I
104TH CONGRESS
2D SESSION
H. R. 2973
To reform and extend Department of Agriculture programs related to agricul-
tural credit, rural development, conservation, trade, research, and pro-
motion of agricultural commodities.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 1996
Mr. ROBERTS (for himself, Mr. EMERSON, Mr. GUNDERSON, Mr. ALLARD,
Mr. BARRETT of Nebraska, Mr. EWING, and Mr. SMITH of Michigan) in-
troduced the following bill; which was referred to the Committee on Agri-
culture, and in addition to the Committees on Ways and Means, and
International Relations, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To reform and extend Department of Agriculture programs
related to agricultural credit, rural development, con-
servation, trade, research, and promotion of agricultural
commodities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Agricultural Regulatory Relief and Trade Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—AGRICULTURAL CREDIT
Subtitle A—Amendments to the Consolidated Farm and Rural
Development Act
Sec. 101. References.
Sec. 102. Redirection of resources to family farmers.
Sec. 103. Redirection of resources to income-producing activities.
Sec. 104. Improvement of loan portfolio management.
Sec. 105. Assuring prompt repayment of loans.
Sec. 106. Modification of programs for beginning farmers.
Sec. 107. Elimination of target participation rates.
Sec. 108. Miscellaneous and conforming amendments.
Subtitle B—Amendments to the Farm Credit Act of 1971
Sec. 151. References.
Sec. 152. Repeal of requirements relating to review of decisions to deny or re-
duce the amount of a loan.
Sec. 153. Prohibition against restructuring of restructured loans or loans in-
volved in bankruptcy proceedings.
Sec. 154. Repeal of rules governing effect of restructuring on borrower stock.
Sec. 155. Repeal of rules governing review of restructuring denials.
Sec. 156. Elimination of certain requirements relating to loans placed in
nonaccrual status.
Sec. 157. Limitations on the right of first refusal.
TITLE II—RURAL DEVELOPMENT
Sec. 201. Capitalization grants to States for rural development.
Sec. 202. Elimination of other rural development programs.
Sec. 203. Conforming amendments.
Sec. 204. Savings provision.
Sec. 205. Effective date.
TITLE III—CONSERVATION
Sec. 300. Short title.
Subtitle A—Consolidation of Conservation Financial
Assistance Programs of the Department of Agriculture
Sec. 301. Purpose of subtitle.
Part 1—Agricultural Conservation Assistance Program
Sec. 311. Definitions.
Sec. 312. Provision of technical and financial assistance for eligible practices to
conserve and improve soil, water, and related natural resources.
Sec. 313. Cost-share plans.
Sec. 314. Financial assistance under contract.
Sec. 315. Termination of contracts.
Sec. 316. Authorization of appropriations.
Part 2—Conforming Amendments
Sec. 321. Repeal of Great Plains conservation program.
Sec. 322. Repeal of critical lands resource conservation program in Great
Plains area.
Sec. 323. Repeal of agricultural conservation program.
Sec. 324. Modification of Department involvement in Colorado River basin sa-
linity control program.
Sec. 325. Repeal of rural environmental conservation program.
Sec. 326. Repeal of water quality incentive projects.
Sec. 327. Repeal of tree planting initiative.
Sec. 328. Repeal of integrated farm management program option.
Sec. 329. Repeal of special areas conservation program and reservoir sedi-
mentation program.
Sec. 330. Repeal of small watershed easement purchase authority.
Sec. 331. Repeal of financial assistance programs under Cooperative Forestry
Assistance Act of 1978.
Sec. 332. Repeal of Water Bank Act.
Sec. 333. Effective date of repeals.
Subtitle B—Water Quality Conservation Program for
Livestock Operations
Sec. 341. Purpose of subtitle and definitions.
Sec. 342. Provision of technical and financial assistance for water quality con-
servation for livestock operations.
Sec. 343. Assistance under contract.
Sec. 344. Priorities in evaluation of contract offers.
Sec. 345. Water quality plans.
Sec. 346. Modification and termination of contracts.
Sec. 347. Use of funds of Commodity Credit Corporation.
Sec. 348. Regulations.
Subtitle C—Highly Erodible Cropland Conservation
Sec. 351. Definitions applicable to highly erodible cropland conservation.
Sec. 352. Development and implementation of conservation plans and conserva-
tion systems.
Sec. 353. Expedited procedures for granting variances from conservation plans.
Sec. 354. Good faith exemption.
Sec. 355. Conservation reserve lands.
Sec. 356. Investigation of possible compliance deficiencies.
Sec. 357. Expiration of authority.
Subtitle D—Environmental Conservation Acreage Reserve
Program
Sec. 361. Wetlands reserve program.
Sec. 362. Elimination of consultation requirements with Secretary of the Inte-
rior.
Sec. 363. Repeal of environmental easement program.
Sec. 364. Effect of amendments on existing easements.
Sec. 365. Conservation reserve program.
Subtitle E—Wetland Conservation Reform
Sec. 371. Restatement of program ineligibility.
Sec. 372. Delineation of wetlands; exemptions to program ineligibility.
Sec. 373. Repeal of consultation requirement with Secretary of the Interior.
Sec. 374. Application of program ineligibility to affiliated persons.
TITLE IV—AGRICULTURAL TRADE
Subtitle A—Public Law 480 and Related Law
Sec. 401. Food assistance to developing countries.
Sec. 402. Trade and development assistance.
Sec. 403. Agreements regarding eligible countries and private entities.
Sec. 404. Terms and conditions of sales.
Sec. 405. Use of local currency.
Sec. 406. Provision of agricultural commodities.
Sec. 407. Effective use of commodities.
Sec. 408. Monetization.
Sec. 409. General levels of assistance under Public Law 480.
Sec. 410. Use of value added commodities.
Sec. 411. Food aid consultation group.
Sec. 412. Food for development.
Sec. 413. Commodity determinations.
Sec. 414. General provisions.
Sec. 415. Agreements.
Sec. 416. Administrative provisions.
Sec. 417. Expiration date.
Sec. 418. Repeal of sections 409 and 410.
Sec. 419. Use of local currency in title V.
Sec. 420. Title V funding level.
Sec. 421. Food for progress.
Sec. 422. Food security commodity reserve.
Subtitle B—Agricultural Trade Act of 1978
Sec. 431. Agricultural export promotion strategy.
Sec. 432. Export credits.
Sec. 433. Regulations.
Sec. 434. Agricultural embargo protection.
Sec. 435. Foreign Agricultural Service.
Subtitle C—Miscellaneous
Sec. 441. Triggered export enhancement.
Sec. 442. Policy on expansion of international markets.
Sec. 443. Policy on maintenance and development of export markets.
Sec. 444. Policy on unfair trade practices.
Sec. 445. Agricultural aid and trade unions.
Sec. 446. Annual reports by agricultural attaches.
Sec. 447. Orderly liquidation of stocks.
Sec. 448. Regulations.
Sec. 449. Emerging markets.
Sec. 450. Import assistance for CBI beneficiary countries and the Philippines.
Sec. 451. Studies, reports, and other provisions.
Sec. 452. Monitoring compliance with Uruguay Round Agreements.
Sec. 453. Limitation on durum wheat export subsidies.
Sec. 454. Market promotion program.
Sec. 455. Export enhancement program.
Sec. 456. Monitoring compliance with sanitary and phytosanitary measures.
Sec. 457. Agricultural trade program flexibility.
Sec. 458. Sunflower seed oil and cottonseed oil export sales.
Sec. 459. Foreign market development cooperator program.
Subtitle D—Dairy Export Programs
Sec. 461. Authority to assist in establishment and maintenance of export trad-
ing company.
Sec. 462. Standby authority to designate entity to provide international market
development and export services.
Sec. 463. Assurance of equitable treatment, fair dealing and protection from
discriminatory practices for U.S. participants in the world mar-
ket for dairy products.
Sec. 464. Study and report regarding potential impact of Uruguay Round on
prices, income and government purchases.
TITLE V—EXTENSION OF RESEARCH AUTHORITIES
Sec. 501. Extension of national genetic resources program.
Sec. 502. Extension of national agricultural weather information system.
Sec. 503. Extension of research program regarding production, preparation,
processing, handling, and storage of agricultural products.
Sec. 504. Extension of water quality research, education, and coordination.
Sec. 505. Extension of livestock product safety and inspection program.
Sec. 506. Extension of mesquite research program.
Sec. 507. Extension of prickly pear research program.
Sec. 508. Extension of deer tick ecology and related research program.
Sec. 509. Extension of agricultural telecommunications program.
Sec. 510. Extension of national centers for agricultural product quality re-
search.
Sec. 511. Extension of pilot to coordinate food and nutrition education pro-
grams.
Sec. 512. Extension of assistive technology program for farmers with disabil-
ities.
Sec. 513. Extension of national rural information center clearinghouse.
Sec. 514. Extension of Indian subsistence farming demonstration grant pro-
gram.
Sec. 515. Extension of Joint Council on Food and Agricultural Sciences.
Sec. 516. Extension of National Agricultural Research and Extension Users
Advisory Board.
Sec. 517. Extension or program of grants and fellowships for food and agricul-
tural sciences education.
Sec. 518. Extension of grant program for research on the production and mar-
keting of alcohols and industrial hydrocarbons from agricul-
tural commodities and forest products.
Sec. 519. Extension of Food Science and Nutrition Research Center.
Sec. 520. Extension of nutrition education program.
Sec. 521. Extension of Animal Health Science Research Advisory Board.
Sec. 522. Extension of animal health and disease research programs.
Sec. 523. Extension of research on national or regional animal health or disease
problems.
Sec. 524. Extension of resident instruction program at 1890 land-grant col-
leges.
Sec. 525. Extension of grant program to upgrade agricultural and food sciences
facilities at 1890 land-grant colleges.
Sec. 526. Extension of national research and training centennial centers.
Sec. 527. Extension of miscellaneous research programs.
Sec. 528. Extension of extension education program.
Sec. 529. Extension of research and pilot project for the development of supple-
mental and alternative crops.
Sec. 530. Extension of aquaculture assistance programs.
Sec. 531. Extension of rangeland research program.
Sec. 532. Extension of dairy goat research program.
Sec. 533. Extension of construction program for Federal agricultural research
facilities.
Sec. 534. Extension of the Competitive, Special, and Facilities Research Grant
Act.
Sec. 535. Extension of the Research Facilities Act.
Sec. 536. Extension of critical agricultural materials research.
Sec. 537. Extension of pseudorabies eradication program.
TITLE VI—ISSUANCE OF ORDERS FOR PROMOTION, RE-
SEARCH, AND INFORMATION ACTIVITIES REGARDING
AGRICULTURAL COMMODITIES
Sec. 601. Short title.
Sec. 602. Findings and purpose.
Sec. 603. Definitions.
Sec. 604. Issuance of orders.
Sec. 605. Required terms in orders.
Sec. 606. Permissive terms in orders.
Sec. 607. Assessments.
Sec. 608. Petition and review of orders.
Sec. 609. Enforcement.
Sec. 610. Investigations and power to subpoena.
Sec. 611. Referenda.
Sec. 612. Suspension or termination.
Sec. 613. Amendments to orders.
Sec. 614. Effect on other laws.
Sec. 615. Regulations.
Sec. 616. Authorization of appropriations.
TITLE VII—MISCELLANEOUS PROVISIONS
Subtitle A—General Conservation Provisions
Sec. 701. Clarification of effect of resource planning on allocation or use of
water.
Sec. 702. Payment of filing fees by United States in connection with water
rights adjudications.
Sec. 703. Provision of technical assistance to State foresters.
Sec. 704. Repeal of State technical committees.
Sec. 705. Repeal of composting research and extension program.
Sec. 706. Repeal of Farms for the Future Act of 1990.
Sec. 707. Administration of environmental programs.
Sec. 708. Private grazing lands conservation assistance.
Subtitle B—Inspection
Sec. 721. Federal and State cooperation under Federal Meat Inspection Act.
Sec. 722. Federal and State cooperation under Poultry Products Inspection
Act.
Sec. 723. Establishment of Safe Meat and Poultry Inspection Panel.
TITLE I—AGRICULTURAL
CREDIT
Subtitle A—Amendments to the
Consolidated Farm and Rural
Development Act
SEC. 101. REFERENCES.
Except as otherwise expressly provided, wherever in
this subtitle an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Consolidated Farm and
Rural Development Act.
SEC. 102. REDIRECTION OF RESOURCES TO FAMILY FARM-
ERS.
(a) OWNERSHIP LOANS.—
(1) TARGETING TO FAMILY FARMERS.—
(A) IN
GENERAL.—Section 302(a) (7
U.S.C. 1922(a)) is amended to read as follows:
‘‘(a)(1) The Secretary may make loans under this
subtitle to any eligible applicant for such a loan.
‘‘(2) For purposes of paragraph (1), an individual
who has applied for a loan under this subtitle is an eligible
applicant if the individual—
‘‘(A) is a citizen of the United States;
‘‘(B) has training or farming experience that
the Secretary determines is sufficient to assure rea-
sonable prospects of success in the proposed farming
operation;
‘‘(C) is or will become an owner-operator of a
not larger than family farm in the United States;
and
‘‘(D) is unable to obtain sufficient credit else-
where to finance the needs of the individual relating
to the proposed farming operation at reasonable
rates and terms, taking into consideration prevailing
private and cooperative rates and terms in the com-
munity in or near which the individual resides for
loans for similar purposes and periods of time.
‘‘(3) For purposes of paragraph (1), a person (other
than an individual) who has applied for a loan under this
subtitle is an eligible applicant if—
‘‘(A) the person—
‘‘(i) is controlled by farmers and ranchers;
‘‘(ii) is engaged primarily and directly in
farming or ranching in the United States;
‘‘(iii) is or will become an owner-operator
of a not larger than family farm; and
‘‘(iv) is unable to obtain sufficient credit
elsewhere to finance the needs of the person re-
lating to the proposed farming operation at rea-
sonable rates and terms, taking into consider-
ation prevailing private and cooperative rates
and terms in the community in or near which
the person is located for loans for similar pur-
poses and periods of time; and
‘‘(B) each individual who has greater than a 15
percent ownership interest in the person meets the
requirements of paragraph (2).
‘‘(4) As used in this subsection, the term ‘person’
means an individual, a corporation, a partnership, a joint
venture, or any combination thereof.’’.
(B) CONFORMING AMENDMENTS.—
(i) Section 304(b) (7 U.S.C. 1924(b))
is amended by striking ‘‘clauses (2) and
(3) of section 302’’ and inserting ‘‘sub-
paragraphs 
(B) 
and 
(C) 
of 
section
302(a)(2)’’.
(ii) 
Section 
310D(a) 
(7 
U.S.C.
1934(a)) is amended by striking ‘‘para-
graphs (2) through (4) of section 302’’ and
inserting ‘‘subparagraphs (B), (C), and
(D) of section 302(a)(2)’’.
(iii) Section 359(c)(2) (7 U.S.C.
2006a(c)(2)) 
is 
amended 
by 
striking
‘‘302(a)(2)’’ and inserting ‘‘302(a)(2)(B)’’.
(2) 
ELIMINATION
OF
LOANS
FOR
REC-
REATIONAL USES AND FACILITIES.—
(A) IN
GENERAL.—Section 303(a) (7
U.S.C. 1923(a)) is amended by striking clause
(2) and redesignating clauses (3), (4), and (5)
as clauses (2), (3), and (4), respectively.
