H. R. 2419—216 
(2) $193,000,000 for fiscal year 2009. 
(3) $199,000,000 for fiscal year 2010. 
(4) $203,000,000 for fiscal year 2011. 
(5) $206,000,000 for fiscal year 2012 and each fiscal year 
thereafter. 
(b) FORM OF PURCHASES.—Fruits, vegetables, and nuts may 
be purchased under this section in the form of frozen, canned, 
dried, or fresh fruits, vegetables, and nuts. 
(c) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBU-
TION TO SCHOOLS AND SERVICE INSTITUTIONS.—Section 10603 of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
612c–4) is amended by striking subsection (b) and inserting the 
following: 
‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DIS-
TRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS.—The Secretary 
of Agriculture shall purchase fresh fruits and vegetables for dis-
tribution to schools and service institutions in accordance with 
section 6(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1755(a)) using, of the amount specified in subsection 
(a), not less than $50,000,000 for each of fiscal years 2008 through 
2012.’’. 
SEC. 4405. HUNGER-FREE COMMUNITIES. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 
public food program service provider or nonprofit organization, 
including an emergency feeding organization, that has collabo-
rated, or will collaborate, with 1 or more local partner organiza-
tions to achieve at least 1 hunger-free communities goal. 
(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emer-
gency feeding organization’’ has the meaning given the term 
in section 201A of the Emergency Food Assistance Act of 1983 
(7 U.S.C. 7501). 
(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hunger- 
free communities goal’’ means any of the 14 goals described 
in the H. Con. Res. 302 (102nd Congress). 
(b) HUNGER-FREE COMMUNITIES COLLABORATIVE GRANTS.— 
(1) PROGRAM.— 
(A) IN GENERAL.—The Secretary shall use not more 
than 50 percent of any funds made available under sub-
section (e) to make grants to eligible entities to pay the 
Federal share of the costs of an activity described in para-
graph (2). 
(B) FEDERAL SHARE.—The Federal share of the cost 
of carrying out an activity under this subsection shall not 
exceed 80 percent. 
(C) NON-FEDERAL SHARE.— 
(i) CALCULATION.—The non-Federal share of the 
cost of an activity under this subsection may be pro-
vided in cash or fairly evaluated in-kind contributions, 
including facilities, equipment, or services. 
(ii) SOURCES.—Any entity may provide the non- 
Federal share of the cost of an activity under this 
subsection through a State government, a local govern-
ment, or a private source.
H. R. 2419—217 
(2) USE
OF
FUNDS.—An eligible entity in a community 
shall use a grant received under this subsection for any fiscal 
year for hunger relief activities, including— 
(A) meeting the immediate needs of people who experi-
ence hunger in the community served by the eligible entity 
by— 
(i) distributing food; 
(ii) providing community outreach to assist in 
participation in federally assisted nutrition programs, 
including— 
(I) the school breakfast program established 
by section 4 of the Child Nutrition Act of 1966 
(42 U.S.C. 1773); 
(II) the school lunch program established 
under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.); 
(III) the summer food service program for chil-
dren established under section 13 of that Act; and 
(IV) other Federal programs that provide food 
for children in child care facilities and homeless 
and older individuals; or 
(iii) improving access to food as part of a com-
prehensive service; and 
(B) developing new resources and strategies to help 
reduce hunger in the community and prevent hunger in 
the future by— 
(i) developing creative food resources, such as 
community gardens, buying clubs, food cooperatives, 
community-owned and operated grocery stores, and 
farmers’ markets; 
(ii) coordinating food services with park and recre-
ation programs and other community-based outlets to 
reduce barriers to access; or 
(iii) creating nutrition education programs for at- 
risk populations to enhance food-purchasing and food- 
preparation skills and to heighten awareness of the 
connection between diet and health. 
(c) HUNGER-FREE COMMUNITIES INFRASTRUCTURE GRANTS.— 
(1) PROGRAM AUTHORIZED.— 
(A) IN GENERAL.—The Secretary shall use not more 
than 50 percent of any funds made available for a fiscal 
year under subsection (e) to make grants to eligible entities 
to pay the Federal share of the costs of an activity described 
in paragraph (2). 
(B) FEDERAL SHARE.—The Federal share of the cost 
of carrying out an activity under this subsection shall not 
exceed 80 percent. 
(2) APPLICATION.— 
(A) IN GENERAL.—To receive a grant under this sub-
section, an eligible entity shall submit an application at 
such time, in such form, and containing such information 
as the Secretary may prescribe. 
(B) CONTENTS.—Each application submitted under 
subparagraph (A) shall— 
(i) identify any activity described in paragraph 
(3) that the grant will be used to fund; and
H. R. 2419—218 
(ii) describe the means by which an activity identi-
fied under clause (i) will reduce hunger in the commu-
nity of the eligible entity. 
(C) PRIORITY.—In making grants under this subsection, 
the Secretary shall give priority to eligible entities that 
demonstrate 2 or more of the following: 
(i) The eligible entity serves a community in which 
the rates of food insecurity, hunger, poverty, or 
unemployment are demonstrably higher than national 
average rates. 
(ii) The eligible entity serves a community that 
has successfully carried out long-term efforts to reduce 
hunger in the community. 
(iii) The eligible entity serves a community that 
provides public support for the efforts of the eligible 
entity. 
(iv) The eligible entity is committed to achieving 
more than 1 hunger-free communities goal. 
(3) USE OF FUNDS.—An eligible entity shall use a grant 
received under this subsection to construct, expand, or repair 
a facility or equipment to support hunger relief efforts in the 
community. 
(d) REPORT.—If funds are made available under subsection 
(e) to carry out this section, not later than September 30, 2012, 
the Secretary shall submit to Congress a report that describes— 
(1) each grant made under this section, including— 
(A) a description of any activity funded; and 
(B) the degree of success of each activity funded in 
achieving hunger free-communities goals; and 
(2) the degree of success of all activities funded under 
this section in achieving domestic hunger goals. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2008 through 2012. 
SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PRO-
GRAMS. 
(a) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—Section 18(a)(1) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) 
is amended in the first sentence by striking ‘‘for each of the 
fiscal years 2003 through 2007’’ and inserting ‘‘for each of 
fiscal years 2008 through 2012’’. 
(2) GRANTS
FOR
SIMPLE
APPLICATION
AND
ELIGIBILITY 
DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS.— 
Section 11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(t)(1)) is amended by striking ‘‘For each of fiscal years 
2003 through 2007’’ and inserting ‘‘Subject to the availability 
of appropriations under section 18(a), for each fiscal year’’. 
(3) FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.— 
Section 16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)) is amended— 
(A) in subparagraph (A), by striking ‘‘the amount of— 
’’ and all that follows through the end of the subparagraph 
and inserting ‘‘, $90,000,000 for each fiscal year.’’; and
H. R. 2419—219 
(B) in subparagraph (E)(i), by striking ‘‘for each of 
fiscal years 2002 through 2007’’ and inserting ‘‘for each 
fiscal year’’. 
(4) REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.— 
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(k)(3)) is amended— 
(A) in the first sentence of subparagraph (A), by 
striking ‘‘effective for each of fiscal years 1999 through 
2007,’’; and 
(B) in subparagraph (B)(ii), by striking ‘‘through fiscal 
year 2007’’. 
(5) CASH PAYMENT PILOT PROJECTS.—Section 17(b)(1)(B)(vi) 
of 
the 
Food 
and 
Nutrition 
Act 
of 
2008 
(7 
U.S.C. 
2026(b)(1)(B)(vi)) is amended— 
(A) by striking ‘‘Any pilot’’ and inserting ‘‘Subject to 
the availability of appropriations under section 18(a), any 
pilot’’; and 
(B) by striking ‘‘through October 1, 2007,’’. 
(6) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND 
AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by 
striking ‘‘for each of fiscal years 2004 through 2007’’ and 
inserting ‘‘subject to the availability of appropriations under 
section 18(a), for each fiscal year thereafter’’. 
(7) ASSISTANCE FOR COMMUNITY FOOD PROJECTS.—Section 
25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) 
is amended— 
(A) in subsection (b)(2)(B), by striking ‘‘for each of 
fiscal years 1997 through 2007’’ and inserting ‘‘for fiscal 
year 2008 and each fiscal year thereafter’’; and 
(B) in subsection (i)(4) (as redesignated by section 
4402), by striking ‘‘of fiscal years 2003 through 2007’’ and 
inserting ‘‘fiscal year thereafter’’. 
(b) COMMODITY DISTRIBUTION.— 
(1) EMERGENCY FOOD ASSISTANCE.—Section 204(a)(1) of the 
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
is amended in the first sentence by striking ‘‘for each of the 
fiscal years 2003 through 2007’’ and inserting ‘‘for fiscal year 
2008 and each fiscal year thereafter’’. 
(2) COMMODITY
DISTRIBUTION
PROGRAM.—Section 4(a) of 
the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
612c note; Public Law 93–86) is amended in the first sentence 
by striking ‘‘years 1991 through 2007’’ and inserting ‘‘years 
2008 through 2012’’. 
(3) COMMODITY SUPPLEMENTAL FOOD PROGRAM.—Section 5 
of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93–86) is amended— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘each of fiscal 
years 2003 through 2007’’ and inserting ‘‘each of fiscal 
years 2008 through 2012’’; and 
(ii) in paragraph (2)(B), by striking the subpara-
graph designation and heading and all that follows 
through ‘‘2007’’ and inserting the following: 
‘‘(B) SUBSEQUENT
FISCAL
YEARS.—For each of fiscal 
years 2004 through 2012’’; and
H. R. 2419—220 
(B) in subsection (d)(2), by striking ‘‘each of the fiscal 
years 1991 through 2007’’ and inserting ‘‘each of fiscal 
years 2008 through 2012’’. 
(4) DISTRIBUTION
OF
SURPLUS
COMMODITIES
TO
SPECIAL 
NUTRITION PROJECTS.—Section 1114(a)(2)(A) of the Agriculture 
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in 
the first sentence by striking ‘‘Effective through September 
30, 2007’’ and inserting ‘‘For each of fiscal years 2008 through 
2012’’. 
(c) FARM SECURITY AND RURAL INVESTMENT.— 
(1) SENIORS FARMERS’ MARKET NUTRITION PROGRAM.—Sec-
tion 4402 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 3007) is amended by striking by striking 
subsection (a) and inserting the following: 
‘‘(a) FUNDING.—Of the funds of the Commodity Credit Corpora-
tion, the Secretary of Agriculture shall use to carry out and expand 
the seniors farmers’ market nutrition program $20,600,000 for each 
of fiscal years 2008 through 2012.’’. 
(2) NUTRITION INFORMATION AND AWARENESS PILOT PRO-
GRAM.—Section 4403(f) of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107–171) 
is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES. 
Except as otherwise provided in this title, this title and the 
amendments made by this title take effect on October 1, 2008. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
SEC. 5001. DIRECT LOANS. 
Section 302 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922) is amended— 
(1) by striking the section designation and heading and 
all that follows through ‘‘(a) The Secretary is authorized to’’ 
and inserting the following: 
‘‘SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS. 
‘‘(a) IN GENERAL.—The Secretary may’’; and 
(2) in subsection (a)(2), by inserting ‘‘, taking into consider-
ation all farming experience of the applicant, without regard 
to any lapse between farming experiences’’ after ‘‘farming oper-
ations’’. 
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 
Section 304 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1924) is amended to read as follows: 
‘‘SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may make or guarantee quali-
fied conservation loans to eligible borrowers under this section. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) QUALIFIED CONSERVATION LOAN.—The term ‘qualified 
conservation loan’ means a loan, the proceeds of which are 
used to cover the costs to the borrower of carrying out a 
qualified conservation project.
H. R. 2419—221 
‘‘(2) QUALIFIED CONSERVATION PROJECT.—The term ‘quali-
fied conservation project’ means conservation measures that 
address provisions of a conservation plan of the eligible bor-
rower. 
‘‘(3) CONSERVATION
PLAN.—The term ‘conservation plan’ 
means a plan, approved by the Secretary, that, for a farming 
or ranching operation, identifies the conservation activities that 
will be addressed with loan funds provided under this section, 
including— 
‘‘(A) the installation of conservation structures to 
address soil, water, and related resources; 
‘‘(B) the establishment of forest cover for sustained 
yield timber management, erosion control, or shelter belt 
purposes; 
‘‘(C) the installation of water conservation measures; 
‘‘(D) the installation of waste management systems; 
‘‘(E) the establishment or improvement of permanent 
pasture; 
‘‘(F) compliance with section 1212 of the Food Security 
Act of 1985; and 
‘‘(G) other purposes consistent with the plan, including 
the adoption of any other emerging or existing conservation 
practices, techniques, or technologies approved by the Sec-
retary. 
‘‘(c) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary may make or guarantee 
loans to farmers or ranchers in the United States, farm coopera-
tives, private domestic corporations, partnerships, joint oper-
ations, trusts, or limited liability companies that are controlled 
by farmers or ranchers and engaged primarily and directly 
in agricultural production in the United States. 
‘‘(2) REQUIREMENTS.—To be eligible for a loan under this 
section, applicants shall meet the requirements in paragraphs 
(1) and (2) of section 302(a). 
‘‘(d) PRIORITY.—In making or guaranteeing loans under this 
section, the Secretary shall give priority to— 
‘‘(1) qualified beginning farmers or ranchers and socially 
disadvantaged farmers or ranchers; 
‘‘(2) owners or tenants who use the loans to convert to 
sustainable or organic agricultural production systems; and 
‘‘(3) producers who use the loans to build conservation 
structures or establish conservation practices to comply with 
section 1212 of the Food Security Act of 1985. 
‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARANTEES.—The por-
tion of a loan that the Secretary may guarantee under this section 
shall be 75 percent of the principal amount of the loan. 
‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary shall ensure, 
to the maximum extent practicable, that loans made or guaranteed 
under this section are distributed across diverse geographic regions. 
‘‘(g) CREDIT ELIGIBILITY.—The provisions of paragraphs (1) and 
(3) of section 333 shall not apply to loans made or guaranteed 
under this section. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—For each of fiscal 
years 2008 through 2012, there are authorized to be appropriated 
to the Secretary such funds as are necessary to carry out this 
section.’’.
H. R. 2419—222 
SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS. 
Section 305(a)(2) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1925(a)(2)) is amended by striking ‘‘$200,000’’ 
and inserting ‘‘$300,000’’. 
SEC. 5004. DOWN PAYMENT LOAN PROGRAM. 
Section 310E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1935) is amended— 
(1) in subsection (a)(1), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged farmers or 
ranchers’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1) and inserting the fol-
lowing; 
‘‘(1) PRINCIPAL.—Each loan made under this section shall 
be in an amount that does not exceed 45 percent of the least 
of— 
‘‘(A) the purchase price of the farm or ranch to be 
acquired; 
‘‘(B) the appraised value of the farm or ranch to be 
acquired; or 
‘‘(C) $500,000. 
