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‘‘(I) the producer shall forfeit all 
rights to receive payments under the 
contract; and 
‘‘(II) the producer shall refund all 
or a portion of the payments received 
by the producer under the contract, in-
cluding any interest on the payments, 
as determined by the Secretary; or 
‘‘(ii) if the Secretary determines that 
the violation does not warrant termination 
of the contract, the producer shall refund or 
accept adjustments to the payments pro-
vided to the producer, as the Secretary de-
termines to be appropriate; 
‘‘(F) include provisions in accordance with 
paragraphs (3) and (4) of this section; and 
‘‘(G) include any additional provisions the 
Secretary determines are necessary to carry out 
the program. 
‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT TO 
A CONTRACT.— 
‘‘(A) IN GENERAL.—At the time of applica-
tion, a producer shall have control of the eligible 
land to be enrolled in the program. Except as 
provided in subparagraph (B), a change in the
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interest of a producer in eligible land covered by 
a contract under the program shall result in the 
termination of the contract with regard to that 
land. 
‘‘(B) TRANSFER OF DUTIES AND RIGHTS.— 
Subparagraph (A) shall not apply if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in eligible 
land covered by a contract under the pro-
gram, the transferee of the land provides 
written notice to the Secretary that all du-
ties and rights under the contract have been 
transferred to, and assumed by, the trans-
feree for the portion of the land transferred; 
‘‘(ii) the transferee meets the eligibility 
requirements of the program; and 
‘‘(iii) the Secretary approves the trans-
fer of all duties and rights under the con-
tract. 
‘‘(4) MODIFICATION AND TERMINATION OF CON-
TRACTS.— 
‘‘(A) VOLUNTARY MODIFICATION OR TERMI-
NATION.—The Secretary may modify or termi-
nate a contract with a producer if—
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•HR 2642 EAH1S 
‘‘(i) the producer agrees to the modi-
fication or termination; and 
‘‘(ii) the Secretary determines that the 
modification or termination is in the public 
interest. 
‘‘(B) 
INVOLUNTARY
TERMINATION.—The 
Secretary may terminate a contract if the Sec-
retary determines that the producer violated the 
contract. 
‘‘(5) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of the 
program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments received and assess liquidated 
damages. 
‘‘(e) CONTRACT RENEWAL.—At the end of the initial 
5-year contract period, the Secretary may allow the pro-
ducer to renew the contract for 1 additional 5-year period 
if the producer— 
‘‘(1) demonstrates compliance with the terms of 
the initial contract;
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•HR 2642 EAH1S 
‘‘(2) agrees to adopt and continue to integrate 
conservation activities across the entire agricultural 
operation, as determined by the Secretary; and 
‘‘(3) agrees, by the end of the contract period— 
‘‘(A) to meet the stewardship threshold of at 
least two additional priority resource concerns 
on the agricultural operation; or 
‘‘(B) to exceed the stewardship threshold of 
two existing priority resource concerns that are 
specified by the Secretary in the initial contract. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation goals 
of a contract under the conservation stewardship program, 
the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, one of which shall occur in the 
first quarter of each fiscal year; 
‘‘(2) identify not less than 5 priority resource 
concerns in a particular watershed or other appro-
priate region or area within a State; and 
‘‘(3) establish a science-based stewardship thresh-
old for each priority resource concern identified under 
paragraph (2).
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‘‘(b) ALLOCATION TO STATES.—The Secretary shall al-
locate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible land to the total acreage of eligible land in all 
States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural pro-
duction in each State; 
‘‘(B) the degree to which implementation of 
the program in the State is, or will be, effective 
in helping producers address those needs; and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2013, and ending on 
September 30, 2021, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
8,695,000 acres for each fiscal year; and 
‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance,
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•HR 2642 EAH1S 
and any other expenses associated with enrollment or 
participation in the program. 
‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY
OF
PAYMENTS.—The Sec-
retary shall provide annual payments under the pro-
gram to compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the ag-
ricultural operation of the producer at the time 
the contract offer is accepted by the Secretary. 
‘‘(2) PAYMENT
AMOUNT.—The amount of the 
conservation stewardship annual payment shall be de-
termined by the Secretary and based, to the max-
imum extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer associ-
ated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected conservation benefits. 
‘‘(D) The extent to which priority resource 
concerns will be addressed through the installa-
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•HR 2642 EAH1S 
tion and adoption of conservation activities on 
the agricultural operation. 
‘‘(E) The level of stewardship in place at 
the time of application and maintained over the 
term of the contract. 
