146 
‘‘(B) MANDATORY
REVISIONS.—The revi-
sions required under subparagraph (A) shall in-
clude the following: 
‘‘(i) The elimination or adjustment of 
warehouse location differentials to reflect 
market conditions. 
‘‘(ii) The establishment of differentials 
for the various quality factors and staple 
lengths of cotton based on a three-year, 
weighted moving average of the weighted 
designated spot market regions as deter-
mined by regional production. 
‘‘(iii) The elimination of any artificial 
split in the premium or discount between 
upland cotton with a 32 or 33 staple length 
due to micronaire; 
‘‘(iv) A mechanism to ensure that no 
premium or discount is established that ex-
ceeds the premium or discount associated 
with a leaf grade that is one better than the 
applicable color grade. 
‘‘(C) DISCRETIONARY REVISIONS.—The revi-
sions under subparagraph (A) may include, at a 
minimum, the following: 
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147 
‘‘(i) The use of non-spot market price 
data, in addition to spot market price data, 
that would enhance the accuracy of the 
price information used in determining qual-
ity adjustments under this subsection. 
‘‘(ii) Adjustments in the premiums or 
discounts associated with upland cotton 
with a staple length of 33 or above due to 
micronaire with the goal of eliminating any 
unnecessary artificial splits in the calcula-
tions of such premiums or discounts. 
‘‘(iii) Such other adjustments deter-
mined appropriate by the Secretary, after 
consultations conducted in accordance with 
paragraph (3). 
‘‘(3) CONSULTATION WITH PRIVATE SECTOR.— 
‘‘(A) PRIOR TO REVISION.—Prior to imple-
menting any revisions to the administration of 
the marketing assistance loan program for up-
land cotton, the Secretary should endeavor to 
consult with an existing private sector committee 
whose membership includes representatives of the 
production, ginning, warehousing, cooperative, 
and merchandising segments of the United States 
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148 
cotton industry and that has developed rec-
ommendations concerning such revisions. 
‘‘(B) UPON REVIEW.—The Secretary shall 
also consult with the committee referred to in 
subparagraph (A) when conducting a review of 
adjustments in the operation of the loan program 
as provided in paragraph (4). 
‘‘(C) INAPPLICABILITY OF FEDERAL ADVI-
SORY
COMMITTEE
ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this paragraph with the 
committee referred to in subparagraph (A). 
‘‘(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton quality 
adjustments implemented pursuant to this subsection 
and may make further revisions to the administration 
of the loan program, by either revoking or revising the 
actions taken pursuant to paragraph (2)(B) or by re-
voking or revising any actions taken or authorized to 
be taken under paragraph (2)(B). 
‘‘(5) ADJUSTMENTS IN EFFECT PRIOR TO REVI-
SION.—The quality differences (premiums and dis-
counts for quality factors) applicable to the upland 
cotton loan program (prior to any revisions in ac-
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149 
cordance with this subsection) shall be established by 
the Secretary by giving equal weight— 
‘‘(A) to loan differences for the preceding 
crop; and 
‘‘(B) to market differences for such crop in 
the designated United States spot markets. 
‘‘(e) RICE LIMITATION.—With respect to long grain 
rice and medium and short grain rice, the Secretary shall 
not make adjustments in the loan rates for such commod-
ities, except for differences in grade and quality (including 
milling yields).’’. 
SEC. 1506. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES. 
Section 164 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7284) is amended by 
striking ‘‘Farm Security and Rural Investment Act of 
2002’’ each place it appears and inserting ‘‘Farm, Nutri-
tion, and Bioenergy Act of 2007’’. 
SEC. 1507. EXTENSION OF EXISTING ADMINISTRATIVE AU-
THORITY REGARDING LOANS. 
Section 166 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7286) is amended in 
subsections (a) and (c)(1) by striking ‘‘subtitle B and C 
of title I of the Farm Security and Rural Investment Act 
of 2002’’ each place it appears and inserting ‘‘subtitle B 
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150 
of title I of the Farm, Nutrition, and Bioenergy Act of 
2007’’. 
SEC. 1508. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)), relating to assignment of payments, shall apply 
to payments made under the authority of this title. 
(b) NOTICE.—The producer making the assignment, or 
the assignee, shall provide the Secretary with notice, in such 
manner as the Secretary may require, of any assignment 
made under this section. 
SEC. 1509. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment of 
this Act, the Secretary shall track the benefits provided, di-
rectly or indirectly, to individuals and entities under titles 
I and II and the amendments made by those titles. 
SEC. 1510. UPLAND COTTON STORAGE PAYMENTS. 
Beginning with the 2012 crop of upland cotton, the 
Secretary may not use the funds of the Commodity Credit 
Corporation to pay storage, handling, and other costs asso-
ciated with the storage of upland cotton for which a mar-
keting assistance loan is made under section 1201. 
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151 
SEC. 1511. GOVERNMENT PUBLICATION OF COTTON PRICE 
FORECASTS. 
Section 15 of the Agricultural Marketing Act (12 
U.S.C. 1141j) is amended by striking subsection (d). 
TITLE II—CONSERVATION 
Subtitle A—Conservation Programs of the Food Security Act of 1985 
Sec. 2101. Conservation reserve program. 
Sec. 2102. Wetlands reserve program. 
Sec. 2103. Conservation security program. 
Sec. 2104. Grassland reserve program. 
Sec. 2105. Environmental quality incentives program. 
Sec. 2106. Regional water enhancement program. 
Sec. 2107. Grassroots source water protection program. 
Sec. 2108. Conservation of private grazing land. 
Sec. 2109. Great Lakes basin program for soil erosion and sediment control. 
Sec. 2110. Farm and ranchland protection program. 
Sec. 2111. Farm viability program. 
Sec. 2112. Wildlife habitat incentive program. 
Subtitle B—Conservation Programs Under Other Laws 
Sec. 2201. Agricultural management assistance program. 
Sec. 2202. Resource Conservation and Development Program. 
Sec. 2203. Small watershed rehabilitation program. 
Subtitle C—Additional Conservation Programs 
Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control. 
Sec. 2302. Voluntary public access and habitat incentive program. 
Subtitle D—Administration and Funding 
Sec. 2401. Funding of conservation programs under Food Security Act of 1985. 
Sec. 2402. Improved provision of technical assistance under conservation pro-
grams. 
Sec. 2403. Cooperative conservation partnership initiative. 
Sec. 2404. Regional equity and flexibility. 
Sec. 2405. Administrative requirements for conservation programs. 
Sec. 2406. Annual report on participation by specialty crop producers in con-
servation programs. 
Sec. 2407. Promotion of market-based approaches to conservation. 
Sec. 2408. Establishment of State technical committees and their responsibilities. 
Sec. 2409. Payment limitations. 
Subtitle E—Miscellaneous Provisions 
Sec. 2501. Inclusion of income from affiliated packing and handling operations 
as income derived from farming for application of adjusted gross 
income limitation on eligibility for conservation programs. 
