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S 1424 IS

To provide for the continuation of agricultural programs through fiscal year 2013, and for other purposes.

May 17, 2007

Mr. SCHUMER (for himself, Mr. LIEBERMAN, Mr. KERRY, and Mr. KENNEDY) introduced the following bill; which was read twice and referred to the Committee on Finance

To provide for the continuation of agricultural programs through fiscal year 2013, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Farm, Nutrition, and Community Investment Act of 2007'.

(b) Table of Contents- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I--DAIRY

Sec. 1001. Continuation of the milk income loss contract program.

Sec. 1002. Minimum price for Class I milk under Federal milk marketing orders.

Sec. 1003. Dairy export incentive and dairy indemnity programs.

Sec. 1004. Funding of dairy promotion and research program.

Sec. 1005. Federal milk marketing orders.

Sec. 1006. Dairy processing equipment loan guarantee fund.

Sec. 1007. Federal loan forgiveness program.

Sec. 1008. Mandatory reporting of dairy commodities.

TITLE II--CONSERVATION

Subtitle A--Conservation Security

Sec. 2001. Sense of Congress regarding the conservation security program.

Sec. 2002. Dual eligibility for certified organic farms.

Sec. 2003. Comprehensive conservation enhancement program.

Sec. 2004. Conservation security program.

Subtitle B--Conservation Reserve

Sec. 2011. Conservation reserve program.

Subtitle C--Wetlands Reserve Program

Sec. 2021. Wetlands reserve program.

Subtitle D--Environmental Quality Incentives

Sec. 2031. Environmental quality incentives program.

Subtitle E--Farmland Protection Program

Sec. 2041. Farmland protection program.

Sec. 2042. Debt for agricultural easements.

Sec. 2043. Farmland Protection Policy Act.

Subtitle F--Cooperative Conservation Partnership Initiative

Sec. 2051. Cooperative conservation partnership initiative.

Sec. 2052. Minimum base allocation to States in funding of certain department of agriculture conservation programs.

Subtitle G--Other Conservation Programs

Sec. 2061. Wildlife habitat incentive program.

Sec. 2062. Pilot program for comprehensive conservation planning.

Sec. 2063. Pilot program for conservation risk management.

Subtitle H--Funding and Administration

Sec. 2071. Funding and administration.

Sec. 2072. Delivery of technical assistance.

Sec. 2073. Conservation application process.

Sec. 2074. Planning for agriculture grants.

Sec. 2075. Exclusion of payments under Department of Agriculture conservation programs from adjusted gross income limitation.

Subtitle I--Conservation Loan Guarantee Program

Sec. 2081. Conservation loan guarantee program.

TITLE III--TRADE

Sec. 3001. Market access program.

Sec. 3002. Technical assistance for specialty crops.

TITLE IV--NUTRITION PROGRAMS

Subtitle A--Food Stamp Program

Sec. 4001. Definition of thrifty food plan.

Sec. 4002. Exclusion of combat-related military pay from countable income.

Sec. 4003. Deductions from income.

Sec. 4004. Dependent care deduction.

Sec. 4005. Allowable financial resources.

Sec. 4006. Exclusion of retirement accounts from countable financial resources.

Sec. 4007. Simplified reporting.

Sec. 4008. Work requirement.

Sec. 4009. Fairness for legal immigrants.

Sec. 4010. Minimum benefit.

Sec. 4011. Accountability for paperwork requirements.

Sec. 4012. Administrative cost-sharing and quality control.

Sec. 4013. Reauthorization of food stamp program and food distribution program on Indian reservations.

Sec. 4014. Assistance for community food projects.

Sec. 4015. Availability of commodities for the emergency food assistance program.

Sec. 4016. Study on comparable access to food stamp benefits for Puerto Rico.

Subtitle B--Miscellaneous

Sec. 4021. Nutrition information and awareness pilot program.

TITLE V--RURAL DEVELOPMENT

Sec. 5001. Farm and ranch profitability grant program.

Sec. 5002. Definition of rural and rural area.

TITLE VI--FORESTRY

Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 6001. Community forest and open space conservation program.

Sec. 6002. Development of National priorities and State forest plans.

Subtitle B--Healthy Forests Restoration Act of 2003

Sec. 6011. Healthy forests reserve program.

TITLE VII--ENERGY

Sec. 7001. Definition of biomass.

Sec. 7002. Federal procurement of biobased products.

Sec. 7003. Biorefinery development grants.

Sec. 7004. Energy audit and renewable energy development program.

Sec. 7005. Renewable energy systems and energy efficiency improvements.

Sec. 7006. Biomass research and development.

Sec. 7007. Cooperative research and extension projects.

Sec. 7008. Industrial site redevelopment through cellulosic program.

Sec. 7009. Farm and ranch energy efficiency rebate program.

Sec. 7010. Alternative uses for biofuel byproducts.

Sec. 7011. National net metering for farm energy.

TITLE VIII--HEALTH DIETS

Sec. 8001. Expansion of fresh fruit and vegetable program.

Sec. 8002. Section 32 specialty crop purchases.

Sec. 8003. School preference study.

Sec. 8004. Independent evaluation of commodity purchase process.

Sec. 8005. WIC farmers' market nutrition program.

Sec. 8006. Seniors farmers' market nutrition program.

Sec. 8007. Direct-to-consumer promotion program.

Sec. 8008. Purchases of locally produced foods.

TITLE IX--MISCELLANEOUS

Subtitle A--Organic Agriculture

Sec. 9001. National organic certification cost-share program.

Subtitle B--Crop Insurance

Sec. 9011. Provision of organic insurance programs.

Sec. 9012. Coverage area flexibility.

Sec. 9013. Crop insurance incentives for beginning farmers and ranchers.

Sec. 9014. Crop insurance appeals for denial of claims.

Sec. 9015. Expanded coverage based on historical data.

Sec. 9016. Reauthorization, expansion, and improvement of adjusted gross revenue insurance pilot program.

Sec. 9017. Agricultural management assistance program.

Sec. 9018. Education and risk management assistance.

Subtitle C--General Provisions

Sec. 9021. Colony collapse disorder.

Sec. 9022. 100-percent exclusion of gain on sales of conservation easements on farmland to eligible entities for conservation purposes.

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term `Secretary' means the Secretary of Agriculture.

TITLE I--DAIRY

SEC. 1001. CONTINUATION OF THE MILK INCOME LOSS CONTRACT PROGRAM.

(a) Continuation of Program; Payment Percentage Rate- Section 1502(c)(3)(C) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982(c)(3)(C)) is amended by striking `0 percent' and inserting `and ending on September 30, 2013, 45 percent'.

(b) Maximum Payment Quantity- Section 1502(d)(2)) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982(d)(2)) is amended in the first sentence by striking `2,400,000 pounds' and inserting `4,800,000 pounds'.

(c) Contract Signup and Duration- Section 1502 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is amended in subsections (f) and (g)(1) by striking `September 30, 2007' each place it appears and inserting `September 30, 2013'.

SEC. 1002. MINIMUM PRICE FOR CLASS I MILK UNDER FEDERAL MILK MARKETING ORDERS.

Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by adding at the end the following:

`(P) CLASS I MILK PRICING-

`(i) MINIMUM PRICE- Notwithstanding any other provision of law, beginning on October 1, 2007, the minimum price for Class I milk under each Federal milk marketing order issued under this subsection shall be $15.58 per hundredweight.

`(ii) ADJUSTMENT FOR INFLATION-

`(I) IN GENERAL- Beginning on October 1, 2008, and each October 1 thereafter, the amount in clause (i) shall be adjusted by the percent that equals the total percentage change for the 12-month period ending the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

`(II) REQUIREMENT- Each adjustment under subclause (I) shall be based on the unrounded amount for the prior 12-month period.'.

SEC. 1003. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

(a) Dairy Export Incentive Program- Section 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking `2007' and inserting `2013'.

(b) Dairy Indemnity Program- Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking `2007' and inserting `2013'.

SEC. 1004. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking `2007' and inserting `2013'.

SEC. 1005. FEDERAL MILK MARKETING ORDERS.