(B) CONFORMING AMENDMENTS.—Section
307(a)(6)(B) (7 U.S.C. 1927(a)(6)(B)) is
amended in each of clauses (i) and (vii) by
striking ‘‘clauses (2) and (3) of section 303(a)’’
and inserting ‘‘section 303(a)(2)’’.
(3) REFINANCING LIMITED TO LOANS RELATED
TO
FARM
OPERATIONS.—Section 
303(a)(3) 
(7
U.S.C. 1923(a)(3)), as so redesignated by paragraph
(2)(A) of this subsection, is amended by inserting
‘‘with respect to farming, ranching, or aquaculture
operations if such refinancing enhances significantly
the likelihood of repayment of such indebtedness’’
before the comma.
(b) OPERATING LOANS.—
(1) TARGETING TO FAMILY FARMERS.—
(A) IN
GENERAL.—Section 311(a) (7
U.S.C. 1941(a)) is amended to read as follows:
‘‘(a)(1) The Secretary may make loans under this
subtitle to any eligible applicant for such a loan.
‘‘(2) For purposes of paragraph (1), an individual
who has applied for a loan under this subtitle is an eligible
applicant if the individual—
‘‘(A) is a citizen of the United States;
‘‘(B) has training or farming experience that
the Secretary determines is sufficient to assure rea-
sonable prospects of success in the proposed farming
operation;
‘‘(C) is or will become an operator of a not
larger than family farm in the United States; and
‘‘(D) is unable to obtain sufficient credit else-
where to finance the needs of the individual relating
to the farming operation at reasonable rates and
terms, taking into consideration prevailing private
and cooperative rates and terms in the community
in or near which the individual resides for loans for
similar purposes and periods of time.
‘‘(3) For purposes of paragraph (1), a person (other
than an individual) who has applied for a loan under this
subtitle is an eligible applicant if—
‘‘(A) the person—
‘‘(i) is controlled by farmers and ranchers;
‘‘(ii) is engaged primarily and directly in
farming or ranching in the United States;
‘‘(iii) is or will become an operator of a not
larger than family farm; and
‘‘(iv) is unable to obtain sufficient credit
elsewhere to finance the needs of the person re-
lating to the proposed farming operation at rea-
sonable rates and terms, taking into consider-
ation prevailing private and cooperative rates
and terms in the community in or near which
the person is located for loans for similar pur-
poses and periods of time; and
‘‘(B) each individual who has greater than a 15
percent ownership interest in the person meets the
requirements of paragraph (2).
‘‘(4) As used in this subsection, the term ‘person’
means an individual, a corporation, a partnership, a joint
venture, or any combination thereof.’’.
(B) CONFORMING AMENDMENTS.—
(i) 
Section 
312(a)(5) 
(7 
U.S.C.
1924(a)(5)) is amended by striking ‘‘sec-
tion 311 (2) and (3)’’ and inserting ‘‘sub-
paragraphs 
(B) 
and 
(C) 
of 
section
311(a)(2)’’.
(ii) Section 312(b) (7 U.S.C. 1924(b))
is amended by striking ‘‘clauses (2) and
(3) of section 311(a)’’ and inserting ‘‘sub-
paragraphs 
(B) 
and 
(C) 
of 
section
311(a)(2)’’.
(iii) Section 359(c)(2) (7 U.S.C.
2006a(c)(2)) 
is 
amended 
by 
striking
‘‘311(a)(2)’’ and inserting ‘‘311(a)(2)(B)’’.
(2) REFINANCING LIMITED TO LOANS RELATED
TO
FARM
OPERATIONS.—Section 
312(a)(7) 
(7
U.S.C. 1942(a)(7)) is amended by inserting ‘‘with
respect to farming, ranching, or aquaculture oper-
ations if such refinancing enhances significantly the
likelihood of repayment of such indebtedness’’ before
the comma.
(3) ELIMINATION OF LOANS FOR OSHA COMPLI-
ANCE.—Section 312(a) (7 U.S.C. 1942(a)) is
amended by striking clause (10) and redesignating
clauses (11), (12), and (13) as clauses (10), (11),
and (12), respectively.
(c) EMERGENCY LOANS.—
(1) TARGETING TO FAMILY FARMERS.—Section
321(a) (7 U.S.C. 1961(a)) is amended to read as
follows:
‘‘(a)(1) The Secretary shall make loans under this
subtitle to any eligible applicant for such a loan.
‘‘(2) For purposes of paragraph (1), an individual
who has applied for a loan under this subtitle is an eligible
applicant if—
‘‘(A) the individual—
‘‘(i) is a citizen of the United States;
‘‘(ii) has training or farming experience
that the Secretary determines is sufficient to
assure reasonable prospects of success in the
proposed farming operation;
‘‘(iii) is or will become an operator of a not
larger than family farm in the United States;
and
‘‘(iv) is unable to obtain sufficient credit
elsewhere to finance the needs of the individual
relating to the proposed farming operation at
reasonable rates and terms, taking into consid-
eration prevailing private and cooperative rates
and terms in the community in or near which
the individual resides for loans for similar pur-
poses and periods of time; and
‘‘(B) the Secretary finds that the farming,
ranching, or aquaculture operations of the individual
have been substantially affected by—
‘‘(i) a natural disaster in the United
States; or
‘‘(ii) a major disaster or emergency des-
ignated by the President under the Disaster Re-
lief and Emergency Assistance Act.
‘‘(3) For purposes of paragraph (1), a person (other
than an individual) who has applied for a loan under this
subtitle is an eligible applicant if—
‘‘(A) the person—
‘‘(i) is controlled by farmers or ranchers;
‘‘(ii) is primarily engaged in farming,
ranching, or aquaculture in the United States;
‘‘(iii) is or will become an operator of a not
larger than family farm in the United States;
and
‘‘(iv) is unable to obtain sufficient credit
elsewhere to finance the needs of the person re-
lating to the proposed farming operation at rea-
sonable rates and terms, taking into consider-
ation prevailing private and cooperative rates
and terms in the community in or near which
the person is located for loans for similar pur-
poses and periods of time;
‘‘(B) each individual who has greater than a 15
percent ownership interest in the person meets the
requirements of paragraph (2)(A); and
‘‘(C) the Secretary finds that the farming,
ranching, or aquaculture operations of the person
have been substantially affected by—
‘‘(i) a natural disaster in the United
States; or
‘‘(ii) a major disaster or emergency des-
ignated by the President under the Disaster Re-
lief and Emergency Assistance Act.
‘‘(4)(A) The Secretary shall accept applications from,
and make loans pursuant to this subtitle to, applicants
otherwise eligible for such a loan, that conduct farming,
ranching, or aquaculture operations in any county contig-
uous to a county where the Secretary has found that farm-
ing, ranching, or aquaculture operations have been sub-
stantially affected by—
‘‘(i) a natural disaster in the United States; or
‘‘(ii) a major disaster or emergency designated
by the President under the Disaster Relief and
Emergency Assistance Act.
‘‘(B) The Secretary shall accept applications for as-
sistance under this subtitle from applicants affected by a
natural disaster at any time during the 8-month period
beginning on—
‘‘(i) the date on which the Secretary determines
that farming, ranching, or aquaculture operations
have been substantially affected by the natural dis-
aster; or
‘‘(ii) the date on which the President makes the
major disaster or emergency designation with re-
spect to the natural disaster.
‘‘(5) The authority provided by this subsection shall
be effective only to the extent or in such amounts as are
provided in advance in appropriations Acts.
‘‘(6) As used in this subsection, the term ‘person’
means an individual, a corporation, a partnership, a joint
venture, or any combination thereof.’’.
(2) CONFORMING
AMENDMENT.—Section 329
(7 U.S.C. 1970) is amended by striking ‘‘a single
enterprise which constitutes a basic part of’’.
SEC. 103. REDIRECTION OF RESOURCES TO INCOME-PRO-
DUCING ACTIVITIES.
(a) ELIMINATION OF OWNERSHIP LOANS FOR THE
ACQUISITION, INSTALLATION, 
OR
MODIFICATION
OF
QUALIFIED NON-FOSSIL ENERGY SYSTEMS.—
(1) IN GENERAL.—Section 303 (7 U.S.C. 1923)
is amended—
(A) by striking ‘‘(a)’’; and
(B) by striking subsection (b).
(2) 
CONFORMING
AMENDMENTS.—Section
307(a)(6)(B) (7 U.S.C. 1927(a)(6)(B)), as amended
by section 102(a)(2)(B) of this Act, is amended in
each of clauses (i) and (vii) by striking ‘‘section
303(a)(2)’’ and inserting ‘‘section 303(2)’’.
(b) ELIMINATING OF OWNERSHIP LOANS FOR THE
CONSTRUCTION
OF
CONSERVATION
STRUCTURES
OR
NON-INCOME-PRODUCING CONSERVATION PRACTICES.—
Section 304 (7 U.S.C. 1924) is amended—
(1) by striking subsection (a) and inserting:
‘‘(a)(1) Loans may be made to farm owners or ten-
ants who are eligible borrowers under this subtitle for—
‘‘(A) the establishment of forest cover for sus-
tained yield timber management;
‘‘(B) the establishment or improvement of per-
manent pasture; or
‘‘(C) the construction or improvement of envi-
ronmental structures or systems required by Federal
or State statute.
‘‘(2) The Secretary shall not make a loan under this
section that exceeds the lesser of—
‘‘(A) the value of the farm or other security for
such loan; or
‘‘(B) $50,000.’’; and
(2) by striking subsection (c).
(c) ELIMINATION OF OPERATING LOANS FOR THE
DEVELOPMENT AND CONSTRUCTION OF SOLAR ENERGY
SYSTEMS.—Section 312(a) (7 U.S.C. 1942(a)), as amend-
ed by section 102(b)(3) of this Act, is amended—
(1) by striking clause (10) and redesignating
clauses (11) and (12) as clauses (10) and (11), re-
spectively; and
(2) by striking the 2nd sentence.
(d) ELIMINATION OF AUTHORITY TO ACQUIRE EASE-
MENTS FOR CONSERVATION, RECREATIONAL, OR WILD-
LIFE PURPOSES.—Section 349 (7 U.S.C. 1997) is re-
pealed.
(e) ELIMINATION
OF AUTHORITY TO TRANSFER
CERTAIN INVENTORY LANDS.—Section 354 (7 U.S.C.
2002) is repealed.
(f) CONFORMING AMENDMENTS.—Section 335 (7
U.S.C. 1985) is amended—
(1) in subsection (c)(1)—
(A) by striking ‘‘, other than easements ac-
quired under section 349’’; and
(B) by striking the last sentence and in-
serting ‘‘Notwithstanding the preceding sen-
tence, the Secretary may sell an easement, re-
striction, development rights, or the equivalent
thereof, to a unit of local or State government
or a private nonprofit organization for con-
servation purposes at its fair market value.’’;
(2) in subsection (e)(7), by striking ‘‘sale or’’;
and
(3) by striking subsection (g).
SEC. 104. IMPROVEMENT OF LOAN PORTFOLIO MANAGE-
MENT.
(a) EXPANSION OF AUTHORITY TO REQUIRE ADDI-
TIONAL COLLATERAL TO SECURE A FARMER PROGRAM
LOAN.—Section 307(e)(1) (7 U.S.C. 1927(e)(1)) is
amended by striking ‘‘, if the borrower is current in the
payment of principal and interest on the loan’’ and insert-
ing ‘‘unless the fair market value of the collateral securing
the loan is less than 80 percent of the total of the principal
and any unpaid accrued interest on the loan’’.
(b) LINKING OF EMERGENCY LOANS FOR CROP OR
LIVESTOCK CHANGES TO NATURAL DISASTERS.—Section
323 (7 U.S.C. 1963) is amended by inserting ‘‘which are
necessitated by a natural disaster, major disaster, or
emergency and which are’’ after ‘‘livestock changes’’.
(c) ESTABLISHMENT OF DATE CERTAIN FOR EMER-
GENCY LOAN ASSET VALUATION.—Section 324(d) (7
U.S.C. 1962(d)) is amended in the last sentence by strik-
ing all that follows ‘‘shall’’ and inserting ‘‘establish the
value of the assets as of the day before the occurrence
of the natural disaster, major disaster, or emergency
which gave rise to the request for assistance under this
subtitle or under the Disaster Relief and Emergency As-
sistance Act.’’.
(d) CREATION OF MEASURABLE STANDARD FOR DE-
FERRAL OF LOAN PRINCIPAL AND FOREGOING FORE-
CLOSURE.—Section 331A (7 U.S.C. 1981a) is amended
to read as follows:
‘‘SEC. 331A. ADDITIONAL AUTHORITY TO DEFER PRINCIPAL
PAYMENTS AND FOREGO FORECLOSURE.
‘‘In addition to any other authority that the Secretary
may have to defer principal and forego foreclosure, the
Secretary may, at the request of the borrower, permit the
deferral of principal only on any outstanding loan made,
insured, or held by the Secretary under this title or under
any other law administered by the Consolidated Farm
Services Agency, and may forego foreclosure on any such
loan for such period as the Secretary deems necessary,
upon a showing by the borrower that—
‘‘(1) due to circumstances beyond the borrow-
er’s control that could not have been anticipated by
the borrower, the borrower is temporarily unable to
continue making payments of such principal when
due without using funds needed to provide for the
basic family needs of the borrower and the imme-
diate family of the borrower; and
‘‘(2) the borrower has the ability to continue
making a portion of the interest payments on such
loan when due throughout the anticipated deferral
period.’’.
(e) SIMPLIFICATION OF NOTICE TO BE PROVIDED TO
DELINQUENT BORROWERS.—Section 331D (7 U.S.C.
1981d) is amended—
(1) in subsection (a), by striking ‘‘180 days de-
linquent’’ and inserting ‘‘30 days past due’’; and
(2) by striking subsections (b), (c), (d), and (e)
and inserting the following:
‘‘(b) CONTENTS.—The notice required under sub-
section (a) shall inform the borrower of—
‘‘(1) appeal rights;
‘‘(2) available restructuring options under this
title; and
‘‘(3) the consequences of continued delin-
quency.’’.
(f) PROVIDING AN ANNUAL REVIEW OF THE CREDIT
HISTORY, BUSINESS OPERATION AND CONTINUED ELIGI-
BILITY OF A BORROWER.—
(1) IN GENERAL.—Section 333 (7 U.S.C. 1983)
is amended by redesignating paragraphs (2), (3),
and (4) as paragraphs (3), (4), and (5), respectively,
and by inserting after paragraph (1) the following:
‘‘(2) the county or area committee, as appro-
priate, under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to
certify in writing that it has performed an annual
review of the credit history and business operation
of a borrower (other than a borrower under section
306, 310B, or 314), and its opinion as to the contin-
ued eligibility of that borrower for such a loan;’’.
(2) 
CONFORMING
AMENDMENT.—Section
310B(a) (7 U.S.C. 1932(a)) is amended in the 3rd
sentence by striking ‘‘(3)’’ and inserting ‘‘(4)’’.
(g) ELIMINATION OF THE SALES RESTRICTIONS ON
INVENTORY PROPERTY.—
(1) IN
GENERAL.—Section 335 (7 U.S.C.
1985), as amended by sections 103(f)(2) and
108(f)(33) of this Act, is amended—
(A) in subsection (b), by striking ‘‘Except
as provided in subsection (e), real’’ and insert-
ing ‘‘Real’’;
(B) in subsection (c)—
(i) by striking ‘‘(1) Except as pro-
vided in subsection (e), the’’ and inserting
‘‘The’’;
(ii) by striking the 2nd sentence; and
(iii) by striking paragraph (2); and
(C) by striking subsections (e) and (f).
