H. R. 6124—71 
SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM. 
(a) EXTENSION.—Section 153(a) of the Food Security Act of 
1985 (15 U.S.C. 713a–14(a)) is amended by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
(b) COMPLIANCE WITH TRADE AGREEMENTS.—Section 153 of 
the Food Security Act of 1985 (15 U.S.C. 713a–14) is amended— 
(1) in subsection (c), by striking paragraph (3) and inserting 
the following: 
‘‘(3) the maximum volume of dairy product exports allow-
able consistent with the obligations of the United States under 
the Uruguay Round Agreements approved under section 101 
of the Uruguay Round Agreements Act (19 U.S.C. 3511) is 
exported under the program each year (minus the volume sold 
under section 1163 of this Act during that year), except to 
the extent that the export of such a volume under the program 
would, in the judgment of the Secretary, exceed the limitations 
on the value permitted under subsection (f); and’’; and. 
(2) in subsection (f), by striking paragraph (1) and inserting 
the following: 
‘‘(1) FUNDS AND COMMODITIES.—Except as provided in para-
graph (2), the Commodity Credit Corporation shall in each 
year use money and commodities for the program under this 
section in the maximum amount consistent with the obligations 
of the United States under the Uruguay Round Agreements 
approved under section 101 of the Uruguay Round Agreements 
Act (19 U.S.C. 3511), minus the amount expended under section 
1163 of this Act during that year.’’. 
SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT 
PROCEDURES. 
Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 
reenacted with amendments by the Agricultural Marketing Agree-
ment Act of 1937, is amended by striking subsection (17) and 
inserting the following: 
‘‘(17) PROVISIONS APPLICABLE TO AMENDMENTS.— 
‘‘(A) APPLICABILITY TO AMENDMENTS.—The provisions 
of this section and section 8d applicable to orders shall 
be applicable to amendments to orders. 
‘‘(B) SUPPLEMENTAL RULES OF PRACTICE.— 
‘‘(i) IN
GENERAL.—Not later than 60 days after 
the date of enactment of this subparagraph, the Sec-
retary shall issue, using informal rulemaking, supple-
mental rules of practice to define guidelines and time-
frames for the rulemaking process relating to amend-
ments to orders. 
‘‘(ii) ISSUES.—At a minimum, the supplemental 
rules of practice shall establish— 
‘‘(I) proposal submission requirements; 
‘‘(II) pre-hearing information session specifica-
tions; 
‘‘(III) written testimony and data request 
requirements; 
‘‘(IV) public participation timeframes; and 
‘‘(V) electronic document submission stand-
ards. 
‘‘(iii) EFFECTIVE DATE.—The supplemental rules of 
practice shall take effect not later than 120 days after
H. R. 6124—72 
the date of enactment of this subparagraph, as deter-
mined by the Secretary. 
‘‘(C) HEARING TIMEFRAMES.— 
‘‘(i) IN GENERAL.—Not more than 30 days after 
the receipt of a proposal for an amendment hearing 
regarding a milk marketing order, the Secretary 
shall— 
‘‘(I) issue a notice providing an action plan 
and expected timeframes for completion of the 
hearing not more than 120 days after the date 
of the issuance of the notice; 
‘‘(II)(aa) issue a request for additional informa-
tion to be used by the Secretary in making a 
determination regarding the proposal; and 
‘‘(bb) if the additional information is not pro-
vided to the Secretary within the timeframe 
requested by the Secretary, issue a denial of the 
request; or 
‘‘(III) issue a denial of the request. 
‘‘(ii) REQUIREMENT.—A post-hearing brief may be 
filed under this paragraph not later than 60 days after 
the date of an amendment hearing regarding a milk 
marketing order. 
‘‘(iii) RECOMMENDED DECISIONS.—A recommended 
decision on a proposed amendment to an order shall 
be issued not later than 90 days after the deadline 
for the submission of post-hearing briefs. 
‘‘(iv) FINAL DECISIONS.—A final decision on a pro-
posed amendment to an order shall be issued not later 
than 60 days after the deadline for submission of com-
ments and exceptions to the recommended decision 
issued under clause (iii). 
‘‘(D) INDUSTRY ASSESSMENTS.—If the Secretary deter-
mines it is necessary to improve or expedite rulemaking 
under this subsection, the Secretary may impose an assess-
ment on the affected industry to supplement appropriated 
funds for the procurement of service providers, such as 
court reporters. 
‘‘(E) USE OF INFORMAL RULEMAKING.—The Secretary 
may use rulemaking under section 553 of title 5, United 
States Code, to amend orders, other than provisions of 
orders that directly affect milk prices. 
‘‘(F) AVOIDING DUPLICATION.—The Secretary shall not 
be required to hold a hearing on any amendment proposed 
to be made to a milk marketing order in response to an 
application for a hearing on the proposed amendment if— 
‘‘(i) the application requesting the hearing is 
received by the Secretary not later than 90 days after 
the date on which the Secretary has announced the 
decision on a previously proposed amendment to that 
order; and 
‘‘(ii) the 2 proposed amendments are essentially 
the same, as determined by the Secretary. 
‘‘(G) MONTHLY FEED AND FUEL COSTS FOR MAKE ALLOW-
ANCES.—As part of any hearing to adjust make allowances 
under marketing orders commencing prior to September 
30, 2012, the Secretary shall—
H. R. 6124—73 
‘‘(i) determine the average monthly prices of feed 
and fuel incurred by dairy producers in the relevant 
marketing area; 
‘‘(ii) consider the most recent monthly feed and 
fuel price data available; and 
‘‘(iii) consider those prices in determining whether 
or not to adjust make allowances.’’. 
SEC. 1505. DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended 
by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) CLASS I MILK.—The term ‘‘Class I milk’’ means milk 
(including milk components) classified as Class I milk under 
a Federal milk marketing order. 
(2) ELIGIBLE PRODUCTION.—The term ‘‘eligible production’’ 
means milk produced by a producer in a participating State. 
(3) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal 
milk marketing order’’ means an order issued under section 
8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
with amendments by the Agricultural Marketing Agreement 
Act of 1937. 
(4) PARTICIPATING STATE.—The term ‘‘participating State’’ 
means each State. 
(5) PRODUCER.—The term ‘‘producer’’ means an individual 
or entity that directly or indirectly (as determined by the Sec-
retary)— 
(A) shares in the risk of producing milk; and 
(B) 
makes 
contributions 
(including 
land, 
labor, 
management, equipment, or capital) to the dairy farming 
operation of the individual or entity that are at least 
commensurate with the share of the individual or entity 
of the proceeds of the operation. 
(b) PAYMENTS.—The Secretary shall offer to enter into contracts 
with producers on a dairy farm located in a participating State 
under which the producers receive payments on eligible production. 
(c) AMOUNT.—Payments to a producer under this section shall 
be calculated by multiplying (as determined by the Secretary)— 
(1) the payment quantity for the producer during the 
applicable month established under subsection (e); 
(2) the amount equal to— 
(A) $16.94 per hundredweight, as adjusted under sub-
section (d); less 
(B) the Class I milk price per hundredweight in Boston 
under the applicable Federal milk marketing order; by 
(3)(A) for the period beginning October 1, 2007, and ending 
September 30, 2008, 34 percent; 
(B) for the period beginning October 1, 2008, and ending 
August 31, 2012, 45 percent; and 
(C) for the period beginning September 1, 2012, and there-
after, 34 percent. 
(d) PAYMENT RATE ADJUSTMENT FOR FEED PRICES.— 
(1) INITIAL
ADJUSTMENT
AUTHORITY.—During the period 
beginning on January 1, 2008, and ending on August 31, 2012, 
if the National Average Dairy Feed Ration Cost for a month 
during that period is greater than $7.35 per hundredweight,
H. R. 6124—74 
the amount specified in subsection (c)(2)(A) used to determine 
the payment rate for that month shall be increased by 45 
percent of the percentage by which the National Average Dairy 
Feed Ration Cost exceeds $7.35 per hundredweight. 
(2) SUBSEQUENT ADJUSTMENT AUTHORITY.—For any month 
beginning on or after September 1, 2012, if the National Aver-
age Dairy Feed Ration Cost for the month is greater than 
$9.50 per hundredweight, the amount specified in subsection 
(c)(2)(A) used to determine the payment rate for that month 
shall be increased by 45 percent of the percentage by which 
the National Average Dairy Feed Ration Cost exceeds $9.50 
per hundredweight. 
(3) NATIONAL AVERAGE DAIRY FEED RATION COST.—For each 
month, the Secretary shall calculate a National Average Dairy 
Feed Ration Cost per hundredweight using the same procedures 
(adjusted to a hundredweight basis) used to calculate the feed 
components of the estimated price of 16% Mixed Dairy Feed 
per pound noted on page 33 of the USDA March 2008 Agricul-
tural Prices publication (including the data and factors noted 
in footnote 4). 
(e) PAYMENT QUANTITY.— 
(1) IN GENERAL.—Subject to paragraph (2), the payment 
quantity for a producer during the applicable month under 
this section shall be equal to the quantity of eligible production 
marketed by the producer during the month. 
(2) LIMITATION.— 
(A) IN GENERAL.—The payment quantity for all pro-
ducers on a single dairy operation for which the producers 
receive payments under subsection (b) shall not exceed— 
(i) for the period beginning October 1, 2007, and 
ending September 30, 2008, 2,400,000 pounds; 
(ii) for the period beginning October 1, 2008, and 
ending August 31, 2012, 2,985,000 pounds for each 
fiscal year; and 
(iii) 
effective 
beginning 
September 
1, 
2012, 
2,400,000 pounds per fiscal year. 
(B) STANDARDS.—For purposes of determining whether 
producers are producers on separate dairy operations or 
a single dairy operation, the Secretary shall apply the 
same standards as were applied in implementing the dairy 
program under section 805 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related 
Agencies Appropriations Act, 2001 (as enacted into law 
by Public Law 106–387; 114 Stat. 1549A–50). 
(3) RECONSTITUTION.—The Secretary shall ensure that a 
producer does not reconstitute a dairy operation for the sole 
purpose of receiving additional payments under this section. 
(f) PAYMENTS.—A payment under a contract under this section 
shall be made on a monthly basis not later than 60 days after 
the last day of the month for which the payment is made. 
(g) SIGNUP.—The Secretary shall offer to enter into contracts 
under this section during the period beginning on the date that 
is 90 days after the date of enactment of this Act and ending 
on September 30, 2012. 
(h) DURATION OF CONTRACT.— 
(1) IN GENERAL.—Except as provided in paragraph (2), any 
contract entered into by producers on a dairy farm under this
H. R. 6124—75 
section shall cover eligible production marketed by the pro-
ducers on the dairy farm during the period starting with the 
first day of month the producers on the dairy farm enter into 
the contract and ending on September 30, 2012. 
(2) VIOLATIONS.—If a producer violates the contract, the 
Secretary may— 
(A) terminate the contract and allow the producer to 
retain any payments received under the contract; or 
(B) allow the contract to remain in effect and require 
the producer to repay a portion of the payments received 
under the contract based on the severity of the violation. 
SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM. 
(a) 
EXTENSION
OF
DAIRY
PROMOTION
AND
RESEARCH 
AUTHORITY.—Section 113(e)(2) of the Dairy Production Stabilization 
Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ‘‘2007’’ 
and inserting ‘‘2012’’. 
(b) DEFINITION OF UNITED STATES FOR PROMOTION PROGRAM.— 
Section 111 of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4502) is amended— 
(1) by striking subsection (l) and inserting the following: 
‘‘(l) the term ‘United States’, when used in a geographical 
sense, means all of the States, the District of Columbia, and the 
Commonwealth of Puerto Rico;’’; and 
(2) in subsection (m), by striking ‘‘(as defined in subsection 
(l))’’. 
(c) DEFINITION OF UNITED STATES FOR RESEARCH PROGRAM.— 
Section 130 of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4531)) is amended by striking paragraph (12) and inserting 
the following: 
‘‘(12) the term ‘United States’, when used in a geographical 
sense, means all of the States, the District of Columbia, and 
the Commonwealth of Puerto Rico.’’. 
(d) ASSESSMENT RATE FOR IMPORTED DAIRY PRODUCTS.—Section 
113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4504(g)) is amended by striking paragraph (3) and inserting the 
following: 
‘‘(3) RATE.— 
‘‘(A) IN GENERAL.—The rate of assessment for milk 
produced in the United States prescribed by the order 
shall be 15 cents per hundredweight of milk for commercial 
use or the equivalent thereof, as determined by the Sec-
retary. 
‘‘(B) IMPORTED DAIRY PRODUCTS.—The rate of assess-
ment for imported dairy products prescribed by the order 
shall be 7.5 cents per hundredweight of milk for commercial 
use or the equivalent thereof, as determined by the Sec-
retary.’’. 
(e) TIME
AND
METHOD
OF
IMPORTER
PAYMENTS.—Section 
113(g)(6) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4504(g)(6)) is amended— 
(1) by striking subparagraph (B); and 
(2) by redesignating subparagraph (C) as subparagraph 
(B). 
(f) REFUND
OF ASSESSMENTS
ON CERTAIN IMPORTED DAIRY 
PRODUCTS.—Section 113(g) of the Dairy Production Stabilization
H. R. 6124—76 
Act of 1983 (7 U.S.C. 4504(g)) is amended by adding at the end 
the following: 
‘‘(7) REFUND OF ASSESSMENTS ON CERTAIN IMPORTED PROD-
UCTS.— 
‘‘(A) IN GENERAL.—An importer shall be entitled to 
a refund of any assessment paid under this subsection 
on imported dairy products imported under a contract 
entered into prior to the date of enactment of the Food, 
Conservation, and Energy Act of 2008. 
‘‘(B) EXPIRATION.—Refunds under subparagraph (A) 
shall expire 1 year after the date of enactment of the 
Food, Conservation, and Energy Act of 2008.’’. 
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING 
PROCEDURES FOR NONFAT DRY MILK. 
Not later than 90 days after the date of enactment of this 
Act, the Secretary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report regarding Depart-
ment of Agriculture reporting procedures for nonfat dry milk and 
the impact of the procedures on Federal milk marketing order 
minimum prices during the period beginning on July 1, 2006, and 
ending on the date of enactment of this Act. 
SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION. 
(a) ESTABLISHMENT.—Subject to the availability of appropria-
tions to carry out this section, the Secretary shall establish a 
commission to be known as the ‘‘Federal Milk Marketing Order 
Review Commission’’ (referred to in this section as the ‘‘commis-
sion’’), which shall conduct a comprehensive review and evaluation 
of— 
(1) the Federal milk marketing order system in effect on 
the date of establishment of the commission; and 
(2) non-Federal milk marketing order systems. 
(b) ELEMENTS OF REVIEW AND EVALUATION.—As part of the 
review and evaluation under subsection (a), the commission shall 
consider legislative and regulatory options for— 
(1) ensuring that the competitiveness of dairy products 
with other competing products in the marketplace is preserved 
and enhanced; 
(2) enhancing the competitiveness of American dairy pro-
ducers in world markets; 
(3) ensuring the competitiveness and transparency in dairy 
pricing; 
(4) streamlining and expediting the process by which 
amendments to Federal milk market orders are adopted; 
(5) simplifying the Federal milk marketing order system; 
(6) evaluating whether the Federal milk marketing order 
system serves the interests of dairy producers, consumers, and 
dairy processors; and 
(7) evaluating the nutritional composition of milk, including 
the potential benefits and costs of adjusting the milk content 
standards. 
(c) MEMBERSHIP.— 
(1) COMPOSITION.—The commission shall consist of 14 mem-
bers. 
(2) MEMBERS.—As soon as practicable after the date on 
which funds are first made available to carry out this section,
H. R. 6124—77 
the Secretary shall appoint members to the commission 
according to the following requirements: 
(A) At least 1 member shall represent a national con-
sumer organization. 
(B) At least 4 members shall represent land-grant 
universities or NLGCA Institutions (as defined in section 
1404 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3103)) with accredited 
dairy economic programs, with at least 2 of those members 
being experts in the field of economics. 
(C) At least 1 member shall represent the food and 
beverage retail sector. 
(D) 4 dairy producers and 4 dairy processors, appointed 
so as to balance geographical distribution of milk produc-
tion and dairy processing, reflect all segments of dairy 
processing, and represent all regions of the United States 
equitably, including States that operate outside of a Federal 
milk marketing order. 
(3) CHAIR.—The commission shall elect 1 of the appointed 
members of the commission to serve as chairperson for the 
duration of the proceedings of the commission. 
(4) VACANCY.—Any vacancy occurring before the termi-
nation of the commission shall be filled in the same manner 
as the original appointment. 
(5) COMPENSATION.—Members of the commission shall 
serve without compensation, but shall be reimbursed by the 
Secretary from existing budget authority for necessary and 
reasonable expenses incurred in the performance of the duties 
of the commission. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after the date 
of the first meeting of the commission, the commission shall 
submit to Congress and the Secretary a report describing the 
results of the review and evaluation conducted under this sec-
tion, including such recommendations regarding the legislative 
and regulatory options considered under subsection (b) as the 
commission considers to be appropriate. 
(2) OPINIONS.—The report findings shall reflect, to the max-
imum extent practicable, a consensus opinion of the commission 
members, but the report may include majority and minority 
findings regarding those matters for which consensus was not 
reached. 
(e) ADVISORY NATURE.—The commission is wholly advisory in 
nature, and the recommendations of the commission are nonbinding. 
(f) NO EFFECT ON EXISTING PROGRAMS.—The Secretary shall 
not allow the existence of the commission to impede, delay, or 
otherwise affect any decisionmaking process of the Department 
of Agriculture, including any rulemaking procedures planned, pro-
posed, or near completion. 
(g) ADMINISTRATIVE ASSISTANCE.—The Secretary shall provide 
administrative support to the commission, and expend to carry 
out this section such funds as necessary from budget authority 
available to the Secretary. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.
H. R. 6124—78 
(i) TERMINATION.—The commission shall terminate effective on 
the date of the submission of the report under subsection (d). 
SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES. 
(a) ELECTRONIC REPORTING.—Section 273 of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1637b) is amended— 
(1) by redesignating subsection (d) as subsection (e); and 
(2) by inserting after subsection (c) the following: 
‘‘(d) ELECTRONIC REPORTING.— 
‘‘(1) IN GENERAL.—Subject to the availability of funds under 
paragraph (3), the Secretary shall establish an electronic 
reporting system to carry out this section. 
‘‘(2) FREQUENCY OF REPORTS.—After the establishment of 
the electronic reporting system in accordance with paragraph 
(1), the Secretary shall increase the frequency of the reports 
required under this section. 
‘‘(3) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are 
authorized to be appropriated such sums as are necessary to 
carry out this subsection.’’. 
(b) QUARTERLY AUDITS.—Section 273(c) of the Agricultural Mar-
keting Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking 
paragraph (3) and inserting the following: 
‘‘(3) VERIFICATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall take such 
actions as the Secretary considers necessary to verify the 
accuracy of the information submitted or reported under 
this subtitle. 
‘‘(B) QUARTERLY
AUDITS.—The Secretary shall quar-
terly conduct an audit of information submitted or reported 
under this subtitle and compare such information with 
other related dairy market statistics.’’. 
Subtitle F—Administration 
SEC. 1601. ADMINISTRATION GENERALLY. 
(a) USE OF COMMODITY CREDIT CORPORATION.—Except as other-
wise provided in this title, the Secretary shall use the funds, facili-
ties, and authorities of the Commodity Credit Corporation to carry 
out this title. 
(b) DETERMINATIONS
BY SECRETARY.—A determination made 
by the Secretary under this title shall be final and conclusive. 
(c) REGULATIONS.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, not later than 90 days after the date of enactment 
of this Act, the Secretary and the Commodity Credit Corpora-
tion, as appropriate, shall promulgate such regulations as are 
necessary to implement this title and the amendments made 
by this title. 
(2) PROCEDURE.—The promulgation of the regulations and 
administration of this title and the amendments made by this 
title shall be made without regard to— 
(A) chapter 35 of title 44, United States Code (com-
monly known as the ‘‘Paperwork Reduction Act’’); 
(B) the Statement of Policy of the Secretary of Agri-
culture effective July 24, 1971 (36 Fed. Reg. 13804),
H. R. 6124—79 
relating to notices of proposed rulemaking and public 
participation in rulemaking; and 
(C) the notice and comment provisions of section 553 
of title 5, United States Code. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In 
carrying out this subsection, the Secretary shall use the 
authority provided under section 808 of title 5, United States 
Code. 
(4) INTERIM
REGULATIONS.—Notwithstanding paragraphs 
(1) and (2), the Secretary shall implement the amendments 
made by sections 1603 and 1604 for the 2009 crop, fiscal, 
or program year, as appropriate, through the promulgation 
of an interim rule. 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE AGREEMENTS 
COMPLIANCE.— 
(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Sec-
retary determines that expenditures under this title that are 
subject to the total allowable domestic support levels under 
the Uruguay Round Agreements (as defined in section 2 of 
the Uruguay Round Agreements Act (19 U.S.C. 3501)) will 
exceed such allowable levels for any applicable reporting period, 
the Secretary shall, to the maximum extent practicable, make 
adjustments in the amount of such expenditures during that 
period to ensure that such expenditures do not exceed such 
allowable levels. 
(2) CONGRESSIONAL
NOTIFICATION.—Before making any 
adjustment under paragraph (1), the Secretary shall submit 
to the Committee on Agriculture of the House of Representa-
tives or the Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report describing the determination made under 
that paragraph and the extent of the adjustment to be made. 
(e) TREATMENT OF ADVANCE PAYMENT OPTION.—Section 1601(d) 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
7991(d)) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the end; 
(2) in paragraph (2), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(3) the advance payment of direct payments and counter- 
cyclical payments under title I of the Food, Conservation, and 
Energy Act of 2008.’’. 
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY. 
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The following 
provisions of the Agricultural Adjustment Act of 1938 shall not 
be applicable to the 2008 through 2012 crops of covered commod-
ities, peanuts, and sugar and shall not be applicable to milk during 
the period beginning on the date of enactment of this Act through 
December 31, 2012: 
(1) Parts II through V of subtitle B of title III (7 U.S.C. 
1326 et seq.). 
(2) In the case of upland cotton, section 377 (7 U.S.C. 
1377). 
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.). 
(4) Title IV (7 U.S.C. 1401 et seq.). 
(b) AGRICULTURAL ACT OF 1949.—The following provisions of 
the Agricultural Act of 1949 shall not be applicable to the 2008
H. R. 6124—80 
through 2012 crops of covered commodities, peanuts, and sugar 
and shall not be applicable to milk during the period beginning 
on the date of enactment of this Act and through December 31, 
2012: 
(1) Section 101 (7 U.S.C. 1441). 
(2) Section 103(a) (7 U.S.C. 1444(a)). 