(a) 2-Class System for Classifying Milk-

(1) IN GENERAL- Not later than September 30, 2008, the Secretary shall conduct a study of the economic benefits to milk producers of establishing a 2-class system for classifying milk under Federal milk marketing orders issued under section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, consisting of a fluid milk class and a manufacturing grade milk class (with the price for both classes determined using the component prices of butterfat, protein, and other solids).

(2) AMENDMENT TO ORDERS-

(A) IN GENERAL- If the Secretary determines (on the basis of the study conducted under paragraph (1)) that a 2-class system for classifying milk under Federal milk marketing orders would have a positive impact on milk producers, the Secretary submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the text of proposed amendments to the Federal milk marketing orders to implement the 2-class system for classifying milk.

(B) EFFECTIVE DATE- The proposed amendments described in subparagraph (A) shall take effect not earlier than the date that is 180 days after the date on which the report is submitted under that subparagraph.

(b) Deadline for Issuance of Orders- Section 8c(4) of the Agricultural Adjustment Act (7 U.S.C. 608c(4)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking `After' and inserting `Not later than 30 days after'.

(c) Advanced Pricing- Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by adding at the end the following:

`(P) ADVANCED PRICING- Not later than September 30, 2007, in calculating the advanced price of Class I butterfat milk and Class I and II skim milk under Federal milk marketing orders, the Secretary shall use the 4-week component prices that are used to calculate prices for Class III and Class IV milk, as determined by the Secretary.'.

(d) Economic Impact Assessment- The Secretary shall--

(1) carry out a review of the milk-feed ratio during the 1-year period ending on the date of enactment of this Act; and

(2) not later than September 30, 2008, and each time a proposed change in the Federal milk marketing order formulas is considered by the Secretary--

(A) assess the economic impact, over a 1- and 2-year period, of proposed changes in Federal milk marketing order formulas on--

(i) milk supply;

(ii) farm profitability;

(iii) consumer demand; and

(iv) market prices;

(B) submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry a report that describes the results of the assessment; and

(C) consider, and include in the record, the results of the assessment before making a decision on any proposed change to the Federal milk marketing order formulas.

SEC. 1006. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE FUND.

(a) Loans-

(1) IN GENERAL- Section 310B(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is amended--

(A) by designating the first through fifth sentences as paragraphs (1) through (5), respectively;

(B) by striking `sec 310B. (a) The Secretary' and inserting the following:

`SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.

`(a) Loans-

`(1) IN GENERAL- The Secretary';

(C) by striking `for the purposes of (1) improving' and inserting `for the purposes of--

`(A) improving';

(D) by striking `abatement and control, (2) the conservation' and inserting `abatement and control;

`(B) the conservation';

(E) by striking `rural areas, (3) reducing' and inserting `rural areas;

`(C) reducing';

(F) by striking `rural areas, and (4) to facilitate economic' and inserting `rural areas;

`(D) facilitating economic'; and

(G) by striking `foreign trade.' and inserting `foreign trade; and

`(E) providing processors of dairy products with incentives for investing in new equipment and technologies by using not more than $15,000,000 each fiscal year to--

`(i) make loans to dairy processors and cooperatives to cover not more than 50 percent of the cost of acquisition and adoption of new equipment, equipment upgrades, and new technologies--

`(I) at a fixed rate of interest not to exceed the prime lending rate plus 1 percent; and

`(II) with a term of not to exceed 15 years; and

`(ii) guarantee loans made to dairy processors and cooperatives for the acquisition and adoption of new dairy equipment, equipment upgrades, and new technologies, at a guarantee rate of 90 percent.'.

(2) CONFORMING AMENDMENTS-

(A) Section 307(a)(6)(B)(ii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)(ii)) is amended by striking `clause (1) of section 310B(a)' and inserting `section 310B(a)(1)(A)'.

(B) Section 333A(g)(1)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by striking `310B(a)(1)' and inserting `310(a)(1)(A)'.

(C) Section 381E(d)(3)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by striking `310B(a)(1)' and inserting `310B(a)(1)(A)'.

(b) Lending Power for Dairy Processing Cooperatives- Section 3.7 of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at the end the following:

`(g) Dairy Processing Cooperatives-

`(1) IN GENERAL- The banks for cooperatives may use not more than $15,000,000 each fiscal year to provide dairy processing cooperatives with working capital lines of credit and accounts receivable financing for the purpose of accessing export marketing opportunities for milk and milk products.

`(2) LIMITATIONS- Financing provided by the banks for cooperatives for a project under paragraph (1) may not exceed the lesser of--

`(A) $1,000,000; or

`(B) 75 percent of the costs of carrying out the project.

`(3) TERM-

`(A) IN GENERAL- Except as provided in subparagraph (B), the term of a line of credit described in paragraph (1) shall not exceed 24 months.

`(B) REVOLVING LINES OF CREDIT- A revolving line of credit may be used for multiple transactions.

`(4) DUE DATE- An accounts receivable financing loan under this subsection shall be due on the earlier of--

`(A) the date on which the receivable is paid; or

`(B) 180 days after the date of disbursement.

`(5) USE OF FINANCING-

`(A) WORKING CAPITAL LINE OF CREDIT FINANCING- Working capital line of credit financing under this subsection may be used--

`(i) to acquire inventory for the production of milk;

`(ii) to pay direct and indirect costs (such as design, engineering, labor, and overhead costs) used for--

`(I) the manufacture or purchase of goods, including work-in-process, for the production of milk; or

`(II) for the provision of services for the production of milk; or

`(iii) to support standby letters of credit used as bid bonds, performance bonds, or payment guarantees.

`(B) ACCOUNTS RECEIVABLE FINANCING- Accounts receivable financing under this subsection may be used to finance export accounts receivables for milk and milk products sold on payment terms of not more than 180 days after the date of arrival at the port of importation, if the finance export accounts receivable have been insured by the Commodity Credit Corporation or other guarantor approved by the Secretary.'.

SEC. 1007. FEDERAL LOAN FORGIVENESS PROGRAM.

The National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at the end the following:

`Subtitle P--Federal Dairy Education Loan Forgiveness

`SEC. 1495. SHORT TITLE.

`This subtitle may be cited as the `Federal Dairy Education Loan Forgiveness Act'.

`SEC. 1496. DEFINITIONS.

`In this subtitle:

`(1) FAMILY DAIRY FARM- The term `family dairy farm' means the real property of a dairy farm--

`(A) owned by--

`(i) 1 or more immediate family members; or

`(ii) a family dairy farm corporation; and

`(B) used for the production, for commercial purposes, of milk or milk products.

`(2) FAMILY DAIRY FARM CORPORATION- The term `family dairy farm corporation' means a corporation--

`(A) at least 75 percent of the assets of which are devoted to active involvement in farming; and

`(B) at least 75 percent of each class of stock of which is continuously owned by 1 or more immediate family members.

`(3) IMMEDIATE FAMILY MEMBER- The term `immediate family member' means a spouse, child, stepchild, parent, stepparent, grandparent, brother, stepbrother, sister, stepsister, or similar relative-in-law of an owner of real property, as determined by the Secretary.

`(4) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education' has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

`(5) PROGRAM- The term `program' means the Federal dairy education loan forgiveness program established under section 1497(a).

`(6) QUALIFIED APPLICANT- The term `qualified applicant' means a resident of the United States who, as determined by the Secretary--

`(A) holds a 2- or 4-year degree in a field related to the production of agricultural products from an institution of higher education;

`(B) on or after January 1, 2008, has commenced the first year of full-time ownership or operation of a family dairy farm; and

`(C) is the borrower of an outstanding qualified loan as a result of pursuing a degree described in subparagraph (A).

`(7) QUALIFIED LOAN- The term `qualified loan' means--

`(A)(i) a loan made, insured, or guaranteed under section 428 or 428H of the Higher Education Act of 1965 (20 U.S.C. 1078, 1078-8);

`(ii) a Federal Direct Stafford Loan or a Federal Direct Unsubsidized Stafford Loan made under section 455 of that Act (20 U.S.C. 1087e); or

`(iii) a consolidation loan under section 428C of that Act (20 U.S.C. 1078-3), or a Federal Direct Consolidation Loan under section 455 of that Act (20 U.S.C. 1087e), to the extent that the amount of the loan was used to repay a loan described in clause (i) or (ii); and

`(B) a loan under part B or D of title IV of that Act (20 U.S.C. 1070 et seq.); or

`(C) a loan under a guaranteed student loan program of the Department.

`SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVENESS PROGRAM.

`(a) In General- Subject to the availability of appropriations, the Secretary shall carry out a Federal dairy education loan forgiveness program under which the Secretary shall assume the obligation to repay an amount calculated in accordance with subsection (c) for 1 or more qualified loans made to eligible qualified applicants in accordance with this section.

`(b) Eligibility- A qualified applicant shall submit to the Secretary an application and such documentation of continued eligibility as the Secretary determines to be appropriate.

`(c) Maximum Amount- The maximum amount that the Secretary may repay under the program for each qualified applicant shall be equal to the average annual cost of tuition at land-grant colleges and universities (as determined by the Secretary annually), for each year that the qualified applicant--

`(1) is an owner or operator of a family dairy farm; and

`(2) has not otherwise received loan repayment on behalf of the qualified applicant under this section or any other Federal or State program.

`(d) Prohibition- Nothing in this section authorizes the refunding of any repayment of a qualified loan.

`(e) Exclusion From Income- Any payment to, or on behalf of, a qualified applicant under this subtitle shall not be included in the gross income of the qualified applicant for purposes of the Internal Revenue Code of 1986.

`(f) Authorization of Appropriations-

`(1) IN GENERAL- There are authorized to be appropriated such sums as are necessary to carry out this subtitle.

`(2) INSUFFICIENT FUNDS- If the total amount of funds appropriated to carry out this subtitle is insufficient to provide loan repayment under the program for all eligible qualified applicants, the Secretary shall provide loan repayment to eligible qualified applicants on a pro rata basis.'.

SEC. 1008. MANDATORY REPORTING OF DAIRY COMMODITIES.

(a) Definitions- Section 272 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637a) is amended to read as follows:

`SEC. 272. DEFINITIONS.

`In this subtitle:

`(1) DAIRY COMMODITY-

`(A) IN GENERAL- The term `dairy commodity' means a product manufactured from milk or a milk-derived ingredient.

`(B) INCLUSIONS- The term `dairy commodity' includes--

`(i) fluid milk;

`(ii) cheese;

`(iii) butter;

`(iv) nonfat dry milk;

`(v) skim milk;

`(vi) whey products;

`(vii) dry proteins (such as a milk protein concentrate, casein, and a caseinate);

`(viii) a lactose product; and

`(ix) a fresh dairy product (such as yogurt and ice cream).

`(2) DAIRY PROCESSOR- The term `dairy processor' means a person or legal entity that commercially processes milk into cheese, butter, nonfat dry milk, or other dairy solids.

`(3) SECRETARY- The term `Secretary' means the Secretary of Agriculture.'.

(b) Mandatory Reporting- Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) is amended--

(1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and

(2) by striking subsections (a) and (b) and inserting the following:

`(a) Daily Reporting-

`(1) IN GENERAL- The corporate officers or officially-designated representatives of each dairy processor shall report to the Secretary at least once each reporting day, not later than 10:00 a.m. Central Time, for each sales transaction involving a dairy commodity, information concerning--

`(A) the sales price;

`(B) the quantity sold;

`(C) the location of the sales transaction; and

`(D) product characteristics, including--

`(i) moisture level;

`(ii) packaging size;

`(iii) grade;

`(iv) if appropriate, fat or protein level;

`(v) heat level for dried products; and

`(vi) other defining product characteristics.

`(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public not less frequently than once each reporting day, categorized by location and product characteristics.

`(b) Weekly Reporting-

`(1) IN GENERAL- The corporate officers or officially-designated representatives of each dairy processor shall report to the Secretary, on the first reporting day of each week, not later than 9:00 a.m. Central Time, for the prior week information concerning--

`(A) the sales prices for sales transactions involving dairy commodities, categorized by product characteristics; and

`(B) the quantities of dairy commodities sold.

`(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public on the first reporting day of the each week, not later than 10:00 a.m. Central Time, categorized by location and product characteristics.

`(3) FEDERAL ORDER PRICES- The Secretary shall use weekly prices published under paragraph (2) to calculate Federal milk marketing order prices.

`(c) Monthly Reporting-

`(1) IN GENERAL- The corporate officers or officially-designated representatives of each dairy processor shall report to the Secretary, on the first reporting day of each month, not later than 9:00 a.m. Central Time, the quantity of all dairy commodities processed by the dairy processor during the prior month.

`(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public on the first reporting day of the each month, not later than 10:00 a.m. Central Time, categorized by location and product characteristics.'.

TITLE II--CONSERVATION

Subtitle A--Conservation Security

SEC. 2001. SENSE OF CONGRESS REGARDING THE CONSERVATION SECURITY PROGRAM.

It is the sense of Congress that the conservation security program established under subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) should--

(1) be fully funded and implemented on a nationwide basis;

(2) have simplified and streamlined payments and eligibility requirements to increase transparency, clarity, and ease of use by producers;

(3) create a better balance between rewards for current stewardship and incentives for new conservation;

(4) emphasize payments based on management intensity (the level of treatment) and the breadth of resource concerns addressed;

(5) reward producers for addressing the most important resources of concern as determined by States;

(6) provide greater flexibility to States and State technical committees to determine and rank priority resource concerns;

(7) provide adequate technical assistance to ensure that there is the capacity to enroll participants, provide on-site assessment and planning, and to facilitate timely contract renewals and modifications;

(8) provide a predictable and reliable stream of revenue based on environmental measures;

(9) be universally available and adaptable to all types of farm operations in all regions of the country;

(10) have expanded eligibility to include non-industrial private forested land, whether or not the land is incidental to an agricultural operation;

(11) provide a minimum annual base payment;

(12) be coordinated with other working land conservation programs of the Natural Resources Conservation Service;

(13) encourage payments based on carbon sequestration;

(14) encourage environmentally-sound methods and practices for the production of sustainable cellulosic bioenergy feedstocks; and

(15) ensure dual eligibility for certified organic farms in accordance with the amendments made by section 2002.

SEC. 2002. DUAL ELIGIBILITY FOR CERTIFIED ORGANIC FARMS.

Section 1238C of the Food Security Act of 1985 (16 U.S.C. 3838c) is amended by adding at the end the following:

`(h) Dual Eligibility for Certified Organic Farms-

`(1) IN GENERAL- Not later than 60 days after the date of enactment of this subsection, the Secretary shall establish a clear, producer-friendly means by which producers may simultaneously--

`(A) certify eligibility under the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) (referred to in this subsection as the `national organic program'); and

`(B) be determined eligible for enrollment in the conservation security program.

`(2) CONTINUOUS ENROLLMENT- The Secretary shall allow any producer that is certified as organic under the national organic program to automatically enroll in the conservation security program.

`(3) PRIORITY- If the Secretary establishes a system to select participants to enroll in the conservation security program from among eligible applicants, the Secretary shall give priority, within any class or category of potential participants, to producers certified under the national organic program.'.

SEC. 2003. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

Section 1230(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3830(a)(1)) is amended by striking `2002' and inserting `2013'.

SEC. 2004. CONSERVATION SECURITY PROGRAM.

(a) In General- Section 1238A(a) of the Food Security Act of 1985 (16 U.S.C. 3838a(a)) is amended by striking `2011' and inserting `2013'.

(b) Technical Assistance- Section 1238C(g) of the Food Security Act of 1985 (16 U.S.C. 3838c(g)) is amended by striking `2007' and inserting `2013'.

Subtitle B--Conservation Reserve

SEC. 2011. CONSERVATION RESERVE PROGRAM.

(a) In General- Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking `2007' and inserting `2013'.

(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), by striking the period at the end and inserting a semicolon;

(2) in paragraph (4)--

(A) in subparagraph (C), by striking `or' at the end; and

(B) in subparagraph (D), by striking `and' and inserting `or';

(3) in paragraph (5), by striking the period at the end and inserting a `; or'; and

(4) by adding at the end the following:

`(6) marginal pasture land or hay land that is otherwise ineligible, if the Secretary determines that the land--

`(A) is to be devoted to native vegetation appropriate to the locale; and

`(B)(i) will provide suitable habitat for a State or federally listed threatened or endangered species or a species determined by the Secretary of the Interior to be species of concern; or

`(ii) will contribute to the restoration of a critically endangered ecosystem or endangered ecosystem, as defined by the Secretary.'.