(2) CONFORMING AMENDMENTS.—
(A) Section 602(5) of the Agricultural Act
of 1949 (7 U.S.C. 1471(5)) is amended by in-
serting ‘‘(as in effect before the date of the en-
actment of the Agricultural Regulatory Relief
and Trade Act of 1996)’’ before the last close
parenthesis.
(B) Section 343(b) (7 U.S.C. 1991(b)) is
amended by striking ‘‘335 (e) and (f),’’.
(h) ELIMINATION OF DEBT RESTRUCTURING AND
LOAN SERVICING.—
(1) GENERAL
PROVISIONS.—Section 353 (7
U.S.C. 2001) is repealed.
(2) PROVISIONS
APPLICABLE
TO
COMMUNITY
FACILITY LOANS.—Section 353A (7 U.S.C. 2001a)
is repealed.
(3) CONFORMING AMENDMENTS.—
(A) Section 343(b) (7 U.S.C. 1991(b)) is
amended by striking ‘‘353,’’.
(B) Section 357(b) (7 U.S.C. 2005(b)) is
amended by striking paragraph (3).
(i) SHORT FORM CERTIFICATION OF PROGRAM COM-
PLIANCE.—Subtitle D (7 U.S.C. 1981–2008f) is amended
by adding at the end the following:
‘‘SEC. 372. SHORT FORM CERTIFICATION OF FARM PRO-
GRAM BORROWER COMPLIANCE.
‘‘The Secretary shall develop and utilize a consoli-
dated short form for farm program borrowers to use in
certifying compliance with any and all applicable statutes
and regulations which serve as eligibility prerequisites for
loans made under this title.’’.
(j) EFFECT OF PRIOR DEFAULT, DEFERRAL, DEBT
RESTRUCTURING, OR LOAN SERVICING ON ELIGIBILITY
FOR LOANS.—Subtitle D (7 U.S.C. 1981–2008f), as
amended by subsection (i) of this section, is amended by
adding at the end the following:
‘‘SEC. 373. EFFECT OF PRIOR DEFAULT, DEFERRAL, DEBT
RESTRUCTURING, OR LOAN SERVICING ON
ELIGIBILITY FOR LOANS.
‘‘Notwithstanding any other section of this title, the
Secretary shall not make any loan under this title to an
applicant if the applicant (or, in the case of a legal entity
which is an applicant, an individual who has greater than
a 15 percent ownership interest in the applicant) has de-
faulted on a loan made or insured under this title, had
the principal or interest on a loan made or insured under
this title deferred under section 331A, or had a loan made
or insured under this title restructured or serviced under
section 353, unless the default, deferral, restructuring, or
servicing resulted from circumstances that were beyond
the control of the applicant or individual, and that could
not have been reasonably anticipated by the applicant or
individual.’’.
SEC. 105. ASSURING PROMPT REPAYMENT OF LOANS.
(a) NARROWING OF USE OF NONSUPERVISED BANK
ACCOUNTS.—Section 312(e) (7 U.S.C. 1942(e)) is amend-
ed to read as follows:
‘‘(e)(1) Notwithstanding any other provision of this
title, the Secretary shall reserve a portion of any loan
made under this subtitle to be placed in a nonsupervised
bank account which may be used at the discretion of the
borrower for the basic family needs of the borrower and
the immediate family of the borrower.
‘‘(2) The size of any such reserve shall be limited to
the least of—
‘‘(A) 10 percent of the loan;
‘‘(B) $5,000; or
‘‘(C) the amount needed to provide for the basic
family needs of the borrower and the borrower’s im-
mediate family for 3 calendar months.’’.
(b) REDUCTION
OF
THE LIMIT
ON EMERGENCY
LOANS.—Section 324(a) (7 U.S.C. 1964(a)) is amended
by striking ‘‘$500,000’’ and inserting ‘‘$300,000’’.
(c) NARROWING OF AUTHORITY TO WAIVE APPLICA-
TION
OF
THE
CREDIT
ELSEWHERE
TEST.—Section
322(b) (7 U.S.C. 1962(b)) is amended in the 2nd proviso
by striking ‘‘$300,000’’ and inserting ‘‘$10,000’’.
SEC. 106. MODIFICATION OF PROGRAMS FOR BEGINNING
FARMERS.
(a) ESTABLISHMENT
OF LOAN GUARANTEE PRO-
GRAM.—Section 309(h)(1) (7 U.S.C. 1929(a)(1)) is
amended by adding at the end the following: ‘‘In the case
of a loan made to a beginning farmer (as defined by the
Secretary in regulations), the guarantee shall be for the
payment of 98 percent of loan principal and interest.’’.
(b) ENHANCEMENT OF INTEREST RATE BUYDOWN
PROGRAM.—Section 351(c) (7 U.S.C. 1999(c)) is amend-
ed by inserting ‘‘(or 6 percent, in the case of a loan made
to a beginning farmer, as defined by the Secretary)’’ be-
fore the period.
(c) ELIMINATION OF DOWN PAYMENT LOAN PRO-
GRAM.—Section 310E (7 U.S.C. 1935) is repealed.
(d) ELIMINATION OF LIMITATIONS ON THE AVAIL-
ABILITY OF FARM OWNERSHIP LOANS AND LOAN GUAR-
ANTEES.—Section 310F (7 U.S.C. 1936) is repealed.
(e) SIMPLIFICATION OF SPECIAL ASSISTANCE PRO-
GRAM.—Section 318 (7 U.S.C. 1948) is amended to read
as follows:
‘‘SEC. 318. SPECIAL ASSISTANCE TO CERTAIN QUALIFIED
BEGINNING FARMERS AND RANCHERS.
‘‘(a) IN GENERAL.—The Secretary shall provide spe-
cial assistance in accordance with this section to enable
certain qualified beginning farmers or ranchers to conduct
viable farming or ranching operations.
‘‘(b) APPLICATION.—A qualified beginning farmer or
rancher may apply for special assistance under this section
by submitting to the Secretary an application which con-
tains—
‘‘(1) a plan for special assistance which de-
scribes how assistance provided under this section
will be used in conducting a farming or ranching op-
eration; and
‘‘(2) such other information as may be required
by the Secretary.
‘‘(c) DETERMINATIONS BY THE COUNTY COMMIT-
TEE; APPROVAL OF PLAN.—The county committee shall
approve a plan for special assistance submitted by an ap-
plicant pursuant to subsection (b) if the county committee
determines that—
‘‘(1) the applicant has not operated a farm or
ranch, or has operated a farm or ranch for not more
than 5 years;
‘‘(2) the applicant owns, leases, or has a com-
mitment to have leased to the applicant the site or
sites of the operation; and
‘‘(3) there is, or will be, available to the appli-
cant equipment sufficient to conduct the operation
in accordance with the plan.
‘‘(d) DETERMINATION
BY
THE SECRETARY; AP-
PROVAL OF APPLICATION FOR ASSISTANCE.—Except as
provided in subsection (f)(2), the Secretary shall approve
an application submitted pursuant to subsection (b) for
an operation described in a plan approved by a county
committee under this section if the Secretary determines
that during the commitment period established in accord-
ance with subsection (e)(1), the operation will be finan-
cially viable, as determined by the Secretary.
‘‘(e) PROVISION OF ASSISTANCE.—
‘‘(1) DETERMINATION
OF
COMMITMENT
PE-
RIOD.—
‘‘(A) INITIAL
DETERMINATION.—In ap-
proving an application under subsection (d), the
Secretary shall, subject to subparagraph (C),
determine the period during which assistance
under this section is to be provided for the op-
eration described in the application (referred to
in this subsection as the ‘commitment period’).
‘‘(B) AUTHORITY TO EXTEND PERIOD.—At
any time, the Secretary may, subject to sub-
paragraph (C) of this paragraph and sub-
sections (f) and (g), extend or reduce the dura-
tion of the commitment period.
‘‘(C) LIMITATIONS.—The duration of any
commitment period (including any extension of
the period) shall not exceed 10 years and shall
be consistent with section 319.
‘‘(2) OPERATING LOANS; LOAN GUARANTEES.—
To the extent that an applicant whose application is
approved under subsection (d) is unable to obtain
sufficient credit from commercial or cooperative
lenders to finance the operation described in the ap-
plication at reasonable rates and terms, the Sec-
retary shall, subject to the availability of funds, sub-
ject to subsection (f), and consistent with sections
360 and 362, make a conditional commitment to the
applicant for each year of the commitment period
to provide to any commercial or cooperative lender
who makes a loan to the applicant that is within
the credit needs of the operation (as specified in the
plan contained in the application) a guarantee under
section 309(h), which, for purposes of this section,
shall be of an amount equal to the lesser of—
‘‘(A) the minimum total amount of loan
principal and interest necessary to induce such
a lender to make such a loan to the applicant;
or
‘‘(B) 90 percent of the total amount of
loan principal and interest.
‘‘(3) LOANS OR GUARANTEES FOR NEW OR IM-
PROVED EQUIPMENT.—The Secretary shall make a
commitment to any applicant whose application is
approved under subsection (d) of this section to pro-
vide the applicant with loan guarantees under sec-
tion 309(h) to finance the acquisition, improvement,
or repair of equipment needed in the operation de-
scribed in the application if the plan contained in
the application provides for the commitment, to the
extent that the applicant is unable to obtain suffi-
cient credit from commercial or cooperative lenders
for such purposes at reasonable rates and terms.
‘‘(f) EFFECTS OF AVOIDABLE FAILURE TO ACHIEVE
GOALS.—
‘‘(1) REVOCATION
OF
COMMITMENTS.—The
Secretary shall revoke any commitment for assist-
ance made to an applicant under this section if the
operation of the applicant fails, for 2 consecutive
years, to meet the goals specified in the plan, unless
the failure has not materially reduced the likelihood
of the operation becoming financially viable and is
due to circumstances beyond the control of the appli-
cant.
‘‘(2) PERMANENT INELIGIBILITY FOR ASSIST-
ANCE.—An applicant with respect to whom a revoca-
tion is made under paragraph (1) shall not be eligi-
ble for assistance under this section.’’.
(f) ELIMINATION OF DEMONSTRATION PROJECT.—
Section 351 (7 U.S.C. 1999), as amended by section
108(f)(42) of this Act, is amended by striking subsection
(h).
(g) CONFORMING AMENDMENTS.—
(1) Section 305 (7 U.S.C. 1925) is amended by
striking ‘‘310D, and 310E’’ and inserting ‘‘or
310D’’.
(2) Section 309 (7 U.S.C. 1929) is amended by
striking subsections (h)(3) and (i).
(3) Section 343(b) (7 U.S.C. 1991(b)) is
amended by striking ‘‘351(h),’’.
(4) Section 346(b) (7 U.S.C. 1994(b)) is
amended—
(A) in paragraph (3), by striking subpara-
graphs (E) and (F) and redesignating subpara-
graph (G) as subparagraph (E); and
(B) by striking paragraphs (5) and (6).
SEC. 107. ELIMINATION OF TARGET PARTICIPATION RATES.
(a) REPEAL.—Section 355 (7 U.S.C. 2003) is re-
pealed.
(b) CONFORMING AMENDMENTS.—
(1) 
Section 
346(b)(3)(D) 
(7 
U.S.C.
1994(b)(3)(D)) is amended by striking ‘‘To the ex-
tent that it is not inconsistent with an exercise of
authority under section 355, in’’ and inserting ‘‘In’’.
(2) Section 2501(c)(2)(D) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279(c)(2)(D)) is amended by striking ‘‘com-
pared to the target participation rates established
pursuant to sections 355(a)(1) and 355(c) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2003(a)(1)),’’.
(3) Section 8(b)(5)(B)(iv) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C.
590h(b)(5)(B)(iv)) is amended by striking ‘‘groups’’
and all that follows and inserting ‘‘groups. For pur-
poses of the preceding sentence, the term ‘socially
disadvantaged groups’ means groups whose members
have been subjected to racial, ethnic, or gender prej-
udice because of their identity as members of a
group without regard to their individual qualities.’’.
SEC. 108. MISCELLANEOUS AND CONFORMING AMEND-
MENTS.
(a) CLARIFICATION OF WRITTEN STATEMENT RE-
QUIRED
OF BORROWERS.—Section 333(1) (7 U.S.C.
1983(1)) is amended by striking ‘‘a written statement
showing the applicant’s net worth’’ and inserting ‘‘an ap-
propriate written financial statement’’.
(b) EXTENSION
OF VETERANS PREFERENCE
TO
VETERANS
OF
THE GULF WAR.—Section 333(5) (7
U.S.C. 1983(5)), as so redesignated by section 104(f)(1)
of this Act, is amended by striking ‘‘or the Vietnam era’’
and inserting ‘‘, during the Vietnam era, or during the
liberation of Kuwait under Project Desert Shield or
Project Desert Storm,’’.
(c) VERIFICATION
OF
THE CREDIT ELSEWHERE
TEST.—Section 333A(e)(4) (7 U.S.C. 1983a(e)(4)) is
amended by striking ‘‘With the approval of the borrower,
the’’ and inserting ‘‘The’’.
(d) ELIMINATION
OF REQUIREMENT TO TESTIFY
AND REPORT ON BUDGET REQUEST.—Section 345 (7
U.S.C. 1993) is repealed.
(e) ELIMINATION OF REQUIREMENT TO DEVELOP
AND REPORT ON LONG-TERM COST PROJECTIONS.—Sec-
tion 346(c) (7 U.S.C. 1994(c)) is repealed.
(f) ELIMINATION
OF
AUTHORITY
TO
INSURE
LOANS.—
(1) Section 302(b) (7 U.S.C. 1922(b)) is
amended by striking ‘‘or insured’’.
(2) Section 303 (7 U.S.C. 1923), as amended
by section 103(a)(1) of this Act, is amended by
striking ‘‘or insured’’.
(3) Section 304(b) (7 U.S.C. 1924(b)) is
amended by striking ‘‘or insured’’.
(4) Section 305 (7 U.S.C. 1925) is amended by
striking ‘‘or insure’’.
(5) Section 306(a)(1) (7 U.S.C. 1926(a)(1)) is
amended—
(A) by striking ‘‘or insure’’; and
(B) by striking ‘‘or insured’’.
(6) 
Section 
306(a)(15)(A) 
(7 
U.S.C.
1926(a)(15)(A)) is amended—
(A) by striking ‘‘or insure’’; and
(B) by striking ‘‘or insured’’.
(7) Section 306C(a)(1) (7 U.S.C. 1926c(a)(1))
is amended by striking ‘‘or insure’’.
(8) Section 306C(b)(1) (7 U.S.C. 1926c(b)(1))
is amended by striking ‘‘or insure’’.
(9) 
Section 
307(a)(6)(A) 
(7 
U.S.C.
1927(a)(6)(A)) is amended by striking ‘‘or insured’’.
(10) Section 307(c) (7 U.S.C. 1927(c)) is
amended by striking ‘‘, insured,’’.
(11) Section 308 (7 U.S.C. 1928) is amended
by striking the 1st sentence.
(12) Section 309(f)(1) (7 U.S.C. 1929(f)(1)) is
amended—
(A) by striking ‘‘could be’’ and inserting
‘‘(before the date of the enactment of the Agri-
cultural Regulatory Relief and Trade Act of
1996) could have been’’; and
(B) by striking ‘‘and insure’’.
