[Congressional Record Volume 158, Number 88 (Tuesday, June 12, 2012)]
[Senate]
[Pages S3985-S4107]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2344. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 361, between lines 8 and 9, insert the following:

     SEC. 4208. LEAN FINELY TEXTURED BEEF.

       (a) School Meal Programs.--Section 14 of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1762a) is 
     amended by adding at the end the following:
       ``(i) Lean Finely Textured Beef.--The Secretary shall give 
     States and school food authorities the option to purchase and 
     receive meat and meat food products that do not contain low-
     temperature rendered product, also known as lean finely 
     textured beef (as defined by the Secretary), for use in 
     school meal programs under this Act and the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.).''.
       (b) Labeling.--Section 1(n) of the Federal Meat Inspection 
     Act (21 U.S.C. 601(n)) is amended--
       (1) in paragraph (11), by striking ``or'' at the end;
       (2) in paragraph (12), by striking the period at the end 
     and inserting ``; or'' and
       (3) by adding at the end the following:
       ``(13) if in a package or other container and at the final 
     point of sale the meat or meat food product contains low-
     temperature rendered product, also known as lean finely 
     textured beef (as defined by the Secretary), unless the 
     package or other container bears a label stating that the 
     meat or meat food product contains the low-temperature 
     rendered product.''.
                                 ______
                                 
  SA 2345. Mr. MANCHIN (for himself and Ms. Ayotte) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 361, between lines 8 and 9, insert the following:

     SEC. 4208. DIETARY GUIDELINES FOR AMERICANS.

       Section 301(a) of the National Nutrition Monitoring and 
     Related Research Act of 1990 (7 U.S.C. 5341(a)) is amended by 
     adding at the end the following:
       ``(3) Pregnant women and young children.--Not later than 
     the 2020 report and in each report thereafter, the 
     Secretaries shall include national nutritional and dietary 
     information and guidelines for pregnant women and children 
     from birth until the age of 2.''.
                                 ______
                                 
  SA 2346. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle C of title XII, add the following:

     SEC. 12205. SENSE OF CONGRESS ON NUCLEAR PROGRAM OF IRAN.

       (a) Findings.--Congress makes the following findings:
       (1) Since at least the late 1980s, the Government of the 
     Islamic Republic of Iran has engaged in a sustained and well-
     documented pattern of illicit and deceptive activities to 
     acquire nuclear capability.
       (2) The United Nations Security Council has adopted 
     multiple resolutions since 2006 demanding the full and 
     sustained suspension of all uranium enrichment-related and 
     reprocessing activities by the Government of the Islamic 
     Republic of Iran and its full cooperation with the 
     International Atomic Energy Agency (IAEA) on all outstanding 
     issues related to its nuclear activities, particularly those 
     concerning the possible military dimensions of its nuclear 
     program.
       (3) On November 8, 2011, the IAEA issued an extensive 
     report that--
       (A) documents ``serious concerns regarding possible 
     military dimensions to Iran's nuclear programme'';
       (B) states that ``Iran has carried out activities relevant 
     to the development of a nuclear device''; and
       (C) states that the efforts described in subparagraphs (A) 
     and (B) may be ongoing.
       (4) As of November 2008, Iran had produced, according to 
     the IAEA--
       (A) approximately 630 kilograms of uranium hexaflouride 
     enriched up to 3.5 percent uranium-235; and
       (B) no uranium hexaflouride enriched up to 20 percent 
     uranium-235.
       (5) As of November 2011, Iran had produced, according to 
     the IAEA--
       (A) nearly 5,000 kilograms of uranium hexaflouride enriched 
     up to 3.5 percent uranium-235; and
       (B) 79.7 kilograms of uranium hexaflouride enriched up to 
     20 percent uranium-235.
       (6) On January 9, 2012, IAEA inspectors confirmed that the 
     Government of the Islamic Republic of Iran had begun 
     enrichment activities at the Fordow site, including possibly 
     enrichment of uranium hexaflouride up to 20 percent uranium-
     235.
       (7) Section 2(2) of the Comprehensive Iran Sanctions, 
     Accountability, and Divestment Act of 2010 (Public Law 111 
     195) states, ``The United States and other responsible 
     countries have a vital interest in working together to 
     prevent the Government of Iran from acquiring a nuclear 
     weapons capability.''
       (8) If the Government of the Islamic Republic of Iran were 
     successful in acquiring a nuclear weapon capability, it would 
     likely spur other countries in the region to consider 
     developing their own nuclear weapons capabilities.
       (9) On December 6, 2011, Prince Turki al-Faisal of Saudi 
     Arabia stated that if international efforts to prevent Iran 
     from obtaining nuclear weapons fail, ``we must, as a duty to 
     our country and people, look into all options we are given, 
     including obtaining these weapons ourselves''.
       (10) Top leaders of the Government of the Islamic Republic 
     of Iran have repeatedly threatened the existence of the State 
     of Israel, pledging to ``wipe Israel off the map''.
       (11) The Department of State has designated Iran as a state 
     sponsor of terrorism since 1984 and characterized Iran as the 
     ``most active state sponsor of terrorism''.
       (12) The Government of the Islamic Republic of Iran has 
     provided weapons, training, funding, and direction to 
     terrorist groups, including Hamas, Hezbollah, and Shiite 
     militias in Iraq that are responsible for the murders of 
     hundreds of United States forces and innocent civilians.
       (13) On July 28, 2011, the Department of the Treasury 
     charged that the Government of Iran had forged a ``secret 
     deal'' with al Qaeda to facilitate the movement of al Qaeda 
     fighters and funding through Iranian territory.
       (14) In October 2011, senior leaders of Iran's Islamic 
     Revolutionary Guard Corps (IRGC) Quds Force were implicated 
     in a terrorist plot to assassinate Saudi Arabia's Ambassador 
     to the United States on United States soil.
       (15) On December 26, 2011, the United Nations General 
     Assembly passed a resolution denouncing the serious human 
     rights abuses occurring in the Islamic Republic of Iran, 
     including torture, cruel and degrading treatment in 
     detention, the targeting of human rights defenders, violence 
     against women, and ``the systematic and serious restrictions 
     on freedom of peaceful assembly'' as well as severe 
     restrictions on the rights to ``freedom of thought, 
     conscience, religion or belief''.
       (16) President Barack Obama, through the P5+1 process, has 
     made repeated efforts to engage the Government of the Islamic 
     Republic of Iran in dialogue about Iran's nuclear program and 
     its international commitments under the Treaty on the Non-
     Proliferation of Nuclear Weapons, done at Washington, London, 
     and Moscow July 1, 1968, and entered into force March 5, 1970 
     (commonly known as the ``Nuclear Non-Proliferation Treaty'').
       (17) Representatives of the P5+1 countries (the United 
     States, France, Germany, the People's Republic of China, the 
     Russian Federation, and the United Kingdom) and 
     representatives of the Islamic Republic of Iran held 
     negotiations on Iran's nuclear program in Istanbul, Turkey on 
     April 14, 2012, and these discussions are set to resume in 
     Baghdad, Iraq on May 23, 2012.
       (18) On March 31, 2010, President Obama stated that the 
     ``consequences of a nuclear-armed Iran are unacceptable''.
       (19) In his State of the Union Address on January 24, 2012, 
     President Obama stated, ``Let there be no doubt: America is 
     determined to prevent Iran from getting a nuclear weapon, and 
     I will take no options off the table to achieve that goal.''
       (20) On March 4, 2012, President Obama stated ``Iran's 
     leaders should understand that I do not have a policy of 
     containment; I have a policy to prevent Iran from obtaining a 
     nuclear weapon''.

[[Page S3986]]

       (21) Secretary of Defense Leon Panetta stated, in December 
     2011, that it was unacceptable for Iran to acquire nuclear 
     weapons, reaffirmed that all options were on the table to 
     thwart Iran's nuclear weapons efforts, and vowed that if the 
     United States gets ``intelligence that they are proceeding 
     with developing a nuclear weapon then we will take whatever 
     steps necessary to stop it''.
       (22) The Department of Defense's January 2012 Strategic 
     Guidance stated that United States defense efforts in the 
     Middle East would be aimed ``to prevent Iran's development of 
     a nuclear weapons capability and counter its destabilizing 
     policies''.
       (23) On April 2, 2012, President Obama stated, ``All the 
     evidence indicates that the Iranians are trying to develop 
     the capacity to develop nuclear weapons. They might decide 
     that, once they have that capacity that they'd hold off right 
     at the edge in order not to incur more sanctions. But, if 
     they've got nuclear weapons-building capacity and they are 
     flouting international resolutions, that creates huge 
     destabilizing effects in the region and will trigger an arms 
     race in the Middle East that is bad for U.S. national 
     security but is also bad for the entire world.''
       (b) Sense of Congress.--Congress--
       (1) reaffirms that the United States Government and the 
     governments of other responsible countries have a vital 
     interest in working together to prevent the Government of 
     Iran from acquiring a nuclear weapons capability;
       (2) warns that time is limited to prevent the Government of 
     the Islamic Republic of Iran from acquiring a nuclear weapons 
     capability;
       (3) urges continued and increasing economic and diplomatic 
     pressure on the Islamic Republic of Iran until the Government 
     of the Islamic Republic of Iran agrees to and implements--
       (A) the full and sustained suspension of all uranium 
     enrichment-related and reprocessing activities and compliance 
     with United Nations Security Council resolutions;
       (B) complete cooperation with the IAEA on all outstanding 
     questions related to the nuclear activities of the Government 
     of the Islamic Republic of Iran, including the implementation 
     of the additional protocol to Iran's Safeguards Agreement 
     with the IAEA; and
       (C) a permanent agreement that verifiably assures that 
     Iran's nuclear program is entirely peaceful;
       (4) expresses the desire that the P5+1 process successfully 
     and swiftly leads to the objectives identified in paragraph 
     (3), but warns that, as President Obama has said, the window 
     for diplomacy is closing;
       (5) expresses support for the universal rights and 
     democratic aspirations of the people of Iran;
       (6) strongly supports United States policy to prevent the 
     Government of the Islamic Republic of Iran from acquiring a 
     nuclear weapons capability;
       (7) rejects any United States policy that would rely on 
     efforts to contain a nuclear weapons-capable Iran; and
       (8) joins the President in ruling out any policy that would 
     rely on containment as an option in response to the Iranian 
     nuclear threat.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed as an authorization for the use of force or a 
     declaration of war.
                                 ______
                                 
  SA 2347. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed by him to the bill S. 3240, to reauthorize agricultural 
programs through 2017, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 998, between lines 7 and 8, insert the following:

     SEC. 12106. GRAZING ON PUBLIC RANGELANDS.

       Section 6 of the Public Rangelands Improvement Act of 1978 
     (43 U.S.C. 1905) is amended--
       (1) by striking the section heading and all that follows 
     through ``(a) For the'' and inserting the following:

     ``SEC. 6. GRAZING FEES.

       ``(a) Establishment of Fees.--
       ``(1) In general.--For the''; and
       (2) in subsection (a), by adding at the end the following:
       ``(2) Grazing on public rangelands.--When establishing fees 
     for grazing private livestock on public rangelands, the 
     Secretary (with respect to land managed by the Bureau of Land 
     Management) and the Secretary of Agriculture (with respect to 
     National Forest System land) shall set the rate at a level 
     that is comparable to the current private grazing land lease 
     rate in the area or region, as determined by the applicable 
     Secretary.''.
                                 ______
                                 
  SA 2348. Mr. NELSON of Nebraska submitted an amendment intended to be 
proposed by him to the bill S. 3240, to reauthorize agricultural 
programs through 2017, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 998, between lines 7 and 8, insert the following:

     SEC. 12106. GRAZING ON NATIONAL FOREST SYSTEM LAND.

       Section 6 of the Public Rangelands Improvement Act of 1978 
     (43 U.S.C. 1905) is amended--
       (1) by striking the section heading and all that follows 
     through ``(a) For the'' and inserting the following:

     ``SEC. 6. GRAZING FEES.

       ``(a) Establishment of Fees.--
       ``(1) In general.--For the''; and
       (2) in subsection (a), by adding at the end the following:
       ``(2) Grazing on national forest system land.--When 
     establishing fees for grazing private livestock on public 
     rangelands that is National Forest System land, the Secretary 
     of Agriculture shall set the rate at a level that is 
     comparable to the current private grazing land lease rate in 
     the area or region, as determined by the Secretary of 
     Agriculture.''.
                                 ______
                                 
  SA 2349. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 140, strike line 1 and insert the following:
       (b) Limitation on Marketing Loan Gains and Loan Deficiency 
     Payments for Peanuts and Other Covered Commodities.--Section 
     1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is 
     amended by striking subsection (d) and inserting the 
     following:
       ``(d) Limitation on Marketing Loan Gains and Loan 
     Deficiency Payments for Peanuts and Other Covered 
     Commodities.--The total amount of marketing loan gains and 
     loan deficiency payments received, directly or indirectly, by 
     a person or legal entity (except a joint venture or general 
     partnership) for any crop year under subtitle B of the 
     Agriculture Reform, Food, and Jobs Act of 2012 (or a 
     successor provision) for 1 or more covered commodities may 
     not exceed $75,000.''.
       (c) Conforming Amendments.--

       On page 143, line 9, strike ``(c)'' and insert ``(d)''.
                                 ______
                                 
  SA 2350. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 58, strike line 14 and all that follows 
     through page 59, line 23 and insert the following:
     As soon as practicable after the date of enactment of this 
     Act, and on each October 1 thereafter, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary--
       (1) to be used to award grants under section 3601(b) of the 
     Consolidated Farm and Rural Development Act--
       (A) $10,250,000 for fiscal year 2013; and
       (B) $13,750,000 for each of fiscal years 2014 through 2017; 
     and
       (2) to carry out the emergency food assistance program 
     established under the Emergency Food Assistance Act of 1983 
     (7 U.S.C. 7501 et seq.)--
       (A) $10,250,000 for fiscal year 2013; and
       (B) $13,750,000 for each of fiscal years 2014 through 2017.
                                 ______
                                 
  SA 2351. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       Beginning on page 34, strike line 4 and all that follows 
     through page 36, line 9.
                                 ______
                                 
  SA 2352. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. _____. STUDY; REPORT.

       (a) Definition of Comptroller.--In this section, the term 
     ``Comptroller'' means the Comptroller of the United States.
       (b) Study.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller shall conduct an 
     independent study of domestic Federal nutrition programs--
       (1) to identify--
       (A) areas of duplication and inefficiencies after April 1, 
     2010; and
       (B) programs that share the same goals, specific functions, 
     or features; and
       (2) determine whether the express goals of the programs are 
     being accomplished in the most efficient way possible.
       (c) Recommendations.--The Comptroller shall make specific 
     recommendations to consolidate or eliminate any duplicative 
     program or significantly inefficient program described in 
     subsection (b).
       (d) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller shall submit to 
     Congress a report that includes--
       (1) the results of the study required under subsection (b); 
     and
       (2) the recommendations described in subsection (c).
                                 ______
                                 
  SA 2353. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

[[Page S3987]]

     SEC. _____. ELIMINATION OF CERTAIN WORKING LANDS CONSERVATION 
                   PROGRAMS.

       (a) Conservation Stewardship Program.--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.) is repealed.
       (b) Environmental Quality Incentives Program.--Chapter 4 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3839aa et seq.) is repealed.
                                 ______
                                 
  SA 2354. Mr. KYL submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle A of title III, add the following:

     SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH KOREA.

       No amounts may be obligated or expended to provide 
     assistance under title II of the Food for Peace Act (7 U.S.C. 
     1721 et seq.) to the Democratic People's Republic of Korea.
                                 ______
                                 
  SA 2355. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 860, between lines 15 and 16, insert the following:

     SEC. 7602. OBJECTIVE AND SCHOLARLY AGRICULTURAL AND FOOD LAW 
                   RESEARCH AND INFORMATION.

       (a) Findings.--Congress finds that--
       (1) the farms, ranches, and forests of the United States 
     are impacted by a complex and rapidly evolving web of 
     international, Federal, State, and local laws (including 
     regulations);
       (2) objective, scholarly, and authoritative agricultural 
     and food law research and information helps the farm, ranch, 
     and forestry community contribute to the strength of the 
     United States through improved conservation, environmental 
     protection, job creation, economic development, renewable 
     energy production, outdoor recreational opportunities, and 
     increased local and regional supplies of food, fiber, and 
     fuel; and
       (3) the vast agricultural community of the United States, 
     including farmers, ranchers, foresters, attorneys, 
     policymakers, and extension personnel, need access to 
     agricultural and food law research and information provided 
     by an objective, scholarly, and neutral source.
       (b) Partnerships.--The Secretary, acting through the 
     National Agricultural Library, shall support the 
     dissemination of objective, scholarly, and authoritative 
     agricultural and food law research and information by 
     entering into partnerships with institutions of higher 
     education that have expertise in agricultural and food law 
     research and information.
       (c) Restriction.--For each fiscal year, the Secretary shall 
     use not more than $1,000,000 of the amounts made available to 
     the National Agricultural Library to carry out this section.
                                 ______
                                 
  SA 2356. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1009, after line 11, add the following:

     SEC. 12207. EXEMPTION OF RURAL WATER PROJECTS FROM CERTAIN 
                   RENTAL FEES.

       Section 504(g) of the Federal Land Policy and Management 
     Act of 1976 (43 U.S.C. 1764(g)) is amended in the eighth 
     sentence by inserting ``and for any rural water project that 
     is federally financed (including a project that receives 
     Federal funds under the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.) or from a State 
     drinking water treatment revolving loan fund established 
     under section 1452 of the Safe Drinking Water Act (42 U.S.C. 
     300j 12))'' after ``such facilities''.
                                 ______
                                 
  SA 2357. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of title XII, add the following:

   Subtitle D--Congressional Review of Agency Rulemaking in Cases of 
              Negative Effect on Access to Affordable Food

     SEC. 12301. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING IN 
                   CASES OF NEGATIVE EFFECT ON ACCESS TO 
                   AFFORDABLE FOOD.

       Effective beginning on the date of enactment of this Act, 
     if the Secretary determines that a rule promulgated by any 
     Federal agency could have a negative effect on access by any 
     individual to affordable food, the procedures described in 
     this subtitle shall take effect.

     SEC. 12302. CONGRESSIONAL REVIEW.

       (a)(1)(A) Before a rule may take effect, the Federal agency 
     promulgating such rule shall submit to each House of the 
     Congress and to the Comptroller General a report containing--
       (i) a copy of the rule;
       (ii) a concise general statement relating to the rule;
       (iii) a classification of the rule as a major or nonmajor 
     rule, including an explanation of the classification 
     specifically addressing each criteria for a major rule 
     contained within subparagraphs (A) through (C) of section 
     12305(2);
       (iv) a list of any other related regulatory actions 
     intended to implement the same statutory provision or 
     regulatory objective as well as the individual and aggregate 
     economic effects of those actions; and
       (v) the proposed effective date of the rule.
       (B) On the date of the submission of the report under 
     subparagraph (A), the Federal agency promulgating the rule 
     shall submit to the Comptroller General and make available to 
     each House of Congress--
       (i) a complete copy of the cost-benefit analysis of the 
     rule, if any, including an analysis of any jobs added or 
     lost, differentiating between public and private sector jobs;
       (ii) the agency's actions pursuant to sections 603, 604, 
     605, 607, and 609 of title 5, United States Code;
       (iii) the agency's actions pursuant to sections 202, 203, 
     204, and 205 of the Unfunded Mandates Reform Act of 1995; and
       (iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders.
       (C) Upon receipt of a report submitted under subparagraph 
     (A), each House shall provide copies of the report to the 
     chairman and ranking member of each standing committee with 
     jurisdiction under the rules of the House of Representatives 
     or the Senate to report a bill to amend the provision of law 
     under which the rule is issued.
       (2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction by the end 
     of 15 calendar days after the submission or publication date 
     as provided in section 12303(b)(2). The report of the 
     Comptroller General shall include an assessment of the 
     agency's compliance with procedural steps required by 
     paragraph (1)(B).
       (B) Federal agencies shall cooperate with the Comptroller 
     General by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       (3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect upon enactment of a joint 
     resolution of approval described in section 12303 or as 
     provided for in the rule following enactment of a joint 
     resolution of approval described in section 12303, whichever 
     is later.
       (4) A nonmajor rule shall take effect as provided by 
     section 12304 after submission to Congress under paragraph 
     (1).
       (5) If a joint resolution of approval relating to a major 
     rule is not enacted within the period provided in subsection 
     (b)(2), then a joint resolution of approval relating to the 
     same rule may not be considered under this subtitle in the 
     same Congress by either the House of Representatives or the 
     Senate.
       (b)(1) A major rule shall not take effect unless the 
     Congress enacts a joint resolution of approval described 
     under section 12303.
       (2) If a joint resolution described in subsection (a) is 
     not enacted into law by the end of 70 session days or 
     legislative days, as applicable, beginning on the date on 
     which the report referred to in subsection (a)(1)(A) is 
     received by Congress (excluding days either House of Congress 
     is adjourned for more than 3 days during a session of 
     Congress), then the rule described in that resolution shall 
     be deemed not to be approved and such rule shall not take 
     effect.
       (c)(1) Notwithstanding any other provision of this section 
     (except subject to paragraph (3)), a major rule may take 
     effect for one 90-calendar-day period if the President makes 
     a determination under paragraph (2) and submits written 
     notice of such determination to the Congress.
       (2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the major rule should take 
     effect because such rule is--
       (A) necessary because of an imminent threat to health or 
     safety or other emergency;
       (B) necessary for the enforcement of criminal laws;
       (C) necessary for national security; or
       (D) issued pursuant to any statute implementing an 
     international trade agreement.
       (3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 12303.
       (d)(1) In addition to the opportunity for review otherwise 
     provided under this subtitle, in the case of any rule for 
     which a report was submitted in accordance with subsection 
     (a)(1)(A) during the period beginning on the date occurring--
       (A) in the case of the Senate, 60 session days, or
       (B) in the case of the House of Representatives, 60 
     legislative days,
     before the date the Congress is scheduled to adjourn a 
     session of Congress through the date on which the same or 
     succeeding Congress first convenes its next session, sections 
     12303 and 12304 shall apply to such rule in the succeeding 
     session of Congress.
       (2)(A) In applying sections 12303 and 12304 for purposes of 
     such additional review, a rule described under paragraph (1) 
     shall be treated as though--
       (i) such rule were published in the Federal Register on--
       (I) in the case of the Senate, the 15th session day, or

[[Page S3988]]

       (II) in the case of the House of Representatives, the 15th 
     legislative day,
     after the succeeding session of Congress first convenes; and
       (ii) a report on such rule were submitted to Congress under 
     subsection (a)(1) on such date.
       (B) Nothing in this paragraph shall be construed to affect 
     the requirement under subsection (a)(1) that a report shall 
     be submitted to Congress before a rule can take effect.
       (3) A rule described under paragraph (1) shall take effect 
     as otherwise provided by law (including other subsections of 
     this section).

     SEC. 12303. CONGRESSIONAL APPROVAL PROCEDURE FOR MAJOR RULES.