‘‘(2) INTEREST RATE.—The interest rate on any loan made 
by the Secretary under this section shall be a rate equal to 
the greater of— 
‘‘(A) the difference obtained by subtracting 4 percent 
from the interest rate for farm ownership loans under 
this subtitle; or 
‘‘(B) 1.5 percent.’’; and 
(B) in paragraph (3), by striking ‘‘15’’ and inserting 
‘‘20’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘10’’ and inserting 
‘‘5’’; 
(B) by striking paragraph (2) and redesignating para-
graph (3) as paragraph (2); and 
(C) in paragraph (2)(B) (as so redesignated), by striking 
‘‘15-year’’ and inserting ‘‘20-year’’; 
(4) in subsection (d)— 
(A) in paragraph (3)— 
(i) by inserting ‘‘and socially disadvantaged 
farmers or ranchers’’ after ‘‘ranchers’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in paragraph (4), by striking ‘‘and ranchers.’’ and 
inserting ‘‘ or ranchers or socially disadvantaged farmers 
or ranchers; and’’; and 
(C) by adding at the end the following: 
‘‘(5) establish annual performance goals to promote the 
use of the down payment loan program and other joint financing 
arrangements as the preferred choice for direct real estate 
loans made by any lender to a qualified beginning farmer 
or rancher or socially disadvantaged farmer or rancher.’’; and 
(5) by adding at the end the following: 
‘‘(e) SOCIALLY DISADVANTAGED FARMER OR RANCHER DEFINED.— 
In this section, the term ‘socially disadvantaged farmer or rancher’ 
has the meaning given that term in section 355(e)(2).’’.
H. R. 2419—223 
SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS-
ADVANTAGED FARMER OR RANCHER CONTRACT LAND 
SALES PROGRAM. 
Section 310F of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1936) is amended to read as follows: 
‘‘SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY DIS-
ADVANTAGED FARMER OR RANCHER CONTRACT LAND 
SALES PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in accordance with this 
section, guarantee a loan made by a private seller of a farm or 
ranch to a qualified beginning farmer or rancher or socially dis-
advantaged farmer or rancher (as defined in section 355(e)(2)) on 
a contract land sales basis. 
‘‘(b) ELIGIBILITY.—In order to be eligible for a loan guarantee 
under subsection (a)— 
‘‘(1) the qualified beginning farmer or rancher or socially 
disadvantaged farmer or rancher shall— 
‘‘(A) on the date the contract land sale that is subject 
of the loan is complete, own and operate the farm or 
ranch that is the subject of the contract land sale; 
‘‘(B) have a credit history that— 
‘‘(i) includes a record of satisfactory debt repay-
ment, as determined by the Secretary; and 
‘‘(ii) is acceptable to the Secretary; and 
‘‘(C) demonstrate to the Secretary that the farmer or 
rancher, as the case may be, is unable to obtain sufficient 
credit without a guarantee to finance any actual need 
of the farmer or rancher, as the case may be, at a reason-
able rate or term; and 
‘‘(2) the loan shall meet applicable underwriting criteria, 
as determined by the Secretary. 
‘‘(c) LIMITATIONS.— 
‘‘(1) DOWN PAYMENT.—The Secretary shall not provide a 
loan guarantee under subsection (a) if the contribution of the 
qualified beginning farmer or rancher or socially disadvantaged 
farmer or rancher to the down payment for the farm or ranch 
that is the subject of the contract land sale would be less 
than 5 percent of the purchase price of the farm or ranch. 
‘‘(2) MAXIMUM PURCHASE PRICE.—The Secretary shall not 
provide a loan guarantee under subsection (a) if the purchase 
price or the appraisal value of the farm or ranch that is the 
subject of the contract land sale is greater than $500,000. 
‘‘(d) PERIOD OF GUARANTEE.—The period during which a loan 
guarantee under this section is in effect shall be the 10-year period 
beginning with the date the guarantee is provided. 
‘‘(e) GUARANTEE PLAN.— 
‘‘(1) SELECTION OF PLAN.—A private seller of a farm or 
ranch who makes a loan that is guaranteed by the Secretary 
under subsection (a) may select— 
‘‘(A) a prompt payment guarantee plan, which shall 
cover— 
‘‘(i) 3 amortized annual installments; or 
‘‘(ii) an amount equal to 3 annual installments 
(including an amount equal to the total cost of any 
tax and insurance incurred during the period covered 
by the annual installments); or
H. R. 2419—224 
‘‘(B) a standard guarantee plan, which shall cover an 
amount equal to 90 percent of the outstanding principal 
of the loan. 
‘‘(2) ELIGIBLITY FOR STANDARD GUARANTEE PLAN.—In order 
for a private seller to be eligible for a standard guarantee 
plan referred to in paragraph (1)(B), the private seller shall— 
‘‘(A) secure a commercial lending institution or similar 
entity, as determined by the Secretary, to serve as an 
escrow agent; or 
‘‘(B) in cooperation with the farmer or rancher, use 
an appropriate alternate arrangement, as determined by 
the Secretary. 
‘‘(f) TRANSITION FROM PILOT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary may phase-in the 
implementation of the changes to the Beginning Farmer and 
Rancher and Socially Disadvantaged Farmer or Rancher Con-
tract Land Sales Program provided for in this section. 
‘‘(2) LIMITATION.—All changes to the Beginning Farmer 
and Rancher and Socially Disadvantaged Farmer or Rancher 
Contract Land Sales Program must be implemented for the 
2011 Fiscal Year.’’. 
Subtitle B—Operating Loans 
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT. 
Section 311 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1941) is amended— 
(1) by striking the section designation and all that follows 
through ‘‘(a) The Secretary is authorized to’’ and inserting 
the following: 
‘‘SEC. 311. PERSONS ELIGIBLE FOR LOANS. 
‘‘(a) IN GENERAL.—The Secretary may’’; 
(2) in subsection (a)(2), by inserting ‘‘, taking into consider-
ation all farming experience of the applicant, without regard 
to any lapse between farming experiences’’ after ‘‘farming oper-
ations’’. 
SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS. 
Section 313(a)(1) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1943(a)(1)) is amended by striking ‘‘$200,000’’ 
and inserting ‘‘$300,000’’. 
SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BOR-
ROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. 
Section 5102 of the Farm Security And Rural Investment Act 
of 2002 (7 U.S.C. 1949 note; Public Law 107–171) is amended 
by striking ‘‘September 30, 2007’’ and inserting ‘‘December 31, 
2010’’. 
Subtitle C—Emergency Loans 
SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR 
EMERGENCY LOANS. 
Section 321(a) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1961(a)) is amended—
H. R. 2419—225 
(1) in paragraph (1), by striking ‘‘farmers, ranchers’’ and 
inserting ‘‘farmers or ranchers (including equine farmers or 
ranchers)’’; and 
(2) in paragraph (2)(A), by striking ‘‘farming, ranching,’’ 
and inserting ‘‘farming or ranching (including equine farming 
or ranching)’’. 
Subtitle D—Administrative Provisions 
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOP-
MENT ACCOUNTS PILOT PROGRAM. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
333A the following: 
‘‘SEC. 
333B. 
BEGINNING 
FARMER 
AND 
RANCHER 
INDIVIDUAL 
DEVELOPMENT ACCOUNTS PILOT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DEMONSTRATION PROGRAM.—The term ‘demonstration 
program’ means a demonstration program carried out by a 
qualified entity under the pilot program established in sub-
section (b)(1). 
‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible participant’ 
means a qualified beginning farmer or rancher that— 
‘‘(A) lacks significant financial resources or assets; and 
‘‘(B) has an income that is less than— 
‘‘(i) 80 percent of the median income of the State 
in which the farmer or rancher resides; or 
‘‘(ii) 200 percent of the most recent annual Federal 
Poverty Income Guidelines published by the Depart-
ment of Health and Human Services for the State. 
‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The term ‘indi-
vidual development account’ means a savings account described 
in subsection (b)(4)(A). 
‘‘(4) QUALIFIED ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘qualified entity’ means— 
‘‘(i) 1 or more organizations— 
‘‘(I) described in section 501(c)(3) of the 
Internal Revenue Code of 1986; and 
‘‘(II) exempt from taxation under section 501(a) 
of such Code; or 
‘‘(ii) a State, local, or tribal government submitting 
an application jointly with an organization described 
in clause (i). 
‘‘(B) 
NO
PROHIBITION
ON
COLLABORATION.—An 
organization described in subparagraph (A)(i) may collabo-
rate with a financial institution or for-profit community 
development corporation to carry out the purposes of this 
section. 
‘‘(b) PILOT PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary shall establish a pilot 
program to be known as the ‘New Farmer Individual Develop-
ment Accounts Pilot Program’ under which the Secretary shall 
work through qualified entities to establish demonstration pro-
grams— 
‘‘(A) of at least 5 years in duration; and
H. R. 2419—226 
‘‘(B) in at least 15 States. 
‘‘(2) COORDINATION.—The Secretary shall operate the pilot 
program through, and in coordination with the farm loan pro-
grams of, the Farm Service Agency. 
‘‘(3) RESERVE FUNDS.— 
‘‘(A) IN GENERAL.—A qualified entity carrying out a 
demonstration program under this section shall establish 
a reserve fund consisting of a non-Federal match of 50 
percent of the total amount of the grant awarded to the 
demonstration program under this section. 
‘‘(B) FEDERAL FUNDS.—After the qualified entity has 
deposited the non-Federal matching funds described in 
subparagraph (A) in the reserve fund, the Secretary shall 
provide the total amount of the grant awarded under this 
section to the demonstration program for deposit in the 
reserve fund. 
‘‘(C) USE OF FUNDS.—Of the funds deposited under 
subparagraph (B) in the reserve fund established for a 
demonstration program, the qualified entity carrying out 
the demonstration program— 
‘‘(i) may use up to 10 percent for administrative 
expenses; and 
‘‘(ii) shall use the remainder in making matching 
awards described in paragraph (4)(B)(ii)(I). 
‘‘(D) INTEREST.—Any interest earned on amounts in 
a reserve fund established under subparagraph (A) may 
be used by the qualified entity as additional matching 
funds for, or to administer, the demonstration program. 
‘‘(E) GUIDANCE.—The Secretary shall issue guidance 
regarding the investment requirements of reserve funds 
established under this paragraph. 
‘‘(F) REVERSION.—On the date on which all funds 
remaining in any individual development account estab-
lished by a qualified entity have reverted under paragraph 
(5)(B)(ii) to the reserve fund established by the qualified 
entity, there shall revert to the Treasury of the United 
States a percentage of the amount (if any) in the reserve 
fund equal to— 
‘‘(i) the amount of Federal funds deposited in the 
reserve fund under subparagraph (B) that were not 
used for administrative expenses; divided by 
‘‘(ii) the total amount of funds deposited in the 
reserve fund. 
‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 
‘‘(A) IN GENERAL.—A qualified entity receiving a grant 
under this section shall establish and administer individual 
development accounts for eligible participants. 
‘‘(B) CONTRACT
REQUIREMENTS.—To be eligible to 
receive funds under this section from a qualified entity, 
an eligible participant shall enter into a contract with 
only 1 qualified entity under which— 
‘‘(i) the eligible participant agrees— 
‘‘(I) to deposit a certain amount of funds of 
the eligible participant in a personal savings 
account, as prescribed by the contractual agree-
ment between the eligible participant and the 
qualified entity;
H. R. 2419—227 
‘‘(II) to use the funds described in subclause 
(I) only for 1 or more eligible expenditures 
described in paragraph (5)(A); and 
‘‘(III) to complete financial training; and 
‘‘(ii) the qualified entity agrees— 
‘‘(I) to deposit, not later than 1 month after 
an amount is deposited pursuant to clause (i)(I), 
at least a 100-percent, and up to a 200-percent, 
match of that amount into the individual develop-
ment account established for the eligible partici-
pant; and 
‘‘(II) with uses of funds proposed by the eligible 
participant. 
‘‘(C) LIMITATION.— 
‘‘(i) IN GENERAL.—A qualified entity administering 
a demonstration program under this section may pro-
vide not more than $6,000 for each fiscal year in 
matching funds to the individual development account 
established by the qualified entity for an eligible 
participant. 
‘‘(ii) TREATMENT OF AMOUNT.—An amount provided 
under clause (i) shall not be considered to be a gift 
or loan for mortgage purposes. 
‘‘(5) ELIGIBLE EXPENDITURES.— 
‘‘(A) IN GENERAL.—An eligible expenditure described 
in this subparagraph is an expenditure— 
‘‘(i) to purchase farmland or make a down payment 
on an accepted purchase offer for farmland; 
‘‘(ii) to make mortgage payments on farmland pur-
chased pursuant to clause (i), for up to 180 days after 
the date of the purchase; 
‘‘(iii) to purchase breeding stock, fruit or nut trees, 
or trees to harvest for timber; and 
‘‘(iv) for other similar expenditures, as determined 
by the Secretary. 
‘‘(B) TIMING.— 
‘‘(i) IN
GENERAL.—An eligible participant may 
make an eligible expenditure at any time during the 
2-year period beginning on the date on which the last 
matching 
funds 
are 
provided 
under 
paragraph 
(4)(B)(ii)(I) to the individual development account 
established for the eligible participant. 
‘‘(ii) UNEXPENDED FUNDS.—At the end of the period 
described in clause (i), any funds remaining in an 
individual development account established for an 
eligible participant shall revert to the reserve fund 
of the demonstration program under which the account 
was established. 
‘‘(c) APPLICATIONS.— 
‘‘(1) IN GENERAL.—A qualified entity that seeks to carry 
out a demonstration program under this section may submit 
to the Secretary an application at such time, in such form, 
and containing such information as the Secretary may pre-
scribe. 
‘‘(2) CRITERIA.—In considering whether to approve an 
application to carry out a demonstration program under this 
section, the Secretary shall assess—
H. R. 2419—228 
‘‘(A) the degree to which the demonstration program 
described in the application is likely to aid eligible partici-
pants in successfully pursuing new farming opportunities; 
‘‘(B) the experience and ability of the qualified entity 
to responsibly administer the demonstration program; 
‘‘(C) the experience and ability of the qualified entity 
in recruiting, educating, and assisting eligible participants 
to increase economic independence and pursue or advance 
farming opportunities; 
‘‘(D) the aggregate amount of direct funds from non- 
Federal public sector and private sources that are formally 
committed to the demonstration program as matching con-
tributions; 
‘‘(E) the adequacy of the plan of the qualified entity 
to provide information relevant to an evaluation of the 
demonstration program; and 
‘‘(F) such other factors as the Secretary considers to 
be appropriate. 
‘‘(3) PREFERENCES.—In considering an application to con-
duct a demonstration program under this section, the Secretary 
shall give preference to an application from a qualified entity 
that demonstrates— 
‘‘(A) a track record of serving clients targeted by the 
program, including, as appropriate, socially disadvantaged 
farmers or ranchers (as defined in section 355(e)(2)); and 
‘‘(B) expertise in dealing with financial management 
aspects of farming. 
‘‘(4) APPROVAL.—Not later than 1 year after the date of 
enactment of this section, in accordance with this section, the 
Secretary shall, on a competitive basis, approve such applica-
tions to conduct demonstration programs as the Secretary con-
siders appropriate. 