(13) Section 309(f)(2) (7 U.S.C. 1929(f)(2)) is
amended by striking ‘‘or hereafter’’.
(14) Section 309A (7 U.S.C. 1929a) is amend-
ed in each of subsections (d) and (e) by striking ‘‘,
guaranteed, or insured’’ and inserting ‘‘or guaran-
teed’’.
(15) 
Section 
309A(g)(1) 
(7 
U.S.C.
1929a(g)(1)) is amended—
(A) by striking ‘‘could be’’ and inserting
‘‘(before the date of the enactment of the Agri-
cultural Regulatory Relief and Trade Act of
1996) could have been’’; and
(B) by striking ‘‘and insure’’.
(16) Section 309A(g) (7 U.S.C. 1929a(g)) is
amended in each of paragraphs (2) and (7) by strik-
ing ‘‘or hereafter’’.
(17) Section 310A (7 U.S.C. 1931) is repealed.
(18) Section 310B(a) (7 U.S.C. 1932(a)) is
amended—
(A) by striking ‘‘and insure’’; and
(B) by striking ‘‘, insured,’’.
(19) Section 310B(e)(1) (7 U.S.C. 1932(e)(1))
is amended by striking ‘‘insure and’’.
(20) Section 310B(e)(2) (7 U.S.C. 1932(e)(2))
is amended by striking ‘‘insure or’’.
(21) Section 310D(a) (7 U.S.C. 1934(a)) is
amended by striking ‘‘and insure’’.
(22) Section 311(c) (7 U.S.C. 1941(c)) is
amended by striking ‘‘or insured’’.
(23) Section 313 (7 U.S.C. 1943) is amended
by striking ‘‘or insure’’.
(24) Section 316(a)(3) (7 U.S.C. 1946(a)(3)) is
amended by striking ‘‘or insured’’.
(25) Section 317 (7 U.S.C. 1947) is repealed.
(26) Section 322(a) (7 U.S.C. 1962(a)) is
amended by striking ‘‘or insure’’.
(27) Section 323 (7 U.S.C. 1963) is amended
by striking ‘‘or insured’’.
(28) Section 324(a) (7 U.S.C. 1964(a)) is
amended by striking ‘‘or insured’’.
(29) Section 324(b)(2) (7 U.S.C. 1964(b)(2)) is
amended—
(A) by striking clause (A); and
(B) by striking ‘‘(B)’’.
(30) Section 328 (7 U.S.C. 1968) is repealed.
(31) Section 333A (7 U.S.C. 1983a) is amend-
ed by striking subsection (b).
(32) Section 333A(f) (7 U.S.C. 1983a(f)) is
amended in each of paragraphs (4) and (5) by strik-
ing ‘‘an insured’’ and inserting ‘‘a’’.
(33) 
Section 
335(e)(5)(A) 
(7 
U.S.C.
1985(e)(5)(A)) is amended by striking ‘‘made or in-
sured’’.
(34) Section 343(a)(4) (7 U.S.C. 1991(a)(4)) is
amended by striking ‘‘word ‘insure’ as used in this
title includes guarantee, which means’’ and inserting
‘‘term ‘guarantee’ means’’.
(35) Section 343(a)(9) (7 U.S.C. 1991(a)(9)) is
amended by striking ‘‘or insured’’.
(36) Section 344 (7 U.S.C. 1992) is amended
by striking ‘‘insured, or made to be sold and in-
sured,’’.
(37) Section 346(a) (7 U.S.C. 1994(a)) is
amended by striking ‘‘and insured’’.
(38) Section 346(b)(1) (7 U.S.C. 1994(b)(1)) is
amended by striking ‘‘insured, made to be sold and
insured, or’’.
(39) Section 346(b)(3) (7 U.S.C. 1994(b)(3)),
as amended by sections 106(g)(4) and 107(b)(1) of
this Act, is amended by striking subparagraphs (B)
and (D) and redesignating subparagraphs (C) and
(E) as subparagraphs (B) and (C), respectively.
(40) Section 346(d)(1) (7 U.S.C. 1994(d)(1)) is
amended by striking ‘‘authorized to be insured, or
made to be sold and insured,’’ and inserting
‘‘made’’.
(41) Section 348 (7 U.S.C. 1996) is amended—
(A) by striking ‘‘and insuring’’;
(B) by striking ‘‘and insure’’; and
(C) by striking ‘‘or insured’’.
(42) 
Section 
351(h)(8)(C) 
(7 
U.S.C.
1999(h)(8)(C)) is amended by striking ‘‘, insured, ’’.
(43) Section 358 (7 U.S.C. 2006) is amended
by striking ‘‘, insure,’’.
Subtitle B—Amendments to the
Farm Credit Act of 1971
SEC. 151. REFERENCES.
Except as otherwise expressly provided, wherever in
this subtitle an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Farm Credit Act of 1971.
SEC. 152. REPEAL OF REQUIREMENTS RELATING TO RE-
VIEW OF DECISIONS TO DENY OR REDUCE
THE AMOUNT OF A LOAN.
(a) REPEAL.—Section 4.14 (12 U.S.C. 2202) is re-
pealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 4.13B (12 U.S.C. 2201) is amended
in each of subsections (a) and (b)—
(A) by adding ‘‘and’’ at the end of para-
graph (1);
(B) by striking ‘‘; and’’ at the end of para-
graph (2) and inserting a period; and
(C) by striking paragraph (3).
(2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.
2202a(a)(5)(B)(ii)(I)) 
is 
amended 
by 
striking
‘‘4.14,’’.
(3) Section 8.9 (12 U.S.C. 2279aa–9) is
amended by striking ‘‘4.14,’’ each place such term
appears.
SEC. 153. PROHIBITION AGAINST RESTRUCTURING OF RE-
STRUCTURED LOANS OR LOANS INVOLVED IN
BANKRUPTCY PROCEEDINGS.
(a) IN
GENERAL.—Section 4.14A(a)(5)(A) (12
U.S.C. 2202a(a)(5)(A)) is amended by inserting ‘‘, which
has not been restructured under this section and with re-
spect to which the borrower has not filed a petition for
bankruptcy under title 11, United States Code’’ before the
period.
(b) ELIMINATION OF REQUIRED REPORTS TO THE
FARM CREDIT ADMINISTRATION.—Section 4.14A (12
U.S.C. 2202a) is amended by striking subsections (g) and
(h) and inserting the following:
‘‘(g) RESTRUCTURING POLICY.—
‘‘(1) ESTABLISHMENT.—Within 60 days after
the date of the enactment of this paragraph, the
board of directors of each qualified lender shall de-
velop a policy that is consistent with this section, to
govern the restructuring of distressed loans.
‘‘(2) CONTENTS OF POLICY.—The policy estab-
lished under paragraph (1) shall include an expla-
nation of the procedure for submitting an applica-
tion for restructuring.’’.
(c) RELATED AMENDMENTS.—Section 4.14A (12
U.S.C. 2202a) is amended by striking subsections (k) and
(l).
(d) CONFORMING AMENDMENTS.—
(1) Section 4.14A (12 U.S.C. 2202a) is amend-
ed by redesignating subsections (i) and (j) as sub-
sections (h) and (i), respectively.
(2) Section 5.31 (12 U.S.C. 2267) is amended
by striking ‘‘4.14A(i)’’ and inserting ‘‘4.14A(h)’’.
(3) Section 5.32(h) (12 U.S.C. 2268(h)) is
amended by striking ‘‘4.14A(i)’’ and inserting
‘‘4.14A(h)’’.
SEC. 154. REPEAL OF RULES GOVERNING EFFECT OF RE-
STRUCTURING ON BORROWER STOCK.
(a) REPEAL.—Section 4.14B (12 U.S.C. 2202b) is
repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 4.9A(b) (12 U.S.C. 2162(b)) is
amended—
(A) by adding ‘‘or’’ at the end of para-
graph (1);
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as
paragraph (2).
(2) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.
2202a(a)(5)(B)(ii)(I)) 
is 
amended 
by 
striking
‘‘4.14B,’’.
(3) Section 8.9 (12 U.S.C. 2279aa–9) is
amended by striking ‘‘4.14B,’’ each place such term
appears.
SEC. 155. REPEAL OF RULES GOVERNING REVIEW OF RE-
STRUCTURING DENIALS.
(a) REPEAL.—Section 4.14C (12 U.S.C. 2202c) is re-
pealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 4.14A(a)(5)(B)(ii)(I) (12 U.S.C.
2202a(a)(5)(B)(ii)(I)) 
is 
amended 
by 
striking
‘‘4.14C, 4.14D,’’ and inserting ‘‘4.14D’’.
(2) Section 8.9 (12 U.S.C. 2279aa–9) is
amended by striking ‘‘4.14C,’’ each place such term
appears.
SEC. 156. ELIMINATION OF CERTAIN REQUIREMENTS RE-
LATING TO LOANS PLACED IN NONACCRUAL
STATUS.
Section 4.14D (12 U.S.C. 2202d) is amended by
striking subsection (d).
SEC. 157. LIMITATIONS ON THE RIGHT OF FIRST REFUSAL.
Section 4.36 (12 U.S.C. 2219a) is amended—
(1) in subsection (a), by striking ‘‘or lease’’;
(2) in subsection (b)(1)—
(A) by striking ‘‘Within’’ and inserting
‘‘Except as otherwise provided in subsection (c),
within’’; and
(B) by inserting ‘‘by private sale,’’ after
‘‘such real estate,’’;
(3) by striking subsection (c) and redesignating
subsections (d) through (g) as subsections (c)
through (f), respectively;
(4) by redesignating subsections (h) and (i) as
subsections (j) and (k), respectively; and
(5) by inserting after subsection (f) (as so re-
designated by paragraph (3) of this section) the fol-
lowing:
‘‘(g) PREVIOUS OWNER DEFINED.—As used in this
section, the term ‘previous owner’ does not include a mort-
gagor or grantor of an equivalent lien interest in agricul-
tural real estate unless such person is also a borrower in
the transaction.
‘‘(h) PERSONAL AND NONASSIGNABLE RIGHT.—The
right of first refusal arising under this section is personal
to, and not assignable by, the previous owner.
‘‘(i) RULE OF INTERPRETATION.—This section shall
not be interpreted to preclude a borrower from voluntarily
waiving the right of first refusal arising under this section
in connection with a voluntary conveyance of agricultural
real estate in lieu of foreclosure.’’.
TITLE II—RURAL DEVELOPMENT
SEC. 201. CAPITALIZATION GRANTS TO STATES FOR RURAL
DEVELOPMENT.
The Rural Development Act of 1972 is amended by
adding at the end the following:
‘‘TITLE 
VII—CAPITALIZATION
GRANTS 
TO 
STATES 
FOR
RURAL DEVELOPMENT
‘‘SEC. 701. PURPOSES.
‘‘The purpose of this title is to provide eligible States
and territories with a consolidated source of funding for
rural development, and to encourage States to establish
revolving funds through which rural development may be
financed permanently.
‘‘SEC. 702. GRANTS.
‘‘(a) GRANT AUTHORITY.—
‘‘(1) IN GENERAL.—
‘‘(A) GRANTS TO ELIGIBLE STATES.—Each
eligible State shall be entitled to receive from
the Secretary for each fiscal year a grant in an
amount equal to the applicable share of 99.25
percent of the amount (if any) appropriated
pursuant to this subsection for the fiscal year.
‘‘(B) 
GRANTS
TO
ELIGIBLE
TERRI-
TORIES.—Each eligible territory shall be enti-
tled to receive from the Secretary for each fiscal
year a grant in an amount equal to the applica-
ble share of 0.75 percent of the amount (if any)
appropriated pursuant to this subsection for the
fiscal year.
‘‘(2) SUBJECT TO APPROPRIATIONS.—The au-
thority provided by paragraph (1) shall be effective
only to such extent or in such amounts as are pro-
vided in advance in appropriations Acts.
‘‘(3) LIMITATIONS ON AUTHORIZATION OF AP-
PROPRIATIONS.—For grants under paragraph (1),
there are authorized to be appropriated to the Sec-
retary not more than $836,025,000 for each of fiscal
years 1996 through 2002.
‘‘(b) RULES GOVERNING PAYMENTS.—Grants under
this section shall be paid under rules prescribed by the
Secretary, which shall be similar to the rules provided for
in the document published by the Environmental Protec-
tion Agency on January 29, 1988, and entitled ‘SRF Ini-
tial Guidance For State Revolving Funds’.
‘‘(c) LIMITATION ON FEDERAL AUTHORITY.—A ju-
risdiction to which funds are provided under this section
shall have sole discretion to determine how such funds are
to be expended and the entities to which such funds are
to be provided, subject to this title.
‘‘(d) DEFINITIONS.—As used in this title:
‘‘(1) ELIGIBLE
STATE.—The term ‘eligible
State’ means a State that meets the following re-
quirements:
‘‘(A) The State has established a rural de-
velopment revolving fund.
‘‘(B) The State has established to the sat-
isfaction of the Secretary that the revolving
fund will be operated and administered in ac-
cordance with section 703(a).
‘‘(C) The State has agreed that the State
agency responsible for administering the revolv-
ing fund shall—
‘‘(i) consult with representatives of
local governments, businesses, nonprofit
organizations, and with the State agency
with expertise in rural development and
agriculture, in implementing this title; and
‘‘(ii) consult with general purpose
local governments in developing priorities
for funding activities from the revolving
fund, criteria for selecting recipients of as-
sistance from the revolving fund, and the
method of distributing funds from the re-
volving fund.
‘‘(D)(i) The State has agreed to submit to
the Secretary biennial reports which describe
the manner in which the amounts paid to the
State under this section are used, and include
evidence that, in each fiscal year covered by the
report, the State has expended for rural devel-
opment from State sources an amount equal to
not less than 20 percent of the total amount
paid to the State under subsection (a) during
the fiscal year.
‘‘(ii) As used in clause (i), the term ‘rural
development’ includes—
‘‘(I) rural infrastructure, including
water and sewer systems, highways, roads,
and bridges;
‘‘(II) rural education and job training,
including vocational and technical training;
‘‘(III) rural health services; and
‘‘(IV) rural housing assistance.
‘‘(2) ELIGIBLE TERRITORY.—The term ‘eligible
territory’ means a territory that meets the following
requirements:
‘‘(A) The territory has agreed to use the
funds provided to the territory under subsection
(a) only for qualified rural development pur-
poses.
‘‘(B) The territory has agreed to submit to
the Secretary biennial reports which describe
the manner in which the amounts paid to the
territory under this section are used, and in-
clude evidence that, in each fiscal year covered
by the report, the territory has expended for
rural development from territory sources an
amount equal to not less than 20 percent of the
total amount paid to the territory under sub-
section (a) during the fiscal year.
‘‘(3) STATE.—The term ‘State’ means the 50
States.
‘‘(4) TERRITORY.—The term ‘territory’ means
the Commonwealth of Puerto Rico, the United
States Virgin Islands, the Commonwealth of the
Northern Mariana Islands, Guam, American Samoa,
and the Trust Territory of the Pacific Islands.
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of Agriculture.