(c) Maximum Enrollment- Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended--

(1) by striking `The Secretary' and inserting the following:

`(1) IN GENERAL- The Secretary';

(2) in paragraph (1) (as designated by paragraph (1)), by striking `2007' and inserting `2013'; and

(3) by adding at the end the following:

`(2) ENROLLMENT GOALS- For the period beginning on the date of enactment of this paragraph and ending on December 31, 2013, the Secretary shall establish a goal to enroll not less than 7,000,000 acres of eligible land through the continuous enrollment program and the conservation reserve enhancement program.

`(3) GENERAL SIGNUP-

`(A) IN GENERAL- To the maximum extent practicable, the Secretary shall ensure that not more than 80 percent of the acres maintained in the conservation reserve at any 1 time during the 2008 through 2013 calendar years are acres that were enrolled through a general signup under section 1234(c)(2)(A).

`(B) REQUIREMENTS- For an offer to be accepted into the conservation reserve under the general signup, the Secretary shall require an offer to have an environmental benefit index score at or above a threshold that is 15 percent higher than the average of the thresholds used in general signups during fiscal years 1996 through 2006, adjusted for changes in the index over those fiscal years.'.

(d) Duration of Contract- Section 1231(e)(3) of the Food Security Act of 1985 (16 U.S.C. 3831(e)(3)) is amended by striking by striking `2002' and inserting `2008'.

(e) Early Termination Option for Bioenergy Production- Section 1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended by adding at the end the following:

`(4) EARLY TERMINATION OPTION FOR BIOENERGY PRODUCTION-

`(A) IN GENERAL- Subject to subparagraph (B), the Secretary shall offer to producers applying for entry into the conservation reserve through the general signup under section 1234(c)(2)(A), the option of including a contract provision to allow the affected acreage to exit from the conservation reserve at any time after an initial period of 3 years but prior to completing a full contract term in order to produce a sustainable cellulosic bioenergy crop on the affected acres.

`(B) ELIGIBLE LAND- Land eligible for the early termination option described in subparagraph (A) is land that--

`(i) has an erodibility index value of less than 15; and

`(ii) is otherwise eligible for enrollment in the conservation reserve (other than land that is to be enrolled under the continuous signup or the conservation reserve enhancement program under section 1234(c)(2)(B)).

`(C) RESTRICTION- As a condition of entering into a conservation reserve contract with an early termination option, if a producer with the option elects to exercise the option, the producer shall be required to restrict any agricultural production during the remaining term that the affected acres would have had under the contract to the production of a sustainable cellulosic bioenergy crop on the land.

`(D) PAYMENT REDUCTION- If a producer elects to have the early termination option included in the conservation reserve contract, the Secretary shall reduce the annual rental payment otherwise payable for the contract to be paid on those acres during the time of enrollment.

`(E) CONTRACT TERMINATION- If a producer exercises the early termination option to have the affected acreage leave the reserve in order to produce a sustainable cellulosic bioenergy crop, the Secretary shall terminate the conservation reserve contract and cease making any payment to the producer for the affected acres.'.

(f) Pilot Program for Enrollment of Wetland and Buffer Acreage in Conservation Reserve- Section 1231(h)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking `2007' and inserting `2013'.

(g) Balance of Natural Resource Purposes- Section 1231(j) of the Food Security Act of 1985 (16 U.S.C. 3831(j)) is amended--

(1) by striking `In determining' and inserting the following:

`(1) IN GENERAL- Subject to paragraph (2), in determining'; and

(2) by adding at the end the following:

`(2) EQUITABLE BALANCE ACROSS ALL CONTRACTS- In balancing purposes under paragraph (1), the Secretary is not required to balance all conservation purposes with respect to each individual contract offer.

`(3) WILDLIFE- In considering the extent to which a contract offer would achieve the conservation purposes of the conservation reserve program relating to wildlife habitat, the Secretary shall consider the extent to which the contract offer would--

`(A) contribute to increased populations of wildlife, including waterfowl, nongame grassland birds, and neotropical migrants; and

`(B) assist in the recovery of at-risk species.'.

(h) Duties of Owners and Operators- Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended--

(1) in paragraph (4)--

(A) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively; and

(B) by inserting before subparagraph (B) (as redesignated by subparagraph (A)), the following:

`(A) approved vegetative cover shall not include vegetative cover inappropriate to the locale;'.

(2) by redesignating paragraphs (5) through (10) as paragraphs (6) through (11); respectively;

(3) by inserting after paragraph (4) the following:

`(5) to undertake appropriate management activities on the land as needed throughout the term of the contract to achieve the purposes of the conservation reserve program;'; and

(4) in paragraph (8)(A)(i)(II) (as redesignated by paragraph (2)), by inserting before the semicolon at the end `, taking into account grassland types and species, location, weather conditions, and other factors that determine to what extent harvesting and grazing activities would advance the conservation purposes of the program'.

(i) Conservation Plans- Section 1232(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3832(b)(1)) is amended--

(1) in subparagraph (A), by striking `; and' and inserting `, including appropriate management activities required by subsection (a)(5);' and

(2) by adding at the end the following:

`(C) criteria for conducting any commercial use to be permitted, including criteria for managed harvesting and grazing that specifies frequency, timing, number of animal units, percentage of field, and other criteria to ensure that managed harvesting and grazing advances the conservation purposes of the conservation reserve program; and'.

(j) Cost-Share and Management Assistance- Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 3834(b)) is amended by adding at the end the following:

`(6) MANAGEMENT COSTS- The Secretary shall pay 75 percent of the cost of management activities, including control of invasive species, required under a contract entered into under this subchapter, subject to such limits as the Secretary may establish.'.

(k) Acceptance of Contract Offers- Section 1234(c)(3) of the Food Security Act of 1985 (16 U.S.C. 3834(c)(3)) is amended--

(1) by striking `In determining' and all that follows through `take into consideration' in subparagraph (A) and inserting the following:

`(A) IN GENERAL- In determining the acceptability of contract offers, the Secretary shall take into consideration';

(2) by striking `benefits; and' and all that follows through `establish' in subparagraph (B) and inserting the following: `benefits.

`(B) MAXIMIZING ENVIRONMENTAL BENEFITS- The Secretary shall establish criteria for the acceptance of contract offers that would maximize environmental benefits, including criteria relating to the characteristics of the land that is the subject of the contract offer, its location, proposed cover and proposed management practices.

`(C) FLEXIBILITY- The Secretary may establish';

(3) in subparagraph (C) (as redesignated by paragraph (2)), by striking `abated' and inserting `abated, in order to more effectively address specific State or regional resource concerns and conservation priorities'; and

(4) by adding at the end the following:

`(D) RELATIONSHIP TO OTHER CONSERVATION PROGRAMS- In the enrollment of land in the conservation reserve established under this subchapter, the Secretary shall give priority to land that would not produce comparable environmental benefits if the land were--

`(i) maintained in agricultural production; and

`(ii) enrolled in the environmental quality incentives program established under chapter 4 of subtitle D or other program designed to assist producers in improving the environmental performance of working agricultural land.'.

(l) Conservation Reserve Enhancement Program- Section 1234(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3834(f)(1)) is amended--

(1) by striking `(1)' and all that follows through `The total' and inserting the following:

`(1) AMOUNT-

`(A) IN GENERAL- Except as provided in subparagraph (B), the total'; and

(2) by adding at the end the following:

`(B) EXCEPTION- The Secretary may waive subparagraph (A) for persons participating in a conservation reserve enhancement program if the Secretary determines that a waiver is necessary to achieve the objectives of the conservation reserve enhancement program.'.

Subtitle C--Wetlands Reserve Program

SEC. 2021. WETLANDS RESERVE PROGRAM.

(a) In General- Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is amended by striking `2007' and inserting `2013'.

(b) Maximum Enrollment- Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking `2,275,000 acres' and inserting `5,000,000 acres'.