‘‘(5) TERM OF AUTHORITY.—If the Secretary approves an 
application to carry out a demonstration program, the Secretary 
shall authorize the applicant to carry out the project for a 
period of 5 years, plus an additional 2 years to make eligible 
expenditures in accordance with subsection (b)(5)(B). 
‘‘(d) GRANT AUTHORITY.— 
‘‘(1) IN GENERAL.—The Secretary shall make a grant to 
a qualified entity authorized to carry out a demonstration pro-
gram under this section. 
‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggregate amount 
of grant funds provided to a demonstration program carried 
out under this section shall not exceed $250,000. 
‘‘(3) TIMING OF GRANT PAYMENTS.—The Secretary shall pay 
the amounts awarded under a grant made under this section— 
‘‘(A) on the awarding of the grant; or 
‘‘(B) pursuant to such payment plan as the qualified 
entity may specify. 
‘‘(e) REPORTS.— 
‘‘(1) ANNUAL PROGRESS REPORTS.— 
‘‘(A) IN GENERAL.—Not later than 60 days after the 
end of the calendar year in which the Secretary authorizes 
a qualified entity to carry out a demonstration program 
under this section, and annually thereafter until the conclu-
sion of the demonstration program, the qualified entity
H. R. 2419—229 
shall prepare an annual report that includes, for the period 
covered by the report— 
‘‘(i) an evaluation of the progress of the demonstra-
tion program; 
‘‘(ii) information about the demonstration program, 
including the eligible participants and the individual 
development accounts that have been established; and 
‘‘(iii) such other information as the Secretary may 
require. 
‘‘(B) SUBMISSION OF REPORTS.—A qualified entity shall 
submit each report required under subparagraph (A) to 
the Secretary. 
‘‘(2) REPORTS BY THE SECRETARY.—Not later than 1 year 
after the date on which all demonstration programs under 
this section are concluded, the Secretary shall submit to Con-
gress a final report that describes the results and findings 
of all reports and evaluations carried out under this section. 
‘‘(f) ANNUAL REVIEW.—The Secretary may conduct an annual 
review of the financial records of a qualified entity— 
‘‘(1) to assess the financial soundness of the qualified entity; 
and 
‘‘(2) to determine the use of grant funds made available 
to the qualified entity under this section. 
‘‘(g) REGULATIONS.—In carrying out this section, the Secretary 
may promulgate regulations to ensure that the program includes 
provisions for— 
‘‘(1) the termination of demonstration programs; 
‘‘(2) control of the reserve funds in the case of such a 
termination; 
‘‘(3) transfer of demonstration programs to other qualified 
entities; and 
‘‘(4) remissions from a reserve fund to the Secretary in 
a case in which a demonstration program is terminated without 
transfer to a new qualified entity. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2008 through 2012.’’. 
SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES. 
(a) INVENTORY SALES PREFERENCES.—Section 335(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)— 
(i) in the subparagraph heading, by inserting ‘‘; 
SOCIALLY DISADVANTAGED FARMER OR RANCHER’’ after 
‘‘OR RANCHER’’; 
(ii) in clause (i), by inserting ‘‘ or a socially dis-
advantaged farmer or rancher’’ after ‘‘or rancher’’; 
(iii) in clause (ii), by inserting ‘‘or socially disadvan-
taged farmer or rancher’’ after ‘‘or rancher’’; 
(iv) in clause (iii), by inserting ‘‘or a socially dis-
advantaged farmer or rancher’’ after ‘‘or rancher’’; and 
(v) in clause (iv), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged 
farmers or ranchers’’; and
H. R. 2419—230 
(B) in subparagraph (C), by inserting ‘‘or a socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 
(2) in paragraph (5)(B)— 
(A) in clause (i)— 
(i) in the clause heading, by inserting ‘‘; SOCIALLY 
DISADVANTAGED
FARMER
OR
RANCHER’’ after ‘‘OR 
RANCHER’’; 
(ii) by inserting ‘‘or a socially disadvantaged farmer 
or rancher’’ after ‘‘a beginning farmer or rancher’’; and 
(iii) by inserting ‘‘or the socially disadvantaged 
farmer or rancher’’ after ‘‘the beginning farmer or 
rancher’’; and 
(B) in clause (ii)— 
(i) in the matter preceding subclause (I), by 
inserting ‘‘or a socially disadvantaged farmer or 
rancher’’ after ‘‘or rancher’’; and 
(ii) in subclause (II), by inserting ‘‘or the socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; 
and 
(3) in paragraph (6)— 
(A) in subparagraph (A), by inserting ‘‘or a socially 
disadvantaged farmer or rancher’’ after ‘‘or rancher’’; and 
(B) in subparagraph (C)— 
(i) in clause (i)(I), by striking ‘‘and ranchers’’ and 
inserting ‘‘or ranchers and socially disadvantaged 
farmers or ranchers’’; and 
(ii) in clause (ii), by inserting ‘‘or socially disadvan-
taged farmers or ranchers’’ after ‘‘or ranchers’’. 
(b) LOAN FUND SET-ASIDES.—Section 346(b)(2) of such Act (7 
U.S.C. 1994(b)(2)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (i)— 
(i) in subclause (I), by striking ‘‘70 percent’’ and 
inserting ‘‘an amount that is not less than 75 percent 
of the total amount’’; and 
(ii) in subclause (II)— 
(I) in the subclause heading, by inserting ‘‘; 
JOINT FINANCING ARRANGEMENTS’’ after ‘‘PAYMENT 
LOANS’’; 
(II) by striking ‘‘60 percent’’ and inserting ‘‘an 
amount not less than 2⁄3 of the amount’’; and 
(III) by inserting ‘‘and joint financing arrange-
ments under section 307(a)(3)(D)’’ after ‘‘section 
310E’’; and 
(B) in clause (ii)(III), by striking ‘‘2003 through 2007, 
35 percent’’ and inserting ‘‘2008 through 2012, an amount 
that is not less than 50 percent of the total amount’’; 
and 
(2) in subparagraph (B)(i), by striking ‘‘25 percent’’ and 
inserting ‘‘an amount that is not less than 40 percent of the 
total amount’’. 
SEC. 5303. LOAN AUTHORIZATION LEVELS. 
Section 346(b)(1) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1994(b)(1)) is amended— 
(1) in the matter preceding subparagraph (A), by striking 
‘‘$3,796,000,000 for each of fiscal years 2003 through 2007’’
H. R. 2419—231 
and inserting ‘‘$4,226,000,000 for each of fiscal years 2008 
through 2012’’; and 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking 
‘‘$770,000,000’’ and inserting ‘‘$1,200,000,000’’; 
(B) in clause (i), by striking ‘‘$205,000,000’’ and 
inserting ‘‘$350,000,000’’; and 
(C) in clause (ii), by striking ‘‘$565,000,000’’ and 
inserting ‘‘$850,000,000’’. 
SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
OF CREDIT. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
344 the following: 
‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
OF CREDIT. 
‘‘(a) IN GENERAL.—In making or insuring a farm loan under 
subtitle A or B, the Secretary shall establish a plan and promulgate 
regulations (including performance criteria) that promote the goal 
of transitioning borrowers to private commercial credit and other 
sources of credit in the shortest period of time practicable. 
‘‘(b) COORDINATION.—In carrying out this section, the Secretary 
shall integrate and coordinate the transition policy described in 
subsection (a) with— 
‘‘(1) the borrower training program established by section 
359; 
‘‘(2) the loan assessment process established by section 
360; 
‘‘(3) the supervised credit requirement established by sec-
tion 361; 
‘‘(4) the market placement program established by section 
362; and 
‘‘(5) other appropriate programs and authorities, as deter-
mined by the Secretary.’’. 
SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO 
REACQUIRE 
HOMESTEAD 
PROPERTY 
TO 
IMMEDIATE 
FAMILY MEMBERS OF BORROWER-OWNER. 
Section 352(c)(4)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2000(c)(4)(B)) is amended— 
(1) in the 1st sentence, by striking ‘‘, the borrower-owner’’ 
inserting ‘‘of a borrower-owner who is a socially disadvantaged 
farmer or rancher (as defined in section 355(e)(2)), the borrower- 
owner or a member of the immediate family of the borrower- 
owner’’; and 
(2) in the 2nd sentence, by inserting ‘‘or immediate family 
member, as the case may be,’’ before ‘‘from’’. 
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVI-
TIES. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981–2008r) is amended by inserting after section 
364 the following:
H. R. 2419—232 
‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVI-
TIES. 
‘‘The Secretary may not complete a study of, or enter into 
a contract with a private party to carry out, without specific 
authorization in a subsequent Act of Congress, a competitive 
sourcing activity of the Secretary, including support personnel of 
the Department of Agriculture, relating to rural development or 
farm loan programs.’’. 
Subtitle E—Farm Credit 
SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION. 
(a) IN GENERAL.—Section 1.12(b) of the Farm Credit Act of 
1971 (12 U.S.C. 2020(b)) is amended— 
(1) in the first sentence, by striking ‘‘Each Farm’’ and 
inserting the following; 
‘‘(1) IN GENERAL.—Each Farm’’; and 
(2) by striking the second sentence and inserting the fol-
lowing: 
‘‘(2) COMPUTATION.—The assessment on any association or 
other financing institution described in paragraph (1) for any 
period shall be computed in an equitable manner, as determined 
by the Corporation.’’. 
(b) RULES
AND REGULATIONS.—Section 5.58(10) of such Act 
(12 U.S.C. 2277a-7(10)) is amended by inserting ‘‘and section 
1.12(b)’’ after ‘‘part’’. 
SEC. 5402. TECHNICAL CORRECTION. 
Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b)) 
is amended in the first sentence by striking ‘‘per’’ and inserting 
‘‘par’’. 
SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK. 
(a) IN GENERAL.—Section 3.3(c) of the Farm Credit Act of 
1971 (12 U.S.C. 2124(c)) is amended by striking ‘‘and (ii)’’ and 
inserting ‘‘(ii) other categories of persons and entities described 
in sections 3.7 and 3.8 eligible to borrow from the bank, as deter-
mined by the bank’s board of directors; and (iii)’’. 
(b) CONFORMING AMENDMENTS.—Section 4.3A(c)(1)(D) of such 
Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses 
(ii) and (iii) as clauses (iii) and (iv), respectively, and inserting 
after clause (i) the following: 
‘‘(ii) persons and entities eligible to borrow from 
the banks for cooperatives, as described in section 
3.3(c)(ii);’’. 
SEC. 5404. PREMIUMS. 
(a) AMOUNT IN FUND NOT EXCEEDING SECURE BASE AMOUNT.— 
Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a- 
4(a)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A)— 
(i) by striking ‘‘paragraph (2)’’ and inserting ‘‘para-
graph (3)’’; and 
(ii) by striking ‘‘annual’’ ; and 
(B) by striking subparagraphs (A) through (D) and 
inserting the following:
H. R. 2419—233 
‘‘(A) the average outstanding insured obligations issued 
by the bank for the calendar year, after deducting from 
the obligations the percentages of the guaranteed portions 
of loans and investments described in paragraph (2), multi-
plied by 0.0020; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the sum of— 
‘‘(I) the average principal outstanding for the 
calendar year on loans made by the bank that 
are in nonaccrual status; and 
‘‘(II) the average amount outstanding for the 
calendar year of other-than-temporarily impaired 
investments made by the bank; by 
‘‘(ii) 0.0010.’’; 
(2) by striking paragraph (4); 
(3) by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively; 
(4) by inserting after paragraph (1) the following: 
‘‘(2) DEDUCTIONS
FROM
AVERAGE
OUTSTANDING
INSURED 
OBLIGATIONS.—The average outstanding insured obligations 
issued by the bank for the calendar year referred to in para-
graph (1)(A) shall be reduced by deducting from the obligations 
the sum of (as determined by the Corporation)— 
‘‘(A) 90 percent of each of— 
‘‘(i) the average principal outstanding for the cal-
endar year on the guaranteed portions of Federal 
government-guaranteed loans made by the bank that 
are in accrual status; and 
‘‘(ii) the average amount outstanding for the cal-
endar year of the guaranteed portions of Federal 
government-guaranteed investments made by the bank 
that are not permanently impaired; and 
‘‘(B) 80 percent of each of— 
‘‘(i) the average principal outstanding for the cal-
endar year on the guaranteed portions of State govern-
ment-guaranteed loans made by the bank that are 
in accrual status; and 
‘‘(ii) the average amount outstanding for the cal-
endar year of the guaranteed portions of State govern-
ment-guaranteed investments made by the bank that 
are not permanently impaired.’’; 
(5) in paragraph (3) (as so redesignated by paragraph (3) 
of this subsection), by striking ‘‘annual’’; and 
(6) in paragraph (4) (as so redesignated by paragraph (3) 
of this subsection)— 
(A) in the paragraph heading, by inserting ‘‘OR INVEST-
MENTS’’ after ‘‘LOANS’’ ; and 
(B) in the matter preceding subparagraph (A), by 
striking ‘‘As used’’ and all that follows through ‘‘guaran-
teed—’’ and inserting ‘‘In this section, the term ‘govern-
ment-guaranteed’, when applied to a loan or an investment, 
means a loan, credit, or investment, or portion of a loan, 
credit, or investment, that is guaranteed—’’. 
(b) AMOUNT IN FUND EXCEEDING SECURE BASE AMOUNT.—Sec-
tion 5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by 
striking ‘‘annual’’.
H. R. 2419—234 
(c) SECURE BASE AMOUNT.—Section 5.55(c) of such Act (12 
U.S.C. 2277a-4(c)) is amended— 
(1) by striking ‘‘For purposes’’ and inserting the following: 
‘‘(1) IN GENERAL.—For purposes’’; 
(2) by striking ‘‘(adjusted downward’’ and all that follows 
through ‘‘by the Corporation)’’ and inserting ‘‘(as adjusted under 
paragraph (2))’’; and 
(3) by adding at the end the following: 
‘‘(2) ADJUSTMENT.—The aggregate outstanding insured 
obligations of all insured System banks under paragraph (1) 
shall be adjusted downward to exclude an amount equal to 
the sum of (as determined by the corporation)— 
‘‘(A) 90 percent of each of— 
‘‘(i) the guaranteed portions of principal out-
standing on Federal government-guaranteed loans in 
accrual status made by the banks; and 
‘‘(ii) the guaranteed portions of the amount of Fed-
eral government-guaranteed investments made by the 
banks that are not permanently impaired; and 
‘‘(B) 80 percent of each of— 
‘‘(i) the guaranteed portions of principal out-
standing on State government-guaranteed loans in 
accrual status made by the banks; and 
‘‘(ii) the guaranteed portions of the amount of State 
government-guaranteed investments made by the 
banks that are not permanently impaired.’’. 