(3) Section 105 (7 U.S.C. 1444b). 
(4) Section 107 (7 U.S.C. 1445a). 
(5) Section 110 (7 U.S.C. 1445e). 
(6) Section 112 (7 U.S.C. 1445g). 
(7) Section 115 (7 U.S.C. 1445k). 
(8) Section 201 (7 U.S.C. 1446). 
(9) Title III (7 U.S.C. 1447 et seq.). 
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections 
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431). 
(11) Title V (7 U.S.C. 1461 et seq.). 
(12) Title VI (7 U.S.C. 1471 et seq.). 
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—The joint reso-
lution entitled ‘‘A joint resolution relating to corn and wheat mar-
keting quotas under the Agricultural Adjustment Act of 1938, as 
amended’’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall 
not be applicable to the crops of wheat planted for harvest in 
the calendar years 2008 through 2012. 
SEC. 1603. PAYMENT LIMITATIONS. 
(a) EXTENSION OF LIMITATIONS.—Sections 1001 and 1001C(a) 
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308–3(a)) are 
amended by striking ‘‘Farm Security and Rural Investment Act 
of 2002’’ each place it appears and inserting ‘‘Food, Conservation, 
and Energy Act of 2008’’. 
(b) REVISION OF LIMITATIONS.— 
(1) DEFINITIONS.—Section 1001(a) of the Food Security Act 
of 1985 (7 U.S.C. 1308(a)) is amended— 
(A) in the matter preceding paragraph (1), by inserting 
‘‘through section 1001F’’after ‘‘section’’; 
(B) by striking paragraph (2) and redesignating para-
graph (3) as paragraph (5); and 
(C) by inserting after paragraph (1) the following: 
‘‘(2) FAMILY MEMBER.—The term ‘family member’ means 
a person to whom a member in the farming operation is related 
as lineal ancestor, lineal descendant, sibling, spouse, or other-
wise by marriage. 
‘‘(3) LEGAL ENTITY.—The term ‘legal entity’ means an entity 
that is created under Federal or State law and that— 
‘‘(A) owns land or an agricultural commodity; or 
‘‘(B) produces an agricultural commodity. 
‘‘(4) PERSON.—The term ‘person’ means a natural person, 
and does not include a legal entity.’’. 
(2) LIMITATION
ON
DIRECT
PAYMENTS
AND
COUNTER- 
CYCLICAL PAYMENTS.—Section 1001 of the Food Security Act 
of 1985 (7 U.S.C. 1308) is amended by striking subsections 
(b), (c), and (d) and inserting the following: 
‘‘(b) LIMITATION ON DIRECT PAYMENTS, COUNTER-CYCLICAL PAY-
MENTS, AND ACRE PAYMENTS FOR COVERED COMMODITIES (OTHER 
THAN PEANUTS).— 
‘‘(1) DIRECT PAYMENTS.—The total amount of direct pay-
ments received, directly or indirectly, by a person or legal
H. R. 6124—81 
entity (except a joint venture or a general partnership) for 
any crop year under subtitle A of title I of the Food, Conserva-
tion, and Energy Act of 2008 for 1 or more covered commodities 
(except for peanuts) may not exceed— 
‘‘(A) in the case of a person or legal entity that does 
not participate in the average crop revenue election pro-
gram under section 1105 of that Act, $40,000; or 
‘‘(B) in the case of a person or legal entity that partici-
pates in the average crop revenue election program under 
section 1105 of that Act, an amount equal to— 
‘‘(i) the payment limit specified in subparagraph 
(A); less 
‘‘(ii) the amount of the reduction in direct payments 
under section 1105(a)(1) of that Act. 
‘‘(2) COUNTER-CYCLICAL PAYMENTS.—In the case of a person 
or legal entity (except a joint venture or a general partnership) 
that does not participate in the average crop revenue election 
program under section 1105 of the Food, Conservation, and 
Energy Act of 2008, the total amount of counter-cyclical pay-
ments received, directly or indirectly, by the person or legal 
entity for any crop year under subtitle A of title I of that 
Act for 1 or more covered commodities (except for peanuts) 
may not exceed $65,000. 
‘‘(3) ACRE AND COUNTER-CYCLICAL PAYMENTS.—In the case 
of a person or legal entity (except a joint venture or a general 
partnership) that participates in the average crop revenue elec-
tion program under section 1105 of the Food, Conservation, 
and Energy Act of 2008, the total amount of average crop 
revenue election payments and counter-cyclical payments 
received, directly or indirectly, by the person or legal entity 
for any crop year for 1 or more covered commodities (except 
for peanuts) may not exceed the sum of— 
‘‘(A) $65,000; and 
‘‘(B) the amount by which the direct payment limitation 
is reduced under paragraph (1)(B). 
‘‘(c) LIMITATION ON DIRECT PAYMENTS, COUNTER-CYCLICAL PAY-
MENTS, AND ACRE PAYMENTS FOR PEANUTS.— 
‘‘(1) DIRECT PAYMENTS.—The total amount of direct pay-
ments received, directly or indirectly, by a person or legal 
entity (except a joint venture or a general partnership) for 
any crop year under subtitle C of title I of the Food, Conserva-
tion, and Energy Act of 2008 for peanuts may not exceed— 
‘‘(A) in the case of a person or legal entity that does 
not participate in the average crop revenue election pro-
gram under section 1105 of that Act, $40,000; or 
‘‘(B) in the case of a person or legal entity that partici-
pates in the average crop revenue election program under 
section 1105 of that Act, an amount equal to— 
‘‘(i) the payment limit specified in subparagraph 
(A); less 
‘‘(ii) the amount of the reduction in direct payments 
under section 1105(a)(1) of that Act. 
‘‘(2) COUNTER-CYCLICAL PAYMENTS.—In the case of a person 
or legal entity (except a joint venture or a general partnership) 
that does not participate in the average crop revenue election 
program under section 1105 of the Food, Conservation, and
H. R. 6124—82 
Energy Act of 2008, the total amount of counter-cyclical pay-
ments received, directly or indirectly, by the person or legal 
entity for any crop year under subtitle C of title I of that 
Act for peanuts may not exceed $65,000. 
‘‘(3) ACRE AND COUNTER-CYCLICAL PAYMENTS.—In the case 
of a person or legal entity (except a joint venture or a general 
partnership) that participates in the average crop revenue elec-
tion program under section 1105 of the Food, Conservation, 
and Energy Act of 2008, the total amount of average crop 
revenue election payments received, directly or indirectly, by 
the person or legal entity for any crop year for peanuts may 
not exceed the sum of— 
‘‘(A) $65,000; and 
‘‘(B) the amount by which the direct payment limitation 
is reduced under paragraph (1)(B). 
‘‘(d) LIMITATION
ON APPLICABILITY.—Nothing in this section 
authorizes any limitation on any benefit associated with the mar-
keting assistance loan program or the loan deficiency payment 
program under title I of the Food, Conservation, and Energy Act 
of 2008.’’. 
(3) DIRECT ATTRIBUTION.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended— 
(A) by striking subsections (e) and (f) and redesignating 
subsection (g) as subsection (h); and 
(B) by inserting after subsection (d) the following: 
‘‘(e) ATTRIBUTION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—In implementing subsections (b) and (c) 
and a program described in paragraphs (1)(C) and (2)(B) of 
section 1001D(b), the Secretary shall issue such regulations 
as are necessary to ensure that the total amount of payments 
are attributed to a person by taking into account the direct 
and indirect ownership interests of the person in a legal entity 
that is eligible to receive the payments. 
‘‘(2) PAYMENTS TO A PERSON.—Each payment made directly 
to a person shall be combined with the pro rata interest of 
the person in payments received by a legal entity in which 
the person has a direct or indirect ownership interest unless 
the payments of the legal entity have been reduced by the 
pro rata share of the person. 
‘‘(3) PAYMENTS TO A LEGAL ENTITY.— 
‘‘(A) IN GENERAL.—Each payment made to a legal entity 
shall be attributed to those persons who have a direct 
or indirect ownership interest in the legal entity unless 
the payment to the legal entity has been reduced by the 
pro rata share of the person. 
‘‘(B) ATTRIBUTION OF PAYMENTS.— 
‘‘(i) PAYMENT LIMITS.—Except as provided in clause 
(ii), payments made to a legal entity shall not exceed 
the amounts specified in subsections (b) and (c). 
‘‘(ii) EXCEPTION FOR JOINT VENTURES AND GENERAL 
PARTNERSHIPS.—Payments made to a joint venture or 
a general partnership shall not exceed, for each pay-
ment specified in subsections (b) and (c), the amount 
determined by multiplying the maximum payment 
amount specified in subsections (b) and (c) by the 
number of persons and legal entities (other than joint
H. R. 6124—83 
ventures and general partnerships) that comprise the 
ownership of the joint venture or general partnership. 
‘‘(iii) REDUCTION.—Payments made to a legal entity 
shall be reduced proportionately by an amount that 
represents the direct or indirect ownership in the legal 
entity by any person or legal entity that has otherwise 
exceeded the applicable maximum payment limitation. 
‘‘(4) 4 LEVELS OF ATTRIBUTION FOR EMBEDDED LEGAL ENTI-
TIES.— 
‘‘(A) IN GENERAL.—Attribution of payments made to 
legal entities shall be traced through 4 levels of ownership 
in legal entities. 
‘‘(B) FIRST
LEVEL.—Any payments made to a legal 
entity (a first-tier legal entity) that is owned in whole 
or in part by a person shall be attributed to the person 
in an amount that represents the direct ownership in the 
first-tier legal entity by the person. 
‘‘(C) SECOND LEVEL.— 
‘‘(i) IN GENERAL.—Any payments made to a first- 
tier legal entity that is owned (in whole or in part) 
by another legal entity (a second-tier legal entity) shall 
be attributed to the second-tier legal entity in propor-
tion to the ownership of the second-tier legal entity 
in the first-tier legal entity. 
‘‘(ii) OWNERSHIP BY A PERSON.—If the second-tier 
legal entity is owned (in whole or in part) by a person, 
the amount of the payment made to the first-tier legal 
entity shall be attributed to the person in the amount 
that represents the indirect ownership in the first- 
tier legal entity by the person. 
‘‘(D) THIRD AND FOURTH LEVELS.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the Secretary shall attribute payments at the third 
and fourth tiers of ownership in the same manner 
as specified in subparagraph (C). 
‘‘(ii) FOURTH-TIER OWNERSHIP.—If the fourth-tier 
of ownership is that of a fourth-tier legal entity and 
not that of a person, the Secretary shall reduce the 
amount of the payment to be made to the first-tier 
legal entity in the amount that represents the indirect 
ownership in the first-tier legal entity by the fourth- 
tier legal entity. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) MINOR CHILDREN.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), payments received by a child under the age of 18 
shall be attributed to the parents of the child. 
‘‘(B) REGULATIONS.—The Secretary shall issue regula-
tions specifying the conditions under which payments 
received by a child under the age of 18 will not be attributed 
to the parents of the child. 
‘‘(2) MARKETING
COOPERATIVES.—Subsections (b) and (c) 
shall not apply to a cooperative association of producers with 
respect to commodities produced by the members of the associa-
tion that are marketed by the association on behalf of the 
members of the association but shall apply to the producers 
as persons.
H. R. 6124—84 
‘‘(3) TRUSTS AND ESTATES.— 
‘‘(A) IN GENERAL.—With respect to irrevocable trusts 
and estates, the Secretary shall administer this section 
through section 1001F in such manner as the Secretary 
determines will ensure the fair and equitable treatment 
of the beneficiaries of the trusts and estates. 
‘‘(B) IRREVOCABLE TRUST.— 
‘‘(i) IN GENERAL.—In order for a trust to be consid-
ered an irrevocable trust, the terms of the trust agree-
ment shall not— 
‘‘(I) allow for modification or termination of 
the trust by the grantor; 
‘‘(II) allow for the grantor to have any future, 
contingent, or remainder interest in the corpus 
of the trust; or 
‘‘(III) except as provided in clause (ii), provide 
for the transfer of the corpus of the trust to the 
remainder beneficiary in less than 20 years begin-
ning on the date the trust is established. 
‘‘(ii) EXCEPTION.—Clause (i)(III) shall not apply in 
a case in which the transfer is— 
‘‘(I) contingent on the remainder beneficiary 
achieving at least the age of majority; or 
‘‘(II) contingent on the death of the grantor 
or income beneficiary. 
‘‘(C) REVOCABLE TRUST.—For the purposes of this sec-
tion through section 1001F, a revocable trust shall be 
considered to be the same person as the grantor of the 
trust. 
‘‘(4) CASH RENT TENANTS.— 
‘‘(A) DEFINITION.—In this paragraph, the term ‘cash 
rent tenant’ means a person or legal entity that rents 
land— 
‘‘(i) for cash; or 
‘‘(ii) for a crop share guaranteed as to the amount 
of the commodity to be paid in rent. 
‘‘(B) RESTRICTION.—A cash rent tenant who makes a 
significant contribution of active personal management, but 
not of personal labor, with respect to a farming operation 
shall be eligible to receive a payment described in sub-
section (b) or (c) only if the tenant makes a significant 
contribution of equipment to the farming operation. 
‘‘(5) FEDERAL AGENCIES.— 
‘‘(A) IN GENERAL.—Notwithstanding subsection (d), a 
Federal agency shall not be eligible to receive any payment, 
benefit, or loan under title I of the Food, Conservation, 
and Energy Act of 2008 or title XII of this Act. 
‘‘(B) LAND RENTAL.—A lessee of land owned by a Fed-
eral agency may receive a payment described in subsection 
(b), (c), or (d) if the lessee otherwise meets all applicable 
criteria. 
‘‘(6) STATE AND LOCAL GOVERNMENTS.— 
‘‘(A) IN
GENERAL.—Notwithstanding subsection (d), 
except as provided in subsection (g), a State or local govern-
ment, or political subdivision or agency of the government, 
shall not be eligible to receive any payment, benefit, or
H. R. 6124—85 
loan under title I of the Food, Conservation, and Energy 
Act of 2008 or title XII of this Act. 
‘‘(B) TENANTS.—A lessee of land owned by a State 
or local government, or political subdivision or agency of 
the government, may receive payments described in sub-
sections (b), (c), and (d) if the lessee otherwise meets all 
applicable criteria. 
‘‘(7) CHANGES IN FARMING OPERATIONS.— 
‘‘(A) IN GENERAL.—In the administration of this section 
through section 1001F, the Secretary may not approve 
any change in a farming operation that otherwise will 
increase the number of persons to which the limitations 
under this section are applied unless the Secretary deter-
mines that the change is bona fide and substantive. 
‘‘(B) FAMILY
MEMBERS.—The addition of a family 
member to a farming operation under the criteria set out 
in section 1001A shall be considered a bona fide and sub-
stantive change in the farming operation. 
‘‘(8) DEATH OF OWNER.— 
‘‘(A) IN GENERAL.—If any ownership interest in land 
or a commodity is transferred as the result of the death 
of a program participant, the new owner of the land or 
commodity may, if the person is otherwise eligible to 
participate in the applicable program, succeed to the con-
tract of the prior owner and receive payments subject to 
this section without regard to the amount of payments 
received by the new owner. 
‘‘(B) LIMITATIONS ON PRIOR OWNER.—Payments made 
under this paragraph shall not exceed the amount to which 
the previous owner was entitled to receive under the terms 
of the contract at the time of the death of the prior owner. 
‘‘(g) PUBLIC SCHOOLS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection (f)(6)(A), a 
State or local government, or political subdivision or agency 
of the government, shall be eligible, subject to the limitation 
in paragraph (2), to receive a payment described in subsection 
(b) or (c) for land owned by the State or local government, 
or political subdivision or agency of the government, that is 
used to maintain a public school. 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—For each State, the total amount 
of payments described in subsections (b) and (c) that are 
received collectively by the State and local government 
and all political subdivisions or agencies of those govern-
ments shall not exceed $500,000. 
‘‘(B) EXCEPTION.—The limitation in subparagraph (A) 
shall not apply to States with a population of less than 
1,500,000.’’. 
(c) REPEAL
OF 3-ENTITY RULE.—Section 1001A of the Food 
Security Act of 1985 (7 U.S.C. 1308–1) is amended— 
(1) in the section heading, by striking ‘‘PREVENTION OF 
CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS’’ 
and inserting ‘‘NOTIFICATION OF INTERESTS’’; and 
(2) by striking subsection (a) and inserting the following: 
‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate administration 
of section 1001 and this section, each person or legal entity receiving 
payments described in subsections (b) and (c) of section 1001 as
H. R. 6124—86 
a separate person or legal entity shall separately provide to the 
Secretary, at such times and in such manner as prescribed by 
the Secretary— 
‘‘(1) the name and social security number of each person, 
or the name and taxpayer identification number of each legal 
entity, that holds or acquires an ownership interest in the 
separate person or legal entity; and 
‘‘(2) the name and taxpayer identification number of each 
legal entity in which the person or legal entity holds an owner-
ship interest.’’. 
(d) AMENDMENT FOR CONSISTENCY.—Section 1001A of the Food 
Security Act of 1985 (7 U.S.C. 1308–1) is amended by striking 
subsection (b) and inserting the following: 
‘‘(b) ACTIVELY ENGAGED.— 
‘‘(1) IN
GENERAL.—To be eligible to receive a payment 
described in subsection (b) or (c) of section 1001, a person 
or legal entity shall be actively engaged in farming with respect 
to a farming operation as provided in this subsection or sub-
section (c). 
‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as provided in 
subsections (c) and (d)— 
‘‘(A) a person (including a person participating in a 
farming operation as a partner in a general partnership, 
a participant in a joint venture, a grantor of a revocable 
trust, or a participant in a similar entity, as determined 
by the Secretary) shall be considered to be actively engaged 
in farming with respect to a farming operation if— 
‘‘(i) the person makes a significant contribution 
(based on the total value of the farming operation) 
to the farming operation of— 
‘‘(I) capital, equipment, or land; and 
‘‘(II) personal labor or active personal manage-
ment; 
‘‘(ii) the person’s share of the profits or losses 
from the farming operation is commensurate with the 
contributions of the person to the farming operation; 
and 
‘‘(iii) the contributions of the person are at risk; 
‘‘(B) a legal entity that is a corporation, joint stock 
company, association, limited partnership, charitable 
organization, or other similar entity determined by the 
Secretary (including any such legal entity participating 
in the farming operation as a partner in a general partner-
ship, a participant in a joint venture, a grantor of a rev-
ocable trust, or as a participant in a similar legal entity 
as determined by the Secretary) shall be considered as 
actively engaged in farming with respect to a farming 
operation if— 
‘‘(i) the legal entity separately makes a significant 
contribution (based on the total value of the farming 
operation) of capital, equipment, or land; 
‘‘(ii) the stockholders or members collectively make 
a significant contribution of personal labor or active 
personal management to the operation; and 
‘‘(iii) the standards provided in clauses (ii) and 
(iii) of subparagraph (A), as applied to the legal entity, 
are met by the legal entity;
H. R. 6124—87 
‘‘(C) if a legal entity that is a general partnership, 
joint venture, or similar entity, as determined by the Sec-
retary, separately makes a significant contribution (based 
on the total value of the farming operation involved) of 
capital, equipment, or land, and the standards provided 
in clauses (ii) and (iii) of subparagraph (A), as applied 
to the legal entity, are met by the legal entity, the partners 
or members making a significant contribution of personal 
labor or active personal management shall be considered 
to be actively engaged in farming with respect to the 
farming operation involved; and 
‘‘(D) in making determinations under this subsection 
regarding equipment and personal labor, the Secretary 
shall take into consideration the equipment and personal 
labor normally and customarily provided by farm operators 
in the area involved to produce program crops. 
‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.— 
‘‘(1) LANDOWNER.—A person or legal entity that is a land-
owner contributing the owned land to a farming operation 
shall be considered to be actively engaged in farming with 
respect to the farming operation if— 
‘‘(A) the landowner receives rent or income for the 
use of the land based on the production on the land or 
the operating results of the operation; and 
‘‘(B) the person or legal entity meets the standards 
provided in clauses (ii) and (iii) of subsection (b)(2)(A). 
‘‘(2) ADULT FAMILY MEMBER.—If a majority of the partici-
pants in a farming operation are family members, an adult 
family member shall be considered to be actively engaged in 
farming with respect to the farming operation if the person— 
‘‘(A) makes a significant contribution, based on the 
total value of the farming operation, of active personal 
management or personal labor; and 
‘‘(B) with respect to such contribution, meets the stand-
ards provided in clauses (ii) and (iii) of subsection (b)(2)(A). 
‘‘(3) SHARECROPPER.—A sharecropper who makes a signifi-
cant contribution of personal labor to a farming operation shall 
be considered to be actively engaged in farming with respect 
to the farming operation if the contribution meets the standards 
provided in clauses (ii) and (iii) of subsection (b)(2)(A). 
‘‘(4) GROWERS OF HYBRID SEED.—In determining whether 
a person or legal entity growing hybrid seed under contract 
shall be considered to be actively engaged in farming, the 
Secretary shall not take into consideration the existence of 
a hybrid seed contract. 
‘‘(5) CUSTOM FARMING SERVICES.— 
‘‘(A) IN GENERAL.—A person or legal entity receiving 
custom farming services shall be considered separately 
eligible for payment limitation purposes if the person or 
legal entity is actively engaged in farming based on sub-
section (b)(2) or paragraphs (1) through (4) of this sub-
section. 
‘‘(B) PROHIBITION.—No other rules with respect to cus-
tom farming shall apply. 
‘‘(6) SPOUSE.—If 1 spouse (or estate of a deceased spouse) 
is determined to be actively engaged, the other spouse shall
H. R. 6124—88 
be determined to have met the requirements of subsection 
(b)(2)(A)(i)(II). 
‘‘(d) CLASSES NOT ACTIVELY ENGAGED.— 
‘‘(1) CASH RENT LANDLORD.—A landlord contributing land 
to a farming operation shall not be considered to be actively 
engaged in farming with respect to the farming operation if 
the landlord receives cash rent, or a crop share guaranteed 
as to the amount of the commodity to be paid in rent, for 
the use of the land. 
‘‘(2) OTHER PERSONS AND LEGAL ENTITIES.—Any other per-
son or legal entity that the Secretary determines does not 
meet the standards described in subsections (b)(2) and (c) shall 
not be considered to be actively engaged in farming with respect 
to a farming operation.’’. 
(e) DENIAL OF PROGRAM BENEFITS.—Section 1001B of the Food 
Security Act of 1985 (7 U.S.C. 1308–2) is amended to read as 
follows: 
‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS. 
‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A person or legal 
entity shall be ineligible to receive payments specified in subsections 
(b) and (c) of section 1001 for the crop year, and the succeeding 
crop year, in which the Secretary determines that the person or 
legal entity— 
‘‘(1) failed to comply with section 1001A(b) and adopted 
or participated in adopting a scheme or device to evade the 
application of section 1001, 1001A, or 1001C; or 
‘‘(2) intentionally concealed the interest of the person or 
legal entity in any farm or legal entity engaged in farming. 
‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary determines that 
a person or legal entity, for the benefit of the person or legal 
entity or the benefit of any other person or legal entity, has know-
ingly engaged in, or aided in the creation of a fraudulent document, 
failed to disclose material information relevant to the administra-
tion of sections 1001 through 1001F, or committed other equally 
serious actions (as identified in regulations issued by the Secretary), 
the Secretary may for a period not to exceed 5 crop years deny 
the issuance of payments to the person or legal entity. 
‘‘(c) PRO RATA DENIAL.— 
‘‘(1) IN GENERAL.—Payments otherwise owed to a person 
or legal entity described in subsections (a) or (b) shall be 
denied in a pro rata manner based on the ownership interest 
of the person or legal entity in a farm. 
‘‘(2) CASH RENT TENANT.—Payments otherwise payable to 
a person or legal entity shall be denied in a pro rata manner 
if the person or legal entity is a cash rent tenant on a farm 
owned or under the control of a person or legal entity with 
respect to which a determination has been made under sub-
section (a) or (b). 
‘‘(d) JOINT AND SEVERAL LIABILITY.—Any legal entity (including 
partnerships and joint ventures) and any member of any legal 
entity determined to have knowingly participated in a scheme or 
device to evade, or that has the purpose of evading, sections 1001, 
1001A, or 1001C shall be jointly and severally liable for any 
amounts that are payable to the Secretary as the result of the 
scheme or device (including amounts necessary to recover those 
amounts).
H. R. 6124—89 
‘‘(e) RELEASE.—The Secretary may partially or fully release 
from liability any person or legal entity who cooperates with the 
Secretary in enforcing sections 1001, 1001A, and 1001C, and this 
section.’’. 
(f) CONFORMING AMENDMENT TO APPLY DIRECT ATTRIBUTION 
TO NAP.— 
(1) IN GENERAL.—Section 196(i) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is 
amended— 
(A) by striking paragraphs (1) and (2) and inserting 
the following: 
‘‘(1) DEFINITIONS.—In this subsection, the terms ‘legal 
entity’ and ‘person’ have the meanings given those terms in 
section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 
1308(a)). 
‘‘(2) PAYMENT LIMITATION.—The total amount of payments 
received, directly or indirectly, by a person or legal entity 
(excluding a joint venture or general partnership) for any crop 
year may not exceed $100,000.’’; 
(B) by striking paragraph (4) and inserting the fol-
lowing: 
‘‘(4) ADJUSTED
GROSS
INCOME
LIMITATION.—A person or 
legal entity that has an average adjusted gross income in 
excess of the average adjusted gross income limitation 
applicable under section 1001D(b)(1)(A) of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a(b)(1)(A)), or a successor provision, 
shall not be eligible to receive noninsured crop disaster assist-
ance under this section.’’; and 
(C) in paragraph (5)— 
(i) by striking ‘‘necessary to ensure’’ and inserting 
‘‘necessary— 
‘‘(A) to ensure’’; and 
(ii) by striking ‘‘this subsection.’’ and inserting the 
following: ‘‘this subsection; and 
‘‘(B) to ensure that payments under this section are 
attributed to a person or legal entity (excluding a joint 
venture or general partnership) in accordance with the 
terms and conditions of sections 1001 through 1001D of 
the Food Security Act of 1985 (7 U.S.C. 1308 et seq.), 
as determined by the Secretary.’’. 
(2) TRANSITION.—Section 196(i) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as 
in effect on September 30, 2007, shall apply with respect to 
the 2007 and 2008 crops of any eligible crop. 
(g) CONFORMING AMENDMENTS.— 
(1) Section 1009(e) of the Food Security Act of 1985 (7 
U.S.C. 1308a(e)) is amended in the second sentence by striking 
‘‘of $50,000’’. 
(2) Section 609(b)(1) of the Emergency Livestock Feed 
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by 
inserting ‘‘(before the amendment made by section 1703(a) of 
the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1985’’. 
(3) Section 524(b)(3) of the Federal Crop Insurance Act 
(7 U.S.C. 1524(b)(3)) is amended by inserting ‘‘(before the 
amendment made by section 1703(a) of the Food, Conservation, 
and Energy Act of 2008)’’ after ‘‘1308(5)))’’.
H. R. 6124—90 
(4) Section 10204(c)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by 
inserting ‘‘(before the amendment made by section 1703(a) of 
the Food, Conservation, and Energy Act of 2008)’’ after ‘‘1308)’’. 
(5) Section 1271(c)(3)(A) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is 
amended by inserting ‘‘(before the amendment made by section 
1703(a) of the Food, Conservation, and Energy Act of 2008)’’ 
after ‘‘1308)’’. 
(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 
2401(2)) is amended by inserting ‘‘(before the amendment made 
by section 1703(a) of the Food, Conservation, and Energy Act 
of 2008)’’ before the period at the end. 
(h) TRANSITION.—Section 1001, 1001A, and 1001B of the Food 
Security Act of 1985 (7 U.S.C. 1308, 1308–1, 1308–2), as in effect 
on September 30, 2007, shall continue to apply with respect to 
the 2007 and 2008 crops of any covered commodity or peanuts. 
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 
(a) IN GENERAL.—Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308–3a(e)) is amended to read as follows: 
‘‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION. 
‘‘(a) DEFINITIONS.— 
‘‘(1) IN GENERAL.—In this section: 
‘‘(A) AVERAGE
ADJUSTED
GROSS
INCOME.—The term 
‘average adjusted gross income’, with respect to a person 
or legal entity, means the average of the adjusted gross 
income or comparable measure of the person or legal entity 
over the 3 taxable years preceding the most immediately 
preceding complete taxable year, as determined by the 
Secretary. 
‘‘(B) AVERAGE
ADJUSTED
GROSS
FARM
INCOME.—The 
term ‘average adjusted gross farm income’, with respect 
to a person or legal entity, means the average of the 
portion of adjusted gross income of the person or legal 
entity that is attributable to activities related to farming, 
ranching, or forestry for the 3 taxable years described 
in subparagraph (A), as determined by the Secretary in 
accordance with subsection (c). 
‘‘(C) AVERAGE
ADJUSTED
GROSS
NONFARM
INCOME.— 
The term ‘average adjusted gross nonfarm income’, with 
respect to a person or legal entity, means the difference 
between— 
‘‘(i) the average adjusted gross income of the person 
or legal entity; and 
‘‘(ii) the average adjusted gross farm income of 
the person or legal entity. 
‘‘(2) SPECIAL RULES FOR CERTAIN PERSONS AND LEGAL ENTI-
TIES.—In the case of a legal entity that is not required to 
file a Federal income tax return or a person or legal entity 
that did not have taxable income in 1 or more of the taxable 
years used to determine the average under subparagraph (A) 
or (B) of paragraph (1), the Secretary shall provide, by regula-
tion, a method for determining the average adjusted gross 
income, the average adjusted gross farm income, and the aver-
age adjusted gross nonfarm income of the person or legal entity 
for purposes of this section.
H. R. 6124—91 
‘‘(3) ALLOCATION OF INCOME.—On the request of any person 
filing a joint tax return, the Secretary shall provide for the 
allocation of average adjusted gross income, average adjusted 
gross farm income, and average adjusted gross nonfarm income 
among the persons filing the return if— 
‘‘(A) the person provides a certified statement by a 
certified public accountant or attorney that specifies the 
method by which the average adjusted gross income, aver-
age adjusted gross farm income, and average adjusted gross 
nonfarm income would have been declared and reported 
had the persons filed 2 separate returns; and 
‘‘(B) the Secretary determines that the method 
described in the statement is consistent with the informa-
tion supporting the filed joint tax return. 
‘‘(b) LIMITATIONS.— 
‘‘(1) COMMODITY PROGRAMS.— 
‘‘(A) 
NONFARM
LIMITATION.—Notwithstanding 
any 
other provision of law, a person or legal entity shall not 
be eligible to receive any benefit described in subparagraph 
(C) during a crop, fiscal, or program year, as appropriate, 
if the average adjusted gross nonfarm income of the person 
or legal entity exceeds $500,000. 
‘‘(B) FARM
LIMITATION.—Notwithstanding any other 
provision of law, a person or legal entity shall not be 
eligible to receive a direct payment under subtitle A or 
C of title I of the Food, Conservation, and Energy Act 
of 2008 during a crop year, if the average adjusted gross 
farm income of the person or legal entity exceeds $750,000. 
‘‘(C) COVERED
BENEFITS.—Subparagraph (A) applies 
with respect to the following: 
‘‘(i) A direct payment or counter-cyclical payment 
under subtitle A or C of title I of the Food, Conserva-
tion, and Energy Act of 2008 or an average crop rev-
enue election payment under subtitle A of title I of 
that Act. 
‘‘(ii) A marketing loan gain or loan deficiency pay-
ment under subtitle B or C of title I of the Food, 
Conservation, and Energy Act of 2008. 
‘‘(iii) A payment or benefit under section 196 of 
the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7333). 
‘‘(iv) A payment or benefit under section 1506 of 
the Food, Conservation, and Energy Act of 2008. 
‘‘(v) A payment or benefit under title IX of the 
Trade Act of 1974 or subtitle B of the Federal Crop 
Insurance Act. 
‘‘(2) CONSERVATION PROGRAMS.— 
‘‘(A) LIMITS.— 
‘‘(i) IN
GENERAL.—Notwithstanding any other 
provision of law, except as provided in clause (ii), a 
person or legal entity shall not be eligible to receive 
any benefit described in subparagraph (B) during a 
crop, fiscal, or program year, as appropriate, if the 
average adjusted gross nonfarm income of the person 
or legal entity exceeds $1,000,000, unless not less than 
66.66 percent of the average adjusted gross income
H. R. 6124—92 
of the person or legal entity is average adjusted gross 
farm income. 
‘‘(ii) EXCEPTION.—The Secretary may waive the 
limitation established under clause (i) on a case-by- 
case basis if the Secretary determines that environ-
mentally sensitive land of special significance would 
be protected. 
‘‘(B) COVERED
BENEFITS.—Subparagraph (A) applies 
with respect to the following: 
‘‘(i) A payment or benefit under title XII of this 
Act. 
‘‘(ii) A payment or benefit under title II of the 
Farm Security and Rural Investment Act of 2002 
(Public Law 107–171; 116 Stat. 223) or title II of the 
Food, Conservation, and Energy Act of 2008. 
‘‘(iii) A payment or benefit under section 524(b) 
of the Federal Crop Insurance Act (7 U.S.C. 1524(b)). 
‘‘(c) INCOME DETERMINATION.— 
‘‘(1) IN
GENERAL.—In determining the average adjusted 
gross farm income of a person or legal entity, the Secretary 
shall include income or benefits derived from or related to— 
‘‘(A) the production of crops, including specialty crops 
(as defined in section 3 of the Specialty Crops Competitive-
ness Act of 2004 (7 U.S.C. 1621 note; Public Law 108– 
465)) and unfinished raw forestry products; 
‘‘(B) the production of livestock (including cattle, elk, 
reindeer, bison, horses, deer, sheep, goats, swine, poultry, 
fish, and other aquacultural products used for food, honey-
bees, and other animals designated by the Secretary) and 
products produced by, or derived from, livestock; 
‘‘(C) the production of farm-based renewable energy 
(as defined in section 9001 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101)); 
‘‘(D) the sale, including the sale of easements and 
development rights, of farm, ranch, or forestry land, water 
or hunting rights, or environmental benefits; 
‘‘(E) the rental or lease of land or equipment used 
for farming, ranching, or forestry operations, including 
water or hunting rights; 
‘‘(F) 
the 
processing 
(including 
packing), 
storing 
(including shedding), and transporting of farm, ranch, and 
forestry commodities, including renewable energy; 
‘‘(G) the feeding, rearing, or finishing of livestock; 
‘‘(H) the sale of land that has been used for agriculture; 
‘‘(I) payments or other benefits received under any 
program authorized under title I of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) 
or title I of the Food, Conservation, and Energy Act of 
2008; 
‘‘(J) payments or other benefits received under any 
program authorized under title XII of this Act, title II 
of the Farm Security and Rural Investment Act of 2002 
(Public Law 107–171; 116 Stat. 223), or title II of the 
Food, Conservation, and Energy Act of 2008; 
‘‘(K) payments or other benefits received under section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333);
H. R. 6124—93 
‘‘(L) payments or other benefits received under title 
IX of the Trade Act of 1974 or subtitle B of the Federal 
Crop Insurance Act; 
‘‘(M) risk management practices, including benefits 
received under a program authorized under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a 
catastrophic risk protection plan offered under section 
508(b) of that Act (7 U.S.C. 1508(b))); and 
‘‘(N) any other activity related to farming, ranching, 
or forestry, as determined by the Secretary. 
‘‘(2) INCOME DERIVED FROM FARMING, RANCHING, OR FOR-
ESTRY.—In determining the average adjusted gross farm income 
of a person or legal entity, in addition to the inclusions 
described in paragraph (1), the Secretary shall include any 
income reported on the Schedule F or other schedule used 
by the person or legal entity to report income from farming, 
ranching, or forestry operations to the Internal Revenue 
Service, to the extent such income is not already included 
under paragraph (1). 
‘‘(3) SPECIAL RULE.—If not less than 66.66 percent of the 
average adjusted gross income of a person or legal entity is 
derived from farming, ranching, or forestry operations described 
in paragraphs (1) and (2), in determining the average adjusted 
gross farm income of the person or legal entity, the Secretary 
shall also include— 
‘‘(A) the sale of equipment to conduct farm, ranch, 
or forestry operations; and 
‘‘(B) the provision of production inputs and services 
to farmers, ranchers, foresters, and farm operations. 
‘‘(d) ENFORCEMENT.— 
‘‘(1) IN GENERAL.—To comply with subsection (b), at least 
once every 3 years a person or legal entity shall provide to 
the Secretary— 
‘‘(A) a certification by a certified public accountant 
or another third party that is acceptable to the Secretary 
that the average adjusted gross income, average adjusted 
gross farm income, and average adjusted gross nonfarm 
income of the person or legal entity does not exceed the 
applicable limitation specified in that subsection; or 
‘‘(B) information and documentation regarding the 
average adjusted gross income, average adjusted gross farm 
income, and average adjusted gross nonfarm income of 
the person or legal entity through other procedures estab-
lished by the Secretary. 
‘‘(2) DENIAL OF PROGRAM BENEFITS.—If the Secretary deter-
mines that a person or legal entity has failed to comply with 
this section, the Secretary shall deny the issuance of applicable 
payments and benefits specified in paragraphs (1)(C) and (2)(B) 
of subsection (b) to the person or legal entity, under similar 
terms and conditions as described in section 1001B. 
‘‘(3) AUDIT.—The Secretary shall establish statistically valid 
procedures under which the Secretary shall conduct targeted 
audits of such persons or legal entities as the Secretary deter-
mines are most likely to exceed the limitations under subsection 
(b). 
‘‘(e) COMMENSURATE REDUCTION.—In the case of a payment 
or benefit described in paragraphs (1)(C) and (2)(B) of subsection
H. R. 6124—94 
(b) made in a crop, program, or fiscal year, as appropriate, to 
an entity, general partnership, or joint venture, the amount of 
the payment or benefit shall be reduced by an amount that is 
commensurate with the direct and indirect ownership interest in 
the entity, general partnership, or joint venture of each person 
who has an average adjusted gross income, average adjusted gross 
farm income, or average adjusted gross nonfarm income in excess 
of the applicable limitation specified in subsection (b). 
‘‘(f) EFFECTIVE PERIOD.—This section shall apply only during 
the 2009 through 2012 crop, program, or fiscal years, as appro-
priate.’’. 
(b) TRANSITION.—Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308–3a), as in effect on September 30, 2007, shall 
apply with respect to the 2007 and 2008 crop, fiscal, or program 
year, as appropriate, for each program described in paragraphs 
(1)(C) and (2)(B) of subsection (b) of that section (as amended 
by subsection (a)). 
SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COV-
ERED OILSEED PRODUCERS. 
(a) INCENTIVE PAYMENTS REQUIRED.—Subject to subsection (b) 
and the availability of appropriations under subsection (h), the 
Secretary shall use funds made available under subsection (h) to 
provide quality incentive payments for the production of oilseeds 
with specialized traits that enhance human health, as determined 
by the Secretary. 
(b) COVERED OILSEEDS.—The Secretary shall make payments 
under this section only for the production of an oilseed variety 
that has, as determined by the Secretary— 
(1) been demonstrated to improve the health profile of 
the oilseed for use in human consumption by— 
(A) reducing or eliminating the need to partially hydro-
genate the oil derived from the oilseed for use in human 
consumption; or 
(B) adopting new technology traits; and 
(2) 1 or more impediments to commercialization. 
(c) REQUEST FOR PROPOSALS.— 
(1) ISSUANCE.—If funds are made available to carry out 
this section for a crop year, the Secretary shall issue a request 
for proposals for payments under this section. 
(2) MULTIYEAR
PROPOSALS.—A proponent may submit a 
multiyear proposal for payments under this section. 
(3) CONTENT
OF
PROPOSALS.—A proposal for payments 
under this section shall include a description of— 
(A) how use of the oilseed enhances human health; 
(B) the impediments to commercial use of the oilseed; 
(C) each oilseed variety described in subsection (b) 
and the value of the oilseed variety as a matter of public 
policy; 
(D) a range for the base price and premiums per bushel 
or hundredweight to be paid to producers; 
(E) a per bushel or hundredweight amount of incentive 
payments requested for each year under this section that 
does not exceed 1⁄3 of the total premium offered for any 
year;
H. R. 6124—95 
(F) the period of time, not to exceed 4 years, during 
which incentive payments are to be provided to producers; 
and 
(G) the targeted total quantity of production and esti-
mated acres needed to produce the targeted quantity for 
each year under this section. 
(d) CONTRACTS FOR PRODUCTION.— 
(1) IN GENERAL.—The Secretary shall approve successful 
proposals submitted under subsection (c) on a timely basis. 
(2) TIMING OF PAYMENTS.—The Secretary shall make pay-
ments to producers under this section after the Secretary 
receives documentation that the premium required under a 
contract has been paid to covered producers. 
(e) ADMINISTRATION.— 
(1) IN GENERAL.—If funding provided for a crop year is 
not fully allocated under the initial request for proposals under 
subsection (c), the Secretary shall issue additional requests 
for proposals for subsequent crop years under this section. 
(2) PRORATED PAYMENTS.—If funding provided for a crop 
year is less than the amount otherwise approved by the Sec-
retary or for which approval is sought, the Secretary shall 
prorate the payments or approvals in a manner determined 
by the Secretary so that the total payments do not exceed 
the funding level. 
(f) PROPRIETARY INFORMATION.—The Secretary shall protect 
proprietary information provided to the Secretary for the purpose 
of administering this section. 
(g) PROGRAM COMPLIANCE AND PENALTIES.— 
(1) GUARANTEE.—The proponent, if approved, shall be 
required to guarantee that the oilseed on which a payment 
is made by the Secretary under this section is used for human 
consumption as described in the proposal, as approved by the 
Secretary. 
(2) NONCOMPLIANCE.—If oilseeds on which a payment is 
made by the Secretary under this section are not actually 
used for the purpose the payment is made, the proponent 
shall be required to pay to the Secretary an amount equal 
to, as determined by the Secretary— 
(A) in the case of an inadvertent failure, twice the 
amount of the payment made by the Secretary under this 
section to the producer of the oilseeds; and 
(B) in any other case, up to twice the full value of 
the oilseeds involved. 
(3) DOCUMENTATION.—The Secretary may require such 
assurances and documentation as may be needed to enforce 
the guarantee. 
(4) ADDITIONAL PENALTIES.— 
(A) IN GENERAL.—In addition to payments required 
under paragraph (2), the Secretary may impose penalties 
on additional persons that use oilseeds the use of which 
is restricted under this section for a purpose other than 
the intended use. 
(B) AMOUNT.—The amount of a penalty under this 
paragraph shall— 
(i) be in an amount determined appropriated by 
the Secretary; but 
(ii) not to exceed twice the full value of the oilseeds.
H. R. 6124—96 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2009 through 2012. 
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES. 
Section 164 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ‘‘and 
title I of the Farm Security and Rural Investment Act of 2002’’ 
each place it appears and inserting ‘‘title I of the Farm Security 
and Rural Investment Act of 2002, and title I of the Food, Conserva-
tion, and Energy Act of 2008’’. 
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY 
REGARDING LOANS. 
Section 166 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7286) is amended— 
(1) by striking ‘‘and subtitle B and C of title I of the 
Farm Security and Rural Investment Act of 2002’’ each place 
it appears and inserting ‘‘, title I of the Farm Security and 
Rural Investment Act of 2002, and title I of the Food, Conserva-
tion, and Energy Act of 2008’’; and 
(2) in subsection (c), by adding at the end the following: 
‘‘(3) TERMINATION OF AUTHORITY.—The authority to carry 
out paragraph (1) terminates effective ending with the 2009 
crop year.’’. 
SEC. 1608. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
relating to assignment of payments, shall apply to payments made 
under this title. 
(b) NOTICE.—The producer making the assignment, or the 
assignee, shall provide the Secretary with notice, in such manner 
as the Secretary may require, of any assignment made under this 
section. 
SEC. 1609. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment of this 
Act, the Secretary may track the benefits provided, directly or 
indirectly, to individuals and entities under titles I and II and 
the amendments made by those titles. 
SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORE-
CASTS. 
Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) 
is amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsections (e) through (g) as sub-
sections (d) through (f), respectively. 
SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAY-
MENTS UNDER FARM COMMODITY PROGRAMS. 
(a) REGULATIONS.—Not later than 180 days after the date of 
enactment of this Act, the Secretary shall promulgate regulations 
that— 
(1) describe the circumstances under which, in order to 
allow for the settlement of estates and for related purposes, 
payments may be issued in the name of a deceased individual; 
and
H. R. 6124—97 
(2) preclude the issuance of payments to, and on behalf 
of, deceased individuals that were not eligible for the payments. 
(b) COORDINATION.—At least twice each year, the Secretary 
shall reconcile the social security numbers of all individuals who 
receive payments under this title, whether directly or indirectly, 
with the Social Security Administration to determine if the individ-
uals are alive. 
SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE HARD WHITE WHEAT SEED.—The term ‘‘eligible 
hard white wheat seed’’ means hard white wheat seed that, 
as determined by the Secretary, is— 
(A) certified; 
(B) of a variety that is suitable for the State in which 
the seed will be planted; 
(C) rated at least superior with respect to quality; 
and 
(D) specifically approved under a seed establishment 
program established by the State Department of Agri-
culture and the State Wheat Commission of the 1 or more 
States in which the seed will be planted. 