       (a)(1) For purposes of this section, the term ``joint 
     resolution'' means only a joint resolution addressing a 
     report classifying a rule as major pursuant to section 
     12302(a)(1)(A)(iii) that--
       (A) bears no preamble;
       (B) bears the following title (with blanks filled as 
     appropriate): ``Approving the rule submitted by ___ relating 
     to ___.'';
       (C) includes after its resolving clause only the following 
     (with blanks filled as appropriate): ``That Congress approves 
     the rule submitted by ___ relating to ___.''; and
       (D) is introduced pursuant to paragraph (2).
       (2) After a House of Congress receives a report classifying 
     a rule as major pursuant to section 12302(a)(1)(A)(iii), the 
     majority leader of that House (or his or her respective 
     designee) shall introduce (by request, if appropriate) a 
     joint resolution described in paragraph (1)--
       (A) in the case of the House of Representatives, within 
     three legislative days; and
       (B) in the case of the Senate, within three session days.
       (3) A joint resolution described in paragraph (1) shall not 
     be subject to amendment at any stage of proceeding.
       (b) A joint resolution described in subsection (a) shall be 
     referred in each House of Congress to the committees having 
     jurisdiction over the provision of law under which the rule 
     is issued.
       (c) In the Senate, if the committee or committees to which 
     a joint resolution described in subsection (a) has been 
     referred have not reported it at the end of 15 session days 
     after its introduction, such committee or committees shall be 
     automatically discharged from further consideration of the 
     resolution and it shall be placed on the calendar. A vote on 
     final passage of the resolution shall be taken on or before 
     the close of the 15th session day after the resolution is 
     reported by the committee or committees to which it was 
     referred, or after such committee or committees have been 
     discharged from further consideration of the resolution.
       (d)(1) In the Senate, when the committee or committees to 
     which a joint resolution is referred have reported, or when a 
     committee or committees are discharged (under subsection (c)) 
     from further consideration of a joint resolution described in 
     subsection (a), it is at any time thereafter in order (even 
     though a previous motion to the same effect has been 
     disagreed to) for a motion to proceed to the consideration of 
     the joint resolution, and all points of order against the 
     joint resolution (and against consideration of the joint 
     resolution) are waived. The motion is not subject to 
     amendment, or to a motion to postpone, or to a motion to 
     proceed to the consideration of other business. A motion to 
     reconsider the vote by which the motion is agreed to or 
     disagreed to shall not be in order. If a motion to proceed to 
     the consideration of the joint resolution is agreed to, the 
     joint resolution shall remain the unfinished business of the 
     Senate until disposed of.
       (2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 2 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       (3) In the Senate, immediately following the conclusion of 
     the debate on a joint resolution described in subsection (a), 
     and a single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       (4) Appeals from the decisions of the Chair relating to the 
     application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       (e) In the House of Representatives, if any committee to 
     which a joint resolution described in subsection (a) has been 
     referred has not reported it to the House at the end of 15 
     legislative days after its introduction, such committee shall 
     be discharged from further consideration of the joint 
     resolution, and it shall be placed on the appropriate 
     calendar. On the second and fourth Thursdays of each month it 
     shall be in order at any time for the Speaker to recognize a 
     Member who favors passage of a joint resolution that has 
     appeared on the calendar for at least 5 legislative days to 
     call up that joint resolution for immediate consideration in 
     the House without intervention of any point of order. When so 
     called up a joint resolution shall be considered as read and 
     shall be debatable for 1 hour equally divided and controlled 
     by the proponent and an opponent, and the previous question 
     shall be considered as ordered to its passage without 
     intervening motion. It shall not be in order to reconsider 
     the vote on passage. If a vote on final passage of the joint 
     resolution has not been taken by the third Thursday on which 
     the Speaker may recognize a Member under this subsection, 
     such vote shall be taken on that day.
       (f)(1) If, before passing a joint resolution described in 
     subsection (a), one House receives from the other a joint 
     resolution having the same text, then--
       (A) the joint resolution of the other House shall not be 
     referred to a committee; and
       (B) the procedure in the receiving House shall be the same 
     as if no joint resolution had been received from the other 
     House until the vote on passage, when the joint resolution 
     received from the other House shall supplant the joint 
     resolution of the receiving House.
       (2) This subsection shall not apply to the House of 
     Representatives if the joint resolution received from the 
     Senate is a revenue measure.
       (g) If either House has not taken a vote on final passage 
     of the joint resolution by the last day of the period 
     described in section 12302(b)(2), then such vote shall be 
     taken on that day.
       (h) This section and section 12304 are enacted by 
     Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such is 
     deemed to be part of the rules of each House, respectively, 
     but applicable only with respect to the procedure to be 
     followed in that House in the case of a joint resolution 
     described in subsection (a) and superseding other rules only 
     where explicitly so; and
       (2) with full recognition of the Constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner 
     and to the same extent as in the case of any other rule of 
     that House.

     SEC. 12304. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR NONMAJOR 
                   RULES.

       (a) For purposes of this section, the term ``joint 
     resolution'' means only a joint resolution introduced in the 
     period beginning on the date on which the report referred to 
     in section 12302(a)(1)(A) is received by Congress and ending 
     60 days thereafter (excluding days either House of Congress 
     is adjourned for more than 3 days during a session of 
     Congress), the matter after the resolving clause of which is 
     as follows: ``That Congress disapproves the nonmajor rule 
     submitted by the ___ relating to ___, and such rule shall 
     have no force or effect.'' (The blank spaces being 
     appropriately filled in).
       (b)(1) A joint resolution described in subsection (a) shall 
     be referred to the committees in each House of Congress with 
     jurisdiction.
       (2) For purposes of this section, the term submission or 
     publication date means the later of the date on which--
       (A) the Congress receives the report submitted under 
     section 12302(a)(1); or
       (B) the nonmajor rule is published in the Federal Register, 
     if so published.
       (c) In the Senate, if the committee to which is referred a 
     joint resolution described in subsection (a) has not reported 
     such joint resolution (or an identical joint resolution) at 
     the end of 15 session days after the date of introduction of 
     the joint resolution, such committee may be discharged from 
     further consideration of such joint resolution upon a 
     petition supported in writing by 30 Members of the Senate, 
     and such joint resolution shall be placed on the calendar.
       (d)(1) In the Senate, when the committee to which a joint 
     resolution is referred has reported, or when a committee is 
     discharged (under subsection (c)) from further consideration 
     of a joint resolution described in subsection (a), it is at 
     any time thereafter in order (even though a previous motion 
     to the same effect has been disagreed to) for a motion to 
     proceed to the consideration of the joint resolution, and all 
     points of order against the joint resolution (and against 
     consideration of the joint resolution) are waived. The motion 
     is not subject to amendment, or to a motion to postpone, or 
     to a motion to proceed to the consideration of other 
     business. A motion to reconsider the vote by which the motion 
     is agreed to or disagreed to shall not be in order. If a 
     motion to proceed to the consideration of the joint 
     resolution is agreed to, the joint resolution shall remain 
     the unfinished business of the Senate until disposed of.
       (2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       (3) In the Senate, immediately following the conclusion of 
     the debate on a joint resolution described in subsection (a), 
     and a single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       (4) Appeals from the decisions of the Chair relating to the 
     application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.

[[Page S3989]]

       (e) In the Senate the procedure specified in subsection (c) 
     or (d) shall not apply to the consideration of a joint 
     resolution respecting a nonmajor rule--
       (1) after the expiration of the 60 session days beginning 
     with the applicable submission or publication date, or
       (2) if the report under section 12302(a)(1)(A) was 
     submitted during the period referred to in section 
     12302(d)(1), after the expiration of the 60 session days 
     beginning on the 15th session day after the succeeding 
     session of Congress first convenes.
       (f) If, before the passage by one House of a joint 
     resolution of that House described in subsection (a), that 
     House receives from the other House a joint resolution 
     described in subsection (a), then the following procedures 
     shall apply:
       (1) The joint resolution of the other House shall not be 
     referred to a committee.
       (2) With respect to a joint resolution described in 
     subsection (a) of the House receiving the joint resolution--
       (A) the procedure in that House shall be the same as if no 
     joint resolution had been received from the other House; but
       (B) the vote on final passage shall be on the joint 
     resolution of the other House.

     SEC. 12305. DEFINITIONS.

       In this subtitle:
       (1) The term ``Federal agency'' means any agency as that 
     term is defined in section 551(1) of title 5, United States 
     Code.
       (2) The term ``major rule'' means any rule, including an 
     interim final rule, that the Administrator of the Office of 
     Information and Regulatory Affairs of the Office of 
     Management and Budget finds has resulted in or is likely to 
     result in--
       (A) an annual effect on the economy of $100,000,000 or 
     more;
       (B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions; or
       (C) significant adverse effects on competition, employment, 
     investment, productivity, innovation, or on the ability of 
     United States-based enterprises to compete with foreign-based 
     enterprises in domestic and export markets.
       (3) The term ``nonmajor rule'' means any rule that is not a 
     major rule.
       (4) The term ``rule'' has the meaning given such term in 
     section 551 of title 5, United States Code, except that such 
     term does not include--
       (A) any rule of particular applicability, including a rule 
     that approves or prescribes for the future rates, wages, 
     prices, services, or allowances therefore, corporate or 
     financial structures, reorganizations, mergers, or 
     acquisitions thereof, or accounting practices or disclosures 
     bearing on any of the foregoing;
       (B) any rule relating to agency management or personnel; or
       (C) any rule of agency organization, procedure, or practice 
     that does not substantially affect the rights or obligations 
     of non-agency parties.

     SEC. 12306. JUDICIAL REVIEW.

       (a) No determination, finding, action, or omission under 
     this subtitle shall be subject to judicial review.
       (b) Notwithstanding subsection (a), a court may determine 
     whether a Federal agency has completed the necessary 
     requirements under this subtitle for a rule to take effect.
       (c) The enactment of a joint resolution of approval under 
     section 12303 shall not be interpreted to serve as a grant or 
     modification of statutory authority by Congress for the 
     promulgation of a rule, shall not extinguish or affect any 
     claim, whether substantive or procedural, against any alleged 
     defect in a rule, and shall not form part of the record 
     before the court in any judicial proceeding concerning a rule 
     except for purposes of determining whether or not the rule is 
     in effect.

     SEC. 12307. EXEMPTION FOR MONETARY POLICY.

       Nothing in this subtitle shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.

     SEC. 12308. EFFECTIVE DATE OF CERTAIN RULES.

       Notwithstanding section 12302--
       (1) any rule that establishes, modifies, opens, closes, or 
     conducts a regulatory program for a commercial, recreational, 
     or subsistence activity related to hunting, fishing, or 
     camping; or
       (2) any rule other than a major rule which an agency for 
     good cause finds (and incorporates the finding and a brief 
     statement of reasons therefore in the rule issued) that 
     notice and public procedure thereon are impracticable, 
     unnecessary, or contrary to the public interest,
     shall take effect at such time as the Federal agency 
     promulgating the rule determines.
                                 ______
                                 
  SA 2358. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1009, after line 11, add the following:

     SEC. 12207. ATTORNEY FEE PAYMENT TRACKING.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall--
       (1) in cooperation with the Attorney General and the 
     Secretary of Treasury, develop a system to track and report 
     attorney fee payment information in accordance with 
     subsections (b) and (c); and
       (2) submit to the Committee on Agriculture and the 
     Committee on the Judiciary of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry and 
     the Committee on the Judiciary of the Senate a report 
     describing the status of the implementation of the system.
       (b) Requirements.--The system described in subsection 
     (a)(1) shall track for each case or administrative 
     adjudication in which the Secretary or Department of 
     Agriculture is a party--
       (1) the case name;
       (2) the party name;
       (3) the amount of the claim;
       (4) the date and amount of the award or payment of attorney 
     fees; and
       (5) the law (including regulations) under which the case 
     was brought.
       (c) Annual Reports.--Each year, the Secretary shall submit 
     to the Committees described in subsection (a)(2) a report 
     containing the information described in subsection (b).
                                 ______
                                 
  SA 2359. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

 TITLE __--FARM, RANCH, AND FOREST LAND PRIVATE PROPERTY PROTECTION ACT

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Farm, Ranch, and Forest 
     Land Private Property Protection Act''.

     SEC. _02. FINDINGS.

       (a) Findings.--Congress finds the following:
       (1) The founders realized the fundamental importance of 
     property rights when they codified the Takings Clause of the 
     Fifth Amendment to the Constitution, which requires that 
     private property shall not be taken `for public use, without 
     just compensation.
       (2) Rural lands are unique in that they are not 
     traditionally considered high tax revenue-generating 
     properties for State and local governments. In addition, 
     farm, ranch, and forest land owners need to have long-term 
     certainty regarding their property rights in order to make 
     the investment decisions to commit land to these uses.
       (3) Ownership rights in rural land are fundamental building 
     blocks for our Nation's agriculture industry, which continues 
     to be one of the most important economic sectors of our 
     economy.
       (4) In the wake of the Supreme Court's decision in Kelo v. 
     City of New London, abuse of eminent domain is a threat to 
     the property rights of all private property owners, including 
     rural land owners.
       (b) Sense of Congress.--It is the sense of Congress that 
     the use of eminent domain for the purpose of economic 
     development is a threat to agricultural and other property in 
     rural America and that the Congress should protect the 
     property rights of Americans, including those who reside in 
     rural areas. Property rights are central to liberty in this 
     country and to our economy. The use of eminent domain to take 
     farmland and other rural property for economic development 
     threatens liberty, rural economies, and the economy of the 
     United States. The taking of farmland and rural property will 
     have a direct impact on existing irrigation and reclamation 
     projects. Furthermore, the use of eminent domain to take 
     rural private property for private commercial uses will force 
     increasing numbers of activities from private property onto 
     this Nation's public lands, including its National forests, 
     National parks and wildlife refuges. This increase can 
     overburden the infrastructure of these lands, reducing the 
     enjoyment of such lands for all citizens. Americans should 
     not have to fear the government's taking their homes, farms, 
     or businesses to give to other persons. Governments should 
     not abuse the power of eminent domain to force rural property 
     owners from their land in order to develop rural land into 
     industrial and commercial property. Congress has a duty to 
     protect the property rights of rural Americans in the face of 
     eminent domain abuse.

     SEC. _03. PROHIBITION ON EMINENT DOMAIN ABUSE BY STATES TO 
                   CONFISCATE FARM, RANCH, OR FOREST LAND.

       (a) In General.--No State or political subdivision of a 
     State shall exercise its power of eminent domain over farm, 
     ranch, or forest land, or allow the exercise of such power by 
     any person or entity to which such power has been delegated, 
     over property to be used for economic development or over 
     property that is used for economic development within 7 years 
     after that exercise, if that State or political subdivision 
     receives Federal economic development funds during any fiscal 
     year in which the property is so used or intended to be used.
       (b) Ineligibility for Federal Funds.--A violation of 
     subsection (a) by a State or political subdivision shall 
     render such State or political subdivision ineligible for any 
     Federal economic development funds for a period of 2 fiscal 
     years following a final judgment on the merits by a court of 
     competent jurisdiction that such subsection has been 
     violated, and any Federal agency charged with distributing 
     those funds shall withhold them for such 2-year period, and 
     any such funds distributed to such State or political 
     subdivision shall be returned or reimbursed

[[Page S3990]]

     by such State or political subdivision to the appropriate 
     Federal agency or authority of the Federal Government, or 
     component thereof.
       (c) Opportunity To Cure Violation.--A State or political 
     subdivision shall not be ineligible for any Federal economic 
     development funds under subsection (b) if such State or 
     political subdivision returns all real property the taking of 
     which was found by a court of competent jurisdiction to have 
     constituted a violation of subsection (a) and replaces any 
     other property destroyed and repairs any other property 
     damaged as a result of such violation. In addition, the State 
     must pay applicable penalties and interest to reattain 
     eligibility.

     SEC. _04. PROHIBITION ON EMINENT DOMAIN ABUSE BY THE FEDERAL 
                   GOVERNMENT TO CONFISCATE FARM, RANCH, OR FOREST 
                   LAND.

       The Federal Government or any authority of the Federal 
     Government shall not exercise its power of eminent domain 
     over farm, ranch, or forest land to be used for economic 
     development.

     SEC. _05. PRIVATE RIGHT OF ACTION.

       (a) Cause of Action.--Any (1) owner of private farm, ranch, 
     or forest land whose property is subject to eminent domain 
     who suffers injury as a result of a violation of any 
     provision of this title with respect to that property, or (2) 
     any tenant of property that is subject to eminent domain who 
     suffers injury as a result of a violation of any provision of 
     this title with respect to that property, may bring an action 
     to enforce any provision of this title in the appropriate 
     Federal or State court. A State shall not be immune under the 
     11th Amendment to the Constitution of the United States from 
     any such action in a Federal or State court of competent 
     jurisdiction. In such action, the defendant has the burden to 
     show by clear and convincing evidence that the taking is not 
     for economic development. Any such property owner or tenant 
     may also seek an appropriate relief through a preliminary 
     injunction or a temporary restraining order.
       (b) Limitation on Bringing Action.--An action brought by a 
     property owner or tenant under this title may be brought if 
     the property is used for economic development following the 
     conclusion of any condemnation proceedings condemning the 
     property of such property owner or tenant, but shall not be 
     brought later than seven years following the conclusion of 
     any such proceedings.
       (c) Attorneys' Fee and Other Costs.--In any action or 
     proceeding under this title, the court shall allow a 
     prevailing plaintiff a reasonable attorneys' fee as part of 
     the costs, and include expert fees as part of the attorneys' 
     fee.

     SEC. _06. REPORTING OF VIOLATIONS TO ATTORNEY GENERAL OR THE 
                   SECRETARY OF AGRICULTURE.

       (a) Submission of Report to Attorney General.--Any (1) 
     owner of private farm, ranch, or forest land whose property 
     is subject to eminent domain who suffers injury as a result 
     of a violation of any provision of this title with respect to 
     that property, or (2) any tenant of farm, ranch, or forest 
     land that is subject to eminent domain who suffers injury as 
     a result of a violation of any provision of this title with 
     respect to that property, may report a violation by the 
     Federal Government, any authority of the Federal Government, 
     State, or political subdivision of a State to the Attorney 
     General or the Secretary of Agriculture.
       (b) Investigation by Attorney General.--Upon receiving a 
     report of an alleged violation, the Secretary of Agriculture 
     shall transmit the report to the Attorney General. Upon 
     receiving a report of an alleged violation from either a 
     property owner, tenant, or the Secretary of Agriculture, the 
     Attorney General shall conduct an investigation, in 
     cooperation with the Secretary of Agriculture, to determine 
     whether a violation exists.
       (c) Notification of Violation.--If the Attorney General 
     concludes that a violation does exist, then the Attorney 
     General shall notify the Federal Government, authority of the 
     Federal Government, State, or political subdivision of a 
     State that the Attorney General has determined that it is in 
     violation of the title. The notification shall further 
     provide that the Federal Government, State, or political 
     subdivision of a State has 90 days from the date of the 
     notification to demonstrate to the Attorney General either 
     that (1) it is not in violation of the title or (2) that it 
     has cured its violation by returning all real property the 
     taking of which the Attorney General finds to have 
     constituted a violation of the title and replacing any other 
     property destroyed and repairing any other property damaged 
     as a result of such violation.
       (d) Attorney General's Bringing of Action to Enforce 
     Title.--If, at the end of the 90-day period described in 
     subsection (c), the Attorney General determines that the 
     Federal Government, authority of the Federal Government, 
     State, or political subdivision of a State is still violating 
     the title or has not cured its violation as described in 
     subsection (c), then the Attorney General will bring an 
     action to enforce the title unless the property owner or 
     tenant who reported the violation has already brought an 
     action to enforce the title. In such a case, the Attorney 
     General shall intervene if it determines that intervention is 
     necessary in order to enforce the title. The Attorney General 
     may file its lawsuit to enforce the title in the appropriate 
     Federal or State court. A State shall not be immune under the 
     11th Amendment to the Constitution of the United States from 
     any such action in a Federal or State court of competent 
     jurisdiction. In such action, the defendant has the burden to 
     show by clear and convincing evidence that the taking is not 
     for economic development. The Attorney General may seek any 
     appropriate relief through a preliminary injunction or a 
     temporary restraining order.
       (e) Limitation on Bringing Action.--An action brought by 
     the Attorney General under this title may be brought if the 
     property is used for economic development following the 
     conclusion of any condemnation proceedings condemning the 
     property of an owner or tenant who reports a violation of the 
     title to the Attorney General, but shall not be brought later 
     than seven years following the conclusion of any such 
     proceedings.
       (f) Attorneys' Fee and Other Costs.--In any action or 
     proceeding under this title brought by the Attorney General, 
     the court shall, if the Attorney General is a prevailing 
     plaintiff, award the Attorney General a reasonable attorneys' 
     fee as part of the costs, and include expert fees as part of 
     the attorneys' fee.

     SEC. _07. NOTIFICATION BY ATTORNEY GENERAL.

       (a) Notification to States and Political Subdivisions.--
       (1) Not later than 30 days after the enactment of this 
     title, the Attorney General shall provide to the chief 
     executive officer of each State the text of this title and a 
     description of the rights of property owners and tenants 
     under this title.
       (2) Not later than 120 days after the enactment of this 
     title, the Attorney General shall compile a list of the 
     Federal laws under which Federal economic development funds 
     are distributed. The Attorney General shall compile annual 
     revisions of such list as necessary. Such list and any 
     successive revisions of such list shall be communicated by 
     the Attorney General to the chief executive officer of each 
     State and also made available on the Internet website 
     maintained by the United States Department of Justice for use 
     by the public and by the authorities in each State and 
     political subdivisions of each State empowered to take 
     private property and convert it to public use subject to just 
     compensation for the taking.
       (b) Notification to Property Owners and Tenants.--Not later 
     than 30 days after the enactment of this title, the Attorney 
     General shall publish in the Federal Register and make 
     available on the Internet website maintained by the United 
     States Department of Justice a notice containing the text of 
     this title and a description of the rights of property owners 
     and tenants under this title.

     SEC. _08. NOTIFICATION BY SECRETARY OF AGRICULTURE.

       (a) Notification to Property Owners and Tenants.--Not later 
     than 60 days after the enactment of this title, the Secretary 
     of Agriculture shall publish in the Federal Register and make 
     available on the Internet website maintained by the United 
     States Department of Agriculture a notice containing the text 
     of this title and a description of the rights of property 
     owners and tenants under this title.

     SEC. _09. REPORTS.

       (a) By Attorney General.--Not later than 1 year after the 
     date of enactment of this title, and every subsequent year 
     thereafter, the Attorney General shall transmit a report 
     identifying States or political subdivisions that have used 
     eminent domain in violation of this title to the Chairman and 
     Ranking Member of the Committee on the Judiciary of the House 
     of Representatives, to the Chairman and Ranking Member of the 
     Committee on the Judiciary of the Senate, to the Chairman and 
     Ranking Member of the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate, and to the Chairman and Ranking 
     Member of the Committee of Agriculture of the House. The 
     report shall--
       (1) be developed in cooperation with the Secretary of 
     Agriculture;
       (2) identify all private rights of action brought as a 
     result of a State's or political subdivision's violation of 
     this title;
       (3) identify all violations reported by property owners and 
     tenants under section 5(c) of this title;
       (4) identify the percentage of minority residents compared 
     to the surrounding nonminority residents and the median 
     incomes of those impacted by a violation of this title;
       (5) identify all lawsuits brought by the Attorney General 
     under section 5(d) of this title;
       (6) identify all States or political subdivisions that have 
     lost Federal economic development funds as a result of a 
     violation of this title, as well as describe the type and 
     amount of Federal economic development funds lost in each 
     State or political subdivision and the Agency that is 
     responsible for withholding such funds; and
       (7) discuss all instances in which a State or political 
     subdivision has cured a violation as described in section 
     2(c) of this title.
       (b) Duty of States.--Each State and local authority that is 
     subject to a private right of action under this title shall 
     have the duty to report to the Attorney General such 
     information with respect to such State and local authorities 
     as the Attorney General needs to make the report required 
     under subsection (a).

     SEC. _10. DEFINITIONS.