(c) Wetland Easement Conservation Plan- Section 1237A(b)(3) of the Food Security Act of 1985(16 U.S.C. 3837a(b)(3)) is amended by inserting before the semicolon at the end the following: `and activities necessary to maintain hydrologic, habitat, and other functional values of the wetlands'.

(d) Cost-Share and Management Assistance- Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended--

(1) in subsection (a)(1), by inserting `including necessary hydrologic and habitat maintenance activities,' after `values,'; and

(2) in subsection (b), by adding at the end the following:

`(4) MANAGEMENT COSTS- The Secretary may make payments to owners in an amount of up to the full actual cost of undertaking any ongoing or periodic management activities necessary to maintain the functional values of wetland enrolled in the wetlands reserve program.'.

Subtitle D--Environmental Quality Incentives

SEC. 2031. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

(a) Purposes- Section 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is amended--

(1) in paragraph (2), by inserting `, conserving energy,' after `resources'; and

(2) in paragraph (3), by inserting `and conserve energy,' after `wildlife'.

(b) Extension- Section 1240B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking `2010' and inserting `2013'.

(c) Bidding Down- Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) is amended by striking subsection (c) and inserting the following:

`(c) Bidding Down-

`(1) IN GENERAL- The Secretary shall not assign a higher priority to any application because the applicant is willing to accept a lower cost-share or incentive payment than the applicant would otherwise be entitled to receive.

`(2) COST-EFFECTIVENESS- Nothing in this subsection relieves the Secretary of the obligation, when evaluating applications for cost-share payments and incentive payments--

`(A) to evaluate the cost-effectiveness of the proposed conservation practices, systems, and approaches described in the applications; and

`(B) to prioritize the most cost-effective applications in accordance with section 1240C(1).'.

(d) Cost-Share Payment Exception- Section 1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking subparagraph (A) and inserting the following:

`(A) LIMITED RESOURCE AND BEGINNING FARMERS-

`(i) IN GENERAL- Subject to clause (ii), the Secretary may increase the amount provided to a producer under paragraph (1) to not more than 90 percent if the producer is a limited resource or beginning farmer or rancher, as determined by the Secretary.

`(ii) LIMITATION- A cost-share payment under this paragraph shall not be less than 115 percent of the amount of the payment that the Secretary may determine under paragraph (1).'.

(e) Allocation of Funding- Section 1240B(g) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended by striking `2007' and inserting `2013'.

(f) Evaluation of Applications for Cost-Share Payments and Incentive Payments- Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) is amended to read as follows:

`SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST-SHARE PAYMENTS AND INCENTIVE PAYMENTS.

`In evaluating applications for cost-share payments and incentive payments, the Secretary shall--

`(1) prioritize applications based on the overall level of cost-effectiveness of the applications to ensure, to the maximum extent practicable, that the proposed conservation practices, systems, and approaches are the most efficient means of achieving the anticipated environmental benefits of the project;

`(2) prioritize applications based on how effectively and comprehensively the projects address the 1 or more designated resource concerns;

`(3) reward higher levels of environmental performance, such as advanced levels of management within land management practices;

`(4) develop criteria for evaluating applications that will ensure that national, State, and local conservation priorities are effectively addressed; and

`(5) prioritize applications that will improve environmental performance on existing operations.'.

(g) Conservation Innovation Grants- Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) is amended--

(1) in subsection (a), by striking `may' and inserting `shall';

(2) in subsection (b)--

(A) in the matter before paragraph (1), by striking `may' and inserting `shall';

(B) in paragraph (2)--

(i) in subparagraph (A), by striking `and' at the end; and

(ii) by adding at the end the following:

`(C) methane digester research; and'.

(C) in paragraph (3), by striking the period at the end and inserting `; and'; and

(D) by adding at the end the following:

`(4) include a plan for technology transfer.'; and

(3) by adding at the end the following:

`(d) Technology Transfer- To the maximum extent practicable, the Secretary shall ensure efficient, effective transfer of innovative technologies and approaches demonstrated through projects that receive funding under this section.

`(e) Funding- In addition to amounts made available under section 1241(a)(6) to carry out this chapter, the Secretary shall use to carry out this section, of funds of the Commodity Credit Corporation--

`(1) $40,000,000 for fiscal year 2008;

`(2) $50,000,000 for fiscal year 2009;

`(3) $60,000,000 for fiscal year 2010; and

`(4) $75,000,000 for each of fiscal years 2011 through 2013.'.

(h) Ground and Surface Water Conservation- Section 1240I(c)(1)(C)) of the Food Security Act of 1985 (16 U.S.C. 3839aa-9(c)(1)(C)) is amended by striking `2007' and inserting `2013'.

(i) Performance Incentives for States- 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. PERFORMANCE INCENTIVES FOR STATES.

`(a) High Level of Performance Bonus- For each of fiscal years 2008 through 2013, 10 percent of the funds made available to carry out this chapter shall be reserved by the Secretary for bonus allocations to States that demonstrate a high level of performance in implementing the environmental quality incentives program, as determined by the Secretary in accordance with subsection (b).

`(b) Special Considerations- In evaluating State performance under subsection (a), the Secretary shall reward States that--

`(1) consistently meet the requirements of section 1240C in evaluating offers and payments;

`(2) dedicate a portion of the annual environmental quality incentives program allocation of the States to multiproducer cooperative efforts to address specific resource concerns;

`(3) collaborate with other Federal and State agencies, local governments, educational institutions, and for-profit and nonprofit organizations to monitor and evaluate the environmental outcomes associated with implementation of the environmental quality incentives program;

`(4) demonstrate effective and efficient program delivery, including the provision of adequate technical assistance to all program participants through--

`(A) appropriate staffing; and

`(B) cooperation with other Federal, State, tribal, and local agencies, for-profit and nonprofit organizations, and individuals with demonstrated expertise in the planning and implementation of conservation practices, systems, and approaches;

`(5) support and encourage innovative approaches to addressing resource concerns;

`(6) effectively leverage Federal funding with local and State matching funds; and

`(7) demonstrate effective outreach and innovative approaches to reaching and serving beginning farmers and ranchers, limited-resource producers, and operators with lower rates of historical participation in Federal farm and conservation programs.'.

Subtitle E--Farmland Protection Program

SEC. 2041. FARMLAND PROTECTION PROGRAM.

(a) Definitions- Section 1238H of the Food Security Act of 1985 (16 U.S.C. 3838h) is amended--

(1) by striking paragraph (2) and inserting the following:

`(2) ELIGIBLE LAND-

`(A) IN GENERAL- The term `eligible land' means land on a farm or ranch that is--

`(i) cropland;

`(ii) rangeland;

`(iii) grassland;

`(iv) pasture land; or

`(v) forest land that is an incidental part of an agricultural operation, as determined by the Secretary.';

(2) by redesignating paragraph (4) as paragraph (5);

(3) by inserting after paragraph (3) the following:

`(4) PERMANENT CONSERVATION EASEMENT- The term `permanent conservation easement' means a conservation easement or other interest in eligible land that--

`(A) is for the primary purpose of protecting the agricultural production capacity of the eligible land; and

`(B) is permanent or for the maximum duration allowed under State law.'; and

(4) by adding at the end the following:

`(6) QUALIFIED STATE OR LOCAL ENTITY- The term `qualified State or local entity' means a public or private entity that--

`(A) operates a farm and ranch land protection program that--

`(i) has for at least 3 calendar or fiscal years used or provided public or private funds to purchase permanent conservation easements on not less than 10 farms or ranches;

`(ii) has the necessary authority under State law, as well as the technical and financial capacity and natural resources--

`(I) to monitor and enforce the terms of the permanent conservation easements so that the purpose of the permanent conservation easements is carried out for the maximum allowable duration; or

`(II) in the case of a governmental entity, to require other public or private holders of the permanent conservation easements acquired with public funding to hold, monitor, and enforce in perpetuity the permanent conservation easements for the purpose described in subclause (I); and

`(iii) has financial control policies to ensure that, on average, the purchase price of the permanent conservation easements does not exceed the appraised fair market value of the permanent conservation easements; and

`(B) is an eligible entity.'.