(2) PROGRAM.—The term ‘‘program’’ means the hard white 
wheat development program established under subsection 
(b)(1). 
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Agriculture, in consultation with the State Departments 
of Agriculture and the State Wheat Commissions of the States 
in regions in which hard white wheat is produced, as deter-
mined by the Secretary. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—Subject to the availability of appropria-
tions, the Secretary shall establish a hard white wheat develop-
ment program in accordance with paragraph (2) to promote 
the establishment of hard white wheat as a viable market 
class of wheat in the United States by encouraging production 
of at least 240,000,000 bushels of hard white wheat by 2012. 
(2) PAYMENTS.— 
(A) IN GENERAL.—Subject to subparagraphs (B) and 
(C) and subsection (c), if funds are made available for 
any of the 2009 through 2012 crops of hard white wheat, 
the Secretary shall make available incentive payments to 
producers of those crops. 
(B) ACREAGE LIMITATION.—The Secretary shall carry 
out subparagraph (A) subject to a regional limitation deter-
mined by the Secretary on the number of acres for which 
payments may be received that takes into account planting 
history and potential planting, but does not exceed a total 
of 2,900,000 acres or the equivalent volume of production 
based on a yield of 50 bushels per acre. 
(C) PAYMENT LIMITATIONS.—Payments to producers on 
a farm described in subparagraph (A) shall be— 
(i) in an amount that is not less than $0.20 per 
bushel; and 
(ii) in an amount that is not less than $2.00 per 
acre for planting eligible hard white wheat seed.
H. R. 6124—98 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $35,000,000 for the 
period of fiscal years 2009 through 2012. 
SEC. 1613. DURUM WHEAT QUALITY PROGRAM. 
(a) IN GENERAL.—Subject to the availability of funds under 
subsection (c), the Secretary shall provide compensation to pro-
ducers of durum wheat in an amount not to exceed 50 percent 
of the actual cost of fungicides applied to a crop of durum wheat 
of the producers to control Fusarium head blight (wheat scab) 
on acres certified to have been planted to Durum wheat in a 
crop year. 
(b) INSUFFICIENT FUNDS.—If the total amount of funds appro-
priated for a fiscal year under subsection (c) are insufficient to 
fulfill all eligible requests for compensation under this section, 
the Secretary shall prorate the compensation payments in a manner 
determined by the Secretary to be equitable. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $10,000,000 for each 
of fiscal years 2009 through 2012. 
SEC. 1614. STORAGE FACILITY LOANS. 
(a) IN GENERAL.—As soon as practicable after the date of enact-
ment of this Act, the Secretary shall establish a storage facility 
loan program to provide funds for producers of grains, oilseeds, 
pulse crops, hay, renewable biomass, and other storable commod-
ities (other than sugar), as determined by the Secretary, to construct 
or upgrade storage and handling facilities for the commodities. 
(b) ELIGIBLE PRODUCERS.—A storage facility loan under this 
section shall be made available to any producer described in sub-
section (a) that, as determined by the Secretary— 
(1) has a satisfactory credit history; 
(2) has a need for increased storage capacity; and 
(3) demonstrates an ability to repay the loan. 
(c) TERM OF LOANS.—A storage facility loan under this section 
shall have a maximum term of 12 years. 
(d) LOAN AMOUNT.—The maximum principal amount of a stor-
age facility loan under this section shall be $500,000. 
(e) LOAN DISBURSEMENTS.—The Secretary shall provide for 1 
partial disbursement of loan principal and 1 final disbursement 
of loan principal, as determined to be appropriate and subject 
to acceptable documentation, to facilitate the purchase and construc-
tion of eligible facilities. 
(f) LOAN SECURITY.—Approval of a storage facility loan under 
this section shall— 
(1) require the borrower to provide loan security to the 
Secretary, in the form of— 
(A) a lien on the real estate parcel on which the storage 
facility is located; or 
(B) such other security as is acceptable to the Sec-
retary; 
(2) under such rules and regulations as the Secretary may 
prescribe, not require a severance agreement from the holder 
of any prior lien on the real estate parcel on which the storage 
facility is located, if the borrower— 
(A) agrees to increase the down payment on the storage 
facility by an amount determined appropriate by the Sec-
retary; or
H. R. 6124—99 
(B) provides other security acceptable to the Secretary; 
and 
(3) allow a borrower, upon the approval of the Secretary, 
to define a subparcel of real estate as security for the storage 
facility loan if the subparcel is— 
(A) of adequate size and value to adequately secure 
the loan; and 
(B) not subject to any other liens or mortgages that 
are superior to the lien interest of the Commodity Credit 
Corporation. 
SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES. 
Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended— 
(1) by redesignating subclauses (I) and (II) as items (aa) 
and (bb), respectively, and indenting appropriately; 
(2) in the matter preceding item (aa) (as redesignated by 
paragraph (1)), by striking ‘‘A committee established’’ and 
inserting the following: 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), a committee established’’; and 
(3) by adding at the end the following: 
‘‘(II) COMBINATION
OR
CONSOLIDATION
OF 
AREAS.—A committee established by combining or 
consolidating 2 or more county or area committees 
shall consist of not fewer than 3 nor more than 
11 members that— 
‘‘(aa) are fairly representative of the agri-
cultural producers within the area covered by 
the county, area, or local committee; and 
‘‘(bb) are elected by the agricultural pro-
ducers that participate or cooperate in pro-
grams administered within the area under the 
jurisdiction of the county, area, or local com-
mittee. 
‘‘(III) REPRESENTATION OF SOCIALLY DISADVAN-
TAGED
FARMERS
AND
RANCHERS.—The Secretary 
shall develop procedures to maintain representa-
tion 
of 
socially 
disadvantaged 
farmers 
and 
ranchers on combined or consolidated committees. 
‘‘(IV) ELIGIBILITY FOR MEMBERSHIP.—Notwith-
standing any other producer eligibility require-
ments for service on county or area committees, 
if a county or area is consolidated or combined, 
a producer shall be eligible to serve only as a 
member of the county or area committee that the 
producer elects to administer the farm records of 
the producer.’’. 
SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES. 
Public Law 108–470 (7 U.S.C. 7416a) is amended— 
(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’; 
and 
(2) by adding at the end the following: 
‘‘(c) PROHIBITION ON CHARGING CERTAIN FEES.—The Secretary 
may not charge any fees or related costs for the collection of com-
modity assessments pursuant to this Act.’’.
H. R. 6124—100 
SEC. 1617. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title II and 
amendments made by those titles, if the Secretary approves a 
document, the Secretary shall not subsequently determine the docu-
ment is inadequate or invalid because of the lack of authority 
of any person signing the document on behalf of the applicant 
or any other individual, entity, general partnership, or joint venture, 
or the documents relied upon were determined inadequate or 
invalid, unless the person signing the program document knowingly 
and willfully falsified the evidence of signature authority or a 
signature. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section prohibits the Sec-
retary from asking a proper party to affirm any document 
that otherwise would be considered approved under subsection 
(a). 
(2) NO RETROACTIVE EFFECT.—A denial of benefits based 
on a lack of affirmation under paragraph (1) shall not be 
retroactive with respect to third-party producers who were not 
the subject of the erroneous representation of authority, if 
the third-party producers— 
(A) relied on the prior approval by the Secretary of 
the documents in good faith; and 
(B) substantively complied with all program require-
ments 
SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY. 
Not later than 180 days after the date of enactment of this 
Act, the Secretary shall transmit to the Committee on Agriculture 
and the Committee on Appropriations of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry 
and the Committee on Appropriations of the Senate a report pre-
pared by a third party that describes— 
(1) the data processing and information technology chal-
lenges experienced in local offices of the Farm Service Agency; 
(2) the impact of those challenges on service to producers, 
on efficiency of personnel, and on implementation of this Act; 
(3) the need for information technology system upgrades 
of the Farm Service Agency relative to other agencies of the 
Department of Agriculture; 
(4) the detailed plan needed to fulfill the needs of the 
Department that are identified in paragraph (3), including 
hardware, software, and infrastructure requirements; 
(5) the estimated cost and timeframe for long-term mod-
ernization and stabilization of Farm Service Agency information 
technology systems; 
(6) the benefits associated with such modernization and 
stabilization; and 
(7) an evaluation of the existence of appropriate oversight 
within the Department to ensure that funds needed for systems 
upgrades can be appropriately managed. 
SEC. 1619. INFORMATION GATHERING. 
(a) GEOSPATIAL SYSTEMS.—The Secretary shall ensure that all 
the geospatial data of the agencies of the Department of Agriculture 
are portable and standardized. 
(b) LIMITATION ON DISCLOSURES.—
H. R. 6124—101 
(1) DEFINITION OF AGRICULTURAL OPERATION.—In this sub-
section, the term ‘‘agricultural operation’’ includes the produc-
tion and marketing of agricultural commodities and livestock. 
(2) PROHIBITION.—Except as provided in paragraphs (3) 
and (4), the Secretary, any officer or employee of the Depart-
ment of Agriculture, or any contractor or cooperator of the 
Department, shall not disclose— 
(A) information provided by an agricultural producer 
or owner of agricultural land concerning the agricultural 
operation, farming or conservation practices, or the land 
itself, in order to participate in programs of the Depart-
ment; or 
(B) geospatial information otherwise maintained by the 
Secretary about agricultural land or operations for which 
information described in subparagraph (A) is provided. 
(3) AUTHORIZED DISCLOSURES.— 
(A) LIMITED
RELEASE
OF
INFORMATION.—If the Sec-
retary determines that the information described in para-
graph (2) will not be subsequently disclosed except in 
accordance with paragraph (4), the Secretary may release 
or disclose the information to a person or Federal, State, 
local, or tribal agency working in cooperation with the 
Secretary in any Department program— 
(i) when providing technical or financial assistance 
with respect to the agricultural operation, agricultural 
land, or farming or conservation practices; or 
(ii) when responding to a disease or pest threat 
to agricultural operations, if the Secretary determines 
that a threat to agricultural operations exists and the 
disclosure of information to a person or cooperating 
government entity is necessary to assist the Secretary 
in responding to the disease or pest threat as author-
ized by law. 
(4) EXCEPTIONS.—Nothing in this subsection affects— 
(A) the disclosure of payment information (including 
payment information and the names and addresses of 
recipients of payments) under any Department program 
that is otherwise authorized by law; 
(B) the disclosure of information described in para-
graph (2) if the information has been transformed into 
a statistical or aggregate form without naming any— 
(i) individual owner, operator, or producer; or 
(ii) specific data gathering site; or 
(C) the disclosure of information described in para-
graph (2) pursuant to the consent of the agricultural pro-
ducer or owner of agricultural land. 
(5) CONDITION OF OTHER PROGRAMS.—The participation of 
the agricultural producer or owner of agricultural land in, 
or receipt of any benefit under, any program administered 
by the Secretary may not be conditioned on the consent of 
the agricultural producer or owner of agricultural land under 
paragraph (4)(C). 
(6) WAIVER OF PRIVILEGE OR PROTECTION.—The disclosure 
of information under paragraph (2) shall not constitute a waiver 
of any applicable privilege or protection under Federal law, 
including trade secret protection.
H. R. 6124—102 
SEC. 1620. LEASING OF OFFICE SPACE. 
Not later than 1 year after the date of enactment of this 
Act, the Secretary shall submit to the Committee on Agriculture 
and the Committee on Appropriations of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry 
and the Committee on Appropriations of the Senate a report that 
describes— 
(1) the costs and time associated with complying with 
leasing procedures of the General Services Administration rel-
ative to the previous independent leasing procedures of the 
Department of Agriculture; 
(2) the additional staffing needs associated with complying 
with those procedures; and 
(3) the value added to the leasing process and the ability 
of the Department to secure best-value leases by complying 
with the General Services Administration leasing procedures. 
SEC. 
1621. 
GEOGRAPHICALLY 
DISADVANTAGED 
FARMERS 
AND 
RANCHERS. 
(a) DEFINITIONS.—In this section: 
(1) AGRICULTURAL
COMMODITY.—The term ‘‘agricultural 
commodity’’ has the meaning given the term in section 102 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5602). 
(2) 
GEOGRAPHICALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘‘geographically disadvantaged farmer or 
rancher’’ has the meaning given the term in section 10906(a) 
of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 2204 note; Public Law 107–171). 
(b) AUTHORIZATION.—Subject to the availability of funds under 
subsection (d), the Secretary may provide geographically disadvan-
taged farmers or ranchers direct reimbursement payments for 
activities described in subsection (c). 
(c) TRANSPORTATION.— 
(1) IN GENERAL.—Subject to paragraphs (2) and (3), the 
Secretary may provide direct reimbursement payments to a 
geographically disadvantaged farmer or rancher to transport 
an agricultural commodity, or inputs used to produce an agricul-
tural commodity, during a fiscal year. 
(2) PROOF OF ELIGIBILITY.—To be eligible to receive assist-
ance under paragraph (1), a geographically disadvantaged 
farmer or rancher shall demonstrate to the Secretary that 
transportation of the agricultural commodity or inputs occurred 
over a distance of more than 30 miles, as determined by the 
Secretary. 
(3) AMOUNT.— 
(A) IN GENERAL.—Subject to paragraph (2), the amount 
of direct reimbursement payments made to a geographically 
disadvantaged farmer or rancher under this section for 
a fiscal year shall equal the product obtained by multi-
plying— 
(i) the amount of costs incurred by the geographi-
cally disadvantaged farmer or rancher for transpor-
tation of the agricultural commodity or inputs during 
the fiscal year; and 
(ii)(I) the percentage of the allowance for that fiscal 
year under section 5941 of title 5, United States Code,
H. R. 6124—103 
for Federal employees stationed in Alaska and Hawaii; 
or 
(II) in the case of an insular area (as defined 
in section 1404 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103)), a comparable percentage of the allowance for 
the fiscal year, as determined by the Secretary. 
(B) LIMITATION.—The total amount of direct reimburse-
ment payments provided by the Secretary under this sec-
tion shall not exceed $15,000,000 for a fiscal year. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2009 through 2012. 
SEC. 1622. IMPLEMENTATION. 
The Secretary shall make available to the Farm Service Agency 
to carry out this title $50,000,000. 
SEC. 1623. REPEALS. 
(a) COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.— 
Section 1605 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7993) is repealed. 
(b) RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND 
CERTAIN EMERGENCY ASSISTANCE
TO PERSONS THAT FAILED TO 
RECEIVE ASSISTANCE UNDER EARLIER AUTHORITIES.—Section 1617 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8000) is repealed. 
TITLE II—CONSERVATION 
Subtitle A—Definitions and Highly 
Erodible Land and Wetland Conservation 
SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD 
SECURITY ACT OF 1985. 
(a) BEGINNING FARMER OR RANCHER.—Section 1201(a) of the 
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended— 
(1) by redesignating paragraphs (2) through (6), (7) through 
(11), (12), (13) through (15), (16), (17), and (18) as paragraphs 
(3) through (7), (9) through (13), (15), (20) through (22), (24), 
(26), and (27), respectively; and 
(2) by inserting after paragraph (1) the following new para-
graph: 
‘‘(2) BEGINNING FARMER OR RANCHER.—The term ‘beginning 
farmer or rancher’ has the meaning given the term in section 
343(a)(8) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(8)).’’. 
(b) FARM.—Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended by inserting after paragraph (7), 
as redesignated by subsection (a)(1), the following new paragraph: 
‘‘(8) FARM.—The term ‘farm’ means a farm that— 
‘‘(A) is under the general control of one operator; 
‘‘(B) has one or more owners; 
‘‘(C) consists of one or more tracts of land, whether 
or not contiguous;
H. R. 6124—104 
‘‘(D) is located within a county or region, as determined 
by the Secretary; and 
‘‘(E) may contain lands that are incidental to the 
production of perennial crops, including conserving uses, 
forestry, and livestock, as determined by the Secretary.’’. 
(c) INDIAN TRIBE.—Section 1201(a) of the Food Security Act 
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph 
(13), as redesignated by subsection (a)(1), the following new para-
graph: 
‘‘(14) INDIAN
TRIBE.—The term ‘Indian tribe’ has the 
meaning given the term in section 4(e) of the Indian Self- 
Determination and Education Assistance Act (25 U.S.C. 
450b(e)).’’. 
(d) INTEGRATED PEST MANAGEMENT; LIVESTOCK; NONINDUS-
TRIAL PRIVATE FOREST LAND; PERSON AND LEGAL ENTITY.—Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended by inserting after paragraph (15), as redesignated by 
subsection (a)(1), the following new paragraphs: 
‘‘(16) 
INTEGRATED
PEST
MANAGEMENT.—The 
term 
‘integrated pest management’ means a sustainable approach 
to managing pests by combining biological, cultural, physical, 
and chemical tools in a way that minimizes economic, health, 
and environmental risks. 
‘‘(17) LIVESTOCK.—The term ‘livestock’ means all animals 
raised on farms, as determined by the Secretary. 
‘‘(18) NONINDUSTRIAL
PRIVATE
FOREST
LAND.—The term 
‘nonindustrial private forest land’ means rural land, as deter-
mined by the Secretary, that— 
‘‘(A) has existing tree cover or is suitable for growing 
trees; and 
‘‘(B) is owned by any nonindustrial private individual, 
group, association, corporation, Indian tribe, or other pri-
vate legal entity that has definitive decisionmaking 
authority over the land. 
‘‘(19) PERSON AND LEGAL ENTITY.—For purposes of applying 
payment limitations under subtitle D, the terms ‘person’ and 
‘legal entity’ have the meanings given those terms in section 
1001(a) of this Act (7 U.S.C. 1308(a)).’’. 
(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended by inserting after paragraph (22), as redesignated by 
subsection (a)(1), the following new paragraph: 
‘‘(23) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 
term ‘socially disadvantaged farmer or rancher’ has the 
meaning given the term in section 2501(e)(2) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(2)).’’. 
(f) TECHNICAL ASSISTANCE.—Section 1201(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after 
paragraph (24), as redesignated by subsection (a)(1), the following 
new paragraph: 
‘‘(25) TECHNICAL ASSISTANCE.—The term ‘technical assist-
ance’ means technical expertise, information, and tools nec-
essary for the conservation of natural resources on land active 
in agricultural, forestry, or related uses. The term includes 
the following:
H. R. 6124—105 
‘‘(A) Technical services provided directly to farmers, 
ranchers, and other eligible entities, such as conservation 
planning, technical consultation, and assistance with 
design and implementation of conservation practices. 
‘‘(B) Technical infrastructure, including activities, proc-
esses, tools, and agency functions needed to support 
delivery of technical services, such as technical standards, 
resource inventories, training, data, technology, monitoring, 
and effects analyses.’’. 
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO 
HIGHLY ERODIBLE LAND CONSERVATION. 
Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) 
is amended by striking subsection (f) and inserting the following 
new subsection: 
‘‘(f) GRADUATED PENALTIES.— 
‘‘(1) INELIGIBILITY.—No person shall become ineligible 
under section 1211 for program loans, payments, and benefits 
as a result of the failure of the person to actively apply a 
conservation plan, if the Secretary determines that the person 
has acted in good faith and without an intent to violate this 
subtitle. 
‘‘(2) ELIGIBLE
REVIEWERS.—A determination of the Sec-
retary, or a designee of the Secretary, under paragraph (1) 
shall be reviewed by the applicable— 
‘‘(A) State Executive Director, with the technical 
concurrence of the State Conservationist; or 
‘‘(B) district director, with the technical concurrence 
of the area conservationist. 
‘‘(3) PERIOD FOR IMPLEMENTATION.—A person who meets 
the requirements of paragraph (1) shall be allowed a reasonable 
period of time, as determined by the Secretary, but not to 
exceed 1 year, during which to implement the measures and 
practices necessary to be considered to be actively applying 
the conservation plan of the person. 
‘‘(4) PENALTIES.— 
‘‘(A) APPLICATION.—This paragraph applies if the Sec-
retary determines that— 
‘‘(i) a person has failed to comply with section 
1211 with respect to highly erodible cropland, and 
has acted in good faith and without an intent to violate 
section 1211; or 
‘‘(ii) the violation— 
‘‘(I) is technical and minor in nature; and 
‘‘(II) has a minimal effect on the erosion control 
purposes of the conservation plan applicable to 
the land on which the violation has occurred. 
‘‘(B) REDUCTION.—If this paragraph applies under 
subparagraph (A), the Secretary shall, in lieu of applying 
the ineligibility provisions of section 1211, reduce program 
benefits described in section 1211 that the producer would 
otherwise be eligible to receive in a crop year by an amount 
commensurate with the seriousness of the violation, as 
determined by the Secretary. 
‘‘(5) SUBSEQUENT CROP YEARS.—Any person whose benefits 
are reduced for any crop year under this subsection shall con-
tinue to be eligible for all of the benefits described in section
H. R. 6124—106 
1211 for any subsequent crop year if, prior to the beginning 
of the subsequent crop year, the Secretary determines that 
the person is actively applying a conservation plan according 
to the schedule specified in the plan.’’. 
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO 
WETLAND CONSERVATION. 
Section 1222(h) of the Food Security Act of 1985 (16 U.S.C. 
3822(h)) is amended— 
(1) by redesignating paragraph (2) as paragraph (3); 
(2) by inserting after paragraph (1) the following new para-
graph: 
‘‘(2) ELIGIBLE
REVIEWERS.—A determination of the Sec-
retary, or a designee of the Secretary, under paragraph (1) 
shall be reviewed by the applicable— 
‘‘(A) State Executive Director, with the technical 
concurrence of the State Conservationist; or 
‘‘(B) district director, with the technical concurrence 
of the area conservationist.’’; and 
(3) in paragraph (3) (as redesignated by paragraph (1)), 
by inserting ‘‘be’’ before ‘‘actively’’. 
Subtitle B—Conservation Reserve Program 
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM. 
Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 
3831(a)) is amended— 
(1) by striking ‘‘2007 calendar year’’ and inserting ‘‘2012 
fiscal year’’; and 
(2) by inserting before the period the following: ‘‘and to 
address issues raised by State, regional, and national conserva-
tion initiatives’’; and 
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION 
RESERVE. 
Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 
3831(b)) is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘Farm Security and Rural Investment 
Act of 2002’’ and inserting ‘‘Food, Conservation, and Energy 
Act of 2008’’; and 
(B) by striking the period at the end and inserting 
a semicolon; and 
(2) in paragraph (4)— 
(A) in subparagraph (C), by striking ‘‘; or’’ and inserting 
a semicolon; 
(B) in subparagraph (D), by striking ‘‘and’’ at the end 
and inserting ‘‘or’’; and 
(C) in subparagraph (E), by inserting ‘‘or’’ after the 
semicolon at the end. 