‘‘(6) APPLICABLE SHARE.—
‘‘(A) FOR STATES.—The term ‘applicable
share’ means, with respect to a State—
‘‘(i) the annual average amount paid
to the State during fiscal years 1991
through 1995 from amounts made avail-
able for loans and grants for rural water
and waste disposal pursuant to section 306
of the Consolidated Farm and Rural De-
velopment Act (as in effect before the ef-
fective date of title II of the Agricultural
Regulatory Relief and Trade Act of 1996);
divided by
‘‘(ii) the total amount paid to all
States during such fiscal years from the
amounts so made available.
‘‘(B) FOR TERRITORIES.—The term ‘appli-
cable share’ means, with respect to a terri-
tory—
‘‘(i) the annual average amount paid
to the territory during fiscal years 1991
through 1995 from amounts made avail-
able for loans and grants for rural water
and waste disposal pursuant to section 306
of the Consolidated Farm and Rural De-
velopment Act (as in effect before the ef-
fective date of title II of the Agricultural
Regulatory Relief and Trade Act of 1996);
divided by
‘‘(ii) the total amount paid to all terri-
tories during such fiscal years from the
amounts so made available.
‘‘SEC. 
703. 
STATE 
RURAL 
DEVELOPMENT 
REVOLVING
FUNDS.
‘‘(a) REQUIREMENTS.—A State rural development
revolving fund shall be operated and administered in ac-
cordance with the following requirements:
‘‘(1) GRANTS
TO
BE
DEPOSITED
INTO
THE
FUND.—Any amount paid to the State under section
702(a) shall be immediately deposited into the fund.
‘‘(2) USE OF AMOUNTS.—
‘‘(A) IN GENERAL.—The amounts in the
fund shall be made available in perpetuity and
be used only for qualified rural development
purposes.
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), any amounts in the fund which
are not immediately to be used in accordance
with subparagraph (A) may be invested in in-
terest-bearing securities.
‘‘(C) PROHIBITION.—The amounts in the
fund may not be used to guarantee the repay-
ment of principal or interest on any loan made
from the fund.
‘‘(3) LIMITATIONS ON TERM OF LOANS.—Loans
may be made from the fund at or below market in-
terest rates (including interest-free), and shall not
be made for a period that exceeds the lesser of—
‘‘(A) the life of the activities so financed;
or
‘‘(B) 40 years.
‘‘(4) CREDITING OF REPAYMENTS.—The fund
will be credited with all repayments of principal and
interest on loans and investments made from the
fund.
‘‘(5) LIMIT
ON
PERCENTAGE
OF
FEDERAL
FUNDS USED FOR GRANTS.—Not more than 30 per-
cent of the amounts in the fund may be used to
make grants during any fiscal year.
‘‘(6) MINIMUM PERCENTAGE OF RURAL DEVEL-
OPMENT FUNDS USED FOR COMMUNITIES WITH POP-
ULATIONS OF 10,000 OR LESS.—Not less than 80
percent of the amounts in the fund shall be used for
the benefit of communities with populations of
10,000 or fewer individuals.
‘‘(7) LIMIT ON PERCENTAGE OF RURAL DEVEL-
OPMENT FUNDS USED FOR COMMUNITIES WITH POP-
ULATIONS EXCEEDING 10,000 BUT NOT EXCEEDING
25,000.—Not more than 20 percent of the amounts
in the fund may be used for the benefit of commu-
nities with populations exceeding 10,000 but not ex-
ceeding 25,000 individuals.
‘‘(8) MINIMUM
PERCENTAGE
OF
FEDERAL
FUNDS USED FOR TECHNICAL ASSISTANCE RELATED
TO WATER AND WASTE DISPOSAL.—Not less than 1
percent of the amounts paid to the State under sec-
tion 702(a) during the fiscal year shall be used to
provide financing pursuant to subsection (b)(2) of
this section.
‘‘(9) PRIORITY
TO
BE
GIVEN
IN
MAKING
GRANTS FOR TECHNICAL ASSISTANCE RELATED TO
WATER AND WASTE DISPOSAL.—In making grants
pursuant to subsection (b)(2), priority shall be given
to organizations with experience in providing tech-
nical assistance and training to associations serving
rural areas.
‘‘(10) ACCOUNTING
FOR
FUNDS
BY
RECIPI-
ENTS.—An amount in the fund shall not be provided
to any entity unless, as a condition of providing the
amount, the entity agrees to account for the amount
in accordance with generally accepted accounting
principles.
‘‘(11) REASONABLE ASSURANCE OF LOAN RE-
PAYMENT.—A loan shall not be made to an entity
from the fund unless the entity provides reasonable
assurance of a source of funds for repayment of the
loan.
‘‘(12) CERTIFICATION BY LOCAL GOVERNMENTS
OF
DIRECT
BENEFIT
TO
LOCAL
RESIDENTS.—An
amount in the fund shall not be provided to any en-
tity for any activity to be conducted in an area un-
less the entity has provided the State with a certifi-
cation from the unit of local government for the area
that the activity will directly benefit the residents of
the area.
‘‘(13) POWERS
OF
FUND
ADMINISTRATOR.—
The fund shall be administered by an instrumental-
ity of the State with such powers as may be required
to operate the fund in accordance with this title.
‘‘(b) QUALIFIED RURAL DEVELOPMENT PURPOSE.—
As used in this title, the term ‘qualified rural development
purpose’ means any of the following:
‘‘(1) WATER AND WASTE DISPOSAL AND ESSEN-
TIAL COMMUNITY FACILITIES PROGRAMS.—To make
loans or grants, or to guarantee the repayment of
principal or interest on loans made, to associations,
including corporations not operated for profit, In-
dian tribes on Federal and State reservations and
other federally recognized Indian tribes, and public
and quasi-public agencies, all primarily serving
farmers, ranchers, farm tenants, farm laborers,
rural businesses, and other rural residents—
‘‘(A) to provide for the conservation, devel-
opment, use, and control of water, and the in-
stallation or improvement of drainage or waste
disposal facilities, and to furnish financial as-
sistance or other aid in planning projects for
such purposes;
‘‘(B) to provide for essential community
facilities, including necessary related equipment;
or
‘‘(C) to finance specific projects for works
for the development, storage, treatment, purifi-
cation, or distribution of water or the collection,
treatment, or disposal of waste in rural areas.
‘‘(2) RURAL WATER AND WASTE DISPOSAL CIR-
CUIT RIDER TECHNICAL ASSISTANCE AND TRAINING
purpose of improving the planning and management
of solid waste disposal facilities.
‘‘(5) RURAL BUSINESS ENTERPRISE.—To make
loans or grants to public bodies and private non-
profit corporations for measures designed to finance
and facilitate development of small and emerging
private business enterprises or the creation, expan-
sion, and operation of rural distance learning net-
works or rural learning programs that provide edu-
cational instruction or job training instruction relat-
ed to potential employment or job advancement to
adult students, including the development, construc-
tion or acquisition of land, buildings, plants, equip-
ment, access streets and roads, parking areas, utility
extensions, necessary water supply and waste dis-
posal facilities, refinancing, services and fees, or for
the purpose of demonstrating the effectiveness of
statewide nonprofit public television systems whose
coverage area is primarily rural in providing infor-
mation on agriculture and other issues of impor-
tance to farmers and other rural residents.
‘‘(6) RURAL TECHNOLOGY AND COOPERATIVE
DEVELOPMENT.—To make loans or grants to any
organization or institution, including an accredited
institution of higher education, no part of the net
earnings of which inures, or may lawfully inure, to
the benefit of any private shareholder or individual,
for the purpose of enabling the organization or insti-
tution to establish and operate centers for rural
technology or cooperative development—
‘‘(A) the primary objective of which may
be to improve the economic condition of rural
areas by promoting the development (through
technological innovation, cooperative develop-
ment, and adaptation of existing technology)
and commercialization of—
‘‘(i) new services and products that
can be produced or provided in rural areas;
‘‘(ii) new processes that can be uti-
lized in the production of products in rural
areas; and
‘‘(iii) new enterprises that can add
value to on-farm production through proc-
essing or marketing; and
‘‘(B) the activities of which may include—
‘‘(i) programs for technology research,
investigations, and basic feasibility studies
in any field or discipline for the purpose of
generating 
principles, 
facts, 
technical
knowledge, new technology, or other infor-
mation that may be useful to rural indus-
tries, cooperatives, agribusinesses, and
other persons or entities in rural areas
served by such centers in the development
and commercialization of new products,
processes, or services;
‘‘(ii) programs for the collection, in-
terpretation, and dissemination of prin-
ciples, facts, technical knowledge, new
technology, or other information that may
be useful to rural industries, cooperatives,
agribusinesses, and other persons in rural
areas served by the center in the develop-
ment and commercialization of new prod-
ucts, processes, or services;
‘‘(iii) programs providing training and
instruction for individuals residing in rural
areas served by the center with respect to
the development (through technological in-
novation, cooperative development, and ad-
aptation of existing technology) and com-
mercialization of new products, processes,
or services;
‘‘(iv) programs providing loans and
grants to individuals, small businesses, and
cooperatives in rural areas served by the
center for purposes of generating, evaluat-
ing, developing, and commercializing new
products, processes, or services;
‘‘(v) programs providing technical as-
sistance and advisory services to individ-
uals, small businesses, cooperatives, and
industries in rural areas served by the cen-
ter for purposes of developing and commer-
cializing new products, processes, or serv-
ices; or
‘‘(vi) programs providing research and
support to individuals, small businesses,
cooperatives, and industries in rural areas
served by the center for purposes of devel-
oping new agricultural enterprises to add
value to on-farm production through proc-
essing or marketing.
‘‘(7) 
DISTANCE
LEARNING
AND
MEDICAL
LINKS.—To make loans or grants to encourage and
improve the use of telecommunications, computer
networks, and related advanced technologies, by per-
sons associated with end users of such facilities, in-
cluding students and teachers, medical professionals,
small businesses, and other residents living in rural
areas associated with rural community facilities in
rural areas.
‘‘(8) PROVISION
OF
SECURITY
FOR
CERTAIN
STATE
OBLIGATIONS
USED
TO
RAISE
FUNDS
FOR
RURAL DEVELOPMENT.—To provide security for, or
to make principal or interest payments on revenue
or general obligation bonds issued by the State if the
proceeds from the sale of such bonds is deposited in
the State rural development revolving fund estab-
lished pursuant to section 702(d)(1)(A).
‘‘(9) LIMITED
ADMINISTRATIVE
COSTS.—To
pay the costs of administering the State rural devel-
opment revolving fund established pursuant to sec-
tion 702(d)(1)(A), except that amounts expended
from the fund during any fiscal year for this purpose
may not exceed 3 percent of the total amount paid
to the State under section 702(a) for the fiscal year.
‘‘(10) FINANCIAL SUPPORT FOR LOCAL FINANC-
ING OF RURAL DEVELOPMENT.—To guarantee, or
purchase insurance for, local obligations the pro-
ceeds of which shall be used for another qualified
rural development purpose.
‘‘(11) LOCAL SHARE REQUIREMENTS OF OTHER
FEDERAL
GRANT-IN-AID
PROGRAMS
RELATED
TO
RURAL DEVELOPMENT.—To pay the local share re-
quirements of another Federal grant-in-aid program
related to rural development to the extent not ex-
pressly prohibited by the law providing for the
grant-in-aid program.
‘‘(12) INTERSTATE RURAL DEVELOPMENT AC-
TIVITIES.—To participate with other States or terri-
tories in arrangements for the financing of a quali-
fied rural development purpose which is of interstate
character.
‘‘(13) ASSISTANCE
TO
OTHER
STATES
FOR
RURAL DEVELOPMENT.—To make loans to another
State or territory for a qualified rural development
purpose.
‘‘(c) OTHER DEFINITIONS.—
‘‘(1) AQUACULTURE.—The term ‘aquaculture’
means the culture or husbandry of aquatic animals
or plants by private industry for commercial pur-
poses including the culture and growing of fish by
private industry for the purpose of creating or aug-
menting publicly owned and regulated stocks of fish.
‘‘(2) RURAL; RURAL AREA.—
‘‘(A) IN GENERAL.—The terms ‘rural’ and
‘rural area’ means all area of a State or terri-
tory that is not within the outer boundary of
any city having a population of 50,000 or more
individuals and its immediately adjacent urban-
ized and urbanizing areas with a population
density of more than 100 individuals per square
mile, according to the latest census data avail-
able.
‘‘(B) COLONIAS
INCLUDED.—The terms
‘rural’ and ‘rural area’ include any identifiable
community that—
‘‘(i) is in the State of Arizona, Cali-
fornia, New Mexico, or Texas;
‘‘(ii) is in the United States-Mexico
border region;
‘‘(iii) is determined to be a colonia on
the basis of objective criteria, including
lack of potable water supply, lack of ade-
quate sewage systems, and lack of decent,
safe, and sanitary housing; and
‘‘(iv) was in existence as a colonia be-
fore October 1, 1989.
‘‘SEC. 704. ENFORCEMENT PROVISIONS.
‘‘(a) REVIEW AND MONITORING.—The Rural Eco-
nomic and Community Development Director of a jurisdic-
tion to which a payment is made under section 702 shall
review and monitor compliance by the jurisdiction with
this title.
‘‘(b) ENFORCEMENT RECOMMENDATIONS.—If the
Rural Economic and Community Development Director of
a jurisdiction, after reasonable notice to the jurisdiction,
finds that there has been a failure by the jurisdiction to
comply substantially with any provision or requirement of
this title, the Director shall notify the Secretary of the
noncompliance and recommend that the Secretary take 1
or more of the following actions:
‘‘(1) Suspend payments to the jurisdiction
under section 702 until the Director is satisfied that
the noncompliance has ceased or that the noncompli-
ance will be corrected promptly.
‘‘(2) Recover any funds expended in violation of
this title.
‘‘(3) Limit further payment to the jurisdiction
under section 702 to activities not affected by the
noncompliance, until the Director is satisfied that
the noncompliance has ceased or that the noncompli-
ance will be corrected promptly.
‘‘(4) Offset the amounts improperly expended
against any other amount that is or will be payable
to the jurisdiction under section 702.
‘‘(5) Refer the matter to the Attorney General
of the United States.
‘‘(6) Disqualify the jurisdiction from the receipt
of payments under section 702 for 12 months.
‘‘(7) Reduce payments to the jurisdiction under
section 702 for 12 months.
‘‘(c) IMPOSITION OF PENALTIES.—Within 90 days
after receiving notice and a recommendation from the
Rural Economic and Community Development Director of
a jurisdiction pursuant to subsection (b) and after provid-
ing reasonable notice to the jurisdiction and opportunity
for a hearing, the Secretary shall, pursuant to a written
ruling which shall be based on the recommendation of the
Director and the hearing, take any action described in
subsection (b) as the Secretary deems appropriate.
‘‘(d) RURAL ECONOMIC AND COMMUNITY DEVELOP-
MENT DIRECTOR.—As used in this section, the term
‘Rural Economic and Community Development Director’
means, with respect to a jurisdiction, the officer or em-
ployee of the United States Department of Agriculture
who is holding such position with respect to the jurisdic-
tion.’’.
SEC. 202. ELIMINATION OF OTHER RURAL DEVELOPMENT
PROGRAMS.
(a) UNDER THE CONSOLIDATED FARM AND RURAL
DEVELOPMENT ACT.—
(1) Section 304 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1924), as amend-
ed by sections 102(a)(1)(B)(i) and 108(f)(3) of this
Act, is amended by striking subsection (b) and re-
designating subsection (c) as subsection (b).
(2) Section 306 of such Act (7 U.S.C. 1926),
as amended by sections 108(f)(5) and 108(f)(6) of
this Act, is repealed.
