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SECTION 1. ORGANIC CONVERSION.

Chapter 4 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3839aa et seq.) is amended by adding at the end the
following:

''SEC. 1240J. ORGANIC CONVERSION.

''(a) Definitions.--
''(1) National organic program.--The term 'national organic
program' means the national organic program established under
the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et.
seq.).
''(2) Organic system plan.--In this section, the term
'organic system plan' means an organic plan approved under the
national organic program.
''(b) Establishment.--Under the program carried out under this
chapter, not later than 180 days after the enactment of this section,
the Secretary shall establish a program under which the Secretary shall
provide cost-share and incentive payments to producers to promote
conservation practices and activities for production systems undergoing
conversion on some or all of the operations of the producer to organic
production in accordance with the Organic Foods Production Act of 1990
(7 U.S.C. 6501 et seq.).
''(c) Organic Conversion Cost-Share and Incentive Payments.--The
Secretary shall provide organic conversion cost-share and incentive
payments to producers that--
''(1) are converting to organic production systems,
including producers with existing certified organic production
for conversion to organic production of land and livestock not
previously certified organic; and
''(2) enter into contracts with the Secretary for eligible
practices and activities described in subsection (d).
''(d) Eligible Practices and Activities.--Producers may use funds
made available under subsection (c) for--
''(1) conservation management, vegetative, and structural
practices and activities during conversion to certified organic
production that--
''(A) are required by, or consistent with, an
approved organic system plan; and
''(B) protect soil, water, wildlife, air, and other
natural resource concerns as identified by the
Secretary;
''(2) animal welfare measures required by, or consistent
with, an approved organic system plan;
''(3) technical assistance, including the costs of
developing an approved organic system plan; and
''(4) such other measures as the Secretary determines to be
appropriate and consistent with an approved organic system
plan.
''(e) Eligible Producers.--To be eligible to receive cost-share and
incentive payments under this section, producers shall agree--
''(1) to develop and carry out conservation and
environmental activities that--
''(A) are required by, or consistent with, an
approved organic system plan; and
''(B) protect soil, water, wildlife, air, and other
natural resource concerns as identified by the
Secretary;
''(2) to receive technical and educational assistance from
the Secretary or from an organization, institute, or consultant
with a cooperative agreement with the Secretary relating to--
''(A) the development and implementation of
conservation practices and activities that are part of
an organic system plan; or
''(B) other aspects of an organic system plan,
including marketing, credit, business, and risk
management plans; and
''(3) to submit annual verification by a certifying entity
accredited by the Secretary to determine the compliance of the
producer with organic certification requirements.
''(f) Term.--A contract under this section shall have a term equal
to--
''(1) not more than 4 years, on the condition that the
producer seeks organic certification during that period; or
''(2) such lesser period as is required for the producer to
obtain certification as an organic producer.
''(g) Limitations on Payments.--An individual or entity may not
receive, directly or indirectly, cost-share or incentive payments under
this section--
''(1) for a period of more than 4 years; or
''(2) that, in the aggregate and exclusive of technical
assistance, exceed
''(A) $20,000 per year; or
''(B) a total amount of $80,000.
''(h) Termination of Contracts.--The Secretary may cancel or
otherwise nullify a contract entered into under this section if the
Secretary determines the producers are not pursuing organic
certification.
''(i) Limitation on Contracting.--
''(1) In general.--The Secretary shall not enter into new
contracts with producers under this section if, for any
particular agricultural commodity, the Secretary determines
that there is insufficient market demand for the agricultural
commodity.
''(2) Petition.--
''(A) In general.--1 or more certified organic
producers of an organic commodity may petition the
Secretary to suspend further assistance for producers
of that commodity under this subsection.
''(B) Grant of relief.--The Secretary may suspend
assistance in accordance with a petition under
subparagraph (A) upon a showing that--
''(i) there would be insufficient market
demand for increased organic production; and
''(ii) the producers seeking relief would
be adversely affected.
''(j) Technical and Educational Assistance.--To the maximum extent
practicable, the Secretary shall balance the funds available for this
section so that at least 50 percent of the funds made available to
carry out this section are used for technical and educational
assistance, including competitive cooperative agreements with nonprofit
organizations, nongovernmental organizations, institutions of higher
education, State departments of agriculture, and consultants with
demonstrated expertise in advising organic producers on establishing
and maintaining conservation practices and activities for organic
production systems and the planning for, and marketing of, the products
of those systems.''.
Amends the Food Security Act of 1985 to establish a program under the environmental quality incentives program to provide eligible producers with cost-share and incentive payments to promote conservation practices for production systems converting to organic production.