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION 
RESERVE. 
Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 
3831(d)) is amended— 
(1) by striking ‘‘2007 calendar years’’ and inserting ‘‘2009 
fiscal years’’;
H. R. 6124—107 
(2) by striking ‘‘( 16 U.S.C.’’ and inserting ‘‘(16 U.S.C.’’; 
and 
(3) by adding at the end the following new sentence: 
‘‘During fiscal years 2010, 2011, and 2012, the Secretary may 
maintain up to 32,000,000 acres in the conservation reserve 
at any 1 time.’’. 
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS. 
Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended by striking ‘‘the Chesapeake Bay Region 
(Pennsylvania, Maryland, and Virginia)’’ and inserting ‘‘the Chesa-
peake Bay Region’’. 
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES. 
Subsection (g) of section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended to read as follows: 
‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 
‘‘(1) IN GENERAL.—For purposes of this subchapter, alfalfa 
and other multi-year grasses and legumes in a rotation practice, 
approved by the Secretary, shall be considered agricultural 
commodities. 
‘‘(2) CROPPING HISTORY.—Alfalfa, when grown as part of 
a rotation practice, as determined by the Secretary, is an agri-
cultural commodity subject to the cropping history criteria 
under subsection (b)(1)(B) for the purpose of determining 
whether highly erodible cropland has been planted or consid-
ered planted for 4 of the 6 years referred to in such subsection.’’. 
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND 
AND BUFFER ACREAGE IN CONSERVATION RESERVE. 
(a) REVISED PROGRAM.— 
(1) IN GENERAL.—Title XII of the Food Security Act of 
1985 is amended by inserting after section 1231 (16 U.S.C. 
3831) the following new section: 
‘‘SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND 
BUFFER ACREAGE IN CONSERVATION RESERVE. 
‘‘(a) PROGRAM REQUIRED.— 
‘‘(1) IN GENERAL.—During the 2008 through 2012 fiscal 
years, the Secretary shall carry out a program in each State 
under which the Secretary shall enroll eligible acreage 
described in subsection (b). 
‘‘(2) PARTICIPATION AMONG STATES.—The Secretary shall 
ensure, to the maximum extent practicable, that owners and 
operators in each State have an equitable opportunity to partici-
pate in the program established under this section. 
‘‘(b) ELIGIBLE ACREAGE.— 
‘‘(1) WETLAND AND RELATED LAND.—Subject to subsections 
(c) and (d), an owner or operator may enroll in the conservation 
reserve, pursuant to the program established under this section, 
land— 
‘‘(A) that is wetland (including a converted wetland 
described in section 1222(b)(1)(A)) that had a cropping his-
tory during at least 3 of the immediately preceding 10 
crop years; 
‘‘(B) on which a constructed wetland is to be developed 
that will receive flow from a row crop agriculture drainage
H. R. 6124—108 
system and is designed to provide nitrogen removal in 
addition to other wetland functions; 
‘‘(C) that was devoted to commercial pond-raised aqua-
culture in any year during the period of calendar years 
2002 through 2007; or 
‘‘(D) that, after January 1, 1990, and before December 
31, 2002, was— 
‘‘(i) cropped during at least 3 of 10 crop years; 
and 
‘‘(ii) subject to the natural overflow of a prairie 
wetland. 
‘‘(2) BUFFER ACREAGE.—Subject to subsections (c) and (d), 
an owner or operator may enroll in the conservation reserve, 
pursuant to the program established under this section, buffer 
acreage that— 
‘‘(A) with respect to land described in subparagraph 
(A), (B), or (C) of paragraph (1)— 
‘‘(i) is contiguous to such land 
‘‘(ii) is used to protect such land; and 
‘‘(iii) is of such width as the Secretary determines 
is necessary to protect such land, taking into consider-
ation and accommodating the farming practices 
(including the straightening of boundaries to accommo-
date machinery) used with respect to the cropland 
that surrounds such land; and 
‘‘(B) with respect to land described in subparagraph 
(D) of paragraph (1), enhances a wildlife benefit to the 
extent practicable in terms of upland to wetland ratios, 
as determined by the Secretary. 
‘‘(c) PROGRAM LIMITATIONS.— 
‘‘(1) ACREAGE LIMITATION.—The Secretary may enroll in 
the conservation reserve, pursuant to the program established 
under this section, not more than— 
‘‘(A) 100,000 acres in any State; and 
‘‘(B) a total of 1,000,000 acres. 
‘‘(2) RELATIONSHIP TO MAXIMUM ENROLLMENT.—Subject to 
paragraph (3), any acreage enrolled in the conservation reserve 
under this section shall be considered acres maintained in 
the conservation reserve. 
‘‘(3) RELATIONSHIP TO OTHER ENROLLED ACREAGE.—Acreage 
enrolled in the conservation reserve under this section shall 
not affect for any fiscal year the quantity of— 
‘‘(A) acreage enrolled to establish conservation buffers 
as part of the program announced on March 24, 1998 
(63 Fed. Reg. 14109); or 
‘‘(B) acreage enrolled into the conservation reserve 
enhancement program announced on May 27, 1998 (63 
Fed. Reg. 28965). 
‘‘(4) REVIEW; POTENTIAL INCREASE IN ENROLLMENT ACRE-
AGE.—The Secretary shall conduct a review of the program 
established under this section with respect to each State that 
has enrolled land in the conservation reserve pursuant to the 
program. As a result of the review, the Secretary may increase 
the number of acres that may be enrolled in a State under 
the program to not more than 200,000 acres, notwithstanding 
paragraph (1)(A). 
‘‘(d) OWNER OR OPERATOR ENROLLMENT LIMITATIONS.—
H. R. 6124—109 
‘‘(1) WETLAND AND RELATED LAND.— 
‘‘(A) WETLANDS
AND
CONSTRUCTED
WETLANDS.—The 
maximum size of any land described in subparagraph (A) 
or (B) of subsection (b)(1) that an owner or operator may 
enroll in the conservation reserve, pursuant to the program 
established under this section, shall be 40 contiguous acres. 
‘‘(B) FLOODED FARMLAND.—The maximum size of any 
land described in subparagraph (D) of subsection (b)(1) 
that an owner or operator may enroll in the conservation 
reserve, pursuant to the program established under this 
section, shall be 20 contiguous acres. 
‘‘(C) COVERAGE.—All acres described in subparagraph 
(A) or (B), including acres that are ineligible for payment, 
shall be covered by the conservation contract. 
‘‘(2) BUFFER ACREAGE.—The maximum size of any buffer 
acreage described in subsection (b)(2) that an owner or operator 
may enroll in the conservation reserve under this section shall 
be determined by the Secretary in consultation with the State 
Technical Committee. 
‘‘(3) TRACTS.—Except for land described in subsection 
(b)(1)(C) and buffer acreage related to such land, the maximum 
size of any eligible acreage described in subsection (b)(1) in 
a tract of an owner or operator enrolled in the conservation 
reserve under this section shall be 40 acres. 
‘‘(e) DUTIES
OF OWNERS
AND OPERATORS.—During the term 
of a contract entered into under the program established under 
this section, an owner or operator shall agree— 
‘‘(1) to restore the hydrology of the wetland within the 
eligible acreage to the maximum extent practicable, as deter-
mined by the Secretary; 
‘‘(2) to establish vegetative cover (which may include 
emerging vegetation in water and bottomland hardwoods, 
cypress, and other appropriate tree species) on the eligible 
acreage, as determined by the Secretary; 
‘‘(3) to a general prohibition of commercial use of the 
enrolled land; and 
‘‘(4) to carry out other duties described in section 1232. 
‘‘(f) DUTIES OF THE SECRETARY.— 
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2) 
and (3), in return for a contract entered into under this section, 
the Secretary shall— 
‘‘(A) make payments to the owner or operator based 
on rental rates for cropland; and 
‘‘(B) provide assistance to the owner or operator in 
accordance with sections 1233 and 1234. 
‘‘(2) CONTRACT OFFERS AND PAYMENTS.—The Secretary shall 
use the method of determination described in section 
1234(c)(2)(B) to determine the acceptability of contract offers 
and the amount of rental payments under this section. 
‘‘(3) INCENTIVES.—The amounts payable to owners and 
operators in the form of rental payments under contracts 
entered into under this section shall reflect incentives that 
are provided to owners and operators to enroll filterstrips in 
the conservation reserve under section 1234.’’. 
(2) REPEAL OF SUPERCEDED PROGRAM.—Section 1231 of the 
Food Security Act of 1985 (16 U.S.C. 3831) is amended— 
(A) by striking subsection (h); and
H. R. 6124—110 
(B) by redesignating subsections (i) and (j) as sub-
sections (h) and (i), respectively. 
(b) CONFORMING CHANGES
TO EMERGENCY FORESTRY CON-
SERVATION RESERVE PROGRAM.—Subsection (k) of section 1231 of 
the Food Security Act of 1985 (16 U.S.C. 3831) is amended— 
(1) by striking ‘‘(k) EMERGENCY FORESTRY CONSERVATION 
RESERVE PROGRAM.—’’ and inserting the following: 
‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PRO-
GRAM.’’; 
(2) by striking ‘‘subsection’’ each place it appears (other 
than paragraph (3)(C)(ii)) and inserting ‘‘section’’; 
(3) by redesignating paragraphs (1), (2), and (3) as sub-
sections (a), (b), and (c), respectively; 
(4) in subsection (a), as so redesignated, by redesignating 
subparagraphs (A) and (B) as paragraphs (1) and (2), respec-
tively; and 
(5) in subsection (c), as so redesignated— 
(A) by redesignating subparagraphs (A) through (I) 
as paragraphs (1) through (9), respectively; 
(B) in paragraph (1), as so redesignated, by striking 
‘‘subparagraph (B)’’ and ‘‘subparagraph (G)’’ and inserting 
‘‘paragraph (2)’’ and ‘‘paragraph (7)’’, respectively; 
(C) in paragraph (3), as so redesignated— 
(i) by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; and 
(ii) by striking ‘‘subsection (d)’’ and inserting ‘‘sec-
tion 1231(d)’’; 
(D) in paragraph (4), as so redesignated, by redesig-
nating clauses (i) and (ii) as subparagraphs (A) and (B), 
respectively; 
(E) in paragraph (5), as so redesignated— 
(i) by redesignating clauses (i) through (v) as sub-
paragraphs (A) through (E), respectively, and sub-
clauses (I) and (II) as clauses (i) and (ii), respectively; 
(ii) in subparagraph (B), as so redesignated, by 
striking ‘‘clause (i)(I)’’ and inserting ‘‘subparagraph 
(A)(i)’’; and 
(iii) in subparagraph (C), as so redesignated, by 
striking ‘‘clause (i)(II)’’ and inserting ‘‘subparagraph 
(A)(ii)’’; and 
(F) in paragraph (9), as so redesignated, by redesig-
nating clauses (i) through (iii) as subparagraphs (A) 
through (C), respectively, and subclauses (I) through (III) 
as clauses (i) through (iii), respectively. 
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVA-
TION RESERVE CONTRACTS. 
Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)) is amended— 
(1) by redesignating paragraphs (5) through (10) as para-
graphs (6) through (11), respectively; and 
(2) by inserting after paragraph (4) the following new para-
graph: 
‘‘(5) to undertake management on the land as needed 
throughout the term of the contract to implement the conserva-
tion plan;’’.
H. R. 6124—111 
SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE 
OF FORAGE ON ENROLLED LAND AND INSTALLATION OF 
WIND TURBINES. 
(a) GENERAL PROHIBITION; EXCEPTIONS.—Section 1232(a) of the 
Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended by striking 
paragraph (8), as redesignated by section 2107, and inserting the 
following new paragraph: 
‘‘(8) not to conduct any harvesting or grazing, nor otherwise 
make commercial use of the forage, on land that is subject 
to the contract, nor adopt any similar practice specified in 
the contract by the Secretary as a practice that would tend 
to defeat the purposes of the contract, except that the Secretary 
may permit, consistent with the conservation of soil, water 
quality, and wildlife habitat (including habitat during nesting 
seasons for birds in the area)— 
‘‘(A) managed harvesting (including the managed har-
vesting of biomass), except that in permitting managed 
harvesting, the Secretary, in coordination with the State 
technical committee— 
‘‘(i) shall develop appropriate vegetation manage-
ment requirements; and 
‘‘(ii) shall identify periods during which managed 
harvesting may be conducted; 
‘‘(B) harvesting and grazing or other commercial use 
of the forage on the land that is subject to the contract 
in response to a drought or other emergency; 
‘‘(C) routine grazing or prescribed grazing for the con-
trol of invasive species, except that in permitting such 
routine grazing or prescribed grazing, the Secretary, in 
coordination with the State technical committee— 
‘‘(i) shall develop appropriate vegetation manage-
ment requirements and stocking rates for the land 
that are suitable for continued routine grazing; and 
‘‘(ii) shall establish the frequency during which 
routine grazing may be conducted, taking into consider-
ation regional differences such as— 
‘‘(I) climate, soil type, and natural resources; 
‘‘(II) the number of years that should be 
required between routine grazing activities; and 
‘‘(III) how often during a year in which routine 
grazing is permitted that routine grazing should 
be allowed to occur; and 
‘‘(D) the installation of wind turbines, except that in 
permitting the installation of wind turbines, the Secretary 
shall determine the number and location of wind turbines 
that may be installed, taking into account— 
‘‘(i) the location, size, and other physical character-
istics of the land; 
‘‘(ii) the extent to which the land contains wildlife 
and wildlife habitat; and 
‘‘(iii) the purposes of the conservation reserve pro-
gram under this subchapter;’’. 
(b) RENTAL PAYMENT REDUCTION.—Section 1232 of the Food 
Security Act of 1985 (16 U.S.C. 3832) is amended by adding at 
the end the following new subsection: 
‘‘(d) RENTAL PAYMENT REDUCTION FOR CERTAIN AUTHORIZED 
USES OF ENROLLED LAND.—In the case of an authorized activity
H. R. 6124—112 
under subsection (a)(8) on land that is subject to a contract under 
this subchapter, the Secretary shall reduce the rental payment 
otherwise payable under the contract by an amount commensurate 
with the economic value of the authorized activity.’’. 
SEC. 
2109. 
COST 
SHARING 
PAYMENTS 
RELATING 
TO 
TREES, 
WINDBREAKS, 
SHELTERBELTS, 
AND 
WILDLIFE 
COR-
RIDORS. 
Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 
3834(b)) is amended by striking paragraph (3) and inserting the 
following new paragraph: 
‘‘(3) TREES, WINDBREAKS, SHELTERBELTS, AND WILDLIFE COR-
RIDORS.— 
‘‘(A) APPLICABILITY.—This paragraph applies to— 
‘‘(i) land devoted to the production of hardwood 
trees, windbreaks, shelterbelts, or wildlife corridors 
under a contract entered into under this subchapter 
after November 28, 1990; 
‘‘(ii) land converted to such production under sec-
tion 1235A; and 
‘‘(iii) land on which an owner or operator agrees 
to conduct thinning authorized by section 1232(a)(9), 
if the thinning is necessary to improve the condition 
of resources on the land. 
‘‘(B) PAYMENTS.— 
‘‘(i) PERCENTAGE.—In making cost share payments 
to an owner or operator of land described in subpara-
graph (A), the Secretary shall pay 50 percent of the 
reasonable and necessary costs incurred by the owner 
or operator for maintaining trees or shrubs, including 
the cost of replanting (if the trees or shrubs were 
lost due to conditions beyond the control of the owner 
or operator) or thinning. 
‘‘(ii) DURATION.—The Secretary shall make pay-
ments as described in clause (i) for a period of not 
less than 2 years, but not more than 4 years, beginning 
on the date of— 
‘‘(I) the planting of the trees or shrubs; or 
‘‘(II) the thinning of existing stands to improve 
the condition of resources on the land.’’. 
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, 
ANNUAL RENTAL PAYMENTS, AND PAYMENT LIMITA-
TIONS. 
(a) EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS.—Sec-
tion 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) 
is amended by striking paragraph (3) and inserting the following 
new paragraph: 
‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.— 
‘‘(A) EVALUATION
OF
OFFERS.—In determining the 
acceptability of contract offers, the Secretary may take 
into consideration the extent to which enrollment of the 
land that is the subject of the contract offer would improve 
soil resources, water quality, or wildlife habitat or provide 
other environmental benefits. 
‘‘(B) ESTABLISHMENT OF DIFFERENT CRITERIA IN VAR-
IOUS STATES AND REGIONS.—The Secretary may establish
H. R. 6124—113 
different criteria for determining the acceptability of con-
tract offers in various States and regions of the United 
States based on the extent to which water quality or wild-
life habitat may be improved or erosion may be abated. 
‘‘(C) LOCAL PREFERENCE.—In determining the accept-
ability of contract offers for new enrollments, the Secretary 
shall accept, to the maximum extent practicable, an offer 
from an owner or operator that is a resident of the county 
in which the land is located or of a contiguous county 
if, as determined by the Secretary, the land would provide 
at least equivalent conservation benefits to land under 
competing offers.’’. 
(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED CASH RENTAL 
RATES.— 
(1) ANNUAL ESTIMATES REQUIRED.—Section 1234(c) of the 
Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by 
adding at the end the following new paragraph: 
‘‘(5) RENTAL RATES.— 
‘‘(A) 
ANNUAL
ESTIMATES.—The 
Secretary 
(acting 
through the National Agricultural Statistics Service) shall 
conduct an annual survey of per acre estimates of county 
average market dryland and irrigated cash rental rates 
for cropland and pastureland in all counties or equivalent 
subdivisions within each State that have 20,000 acres or 
more of cropland and pastureland. 
‘‘(B) PUBLIC
AVAILABILITY
OF
ESTIMATES.—The esti-
mates derived from the annual survey conducted under 
subparagraph (A) shall be maintained on a website of the 
Department of Agriculture for use by the general public.’’. 
(2) FIRST SURVEY.—The first survey required by paragraph 
(5) of section 1234(c) of the Food Security Act of 1985 (16 
U.S.C. 3834(c)), as added by subsection (a), shall be conducted 
not later than 1 year after the date of enactment of this Act. 
(c) PAYMENT LIMITATIONS.—Section 1234(f) of the Food Security 
Act of 1985 (16 U.S.C. 3834(f)) is amended— 
(1) in paragraph (1), by striking ‘‘made to a person’’ and 
inserting ‘‘received by a person or legal entity, directly or 
indirectly,’’; 
(2) by striking paragraph (2); and 
(3) in paragraph (4), by striking ‘‘any person’’ and inserting 
‘‘any person or legal entity’’. 
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCEN-
TIVES FOR BEGINNING FARMERS OR RANCHERS AND 
SOCIALLY DISADVANTAGED FARMERS OR RANCHERS. 
(a) CONTRACT MODIFICATION AUTHORITY.—Section 1235(c)(1)(B) 
of the Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is 
amended— 
(1) in clause (ii), by striking ‘‘or’’ at the end; 
(2) by redesignating clause (iii) as clause (iv); and 
(3) by inserting after clause (ii) the following new clause: 
‘‘(iii) to facilitate a transition of land subject to 
the contract from a retired or retiring owner or oper-
ator to a beginning farmer or rancher or socially dis-
advantaged farmer or rancher for the purpose of 
returning some or all of the land into production using 
sustainable grazing or crop production methods; or’’.
H. R. 6124—114 
(b) TRANSITION OPTION.—Section 1235 of the Food Security 
Act of 1985 (16 U.S.C. 3835) is amended by adding at the end 
the following new subsection: 
‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR RANCHERS.— 
‘‘(1) DUTIES OF THE SECRETARY.—In the case of a contract 
modification approved in order to facilitate the transfer, as 
described in subsection (c)(1)(B)(iii), of land to a beginning 
farmer or rancher or socially disadvantaged farmer or rancher 
(in this subsection referred to as a ‘covered farmer or rancher’), 
the Secretary shall— 
‘‘(A) beginning on the date that is 1 year before the 
date of termination of the contract— 
‘‘(i) allow the covered farmer or rancher, in 
conjunction with the retired or retiring owner or oper-
ator, to make conservation and land improvements; 
and 
‘‘(ii) allow the covered farmer or rancher to begin 
the certification process under the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et seq.); 
‘‘(B) beginning on the date of termination of the con-
tract, require the retired or retiring owner or operator 
to sell or lease (under a long-term lease or a lease with 
an option to purchase) to the covered farmer or rancher 
the land subject to the contract for production purposes; 
‘‘(C) require the covered farmer or rancher to develop 
and implement a conservation plan; 
‘‘(D) provide to the covered farmer or rancher an oppor-
tunity to enroll in the conservation stewardship program 
or the environmental quality incentives program by not 
later than the date on which the farmer or rancher takes 
possession of the land through ownership or lease; and 
‘‘(E) continue to make annual payments to the retired 
or retiring owner or operator for not more than an addi-
tional 2 years after the date of termination of the contract, 
if the retired or retiring owner or operator is not a family 
member (as defined in section 1001A(b)(3)(B) of this Act) 
of the covered farmer or rancher. 
‘‘(2) REENROLLMENT.—The Secretary shall provide a cov-
ered farmer or rancher with the option to reenroll any 
applicable partial field conservation practice that— 
‘‘(A) is eligible for enrollment under the continuous 
signup requirement of section 1231(h)(4)(B); and 
‘‘(B) is part of an approved conservation plan.’’. 
Subtitle C—Wetlands Reserve Program 
SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE 
PROGRAM. 
Subsection (a) of section 1237 of the Food Security Act of 
1985 (16 U.S.C. 3837) is amended to read as follows: 
‘‘(a) ESTABLISHMENT AND PURPOSES.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a wet-
lands reserve program to assist owners of eligible lands in 
restoring and protecting wetlands.
H. R. 6124—115 
‘‘(2) PURPOSES.—The purposes of the wetlands reserve pro-
gram are to restore, protect, or enhance wetlands on private 
or tribal lands that are eligible under subsections (c) and (d).’’. 
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS. 
Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 
3837(b)) is amended— 
(1) by striking paragraph (1) and inserting the following 
new paragraph: 
‘‘(1) MAXIMUM ENROLLMENT.—The total number of acres 
enrolled in the wetlands reserve program shall not exceed 
3,041,200 acres.’’; 
(2) in paragraph (2), by striking ‘‘The Secretary’’ and 
inserting ‘‘Subject to paragraph (3), the Secretary’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In the case of 
acreage owned by an Indian tribe, the Secretary shall enroll 
acreage into the wetlands reserve program through the use 
of— 
‘‘(A) a 30-year contract (the value of which shall be 
equivalent to the value of a 30-year easement); 
‘‘(B) restoration cost-share agreements; or 
‘‘(C) any combination of the options described in sub-
paragraphs (A) and (B).’’. 
