sponsibilities under the program to conservation 
organizations. 
‘‘(3) PAYMENTS.— 
‘‘(A) TIMING OF PAYMENTS.—The Secretary 
shall provide payment for obligations incurred 
by the Secretary under this section— 
‘‘(i) with respect to any easement res-
toration obligation as soon as possible after 
the obligation is incurred; and 
‘‘(ii) with respect to any annual ease-
ment payment obligation incurred by the 
Secretary as soon as possible after October 
1 of each calendar year. 
‘‘(B) PAYMENTS TO OTHERS.—If an owner 
who is entitled to a payment dies, becomes in-
competent, is otherwise unable to receive such 
payment, or is succeeded by another person or 
entity who renders or completes the required per-
formance, the Secretary shall make such pay-
ment, in accordance with regulations prescribed 
by the Secretary and without regard to any other 
provision of law, in such manner as the Sec-
retary determines is fair and reasonable in light 
of all of the circumstances.
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† HR 2642 EAS 
‘‘SEC. 1265D. ADMINISTRATION. 
‘‘(a) INELIGIBLE LAND.—The Secretary may not ac-
quire an easement under the program on— 
‘‘(1) land owned by an agency of the United 
States, other than land held in trust for Indian tribes; 
‘‘(2) land owned in fee title by a State, including 
an agency or a subdivision of a State, or a unit of 
local government; 
‘‘(3) land subject to an easement or deed restric-
tion which, as determined by the Secretary, provides 
similar protection as would be provided by enrollment 
in the program; and 
‘‘(4) land where the purposes of the program 
would be undermined due to on-site or off-site condi-
tions, such as risk of hazardous substances, proposed 
or existing rights of way, infrastructure development, 
or adjacent land uses. 
‘‘(b) PRIORITY.—In evaluating applications under the 
program, the Secretary may give priority to land that is 
currently enrolled in the conservation reserve program in 
a contract that is set to expire within 1 year and— 
‘‘(1) in the case of an agricultural land ease-
ment, is grassland that would benefit from protection 
under a long-term easement; and 
‘‘(2) in the case of a wetland reserve easement, 
is a wetland or related area with the highest functions
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† HR 2642 EAS 
and values and is likely to return to production after 
the land leaves the conservation reserve program. 
‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, AND 
TERMINATION.— 
‘‘(1) IN GENERAL.—The Secretary may subordi-
nate, exchange, terminate, or modify any interest in 
land, or portion of such interest, administered by the 
Secretary, either directly or on behalf of the Com-
modity Credit Corporation under the program when 
the Secretary determines that— 
‘‘(A) it is in the Federal Government’s in-
terest to subordinate, exchange, modify or termi-
nate the interest in land; 
‘‘(B) the subordination, exchange, modifica-
tion, or termination action— 
‘‘(i) will address a compelling public 
need for which there is no practicable alter-
native, or 
‘‘(ii) such action will further the prac-
tical administration of the program; and 
‘‘(C) the subordination, exchange, modifica-
tion, or termination action will result in com-
parable conservation value and equivalent or 
greater economic value to the United States.
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† HR 2642 EAS 
‘‘(2) CONSULTATION.—The Secretary shall work 
with the current owner, and eligible entity if applica-
ble, to address any subordination, exchange, termi-
nation, or modification of the interest, or portion of 
such interest in land. 
‘‘(3) NOTICE.—At least 90 days before taking 
any termination action described in paragraph (1), 
the Secretary shall provide written notice of such ac-
tion to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
‘‘(d) LAND ENROLLED IN OTHER PROGRAMS.— 
‘‘(1) CONSERVATION
RESERVE
PROGRAM.—The 
Secretary may terminate or modify an existing con-
tract entered into under section 1231(a) if eligible 
land that is subject to such contract is transferred 
into the program. 
‘‘(2) OTHER.—Land enrolled in the wetlands re-
serve program, grassland reserve program, or farm-
land protection program shall be considered enrolled 
in this program.’’. 
(b) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
Before an eligible entity or owner of eligible land may re-
ceive assistance under subtitle H of title XII of the Food 
Security Act of 1985, the eligible entity or person shall
246 
† HR 2642 EAS 
agree, during the crop year for which the assistance is pro-
vided and in exchange for the assistance— 
(1) to comply with applicable conservation re-
quirements under subtitle B of title XII of that Act 
(16 U.S.C. 3811 et seq.); and 
(2) to comply with applicable wetland protection 
requirements under subtitle C of title XII of that Act 
(16 U.S.C. 3821 et seq.). 