(d) DETERMINATION OF LOAN AND INVESTMENT AMOUNTS.—Sec-
tion 5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended— 
(1) in the subsection heading, by striking ‘‘PRINCIPAL OUT-
STANDING’’ and inserting ‘‘LOAN AND INVESTMENT AMOUNTS’’; 
(2) in the matter preceding paragraph (1), by striking ‘‘For 
the purpose’’ and all that follows through ‘‘made—’’ and 
inserting ‘‘For the purpose of subsections (a) and (c), the prin-
cipal outstanding on all loans made by an insured System 
bank, and the amount outstanding on all investments made 
by an insured System bank, shall be determined based on— 
’’; 
(3) in each of paragraphs (1), (2), and (3), by inserting 
‘‘all loans or investments made’’ before ‘‘by’’ the first place 
it appears; and 
(4) in each of paragraphs (1) and (2), by inserting ‘‘or 
investments’’ after ‘‘that is able to make such loans’’ each 
place it appears. 
(e) 
ALLOCATION
TO
SYSTEM
INSTITUTIONS
OF
EXCESS 
RESERVES.—Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is 
amended— 
(1) in paragraph (3), by striking ‘‘the average secure base 
amount for the calendar year (as calculated on an average 
daily balance basis)’’ and inserting ‘‘the secure base amount’’; 
(2) in paragraph (4), by striking subparagraph (B) and 
inserting the following: 
‘‘(B) there shall be credited to the allocated insurance 
reserves account of each insured system bank an amount 
that bears the same ratio to the total amount (less any 
amount credited under subparagraph (A)) as— 
‘‘(i) the average principal outstanding for the cal-
endar year on insured obligations issued by the bank
H. R. 2419—235 
(after deducting from the principal the percentages 
of the guaranteed portions of loans and investments 
described in subsection (a)(2)); bears to 
‘‘(ii) the average principal outstanding for the cal-
endar year on insured obligations issued by all insured 
System banks (after deducting from the principal the 
percentages of the guaranteed portions of loans and 
investments described in subsection (a)(2)).’’; and 
(3) in paragraph (6)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), by striking 
‘‘beginning more’’ and all that follows through ‘‘January 
1, 2005’’; 
(ii) by striking clause (i) and inserting the fol-
lowing: 
‘‘(i) subject to subparagraph (D), pay to each 
insured System bank, in a manner determined by the 
Corporation, an amount equal to the balance in the 
Allocated Insurance Reserves Account of the System 
bank; and’’; and 
(iii) in clause (ii)— 
(I) by striking ‘‘subparagraphs (C), (E), and 
(F)’’ and inserting ‘‘subparagraphs (C) and (E)’’; 
and 
(II) by striking ‘‘, of the lesser of—’’ and all 
that follows through the end of subclause (II) and 
inserting ‘‘at the time of the termination of the 
Financial Assistance Corporation, of the balance 
in the Allocated Insurance Reserves Account estab-
lished under paragraph (1)(B).’’; 
(B) in subparagraph (C)— 
(i) in clause (i), by striking ‘‘(in addition to the 
amounts described in subparagraph (F)(ii))’’; and 
(ii) by striking clause (ii) and inserting the fol-
lowing: 
‘‘(ii) TERMINATION OF ACCOUNT.—On disbursement 
of an amount equal to $56,000,000, the Corporation 
shall— 
‘‘(I) close the account established under para-
graph (1)(B); and 
‘‘(II) transfer any remaining funds in the 
Account to the remaining Allocated Insurance 
Reserves Accounts in accordance with paragraph 
(4)(B) for the calendar year in which the transfer 
occurs.’’; and 
(C) by striking subparagraph (F). 
SEC. 5405. CERTIFICATION OF PREMIUMS. 
(a) FILING CERTIFIED STATEMENT.—Section 5.56 of the Farm 
Credit Act of 1971 (12 U.S.C. 2277a–5) is amended by striking 
subsection (a) and inserting the following: 
‘‘(a) FILING CERTIFIED STATEMENT.—On a date to be determined 
in the sole discretion of the Board of Directors of the Corporation, 
each insured System bank that became insured before the beginning 
of the period for which premiums are being assessed (referred 
to in this section as the ‘period’) shall file with the Corporation 
a certified statement showing—
H. R. 2419—236 
‘‘(1) the average outstanding insured obligations for the 
period issued by the bank; 
‘‘(2)(A) the average principal outstanding for the period 
on the guaranteed portion of Federal government-guaranteed 
loans that are in accrual status; and 
‘‘(B) the average amount outstanding for the period of 
Federal government-guaranteed investments that are not 
permanently impaired (as defined in section 5.55(a)(4)); 
‘‘(3)(A) the average principal outstanding for the period 
on State government-guaranteed loans that are in accrual 
status; and 
‘‘(B) the average amount outstanding for the period of 
State government-guaranteed investments that are not perma-
nently impaired (as defined in section 5.55(a)(4)); 
‘‘(4)(A) the average principal outstanding for the period 
on loans that are in nonaccrual status; and 
‘‘(B) the average amount outstanding for the period of 
other-than-temporarily impaired investments; and 
‘‘(5) the amount of the premium due the Corporation from 
the bank for the period.’’. 
(b) PREMIUM PAYMENTS.—Section 5.56 of such Act (12 U.S.C. 
2277a–5) is amended by striking subsection (c) and inserting the 
following: 
‘‘(c) PREMIUM PAYMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
each insured System bank shall pay to the Corporation the 
premium payments required under subsection (a), not more 
frequently than once in each calendar quarter, in such manner 
and at such 1 or more times as the Board of Directors shall 
prescribe. 
‘‘(2) PREMIUM AMOUNT.—The amount of the premium shall 
be established not later than 60 days after filing the certified 
statement specifying the amount of the premium.’’. 
(c) SUBSEQUENT PREMIUM PAYMENTS.—Section 5.56 of such Act 
(12 U.S.C. 2277a–5) is amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsection (e) as subsection (d). 
SEC. 5406. RURAL UTILITY LOANS. 
(a) DEFINITION OF QUALIFIED LOAN.—Section 8.0(9) of the Farm 
Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended— 
(1) in subparagraph (A)(iii), by striking ‘‘or’’ at the end; 
(2) in subparagraph (B)(ii), by striking the period at the 
end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(C) that is a loan, or an interest in a loan, for an 
electric or telephone facility by a cooperative lender to 
a borrower that has received, or is eligible to receive, 
a loan under the Rural Electrification Act of 1936 (7 U.S.C. 
901 et seq.).’’. 
(b) GUARANTEE OF QUALIFIED LOANS.—Section 8.6(a)(1) of such 
Act (12 U.S.C. 2279aa–6(a)(1)) is amended by inserting ‘‘applicable’’ 
before ‘‘standards’’ each place it appears in subparagraphs (A) and 
(B)(i). 
(c) STANDARDS FOR QUALIFIED LOANS.—Section 8.8 of such Act 
(12 U.S.C. 2279aa–8) is amended— 
(1) in subsection (a)—
H. R. 2419—237 
(A) by striking the first sentence and inserting the 
following: 
‘‘(1) IN GENERAL.—The Corporation shall establish under-
writing, security appraisal, and repayment standards for quali-
fied loans taking into account the nature, risk profile, and 
other differences between different categories of qualified loans. 
‘‘(2) SUPERVISION, EXAMINATION, AND
REPORT
OF
CONDI-
TION.—The standards shall be subject to the authorities of 
the Farm Credit Administration under section 8.11.’’; and 
(B) in the last sentence, by striking ‘‘In establishing’’ 
and inserting the following: 
‘‘(3) MORTGAGE LOANS.—In establishing’’; 
(2) in subsection (b)— 
(A) in the matter preceding paragraph (1), by inserting 
‘‘with respect to loans secured by agricultural real estate’’ 
after ‘‘subsection (a)’’; and 
(B) in paragraph (5)— 
(i) by striking ‘‘borrower’’ the first place it appears 
and inserting ‘‘farmer or rancher’’; and 
(ii) by striking ‘‘site’’ and inserting ‘‘farm or ranch’’; 
(3) in subsection (c)(1), by inserting ‘‘secured by agricultural 
real estate’’ after ‘‘A loan’’; 
(4) by striking subsection (d); and 
(5) by redesignating subsection (e) as subsection (d). 
(d) RISK-BASED CAPITAL LEVELS.—Section 8.32(a)(1) of such 
Act (12 U.S.C. 2279bb–1(a)(1)) is amended— 
(1) by striking ‘‘With respect’’ and inserting the following: 
‘‘(A) IN GENERAL.—With respect’’; and 
(2) by adding at the end the following: 
‘‘(B) RURAL UTILITY LOANS.—With respect to securities 
representing an interest in, or obligation backed by, a 
pool of qualified loans described in section 8.0(9)(C) owned 
or guaranteed by the Corporation, losses occur at a rate 
of default and severity reasonably related to risks in electric 
and telephone facility loans (as applicable), as determined 
by the Director.’’. 
SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS-
TRICT ASSOCIATIONS. 
(a) IN GENERAL.—The Farm Credit Act of 1971 is amended 
by inserting after section 7.6 (12 U.S.C. 2279b) the following: 
‘‘SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DIS-
TRICT ASSOCIATIONS. 
‘‘(a) EQUALIZATION OF LOAN-MAKING POWERS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) FEDERAL
LAND
BANK
ASSOCIATIONS.—Subject to 
paragraph (2), any association that owns a Federal land 
bank association authorized as of January 1, 2007, to make 
long-term loans under title I in its chartered territory 
within the geographic area described in subsection (b) may 
make short- and intermediate-term loans and otherwise 
operate as a production credit association under title II 
within that same chartered territory. 
‘‘(B) PRODUCTION
CREDIT
ASSOCIATIONS.—Subject to 
paragraph (2), any association that under its charter has 
title I lending authority and that owns a production credit 
association authorized as of January 1, 2007, to make
H. R. 2419—238 
short- and intermediate-term loans under title II in the 
geographic area described in subsection (b) may make long- 
term loans and otherwise operate, directly or through a 
subsidiary association, as a Federal land bank association 
or Federal land credit association under title I in the 
geographic area. 
‘‘(C) FARM
CREDIT
BANK.—Notwithstanding section 
5.17(a), the Farm Credit Bank with which any association 
had a written financing agreement as of January 1, 2007, 
may make loans and extend other comparable financial 
assistance with respect to, and may purchase, any loans 
made under the new authority provided under subpara-
graph (A) or (B) by an association exercising such authority. 
‘‘(2) REQUIRED APPROVALS.—An association may exercise 
the additional authority provided for in paragraph (1) only 
after the exercise of the authority is approved by— 
‘‘(A) the board of directors of the association; and 
‘‘(B) a majority of the voting stockholders of the associa-
tion (or, if the association is a subsidiary of another associa-
tion, the voting stockholders of the parent association) 
voting, in person or by proxy, at a duly authorized meeting 
of stockholders in accordance with the process described 
in section 7.11. 
‘‘(b) APPLICABILITY.—This section applies only to associations 
the chartered territory of which was within the geographic area 
served by the Federal intermediate credit bank immediately prior 
to its merger with a Farm Credit Bank under section 410(e)(1) 
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public 
Law 100–233).’’. 
(b) CHARTER AMENDMENTS.—Section 5.17(a) of the Farm Credit 
Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the end 
the following: 
‘‘(15)(A) Approve amendments to the charters of institutions 
of the Farm Credit System to implement the equalization of 
loan-making powers of a Farm Credit System association under 
section 7.7. 
‘‘(B) Amendments described in subparagraph (A) to the 
charters of an association and the related Farm Credit Bank 
shall be approved by the Farm Credit Administration, subject 
to any conditions of approval imposed, by not later than 30 
days after the date on which the Farm Credit Administration 
receives all approvals required by section 7.7(a)(2).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 
U.S.C. 2252(a)(2)) is amended— 
(A) by striking ‘‘(2)(A)’’ and inserting ‘‘(2)’’; and 
(B) by striking subparagraphs (B) and (C). 
(2) SECTION 410 OF THE 1987 ACT.—Section 410(e)(1)(A)(iii) 
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; 
Public Law 100–233) is amended by inserting ‘‘(except section 
7.7 of that Act)’’ after ‘‘(12 U.S.C. 2001 et seq.)’’. 
(3) SECTION 401 OF THE 1992 ACT.—Section 401(b) of the 
Farm Credit Banks and Associations Safety and Soundness 
Act of 1992 (12 U.S.C. 2011 note; Public Law 102–552) is 
amended— 
(A) by inserting ‘‘(except section 7.7 of the Farm Credit 
Act of 1971)’’ after ‘‘provision of law’’; and
H. R. 2419—239 
(B) by striking ‘‘, subject to such limitations’’ and all 
that follows through the end of the paragraph and inserting 
a period. 
(d) EFFECTIVE DATE.—The amendments made by this section 
take effect on January 1, 2010. 
Subtitle F—Miscellaneous 
SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND. 
The first section of Public Law 91–229 (25 U.S.C. 488) is 
amended— 
(1) by striking ‘‘That the Secretary’’ and inserting the fol-
lowing: 
‘‘SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND. 
‘‘(a) IN GENERAL.—The Secretary’’; and 
(2) by adding at the end the following: 
‘‘(b) HIGHLY FRACTIONATED LAND.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
of Agriculture may make and insure loans in accordance with 
section 309 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1929) to eligible purchasers of highly fractionated 
land pursuant to section 205(c) of the Indian Land Consolida-
tion Act (25 U.S.C. 2204(c)). 
‘‘(2) EXCLUSION.—Section 4 shall not apply to trust land, 
restricted tribal land, or tribal corporation land that is mort-
gaged in accordance with paragraph (1).’’. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and Rural 
Development Act 
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY 
GRANTS. 
Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking 
‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6002. SEARCH GRANTS. 
(a) IN GENERAL.—Section 306(a)(2) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by 
adding at the end the following: 
‘‘(C) SPECIAL
EVALUATION
ASSISTANCE
FOR
RURAL 
COMMUNITIES AND HOUSEHOLDS PROGRAM.— 
‘‘(i) IN GENERAL.—The Secretary may establish the 
Special Evaluation Assistance for Rural Communities 
and 
Households 
(SEARCH) 
program, 
to 
make 
predevelopment planning grants for feasibility studies, 
design assistance, and technical assistance, to finan-
cially distressed communities in rural areas with popu-
lations of 2,500 or fewer inhabitants for water and 
waste disposal projects described in paragraph (1), this 
paragraph, and paragraph (24). 
‘‘(ii) TERMS.—
H. R. 2419—240 
‘‘(I) DOCUMENTATION.—With respect to grants 
made under this subparagraph, the Secretary shall 
require the lowest amount of documentation prac-
ticable. 
‘‘(II) MATCHING.—Notwithstanding any other 
provisions in this subsection, the Secretary may 
fund up to 100 percent of the eligible costs of 
grants provided under this subparagraph, as deter-
mined by the Secretary. 
‘‘(iii) FUNDING.—The Secretary may use not more 
than 4 percent of the total amount of funds made 
available for a fiscal year for water, waste disposal, 
and essential community facility activities under this 
title to carry out this subparagraph. 
‘‘(iv) RELATIONSHIP
TO
OTHER
AUTHORITY.—The 
funds and authorities provided under this subpara-
graph are in addition to any other funds or authorities 
the Secretary may have to carry out activities described 
in clause (i).’’. 