(3) Section 306A of such Act (7 U.S.C. 1926a)
is repealed.
(4) Section 306B of such Act (7 U.S.C. 1926b)
is repealed.
(5) Section 306C of such Act (7 U.S.C. 1926c),
as amended by sections 108(f)(7) and 108(f)(8) of
this Act, is repealed.
(6) Section 310A of such Act (7 U.S.C. 1931),
as amended by section 108(f)(17) of this Act, is re-
pealed.
(7) Section 310B of such Act (7 U.S.C. 1932),
as amended by section 104(f)(2) and paragraphs
(18), (19), and (20) of section 108(f) of this Act, is
repealed.
(8) Section 312 of such Act (7 U.S.C. 1942),
as 
amended 
by 
sections 
102(b)(1)(B)(i),
102(b)(1)(B)(ii), 102(b)(3), 103(c)(1), and 105(a)
of this Act, is amended—
(A) in the 1st sentence of subsection (a)—
(i) by striking clauses (5), (6), (10),
and (11);
(ii) by adding ‘‘or’’ at the end of
clause (8);
(iii) by striking the comma at the end
of clause (9) and inserting a period; and
(iv) by redesignating clauses (7), (8),
and (9) as clauses (5), (6), and (7), respec-
tively; and
(B) by striking subsections (b), (c), and
(d) and redesignating subsection (e) as sub-
section (b).
(9) Section 365 of such Act (7 U.S.C. 2008) is
repealed.
(10) Section 366 of such Act (7 U.S.C. 2008a)
is repealed.
(11) Section 367 of such Act (7 U.S.C. 2008b)
is repealed.
(12) Section 368 of such Act (7 U.S.C. 2008c)
is repealed.
(b) UNDER THE FOOD, AGRICULTURE, CONSERVA-
TION, AND TRADE ACT OF 1990.—
(1) Section 2281 of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (42 U.S.C. 5177a)
is repealed.
(2) Subtitle B of title XXIII of such Act (7
U.S.C. 2007–2007e) is repealed.
(3) Section
2322
of
such
Act
(7
U.S.C.
1926–1) is repealed.
(4) Section 2324 of such Act (7 U.S.C. 1926
note) is repealed.
(5) Section 2348 of such Act (7 U.S.C. 2662a)
is repealed.
(6) Section 2381 of such Act (7 U.S.C. 3125b)
is repealed.
(7) Section 2382 of such Act (13 U.S.C. 141
note) is repealed.
(8) Section 2385 of such Act (7 U.S.C.
950aaa–4 note) is repealed.
(9) Section 2391 of such Act (7 U.S.C. 2662
note) is repealed.
(10) Section 2392 of such Act (13 U.S.C. 141
note) is repealed.
(11) Section 2517 of such Act (104 Stat. 4077)
is repealed.
(c) INDIAN SUBSISTENCE FARMING DEMONSTRA-
TION GRANT PROGRAM.—Subtitle C of title IX of the
Food, Agriculture, Conservation, and Trade Act Amend-
ments of 1991 (7 U.S.C. 5930 note) is repealed.
(d) INTERMEDIARY RELENDING PROGRAM.—Section
407 of the Human Services Reauthorization Act of 1986
(42 U.S.C. 9812a) is repealed.
(e) UNDER THE FOOD SECURITY ACT OF 1985.—
Section 1323 of the Food Security Act of 1985 (7 U.S.C.
1932 note) is repealed.
(f) UNDER
THE RURAL DEVELOPMENT ACT
OF
1972.—
(1) Title V of the Rural Development Act of
1972 (7 U.S.C. 2661–2669) is repealed.
(2) Section 603 of such Act (7 U.S.C. 2204a)
is amended by striking subsection (c).
(g) UNDER THE RURAL ELECTRIFICATION ACT OF
1936.—
(1) Section 3 of the Rural Electrification Act of
1936 (7 U.S.C. 903) is repealed.
(2) Section 5 of such Act (7 U.S.C. 905) is re-
pealed.
(3) Section 311 of such Act (7 U.S.C. 940a) is
repealed.
(4) Title V of such Act (7 U.S.C. 950aa–
950aa–1) is repealed.
SEC. 203. CONFORMING AMENDMENTS.
(a) CONSOLIDATED FARM AND RURAL DEVELOP-
MENT ACT AMENDMENTS.—
(1) Section 307(a)(3) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1927(a)(3))
is amended—
(A) by striking subparagraphs (A) and
(C); and
(B) in subparagraph (B)—
(i) by striking ‘‘(B)’’;
(ii) by redesignating clauses (i) and
(ii) as subparagraphs (A) and (B), respec-
tively; and
(iii) by redesignating subclauses (I)
and (II) of subparagraph (A) (as so redes-
ignated by clause (ii) of this subparagraph)
as clauses (i) and (ii), respectively.
(2) Section 307(a) of such Act (7 U.S.C.
1927(a)) is amended by striking paragraph (4).
(3) Section 307(a)(5) of such Act (7 U.S.C.
1927(a)(5)) is amended—
(A) by striking ‘‘(A) Except as provided in
subparagraph (B), the’’ and inserting ‘‘The’’;
and
(B) by striking subparagraph (B).
(4) Section 307(a)(6)(B) of such Act (7 U.S.C.
1927(a)(6)(B)) is amended—
(A) by adding ‘‘and’’ at the end of clause
(i); and
(B) by striking clauses (ii), (iii), (iv), (v),
and (vi) and redesignating clause (vii) as clause
(ii).
(5) Section 307(c) of such Act (7 U.S.C.
1927(c)) is amended by striking ‘‘, and for obliga-
tions in connection with loans to associations under
section 306, shall take liens on the facility or such
other security as he may determine to be necessary’’.
(6) Section 309(g)(1) of such Act (7 U.S.C.
1929(g)(1)) is amended by striking ‘‘the last sen-
tence of section 306(a)(1),’’.
(7) Section 309A(a) of such Act (7 U.S.C.
1929a(a)) is amended by inserting ‘‘(as in effect be-
fore the effective date of title II of the Agricultural
Regulatory Relief and Trade Act of 1996)’’ after
each 
of 
‘‘304(b)’’, 
‘‘306(a)(1)’’, 
‘‘306(a)(14)’’,
‘‘310B’’, and ‘‘312(b)’’.
(8) Section 309A(a) of such Act (7 U.S.C.
1929a(a)) is amended by inserting ‘‘prior to the re-
peal of such sections by the Agricultural Regulatory
Relief and Trade Act of 1996,’’ after ‘‘312(b),’’.
(9) Section 309A(g)(8) of such Act (7 U.S.C.
1929a(g)(8)) is amended—
(A) by striking ‘‘make grants under sec-
tions 306(a) and 310B of this title,’’; and
(B) by striking ‘‘including costs of the Sec-
retary incidental to guaranteeing rural develop-
ment loans under this title,’’.
(10) Section 310C(a) of such Act (7 U.S.C.
1933(a)) is amended—
(A) by redesignating clauses (1), (2), and
(3) as clauses (A), (B), and (C), respectively;
(B) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(C) by adding after and below the end the
following:
‘‘(2) As used in paragraph (1), the terms ‘rural’ and
‘rural area’ shall not include any area in any city or town
which has a population in excess of 10,000 inhabitants.’’.
(11) Section 316(a) of such Act (7 U.S.C.
1946(a)), as amended by section 108(f)(24) of this
Act, is amended by striking paragraph (3).
(12) Section 331(b) of such Act (7 U.S.C.
1981(b)) is amended—
(A) by adding ‘‘and’’ at the end of para-
graph (7);
(B) in paragraph (8), by striking ‘‘; and’’
and inserting a period; and
(C) by striking paragraph (9).
(13) Section 333A(a) of such Act (7 U.S.C.
1983a(a)) is amended by striking paragraph (4).
(14) Section 344 of such Act (7 U.S.C. 1992),
as amended by section 108(f)(36) of this Act, is re-
pealed.
(b) DEPARTMENT OF AGRICULTURE REORGANIZA-
TION ACT OF 1994 AMENDMENTS.—
(1) Section 232(c) of the Department of Agri-
culture Reorganization Act of 1994 (7 U.S.C.
6942(c)) is amended by striking paragraphs (1) and
(2) and inserting the following:
‘‘(1) Electric and telephone loan programs and
water and waste facility activities authorized by law,
including the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.).
‘‘(2) Water and waste facility programs and ac-
tivities authorized by law, including the provisions of
sections 309 and 309A of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1929 and
1929a) relating to assets, terms, and conditions of
water and sewer programs, and section 35 of the
Bankhead-Jones Farm Tenant Act (7 U.S.C.
1013a).’’.
(2) Section 233(b) of such Act (7 U.S.C.
6943(b)) is amended—
(A) by striking paragraph (2); and
(B) in paragraph (3)—
(i) by striking ‘‘(3)’’ and inserting
‘‘(2)’’; and
(ii) by striking ‘‘programs authorized
by sections 365 through’’ and inserting
‘‘activities under section’’.
(3) Section 234(b) of such Act (7 U.S.C.
6944(b)) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘and title V of’’; and
(ii) by striking ‘‘and 950aa et seq.’’;
and
(B) by striking paragraph (3).
(c) NORTH AMERICAN FREE TRADE AGREEMENT IM-
PLEMENTATION ACT AMENDMENT.—Section 321(h)(2) of
the North American Free Trade Agreement Implementa-
tion Act (19 U.S.C. 3391(h)(2)) is amended by inserting
‘‘(as in effect before the effective date of title II of the
Agricultural Regulatory Relief and Trade Act of 1996)’’
before the period.
(d) FOOD, AGRICULTURE, CONSERVATION, 
AND
TRADE ACT OF 1990 AMENDMENTS.—
(1) Section 2375(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
6613(e)) is amended by inserting ‘‘(as in effect be-
fore the effective date of title II)’’ before the comma.
(2) Effective 5 years after the effective date of
this title, section 2375 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
6613) is amended by striking subsection (e).
(e) COOPERATIVE FORESTRY ASSISTANCE ACT OF
1978 AMENDMENT.—Section 10(b)(3) of the Cooperative
Forestry Assistance Act of 1978 (7 U.S.C. 2106(b)(3))
is amended by striking ‘‘the first clause of section
306(a)(7)’’ and inserting ‘‘section 310C(a)(2)’’.
(f) THE ROBERT T. STAFFORD DISASTER RELIEF
AND EMERGENCY ASSISTANCE ACT AMENDMENT.—Sec-
tion 310(a) of The Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5153(a)) is amend-
ed by striking paragraph (4) and redesignating para-
graphs (5) through (7) as paragraphs (4) through (6), re-
spectively.
(g) COMMUNITY ECONOMIC DEVELOPMENT ACT OF
1981 AMENDMENTS.—Section 628 of the Community
Economic Development Act of 1981 (42 U.S.C. 9817) is
amended—
(1) by striking ‘‘, as amended’’ and all that fol-
lows through ‘‘1972’’ and inserting ‘‘and the Con-
solidated Farm and Rural Development Act’’; and
(2) by redesignating paragraph (3) as para-
graph (2).
(h) AGRICULTURAL ACT OF 1970 AMENDMENT.—
Section 901(b) of the Agricultural Act of 1970 (42 U.S.C.
3122(b)) is amended by striking ‘‘as defined in the private
business enterprise exception in section 306(a)(7) of the
Consolidated Farmers Home Administration Act of 1961,
as amended (7 U.S.C. 1926)’’ and inserting ‘‘(as defined
in section 703(c)(2)(A) of the Rural Development Act of
1972)’’.
(i) RURAL ELECTRIFICATION ACT OF 1936 AMEND-
MENTS.—
(1) Section 4 of the Rural Electrification Act of
1936 (7 U.S.C. 904) is amended—
(A) by inserting ‘‘(as in effect before the
effective date of title II of the Agricultural Reg-
ulatory Relief and Trade Act of 1996)’’ after
‘‘3(d) and 3(e)’’; and
(B) by striking ‘‘and section 5’’.
(2) Section 7 of such Act (7 U.S.C. 907) is
amended by striking ‘‘authorized in section 3 of’’
and inserting ‘‘appropriated to carry out’’.
(3) Section 12 of such Act (7 U.S.C. 912) is
amended—
(A) in subsection (a)—
(i) by inserting ‘‘(as in effect before
the effective date of title II of the Agricul-
tural Regulatory Relief and Trade Act of
1996)’’ after ‘‘section 5’’; and
(ii) by inserting ‘‘(as in effect before
the effective date of title II of the Agricul-
tural Regulatory Relief and Trade Act of
1996)’’ before the period; and
(B) in subsection (b)(3)(D), by striking the
third sentence.
(4) Section 201 of such Act (7 U.S.C. 922) is
amended by striking ‘‘pursuant to section 3 of the
Rural Electrification Act of 1936, as amended,’’.
(5) Section 301(a) of such Act (7 U.S.C.
931(a)) is amended—
(A) in paragraph (2), by inserting ‘‘(as in
effect before the effective date of title II of the
Agricultural Regulatory Relief and Trade Act of
1996)’’ after ‘‘5’’; and
(B) in paragraph (3), by striking ‘‘notwith-
standing section 3(a) of title I,’’.
(6) Section 302 of such Act (7 U.S.C. 932) is
amended—
(A) in each of subsections (a) and (b)(1),
by inserting ‘‘(before the effective date of title
II of the Agricultural Regulatory Relief and
Trade Act of 1996)’’ after ‘‘5’’; and
(B) in subsection (b)(2), by striking ‘‘pur-
suant to section 3(a) of this Act’’ and inserting
‘‘before the effective date of title II of the Agri-
cultural Regulatory Relief and Trade Act of
1996’’.
(7) Section 406(a) of such Act (7 U.S.C.
946(a)) is amended in the 2nd sentence by inserting
‘‘(as in effect before the effective date of title II of
the Agricultural Regulatory Relief and Trade Act of
1996)’’ before the period.
SEC. 204. SAVINGS PROVISION.
This title and the amendments made by this title
shall not be construed to affect any obligation entered into
before the effective date of this title.
SEC. 205. EFFECTIVE DATE.
This title and the amendments made by this title
shall take effect on October 1, 1996.
TITLE III—CONSERVATION
SEC. 300. SHORT TITLE.
This title may be cited as the ‘‘Conservation Consoli-
dation and Regulatory Reform Act of 1996’’.
Subtitle A—Consolidation of Con-
servation Financial Assistance
Programs of the Department of
Agriculture
SEC. 301. PURPOSE OF SUBTITLE.
It is the purpose of this subtitle to consolidate into
a single program all current authorities of the Secretary
of Agriculture with respect to conservation programs
under which the Secretary contributes to the cost of con-
servation measures undertaken on private lands.
PART 1—AGRICULTURAL CONSERVATION
ASSISTANCE PROGRAM
SEC. 311. DEFINITIONS.
For purposes of this part:
(1) AGRICULTURAL CONSERVATION ASSISTANCE
PROGRAM.—The term ‘‘Agricultural Conservation
Assistance Program’’ means the program established
under section 312 to provide technical and financial
assistance to the owners and operators of private ag-
ricultural lands for conservation and improvement of
soil, water, and related natural resources.
(2) AGRICULTURAL
COMMODITY.—The term
‘‘agricultural commodity’’ means any annual or pe-
rennial crop (including forage or hay), aquaculture
product, nursery product, silviculture product, and
water-dependent crop (such as cranberries, taro, wa-
tercress, or rice).