(c) CROSS-REFERENCE.—Section 1244 of the Food Se-
curity Act of 1985 (16 U.S.C. 3844) is amended— 
(1) in subsection (c)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘and’’ at the end of 
subparagraph (A); 
(ii) by striking ‘‘and’’ at the end of 
subparagraph (B); and 
(iii) by striking subparagraph (C); 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) the Agricultural Conservation Easement 
Program established under subtitle H; and’’; and 
(2) in subsection (f)— 
(A) in paragraph (1)—
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† HR 2642 EAS 
(i) in subparagraph (A), by striking 
‘‘programs administered under subchapters 
B and C of chapter 1 of subtitle D’’ and in-
serting ‘‘conservation reserve program estab-
lished under subchapter B of chapter 1 of 
subtitle D and the Agricultural Conserva-
tion Easement Program under subtitle H 
using wetland reserve easements under sec-
tion 1265C’’; and 
(ii) in subparagraph (B), by striking 
‘‘subchapter C of chapter 1 of subtitle D’’ 
and inserting ‘‘the Agricultural Conserva-
tion Easement Program under subtitle H 
using wetland reserve easements under sec-
tion 1265C’’; and 
(B) by striking paragraph (4) and inserting 
the following: 
‘‘(4) EXCLUSIONS.— 
‘‘(A) SHELTERBELTS AND WINDBREAKS.— 
The limitations established under paragraph (1) 
shall not apply to cropland that is subject to an 
easement under subchapter C of chapter 1 that 
is used for the establishment of shelterbelts and 
windbreaks.
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† HR 2642 EAS 
‘‘(B) WET AND SATURATED SOILS.—For the 
purposes of enrolling land in a wetland reserve 
easement under subtitle H, the limitations estab-
lished under paragraph (1) shall not apply to 
cropland designated by the Secretary with sub-
class w in the land capability classes IV through 
VIII because of severe use limitations due to soil 
saturation or inundation.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2013. 
Subtitle E—Regional Conservation 
Partnership Program 
SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PRO-
GRAM. 
(a) IN GENERAL.—Title XII of the Food Security Act 
of 1985 is amended by inserting after subtitle H (as added 
by section 2301) the following: 
‘‘Subtitle I—Regional Conservation 
Partnership Program 
‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish 
a Regional Conservation Partnership Program to imple-
ment eligible activities through— 
‘‘(1) partnership agreements with eligible part-
ners; and
249 
† HR 2642 EAS 
‘‘(2) contracts with producers. 
‘‘(b) PURPOSES.—The purposes of the program are— 
‘‘(1) to combine the purposes and coordinate the 
functions of— 
‘‘(A) the agricultural water enhancement 
program established under section 1240I; 
‘‘(B) the Chesapeake Bay watershed pro-
gram established under section 1240Q; 
‘‘(C) the cooperative conservation partner-
ship initiative established under section 1243; 
and 
‘‘(D) the Great Lakes basin program for soil 
erosion and sediment control established under 
section 1240P; 
‘‘(2) to further the conservation, restoration, and 
sustainable use of soil, water, wildlife, and related 
natural resources on a regional or watershed scale; 
and 
‘‘(3) to encourage partners to cooperate with pro-
ducers in— 
‘‘(A) meeting or avoiding the need for na-
tional, State, and local natural resource regu-
latory requirements related to production; and 
‘‘(B) implementing projects that will result 
in the installation and maintenance of eligible
250 
† HR 2642 EAS 
activities that affect multiple agricultural or 
nonindustrial private forest operations on a 
local, regional, State, or multi-State basis. 
‘‘SEC. 1271A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) COVERED
PROGRAMS.—The term ‘covered 
programs’ means— 
‘‘(A) the agricultural conservation easement 
program; 
‘‘(B) the environmental quality incentives 
program; 
‘‘(C) the conservation stewardship program; 
and 
‘‘(D) the healthy forests reserve program es-
tablished under section 501 of the Healthy For-
ests Restoration Act of 2003 (16 U.S.C. 6571). 
‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible ac-
tivity’ means any of the following conservation activi-
ties when delivered through a covered program: 
‘‘(A) Water quality restoration or enhance-
ment projects, including nutrient management 
and sediment reduction. 
‘‘(B) Water quantity conservation, restora-
tion, or enhancement projects relating to surface 
water and groundwater resources, including—
251 
† HR 2642 EAS 
‘‘(i) the conversion of irrigated crop-
land to the production of less water-inten-
sive agricultural commodities or dryland 
farming; and 
‘‘(ii) irrigation system improvement 
and irrigation efficiency enhancement. 
‘‘(C) Drought mitigation. 
‘‘(D) Flood prevention. 
‘‘(E) Water retention. 
‘‘(F) Habitat conservation, restoration, and 
enhancement. 
‘‘(G) Erosion control. 
‘‘(H) Forest restoration, including recovery 
of threatened and endangered species, improve-
ment of biodiversity, and enhancement of carbon 
sequestration. 
‘‘(I) Other related activities that the Sec-
retary determines will help achieve conservation 
benefits. 
‘‘(3) ELIGIBLE
PARTNER.—The term ‘eligible 
partner’ means any of the following: 
‘‘(A) An agricultural or silvicultural pro-
ducer association or other group of producers. 
‘‘(B) A State or unit of local government. 
‘‘(C) An Indian tribe.
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† HR 2642 EAS 
‘‘(D) A farmer cooperative. 
‘‘(E) An institution of higher education. 
‘‘(F) A municipal water or wastewater 
treatment entity. 
‘‘(G) An organization or other nongovern-
mental entity with an established history of 
working cooperatively with producers on agricul-
tural land, as determined by the Secretary, to 
address— 
‘‘(i) local conservation priorities re-
lated to agricultural production, wildlife 
habitat development, and nonindustrial pri-
vate forest land management; or 
‘‘(ii) critical watershed-scale soil ero-
sion, water quality, sediment reduction, or 
other natural resource concerns. 
‘‘(4) 
PARTNERSHIP
AGREEMENT.—The 
term 
‘partnership agreement’ means an agreement between 
the Secretary and an eligible partner. 
‘‘(5) PROGRAM.—The term ‘program’ means the 
Regional Conservation Partnership Program estab-
lished by this subtitle. 
‘‘SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS. 
‘‘(a) PARTNERSHIP AGREEMENTS AUTHORIZED.—The 
Secretary may enter into a partnership agreement with an
253 
† HR 2642 EAS 
eligible partner to implement a project that will assist pro-
ducers with installing and maintaining an eligible activity. 
‘‘(b) LENGTH.—A partnership agreement shall be for 
a period not to exceed 5 years, except that the Secretary 
may extend the agreement 1 time for up to 12 months when 
an extension is necessary to meet the objectives of the pro-
gram. 
‘‘(c) DUTIES OF PARTNERS.— 
‘‘(1) IN GENERAL.—Under a partnership agree-
ment, the eligible partner shall— 
‘‘(A) define the scope of a project, includ-
ing— 
‘‘(i) the eligible activities to be imple-
mented; 
‘‘(ii) the potential agricultural or non-
industrial private forest operations affected; 
‘‘(iii) the local, State, multi-State or 
other geographic area covered; and 
‘‘(iv) the planning, outreach, imple-
mentation and assessment to be conducted; 
‘‘(B) conduct outreach and education to 
producers for potential participation in the 
project;
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† HR 2642 EAS 
‘‘(C) at the request of a producer, act on be-
half of a producer participating in the project in 
applying for assistance under section 1271C; 
‘‘(D) leverage financial or technical assist-
ance provided by the Secretary with additional 
funds to help achieve the project objectives; 
‘‘(E) conduct an assessment of the project’s 
effects; and 
‘‘(F) at the conclusion of the project, report 
to the Secretary on its results and funds lever-
aged. 
‘‘(2) CONTRIBUTION.—A partner shall provide a 
significant portion of the overall costs of the scope of 
the project as determined by the Secretary. 
‘‘(d) APPLICATIONS.— 
‘‘(1) COMPETITIVE
PROCESS.—The Secretary 
shall conduct a competitive process to select applica-
tions for partnership agreements and may assess and 
rank applications with similar conservation purposes 
as a group. 