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152 
Sec. 2502. Encouragement of voluntary sustainability practices guidelines. 
Sec. 2503. Farmland resource information. 
Subtitle A—Conservation Programs 
of the Food Security Act of 1985 
SEC. 2101. CONSERVATION RESERVE PROGRAM. 
(a) AUTHORIZATION AND ELIGIBLE LAND.—Section 
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘2007’’ and inserting 
‘‘2012’’; and 
(B) by inserting before the period the fol-
lowing: ‘‘and to address issues raised by State, 
regional, and national conservation initiatives’’; 
and 
(2) in subsection (b)— 
(A) in paragraph (1)(B)— 
(i) by striking ‘‘the Farm Security and 
Rural Investment Act of 2002’’ and insert-
ing ‘‘the Farm, Nutrition, and Bioenergy 
Act of 2007’’; and 
(ii) by striking the period at the end 
and inserting a semicolon; and 
(B) in paragraph (4), by striking the semi-
colon at the end of subparagraph (E) and insert-
ing ‘‘; or’’. 
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153 
(b) MAXIMUM ENROLLMENT.—Section 1231(d) of the 
Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended 
by striking ‘‘2007’’ and inserting ‘‘2012’’. 
(c) CONSERVATION PRIORITY AREAS.—Section 1231(f) 
of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is 
amended by striking ‘‘the Chesapeake Bay Region (Pennsyl-
vania, Maryland, and Virginia)’’ and inserting ‘‘the Chesa-
peake Bay Region’’. 
(d) TREATMENT OF MULTI-YEAR GRASSES AND LEG-
UMES.—Subsection (g) of section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended to read as follows: 
‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 
‘‘(1) IN GENERAL.—For purposes of this sub-
chapter, alfalfa and other multi-year grasses and leg-
umes in a rotation practice, approved by the Sec-
retary, shall be considered agricultural commodities. 
‘‘(2) CROPPING HISTORY.—Alfalfa, when grown 
as part of a rotation practice, as determined by the 
Secretary, is an agricultural commodity subject to the 
cropping history criteria under subsection (b)(1)(B) 
for the purpose of determining whether highly erodible 
cropland has been planted or considered planted for 
4 of the 6 years referred to in such subsection.’’. 
(e) PILOT PROGRAM FOR ENROLLMENT OF WETLAND 
AND BUFFER ACREAGE IN CONSERVATION RESERVE.—Sec-
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154 
tion 1231(h)(1)(A) of the Food Security Act of 1985 (16 
U.S.C. 3831(h)(1)(A)) is amended by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
(f) 
MANAGED
HAYING
AND
GRAZING.—Section 
1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)(7)) is amended— 
(1) in subparagraph (A)— 
(A) by inserting ‘‘and prescribed grazing for 
the control of invasive species’’ after ‘‘biomass’’; 
and 
(B) by striking ‘‘and’’ at the end of the sub-
paragraph; 
(2) by redesignating subparagraph (B) as sub-
paragraph (D); and 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) managed grazing during the year, ex-
cept that in permitting such grazing, the Sec-
retary shall— 
‘‘(i) reduce the rental payment other-
wise payable under the contract by a per-
centage determined by the Secretary to be 
appropriate; and 
‘‘(ii) require a management plan, in-
cluding a grazing rate, approved by the 
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155 
Secretary that is consistent with section 
1231(a); 
‘‘(C) dryland crop production and grazing 
practices on acreage enrolled into the conserva-
tion reserve enhancement program announced on 
May 27, 1998 (63 Fed. Reg. 28965) where the 
conservation reserve enhancement program is 
initiated to address declining groundwater or 
surface water resources and water quality issues 
associated with declining groundwater or surface 
water resources and the conservation reserve en-
hancement contract requires the owner or oper-
ator to retire a water right, except that in per-
mitting dryland crop production and grazing, 
the Secretary shall— 
‘‘(i) develop an appropriate working 
lands conservation plan that implements 
conservation practices suitable to the region 
to address soil conservation, water quality, 
wildlife habitat, or other environmental 
benefits; 
‘‘(ii) apply the provisions of section 
11005 of the Farm, Nutrition, and Bio-
energy Act of 2007 in determining the eligi-
bility for crop insurance of dryland crop 
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156 
production and grazing activities allowed 
under a conservation reserve enhancement 
contract for the purposes of this section, 
dryland crop production and grazing ac-
tivities allowed under a conservation reserve 
enhancement contract shall be considered 
‘noncropland’ in applying the provisions of 
section 11005 of the Farm, Nutrition, and 
Bioenergy Act of 2007; 
‘‘(iii) reduce the rental payment other-
wise payable under the contract by an 
amount commensurate with the economic 
value of the crop production or grazing ac-
tivity, while still leaving sufficient financial 
incentives for the owner or operator to par-
ticipate in the conservation reserve enhance-
ment; and 
‘‘(iv) at the request of a State that has 
previously entered into a conservation re-
serve enhancement program agreement, re-
negotiate the agreement to allow for the 
dryland crop production and grazing in ac-
cordance with this section; and’’. 
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157 
(g) RENTAL RATES.—Section 1234(c) of the Food Se-
curity Act of 1985 (16 U.S.C. 3834(c)) is amended by add-
ing at the end the following new paragraph: 
‘‘(5) COUNTY AVERAGE MARKET DRY-LAND AND 
IRRIGATED CASH RENTAL RATES.— 
‘‘(A) ANNUAL ESTIMATES.—Beginning not 
later than one year after the date of the enact-
ment of the Farm, Nutrition, and Bioenergy Act 
of 2007, the National Agricultural Statistics 
Service shall conduct an annual survey of per 
acre estimates of county average market dry-land 
and irrigated cash rental rates for cropland and 
pastureland in all counties or equivalent sub-
divisions within each State with 20,000 acres or 
more of cropland and pastureland. 
‘‘(B) 
PUBLIC
AVAILABILITY
OF
ESTI-
MATES.— The estimates derived as a result of the 
annual survey conducted under subparagraph 
(A) shall be maintained on a website of the De-
partment of Agriculture for use by the general 
public. 
‘‘(C) FUNDING.—Funds to conduct the an-
nual survey required by subparagraph (A) shall 
come from funds made available for the conserva-
tion reserve program under this subchapter.’’. 
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158 
(h) CONSERVATION RESERVE PROGRAM TRANSITION 
INCENTIVES.—Section 1235 of the Food Security Act of 
1985 (16 U.S.C. 3835) is amended— 
(1) in subsection (c)(1)(B)— 
(A) in clause (ii), by striking ‘‘or’’ at the 
end; 
(B) by redesignating clause (iii) as clause 
(iv); and 
(C) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) to facilitate a transition of land 
subject to the contract from a retired or re-
tiring owner or operator to a beginning 
farmer or rancher, socially disadvantaged 
farmer or rancher, or limited resource farm-
er or rancher for the purpose of returning 
some or all of the land into production 
using sustainable grazing or crop produc-
tion methods; or’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.— 
‘‘(1) DUTIES OF THE SECRETARY.—In the case 
of a contract modification approved in order to facili-
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159 
tate the transfer of land subject to a contract from a 
retired or retiring owner or operator under subsection 
(c)(1)(B)(iii) to a beginning farmer or rancher, so-
cially disadvantaged farmer or rancher, or limited re-
source farmer or rancher (in this subsection referred 
to as a ‘covered farmer or rancher’) the Secretary 
shall— 
‘‘(A) beginning on the date that is 1 year 
before the date of termination of the contract— 
‘‘(i) allow the covered farmer or ranch-
er, in conjunction with the retired or retir-
ing owner or operator, to make conservation 
and land improvements; and 
‘‘(ii) allow the covered farmer or 
rancher, at the election of the covered farm-
er or rancher, to begin the certification 
process under the Organic Foods Production 
Act of 1990 (7 U.S.C. 6501 et seq.); 
‘‘(B) beginning on the date of termination 
of the contract, require the retired or retiring 
owner or operator to sell or lease (under a long- 
term lease or a lease with an option to purchase) 
to the covered farmer or rancher the land subject 
to the contract for production purposes; 
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160 
‘‘(C) require the covered farmer or rancher 
to develop and implement a comprehensive con-
servation plan that meets such sustainability cri-
teria as the Secretary may establish; 
‘‘(D) provide to the covered farmer or 
rancher an opportunity to enroll in the conserva-
tion security program or the environmental 
quality incentives program by not later than the 
date on which the farmer or rancher takes pos-
session of the land through ownership or lease; 
and 
‘‘(E) continue to make annual payments to 
the retired or retiring owner or operator for not 
more than an additional 2 years after the date 
of termination of the contract, if the retired or 
retiring owner or operator is not a family mem-
ber (as defined in section 1001A(b)(3)(B) of this 
Act) of the covered farmer or rancher. 
‘‘(2) REENROLLMENT.—The Secretary shall pro-
vide to a beginning farmer or rancher, socially dis-
advantaged farmer or rancher, or limited resource 
farmer or rancher described in paragraph (1) the op-
tion to reenroll any applicable partial field conserva-
tion practice that is— 
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161 
‘‘(A) eligible for enrollment under the con-
tinuous 
signup 
requirement 
of 
section 
1231(h)(4)(B); and 
‘‘(B) part of an approved comprehensive 
conservation plan.’’. 
(i) EARLY TERMINATION.—Section 1235(e)(1) of the 
Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is amend-
ed by striking ‘‘before January 1, 1995,’’. 
SEC. 2102. WETLANDS RESERVE PROGRAM. 
(a) ESTABLISHMENT AND PURPOSE.—Subsection (a) 
of section 1237 of the Food Security Act of 1985 (16 U.S.C. 
3837) is amended to read as follows: 
‘‘(a) ESTABLISHMENT AND PURPOSES.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a wetlands reserve program to assist owners of 
eligible lands in restoring and protecting wetlands. 
‘‘(2) PURPOSES.—The purposes of the wetlands 
reserve program are— 
‘‘(A) to restore, to create, to protect, or to 
enhance wetlands on lands that are eligible 
under subsections (c) and (d); and 
‘‘(B) to authorize the Secretary, at the sole 
discretion of the Secretary, to purchase flood- 
plain easements.’’. 
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162 
(b) MAXIMUM ENROLLMENT.—Section 1237(b) of the 
Food Security Act of 1985 (16 U.S.C. 3837(b)) is amend-
ed— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) MAXIMUM ENROLLMENT.—The total number 
of acres enrolled in the wetlands reserve program shall 
not exceed 3,605,000 acres.’’; and 
(2) by adding at the end the following new para-
graphs: 
‘‘(3) ANNUAL ENROLLMENT GOAL.—Of the total 
number of acres authorized by paragraph (1), to the 
maximum extent practicable, the Secretary shall en-
roll 250,000 acres in each fiscal year. 
‘‘(4) FLOOD-PLAIN EASEMENTS.—Of the acres to 
be enrolled each fiscal year, not more than 10,000 
acres may be enrolled using flood-plain easements.’’. 
(c) ELIGIBLE LANDS.—Subsection (c) of section 1237 
of the Food Security Act of 1985 (16 U.S.C. 3837) is 
amended to read as follows: 
‘‘(c) ELIGIBILITY.—For purposes of enrolling land into 
the wetland reserve program established under this sub-
chapter during the 2008 through 2012 fiscal years, land 
shall be eligible to be placed into such reserve if the Sec-
retary determines that— 
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163 
‘‘(1) in the case of wetlands— 
‘‘(A) the land maximizes wetland values 
and functions and wildlife benefits; 
‘‘(B) the land is farmed wetland or con-
verted wetland, together with adjacent lands that 
are functionally dependent on such wetlands, ex-
cept that converted wetlands where the conver-
sion was not commenced prior to December 23, 
1985, shall not be eligible to be enrolled in the 
program under this section; 
‘‘(C) the likelihood of the successful restora-
tion of such land, and the resultant wetland val-
ues, merit inclusion of the land into the program 
taking into consideration the cost of such restora-
tion; and 
‘‘(D) the land consists of riparian areas, in-
cluding areas that link wetlands that are pro-
tected by easements or some other device or cir-
cumstance that achieves the same purpose as an 
easement; or 
‘‘(2) in the case of flood-plain lands— 
‘‘(A) the flood-plain land has been damaged 
by flooding at least once within the previous cal-
endar year, or has been subject to flood damage 
at least twice within the previous 10 years; or 
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164 
‘‘(B) the enrollment of other land within the 
flood plain would contribute to the restoration of 
the flood storage and flow or erosion control.’’. 
(d) INELIGIBLE LANDS.—Subsection (e) of section 
1237 of the Food Security Act of 1985 (16 U.S.C. 3837) 
is amended to read as follows: 
‘‘(e) INELIGIBLE LAND.—The Secretary may not ac-
quire easements on— 
‘‘(1) in the case of wetlands— 
‘‘(A) land that contains timber stands es-
tablished under the conservation reserve under 
subchapter B; or 
‘‘(B) pasture land established to trees under 
the conservation reserve under subchapter B; or 
‘‘(2) in the case of flood-plain lands— 
‘‘(A) land on which implementation of res-
toration practices would not be productive; or 
‘‘(B) land that is subject to an existing ease-
ment or deed restriction, and the easement or 
deed provides sufficient protection or restoration 
of the flood plain’s functions and values, as de-
termined by the Secretary.’’. 
(e) EASEMENTS AND AGREEMENTS.—Section 1237A of 
the Food Security Act of 1985 (16 U.S.C. 3837a) is amend-
ed— 
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165 
(1) in subsection (a)(2), by inserting ‘‘if applica-
ble,’’ after ‘‘(2)’’; 
(2) in subsection (b)— 
(A) in the matter before paragraph (1), by 
inserting ‘‘or flood-plain land’’ after ‘‘values of 
wetland’’; 
(B) in paragraph (1)(B), by inserting ‘‘or 
flood-plain land’’ after ‘‘wetland’’; and 
(C) in paragraph (3), by inserting ‘‘or 
flood-plain lands’’ after ‘‘wetlands’’; 
(3) in subsection (f)— 
(A) by striking ‘‘Compensation for’’ in the 
first sentence and inserting the following: 
‘‘(1) COMPENSATION PROVIDED; AMOUNT.—Com-
pensation for’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) METHOD
FOR
DETERMINATION
OF
FAIR 
MARKET VALUE.—The Secretary shall determine the 
fair market value of land under paragraph (1) based 
on the option specified in subparagraph (A), (B), (C), 
or (D) that results in the lowest amount of compensa-
tion to be paid by the Secretary: 
‘‘(A) A percentage of the fair market value 
based on the Uniform Standards for Professional 
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Appraisals Procedures, as determined by the Sec-
retary. 
‘‘(B) A percentage of the market value deter-
mined by an area wide market survey. 
‘‘(C) A geographic cap, prescribed in regu-
lations issued by the Secretary. 
‘‘(D) The offer made by the owner of the 
land.’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(h) ACCEPTANCE
OF
CONTRIBUTIONS.—The Sec-
retary may accept and use contributions of non-Federal 
funds to administer the program under this subchapter.’’. 
(f) DUTIES OF THE SECRETARY.—Section 1237C of 
the Food Security Act of 1985 (16 U.S.C. 3837c) is amend-
ed— 
(1) in subsection (a)(1)— 
(A) by inserting ‘‘including necessary 
maitenance activities,’’ after ‘‘values,’’; and 
(B) by inserting ‘‘or flood plains land’’ 
after ‘‘wetland’’; and 
(2) by striking subsection (c) and inserting the 
following new subsection: 
‘‘(c) RANKING OF OFFERS.— 
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‘‘(1) IN GENERAL.—When evaluating offers from 
landowners, the Secretary may consider— 
‘‘(A) the conservation benefits of obtaining 
an easement or other interest in the land; 
‘‘(B) the cost-effectiveness of each easement 
or other interest in eligible land, so as to maxi-
mize the environmental benefits per dollar ex-
pended; and 
‘‘(C) whether the landowner or another per-
son is offering to contribute financially to the 
cost of the easement or other interest in the land 
to leverage Federal funds. 
‘‘(2) CONSERVATION BENEFITS.—In determining 
the acceptability of easement offers, the Secretary may 
take into consideration— 
‘‘(A) in the case of wetlands— 
‘‘(i) the extent to which the purposes of 
the easement program would be achieved on 
the land; 
‘‘(ii) the productivity of the land; and 
‘‘(iii) the on-farm and off-farm envi-
ronmental threats if the land is used for the 
production of agricultural commodities; and 
‘‘(B) in the case of flood-plain lands— 
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‘‘(i) the extent to which the purposes of 
the easement program would be achieved on 
the land; 
‘‘(ii) whether the land has been repeat-
edly flooded over the last ten years; 
‘‘(iii) the extent to which an easement 
on the flood-plain land would contribute to 
the restoration or management of land in 
the area surrounding the flood-plain land; 
and 
‘‘(iv) other factors, as determined by 
the Secretary.’’. 
(g) WETLANDS RESERVE ENHANCEMENT.—Section 
1237D(c) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)) is amended by striking paragraph (4) and insert-
ing the following new paragraph: 
‘‘(4) WETLANDS RESERVE ENHANCEMENT.— 
‘‘(A) IN GENERAL.—The provisions of this 
subchapter that limit payments to any person, 
and section 1305(d) of the Agricultural Rec-
onciliation Act of 1987 (Public Law 100–203; 7 
U.S.C. 1308 note), shall not apply to payments 
received by a State, political subdivision, or 
agency thereof in connection with agreements en-
tered into under a special wetlands reserve en-
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hancement program carried out by that entity 
that has been approved by the Secretary. 
‘‘(B) AGREEMENTS.—The Secretary may 
enter into agreements with States (including po-
litical subdivisions and agencies of States) re-
garding payments described in subparagraph 
(A) that the Secretary determines will advance 
the purposes of this subchapter.’’. 
(h) AUTHORIZATION.—The Food Security Act of 1985 
is amended by inserting after section 1237F (16 U.S.C. 
3837f) the following new section: 
‘‘SEC. 1237G. PERIOD OF AUTHORIZATION. 
‘‘This subchapter is authorized to be carried out for 
the 2008 through 2012 fiscal years.’’. 
SEC. 2103. CONSERVATION SECURITY PROGRAM. 
(a) ESTABLISHMENT OF NEW CONSERVATION SECU-
RITY PROGRAM THROUGH 2017.—Subchapter A of chapter 
2 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3838 et seq.) is amended to read as follows: 
‘‘Subchapter A—Conservation Security 
Program 
‘‘SEC. 1238. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) BEGINNING
FARMER
OR
RANCHER.—The 
term ‘beginning farmer or rancher’ has the meaning 
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given the term under section 343(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1991(a)). 
‘‘(2) CONSERVATION PLAN.—The term ‘conserva-
tion plan’ means a plan that— 
‘‘(A) identifies resources of concern, inven-
tories resources, and establishes benchmark data 
and stewardship enhancement objectives; 
‘‘(B) describes improvements that will en-
able the producer to meet and exceed the steward-
ship threshold for all applicable resources of con-
cern; and 
‘‘(C) contains a schedule and evaluation 
plan for the planning, installing, maintaining, 
and managing new conservation practices, ac-
tivities, and management measures and main-
taining, managing, and improving existing con-
servation practices, activities, and management 
measures. 
‘‘(3) CONSERVATION PRACTICE.—The term ‘con-
servation practice’ means a site-specific land manage-
ment practice or activity, or a supporting structural 
practice, that is part of an implemented management 
system designed to address a priority resource of con-
cern. 
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‘‘(4) CONSERVATION SECURITY CONTRACT.—The 
term ‘conservation security contract’ means a con-
tract entered into under this subchapter. 
‘‘(5) CONSERVATION SECURITY PROGRAM.—The 
term ‘conservation security program’ means the pro-
gram established under section 1238A(a). 
‘‘(6) MANAGEMENT
INTENSITY.— The term 
‘management intensity’ means the degree, scope, and 
comprehensiveness of conservation practices, activi-
ties, or management measures taken by a producer to 
address a priority resource of concern to a level ex-
ceeding the stewardship threshold. 
‘‘(7) NONDEGRADATION
STANDARD.—The term 
‘nondegradation standard’ means the level of natural 
resource conservation and environmental management 
measures required to improve and sustain the status 
and condition of natural and environmental resources 
to a level that, as determined by the Secretary— 
‘‘(A) prevents impairment of soil, water, 
and air quality and the quality of fish and wild-
life habitat; and 
‘‘(B) sustains the long-term productivity of 
agricultural resources. 
‘‘(8) PRIORITY
RESOURCE
OF
CONCERN.—The 
term ‘priority resource of concern’ means a resource 
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of concern identified by the Secretary, consistent with 
the requirements of section 1238C(a), that must be 
addressed by participants in the conservation security 
program in a particular watershed or other area 
within that State. 
‘‘(9) PRODUCER.—The term ‘producer’ means an 
owner, operator, landlord, tenant, or sharecropper 
that–— 
‘‘(A) shares in the risk of producing any 
crop or livestock; and 
‘‘(B) is entitled to share in the crop or live-
stock available for marketing from a farm (or 
would have shared had the crop or livestock been 
produced). 
‘‘(10) RESOURCE-SPECIFIC
INDEX.—The term 
‘resource-specific index’ means an index of manage-
ment intensity or other similar index, developed by 
the Secretary, that estimates the expected level of re-
source and environmental outcomes of the conserva-
tion practices, activities, and management measures 
employed by a producer. 
‘‘(11) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term under sec-
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tion 355(e) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2003(e)). 
‘‘(12) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means a site-specific, constructed con-
servation practice that is integrated with and essen-
tial to the successful implementation of the system of 
land management practices and activities that are the 
basis of a conservation security contract. 
‘‘SEC. 1238A. CONSERVATION SECURITY PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary 
shall establish, and for each of fiscal years 2012 through 
2017, carry out a conservation security program to assist 
producers in improving environmental quality by address-
ing priority resources of concern in a comprehensive man-
ner. 
‘‘(b) ELIGIBLE PRODUCERS.—To be eligible to partici-
pate in the conservation security program, a producer 
shall— 
‘‘(1) demonstrate that the producer is addressing 
at least one priority resource of concern to a min-
imum level of management intensity determined by 
the Secretary; and 
‘‘(2) develop and submit to the Secretary, and 
obtain the approval of the Secretary of, a conserva-
tion offer. 
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‘‘(c) ELIGIBLE LAND.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), private agricultural land (including crop-
land, grassland, prairie land, improved pasture land, 
forest land and rangeland) and land under the juris-
diction of an Indian tribe (as defined by the Sec-
retary) shall be eligible for enrollment in the con-
servation security program. 
‘‘(2) EXCLUSIONS.— 
‘‘(A) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Except as provided in sub-
section (f)(3)(A), the following lands are not eli-
gible for enrollment in the conservation security 
program: 
‘‘(i) Lands enrolled in the conservation 
reserve program under subchapter B of 
chapter 1. 
‘‘(ii) Land enrolled in the wetlands re-
serve program established under subchapter 
C of chapter 1. 
‘‘(iii) Land enrolled in the grassland 
reserve program established under sub-
chapter C of chapter 2. 
‘‘(B) CONVERSION
TO
CROPLAND.—Land 
used for crop production after October 1, 2011, 
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that had not been planted, considered to be 
planted, or devoted to crop production for at 
least 4 of the 6 years preceding that date (except 
for land enrolled in the conservation reserve pro-
gram or that has been maintained using long- 
term crop rotation practices, as determined by 
the Secretary) shall not be the basis for any pay-
ment under the conservation security program. 
‘‘(d) ECONOMIC USES.—With respect to eligible land 
covered by a conservation security contract, the Secretary 
shall permit economic uses of the land that— 
‘‘(1) maintain the agricultural nature of the 
land; and 
‘‘(2) are consistent with the conservation pur-
poses of the conservation security program. 
‘‘(e) CONSERVATION SECURITY CONTRACTS.— 
‘‘(1) IN GENERAL.—After a determination that a 
producer is eligible for the conservation security pro-
gram, and on approval of the conservation offer of the 
producer, the Secretary shall enter into a conservation 
security contract with the producer to enroll the land 
to be covered by the contract in the conservation secu-
rity program. 
‘‘(2) TERM.—A conservation security contract 
shall be for a term of 5 years. 
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‘‘(3) AGRICULTURAL OPERATION.—All the acres 
of the agricultural operation that are under the pro-
ducer’s effective control at the time the producer en-
ters into a conservation security contract shall be cov-
ered by the conservation security contract. 
‘‘(4) PROVISIONS.—The conservation security 
contract of a producer shall— 
‘‘(A) include a conservation plan approved 
by the Secretary; 
‘‘(B) describe the land covered by the con-
servation security contract; 
‘‘(C) state the amount of the stewardship 
enhancement payment the Secretary agrees to 
make to the producer each year of the conserva-
tion security contract under section 1238C(c); 
‘‘(D) describe the new conservation practices 
and activities the producer is required to imple-
ment during the term of the conservation secu-
rity contract in order to increase the level of 
management intensity with which the producer 
addresses a priority resource of concern or pri-
ority resources of concern, as designated by the 
Secretary under section 1238C(a)(1); and 
‘‘(E) include such other provisions as the 
Secretary determines necessary to ensure the con-
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servation purposes of the conservation security 
program are met. 
‘‘(5) ON-FARM RESEARCH AND DEMONSTRATION 
OR PILOT TESTING.—The Secretary may approve a 
conservation security contract that includes— 
‘‘(A) on-farm conservation research and 
demonstration activities; and 
‘‘(B) pilot testing of new technologies or in-
novative conservation practices. 
‘‘(f) MODIFICATION.—The Secretary may allow a pro-
ducer to modify a conservation security contract before the 
expiration of the contract if the Secretary determines that 
failure to modify the contract would significantly interfere 
with achieving the purposes of the conservation security 
program. 
‘‘(g) CONTRACT TERMINATION.— 
‘‘(1) VOLUNTARY
TERMINATION.—A producer 
may terminate a conservation security contract if the 
Secretary determines that termination of the contract 
would not defeat the purposes of the conservation plan 
of the producer. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under this sub-
chapter if the Secretary determines that the producer 
violated the contract. 
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‘‘(3) TRANSFER
OR
CHANGE
OF
INTEREST
IN 
LAND
SUBJECT
TO
CONSERVATION
SECURITY
CON-
TRACT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the transfer, or change in the 
interest, of a producer in land subject to a con-
servation security contract shall result in the ter-
mination of the conservation security contract. 
‘‘(B) TRANSFER OF DUTIES AND RIGHTS.— 
Subparagraph (A) shall not apply if, within a 
reasonable period of time after the date of the 
transfer or change in the interest in land, the 
transferee of the land provides written notice to 
the Secretary that all duties and rights under the 
conservation security contract have been trans-
ferred to, and assumed by, the transferee. The 
Secretary shall specify what will be considered a 
reasonable period of time for purposes of pro-
viding the notification required by this subpara-
graph. 
‘‘(h) CONTRACT RENEWAL.—At the end of an initial 
conservation security contract of a producer, the Secretary 
may allow the producer to renew the contract for one addi-
tional five-year period if the producer— 
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‘‘(1) demonstrates compliance with the terms of 
the existing contract, including a demonstration that 
the producer has complied with the schedule for the 
implementation of new practices and activities in-
cluded in the conservation security contract and has 
met the stated goals for increasing the level of man-
agement intensity with which the producer is address-
ing the designated priority resource of concern or pri-
ority resources of concern; and 
‘‘(2) agrees to implement and maintain such ad-
ditional new conservation practices and activities as 
the Secretary determines necessary and feasible to 
achieve higher levels of management intensity with 
which the producer addresses the designated priority 
resource of concern or priority resources of concern. 
‘‘(i) EFFECT
OF
NONCOMPLIANCE
DUE
TO
CIR-
CUMSTANCES BEYOND THE CONTROL OF PRODUCERS.—The 
Secretary shall include in the conservation security contract 
a provision to ensure that a producer shall not be considered 
in violation of a conservation security contract for failure 
to comply with the conservation security contract due to 
circumstances beyond the control of the producer, including 
a disaster or related condition, as determined by the Sec-
retary. 
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‘‘(j) EVALUATION OF OFFERS.—In evaluating applica-
tions by producers to enroll in the conservation security 
program, the Secretary shall— 
‘‘(1) consider the extent to which the anticipated 
environmental benefits from the contract are provided 
at least cost relative to other similar activities; 
‘‘(2) consider the extent to which the producer 
proposes to increase the level of performance on appli-
cable resource-specific indices or the level of manage-
ment intensity with which the producer addresses the 
designated priority resources of concern; 
‘‘(3) consider the extent to which the environ-
mental benefits expected to result from the contract 
complements other conservation efforts in the water-
shed or region; 
‘‘(4) consider the multiple benefits of conserva-
tion-based farming systems, including resource-con-
servation crop rotations, managed rotational grazing, 
and the adoption of certified production under the 
national organic production program under the Or-
ganic Foods Production Act of 1990 (7 U.S.C. 6501 
et. seq.); and 
‘‘(5) develop any additional criteria for evalu-
ating applications that the Secretary determines are 
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necessary to ensure that national, State, and local 
conservation priorities are effectively addressed. 
‘‘(k) 
COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—Within 90 days after the date of the enactment 
of the Farm, Nutrition, and Bioenergy Act of 2007, the Sec-
retary shall establish a transparent and producer-friendly 
means by which producers may coordinate and simulta-
neously certify eligibly under a conservation security con-
tract and under the national organic production program 
established under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et. seq.). 
‘‘SEC. 1238B. DUTIES OF PRODUCERS. 
‘‘(a) AGREEMENT BY PRODUCER.—Under a conserva-
tion security contract, a producer shall agree— 
‘‘(1) to implement during the term of the con-
servation security contract the conservation plan ap-
proved by the Secretary; 
‘‘(2) to maintain, and make available to the Sec-
retary at such times as the Secretary may request, 
appropriate records showing the effective and timely 
implementation of the conservation security contract; 
and 
‘‘(3) not to engage in any activity during the 
term of the conservation security contract that would 
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interfere with the purposes of the conservation secu-
rity program. 
‘‘(b) EFFECT OF VIOLATION.—On the violation of a 
term or condition of the conservation security contract of 
a producer— 
‘‘(1) if the Secretary determines that the viola-
tion warrants termination of the conservation secu-
rity contract, the producer shall— 
‘‘(A) forfeit all rights to receive payments 
under the conservation security contract; and 
‘‘(B) refund to the Secretary all or a por-
tion of the payments received by the producer 
under the conservation security contract, includ-
ing any advance payments and interest on the 
payments, as determined by the Secretary; 
‘‘(2) if the Secretary determines that the viola-
tion does not warrant termination of the conservation 
security contract, the producer shall refund to the 
Secretary, or accept adjustments to, the payments 
provided to the producer, as the Secretary determines 
to be appropriate; or 
‘‘(3) some combination of the remedies author-
ized by paragraphs (1) and (2), as determined by the 
Secretary to be appropriate. 
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‘‘SEC. 1238C. DUTIES OF THE SECRETARY. 
‘‘(a) IDENTIFICATION OF PRIORITY RESOURCES OF 
CONCERN.— 
‘‘(1) IDENTIFICATION
AT
STATE
LEVEL.—The 
Secretary shall ensure that the identification of pri-
ority resources of concern is made at the State level 
so that each priority resource of concern— 
‘‘(A) represents a significant environmental 
concern, including watershed management or 
wildlife habitat, in the State to which agricul-
tural activities are contributing; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation 
practices and other activities by producers. 
‘‘(2) LIMITATION.—The Secretary shall identify 
not more than 5 resources of concern as priority re-
sources of concern in a particular watershed or other 
appropriate region or area within a State. 
‘‘(3) ADVICE
AND
CONSULTATION.—The Sec-
retary, with the advice of the appropriate State tech-
nical committee and in consultation with Federal and 
State agencies with expertise related to natural re-
sources and environmental quality, shall designate, to 
the extent practicable, each priority resource of con-
cern identified under paragraph (1) as either a pri-
mary, secondary, or tertiary resource of concern. 
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‘‘(b) DEVELOPMENT
OF RESOURCE-SPECIFIC INDI-
CES.—The Secretary shall develop resource-specific indices 
to measure the management intensity with which specific 
resources of concern are addressed, for purposes of deter-
mining eligibility and payments for participants in the 
conservation security program. 
‘‘(c) STEWARDSHIP ENHANCEMENT PAYMENT.— 
‘‘(1) TIMING OF PAYMENT.—The Secretary shall 
make a payment under a conservation security con-
tract as soon as practicable after October 1 of each 
fiscal year. 
‘‘(2) 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 practices and activities 
for which there is no net cost or loss of income 
to the producer, as determined by the Secretary. 
‘‘(3) AVAILABILITY
OF
PAYMENTS.—The Sec-
retary shall provide a stewardship enhancement pay-
ment to a producer under a conservation security 
contract to compensate the producer for— 
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‘‘(A) ongoing implementation and mainte-
nance of conservation practices, activities, and 
management measures in place on the producers 
operation at the time the conservation security 
contract is accepted; and 
‘‘(B) installation and adoption of new con-
servation practices, activities, and management 
measures or improvements to conservation prac-
tices, activities, and management measures in 
place on the producer’s operation, as required by 
the conservation security contract. 
‘‘(4) PAYMENT
AMOUNT.—The amount of the 
stewardship enhancement payment shall be deter-
mined by the Secretary and shall be based, to the 
maximum extent feasible, on— 
‘‘(A) a portion of the actual costs incurred 
by the producer; and 
‘‘(B) the income forgone by the producer; 
and 
‘‘(C) resource-specific indices, in any case 
in which such indices have been developed and 
implemented.. 
‘‘(d) PAYMENT LIMITATIONS.—An individual or entity 
may not receive, directly or indirectly, payments under a 
conservation security contract that, in the aggregate, exceed 
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$150,000 for the 5-year term of the conservation security 
contract, excluding funding arrangements with federally 
recognized Indian Tribes or Alaska Native Corporations. 
‘‘(e) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) provide for adequate safeguards to protect 
the interests of tenants and sharecroppers, including 
provision for sharing payments, on a fair and equi-
table basis; and 
‘‘(2) 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 (d). 
‘‘(f) ALLOCATION TO STATES.—When making alloca-
tions to States of funds made available to carry out the 
conservation security program, the Secretary shall give sig-
nificant consideration to the extent and magnitude of the 
environmental needs associated with agricultural produc-
tion in each State, the degree to which implementation of 
the conservation security program in the State is, or will 
be, effective in helping producers address these needs, and 
other considerations to achieve equitable geographic dis-
tributions of funds, as determined by the Secretary. 
‘‘(g) TECHNICAL ASSISTANCE.—For each of fiscal 
years 2008 through 2017, the Secretary shall provide appro-
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priate technical assistance to producers for the development 
and implementation of conservation security contracts, in 
an amount not to exceed 15 percent of the amounts ex-
pended for the fiscal year. 
‘‘(h) DATA.—The Secretary shall maintain conserva-
tion security program contract and payment data in a 
manner that provides detailed and segmented data that al-
lows for quantification of the amount of payments made 
to producers for— 
‘‘(1) the maintenance of conservation practices, 
activities, and management measures in place on the 
producer’s operation at the time the conservation se-
curity offer is accepted by the Secretary; 
‘‘(2) the installation and adoption of new con-
servation practices, activities, and management meas-
ures and the improvements to conservation practices, 
activities, and management measures in place on the 
producer’s operation at the time the conservation se-
curity offer is accepted by the Secretary; 
‘‘(3) participation in research, demonstration, 
and pilot projects; and 
‘‘(4) the development and periodic assessment 
and evaluation of comprehensive conservation plans.’’. 
(b) EFFECT ON EXISTING CONSERVATION SECURITY 
CONTRACTS.—Subchapter A of chapter 2 of subtitle D of 
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title XII of the Food Security Act of 1985 (16 U.S.C. 3838 
et seq.), as in effect on the day before the date of the enact-
ment of this Act, shall continue to apply to conservation 
security contracts entered into before October 1, 2007. The 
Secretary of Agriculture may continue to make payments 
under such subchapter, as so in effect, with respect to such 
a conservation security contracts during the term of the con-
tract. 
(c) PROHIBITION ON NEW CONTRACTS.—A conserva-
tion security contract may not be entered into or renewed 
under subchapter A of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), 
as in effect on the day before the date of the enactment of 
this Act, after September 30, 2007. 
SEC. 2104. GRASSLAND RESERVE PROGRAM. 
(a) ENROLLMENT PRIORITY.—Subsection (b) of section 
1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) 
is amended by striking paragraph (3) and inserting the fol-
lowing new paragraph: 
‘‘(3) PRIORITY
FOR
LONG-TERM
AGREEMENTS 
AND EASEMENTS.—Of the total number of acres en-
rolled in the program at any one time through the 
methods described in paragraph (2)(A), the Secretary 
shall ensure that at least 60 percent of the acres were 
enrolled through the use of 30-year rental agreements 
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189 
and permanent and long-term easements described in 
clause (ii) of such paragraph.’’. 
(b) ENROLLMENT OF ACREAGE.—Subsection (b) of sec-
tion 1238N of the Food Security Act of 1985 (16 U.S.C. 
3838n) is amended by striking paragraph (1) and inserting 
the following new paragraph: 
‘‘(1) ENROLLMENT.—The Secretary shall enroll 
an additional 1,000,000 acres of restored or improved 
grassland, rangeland, and pastureland in the grass-
land reserve program during fiscal years 2008 
through 2012.’’. 
(c) ENROLLMENT OF CONSERVATION RESERVE PRO-
GRAM LAND.—Section 1238N of the Food Security Act of 
1985 (16 U.S.C. 3838n) is amended by adding at the end 
the following new subsections: 
‘‘(d) ENROLLMENT OF CONSERVATION RESERVE PRO-
GRAM LAND.— 
‘‘(1) ENROLLMENT AUTHORIZED.—Subject to the 
eligibility requirements of subsection (c) and all other 
requirements of this subchapter, land enrolled in the 
conservation reserve program may be enrolled in the 
grassland reserve program if the Secretary determines 
that the land is of high ecological value and under 
significant threat of conversion to other uses. 
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190 
‘‘(2) MAXIMUM
ENROLLMENT.—The number of 
acres of conservation reserve program land enrolled 
under this subsection in a calendar year shall not ex-
ceed 10 percent of the total number of acres enrolled 
in the grassland reserve program in that calendar 
year. 
‘‘(3) PROHIBITION
ON
DUPLICATION
OF
PAY-
MENTS.—Land enrolled in the program under this 
subsection shall no longer be eligible for payments 
under the conservation reserve program. 
‘‘(e) METHOD FOR DETERMINATION OF FAIR MARKET 
VALUE.—The Secretary shall determine the fair market 
value of land to be enrolled in program based on the option 
specified in paragraph (1), (2), (3), or (4) that results in 
the lowest amount of compensation to be paid by the Sec-
retary: 
‘‘(1) A percentage of the fair market value based 
on the Uniform Standards for Professional Apprais-
als Procedures, as determined by the Secretary. 
‘‘(2) A percentage of the market value determined 
by an area wide market survey. 
‘‘(3) A geographic cap, as prescribed in regula-
tions issued by the Secretary. 
‘‘(4) The offer made by the owner of the land.’’. 
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191 
(d) GRASSLAND RESERVE ENHANCEMENT.—Section 
1238N of the Food Security Act of 1985 (16 U.S.C. 3838n) 
is amended by inserting after subsection (d), as added by 
subsection (b), the following new subsection: 
‘‘(e) GRASSLAND RESERVE ENHANCEMENT.—The Sec-
retary may enter into such agreements with States, includ-
ing political subdivisions and agencies of States, that the 
Secretary determines will advance the purposes of the grass-
land reserve program. Section 1305(d) of the Agricultural 
Reconciliation Act of 1987 (Public Law 100-203; 7 U.S.C. 
1308 note) shall not apply to payments received by a State 
or political subdivision or agency thereof in connection with 
such an agreement.’’. 
(e) USE
OF PRIVATE ORGANIZATIONS
OR STATE 
AGENCIES.—Section 1238Q of the Food Security Act of 
1985 (16 U.S.C. 3838q) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) AUTHORITY TO USE PRIVATE ORGANIZATIONS OR 
STATES.—The Secretary shall permit a private conserva-
tion or land trust organization (referred to in this section 
as a ‘private organization’) or a State agency to own, write, 
and enforce an easement under this subchapter, in lieu of 
the Secretary, subject to the right of the Secretary to conduct 
periodic inspections and enforce the easement, if— 
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‘‘(1) the Secretary determines that granting the 
permission will promote protection of grassland, land 
that contains forbs, and shrubland; 
‘‘(2) the owner authorizes the private organiza-
tion or State agency to hold and enforce the easement; 
and 
‘‘(3) the private organization or State agency 
agrees to assume the costs incurred in administering 
and enforcing the easement, including the costs of res-
toration or rehabilitation of the land as specified by 
the owner and the private organization or State agen-
cy.’’; 
(2) in subsection (b), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’; and 
(3) in subsection (c), by striking ‘‘hold’’ and in-
serting ‘‘own, write,’’. 
SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
(a) PURPOSES.—Section 1240 of the Food Security 
Act of 1985 (16 U.S.C. 3839aa) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting ‘‘, forest management, organic transition,’’ 
after ‘‘agricultural production’’; and 
(2) by striking paragraphs (3) and (4) and in-
serting the following new paragraphs: 
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‘‘(3) providing flexible assistance to producers to 
install and maintain conservation practices that, 
while sustaining production of food and fiber— 
‘‘(A) enhance soil, water, and related nat-
ural 
resources, 
including 
grazing 
land, 
forestland, wetland, and wildlife; and 
‘‘(B) conserve energy; 
‘‘(4) assisting producers to make beneficial, cost 
effective changes to cropping systems, grazing man-
agement, energy use, forest management, nutrient 
management associated with livestock, pest or irriga-
tion management, or other practices on agricultural 
and forested land; and’’. 
(b) DEFINITIONS.—Section 1240A of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839aa–1) is amended— 
(1) by striking paragraph (3) and inserting the 
following new paragraph: 
‘‘(3) LAND MANAGEMENT PRACTICE.— 
‘‘(A) IN GENERAL.—The term ‘land man-
agement practice’ means a site-specific nutrient 
or manure management, integrated pest manage-
ment, irrigation management, tillage or residue 
management, grazing management, air quality 
management, forest management, silvicultural 
practice, or other land management practice car-
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ried out on eligible land that the Secretary deter-
mines is needed to protect from degradation, in 
the most cost-effective manner, water, soil, or re-
lated resources. 
‘‘(B) FOREST
MANAGEMENT
PRACTICES.— 
For purposes of subparagraph (A), forest man-
agement practices may include activities that the 
Secretary determines are needed to— 
‘‘(i) improve water quality; 
‘‘(ii) restore forest biodiversity; or 
‘‘(iii) control invasive species. 
‘‘(C) COORDINATED
IMPLEMENTATION.—A 
land management practice may involve multiple 
landowners implementing eligible conservation 
activities in a coordinated fashion.’’; 
(2) in paragraph (4), by inserting ‘‘alpacas, 
bison,’’ after ‘‘sheep,’’; 
(3) by redesignating paragraphs (3), (4), (5), 
and (6), as so amended, as paragraphs (4), (5), (6), 
and (8), respectively; 
(4) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) INTEGRATED
PEST
MANAGEMENT.—The 
term ‘integrated pest management’ means a sustain-
able approach to managing pests by combining bio-
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195 
logical, cultural, physical, and chemical tools in a 
way that minimizes economic, health, an environ-
mental risks.’’; and 
(5) by inserting after paragraph (6), as so redes-
ignated, the following new paragraph: 
‘‘(7) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term under sec-
tion 355(e) of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2003(e)).’’. 
(c) ELIGIBLE PRACTICES.—Section 1240B(a) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)) is 
amended— 
(1) in paragraph (1), by striking ‘‘2010’’ and in-
serting ‘‘2012’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘or 
receives organic certification’’ after ‘‘chapter’’; 
and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) a producer that implements a land 
management practice, receives technical services 
from an approved third-party provider, develops 
a comprehensive nutrient management plan, or 
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implements energy efficiency improvements or 
renewable energy systems, in accordance with 
this chapter shall be eligible to receive incentive 
payments.’’. 
(d) BEGINNING FARMERS
OR RANCHERS
AND SO-
CIALLY DISADVANTAGED FARMERS OR RANCHERS.—Sec-
tion 1240B(d)(2) of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2(d)(2)) is amended by striking subpara-
graph (A) and inserting the following new subparagraph: 
‘‘(A) INCREASED COST-SHARE FOR CERTAIN 
PRODUCERS.—The Secretary shall increase the 
amount provided under paragraph (1) to a pro-
ducer that is a beginning farmer or rancher, so-
cially disadvantaged farmer or rancher, or lim-
ited resource farmer or rancher to 90 percent of 
the cost of the practice, as determined by the Sec-
retary.’’. 
(e) ADDITIONAL SUPPORT
FOR USE
OF GASIFIER 
TECHNOLOGY.—Section 1240B(d)(2) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa–2(d)(2)) is amended by add-
ing at the end the following new subparagraph: 
‘‘(C) INCREASED COST-SHARE FOR USE OF 
GASIFIER
TECHNOLOGY.—In carrying out this 
chapter, the Secretary shall promote air quality 
by providing for a 90 percent cost share for those 
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projects that utilize gasifier technology for the 
purposes of the disposal of animal carcasses and 
by-products.’’. 
(f) INCENTIVE PAYMENTS.—Section 1240B(e) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa–2(e)) is 
amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) AVAILABILITY OF INCENTIVE PAYMENTS.— 
The Secretary shall make incentive payments in an 
amount and at a rate determined by the Secretary to 
be necessary to encourage a producer— 
‘‘(A) to perform 1 or more land manage-
ment practices; 
‘‘(B) to receive technical services from an 
approved third-party provider; 
‘‘(C) to develop a comprehensive nutrient 
management plan; or 
‘‘(D) to implement energy efficiency im-
provements or renewable energy systems.’’; and 
(2) in paragraph (2), by inserting ‘‘pollinator 
habitat,’’ after ‘‘invasive species,’’. 
(g) ALLOCATION OF FUNDING.—Section 1240B(g) of 
the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) is 
amended— 
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(1) by striking ‘‘For each’’ and inserting the fol-
lowing: 
‘‘(1) ALLOCATION FOR LIVESTOCK PRODUCTION 
PRACTICES.—For each’’; 
(2) in such paragraph, as so designated, by 
striking ‘‘2007’’ and inserting ‘‘2012’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) ALLOCATION FOR CERTAIN PRODUCERS.— 
For each of fiscal years 2007 through 2012, of the 
funds made available for cost-share payments and in-
centive payments under this chapter, the Secretary 
shall reserve, for a period of not less than 90 days 
after the date on which the funds are made available 
for the fiscal year— 
‘‘(A) not less than 5 percent for beginning 
farmers and ranchers; and 
‘‘(B) not less than 5 percent of funds for so-
cially disadvantaged farmers and ranchers and 
limited resource farmers and ranchers.’’. 
(h) ELIGIBILITY OF MARKET AGENCIES AND CUSTOM 
FEEDING BUSINESSES.—Section 1240B of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839aa–2) is amended by add-
ing at the end the following new subsection: 
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