(b) Farmland Protection- Section 1238I of the Food Security Act of 1985 (16 U.S.C. 3838i) is amended--

(1) by redesignating subsections (b) and (c) as subsections (e) and (f), respectively;

(2) by striking subsection (a) and inserting the following:

`(a) Program-

`(1) IN GENERAL- The Secretary, acting through the Natural Resources Conservation Service, shall carry out a farm and ranch land protection program under which the Secretary shall facilitate and provide funding for the purchase of conservation easements or other interests in eligible land for the purpose of protecting the agricultural production capacity and natural resources of the land by limiting incompatible nonagricultural uses of the land.

`(2) PRIORITY- In carrying out the program, the Secretary shall give the highest priority to protecting farm and ranch land with prime, unique, or other productive soils that are at risk of nonagricultural development.

`(b) Grants-

`(1) IN GENERAL- The Secretary, acting through the Natural Resources Conservation Service, shall use funds made available to carry out this subchapter to award grants to qualified State or local entities for the purchase of conservation easements and other interests in land.

`(2) DISTRIBUTION- The Secretary shall distribute grants described in paragraph (1) among States based on--

`(A) the demonstrated need for farm and ranch land protection; and

`(B) the relative contribution of funds provided by State or local entities for the protection of farm and ranch land.

`(3) USE OF GRANTS- A qualified State or local entity that receives a grant under this subsection--

`(A) may use the grant funds to purchase 1 or more conservation easements, regardless of whether the qualified State or local entity has a pending purchase offer for any of the conversation easements at the time of receiving the grant;

`(B) shall use the grant funds only for the purchase of conservation easements and other interests in land; and

`(C) may use up to 10 percent of the amount of the grant for reasonable costs of purchasing and enforcing conservation easements and other interests in land.

`(4) REMAINING FUNDS- Any funds remaining after grants are distributed to qualified State or local entities shall be available to other eligible entities as matching funds for individual purchases of conservation easements and other interests in land.

`(c) Grant Agreements-

`(1) IN GENERAL- The Secretary, acting through the Natural Resources Conservation Service, may enter into agreements with qualified State or local entities, under which a State or local entity may purchase conservation easements using a combination of the funds of the entity and grant funds made available by the Secretary under subsection (b).

`(2) TERMS AND CONDITIONS-

`(A) IN GENERAL- Subject to subparagraph (B), an agreement described in paragraph (1) shall stipulate the terms and conditions under which qualified State or local entities shall use grant funds distributed by the Secretary under subsection (b).

`(B) REQUIREMENTS- Each agreement shall, in accordance with the purposes of the program under this section--

`(i) authorize the State or local entity to determine the criteria and priorities of the entity for purchasing conservation easements and other interests in land;

`(ii) authorize the State or local entity to establish terms and conditions for conservation easements and other purchases of interests in land, if--

`(I) such terms and conditions are adequate under State law to achieve and permit effective enforcement of the conservation purposes of the conservation easements or other interests; and

`(II) the State or local entity includes a requirement regarding the impervious surfaces to be allowed for any conservation easement or other interest in land purchased using grant funds provided under this section;

`(iii) not require a Federal contingent right of enforcement or reversionary interest in the conservation easement or other interest in land; and

`(iv) allow qualified entities to use up to 10 percent of the amount of the grant for reasonable costs of purchasing and enforcing conservation easements and other interests in land.

`(d) Individual Purchases-

`(1) IN GENERAL- The Secretary may enter into agreements with eligible entities under which the Secretary shall provide matching funds to the eligible entities for the purpose of purchasing conservation easements or other interests in land on individual farm and ranch properties.

`(2) REQUIREMENTS- An agreement described in paragraph (1) shall--

`(A) include such terms and conditions as the Secretary considers appropriate to ensure that the purposes of the farmland protection program are carried out;

`(B) not require a Federal continent right of enforcement or reversionary interest in the conservation easement or other interest in land, if--

`(i) the conservation easement or other interest in land is held by a State or local agency; or

`(ii) a qualified State or local entity will hold a contingent right of enforcement in the conservation easement or other interest in land.';

(3) in subsection (e) (as redesignated by paragraph (1))--

(A) by striking `Any highly' and inserting the following:

`(1) IN GENERAL- Notwithstanding subsection (c)(2)(B)(ii), subject to paragraph (2), any highly'; and

(B) by adding at the end the following:

`(2) PERMANENT CONSERVATION EASEMENTS- In the case of a permanent conservation easement, the Secretary may not require the conversion of cropland to less intensive uses if, under the conservation plan, soil erosion can be reduced to `T' or below.'; and

(4) in paragraph (1) of subsection (f) (as redesignated by paragraph (1))--

(A) in subparagraph (A), by striking `section 1241(d)' and inserting `1241(a)(4)';

(B) by striking `shall not exceed 50 percent' and inserting the following: `shall not exceed--

`(i) 50 percent';

(C) by striking the period at the end and inserting `; or'; and

(D) by adding at the end the following:

`(ii) if a qualified conservation contribution, as defined by section 170(h) of the Internal Revenue Code of 1986, of at least 25 percent of the market value is made by the landowner in connection with the purchase of a conservation easement or other interest in land, 2/3 of the actual cost of purchasing the conservation easement or other interest in land.'.

SEC. 2042. DEBT FOR AGRICULTURAL EASEMENTS.

Subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 is amended--

(1) by redesignating section 1238J (16 U.S.C. 3838j) as 1238K; and

(2) by inserting after section 1238I (16 U.S.C. 3838i) the following:

`SEC. 1238J. DEBT FOR AGRICULTURAL EASEMENTS.

`(a) Definitions- In this section:

`(1) CONSERVATION PURPOSES- The term `conservation purposes' means the permanent protection of agricultural land for continued agricultural use.

`(2) GOVERNMENTAL ENTITY- The term `governmental entity' means any Federal agency, a State or State agency, or a unit of local government.

`(3) RECREATIONAL PURPOSES- The term `recreational purposes' includes hunting.

`(4) WILDLIFE- The term `wildlife' has the meaning given the term `fish or wildlife' in section 2 of the Lacey Act Amendments of 1981 (16 U.S.C. 3371).

`(b) Contracts on Loan Security Properties- Subject to subsection (c), the Secretary--

`(1) may enter into a contract relating to real property for conservation purposes, recreational purposes, or wildlife purposes; and

`(2) shall offer to enter into a contract relating to real property for conservation purposes if--

`(A) the property secures any delinquent loan made under any law administered by the Secretary and held by the Secretary;

`(B) at least 50 percent of the property is prime or unique farmland or farmland of statewide importance, as determined by the Secretary; and

`(C) the property is reasonably likely to be developed for nonagricultural purposes in the absence of such a contract, as determined by the Secretary.

`(c) Limitations- The Secretary may enter into a contract described in subsection (b) if--

`(1) the property is prime or unique farmland, farmland of statewide importance, wetland, upland, or highly erodible land;

`(2) the property is determined by the Secretary to be suitable for the purposes of the contract;

`(3) the property secures any loan made under any law administered by the Secretary and held by the Secretary; and

`(4) the contract better enables a qualified borrower to repay the loan in a timely manner, as determined by the Secretary.

`(d) Terms and Conditions- The terms and conditions specified in each contract described in subsection (b) shall--

`(1) specify the purposes for which the real property may be used;

`(2) identify the conservation measures to be taken, and the 1 or more agricultural, recreational, or wildlife uses to be allowed, with respect to the real property; and

`(3) require the owner of the property to permit the Secretary, and any person or governmental entity designated by the Secretary, to have access to the real property for the purpose of monitoring compliance with the contract.

`(e) Loan Reduction or Forgiveness-

`(1) IN GENERAL- Subject to paragraph (2), the Secretary may reduce or forgive the outstanding debt of a borrower--

`(A) in the case of a borrower to whom the Secretary has made 1 or more outstanding loans under laws administered by the Secretary, by canceling that part of the aggregate amount of the outstanding loans that bears the same ratio to the aggregate amount as--

`(i) the number of acres of the real property of the borrower that are subject to the contract; bears to

`(ii) the aggregate number of acres securing the loans; or

`(B) in any other case, by treating as prepaid that part of the principal amount of a new loan to the borrower issued and held by the Secretary under a law administered by the Secretary that bears the same ratio to the principal amount as--

`(i) the number of acres of the real property of the borrower that are subject to the contract; bears to

`(ii) the aggregate number of acres securing the new loan.