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS 
ELIGIBLE FOR ENROLLMENT. 
(a) IN GENERAL.—Section 1237(c) of the Food Security Act 
of 1985 (16 U.S.C. 3837(c)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘2007 calendar’’ and inserting ‘‘2012 
fiscal’’; and 
(B) by inserting ‘‘private or tribal’’ before ‘‘land’’ the 
second place it appears; 
(2) by striking paragraph (2) and inserting the following 
new paragraph: 
‘‘(2) such land is— 
‘‘(A) farmed wetland or converted wetland, together 
with the adjacent land that is functionally dependent on 
the wetlands, except that converted wetland with respect 
to which the conversion was not commenced prior to 
December 23, 1985, shall not be eligible to be enrolled 
in the program under this section; or 
‘‘(B) cropland or grassland that was used for agricul-
tural production prior to flooding from the natural overflow 
of a closed basin lake or pothole, as determined by the 
Secretary, together (where practicable) with the adjacent 
land that is functionally dependent on the cropland or 
grassland; and’’. 
(b) CHANGE OF OWNERSHIP.—Section 1237E(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837e(a)) is amended by striking ‘‘in 
the preceding 12 months’’ and inserting ‘‘during the preceding 7- 
year period’’. 
(c) ANNUAL SURVEY AND REALLOCATION.—Section 1237F of the 
Food Security Act of 1985 (16 U.S.C. 3837f) is amended by adding 
at the end the following new subsection: 
‘‘(c) PRAIRIE POTHOLE REGION SURVEY AND REALLOCATION.—
H. R. 6124—116 
‘‘(1) SURVEY.—The Secretary shall conduct a survey during 
fiscal year 2008 and each subsequent fiscal year for the purpose 
of determining interest and allocations for the Prairie Pothole 
Region to enroll eligible land described in section 1237(c)(2)(B). 
‘‘(2) ANNUAL ADJUSTMENT.—The Secretary shall make an 
adjustment to the allocation for an interested State for a fiscal 
year, based on the results of the survey conducted under para-
graph (1) for the State during the previous fiscal year.’’. 
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS. 
Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 
U.S.C. 3837a(b)(2)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking ‘‘; and’’ and inserting ‘‘; or’’; 
and 
(3) by adding at the end the following new clause: 
‘‘(iii) to meet habitat needs of specific wildlife spe-
cies; and’’. 
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS 
RESERVE PROGRAM. 
Subsection (f) of section 1237A of the Food Security Act of 
1985 (16 U.S.C. 3837a) is amended to read as follows: 
‘‘(f) COMPENSATION.— 
‘‘(1) DETERMINATION.—Effective on the date of the enact-
ment of the Food, Conservation, and Energy Act of 2008, the 
Secretary shall pay as compensation for a conservation ease-
ment acquired under this subchapter the lowest of— 
‘‘(A) the fair market value of the land, as determined 
by the Secretary, using the Uniform Standards of Profes-
sional Appraisal Practices or an area-wide market analysis 
or survey; 
‘‘(B) the amount corresponding to a geographical cap, 
as determined by the Secretary in regulations; or 
‘‘(C) the offer made by the landowner. 
‘‘(2) FORM OF PAYMENT.—Compensation for an easement 
shall be provided by the Secretary in the form of a cash pay-
ment, in an amount determined under paragraph (1) and speci-
fied in the easement agreement. 
‘‘(3) PAYMENT SCHEDULE FOR EASEMENTS.— 
‘‘(A) EASEMENTS VALUED AT $500,000 OR LESS.—For ease-
ments valued at $500,000 or less, the Secretary may pro-
vide easement payments in not more than 30 annual pay-
ments. 
‘‘(B) EASEMENTS IN EXCESS OF $500,000.—For easements 
valued at more than $500,000, the Secretary may provide 
easement payments in at least 5, but not more than 30 
annual payments, except that, if the Secretary determines 
it would further the purposes of the program, the Secretary 
may make a lump sum payment for such an easement. 
‘‘(4) RESTORATION AGREEMENT PAYMENT LIMITATION.—Pay-
ments made to a person or legal entity, directly or indirectly, 
pursuant to a restoration cost-share agreement under this sub-
chapter may not exceed, in the aggregate, $50,000 per year. 
‘‘(5) ENROLLMENT
PROCEDURE.—Lands may be enrolled 
under this subchapter through the submission of bids under 
a procedure established by the Secretary.’’.
H. R. 6124—117 
SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND 
RESERVED RIGHTS PILOT PROGRAM. 
Section 1237A of the Food Security Act of 1985 (16 U.S.C. 
3837a) is amended by adding at the end the following new sub-
section: 
‘‘(h) WETLANDS RESERVE ENHANCEMENT PROGRAM.— 
‘‘(1) PROGRAM AUTHORIZED.—The Secretary may enter into 
1 or more agreements with a State (including a political subdivi-
sion or agency of a State), nongovernmental organization, or 
Indian tribe to carry out a special wetlands reserve enhance-
ment program that the Secretary determines would advance 
the purposes of this subchapter. 
‘‘(2) RESERVED RIGHTS PILOT PROGRAM.— 
‘‘(A) RESERVATION OF GRAZING RIGHTS.—As part of the 
wetlands reserve enhancement program, the Secretary 
shall carry out a pilot program for land in which a land-
owner may reserve grazing rights in the warranty easement 
deed restriction if the Secretary determines that the res-
ervation and use of the grazing rights— 
‘‘(i) is compatible with the land subject to the ease-
ment; 
‘‘(ii) is consistent with the long-term wetland 
protection and enhancement goals for which the ease-
ment was established; and 
‘‘(iii) complies with a conservation plan. 
‘‘(B) DURATION.—The pilot program established under 
this paragraph shall terminate on September 30, 2012.’’. 
SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WET-
LANDS RESERVE PROGRAM. 
Section 1237C of the Food Security Act of 1985 (16 U.S.C. 
3837c) is amended— 
(1) in subsection (a)(1), by inserting ‘‘including necessary 
maintenance activities,’’ after ‘‘values,’’; and 
(2) by striking subsection (c) and inserting the following 
new subsection: 
‘‘(c) RANKING OF OFFERS.— 
‘‘(1) CONSERVATION
BENEFITS
AND
FUNDING
CONSIDER-
ATIONS.—When evaluating offers from landowners, the Sec-
retary may consider— 
‘‘(A) the conservation benefits of obtaining an easement 
or other interest in the land; 
‘‘(B) the cost-effectiveness of each easement or other 
interest in eligible land, so as to maximize the environ-
mental benefits per dollar expended; and 
‘‘(C) whether the landowner or another person is 
offering to contribute financially to the cost of the easement 
or other interest in the land to leverage Federal funds. 
‘‘(2) ADDITIONAL
CONSIDERATIONS.—In determining the 
acceptability of easement offers, the Secretary may take into 
consideration— 
‘‘(A) the extent to which the purposes of the easement 
program would be achieved on the land; 
‘‘(B) the productivity of the land; and 
‘‘(C) the on-farm and off-farm environmental threats 
if the land is used for the production of agricultural 
commodities.’’.
H. R. 6124—118 
SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CON-
TRACTS AND AGREEMENTS. 
Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)(1)) is amended— 
(1) by striking ‘‘The total amount of easement payments 
made to a person’’ and inserting ‘‘The total amount of payments 
that a person or legal entity may receive, directly or indirectly,’’; 
and 
(2) by inserting ‘‘or under 30-year contracts’’ before the 
period at the end. 
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE 
AGREEMENTS FOR WETLANDS RESERVE ENHANCEMENT. 
Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)) is amended by striking paragraph (4). 
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CON-
SERVATION EASEMENTS. 
(a) REPORT REQUIRED.—Not later than January 1, 2010, the 
Secretary of Agriculture shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that 
evaluates the implications of the long-term nature of conservation 
easements granted under section 1237A of the Food Security Act 
of 1985 (16 U.S.C. 3837a) on resources of the Department of Agri-
culture. 
(b) INCLUSIONS.—The report required by subsection (a) shall 
include the following: 
(1) Data relating to the number and location of conservation 
easements granted under that section that the Secretary holds 
or has a significant role in monitoring or managing. 
(2) An assessment of the extent to which the oversight 
of the conservation easement agreements impacts the avail-
ability of resources, including technical assistance. 
(3) An assessment of the uses and value of agreements 
with partner organizations. 
(4) Any other relevant information relating to costs or 
other effects that would be helpful to the Committees referred 
to in subsection (a). 
Subtitle D—Conservation Stewardship 
Program 
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—Chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 is amended— 
(1) by redesignating subchapters B (farmland protection 
program) and C (grassland reserve program) as subchapters 
C and D, respectively; and 
(2) by inserting after subchapter A the following new sub-
chapter: 
‘‘Subchapter B—Conservation Stewardship Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter:
H. R. 6124—119 
‘‘(1) CONSERVATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘conservation activities’ 
means conservation systems, practices, or management 
measures that are designed to address a resource concern. 
‘‘(B) INCLUSIONS.—The term ‘conservation activities’ 
includes— 
‘‘(i) structural measures, vegetative measures, and 
land management measures, including agriculture 
drainage management systems, as determined by the 
Secretary; and 
‘‘(ii) planning needed to address a resource concern. 
‘‘(2) CONSERVATION MEASUREMENT TOOLS.—The term ‘con-
servation measurement tools’ means procedures to estimate 
the level of environmental benefit to be achieved by a producer 
in implementing conservation activities, including indices or 
other measures developed by the Secretary. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.—The term ‘con-
servation stewardship plan’ means a plan that— 
‘‘(A) identifies and inventories resource concerns; 
‘‘(B) establishes benchmark data and conservation 
objectives; 
‘‘(C) describes conservation activities to be imple-
mented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation plan for the 
planning, installation, and management of the new and 
existing conservation activities. 
‘‘(4) PRIORITY
RESOURCE
CONCERN.—The term ‘priority 
resource concern’ means a resource concern that is identified 
at the State level, in consultation with the State Technical 
Committee, as a priority for a particular watershed or area 
of the State. 
‘‘(5) PROGRAM.—The term ‘program’ means the conservation 
stewardship program established by this subchapter. 
‘‘(6) RESOURCE
CONCERN.—The term ‘resource concern’ 
means a specific natural resource impairment or problem, as 
determined by the Secretary, that— 
‘‘(A) represents a significant concern in a State or 
region; and 
‘‘(B) is likely to be addressed successfully through the 
implementation of conservation activities by producers on 
land eligible for enrollment in the program. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term ‘stewardship 
threshold’ means the level of natural resource conservation 
and environmental management required, as determined by 
the Secretary using conservation measurement tools, to improve 
and conserve the quality and condition of a resource concern. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of fiscal years 
2009 through 2012, the Secretary shall carry out a conservation 
stewardship program to encourage producers to address resource 
concerns in a comprehensive manner— 
‘‘(1) by undertaking additional conservation activities; and 
‘‘(2) by improving, maintaining and managing existing con-
servation activities. 
‘‘(b) ELIGIBLE LAND.—
H. R. 6124—120 
‘‘(1) IN GENERAL.—Except as provided in subsection (c), 
the following land is eligible for enrollment in the program: 
‘‘(A) Private agricultural land (including cropland, 
grassland, prairie land, improved pastureland, rangeland, 
and land used for agro-forestry). 
‘‘(B) Agricultural land under the jurisdiction of an 
Indian tribe. 
‘‘(C) Forested land that is an incidental part of an 
agricultural operation. 
‘‘(D) Other private agricultural land (including cropped 
woodland, marshes, and agricultural land used for the 
production of livestock) on which resource concerns related 
to agricultural production could be addressed by enrolling 
the land in the program, as determined by the Secretary. 
‘‘(2) SPECIAL
RULE
FOR
NONINDUSTRIAL
PRIVATE
FOREST 
LAND.—Nonindustrial private forest land is eligible for enroll-
ment in the program, except that not more than 10 percent 
of the annual acres enrolled nationally in any fiscal year may 
be nonindustrial private forest land. 
‘‘(3) AGRICULTURAL OPERATION.—Eligible land shall include 
all acres of an agricultural operation of a producer, whether 
or not contiguous, that are under the effective control of the 
producer at the time the producer enters into a stewardship 
contract, and is operated by the producer with equipment, 
labor, management, and production or cultivation practices that 
are substantially separate from other agricultural operations, 
as determined by the Secretary. 
‘‘(c) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS.— 
Subject to paragraph (2), the following land is not be eligible 
for enrollment in the program: 
‘‘(A) Land enrolled in the conservation reserve program. 
‘‘(B) Land enrolled in the wetlands reserve program. 
‘‘(C) Land enrolled in the grassland reserve program. 
‘‘(2) CONVERSION TO CROPLAND.—Land used for crop produc-
tion after the date of enactment of the Food, Conservation, 
and Energy Act of 2008 that had not been planted, considered 
to be planted, or devoted to crop production for at least 4 
of the 6 years preceding that date shall not be the basis for 
any payment under the program, unless the land does not 
meet the requirement because— 
‘‘(A) the land had previously been enrolled in the con-
servation reserve program; 
‘‘(B) the land has been maintained using long-term 
crop rotation practices, as determined by the Secretary; 
or 
‘‘(C) the land is incidental land needed for efficient 
operation of the farm or ranch, as determined by the Sec-
retary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION
OF CONTRACT OFFERS.—To be eligible to 
participate in the conservation stewardship program, a producer 
shall submit to the Secretary for approval a contract offer that— 
‘‘(1) demonstrates to the satisfaction of the Secretary that 
the producer, at the time of the contract offer, is meeting
H. R. 6124—121 
the stewardship threshold for at least one resource concern; 
and 
‘‘(2) would, at a minimum, meet or exceed the stewardship 
threshold for at least 1 priority resource concern by the end 
of the stewardship contract by— 
‘‘(A) installing and adopting additional conservation 
activities; and 
‘‘(B) improving, maintaining, and managing conserva-
tion activities in place at the operation of the producer 
at the time the contract offer is accepted by the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING
OF
APPLICATIONS.—In evaluating contract 
offers made by producers to enter into contracts under the 
program, the Secretary shall rank applications based on— 
‘‘(A) the level of conservation treatment on all 
applicable priority resource concerns at the time of applica-
tion, based to the maximum extent practicable on conserva-
tion measurement tools; 
‘‘(B) the degree to which the proposed conservation 
treatment on applicable priority resource concerns effec-
tively increases conservation performance, based to the 
maximum extent possible on conservation measurement 
tools; 
‘‘(C) the number of applicable priority resource concerns 
proposed to be treated to meet or exceed the stewardship 
threshold by the end of the contract; 
‘‘(D) the extent to which other resource concerns, in 
addition to priority resource concerns, will be addressed 
to meet or exceed the stewardship threshold by the end 
of the contract period; and 
‘‘(E) the extent to which the actual and anticipated 
environmental benefits from the contract are provided at 
the least cost relative to other similarly beneficial contract 
offers. 
‘‘(2) PROHIBITION.—The Secretary may not assign a higher 
priority to any application because the applicant is willing 
to accept a lower payment than the applicant would otherwise 
be eligible to receive. 
‘‘(3) ADDITIONAL CRITERIA.—The Secretary may develop and 
use such additional criteria for evaluating applications to enroll 
in the program that the Secretary determines are necessary 
to ensure that national, State, and local conservation priorities 
are effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a determination that 
a producer is eligible for the program under subsection (a), and 
a determination that the contract offer ranks sufficiently high under 
the evaluation criteria under subsection (b), the Secretary shall 
enter into a conservation stewardship contract with the producer 
to enroll the land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship contract shall be 
for a term of 5 years. 
‘‘(2) PROVISIONS.—The conservation stewardship contract 
of a producer shall— 
‘‘(A) state the amount of the payment the Secretary 
agrees to make to the producer for each year of the con-
servation stewardship contract under section 1238G(e);
H. R. 6124—122 
‘‘(B) require the producer— 
‘‘(i) to implement during the term of the conserva-
tion stewardship contract the conservation stewardship 
plan approved by the Secretary; 
‘‘(ii) to maintain, and make available to the Sec-
retary at such times as the Secretary may request, 
appropriate records showing the effective and timely 
implementation of the conservation stewardship con-
tract; and 
‘‘(iii) not to engage in any activity during the term 
of the conservation stewardship contract on the eligible 
land covered by the contract that would interfere with 
the purposes of the conservation stewardship contract; 
‘‘(C) permit all economic uses of the land that— 
‘‘(i) maintain the agricultural nature of the land; 
and 
‘‘(ii) are consistent with the conservation purposes 
of the conservation stewardship contract; 
‘‘(D) include a provision to ensure that a producer 
shall not be considered in violation of the contract for 
failure to comply with the contract due to circumstances 
beyond the control of the producer, including a disaster 
or related condition, as determined by the Secretary; and 
‘‘(E) include such other provisions as the Secretary 
determines necessary to ensure the purposes of the pro-
gram are achieved. 
‘‘(e) CONTRACT RENEWAL.—At the end of an initial conservation 
stewardship contract of a producer, the Secretary may allow the 
producer to renew the contract for one additional five-year period 
if the producer— 
‘‘(1) demonstrates compliance with the terms of the existing 
contract; and 
‘‘(2) agrees to adopt new conservation activities, as deter-
mined by the Secretary. 
‘‘(f) MODIFICATION.—The Secretary may allow a producer to 
modify a stewardship contract if the Secretary determines that 
the modification is consistent with achieving the purposes of the 
program. 
‘‘(g) CONTRACT TERMINATION.— 
‘‘(1) VOLUNTARY TERMINATION.—A producer may terminate 
a conservation stewardship contract if the Secretary determines 
that termination would not defeat the purposes of the program. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Secretary may 
terminate a contract under this subchapter if the Secretary 
determines that the producer violated the contract. 
‘‘(3) REPAYMENT.—If a contract is terminated, the Secretary 
may, consistent with the purposes of the program— 
‘‘(A) allow the producer to retain payments already 
received under the contract; or 
‘‘(B) require repayment, in whole or in part, of pay-
ments already received and assess liquidated damages. 
‘‘(4) CHANGE
OF
INTEREST
IN
LAND
SUBJECT
TO
A
CON-
TRACT.— 
‘‘(A) IN GENERAL.—Except as provided in paragraph 
(B), a change in the interest of a producer in land covered 
by a contract under this chapter shall result in the termi-
nation of the contract with regard to that land.
H. R. 6124—123 
‘‘(B) TRANSFER OF DUTIES AND RIGHTS.—Subparagraph 
(A) shall not apply if— 
‘‘(i) within a reasonable period of time (as deter-
mined by the Secretary) after the date of the change 
in the interest in land covered by a contract under 
the program, the transferee of the land provides writ-
ten notice to the Secretary that all duties and rights 
under the contract have been transferred to, and 
assumed by, the transferee; and 
‘‘(ii) the transferee meets the eligibility require-
ments of the program. 
‘‘(h) COORDINATION WITH ORGANIC CERTIFICATION.—The Sec-
retary shall establish a transparent means by which producers 
may initiate organic certification under the Organic Foods Produc-
tion Act of 1990 (7 U.S.C. 6501 et. seq.) while participating in 
a contract under this subchapter. 
‘‘(i) ON-FARM
RESEARCH
AND
DEMONSTRATION
OR
PILOT 
TESTING.—The Secretary may approve a contract offer under this 
subchapter that includes— 
‘‘(1) on-farm conservation research and demonstration 
activities; and 
‘‘(2) pilot testing of new technologies or innovative conserva-
tion practices. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation goals of a con-
tract under the conservation stewardship program, the Secretary 
shall— 
‘‘(1) make the program available to eligible producers on 
a continuous enrollment basis with 1 or more ranking periods, 
one of which shall occur in the first quarter of each fiscal 
year; 
‘‘(2) identify not less than 3 nor more than 5 priority 
resource concerns in a particular watershed or other appro-
priate region or area within a State; and 
‘‘(3) develop reliable conservation measurement tools for 
purposes of carrying out the program. 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall allocate acres 
to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eligible acres 
under section 1238E(b)(1) to the total number of eligible acres 
in all States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the conservation 
needs associated with agricultural production in each State; 
‘‘(B) the degree to which implementation of the pro-
gram in the State is, or will be, effective in helping pro-
ducers address those needs; and 
‘‘(C) 
other 
considerations 
to 
achieve 
equitable 
geographic distribution of funds, as determined by the Sec-
retary. 
‘‘(c) SPECIALTY CROP AND ORGANIC PRODUCERS.—The Secretary 
shall ensure that outreach and technical assistance are available, 
and program specifications are appropriate to enable specialty crop 
and organic producers to participate in the program.
H. R. 6124—124 
‘‘(d) ACREAGE ENROLLMENT LIMITATION.—During the period 
beginning on October 1, 2008, and ending on September 30, 2017, 
the Secretary shall, to the maximum extent practicable— 
‘‘(1) enroll in the program an additional 12,769,000 acres 
for each fiscal year; and 
‘‘(2) manage the program to achieve a national average 
rate of $18 per acre, which shall include the costs of all financial 
assistance, technical assistance, and any other expenses associ-
ated with enrollment or participation in the program. 
‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall pro-
vide a payment under the program to compensate the producer 
for— 
‘‘(A) installing and adopting additional conservation 
activities; and 
‘‘(B) improving, maintaining, and managing conserva-
tion activities in place at the operation of the producer 
at the time the contract offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the conservation 
stewardship payment shall be determined by the Secretary 
and based, to the maximum extent practicable, on the following 
factors: 
‘‘(A) Costs incurred by the producer associated with 
planning, design, materials, installation, labor, manage-
ment, maintenance, or training. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected environmental benefits as determined 
by conservation measurement tools. 
‘‘(3) EXCLUSIONS.—A payment to a producer under this 
subsection shall not be provided for— 
‘‘(A) the design, construction, or maintenance of animal 
waste storage or treatment facilities or associated waste 
transport or transfer devices for animal feeding operations; 
or 
‘‘(B) conservation activities for which there is no cost 
incurred or income forgone to the producer. 
‘‘(4) TIMING OF PAYMENTS.— 
‘‘(A) IN GENERAL.—The Secretary shall make payments 
as soon as practicable after October 1 of each fiscal year 
for activities carried out in the previous fiscal year. 
‘‘(B) ADDITIONAL
ACTIVITIES.—The Secretary shall 
make payments to compensate producers for installation 
of additional practices at the time at which the practices 
are installed and adopted. 
‘‘(f) SUPPLEMENTAL
PAYMENTS
FOR
RESOURCE-CONSERVING 
CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall pro-
vide additional payments to producers that, in participating 
in the program, agree to adopt resource-conserving crop rota-
tions to achieve beneficial crop rotations as appropriate for 
the land of the producers. 