(b) CONFORMING AMENDMENT.—Subtitle D of title VI of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee 
et seq.) is repealed. 
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS. 
Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking 
‘‘1996 through 2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN 
GUARANTEES. 
Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking 
‘‘April’’ and inserting ‘‘June’’. 
SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND. 
Section 306(a)(20)(E) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(20)(E)) is amended— 
(1) by striking ‘‘state’’ and inserting ‘‘State’’; and 
(2) by striking ‘‘dial-up Internet access or’’. 
SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PRO-
GRAM. 
Section 306(a)(22)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking 
‘‘$15,000,000 for fiscal year 2003’’ and inserting ‘‘$25,000,000 for 
fiscal year 2008’’. 
SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
FACILITIES. 
Section 306(a)(25) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(a)(25)) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘tribal colleges and universities’’ and 
inserting ‘‘an entity that is a Tribal College or University’’; 
and 
(B) by striking ‘‘tribal college or university’’ and 
inserting ‘‘Tribal College or University’’;
H. R. 2419—241 
(2) by striking subparagraph (B) and inserting the fol-
lowing: 
‘‘(B) FEDERAL SHARE.—The Secretary shall establish 
the maximum percentage of the cost of the facility that 
may be covered by a grant under this paragraph, except 
that the Secretary may not require non-Federal financial 
support in an amount that is greater than 5 percent of 
the total cost of the facility.’’; and 
(3) in subparagraph (C), by striking ‘‘2003 through 2007’’ 
and inserting ‘‘2008 through 2012’’. 
SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSIST-
ANCE GRANT PROGRAM. 
Section 306A(i)(2) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926a(i)(2)) is amended by striking ‘‘2003 
through 2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
ALASKA. 
(a) IN GENERAL.—Section 306D(d)(1) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by 
striking ‘‘2001 through 2007’’ and inserting ‘‘2008 through 2012’’. 
(b) RURAL COMMUNITIES ASSISTANCE.—Section 4009 of the Solid 
Waste Disposal Act (42 U.S.C. 6949) is amended by adding at 
the end the following: 
‘‘(e) ADDITIONAL APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be appropriated 
to carry out this section for the Denali Commission to provide 
assistance to municipalities in the State of Alaska $1,500,000 
for each of fiscal years 2008 through 2012. 
‘‘(2) ADMINISTRATION.—For the purpose of carrying out this 
subsection, the Denali Commission shall— 
‘‘(A) be considered a State; and 
‘‘(B) comply with all other requirements and limitations 
of this section.’’. 
SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
CONSTRUCTION, REFURBISHING, AND SERVICING OF 
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYS-
TEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR 
MODERATE INCOMES. 
Section 306E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926e) is amended— 
(1) in subsection (b)(2)(C), by striking ‘‘$8,000’’ and 
inserting ‘‘$11,000’’; and 
(2) in subsection (d), by striking ‘‘2003 through 2007’’ and 
inserting ‘‘2008 through 2012’’. 
SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILI-
TIES LOANS. 
Section 307(a)(3) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end 
the following: 
‘‘(E) INTEREST RATES FOR WATER AND WASTE DISPOSAL 
FACILITIES LOANS.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii) and notwithstanding subparagraph (A), in the case 
of a direct loan for a water or waste disposal facility—
H. R. 2419—242 
‘‘(I) in the case of a loan that would be subject 
to the 5 percent interest rate limitation under 
subparagraph (A), the Secretary shall establish 
the interest rate at a rate that is equal to 60 
percent of the current market yield for outstanding 
municipal obligations with remaining periods to 
maturity comparable to the average maturity of 
the loan, adjusted to the nearest 1⁄8 of 1 percent; 
and 
‘‘(II) in the case of a loan that would be subject 
to the 7 percent limitation under subparagraph 
(A), the Secretary shall establish the interest rate 
at a rate that is equal to 80 percent of the current 
market yield for outstanding municipal obligations 
with remaining periods to maturity comparable 
to the average maturity of the loan, adjusted to 
the nearest 1⁄8 of 1 percent. 
‘‘(ii) EXCEPTION.—Clause (i) does not apply to a 
loan for a specific project that is the subject of a 
loan that has been approved, but not closed, as of 
the date of enactment of this subparagraph.’’. 
SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE. 
(a) IN GENERAL.—Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended— 
(1) by striking ‘‘SEC. 310B. (a)’’ and inserting the following: 
‘‘SEC. 310B. ASSISTANCE FOR RURAL ENTITIES. 
‘‘(a) LOANS TO PRIVATE BUSINESS ENTERPRISES.— 
‘‘(1) DEFINITIONS.—In this subsection:’’; 
(2) in subsection (a)— 
(A) by moving the second and fourth sentences so 
as to appear as the second and first sentences, respectively; 
(B) in the sentence beginning ‘‘As used in this sub-
section, the’’ (as moved by subparagraph (A)), by striking 
‘‘As used in this subsection, the’’ and inserting the fol-
lowing: 
‘‘(A) AQUACULTURE.—The’’; 
(C) in the sentence beginning ‘‘For the purposes of 
this subsection, the’’, by striking ‘‘For the purposes of this 
subsection, the’’ and inserting the following: 
‘‘(B) SOLAR ENERGY.—The’’; 
(D) in the sentence beginning ‘‘The Secretary may 
also’’— 
(i) by striking ‘‘The Secretary may also’’ and 
inserting the following: 
‘‘(2) LOAN PURPOSES.—The Secretary may’’; 
(ii) by inserting ‘‘and private investment funds that 
invest primarily in cooperative organizations’’ after ‘‘or 
nonprofit’’; 
(iii) by striking ‘‘of (1) improving’’ and inserting 
‘‘of— 
‘‘(A) improving’’; 
(iv) by striking ‘‘control, (2) the’’ and inserting 
‘‘control; 
‘‘(B) the’’; 
(v) by striking ‘‘areas, (3) reducing’’ and inserting 
‘‘areas;
H. R. 2419—243 
‘‘(C) reducing’’; 
(vi) by striking ‘‘areas, and (4) to’’ and inserting 
‘‘areas; and 
‘‘(D) to’’; 
(E) in the sentence beginning ‘‘Such loans,’’, by striking 
‘‘Such loans,’’ and inserting the following: 
‘‘(3) LOAN
GUARANTEES.—Loans described in paragraph 
(2),’’; and 
(F) in the last sentence, by striking ‘‘No loan’’ and 
inserting the following: 
‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.—No loan’’; and 
(3) in subsection (g)— 
(A) in paragraph (1), by inserting ‘‘, including guaran-
tees described in paragraph (3)(A)(ii)’’ before the period 
at the end; 
(B) in paragraph (3)(A)— 
(i) by striking ‘‘(A) IN GENERAL.—The Secretary’’ 
and inserting the following: 
‘‘(A) ELIGIBILITY.— 
‘‘(i) IN GENERAL.—The Secretary’’; and 
(ii) by adding at the end the following: 
‘‘(ii) EQUITY.—The Secretary may guarantee a loan 
made for the purchase of preferred stock or similar 
equity issued by a cooperative organization or a fund 
that invests primarily in cooperative organizations, if 
the guarantee significantly benefits 1 or more entities 
eligible for assistance for the purposes described in 
subsection (a)(1), as determined by the Secretary.’’; 
and 
(C) in paragraph (8)(A)(ii), by striking ‘‘a project— 
’’ and all that follows through the end of subclause (II) 
and inserting ‘‘a project that— 
‘‘(I)(aa) is in a rural area; and 
‘‘(bb) provides for the value-added processing 
of agricultural commodities; or 
‘‘(II) significantly benefits 1 or more entities 
eligible for assistance for the purposes described 
in subsection (a)(1), as determined by the Sec-
retary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by 
striking clause (ii) and inserting the following: 
‘‘(ii) section 310B(a)(2)(A); and’’. 
(2) Section 310B(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)) is amended by striking 
‘‘subsection (a)(1)’’ each place it appears in paragraphs (1), 
(6)(A)(iii), and (8)(C) and inserting ‘‘subsection (a)(2)(A)’’. 
(3) Section 333A(g)(1)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended 
by 
striking 
‘‘section 
310B(a)(1)’’ 
and 
inserting 
‘‘section 
310B(a)(2)(A)’’. 
(4) Section 381E(d)(3)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended 
by 
striking 
‘‘section 
310B(a)(1)’’ 
and 
inserting 
‘‘section 
310B(a)(2)(A)’’.
H. R. 2419—244 
SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS. 
(a) ELIGIBILITY.—Section 310B(e)(5) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1932(e)(5)) is amended— 
(1) in subparagraph (A), by striking ‘‘administering a 
nationally coordinated, regionally or State-wide operated 
project’’ and inserting ‘‘carrying out activities to promote and 
assist the development of cooperatively and mutually owned 
businesses’’; 
(2) in subparagraph (B), by inserting ‘‘to promote and assist 
the 
development 
of 
cooperatively 
and 
mutually 
owned 
businesses’’ before the semicolon; 
(3) by striking subparagraph (D); 
(4) by redesignating subparagraph (E) as subparagraph 
(D); 
(5) in subparagraph (D) (as so redesignated), by striking 
‘‘and’’ at the end; 
(6) by inserting after subparagraph (D) (as so redesignated) 
the following: 
‘‘(E) demonstrate a commitment to— 
‘‘(i) networking with and sharing the results of 
the efforts of the center with other cooperative develop-
ment centers and other organizations involved in rural 
economic development efforts; and 
‘‘(ii) developing multiorganization and multistate 
approaches to addressing the economic development 
and cooperative needs of rural areas; and’’; and 
(7) in subparagraph (F), by striking ‘‘providing greater 
than’’ and inserting ‘‘providing’’. 
(b) AUTHORITY TO AWARD MULTIYEAR GRANTS.—Section 310B(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(e)) is amended by striking paragraph (6) and inserting the 
following: 
‘‘(6) GRANT PERIOD.— 
‘‘(A) IN GENERAL.—A grant awarded to a center that 
has received no prior funding under this subsection shall 
be made for a period of 1 year. 
‘‘(B) MULTIYEAR GRANTS.—If the Secretary determines 
it to be in the best interest of the program, the Secretary 
shall award grants for a period of more than 1 year, but 
not more than 3 years, to a center that has successfully 
met the parameters described in paragraph (5), as deter-
mined by the Secretary.’’. 
(c) AUTHORITY
TO EXTEND GRANT PERIOD.—Section 310B(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(e)) is amended— 
(1) by redesignating paragraphs (7), (8), and (9) as para-
graphs (8), (9), and (12), respectively; and 
(2) by inserting after paragraph (6) the following: 
‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.—The Secretary 
may extend for 1 additional 12-month period the period in 
which a grantee may use a grant made under this subsection.’’. 
(d) COOPERATIVE RESEARCH PROGRAM.—Section 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) 
is amended by inserting after paragraph (9) (as redesignated by 
subsection (c)(1)) the following: 
‘‘(10) COOPERATIVE
RESEARCH
PROGRAM.—The Secretary 
shall enter into a cooperative research agreement with 1 or
H. R. 2419—245 
more qualified academic institutions in each fiscal year to con-
duct research on the effects of all types of cooperatives on 
the national economy.’’. 
(e) ADDRESSING NEEDS OF MINORITY COMMUNITIES.—Section 
310B(e) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(e)) is amended by inserting after paragraph (10) (as 
added by subsection (d)) the following: 
‘‘(11) ADDRESSING NEEDS OF MINORITY COMMUNITIES.— 
‘‘(A) DEFINITION OF SOCIALLY DISADVANTAGED GROUP.— 
In this paragraph, the term ‘socially disadvantaged group’ 
has the meaning given the term in section 355(e). 
‘‘(B) RESERVATION OF FUNDS.— 
‘‘(i) IN GENERAL.—If the total amount appropriated 
under paragraph (12) for a fiscal year exceeds 
$7,500,000, the Secretary shall reserve an amount 
equal to 20 percent of the total amount appropriated 
for grants for cooperative development centers, indi-
vidual cooperatives, or groups of cooperatives— 
‘‘(I) that serve socially disadvantaged groups; 
and 
‘‘(II) a majority of the boards of directors or 
governing boards of which are comprised of individ-
uals who are members of socially disadvantaged 
groups. 
‘‘(ii) INSUFFICIENT
APPLICATIONS.—To the extent 
there are insufficient applications to carry out clause 
(i), the Secretary shall use the funds as otherwise 
authorized by this subsection.’’. 
(f) AUTHORIZATION OF APPROPRIATIONS.—Paragraph (12) of sec-
tion 310B(e) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(e)) (as redesignated by subsection (c)(1)) is 
amended by striking ‘‘1996 through 2007’’ and inserting ‘‘2008 
through 2012’’. 
SEC. 6014. GRANTS TO BROADCASTING SYSTEMS. 
Section 310B(f)(3) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1932(f)(3)) is amended by striking ‘‘2002 through 
2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL 
FOOD PRODUCTS. 
Section 310B(g) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1932(g)) is amended by adding at the end 
the following: 
‘‘(9) LOCALLY
OR
REGIONALLY
PRODUCED
AGRICULTURAL 
FOOD PRODUCTS.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) LOCALLY OR REGIONALLY PRODUCED AGRICUL-
TURAL FOOD PRODUCT.—The term ‘locally or regionally 
produced agricultural food product’ means any agricul-
tural food product that is raised, produced, and distrib-
uted in— 
‘‘(I) the locality or region in which the final 
product is marketed, so that the total distance 
that the product is transported is less than 400 
miles from the origin of the product; or 
‘‘(II) the State in which the product is pro-
duced.
H. R. 2419—246 
‘‘(ii) UNDERSERVED COMMUNITY.—The term ‘under-
served community’ means a community (including an 
urban or rural community and an Indian tribal commu-
nity) that has, as determined by the Secretary— 
‘‘(I) limited access to affordable, healthy foods, 
including fresh fruits and vegetables, in grocery 
retail stores or farmer-to-consumer direct markets; 
and 
‘‘(II) a high rate of hunger or food insecurity 
or a high poverty rate. 
‘‘(B) LOAN AND LOAN GUARANTEE PROGRAM.— 
‘‘(i) IN
GENERAL.—The Secretary shall make or 
guarantee loans to individuals, cooperatives, coopera-
tive organizations, businesses, and other entities to 
establish and facilitate enterprises that process, dis-
tribute, aggregate, store, and market locally or region-
ally produced agricultural food products to support 
community development and farm and ranch income. 
‘‘(ii) REQUIREMENT.—The recipient of a loan or loan 
guarantee under clause (i) shall include in an appro-
priate agreement with retail and institutional facilities 
to which the recipient sells locally or regionally pro-
duced agricultural food products a requirement to 
inform consumers of the retail or institutional facilities 
that the consumers are purchasing or consuming 
locally or regionally produced agricultural food prod-
ucts. 
‘‘(iii) PRIORITY.—In making or guaranteeing a loan 
under clause (i), the Secretary shall give priority to 
projects that have components benefitting underserved 
communities. 