       In this title the following definitions apply:
       (1) Economic development.--

[[Page S3991]]

       (A) The term ``economic development'' means taking private 
     property, without the consent of the owner, and conveying or 
     leasing such property from one private person or entity to 
     another private person or entity for commercial enterprise 
     carried on for profit, or to increase tax revenue, tax base, 
     employment, or general economic health, except that such term 
     shall not include--
       (i) conveying private property--

       (I) to public ownership, such as for a road, hospital, 
     airport, or military base;
       (II) to an entity, such as a common carrier, that makes the 
     property available to the general public as of right, such as 
     a railroad or public facility;
       (III) for use as a road or other right of way or means, 
     open to the public for transportation, whether free or by 
     toll; and
       (IV) for use as an aqueduct, flood control facility, 
     pipeline, or similar use;

       (ii) removing harmful uses of land provided such uses 
     constitute an immediate threat to public health and safety;
       (iii) leasing property to a private person or entity that 
     occupies an incidental part of public property or a public 
     facility, such as a retail establishment on the ground floor 
     of a public building;
       (iv) acquiring abandoned property;
       (v) clearing defective chains of title;
       (vi) taking private property for use by a public utility, 
     including a utility providing electric, natural gas, 
     telecommunications, water, and wastewater services, either 
     directly to the public or indirectly through provision of 
     such services at the wholesale level for resale to the 
     public; and
       (vii) redeveloping of a brownfield site as defined in the 
     Small Business Liability Relief and Brownfields 
     Revitalization Act (42 U.S.C. 9601(39)).
       (B) Abandoned property.--In subparagraph (A)(iv), the term 
     ``abandoned property'' means property --
       (i) that has been substantially unoccupied or unused for 
     any commercial, agricultural, residential, or conservation-
     oriented purpose for at least 1 year by a person with a legal 
     or equitable right to occupy the property;
       (ii) that has not been maintained; and
       (iii) for which property taxes have not been paid for at 
     least 2 years.
       (2) Federal economic development funds.--The term ``Federal 
     economic development funds'' means any Federal funds 
     distributed to or through States or political subdivisions of 
     States under Federal laws designed to improve or increase the 
     size of the economies of States or political subdivisions of 
     States.
       (3) State.--The term ``State'' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, or any other territory or possession of the United 
     States.

     SEC. _11. SEVERABILITY AND EFFECTIVE DATE.

       (a) Severability.--The provisions of this title are 
     severable. If any provision of this title, or any application 
     thereof, is found unconstitutional, that finding shall not 
     affect any provision or application of the title not so 
     adjudicated.
       (b) Effective Date.--This title shall take effect upon the 
     first day of the first fiscal year that begins after the date 
     of the enactment of this title, but shall not apply to any 
     project for which condemnation proceedings have been 
     initiated prior to the date of enactment.

     SEC. _12. SENSE OF CONGRESS.

       It is the policy of the United States to encourage, 
     support, and promote the private ownership of property and to 
     ensure that the constitutional and other legal rights of 
     private property owners are protected by the Federal 
     Government.

     SEC. _13. BROAD CONSTRUCTION.

       This title shall be construed in favor of a broad 
     protection of private property rights, to the maximum extent 
     permitted by the terms of this title and the Constitution.

     SEC. _14. LIMITATION ON STATUTORY CONSTRUCTION.

       Nothing in this title may be construed to supersede, limit, 
     or otherwise affect any provision of the Uniform Relocation 
     Assistance and Real Property Acquisition Policies Act of 1970 
     (42 U.S.C. 4601 et seq.).

     SEC. _15. REPORT BY FEDERAL AGENCIES ON REGULATIONS AND 
                   PROCEDURES RELATING TO EMINENT DOMAIN.

       Not later than 180 days after the date of the enactment of 
     this title, the head of each Executive department and agency 
     shall review all rules, regulations, and procedures and 
     report to the Attorney General on the activities of that 
     department or agency to bring its rules, regulations and 
     procedures into compliance with this title.

     SEC. _16. DISPROPORTIONATE IMPACT ON MINORITIES.

       If the court determines that a violation of this title has 
     occurred, and that the violation has a disproportionately 
     high impact on the poor or minorities, the Attorney General 
     shall use reasonable efforts to locate and inform former 
     owners and tenants of the violation and any remedies they may 
     have.
                                 ______
                                 
  SA 2360. Mr. BOOZMAN (for himself and Mr. Johanns) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike subsection (a) of section 4012 and, at the 
     appropriate place in title IV, insert the following:

     SEC. 4___. QUALITY CONTROL BONUSES.

       (a) In General.--Section 16 of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2025) is amended by striking subsection 
     (d).
       (b) Conforming Amendments.--Section 16 of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2025) is amended--
       (1) in subsection (c)--
       (A) in the first sentence of paragraph (4), by striking 
     ``payment error rate'' and all that follows through 
     ``subsection (d)'' and inserting ``liability amount or new 
     investment amount under paragraph (1) or payment error 
     rate''; and
       (B) in the first sentence of paragraph (5), by striking 
     ``payment error rate'' and all that follows through 
     ``subsection (d)'' and inserting ``liability amount or new 
     investment amount under paragraph (1) or payment error 
     rate''; and
       (2) in subsection (i)(1), by striking ``subsection (d)(1)'' 
     and inserting ``subsection (c)(2)''.

     SEC. 4___. EMERGENCY FOOD ASSISTANCE.

       (a) Purchase of Commodities.--Section 27(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
       (1) in paragraph (1), by striking ``2008 through 2012'' and 
     inserting ``2012 through 2017''; and
       (2) in paragraph (2)--
       (A) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) for fiscal year 2012, $260,000,000;
       ``(B) for fiscal year 2013, the dollar amount of 
     commodities specified in subparagraph (A) adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(u)(4) between June 30, 2011 and June 30, 
     2012, and subsequently increased by $43,000,000; and''; and
       (B) in subparagraph (C)--
       (i) by striking ``2010 through 2012, the dollar amount of 
     commodities specified in'' and inserting ``2014 through 2017, 
     the total amount of commodities under''; and
       (ii) by striking ``2008'' and inserting ``2012''.
                                 ______
                                 
  SA 2361. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 652, between lines 3 and 4, insert the following:
       ``(c) Blender Pumps.--None of funds made available for 
     rural economic area partnership zones may be used to promote 
     the construction or use of blender pumps.
                                 ______
                                 
  SA 2362. Mr. BROWN of Ohio (for himself, Mr. Nelson of Nebraska, Mr. 
Franken, Mr. Sanders, Mr. Bingaman, Mr. Johnson of South Dakota, Mr. 
Harkin, Mr. Leahy, Mr. Tester, Mr. Merkley, and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 574, between lines 11 and 12, insert the following:
       ``(C) Mandatory funding.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall use to carry out this 
     subsection $10,000,000 for each of fiscal years 2013 through 
     2017, to remain available until expended.
       On page 606, between lines 4 and 5, insert the following:
       ``(E) Mandatory funding for fiscal years 2013 through 
     2017.--Of the funds of the Commodity Credit Corporation, the 
     Secretary shall use to carry out this paragraph $4,000,000 
     for each of fiscal years 2013 through 2017, to remain 
     available until expended.
       On page 782, strike line 14 and insert the following:

     through promulgation of an interim rule.
       ``(j) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $10,000,000 for each of fiscal years 2013 through 
     2017, to remain available until expended.''.

     SEC. 6203. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND 
                   GRANT APPLICATIONS.

       (a) In General.--The Secretary shall use funds made 
     available under subsection (b) to provide funds for 
     applications that are pending on the date of enactment of 
     this Act in accordance with the terms and conditions of 
     section 6029 of the Food, Conservation, and Energy Act of 
     2008 (Public Law 110 246; 122 Stat. 1955).
       (b) Funding.--Notwithstanding any other provision of law, 
     of the funds of the Commodity Credit Corporation, the 
     Secretary shall use to carry out this section $100,000,000, 
     to remain available until expended.
       On page 832, line 6, strike ``$50,000,000'' and insert 
     ``$100,000,000''.
       On page 989, line 9, strike ``$5,000,000'' and insert 
     ``$15,000,000''.
                                 ______
                                 
  SA 2363. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 1009, after line 11, add the following:

     SEC. 12207. ANIMAL WELFARE.

       Section 2(h) of the Animal Welfare Act (7 U.S.C. 2132(h)) 
     is amended by adding ``an

[[Page S3992]]

     owner of a common, domesticated household pet who derives 
     less than a substantial portion of income from a nonprimary 
     source (as determined by the Secretary) for exhibiting an 
     animal that exclusively resides at the residence of the pet 
     owner,'' after ``stores,''.
                                 ______
                                 
  SA 2364. Mr. BINGAMAN (for himself and Mrs. Hutchison) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 195, strike line 25 and all that follows through 
     page 196, line 16, and insert the following:

     ``life habitat under subsection (g).
       ``(3) Water quantity improvement.--For each of fiscal years 
     2013 through 2017, at least 10 percent of the funds made 
     available for payments under the program shall be used to 
     provide payments to producers to conserve surface water and 
     groundwater in accordance with subsection (h).'';
       (5) by striking subsection (g) and inserting the following:
       ``(g) Wildlife Habitat Incentive Practice.--The Secretary 
     shall provide payments under the program for conservation 
     practices that support the restoration, development, 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 irregular areas of 
     a field; and
       ``(6) other types of wildlife habitat, as determined by the 
     Secretary.''; and
       (6) in subsection (h), by adding at the end the following:
       ``(3) Use of funds.--
       ``(A) Practices.--The Secretary shall promote surface water 
     and groundwater conservation by providing assistance in the 
     form of cost-share payments, incentive payments, and loans to 
     producers to carry out eligible water conservation practices 
     with respect to the agricultural operations of producers--
       ``(i) to improve irrigation systems;
       ``(ii) to enhance irrigation efficiencies;
       ``(iii) to convert to--

       ``(I) the production of less water-intensive crops;
       ``(II) dryland farming; or
       ``(III) long-term grassland rotation;

       ``(iv) to improve the storage of water through measures 
     such as water banking and groundwater recharge;
       ``(v) to mitigate the effects of drought; and
       ``(vi) to carry out other measures that improve surface 
     water and groundwater conservation, as determined by the 
     Secretary, in the agricultural operations of the producers.
       ``(B) Allocation.--
       ``(i) In general.--Subject to clause (ii), in allocating 
     funds under this paragraph, the Secretary shall ensure that 
     not less than 50 percent shall be directed to groundwater 
     conservation in multistate aquifers based on the magnitude of 
     withdrawals from the multistate aquifers for irrigation 
     during the prior year and the historic groundwater level 
     reductions.
       ``(ii) Requirement.--In carrying out clause (i), the 
     Secretary shall provide assistance to producers to carry out 
     groundwater conservation practices in areas overlying those 
     portions of multistate aquifers that have experienced the 
     highest historic groundwater level reductions.''.
                                 ______
                                 
  SA 2365. Mr. BEGICH (for himself and Mr. McCain) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 980, between lines 12 and 13, insert the following:

     SEC. 11024. DISCLOSURE IN THE PUBLIC INTEREST.

       Section 502(c) of the Federal Crop Insurance Act (7 U.S.C. 
     1502(c)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Disclosure in the public interest.--
       ``(A) In general.--Notwithstanding paragraph (1) or any 
     other provision of law, except as provided in subparagraph 
     (B), the Secretary shall on an annual basis make available to 
     the public--
       ``(i)(I) the name of each individual or entity who obtained 
     a federally subsidized crop insurance, livestock, or forage 
     policy or plan of insurance during the previous fiscal year;
       ``(II) the amount of premium subsidy received by the 
     individual or entity from the Corporation; and
       ``(III) the amount of any Federal portion of indemnities 
     paid in the event of a loss during that fiscal year for each 
     policy associated with that individual or entity; and
       ``(ii) for each private insurance provider, by name--

       ``(I) the underwriting gains earned through participation 
     in the federally subsidized crop insurance program; and
       ``(II) the amount paid under this subtitle for--

       ``(aa) administrative and operating expenses;
       ``(bb) any Federal portion of indemnities and reinsurance; 
     and
       ``(cc) any other purpose.
       ``(B) Limitation.--The Secretary shall not disclose 
     information pertaining to individuals and entities covered by 
     a catastrophic risk protection plan offered under section 
     508(b).''.
                                 ______
                                 
  SA 2366. Mrs. HAGAN submitted an amendment intended to be proposed by 
her to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title XI, add the following:

     SEC. 110__. GREATER ACCESSIBILITY FOR CROP INSURANCE.

       (a) Findings.--Congress finds that--
       (1) due to changes in commodity and other agricultural 
     programs made by the Agriculture Reform, Food, and Jobs Act 
     of 2012, it is more important than ever that agricultural 
     producers be able to fully understand the terms of plans and 
     policies of crop insurance offered under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.); and
       (2) proposed reductions by the Secretary in the number of 
     State and local offices of the Farm Service Agency will 
     reduce the services available to assist agricultural 
     producers in understanding crop insurance.
       (b) Requirement for Use of Plain Language.--
       (1) In general.--In issuing regulations and guidance 
     relating to plans and policies of crop insurance, the Risk 
     Management Agency and the Federal Crop Insurance Corporation 
     shall, to the greatest extent practicable, use plain 
     language, as required under Executive Orders 12866 (5 U.S.C. 
     601 note; relating to regulatory planning and review) and 
     12988 (28 U.S.C. 519 note; relating to civil justice reform).
       (2) Report.--Not later than 180 days after the date of 
     enactment of this Act, 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 efforts of the Secretary to 
     accelerate compliance with the Executive Orders described in 
     paragraph (1).
       (c) Website.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the approved insurance providers (as defined in section 
     502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)), 
     shall improve the existing Internet website through which 
     agricultural producers in any State may identify crop 
     insurance options in that State.
       (2) Requirements.--The website described in paragraph (1) 
     shall--
       (A) provide answers in an easily accessible format to 
     frequently asked questions; and
       (B) include published materials of the Department of 
     Agriculture that relate to plans and policies of crop 
     insurance offered under that Act.
       (d) Administration.--Nothing in this section authorizes the 
     Risk Management Agency to sell a crop insurance policy or 
     plan of insurance.
                                 ______
                                 
  SA 2367. Mrs. HAGAN (for herself, Mr. Crapo, Mrs. McCaskill, Mr. 
Risch, Mr. Pryor, Mr. Chambliss, Ms. Landrieu, and Mr. Vitter) 
submitted an amendment intended to be proposed by her to the bill S. 
3240, to reauthorize agricultural programs through 2017, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1009, after line 11, add the following:

     SEC. 12207. USE OF AUTHORIZED PESTICIDES; DISCHARGES OF 
                   PESTICIDES; REPORT.

       (a) Use of Authorized Pesticides.--Section 3(f) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136a(f)) is amended by adding at the end the following:
       ``(5) Use of authorized pesticides.--Except as provided in 
     section 402(s) of the Federal Water Pollution Control Act (33 
     U.S.C. 1342), the Administrator or a State shall not require 
     a permit under that Act for a discharge from a point source 
     into navigable waters of--
       ``(A) a pesticide authorized for sale, distribution, or use 
     under this Act; or
       ``(B) the residue of the pesticide, resulting from the 
     application of the pesticide.''.
       (b) Discharges of Pesticides.--Section 402 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1342) is amended by 
     adding at the end the following:
       ``(s) Discharges of Pesticides.--
       ``(1) No permit requirement.--Except as provided in 
     paragraph (2), a permit shall not be required by the 
     Administrator or a State under this Act for a discharge from 
     a point source into navigable waters of--
       ``(A) a pesticide authorized for sale, distribution, or use 
     under the Federal Insecticide, Fungicide, and Rodenticide Act 
     (7 U.S.C. 136 et seq.); or
       ``(B) the residue of the pesticide, resulting from the 
     application of the pesticide.
       ``(2) Exceptions.--Paragraph (1) shall not apply to the 
     following discharges of a pesticide or pesticide residue:
       ``(A) A discharge resulting from the application of a 
     pesticide in violation of a provision of the Federal 
     Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et 
     seq.) relevant to protecting water quality if--
       ``(i) the discharge would not have occurred without the 
     violation; or
       ``(ii) the amount of pesticide or pesticide residue in the 
     discharge is greater than would have occurred without the 
     violation.

[[Page S3993]]

       ``(B) Stormwater discharges subject to regulation under 
     subsection (p).
       ``(C) The following discharges subject to regulation under 
     this section:
       ``(i) Manufacturing or industrial effluent.
       ``(ii) Treatment works effluent.
       ``(iii) Discharges incidental to the normal operation of a 
     vessel, including a discharge resulting from ballasting 
     operations or vessel biofouling prevention.''.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency, in consultation with the Secretary of 
     Agriculture, shall submit a report to the Committee on 
     Environment and Public Works and the Committee on Agriculture 
     of the Senate and the Committee on Transportation and 
     Infrastructure and the Committee on Agriculture of the House 
     of Representatives that includes--
       (1) the status of intra-agency coordination between the 
     Office of Water and the Office of Pesticide Programs of the 
     Environmental Protection Agency regarding streamlining 
     information collection, standards of review, and data use 
     relating to water quality impacts from the registration and 
     use of pesticides;
       (2) an analysis of the effectiveness of current regulatory 
     actions relating to pesticide registration and use aimed at 
     protecting water quality; and
       (3) any recommendations on how the Federal Insecticide, 
     Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.) can be 
     modified to better protect water quality and human health.
                                 ______
                                 
  SA 2368. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed by her to the bill S. 3240, to reauthorize agricultural 
programs through 2017, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 953, lines 6 through 8, strike ``for programs 
     administered or managed by the Risk Management Agency'' and 
     insert ``to increase the amount of the annual supplemental 
     nutrition assistance program consolidated block grants for 
     Puerto Rico and American Samoa under section 19 of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2028), in an amount not 
     to exceed an increase of 25 percent each fiscal year until 
     expended''.
                                 ______
                                 
  SA 2369. Ms. CANTWELL submitted an amendment intended to be proposed 
by her to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle C of title XII, add the following:

     SEC. 12207. PULSE CROP PRODUCTS.

       (a) Purpose.--The purpose of this section is to encourage 
     greater awareness and interest in the number and variety of 
     pulse crop products available to schoolchildren, as 
     recommended by the most recent Dietary Guidelines for 
     Americans published under section 301 of the National 
     Nutrition Monitoring and Related Research Act of 1990 (7 
     U.S.C. 5341).
       (b) Definitions.--In this section:
       (1) Eligible pulse crop.--The term ``eligible pulse crop'' 
     means dry beans, dry peas, lentils, and chickpeas.
       (2) Pulse crop product.--The term ``pulse crop product'' 
     means a food product derived in whole or in part from an 
     eligible pulse crop.
       (c) Purchase of Pulse Crops and Pulse Crop Products.--In 
     addition to the commodities delivered under section 6 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1755), the Secretary shall purchase eligible pulse crops and 
     pulse crop products for use in--
       (1) the school lunch program established under the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1751 et 
     seq.); and
       (2) the school breakfast program established by section 4 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
       (d) Evaluation.--Not later than September 30, 2016, the 
     Secretary shall conduct an evaluation of the activities 
     conducted under subsection (c), including--
       (1) an evaluation of whether children participating in the 
     school lunch and breakfast programs described in subsection 
     (c) increased overall consumption of eligible pulse crops as 
     a result of the activities;
       (2) an evaluation of which eligible pulse crops and pulse 
     crop products are most acceptable for use in the school lunch 
     and breakfast programs;
       (3) any recommendations of the Secretary regarding the 
     integration of the use of pulse crop products in carrying out 
     the school lunch and breakfast programs;
       (4) an evaluation of any change in the nutrient composition 
     in the school lunch and breakfast programs due to the 
     activities; and
       (5) an evaluation of any other outcomes determined to be 
     appropriate by the Secretary.
       (e) Report.--As soon as practicable after the completion of 
     the evaluation under subsection (d), the Secretary shall 
     submit to the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate and the Committee on Education and the 
     Workforce of the House of Representative a report describing 
     the results of the evaluation.
       (f) Funding.--
       (1) In general.--On October 1, 2013, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $5,000,000.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
                                 ______
                                 
  SA 2370. Ms. CANTWELL submitted an amendment intended to be proposed 
by her to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 361, between lines 8 and 9, insert the following:

     SEC. 4208. PULSE CROP PRODUCTS.

       (a) Purpose.--The purpose of this section is to encourage 
     greater awareness and interest in the number and variety of 
     pulse crop products available to schoolchildren, as 
     recommended by the most recent Dietary Guidelines for 
     Americans published under section 301 of the National 
     Nutrition Monitoring and Related Research Act of 1990 (7 
     U.S.C. 5341).
       (b) Definitions.--In this section:
       (1) Eligible pulse crop.--The term ``eligible pulse crop'' 
     means dry beans, dry peas, lentils, and chickpeas.
       (2) Pulse crop product.--The term ``pulse crop product'' 
     means a food product derived in whole or in part from an 
     eligible pulse crop.
       (c) Purchase of Pulse Crops and Pulse Crop Products.--In 
     addition to the commodities delivered under section 6 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1755), the Secretary shall purchase eligible pulse crops and 
     pulse crop products for use in--
       (1) the school lunch program established under the Richard 
     B. Russell National School Lunch Act (42 U.S.C. 1751 et 
     seq.); and
       (2) the school breakfast program established by section 4 
     of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
       (d) Evaluation.--Not later than September 30, 2016, the 
     Secretary shall conduct an evaluation of the activities 
     conducted under subsection (c), including--
       (1) an evaluation of whether children participating in the 
     school lunch and breakfast programs described in subsection 
     (c) increased overall consumption of eligible pulse crops as 
     a result of the activities;
       (2) an evaluation of which eligible pulse crops and pulse 
     crop products are most acceptable for use in the school lunch 
     and breakfast programs;
       (3) any recommendations of the Secretary regarding the 
     integration of the use of pulse crop products in carrying out 
     the school lunch and breakfast programs;
       (4) an evaluation of any change in the nutrient composition 
     in the school lunch and breakfast programs due to the 
     activities; and
       (5) an evaluation of any other outcomes determined to be 
     appropriate by the Secretary.
       (e) Report.--As soon as practicable after the completion of 
     the evaluation under subsection (d), the Secretary shall 
     submit to the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate and the Committee on Education and the 
     Workforce of the House of Representative a report describing 
     the results of the evaluation.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000, to 
     remain available until expended.
                                 ______
                                 
  SA 2371. Mr. MERKLEY (for himself and Ms. Collins) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       In section 8103, strike ``Section 7'' and all that follows 
     through ``inserting the following:'' and insert the 
     following:
       Section 7 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103c) is amended--
       (1) in subsection (l), by adding at the end the following:
       ``(4) State authorization.--
       ``(A) Definition of qualified organization.--In this 
     paragraph, a `qualified organization' means an organization--
       ``(i) defined in section 170(h)(3) of the Internal Revenue 
     Code of 1986; and
       ``(ii) organized for 1 or more of the purposes described in 
     section 170(h)(4)(A) of that Code.
       ``(B) Authorization.--The Secretary shall, at the request 
     of a State acting through the State lead agency, authorize 
     the State to allow qualified organizations to acquire, hold, 
     and manage conservation easements, using funds provided 
     through grants to the State under this subsection, for 
     purposes of the Forest Legacy Program in the State.
       ``(C) Eligibility.--To be eligible to acquire and manage 
     conservation easements under this paragraph, a qualified 
     organization shall demonstrate to the Secretary the abilities 
     necessary to acquire, monitor, and enforce interests in 
     forest land consistent with the Forest Legacy Program and the 
     assessment of need for the State.
       ``(D) Reversion.--
       ``(i) In general.--If the Secretary, or a State acting 
     through the State lead agency, makes any of the 
     determinations described in clause (ii) with respect to a 
     conservation easement acquired by a qualified organization 
     under subparagraph (B)--

[[Page S3994]]

       ``(I) all right, title, and interest of the qualified 
     organization in and to the conservation easement shall 
     terminate; and
       ``(II) all right, title, and interest in and to the 
     conservation easement shall revert to the State or other 
     qualified designee approved by the State.

       ``(ii) Determinations.--The determinations referred to in 
     clause (i) are that--

       ``(I) the qualified organization is unable to carry out the 
     responsibilities of the qualified organization under the 
     Forest Legacy Program in the State with respect to the 
     conservation easement;
       ``(II) the conservation easement has been modified or is 
     being administered in a way that is inconsistent with the 
     purposes of the Forest Legacy Program or the assessment of 
     need for the State; or
       ``(III) the conservation easement has been conveyed to 
     another person (other than a qualified organization approved 
     by the State and the Secretary).''; and

       (2) by striking subsection (m) and inserting the following:
                                 ______
                                 
  SA 2372. Mr. JOHANNS submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1009, after line 11, add the following:

     SEC. 122___. PROHIBITION ON AERIAL SURVEILLANCE OF 
                   AGRICULTURAL OPERATIONS.