(3) AGRICULTURAL LANDS.—The term ‘‘agri-
cultural lands’’ includes cropland, nonindustrial for-
est land, other lands used to produce or support the
production of an agricultural commodity, and such
other lands as the Secretary considers to be appro-
priate for inclusion.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(5) ELIGIBLE
PRACTICE.—The term ‘‘eligible
practice’’ means the establishment of a terrace,
grassed waterway, contour grass strip, filterstrip,
shelterbelt, permanent wildlife habitat, site-specific
input management, or other activity that the Sec-
retary determines improves or protects soil, water,
and related natural resources.
SEC. 312. PROVISION OF TECHNICAL AND FINANCIAL AS-
SISTANCE FOR ELIGIBLE PRACTICES TO CON-
SERVE AND IMPROVE SOIL, WATER, AND RE-
LATED NATURAL RESOURCES.
(a) AGRICULTURAL
CONSERVATION
ASSISTANCE
PROGRAM.—Beginning with fiscal year 1997, the Sec-
retary of Agriculture shall carry out a program (to be
known as the ‘‘Agricultural Conservation Assistance Pro-
gram’’) to provide technical and financial assistance to the
owners and operators of private agricultural lands who re-
quest such assistance to plan, develop, and implement eli-
gible practices applicable to such lands and intended to
effectuate one or more of the following purposes:
(1) Control of erosion and sedimentation from
such lands.
(2) Conservation of water resources on such
lands and promotion of water conservation practices.
(3) Improvement of water quality in rural
America.
(4) Control of salinity resulting from the use of
such lands.
(5) Enhancement, restoration, or creation of
wetlands and riparian areas.
(6) Improvement in the production and utiliza-
tion of timber.
(7) Improvement of wildlife habitat.
(b) CONTRACTS.—Subject to subsection (c), the Sec-
retary shall provide technical and financial assistance
under the Agricultural Conservation Assistance Program
on the basis of a contract between the Secretary and an
owner or operator of agricultural lands. The Secretary
may not enter into a contract with an operator who is not
also owner of the agricultural lands unless the actual
owner of the lands concurs in the contract. The contract
shall describe the eligible practice for which the assistance
is being provided and specify the manner in which the eli-
gible practice will be carried out consistent with the cost-
share plan developed under section 313.
(c) PRIORITIZATION
AND
APPROVAL
OF
CON-
TRACTS.—
(1) APPROVAL BY COUNTY OR AREA COMMIT-
TEE.—Each contract under the Agricultural Con-
servation Assistance Program shall be subject to the
approval of the county or area committee established
under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) for
the county or area within which the agricultural land
subject to the contract is located.
(2) PRIORITIZATION
BY
SECRETARY.—Before
contracts are considered for approval by a county or
area committee under paragraph (1), the Secretary
may evaluate and prioritize cost-share plans pre-
pared under section 313 for farms in the county or
area on the basis of the effectiveness of the plans in
meeting State and Federal environmental require-
ments. In conducting the evaluation, the Secretary
shall consider recommendations made by the Natu-
ral Recourses Conservation Service in conjunction
with State and local soil conservation districts. If the
Secretary conducts such an evaluation for a county
or area, the county or area committee shall first con-
sider for approval those contracts whose accompany-
ing cost-share plans are considered by the Secretary
to have a higher priority.
(d) TERM OF CONTRACT.—The term of a contract
under the Agricultural Conservation Assistance Program
may not exceed five years, except that the Secretary may
enter into a longer contract if the Secretary determines
that a longer contract term is essential to accomplish one
of the purposes specified in subsection (a).
(e) OWNER
AND OPERATOR RESPONSIBILITIES.—
Under the terms of a contract under the Agricultural Con-
servation Assistance Program, the owner or operator en-
tering into the contract shall agree to comply with the
terms and conditions of the cost-share plan prepared by
the owner or operator under section 313.
SEC. 313. COST-SHARE PLANS.
(a) SUBMISSION OF COST-SHARE PLAN.—To be eligi-
ble to enter into a contract under the Agricultural Con-
servation Assistance Program, an owner or operator shall
prepare and submit to the Secretary of Agriculture a plan
of farming operations or land use practices that incor-
porates such soil and water conservation practices and
principles as may be determined by the Secretary to be
practicable to achieve the purposes for which the assist-
ance is provided.
(b) USE OF EXISTING PLANS.—For purposes of sat-
isfying the requirements of subsection (a), at the option
of the owner or operator, the owner or operator may rely
on a conservation plan developed pursuant to section 1212
of the Food Security Act of 1985 (16 U.S.C. 3812) or
any other conservation or natural resource plan required
for participation in any program within the jurisdiction
of the Secretary.
SEC. 314. FINANCIAL ASSISTANCE UNDER CONTRACT.
(a) DETERMINATION OF AMOUNT.—Subject to sub-
sections (b) and (c), the amount of financial assistance
that may be provided under a contract under the Agricul-
tural Conservation Assistance Program shall be such por-
tion of the cost of planning, developing, or implementing
the eligible practice described in the contract as the Sec-
retary of Agriculture determines to be necessary to achieve
the purposes for which the assistance is provided. In deter-
mining the level of assistance, the Secretary shall con-
sider—
(1) the amount of expected conservation or en-
vironmental benefit accruing to society;
(2) the total cost of carrying out the eligible
practice;
(3) the degree to which appropriate eligible
practices will be implemented in the absence of fi-
nancial assistance under the Agricultural Conserva-
tion Assistance Program; and
(4) in order to avoid duplication of assistance,
the degree to which the owner or operator benefits
from other public conservation programs.
(b) 
COST-SHARE
REQUIREMENT.—The 
Federal
share of cost-sharing payments under a contract under the
Agricultural Conservation Assistance Program shall not
exceed 50 percent of the total cost of the eligible practice
covered by the contract, as determined by the Secretary.
However, the Secretary may exceed the percentage limita-
tion if the Secretary determines that a larger Federal
share is essential to accomplish one of the purposes speci-
fied in section 312(a), except that in no case may the Fed-
eral share exceed 75 percent.
(c) PER PERSON LIMITATION ON FINANCIAL ASSIST-
ANCE.—The total annual amount of payments to a person
under one or more contracts under the Agricultural Con-
servation Assistance Program may not exceed $5,000.
However, the Secretary may exceed the limitation on the
annual amount of payments on a case-by-case basis if the
Secretary determines that a larger payment is essential
to accomplish one of the purposes specified in section
312(a).
(d) TIME FOR PAYMENT.—In the case of multiyear
contract under the Agricultural Conservation Assistance
Program, the Secretary may make the entire Federal pay-
ment under the contract in the first year of the contract
to advance implementation of the eligible practice for
which the payment is being made. Payments may not be
made beyond the term of the contract.
(e) TREATMENT OF PAYMENTS.—Payments under
the Agricultural Conservation Assistance Program shall be
treated in the same manner as payments made under the
agricultural conservation program authorized by the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590a et seq.), as in effect on the day before the date of
the enactment of this Act.
SEC. 315. TERMINATION OF CONTRACTS.
(a) TERMINATION FOR VIOLATION.—The Secretary
may terminate a contract entered into with an owner or
operator under the Agricultural Conservation Assistance
Program if—
(1) the owner or operator agrees to such termi-
nation; or
(2) the owner or operator violates the terms
and conditions of the contract.
(b) VOLUNTARY MODIFICATION OR TERMINATION.—
An owner or operator of a livestock operation who enters
into a contract under the Agricultural Conservation As-
sistance Program may modify or terminate the contract
with the consent of the Secretary.
(c) REPAYMENT.—On the violation of a term or con-
dition of the contract under the Agricultural Conservation
Assistance Program at any time by the owner or operator,
the owner or operator shall refund any cost-sharing pay-
ment already received under section 314 and forfeit any
future payments under the contract. On the transfer of
the right and interest of an owner in land subject to the
contract, the owner shall refund all cost-sharing payments
received by the owner under the contract unless the trans-
feree of the right and interest agrees to assume all obliga-
tions of the owner under the contract.
SEC. 316. AUTHORIZATION OF APPROPRIATIONS; REGULA-
TIONS.
(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out this part during each of the fiscal
years 1997 through 2002.
(b) FINAL REGULATIONS.—Not later than 120 days
after the date of the enactment of this Act, the Secretary
shall issue regulations to implement the Agricultural Con-
servation Assistance Program.
PART 2—CONFORMING AMENDMENTS
SEC. 321. REPEAL OF GREAT PLAINS CONSERVATION PRO-
GRAM.
(a) REPEAL.—Section 16 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590p) is repealed.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
1271(c)(3)(C) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(C)) is amended
by striking ‘‘and the Agricultural Conservation Program
established under section 16(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590p(b)),’’.
(2) Subparagraph (A) of section 1211(3) of the Food
Security Act of 1985 (16 U.S.C. 3811(3)) is amended to
read as follows:
‘‘(A) a payment made pursuant to a con-
tract entered into under the Agricultural Con-
servation Assistance Program established under
section 312 of the Conservation Consolidation
and Regulatory Reform Act of 1996 or the
Water Quality Conservation Program estab-
lished under section 342 of such Act;’’.
SEC. 322. REPEAL OF CRITICAL LANDS RESOURCE CON-
SERVATION PROGRAM IN GREAT PLAINS
AREA.
Section 1511 of the Food and Agriculture Act of
1977 (16 U.S.C. 590q–3) is repealed.
SEC. 323. REPEAL OF AGRICULTURAL CONSERVATION PRO-
GRAM.
(a) REPEAL.—The Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590a et seq.) is repealed, except
for sections 1, 2, 6, 8(b)(5), and 17(b) of such Act (16
U.S.C. 590a, 590b, 590f, 590h(b)(5), and 590q(b)).
(b) CONFORMING AMENDMENTS.—(1) Section 22(a)
of the Agricultural Adjustment Act (7 U.S.C. 624(a)), re-
enacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended by striking ‘‘or the
Soil Conservation and Domestic Allotment Act, as amend-
ed,’’.
(2) Section 6(b) of the Department of Agriculture
Organic Act of 1956 (16 U.S.C. 590h–4) is repealed.
(3) Section 2 of the Act of December 20, 1944 (12
U.S.C. 1150a) is amended by striking ‘‘sections 7 to 17
of the Soil Conservation and Domestic Allotment Act;’’.
SEC. 324. MODIFICATION OF DEPARTMENT INVOLVEMENT
IN COLORADO RIVER BASIN SALINITY CON-
TROL PROGRAM.
Section 202(c) of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1592(c)) is amended by striking
paragraph (1) and inserting the following:
‘‘(1) The Secretary of Agriculture shall implement sa-
linity control measures, including watershed enhancement
and cost-sharing efforts with livestock and crop producers,
as part of the Agricultural Conservation Assistance Pro-
gram established under section 312 of the Conservation
Consolidation and Regulatory Reform Act of 1996.’’.
SEC. 325. REPEAL OF RURAL ENVIRONMENTAL CONSERVA-
TION PROGRAM.
Title X of the Agricultural Act of 1970 (16 U.S.C.
1501 et seq.) is repealed.
SEC. 
326. 
REPEAL 
OF 
WATER 
QUALITY 
INCENTIVE
PROJECTS.
(a) REPEAL.—Chapter 2 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3838–
3838F) is repealed.
SEC. 329. REPEAL OF SPECIAL AREAS CONSERVATION PRO-
GRAM 
AND 
RESERVOIR 
SEDIMENTATION
PROGRAM.
Subtitles A, B, and F and section 1552 of title XV
of the Agriculture and Food Act of 1981 (16 U.S.C.
3401–3420, 3441–3445, 3471) are repealed.
SEC. 330. REPEAL OF SMALL WATERSHED EASEMENT PUR-
CHASE AUTHORITY.
Section 3A of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003a) is repealed.
SEC. 331. REPEAL OF FINANCIAL ASSISTANCE PROGRAMS
UNDER 
COOPERATIVE 
FORESTRY 
ASSIST-
ANCE ACT OF 1978.
(a) REPEALS.—Sections 4, 6, and 7 of the Coopera-
tive Forestry Assistance Act of 1978 (16 U.S.C. 2103,
2103b, 2103c) are repealed.
(b) CONFORMING AMENDMENTS.—The Cooperative
Forestry Assistance Act of 1978 is further amended—
(1) in section 12(a) (16 U.S.C. 2108(a)), by
striking ‘‘money appropriated under section 4 of this
Act or’’; and
(2) 
in 
section 
19(b)(2) 
(16 
U.S.C.
2113(b)(2))—
(A) by inserting ‘‘and’’ after the semicolon
in subparagraph (B);
(B) by striking ‘‘; and’’ at the end of sub-
paragraph (C) and inserting a period; and
(C) by striking subparagraph (D).
SEC. 332. REPEAL OF WATER BANK ACT.
The Water Bank Act (16 U.S.C. 1301–1311) is re-
pealed.
SEC. 333. EFFECTIVE DATE OF REPEALS.
(a) EFFECTIVE DATE.—The amendments made by
this part shall take effect on September 30, 1996.
(b) EFFECT OF REPEAL.—The amendments made by
this part shall not affect the validity of any contract or
agreement, or the terms and conditions of such a contract
or agreement, entered into before the effective date of the
amendments under a provision of law repealed by this
part.
Subtitle 
B—Water 
Quality 
Con-
servation Program for Livestock
Operations
SEC. 341. PURPOSE OF SUBTITLE AND DEFINITIONS.
(a) PURPOSE.—It is the purpose of this subtitle to
establish a program under section 342 that, in a manner
maximizing environmental benefits per dollar expended,
provides to the owners and operators of livestock oper-
ations—
(1) flexible technical and financial assistance to
address the most serious threats to water quality;
(2) assistance in complying with title XII of the
Food Security Act of 1985 (16 U.S.C. 3801 et seq.)
and Federal and State environmental laws, and to
encourage environmental enhancement; and
(3) a consolidated and simplified conservation
planning process to reduce administrative burdens
on the owners and operators of livestock operations.
(b) DEFINITIONS.—For purposes of this subtitle:
(1) LIVESTOCK WATER QUALITY CONSERVATION
PROGRAM.—The term ‘‘Livestock Water Quality
Conservation Program’’ means the program estab-
lished under section 342 to provide technical and fi-
nancial assistance to the owners and operators of
livestock operations to protect or improve water
quality and enhance environmental protection.
(2) LIVESTOCK.—The term ‘‘livestock’’ means
dairy or beef cattle, laying hens, broilers, turkeys,
swine, sheep, lambs, and such other animals as the
Secretary of Agriculture considers appropriate.
(3) LIVESTOCK OPERATION.—The term ‘‘live-
stock operation’’ means a farm, ranch, or other fa-
cility used for the purpose of livestock production.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(5) ELIGIBLE
PRACTICE.—The term ‘‘eligible
practice’’ means the establishment of an animal
waste management facility, terrace, grassed water-
way, contour grass strip, filterstrip, permanent wild-
life habitat, or other activity that the Secretary de-
termines improves or protects water quality in a cost
effective manner.
SEC. 342. PROVISION OF TECHNICAL AND FINANCIAL AS-
SISTANCE FOR WATER QUALITY CONSERVA-
TION FOR LIVESTOCK OPERATIONS.