‘‘(F) The degree to which the conservation 
activities will be integrated across the entire ag-
ricultural operation for all applicable priority 
resource concerns over the term of the contract. 
‘‘(G) Such other factors as determined ap-
propriate by the Secretary. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the pro-
ducer. 
‘‘(4) DELIVERY OF PAYMENTS.—In making pay-
ments under this subsection, the Secretary shall, to 
the extent practicable— 
‘‘(A) prorate conservation performance over 
the term of the contract so as to accommodate,
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•HR 2642 EAH1S 
to the extent practicable, producers earning equal 
annual payments in each fiscal year; and 
‘‘(B) make payments as soon as practicable 
after October 1 of each fiscal year for activities 
carried out in the previous fiscal year. 
‘‘(e) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CON-
SERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY
OF
PAYMENTS.—The Sec-
retary shall provide additional payments to producers 
that, in participating in the program, agree to adopt 
or improve resource-conserving crop rotations to 
achieve beneficial crop rotations as appropriate for 
the eligible land of the producers. 
‘‘(2) BENEFICIAL
CROP
ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1) based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer shall 
agree to adopt and maintain beneficial resource-con-
serving crop rotations for the term of the contract.
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‘‘(4) RESOURCE-CONSERVING CROP ROTATION.— 
In this subsection, the term ‘resource-conserving crop 
rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource-conserving 
crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need for 
irrigation. 
‘‘(f) PAYMENT LIMITATIONS.—A person or legal entity 
may not receive, directly or indirectly, payments under the 
program that, in the aggregate, exceed $200,000 under all 
contracts entered into during fiscal years 2014 through 
2018, excluding funding arrangements with Indian tribes, 
regardless of the number of contracts entered into under the 
program by the person or legal entity. 
‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(h) 
COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent
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•HR 2642 EAH1S 
means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.) while participating in a contract under 
the program. 
‘‘(i) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (f); and 
‘‘(2) otherwise enable the Secretary to carry out 
the program.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2013. 
(c) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—The amendment made by this 
section shall not affect the validity or terms of any 
contract entered into by the Secretary of Agriculture 
under subchapter B of chapter 2 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 
3838d et seq.) before October 1, 2013, or any pay-
ments required to be made in connection with the 
contract. 
(2) CONSERVATION
STEWARDSHIP
PROGRAM.— 
Funds made available under section 1241(a)(4) of the
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•HR 2642 EAH1S 
Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) (as 
amended by section 2601(a) of this title) may be used 
to administer and make payments to program par-
ticipants that enrolled into contracts during any of 
fiscal years 2009 through 2013. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 2201. PURPOSES. 
Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and, in such subparagraph, by 
inserting ‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) developing and improving wildlife 
habitat; and’’; 
(2) in paragraph (4), by striking ‘‘; and’’ and 
inserting a period; and 
(3) by striking paragraph (5).
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•HR 2642 EAH1S 
SEC. 2202. ESTABLISHMENT AND ADMINISTRATION. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and in-
serting ‘‘2018’’; 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following new paragraph: 
‘‘(2) TERM.—A contract under the program shall 
have a term that does not exceed 10 years.’’; 
(3) in subsection (d)(4)— 
(A) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘, veteran farmer 
or rancher (as defined in section 2501(e) of the 
Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279(e))),’’ before ‘‘or a begin-
ning farmer or rancher’’; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) ADVANCE PAYMENTS.— 
‘‘(i) IN GENERAL.—Not more than 50 
percent of the amount determined under 
subparagraph (A) may be provided in ad-
vance for the purpose of purchasing mate-
rials or contracting. 
‘‘(ii) RETURN
OF
FUNDS.—If funds 
provided in advance are not expended dur-
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•HR 2642 EAH1S 
ing the 90-day period beginning on the date 
of receipt of the funds, the funds shall be re-
turned within a reasonable time frame, as 
determined by the Secretary.’’; 
(4) by striking subsection (f) and inserting the 
following new subsection: 
‘‘(f) ALLOCATION OF FUNDING.— 
‘‘(1) LIVESTOCK.—For each of fiscal years 2014 
through 2018, at least 60 percent of the funds made 
available for payments under the program shall be 
targeted at practices relating to livestock production. 