       The Administrator of the Environmental Protection Agency 
     shall not conduct aerial surveillance to inspect agricultural 
     operations or to record images of agricultural operations.
                                 ______
                                 
  SA 2373. Mr. WICKER (for himself, Mr. Conrad, Mr. Inhofe, Ms. 
Landrieu, Mr. Cochran, and Mr. Tester) submitted an amendment intended 
to be proposed by him to the bill S. 3240, to reauthorize agricultural 
programs through 2017, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 1009, after line 11, add the following:

     SECTION 12207. GRASSROOTS RURAL AND SMALL COMMUNITY WATER 
                   SYSTEMS ASSISTANCE.

       (a) Short Title.--This Section may be cited as the 
     ``Grassroots Rural and Small Community Water Systems 
     Assistance Act''.
       (b) Findings.--Congress finds that--
       (1) the Safe Drinking Water Act Amendments of 1996 (Public 
     Law 104 182) authorized technical assistance for small and 
     rural communities to assist those communities in complying 
     with regulations promulgated pursuant to the Safe Drinking 
     Water Act (42 U.S.C. 300f et seq.);
       (2) technical assistance and compliance training--
       (A) ensures that Federal regulations do not overwhelm the 
     resources of small and rural communities; and
       (B) provides small and rural communities lacking technical 
     resources with the necessary skills to improve and protect 
     water resources;
       (3) across the United States, more than 90 percent of the 
     community water systems serve a population of less than 
     10,000 individuals;
       (4) small and rural communities have the greatest 
     difficulty providing safe, affordable public drinking water 
     and wastewater services due to limited economies of scale and 
     lack of technical expertise; and
       (5) in addition to being the main source of compliance 
     assistance, small and rural water technical assistance has 
     been the main source of emergency response assistance in 
     small and rural communities.
       (c) Sense of Congress.--It is the sense of Congress that--
       (1) to most effectively assist small and rural communities, 
     the Environmental Protection Agency should prioritize the 
     types of technical assistance that are most beneficial to 
     those communities, based on input from those communities; and
       (2) local support is the key to making Federal assistance 
     initiatives work in small and rural communities to the 
     maximum benefit.
       (d) Funding Priorities.--Section 1442(e) of the Safe 
     Drinking Water Act (42 U.S.C. 300j 1(e)) is amended--
       (1) by designating the first through seventh sentences as 
     paragraphs (1) through (7), respectively;
       (2) in paragraph (5) (as so designated), by striking ``1997 
     through 2003'' and inserting ``2012 through 2017''; and
       (3) by adding at the end the following:
       ``(8) Nonprofit organizations.--
       ``(A) In general.--The Administrator may use amounts made 
     available to carry out this section to provide technical 
     assistance to nonprofit organizations that provide to small 
     public water systems onsite technical assistance, circuit-
     rider technical assistance programs, onsite and regional 
     training, assistance with implementing source water 
     protection plans, and assistance with implementation 
     monitoring plans, rules, regulations, and water security 
     enhancements.
       ``(B) Preference.--To ensure that technical assistance 
     funding is used in a manner that is most beneficial to the 
     small and rural communities of a State, the Administrator 
     shall give preference under this paragraph to nonprofit 
     organizations that, as determined by the Administrator, are 
     the most qualified and experienced and that the small 
     community water systems in that State find to be the most 
     beneficial and effective.
       ``(9) Consultation.--In carrying out paragraphs (1) through 
     (3), the Administrator may consult or coordinate with the 
     Secretary of Agriculture, acting through the Under Secretary 
     of Rural Development.''.
                                 ______
                                 
  SA 2374. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF DODD-FRANK ACT.

       The Dodd-Frank Wall Street Reform and Consumer Protection 
     Act (Public Law 111 203) is repealed, and the provisions of 
     law amended by such Act are revived or restored as if such 
     Act had not been enacted.
                                 ______
                                 
  SA 2375. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 361, between lines 8 and 9, insert the following:

     SEC. 4208. LEAN FINELY TEXTURED BEEF.

       Section 14 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1762a) is amended by adding at the end the 
     following:
       ``(i) Lean Finely Textured Beef.--The Secretary shall give 
     States and school food authorities the option to purchase and 
     receive meat and meat food products that do not contain low-
     temperature rendered product, also known as lean finely 
     textured beef (as defined by the Secretary), for use in 
     school meal programs under this Act and the Child Nutrition 
     Act of 1966 (42 U.S.C. 1771 et seq.).''.
                                 ______
                                 
  SA 2376. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 312, strike line 9 and all that follows 
     through page 339, line 15, and insert the following:

     SEC. 4002. LIMITATION ON CATEGORICAL ELIGIBILITY.

       (a) In General.--Section 5 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014) is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``households in which each member receives benefits'' and 
     inserting ``households in which each member receives cash 
     assistance''; and
       (2) in subsection (j), by striking ``or who receives 
     benefits under a State program'' and inserting ``or who 
     receives cash assistance under a State program''.
       (b) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.

     SEC. 4003. STANDARD UTILITY ALLOWANCE.

       (a) Standard Utility Allowance.--Section 5 of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
       (1) in subsection (e)(6)(C), by striking clause (iv); and
       (2) in subsection (k), by striking paragraph (4) and 
     inserting the following:
       ``(4) Third party energy assistance payments.--For purposes 
     of subsection (d)(1), a payment made under a State law (other 
     than a law referred to in paragraph (2)(G)) to provide energy 
     assistance to a household shall be considered money payable 
     directly to the household.''.
       (b) Conforming Amendments.--Section 2605(f)(2) of the Low-
     Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8624(f)(2)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``and for purposes of determining any excess shelter expense 
     deduction under section 5(e) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014(e))''; and
       (2) in subparagraph (A), by inserting before the semicolon 
     the following: ``, except that such payments or allowances 
     shall not be considered to be expended for purposes of 
     determining any excess shelter expense deduction under 
     section 5(e)(6) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2014(e)(6))''.
       (c) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.

     SEC. 4004. ELIGIBILITY DISQUALIFICATIONS.

       Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 
     U.S.C. 2015(e)(3)(B)) is amended by striking ``section'' and 
     inserting the following: ``section, subject to the condition 
     that the course or program of study--
       ``(i) is part of a program of career and technical 
     education (as defined in section 3 of the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2302)) 
     that may be completed in not more than 4 years at an 
     institution of higher education (as defined in section 102 of 
     the Higher Education Act of 1965 (20 U.S.C. 1002)); or

[[Page S3995]]

       ``(ii) is limited to remedial courses, basic adult 
     education, literacy, or English as a second language;''.

     SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 
                   BENEFITS FOR LOTTERY OR GAMBLING WINNERS.

       (a) In General.--Section 6 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2015) is amended by adding at the end the 
     following:
       ``(r) Ineligibility for Benefits Due to Receipt of 
     Substantial Lottery or Gambling Winnings.--
       ``(1) In general.--Any household in which a member receives 
     substantial lottery or gambling winnings, as determined by 
     the Secretary, shall lose eligibility for benefits 
     immediately upon receipt of the winnings.
       ``(2) Duration of ineligibility.--A household described in 
     paragraph (1) shall remain ineligible for participation until 
     the household meets the allowable financial resources and 
     income eligibility requirements under subsections (c), (d), 
     (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
       ``(3) Agreements.--As determined by the Secretary, each 
     State agency, to the maximum extent practicable, shall 
     establish agreements with entities responsible for the 
     regulation or sponsorship of gaming in the State to determine 
     whether individuals participating in the supplemental 
     nutrition assistance program have received substantial 
     lottery or gambling winnings.''.
       (b) Conforming Amendments.--Section 5(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the 
     second sentence by striking ``sections 6(b), 6(d)(2), and 
     6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r) 
     of section 6''.

     SEC. 4006. RETAIL FOOD STORES.

       (a) Definition of Retail Food Store.--Subsection (o)(1)(A) 
     of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2012) (as redesignated by section 4020(a)(4)) is amended by 
     striking ``at least 2'' and inserting ``at least 3''.
       (b) Alternative Benefit Delivery.--Section 7(f) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Imposition of costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require participating retail food stores 
     (including restaurants participating in a State option 
     restaurant program intended to serve the elderly, disabled, 
     and homeless) to pay 100 percent of the costs of acquiring, 
     and arrange for the implementation of, electronic benefit 
     transfer point-of-sale equipment and supplies, including 
     related services.
       ``(B) Exemptions.--The Secretary may exempt from 
     subparagraph (A)--
       ``(i) farmers' markets, military commissaries, nonprofit 
     food buying cooperatives, and establishments, organizations, 
     programs, or group living arrangements described in 
     paragraphs (5), (7), and (8) of section 3(k); and
       ``(ii) establishments described in paragraphs (3), (4), and 
     (9) of section 3(k), other than restaurants participating in 
     a State option restaurant program.''; and
       (2) by adding at the end the following:
       ``(4) Termination of manual vouchers.--
       ``(A) In general.--Effective beginning on the date of 
     enactment of this paragraph, except as provided in 
     subparagraph (B), no State shall issue manual vouchers to a 
     household that receives supplemental nutrition assistance 
     under this Act or allow retail food stores to accept manual 
     vouchers as payment, unless the Secretary determines that the 
     manual vouchers are necessary, such as in the event of an 
     electronic benefit transfer system failure or a disaster 
     situation.
       ``(B) Exemptions.--The Secretary may exempt categories of 
     retail food stores or individual retail food stores from 
     subparagraph (A) based on criteria established by the 
     Secretary.
       ``(5) Unique identification number required.--The Secretary 
     shall require all parties providing electronic benefit 
     transfer services to provide for and maintain unique terminal 
     identification number information through the supplemental 
     nutrition assistance program electronic benefit transfer 
     transaction routing system.''.
       (c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) 
     is amended by striking ``is operational--'' and all that 
     follows through ``(ii) in the case of other participating 
     stores,'' and inserting ``is operational''.
       (d) Approval of Retail Food Stores and Wholesale Food 
     Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2018) is amended--
       (1) in subsection (a)--
       (A) in the second sentence of paragraph (a)(1), by striking 
     ``; and (C)'' and inserting ``; (C) whether the applicant is 
     located in an area with significantly limited access to food; 
     and (D)''; and
       (2) by adding at the end the following:
       ``(4) Retail food stores with significant sales of excepted 
     items.--
       ``(A) In general.--No retail food store for which at least 
     45 percent of the total sales of the retail food store is 
     from the sale of excepted items described in section 3(k)(1) 
     may be authorized to accept and redeem benefits unless the 
     Secretary determines that the participation of the retail 
     food store is required for the effective and efficient 
     operation of the supplemental nutrition assistance program.
       ``(B) Application.--Subparagraph (A) shall be effective--
       ``(i) in the case of retail food stores applying to be 
     authorized for the first time, beginning on the date that is 
     1 year after the date of enactment of this paragraph; and
       ``(ii) in the case of retail food stores participating in 
     the program on the date of enactment of this paragraph, 
     during periodic reauthorization in accordance with paragraph 
     (2)(A).''; and
       (3) by adding at the end the following:
       ``(g) EBT Service Requirement.--An approved retail food 
     store shall provide adequate EBT service as described in 
     section 7(h)(3)(B).''.

     SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE.

       Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2016(h)(8)) is amended--
       (1) by striking the paragraph heading and inserting 
     ``Replacement of cards.--'';
       (2) by striking ``A State'' and inserting the following:
       ``(A) Fees.--A State''; and
       (3) by adding after subparagraph (A) (as so designated by 
     paragraph (2)) the following:
       ``(B) Purposeful loss of cards.--
       ``(i) In general.--Subject to terms and conditions 
     established by the Secretary in accordance with clause (ii), 
     if a household makes excessive requests for replacement of 
     the electronic benefit transfer card of the household, the 
     Secretary may require a State agency to decline to issue a 
     replacement card to the household unless the household, upon 
     request of the State agency, provides an explanation for the 
     loss of the card.
       ``(ii) Requirements.--The terms and conditions established 
     by the Secretary shall provide that--

       ``(I) the household be given the opportunity to provide the 
     requested explanation and meet the requirements under this 
     paragraph promptly;
       ``(II) after an excessive number of lost cards, the head of 
     the household shall be required to review program rights and 
     responsibilities with State agency personnel authorized to 
     make determinations under section 5(a); and
       ``(III) any action taken, including actions required under 
     section 6(b)(2), other than the withholding of the electronic 
     benefit transfer card until an explanation described in 
     subclause (I) is provided, shall be consistent with the due 
     process protections under section 6(b) or 11(e)(10), as 
     appropriate.

       ``(C) Protecting vulnerable persons.--In implementing this 
     paragraph, a State agency shall act to protect homeless 
     persons, persons with disabilities, victims of crimes, and 
     other vulnerable persons who lose electronic benefit transfer 
     cards but are not intentionally committing fraud.
       ``(D) Effect on eligibility.--While a State may decline to 
     issue an electronic benefits transfer card until a household 
     satisfies the requirements under this paragraph, nothing in 
     this paragraph shall be considered a denial of, or limitation 
     on, the eligibility for benefits under section 5.''.

     SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.

       (a) Mobile Technologies.--Section 7(h) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by 
     section 4020(e)) is amended by adding at the end the 
     following:
       ``(14) Mobile technologies.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall approve retail food stores to redeem benefits 
     through electronic means other than wired point of sale 
     devices for electronic benefit transfer transactions, if the 
     retail food stores--
       ``(i) establish recipient protections regarding privacy, 
     ease of use, access, and support similar to the protections 
     provided for transactions made in retail food stores;
       ``(ii) bear the costs of obtaining, installing, and 
     maintaining mobile technologies, including mechanisms needed 
     to process EBT cards and transaction fees;
       ``(iii) demonstrate the foods purchased with benefits 
     issued under this section through mobile technologies are 
     purchased at a price not higher than the price of the same 
     food purchased by other methods used by the retail food 
     store, as determined by the Secretary;
       ``(iv) provide adequate documentation for each authorized 
     transaction, as determined by the Secretary; and
       ``(v) meet other criteria as established by the Secretary.
       ``(B) Demonstration project on acceptance of benefits of 
     mobile transactions.--
       ``(i) In general.--Before authorizing implementation of 
     subparagraph (A) in all States, the Secretary shall pilot the 
     use of mobile technologies determined by the Secretary to be 
     appropriate to test the feasibility and implications for 
     program integrity, by allowing retail food stores to accept 
     benefits from recipients of supplemental nutrition assistance 
     through mobile transactions.
       ``(ii) Demonstration projects.--To be eligible to 
     participate in a demonstration project under clause (i), a 
     retail food store shall submit to the Secretary for approval 
     a plan that includes--

       ``(I) a description of the technology;
       ``(II) the manner by which the retail food store will 
     provide proof of the transaction to households;
       ``(III) the provision of data to the Secretary, consistent 
     with requirements established by the Secretary, in a manner 
     that allows the Secretary to evaluate the impact of the 
     demonstration on participant access, ease of use, and program 
     integrity; and

[[Page S3996]]

       ``(IV) such other criteria as the Secretary may require.

       ``(iii) Date of completion.--The demonstration projects 
     under this subparagraph shall be completed and final reports 
     submitted to the Secretary by not later than July 1, 2015.
       ``(C) Report to congress.--The Secretary shall--
       ``(i) by not later than January 1, 2016, authorize 
     implementation of subparagraph (A) in all States, unless the 
     Secretary makes a finding, based on the data provided under 
     subparagraph (B), that implementation in all States is not in 
     the best interest of the supplemental nutrition assistance 
     program; and
       ``(ii) if the determination made in clause (i) is not to 
     implement subparagraph (A) in all States, 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 basis of the finding.''.
       (b) Acceptance of Benefits Through On-line Transactions.--
       (1) In general.--Section 7 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2016) is amended by adding at the end the 
     following:
       ``(k) Option to Accept Program Benefits Through On-line 
     Transactions.--
       ``(1) In general.--Subject to paragraph (4), the Secretary 
     shall approve retail food stores to accept benefits from 
     recipients of supplemental nutrition assistance through on-
     line transactions.
       ``(2) Requirements to accept benefits.--A retail food store 
     seeking to accept benefits from recipients of supplemental 
     nutrition assistance through on-line transactions shall--
       ``(A) establish recipient protections regarding privacy, 
     ease of use, access, and support similar to the protections 
     provided for transactions made in retail food stores;
       ``(B) ensure benefits are not used to pay delivery, 
     ordering, convenience, or other fees or charges;
       ``(C) clearly notify participating households at the time a 
     food order is placed--
       ``(i) of any delivery, ordering, convenience, or other fee 
     or charge associated with the food purchase; and
       ``(ii) that any such fee cannot be paid with benefits 
     provided under this Act;
       ``(D) ensure the security of on-line transactions by using 
     the most effective technology available that the Secretary 
     considers appropriate and cost-effective and that is 
     comparable to the security of transactions at retail food 
     stores; and
       ``(E) meet other criteria as established by the Secretary.
       ``(3) State agency action.--Each State agency shall ensure 
     that recipients of supplemental nutrition assistance can use 
     benefits on-line as described in this subsection as 
     appropriate.
       ``(4) Demonstration project on acceptance of benefits 
     through on-line transactions.--
       ``(A) In general.--Before the Secretary authorizes 
     implementation of paragraph (1) in all States, the Secretary 
     shall carry out a number of demonstration projects as 
     determined by the Secretary to test the feasibility of 
     allowing retail food stores to accept benefits through on-
     line transactions.
       ``(B) Demonstration projects.--To be eligible to 
     participate in a demonstration project under subparagraph 
     (A), a retail food store shall submit to the Secretary for 
     approval a plan that includes--
       ``(i) a method of ensuring that benefits may be used to 
     purchase only eligible items under this Act;
       ``(ii) a description of the method of educating participant 
     households about the availability and operation of on-line 
     purchasing;
       ``(iii) adequate testing of the on-line purchasing option 
     prior to implementation;
       ``(iv) the provision of data as requested by the Secretary 
     for purposes of analyzing the impact of the project on 
     participant access, ease of use, and program integrity;
       ``(v) reports on progress, challenges, and results, as 
     determined by the Secretary; and
       ``(vi) such other criteria, including security criteria, as 
     established by the Secretary.
       ``(C) Date of completion.--The demonstration projects under 
     this paragraph shall be completed and final reports submitted 
     to the Secretary by not later than July 1, 2015.
       ``(5) Report to congress.--The Secretary shall--
       ``(A) by not later than January 1, 2016, authorize 
     implementation of paragraph (1) in all States, unless the 
     Secretary makes a finding, based on the data provided under 
     paragraph (4), that implementation in all States is not in 
     the best interest of the supplemental nutrition assistance 
     program; and
       ``(B) if the determination made in subparagraph (A) is not 
     to implement in all States, 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 basis of the finding.''.
       (2) Conforming amendments.--
       (A) Section 7(b) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2016(b)) is amended by striking ``purchase food in 
     retail food stores'' and inserting ``purchase food from 
     retail food stores''.
       (B) Section 10 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2019) is amended in the first sentence by inserting 
     ``retail food stores authorized to accept and redeem benefits 
     through on-line transactions shall be authorized to accept 
     benefits prior to the delivery of food if the delivery occurs 
     within a reasonable time of the purchase, as determined by 
     the Secretary,'' after ``food so purchased,''.
       (c) Savings Clause.--Nothing in this section or an 
     amendment made by this section alter any requirements of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless 
     specifically authorized in this section or an amendment made 
     by this section.

     SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-
                   SUPPORTED AGRICULTURE SHARE.

       Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2019) (as amended by section 4008(b)(2)(B)) is amended in the 
     first sentence by inserting ``agricultural producers who 
     market agricultural products directly to consumers shall be 
     authorized to redeem benefits for the initial cost of the 
     purchase of a community-supported agriculture share for an 
     appropriate time in advance of food delivery as determined by 
     the Secretary,'' after ``as determined by the Secretary,''.

     SEC. 4010. RESTAURANT MEALS PROGRAM.

       (a) In General.--Section 11(e) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2020(e)) is amended--
       (1) in paragraph (22), by striking ``and'' at the end;
       (2) in paragraph (23), by striking the period at the end of 
     subparagraph (C) and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(24) if the State elects to carry out a program to 
     contract with private establishments to offer meals at 
     concessional prices, as described in paragraphs 3, 4, and 9 
     of section 3(k)--
       ``(A) the plans of the State agency for operating the 
     program, including--
       ``(i) documentation of a need that eligible homeless, 
     elderly, and disabled clients are underserved in a particular 
     geographic area;
       ``(ii) the manner by which the State agency will limit 
     participation to only those private establishments that the 
     State determines necessary to meet the need identified in 
     clause (i); and
       ``(iii) any other conditions the Secretary may prescribe, 
     such as the level of security necessary to ensure that only 
     eligible recipients participate in the program; and
       ``(B) a report by the State agency to the Secretary 
     annually, the schedule of which shall be established by the 
     Secretary, that includes--
       ``(i) the number of households and individual recipients 
     authorized to participate in the program, including any 
     information on whether the individual recipient is elderly, 
     disabled, or homeless; and
       ``(ii) an assessment of whether the program is meeting an 
     established need, as documented under subparagraph (A)(i).''.
       (b) Approval of Retail Food Stores and Wholesale Food 
     Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2018) (as amended by section 4006(d)(3)) is amended by 
     adding at the end the following:
       ``(h) Private Establishments.--
       ``(1) In general.--Subject to paragraph (2), no private 
     establishment that contracts with a State agency to offer 
     meals at concessional prices as described in paragraphs 3, 4, 
     and 9 of section 3(k) may be authorized to accept and redeem 
     benefits unless the Secretary determines that the 
     participation of the private establishment is required to 
     meet a documented need in accordance with section 11(e)(24).
       ``(2) Existing contracts.--
       ``(A) In general.--If, on the day before the date of 
     enactment of this subsection, a State has entered into a 
     contract with a private establishment described in paragraph 
     (1) and the Secretary has not determined that the 
     participation of the private establishment is necessary to 
     meet a documented need in accordance with section 11(e)(24), 
     the Secretary shall allow the operation of the private 
     establishment to continue without that determination of need 
     for a period not to exceed 180 days from the date on which 
     the Secretary establishes determination criteria, by 
     regulation, under section 11(e)(24).
       ``(B) Justification.--If the Secretary makes a 
     determination to terminate a contract with a private 
     establishment that is in effect on the date of enactment of 
     this subsection, the Secretary shall provide justification to 
     the State in which the private establishment is located for 
     that termination.
       ``(3) Report to congress.--Not later than 90 days after 
     September 30, 2013, and 90 days after the last day of each 
     fiscal year thereafter, the Secretary shall report to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate on the effectiveness of a program under this 
     subsection using any information received from States under 
     section 11(e)(24) as well as any other information the 
     Secretary may have relating to the manner in which benefits 
     are used.''.
       (c) Conforming Amendments.--Section 3(k) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by 
     inserting ``subject to section 9(h)'' after ``concessional 
     prices'' each place it appears.

     SEC. 4011. EMPLOYMENT AND TRAINING.

       (a) Administrative Costs.--Section 16(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the 
     matter preceding paragraph (1) by inserting ``(other than a 
     program carried out under section 6(d)(4) or 20)'' after 
     ``supplemental nutrition assistance program''.
       (b) Funding of Employment and Training Programs.--

[[Page S3997]]

       (1) In general.--Section 16(h) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2025(h)) is amended--
       (A) in paragraph (1)(A), by striking ``for each fiscal year 
     under section 18(a)(1), $90,000,000 for each fiscal year.'' 
     and inserting the following:
     ``under section 18(a)(1)--
       ``(B) for fiscal year 2013, $79,000,000; and
       ``(C) for each subsequent fiscal year, $90,000,000.'';
       (B) by striking paragraphs (2) and (3); and
       (C) by redesignating paragraphs (4) and (5) as paragraphs 
     (2) and (3), respectively.
       (2) Conforming amendments.--
       (A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh)) 
     is amended by striking ``, (g), (h)(2), or (h)(3)'' and 
     inserting ``or (g)''.
       (B) Section 22(d)(1)(B)(ii) of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is amended by striking 
     ``, (g), (h)(2), and (h)(3)'' and inserting ``and (g)''.
       (c) Workfare.--Section 20 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2029) is amended by striking subsection (g).
       (d) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on October 1, 2012; and
       (2) apply only to certification periods that begin on or 
     after that date.