‘‘(2) CRITERIA USED.—In carrying out the proc-
ess described in paragraph (1), the Secretary shall 
make public the criteria used in evaluating applica-
tions.
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† HR 2642 EAS 
‘‘(3) CONTENT.—An application to the Secretary 
shall include a description of— 
‘‘(A) the scope of the project as described in 
subsection (c)(1)(A); 
‘‘(B) the plan for monitoring, evaluating, 
and reporting on progress made towards achiev-
ing the project’s objectives; 
‘‘(C) the program resources requested for the 
project, including the covered programs to be 
used and estimated funding needed from the Sec-
retary; 
‘‘(D) the partners collaborating to achieve 
project objectives, including their roles, respon-
sibilities, capabilities, and financial contribu-
tion; and 
‘‘(E) any other elements the Secretary con-
siders necessary to adequately evaluate and com-
petitively select applications for funding under 
the program. 
‘‘(4) APPLICATION SELECTION.— 
‘‘(A) 
PRIORITY
TO
CERTAIN
APPLICA-
TIONS.—The Secretary shall give a higher pri-
ority to applications that—
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† HR 2642 EAS 
‘‘(i) assist producers in meeting or 
avoiding the need for a natural resource 
regulatory requirement; 
‘‘(ii) significantly leverage non-Federal 
financial and technical resources and co-
ordinate with other local, State, regional, or 
national efforts; 
‘‘(iii) deliver high percentages of ap-
plied conservation to address conservation 
priorities or local, State, regional, or na-
tional conservation initiatives; 
‘‘(iv) provide innovation in conserva-
tion methods and delivery, including out-
come-based 
performance 
measures 
and 
methods; or 
‘‘(v) provide innovation in the im-
provement and delivery of water quality or 
quantity, including outcome-based perform-
ance measures and methods. 
‘‘(B) OTHER APPLICATIONS.—The Secretary 
may give priority to applications that— 
‘‘(i) have a high percentage of pro-
ducers in the area to be covered by the 
agreement; or
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† HR 2642 EAS 
‘‘(ii) meet other factors that are impor-
tant for achieving the purposes of the pro-
gram, as determined by the Secretary. 
‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. 
‘‘(a) IN GENERAL.—The Secretary shall enter into con-
tracts to provide financial and technical assistance to— 
‘‘(1) producers participating in a project with 
an eligible partner as described in section 1271B; or 
‘‘(2) producers that fit within the scope of a 
project described in section 1271B or a critical con-
servation area designated pursuant to section 1271F, 
but who are seeking to implement an eligible activity 
independent of a partner. 
‘‘(b) TERMS AND CONDITIONS.— 
‘‘(1) CONSISTENCY WITH PROGRAM RULES.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (2) and subparagraph (B), the Sec-
retary shall ensure that the terms and conditions 
of a contract under this section are consistent 
with the applicable rules of the covered programs 
to be used as part of the partnership agreement, 
as described in the application under section 
1271B(d)(3)(C). 
‘‘(B) ADJUSTMENTS.—
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† HR 2642 EAS 
‘‘(i) IN GENERAL.—The Secretary may 
adjust rules of a covered program, includ-
ing— 
‘‘(I) operational guidance and re-
quirements for a covered program at 
the discretion of the Secretary so as to 
provide a simplified application and 
evaluation process; and 
‘‘(II) 
nonstatutory, 
regulatory 
rules or provisions to better reflect 
unique local circumstances and pur-
poses if the Secretary determines such 
adjustments are necessary to achieve 
the purposes of the covered program. 
‘‘(ii) LIMITATION.—The Secretary shall 
not adjust the application of statutory re-
quirements for a covered program, includ-
ing requirements governing appeals, pay-
ment limits, and conservation compliance. 
‘‘(iii) IRRIGATION.—In States where 
irrigation has not been used significantly 
for agricultural purposes, as determined by 
the Secretary, the Secretary shall not limit 
eligibility under section 1271B or this sec-
tion on the basis of prior irrigation history.
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† HR 2642 EAS 
‘‘(2) ALTERNATIVE FUNDING ARRANGEMENTS.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1)(A), for the purposes of providing as-
sistance for land described in subsection (a) and 
section 1271F, the Secretary may enter into al-
ternative 
funding 
arrangements 
with 
a 
multistate water resource agency or authority 
if— 
‘‘(i) the Secretary determines that the 
goals and objectives of the program will be 
met by the alternative funding arrange-
ments; 
‘‘(ii) the agency or authority certifies 
that the limitations established under this 
section on agreements with individual pro-
ducers will not be exceeded; and 
‘‘(iii) all participating producers meet 
applicable payment eligibility provisions. 