‘‘(iv) REPORTS.—Not later than 2 years after the 
date of enactment of this paragraph and annually 
thereafter, 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 that describes projects carried 
out using loans or loan guarantees made under clause 
(i), including— 
‘‘(I) the characteristics of the communities 
served; and 
‘‘(II) resulting benefits. 
‘‘(v) RESERVATION OF FUNDS.— 
‘‘(I) IN GENERAL.—For each of fiscal years 2008 
through 2012, the Secretary shall reserve not less 
than 5 percent of the funds made available to 
carry out this subsection to carry out this subpara-
graph. 
‘‘(II) AVAILABILITY OF FUNDS.—Funds reserved 
under subclause (I) for a fiscal year shall be 
reserved until April 1 of the fiscal year.’’. 
SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS. 
Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) is amended by adding at the end the following: 
‘‘(i) APPROPRIATE TECHNOLOGY TRANSFER
FOR RURAL AREAS 
PROGRAM.—
H. R. 2419—247 
‘‘(1) DEFINITION
OF
NATIONAL
NONPROFIT
AGRICULTURAL 
ASSISTANCE INSTITUTION.—In this subsection, the term ‘national 
nonprofit 
agricultural 
assistance 
institution’ 
means 
an 
organization that— 
‘‘(A) is described in section 501(c)(3) of the Internal 
Revenue Code of 1986 and exempt from taxation under 
501(a) of that Code; 
‘‘(B) has staff and offices in multiple regions of the 
United States; 
‘‘(C) has experience and expertise in operating national 
agriculture technical assistance programs; 
‘‘(D) expands markets for the agricultural commodities 
produced by producers through the use of practices that 
enhance the environment, natural resource base, and 
quality of life; and 
‘‘(E) improves the economic viability of agricultural 
operations. 
‘‘(2) ESTABLISHMENT.—The Secretary shall establish a 
national appropriate technology transfer for rural areas pro-
gram to assist agricultural producers that are seeking informa-
tion to— 
‘‘(A) reduce input costs; 
‘‘(B) conserve energy resources; 
‘‘(C) diversify operations through new energy crops and 
energy generation facilities; and 
‘‘(D) expand markets for agricultural commodities pro-
duced by the producers by using practices that enhance 
the environment, natural resource base, and quality of 
life. 
‘‘(3) IMPLEMENTATION.— 
‘‘(A) IN GENERAL.—The Secretary shall carry out the 
program under this subsection by making a grant to, or 
offering to enter into a cooperative agreement with, a 
national nonprofit agricultural assistance institution. 
‘‘(B) GRANT AMOUNT.—A grant made, or cooperative 
agreement entered into, under subparagraph (A) shall pro-
vide 100 percent of the cost of providing information 
described in paragraph (2). 
‘‘(4) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are 
authorized to be appropriated to carry out this subsection 
$5,000,000 for each of fiscal years 2008 through 2012.’’. 
SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 
Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) (as amended by section 6016) is amended 
by adding at the end the following: 
‘‘(j) RURAL ECONOMIC AREA PARTNERSHIP ZONES.—Effective 
beginning on the date of enactment of this subsection through 
September 30, 2012, the Secretary shall carry out those rural eco-
nomic area partnership zones administratively in effect on the 
date of enactment of this subsection in accordance with the terms 
and conditions contained in the memorandums of agreement entered 
into by the Secretary for the rural economic area partnership zones, 
except as otherwise provided in this subsection.’’.
H. R. 2419—248 
SEC. 6018. DEFINITIONS. 
(a) RURAL AREA.—Section 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
striking paragraph (13) and inserting the following: 
‘‘(13) RURAL AND RURAL AREA.— 
‘‘(A) IN
GENERAL.—Subject to subparagraphs (B) 
through (G), the terms ‘rural’ and ‘rural area’ mean any 
area other than— 
‘‘(i) a city or town that has a population of greater 
than 50,000 inhabitants; and 
‘‘(ii) any urbanized area contiguous and adjacent 
to a city or town described in clause (i). 
‘‘(B) WATER AND WASTE DISPOSAL GRANTS AND DIRECT 
AND GUARANTEED LOANS.—For the purpose of water and 
waste disposal grants and direct and guaranteed loans 
provided under paragraphs (1), (2), and (24) of section 
306(a), the terms ‘rural’ and ‘rural area’ mean a city, town, 
or unincorporated area that has a population of no more 
than 10,000 inhabitants. 
‘‘(C) COMMUNITY FACILITY LOANS AND GRANTS.—For the 
purpose of community facility direct and guaranteed loans 
and grants under paragraphs (1), (19), (20), (21), and (24) 
of section 306(a), the terms ‘rural’ and ‘rural area’ mean 
any area other than a city, town, or unincorporated area 
that has a population of greater than 20,000 inhabitants. 
‘‘(D) AREAS RURAL IN CHARACTER.— 
‘‘(i) APPLICATION.—This subparagraph applies to— 
‘‘(I) an urbanized area described in subpara-
graphs (A)(ii) and (F) that— 
‘‘(aa) has 2 points on its boundary that 
are at least 40 miles apart; and 
‘‘(bb) is not contiguous or adjacent to a 
city or town that has a population of greater 
than 150,000 inhabitants or an urbanized area 
of such city or town; and 
‘‘(II) an area within an urbanized area 
described in subparagraphs (A)(ii) and (F) that 
is within 1⁄4-mile of a rural area described in 
subparagraph (A). 
‘‘(ii) DETERMINATION.—Notwithstanding any other 
provision of this paragraph, on the petition of a unit 
of local government in an area described in clause 
(i) or on the initiative of the Under Secretary for Rural 
Development, the Under Secretary may determine that 
a part of an area described in clause (i) is a rural 
area for the purposes of this paragraph, if the Under 
Secretary finds that the part is rural in character, 
as determined by the Under Secretary. 
‘‘(iii) 
ADMINISTRATION.—In 
carrying 
out 
this 
subparagraph, the Under Secretary for Rural Develop-
ment shall— 
‘‘(I) not delegate the authority to carry out 
this subparagraph; 
‘‘(II) consult with the applicable rural develop-
ment State or regional director of the Department 
of Agriculture and the governor of the respective 
State;
H. R. 2419—249 
‘‘(III) provide to the petitioner an opportunity 
to appeal to the Under Secretary a determination 
made under this subparagraph; 
‘‘(IV) release to the public notice of a petition 
filed or initiative of the Under Secretary under 
this subparagraph not later than 30 days after 
receipt of the petition or the commencement of 
the initiative, as appropriate; 
‘‘(V) make a determination under this subpara-
graph not less than 15 days, and not more than 
60 days, after the release of the notice under sub-
clause (IV); 
‘‘(VI) submit to the Committee on Agriculture 
of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate an annual report on actions taken to carry 
out this subparagraph; and 
‘‘(VII) terminate a determination under this 
subparagraph that part of an area is a rural area 
on the date that data is available for the next 
decennial census conducted under section 141(a) 
of title 13, United States Code. 
‘‘(E) EXCLUSIONS.—Notwithstanding any other provi-
sion of this paragraph, in determining which census blocks 
in an urbanized area are not in a rural area (as defined 
in this paragraph), the Secretary shall exclude any cluster 
of census blocks that would otherwise be considered not 
in a rural area only because the cluster is adjacent to 
not more than 2 census blocks that are otherwise consid-
ered not in a rural area under this paragraph. 
‘‘(F) URBAN AREA GROWTH.— 
‘‘(i) APPLICATION.—This subparagraph applies to— 
‘‘(I) any area that— 
‘‘(aa) is a collection of census blocks that 
are contiguous to each other; 
‘‘(bb) has a housing density that the Sec-
retary estimates is greater than 200 housing 
units per square mile; and 
‘‘(cc) is contiguous or adjacent to an 
existing boundary of a rural area; and 
‘‘(II) any urbanized area contiguous and adja-
cent to a city or town described in subparagraph 
(A)(i). 
‘‘(ii) ADJUSTMENTS.—The Secretary may, by regula-
tion only, consider— 
‘‘(I) an area described in clause (i)(I) not to 
be a rural area for purposes of subparagraphs 
(A) and (C); and 
‘‘(II) an area described in clause (i)(II) not 
to be a rural area for purposes of subparagraph 
(C). 
‘‘(iii) APPEALS.—A program applicant may appeal 
an estimate made under clause (i)(I) based on appro-
priate data for an area, as determined by the Secretary. 
‘‘(G) HAWAII AND PUERTO RICO.—Notwithstanding any 
other provision of this paragraph, within the areas of the 
County of Honolulu, Hawaii, and the Commonwealth of
H. R. 2419—250 
Puerto Rico, the Secretary may designate any part of the 
areas as a rural area if the Secretary determines that 
the part is not urban in character, other than any area 
included in the Honolulu Census Designated Place or the 
San Juan Census Designated Place.’’. 
(b) REPORT.—Not later than 2 years after the date of enactment 
of this Act, the Secretary shall prepare and submit to the Committee 
on Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
that— 
(1) assesses the various definitions of the term ‘‘rural’’ 
and ‘‘rural area’’ that are used with respect to programs 
administered by the Secretary; 
(2) describes the effects that the variations in those defini-
tions have on those programs; 
(3) make recommendations for ways to better target funds 
provided through rural development programs; and 
(4) determines the effect of the amendment made by sub-
section (a) on the level of rural development funding and partici-
pation in those programs in each State. 
SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP. 
Section 378 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008m) is amended— 
(1) in subsection (g)(1), by striking ‘‘2003 through 2007’’ 
and inserting ‘‘2008 through 2012’’; and 
(2) in subsection (h), by striking ‘‘the date that is 5 years 
after the date of enactment of this section’’ and inserting ‘‘Sep-
tember 30, 2012’’. 
SEC. 6020. HISTORIC BARN PRESERVATION. 
(a) GRANT PRIORITY.—Section 379A(c) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2008o(c)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraphs (A) and (B), by striking ‘‘a historic 
barn’’ each place it appears and inserting ‘‘historic barns’’; 
and 
(B) in subparagraph (C), by striking ‘‘on a historic 
barn’’ and inserting ‘‘on historic barns (including surveys)’’; 
(2) by redesignating paragraphs (3) and (4) as paragraphs 
(4) and (5), respectively; and 
(3) by inserting after paragraph (2) the following: 
‘‘(3) PRIORITY.—In making grants under this subsection, 
the Secretary shall give the highest priority to funding projects 
described in paragraph (2)(C).’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 379A(c)(5) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2008o(c)(5)) (as redesignated by subsection (a)(2)) is amended by 
striking ‘‘2002 through 2007’’ and inserting ‘‘2008 through 2012’’. 
SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS. 
Section 379B(d) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 2008p(d)) is amended by striking ‘‘2002 through 
2007’’ and inserting ‘‘2008 through 2012’’.
H. R. 2419—251 
SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 
given the term in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b). 
‘‘(2) MICROENTREPRENEUR.—The term ‘microentrepreneur’ 
means an owner and operator, or prospective owner and oper-
ator, of a rural microenterprise who is unable to obtain suffi-
cient training, technical assistance, or credit other than under 
this section, as determined by the Secretary. 
‘‘(3) MICROENTERPRISE DEVELOPMENT ORGANIZATION.—The 
term ‘microenterprise development organization’ means an 
organization that— 
‘‘(A) is— 
‘‘(i) a nonprofit entity; 
‘‘(ii) an Indian tribe, the tribal government of which 
certifies to the Secretary that— 
‘‘(I) no microenterprise development organiza-
tion serves the Indian tribe; and 
‘‘(II) no rural microentrepreneur assistance 
program exists under the jurisdiction of the Indian 
tribe; or 
‘‘(iii) a public institution of higher education; 
‘‘(B) provides training and technical assistance to rural 
microentrepreneurs; 
‘‘(C) facilitates access to capital or another service 
described in subsection (b) for rural microenterprises; and 
‘‘(D) has a demonstrated record of delivering services 
to rural microentrepreneurs, or an effective plan to develop 
a program to deliver services to rural microentrepreneurs, 
as determined by the Secretary. 
‘‘(4) MICROLOAN.—The term ‘microloan’ means a business 
loan of not more than $50,000 that is provided to a rural 
microenterprise. 
‘‘(5) PROGRAM.—The term ‘program’ means the rural micro-
entrepreneur assistance program established under subsection 
(b). 
‘‘(6) RURAL MICROENTERPRISE.—The term ‘rural microenter-
prise’ means— 
‘‘(A) a sole proprietorship located in a rural area; or 
‘‘(B) a business entity with not more than 10 full- 
time-equivalent employees located in a rural area. 
‘‘(b) RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall establish a rural 
microentrepreneur assistance program to provide loans and 
grants to support microentrepreneurs in the development and 
ongoing success of rural microenterprises. 
‘‘(2) PURPOSE.—The purpose of the program is to provide 
microentrepreneurs with— 
‘‘(A) the skills necessary to establish new rural micro-
enterprises; and
H. R. 2419—252 
‘‘(B) continuing technical and financial assistance 
related to the successful operation of rural microenter-
prises. 
‘‘(3) LOANS.— 
‘‘(A) IN GENERAL.—The Secretary shall make loans to 
microenterprise development organizations for the purpose 
of providing fixed interest rate microloans to microentre-
preneurs for startup and growing rural microenterprises. 
‘‘(B) LOAN TERMS.—A loan made by the Secretary to 
a microenterprise development organization under this 
paragraph shall— 
‘‘(i) be for a term not to exceed 20 years; and 
‘‘(ii) bear an annual interest rate of at least 1 
percent. 
‘‘(C) LOAN LOSS RESERVE FUND.—The Secretary shall 
require each microenterprise development organization 
that receives a loan under this paragraph to— 
‘‘(i) establish a loan loss reserve fund; and 
‘‘(ii) maintain the reserve fund in an amount equal 
to at least 5 percent of the outstanding balance of 
such loans owed by the microenterprise development 
organization, until all obligations owed to the Secretary 
under this paragraph are repaid. 
‘‘(D) DEFERRAL OF INTEREST AND PRINCIPAL.—The Sec-
retary may permit the deferral of payments on principal 
and interest due on a loan to a microenterprise develop-
ment organization made under this paragraph for a 2- 
year period beginning on the date the loan is made. 
‘‘(4) GRANTS.— 
‘‘(A) GRANTS
TO
SUPPORT
RURAL
MICROENTERPRISE 
DEVELOPMENT.— 
‘‘(i) IN GENERAL.—The Secretary shall make grants 
to microenterprise development organizations to— 
‘‘(I) provide training, operational support, busi-
ness planning, and market development assist-
ance, and other related services to rural micro-
entrepreneurs; and 
‘‘(II) carry out such other projects and activi-
ties as the Secretary determines appropriate to 
further the purposes of the program. 
‘‘(ii) SELECTION.—In making grants under clause 
(i), the Secretary shall— 
‘‘(I) place an emphasis on microenterprise 
development organizations that serve microentre-
preneurs that are located in rural areas that have 
suffered significant outward migration, as deter-
mined by the Secretary; and 
‘‘(II) ensure, to the maximum extent prac-
ticable, that grant recipients include microenter-
prise development organizations— 
‘‘(aa) of varying sizes; and 
‘‘(bb) that serve racially and ethnically 
diverse populations. 