     SEC. 4012. QUALITY CONTROL ERROR RATE DETERMINATION.

       Section 16(c) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2025(c)) is amended by adding at the end the 
     following:
       ``(10) Tolerance level.--For the purposes of this 
     subsection, the Secretary shall set the tolerance level for 
     excluding small errors at $25.''.

     SEC. 4013. REPEAL OF STATE BONUS PAYMENTS.

       (a) In General.--Section 16 of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2025) is amended by striking subsection 
     (d).
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on October 1, 2012; and
       (2) apply only to certification periods that begin on or 
     after that date.

     SEC. 4014. AUTHORIZATION OF APPROPRIATIONS.

       Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2027(a)(1)) is amended in the first sentence by 
     striking ``2012'' and inserting ``2013''.

     SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

       Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2034) is amended--
       (1) in subsection (a)(1)(B)(ii)--
       (A) by striking subclause (I); and
       (B) by redesignating subclauses (II) and (III) as 
     subclauses (I) and (II), respectively; and
       (2) in subsection (b), by adding at the end the following:
       ``(3) Funding.--
       ``(A) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section not less 
     than $5,000,000 for fiscal year 2013 and each fiscal year 
     thereafter.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(C) Maintenance of funding.--The funding provided under 
     subparagraph (A) shall supplement (and not supplant) other 
     Federal funding made available to the Secretary to carry out 
     this section.''.

     SEC. 4016. EMERGENCY FOOD ASSISTANCE.

       (a) Purchase of Commodities.--Section 27(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
       (1) in paragraph (1), by striking ``2008 through 2012'' and 
     inserting ``2012 through 2017'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Amounts.--The Secretary shall use to carry out 
     paragraph (1)--
       ``(A) for fiscal year 2012, $260,000,000; and
       ``(B) for each subsequent fiscal year, the dollar amount of 
     commodities specified in subparagraph (A) adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(u)(4) between June 30, 2012, and June 30 of 
     the immediately preceding fiscal year, and subsequently 
     increased by--
       ``(i) for fiscal year 2013, $28,000,000;
       ``(ii) for fiscal year 2014, $24,000,000;
       ``(iii) for fiscal year 2015, $20,000,000;
       ``(iv) for fiscal year 2016, $18,000,000; and
       ``(v) for fiscal year 2017 and each fiscal year thereafter, 
     $10,000,000.''; and
       (3) by adding at the end the following:
       ``(3) Funds availability.--For purposes of the funds 
     described in this subsection, the Secretary shall--
       ``(A) make the funds available for 2 fiscal years; and
       ``(B) allow States to carry over unexpended balances to the 
     next fiscal year pursuant to such terms and conditions as are 
     determined by the Secretary.''.
       (b) Emergency Food Program Infrastructure Grants.--Section 
     209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7511a(d)) is amended by striking ``2012'' and inserting 
     ``2017''.

     SEC. 4017. NUTRITION EDUCATION.

       Section 28(b) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2036a(b)) is amended by inserting ``and physical 
     activity'' after ``healthy food choices''.

     SEC. 4018. NUTRITION EDUCATION AND OBESITY INDEXING.

       (a) In General.--Section 28(d)(1) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended by striking 
     ``years--'' and all that follows through the period at the 
     end, and inserting ``years, $375,000,000.''.
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.

     SEC. 4019. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

       The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

       ``(a) Purpose.--The purpose of this section is to provide 
     the Department of Agriculture with additional resources to 
     prevent trafficking in violation of this Act by strengthening 
     recipient and retail food store program integrity.
       ``(b) Use of Funds.--Additional funds are provided under 
     this section to supplement the retail food store and 
     recipient integrity activities of the Department.
       ``(c) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section not less 
     than $18,500,000 for fiscal year 2013 and each fiscal year 
     thereafter.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Maintenance of funding.--The funding provided under 
     paragraph (1) shall supplement (and not supplant) other 
     Federal funding for programs carried out under this Act.''.

     SEC. 4020. TECHNICAL AND CONFORMING AMENDMENTS.

                                 ______
                                 
  SA 2377. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 312, strike line 9 and all that follows 
     through page 313, line 25, and insert the following:

     SEC. 4002. LIMITATION ON CATEGORICAL ELIGIBILITY.

       (a) In General.--Section 5 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014) is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``households in which each member receives benefits'' and 
     inserting ``households in which each member receives cash 
     assistance''; and
       (2) in subsection (j), by striking ``or who receives 
     benefits under a State program'' and inserting ``or who 
     receives cash assistance under a State program''.
       (b) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.

     SEC. 4003. STANDARD UTILITY ALLOWANCE.

       (a) Standard Utility Allowance.--Section 5 of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
       (1) in subsection (e)(6)(C), by striking clause (iv); and
       (2) in subsection (k), by striking paragraph (4) and 
     inserting the following:
       ``(4) Third party energy assistance payments.--For purposes 
     of subsection (d)(1), a payment made under a State law (other 
     than a law referred to in paragraph (2)(G)) to provide energy 
     assistance to a household shall be considered money payable 
     directly to the household.''.
       (b) Conforming Amendments.--Section 2605(f)(2) of the Low-
     Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8624(f)(2)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``and for purposes of determining any excess shelter expense 
     deduction under section 5(e) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2014(e))''; and
       (2) in subparagraph (A), by inserting before the semicolon 
     the following: ``, except that such payments or allowances 
     shall not be considered to be expended for purposes of 
     determining any excess shelter expense deduction under 
     section 5(e)(6) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2014(e)(6))''.
       (c) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.

       On page 334, after line 22, insert the following:

     SEC. 4010. EMPLOYMENT AND TRAINING.

       (a) Administrative Costs.--Section 16(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the 
     matter preceding paragraph (1) by inserting ``(other than a 
     program carried out under section 6(d)(4) or 20)'' after 
     ``supplemental nutrition assistance program''.
       (b) Funding of Employment and Training Programs.--
       (1) In general.--Section 16(h) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2025(h)) is amended--

[[Page S3998]]

       (A) in paragraph (1)(A), by striking ``for each fiscal year 
     under section 18(a)(1), $90,000,000 for each fiscal year.'' 
     and inserting the following:
     ``under section 18(a)(1)--
       ``(B) for fiscal year 2013, $79,000,000; and
       ``(C) for each subsequent fiscal year, $90,000,000.'';
       (B) by striking paragraphs (2) and (3); and
       (C) by redesignating paragraphs (4) and (5) as paragraphs 
     (2) and (3), respectively.
       (2) Conforming amendments.--
       (A) Section 17(b)(1)(B)(iv)(III)(hh) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh)) 
     is amended by striking ``, (g), (h)(2), or (h)(3)'' and 
     inserting ``or (g)''.
       (B) Section 22(d)(1)(B)(ii) of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2031(d)(1)(B)(ii)) is amended by striking 
     ``, (g), (h)(2), and (h)(3)'' and inserting ``and (g)''.
       (c) Workfare.--Section 20 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2029) is amended by striking subsection (g).
       (d) Effective Date.--The amendments made by this section 
     shall--
       (1) take effect on October 1, 2012; and
       (2) apply only to certification periods that begin on or 
     after that date.

       On page 335, between lines 8 and 9, insert the following:

     SEC. 4011. REPEAL OF STATE BONUS PAYMENTS.

       (a) In General.--Section 16 of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2025) is amended by striking subsection 
     (d).
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on October 1, 2012; and
       (2) apply only to certification periods that begin on or 
     after that date.

       On page 335, line 12, strike ``2017'' and insert ``2013''.

       On page 338, between lines 10 and 11, insert the following:

     SEC. 4015. NUTRITION EDUCATION AND OBESITY INDEXING.

       (a) In General.--Section 28(d)(1) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended by striking 
     ``years--'' and all that follows through the period at the 
     end, and inserting ``years, $375,000,000.''.
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.
       On page 1009, after line 11, add the following:

     SEC. 122___. AMERICAN REINVESTMENT AND RECOVERY ACT OF 2009 
                   SUNSET.

       (a) In General.--Section 101(a)(2) of title I of division A 
     of the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111 5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is 
     amended by striking ``October 31, 2013'' and inserting ``June 
     30, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.
                                 ______
                                 
  SA 2378. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 1009, after line 11, add the following:

     SEC. 122___. AMERICAN REINVESTMENT AND RECOVERY ACT OF 2009 
                   SUNSET.

       (a) In General.--Section 101(a)(2) of title I of division A 
     of the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111 5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is 
     amended by striking ``October 31, 2013'' and inserting ``June 
     30, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall--
       (1) take effect on the date of enactment of this Act; and
       (2) only apply to certification periods that begin on or 
     after that date.
                                 ______
                                 
  SA 2379. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike section 1602 and insert the following:

     SEC. 1602. REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.

       (a) Agricultural Adjustment Act of 1938.--The following 
     provisions of the Agricultural Adjustment Act of 1938 are 
     repealed:
       (1) Parts II through V of subtitle B of title III (7 U.S.C. 
     1326 et seq.).
       (2) 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 are repealed:
       (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) Certain Quota Provisions.--The joint resolution 
     entitled ``A joint resolution relating to corn and wheat 
     marketing quotas under the Agricultural Adjustment Act of 
     1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 
     1340), is repealed.
       (d) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.
                                 ______
                                 
  SA 2380. Mr. CRAPO submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title VIII, insert the following:

     SEC. 83__. EXEMPTION FROM PERMITTING REQUIREMENTS FOR 
                   SILVICULTURAL ROADS.

       Notwithstanding any other provision of law, the 
     Administrator of the Environmental Protection Agency shall 
     not require a permit under section 402 of the Federal Water 
     Pollution Control Act (33 U.S.C. 1342) or, either directly or 
     indirectly, require any State to require a permit for 
     discharges of stormwater runoff from--
       (1) roads, the construction, use, or maintenance of which 
     are associated with silvicultural activities; or
       (2) other silvicultural activities, including nursery 
     operations, site preparation, reforestation and subsequent 
     cultural treatment, thinning, prescribed burning, pest and 
     fire control, harvesting operations, or surface drainage.
                                 ______
                                 
  SA 2381. Mr. MERKLEY submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1009, after line 11, insert the following:

     SEC. 122__. ASSISTANCE FOR FARMERS IMPACTED BY CANADA GEESE.

       (a) Assistance for Landowners With Cropland Damaged by 
     Canada Geese.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary, acting through the 
     Administrator of the Animal and Plant Health Inspection 
     Service, shall prepare and submit a report to Congress that 
     contains an assessment of the resources needed to direct 
     adequate personnel and equipment to assist landowners whose 
     cropland is damaged by Canada geese.
       (2) Early action.--The Secretary, acting through the 
     Administrator of the Animal and Plant Health Inspection 
     Service and the Director of Wildlife Services, as applicable, 
     shall, to the extent practicable, direct more personnel and 
     equipment to respond to landowner requests for assistance 
     with respect to cropland that is being damaged by Canada 
     geese.
       (b) Study on the Economic Impacts of Canada Geese.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the National 
     Agricultural Statistics Service (referred to in this section 
     as ``the Administrator'') shall begin development of a study 
     to gather data and determine the economic impact of migratory 
     geese on farms located in significantly impacted States, as 
     determined by the Administrator.
       (2) Initiation and duration.--The Administrator shall--
       (A) initiate the migratory geese study described in 
     paragraph (1) not later than 180 days after the date of 
     enactment of this Act; and
       (B) complete the study not later than 18 months after the 
     date of enactment of this Act.
       (3) Considerations.--The study conducted under this section 
     shall consider--
       (A) the effects migratory geese have on crop yields in any 
     significantly impacted States, including the annual estimated 
     loss for those States;
       (B) which commodities are most affected by goose 
     depredation;
       (C) which areas within the impacted States are most 
     affected by goose depredation; and
       (D) the overall economic impact on Federal, State, and 
     local income as a result of goose depredation.
       (4) Report.--
       (A) In general.--After completion of the migratory geese 
     study conducted under this section, the Administrator shall 
     prepare and submit a report on the findings of the study to--
       (i) the Director of the United States Fish and Wildlife 
     Service; and
       (ii) Congress.
       (B) Availability.--The Administrator shall make the report 
     described in paragraph (1) available to the public.
                                 ______
                                 
  SA 2382. Mr. MERKLEY (for himself, Mrs. Feinstein, Mr. Sanders, and 
Mr. Kerry) submitted an amendment intended to be proposed by him to the 
bill S. 3240, to reauthorize agricultural programs through 2017, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 970, between lines 5 and 6, insert the following:

[[Page S3999]]

     SEC. 11019. CROP INSURANCE FOR ORGANIC CROPS.

       (a) In General.--Section 508(c)(6) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(c)(6)) is amended by adding at 
     the end the following:
       ``(D) Organic crops.--
       ``(i) In general.--As soon as possible, but not later than 
     the 2015 reinsurance year, the Corporation shall offer 
     producers of organic crops price elections for all organic 
     crops produced in compliance with standards issued by the 
     Department of Agriculture under the national organic program 
     established under the Organic Foods Production Act of 1990 (7 
     U.S.C. 6501 et seq.) that reflect the actual retail or 
     wholesale prices, as appropriate, received by producers for 
     organic crops, as determined by the Secretary using all 
     relevant sources of information.
       ``(ii) Annual report.--The Corporation shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report on progress made in developing and 
     improving Federal crop insurance for organic crops, 
     including--

       ``(I) the numbers and varieties of organic crops insured;
       ``(II) the progress of implementing the price elections 
     required under this subparagraph, including the rate at which 
     additional price elections are adopted for organic crops;
       ``(III) the development of new insurance approaches 
     relevant to organic producers; and
       ``(IV) any recommendations the Corporation considers 
     appropriate to improve Federal crop insurance coverage for 
     organic crops.''.

       (b) Conforming Amendment.--Section 522(c) of the Federal 
     Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 
     11018) is amended--
       (1) by striking paragraph (10); and
       (2) by redesignating paragraphs (11) through (20) as 
     paragraphs (10) through (19), respectively.
                                 ______
                                 
  SA 2383. Mr. COCHRAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, add the following:

     SEC. 122___. AUTHORIZATION OF CONVEYANCE OF CERTAIN LAND TO 
                   THE VICKSBURG NATIONAL MILITARY PARK.

       (a) Acquisition of Land.--
       (1) In general.--The Secretary of the Interior (referred to 
     in this Act as the ``Secretary'') may acquire the land or any 
     interests in land within the area identified as ``Modified 
     Core Battlefield'' for the Port Gibson Unit, the Champion 
     Hill Unit, and the Raymond Unit as generally depicted on the 
     map entitled ``Vicksburg National Military Park Proposed 
     Battlefield Additions'', numbered 306/100986, and dated 
     October 2010.
       (2) Methods of acquisition.--Land and interests in land may 
     be acquired under paragraph (1) by donation, purchase from a 
     willing seller with donated or appropriated funds, or 
     exchange, except that land owned by the State of Mississippi 
     or any political subdivision of the State may be acquired 
     only by donation.
       (b) Availability of Map.--The map described in subsection 
     (a)(1) shall be on file and available for public inspection 
     in the appropriate offices of the National Park Service.
       (c) Boundary Adjustment.--On the acquisition of land by the 
     Secretary under this section--
       (1) the acquired land shall be added to the Vicksburg 
     National Military Park;
       (2) the boundary of the Vicksburg National Military Park 
     shall be adjusted to reflect the acquisition of the land; and
       (3) the acquired land shall be administered as part of the 
     Vicksburg National Military Park in accordance with 
     applicable laws (including regulations).
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
                                 ______
                                 
  SA 2384. Mr. CARDIN (for himself, Mr. Carper, Mr. Casey, Mr. Coons, 
Ms. Mikulski, Mr. Rockefeller, Mr. Warner, and Mr. Webb) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 246, strike line 7, and insert the 
     following:
     ``quantity strategies.
       ``(d) Funding.--The Secretary shall ensure that the total 
     amounts made available under this subtitle to geographical 
     areas designated under this section are not less than the 
     amounts those geographical areas would have received under 
     title XII of the Food Security Act of 1985 (as in effect on 
     the day before the date of enactment of this Act).''.
                                 ______
                                 
  SA 2385. Mr. TESTER submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 880, between lines 3 and 4, insert the following:

                       Subtitle E--Cabin Fee Act

     SEC. 8401. SHORT TITLE.

       This subtitle may be cited as the ``Cabin Fee Act of 
     2012''.

     SEC. 8402. DEFINITIONS.

       In this subtitle:
       (1) Authorization; authorize.--The terms ``authorization'' 
     and ``authorize'' mean the issuance of a special use permit 
     for the use and occupancy of National Forest System land by a 
     cabin owner under the Recreation Residence Program.
       (2) Cabin.--The term ``cabin'' means a privately built and 
     owned recreation residence and related improvements on 
     National Forest System land that--
       (A) is authorized for private use and occupancy; and
       (B) may be sold or transferred between private parties.
       (3) Cabin owner.--The term ``cabin owner'' means--
       (A) a person authorized by the Secretary to use and to 
     occupy a cabin; and
       (B) a trust, heir, or assign of a person described in 
     subparagraph (A).
       (4) Cabin transfer fee.--The term ``cabin transfer fee'' 
     means a fee that is paid to the United States on the transfer 
     of a cabin between private parties for money or other 
     consideration that results in the issuance of a new permit.
       (5) Cabin user fee.--The term ``cabin user fee'' means an 
     annual fee paid to the United States by a cabin owner in 
     accordance with an authorization for the use and occupancy of 
     a cabin.
       (6) Current appraisal cycle.--The term ``current appraisal 
     cycle'' means the completion of Forest Service review and 
     acceptance of--
       (A) initial typical lot appraisals; or
       (B) second appraisals, if ordered by cabin owners and 
     approved by the Forest Service.
       (7) Current cabin user fee.--The term ``current cabin user 
     fee'' means the most recent cabin user fee, as adjusted under 
     section 8403(c).
       (8) Lot.--The term ``lot'' means a parcel of National 
     Forest System land on which a person is authorized to build, 
     use, occupy, and maintain a cabin.
       (9) National forest system land.--The term ``National 
     Forest System land'' means National Forest System land 
     derived from the public domain.
       (10) Recreation residence program.--The term ``Recreation 
     Residence Program'' means the Recreation Residence Program 
     established under the last paragraph under the heading 
     ``Forest service'' in the Act of March 4, 1915 (16 U.S.C. 
     497).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Chief of the Forest 
     Service.
       (12) Typical lot.--The term ``typical lot'' means a cabin 
     lot, or group of cabin lots, in a tract that is selected for 
     use in an appraisal as being representative of, and that has 
     similar value characteristics as, other lots or groups of 
     lots within the tract.

     SEC. 8403. CABIN USER FEES.

       (a) Payment of Cabin User Fees.--Cabin owners shall pay an 
     annual cabin user fee established by the Secretary in 
     accordance with this section.
       (b) Initial Cabin User Fees.--
       (1) Establishment.--The Secretary shall establish initial 
     cabin user fees in accordance with this subsection.
       (2) Assignment to value tiers.--On completion of the 
     current appraisal cycle, as required by paragraph (4), the 
     Secretary shall assign each permitted lot on National Forest 
     System land to 1 of 9 tiers based on the following 
     considerations:
       (A) Before assigning the lots to tiers, all appraised lot 
     values shall be adjusted, or normalized, for price changes 
     occurring after the appraisal, in accordance with the 
     National Association of Homebuilders/Wells Fargo Housing 
     Opportunity Index.
       (B) Second appraisal values that are not rejected by the 
     Forest Service shall supersede initial lot appraisal values 
     for the normalization and ranking process under subparagraph 
     (A).
       (C) The tiers shall be established, on a national basis, 
     according to relative lot value, with lots having the lowest 
     adjusted appraised value assigned to tier 1 and lots having 
     the highest adjusted appraised value assigned to tier 9.
       (D) The number of lots (by percentage) assigned to each 
     tier is contained in the table set forth in paragraph (3).
       (E) Data from incomplete appraisals may not be used to 
     establish the fee tiers under this subsection.
       (F) Until assigned to a tier under this subsection, the 
     Secretary shall assess an interim fee for permitted cabin 
     lots (including lots with incomplete appraisals), which shall 
     be an amount equal to the lesser of--
       (i) $4,500; or
       (ii) the amount of the current cabin user fee, increased by 
     25 percent.
       (3) Amount of initial cabin user fees.--The initial cabin 
     user fees, based on the assignments under paragraph (2), are 
     as follows:


------------------------------------------------------------------------
                         Approximate Percent of
       Fee Tier            Permits Nationally            Fee Amount
------------------------------------------------------------------------
         Tier 1                   8 percent                   $500
------------------------------------------------------------------------
         Tier 2                  12 percent                 $1,000
------------------------------------------------------------------------

[[Page S4000]]

 
         Tier 3                  12 percent                 $1,500
------------------------------------------------------------------------
         Tier 4                  14 percent                 $2,000
------------------------------------------------------------------------
         Tier 5                  14 percent                 $2,500
------------------------------------------------------------------------
         Tier 6                  14 percent                 $3,000
------------------------------------------------------------------------
         Tier 7                  11 percent                 $3,500
------------------------------------------------------------------------
         Tier 8                   8 percent                 $4,000
------------------------------------------------------------------------
         Tier 9                   7 percent                $4,500.
------------------------------------------------------------------------

       (4) Deadline for completion of current appraisal cycle.--
     Not later than 3 years after the date of enactment of this 
     Act, the Secretary shall complete the current appraisal 
     cycle.
       (5) Effective date.--The initial cabin user fees required 
     by this subsection shall take effect beginning with the first 
     calendar year beginning after the completion of the current 
     appraisal cycle.
       (c) Annual Adjustments of Cabin User Fee.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall use changes in the Implicit Price Deflator for the 
     Gross Domestic Product published by the Bureau of Economic 
     Analysis of the Department of Commerce, applied on a 5-year 
     rolling average, to assess an annual adjustment to cabin user 
     fees.
       (2) Limitations.--Notwithstanding paragraph (1), cabin user 
     fees established under this section shall be increased by not 
     more than 25 percent in an annual adjustment under paragraph 
     (a).
       (d) Effect of Destruction, Substantial Damage, or Loss of 
     Access.--
       (1) In general.--The Secretary shall reduce the cabin user 
     fee to $100 per year for a cabin if--
       (A) the cabin is destroyed or suffers substantial damage in 
     an amount that is greater than 50 percent of replacement cost 
     of the cabin; or
       (B) access to the cabin is significantly impaired, whether 
     by catastrophic events, natural causes, or governmental 
     actions, which results in the cabin being rendered unsafe or 
     unable to be occupied.
       (2) Term of reduced fee.--The reduced fee under paragraph 
     (1) shall be in effect until the later of--
       (A) the last day of the year in which the destruction or 
     impairment occurs; or
       (B) the date on which the cabin may be lawfully reoccupied 
     and normal access has been restored.

     SEC. 8404. CABIN TRANSFER FEES.