‘‘(2) BENEFICIAL
CROP
ROTATIONS.—The Secretary shall 
determine whether a resource-conserving crop rotation is a 
beneficial crop rotation eligible for additional payments under 
paragraph (1), based on whether the resource-conserving crop 
rotation is designed to provide natural resource conservation 
and production benefits.
H. R. 6124—125 
‘‘(3) ELIGIBILITY.—To be eligible to receive a payment 
described in paragraph (1), a producer shall agree to adopt 
and maintain beneficial resource-conserving crop rotations for 
the term of the contract. 
‘‘(4) RESOURCE-CONSERVING CROP ROTATION.—In this sub-
section, the term ‘resource-conserving crop rotation’ means a 
crop rotation that— 
‘‘(A) includes at least 1 resource conserving crop (as 
defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion of soil mois-
ture or otherwise reduces the need for irrigation. 
‘‘(g) PAYMENT LIMITATIONS.—A person or legal entity may not 
receive, directly or indirectly, payments under this subchapter that, 
in the aggregate, exceed $200,000 for all contracts entered into 
during any 5-year period, excluding funding arrangements with 
federally recognized Indian tribes or Alaska Native corporations, 
regardless of the number of contracts entered into under the pro-
gram by the person or entity. 
‘‘(h) REGULATIONS.—The Secretary shall promulgate regulations 
that— 
‘‘(1) prescribe such other rules as the Secretary determines 
to be necessary to ensure a fair and reasonable application 
of the limitations established under subsection (g); and 
‘‘(2) otherwise enable the Secretary to carry out the pro-
gram. 
‘‘(i) DATA.—The Secretary shall maintain detailed and seg-
mented data on contracts and payments under the program to 
allow for quantification of the amount of payments made for— 
‘‘(1) the installation and adoption of additional conservation 
activities and improvements to conservation activities in place 
on the operation of a producer at the time the conservation 
stewardship offer is accepted by the Secretary; 
‘‘(2) participation in research, demonstration, and pilot 
projects; and 
‘‘(3) the development and periodic assessment and evalua-
tion of conservation plans developed under this subchapter.’’. 
(b) TERMINATION
OF
CONSERVATION
SECURITY
PROGRAM 
AUTHORITY; EFFECT ON EXISTING CONTRACTS.—Section 1238A of 
the Food Security Act of 1985 (16 U.S.C. 3838a) is amended by 
adding at the end the following new subsection: 
‘‘(g) PROHIBITION ON CONSERVATION SECURITY PROGRAM CON-
TRACTS; EFFECT ON EXISTING CONTRACTS.— 
‘‘(1) PROHIBITION.—A conservation security contract may 
not be entered into or renewed under this subchapter after 
September 30, 2008. 
‘‘(2) EXCEPTION.—This subchapter, and the terms and 
conditions of the conservation security program, shall continue 
to apply to— 
‘‘(A) conservation security contracts entered into on 
or before September 30, 2008; and 
‘‘(B) any conservation security contract entered into 
after that date, but for which the application for the con-
tract was received during the 2008 sign-up period.
H. R. 6124—126 
‘‘(3) EFFECT ON PAYMENTS.—The Secretary shall make pay-
ments under this subchapter with respect to conservation secu-
rity contracts described in paragraph (2) during the remaining 
term of the contracts. 
‘‘(4) REGULATIONS.—A contract described in paragraph (2) 
may not be administered under the regulations issued to carry 
out the conservation stewardship program.’’. 
(c) 
REFERENCE
TO
REDESIGNATED
SUBCHAPTER.—Section 
1238A(b)(3)(C) of title XII of the Food Security Act of 1985 (16 
U.S.C. 3838a(b)(3)(C)) is amended by striking ‘‘subchapter C’’ and 
inserting ‘‘subchapter D’’. 
Subtitle E—Farmland Protection and 
Grassland Reserve 
SEC. 2401. FARMLAND PROTECTION PROGRAM. 
(a) DEFINITIONS.—Section 1238H of the Food Security Act of 
1985 (16 U.S.C. 3838h) is amended— 
(1) by striking paragraph (1) and inserting the following 
new paragraph: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means— 
‘‘(A) any agency of any State or local government or 
an Indian tribe (including a farmland protection board 
or land resource council established under State law); or 
‘‘(B) any organization that— 
‘‘(i) is organized for, and at all times since the 
formation of the organization has been operated prin-
cipally for, 1 or more of the conservation purposes 
specified in clause (i), (ii), (iii), or (iv) of section 
170(h)(4)(A) of the Internal Revenue Code of 1986; 
‘‘(ii) is an organization described in section 
501(c)(3) of that Code that is exempt from taxation 
under section 501(a) of that Code; and 
‘‘(iii) is— 
‘‘(I) described in paragraph (1) or (2) of section 
509(a) of that Code; or 
‘‘(II) described in section 509(a)(3), and is con-
trolled by an organization described in section 
509(a)(2), of that Code.’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘that—’’ and inserting ‘‘that is sub-
ject to a pending offer for purchase from an eligible 
entity and—’’; and 
(ii) by striking clauses (i) and (ii) and inserting 
the following new clauses: 
‘‘(i) has prime, unique, or other productive soil; 
‘‘(ii) contains historical or archaeological resources; 
or 
‘‘(iii) the protection of which will further a State 
or local policy consistent with the purposes of the pro-
gram.’’; and 
(B) in subparagraph (B)— 
(i) in clause (iv), by striking ‘‘and’’ at the end; 
and
H. R. 6124—127 
(ii) by striking clause (v) and inserting the fol-
lowing new clauses: 
‘‘(v) forest land that— 
‘‘(I) contributes to the economic viability of 
an agricultural operation; or 
‘‘(II) serves as a buffer to protect an agricul-
tural operation from development; and 
‘‘(vi) land that is incidental to land described in 
clauses (i) through (v), if such land is necessary for 
the efficient administration of a conservation easement, 
as determined by the Secretary.’’. 
(b) FARMLAND PROTECTION.—Section 1238I of the Food Security 
Act of 1985 (16 U.S.C. 3838i) is amended to read as follows: 
‘‘SEC. 1238I. FARMLAND PROTECTION PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish and carry 
out a farmland protection program under which the Secretary shall 
facilitate and provide funding for the purchase of conservation 
easements or other interests in eligible land. 
‘‘(b) PURPOSE.—The purpose of the program is to protect the 
agricultural use and related conservation values of eligible land 
by limiting nonagricultural uses of that land. 
‘‘(c) COST-SHARE ASSISTANCE.— 
‘‘(1) PROVISION OF ASSISTANCE.—The Secretary shall pro-
vide cost-share assistance to eligible entities for purchasing 
a conservation easement or other interest in eligible land. 
‘‘(2) FEDERAL SHARE.—The share of the cost provided by 
the Secretary for purchasing a conservation easement or other 
interest in eligible land shall not exceed 50 percent of the 
appraised fair market value of the conservation easement or 
other interest in eligible land. 
‘‘(3) NON-FEDERAL SHARE.— 
‘‘(A) SHARE PROVIDED BY ELIGIBLE ENTITY.—The eligible 
entity shall provide a share of the cost of purchasing a 
conservation easement or other interest in eligible land 
in an amount that is not less than 25 percent of the 
acquisition purchase price. 
‘‘(B) LANDOWNER CONTRIBUTION.—As part of the non- 
Federal share of the cost of purchasing a conservation 
easement or other interest in eligible land, an eligible 
entity may include a charitable donation or qualified con-
servation contribution (as defined by section 170(h) of the 
Internal Revenue Code of 1986) from the private landowner 
from which the conservation easement or other interest 
in land will be purchased. 
‘‘(d) DETERMINATION OF FAIR MARKET VALUE.—Effective on the 
date of enactment of the Food, Conservation, and Energy Act of 
2008, the fair market value of the conservation easement or other 
interest in eligible land shall be determined on the basis of an 
appraisal using an industry approved method, selected by the 
eligible entity and approved by the Secretary. 
‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary determines 
that 2 or more applications for cost-share assistance are comparable 
in achieving the purpose of the program, the Secretary shall not 
assign a higher priority to any 1 of those applications solely on 
the basis of lesser cost to the program. 
‘‘(f) CONDITION ON ASSISTANCE.—
H. R. 6124—128 
‘‘(1) CONSERVATION
PLAN.—Any highly erodible cropland 
for which a conservation easement or other interest is pur-
chased using cost-share assistance provided under the program 
shall be subject to a conservation plan that requires, at the 
option of the Secretary, the conversion of the cropland to less 
intensive uses. 
‘‘(2) CONTINGENT RIGHT OF ENFORCEMENT.—The Secretary 
shall require the inclusion of a contingent right of enforcement 
for the Secretary in the terms of a conservation easement 
or other interest in eligible land that is purchased using cost- 
share assistance provided under the program. 
‘‘(g) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall enter into agree-
ments with eligible entities to stipulate the terms and condi-
tions under which the eligible entity is permitted to use cost- 
share assistance provided under subsection (c). 
‘‘(2) LENGTH OF AGREEMENTS.—An agreement under this 
subsection shall be for a term that is— 
‘‘(A) in the case of an eligible entity certified under 
the process described in subsection (h), a minimum of five 
years; and 
‘‘(B) for all other eligible entities, at least three, but 
not more than five years. 
‘‘(3) SUBSTITUTION OF QUALIFIED PROJECTS.—An agreement 
shall allow, upon mutual agreement of the parties, substitution 
of qualified projects that are identified at the time of the 
proposed substitution. 
‘‘(4) MINIMUM REQUIREMENTS.—An eligible entity shall be 
authorized to use its own terms and conditions, as approved 
by the Secretary, for conservation easements and other pur-
chases of interests in land, so long as such terms and condi-
tions— 
‘‘(A) are consistent with the purposes of the program; 
‘‘(B) permit effective enforcement of the conservation 
purposes of such easements or other interests; and 
‘‘(C) include a limit on the impervious surfaces to be 
allowed that is consistent with the agricultural activities 
to be conducted. 
‘‘(5) EFFECT OF VIOLATION.—If a violation occurs of a term 
or condition of an agreement entered into under this sub-
section— 
‘‘(A) the agreement shall remain in force; and 
‘‘(B) the Secretary may require the eligible entity to 
refund all or part of any payments received by the entity 
under the program, with interest on the payments as deter-
mined appropriate by the Secretary. 
‘‘(h) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(1) CERTIFICATION PROCESS.—The Secretary shall establish 
a process under which the Secretary may— 
‘‘(A) directly certify eligible entities that meet estab-
lished criteria; 
‘‘(B) enter into long-term agreements with certified 
entities, as authorized by subsection (g)(2)(A); and 
‘‘(C) accept proposals for cost-share assistance to cer-
tified entities for the purchase of conservation easements 
or other interests in eligible land throughout the duration 
of such agreements.
H. R. 6124—129 
‘‘(2) CERTIFICATION CRITERIA.—In order to be certified, an 
eligible entity shall demonstrate to the Secretary that the entity 
will maintain, at a minimum, for the duration of the agree-
ment— 
‘‘(A) a plan for administering easements that is con-
sistent with the purpose of this subchapter; 
‘‘(B) the capacity and resources to monitor and enforce 
conservation easements or other interests in land; and 
‘‘(C) policies and procedures to ensure— 
‘‘(i) the long-term integrity of conservation ease-
ments or other interests in eligible land; 
‘‘(ii) timely completion of acquisitions of easements 
or other interests in eligible land; and 
‘‘(iii) timely and complete evaluation and reporting 
to the Secretary on the use of funds provided by the 
Secretary under the program. 
‘‘(3) REVIEW AND REVISION.— 
‘‘(A) REVIEW.—The Secretary shall conduct a review 
of eligible entities certified under paragraph (1) every three 
years to ensure that such entities are meeting the criteria 
established under paragraph (2). 
‘‘(B) REVOCATION.—If the Secretary finds that the cer-
tified entity no longer meets the criteria established under 
paragraph (2), the Secretary may— 
‘‘(i) allow the certified entity a specified period 
of time, at a minimum 180 days, in which to take 
such actions as may be necessary to meet the criteria; 
and 
‘‘(ii) revoke the certification of the entity, if after 
the specified period of time, the certified entity does 
not meet the criteria established in paragraph (2).’’. 
SEC. 2402. FARM VIABILITY PROGRAM. 
Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C. 
3838j(b)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 2403. GRASSLAND RESERVE PROGRAM. 
Subchapter D of chapter 2 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated 
by section 2301(a)(1), is amended to read as follows: 
‘‘Subchapter D—Grassland Reserve Program 
‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary shall estab-
lish a grassland reserve program (referred to in this subchapter 
as the ‘program’) for the purpose of assisting owners and operators 
in protecting grazing uses and related conservation values by 
restoring and conserving eligible land through rental contracts, 
easements, and restoration agreements. 
‘‘(b) ENROLLMENT OF ACREAGE.— 
‘‘(1) ACREAGE ENROLLED.—The Secretary shall enroll an 
additional 1,220,000 acres of eligible land in the program during 
fiscal years 2009 through 2012. 
‘‘(2) METHODS OF ENROLLMENT.—The Secretary shall enroll 
eligible land in the program through the use of; 
‘‘(A) a 10-year, 15-year, or 20-year rental contract; 
‘‘(B) a permanent easement; or
H. R. 6124—130 
‘‘(C) in a State that imposes a maximum duration 
for easements, an easement for the maximum duration 
allowed under the law of that State. 
‘‘(3) LIMITATION.—Of the total amount of funds expended 
under the program to acquire rental contracts and easements 
described in paragraph (2), the Secretary shall use, to the 
extent practicable— 
‘‘(A) 40 percent for rental contacts; and 
‘‘(B) 60 percent for easements. 
‘‘(4) ENROLLMENT OF CONSERVATION RESERVE LAND.— 
‘‘(A) PRIORITY.—Upon expiration of a contract under 
subchapter B of chapter 1 of this subtitle, the Secretary 
shall give priority for enrollment in the program to land 
previously enrolled in the conservation reserve program 
if— 
‘‘(i) the land is eligible land, as defined in sub-
section (c); and 
‘‘(ii) the Secretary determines that the land is of 
high ecological value and under significant threat of 
conversion to uses other than grazing. 
‘‘(B) MAXIMUM ENROLLMENT.—The number of acres of 
land enrolled under the priority described in subparagraph 
(A) in a calendar year shall not exceed 10 percent of the 
total number of acres enrolled in the program in that 
calendar year. 
‘‘(c) ELIGIBLE LAND DEFINED.—For purposes of the program, 
the term ‘eligible land’ means private or tribal land that— 
‘‘(1) is grassland, land that contains forbs, or shrubland 
(including improved rangeland and pastureland) for which 
grazing is the predominant use; 
‘‘(2) is located in an area that has been historically domi-
nated by grassland, forbs, or shrubland, and the land— 
‘‘(A) could provide habitat for animal or plant popu-
lations of significant ecological value if the land— 
‘‘(i) is retained in its current use; or 
‘‘(ii) is restored to a natural condition; 
‘‘(B) contains historical or archaeological resources; or 
‘‘(C) would address issues raised by State, regional, 
and national conservation priorities; or 
‘‘(3) is incidental to land described in paragraph (1) or 
(2), if the incidental land is determined by the Secretary to 
be necessary for the efficient administration of a rental contract 
or easement under the program. 
‘‘SEC. 1238O. DUTIES OF OWNERS AND OPERATORS. 
‘‘(a) RENTAL CONTRACTS.—To be eligible to enroll eligible land 
in the program under a rental contract, the owner or operator 
of the land shall agree— 
‘‘(1) to comply with the terms of the contract and, when 
applicable, a restoration agreement; 
‘‘(2) to suspend any existing cropland base and allotment 
history for the land under another program administered by 
the Secretary; and 
‘‘(3) to implement a grazing management plan, as approved 
by the Secretary, which may be modified upon mutual agree-
ment of the parties.
H. R. 6124—131 
‘‘(b) EASEMENTS.—To be eligible to enroll eligible land in the 
program through an easement, the owner of the land shall agree— 
‘‘(1) to grant an easement to the Secretary or to an eligible 
entity described in section 1238Q; 
‘‘(2) to create and record an appropriate deed restriction 
in accordance with applicable State law to reflect the easement; 
‘‘(3) to provide a written statement of consent to the ease-
ment signed by persons holding a security interest or any 
vested interest in the land; 
‘‘(4) to provide proof of unencumbered title to the under-
lying fee interest in the land that is the subject of the easement; 
‘‘(5) to comply with the terms of the easement and, when 
applicable, a restoration agreement; 
‘‘(6) to implement a grazing management plan, as approved 
by the Secretary, which may be modified upon mutual agree-
ment of the parties; and 
‘‘(7) to eliminate any existing cropland base and allotment 
history for the land under another program administered by 
the Secretary. 
‘‘(c) RESTORATION AGREEMENTS.— 
‘‘(1) WHEN APPLICABLE.—To be eligible for cost-share assist-
ance to restore eligible land subject to a rental contract or 
an easement under the program, the owner or operator of 
the land shall agree to comply with the terms of a restoration 
agreement. 
‘‘(2) TERMS AND CONDITIONS.—The Secretary shall prescribe 
the terms and conditions of a restoration agreement by which 
eligible land that is subject to a rental contract or easement 
under the program shall be restored. 
‘‘(3) DUTIES.—The restoration agreement shall describe the 
respective duties of the owner or operator and the Secretary, 
including the Federal share of restoration payments and tech-
nical assistance. 
‘‘(d) TERMS AND CONDITIONS APPLICABLE TO RENTAL CONTRACTS 
AND EASEMENTS.— 
‘‘(1) PERMISSIBLE
ACTIVITIES.—The terms and conditions 
of a rental contract or easement under the program shall 
permit— 
‘‘(A) common grazing practices, including maintenance 
and necessary cultural practices, on the land in a manner 
that is consistent with maintaining the viability of grass-
land, forb, and shrub species appropriate to that locality; 
‘‘(B) haying, mowing, or harvesting for seed production, 
subject to appropriate restrictions during the nesting sea-
son for birds in the local area that are in significant decline 
or are conserved in accordance with Federal or State law, 
as determined by the State Conservationist; 
‘‘(C) fire presuppression, rehabilitation, and construc-
tion of fire breaks; and 
‘‘(D) grazing related activities, such as fencing and 
livestock watering. 
‘‘(2) PROHIBITIONS.—The terms and conditions of a rental 
contract or easement under the program shall prohibit— 
‘‘(A) the production of crops (other than hay), fruit 
trees, vineyards, or any other agricultural commodity that 
is inconsistent with maintaining grazing land; and
H. R. 6124—132 
‘‘(B) except as permitted under a restoration plan, the 
conduct of any other activity that would be inconsistent 
with maintaining grazing land enrolled in the program. 
‘‘(3) ADDITIONAL TERMS AND CONDITIONS.—A rental contract 
or easement under the program shall include such additional 
provisions as the Secretary determines are appropriate to carry 
out or facilitate the purposes and administration of the pro-
gram. 
‘‘(e) VIOLATIONS.—On a violation of the terms or conditions 
of a rental contract, easement, or restoration agreement entered 
into under this section— 
‘‘(1) the contract or easement shall remain in force; and 
‘‘(2) the Secretary may require the owner or operator to 
refund all or part of any payments received under the program, 
with interest on the payments as determined appropriate by 
the Secretary. 
‘‘SEC. 1238P. DUTIES OF SECRETARY. 
‘‘(a) EVALUATION AND RANKING OF APPLICATIONS.— 
‘‘(1) CRITERIA.—The Secretary shall establish criteria to 
evaluate and rank applications for rental contracts and ease-
ments under the program . 
‘‘(2) CONSIDERATIONS.—In establishing the criteria, the Sec-
retary shall emphasize support for— 
‘‘(A) grazing operations; 
‘‘(B) plant and animal biodiversity; and 
‘‘(C) grassland, land that contains forbs, and shrubland 
under the greatest threat of conversion to uses other than 
grazing. 
‘‘(b) PAYMENTS.— 
‘‘(1) IN GENERAL.—In return for the execution of a rental 
contract or the granting of an easement by an owner or operator 
under the program, the Secretary shall— 
‘‘(A) make rental contract or easement payments to 
the owner or operator in accordance with paragraphs (2) 
and (3); and 
‘‘(B) make payments to the owner or operator under 
a restoration agreement for the Federal share of the cost 
of restoration in accordance with paragraph (4). 
‘‘(2) RENTAL CONTRACT PAYMENTS.— 
‘‘(A) PERCENTAGE
OF
GRAZING
VALUE
OF
LAND.—In 
return for the execution of a rental contract by an owner 
or operator under the program, the Secretary shall make 
annual payments during the term of the contract in an 
amount, subject to subparagraph (B), that is not more 
than 75 percent of the grazing value of the land covered 
by the contract. 
‘‘(B) PAYMENT LIMITATION.—Payments made under 1 
or more rental contracts to a person or legal entity, directly 
or indirectly, may not exceed, in the aggregate, $50,000 
per year. 
‘‘(3) EASEMENT PAYMENTS.— 
‘‘(A) IN
GENERAL.—Subject to subparagraph (B), in 
return for the granting of an easement by an owner under 
the program, the Secretary shall make easement payments 
in an amount not to exceed the fair market value of the
H. R. 6124—133 
land less the grazing value of the land encumbered by 
the easement. 
‘‘(B) METHOD FOR DETERMINATION OF COMPENSATION.— 
In making a determination under subparagraph (A), the 
Secretary shall pay as compensation for a easement 
acquired under the program the lowest of— 
‘‘(i) the fair market value of the land encumbered 
by the easement, as determined by the Secretary, 
using— 
‘‘(I) the Uniform Standards of Professional 
Appraisal Practices; or 
‘‘(II) an area-wide market analysis or survey; 
‘‘(ii) the amount corresponding to a geographical 
cap, as determined by the Secretary in regulations; 
or 
‘‘(iii) the offer made by the landowner. 
‘‘(C) SCHEDULE.—Easement payments may be provided 
in up to 10 annual payments of equal or unequal amount, 
as agreed to by the Secretary and the owner. 
‘‘(4) RESTORATION AGREEMENT PAYMENTS.— 
‘‘(A) FEDERAL SHARE OF RESTORATION.—The Secretary 
shall make payments to an owner or operator under a 
restoration agreement of not more than 50 percent of the 
costs of carrying out measures and practices necessary 
to restore functions and values of that land. 
‘‘(B) PAYMENT LIMITATION.—Payments made under 1 
or more restoration agreements to a person or legal entity, 
directly or indirectly, may not exceed, in the aggregate, 
$50,000 per year. 
‘‘(5) PAYMENTS TO OTHERS.—If an owner or operator who 
is entitled to a payment under the program dies, becomes 
incompetent, is otherwise unable to receive the payment, or 
is succeeded by another person who renders or completes the 
required performance, the Secretary shall make the payment, 
in accordance with regulations promulgated by the Secretary 
and without regard to any other provision of law, in such 
manner as the Secretary determines is fair and reasonable 
in light of all the circumstances. 