`(2) LIMITATION- The amount canceled or treated as prepaid pursuant to paragraph (1) shall not exceed--

`(A) in the case of a delinquent loan, the greater of--

`(i) the value of the land for which the contract is entered into; or

`(ii) the difference between--

`(I) the amount of the outstanding loan secured by the land; and

`(II) the value of the land;

`(B) in the case of a nondelinquent loan, 33 percent of the amount of the loan secured by the land; or

`(C) for any loan, the difference between--

`(i) the fair market value of the land for which the contract is entered into; and

`(ii)(I) any reductions required by the terms of the contract; and

`(II) the fair market value of the land unrestricted by the contract.

`(f) Consultations With Fish and Wildlife Service- If the Secretary elects to use the authority provided by this section to enter into contracts for recreational or wildlife purposes, the Secretary shall consult with the Secretary of the Interior to--

`(1) select real property for which the Secretary may enter into contracts for recreational or wildlife purposes under this section;

`(2) formulate the terms and conditions of such contracts; and

`(3) enforce the contracts.

`(g) Enforcement- The Secretary, and any person or governmental entity designated by the Secretary, may enforce a contract entered into by the Secretary under this section.'.

SEC. 2043. FARMLAND PROTECTION POLICY ACT.

(a) Findings- Section 1540(a) of the Farmland Protection Policy Act (7 U.S.C. 4201(a)) is amended--

(1) by striking the section heading and all that follows through paragraph (3) and inserting the following:

`SEC. 1540. FINDINGS, PURPOSES, AND DEFINITIONS.

`(a) Findings- Congress finds that--

`(1) the farmland of the United States is a unique and irreplaceable natural resource critical to the national security of the United States, that provides food, fiber, and renewable energy necessary for the continued welfare of the people of the United States;

`(2) each year, a large quantity of United States farmland is unnecessarily and irrevocably converted from actual or potential agricultural use to nonagricultural use;

`(3) continued conversion of the United States farmland base to nonagricultural uses may threaten the ability of the United States to produce food, fiber, and renewable energy in sufficient quantities to meet domestic needs and the demands of export markets;';

(2) in paragraph (5), by striking `would be preferred' and inserting `are feasible';

(3) in paragraph (6), by striking `and' at the end;

(4) in paragraph (7), by striking the period at the end and inserting `; and'; and

(5) by adding at the end the following:

`(8) the Department of Agriculture and other Federal agencies should be required--

`(A) to ensure that the actions of the Federal Government do not cause permanently-protected United States farmland to be irreversibly converted to nonagricultural uses in cases in which there are other feasible alternatives; and

`(B) to mitigate the loss of any such farmland if no feasible alternative exists.'.

(b) Purposes and Definitions- Section 1540 of the Farmland Protection Policy Act (7 U.S.C. 4201) is amended by striking subsections (b) and (c) and inserting the following:

`(b) Purposes- The purposes of this subtitle are--

`(1) to minimize the extent to which Federal programs contribute to the irreversible conversion of farmland to nonagricultural uses; and

`(2) to the maximum extent practicable, ensure that Federal programs are administered in a manner that is compatible with State, local, and private programs and policies to protect farmland.

`(c) Definitions- In this subtitle:

`(1) FARMLAND- The term `farmland' means--

`(A) prime farmland;

`(B) unique farmland; and

`(C) farmland of statewide or local importance.

`(2) FARMLAND OF STATEWIDE OR LOCAL IMPORTANCE- The term `farmland of statewide or local importance' means farmland, other than prime farmland or unique farmland, that--

`(A) is of statewide or local importance for the production of food, feed, fiber, forage, oilseed, or energy crops, as determined by the appropriate State or 1 or more agencies of a unit of local government; and

`(B) the Secretary determines should be considered to be farmland for the purposes of this subtitle.

`(3) FEDERAL PROGRAM-

`(A) IN GENERAL- The term `Federal program' means those activities or responsibilities of a department, agency, independent commission, or other unit of the Federal Government that involve--

`(i) undertaking, financing, or assisting construction or improvement projects; or

`(ii) acquiring, managing, or disposing of Federal land and facilities.

`(B) EXCLUSION- The term `Federal program' does not include construction or improvement projects that are, as of the effective date of this subtitle--

`(i) beyond the planning stage; and

`(ii) in the active design or construction stage.

`(4) PERMANENTLY-PROTECTED FARMLAND- The term `permanently-protected farmland' means farmland that is--

`(A) subject to a permanent easement for conservation purposes described in clause (i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;

`(B) held by the Federal Government or any State or local unit of government.

`(5) PRIME FARMLAND-

`(A) IN GENERAL- The term `prime farmland' means land that has the best combination of physical and chemical characteristics for producing food, feed, fiber, forage, oilseed, and other agricultural crops with minimum inputs of fuel, fertilizer, pesticides, and labor, and without intolerable soil erosion, as determined by the Secretary.

`(B) INCLUSIONS- The term `prime farmland' includes land that--

`(i) possesses the characteristics described in subparagraph (A); and

`(ii) is being used currently to produce livestock or timber.

`(C) EXCLUSION- The term `prime farmland' does not include land already in or committed to urban development or water storage.

`(6) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

`(7) STATE- The term `State' means--

`(A) each of the several States of the United States;

`(B) the District of Columbia;

`(C) the Commonwealth of Puerto Rico;

`(D) Guam;

`(E) American Samoa;

`(F) the Commonwealth of the Northern Mariana Islands;

`(G) the Federated States of Micronesia;

`(H) the Republic of the Marshall Islands;

`(I) the Republic of Palau; and

`(J) the United States Virgin Islands.

`(8) UNIQUE FARMLAND- The term `unique farmland' means land other than prime farmland or farmland of statewide or local importance that--

`(A) is used for production of specific high-value food and fiber crops, as determined by the Secretary; and

`(B) has the special combination of soil quality, location, growing season, and moisture supply needed to economically produce sustained high quality or high yields of specific crops (such as citrus, tree nuts, olives, cranberries, fruits, and vegetables) when treated and managed according to acceptable farming methods.

`(9) UNIT OF THE FEDERAL GOVERNMENT- The term `unit of the Federal Government' means each department, agency, independent commission, and other unit of the Federal Government.

`(10) UNIT OF LOCAL GOVERNMENT- The term `unit of local government' means--

`(A) the government of a county, municipality, town, township, village, or other unit of general government below the State level; or

`(B) a combination of units of local government acting through an areawide agency under State law or an agreement for the formulation of regional development policies and plans.';

(c) Farmland Protection Policy- Section 1541 of the Farmland Protection Policy Act (7 U.S.C. 4202) is amended--

(1) by striking the section heading and all that follows through `(a) The Department of Agriculture' and inserting the following:

`SEC. 1541. FARMLAND PROTECTION POLICY.

`(a) In General- The Secretary';

(2) by striking subsection (b);

(3) in subsection (c), by striking `(c) The Department of Agriculture' and inserting the following:

`(f) Provision of Information- The Secretary'; and

(4) by inserting after subsection (a) the following:

`(b) Use of Criteria- Each unit of the Federal Government shall, in cooperation with the Secretary, use the criteria established under subsection (a) to--

`(1) identify the quantity of farmland that will be directly or indirectly converted through proposed Federal program actions under the jurisdiction of the unit of the Federal Government; and

`(2) to the maximum extent practicable, develop and implement alternative actions--

`(A) to minimize the impact of each proposed Federal program action on the conversion of farmland to nonagricultural uses; and

`(B) ensure the compatibility of the proposed Federal program action with State, unit of local government, and private programs and policies to protect farmland.

`(c) Limitation-

`(1) IN GENERAL- Permanently-protected farmland shall not be subject to conversion to nonagricultural uses by Federal programs unless the Secretary determines that there is no other feasible alternative to the proposed Federal program action.

`(2) MITIGATION- In a case in which a Federal action results in the conversion of permanently-protected farmland to nonagricultural use, the responsible Federal entity shall mitigate the loss of the permanently-protected farmland with the protection of an equal amount of permanently-protected farmland that is of equal or greater quality to the converted land.

`(d) Annual Report-

`(1) IN GENERAL- Each unit of the Federal Government shall submit to the Secretary an annual report containing the information required under subsection (b).