‘‘(B) CONDITIONS.—As a condition on re-
ceipt of funding under subparagraph (A), the 
multistate water resource agency or authority 
shall agree— 
‘‘(i) to submit an annual independent 
audit to the Secretary that describes the use 
of funds under this paragraph;
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† HR 2642 EAS 
‘‘(ii) to provide any data necessary for 
the Secretary to issue a report on the use of 
funds under this paragraph; and 
‘‘(iii) not to use any of the funds pro-
vided pursuant to subparagraph (A) for ad-
ministration or provide for administrative 
costs through contracts with another entity. 
‘‘(C) 
LIMITATION.—The 
Secretary 
may 
enter into at least 10 but not more than 20 alter-
native funding arrangements under this para-
graph. 
‘‘(c) PAYMENTS.— 
‘‘(1) IN GENERAL.—In accordance with statutory 
requirements of the covered programs involved, the 
Secretary may make payments to a producer in an 
amount determined by the Secretary to be necessary 
to achieve the purposes of the program. 
‘‘(2) PAYMENTS TO CERTAIN PRODUCERS.—The 
Secretary may provide payments for a period of 5 
years— 
‘‘(A) to producers participating in a project 
that addresses water quantity concerns and in 
an amount sufficient to encourage conversion 
from irrigated to dryland farming; and
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‘‘(B) to producers participating in a project 
that addresses water quality concerns and in an 
amount sufficient to encourage adoption of con-
servation practices and systems that improve nu-
trient management. 
‘‘(3) WAIVER AUTHORITY.—To assist in the im-
plementation of the program, the Secretary may 
waive the applicability of the limitation in section 
1001D(b)(2) of this Act for participating producers if 
the Secretary determines that the waiver is necessary 
to fulfill the objectives of the program. 
‘‘SEC. 1271D. FUNDING. 
‘‘(a) AVAILABILITY OF FUNDS.—The Secretary shall 
use $110,000,000 of the funds of the Commodity Credit Cor-
poration for each of fiscal years 2014 through 2018 to carry 
out the program established under this subtitle. 
‘‘(b) DURATION
OF
AVAILABILITY.—Funds made 
available under subsection (a) shall remain available until 
expended. 
‘‘(c) ADDITIONAL FUNDING AND ACRES.— 
‘‘(1) IN
GENERAL.—In addition to the funds 
made available under subsection (a), the Secretary 
shall reserve 8 percent of the funds and acres made 
available for a covered program for each of fiscal 
years 2014 through 2018 in order to ensure addi-
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tional resources are available to carry out this pro-
gram. 
‘‘(2) UNUSED FUNDS AND ACRES.—Any funds or 
acres reserved under paragraph (1) for a fiscal year 
from a covered program that are not obligated under 
this program by April 1 of that fiscal year shall be 
returned for use under the covered program. 
‘‘(d) ALLOCATION OF FUNDING.—Of the funds and 
acres made available for the program under subsections (a) 
and (c), the Secretary shall allocate— 
‘‘(1) 25 percent of the funds and acres to projects 
based on a State competitive process administered by 
the State conservationist, with the advice of the State 
technical committee; 
‘‘(2) 40 percent of the funds and acres to projects 
based on a national competitive process to be estab-
lished by the Secretary; and 
‘‘(3) 35 percent of the funds and acres to projects 
for the critical conservation areas designated in sec-
tion 1271F. 
‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 
None of the funds made available under the program may 
be used to pay for the administrative expenses of partners.
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‘‘SEC. 1271E. ADMINISTRATION. 
‘‘(a) DISCLOSURE.—In addition to the criteria used 
in evaluating applications as described in section 
1271B(d)(2), the Secretary shall make publicly available 
information on projects selected through the competitive 
process described in section 1271B(d)(1). 