‘‘SEC. 1238Q. DELEGATION OF DUTY. 
‘‘(a) AUTHORITY TO DELEGATE.—The Secretary may delegate 
a duty under the program— 
‘‘(1) by transferring title of ownership to an easement to 
an eligible entity to hold and enforce; or 
‘‘(2) by entering into a cooperative agreement with an 
eligible entity for the eligible entity to own, write, and enforce 
an easement. 
‘‘(b) ELIGIBLE ENTITY DEFINED.—In this section, the term 
‘eligible entity’ means— 
‘‘(1) an agency of State or local government or an Indian 
tribe; or 
‘‘(2) an organization that— 
‘‘(A) is organized for, and at all times since the forma-
tion of the organization has been operated principally for, 
one or more of the conservation purposes specified in clause 
(i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the Internal 
Revenue Code of 1986;
H. R. 6124—134 
‘‘(B) is an organization described in section 501(c)(3) 
of that Code that is exempt from taxation under section 
501(a) of that Code; and 
‘‘(C) is described in— 
‘‘(i) paragraph (1) or (2) of section 509(a) of that 
Code; or 
‘‘(ii) in section 509(a)(3) of that Code, and is con-
trolled by an organization described in section 509(a)(2) 
of that Code. 
‘‘(c) TRANSFER OF TITLE OF OWNERSHIP.— 
‘‘(1) TRANSFER.—The Secretary may transfer title of owner-
ship to an easement to an eligible entity to hold and enforce, 
in lieu of the Secretary, subject to the right of the Secretary 
to conduct periodic inspections and enforce the easement, if— 
‘‘(A) the Secretary determines that the transfer will 
promote protection of grassland, land that contains forbs, 
or shrubland; 
‘‘(B) the owner authorizes the eligible entity to hold 
or enforce the easement; and 
‘‘(C) the eligible entity agrees to assume the costs 
incurred in administering and enforcing the easement, 
including the costs of restoration or rehabilitation of the 
land as specified by the owner and the eligible entity. 
‘‘(2) APPLICATION.—An eligible entity that seeks to hold 
and enforce an easement shall apply to the Secretary for 
approval. 
‘‘(3) APPROVAL BY SECRETARY.—The Secretary may approve 
an application described in paragraph (2) if the eligible entity— 
‘‘(A) has the relevant experience necessary, as appro-
priate for the application, to administer an easement on 
grassland, land that contains forbs, or shrubland; 
‘‘(B) has a charter that describes a commitment to 
conserving ranchland, agricultural land, or grassland for 
grazing and conservation purposes; and 
‘‘(C) has the resources necessary to effectuate the pur-
poses of the charter. 
‘‘(d) COOPERATIVE AGREEMENTS.— 
‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.—The Secretary 
shall establish the terms and conditions of a cooperative agree-
ment under which an eligible entity shall use funds provided 
by the Secretary to own, write, and enforce an easement, in 
lieu of the Secretary. 
‘‘(2) MINIMUM REQUIREMENTS.—At a minimum, the coopera-
tive agreement shall— 
‘‘(A) specify the qualification of the eligible entity to 
carry out the entity’s responsibilities under the program, 
including 
acquisition, 
monitoring, 
enforcement, 
and 
implementation of management policies and procedures 
that ensure the long-term integrity of the easement protec-
tions; 
‘‘(B) require the eligible entity to assume the costs 
incurred in administering and enforcing the easement, 
including the costs of restoration or rehabilitation of the 
land as specified by the owner and the eligible entity; 
‘‘(C) specify the right of the Secretary to conduct peri-
odic inspections to verify the eligible entity’s enforcement 
of the easement;
H. R. 6124—135 
‘‘(D) subject to subparagraph (E), identify a specific 
project or a range of projects to be funded under the agree-
ment; 
‘‘(E) allow, upon mutual agreement of the parties, 
substitution of qualified projects that are identified at the 
time of substitution; 
‘‘(F) specify the manner in which the eligible entity 
will evaluate and report the use of funds to the Secretary; 
‘‘(G) allow the eligible entity flexibility to develop and 
use terms and conditions for easements, if the Secretary 
finds the terms and conditions consistent with the purposes 
of the program and adequate to enable effective enforce-
ment of the easements; 
‘‘(H) if applicable, allow an eligible entity to include 
a charitable donation or qualified conservation contribution 
(as defined by section 170(h) of the Internal Revenue Code 
of 1986) from the landowner from which the easement 
will be purchased as part of the entity’s share of the cost 
to purchase an easement; and 
‘‘(I) provide for a schedule of payments to an eligible 
entity, as agreed to by the Secretary and the eligible entity. 
‘‘(3) COST SHARING.— 
‘‘(A) IN GENERAL.—As part of a cooperative agreement 
with an eligible entity under this subsection, the Secretary 
may provide a share of the purchase price of an easement 
under the program. 
‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTITY.—The eligible 
entity shall be required to provide a share of the purchase 
price at least equivalent to that provided by the Secretary. 
‘‘(C) PRIORITY.—The Secretary may accord a higher 
priority to proposals from eligible entities that leverage 
a greater share of the purchase price of the easement. 
‘‘(4) VIOLATION.—If an eligible entity violates the terms 
or conditions of a cooperative agreement entered into under 
this subsection— 
‘‘(A) the cooperative agreement shall remain in force; 
and 
‘‘(B) the Secretary may require the eligible entity to 
refund all or part of any payments received by the eligible 
entity under the program, with interest on the payments 
as determined appropriate by the Secretary. 
‘‘(e) PROTECTION OF FEDERAL INVESTMENT.—When delegating 
a duty under this section, the Secretary shall ensure that the 
terms of an easement include a contingent right of enforcement 
for the Department.’’. 
Subtitle F—Environmental Quality 
Incentives Program 
SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
(a) REVISED PURPOSES.—Section 1240 of the Food Security Act 
of 1985 (16 U.S.C. 3839aa) is amended— 
(1) in the matter preceding paragraph (1), by inserting 
‘‘, forest management,’’ after ‘‘agricultural production’’; and
H. R. 6124—136 
(2) by striking paragraphs (3) and (4) and inserting the 
following new paragraphs: 
‘‘(3) providing flexible assistance to producers to install 
and maintain conservation practices that sustain food and fiber 
production while— 
‘‘(A) enhancing soil, water, and related natural 
resources, including grazing land, forestland, wetland, and 
wildlife; and 
‘‘(B) conserving energy; 
‘‘(4) assisting producers to make beneficial, cost effective 
changes to production systems (including conservation practices 
related to organic production), grazing management, fuels 
management, forest management, nutrient management associ-
ated with livestock, pest or irrigation management, or other 
practices on agricultural and forested land; and’’. 
(b) TECHNICAL CORRECTION.—The Food Security Act of 1985 
is amended by inserting immediately before section 1240 (16 U.S.C. 
3839aa) the following: 
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY INCENTIVES 
PROGRAM’’. 
SEC. 2502. DEFINITIONS. 
Section 1240A of the Food Security Act of 1985 (16 U.S.C. 
3839aa–1) is amended to read as follows: 
‘‘SEC. 1240A. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) ELIGIBLE LAND.— 
‘‘(A) IN GENERAL.—The term ‘eligible land’ means land 
on which agricultural commodities, livestock, or forest- 
related products are produced. 
‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes the 
following: 
‘‘(i) Cropland. 
‘‘(ii) Grassland. 
‘‘(iii) Rangeland. 
‘‘(iv) Pasture land. 
‘‘(v) Nonindustrial private forest land. 
‘‘(vi) Other agricultural land (including cropped 
woodland, marshes, and agricultural land used for the 
production of livestock) on which resource concerns 
related to agricultural production could be addressed 
through a contract under the program, as determined 
by the Secretary. 
‘‘(2) NATIONAL
ORGANIC
PROGRAM.—The term ‘national 
organic program’ means the national organic program estab-
lished under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et. seq.). 
‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘organic system plan’ 
means an organic plan approved under the national organic 
program. 
‘‘(4) PAYMENT.—The term ‘payment’ means financial assist-
ance provided to a producer for performing practices under 
this chapter, including compensation for—
H. R. 6124—137 
‘‘(A) incurred costs associated with planning, design, 
materials, equipment, installation, labor, management, 
maintenance, or training; and 
‘‘(B) income forgone by the producer. 
‘‘(5) PRACTICE.—The term ‘practice’ means 1 or more 
improvements and conservation activities that are consistent 
with the purposes of the program under this chapter, as deter-
mined by the Secretary, including— 
‘‘(A) improvements to eligible land of the producer, 
including— 
‘‘(i) structural practices; 
‘‘(ii) land management practices; 
‘‘(iii) vegetative practices; 
‘‘(iv) forest management; and 
‘‘(v) other practices that the Secretary determines 
would further the purposes of the program; and 
‘‘(B) conservation activities involving the development 
of plans appropriate for the eligible land of the producer, 
including— 
‘‘(i) comprehensive nutrient management planning; 
and 
‘‘(ii) other plans that the Secretary determines 
would further the purposes of the program under this 
chapter. 
‘‘(6) PROGRAM.—The term ‘program’ means the environ-
mental quality incentives program established by this chapter.’’. 
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRON-
MENTAL QUALITY INCENTIVES PROGRAM. 
Section 1240B of the Food Security Act of 1985 (16 U.S.C. 
3839aa–2) is amended to read as follows: 
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION. 
‘‘(a) ESTABLISHMENT.—During each of the 2002 through 2012 
fiscal years, the Secretary shall provide payments to producers 
that enter into contracts with the Secretary under the program. 
‘‘(b) PRACTICES AND TERM.— 
‘‘(1) PRACTICES.—A contract under the program may apply 
to the performance of one or more practices. 
‘‘(2) TERM.—A contract under the program shall have a 
term that— 
‘‘(A) at a minimum, is equal to the period beginning 
on the date on which the contract is entered into and 
ending on the date that is one year after the date on 
which all practices under the contract have been imple-
mented; but 
‘‘(B) not to exceed 10 years. 
‘‘(c) BIDDING DOWN.—If the Secretary determines that the 
environmental values of two or more applications for payments 
are comparable, the Secretary shall not assign a higher priority 
to the application only because it would present the least cost 
to the program. 
‘‘(d) PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—Payments are provided 
to a producer to implement one or more practices under the 
program.
H. R. 6124—138 
‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A payment to a 
producer for performing a practice may not exceed, as deter-
mined by the Secretary— 
‘‘(A) 75 percent of the costs associated with planning, 
design, materials, equipment, installation, labor, manage-
ment, maintenance, or training; 
‘‘(B) 100 percent of income foregone by the producer; 
or 
‘‘(C) in the case of a practice consisting of elements 
covered under subparagraphs (A) and (B)— 
‘‘(i) 75 percent of the costs incurred for those ele-
ments covered under subparagraph (A); and 
‘‘(ii) 100 percent of income foregone for those ele-
ments covered under subparagraph (B). 
‘‘(3) SPECIAL
RULE
INVOLVING
PAYMENTS
FOR
FOREGONE 
INCOME.—In determining the amount and rate of payments 
under paragraph (2)(B), the Secretary may accord great signifi-
cance to a practice that, as determined by the Secretary, pro-
motes— 
‘‘(A) residue management; 
‘‘(B) nutrient management; 
‘‘(C) air quality management; 
‘‘(D) invasive species management; 
‘‘(E) pollinator habitat; 
‘‘(F) animal carcass management technology; or 
‘‘(G) pest management. 
‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRODUCERS.— 
‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), in 
the case of a producer that is a limited resource, socially 
disadvantaged farmer or rancher or a beginning farmer 
or rancher, the Secretary shall increase the amount that 
would otherwise be provided to a producer under this sub-
section— 
‘‘(i) to not more than 90 percent of the costs associ-
ated with planning, design, materials, equipment, 
installation, labor, management, maintenance, or 
training; and 
‘‘(ii) to not less than 25 percent above the otherwise 
applicable rate. 
‘‘(B) ADVANCE PAYMENTS.—Not more than 30 percent 
of the amount determined under subparagraph (A) may 
be provided in advance for the purpose of purchasing mate-
rials or contracting. 
‘‘(5) FINANCIAL ASSISTANCE FROM OTHER SOURCES.—Except 
as provided in paragraph (6), any payments received by a 
producer from a State or private organization or person for 
the implementation of one or more practices on eligible land 
of the producer shall be in addition to the payments provided 
to the producer under this subsection. 
‘‘(6) OTHER PAYMENTS.—A producer shall not be eligible 
for payments for practices on eligible land under the program 
if the producer receives payments or other benefits for the 
same practice on the same land under another program under 
this subtitle. 
‘‘(e) MODIFICATION OR TERMINATION OF CONTRACTS.—
H. R. 6124—139 
‘‘(1) VOLUNTARY MODIFICATION OR TERMINATION.—The Sec-
retary may modify or terminate a contract entered into with 
a producer under the program if— 
‘‘(A) the producer agrees to the modification or termi-
nation; and 
‘‘(B) the Secretary determines that the modification 
or termination is in the public interest. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Secretary may 
terminate a contract under the program if the Secretary deter-
mines that the producer violated the contract. 
‘‘(f) ALLOCATION OF FUNDING.—For each of fiscal years 2002 
through 2012, 60 percent of the funds made available for payments 
under the program shall be targeted at practices relating to live-
stock production. 
‘‘(g) FUNDING FOR FEDERALLY RECOGNIZED NATIVE AMERICAN 
INDIAN TRIBES AND ALASKA NATIVE CORPORATIONS.—The Secretary 
may enter into alternative funding arrangements with federally 
recognized Native American Indian Tribes and Alaska Native Cor-
porations (including their affiliated membership organizations) if 
the Secretary determines that the goals and objectives of the pro-
gram will be met by such arrangements, and that statutory limita-
tions regarding contracts with individual producers will not be 
exceeded by any Tribal or Native Corporation member. 
‘‘(h) WATER CONSERVATION OR IRRIGATION EFFICIENCY PRAC-
TICE.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary may pro-
vide payments under this subsection to a producer for a water 
conservation or irrigation practice. 
‘‘(2) PRIORITY.—In providing payments to a producer for 
a water conservation or irrigation practice, the Secretary shall 
give priority to applications in which— 
‘‘(A) consistent with the law of the State in which 
the eligible land of the producer is located, there is a 
reduction in water use in the operation of the producer; 
or 
‘‘(B) the producer agrees not to use any associated 
water savings to bring new land, other than incidental 
land needed for efficient operations, under irrigated produc-
tion, unless the producer is participating in a watershed- 
wide project that will effectively conserve water, as deter-
mined by the Secretary. 
‘‘(i) PAYMENTS
FOR CONSERVATION PRACTICES RELATED
TO 
ORGANIC PRODUCTION.— 
‘‘(1) PAYMENTS AUTHORIZED.—The Secretary shall provide 
payments under this subsection for conservation practices, on 
some or all of the operations of a producer, related— 
‘‘(A) to organic production; and 
‘‘(B) to the transition to organic production. 
‘‘(2) ELIGIBILITY
REQUIREMENTS.—As a condition for 
receiving payments under this subsection, a producer shall 
agree— 
‘‘(A) to develop and carry out an organic system plan; 
or 
‘‘(B) to develop and implement conservation practices 
for certified organic production that are consistent with 
an organic system plan and the purposes of this chapter.
H. R. 6124—140 
‘‘(3) PAYMENT
LIMITATIONS.—Payments under this sub-
section to a person or legal entity, directly or indirectly, may 
not exceed, in the aggregate, $20,000 per year or $80,000 during 
any 6-year period. In applying these limitations, the Secretary 
shall not take into account payments received for technical 
assistance. 
‘‘(4) EXCLUSION
OF
CERTAIN
ORGANIC
CERTIFICATION 
COSTS.—Payments may not be made under this subsection to 
cover the costs associated with organic certification that are 
eligible for cost-share payments under section 10606 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
6523). 
‘‘(5) TERMINATION
OF
CONTRACTS.—The Secretary may 
cancel or otherwise nullify a contract to provide payments 
under this subsection if the Secretary determines that the 
producer— 
‘‘(A) is not pursuing organic certification; or 
‘‘(B) is not in compliance with the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et seq).’’. 
SEC. 2504. EVALUATION OF APPLICATIONS. 
Section 1240C of the Food Security Act of 1985 (16 U.S.C. 
3839aa–3) is amended to read as follows: 
‘‘SEC. 1240C. EVALUATION OF APPLICATIONS. 
‘‘(a) EVALUATION CRITERIA.—The Secretary shall develop cri-
teria for evaluating applications that will ensure that national, 
State, and local conservation priorities are effectively addressed. 
‘‘(b) PRIORITIZATION OF APPLICATIONS.—In evaluating applica-
tions under this chapter, the Secretary shall prioritize applica-
tions— 
‘‘(1) based on their overall level of cost-effectiveness to 
ensure that the conservation practices and approaches proposed 
are the most efficient means of achieving the anticipated 
environmental benefits of the project; 
‘‘(2) based on how effectively and comprehensively the 
project addresses the designated resource concern or resource 
concerns; 
‘‘(3) that best fulfill the purpose of the environmental 
quality incentives program specified in section 1240(1); and 
‘‘(4) that improve conservation practices or systems in place 
on the operation at the time the contract offer is accepted 
or that will complete a conservation system. 
‘‘(c) GROUPING OF APPLICATIONS.—To the greatest extent prac-
ticable, the Secretary shall group applications of similar crop or 
livestock operations for evaluation purposes or otherwise evaluate 
applications relative to other applications for similar farming oper-
ations.’’. 
SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY 
INCENTIVES PROGRAM. 
Section 1240D of the Food Security Act of 1985 (16 U.S.C. 
3839aa–4) is amended— 
(1) in the matter preceding paragraph (1), by striking ‘‘tech-
nical assistance, cost-share payments, or incentive’’; 
(2) in paragraph (2), by striking ‘‘farm or ranch’’ and 
inserting ‘‘farm, ranch, or forest land’’; and
H. R. 6124—141 
(3) in paragraph (4), by striking ‘‘cost-share payments and 
incentive’’. 
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN. 
(a) PLAN OF OPERATIONS.—Section 1240E(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839aa–5(a)) is amended— 
(1) in the subsection heading, by striking ‘‘IN GENERAL’’ 
and inserting ‘‘PLAN OF OPERATIONS’’; 
(2) in matter preceding paragraph (1), by striking ‘‘cost- 
share payments or incentive’’; 
(3) in paragraph (2), by striking ‘‘and’’ after the semicolon 
at the end; 
(4) in paragraph (3), by striking the period at the end 
and inserting ‘‘; and’’; and 
(5) by adding at the end the following new paragraph: 
‘‘(4) in the case of forest land, is consistent with the provi-
sions of a forest management plan that is approved by the 
Secretary, which may include— 
‘‘(A) a forest stewardship plan described in section 
5 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103a); 
‘‘(B) another practice plan approved by the State for-
ester; or 
‘‘(C) another plan determined appropriate by the Sec-
retary.’’. 
(b) AVOIDANCE
OF DUPLICATION.—Subsection (b) of section 
1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa–5) 
is amended to read as follows: 
‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary shall— 
‘‘(1) consider a plan developed in order to acquire a permit 
under a water or air quality regulatory program as the equiva-
lent of a plan of operations under subsection (a), if the plan 
contains elements equivalent to those elements required by 
a plan of operations; and 
‘‘(2) to the maximum extent practicable, eliminate duplica-
tion of planning activities under the program under this chapter 
and comparable conservation programs.’’. 
SEC. 2507. DUTIES OF THE SECRETARY. 
Section 1240F(1) of the Food Security Act of 1985 (16 U.S.C. 
3839aa–6(1)) is amended by striking ‘‘cost-share payments or incen-
tive’’. 
SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES 
PROGRAM PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
3839aa–7) is amended— 
(1) by striking ‘‘An individual or entity’’ and inserting ‘‘(a) 
LIMITATION.—Subject to subsection (b), a person or legal 
entity’’; 
(2) by striking ‘‘$450,000’’ and inserting ‘‘$300,000’’; 
(3) by striking ‘‘the individual’’ both places it appears and 
inserting ‘‘the person’’; and 
(4) by adding at the end the following new subsection: 
‘‘(b) WAIVER AUTHORITY.—In the case of contracts under this 
chapter for projects of special environmental significance (including 
projects involving methane digesters), as determined by the Sec-
retary, the Secretary may—
H. R. 6124—142 
‘‘(1) waive the limitation otherwise applicable under sub-
section (a); and 
‘‘(2) raise the limitation to not more than $450,000 during 
any six-year period.’’. 
SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS. 
Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
3839aa–8) is amended to read as follows: 
‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS. 
‘‘(a) COMPETITIVE
GRANTS
FOR
INNOVATIVE
CONSERVATION 
APPROACHES.— 
‘‘(1) GRANTS.—Out of the funds made available to carry 
out this chapter, the Secretary may pay the cost of competitive 
grants that are intended to stimulate innovative approaches 
to leveraging the Federal investment in environmental enhance-
ment and protection, in conjunction with agricultural produc-
tion or forest resource management, through the program. 
‘‘(2) USE.—The Secretary may provide grants under this 
subsection to governmental and non-governmental organiza-
tions and persons, on a competitive basis, to carry out projects 
that— 
‘‘(A) involve producers who are eligible for payments 
or technical assistance under the program; 
‘‘(B) leverage Federal funds made available to carry 
out the program under this chapter with matching funds 
provided by State and local governments and private 
organizations to promote environmental enhancement and 
protection in conjunction with agricultural production; 
‘‘(C) ensure efficient and effective transfer of innovative 
technologies and approaches demonstrated through projects 
that receive funding under this section, such as market 
systems for pollution reduction and practices for the storage 
of carbon in soil; and 
‘‘(D) provide environmental and resource conservation 
benefits through increased participation by producers of 
specialty crops. 
‘‘(b) AIR
QUALITY
CONCERNS
FROM
AGRICULTURAL
OPER-
ATIONS.— 
‘‘(1) IMPLEMENTATION
ASSISTANCE.—The Secretary shall 
provide payments under this subsection to producers to imple-
ment practices to address air quality concerns from agricultural 
operations and to meet Federal, State, and local regulatory 
requirements. The funds shall be made available on the basis 
of air quality concerns in a State and shall be used to provide 
payments to producers that are cost effective and reflect innova-
tive technologies. 
‘‘(2) FUNDING.—Of the funds made available to carry out 
this chapter, the Secretary shall carry out this subsection using 
$37,500,000 for each of fiscal years 2009 through 2012.’’. 
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM. 
Section 1240I of the Food Security Act of 1985 (16 U.S.C. 
3839aa–9) is amended to read as follows: 
‘‘SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: