protection retroactive to the effective date of 
this subtitle. 
(B) DURATION.—Retroactive basic margin 
protection under this paragraph for a dairy pro-
ducer shall apply from the effective date of this 
subtitle until the date on which the producer 
signs up for the margin protection program. 
(3) RETROACTIVE
SUPPLEMENTAL
MARGIN 
PROTECTION.— 
(A) AVAILABILITY.—Subject to subpara-
graphs (B) and (C), if a dairy producer files a 
notice of intent under paragraph (1) to partici-
pate in the margin protection program and ob-
tain supplemental margin protection and subse-
quently signs up for the margin protection pro-
gram, the producer shall receive supplemental 
margin protection, in addition to the basic mar-
gin protection under paragraph (2), retroactive 
to the effective date of this subtitle. 
(B) DEADLINE FOR SUBMISSION.—A no-
tice of intent to obtain retroactive supplemental 
margin protection must be filed with the Sec-
retary no later than the earlier of the following: 
(i) 150 days after the date on which 
the Secretary publishes the notice in the 
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Federal Register required by paragraph 
(1). 
(ii) The date on which the Secretary 
initiates the sign up period for the margin 
protection program. 
(C) ELECTION OF COVERAGE LEVEL AND 
PERCENTAGE OF COVERAGE.—To be sufficient 
to obtain retroactive supplemental margin pro-
tection, the notice of intent to participate filed 
by a dairy producer must specify— 
(i) a selected coverage level that is 
higher, in any increment of $0.50, than the 
payment threshold for basic margin protec-
tion specified in section 1414(b), but not 
to exceed $6.00; and 
(ii) the percentage of coverage, subject 
to limits imposed in section 1415(c). 
(D) DURATION.—The coverage level and 
percentage specified in the notice of intent to 
participate filed by a dairy producer shall apply 
from the effective date of this subtitle until the 
later of the following: 
(i) October 1, 2013. 
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(ii) The date on which the Secretary 
initiates the sign-up period for the margin 
protection program. 
(4) NOTICE OF INTENT AND OBLIGATION TO 
PARTICIPATE IN MARGIN PROTECTION PROGRAM.— 
In no way does filing a notice of intent under this 
subsection obligate a dairy producer to sign up for 
the margin protection program once the program 
rules are final, but if a producer does file a notice 
of intent and subsequently signs up for the margin 
protection program, that dairy producer is obligated 
to pay fees and premiums for any retroactive basic 
margin protection or retroactive supplemental mar-
gin protection selected in the notice of intent. 
(e) ADMINISTRATIVE FEE.— 
(1) ADMINISTRATIVE FEE REQUIRED.—A dairy 
producer shall pay an administrative fee under this 
subsection to sign up to participate in the margin 
protection program. The participating dairy pro-
ducer shall pay the administrative fee annually 
thereafter to continue to participate in the margin 
protection program. 
(2) FEE AMOUNT.—The administrative fee for 
a participating dairy producer for a calendar year is 
based on the pounds of milk (in millions) marketed 
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by the dairy producer in the previous calendar year, 
as follows: 
Pounds Marketed (in millions) 
Admin. Fee 
less than 1 
$100 
1 to 10 
$250 
more than 10 to 40 
$500 
more than 40 
$1000 
(3) DEPOSIT OF FEES.—All administrative fees 
collected under this subsection shall be credited to 
the fund or account used to cover the costs incurred 
to administer the margin protection program and 
the stabilization program and shall be available to 
the Secretary, without further appropriation and 
until expended, for use or transfer as provided in 
paragraph (4). 
(4) USE OF FEES.—The Secretary shall use ad-
ministrative fees collected under this subsection— 
(A) to cover administrative costs of the 
margin protection program and stabilization 
program; and 
(B) to the extent funds remain available 
after operation of subparagraphs (A), to cover 
costs of the Department of Agriculture relating 
to reporting of dairy market news and to carry 
out section 273 of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1637b). 
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(f) RECONSTITUTION.—The Secretary shall prohibit 
a dairy producer from reconstituting a dairy operation for 
the sole purpose of the dairy producer— 
(1) receiving basic margin protection; 
(2) purchasing supplemental margin protection; 
or 
(3) avoiding participation in the stabilization 
program. 
(g) PRIORITY CONSIDERATION.—A dairy operation 
that participates in the production margin protection pro-
gram shall be eligible to participate in the livestock gross 
margin for dairy program under the Federal Crop Insur-
ance Act (7 U.S.C. 1501 et seq.) only after operations that 
are not participating in the production margin protection 
program are enrolled. 
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 
DAIRY PRODUCERS. 
(a) PRODUCTION HISTORY FOR BASIC MARGIN PRO-
TECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing basic margin protection, the Secretary 
shall determine the basic production history of the 
dairy operation of each participating dairy producer 
in the margin protection program. 
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(2) CALCULATION.—Except as provided in 
paragraph (3), the basic production history of a par-
ticipating dairy producer for basic margin protection 
is equal to the highest annual milk marketings of 
the dairy producer during any one of the three cal-
endar years immediately preceding the calendar year 
in which the dairy producer first signed up to par-
ticipate in the margin protection program. 
(3) ELECTION BY NEW PRODUCERS.—If a par-
ticipating dairy producer has been in operation for 
less than a year, the dairy producer shall elect one 
of the following methods for the Secretary to deter-
mine the basic production history of the dairy pro-
ducer: 
(A) The volume of the actual milk mar-
ketings for the months the dairy producer has 
been in operation extrapolated to a yearly 
amount. 
(B) An estimate of the actual milk mar-
ketings of the dairy producer based on the herd 
size of the producer relative to the national roll-
ing herd average data published by the Sec-
retary. 
(4) NO CHANGE IN PRODUCTION HISTORY FOR 
BASIC MARGIN PROTECTION.—Once the basic pro-
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duction history of a participating dairy producer is 
determined under paragraph (2) or (3), the basic 
production history shall not be subsequently changed 
for purposes of determining the amount of any basic 
margin protection payments for the dairy producer 
made under section 1414. 
(b) ANNUAL PRODUCTION HISTORY FOR SUPPLE-
MENTAL MARGIN PROTECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing supplemental margin protection for a 
participating dairy producer that purchases supple-
mental margin protection for a year under section 
1415, the Secretary shall determine the annual pro-
duction history of the dairy operation of the dairy 
producer under paragraph (2). 
(2) CALCULATION.—The annual production his-
tory of a participating dairy producer for a year is 
equal to the actual milk marketings of the dairy pro-
ducer during the preceding calendar year. 
(3) NEW PRODUCERS.—Subsection (a)(3) shall 
apply with respect to determining the annual pro-
duction history of a participating dairy producer 
that has been in operation for less than a year. 
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(c) REQUIRED INFORMATION.—A participating dairy 
producer shall provide all information that the Secretary 
may require in order to establish— 
(1) the basic production history of the dairy op-
eration of the dairy producer under subsection (a); 
and 
(2) the production history of the dairy oper-
ation of the dairy producer whenever the producer 
purchases supplemental margin protection under 
section 1415. 
(d) TRANSFER OF PRODUCTION HISTORIES.— 
(1) TRANSFER BY SALE OR LEASE.—In promul-
gating the rules to initiate the margin protection 
program, the Secretary shall specify the conditions 
under which and the manner by which the produc-
tion history of a dairy operation may be transferred 
by sale or lease. 
(2) COVERAGE LEVEL.— 
(A) BASIC MARGIN PROTECTION.—A pur-
chaser or lessee to whom the Secretary trans-
fers a basic production history under this sub-
section shall not obtain a different level of basic 
margin protection than the basic margin protec-
tion coverage held by the seller or lessor from 
whom the transfer was obtained. 
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(B) SUPPLEMENTAL
MARGIN
PROTEC-
TION.—A purchaser or lessee to whom the Sec-
retary transfers an annual production history 
under this subsection shall not obtain a dif-
ferent level of supplemental margin protection 
coverage than the supplemental margin protec-
tion coverage in effect for the seller or lessor 
from whom the transfer was obtained for the 
calendar year in which the transfer was made. 
(e) MOVEMENT
AND TRANSFER
OF PRODUCTION 
HISTORY.— 
(1) MOVEMENT
AND
TRANSFER
AUTHOR-
IZED.—Subject to paragraph (2), if a dairy producer 
moves from one location to another location, the 
dairy producer may maintain the basic production 
history and annual production history associated 
with the operation. 
(2) NOTIFICATION
REQUIREMENT.—A dairy 
producer shall notify the Secretary of any move of 
a dairy operation under paragraph (1). 
(3) SUBSEQUENT OCCUPATION OF VACATED LO-
CATION.—A party subsequently occupying a dairy 
operation location vacated as described in paragraph 
(1) shall have no interest in the basic production 
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history or annual production history previously asso-
ciated with the operation at such location. 
SEC. 1414. BASIC MARGIN PROTECTION. 
(a) ELIGIBILITY.—All participating dairy producers 
are eligible to receive basic margin protection under the 
margin protection program. 
(b) PAYMENT THRESHOLD.—Participating dairy pro-
ducers shall receive a basic margin protection payment 
whenever the average actual dairy producer margin for a 
consecutive two-month period is less than $4.00 per hun-
dredweight of milk. 
(c) BASIC MARGIN PROTECTION PAYMENT.— 
(1) PAYMENT REQUIRED.—The Secretary shall 
make a basic margin protection payment to each 
participating dairy producer whenever such a pay-
ment is required by subsection (b). 
(2) AMOUNT OF PAYMENT.—The basic margin 
protection payment for the dairy operation of a par-
ticipating dairy producer for a consecutive two- 
month period shall be determined as follows: 
(A) The Secretary shall calculate the dif-
ference between the average actual dairy pro-
ducer margin for the consecutive two-month pe-
riod and $4.00, except that, if the difference is 
more than $4.00, the Secretary shall use $4.00. 
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(B) The Secretary shall multiply the 
amount under subparagraph (A) by the lesser 
of the following: 
(i) 80 percent of the production his-
tory of the dairy producer, divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION. 
(a) ELECTION OF SUPPLEMENTAL MARGIN PROTEC-
TION.—Supplemental margin protection is available only 
on an annual basis. A participating dairy producer may 
annually purchase supplemental margin protection to pro-
tect, during the calendar year for which purchased, a high-
er level of the income of a participating dairy producer 
than the income level guaranteed by basic margin protec-
tion under section 1414. 
(b) SELECTION OF PAYMENT THRESHOLD.—A par-
ticipating dairy producer purchasing supplemental margin 
protection for a year shall elect a coverage level that is 
higher, in any increment of $0.50, than the payment 
threshold for basic margin protection specified in section 
1414(b), but not to exceed $8.00. 
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(c) SELECTION OF COVERAGE PERCENTAGE.—A par-
ticipating dairy producer purchasing supplemental margin 
protection for a year shall elect a percentage of coverage 
equal to not more than 90 percent, nor less than 25 per-
cent, of the annual production history of the dairy oper-
ation of the participating dairy producer. 
(d) PRODUCER
PREMIUMS
FOR
SUPPLEMENTAL 
MARGIN PROTECTION.— 
(1) PREMIUMS
REQUIRED.—A participating 
dairy producer that purchases supplemental margin 
protection shall pay an annual premium equal to the 
product obtained by multiplying— 
(A) the percentage selected by the dairy 
producer under subsection (c); 
(B) the annual production history of the 
dairy producer; and 
(C) the premium per hundredweight of 
milk, as specified in the applicable table under 
paragraph (2) or (3). 
(2) PREMIUM PER HUNDREDWEIGHT FOR FIRST 
4 MILLION POUNDS OF PRODUCTION.—For the first 
4,000,000 pounds of milk marketings included in 
the annual production history of a participating 
dairy producer, the premium per hundredweight cor-
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responding to each coverage level specified in the fol-
lowing table is as follows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.01 
$5.00 
$0.025 
$5.50 
$0.04 
$6.00 
$0.065 
$6.50 
$0.09 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(3) PREMIUM PER HUNDREDWEIGHT FOR PRO-
DUCTION IN EXCESS OF 4 MILLION POUNDS.—For 
milk marketings in excess of 4,000,000 pounds in-
cluded in the annual production history of a partici-
pating dairy producer, the premium per hundred-
weight corresponding to each coverage level is as fol-
lows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.015 
$5.00 
$0.036 
$5.50 
$0.081 
$6.00 
$0.155 
$6.50 
$0.230 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(4) TIME FOR PAYMENT.—In promulgating the 
rules to initiate the margin protection program, the 
Secretary shall provide more than one method by 
which a participating dairy producer that purchases 
supplemental margin protection for a calendar year 
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100 
may pay the premium under this subsection for that 
year that maximizes producer payment flexibility 
and program integrity. 
(e) PRODUCER’S PREMIUM OBLIGATIONS.— 
(1) PRO-RATION OF PREMIUM FOR NEW PRO-
DUCERS.—A dairy producer described in section 
1412(c)(2) that purchases supplemental margin pro-
tection for a calendar year after the start of the cal-
endar year shall pay a pro-rated premium for that 
calendar year based on the portion of the calendar 
year for which the producer purchases the coverage. 
(2) LEGAL OBLIGATION.—A participating dairy 
producer that purchases supplemental margin pro-
tection for a calendar year shall be legally obligated 
to pay the applicable premium for that calendar 
year, except that, if the dairy producer retires, the 
producer may request that Secretary cancel the sup-
plemental margin protection if the producer has ter-
minated the dairy operation entirely and certifies 
under oath that the producer will not be actively en-
gaged in any dairy operation for at least the next 
seven years. 
(f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par-
ticipating dairy producer with supplemental margin pro-
tection shall receive a supplemental margin protection 
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101 
payment whenever the average actual dairy producer mar-
gin for a consecutive two-month period is less than the 
coverage level threshold selected by the dairy producer 
under subsection (b). 
(g) SUPPLEMENTAL
MARGIN
PROTECTION
PAY-
MENTS.— 
(1) IN
GENERAL.—The supplemental margin 
protection payment for a participating dairy pro-
ducer is in addition to the basic margin protection 
payment. 
(2) AMOUNT OF PAYMENT.—The supplemental 
margin protection payment for the dairy operation 
of a participating dairy producer shall be determined 
as follows: 
(A) The Secretary shall calculate the dif-
ference between the coverage level threshold se-
lected by the dairy producer under subsection 
(b) and the greater of— 
(i) the average actual dairy producer 
margin for the consecutive two-month pe-
riod; or 
(ii) $4.00. 
(B) The amount determined under sub-
paragraph (A) shall be multiplied by the per-
centage selected by the participating dairy pro-
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102 
ducer under subsection (c) and by the lesser of 
the following: 
(i) The annual production history of 
the dairy operation of the dairy producer, 
divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATIVE 
FEES OR PREMIUMS. 
(a) LOSS OF BENEFITS.—A participating dairy pro-
ducer that fails to pay the required administrative fee 
under section 1412 or is in arrears on premium payments 
for supplemental margin protection under section 1415— 
(1) remains legally obligated to pay the admin-
istrative fee or premiums, as the case may be; and 
(2) may not receive basic margin protection 
payments or supplemental margin protection pay-
ments until the fees or premiums are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such 
action as necessary to collect administrative fees and pre-
mium payments for supplemental margin protection. 
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103 
Subpart B—Dairy Market Stabilization Program 
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA-
TION PROGRAM. 
(a) PROGRAM REQUIRED; PURPOSE.—The Secretary 
shall establish and administer a dairy market stabilization 
program applicable to participating dairy producers for 
the purpose of assisting in balancing the supply of milk 
with demand when dairy producers are experiencing low 
or negative operating margins. 
(b) ELECTION OF STABILIZATION PROGRAM BASE 
CALCULATION METHOD.— 
(1) ELECTION.—When a dairy producer signs 
up under section 1412 to participate in the margin 
protection program, the dairy producer shall inform 
the Secretary of the method by which the stabiliza-
tion program base for the dairy producer for 2012 
will be calculated under paragraph (3). 
(2) CHANGE
IN
CALCULATION
METHOD.—A 
participating dairy producer may change the sta-
bilization program base calculation method to be 
used for a calendar year by notifying the Secretary 
of the change not later than a date determined by 
the Secretary. 
(3) CALCULATION METHODS.—A participating 
dairy producer may elect either of the following 
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104 
methods for calculation of the stabilization program 
base for the producer: 
(A) The volume of the average monthly 
milk marketings of the dairy producer for the 
three months immediately preceding the an-
nouncement by the Secretary that the stabiliza-
tion program will become effective. 
(B) The volume of the monthly milk mar-
ketings of the dairy producer for the same 
month in the preceding year as the month for 
which the Secretary has announced the sta-
bilization program will become effective. 
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND RE-
DUCTION IN DAIRY PRODUCER PAYMENTS. 
(a) WHEN STABILIZATION PROGRAM REQUIRED.— 
Except as provided in subsection (b), the Secretary shall 
announce that the stabilization program is in effect and 
order reduced payments for any participating dairy pro-
ducer that exceeds the applicable percentage of the pro-
ducer’s stabilization program base whenever— 
(1) the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for each of 
the immediately preceding two months; or 
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105 
(2) the actual dairy producer margin has been 
$4.00 or less per hundredweight of milk for the im-
mediately preceding month. 
(b) EXCEPTION.—The Secretary shall not make the 
announcement under subsection (a) to implement the sta-
bilization program or order reduced payments if any of 
the conditions described in section 1436(b) have been met 
during the two months immediately preceding the month 
in which the announcement under subsection (a) would 
otherwise be made by the Secretary in the absence of this 
exception. 
(c) EFFECTIVE DATE
FOR IMPLEMENTATION
OF 
PAYMENT REDUCTIONS.—Reductions in dairy producer 
payments shall commence beginning on the first day of 
the month immediately following the date of the announce-
ment by the Secretary under subsection (a). 
SEC. 1433. PRODUCER MILK MARKETINGS INFORMATION. 
(a) COLLECTION OF MILK MARKETING DATA.—The 
Secretary shall establish, by regulation, a process to collect 
from participating dairy producers and handlers such in-
formation that the Secretary considers necessary for each 
month during which the stabilization program is in effect. 
(b) REDUCE REGULATORY BURDEN.—When imple-
menting the process under subsection (a), the Secretary 
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106 
shall minimize the regulatory burden on dairy producers 
and handlers. 
SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 
DAIRY PRODUCER PAYMENTS. 
(a) REDUCED PRODUCER PAYMENTS REQUIRED.— 
During any month in which payment reductions are in ef-
fect under the stabilization program, each handler shall 
reduce payments to each participating dairy producer 
from whom the handler receives milk. 
(b) REDUCTIONS BASED ON ACTUAL DAIRY PRO-
DUCER MARGIN.— 
(1) REDUCTION REQUIREMENT 1.—Unless the 
reduction required by paragraph (2) or (3) applies, 
when the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for two con-
secutive months, the handler shall make payments to 
a participating dairy producer for a month based on 
the greater of the following: 
(A) 98 percent of the stabilization program 
base of the dairy producer. 
(B) 94 percent of the marketings of milk 
for the month by the producer. 
(2) REDUCTION REQUIREMENT 2.—Unless the 
reduction required by paragraph (3) applies, when 
the actual dairy producer margin has been $5.00 or 
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107 
less per hundredweight of milk for two consecutive 
months, the handler shall make payments to a par-
ticipating dairy producer for a month based on the 
greater of the following: 
(A) 97 percent of the stabilization program 
base of the dairy producer. 
(B) 93 percent of the marketings of milk 
for the month by the producer. 
(3) REDUCTION
REQUIREMENT
3.—When the 
actual dairy producer margin has been $4.00 or less 
for any one month, the handler shall make payments 
to a participating dairy producer for a month based 
on the greater of the following: 
(A) 96 percent of the stabilization program 
base of the dairy producer. 
(B) 92 percent of the marketings of milk 
for the month by the producer. 
(c) CONTINUATION OF REDUCTIONS.—The largest 
level of payment reduction required under paragraph (1), 
(2), or (3) of subsection (b) shall be continued for each 
month until the Secretary suspends the stabilization pro-
gram and terminates payment reductions in accordance 
with section 1436. 
(d) PAYMENT REDUCTION EXCEPTION.—Notwith-
standing any preceding subsection of this section, a han-
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108 
dler shall make no payment reductions for a dairy pro-
ducer for a month if the producer’s milk marketings for 
the month are equal to or less than the percentage of the 
stabilization program base applicable to the producer 
under paragraph (1), (2), or (3) of subsection (b). 
SEC. 1435. REMITTING MONIES TO THE SECRETARY AND 
USE OF MONIES. 
(a) REMITTING MONIES.—As soon as practicable 
after the end of each month during which payment reduc-
tions are in effect under the stabilization program, each 
handler shall remit to the Secretary an amount equal to 
the amount by which payments to participating dairy pro-
ducers are reduced by the handler under section 1434. 
(b) DEPOSIT OF MONIES.—All monies received under 
subsection (a) shall be available to the Secretary, without 
further appropriation and until expended, for use or trans-
fer as provided in subsection (c). 
(c) USE OF MONIES.— 
(1) AVAILABILITY
FOR
CERTAIN
COMMODITY 
DONATIONS.—Within three months of the receipt of 
monies under subsection (a), the Secretary shall ob-
ligate the monies for the purpose of— 
(A) purchasing dairy products for donation 
to food banks and other programs that the Sec-
retary determines appropriate; and 
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(B) expanding consumption and building 
demand for dairy products. 
(2) NO DUPLICATION OF EFFORT.—The Sec-
retary shall ensure that expenditures under para-
graph (1) are compatible with, and do not duplicate, 
programs supported by the dairy research and pro-
motion activities conducted under the Dairy Produc-
tion Stabilization Act of 1983 (7 U.S.C. 4501 et 
seq.). 
(3) ACCOUNTING.—The Secretary shall keep an 
accurate account of all monies obligated under para-
graph (1). 
(d) ANNUAL REPORT.—Not later than December 31 
of each year that the stabilization program is in effect, 
the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that provides an accurate accounting of— 
(1) the monies received by the Secretary during 
the preceding fiscal year under subsection (a); and 
(2) all expenditures made by the Secretary 
under subsection (b) during the preceding fiscal 
year. 
(e) ENFORCEMENT.—If a participating dairy pro-
ducer or handler fails to remit or collect the amounts by 
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which payments to participating dairy producers are re-
duced under section 1434, the producer or handler respon-
sible for the failure shall be liable to the Secretary for the 
amount that should have been remitted or collected, plus 
interest. In addition to the enforcement authorities avail-
able under section 1437, the Secretary may enforce this 
subsection in the courts of the United States. 
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE-
MENT. 
(a) DETERMINATION OF PRICES.—For purposes of 
this section: 
(1) The price in the United States for cheddar 
cheese and nonfat dry milk shall be determined by 
the Secretary. 
(2) The world price of cheddar cheese and skim 
milk powder shall be determined by the Secretary. 
(b) INITIAL SUSPENSION THRESHOLDS.—The Sec-
retary shall announce that the stabilization program shall 
be suspended whenever the Secretary determines that— 
(1) the actual dairy producer margin is greater 
than $6.00 per hundredweight of milk for two con-
secutive months; 
(2) the dairy producer margin is equal to or 
less than $6.00 (but greater than $5.00) for two 
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consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is equal to or greater than the 
world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is equal to or greater than the 
world price of skim milk powder; 
(3) the dairy producer margin is equal to or 
less than $5.00 (but greater than $4.00) for two 
consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is more than 5 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is more than 5 percent above the 
world price of skim milk powder; or 
(4) the dairy producer margin is equal to or 
less than $4.00 for two consecutive months, and 
during the same two consecutive months— 
(A) the price in the United States for 
cheddar cheese is more than 7 percent above 
the world price of cheddar cheese; or 
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(B) the price in the United States for non-
fat dry milk is more than 7 percent above the 
world price of skim milk powder. 
(c) ENHANCED SUSPENSION THRESHOLDS.—If the 
stabilization program is not suspended pursuant to sub-
section (b) for six consecutive months or more, the sta-
bilization program shall be suspended whenever the Sec-
retary determines that— 
(1) the actual dairy producer margin is greater 
than $6.00 per hundredweight of milk for two con-
secutive months; 
(2) the dairy producer margin is equal to or 
less than $6.00 (but greater than $5.00) for two 
consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is not less than 97 percent of 
the world price of cheddar cheese; or 
(B) the price in the United States for non- 
fat dry milk is not less than 97 percent of the 
world price of skim milk powder; 
(3) the dairy producer margin is equal to or 
less than $5.00 (but greater than $4.00) for two 
consecutive months, and during the same two con-
secutive months— 
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(A) the price in the United States for 
cheddar cheese is more than 3 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non 
fat dry milk is more than 3 percent above the 
world price of skim milk powder; or 
(4) the dairy producer margin is equal to or 
less than $4.00 for two consecutive months, and 
during the same two consecutive months— 
(A) the price in the United States for 
cheddar cheese is more than 6 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non 
fat dry milk is more than 6 percent above the 
world price of skim milk powder. 
(d) IMPLEMENTATION BY HANDLERS.—Effective on 
the day after the date of the announcement by the Sec-
retary under subsection (b) or (c) of the suspension of the 
stabilization program, the handler shall cease reducing 
payments to participating dairy producers under the sta-
bilization program. 
(e) CONDITION ON RESUMPTION OF STABILIZATION 
PROGRAM.—Upon the announcement by the Secretary 
under subsection (b) or (c) that the stabilization program 
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has been suspended, the stabilization program may not be 
implemented again until, at the earliest— 
(1) two months have passed, beginning on the 
first day of the month immediately following the an-
nouncement by the Secretary; and 
(2) the conditions of section 1432(a) are again 
met. 
SEC. 1437. ENFORCEMENT. 
(a) UNLAWFUL ACT.—It shall be unlawful and a vio-
lation of the this subpart for any person subject to the 
stabilization program to willfully fail or refuse to provide, 
or delay the timely reporting of, accurate information and 
remittance of funds to the Secretary in accordance with 
this subpart. 
(b) ORDER.—After providing notice and opportunity 
for a hearing to an affected person, the Secretary may 
issue an order against any person to cease and desist from 
continuing any violation of this subpart. 
(c) APPEAL.—An order of the Secretary under sub-
section (b) shall be final and conclusive unless an affected 
person files an appeal of the order of the Secretary in 
United States district court not later than 30 days after 
the date of the issuance of the order. A finding of the 
Secretary in the order shall be set aside only if the finding 
is not supported by substantial evidence. 
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(d) NONCOMPLIANCE WITH ORDER.—If a person 
subject to this subpart fails to obey an order issued under 
subsection (b) after the order has become final and 
unappealable, or after the appropriate United States dis-
trict court has entered a final judgment in favor of the 
Secretary, the United States may apply to the appropriate 
United States district court for enforcement of the order. 
If the court determines that the order was lawfully made 
and duly served and that the person violated the order, 
the court shall enforce the order. 
SEC. 1438. AUDIT REQUIREMENTS. 
(a) AUDITS OF PRODUCER AND HANDLER COMPLI-
ANCE.— 
(1) AUDITS
AUTHORIZED.—If determined by 
the Secretary to be necessary to ensure compliance 
by participating dairy producers and handlers with 
the stabilization program, the Secretary may con-
duct periodic audits of participating dairy producers 
and handlers. 
(2) SAMPLE OF DAIRY PRODUCERS.—Any audit 
conducted under this subsection shall include, at a 
minimum, investigation of a statistically valid and 
random sample of participating dairy producers. 
(b) SUBMISSION OF RESULTS.—The Secretary shall 
submit the results of any audit conducted under sub-
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section (a) to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate and include such rec-
ommendations as the Secretary considers appropriate re-
garding the stabilization program. 
Subpart C—Commodity Credit Corporation 
SEC. 1451. USE OF COMMODITY CREDIT CORPORATION. 
The Secretary shall use the funds, facilities, and the 
authorities of the Commodity Credit Corporation to carry 
out this part. 
Subpart D—Initiation and Duration 
SEC. 1461. RULEMAKING. 
(a) PROCEDURE.—The promulgation of regulations 
for the initiation of the margin protection program and 
the stabilization program, and for administration of such 
programs, shall be made without regard to— 
(1) chapter 35 of title 44, United States Code 
(commonly known as the Paperwork Reduction Act); 
(2) the Statement of Policy of the Secretary of 
Agriculture effective July 24, 1971 (36 Fed. Reg. 
13804), relating to notices of proposed rulemaking 
and public participation in rulemaking; and 
(3) the notice and comment provisions of sec-
tion 553 of title 5, United States Code. 
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(b) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out subsection (a), the Secretary 
shall use the authority provided under section 808 of title 
5, United States Code. 
SEC. 1462. DURATION. 
The margin protection program and the stabilization 
program shall end on December 31, 2017. 
PART II—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
AND MILK INCOME LOSS CONTRACT PRO-
GRAMS. 
(a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
PROGRAM.—Section 1501 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771) is repealed. 
(b) REPEAL OF MILK INCOME LOSS CONTRACT PRO-
GRAM.—Section 1506 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8773) is repealed. 
SEC. 1482. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) REPEAL.—Section 153 of the Food Security Act 
of 1985 (15 U.S.C. 713a–14) is repealed. 
(b) CONFORMING AMENDMENTS.—Section 902(2) of 
the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7201(2)) is amended— 
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(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and 
(F) as subparagraphs (D) and (E), respectively. 
SEC. 1483. EXTENSION OF DAIRY FORWARD PRICING PRO-
GRAM. 
Section 1502(e) of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8772(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and 
inserting ‘‘2017’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and 
inserting ‘‘2020’’. 
SEC. 1484. EXTENSION OF DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 1485. EXTENSION OF DAIRY PROMOTION AND RE-
SEARCH PROGRAM. 
Section 113(e)(2) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 1486. REPEAL OF FEDERAL MILK MARKETING ORDER 
REVIEW COMMISSION. 
Section 1509 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1726) is re-
pealed. 
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PART III—EFFECTIVE DATE 
SEC. 1491. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 2012. 
Subtitle E—Supplemental Agricul-
tural Disaster Assistance Pro-
grams 
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PRODUCER ON A FARM.— 
(A) IN GENERAL.—The term ‘‘eligible pro-
ducer on a farm’’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricul-
tural production of crops or livestock. 
(B) DESCRIPTION.—An individual or enti-
ty referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability cor-
poration, or other farm organizational 
structure organized under State law. 
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(2) FARM-RAISED
FISH.—The term ‘‘farm- 
raised fish’’ means any aquatic species that is propa-
gated and reared in a controlled environment. 
(3) LIVESTOCK.—The term ‘‘livestock’’ in-
cludes— 
(A) cattle (including dairy cattle); 
(B) bison; 
(C) poultry; 
(D) sheep; 
(E) swine; 
(F) horses; and 
(G) other livestock, as determined by the 
Secretary. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
(1) PAYMENTS.—For each of the fiscal years 
2012 through 2017, the Secretary shall use such 
sums as are necessary of the funds of the Com-
modity Credit Corporation to make livestock indem-
nity payments to eligible producers on farms that 
have incurred livestock death losses in excess of the 
normal mortality, as determined by the Secretary, 
due to— 
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(A) attacks by animals reintroduced into 
the wild by the Federal Government or pro-
tected by Federal law, including wolves and 
avian predators; or 
(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, dis-
ease, wildfires, extreme heat, and extreme cold. 
(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
(3) SPECIAL RULE FOR PAYMENTS MADE DUE 
TO DISEASE.—The Secretary shall ensure that pay-
ments made to an eligible producer under paragraph 
(1) are not made for the same livestock losses for 
which compensation is provided pursuant to section 
10407(d) of the Animal Health Protection Act (7 
U.S.C. 8306(d)). 
(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) COVERED LIVESTOCK.— 
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(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of a qualifying drought or 
fire condition, as determined by the Sec-
retary, the eligible livestock producer— 
(I) owned; 
(II) leased; 
(III) purchased; 
(IV) entered into a contract to 
purchase; 
(V) is a contract grower; or 
(VI) sold or otherwise disposed of 
due to qualifying drought conditions 
during— 
(aa) the current production 
year; or 
(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year. 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
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were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible 
livestock producer, as determined by the 
Secretary. 
(B) 
DROUGHT
MONITOR.—The 
term 
‘‘drought 
monitor’’ 
means 
a 
system 
for 
classifying drought severity according to a 
range of abnormally dry to exceptional drought, 
as defined by the Secretary. 
(C) ELIGIBLE LIVESTOCK PRODUCER.— 
(i) IN GENERAL.—The term ‘‘eligible 
livestock producer’’ means an eligible pro-
ducer on a farm that— 
(I) is an owner, cash or share 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
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grazing land that is physically located 
in a county affected by drought; 
(III) certifies grazing loss; and 
(IV) meets all other eligibility re-
quirements established under this sub-
section. 
(ii) EXCLUSION.—The term ‘‘eligible 
livestock producer’’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
(D) NORMAL
CARRYING
CAPACITY.—The 
term ‘‘normal carrying capacity’’, with respect 
to each type of grazing land or pastureland in 
a county, means the normal carrying capacity, 
as determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
(E) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a 
county, means the normal grazing period during 
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the calendar year for the county, as determined 
under paragraph (3)(D)(i). 
(2) PROGRAM.—For each of the fiscal years 
2012 through 2017, the Secretary shall use such 
sums as are necessary of the funds of the Com-
modity Credit Corporation to provide compensation 
for losses to eligible livestock producers due to graz-
ing losses for covered livestock due to— 
(A) a drought condition, as described in 
paragraph (3); or 
(B) fire, as described in paragraph (4). 
(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT 
CONDITIONS.— 
(A) ELIGIBLE LOSSES.— 
(i) IN GENERAL.—An eligible livestock 
producer may receive assistance under this 
subsection only for grazing losses for cov-
ered livestock that occur on land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
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(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram established under subchapter B of 
chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 
3831 et seq.). 
(B) MONTHLY PAYMENT RATE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the payment rate for assist-
ance under this paragraph for 1 month 
shall, in the case of drought, be equal to 
60 percent of the lesser of— 
(I) the monthly feed cost for all 
covered livestock owned or leased by 
the eligible livestock producer, as de-
termined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
(ii) PARTIAL COMPENSATION.—In the 
case of an eligible livestock producer that 
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sold or otherwise disposed of covered live-
stock due to drought conditions in 1 or 
both of the 2 production years immediately 
preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise calculated in accordance 
with clause (i). 
(C) MONTHLY FEED COST.— 
(i) IN GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
(I) 30 days; 
(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
(III) a payment rate that is equal 
to the corn price per pound, as deter-
mined under clause (iii). 
(ii) FEED GRAIN EQUIVALENT.—For 
purposes of clause (i)(II), the feed grain 
equivalent shall equal— 
(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
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(II) in the case of any other type 
of weight of livestock, an amount de-
termined by the Secretary that rep-
resents the average number of pounds 
of corn per day necessary to feed the 
livestock. 
(iii) CORN PRICE PER POUND.—For 
purposes of clause (i)(III), the corn price 
per pound shall equal the quotient ob-
tained by dividing— 
(I) the higher of— 
(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
(bb) the national average 
corn price per bushel for the 24- 
month period immediately pre-
ceding that March 1; by 
(II) 56. 
(D) 
NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
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(i) FSA COUNTY COMMITTEE DETER-
MINATIONS.— 
(I) IN GENERAL.—The Secretary 
shall determine the normal carrying 
capacity and normal grazing period 
for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
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termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
payment rate determined under sub-
paragraph (B). 
(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having 
at least a D3 (extreme drought) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
(aa) in an amount equal to 
2 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
(bb) if the county is rated as 
having a D3 (extreme drought) 
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intensity in any area of the coun-
ty for at least 4 weeks during the 
normal grazing period for the 
county, or is rated as having a 
D4 (exceptional drought) inten-
sity in any area of the county at 
any time during the normal graz-
ing period, in an amount equal to 
3 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B). 
(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph only if— 
(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
(ii) the eligible livestock producer is 
prohibited by the Federal agency from 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
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equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
(C) PAYMENT DURATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
(II) ending on the last day of the 
Federal lease of the eligible livestock 
producer. 
(ii) LIMITATION.—An eligible livestock 
producer may only receive assistance under 
this paragraph for losses that occur on not 
more than 180 days per year. 
(5) NO DUPLICATIVE PAYMENTS.—An eligible 
livestock producer may elect to receive assistance for 
grazing or pasture feed losses due to drought condi-
tions under paragraph (3) or fire under paragraph 
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133 
(4), but not both for the same loss, as determined 
by the Secretary. 
(d) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
(1) IN GENERAL.—For each of the fiscal years 
2012 through 2017, the Secretary shall use not 
more than $20,000,000 of the funds of the Com-
modity Credit Corporation to provide emergency re-
lief to eligible producers of livestock, honey bees, and 
farm-raised fish to aid in the reduction of losses due 
to disease (including cattle tick fever), adverse 
weather, or other conditions, such as blizzards and 
wildfires, as determined by the Secretary, that are 
not covered under subsection (b) or (c). 
(2) USE
OF
FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
(3) AVAILABILITY OF FUNDS.—Any funds made 
available under this subsection shall remain available 
until expended. 
(e) TREE ASSISTANCE PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE
ORCHARDIST.—The term 
‘‘eligible orchardist’’ means a person that pro-
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duces annual crops from trees for commercial 
purposes. 
(B) NATURAL DISASTER.—The term ‘‘nat-
ural disaster’’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
(C) NURSERY TREE GROWER.—The term 
‘‘nursery tree grower’’ means a person who pro-
duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
(D) TREE.—The term ‘‘tree’’ includes a 
tree, bush, and vine. 
(2) ELIGIBILITY.— 
(A) LOSS.—Subject to subparagraph (B), 
for each of the fiscal years 2012 through 2017, 
the Secretary shall use such sums as are nec-
essary of the funds of the Commodity Credit 
Corporation to provide assistance— 
(i) under paragraph (3) to eligible or-
chardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
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(ii) under paragraph (3)(B) to eligible 
orchardists and nursery tree growers that 
have a production history for commercial 
purposes on planted or existing trees but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary. 
(B) LIMITATION.—An eligible orchardist 
or nursery tree grower shall qualify for assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
tree grower, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted 
for normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
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136 
(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
(4) LIMITATIONS ON ASSISTANCE.— 
(A) DEFINITIONS OF LEGAL ENTITY AND 
PERSON.—In this paragraph, the terms ‘‘legal 
entity’’ and ‘‘person’’ have the meaning given 
those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a)). 
(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $125,000 for any crop year, or an 
equivalent value in tree seedlings. 
(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
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137 
payments under this subsection may not exceed 
500 acres. 
(f) PAYMENT LIMITATIONS.— 
(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘‘legal entity’’ 
and ‘‘person’’ have the meaning given those terms in 
section 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a). 
(2) AMOUNT.—The total amount of disaster as-
sistance payments received, directly or indirectly, by 
a person or legal entity (excluding a joint venture or 
general partnership) under this section (excluding 
payments received under subsection (e)) may not ex-
ceed $125,000 for any crop year. 
(3) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
Subtitle F—Administration 
SEC. 1601. ADMINISTRATION GENERALLY. 
(a) USE OF COMMODITY CREDIT CORPORATION.— 
The Secretary of Agriculture shall use the funds, facilities, 
and authorities of the Commodity Credit Corporation to 
carry out this title. 
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138 
(b) DETERMINATIONS
BY SECRETARY.—A deter-
mination made by the Secretary under this title shall be 
final and conclusive. 
(c) REGULATIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, not later than 90 days after 
the date of enactment of this Act, the Secretary and 
the Commodity Credit Corporation, as appropriate, 
shall promulgate such regulations as are necessary 
to implement this title and the amendments made by 
this title. 
(2) PROCEDURE.—The promulgation of the reg-
ulations and administration of this title and the 
amendments made by this title and sections 11002 
and 11011 of this division shall be made without re-
gard to— 
(A) the notice and comment provisions of 
section 553 of title 5, United States Code; 
(B) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); and 
(C) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of 
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139 
proposed rulemaking and public participation in 
rulemaking. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.—In carrying out this subsection, the Sec-
retary shall use the authority provided under section 
808 of title 5, United States Code. 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE 
AGREEMENTS COMPLIANCE.— 
(1) 
REQUIRED
DETERMINATION; 
ADJUST-
MENT.—If the Secretary determines that expendi-
tures under this title that are subject to the total al-
lowable domestic support levels under the Uruguay 
Round Agreements (as defined in section 2 of the 
Uruguay Round Agreements Act (19 U.S.C. 3501)) 
will exceed the allowable levels for any applicable re-
porting period, the Secretary shall, to the maximum 
extent practicable, make adjustments in the amount 
of the expenditures during that period to ensure that 
the expenditures do not exceed the allowable levels. 
(2) CONGRESSIONAL
NOTIFICATION.—Before 
making any adjustment under paragraph (1), the 
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report describing the determination 
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made under that paragraph and the extent of the 
adjustment to be made. 
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT 
AUTHORITY. 
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 
The following provisions of the Agricultural Adjustment 
Act of 1938 shall not be applicable to the 2013 through 
2017 crops of covered commodities (as defined in section 
1104), cotton, and sugar and shall not be applicable to 
milk during the period beginning on the date of enactment 
of this Act through December 31, 2017: 
(1) Parts II through V of subtitle B of title III 
(7 U.S.C. 1326 et seq.). 
(2) In the case of upland cotton, section 377 (7 
U.S.C. 1377). 
(3) Subtitle D of title III (7 U.S.C. 1379a et 
seq.). 
(4) Title IV (7 U.S.C. 1401 et seq.). 
(b) AGRICULTURAL ACT OF 1949.—The following 
provisions of the Agricultural Act of 1949 shall not be ap-
plicable to the 2013 through 2017 crops of covered com-
modities (as defined in section 1104), cotton, and sugar 
and shall not be applicable to milk during the period be-
ginning on the date of enactment of this Act and through 
December 31, 2017: 
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141 
(1) Section 101 (7 U.S.C. 1441). 
(2) Section 103(a) (7 U.S.C. 1444(a)). 
(3) Section 105 (7 U.S.C. 1444b). 
(4) Section 107 (7 U.S.C. 1445a). 
(5) Section 110 (7 U.S.C. 1445e). 
(6) Section 112 (7 U.S.C. 1445g). 
(7) Section 115 (7 U.S.C. 1445k). 
(8) Section 201 (7 U.S.C. 1446). 
(9) Title III (7 U.S.C. 1447 et seq.). 
(10) Title IV (7 U.S.C. 1421 et seq.), other 
than sections 404, 412, and 416 (7 U.S.C. 1424, 
1429, and 1431). 
(11) Title V (7 U.S.C. 1461 et seq.). 
(12) Title VI (7 U.S.C. 1471 et seq.). 
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 
The joint resolution entitled ‘‘A joint resolution relating 
to corn and wheat marketing quotas under the Agricul-
tural Adjustment Act of 1938, as amended’’, approved 
May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be 
applicable to the crops of wheat planted for harvest in the 
calendar years 2013 through 2017. 
SEC. 1603. PAYMENT LIMITATIONS. 
(a) IN GENERAL.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking sub-
sections (b) and (c) and inserting the following: 
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‘‘(b) LIMITATION ON PAYMENTS FOR COVERED COM-
MODITIES (OTHER THAN PEANUTS).—The total amount 
of payments received, directly or indirectly, by a person 
or legal entity (except a joint venture or general partner-
ship) for any crop year under subtitle A of title I of the 
Federal Agriculture Reform and Risk Management Act of 
2012 for 1 or more covered commodities (other than pea-
nuts) may not exceed $125,000. 
‘‘(c) LIMITATION ON PAYMENTS FOR PEANUTS.— 
The total amount of payments received, directly or indi-
rectly, by a person or legal entity (except a joint venture 
or general partnership) for any crop year under subtitle 
A of title I of the Federal Agriculture Reform and Risk 
Management Act of 2012 for peanuts may not exceed 
$125,000.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1001(f) of the Food Security Act of 
1985 (7 U.S.C. 1308(f)) is amended by striking ‘‘or 
title XII’’ each place it appears in paragraphs (5)(A) 
and (6)(A) and inserting ‘‘, title I of the Federal Ag-
riculture Reform and Risk Management Act of 
2012, or title XII’’. 
(2) Section 1001C(a) of the Food Security Act 
of 1985 (7 U.S.C. 1308–3(a)) is amended by insert-
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143 
ing ‘‘title I of the Federal Agriculture Reform and 
Risk Management Act of 2012,’’ after ‘‘2008,’’. 
(c) APPLICATION.—The amendments made by this 
section shall apply beginning with the 2013 crop year. 
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 
(a) LIMITATIONS AND COVERED BENEFITS.—Section 
1001D(b) of the Food Security Act of 1985 (7 U.S.C. 
1308–3a(b)) is amended— 
(1) in the subsection heading, by striking ‘‘LIM-
ITATIONS’’ and inserting ‘‘LIMITATIONS
ON COM-
MODITY AND CONSERVATION PROGRAMS’’; 
(2) by striking paragraphs (1) and (2) and in-
serting the following new paragraphs: 
‘‘(1) LIMITATION.—Notwithstanding any other 
provision of law, a person or legal entity shall not 
be eligible to receive any benefit described in para-
graph (2) during a crop, fiscal, or program year, as 
appropriate, if the average adjusted gross income of 
the person or legal entity exceeds $950,000. 
‘‘(2) COVERED BENEFITS.—Paragraph (1) ap-
plies with respect to a payment or benefit under sec-
tion 1107, subtitle B or E of title I, or title II of 
the Federal Agriculture Reform and Risk Manage-
ment Act of 2012, title II of the Farm Security and 
Rural Investment Act of 2002, title II of the Food, 
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Conservation, and Energy Act of 2008, title XII of 
the Food Security Act of 1985, section 524(b) of the 
Federal Crop Insurance Act (7 U.S.C. 1524(b)), or 
section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333).’’. 
(b) ELIMINATION OF UNUSED DEFINITIONS.—Para-
graph (1) of section 1001D(a) of the Food Security Act 
of 1985 (7 U.S.C. 1308–3a(a)) is amended to read as fol-
lows: 
‘‘(1) AVERAGE ADJUSTED GROSS INCOME.—In 
this section, the term ‘average adjusted gross in-
come’, with respect to a person or legal entity, 
means the average of the adjusted gross income or 
comparable measure of the person or legal entity 
over the 3 taxable years preceding the most imme-
diately preceding complete taxable year, as deter-
mined by the Secretary.’’. 
(c) INCOME DETERMINATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) is amend-
ed— 
(1) by striking subsection (c); and 
(2) by redesignating subsections (d), (e), and 
(f) as subsections (c), (d), and (e), respectively. 
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145 
(d) CONFORMING AMENDMENTS.—Section 1001D of 
the Food Security Act of 1985 (7 U.S.C. 1308–3a) is 
amended— 
(1) in subsection (a)(2)— 
(A) by striking ‘‘subparagraph (A) or (B) 
of’’; and 
(B) by striking ‘‘, the average adjusted 
gross farm income, and the average adjusted 
gross nonfarm income’’; 
(2) in subsection (a)(3), by striking ‘‘, average 
adjusted gross farm income, and average adjusted 
gross nonfarm income’’ both places it appears; 
(3) in subsection (c) (as redesignated by sub-
section (c)(2) of this section)— 
(A) in paragraph (1), by striking ‘‘, aver-
age adjusted gross farm income, and average 
adjusted gross nonfarm income’’ both places it 
appears; and 
(B) in paragraph (2), by striking ‘‘para-
graphs (1)(C) and (2)(B) of subsection (b)’’ 
and inserting ‘‘subsection (b)(2)’’; and 
(4) in subsection (d) (as redesignated by sub-
section (c)(2) of this section)— 
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146 
(A) by striking ‘‘paragraphs (1)(C) and 
(2)(B) of subsection (b)’’ and inserting ‘‘sub-
section (b)(2)’’; and 
(B) by striking ‘‘, average adjusted gross 
farm income, or the average adjusted gross 
nonfarm income’’. 
(e) EFFECTIVE PERIOD.—Subsection (e) of section 
1001D of the Food Security Act of 1985 (7 U.S.C. 1308– 
3a), as redesignated by subsection (c)(2) of this section, 
is amended by striking ‘‘2009 through 2012’’ and insert-
ing ‘‘2013 through 2017’’. 
(f) 
LIMITATION
ON
APPLICABILITY.—Section 
1001(d) of the Food Security Act of 1985 (7 U.S.C. 1308) 
is amended by inserting before the period at the end the 
following: ‘‘or title I of the Federal Agriculture Reform 
and Risk Management Act of 2012’’. 
(g) TRANSITION.—Section 1001D of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308-3a), as in effect on the 
day before the date of the enactment of this Act, shall 
apply with respect to the 2012 crop, fiscal, or program 
year, as appropriate, for each program described in para-
graphs (1)(C) and (2)(B) of subsection (b) of that section 
(as so in effect on that date). 
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147 
SEC. 1605. GEOGRAPHICALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
Section 1621(d) of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8792(d)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 1606. 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 ‘‘and title I of the Food, Conservation, and En-
ergy Act of 2008’’ each place it appears and inserting 
‘‘title I of the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8702 et seq.), and title I of the Federal 
Agriculture Reform and Risk Management Act of 2012’’. 
SEC. 1607. PREVENTION OF DECEASED INDIVIDUALS RE-
CEIVING 
PAYMENTS 
UNDER 
FARM 
COM-
MODITY PROGRAMS. 
(a) RECONCILIATION.—At least twice each year, the 
Secretary shall reconcile social security numbers of all in-
dividuals who receive payments under this title, whether 
directly or indirectly, with the Commissioner of Social Se-
curity to determined if the individuals are alive. 
(b) PRECLUSION.—The Secretary shall preclude the 
issuance of payments to, and on behalf of, deceased indi-
viduals that were not eligible for payments. 
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148 
SEC. 1608. TECHNICAL CORRECTIONS. 
(a) MISSING PUNCTUATION.—Section 359f(c)(1)(B) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ff(c)(1)(B)) is amended by adding a period at the 
end. 
(b) ERRONEOUS CROSS REFERENCE.— 
(1) AMENDMENT.—Section 1603(g) of the 
Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 1739) is amended in para-
graphs (2) through (6) and the amendments made 
by those paragraphs by striking ‘‘1703(a)’’ each 
place it appears and inserting ‘‘1603(a)’’. 
(2) EFFECTIVE DATE.—This subsection and the 
amendments made by this subsection take effect as 
if included in the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1651). 
(c) CONTINUED APPLICABILITY OF APPROPRIATIONS 
GENERAL PROVISION.—Section 767 of division A of Pub-
lic Law 108–7 (7 U.S.C. 7911 note; 117 Stat. 48) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘sections 1101 and 1102 of 
Public Law 107–171’’ and inserting ‘‘subtitle A 
of title I of the Federal Agriculture Reform and 
Risk Management Act of 2012’’; and 
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149 
(B) by striking ‘‘such section 1102’’ and 
inserting ‘‘such subtitle’’; and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) This section, as amended by section 1608(c) of 
the Federal Agriculture Reform and Risk Management 
Act of 2012, shall take effect beginning with the 2013 
crop year.’’. 
SEC. 1609. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(g)), relating to assignment of payments, shall 
apply to payments made under this title. 
(b) NOTICE.—The producer making the assignment, 
or the assignee, shall provide the Secretary with notice, 
in such manner as the Secretary may require, of any as-
signment made under this section. 
SEC. 1610. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment 
of this Act, the Secretary may track the benefits provided, 
directly or indirectly, to individuals and entities under ti-
tles I and II and the amendments made by those titles. 
SEC. 1611. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title 
II and amendments made by those titles, if the Secretary 
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150 
approves a document, the Secretary shall not subsequently 
determine the document is inadequate or invalid because 
of the lack of authority of any person signing the docu-
ment on behalf of the applicant or any other individual, 
entity, general partnership, or joint venture, or the docu-
ments relied upon were determined inadequate or invalid, 
unless the person signing the program document know-
ingly and willfully falsified the evidence of signature au-
thority or a signature. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to 
affirm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO
RETROACTIVE
EFFECT.—A denial of 
benefits based on a lack of affirmation under para-
graph (1) shall not be retroactive with respect to 
third-party producers who were not the subject of 
the erroneous representation of authority, if the 
third-party producers— 
(A) relied on the prior approval by the Sec-
retary of the documents in good faith; and 
(B) substantively complied with all pro-
gram requirements. 
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SEC. 1612. IMPLEMENTATION. 
(a) STREAMLINING.—In implementing this title, the 
Secretary shall, to the maximum extent practicable— 
(1) seek to reduce administrative burdens and 
costs to producers by streamlining and reducing pa-
perwork, forms, and other administrative require-
ments; 
(2) improve coordination, information sharing, 
and administrative work with the Risk Management 
Agency and the Natural Resources Conservation 
Service; and 
(3) take advantage of new technologies to en-
hance efficiency and effectiveness of program deliv-
ery to producers. 
(b) MAINTENANCE OF BASE ACRES AND PAYMENT 
YIELDS.— 
(1) IN GENERAL.—The Secretary shall main-
tain through September 30, 2017, for each covered 
commodity and upland cotton, base acres and pay-
ment yields on a farm established under— 
(A)(i) in the case of covered commodities, 
sections 1101 and 1102 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
7911, 7912); and 
(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 7952); and 
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(B)(i) in the case of covered commodities, 
sections 1101 and 1102 of the Food, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8711, 
8712); and 
(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 8752). 
(2) SPECIAL RULE FOR LONG GRAIN AND ME-
DIUM GRAIN RICE.— 
(A) IN
GENERAL.—The Secretary shall 
maintain separate base acres for long grain and 
medium grain rice. 
(B) LIMITATION.—In carrying out this 
paragraph, the Secretary shall use the same 
total base acres and payment yields established 
with respect to rice under sections 1108 of the 
Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8718), as in effect on the day before the 
date of enactment of this Act, subject to any 
adjustment under section 1105. 
(c) IMPLEMENTATION.—The Secretary shall make 
available to the Farm Service Agency to carry out this 
title $100,000,000. 
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153 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 
OF CONSERVATION RESERVE PROGRAM. 
(a) EXTENSION.—Section 1231(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831(a)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2017’’. 
(b) ELIGIBLE LAND.—Section 1231(b) of the Food 
Security Act of 1985 (16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘the date 
of enactment of the Food, Conservation, and Energy 
Act of 2008’’ and inserting ‘‘the date of the enact-
ment of the Federal Agriculture Reform and Risk 
Management Act of 2012’’; 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2); 
(3) by inserting before paragraph (4) the fol-
lowing new paragraph: 
‘‘(3) grasslands that— 
‘‘(A) contain forbs or shrubland (including 
improved rangeland and pastureland) for which 
grazing is the predominant use; 
‘‘(B) are located in an area historically 
dominated by grasslands; and 
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‘‘(C) could provide habitat for animal and 
plant populations of significant ecological value 
if the land is retained in its current use or re-
stored to a natural condition;’’; 
(4) 
in 
paragraph 
(4)(C), 
by 
striking 
‘‘filterstrips devoted to trees or shrubs’’ and insert-
ing ‘‘filterstrips or riparian buffers devoted to trees, 
shrubs, or grasses’’; and 
(5) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) the portion of land in a field not enrolled 
in the conservation reserve in a case in which— 
‘‘(A) more than 50 percent of the land in 
the field is enrolled as a buffer or filterstrip, or 
more than 75 percent of the land in the field 
is enrolled as a conservation practice other than 
as a buffer or filterstrip; and 
‘‘(B) the remainder of the field is— 
‘‘(i) infeasible to farm; and 
‘‘(ii) enrolled at regular rental rates.’’. 
(c) PLANTING STATUS OF CERTAIN LAND.—Section 
1231(c) of the Food Security Act of 1985 (16 U.S.C. 
3831(c)) is amended by striking ‘‘if’’ and all that follows 
through the period at the end and inserting ‘‘if, during 
the crop year, the land was devoted to a conserving use.’’. 
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(d) ENROLLMENT.—Subsection (d) of section 1231 
of the Food Security Act of 1985 (16 U.S.C. 3831) is 
amended to read as follows: 
‘‘(d) ENROLLMENT.— 
‘‘(1) MAXIMUM
ACREAGE
ENROLLED.—The 
Secretary may maintain in the conservation reserve 
at any one time during— 
‘‘(A) fiscal year 2012, no more than 
32,000,000 acres; 
‘‘(B) fiscal year 2013, no more than 
29,000,000 acres; 
‘‘(C) fiscal year 2014, no more than 
26,000,000 acres; 
‘‘(D) fiscal year 2015, no more than 
26,000,000 acres; 
‘‘(E) fiscal year 2016, no more than 
25,500,000 acres; and 
‘‘(F) fiscal year 2017, no more than 
25,000,000 acres. 
‘‘(2) GRASSLANDS.— 
‘‘(A) LIMITATION.—For purposes of apply-
ing the limitations in paragraph (1), no more 
than 2,000,000 acres of the land described in 
subsection (b)(3) may be enrolled in the pro-
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156 
gram at any one time during the 2013 through 
2017 fiscal years. 
‘‘(B) PRIORITY.—In enrolling acres under 
subparagraph (A), the Secretary may give pri-
ority to land with expiring conservation reserve 
program contracts. 
‘‘(C) METHOD OF ENROLLMENT.—In en-
rolling acres under subparagraph (A), the Sec-
retary shall make the program available to own-
ers or operators of eligible land on a continuous 
enrollment basis with one or more ranking peri-
ods.’’. 
(e) DURATION OF CONTRACT.—Section 1231(e) of 
the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 
amended by striking paragraphs (2) and (3) and inserting 
the following new paragraph: 
‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In 
the case of land devoted to hardwood trees, 
shelterbelts, windbreaks, or wildlife corridors under 
a contract entered into under this subchapter, the 
owner or operator of the land may, within the limita-
tions prescribed under paragraph (1), specify the du-
ration of the contract.’’. 
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157 
(f) 
CONSERVATION
PRIORITY
AREAS.—Section 
1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended— 
(1) in paragraph (1), by striking ‘‘watershed 
areas of the Chesapeake Bay Region, the Great 
Lakes Region, the Long Island Sound Region, and 
other’’; 
(2) in paragraph (2), by striking ‘‘WATER-
SHEDS.—Watersheds’’ 
and 
inserting 
‘‘AREAS.— 
Areas’’; and 
(3) in paragraph (3), by striking ‘‘a watershed’s 
designation—’’ and all that follows through the pe-
riod at the end and inserting ‘‘an area’s designation 
if the Secretary finds that the area no longer con-
tains actual and significant adverse water quality or 
habitat impacts related to agricultural production 
activities.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amend-
ed— 
(1) by striking ‘‘2012’’ and inserting ‘‘2017’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’. 
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158 
(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 
the 
Food 
Security 
Act 
of 
1985 
(16 
U.S.C. 
3831b(b)(1)(B)) is amended by striking ‘‘flow from a row 
crop agriculture drainage system’’ and inserting ‘‘surface 
and subsurface flow from row crop agricultural produc-
tion’’. 
(c) ACREAGE LIMITATION.—Section 1231B(c)(1)(B) 
of the Food Security Act of 1985 (16 U.S.C. 
3831b(c)(1)(B)) is amended by striking ‘‘1,000,000’’ and 
inserting ‘‘750,000’’. 
(d) CLERICAL AMENDMENT.—The heading of section 
1231B of the Food Security Act of 1985 (16 U.S.C. 
3831b) is amended to read as follows: ‘‘FARMABLE WET-
LAND PROGRAM’’. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
(a) LIMITATION ON HARVESTING, GRAZING, OR COM-
MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the 
Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is 
amended by striking ‘‘except that’’ and all that follows 
through the semicolon at the end of the paragraph and 
inserting ‘‘except as provided in subsection (b) or (c) of 
section 1233;’’. 
(b) CONSERVATION PLAN REQUIREMENTS.—Sub-
section (b) of section 1232 of the Food Security Act of 
1985 (16 U.S.C. 3832) is amended to read as follows: 
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‘‘(b) CONSERVATION PLANS.—The plan referred to 
in subsection (a)(1) shall set forth— 
‘‘(1) the conservation measures and practices to 
be carried out by the owner or operator during the 
term of the contract; and 
‘‘(2) the commercial use, if any, to be permitted 
on the land during the term.’’. 
(c) RENTAL PAYMENT REDUCTION.—Section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by striking subsection (d). 
SEC. 2004. DUTIES OF THE SECRETARY. 
Section 1233 of the Food Security Act of 1985 (16 
U.S.C. 3833) is amended to read as follows: 
‘‘SEC. 1233. DUTIES OF THE SECRETARY. 
‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re-
turn for a contract entered into by an owner or operator 
under the conservation reserve program, the Secretary 
shall— 
‘‘(1) share the cost of carrying out the con-
servation measures and practices set forth in the 
contract for which the Secretary determines that 
cost sharing is appropriate and in the public inter-
est; and 
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160 
‘‘(2) for a period of years not in excess of the 
term of the contract, pay an annual rental payment 
in an amount necessary to compensate for— 
‘‘(A) the conversion of highly erodible crop-
land or other eligible lands normally devoted to 
the production of an agricultural commodity on 
a farm or ranch to a less intensive use; 
‘‘(B) the retirement of any base history 
that the owner or operator agrees to retire per-
manently; and 
‘‘(C) the development and management of 
grasslands for multiple natural resource con-
servation benefits, including to soil, water, air, 
and wildlife. 
‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec-
retary shall permit certain activities or commercial uses 
of land that is subject to a contract under the conservation 
reserve program in a manner that is consistent with a plan 
approved by the Secretary, as follows: 
‘‘(1) Harvesting, grazing, or other commercial 
use of the forage in response to a drought or other 
emergency created by a natural disaster, without 
any reduction in the rental rate. 
‘‘(2) Consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
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161 
during nesting seasons for birds in the area), and in 
exchange for a reduction of not less than 25 percent 
in the annual rental rate for the acres covered by 
the authorized activity— 
‘‘(A) managed harvesting and other com-
mercial use (including the managed harvesting 
of biomass), except that in permitting managed 
harvesting, the Secretary, in coordination with 
the State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted, such that the frequency is not 
more than once every three years; 
‘‘(B) routine grazing or prescribed grazing 
for the control of invasive species, except that 
in permitting such routine grazing or prescribed 
grazing, the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stock-
ing rates for the land that are suitable for 
continued routine grazing; and 
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162 
‘‘(ii) shall identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
once every two years, taking into consider-
ation regional differences such as— 
‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(C) the installation of wind turbines and 
associated access, except that in permitting the 
installation of wind turbines, the Secretary shall 
determine the number and location of wind tur-
bines that may be installed, taking into ac-
count— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land; 
‘‘(ii) the extent to which the land con-
tains wildlife and wildlife habitat; and 
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163 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter. 
‘‘(3) The intermittent and seasonal use of vege-
tative buffer practices incidental to agricultural pro-
duction on lands adjacent to the buffer such that the 
permitted use does not destroy the permanent vege-
tative cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.— 
For eligible land described in section 1231(b)(3), the Sec-
retary shall permit the following activities: 
‘‘(1) Common grazing practices, including 
maintenance and necessary cultural practices, on the 
land in a manner that is consistent with maintaining 
the viability of grassland, forb, and shrub species ap-
propriate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions dur-
ing the nesting season for critical bird species in the 
area. 
‘‘(3) Fire presuppression, fire-related rehabilita-
tion, and construction of fire breaks. 
‘‘(4) Grazing-related activities, such as fencing 
and livestock watering. 
‘‘(d) RESOURCE CONSERVING USE.— 
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164 
‘‘(1) IN GENERAL.—Beginning on the date that 
is 1 year before the date of termination of a contract 
under the program, the Secretary shall allow an 
owner or operator to make conservation and land 
improvements that facilitate maintaining protection 
of enrolled land after expiration of the contract. 
‘‘(2) CONSERVATION
PLAN.—The Secretary 
shall require an owner or operator carrying out the 
activities described in paragraph (1) to develop and 
implement a conservation plan. 
‘‘(3) RE-ENROLLMENT PROHIBITED.—Land im-
proved under paragraph (1) may not be re-enrolled 
in the conservation reserve program for 5 years after 
the date of termination of the contract.’’. 
SEC. 2005. PAYMENTS. 
(a) TREES, WINDBREAKS, SHELTERBELTS, AND 
WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the 
Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is 
amended— 
(1) in clause (i), by inserting ‘‘and’’ after the 
semicolon; 
(2) by striking clause (ii); and 
(3) by redesignating clause (iii) as clause (ii). 
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165 
(b) ANNUAL RENTAL PAYMENTS.—Section 1234(c) 
of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended— 
(1) in paragraph (1), by inserting ‘‘or other eli-
gible lands’’ after ‘‘highly erodible cropland’’ both 
places it appears; and 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) METHODS OF DETERMINATION.— 
‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental 
payments under contracts entered into under 
this subchapter may be determined through— 
‘‘(i) the submission of bids for such 
contracts by owners and operators in such 
manner as the Secretary may prescribe; or 
‘‘(ii) such other means as the Sec-
retary determines are appropriate. 
‘‘(B) GRASSLANDS.—In the case of eligible 
land described in section 1231(b)(3), the Sec-
retary shall make annual payments in an 
amount that is not more than 75 percent of the 
grazing value of the land covered by the con-
tract.’’. 
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166 
(c) PAYMENT SCHEDULE.—Subsection (d) of section 
1234 of the Food Security Act of 1985 (16 U.S.C. 3834) 
is amended to read as follows: 
‘‘(d) PAYMENT SCHEDULE.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, payments under this sub-
chapter shall be made in cash in such amount and 
on such time schedule as is agreed on and specified 
in the contract. 
‘‘(2) ADVANCE
PAYMENT.—Payments under 
this subchapter may be made in advance of deter-
mination of performance.’’. 
(d) PAYMENT LIMITATION.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘, including 
rental payments made in the form of in-kind com-
modities,’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as para-
graph (2). 
SEC. 2006. CONTRACT REQUIREMENTS. 
(a) EARLY TERMINATION
BY OWNER
OR OPER-
ATOR.—Section 1235(e) of the Food Security Act of 1985 
(16 U.S.C. 3835(e)) is amended— 
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167 
(1) in paragraph (1)(A)— 
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘During fiscal year 2013, the Sec-
retary’’; and 
(B) by striking ‘‘before January 1, 1995,’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
‘‘(C) Land devoted to hardwood trees. 
‘‘(D) Wildlife habitat, duck nesting habi-
tat, pollinator habitat, upland bird habitat buff-
er, wildlife food plots, State acres for wildlife 
enhancement, shallow water areas for wildlife, 
and rare and declining habitat. 
‘‘(E) Farmable wetland and restored wet-
land. 
‘‘(F) Land that contains diversions, ero-
sion control structures, flood control structures, 
contour grass strips, living snow fences, salinity 
reducing vegetation, cross wind trap strips, and 
sediment retention structures. 
‘‘(G) Land located within a federally-des-
ignated wellhead protection area. 
‘‘(H) Land that is covered by an easement 
under the conservation reserve program. 
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‘‘(I) Land located within an average width, 
according to the applicable Natural Resources 
Conservation Service field office technical guide, 
of a perennial stream or permanent water 
body.’’; and 
(3) in paragraph (3), by striking ‘‘60 days after 
date on which the owner or operator submits the no-
tice required under paragraph (1)(C)’’ and inserting 
‘‘upon approval by the Secretary’’. 
(b) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.—Section 1235(f) of the Food Security Act of 
1985 (16 U.S.C. 3835(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘DUTIES’’ and all that follows 
through ‘‘a beginning farmer’’ and inserting 
‘‘TRANSITION TO COVERED FARMER OR RANCH-
ER.—In the case of a contract modification ap-
proved in order to facilitate the transfer of land 
subject to a contract from a retired farmer or 
rancher to a beginning farmer’’; 
(B) in subparagraph (A)(i), by inserting ‘‘, 
including preparing to plant an agricultural 
crop’’ after ‘‘improvements’’; 
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169 
(C) in subparagraph (D), by striking ‘‘the 
farmer or rancher’’ and inserting ‘‘the covered 
farmer or rancher’’; and 
(D) in subparagraph (E), by striking ‘‘sec-
tion 1001A(b)(3)(B)’’ and inserting ‘‘section 
1001’’; and 
(2) in paragraph (2), by striking ‘‘requirement 
of section 1231(h)(4)(B)’’ and inserting ‘‘option pur-
suant to section 1234(c)(2)(A)(ii)’’. 
(c) FINAL YEAR CONTRACT.—Section 1235 of the 
Food Security Act of 1985 (16 U.S.C. 3835) is amended 
by adding at the end the following new subsections: 
‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary 
shall not consider an owner or operator to be in violation 
of a term or condition of the conservation reserve contract 
if— 
‘‘(1) during the year prior to expiration of the 
contract, the land is enrolled in the conservation 
stewardship program; and 
‘‘(2) the activity required under the conserva-
tion stewardship program pursuant to such enroll-
ment is consistent with this subchapter. 
‘‘(h) LAND ENROLLED
IN AGRICULTURAL CON-
SERVATION EASEMENT PROGRAM.—The Secretary may 
terminate or modify a contract entered into under this 
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subchapter if eligible land that is subject to such contract 
is transferred into the agricultural conservation easement 
program under subtitle H.’’. 
SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is repealed. 
SEC. 2008. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2012, except the 
amendment made by section 2001(d), which shall take ef-
fect on the date of the enactment of this Act. 
(b) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subtitle 
shall not affect the validity or terms of any contract 
entered into by the Secretary of Agriculture under 
subchapter B of chapter 1 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3831 
et seq.) before October 1, 2012, or any payments re-
quired to be made in connection with the contract. 
(2) UPDATING OF EXISTING CONTRACTS.—The 
Secretary shall permit an owner or operator of land 
subject to a contract entered into under subchapter 
B of chapter 1 of subtitle D of title XII of the Food 
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Security Act of 1985 (16 U.S.C. 3831 et seq.) be-
fore October 1, 2012, to update the contract to re-
flect the activities and uses of land under contract 
permitted under the terms and conditions of section 
1233(b) of that Act (as amended by section 2004), 
as determined appropriate by the Secretary. 
Subtitle B—Conservation 
Stewardship Program 
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 
(a) REVISION OF CURRENT PROGRAM.—Subchapter 
B of chapter 2 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3838d et seq.) is amended 
to read as follows: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL
OPERATION.—The term 
‘agricultural operation’ means all eligible land, 
whether or not contiguous, that is— 
‘‘(A) under the effective control of a pro-
ducer at the time the producer enters into a 
contract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation prac-
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tices that are substantially separate from other 
agricultural operations, as determined by the 
Secretary. 
‘‘(2) CONSERVATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a pri-
ority resource concern. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.— 
The term ‘conservation stewardship plan’ means a 
plan that— 
‘‘(A) identifies and inventories priority re-
source concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
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‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation ac-
tivities. 
‘‘(4) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means— 
‘‘(i) private or tribal land on which 
agricultural commodities, livestock, or for-
est-related products are produced; and 
‘‘(ii) lands associated with the land 
described in clause (i) on which priority re-
source 
concerns 
could 
be 
addressed 
through a contract under the program. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pasture land; 
‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural areas (includ-
ing cropped woodland, marshes, and agri-
cultural land used or capable of being used 
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for the production of livestock), as deter-
mined by the Secretary. 
‘‘(5) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a natural re-
source concern or problem, as determined by the 
Secretary, that— 
‘‘(A) is identified at the national, State, or 
local level as a priority for a particular area of 
a State; 
‘‘(B) represents a significant concern in a 
State or region; and 
‘‘(C) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities under this program. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the conservation stewardship program established by 
this subchapter. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of manage-
ment required, as determined by the Secretary, to 
conserve and improve the quality and condition of a 
natural resource. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 
of fiscal years 2013 through 2017, the Secretary shall 
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carry out a conservation stewardship program to encour-
age producers to address priority resource concerns in a 
comprehensive manner— 
‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining, and managing 
existing conservation activities. 
‘‘(b) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land (even if covered by the definition of eli-
gible land) is not eligible for enrollment in the pro-
gram: 
‘‘(A) Land enrolled in the conservation re-
serve program, unless— 
‘‘(i) the conservation reserve contract 
will expire at the end of the fiscal year in 
which the land is to be enrolled in the pro-
gram; and 
‘‘(ii) conservation reserve program 
payments for land enrolled in the program 
cease before the first program payment is 
made to the applicant under this sub-
chapter. 
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‘‘(B) Land enrolled in a wetland easement 
through the agricultural conservation easement 
program. 
‘‘(C) Land enrolled in the conservation se-
curity program. 
‘‘(2) CONVERSION
TO
CROPLAND.—Eligible 
land used for crop production after October 1, 2012, 
that had not been planted, considered to be planted, 
or devoted to crop production for at least 4 of the 
6 years preceding that date shall not be the basis for 
any payment under the program, unless the land 
does not meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as de-
termined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli-
gible to participate in the conservation stewardship pro-
gram, a producer shall submit to the Secretary a contract 
offer for the agricultural operation that— 
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‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
tract offer, meets or exceeds the stewardship thresh-
old for at least 2 priority resource concerns; and 
‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 additional pri-
ority resource concern by the end of the stewardship 
contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging existing conservation activities across the 
entire agricultural operation in a manner that 
increases or extends the conservation benefits in 
place at the time the contract offer is accepted 
by the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING
OF
APPLICATIONS.—In evalu-
ating contract offers submitted under subsection (a), 
the Secretary shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application; 
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‘‘(B) the degree to which the proposed con-
servation activities effectively increase conserva-
tion performance; 
‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet 
or exceed the stewardship threshold by the end 
of the contract; 
‘‘(D) the extent to which other priority re-
source concerns will be addressed to meet or ex-
ceed the stewardship threshold by the end of 
the contract period; 
‘‘(E) the extent to which the actual and 
anticipated conservation benefits from the con-
tract are provided at the least cost relative to 
other similarly beneficial contract offers; and 
‘‘(F) the extent to which priority resource 
concerns will be addressed when transitioning 
from the conservation reserve program to agri-
cultural production. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL
CRITERIA.—The Secretary 
may develop and use such additional criteria that 
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the Secretary determines are necessary to ensure 
that national, State, and local priority resource con-
cerns are effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a deter-
mination that a producer is eligible for the program under 
subsection (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conserva-
tion stewardship contract with the producer to enroll the 
eligible land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) REQUIRED PROVISIONS.—The conservation 
stewardship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for 
each year of the conservation stewardship con-
tract under section 1238G(d); 
‘‘(B) require the producer— 
‘‘(i) to implement a conservation stew-
ardship plan that describes the program 
purposes to be achieved through 1 or more 
conservation activities; 
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‘‘(ii) to maintain and supply informa-
tion as required by the Secretary to deter-
mine compliance with the conservation 
stewardship plan and any other require-
ments of the program; and 
‘‘(iii) not to conduct any activities on 
the agricultural operation that would tend 
to defeat the purposes of the program; 
‘‘(C) permit all economic uses of the eligi-
ble land that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control 
of the producer, including a disaster or related 
condition, as determined by the Secretary; 
‘‘(E) include provisions requiring that 
upon the violation of a term or condition of the 
contract at any time the producer has control 
of the land— 
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‘‘(A) IN GENERAL.—At the time of appli-
cation, a producer shall have control of the eli-
gible land to be enrolled in the program. Except 
as provided in subparagraph (B), a change in 
the interest of a producer in eligible land cov-
ered by a contract under the program shall re-
sult in the termination of the contract with re-
gard 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 eligi-
ble land covered by a contract under the 
program, the transferee of the land pro-
vides written notice to the Secretary that 
all duties and rights under the contract 
have been transferred to, and assumed by, 
the transferee for the portion of the land 
transferred; 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program; and 
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‘‘(iii) the Secretary approves the 
transfer of all duties and rights under the 
contract. 
‘‘(4) MODIFICATION
AND
TERMINATION
OF 
CONTRACTS.— 
‘‘(A) VOLUNTARY MODIFICATION OR TER-
MINATION.—The Secretary may modify or ter-
minate a contract with a producer if— 
‘‘(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. 
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‘‘(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; 
‘‘(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 con-
cerns 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 con-
tract. 
‘‘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; 
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‘‘(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 
threshold for each priority resource concern identi-
fied under paragraph (2). 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate 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 
production in each State; 
‘‘(B) the degree to which implementation 
of the program in the State is, or will be, effec-
tive 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, 2012, and ending on 
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September 30, 2021, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
9,000,000 acres for each fiscal year; and 
‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses 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 
determined by the Secretary and based, to the max-
imum extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer asso-
ciated with planning, design, materials, installa-
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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-
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 
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‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the 
producer. 
‘‘(4) DELIVERY
OF
PAYMENTS.—In making 
payments under this subsection, the Secretary shall, 
to the extent practicable— 
‘‘(A) prorate conservation performance 
over the term of the contract so as to accommo-
date, to the extent practicable, producers earn-
ing equal annual payments in each fiscal year; 
and 
‘‘(B) make payments as soon as prac-
ticable after October 1 of each fiscal year for 
activities carried out in the previous fiscal year. 
‘‘(e) SUPPLEMENTAL PAYMENTS
FOR RESOURCE- 
CONSERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide additional payments to pro-
ducers that, in participating in the program, agree 
to adopt or improve resource-conserving crop rota-
tions to achieve beneficial crop rotations as appro-
priate 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 
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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 re-
source-conserving crop rotations for the term of the 
contract. 
‘‘(4) 
RESOURCE-CONSERVING
CROP
ROTA-
TION.—In this subsection, the term ‘resource-con-
serving crop rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource con-
serving 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 enti-
ty 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 2013 
through 2017, excluding funding arrangements with In-
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dian 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 
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, 2012. 
(c) EFFECT ON EXISTING CONTRACTS.— 
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(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 Agri-
culture 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, 2012, or 
any payments required to be made in connection 
with the contract. 
(2) CONSERVATION STEWARDSHIP PROGRAM.— 
Funds made available under section 1241(a)(4) of 
the 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 participants that enrolled into contracts 
during any of fiscal years 2009 through 2012. 
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; 
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(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). 
SEC. 2202. DEFINITIONS. 
Section 1240A of the Food Security Act of 1985 (16 
U.S.C. 3839aa–1) is amended by striking paragraphs (2) 
and (3) and redesignating paragraphs (4) through (6) as 
paragraphs (2) through (4), respectively. 
SEC. 2203. 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 
inserting ‘‘2017’’; 
(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)— 
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193 
(A) in subparagraph (A), in the matter 
preceding 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 beginning 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-
ing the 90-day period beginning on the 
date of receipt of the funds, the funds shall 
be returned 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 
2013 through 2017, at least 60 percent of the funds 
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made available for payments under the program 
shall be targeted at practices relating to livestock 
production. 
‘‘(2) WILDLIFE HABITAT.—For each of fiscal 
years 2013 through 2017, 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 COR-
PORATIONS’’ and inserting ‘‘INDIAN TRIBES’’; 
(B) by striking ‘‘federally recognized Na-
tive American Indian Tribes and Alaska Native 
Corporations (including their affiliated member-
ship organizations)’’ and inserting ‘‘Indian 
tribes’’; and 
(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 under the program 
for conservation practices that support the restoration, de-
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velopment, and improvement of wildlife habitat on eligible 
land, including— 
‘‘(1) upland wildlife habitat; 
‘‘(2) wetland wildlife habitat; 
‘‘(3) habitat for threatened and endangered 
species; 
‘‘(4) fish habitat; 
‘‘(5) habitat on pivot corners and other irreg-
ular areas of a field; and 
‘‘(6) other types of wildlife habitat, as deter-
mined appropriate by the Secretary.’’. 
SEC. 2204. 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 speci-
fied in section 1240(1)’’ and inserting ‘‘purposes of 
the program’’. 
SEC. 2205. 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. 2206. 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 con-
tracts entered into under this chapter by the person or 
legal entity during the period of fiscal years 2013 through 
2017, regardless of the number of contracts entered into 
under this chapter by the person or legal entity.’’. 
SEC. 2207. 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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‘‘(F) facilitate pilot testing of new tech-
nologies or innovative conservation practices.’’; 
and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) REPORTING.—Not later than December 31, 
2013, and every two years thereafter, the Secretary shall 
submit to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture 
of the House of Representatives a report on the status 
of projects funded under this section, including— 
‘‘(1) funding awarded; 
‘‘(2) project results; and 
‘‘(3) incorporation of project findings, such as 
new technology and innovative approaches, into the 
conservation efforts implemented by the Secretary.’’. 
SEC. 2208. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2012. 
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ments made by this subtitle shall not affect the validity 
or terms of any contract entered into by the Secretary of 
Agriculture under chapter 4 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
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before October 1, 2012, or any payments required to be 
made in connection with the contract. 
Subtitle D—Agricultural 
Conservation Easement Program 
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT 
PROGRAM. 
(a) ESTABLISHMENT.—Title XII of the Food Secu-
rity Act of 1985 is amended by adding at the end the fol-
lowing new subtitle: 
‘‘Subtitle H—Agricultural 
Conservation Easement Program 
‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an agricultural conservation easement program for the 
conservation of eligible land and natural resources through 
easements or other interests in land. 
‘‘(b) PURPOSES.—The purposes of the program are 
to— 
‘‘(1) combine the purposes and coordinate the 
functions of the wetlands reserve program estab-
lished under section 1237, the grassland reserve pro-
gram established under section 1238N, and the 
farmland protection program established under sec-
tion 1238I, as such sections were in effect on Sep-
tember 30, 2012; 
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‘‘(2) restore, protect, and enhance wetlands on 
eligible land; 
‘‘(3) protect the agricultural use and related 
conservation values of eligible land by limiting non-
agricultural uses of that land; and 
‘‘(4) protect grazing uses and related conserva-
tion values by restoring and conserving eligible land. 
‘‘SEC. 1265A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) AGRICULTURAL
LAND
EASEMENT.—The 
term ‘agricultural land easement’ means an ease-
ment or other interest in eligible land that— 
‘‘(A) is conveyed for the purpose of pro-
tecting natural resources and the agricultural 
nature of the land; and 
‘‘(B) permits the landowner the right to 
continue agricultural production and related 
uses subject to an agricultural land easement 
plan, as approved by the Secretary. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) an agency of State or local govern-
ment or an Indian tribe (including a farmland 
protection board or land resource council estab-
lished under State law); or 
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‘‘(B) an organization that is— 
‘‘(i) organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in 
clause (i), (ii), (iii), or (iv) of section 
170(h)(4)(A) of the Internal Revenue Code 
of 1986; 
‘‘(ii) an organization described in sec-
tion 501(c)(3) of that Code that is exempt 
from taxation under section 501(a) of that 
Code; or 
‘‘(iii) described in— 
‘‘(I) paragraph (1) or (2) of sec-
tion 509(a) of that Code; or 
‘‘(II) section 509(a)(3) of that 
Code and is controlled by an organiza-
tion described in section 509(a)(2) of 
that Code. 
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 
means private or tribal land that is— 
‘‘(A) in the case of an agricultural land 
easement, agricultural land, including land on a 
farm or ranch— 
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‘‘(i) that is subject to a pending offer 
for purchase of an agricultural land ease-
ment from an eligible entity; 
‘‘(ii) that— 
‘‘(I) has prime, unique, or other 
productive soil; 
‘‘(II) contains historical or ar-
chaeological resources; or 
‘‘(III) the protection of which will 
further a State or local policy con-
sistent with the purposes of the pro-
gram; and 
‘‘(iii) that is— 
‘‘(I) cropland; 
‘‘(II) rangeland; 
‘‘(III) grassland or land that con-
tains forbs, or shrubland for which 
grazing is the predominate use; 
‘‘(IV) pastureland; or 
‘‘(V) nonindustrial private forest 
land that contributes to the economic 
viability of an offered parcel or serves 
as a buffer to protect such land from 
development; 
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‘‘(B) in the case of a wetland easement, a 
wetland or related area, including— 
‘‘(i) farmed or converted wetlands, to-
gether with adjacent land that is function-
ally dependent on that land, if the Sec-
retary determines it— 
‘‘(I) is likely to be successfully 
restored in a cost effective manner; 
and 
‘‘(II) will maximize the wildlife 
benefits and wetland functions and 
values, as determined by the Secretary 
in consultation with the Secretary of 
the Interior at the local level; 
‘‘(ii) cropland or grassland that was 
used for agricultural production prior to 
flooding from the natural overflow of— 
‘‘(I) a closed basin lake and adja-
cent land that is functionally depend-
ent upon it, if the State or other enti-
ty is willing to provide 50 percent 
share of the cost of an easement; 
‘‘(II) a pothole and adjacent land 
that is functionally dependent on it; 
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‘‘(iii) farmed wetlands and adjoining 
lands that— 
‘‘(I) are enrolled in the conserva-
tion reserve program; 
‘‘(II) have the highest wetland 
functions and values, as determined 
by the Secretary; and 
‘‘(III) are likely to return to pro-
duction after they leave the conserva-
tion reserve program; 
‘‘(iv) riparian areas that link wetlands 
that are protected by easements or some 
other device that achieves the same pur-
pose as an easement; or 
‘‘(v) other wetlands of an owner that 
would not otherwise be eligible, if the Sec-
retary determines that the inclusion of 
such wetlands in a wetland easement would 
significantly add to the functional value of 
the easement; or 
‘‘(C) in the case of either an agricultural 
land easement or wetland easement, other land 
that is incidental to land described in subpara-
graph (A) or (B), if the Secretary determines 
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that it is necessary for the efficient administra-
tion of the easements under this program. 
‘‘(4) PROGRAM.—The term ‘program’ means 
the agricultural conservation easement program es-
tablished by this subtitle. 
‘‘(5) WETLAND EASEMENT.—The term ‘wetland 
easement’ means a reserved interest in eligible land 
that— 
‘‘(A) is defined and delineated in a deed; 
and 
‘‘(B) stipulates— 
‘‘(i) the rights, title, and interests in 
land conveyed to the Secretary; and 
‘‘(ii) the rights, title, and interests in 
land that are reserved to the landowner. 
‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall facilitate and provide funding for— 
‘‘(1) the purchase by eligible entities of agricul-
tural land easements and other interests in eligible 
land; and 
‘‘(2) technical assistance to provide for the con-
servation of natural resources pursuant to an agri-
cultural land easement plan. 
‘‘(b) COST-SHARE ASSISTANCE.— 
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‘‘(1) IN GENERAL.—The Secretary shall protect 
the agricultural use, including grazing, and related 
conservation values of eligible land through cost- 
share assistance to eligible entities for purchasing 
agricultural land easements. 
‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 
‘‘(A) FEDERAL SHARE.—An agreement de-
scribed in paragraph (4) shall provide for a 
Federal share determined by the Secretary of 
an amount not to exceed 50 percent of the fair 
market value of the agricultural land easement 
or other interest in land, as determined by the 
Secretary using— 
‘‘(i) the Uniform Standards of Profes-
sional Appraisal Practice; 
‘‘(ii) an area-wide market analysis or 
survey; or 
‘‘(iii) another industry-approved meth-
od. 
‘‘(B) NON-FEDERAL SHARE.— 
‘‘(i) IN GENERAL.—Under the agree-
ment, the eligible entity shall provide a 
share that is at least equivalent to that 
provided by the Secretary. 
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‘‘(ii) SOURCE OF CONTRIBUTION.—An 
eligible entity may include as part of its 
share a charitable donation or qualified 
conservation contribution (as defined by 
section 170(h) of the Internal Revenue 
Code of 1986) from the private landowner 
if the eligible entity contributes its own 
cash resources in an amount that is at 
least 50 percent of the amount contributed 
by the Secretary. 
‘‘(C) EXCEPTION.—In the case of grass-
land of special environmental significance, as 
determined by the Secretary, the Secretary may 
provide an amount not to exceed 75 percent of 
the fair market value of the agricultural land 
easement. 
‘‘(3) EVALUATION AND RANKING OF APPLICA-
TIONS.— 
‘‘(A) CRITERIA.—The Secretary shall es-
tablish evaluation and ranking criteria to maxi-
mize the benefit of Federal investment under 
the program. 
‘‘(B) CONSIDERATIONS.—In establishing 
the criteria, the Secretary shall emphasize sup-
port for— 
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‘‘(i) protecting agricultural uses and 
related conservation values of the land; and 
‘‘(ii) maximizing the protection of 
areas devoted to agricultural use. 
‘‘(C) BIDDING
DOWN.—If the Secretary 
determines that 2 or more applications for cost- 
share assistance are comparable in achieving 
the purpose of the program, the Secretary shall 
not assign a higher priority to any of those ap-
plications solely on the basis of lesser cost to 
the program. 
‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
enter into agreements with eligible entities to 
stipulate the terms and conditions under which 
the eligible entity is permitted to use cost-share 
assistance provided under this section. 
‘‘(B) 
LENGTH
OF
AGREEMENTS.—An 
agreement shall be for a term that is— 
‘‘(i) in the case of an eligible entity 
certified under the process described in 
paragraph (5), a minimum of five years; 
and 
‘‘(ii) for all other eligible entities, at 
least three, but not more than five years. 
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‘‘(C) MINIMUM TERMS AND CONDITIONS.— 
An eligible entity shall be authorized to use its 
own terms and conditions for agricultural land 
easements so long as the Secretary determines 
such terms and conditions— 
‘‘(i) are consistent with the purposes 
of the program; 
‘‘(ii) permit effective enforcement of 
the conservation purposes of such ease-
ments; 
‘‘(iii) include a right of enforcement 
for the Secretary, that may be used only if 
the terms of the easement are not enforced 
by the holder of the easement; 
‘‘(iv) subject the land in which an in-
terest is purchased to an agricultural land 
easement plan that— 
‘‘(I) describes the activities which 
promote the long-term viability of the 
land to meet the purposes for which 
the easement was acquired; 
‘‘(II) requires the management of 
grasslands according to a grasslands 
management plan; and 
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‘‘(III) includes a conservation 
plan, where appropriate, and requires, 
at the option of the Secretary, the 
conversion of highly erodible cropland 
to less intensive uses; and 
‘‘(v) include a limit on the impervious 
surfaces to be allowed that is consistent 
with the agricultural activities to be con-
ducted. 
‘‘(D) 
SUBSTITUTION
OF
QUALIFIED 
PROJECTS.—An agreement shall allow, upon 
mutual agreement of the parties, substitution of 
qualified projects that are identified at the time 
of the proposed substitution. 
‘‘(E) EFFECT OF VIOLATION.—If a viola-
tion occurs of a term or condition of an agree-
ment under this subsection— 
‘‘(i) the Secretary may terminate the 
agreement; and 
‘‘(ii) the Secretary may require the el-
igible entity to refund all or part of any 
payments received by the entity under the 
program, with interest on the payments as 
determined appropriate by the Secretary. 
‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 
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‘‘(A) CERTIFICATION PROCESS.—The Sec-
retary shall establish a process under which the 
Secretary may— 
‘‘(i) directly certify eligible entities 
that meet established criteria; 
‘‘(ii) enter into long-term agreements 
with certified eligible entities; and 
‘‘(iii) accept proposals for cost-share 
assistance for the purchase of agricultural 
land easements throughout the duration of 
such agreements. 
‘‘(B) CERTIFICATION CRITERIA.—In order 
to be certified, an eligible entity shall dem-
onstrate to the Secretary that the entity will 
maintain, at a minimum, for the duration of the 
agreement— 
‘‘(i) a plan for administering ease-
ments that is consistent with the purpose 
of this subtitle; 
‘‘(ii) the capacity and resources to 
monitor and enforce agricultural land ease-
ments; and 
‘‘(iii) policies and procedures to en-
sure— 
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‘‘(I) the long-term integrity of 
agricultural land easements on eligible 
land; 
‘‘(II) timely completion of acqui-
sitions of such easements; and 
‘‘(III) timely and complete eval-
uation and reporting to the Secretary 
on the use of funds provided under 
the program. 
‘‘(C) REVIEW AND REVISION.— 
‘‘(i) REVIEW.—The Secretary shall 
conduct a review of eligible entities cer-
tified under subparagraph (A) every three 
years to ensure that such entities are 
meeting the criteria established under sub-
paragraph (B). 
‘‘(ii) REVOCATION.—If the Secretary 
finds that the certified eligible entity no 
longer meets the criteria established under 
subparagraph (B), the Secretary may— 
‘‘(I) allow the certified eligible 
entity a specified period of time, at a 
minimum 180 days, in which to take 
such actions as may be necessary to 
meet the criteria; and 
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‘‘(II) revoke the certification of 
the eligible entity, if after the speci-
fied period of time, the certified eligi-
ble entity does not meet such criteria. 
‘‘(c) METHOD
OF ENROLLMENT.—The Secretary 
shall enroll eligible land under this section through the use 
of— 
‘‘(1) permanent easements; or 
‘‘(2) easements for the maximum duration al-
lowed under applicable State laws. 
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may 
provide technical assistance, if requested, to assist in— 
‘‘(1) compliance with the terms and conditions 
of easements; and 
‘‘(2) implementation of an agricultural land 
easement plan. 
‘‘SEC. 1265C. WETLAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall provide assistance to owners of eligible land to re-
store, protect, and enhance wetlands through— 
‘‘(1) wetland easements and related wetland 
easement plans; and 
‘‘(2) technical assistance. 
‘‘(b) EASEMENTS.— 
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‘‘(1) METHOD
OF
ENROLLMENT.—The Sec-
retary shall enroll eligible land under this section 
through the use of— 
‘‘(A) 30-year easements; 
‘‘(B) permanent easements; 
‘‘(C) easements for the maximum duration 
allowed under applicable State laws; or 
‘‘(D) as an option for Indian tribes only, 
30-year contracts (which shall be considered to 
be 30-year easements for the purposes of this 
subtitle). 
‘‘(2) LIMITATIONS.— 
‘‘(A) INELIGIBLE
LAND.—The Secretary 
may not acquire easements on— 
‘‘(i) land established to trees under 
the conservation reserve program, except in 
cases where the Secretary determines it 
would further the purposes of the program; 
and 
‘‘(ii) farmed wetlands or converted 
wetlands where the conversion was not 
commenced prior to December 23, 1985. 
‘‘(B) CHANGES IN OWNERSHIP.—No wet-
land easement shall be created on land that has 
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changed ownership during the preceding 24- 
month period unless— 
‘‘(i) the new ownership was acquired 
by will or succession as a result of the 
death of the previous owner; 
‘‘(ii)(I) the ownership change occurred 
because of foreclosure on the land; and 
‘‘(II) immediately before the fore-
closure, the owner of the land exercises a 
right of redemption from the mortgage 
holder in accordance with State law; or 
‘‘(iii) the Secretary determines that 
the land was acquired under circumstances 
that give adequate assurances that such 
land was not acquired for the purposes of 
placing it in the program. 
‘‘(3) EVALUATION AND RANKING OF OFFERS.— 
‘‘(A) CRITERIA.—The Secretary shall es-
tablish evaluation and ranking criteria to maxi-
mize the benefit of Federal investment under 
the program. 
‘‘(B) CONSIDERATIONS.—When evaluating 
offers from landowners, the Secretary may con-
sider— 
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‘‘(i) the conservation benefits of ob-
taining a wetland easement, including the 
potential environmental benefits if the land 
was removed from agricultural production; 
‘‘(ii) the cost-effectiveness of each 
wetland easement, so as to maximize the 
environmental benefits per dollar expended; 
‘‘(iii) whether the landowner or an-
other person is offering to contribute fi-
nancially to the cost of the wetland ease-
ment to leverage Federal funds; and 
‘‘(iv) such other factors as the Sec-
retary determines are necessary to carry 
out the purposes of the program. 
‘‘(C) PRIORITY.—The Secretary shall place 
priority on acquiring wetland easements based 
on the value of the wetland easement for pro-
tecting and enhancing habitat for migratory 
birds and other wildlife. 
‘‘(4) AGREEMENT.—To be eligible to place eligi-
ble land into the program through a wetland ease-
ment, the owner of such land shall enter into an 
agreement with the Secretary to— 
‘‘(A) grant an easement on such land to 
the Secretary; 
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‘‘(B) authorize the implementation of a 
wetland easement plan developed for the eligible 
land under subsection (f); 
‘‘(C) create and record an appropriate 
deed restriction in accordance with applicable 
State law to reflect the easement agreed to; 
‘‘(D) provide a written statement of con-
sent to such easement signed by those holding 
a security interest in the land; 
‘‘(E) comply with the terms and conditions 
of the easement and any related agreements; 
and 
‘‘(F) permanently retire any existing base 
history for the land on which the easement has 
been obtained. 
‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— 
‘‘(A) IN GENERAL.—A wetland easement 
shall include terms and conditions that— 
‘‘(i) permit— 
‘‘(I) repairs, improvements, and 
inspections on the land that are nec-
essary to maintain existing public 
drainage systems; and 
‘‘(II) owners to control public ac-
cess on the easement areas while iden-
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tifying access routes to be used for 
restoration activities and management 
and easement monitoring; 
‘‘(ii) prohibit— 
‘‘(I) the alteration of wildlife 
habitat and other natural features of 
such land, unless specifically author-
ized by the Secretary; 
‘‘(II) the spraying of such land 
with chemicals or the mowing of such 
land, except where such spraying or 
mowing is authorized by the Secretary 
or is necessary— 
‘‘(aa) to comply with Fed-
eral or State noxious weed con-
trol laws; 
‘‘(bb) to comply with a Fed-
eral or State emergency pest 
treatment program; or 
‘‘(cc) to meet habitat needs 
of specific wildlife species; 
‘‘(III) any activities to be carried 
out on the owner’s or successor’s land 
that is immediately adjacent to, and 
functionally related to, the land that 
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is subject to the easement if such ac-
tivities will alter, degrade, or other-
wise diminish the functional value of 
the eligible land; and 
‘‘(IV) the adoption of any other 
practice that would tend to defeat the 
purposes of the program, as deter-
mined by the Secretary; 
‘‘(iii) provide for the efficient and ef-
fective establishment of wildlife functions 
and values; and 
‘‘(iv) include such additional provi-
sions as the Secretary determines are de-
sirable to carry out the program or facili-
tate the practical administration thereof. 
‘‘(B) VIOLATION.—On the violation of the 
terms or conditions of a wetland easement, the 
wetland easement shall remain in force and the 
Secretary may require the owner to refund all 
or part of any payments received by the owner 
under the program, together with interest 
thereon as determined appropriate by the Sec-
retary. 
‘‘(C) COMPATIBLE USES.—Land subject to 
a wetland easement may be used for compatible 
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economic uses, including such activities as 
hunting and fishing, managed timber harvest, 
or periodic haying or grazing, if such use is spe-
cifically permitted by the wetland easement plan 
developed for the land under subsection (f) and 
is consistent with the long-term protection and 
enhancement of the wetland resources for which 
the easement was established. 
‘‘(D) 
RESERVATION
OF
GRAZING 
RIGHTS.—The Secretary may include in the 
terms and conditions of a wetland easement a 
provision under which the owner reserves graz-
ing rights if— 
‘‘(i) the Secretary determines that the 
reservation and use of the grazing rights— 
‘‘(I) is compatible with the land 
subject to the easement; 
‘‘(II) is consistent with the his-
torical natural uses of the land and 
the long-term protection and enhance-
ment goals for which the easement 
was established; and 
‘‘(III) complies with the wetland 
easement plan developed for the land 
under subsection (f); and 
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‘‘(ii) the agreement provides for a 
commensurate reduction in the easement 
payment to account for the grazing value, 
as determined by the Secretary. 
‘‘(6) COMPENSATION.— 
‘‘(A) DETERMINATION.— 
‘‘(i) PERMANENT
EASEMENTS.—The 
Secretary shall pay as compensation for a 
permanent 
wetland 
easement 
acquired 
under the program an amount necessary to 
encourage enrollment in the program, 
based on the lowest of— 
‘‘(I) the fair market value of the 
land, as determined by the Secretary, 
using the Uniform Standards of Pro-
fessional Appraisal Practice or an 
area-wide market analysis or survey; 
‘‘(II) the amount corresponding 
to a geographical cap, as determined 
by the Secretary in regulations; or 
‘‘(III) the offer made by the 
landowner. 
‘‘(ii) 
30-YEAR
EASEMENTS.—Com-
pensation for a 30-year wetland easement 
shall be not less than 50 percent, but not 
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more than 75 percent, of the compensation 
that would be paid for a permanent wet-
land easement. 
‘‘(B) FORM OF PAYMENT.—Compensation 
for a wetland easement shall be provided by the 
Secretary in the form of a cash payment, in an 
amount determined under subparagraph (A). 
‘‘(C) PAYMENT SCHEDULE.— 
‘‘(i) EASEMENTS VALUED AT $500,000 
OR LESS.—For wetland easements valued 
at $500,000 or less, the Secretary may 
provide easement payments in not more 
than 10 annual payments. 
‘‘(ii) EASEMENTS VALUED AT MORE 
THAN
$500,000.—For wetland easements 
valued at more than $500,000, the Sec-
retary may provide easement payments in 
at least 5, but not more than 10 annual 
payments, except that, if the Secretary de-
termines it would further the purposes of 
the program, the Secretary may make a 
lump sum payment for such an easement. 
‘‘(c) EASEMENT RESTORATION.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
financial assistance to owners of eligible land to 
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carry out the establishment of conservation meas-
ures and practices and protect wetland functions 
and values, including necessary maintenance activi-
ties, as set forth in a wetland easement plan devel-
oped for the eligible land under subsection (f). 
‘‘(2) PAYMENTS.—The Secretary shall— 
‘‘(A) in the case of a permanent wetland 
easement, pay an amount that is not less than 
75 percent, but not more than 100 percent, of 
the eligible costs, as determined by the Sec-
retary; and 
‘‘(B) in the case of a 30-year wetland ease-
ment, pay an amount that is not less than 50 
percent, but not more than 75 percent, of the 
eligible costs, as determined by the Secretary. 
‘‘(d) TECHNICAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall assist 
owners in complying with the terms and conditions 
of wetland easements. 
‘‘(2) CONTRACTS OR AGREEMENTS.—The Sec-
retary may enter into 1 or more contracts with pri-
vate entities or agreements with a State, non-govern-
mental organization, or Indian tribe to carry out 
necessary restoration, enhancement, or maintenance 
of a wetland easement if the Secretary determines 
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223 
that the contract or agreement will advance the pur-
poses of the program. 
‘‘(e) WETLAND ENHANCEMENT OPTION.—The Sec-
retary may enter into 1 or more agreements with a State 
(including a political subdivision or agency of a State), 
nongovernmental organization, or Indian tribe to carry out 
a special wetland enhancement option that the Secretary 
determines would advance the purposes of program. 
‘‘(f) ADMINISTRATION.— 
‘‘(1) WETLAND
EASEMENT
PLAN.—The Sec-
retary shall develop a wetland easement plan for eli-
gible lands subject to a wetland easement, which 
shall include practices and activities necessary to re-
store, protect, enhance, and maintain the enrolled 
lands. 
‘‘(2) DELEGATION OF EASEMENT ADMINISTRA-
TION.—The Secretary may delegate— 
‘‘(A) any of the easement management, 
monitoring, and enforcement responsibilities of 
the Secretary to other Federal or State agencies 
that have the appropriate authority, expertise, 
and resources necessary to carry out such dele-
gated responsibilities; and 
‘‘(B) any of the easement management re-
sponsibilities of the Secretary to other conserva-
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224 
tion organizations if the Secretary determines 
the organization has the appropriate expertise 
and resources. 
‘‘(3) PAYMENTS.— 
‘‘(A) TIMING
OF
PAYMENTS.—The Sec-
retary shall provide payment for obligations in-
curred by the Secretary under this section— 
‘‘(i) with respect to any easement res-
toration obligation under subsection (c), as 
soon as possible after the obligation is in-
curred; and 
‘‘(ii) with respect to any annual ease-
ment payment obligation incurred by the 
Secretary, as soon as possible after Octo-
ber 1 of each calendar year. 
‘‘(B) PAYMENTS TO OTHERS.—If an owner 
who is entitled to a payment under this section 
dies, becomes incompetent, is otherwise unable 
to receive such payment, or is succeeded by an-
other person or entity who renders or completes 
the required performance, the Secretary shall 
make such payment, in accordance with regula-
tions prescribed by the Secretary and without 
regard to any other provision of law, in such 
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225 
manner as the Secretary determines is fair and 
reasonable in light of all of the circumstances. 
‘‘SEC. 1265D. ADMINISTRATION. 
‘‘(a) INELIGIBLE LAND.—The Secretary may not use 
program funds for the purposes of acquiring an easement 
on— 
‘‘(1) lands owned by an agency of the United 
States, other than land held in trust for Indian 
tribes; 
‘‘(2) lands owned in fee title by a State, includ-
ing an agency or a subdivision of a State, or a unit 
of local government; 
‘‘(3) land subject to an easement or deed re-
striction which, as determined by the Secretary, pro-
vides similar protection as would be provided by en-
rollment in the program; or 
‘‘(4) lands where the purposes of the program 
would be undermined due to on-site or off-site condi-
tions, such as risk of hazardous substances, pro-
posed or existing rights of way, infrastructure devel-
opment, or adjacent land uses. 
‘‘(b) PRIORITY.—In evaluating applications under the 
program, the Secretary may give priority to land that is 
currently enrolled in the conservation reserve program in 
a contract that is set to expire within 1 year and— 
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‘‘(1) in the case of an agricultural land ease-
ment, is grassland that would benefit from protec-
tion under a long-term easement; and 
‘‘(2) in the case of a wetland easement, is a 
wetland or related area with the highest functions 
and value and is likely to return to production after 
the land leaves the conservation reserve program. 
‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, 
AND TERMINATION.— 
‘‘(1) IN GENERAL.—The Secretary may subor-
dinate, exchange, modify, or terminate any interest 
in land, or portion of such interest, administered by 
the Secretary, either directly or on behalf of the 
Commodity Credit Corporation under the program if 
the Secretary determines that— 
‘‘(A) it is in the Federal Government’s in-
terest to subordinate, exchange, modify, or ter-
minate the interest in land; 
‘‘(B) the subordination, exchange, modi-
fication, or termination action— 
‘‘(i) will address a compelling public 
need for which there is no practicable al-
ternative; or 
‘‘(ii) such action will further the prac-
tical administration of the program; and 
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227 
‘‘(C) the subordination, exchange, modi-
fication, or termination action will result in 
comparable conservation value and equivalent 
or greater economic value to the United States. 
‘‘(2) CONSULTATION.—The Secretary shall 
work with the owner, and eligible entity if applicable, 
to address any subordination, exchange, modifica-
tion, or termination of the interest, or portion of 
such interest, in land. 
‘‘(3) NOTICE.—At least 90 days before taking 
any termination action described in paragraph (1), 
the Secretary shall provide written notice of such ac-
tion to the Committee on Agriculture of the House 
of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
‘‘(d) LAND ENROLLED IN CONSERVATION RESERVE 
PROGRAM.—The Secretary may terminate or modify a 
contract entered into under section 1231(a) if eligible land 
that is subject to such contract is transferred into the pro-
gram. 
‘‘(e) ALLOCATION OF FUNDS FOR AGRICULTURAL 
LAND EASEMENTS.—Of the funds made available under 
section 1241 to carry out the program for a fiscal year, 
the Secretary shall, to the extent practicable, use for agri-
cultural land easements— 
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‘‘(1) no less than 40 percent in each of fiscal 
years 2013 through 2016; and 
‘‘(2) no less than 50 percent in fiscal year 
2017.’’. 
(b) CROSS
REFERENCE; CALCULATION.—Section 
1244 of the Food Security Act of 1985 (16 U.S.C. 3844) 
is amended— 
(1) in subsection (c)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘and’’ at the end of 
subparagraph (A); 
(ii) by striking ‘‘and’’ at the end of 
subparagraph (B); and 
(iii) by striking subparagraph (C); 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new subparagraph: 
‘‘(2) the agricultural conservation easement 
program established under subtitle H; and’’; and 
(2) in subsection (f)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘programs administered under subchapters 
B and C of chapter 1 of subtitle D’’ and 
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229 
inserting ‘‘conservation reserve program 
established under subchapter B of chapter 
1 of subtitle D and wetland easements 
under section 1265C’’; and 
(ii) in subparagraph (B), by striking 
‘‘an easement acquired under subchapter C 
of chapter 1 of subtitle D’’ and inserting 
‘‘a 
wetland 
easement 
under 
section 
1265C’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(5) CALCULATION.—In calculating the per-
centages described in paragraph (1), the Secretary 
shall include any acreage that was included in cal-
culations of percentages made under such para-
graph, as in effect on September 30, 2012, and that 
remains enrolled when the calculation is made after 
that date under paragraph (1).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2012. 
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230 
Subtitle E—Regional Conservation 
Partnership Program 
SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PRO-
GRAM. 
(a) IN GENERAL.—Title XII of the Food Security 
Act of 1985 is amended by inserting after subtitle H, as 
added by section 2301, the following new subtitle: 
‘‘Subtitle I—Regional Conservation 
Partnership Program 
‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a regional conservation partnership program to imple-
ment eligible activities on eligible land through— 
‘‘(1) partnership agreements with eligible part-
ners; and 
‘‘(2) contracts with producers. 
‘‘(b) PURPOSES.—The purposes of the program are 
as follows: 
‘‘(1) To use covered programs to accomplish 
purposes and functions similar to those of the fol-
lowing programs, as in effect on September 30, 
2012: 
‘‘(A) The agricultural water enhancement 
program established under section 1240I. 
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‘‘(B) The Chesapeake Bay watershed pro-
gram established under section 1240Q. 
‘‘(C) The cooperative conservation partner-
ship initiative established under section 1243. 
‘‘(D) The Great Lakes basin program for 
soil erosion and sediment control established 
under section 1240P. 
‘‘(2) To further the conservation, restoration, 
and sustainable use of soil, water, wildlife, and re-
lated natural resources on eligible land on a regional 
or watershed scale. 
‘‘(3) To encourage eligible partners to cooperate 
with producers in— 
‘‘(A) meeting or avoiding the need for na-
tional, State, and local natural resource regu-
latory requirements related to production on eli-
gible land; and 
‘‘(B) implementing projects that will result 
in the carrying out of eligible activities that af-
fect multiple agricultural or nonindustrial pri-
vate forest operations on a local, regional, 
State, or multi-State basis. 
‘‘SEC. 1271A. DEFINITIONS. 
‘‘In this subtitle: 
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232 
‘‘(1) COVERED PROGRAM.—The term ‘covered 
program’ means the following: 
‘‘(A) The agricultural conservation ease-
ment program. 
‘‘(B) The environmental quality incentives 
program. 
‘‘(C) The conservation stewardship pro-
gram. 
‘‘(2) ELIGIBLE
ACTIVITY.—The term ‘eligible 
activity’ means any of the following conservation ac-
tivities: 
‘‘(A) Water quality or quantity conserva-
tion, restoration, or enhancement projects relat-
ing to surface water and groundwater re-
sources, including— 
‘‘(i) the conversion of irrigated crop-
land to the production of less water-inten-
sive agricultural commodities or dryland 
farming; or 
‘‘(ii) irrigation system improvement 
and irrigation efficiency enhancement. 
‘‘(B) Drought mitigation. 
‘‘(C) Flood prevention. 
‘‘(D) Water retention. 
‘‘(E) Air quality improvement. 
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233 
‘‘(F) Habitat conservation, restoration, 
and enhancement. 
‘‘(G) Erosion control and sediment reduc-
tion. 
‘‘(H) Other related activities that the Sec-
retary determines will help achieve conservation 
benefits. 
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 
means land on which agricultural commodities, live-
stock, or forest-related products are produced, in-
cluding— 
‘‘(A) cropland; 
‘‘(B) grassland; 
‘‘(C) rangeland; 
‘‘(D) pastureland; 
‘‘(E) nonindustrial private forest land; and 
‘‘(F) other land incidental to agricultural 
production (including wetlands and riparian 
buffers) on which significant natural resource 
issues could be addressed under the program. 
‘‘(4) ELIGIBLE
PARTNER.—The term ‘eligible 
partner’ means any of the following: 
‘‘(A) An agricultural or silvicultural pro-
ducer association or other group of producers. 
‘‘(B) A State or unit of local government. 
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234 
‘‘(C) An Indian tribe. 
‘‘(D) A farmer cooperative. 
‘‘(E) A water district, irrigation district, 
rural water district or association, or other or-
ganization with specific water delivery authority 
to producers on agricultural land. 
‘‘(F) An institution of higher education. 
‘‘(G) An organization with an established 
history of working cooperatively with producers 
on agricultural land, as determined by the Sec-
retary, to address— 
‘‘(i) local conservation priorities re-
lated to agricultural production, wildlife 
habitat development, or nonindustrial pri-
vate forest land management; or 
‘‘(ii) critical watershed-scale soil ero-
sion, water quality, sediment reduction, or 
other natural resource issues. 
‘‘(5) PARTNERSHIP
AGREEMENT.—The term 
‘partnership agreement’ means an agreement en-
tered into under section 1271B between the Sec-
retary and an eligible partner. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the regional conservation partnership program estab-
lished by this subtitle. 
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235 
‘‘SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS. 
‘‘(a) PARTNERSHIP AGREEMENTS AUTHORIZED.— 
The Secretary may enter into a partnership agreement 
with an eligible partner to implement a project that will 
assist producers with installing and maintaining an eligi-
ble activity on eligible land. 
‘‘(b) LENGTH.—A partnership agreement shall be for 
a period not to exceed 5 years, except that the Secretary 
may extend the agreement one time for up to 12 months 
when an extension is necessary to meet the objectives of 
the program. 
‘‘(c) DUTIES OF PARTNERS.— 
‘‘(1) IN GENERAL.—Under a partnership agree-
ment, the eligible partner shall— 
‘‘(A) define the scope of a project, includ-
ing— 
‘‘(i) the eligible activities to be imple-
mented; 
‘‘(ii) the potential agricultural or non-
industrial private forest land operations af-
fected; 
‘‘(iii) the local, State, multi-State, or 
other geographic area covered; and 
‘‘(iv) the planning, outreach, imple-
mentation, and assessment to be con-
ducted; 
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236 
‘‘(B) conduct outreach to producers for po-
tential participation in the project; 
‘‘(C) at the request of a producer, act on 
behalf of a producer participating in the project 
in applying for assistance under section 1271C; 
‘‘(D) leverage financial or technical assist-
ance provided by the Secretary with additional 
funds to help achieve the project objectives; 
‘‘(E) conduct an assessment of the 
project’s effects; and 
‘‘(F) at the conclusion of the project, re-
port to the Secretary on its results and funds 
leveraged. 
‘‘(2) CONTRIBUTION.—An eligible partner shall 
provide a significant portion of the overall costs of 
the scope of the project that is the subject of the 
agreement entered into under subsection (a), as de-
termined by the Secretary. 
‘‘(d) APPLICATIONS.— 
‘‘(1) COMPETITIVE
PROCESS.—The Secretary 
shall conduct a competitive process to select applica-
tions for partnership agreements and may assess 
and rank applications with similar conservation pur-
poses as a group. 
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237 
‘‘(2) CRITERIA
USED.—In carrying out the 
process described in paragraph (1), the Secretary 
shall make public the criteria used in evaluating ap-
plications. 
‘‘(3) CONTENT.—An application to the Sec-
retary shall include a description of— 
‘‘(A) the scope of the project, as described 
in subsection (c)(1)(A); 
‘‘(B) the plan for monitoring, evaluating, 
and reporting on progress made towards achiev-
ing the project’s objectives; 
‘‘(C) the program resources requested for 
the project, including the covered programs to 
be used and estimated funding needed from the 
Secretary; 
‘‘(D) eligible partners collaborating to 
achieve project objectives, including their roles, 
responsibilities, capabilities, and financial con-
tribution; and 
‘‘(E) any other elements the Secretary con-
siders necessary to adequately evaluate and 
competitively select applications for funding 
under the program. 
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‘‘(4) PRIORITY TO CERTAIN APPLICATIONS.— 
The Secretary may give a higher priority to applica-
tions that— 
‘‘(A) assist producers in meeting or avoid-
ing the need for a natural resource regulatory 
requirement; 
‘‘(B) have a high percentage of eligible 
producers in the area to be covered by the 
agreement; 
‘‘(C) significantly leverage non-Federal fi-
nancial and technical resources and coordinate 
with other local, State, or national efforts; 
‘‘(D) deliver high percentages of applied 
conservation to address conservation priorities 
or regional, State, or national conservation ini-
tiatives; 
‘‘(E) provide innovation in conservation 
methods and delivery, including outcome-based 
performance measures and methods; or 
‘‘(F) meet other factors that are important 
for achieving the purposes of the program, as 
determined by the Secretary. 
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‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. 
‘‘(a) IN GENERAL.—The Secretary shall enter into 
contracts with producers to provide financial and technical 
assistance to— 
‘‘(1) producers participating in a project with 
an eligible partner, as described in section 1271B; or 
‘‘(2) producers that fit within the scope of a 
project described in section 1271B or a critical con-
servation area designated under section 1271F, but 
who are seeking to implement an eligible activity on 
eligible land independent of a partner. 
‘‘(b) TERMS AND CONDITIONS.— 
‘‘(1) CONSISTENCY WITH PROGRAM RULES.— 
Except as provided in paragraph (2), the Secretary 
shall ensure that the terms and conditions of a con-
tract under this section are consistent with the ap-
plicable rules of the covered programs to be used as 
part of the project, as described in the application 
under section 1271B(d)(3)(C). 
‘‘(2) ADJUSTMENTS.—Except with respect to 
statutory program requirements governing appeals, 
payment limitations, and conservation compliance, 
the Secretary may adjust the discretionary program 
rules of a covered program— 
‘‘(A)
to provide a simplified application 
and evaluation process; and 
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‘‘(B) to better reflect unique local cir-
cumstances and purposes if the Secretary deter-
mines such adjustments are necessary to 
achieve the purposes of the program. 
‘‘(c) PAYMENTS.— 
‘‘(1) IN GENERAL.—In accordance with statu-
tory requirements of the covered programs involved, 
the Secretary may make payments to a producer in 
an amount determined by the Secretary to be nec-
essary to achieve the purposes of the program. 
‘‘(2) PAYMENTS
TO
PRODUCERS
IN
STATES 
WITH WATER QUANTITY CONCERNS.—The Secretary 
may provide payments to producers participating in 
a project that addresses water quantity concerns for 
a period of five years in an amount sufficient to en-
courage conversion from irrigated farming to 
dryland farming. 
‘‘(3) WAIVER AUTHORITY.—To assist in the im-
plementation of the program, the Secretary may 
waive the applicability of the limitation in section 
1001D(b)(2) of this Act for participating producers 
if the Secretary determines that the waiver is nec-
essary to fulfill the objectives of the program. 
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‘‘SEC. 1271D. FUNDING. 
‘‘(a) AVAILABILITY OF FUNDS.—The Secretary shall 
use $100,000,000 of the funds of the Commodity Credit 
Corporation for each of fiscal years 2013 through 2017 
to carry out the program. 
‘‘(b) DURATION
OF AVAILABILITY.—Funds made 
available under subsection (a) shall remain available until 
expended. 
‘‘(c) ADDITIONAL FUNDING AND ACRES.— 
‘‘(1) IN GENERAL.—In addition to the funds 
made available under subsection (a), the Secretary 
shall reserve 6 percent of the funds and acres made 
available for a covered program for each of fiscal 
years 2013 through 2017 in order to ensure addi-
tional resources are available to carry out this pro-
gram. 
‘‘(2) UNUSED FUNDS AND ACRES.—Any funds 
or acres reserved under paragraph (1) for a fiscal 
year from a covered program that are not obligated 
under this program by April 1 of that fiscal year 
shall be returned for use under the covered program. 
‘‘(d) ALLOCATION OF FUNDING.—Of the funds and 
acres made available for the program under subsections 
(a) and (c), the Secretary shall allocate— 
‘‘(1) 25 percent of the funds and acres to 
projects based on a State competitive process admin-
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istered by the State Conservationist, with the advice 
of the State technical committee established under 
subtitle G; 
‘‘(2) 50 percent of the funds and acres to 
projects based on a national competitive process to 
be established by the Secretary; and 
‘‘(3) 25 percent of the funds and acres to 
projects for the critical conservation areas des-
ignated under section 1271F. 
‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 
None of the funds made available under the program may 
be used to pay for the administrative expenses of eligible 
partners. 
‘‘SEC. 1271E. ADMINISTRATION. 
‘‘(a) DISCLOSURE.—In addition to the criteria used 
in evaluating applications as described in section 
1271B(d)(2), the Secretary shall make publicly available 
information on projects selected through the competitive 
process described in section 1271B(d)(1). 
‘‘(b) REPORTING.—Not later than December 31, 
2013, and every two years thereafter, the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report on the status 
of projects funded under the program, including— 
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‘‘(1) the number and types of eligible partners 
and producers participating in the partnership 
agreements selected; 
‘‘(2) the number of producers receiving assist-
ance; and 
‘‘(3) total funding committed to projects, in-
cluding from Federal and non-Federal resources. 
‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. 
‘‘(a) IN GENERAL.—In administering funds under 
section 1271D(d)(3), the Secretary shall select applica-
tions for partnership agreements and producer contracts 
within critical conservation areas designated under this 
section. 
‘‘(b) CRITICAL
CONSERVATION
AREA
DESIGNA-
TIONS.— 
‘‘(1) PRIORITY.—In designating critical con-
servation areas under this section, the Secretary 
shall give priority to geographical areas based on the 
degree to which the geographical area— 
‘‘(A) includes multiple States with signifi-
cant agricultural production; 
‘‘(B) is covered by an existing regional, 
State, binational, or multistate agreement or 
plan that has established objectives, goals, and 
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work plans and is adopted by a Federal, State, 
or regional authority; 
‘‘(C) would benefit from water quality im-
provement, including through reducing erosion, 
promoting sediment control, and addressing nu-
trient management activities affecting large 
bodies of water of regional, national, or inter-
national significance; 
‘‘(D) would benefit from water quantity 
improvement, including improvement relating 
to— 
‘‘(i) groundwater, surface water, aqui-
fer, or other water sources; or 
‘‘(ii) a need to promote water reten-
tion and flood prevention; or 
‘‘(E) contains producers that need assist-
ance in meeting or avoiding the need for a nat-
ural resource regulatory requirement that could 
have a negative economic impact on agricultural 
operations within the area. 
‘‘(2) LIMITATION.—The Secretary may not des-
ignate more than 8 geographical areas as critical 
conservation areas under this section. 
‘‘(c) ADMINISTRATION.— 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall administer any part-
nership agreement or producer contract under this 
section in a manner that is consistent with the terms 
of the program. 
‘‘(2) RELATIONSHIP TO EXISTING ACTIVITY.— 
The Secretary shall, to the maximum extent prac-
ticable, ensure that eligible activities carried out in 
critical conservation areas designated under this sec-
tion complement and are consistent with other Fed-
eral and State programs and water quality and 
quantity strategies. 
‘‘(3) ADDITIONAL AUTHORITY.—For a critical 
conservation area described in subsection (b)(1)(D), 
the Secretary may use authorities under the Water-
shed Protection and Flood Prevention Act (16 
U.S.C. 1001 et seq.), other than section 14 of such 
Act (16 U.S.C. 1012), to carry out projects for the 
purposes of this section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2012. 
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Subtitle F—Other Conservation 
Programs 
SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND. 
Section 1240M(e) of the Food Security Act of 1985 
(16 U.S.C. 3839bb(e)) is amended by striking ‘‘2012’’ and 
inserting ‘‘2017’’. 
SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION 
PROGRAM. 
Section 1240O(b) of the Food Security Act of 1985 
(16 U.S.C. 3839bb–2) is amended to read as follows: 
‘‘(b) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $20,000,000 for each of fiscal years 
2008 through 2017. 
‘‘(2) AVAILABILITY OF FUNDS.—In addition to 
funds made available under paragraph (1), of the 
funds of the Commodity Credit Corporation, the 
Secretary shall use $5,000,000, to remain available 
until expended.’’. 
SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT IN-
CENTIVE PROGRAM. 
(a) FUNDING.—Section 1240R(f) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb–5(f)) is amended by 
inserting before the period at the end the following: ‘‘and 
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$30,000,000 for the period of fiscal years 2013 through 
2017’’. 
(b) REPORT
ON PROGRAM EFFECTIVENESS.—Not 
later than two years after the date of the enactment of 
this Act, the Secretary of Agriculture shall submit to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and For-
estry of the Senate a report evaluating the effectiveness 
of the voluntary public access program established by sec-
tion 1240R of the Food Security Act of 1985 (16 U.S.C. 
3839bb–5), including— 
(1) identifying cooperating agencies; 
(2) identifying the number of land holdings and 
total acres enrolled by each State and tribal govern-
ment; 
(3) evaluating the extent of improved access on 
eligible lands, improved wildlife habitat, and related 
economic benefits; and 
(4) any other relevant information and data re-
lating to the program that would be helpful to such 
Committees. 
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SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED 
SERVICES PROGRAM. 
(a) FUNDING.—Subsection (c) of section 1252 of the 
Food Security Act of 1985 (16 U.S.C. 3851) is amended 
to read as follows: 
‘‘(c) FUNDING.— 
‘‘(1) IN GENERAL.—The Secretary may carry 
out the ACES program using funds made available 
to carry out each program under this title. 
‘‘(2) EXCLUSION.—Funds made available to 
carry out the conservation reserve program may not 
be used to carry out the ACES program.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2012. 
SEC. 2505. SMALL WATERSHED REHABILITATION PRO-
GRAM. 
(a) AVAILABILITY OF FUNDS.—Section 14(h)(1) of 
the Watershed Protection and Flood Prevention Act (16 
U.S.C. 1012(h)(1)) is amended— 
(1) in subparagraph (E), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (F), by striking the period 
and inserting a semicolon; 
(3) in subparagraph (G), by striking the period 
and inserting ‘‘; and’’; and 
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(4) by adding at the end the following new sub-
paragraph: 
‘‘(H) $250,000,000 for fiscal year 2013, to 
remain available until expended.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
14(h)(2)(E) of the Watershed Protection and Flood Pre-
vention Act (16 U.S.C. 1012(h)(2)(E)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 2506. AGRICULTURAL MANAGEMENT ASSISTANCE 
PROGRAM. 
(a) USES.—Section 524(b)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(2)) is amended— 
(1) by striking subparagraph (B) and redesig-
nating subparagraphs (C) through (F) as subpara-
graphs (B) through (E), respectively; and 
(2) in subparagraph (B) (as so redesignated)— 
(A) in the matter preceding clause (i), by 
striking ‘‘or resource conservation practices’’; 
and 
(B) by striking clause (i) and redesig-
nating clauses (ii) through (iv) as clauses (i) 
through (iii), respectively. 
(b) COMMODITY CREDIT CORPORATION.— 
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(1) FUNDING.—Section 524(b)(4)(B) of the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1524(b)(4)(B)) is amended to read as follows: 
‘‘(B) FUNDING.—The Commodity Credit 
Corporation shall make available to carry out 
this subsection not less than $10,000,000 for 
each fiscal year.’’. 
(2) CERTAIN
USES.—Section 524(b)(4)(C) of 
the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1524(b)(4)(C)) is amended— 
(A) in clause (i)— 
(i) by striking ‘‘50’’ and inserting 
‘‘30’’; and 
(ii) by striking ‘‘(A), (B), and (C)’’ 
and inserting ‘‘(A) and (B)’’; and 
(B) in clause (iii), by striking ‘‘40’’ and in-
serting ‘‘60.’’ 
Subtitle G—Funding and 
Administration 
SEC. 2601. FUNDING. 
(a) IN GENERAL.—Subsection (a) of section 1241 of 
the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended to read as follows: 
‘‘(a) ANNUAL FUNDING.—For each of fiscal years 
2013 through 2017, the Secretary shall use the funds, fa-
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cilities, and authorities of the Commodity Credit Corpora-
tion to carry out the following programs under this title 
(including the provision of technical assistance): 
‘‘(1) The conservation reserve program under 
subchapter B of chapter 1 of subtitle D, including, 
to the maximum extent practicable, $25,000,000 for 
the period of fiscal years 2013 through 2017 to 
carry out section 1235(f) to facilitate the transfer of 
land subject to contracts from retired or retiring 
owners and operators to beginning farmers or ranch-
ers and socially disadvantaged farmers or ranchers. 
‘‘(2) The agriculture conservation easement 
program under subtitle H, using, to the maximum 
extent practicable— 
‘‘(A) $450,000,000 in fiscal year 2013; 
‘‘(B) $475,000,000 in fiscal year 2014; 
‘‘(C) $500,000,000 in fiscal year 2015; 
‘‘(D) $525,000,000 in fiscal year 2016; 
and 
‘‘(E) $266,000,000 in fiscal year 2017. 
‘‘(3) The conservation security program under 
subchapter A of chapter 2 of subtitle D, using such 
sums as are necessary to administer contracts en-
tered into before September 30, 2008. 
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‘‘(4) The conservation stewardship program 
under subchapter B of chapter 2 of subtitle D. 
‘‘(5) The environmental quality incentives pro-
gram under chapter 4 of subtitle D, using, to the 
maximum extent practicable, $1,750,000,000 for 
each of fiscal years 2013 through 2017.’’. 
(b) GUARANTEED AVAILABILITY OF FUNDS.—Sec-
tion 1241 of the Food Security Act of 1985 (16 U.S.C. 
3841) is amended— 
(1) by redesignating subsections (b) through (h) 
as subsections (c) through (i); respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) AVAILABILITY
OF
FUNDS.—Amounts made 
available by subsection (a) shall be used by the Secretary 
to carry out the programs specified in such subsection for 
fiscal years 2013 through 2017 and shall remain available 
until expended. Amounts made available for the programs 
specified in such subsection during a fiscal year through 
modifications, cancellations, terminations, and other re-
lated administrative actions and not obligated in that fis-
cal year shall remain available for obligation during subse-
quent fiscal years, but shall reduce the amount of addi-
tional funds made available in the subsequent fiscal year 
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by an amount equal to the amount remaining unobli-
gated.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2012. 
SEC. 2602. TECHNICAL ASSISTANCE. 
(a) IN GENERAL.—Subsection (c) of section 1241 of 
the Food Security Act of 1985 (16 U.S.C. 3841), as redes-
ignated by section 2601(b)(1) of this Act, is amended to 
read as follows: 
‘‘(c) TECHNICAL ASSISTANCE.— 
‘‘(1) AVAILABILITY
OF
FUNDS.—Commodity 
Credit Corporation funds made available for a fiscal 
year for each of the programs specified in subsection 
(a)— 
‘‘(A) shall be available for the provision of 
technical assistance for the programs for which 
funds are made available as necessary to imple-
ment the programs effectively; and 
‘‘(B) shall not be available for the provi-
sion of technical assistance for conservation 
programs specified in subsection (a) other than 
the program for which the funds were made 
available. 
‘‘(2) REPORT.—Not later than December 31, 
2012, the Secretary shall submit (and update as 
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necessary in subsequent years) to the Committee on 
Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report— 
‘‘(A) detailing the amount of technical as-
sistance funds requested and apportioned in 
each program specified in subsection (a) during 
the preceding fiscal year; and 
‘‘(B) any other data relating to this sub-
section that would be helpful to such Commit-
tees.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2012. 
SEC. 2603. REGIONAL EQUITY. 
(a) IN GENERAL.—Section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841) is amended by striking sub-
section (e) (as redesignated by section 2601(b)(1) of this 
Act) and inserting the following: 
‘‘(e) REGIONAL EQUITY.— 
‘‘(1) EQUITABLE
DISTRIBUTION.—In deter-
mining funding allocations each fiscal year, the Sec-
retary shall, after considering available funding and 
program demand in each State, provide a distribu-
tion of funds for conservation programs under sub-
title D (excluding the conservation reserve program 
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under subchapter B of chapter 1), subtitle H (ex-
cluding wetland easements under section 1265C), 
and subtitle I to ensure equitable program participa-
tion proportional to historical funding allocations 
and usage by all States. 
‘‘(2) MINIMUM PERCENTAGE.—In determining 
the specific funding allocations under paragraph (1), 
the Secretary shall— 
‘‘(A) ensure that during the first quarter 
of each fiscal year each State has the oppor-
tunity to establish that the State can use an ag-
gregate allocation amount of at least 0.6 per-
cent of the funds made available for those con-
servation programs; and 
‘‘(B) for each State that can so establish, 
provide an aggregate amount of at least 0.6 
percent of the funds made available for those 
conservation programs.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2012. 
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256 
SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSIST-
ANCE TO CERTAIN FARMERS OR RANCHERS 
FOR CONSERVATION ACCESS. 
(a) IN GENERAL.—Subsection (h) of section 1241 of 
the Food Security Act of 1985 (16 U.S.C. 3841) (as re-
designated by section 2601(b)(1)) is amended— 
(1) in paragraph (1) by striking ‘‘2012’’ and in-
serting ‘‘2017’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) PREFERENCE.—In providing assistance 
under paragraph (1), the Secretary shall give pref-
erence to a veteran farmer or rancher (as defined in 
section 2501(e) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279(e))) 
that qualifies under subparagraph (A) or (B) of 
paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2012. 
SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS 
AND ASSISTANCE. 
(a) IN GENERAL.—Subsection (i) (as redesignated by 
section 2601(b)(1)) of section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841) is amended— 
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(1) in paragraph (1), by striking ‘‘wetlands re-
serve program’’ and inserting ‘‘agricultural conserva-
tion easement program’’; 
(2) by striking paragraphs (2) and (3) and re-
designating paragraphs (4), (5), and (6) as para-
graphs (2), (3), and (4), respectively; and 
(3) in paragraph (3) (as so redesignated)— 
(A) by striking ‘‘agricultural water en-
hancement program’’ and inserting ‘‘regional 
conservation partnership program’’; and 
(B) by striking ‘‘1240I(g)’’ and inserting 
‘‘1271C(c)(3)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2012. 
SEC. 2606. REVIEW OF CONSERVATION PRACTICE STAND-
ARDS. 
Section 1242(h)(1)(A) of the Food Security Act of 
1985 (16 U.S.C. 3842(h)(1)(A)) is amended by striking 
‘‘the Food, Conservation, and Energy Act of 2008’’ and 
inserting ‘‘the Federal Agriculture Reform and Risk Man-
agement Act of 2012’’. 
SEC. 2607. ADMINISTRATIVE REQUIREMENTS APPLICABLE 
TO ALL CONSERVATION PROGRAMS. 
(a) IN GENERAL.—Section 1244 of the Food Security 
Act of 1985 (16 U.S.C. 3844) is amended— 
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(1) in subsection (a)(2), by adding at the end 
the following new subparagraph: 
‘‘(E) Veteran farmers or ranchers (as de-
fined in section 2501(e) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 
(7 U.S.C. 2279(e))).’’; 
(2) in subsection (d), by inserting ‘‘, H, and I’’ 
before the period at the end; 
(3) in subsection (f)— 
(A) in paragraph (1)(B), by striking 
‘‘country’’ and inserting ‘‘county’’; and 
(B) in paragraph (3), by striking ‘‘sub-
section (c)(2)(B) or (f)(4)’’ and inserting ‘‘sub-
section (c)(2)(A)(ii) or (f)(2)’’; and 
(4) by adding at the end the following new sub-
sections: 
‘‘(j) IMPROVED ADMINISTRATIVE EFFICIENCY AND 
EFFECTIVENESS.—In administrating a conservation pro-
gram under this title, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) seek to reduce administrative burdens and 
costs to producers by streamlining conservation 
planning and program resources; and 
‘‘(2) take advantage of new technologies to en-
hance efficiency and effectiveness. 
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259 
‘‘(k) RELATION TO OTHER PAYMENTS.—Any pay-
ment received by an owner or operator under this title, 
including an easement payment or rental payment, shall 
be in addition to, and not affect, the total amount of pay-
ments that the owner or operator is otherwise eligible to 
receive under any of the following: 
‘‘(1) This Act. 
‘‘(2) The Agricultural Act of 1949 (7 U.S.C. 
1421 et seq.). 
‘‘(3) The Federal Agriculture Reform and Risk 
Management Act of 2012. 
‘‘(4) Any law that succeeds a law specified in 
paragraph (1), (2), or (3).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2012. 
SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMIT-
TEES. 
Section 1261(b) of the Food Security Act of 1985 
(16 U.S.C. 3861(b)) is amended by striking ‘‘Not later 
than 180 days after the date of enactment of the Food, 
Conservation, and Energy Act of 2008, the Secretary shall 
develop’’ and inserting ‘‘The Secretary shall review and 
update as necessary’’. 
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