‘‘(2) WILDLIFE
HABITAT.—For each of fiscal 
years 2014 through 2018, 7.5 percent of the funds 
made available for payments under the program shall 
be targeted at practices benefitting wildlife habitat.’’; 
(5) in subsection (g)— 
(A) in the subsection heading, by striking 
‘‘FEDERALLY RECOGNIZED NATIVE AMERICAN 
INDIAN TRIBES AND ALASKA NATIVE CORPORA-
TIONS’’ and inserting ‘‘INDIAN TRIBES’’; 
(B) by striking ‘‘federally recognized Native 
American Indian Tribes and Alaska Native Cor-
porations (including their affiliated membership 
organizations)’’ and inserting ‘‘Indian tribes’’; 
and
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•HR 2642 EAH1S 
(C) by striking ‘‘or Native Corporation’’; 
and 
(6) by adding at the end the following: 
‘‘(j) WILDLIFE HABITAT INCENTIVE PRACTICE.—The 
Secretary shall provide payments to producers under the 
program for practices, including recurring practices for the 
term of the contract, that support the restoration, develop-
ment, protection, and improvement of wildlife habitat on 
eligible land, including— 
‘‘(1) upland wildlife habitat; 
‘‘(2) wetland wildlife habitat; 
‘‘(3) habitat for threatened and endangered spe-
cies; 
‘‘(4) fish habitat; 
‘‘(5) habitat on pivot corners and other irregular 
areas of a field; and 
‘‘(6) other types of wildlife habitat, as deter-
mined appropriate by the Secretary. 
‘‘(k) FUNDING FOR COMMUNITY IRRIGATION ASSOCIA-
TIONS.— 
‘‘(1) IN
GENERAL.—The Secretary may enter 
into an alternative funding arrangement with an eli-
gible irrigation association if the Secretary deter-
mines that—
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•HR 2642 EAH1S 
‘‘(A) the purposes of the program will be 
met by such an arrangement; and 
‘‘(B) statutory limitations regarding con-
tracts with individual producers will not be ex-
ceeded by any member of the irrigation associa-
tion. 
‘‘(2) ELIGIBLE
IRRIGATION
ASSOCIATIONS.—In 
this subsection, the term ‘eligible irrigation associa-
tion’ means an irrigation association that is— 
‘‘(A) comprised of producers; and 
‘‘(B) a local government entity, but does not 
have the authority to impose taxes or levies.’’. 
SEC. 2203. EVALUATION OF APPLICATIONS. 
Section 1240C(b) of the Food Security Act of 1985 (16 
U.S.C. 3839aa–3(b)) is amended— 
(1) in paragraph (1), by striking ‘‘environ-
mental’’ and inserting ‘‘conservation’’; and 
(2) in paragraph (3), by striking ‘‘purpose of the 
environmental quality incentives program specified in 
section 1240(1)’’ and inserting ‘‘purposes of the pro-
gram’’. 
SEC. 2204. DUTIES OF PRODUCERS. 
Section 1240D(2) of the Food Security Act of 1985 (16 
U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, ranch, 
or forest’’ and inserting ‘‘enrolled’’.
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SEC. 2205. LIMITATION ON PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 
U.S.C. 3839aa–7) is amended to read as follows: 
‘‘SEC. 1240G. LIMITATION ON PAYMENTS. 
‘‘A person or legal entity may not receive, directly or 
indirectly, cost-share or incentive payments under this 
chapter that, in aggregate, exceed $450,000 for all contracts 
entered into under this chapter by the person or legal entity 
during the period of fiscal years 2014 through 2018, regard-
less of the number of contracts entered into under this chap-
ter by the person or legal entity.’’. 
SEC. 2206. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D), by striking the 
period and inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) facilitate on-farm conservation re-
search and demonstration activities; and
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•HR 2642 EAH1S 
(2) in subsection (d), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Subject to subsection (l), the 
Secretary’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(l) PAYMENT EQUIVALENT
TO ADDITIONAL COV-
ERAGE.— 
‘‘(1) IN
GENERAL.—The Secretary shall make 
available to a producer eligible for noninsured assist-
ance under this section a payment equivalent to an 
indemnity for additional coverage under subsections 
(c) and (h) of section 508 of the Federal Crop Insur-
ance Act (7 U.S.C. 1508) that does not exceed 65 per-
cent of the established yield for the eligible crop on the 
farm, computed by multiplying— 
‘‘(A) the quantity that is not greater than 
65 percent of the established yield for the crop, 
as determined by the Secretary, specified in in-
crements of 5 percent; 
‘‘(B) 100 percent of the average market 
price for the crop, as determined by the Sec-
retary; and 
‘‘(C) a payment rate for the type of crop, as 
determined by the Secretary, that reflects—