       (a) Payment of Cabin Transfer Fees.--In conjunction with 
     the transfer of ownership of any cabin and the issuance of a 
     new permit, the cabin owner transferring the cabin shall file 
     with the Secretary a sworn statement declaring the amount of 
     money or other value received, if any, for the transfer of 
     the cabin.
       (b) Amount.--As a condition of the issuance by the 
     Secretary of a new authorization for the use and occupancy of 
     the cabin, the cabin owner transferring the cabin shall pay 
     to the Secretary a cabin transfer fee in an amount determined 
     as follows:


------------------------------------------------------------------------
 Consideration Received by Transfer          Transfer Fee Amount
------------------------------------------------------------------------
$0 to $250,000                       $1,000
------------------------------------------------------------------------
$250,000.01 to $500,000.00           $1,000 plus 5 percent of
                                      consideration in excess of
                                      $250,000 up to $500,000
------------------------------------------------------------------------
$500,000.01 and above                $1,000 plus 5 percent of
                                      consideration in excess of
                                      $250,000 up to $500,000 plus 10
                                      percent of consideration in excess
                                      of $500,000.
------------------------------------------------------------------------

       (c) Index.--The Secretary shall use changes in the Implicit 
     Price Deflator for the Gross Domestic Product published by 
     the Bureau of Economic Analysis of the Department of 
     Commerce, applied on a 5-year rolling average, to determine 
     and apply an annual adjustment to the cabin transfer fee 
     threshold amounts set forth in the table contained in 
     subsection (b).

     SEC. 8405. RIGHT OF APPEAL AND JUDICIAL REVIEW.

       (a) Right of Appeal.--
       (1) In general.--Notwithstanding any action of a cabin 
     owner to exercise rights in accordance with section 8406, the 
     Secretary shall by regulation grant to the cabin owner the 
     right to an administrative appeal of the determination of a 
     new cabin user fee, fee tier, cabin transfer fee, or whether 
     or not to reduce a cabin user fee under section 8403(d).
       (2) Applicable law.--An appeal under paragraph (1) shall be 
     pursuant to the appeal process provided under subpart C of 
     part 251 of title 36, Code of Federal Regulations (or a 
     successor regulation).
       (b) Judicial Review.--
       (1) In general.--A cabin owner that contests a final 
     decision of the Secretary under this subtitle may bring a 
     civil action in United States district court.
       (2) Venue.--The venue for an action brought before the 
     United States district court under this subsection shall be 
     in the Federal judicial district in which the cabin is 
     located or the permit holder resides.
       (3) Effect on mediation.--Nothing in this subtitle 
     precludes a person from seeking mediation for an action under 
     this subtitle.

     SEC. 8406. EFFECT.

       (a) In General.--Nothing in this subtitle limits or 
     restricts any right, title, or interest of the United States 
     in or to any land or resource.
       (b) Special Rule for Alaska.--In determining a cabin user 
     fee in the State of Alaska, the Secretary shall not establish 
     or impose a cabin user fee or a condition affecting a cabin 
     user fee that is inconsistent with 1303(d) of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3193(d)).

     SEC. 8407. REGULATIONS.

       Not later than December 31, 2012, the Secretary shall issue 
     regulations to carry out this subtitle.
                                 ______
                                 
  SA 2386. Mr. SANDERS (for himself and Mr. Leahy) submitted an 
amendment intended to be proposed by him to the bill S. 3240, to 
reauthorize agricultural programs through 2017, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 361, between lines 8 and 9, insert the following:

     SEC. 4208. DEPARTMENT OF DEFENSE FRESH PROGRAM.

       Section 10603(b) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 612c 4(b)) (as amended by section 4201) 
     is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (2) by adding at the end the following:
       ``(2) Local and regional purchase.--In purchasing fresh 
     fruits and vegetables under paragraph (1), the Secretary 
     shall, to the maximum extent practicable, provide locally and 
     regionally grown produce to schools and service institutions.
       ``(3) Data tracking.--The Secretary of Agriculture, in 
     conjunction with the Secretary of Defense in carrying out the 
     fresh fruit and vegetable program of the Department of 
     Defense, shall--
       ``(A) track annual data on--
       ``(i) each State and county from which fresh fruits and 
     vegetables are purchased; and
       ``(ii) each State and county in which is located a school 
     or service institution to which the purchased commodities and 
     products are distributed; and
       ``(B) prepare an annual report that describes the volume, 
     types of fruits and vegetables, purchase price, minimal 
     processing, and percent of total purchases of commodities and 
     products that are procured by the Department of Defense and 
     provided to schools and service institutions locally and 
     regionally.
       ``(4) Department of defense program operation.--A school or 
     service institution described in paragraph (1) may carry out 
     this section by--
       ``(A) electing to participate in the fresh fruit and 
     vegetable program of the Department of Defense;
       ``(B) under such terms and conditions as the Secretary 
     shall establish, purchasing unprocessed or minimally 
     processed locally and regionally produced fruits and 
     vegetables with amounts that would have been used by the 
     school or service institution to participate in the fresh 
     fruit and vegetable program of the Department of Defense; or
       ``(C) carrying out a combination of the activities 
     described in subparagraphs (A) and (B).
       ``(5) Report to congress.--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 containing--
       ``(A) the information and report described in paragraph 
     (3); and
       ``(B) annual information on the number of schools and 
     service institutions described in paragraph (4).''.
                                 ______
                                 
  SA 2387. Mr. BOOZMAN submitted an amendment intended to be proposed 
by him to the bill S. 3240, to reauthorize agricultural programs 
through 2017, and for other purposes; which was ordered to lie on the 
table; as follows:

       In section 9007(a)(1)--
       (1) redesignate subparagraphs (A) and (B) as subparagraphs 
     (B) and (C), respectively; and
       (2) before subparagraph (B) (as so redesignated), insert 
     the following:

[[Page S4001]]

       (A) in subsection (a), by inserting ``(other than to 
     construct, fund, install, or operate an ethanol blender 
     pump)'' after ``businesses'';
                                 ______
                                 
  SA 2388. Mr. WYDEN submitted an amendment intended to be proposed by 
him to the bill S. 3240, to reauthorize agricultural programs through 
2017, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 360, after line 24, add the following:

     SEC. 4207. PURCHASES OF LOCALLY PRODUCED FOODS.

       Section 9(j) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(j)) is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     the subparagraphs appropriately;
       (2) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'';
       (3) in paragraph (1) (as so redesignated)--
       (A) in subparagraph (B)--
       (i) by striking ``paragraph (1) of the policy described in 
     that paragraph and paragraph (3)'' and inserting 
     ``subparagraph (A) of the policy described in that 
     subparagraph and subparagraph (C)''; and
       (ii) by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) not later than 1 year after the date of enactment of 
     this subparagraph, in accordance with paragraphs (2) and (3), 
     conduct not fewer than 5 demonstration projects through 
     school food authorities receiving funds under this Act and 
     the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
     facilitate the purchase of unprocessed and minimally 
     processed locally grown and locally raised agricultural 
     products.''; and
       (4) by adding at the end the following:
       ``(2) Selection.--In conducting demonstration projects 
     under paragraph (1)(D), the Secretary shall ensure that at 
     least 1 project is located in a State in each of--
       ``(A) the Pacific Northwest Region;
       ``(B) the Northeast Region;
       ``(C) the Western Region;
       ``(D) the Midwest Region; and
       ``(E) the Southern Region.
       ``(3) Priority.--In selecting States for participation in 
     the demonstration projects under paragraph (2), the Secretary 
     shall prioritize applications based on--
       ``(A) the quantity and variety of growers of local fruits 
     and vegetables in the State;
       ``(B) the demonstrated commitment of the State to farm-to-
     school efforts, as evidenced by prior efforts to increase and 
     promote farm-to- school programs in the State; and
       ``(C) whether the State contains a sufficient quantity of 
     school districts of varying population sizes and geographical 
     locations.''.
                                 ______
                                 
  SA 2389. Mr. REID (for Ms. Stabenow (for herself and Mr. Roberts)) 
proposed an amendment to the bill S. 3240, to reauthorize agricultural 
programs through 2017, and for other purposes; as follows:

       Beginning on page 14, strike line 10 and all that follows 
     through page 1000, line 2, and insert the following:
       (7) Eligible acres.--
       (A) In general.--Except as provided in subparagraphs (B) 
     through (D), the term ``eligible acres'' means all acres 
     planted or prevented from being planted to all covered 
     commodities on a farm in any crop year.
       (B) Maximum.--Except as provided in (C), the total quantity 
     of eligible acres on a farm determined under subparagraph (A) 
     shall not exceed the average total acres planted or prevented 
     from being planted to covered commodities and upland cotton 
     on the farm for the 2009 through 2012 crop years, as 
     determined by the Secretary.
       (C) Adjustment.--The Secretary shall provide for an 
     adjustment, as appropriate, in the eligible acres for covered 
     commodities for a farm if any of the following circumstances 
     occurs:
       (i) If a conservation reserve contract for a farm in a 
     county entered into under section 1231 of the Food Security 
     Act of 1985 (16 U.S.C. 3831) expires or is voluntarily 
     terminated or cropland is released from coverage under a 
     conservation reserve contract, the Secretary shall provide 
     for an adjustment, as appropriate, in the eligible acres for 
     the farm to a total quantity that is the higher of--

       (I) the total base acreage for the farm, less any upland 
     cotton base acreage, that was suspended during the 
     conservation reserve contract; or
       (II) the product obtained by multiplying--

       (aa) the average proportion that--
       (AA) the total number of acres planted to covered 
     commodities and upland cotton in the county for crop years 
     2009 through 2012; bears to
       (BB) the total number of all acres of covered commodities, 
     grassland, and upland cotton acres in the county for the same 
     crop years; by
       (bb) the total acres for which coverage has expired, 
     voluntarily terminated, or been released under the 
     conservation reserve contract.
       (ii) The producer has eligible oilseed acreage as the 
     result of the Secretary designating additional oilseeds, 
     which shall be determined in the same manner as eligible 
     oilseed acreage under section 1101(a)(1)(D) of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 
     8711(a)(1)(D)).
       (iii) The producer has any acreage not cropped during the 
     2009 through 2012 crop years, but placed into an established 
     rotation practice for the purposes of enriching land or 
     conserving moisture for subsequent crop years, including 
     summer fallow, as determined by the Secretary.
       (D) Exclusion.--The term ``eligible acres'' does not 
     include any crop subsequently planted during the same crop 
     year on the same land for which the first crop is eligible 
     for payments under this subtitle, unless the crop was planted 
     in an area approved for double cropping, as determined by the 
     Secretary.
       (8) Extra long staple cotton.--The term ``extra long staple 
     cotton'' means cotton that--
       (A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid of the species, or other 
     similar types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       (B) is ginned on a roller-type gin or, if authorized by the 
     Secretary, ginned on another type gin for experimental 
     purposes.
       (9) Individual coverage.--For purposes of agriculture risk 
     coverage under section 1105, the term ``individual coverage'' 
     means coverage determined using the total quantity of all 
     acreage in a county of the covered commodity that is planted 
     or prevented from being planted for harvest by a producer 
     with the yield determined by the average individual yield of 
     the producer described in subsection (c) of that section.
       (10) Medium grain rice.--The term ``medium grain rice'' 
     includes short grain rice.
       (11) Midseason price.--The term ``midseason price'' means 
     the applicable national average market price received by 
     producers for the first 5 months of the applicable marketing 
     year, as determined by the Secretary.
       (12) Other oilseed.--The term ``other oilseed'' means a 
     crop of sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, crambe, sesame seed, or any oilseed 
     designated by the Secretary.
       (13) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that shares in 
     the risk of producing a crop and is entitled to share in the 
     crop available for marketing from the farm, or would have 
     shared had the crop been produced.
       (B) Hybrid seed.--In determining whether a grower of hybrid 
     seed is a producer, the Secretary shall--
       (i) not take into consideration the existence of a hybrid 
     seed contract; and
       (ii) ensure that program requirements do not adversely 
     affect the ability of the grower to receive a payment under 
     this title.
       (14) Pulse crop.--The term ``pulse crop'' means dry peas, 
     lentils, small chickpeas, and large chickpeas.
       (15) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (16) Transitional yield.--The term ``transitional yield'' 
     has the meaning given the term in section 502(b) of the 
     Federal Crop Insurance Act (7 U.S.C. 1502(b)).
       (17) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.
       (18) United states premium factor.--The term ``United 
     States Premium Factor'' means the percentage by which the 
     difference in the United States loan schedule premiums for 
     Strict Middling (SM) 1\1/8\-inch upland cotton and for 
     Middling (M) 1\3/32\-inch upland cotton exceeds the 
     difference in the applicable premiums for comparable 
     international qualities.

     SEC. 1105. AGRICULTURE RISK COVERAGE.

       (a) Payments Required.--If the Secretary determines that 
     payments are required under subsection (c), the Secretary 
     shall make payments for each covered commodity available to 
     producers in accordance with this section.
       (b) Coverage Election.--
       (1) In general.--For the period of crop years 2013 through 
     2017, the producers shall make a 1-time, irrevocable election 
     to receive--
       (A) individual coverage under this section, as determined 
     by the Secretary; or
       (B) in the case of a county with sufficient data (as 
     determined by the Secretary), county coverage under this 
     section.
       (2) Effect of election.--The election made under paragraph 
     (1) shall be binding on the producers making the election, 
     regardless of covered commodities planted, and applicable to 
     all acres under the operational control of the producers, in 
     a manner that--
       (A) acres brought under the operational control of the 
     producers after the election are included; and
       (B) acres no longer under the operational control of the 
     producers after the election are no longer subject to the 
     election of the producers but become subject to the election 
     of the subsequent producers.

[[Page S4002]]

       (3) Duties of the secretary.--The Secretary shall ensure 
     that producers are precluded from taking any action, 
     including reconstitution, transfer, or other similar action, 
     that would have the effect of altering or reversing the 
     election made under paragraph (1).
       (c) Agriculture Risk Coverage.--
       (1) Payments.--The Secretary shall make agriculture risk 
     coverage payments available under this subsection for each of 
     the 2013 through 2017 crop years if the Secretary determines 
     that--
       (A) the actual crop revenue for the crop year for the 
     covered commodity; is less than
       (B) the agriculture risk coverage guarantee for the crop 
     year for the covered commodity.
       (2) Time for payments.--If the Secretary determines under 
     this subsection that agriculture risk coverage payments are 
     required to be made for the covered commodity, the 
     agriculture risk coverage payments shall be made as soon as 
     practicable thereafter.
       (3) Actual crop revenue.--The amount of the actual crop 
     revenue for a crop year of a covered commodity shall be equal 
     to the product obtained by multiplying--
       (A)(i) in the case of individual coverage, the actual 
     average individual yield for the covered commodity, as 
     determined by the Secretary; or
       (ii) in the case of county coverage, the actual average 
     yield for the county for the covered commodity, as determined 
     by the Secretary; and
       (B) the higher of--
       (i) the midseason price; or
       (ii) if applicable, the national marketing assistance loan 
     rate for the covered commodity under subtitle B.
       (4) Agriculture risk coverage guarantee.--
       (A) In general.--The agriculture risk coverage guarantee 
     for a crop year for a covered commodity shall equal 89 
     percent of the benchmark revenue.
       (B) Benchmark revenue.--
       (i) In general.--The benchmark revenue shall be the product 
     obtained by multiplying--

       (I)(aa) in the case of individual coverage, subject to 
     clause (ii), the average individual yield, as determined by 
     the Secretary, for the most recent 5 crop years, excluding 
     each of the crop years with the highest and lowest yields; or
       (bb) in the case of county coverage, the average county 
     yield, as determined by the Secretary, for the most recent 5 
     crop years, excluding each of the crop years with the highest 
     and lowest yields; and
       (II) subject to clause (iii), the average national 
     marketing year average price for the most recent 5 crop 
     years, excluding each of the crop years with the highest and 
     lowest prices.

       (ii) Use of transitional yields.--If the yield determined 
     under clause (i)(I)(aa)--

       (I) for the 2012 crop year or any prior crop year, is less 
     than 60 percent of the applicable transitional yield, the 
     Secretary shall use 60 percent of the applicable transitional 
     yield for that crop year; and
       (II) for the 2013 crop year and any subsequent crop year, 
     is less than 70 percent of the applicable transitional yield, 
     the Secretary shall use 70 percent of the applicable 
     transitional yield for that crop year.

       (iii) Special rule for rice and peanuts.--If the national 
     marketing year average price under clause (i)(II) for any of 
     the applicable crop years is lower than the price for the 
     covered commodity listed below, the Secretary shall use the 
     following price for that crop year:

       (I) For long grain rice, $13.00 per hundredweight.
       (II) For medium grain rice, $13.00 per hundredweight.
       (III) For peanuts, $530.00 per ton.

       (5) Payment rate.--The payment rate for each covered 
     commodity shall be equal to the lesser of--
       (A) the amount that--
       (i) the agriculture risk coverage guarantee for the covered 
     commodity; exceeds
       (ii) the actual crop revenue for the crop year of the 
     covered commodity; or
       (B) 10 percent of the benchmark revenue for the crop year 
     of the covered commodity.
       (6) Payment amount.--If agriculture risk coverage payments 
     under this subsection are required to be paid for any of the 
     2013 through 2017 crop years of a covered commodity, the 
     amount of the agriculture risk coverage payment for the crop 
     year shall be equal to the product obtained by multiplying--
       (A) the payment rate under paragraph (5); and
       (B)(i) in the case of individual coverage the sum of--
       (I) 65 percent of the planted eligible acres of the covered 
     commodity; and
       (II) 45 percent of the eligible acres that were prevented 
     from being planted to the covered commodity; or
       (ii) in the case of county coverage--
       (I) 80 percent of the planted eligible acres of the covered 
     commodity; and
       (II) 45 percent of the eligible acres that were prevented 
     from being planted to the covered commodity.
       (7) Duties of the secretary.--In carrying out the program 
     under this subsection, the Secretary shall--
       (A) to the maximum extent practicable, use all available 
     information and analysis to check for anomalies in the 
     determination of payments under the program;
       (B) to the maximum extent practicable, calculate a separate 
     actual crop revenue and agriculture risk coverage guarantee 
     for irrigated and nonirrigated covered commodities;
       (C) differentiate by type or class the national average 
     price of--
       (i) sunflower seeds;
       (ii) barley, using malting barley values; and
       (iii) wheat; and
       (D) assign a yield for each acre planted or prevented from 
     being planted for the crop year for the covered commodity on 
     the basis of the yield history of representative farms in the 
     State, region, or crop reporting district, as determined by 
     the Secretary, if the Secretary cannot establish the yield as 
     determined under paragraph (3)(A)(ii) or (4)(B)(i) or if the 
     yield determined under paragraph (3)(A)(ii) or (4) is an 
     unrepresentative average yield for the covered commodity as 
     determined by the Secretary.

     SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF 
                   PROVISION OF PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive agriculture risk coverage payments, the producers 
     shall agree, during the crop year for which the payments are 
     made and in exchange for the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to use the land on the farm for an agricultural or 
     conserving use in a quantity equal to the attributable 
     eligible acres of the farm, and not for a nonagricultural 
     commercial, industrial, or residential use, as determined by 
     the Secretary; and
       (D) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary, if the 
     agricultural or conserving use involves the noncultivation of 
     any portion of the land referred to in subparagraph (C).
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of this 
     subsection if the modifications are consistent with the 
     objectives of this subsection, as determined by the 
     Secretary.
       (b) Transfer or Change of Interest in Farm.--
       (1) Termination.--
       (A) In general.--Except as provided in paragraph (2), a 
     transfer of (or change in) the interest of the producers on a 
     farm for which agriculture risk coverage payments are made 
     shall result in the termination of the agriculture risk 
     coverage payments, unless the transferee or owner of the 
     acreage agrees to assume all obligations under subsection 
     (a).
       (B) Effective date.--The termination shall take effect on 
     the date determined by the Secretary.
       (2) Exception.--If a producer entitled to an agriculture 
     risk coverage payment dies, becomes incompetent, or is 
     otherwise unable to receive the payment, the Secretary shall 
     make the payment, in accordance with rules issued by the 
     Secretary.
       (c) Reports.--
       (1) Acreage reports.--As a condition on the receipt of any 
     benefits under this subtitle or subtitle B, the Secretary 
     shall require producers on a farm to submit to the Secretary 
     annual acreage reports with respect to all cropland on the 
     farm.
       (2) Production reports.--As a condition on the receipt of 
     any benefits under section 1105, the Secretary shall require 
     producers on a farm to submit to the Secretary annual 
     production reports with respect to all covered commodities 
     produced on the farm.
       (3) Penalties.--No penalty with respect to benefits under 
     this subtitle or subtitle B shall be assessed against the 
     producers on a farm for an inaccurate acreage or production 
     report unless the producers on the farm knowingly and 
     willfully falsified the acreage or production report.
       (4) Data reporting.--To the maximum extent practicable, the 
     Secretary shall use data reported by the producer pursuant to 
     requirements under the Federal Crop Insurance Act (7 U.S.C. 
     1501 et seq.) to meet the obligations described in paragraphs 
     (1) and (2), without additional submissions to the 
     Department.
       (d) Tenants and Sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.

     SEC. 1107. PERIOD OF EFFECTIVENESS.

       Sections 1104 through 1106 shall be effective beginning 
     with the 2013 crop year of each covered commodity through the 
     2017 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

     SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS FOR LOAN COMMODITIES.

       (a) Definition of Loan Commodity.--In this subtitle, the 
     term ``loan commodity'' means wheat, corn, grain sorghum, 
     barley, oats, upland cotton, extra long staple cotton, long 
     grain rice, medium grain rice, peanuts, soybeans, other 
     oilseeds, graded wool, nongraded wool, mohair, honey, dry 
     peas, lentils, small chickpeas, and large chickpeas.

[[Page S4003]]

       (b) Nonrecourse Loans Available.--
       (1) In general.--For each of the 2013 through 2017 crops of 
     each loan commodity, the Secretary shall make available to 
     producers on a farm nonrecourse marketing assistance loans 
     for loan commodities produced on the farm.
       (2) Terms and conditions.--The marketing assistance loans 
     shall be made under terms and conditions that are prescribed 
     by the Secretary and at the loan rate established under 
     section 1202 for the loan commodity.
       (c) Eligible Production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under subsection (b) 
     for any quantity of a loan commodity produced on the farm.
       (d) Compliance With Conservation and Wetlands 
     Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive a marketing assistance loan or any other payment or 
     benefit under this subtitle, the producers shall agree, for 
     the crop year for which the payments are made and in exchange 
     for the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to use the land on the farm for an agricultural or 
     conserving use in a quantity equal to the attributable 
     eligible acres of the farm, and not for a nonagricultural 
     commercial, industrial, or residential use, as determined by 
     the Secretary; and
       (D) to effectively control noxious weeds and otherwise 
     maintain the land in accordance with sound agricultural 
     practices, as determined by the Secretary, if the 
     agricultural or conserving use involves the noncultivation of 
     any portion of the land referred to in subparagraph (C).
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with paragraph (1).
       (3) Modification.--At the request of a transferee or owner, 
     the Secretary may modify the requirements of this subsection 
     if the modifications are consistent with the purposes of this 
     subsection, as determined by the Secretary.
       (e) Special Rules for Peanuts.--
       (1) In general.--This subsection shall apply only to 
     producers of peanuts.
       (2) Options for obtaining loan.--A marketing assistance 
     loan under this section, and loan deficiency payments under 
     section 1205, may be obtained at the option of the producers 
     on a farm through--
       (A) a designated marketing association or marketing 
     cooperative of producers that is approved by the Secretary; 
     or
       (B) the Farm Service Agency.
       (3) Storage of loan peanuts.--As a condition on the 
     approval by the Secretary of an individual or entity to 
     provide storage for peanuts for which a marketing assistance 
     loan is made under this section, the individual or entity 
     shall agree--
       (A) to provide the storage on a nondiscriminatory basis; 
     and
       (B) to comply with such additional requirements as the 
     Secretary considers appropriate to accomplish the purposes of 
     this section and promote fairness in the administration of 
     the benefits of this section.
       (4) Storage, handling, and associated costs.--
       (A) In general.--To ensure proper storage of peanuts for 
     which a loan is made under this section, the Secretary shall 
     pay handling and other associated costs (other than storage 
     costs) incurred at the time at which the peanuts are placed 
     under loan, as determined by the Secretary.
       (B) Redemption and forfeiture.--The Secretary shall--
       (i) require the repayment of handling and other associated 
     costs paid under subparagraph (A) for all peanuts pledged as 
     collateral for a loan that is redeemed under this section; 
     and
       (ii) pay storage, handling, and other associated costs for 
     all peanuts pledged as collateral that are forfeited under 
     this section.
       (5) Marketing.--A marketing association or cooperative may 
     market peanuts for which a loan is made under this section in 
     any manner that conforms to consumer needs, including the 
     separation of peanuts by type and quality.
       (6) Reimbursable agreements and payment of administrative 
     expenses.--The Secretary may implement any reimbursable 
     agreements or provide for the payment of administrative 
     expenses under this subsection only in a manner that is 
     consistent with those activities in regard to other loan 
     commodities.

     SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 
                   LOANS.

       (a) In General.--For purposes of each of the 2013 through 
     2017 crop years, the loan rate for a marketing assistance 
     loan under section 1201 for a loan commodity shall be equal 
     to the following:
       (1) In the case of wheat, $2.94 per bushel.
       (2) In the case of corn, $1.95 per bushel.
       (3) In the case of grain sorghum, $1.95 per bushel.
       (4) In the case of barley, $1.95 per bushel.
       (5) In the case of oats, $1.39 per bushel.
       (6) In the case of base quality of upland cotton, for the 
     2013 and each subsequent crop year, the simple average of the 
     adjusted prevailing world price for the 2 immediately 
     preceding marketing years, as determined by the Secretary and 
     announced October 1 preceding the next domestic plantings, 
     but in no case less than $0.47 per pound or more than $0.52 
     per pound.
       (7) In the case of extra long staple cotton, $0.7977 per 
     pound.
       (8) In the case of long grain rice, $6.50 per 
     hundredweight.
       (9) In the case of medium grain rice, $6.50 per 
     hundredweight.
       (10) In the case of soybeans, $5.00 per bushel.
       (11) In the case of other oilseeds, $10.09 per 
     hundredweight for each of the following kinds of oilseeds:
       (A) Sunflower seed.
       (B) Rapeseed.
       (C) Canola.
       (D) Safflower.
       (E) Flaxseed.
       (F) Mustard seed.
       (G) Crambe.
       (H) Sesame seed.
       (I) Other oilseeds designated by the Secretary.
       (12) In the case of dry peas, $5.40 per hundredweight.
       (13) In the case of lentils, $11.28 per hundredweight.
       (14) In the case of small chickpeas, $7.43 per 
     hundredweight.
       (15) In the case of large chickpeas, $11.28 per 
     hundredweight.
       (16) In the case of graded wool, $1.15 per pound.
       (17) In the case of nongraded wool, $0.40 per pound.
       (18) In the case of mohair, $4.20 per pound.
       (19) In the case of honey, $0.69 per pound.
       (20) In the case of peanuts, $355 per ton.
       (b) Single County Loan Rate for Other Oilseeds.--The 
     Secretary shall establish a single loan rate in each county 
     for each kind of other oilseeds described in subsection 
     (a)(11).

     SEC. 1203. TERM OF LOANS.

       (a) Term of Loan.--In the case of each loan commodity, a 
     marketing assistance loan under section 1201 shall have a 
     term of 9 months beginning on the first day of the first 
     month after the month in which the loan is made.
       (b) Extensions Prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for any loan 
     commodity.

     SEC. 1204. REPAYMENT OF LOANS.

       (a) General Rule.--The Secretary shall permit the producers 
     on a farm to repay a marketing assistance loan under section 
     1201 for a loan commodity (other than upland cotton, long 
     grain rice, medium grain rice, extra long staple cotton, 
     peanuts and confectionery and each other kind of sunflower 
     seed (other than oil sunflower seed)) at a rate that is the 
     lesser of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283));
       (2) a rate (as determined by the Secretary) that--
       (A) is calculated based on average market prices for the 
     loan commodity during the preceding 30-day period; and
       (B) will minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries; or
       (3) a rate that the Secretary may develop using alternative 
     methods for calculating a repayment rate for a loan commodity 
     that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity;
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally; and
       (E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries.
       (b) Repayment Rates for Upland Cotton, Long Grain Rice, and 
     Medium Grain Rice.--The Secretary shall permit producers to 
     repay a marketing assistance loan under section 1201 for 
     upland cotton, long grain rice, and medium grain rice at a 
     rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the prevailing world market price for the commodity, as 
     determined and adjusted by the Secretary in accordance with 
     this section.
       (c) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 1202, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
       (d) Prevailing World Market Price.--For purposes of this 
     section and section 1207, the Secretary shall prescribe by 
     regulation--
       (1) a formula to determine the prevailing world market 
     price for each of upland cotton, long grain rice, and medium 
     grain rice; and
       (2) a mechanism by which the Secretary shall announce 
     periodically those prevailing world market prices.
       (e) Adjustment of Prevailing World Market Price for Upland 
     Cotton, Long Grain Rice, and Medium Grain Rice.--

[[Page S4004]]

       (1) Rice.--The prevailing world market price for long grain 
     rice and medium grain rice determined under subsection (d) 
     shall be adjusted to United States quality and location.
       (2) Cotton.--The prevailing world market price for upland 
     cotton determined under subsection (d)--
       (A) shall be adjusted to United States quality and 
     location, with the adjustment to include--
       (i) a reduction equal to any United States Premium Factor 
     for upland cotton of a quality higher than Middling (M) 1\3/
     32\-inch; and
       (ii) the average costs to market the commodity, including 
     average transportation costs, as determined by the Secretary; 
     and
       (B) may be further adjusted, during the period beginning on 
     the date of enactment of this Act and ending on July 31, 
     2018, if the Secretary determines the adjustment is 
     necessary--
       (i) to minimize potential loan forfeitures;
       (ii) to minimize the accumulation of stocks of upland 
     cotton by the Federal Government;
       (iii) to ensure that upland cotton produced in the United 
     States can be marketed freely and competitively, both 
     domestically and internationally; and
       (iv) to ensure an appropriate transition between current-
     crop and forward-crop price quotations, except that the 
     Secretary may use forward-crop price quotations prior to July 
     31 of a marketing year only if--

       (I) there are insufficient current-crop price quotations; 
     and
       (II) the forward-crop price quotation is the lowest such 
     quotation available.

       (3) Guidelines for additional adjustments.--In making 
     adjustments under this subsection, the Secretary shall 
     establish a mechanism for determining and announcing the 
     adjustments in order to avoid undue disruption in the United 
     States market.
       (f) Repayment Rates for Confectionery and Other Kinds of 
     Sunflower Seeds.--The Secretary shall permit the producers on 
     a farm to repay a marketing assistance loan under section 
     1201 for confectionery and each other kind of sunflower seed 
     (other than oil sunflower seed) at a rate that is the lesser 
     of--
       (1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       (2) the repayment rate established for oil sunflower seed.
       (g) Payment of Cotton Storage Costs.--Effective for each of 
     the 2013 through 2017 crop years, the Secretary shall make 
     cotton storage payments available in the same manner, and at 
     the same rates as the Secretary provided storage payments for 
     the 2006 crop of cotton, except that the rates shall be 
     reduced by 20 percent.
       (h) Repayment Rate for Peanuts.--The Secretary shall permit 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       (1) the loan rate established for peanuts under subsection 
     (b), plus interest (determined in accordance with section 163 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7283)); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing peanuts; and
       (D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (i) Authority to Temporarily Adjust Repayment Rates.--
       (1) Adjustment authority.--In the event of a severe 
     disruption to marketing, transportation, or related 
     infrastructure, the Secretary may modify the repayment rate 
     otherwise applicable under this section for marketing 
     assistance loans under section 1201 for a loan commodity.
       (2) Duration.--Any adjustment made under paragraph (1) in 
     the repayment rate for marketing assistance loans for a loan 
     commodity shall be in effect on a short-term and temporary 
     basis, as determined by the Secretary.

     SEC. 1205. LOAN DEFICIENCY PAYMENTS.

       (a) Availability of Loan Deficiency Payments.--
       (1) In general.--Except as provided in subsection (d), the 
     Secretary may make loan deficiency payments available to 
     producers on a farm that, although eligible to obtain a 
     marketing assistance loan under section 1201 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     commodity in return for loan deficiency payments under this 
     section.
       (2) Unshorn pelts, hay, and silage.--
       (A) Marketing assistance loans.--Subject to subparagraph 
     (B), nongraded wool in the form of unshorn pelts and hay and 
     silage derived from a loan commodity are not eligible for a 
     marketing assistance loan under section 1201.
       (B) Loan deficiency payment.--Effective for the 2013 
     through 2017 crop years, the Secretary may make loan 
     deficiency payments available under this section to producers 
     on a farm that produce unshorn pelts or hay and silage 
     derived from a loan commodity.
       (b) Computation.--A loan deficiency payment for a loan 
     commodity or commodity referred to in subsection (a)(2) shall 
     be equal to the product obtained by multiplying--
       (1) the payment rate determined under subsection (c) for 
     the commodity; by
       (2) the quantity of the commodity produced by the eligible 
     producers, excluding any quantity for which the producers 
     obtain a marketing assistance loan under section 1201.
       (c) Payment Rate.--
       (1) In general.--In the case of a loan commodity, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity; exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (2) Unshorn pelts.--In the case of unshorn pelts, the 
     payment rate shall be the amount by which--
       (A) the loan rate established under section 1202 for 
     ungraded wool; exceeds
       (B) the rate at which a marketing assistance loan for 
     ungraded wool may be repaid under section 1204.
       (3) Hay and silage.--In the case of hay or silage derived 
     from a loan commodity, the payment rate shall be the amount 
     by which--
       (A) the loan rate established under section 1202 for the 
     loan commodity from which the hay or silage is derived; 
     exceeds
       (B) the rate at which a marketing assistance loan for the 
     loan commodity may be repaid under section 1204.
       (d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.
       (e) Effective Date for Payment Rate Determination.--The 
     Secretary shall determine the amount of the loan deficiency 
     payment to be made under this section to the producers on a 
     farm with respect to a quantity of a loan commodity or 
     commodity referred to in subsection (a)(2) using the payment 
     rate in effect under subsection (c) as of the date the 
     producers request the payment.

     SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       (a) Eligible Producers.--
       (1) In general.--Effective for the 2013 through 2017 crop 
     years, in the case of a producer that would be eligible for a 
     loan deficiency payment under section 1205 for wheat, barley, 
     or oats, but that elects to use acreage planted to the wheat, 
     barley, or oats for the grazing of livestock, the Secretary 
     shall make a payment to the producer under this section if 
     the producer enters into an agreement with the Secretary to 
     forgo any other harvesting of the wheat, barley, or oats on 
     that acreage.
       (2) Grazing of triticale acreage.--Effective for the 2013 
     through 2017 crop years, with respect to a producer on a farm 
     that uses acreage planted to triticale for the grazing of 
     livestock, the Secretary shall make a payment to the producer 
     under this section if the producer enters into an agreement 
     with the Secretary to forgo any other harvesting of triticale 
     on that acreage.
       (b) Payment Amount.--
       (1) In general.--The amount of a payment made under this 
     section to a producer on a farm described in subsection 
     (a)(1) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     wheat, barley, or oats; and
       (ii)(I) the yield in effect for the calculation of 
     agriculture risk coverage payments under subtitle A with 
     respect to that loan commodity on the farm; or
       (II) in the case of a farm without a payment yield for that 
     loan commodity, an appropriate yield established by the 
     Secretary.
       (2) Grazing of triticale acreage.--The amount of a payment 
     made under this section to a producer on a farm described in 
     subsection (a)(2) shall be equal to the amount determined by 
     multiplying--
       (A) the loan deficiency payment rate determined under 
     section 1205(c) in effect for wheat, as of the date of the 
     agreement, for the county in which the farm is located; by
       (B) the payment quantity determined by multiplying--
       (i) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects to forgo harvesting of 
     triticale; and
       (ii)(I) the yield in effect for the calculation of 
     agriculture risk coverage payments under subtitle A with 
     respect to wheat on the farm; or
       (II) in the case of a farm without a payment yield for 
     wheat, an appropriate yield established by the Secretary in a 
     manner consistent with section 1102 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8712).
       (c) Time, Manner, and Availability of Payment.--
       (1) Time and manner.--A payment under this section shall be 
     made at the same time and in the same manner as loan 
     deficiency payments are made under section 1205.
       (2) Availability.--
       (A) In general.--The Secretary shall establish an 
     availability period for the payments authorized by this 
     section.

[[Page S4005]]

       (B) Certain commodities.--In the case of wheat, barley, and 
     oats, the availability period shall be consistent with the 
     availability period for the commodity established by the 
     Secretary for marketing assistance loans authorized by this 
     subtitle.
       (d) Prohibition on Crop Insurance Indemnity or Noninsured 
     Crop Assistance.--A 2013 through 2017 crop of wheat, barley, 
     oats, or triticale planted on acreage that a producer elects, 
     in the agreement required by subsection (a), to use for the 
     grazing of livestock in lieu of any other harvesting of the 
     crop shall not be eligible for an indemnity under a policy or 
     plan of insurance authorized under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance 
     under section 196 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7333).

     SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       (a) Special Import Quota.--
       (1) Definition of special import quota.--In this 
     subsection, the term ``special import quota'' means a 
     quantity of imports that is not subject to the over-quota 
     tariff rate of a tariff-rate quota.
       (2) Establishment.--
       (A) In general.--The President shall carry out an import 
     quota program during the period beginning on August 1, 2013, 
     and ending on July 31, 2018, as provided in this subsection.
       (B) Program requirements.--Whenever the Secretary 
     determines and announces that for any consecutive 4-week 
     period, the Friday through Thursday average price quotation 
     for the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered to a definable 
     and significant international market, as determined by the 
     Secretary, exceeds the prevailing world market price, there 
     shall immediately be in effect a special import quota.
       (3) Quantity.--The quota shall be equal to the consumption 
     during a 1-week period of cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which official data of the Department of Agriculture or 
     other data are available.
       (4) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under paragraph (2) and entered into 
     the United States not later than 180 days after that date.
       (5) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     paragraph (2), except that a special quota period may not be 
     established under this subsection if a quota period has been 
     established under subsection (b).
       (6) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (A) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (B) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (D) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (7) Limitation.--The quantity of cotton entered into the 
     United States during any marketing year under the special 
     import quota established under this subsection may not exceed 
     the equivalent of 10 week's consumption of upland cotton by 
     domestic mills at the seasonally adjusted average rate of the 
     3 months immediately preceding the first special import quota 
     established in any marketing year.
       (b) Limited Global Import Quota for Upland Cotton.--
       (1) Definitions.--In this subsection:
       (A) Demand.--The term ``demand'' means--
       (i) the average seasonally adjusted annual rate of domestic 
     mill consumption of cotton during the most recent 3 months 
     for which official data of the Department of Agriculture (as 
     determined by the Secretary) are available; and
       (ii) the larger of--

       (I) average exports of upland cotton during the preceding 6 
     marketing years; or
       (II) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.

       (B) Limited global import quota.--The term ``limited global 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (C) Supply.--The term ``supply'' means, using the latest 
     official data of the Department of Agriculture--
       (i) the carryover of upland cotton at the beginning of the 
     marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       (ii) production of the current crop; and
       (iii) imports to the latest date available during the 
     marketing year.
       (2) Program.--The President shall carry out an import quota 
     program that provides that whenever the Secretary determines 
     and announces that the average price of the base quality of 
     upland cotton, as determined by the Secretary, in the 
     designated spot markets for a month exceeded 130 percent of 
     the average price of the quality of cotton in the markets for 
     the preceding 36 months, notwithstanding any other provision 
     of law, there shall immediately be in effect a limited global 
     import quota subject to the following conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which official data of the Department of Agriculture are 
     available or as estimated by the Secretary.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (3) No overlap.--Notwithstanding paragraph (2), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (a).
       (c) Economic Adjustment Assistance to Users of Upland 
     Cotton.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall, on a monthly basis, make economic adjustment 
     assistance available to domestic users of upland cotton in 
     the form of payments for all documented use of that upland 
     cotton during the previous monthly period regardless of the 
     origin of the upland cotton.
       (2) Value of assistance.--Effective beginning on August 1, 
     2012, the value of the assistance provided under paragraph 
     (1) shall be 3 cents per pound.
       (3) Allowable purposes.--Economic adjustment assistance 
     under this subsection shall be made available only to 
     domestic users of upland cotton that certify that the 
     assistance shall be used only to acquire, construct, install, 
     modernize, develop, convert, or expand land, plant, 
     buildings, equipment, facilities, or machinery.
       (4) Review or audit.--The Secretary may conduct such review 
     or audit of the records of a domestic user under this 
     subsection as the Secretary determines necessary to carry out 
     this subsection.
       (5) Improper use of assistance.--If the Secretary 
     determines, after a review or audit of the records of the 
     domestic user, that economic adjustment assistance under this 
     subsection was not used for the purposes specified in 
     paragraph (3), the domestic user shall be--
       (A) liable for the repayment of the assistance to the 
     Secretary, plus interest, as determined by the Secretary; and
       (B) ineligible to receive assistance under this subsection 
     for a period of 1 year following the determination of the 
     Secretary.

     SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 
                   STAPLE COTTON.

       (a) Competitiveness Program.--Notwithstanding any other 
     provision of law, during the period beginning on the date of 
     enactment of this Act through July 31, 2018, the Secretary 
     shall carry out a program--
       (1) to maintain and expand the domestic use of extra long 
     staple cotton produced in the United States;
       (2) to increase exports of extra long staple cotton 
     produced in the United States; and
       (3) to ensure that extra long staple cotton produced in the 
     United States remains competitive in world markets.
       (b) Payments Under Program; Trigger.--Under the program, 
     the Secretary shall make payments available under this 
     section whenever--
       (1) for a consecutive 4-week period, the world market price 
     for the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is below the 
     prevailing United States price for a competing growth of 
     extra long staple cotton; and
       (2) the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is less than 134 
     percent of the loan rate for extra long staple cotton.
       (c) Eligible Recipients.--The Secretary shall make payments 
     available under this section to domestic users of extra long 
     staple cotton produced in the United States and exporters of 
     extra long staple cotton produced in the United States that 
     enter into an agreement with the Commodity Credit Corporation 
     to participate in the program under this section.
       (d) Payment Amount.--Payments under this section shall be 
     based on the amount of the difference in the prices referred 
     to in subsection (b)(1) during the fourth week of the 
     consecutive 4-week period multiplied by the amount of 
     documented purchases by domestic users and sales for export 
     by exporters made in the week following such a consecutive 4-
     week period.

[[Page S4006]]

     SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 
                   FEED GRAINS AND SEED COTTON.

       (a) High Moisture Feed Grains.--
       (1) Definition of high moisture state.--In this subsection, 
     the term ``high moisture state'' means corn or grain sorghum 
     having a moisture content in excess of Commodity Credit 
     Corporation standards for marketing assistance loans made by 
     the Secretary under section 1201.
       (2) Recourse loans available.--For each of the 2013 through 
     2017 crops of corn and grain sorghum, the Secretary shall 
     make available recourse loans, as determined by the 
     Secretary, to producers on a farm that--
       (A) normally harvest all or a portion of their crop of corn 
     or grain sorghum in a high moisture state;
       (B) present--
       (i) certified scale tickets from an inspected, certified 
     commercial scale, including a licensed warehouse, feedlot, 
     feed mill, distillery, or other similar entity approved by 
     the Secretary, pursuant to regulations issued by the 
     Secretary; or
       (ii) field or other physical measurements of the standing 
     or stored crop in regions of the United States, as determined 
     by the Secretary, that do not have certified commercial 
     scales from which certified scale tickets may be obtained 
     within reasonable proximity of harvest operation;
       (C) certify that the producers on the farm were the owners 
     of the feed grain at the time of delivery to, and that the 
     quantity to be placed under loan under this subsection was in 
     fact harvested on the farm and delivered to, a feedlot, feed 
     mill, or commercial or on-farm high-moisture storage 
     facility, or to a facility maintained by the users of corn 
     and grain sorghum in a high moisture state; and
       (D) comply with deadlines established by the Secretary for 
     harvesting the corn or grain sorghum and submit applications 
     for loans under this subsection within deadlines established 
     by the Secretary.
       (3) Eligibility of acquired feed grains.--A loan under this 
     subsection shall be made on a quantity of corn or grain 
     sorghum of the same crop acquired by the producer equivalent 
     to a quantity determined by multiplying--
       (A) the acreage of the corn or grain sorghum in a high 
     moisture state harvested on the farm of the producer; by
       (B) the lower of the actual average yield used to make 
     payments under subtitle A or the actual yield on a field, as 
     determined by the Secretary, that is similar to the field 
     from which the corn or grain sorghum was obtained.
       (b) Recourse Loans Available for Seed Cotton.--For each of 
     the 2013 through 2017 crops of upland cotton and extra long 
     staple cotton, the Secretary shall make available recourse 
     seed cotton loans, as determined by the Secretary, on any 
     production.
       (c) Repayment Rates.--Repayment of a recourse loan made 
     under this section shall be at the loan rate established for 
     the commodity by the Secretary, plus interest (determined in 
     accordance with section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

     SEC. 1210. ADJUSTMENTS OF LOANS.

       (a) Adjustment Authority.--Subject to subsection (e), the 
     Secretary may make appropriate adjustments in the loan rates 
     for any loan commodity (other than cotton) for differences in 
     grade, type, quality, location, and other factors.
       (b) Manner of Adjustment.--The adjustments under subsection 
     (a) shall, to the maximum extent practicable, be made in such 
     a manner that the average loan level for the commodity will, 
     on the basis of the anticipated incidence of the factors, be 
     equal to the level of support determined in accordance with 
     this subtitle and subtitles C through E.
       (c) Adjustment on County Basis.--
       (1) In general.--The Secretary may establish loan rates for 
     a crop for producers in individual counties in a manner that 
     results in the lowest loan rate being 95 percent of the 
     national average loan rate, if those loan rates do not result 
     in an increase in outlays.
       (2) Prohibition.--Adjustments under this subsection shall 
     not result in an increase in the national average loan rate 
     for any year.
       (d) Adjustment in Loan Rate for Cotton.--
       (1) In general.--The Secretary may make appropriate 
     adjustments in the loan rate for cotton for differences in 
     quality factors.
       (2) Revisions to quality adjustments for upland cotton.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall implement 
     revisions in the administration of the marketing assistance 
     loan program for upland cotton to more accurately and 
     efficiently reflect market values for upland cotton.
       (B) Mandatory revisions.--Revisions under subparagraph (A) 
     shall include--
       (i) the elimination of warehouse location differentials;
       (ii) the establishment of differentials for the various 
     quality factors and staple lengths of cotton based on a 3-
     year, weighted moving average of the weighted designated spot 
     market regions, as determined by regional production;
       (iii) the elimination of any artificial split in the 
     premium or discount between upland cotton with a 32 or 33 
     staple length due to micronaire; and
       (iv) a mechanism to ensure that no premium or discount is 
     established that exceeds the premium or discount associated 
     with a leaf grade that is 1 better than the applicable color 
     grade.
       (C) Discretionary revisions.--Revisions under subparagraph 
     (A) may include--
       (i) the use of non-spot market price data, in addition to 
     spot market price data, that would enhance the accuracy of 
     the price information used in determining quality adjustments 
     under this subsection;
       (ii) adjustments in the premiums or discounts associated 
     with upland cotton with a staple length of 33 or above due to 
     micronaire with the goal of eliminating any unnecessary 
     artificial splits in the calculations of the premiums or 
     discounts; and
       (iii) such other adjustments as the Secretary determines 
     appropriate, after consultations conducted in accordance with 
     paragraph (3).
       (3) Consultation with private sector.--
       (A) Prior to revision.--In making adjustments to the loan 
     rate for cotton (including any review of the adjustments) as 
     provided in this subsection, the Secretary shall consult with 
     representatives of the United States cotton industry.
       (B) Inapplicability of federal advisory committee act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to consultations under this subsection.
       (4) Review of adjustments.--The Secretary may review the 
     operation of the upland cotton quality adjustments 
     implemented pursuant to this subsection and may make further 
     revisions to the administration of the loan program for 
     upland cotton, by--
       (A) revoking or revising any actions taken under paragraph 
     (2)(B); or
       (B) revoking or revising any actions taken or authorized to 
     be taken under paragraph (2)(C).
       (e) Rice.--The Secretary shall not make adjustments in the 
     loan rates for long grain rice and medium grain rice, except 
     for differences in grade and quality (including milling 
     yields).