‘‘(B) GRANTS TO ASSIST MICROENTREPRENEURS.—
H. R. 2419—253 
‘‘(i) IN GENERAL.—The Secretary shall make grants 
to microenterprise development organizations to pro-
vide marketing, management, and other technical 
assistance to microentrepreneurs that— 
‘‘(I) received a loan from the microenterprise 
development organization under paragraph (3); or 
‘‘(II) are seeking a loan from the microenter-
prise development organization under paragraph 
(3). 
‘‘(ii) MAXIMUM AMOUNT OF GRANT.—A microenter-
prise development organization shall be eligible to 
receive an annual grant under this subparagraph in 
an amount equal to not more than 25 percent of the 
total outstanding balance of microloans made by the 
microenterprise development organization under para-
graph (3), as of the date the grant is awarded. 
‘‘(C) ADMINISTRATIVE
EXPENSES.—Not more than 10 
percent of a grant received by a microenterprise develop-
ment organization for a fiscal year under this paragraph 
may be used to pay administrative expenses. 
‘‘(c) ADMINISTRATION.— 
‘‘(1) COST SHARE.— 
‘‘(A) FEDERAL
SHARE.—Subject to subparagraph (B), 
the Federal share of the cost of a project funded under 
this section shall not exceed 75 percent. 
‘‘(B) MATCHING REQUIREMENT.—As a condition of any 
grant made under this subparagraph, the Secretary shall 
require the microenterprise development organization to 
match not less than 15 percent of the total amount of 
the grant in the form of matching funds, indirect costs, 
or in-kind goods or services. 
‘‘(C) FORM OF NON-FEDERAL SHARE.—The non-Federal 
share of the cost of a project funded under this section 
may be provided— 
‘‘(i) in cash (including through fees, grants 
(including community development block grants), and 
gifts); or 
‘‘(ii) in the form of in-kind contributions. 
‘‘(2) OVERSIGHT.—At a minimum, not later than December 
1 of each fiscal year, a microenterprise development organiza-
tion that receives a loan or grant under this section shall 
provide to the Secretary such information as the Secretary 
may require to ensure that assistance provided under this 
section is used for the purposes for which the loan or grant 
was made. 
‘‘(d) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary shall use to carry out this 
section, to remain available until expended— 
‘‘(A) $4,000,000 for each of fiscal years 2009 through 
2011; and 
‘‘(B) $3,000,000 for fiscal year 2012. 
‘‘(2) DISCRETIONARY
FUNDING.—In addition to amounts 
made available under paragraph (1), there are authorized to 
be appropriated to carry out this section $40,000,000 for each 
of fiscal years 2009 through 2012.’’.
H. R. 2419—254 
SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES 
FOR INDIVIDUALS WITH DISABILITIES IN RURAL AREAS. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is amended 
by adding at the end the following: 
‘‘SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNI-
TIES FOR INDIVIDUALS WITH DISABILITIES IN RURAL 
AREAS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) INDIVIDUAL WITH A DISABILITY.—The term ‘individual 
with a disability’ means an individual with a disability (as 
defined in section 3 of the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12102)). 
‘‘(2) INDIVIDUALS WITH DISABILITIES.—The term ‘individuals 
with disabilities’ means more than 1 individual with a dis-
ability. 
‘‘(b) GRANTS.—The Secretary shall make grants to nonprofit 
organizations, or to a consortium of nonprofit organizations, to 
expand and enhance employment opportunities for individuals with 
disabilities in rural areas. 
‘‘(c) ELIGIBILITY.—To be eligible to receive a grant under this 
section, a nonprofit organization or consortium of nonprofit 
organizations shall have— 
‘‘(1) a significant focus on serving the needs of individuals 
with disabilities; 
‘‘(2) demonstrated knowledge and expertise in— 
‘‘(A) employment of individuals with disabilities; and 
‘‘(B) advising private entities on accessibility issues 
involving individuals with disabilities; 
‘‘(3) expertise in removing barriers to employment for 
individuals with disabilities, including access to transportation, 
assistive technology, and other accommodations; and 
‘‘(4) existing relationships with national organizations 
focused primarily on the needs of rural areas. 
‘‘(d) USES.—A grant received under this section may be used 
only to expand or enhance— 
‘‘(1) employment opportunities for individuals with disabil-
ities in rural areas by developing national technical assistance 
and education resources to assist small businesses in a rural 
area to recruit, hire, accommodate, and employ individuals 
with disabilities; and 
‘‘(2) self-employment and entrepreneurship opportunities 
for individuals with disabilities in a rural area. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $2,000,000 for each 
of fiscal years 2008 through 2012.’’. 
SEC. 6024. HEALTH CARE SERVICES. 
Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023) is amended 
by adding at the end the following:
H. R. 2419—255 
‘‘SEC. 379G. HEALTH CARE SERVICES. 
‘‘(a) PURPOSE.—The purpose of this section is to address the 
continued unmet health needs in the Delta region through coopera-
tion among health care professionals, institutions of higher edu-
cation, research institutions, and other individuals and entities 
in the region. 
‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 
‘eligible entity’ means a consortium of regional institutions of higher 
education, academic health and research institutes, and economic 
development entities located in the Delta region that have experi-
ence in addressing the health care issues in the region. 
‘‘(c) GRANTS.—To carry out the purpose described in subsection 
(a), the Secretary may award a grant to an eligible entity for 
– 
‘‘(1) the development of – 
‘‘(A) health care services; 
‘‘(B) health education programs; and 
‘‘(C) health care job training programs; and 
‘‘(2) the development and expansion of public health-related 
facilities in the Delta region to address longstanding and unmet 
health needs of the region. 
‘‘(d) USE.—As a condition of the receipt of the grant, the eligible 
entity shall use the grant to fund projects and activities described 
in subsection (c), based on input solicited from local governments, 
public health care providers, and other entities in the Delta region. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary to carry out this section, 
$3,000,000 for each of fiscal years 2008 through 2012.’’. 
SEC. 6025. DELTA REGIONAL AUTHORITY. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section 382M(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009aa–12(a)) is amended by striking ‘‘2001 through 2007’’ and 
inserting ‘‘2008 through 2012’’. 
(b) TERMINATION OF AUTHORITY.—Section 382N of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 2009aa–13) is 
amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
(c) EXPANSION.—Section 4(2) of the Delta Development Act 
(42 U.S.C. 3121 note; Public Law 100–460) is amended— 
(1) in subparagraph (D), by inserting ‘‘Beauregard, 
Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red 
River, St. Mary, Vermillion, Webster,’’ after ‘‘St. James,’’; and 
(2) in subparagraph (E)— 
(A) by inserting ‘‘Jasper,’’ after ‘‘Copiah,’’; and 
(B) by inserting ‘‘Smith,’’ after ‘‘Simpson,’’. 
SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY. 
(a) DEFINITION OF REGION.—Section 383A(4) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009bb(4)) is amended 
by inserting ‘‘Missouri (other than counties included in the Delta 
Regional Authority),’’ after ‘‘Minnesota,’’. 
(b) ESTABLISHMENT.—Section 383B of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009bb–1) is amended— 
(1) in subsection (a), by adding at the end the following: 
‘‘(4) FAILURE TO CONFIRM.— 
‘‘(A) FEDERAL
MEMBER.—Notwithstanding any other 
provision of this section, if a Federal member described
H. R. 2419—256 
in paragraph (2)(A) has not been confirmed by the Senate 
by not later than 180 days after the date of enactment 
of this paragraph, the Authority may organize and operate 
without the Federal member. 
‘‘(B) INDIAN CHAIRPERSON.—In the case of the Indian 
Chairperson, if no Indian Chairperson is confirmed by the 
Senate, the regional authority shall consult and coordinate 
with the leaders of Indian tribes in the region concerning 
the activities of the Authority, as appropriate.’’; 
(2) in subsection (d)— 
(A) in paragraph (1), by striking ‘‘to establish priorities 
and’’ and inserting ‘‘for multistate cooperation to advance 
the economic and social well-being of the region and to’’; 
(B) in paragraph (3), by striking ‘‘local development 
districts,’’ and inserting ‘‘regional and local development 
districts or organizations, regional boards established under 
subtitle I,’’; 
(C) in paragraph (4), by striking ‘‘cooperation;’’ and 
inserting ‘‘cooperation for— 
‘‘(i) renewable energy development and trans-
mission; 
‘‘(ii) transportation planning and economic develop-
ment; 
‘‘(iii) information technology; 
‘‘(iv) movement of freight and individuals within 
the region; 
‘‘(v) federally-funded research at institutions of 
higher education; and 
‘‘(vi) conservation land management;’’; 
(D) by striking paragraph (6) and inserting the fol-
lowing: 
‘‘(6) enhance the capacity of, and provide support for, 
multistate development and research organizations, local 
development organizations and districts, and resource conserva-
tion districts in the region;’’; and 
(E) in paragraph (7), by inserting ‘‘renewable energy,’’ 
after ‘‘commercial,’’. 
(3) in subsection (f)(2), by striking ‘‘the Federal cochair-
person’’ and inserting ‘‘a cochairperson’’; 
(4) in subsection (g)(1), by striking subparagraphs (A) 
through (C) and inserting the following: 
‘‘(A) for each of fiscal years 2008 and 2009, 100 percent; 
‘‘(B) for fiscal year 2010, 75 percent; and 
‘‘(C) for fiscal year 2011 and each fiscal year thereafter, 
50 percent.’’. 
(c) INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND 
EFFICIENCY.— 
(1) IN GENERAL.—Subtitle G of the Consolidated Farm and 
Rural Development Act is amended— 
(A) by redesignating sections 383C through 383N (7 
U.S.C. 2009bb–2 through 2009bb–13) as sections 383D 
through 383O, respectively; and 
(B) by inserting after section 383B (7 U.S.C. 2009bb– 
1) the following:
H. R. 2419—257 
‘‘SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPOR-
TUNITY AND EFFICIENCY. 
‘‘(a) IN GENERAL.—The Authority shall provide assistance to 
States in developing regional plans to address multistate economic 
issues, including plans— 
‘‘(1) to develop a regional transmission system for move-
ment of renewable energy to markets outside the region; 
‘‘(2) to address regional transportation concerns, including 
the establishment of a Northern Great Plains Regional 
Transportation Working Group; 
‘‘(3) to encourage and support interstate collaboration on 
federally-funded research that is in the national interest; and 
‘‘(4) to establish a Regional Working Group on Agriculture 
Development and Transportation. 
‘‘(b) ECONOMIC
ISSUES.—The multistate economic issues 
referred to in subsection (a) shall include— 
‘‘(1) renewable energy development and transmission; 
‘‘(2) transportation planning and economic development; 
‘‘(3) information technology; 
‘‘(4) movement of freight and individuals within the region; 
‘‘(5) federally-funded research at institutions of higher edu-
cation; and 
‘‘(6) conservation land management.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 383B(c)(3)(B) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009bb–1(c)(3)(B)) is 
amended by striking ‘‘383I’’ and inserting ‘‘383J’’. 
(B) Section 383D(a) of the Consolidated Farm and 
Rural Development Act (as redesignated by paragraph 
(1)(A)) is amended by striking ‘‘383I’’ and inserting ‘‘383J’’. 
(C) Section 383E of the Consolidated Farm and Rural 
Development Act (as so redesignated) is amended— 
(i) in subsection (b)(1), by striking ‘‘383F(b)’’ and 
inserting ‘‘383G(b)’’; and 
(ii) in subsection (c)(2)(A), by striking ‘‘383I’’ and 
inserting ‘‘383J’’. 
(D) Section 383G of the Consolidated Farm and Rural 
Development Act (as so redesignated) is amended— 
(i) in subsection (b)— 
(I) in paragraph (1), by striking ‘‘383M’’ and 
inserting ‘‘383N’’; and 
(II) in paragraph (2), by striking ‘‘383D(b)’’ 
and inserting ‘‘383E(b)’’; 
(ii) in subsection (c)(2)(A), by striking ‘‘383E(b)’’ 
and inserting ‘‘383F(b)’’; and 
(iii) in subsection (d)— 
(I) by striking ‘‘383M’’ and inserting ‘‘383N’’; 
and 
(II) by striking ‘‘383C(a)’’ and inserting 
‘‘383D(a)’’. 
(E) Section 383J(c)(2) of the Consolidated Farm and 
Rural Development Act (as so redesignated) is amended 
by striking ‘‘383H’’ and inserting ‘‘383I’’. 
(d) ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.—Sec-
tion 383D of the Consolidated Farm and Rural Development Act 
(as redesignated by subsection (c)(1)(A)) is amended— 
(1) in subsection (a)—
H. R. 2419—258 
(A) in paragraph (1), by striking ‘‘transportation and 
telecommunication’’ and inserting ‘‘transportation, renew-
able energy transmission, and telecommunication’’; and 
(B) by redesignating paragraphs (1) and (2) as para-
graphs (2) and (1), respectively, and moving those para-
graphs so as to appear in numerical order; and 
(2) in subsection (b)(2), by striking ‘‘the activities in the 
following order or priority’’ and inserting ‘‘the following activi-
ties’’. 
(e) SUPPLEMENTS
TO
FEDERAL
GRANT
PROGRAMS.—Section 
383E(a) of the Consolidated Farm and Rural Development Act 
(as redesignated by subsection (c)(1)(A)) is amended by striking 
‘‘, including local development districts,’’. 
(f) MULTISTATE
AND
LOCAL
DEVELOPMENT
DISTRICTS
AND 
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.—Section 383F 
of the Consolidated Farm and Rural Development Act (as redesig-
nated by subsection (c)(1)(A)) is amended— 
(1) by striking the section heading and inserting 
‘‘MULTISTATE
AND
LOCAL
DEVELOPMENT
DISTRICTS
AND 
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.’’; and 
(2) by striking subsections (a) through (c) and inserting 
the following: 
‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVELOPMENT DIS-
TRICT OR ORGANIZATION.—In this section, the term ‘multistate and 
local development district or organization’ means an entity— 
‘‘(1) that— 
‘‘(A) is a planning district in existence on the date 
of enactment of this subtitle that is recognized by the 
Economic Development Administration of the Department 
of Commerce; or 
‘‘(B) is— 
‘‘(i) organized and operated in a manner that 
ensures broad-based community participation and an 
effective opportunity for other nonprofit groups to con-
tribute to the development and implementation of pro-
grams in the region; 
‘‘(ii) a nonprofit incorporated body organized or 
chartered under the law of the State in which the 
entity is located; 
‘‘(iii) a nonprofit agency or instrumentality of a 
State or local government; 
‘‘(iv) a public organization established before the 
date of enactment of this subtitle under State law 
for creation of multijurisdictional, area-wide planning 
organizations; 
‘‘(v) a nonprofit agency or instrumentality of a 
State that was established for the purpose of assisting 
with multistate cooperation; or 
‘‘(vi) a nonprofit association or combination of 
bodies, agencies, and instrumentalities described in 
clauses (ii) through (v); and 
‘‘(2) that has not, as certified by the Authority (in consulta-
tion with the Federal cochairperson or Secretary, as appro-
priate)— 
‘‘(A) inappropriately used Federal grant funds from 
any Federal source; or
H. R. 2419—259 
‘‘(B) appointed an officer who, during the period in 
which another entity inappropriately used Federal grant 
funds from any Federal source, was an officer of the other 
entity. 
‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL DEVELOP-
MENT DISTRICTS AND ORGANIZATIONS.— 
‘‘(1) IN
GENERAL.—The Authority may make grants for 
administrative expenses under this section to multistate, local, 
and regional development districts and organizations. 
‘‘(2) CONDITIONS FOR GRANTS.— 
‘‘(A) MAXIMUM
AMOUNT.—The amount of any grant 
awarded under paragraph (1) shall not exceed 80 percent 
of the administrative expenses of the multistate, local, or 
regional development district or organization receiving the 
grant. 
‘‘(B) MAXIMUM PERIOD.—No grant described in para-
graph (1) shall be awarded for a period greater than 3 
years. 
‘‘(3) LOCAL SHARE.—The contributions of a multistate, local, 
or regional development district or organization for administra-
tive expenses may be in cash or in kind, fairly evaluated, 
including space, equipment, and services. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
a local development district shall operate as a lead organization 
serving multicounty areas in the region at the local level. 
‘‘(2) DESIGNATION.—The Federal cochairperson may des-
ignate an Indian tribe or multijurisdictional organization to 
serve as a lead organization in such cases as the Federal 
cochairperson or Secretary, as appropriate, determines appro-
priate.’’. 
(g) DISTRESSED COUNTIES
AND AREAS
AND NONDISTRESSED 
COUNTIES.—Section 383G of the Consolidated Farm and Rural 
Development Act (as redesignated by subsection (c)(1)(A)) is 
amended— 
(1) in subsection (b)(1), by striking ‘‘75’’ and inserting ‘‘50’’; 
(2) by striking subsection (c); 
(3) by redesignating subsection (d) as subsection (c); and 
(4) in subsection (c) (as so redesignated)— 
(A) in the subsection heading, by inserting ‘‘RENEW-
ABLE ENERGY,’’ after‘‘TELECOMMUNICATION’’; and 
(B) by inserting ‘‘, renewable energy,’’ after ‘‘tele-
communication,’’. 
(h) DEVELOPMENT PLANNING PROCESS.—Section 383H of the 
Consolidated Farm and Rural Development Act (as redesignated 
by subsection (c)(1)(A)) is amended— 
(1) in subsection (c)(1), by striking subparagraph (A) and 
inserting the following: 
‘‘(A) multistate, regional, and local development dis-
tricts and organizations; and’’; and 
(2) in subsection (d)(1), by striking ‘‘State and local develop-
ment districts’’ and inserting ‘‘multistate, regional, and local 
development districts and organizations’’. 
(i) PROGRAM DEVELOPMENT CRITERIA.—Section 383I(a)(1) of the 
Consolidated Farm and Rural Development Act (as redesignated 
by subsection (c)(1)(A)) is amended by inserting ‘‘multistate or’’ 
before ‘‘regional’’.
H. R. 2419—260 
(j) AUTHORIZATION OF APPROPRIATIONS.—Section 383N(a) of the 
Consolidated Farm and Rural Development Act (as redesignated 
by subsection (c)(1)(A)) is amended by striking ‘‘2002 through 2007’’ 
and inserting ‘‘2008 through 2012’’. 
(k) TERMINATION OF AUTHORITY.—Section 383O of the Consoli-
dated Farm and Rural Development Act (as redesignated by sub-
section (c)(1)(A)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM. 
(a) ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.—Sec-
tion 384F(b)(3)(A) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009cc–5(b)(3)(A)) is amended by striking ‘‘In the 
event’’ and inserting the following: 
‘‘(i) AUTHORITY TO PREPAY.—A debenture may be 
prepaid at any time without penalty. 
‘‘(ii) REDUCTION OF GUARANTEE.—Subject to clause 
(i), if’’. 
(b) FEES.—Section 384G of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009cc–6) is amended— 
(1) in subsection (a), by striking ‘‘such fees as the Secretary 
considers appropriate’’ and inserting ‘‘a fee that does not exceed 
$500’’; 
(2) in subsection (b), by striking ‘‘approved by the Sec-
retary’’ and inserting ‘‘that does not exceed $500’’; and 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘The’’ and inserting 
‘‘Except as provided in paragraph (3), the’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking ‘‘and’’ at the 
end; 
(ii) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(iii) by adding at the end the following: 
‘‘(C) shall not exceed $500 for any fee collected under 
this subsection.’’; and 
(C) by adding at the end the following: 
‘‘(3) PROHIBITION ON COLLECTION OF CERTAIN FEES.—In the 
case of a license described in paragraph (1) that was approved 
before July 1, 2007, the Secretary shall not collect any fees 
due on or after the date of enactment of this paragraph.’’. 
(c) RURAL BUSINESS INVESTMENT COMPANIES.—Section 384I(c) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009cc–8(c)) is amended— 
(1) by redesignating paragraph (3) as paragraph (4); and 
(2) by inserting after paragraph (2) the following: 
‘‘(3) TIME FRAME.—Each rural business investment com-
pany shall have a period of 2 years to meet the capital require-
ments of this subsection.’’. 
(d) FINANCIAL INSTITUTION INVESTMENTS.—Section 384J of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc– 
9) is amended— 
(1) in subsection (a)(1), by inserting ‘‘, including an invest-
ment pool created entirely by such bank or savings association’’ 
before the period at the end; and 
(2) in subsection (c), by striking ‘‘15’’ and inserting ‘‘25’’.
H. R. 2419—261 
(e) CONTRACTING OF FUNCTIONS.—Section 384Q of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 2009cc–16) is 
repealed. 
(f) FUNDING.—The Consolidated Farm and Rural Development 
Act is amended by striking section 384S (7 U.S.C. 2009cc–18) and 
inserting the following: 
‘‘SEC. 384S. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There is authorized to be appropriated to carry out this subtitle 
$50,000,000 for the period of fiscal years 2008 through 2012.’’. 
SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM. 
Subtitle I of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2009dd et seq.) is amended to read as follows: 
‘‘Subtitle I—Rural Collaborative 
Investment Program 
‘‘SEC. 385A. PURPOSE. 
‘‘The purpose of this subtitle is to establish a regional rural 
collaborative investment program— 
‘‘(1) to provide rural regions with a flexible investment 
vehicle, allowing for local control with Federal oversight, assist-
ance, and accountability; 
‘‘(2) to provide rural regions with incentives and resources 
to develop and implement comprehensive strategies for 
achieving regional competitiveness, innovation, and prosperity; 
‘‘(3) to foster multisector community and economic develop-
ment collaborations that will optimize the asset-based competi-
tive advantages of rural regions with particular emphasis on 
innovation, entrepreneurship, and the creation of quality jobs; 
‘‘(4) to foster collaborations necessary to provide the profes-
sional technical expertise, institutional capacity, and economies 
of scale that are essential for the long-term competitiveness 
of rural regions; and 
‘‘(5) to better use Department of Agriculture and other 
Federal, State, and local governmental resources, and to lever-
age those resources with private, nonprofit, and philanthropic 
investments, in order to achieve measurable community and 
economic prosperity, growth, and sustainability. 
‘‘SEC. 385B. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) BENCHMARK.—The term ‘benchmark’ means an annual 
set of goals and performance measures established for the 
purpose of assessing performance in meeting a regional invest-
ment strategy of a Regional Board. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning 
given the term in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b). 
‘‘(3) NATIONAL BOARD.—The term ‘National Board’ means 
the National Rural Investment Board established under section 
385C(c).
H. R. 2419—262 
‘‘(4) NATIONAL INSTITUTE.—The term ‘National Institute’ 
means the National Institute on Regional Rural Competitive-
ness 
and 
Entrepreneurship 
established 
under 
section 
385C(b)(2). 
‘‘(5) REGIONAL BOARD.—The term ‘Regional Board’ means 
a Regional Rural Investment Board described in section 
385D(a). 
‘‘(6) REGIONAL
INNOVATION
GRANT.—The term ‘regional 
innovation grant’ means a grant made by the Secretary to 
a certified Regional Board under section 385F. 
‘‘(7) REGIONAL INVESTMENT STRATEGY GRANT.—The term 
‘regional investment strategy grant’ means a grant made by 
the Secretary to a certified Regional Board under section 385E. 
‘‘(8) RURAL HERITAGE.— 
‘‘(A) IN
GENERAL.—The term ‘rural heritage’ means 
historic sites, structures, and districts. 
‘‘(B) INCLUSIONS.—The term ‘rural heritage’ includes 
historic rural downtown areas and main streets, neighbor-
hoods, farmsteads, scenic and historic trails, heritage areas, 
and historic landscapes. 
‘‘SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL 
COLLABORATIVE INVESTMENT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish a Rural 
Collaborative Investment Program to support comprehensive 
regional investment strategies for achieving rural competitiveness. 
‘‘(b) DUTIES OF SECRETARY.—In carrying out this subtitle, the 
Secretary shall— 
‘‘(1) appoint and provide administrative and program sup-
port to the National Board; 
‘‘(2) establish a national institute, to be known as the 
‘National Institute on Regional Rural Competitiveness and 
Entrepreneurship’, to provide technical assistance to the Sec-
retary and the National Board regarding regional competitive-
ness and rural entrepreneurship, including technical assistance 
for— 
‘‘(A) the development of rigorous analytic programs 
to assist Regional Boards in determining the challenges 
and opportunities that need to be addressed to receive 
the greatest regional competitive advantage; 
‘‘(B) the provision of support for best practices devel-
oped by the Regional Boards; 
‘‘(C) the establishment of programs to support the 
development of appropriate governance and leadership 
skills in the applicable regions; and 
‘‘(D) the evaluation of the progress and performance 
of the Regional Boards in achieving benchmarks estab-
lished in a regional investment strategy; 
‘‘(3) work with the National Board to develop a national 
rural investment plan that shall— 
‘‘(A) create a framework to encourage and support a 
more collaborative and targeted rural investment portfolio 
in the United States; 
‘‘(B) establish a Rural Philanthropic Initiative, to work 
with rural communities to create and enhance the pool 
of permanent philanthropic resources committed to rural 
community and economic development;
H. R. 2419—263 
‘‘(C) cooperate with the Regional Boards and State 
and local governments, organizations, and entities to 
ensure investment strategies are developed that take into 
consideration existing rural assets; and 
‘‘(D) encourage the organization of Regional Boards; 
‘‘(4) certify the eligibility of Regional Boards to receive 
regional investment strategy grants and regional innovation 
grants; 
‘‘(5) provide grants for Regional Boards to develop and 
implement regional investment strategies; 
‘‘(6) provide technical assistance to Regional Boards on 
issues, best practices, and emerging trends relating to rural 
development, in cooperation with the National Rural Invest-
ment Board; and 
‘‘(7) provide analytic and programmatic support for regional 
rural 
competitiveness 
through 
the 
National 
Institute, 
including— 
‘‘(A) programs to assist Regional Boards in determining 
the challenges and opportunities that must be addressed 
to receive the greatest regional competitive advantage; 
‘‘(B) support for best practices development by the 
regional investment boards; 
‘‘(C) programs to support the development of appro-
priate governance and leadership skills in the region; and 
‘‘(D) a review and evaluation of the performance of 
the Regional Boards (including progress in achieving bench-
marks established in a regional investment strategy) in 
an annual report submitted to— 
‘‘(i) the Committee on Agriculture of the House 
of Representatives; and 
‘‘(ii) the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
‘‘(c) NATIONAL RURAL INVESTMENT BOARD.—The Secretary shall 
establish within the Department of Agriculture a board to be known 
as the ‘National Rural Investment Board’. 
‘‘(d) DUTIES OF NATIONAL BOARD.—The National Board shall— 
‘‘(1) not later than 180 days after the date of establishment 
of the National Board, develop rules relating to the operation 
of the National Board; and 
‘‘(2) provide advice to— 
‘‘(A) the Secretary and subsequently review the design, 
development, and execution of the National Rural Invest-
ment Plan; 
‘‘(B) Regional Boards on issues, best practices, and 
emerging trends relating to rural development; and 
‘‘(C) the Secretary and the National Institute on the 
development and execution of the program under this sub-
title. 
‘‘(e) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The National Board shall consist of 14 
members appointed by the Secretary not later than 180 days 
after the date of enactment of the Food, Conservation, and 
Energy Act of 2008. 
‘‘(2) SUPERVISION.—The National Board shall be subject 
to the general supervision and direction of the Secretary. 
‘‘(3) SECTORS REPRESENTED.—The National Board shall con-
sist of representatives from each of—
H. R. 2419—264 
‘‘(A) nationally recognized entrepreneurship organiza-
tions; 
‘‘(B) regional strategy and development organizations; 
‘‘(C) community-based organizations; 
‘‘(D) elected members of local governments; 
‘‘(E) members of State legislatures; 
‘‘(F) primary, secondary, and higher education, job 
skills training, and workforce development institutions; 
‘‘(G) the rural philanthropic community; 
‘‘(H) financial, lending, venture capital, entrepreneur-
ship, and other related institutions; 
‘‘(I) private sector business organizations, including 
chambers of commerce and other for-profit business 
interests; 
‘‘(J) Indian tribes; and 
‘‘(K) cooperative organizations. 
‘‘(4) SELECTION OF MEMBERS.— 
‘‘(A) IN
GENERAL.—In selecting members of the 
National Board, the Secretary shall consider recommenda-
tions made by— 
‘‘(i) the chairman and ranking member of each 
of the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate; 
‘‘(ii) the Majority Leader and Minority Leader of 
the Senate; and 
‘‘(iii) the Speaker and Minority Leader of the House 
of Representatives. 
‘‘(B) EX-OFFICIO MEMBERS.—In consultation with the 
chairman and ranking member of each of the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate, the Secretary may appoint not more than 3 other 
officers or employees of the Executive Branch to serve 
as ex-officio, nonvoting members of the National Board. 
‘‘(5) TERM OF OFFICE.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
term of office of a member of the National Board appointed 
under paragraph (1)(A) shall be for a period of not more 
than 4 years. 
‘‘(B) STAGGERED TERMS.—The members of the National 
Board shall be appointed to serve staggered terms. 
‘‘(6) INITIAL APPOINTMENTS.—Not later than 1 year after 
the date of enactment of the Food, Conservation, and Energy 
Act of 2008, the Secretary shall appoint the initial members 
of the National Board. 
‘‘(7) VACANCIES.—A vacancy on the National Board shall 
be filled in the same manner as the original appointment. 
‘‘(8) COMPENSATION.—A member of the National Board 
shall receive no compensation for service on the National Board, 
but shall be reimbursed for related travel and other expenses 
incurred in carrying out the duties of the member of the 
National Board in accordance with section 5702 and 5703 of 
title 5, United States Code. 
‘‘(9) CHAIRPERSON.—The National Board shall select a 
chairperson from among the members of the National Board.