`(2) AVAILABILITY- The Secretary shall make each report described in paragraph (1) available to the public on an annual basis.

`(e) Enforcement- Any unit of the Federal Government, State, unit of local government, organization, or individual aggrieved by a violation of any of the provisions of this subtitle shall have a civil cause of action against the unit of the Federal Government committing the violation.'.

(d) Existing Policies and Procedures- Section 1542 of the Farmland Protection Policy Act (7 U.S.C. 4203) is amended--

(1) by striking the section heading and all that follows through `or other unit' in subsection (a) and inserting the following:

`SEC. 1542. EXISTING POLICIES AND PROCEDURES.

`(a) In General- Each unit'; and

(2) by striking subsection (b) and inserting the following:

`(b) Requirement- Each unit of the Federal Government, with the assistance of the Secretary, shall, as appropriate, bring the programs, authorities, and administrative activities of the unit of the Federal Government into conformity with the purposes and policy of this subtitle.'.

(e) Technical Assistance- Section 1543 of the Farmland Protection Policy Act (7 U.S.C. 4204) is amended to read as follows:

`SEC. 1543. TECHNICAL ASSISTANCE.

`The Secretary shall provide to States, units of local government, nonprofit organizations, and the general public technical assistance to assist in the development of programs or policies to limit the conversion of farmland to nonagricultural uses.'.

(f) Farmland Resource Information- Section 1544 of the Farmland Protection Policy Act (7 U.S.C. 4205) is amended to read as follows:

`SEC. 1544. FARMLAND RESOURCE INFORMATION.

`(a) In General- The Secretary, through existing agencies or interagency groups, and in cooperation with nonprofit organizations or the cooperative extension services of the States, shall--

`(1) design and implement educational programs and materials emphasizing the importance of productive farmland to the well-being of the United States; and

`(2) distribute educational materials through communications media, schools, groups, and other Federal agencies.

`(b) Farmland Information Centers-

`(1) IN GENERAL- The Secretary shall designate 1 or more farmland information centers to provide technical assistance and serve as central depositories and distribution points for information on farmland issues.

`(2) INCLUSIONS- Information provided by the 1 or more farmland information centers shall--

`(A) include on-line access to data on land cover; and

`(B) use changes and trends and literature, laws, historical archives, policies, programs, and innovative actions or proposals by local and State governments or nonprofit organizations relating to farmland protection.

`(c) Funding-

`(1) IN GENERAL- Funding for subsection (b) shall--

`(A) be provided through the farmland protection program established under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.);

`(B) not exceed 1/2 of 1 percent of annual appropriations for that program; and

`(C) be not less than $400,000 for each fiscal year.

`(2) MATCHING FUNDS- Federal funding for the 1 or more farmland information centers shall be matched on a 1-to-1 basis with non-Federal funds, through cash or in-kind contributions.'.

(g) Implementation- Section 1545 of the Farmland Protection Policy Act (7 U.S.C. 4206) is amended to read as follows:

`SEC. 1545. IMPLEMENTATION.

`Except as provided in sections 1544 and 1548, the Secretary shall carry out this subtitle using existing facilities and funds otherwise available, through the use of grants, contracts, or such other means as the Secretary considers to be appropriate.'.

(h) Reports- Section 1546 of the Farmland Protection Policy Act (7 U.S.C. 4207) is amended to read as follows:

`SEC. 1546. REPORT.

`(a) In General- At the beginning of each calendar year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the progress made in implementing this subtitle.

`(b) Inclusions- An annual report under subsection (a) shall include--

`(1) data on the conversion of farmland to nonagricultural uses at the national, State, and, as available, local level;

`(2) information on the effects of Federal programs, authorities, and administrative activities with respect to the protection of United States farmland; and

`(3) the results of the data collected and reviews and actions taken as required under sections 1541 and 1542.'.

(i) Statement of Limitation- Section 1547 of the Farmland Protection Policy Act (7 U.S.C. 4208) is amended--

(1) by striking the section heading and all that follows through `(a) This subtitle' and inserting the following:

`SEC. 1547. STATEMENT OF LIMITATION.

`(a) In General- This subtitle'; and

(2) by striking `(b) None of' and inserting the following:

`(b) National Emergencies- None of'.

(j) Repeals- The Farmland Protection Policy Act is amended by striking sections 1548, 1549, 1550, 1552, 1553, and 1554 (7 U.S.C. 4209, 4201 note, 2273; 16 U.S.C. 3471, 3472, 3473).

(k) National Agricultural Land Commission- The Farmland Protection Policy Act is amended by inserting after section 1547 (7 U.S.C. 4208) the following:

`SEC. 1548. NATIONAL AGRICULTURAL LAND COMMISSION.

`(a) Establishment- There is established a commission to be known as the `National Agricultural Land Commission' (referred to in this section as the `Commission').

`(b) Membership-

`(1) COMPOSITION- The Commission shall be composed of 23 members, of whom--

`(A) 1 shall be the Secretary, who shall be the Chairperson of the Commission;

`(B) 10 members shall be appointed by the President, from among individuals who are representatives of State and local governments, academia, nonprofit conservation organizations, and farm, forest, and ranch interests;

`(C) 6 shall be members, or designees of members, of the Committee on Agriculture of the House of Representatives; and

`(D) 6 shall be members, or designees of members of the Committee on Agriculture, Nutrition, and Forestry of the Senate.

`(2) TERM; VACANCIES-

`(A) TERM- A member shall be appointed for the life of the Commission.

`(B) VACANCIES- A vacancy on the Commission--

`(i) shall not affect the powers of the Commission; and

`(ii) shall be filled in the same manner as the original appointment was made.

`(3) INITIAL MEETING- Not later than 30 days after the date on which all members of the Commission have been appointed, the Commission shall hold the initial meeting of the Commission.

`(4) MEETINGS- The Commission shall meet at the call of the Chairperson.

`(c) Duties-

`(1) STUDY-

`(A) IN GENERAL- The Commission shall--

`(i) conduct a study of all matters relating to the importance of protecting an adequate agricultural land base to homeland security, food security, energy security, environmental quality, and quality of life in the United States; and

`(ii) develop recommendations by which the Federal Government can encourage the retention of agricultural land at the national, State, and local levels.

`(B) REQUIREMENTS- In conducting the study, the Commission shall--

`(i) identify the quality, quantity, and location of the agricultural land in the United States;

`(ii) identify and define the effects of urbanization, industrial, and commercial development and other nonagricultural activities on the United States agricultural land base;

`(iii) identify and define the implications for the United States agricultural land base of--

`(I) global and national population trends and the projected international and domestic demand for food and energy production from the United States agricultural land;

`(II) national land use trends and competing demands on the United States agricultural land as a source for housing, industrial, and commercial development, food, fiber and energy production, and recreational and environmental amenities;

`(III) national environmental trends and the capacity of the United States agricultural land to contribute to improvements in water quality and quantity, air quality, and carbon sequestration;

`(IV) agricultural land loss by region and the projected impact of the land loss on the food and energy security, natural resources, and economy of the region;

`(V) land ownership patterns and the impact of the patterns on the security of the United States agricultural land base;

`(VI) State and local programs, policies, and actions effecting or supporting agricultural land availability; and

`(VII) Federal programs, policies, and actions affecting or supporting agricultural land availability; and

`(iv) explore methods by which the Federal Government can encourage retention of the United States agricultural land base at the Federal, State, and local levels.

`(2) REPORTS-

`(A) INTERIM REPORT- Not later than 18 months after the date of enactment of this paragraph, the Commission shall submit to the President and Congress an interim report that contains--

`(i) the analysis by the Commission of existing data; and

`(ii) any needs of the Commission for additional information.

`(B) FINAL REPORT- Not later than 3 years after the date of enactment of this paragraph, the Commission shall submit to the President and Congress a final report that contains--

`(i) a detailed statement of the findings and conclusions of the Commission; and

`(ii) the recommendations of the Commission for such legislation and administrative actions as the Commission considers appropriate.

`(d) Powers-

`(1) HEARINGS- The Commission may hold such hearings, meet and act at such times and places, take such testimony, and receive such evidence as the Commission considers advisable to carry out this