(a) LIVESTOCK WATER QUALITY CONSERVATION
PROGRAM.—During fiscal years 1996 through 2002, the
Secretary of Agriculture shall carry out a program (to be
known as the ‘‘Livestock Water Quality Conservation Pro-
gram’’) to provide technical and financial assistance to the
owners and operators of livestock operations who request
such assistance to plan, develop, and implement eligible
practices in connection with such livestock operations in-
tended to protect or improve water quality and enhance
environmental protection.
(b) CONTRACTS.—Subject to subsection (e), the Sec-
retary shall provide assistance under the Livestock Water
Quality Conservation Program on the basis of a contract
between the Secretary and an owner or operator of a live-
stock operation. The Secretary may not enter into a con-
tract with an operator who is not also owner of the live-
stock operation unless the actual owner concurs in the
contract.
(c) TYPES OF ASSISTANCE.—Under a contract en-
tered into under subsection (b), the Secretary may provide
the owner or operator of a livestock operation who imple-
ments a eligible practice with technical assistance and
cost-sharing payments.
(d) APPLICATION AND TERM.—A contract entered
into under subsection (b) may apply to one or more eligible
practices. The contract shall have a term of not more than
10 years, as determined appropriate by the Secretary
based on the eligible practice or practices that are the
basis of the contract.
(e) APPROVAL BY COUNTY OR AREA COMMITTEE.—
Each contract under subsection (b) shall be subject to the
approval of the county or area committee established
under section 8(b)(5) of the Soil Conservation and Domes-
tic Allotment Act (16 U.S.C. 590h(b)(5)) for the county
or area within which the livestock operation subject to the
contract is located. In considering contracts for approval,
the county or area committee shall first consider for ap-
proval those contracts that are given a higher priority by
the Secretary under section 344.
SEC. 343. ASSISTANCE UNDER CONTRACT.
(a) COST-SHARING PAYMENTS.—The Federal share
of cost-sharing payments under a contract under the Live-
stock Water Quality Conservation Program to implement
one or more eligible practices shall not exceed 75 percent
of the total cost of the practice or practices, as determined
by the Secretary of Agriculture. The Secretary may fur-
ther reduce the Federal share on account of payments re-
ceived by the owner or operator from a State or local gov-
ernment for the same eligible practice.
(b) TECHNICAL ASSISTANCE.—
(1) FUNDING.—The Secretary shall allocate
funding under this subtitle for the provision of tech-
nical assistance according to the purpose and pro-
jected cost for which the technical assistance is pro-
vided in a fiscal year. The allocated amount may
vary according to the type of expertise required,
quantity of time involved, and other factors as deter-
mined appropriate by the Secretary. Funding shall
not exceed the projected cost to the Secretary of the
technical assistance provided in a fiscal year.
(2) OTHER AUTHORITIES.—The receipt of tech-
nical assistance under this subtitle shall not affect
the eligibility of an owner or operator of a livestock
operation to receive technical assistance under other
authorities of law available to the Secretary.
(c) NON-FEDERAL ASSISTANCE.—The Secretary may
request the services of a State water quality agency, State
fish and wildlife agency, State forestry agency, or any
other governmental or private resource considered appro-
priate to assist in providing the technical assistance nec-
essary for the development and implementation of an eligi-
ble practice.
(d) LIMITATIONS ON PAYMENTS.—The total amount
of cost-sharing payments made to a person under the
Livestock Water Quality Conservation Program may not
exceed—
(1) $10,000 for any fiscal year; or
(2) $50,000 for any multiyear contract.
(e) TREATMENT OF PAYMENTS.—Payments under
the Livestock Water Quality Conservation Program shall
be treated in the same manner as payments made under
the agricultural conservation program authorized by the
Soil Conservation and Domestic Allotment Act (16 U.S.C.
590a et seq.), as in effect on the day before the date of
the enactment of this Act.
100
SEC. 344. PRIORITIES IN EVALUATION OF CONTRACT OF-
FERS.
In evaluating contract offers under the Livestock
Water Quality Conservation Program, the Secretary of
Agriculture shall accord a higher priority to eligible prac-
tices for lands on which livestock production has been de-
termined to contribute to, or create, the potential for fail-
ure to meet applicable water quality standards or other
environmental objectives of a Federal or State law. In
evaluating the contract offers, and the accompanying
water quality plan prepared under section 345, the Sec-
retary shall consider recommendations made by the Natu-
ral Recourses Conservation Service in conjunction with
State and local soil conservation districts.
SEC. 345. WATER QUALITY PLANS.
(a) WATER QUALITY PLAN REQUIRED.—To be eligi-
ble to enter into a contract under the Livestock Water
Quality Conservation Program, an owner or operator of
a livestock operation shall prepare and submit to the Sec-
retary of Agriculture a plan of livestock operations that
incorporates such water quality conservation practices and
principles as may be determined by the Secretary to be
practicable to achieve the purposes for which the assist-
ance is provided.
(b) USE OF EXISTING PLANS.—For purposes of sat-
isfying the requirements of subsection (a), at the option
101
of the owner or operator, the owner or operator may rely
on a conservation plan developed pursuant to section 1212
of the Food Security Act of 1985 (16 U.S.C. 3812) or
any other conservation or natural resource plan required
for participation in any program within the jurisdiction
of the Secretary.
SEC. 346. MODIFICATION AND TERMINATION OF CON-
TRACTS.
(a) TERMINATION FOR VIOLATION.—The Secretary
of Agriculture may terminate a contract entered into with
an owner or operator of a livestock operation under the
Livestock Water Quality Conservation Program if the
owner or operator violates the terms and conditions of the
contract.
(b) VOLUNTARY MODIFICATION OR TERMINATION.—
An owner or operator of a livestock operation who enters
into a contract under the Livestock Water Quality Con-
servation Program may modify or terminate the contract
with the consent of the Secretary.
(c) REPAYMENT.—On the violation of a term or con-
dition of the contract under the Livestock Water Quality
Conservation Program at any time by the owner or opera-
tor of a livestock operation, the owner or operator shall
refund any financial assistance received under section 344
and forfeit any future payments under the contract. On
102
the transfer of the right and interest of an owner in land
subject to the contract, the owner shall refund all financial
assistance received by the owner under the contract unless
the transferee of the right and interest agrees to assume
all obligations of the owner under the contract.
SEC. 347. USE OF FUNDS OF COMMODITY CREDIT COR-
PORATION.
Notwithstanding any other law, the Secretary of Ag-
riculture shall allocate $380,000,000 of the funds of the
Commodity Credit Corporation for the seven-fiscal year
period beginning on October 1, 1995, to carry out the
Livestock Water Quality Conservation Program.
SEC. 348. REGULATIONS.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Agriculture shall issue
regulations to implement the Livestock Water Quality
Conservation Program.
Subtitle C—Highly Erodible
Cropland Conservation
SEC. 351. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE
CROPLAND CONSERVATION.
(a) CONSERVATION PLAN AND CONSERVATION SYS-
TEM.—Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended—
103
(1) by redesignating paragraphs (2) through
(16) as paragraphs (4) through (18), respectively;
and
(2) by inserting after paragraph (1) the follow-
ing new paragraphs:
‘‘(2) CONSERVATION
PLAN.—The term ‘con-
servation plan’ means the document that—
‘‘(A) applies to highly erodible cropland;
‘‘(B) implements the conservation system
applicable to such highly erodible cropland and
contains the decisions of the person with re-
spect to location, land use, tillage systems, and
conservation treatment measures and schedule;
and
‘‘(C) is approved by the local soil conserva-
tion district, in consultation with the local com-
mittees established under section 8(b)(5) of the
Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590h(b)(5)) and the Secretary, or
by the Secretary.
‘‘(3) CONSERVATION SYSTEM.—The term ‘con-
servation system’ means a combination of one or
more conservation measures or management prac-
tices that—
104
‘‘(A) are based upon local resource condi-
tions, available conservation technology, and the
standards and guidelines contained in the Natu-
ral Resources Conservation Service field office
technical guides; and
‘‘(B) are designed to achieve, in a cost ef-
fective and technically practicable manner, a
substantial reduction in soil erosion or a sub-
stantial improvement in soil conditions on a
field or group of fields containing highly erod-
ible cropland when compared to the level of ero-
sion or soil conditions that existed before the
application of the conservation measures and
management practices.’’.
(b) FIELD.—Paragraph (7) of such section, as redes-
ignated by subsection (a)(1), is amended to read as fol-
lows:
‘‘(7) FIELD.—The term ‘field’ means a part of
a farm which is separated from the balance of the
farm by permanent boundaries such as fences,
roads, permanent waterways, or other similar fea-
tures. At the option of the owner or operator of the
farm, croplines may also be used to delineate a field
if farming practices make it probable that such
croplines are not subject to change. Any highly erod-
105
ible land on which an agricultural commodity is pro-
duced after December 23, 1985, and that is not ex-
empt under section 1212 shall be considered as part
of the field in which such land was included on De-
cember 23, 1985, unless the Secretary permits modi-
fication of the boundaries of the field to carry out
this title.’’.
(c) HIGHLY ERODIBLE LAND.—Paragraph (9) of
such section, as redesignated by subsection (a)(1), is
amended by adding at the end the following new subpara-
graph:
‘‘(C) Not later than 60 days after the date of
the enactment of this subparagraph, the Secretary
shall publish in the Federal Register the universal
soil loss equation and wind erosion equation used by
the Department of Agriculture as of that date. The
Secretary may not change such equations after that
date except following notice and comment in a man-
ner consistent with section 553 of title 5, United
States Code.’’.
(d) CONFORMING AMENDMENTS.—Section 1212 of
such Act (16 U.S.C. 3812) is amended—
(1) in subsection (a)(2), by striking ‘‘that docu-
ments the decisions of the person with respect to lo-
cation, land use, tillage systems, and conservation
106
treatment measures and schedule and that is based
on the local Soil Conservation Service technical
guide and approved by the local soil conservation
district, in consultation with the local committees es-
tablished under section 8(b)(5) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) and the Secretary, or by the Secretary’’;
(2) in subsection (c)(3), by striking ‘‘based on
the local Soil Conservation Service technical guide
and approved by the local soil conservation district,
in consultation with the local committees established
under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) and
the Secretary’’;
(3) in subsection (e)(1)(A), by striking ‘‘con-
servation compliance plan’’ and inserting ‘‘conserva-
tion plan’’;
(4) in subsection (f)(1), by striking ‘‘that docu-
ments the decisions of such person with respect to
location, land use, tillage systems, and conservation
treatment measures and schedules prepared under
subsection (a)’’;
(5) in subsection (f)(3), by striking ‘‘prepared
under subsection (a)’’; and
107
(6) in subsection (f)(4), by striking ‘‘that docu-
ments the decisions of such person with respect to
location, land use, tillage systems, and conservation
treatment measures and schedules prepared under
subsection (a)’’.
SEC. 352. DEVELOPMENT AND IMPLEMENTATION OF CON-
SERVATION PLANS AND CONSERVATION SYS-
TEMS.
(a) DEVELOPMENT
AND IMPLEMENTATION.—The
Food Security Act of 1985 is amended—
(1) by redesignating section 1213 (16 U.S.C.
3813) as section 1214; and
(2) by inserting after section 1212 (16 U.S.C.
3812) the following new section:
‘‘SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CON-
SERVATION PLANS AND CONSERVATION SYS-
TEMS.
‘‘(a) TECHNICAL REQUIREMENTS.—In connection
with the standards and guidelines contained in Natural
Resources Conservation Service field office technical
guides applicable to the development and use of conserva-
tion measures and management practices as part of a con-
servation system, the Secretary shall ensure that such
standards and guidelines permit a person to use a con-
servation system that—
108
‘‘(1) is technically and economically feasible;
‘‘(2) is based on local resource conditions and
available conservation technology;
‘‘(3) is cost-effective; and
‘‘(4) does not cause undue economic hardship
on the person applying the conservation system
under the person’s conservation plan.
‘‘(b) MEASUREMENT OF EROSION REDUCTION.—For
the purpose of determining whether there is a substantial
reduction in soil erosion on a field containing highly erod-
ible cropland, the measurement of erosion reduction
achieved by the application of a conservation system under
a person’s conservation plan shall be based upon the level
of erosion at the time of the measurement compared to
the level of erosion that existed before the implementation
of the conservation measures and management practices
provided for in the conservation system.
‘‘(c) RESIDUE MEASUREMENT.—
‘‘(1) RESPONSIBILITIES OF THE SECRETARY.—
For the purpose of measuring the level of residue on
a field, the Secretary shall—
‘‘(A) take into account any residue incor-
porated into the top two inches of soil, as well
as the growing crop, in such measurement; and
109
‘‘(B) provide for the acceptance and use of
information and data voluntarily provided by
the producer regarding the field.
‘‘(2) ACCEPTANCE
OF
PRODUCER
MEASURE-
MENTS.—Annual residue measurements supplied by
a producer, and certified by a third person approved
by the Secretary, shall be used by the Secretary if
such measurements indicate that, on the basis of a
five-year average, the residue level for the field
meets the level required in the conservation plan.
‘‘(d) CERTIFICATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—For the purpose of deter-
mining the eligibility of a person for program bene-
fits specified in section 1211 at the time application
is made for such benefits, the Secretary shall permit
the person to certify that the person is complying
with the person’s conservation plan.
‘‘(2) STATUS REVIEWS.—If a person makes a
certification under paragraph (1), the Secretary
shall not be required to carry out a review of the
status of compliance of the person with the con-
servation plan under which such conservation system
is being applied.
‘‘(3) REVISIONS
AND
MODIFICATIONS.—The
Secretary shall permit a person who makes a certifi-
110
cation under paragraph (1) with respect to a con-
servation plan to revise the conservation plan in any
manner, so long as the same level of conservation
treatment provided for by the conservation system
under the person’s conservation plan is maintained.
The Secretary may not revise the person’s conserva-
tion plan without the concurrence of the person.
‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall
provide technical assistance to a person throughout the de-
velopment, revision, and application of the conservation
plan and any conservation system of the person. At the
request of the person, the Secretary may provide technical
assistance regarding conservation measures and manage-
ment practices for other lands of the person that do not
contain highly erodible cropland.
‘‘(f) ENCOURAGEMENT OF ON-FARM RESEARCH.—In
order to encourage on-farm conservation research, the
Secretary shall allow a person to include in the person’s
conservation plan or a conservation system under the plan,
on a field trial basis, practices that are not currently ap-
proved but that the Secretary considers have a reasonable
likelihood of success.’’.
(b) 
TREATMENT
OF
TECHNICAL
DETERMINA-
TIONS.—Section 226(d)(1) of the Department of Agri-
culture Reorganization Act of 1994 (7 U.S.C. 6932(d)(1))
138
measures and practices necessary to be considered
to actively restoring the subject wetland.’’.
(g) DETERMINATIONS.—Subsection (k) of such sec-
tion (as redesignated by subsection (b)(1)) is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘and
a representative of the Fish and Wildlife Serv-
ice’’; and
(B) in the second sentence, by striking ‘‘,
who in’’ and all that follows through ‘‘Service’’;
and
(2) in paragraph (2), by striking ‘‘and a rep-
resentative’’ and all that follows through ‘‘national
offices’’ and inserting ‘‘shall report to the Natural
Resources Conservation Service’’.
(h) MITIGATION BANKING.—Such section is further
amended by adding at the end the following new sub-
section:
‘‘(l) MITIGATION BANKING PROGRAM.—The Sec-
retary shall establish a pilot program for mitigation bank-
ing of wetlands to assist owners and operators in comply-
ing with the wetland conservation requirements of this
subtitle.’’.