‘‘(b) REPORTING.—Not later than December 31, 2014, 
and for every 2 years thereafter, 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 status of projects 
funded under the program, including— 
‘‘(1) the number and types of partners and pro-
ducers participating in the partnership agreements 
selected; 
‘‘(2) the number of producers receiving assist-
ance; 
‘‘(3) total funding committed to projects, includ-
ing Federal and non-Federal resources; and 
‘‘(4) a description of how the funds under section 
1271C(b)(3) are being administered, including— 
‘‘(A) any oversight mechanisms that the 
Secretary has implemented; 
‘‘(B) the process through which the Sec-
retary is resolving appeals by program partici-
pants; and
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‘‘(C) the means by which the Secretary is 
tracking adherence to any applicable provisions 
for payment eligibility. 
‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. 
‘‘(a) IN GENERAL.—When administering the funding 
described in section 1271D(d)(3), the Secretary shall select 
applications for partnership agreements and producer con-
tracts within designated critical conservation areas. 
‘‘(b) 
CRITICAL
CONSERVATION
AREA
DESIGNA-
TIONS.— 
‘‘(1) IN
GENERAL.—The Secretary shall des-
ignate up to 6 geographical areas as critical conserva-
tion areas based on the degree to which an area— 
‘‘(A) includes multiple States with signifi-
cant agricultural production; 
‘‘(B) is covered by an existing regional, 
State, binational, or multistate agreement or 
plan that has established objectives, goals and 
work plans and is adopted by a Federal, State, 
or regional authority; 
‘‘(C) has water quality concerns, including 
concerns for reducing erosion, promoting sedi-
ment control, and addressing nutrient manage-
ment activities affecting large bodies of water of 
regional, national, or international significance;
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‘‘(D) has water quantity concerns, includ-
ing— 
‘‘(i) concerns for groundwater, surface 
water, aquifer, or other water sources; or 
‘‘(ii) a need to promote water retention 
and flood prevention; 
‘‘(E) is vital habitat for migrating wildlife; 
or 
‘‘(F) is subject to regulatory requirements 
that could reduce the economic scope of agricul-
tural operations within the area. 
‘‘(2) EXPIRATION.—Critical conservation area 
designations under this section shall expire after 5 
years, subject to redesignation, except that the Sec-
retary may withdraw designation from an area if the 
Secretary finds the area no longer meets the condi-
tions described in paragraph (1). 
‘‘(c) ADMINISTRATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall administer any part-
nership agreement or producer contract under this 
section in a manner that is consistent with the terms 
of the program. 
‘‘(2) RELATIONSHIP
TO
EXISTING
ACTIVITY.— 
The Secretary shall, to the maximum extent prac-
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ticable, ensure that eligible activities carried out in 
critical conservation areas designated under this sec-
tion complement and are consistent with other Fed-
eral and State programs and water quality and 
quantity strategies.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2013. 
Subtitle F—Other Conservation 
Programs 
SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND. 
Section 1240M(e) of the Food Security Act of 1985 (16 
U.S.C. 3839bb(e)) is amended inserting ‘‘and $30,000,000 
for each of fiscal years 2014 through 2018’’ before the period 
at the end. 
SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PRO-
GRAM. 
Section 1240O(b) of the Food Security Act of 1985 (16 
U.S.C. 3839bb–2(b)) is amended by inserting ‘‘and 
$15,000,000 for each of fiscal years 2014 through 2018’’ be-
fore the period at the end. 
SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT IN-
CENTIVE PROGRAM. 
(a) FUNDING.—Section 1240R(f)(1) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended—
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(1) in the heading, by striking ‘‘FISCAL YEARS 
2009
THROUGH
2012’’ and inserting ‘‘MANDATORY 
FUNDING’’; and 
(2) by inserting ‘‘and $40,000,000 for the period 
of fiscal years 2014 through 2018’’ before the period 
at the end. 
(b) REPORT ON PROGRAM EFFECTIVENESS.—Not later 
than 2 years after the date of enactment of this Act, the 
Secretary of Agriculture shall submit to the Committee on 
Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate 
a report evaluating the effectiveness of the voluntary public 
access and habitat incentive program established by section 
1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb– 
5), including— 
(1) identifying cooperating agencies; 
(2) identifying the number of land holdings and 
total acres enrolled by State; 
(3) evaluating the extent of improved access on 
eligible land, improved wildlife habitat, and related 
economic benefits; and 
(4) any other relevant information and data re-
lating to the program that would be helpful to such 
Committees.