                           Subtitle C--Sugar

     SEC. 1301. SUGAR PROGRAM.

       (a) Continuation of Current Program and Loan Rates.--
       (1) Sugarcane.--Section 156(a)(5) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(a)(5)) is amended by striking ``the 2012 crop year'' and 
     inserting ``each of the 2012 through 2017 crop years''.
       (2) Sugar beets.--Section 156(b)(2) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(b)(2)) is amended by striking ``2012'' and inserting 
     ``2017''.
       (3) Effective period.--Section 156(i) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(i)) is amended by striking ``2012'' and inserting 
     ``2017''.
       (b) Flexible Marketing Allotments for Sugar.--
       (1) Sugar estimates.--Section 359b(a)(1) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) 
     is amended by striking ``2012'' and inserting ``2017''.
       (2) Effective period.--Section 359l(a) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
     striking ``2012'' and inserting ``2017''.

                           Subtitle D--Dairy

      PART I--DAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET 
                         STABILIZATION PROGRAMS

     SEC. 1401. DEFINITIONS.

       In this part:
       (1) Actual dairy production margin.--The term ``actual 
     dairy production margin'' means the difference between the 
     all-milk price and the average feed cost, as calculated under 
     section 1402.
       (2) All-milk price.--The term ``all-milk price'' means the 
     average price received, per hundredweight of milk, by dairy 
     operations for all milk sold to plants and dealers in the 
     United States, as determined by the Secretary.
       (3) Annual production history.--The term ``annual 
     production history'' means the production history determined 
     for a participating dairy operation under section 1413(b) 
     whenever the participating dairy operation purchases 
     supplemental production margin protection.
       (4) Average feed cost.--The term ``average feed cost'' 
     means the average cost of feed used by a dairy operation to 
     produce a hundredweight of milk, determined under section 
     1402 using the sum of the following:
       (A) The product determined by multiplying 1.0728 by the 
     price of corn per bushel.
       (B) The product determined by multiplying 0.00735 by the 
     price of soybean meal per ton.
       (C) The product determined by multiplying 0.0137 by the 
     price of alfalfa hay per ton.
       (5) Basic production history.--The term ``basic production 
     history'' means the production history determined for a 
     participating dairy operation under section 1413(a) for 
     provision of basic production margin protection.
       (6) Consecutive 2-month period.--The term ``consecutive 2-
     month period'' refers to the 2-month period consisting of the 
     months of January and February, March and April, May and 
     June, July and August, September and October, or November and 
     December, respectively.
       (7) Dairy operation.--
       (A) In general.--The term ``dairy operation'' means, as 
     determined by the Secretary, 1 or more dairy producers that 
     produce and market milk as a single dairy operation in which 
     each dairy producer--
       (i) shares in the pooling of resources and a common 
     ownership structure;

[[Page S4007]]

       (ii) is at risk in the production of milk on the dairy 
     operation; and
       (iii) contributes land, labor, management, equipment, or 
     capital to the dairy operation.
       (B) Additional ownership structures.--The Secretary shall 
     determine additional ownership structures to be covered by 
     the definition of dairy operation.
       (8) Handler.--
       (A) In general.--The term ``handler'' means the initial 
     individual or entity making payment to a dairy operation for 
     milk produced in the United States and marketed for 
     commercial use.
       (B) Producer-handler.--The term includes a ``producer-
     handler'' when the producer satisfies the definition in 
     subparagraph (A).
       (9) Participating dairy operation.--The term 
     ``participating dairy operation'' means a dairy operation 
     that--
       (A) signs up under section 1412 to participate in the 
     production margin protection program under subpart A; and
       (B) as a result, also participates in the stabilization 
     program under subpart B.
       (10) Production margin protection program.--The term 
     ``production margin protection program'' means the dairy 
     production margin protection program required by subpart A.
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (12) Stabilization program.--The term ``stabilization 
     program'' means the dairy market stabilization program 
     required by subpart B for all participating dairy operations.
       (13) Stabilization program base.--The term ``stabilization 
     program base'', with respect to a participating dairy 
     operation, means the stabilization program base calculated 
     for the participating dairy operation under section 1431(b).
       (14) United states.--The term ``United States'', in a 
     geographical sense, means the 50 States, the District of 
     Columbia, American Samoa, Guam, the Commonwealth of the 
     Northern Mariana Islands, the Commonwealth of Puerto Rico, 
     the Virgin Islands of the United States, and any other 
     territory or possession of the United States.

     SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY 
                   PRODUCTION MARGINS.

       (a) Calculation of Average Feed Cost.--The Secretary shall 
     calculate the national average feed cost for each month using 
     the following data:
       (1) The price of corn for a month shall be the price 
     received during that month by farmers in the United States 
     for corn, as reported in the monthly Agricultural Prices 
     report by the Secretary.
       (2) The price of soybean meal for a month shall be the 
     central Illinois price for soybean meal, as reported in the 
     Market News Monthly Soybean Meal Price Report by the 
     Secretary.
       (3) The price of alfalfa hay for a month shall be the price 
     received during that month by farmers in the United States 
     for alfalfa hay, as reported in the monthly Agricultural 
     Prices report by the Secretary.
       (b) Calculation of Actual Dairy Production Margins.--
       (1) Production margin protection program.--For use in the 
     production margin protection program under subpart A, the 
     Secretary shall calculate the actual dairy production margin 
     for each consecutive 2-month period by subtracting--
       (A) the average feed cost for that consecutive 2-month 
     period, determined in accordance with subsection (a); from
       (B) the all-milk price for that consecutive 2-month period.
       (2) Stabilization program.--For use in the stabilization 
     program under subpart B, the Secretary shall calculate each 
     month the actual dairy production margin for the preceding 
     month by subtracting--
       (A) the average feed cost for that preceding month, 
     determined in accordance with subsection (a); from
       (B) the all-milk price for that preceding month.
       (3) Time for calculations.--The calculations required by 
     paragraphs (1) and (2) shall be made as soon as practicable 
     using the full month price of the applicable reference month.

         Subpart A--Dairy Production Margin Protection Program

     SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MARGIN 
                   PROTECTION PROGRAM.

       Effective not later than 120 days after the effective date 
     of this subtitle, the Secretary shall establish and 
     administer a dairy production margin protection program under 
     which participating dairy operations are paid--
       (1) basic production margin protection program payments 
     under section 1414 when actual dairy production margins are 
     less than the threshold levels for such payments; and
       (2) supplemental production margin protection program 
     payments under section 1415 if purchased by a participating 
     dairy operation.

     SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRODUCTION 
                   MARGIN PROTECTION PROGRAM.

       (a) Eligibility.--All dairy operations in the United States 
     shall be eligible to participate in the production margin 
     protection program, except that a participating dairy 
     operation shall be required to register with the Secretary 
     before the participating dairy operation may receive--
       (1) basic production margin protection program payments 
     under section 1414; and
       (2) if the participating dairy operation purchases 
     supplemental production margin protection under section 1415, 
     supplemental production margin protection program payments 
     under such section.
       (b) Registration Process.--
       (1) In general.--The Secretary shall specify the manner and 
     form by which a participating dairy operation may register to 
     participate in the production margin protection program.
       (2) Treatment of multiproducer dairy operations.--If a 
     participating dairy operation is operated by more than 1 
     dairy producer, all of the dairy producers of the 
     participating dairy operation shall be treated as a single 
     dairy operation for purposes of--
       (A) registration to receive basic production margin 
     protection and election to purchase supplemental production 
     margin protection;
       (B) payment of the participation fee under subsection (d) 
     and producer premiums under section 1415; and
       (C) participation in the stabilization program under 
     subtitle B.
       (3) Treatment of producers with multiple dairy 
     operations.--If a dairy producer operates 2 or more dairy 
     operations, each dairy operation of the producer shall 
     separately register to receive basic production margin 
     protection and purchase supplemental production margin 
     protection and only those dairy operations so registered 
     shall be covered by the stabilization program.
       (c) Time for Registration.--
       (1) Existing dairy operations.--During the 15-month period 
     beginning on the date of the initiation of the registration 
     period for the production margin protection program, a dairy 
     operation that is actively engaged as of such date may 
     register with the Secretary--
       (A) to receive basic production margin protection; and
       (B) if the dairy operation elects, to purchase supplemental 
     production margin protection.
       (2) New entrants.--A dairy producer that has no existing 
     interest in a dairy operation as of the date of the 
     initiation of the registration period for the production 
     margin protection program, but that, after such date, 
     establishes a new dairy operation, may register with the 
     Secretary during the 1-year period beginning on the date on 
     which the dairy operation first markets milk commercially--
       (A) to receive basic production margin protection; and
       (B) if the dairy operation elects, to purchase supplemental 
     production margin protection.
       (d) Transition From MILC to Production Margin Protection.--
       (1) Definition of transition period.--In this subsection, 
     the term ``transition period'' means the period during which 
     the milk income loss program established under section 1506 
     of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
     8773) and the production margin protection program under this 
     subtitle are both in existence.
       (2) Notice of availability.--Not later than 30 days after 
     the date of enactment of this Act, the Secretary shall 
     publish a notice in the Federal Register to inform dairy 
     operations of the availability of basic production margin 
     protection and supplemental production margin protection, 
     including the terms of the protection and information about 
     the option of dairy operations during the transition period 
     to make an election described in paragraph (3).
       (3) Election.--Except as provided in paragraph (4), a dairy 
     operation may elect to participate in either the milk income 
     loss program established under section 1506 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8773) or the 
     production margin protection program under this subtitle for 
     the duration of the transition period.
       (4) Transfer to production margin protection.--A dairy 
     operation that elects to participate in the milk income loss 
     program established under section 1506 of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8773) during 
     the transition period may, at any time, make a permanent 
     transfer to the production margin protection program.
       (e) Administration Fee.--
       (1) Administration fee required.--Except as provided in 
     paragraph (5), a participating dairy operation shall--
       (A) pay an administration fee under this subsection to 
     register to participate in the production margin protection 
     program; and
       (B) pay the administration fee annually thereafter to 
     continue to participate in the production margin protection 
     program.
       (2) Fee amount.--The administration fee for a participating 
     dairy operation for a calendar year shall be based on the 
     pounds of milk (in millions) marketed by the participating 
     dairy operation in the previous calendar year, as follows:


------------------------------------------------------------------------
   Pounds Marketed (in millions)              Administration Fee
------------------------------------------------------------------------
                 less than 1                                 $100
                      1 to 5                                 $250
           more than 5 to 10                                 $350
          more than 10 to 40                               $1,000
                more than 40                               $2,500
------------------------------------------------------------------------

       (3) Deposit of fees.--All administration fees collected 
     under this subsection shall be

[[Page S4008]]

     credited to the fund or account used to cover the costs 
     incurred to administer the production 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 administration 
     fees collected under this subsection--
       (A) to cover administrative costs of the production margin 
     protection program and stabilization program; and
       (B) to cover costs of the Department of Agriculture 
     relating to reporting of dairy market news, carrying out the 
     amendments made by section 1476, and carrying out section 273 
     of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b)), 
     to the extent funds remain available after operation of 
     subparagraph (A).
       (5) Waiver.--The Secretary shall waive or reduce the 
     administration fee required under paragraph (1) in the case 
     of a limited-resource dairy operation, as defined by the 
     Secretary.
       (f) Limitation.--A dairy operation may only participate in 
     the production margin protection program or the livestock 
     gross margin for dairy program under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.), but not both.

     SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING DAIRY 
                   OPERATIONS.

       (a) Production History for Basic Production Margin 
     Protection.--
       (1) Determination required.--For purposes of providing 
     basic production margin protection, the Secretary shall 
     determine the basic production history of a participating 
     dairy operation.
       (2) Calculation.--Except as provided in paragraph (3), the 
     basic production history of a participating dairy operation 
     for basic production margin protection is equal to the 
     highest annual milk marketings of the participating dairy 
     operation during any 1 of the 3 calendar years immediately 
     preceding the calendar year in which the participating dairy 
     operation first signed up to participate in the production 
     margin protection program.
       (3) Election by new dairy operations.--In the case of a 
     participating dairy operation that has been in operation for 
     less than a year, the participating dairy operation shall 
     elect 1 of the following methods for the Secretary to 
     determine the basic production history of the participating 
     dairy operation:
       (A) The volume of the actual milk marketings for the months 
     the participating dairy operation has been in operation 
     extrapolated to a yearly amount.
       (B) An estimate of the actual milk marketings of the 
     participating dairy operation based on the herd size of the 
     participating dairy operation relative to the national 
     rolling herd average data published by the Secretary.
       (4) No change in production history for basic production 
     margin protection.--Once the basic production history of a 
     participating dairy operation 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 production margin protection payments for the 
     participating dairy operation made under section 1414.
       (b) Annual Production History for Supplemental Production 
     Margin Protection.--
       (1) Determination required.--For purposes of providing 
     supplemental production margin protection for a participating 
     dairy operation that purchases supplemental production margin 
     protection for a year under section 1415, the Secretary shall 
     determine the annual production history of the participating 
     dairy operation under paragraph (2).
       (2) Calculation.--The annual production history of a 
     participating dairy operation for a year is equal to the 
     actual milk marketings of the participating dairy operation 
     during the preceding calendar year.
       (3) New dairy operations.--Subsection (a)(3) shall apply 
     with respect to determining the annual production history of 
     a participating dairy operation that has been in operation 
     for less than a year.
       (c) Required Information.--A participating dairy operation 
     shall provide all information that the Secretary may require 
     in order to establish--
       (1) the basic production history of the participating dairy 
     operation under subsection (a); and
       (2) the production history of the participating dairy 
     operation whenever the participating dairy operation 
     purchases supplemental production margin protection under 
     section 1415.
       (d) Transfer of Production Histories.--
       (1) Transfer by sale or lease.--In promulgating the rules 
     to initiate the production margin protection program, the 
     Secretary shall specify the conditions under which and the 
     manner by which the production history of a participating 
     dairy operation may be transferred by sale or lease.
       (2) Coverage level.--
       (A) Basic production margin protection.--A purchaser or 
     lessee to whom the Secretary transfers a basic production 
     history under this subsection shall not obtain a different 
     level of basic production margin protection than the basic 
     production margin protection coverage held by the seller or 
     lessor from whom the transfer was obtained.
       (B) Supplemental production margin protection.--A purchaser 
     or lessee to whom the Secretary transfers an annual 
     production history under this subsection shall not obtain a 
     different level of supplemental production margin protection 
     coverage than the supplemental production margin protection 
     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 authorized.--Subject to paragraph 
     (2), if a participating dairy operation moves from 1 location 
     to another location, the participating dairy operation may 
     transfer the basic production history and annual production 
     history associated with the participating dairy operation.
       (2) Notification requirement.--A participating dairy 
     operation shall notify the Secretary of any move of a 
     participating dairy operation under paragraph (1).
       (3) Subsequent occupation of vacated location.--A party 
     subsequently occupying a participating dairy operation 
     location vacated as described in paragraph (1) shall have no 
     interest in the basic production history or annual production 
     history previously associated with the participating dairy 
     operation at such location.

     SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION.

       (a) Payment Threshold.--The Secretary shall make a payment 
     to participating dairy operations in accordance with 
     subsection (b) whenever the average actual dairy production 
     margin for a consecutive 2-month period is less than $4.00 
     per hundredweight of milk.
       (b) Basic Production Margin Protection Payment.--The basic 
     production margin protection payment for a participating 
     dairy operation for a consecutive 2-month period shall be 
     equal to the product obtained by multiplying--
       (1) the difference between the average actual dairy 
     production margin for the consecutive 2-month period and 
     $4.00, except that, if the difference is more than $4.00, the 
     Secretary shall use $4.00; by
       (2) the lesser of--
       (A) 80 percent of the production history of the 
     participating dairy operation, divided by 6; or
       (B) the actual quantity of milk marketed by the 
     participating dairy operation during the consecutive 2-month 
     period.

     SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTECTION.

       (a) Election of Supplemental Production Margin 
     Protection.--A participating dairy operation may annually 
     purchase supplemental production margin protection to 
     protect, during the calendar year for which purchased, a 
     higher level of the income of a participating dairy operation 
     than the income level guaranteed by basic production margin 
     protection under section 1414.
       (b) Selection of Payment Threshold.--A participating dairy 
     operation purchasing supplemental production 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 production margin protection specified in section 
     1414(a), but not to exceed $8.00.
       (c) Coverage Percentage.--A participating dairy operation 
     purchasing supplemental production margin protection for a 
     year shall elect a percentage of coverage equal to not more 
     than 90 percent, nor less than 25 percent, of the annual 
     production history of the participating dairy operation.
       (d) Premiums for Supplemental Production Margin 
     Protection.--
       (1) Premiums required.--A participating dairy operation 
     that purchases supplemental production margin protection 
     shall pay an annual premium equal to the product obtained by 
     multiplying--
       (A) the coverage percentage elected by the participating 
     dairy operation under subsection (c);
       (B) the annual production history of the participating 
     dairy operation; 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 operation, the premium per hundredweight 
     corresponding to each coverage level specified in the 
     following table is as follows:


------------------------------------------------------------------------
           Coverage Level                      Premium per Cwt.
------------------------------------------------------------------------
                       $4.50                                $0.01
                       $5.00                                $0.02
                       $5.50                               $0.035
                       $6.00                               $0.045
                       $6.50                                $0.09
                       $7.00                                $0.40
                       $7.50                                $0.60
                       $8.00                                $0.95
------------------------------------------------------------------------

       (3) Premium per hundredweight for production in excess of 4 
     million pounds.--For milk marketings in excess of 4,000,000 
     pounds included in the annual production history of a 
     participating dairy operation, the premium per hundredweight 
     corresponding to each coverage level is as follows:

------------------------------------------------------------------------
           Coverage Level                      Premium per Cwt.
------------------------------------------------------------------------
                       $4.50                                $0.02
                       $5.00                                $0.04
                       $5.50                                $0.10
                       $6.00                                $0.15

[[Page S4009]]

 
                       $6.50                                $0.29
                       $7.00                                $0.62
                       $7.50                                $0.83
                       $8.00                                $1.06
------------------------------------------------------------------------

       (4) Time for payment.--In promulgating the rules to 
     initiate the production margin protection program, the 
     Secretary shall provide more than 1 method by which a 
     participating dairy operation that purchases supplemental 
     production margin protection for a calendar year may pay the 
     premium under this subsection for that year in any manner 
     that maximizes participating dairy operation payment 
     flexibility and program integrity.
       (e) Premium Obligations.--
       (1) Pro-ration of premium for new dairy operations.--A 
     participating dairy operation described in section 1412(c)(2) 
     that purchases supplemental production margin protection for 
     a calendar year after the start of the calendar year shall 
     pay a pro-rated premium for that calendar year based on the 
     portion of the calendar year for which the participating 
     dairy operation purchases the coverage.
       (2) Legal obligation.--A participating dairy operation that 
     purchases supplemental production margin protection for a 
     calendar year shall be legally obligated to pay the 
     applicable premium for that calendar year, except that the 
     Secretary may waive that obligation, under terms and 
     conditions determined by the Secretary, for 1 or more 
     producers in any participating dairy operation in the case of 
     death, retirement, permanent dissolution of a participating 
     dairy operation, or other circumstances as the Secretary 
     considers appropriate to ensure the integrity of the program.
       (f) Supplemental Payment Threshold.--A participating dairy 
     operation with supplemental production margin protection 
     shall receive a supplemental production margin protection 
     payment whenever the average actual dairy production margin 
     for a consecutive 2-month period is less than the coverage 
     level threshold selected by the participating dairy operation 
     under subsection (b).
       (g) Supplemental Production Margin Protection Payments.--
       (1) In general.--The supplemental production margin 
     protection payment for a participating dairy operation is in 
     addition to the basic production margin protection payment.
       (2) Amount of payment.--The supplemental production margin 
     protection payment for the participating dairy operation 
     shall be determined as follows:
       (A) The Secretary shall calculate the difference between 
     the coverage level threshold selected by the participating 
     dairy operation under subsection (b) and the greater of--
       (i) the average actual dairy production margin for the 
     consecutive 2-month period; or
       (ii) $4.00.
       (B) The amount determined under subparagraph (A) shall be 
     multiplied by the percentage selected by the participating 
     dairy operation under subsection (c) and by the lesser of the 
     following:
       (i) The annual production history of the participating 
     dairy operation, divided by 6.
       (ii) The actual amount of milk marketed by the 
     participating dairy operation during the consecutive 2-month 
     period.

     SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION FEES OR 
                   PREMIUMS.

       (a) Loss of Benefits.--A participating dairy operation that 
     fails to pay the required administration fee under section 
     1412 or is in arrears on premium payments for supplemental 
     production margin protection under section 1415--
       (1) remains legally obligated to pay the administration fee 
     or premiums, as the case may be; and
       (2) may not receive basic production margin protection 
     payments or supplemental production margin protection 
     payments until the fees or premiums are fully paid.
       (b) Enforcement.--The Secretary may take such action as 
     necessary to collect administration fees and premium payments 
     for supplemental production margin protection.

             Subpart B--Dairy Market Stabilization Program

     SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION 
                   PROGRAM.

       (a) Program Required; Purpose.--Effective not later than 
     120 days after the effective date of this subtitle, the 
     Secretary shall establish and administer a dairy market 
     stabilization program applicable to participating dairy 
     operations for the purpose of assisting in balancing the 
     supply of milk with demand when participating dairy 
     operations are experiencing low or negative operating 
     margins.
       (b) Election of Stabilization Program Base Calculation 
     Method.--
       (1) Election.--When a dairy operation signs up under 
     section 1412 to participate in the production margin 
     protection program, the dairy operation shall inform the 
     Secretary of the method by which the stabilization program 
     base for the participating dairy operation will be calculated 
     under paragraph (3).
       (2) Change in calculation method.--A participating dairy 
     operation may change the stabilization 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 operation 
     may elect either of the following methods for calculation of 
     the stabilization program base for the participating dairy 
     operation:
       (A) The volume of the average monthly milk marketings of 
     the participating dairy operation for the 3 months 
     immediately preceding the announcement by the Secretary that 
     the stabilization program will become effective.
       (B) The volume of the monthly milk marketings of the 
     participating dairy operation for the same month in the 
     preceding year as the month for which the Secretary has 
     announced the stabilization program will become effective.

     SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN 
                   DAIRY 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 by handlers to participating dairy operations that 
     exceed the applicable percentage of the participating dairy 
     operation's stabilization program base whenever--
       (1) the actual dairy production margin has been $6.00 or 
     less per hundredweight of milk for each of the immediately 
     preceding 2 months; or
       (2) the actual dairy production margin has been $4.00 or 
     less per hundredweight of milk for the immediately preceding 
     month.
       (b) Exception.--If any of the conditions described in 
     section 1436(b) have been met during the 2-month period 
     immediately preceding the month in which the announcement 
     under subsection (a) would otherwise be made by the Secretary 
     in the absence of this exception, the Secretary shall--
       (1) suspend the stabilization program;
       (2) refrain from making the announcement under subsection 
     (a) to implement order the stabilization payment; or
       (3) order reduced payments.
       (c) Effective Date for Implementation of Payment 
     Reductions.--Reductions in dairy payments shall commence 
     beginning on the first day of the month immediately following 
     the date of the announcement by the Secretary under 
     subsection (a).

     SEC. 1433. MILK MARKETINGS INFORMATION.

       (a) Collection of Milk Marketing Data.--The Secretary shall 
     establish, by regulation, a process to collect from 
     participating dairy operations and handlers such information 
     that the Secretary considers necessary for each month during 
     which the stabilization program is in effect.
       (b) Reduce Regulatory Burden.--When implementing the 
     process under subsection (a), the Secretary shall minimize 
     the regulatory burden on participating dairy operations and 
     handlers.

     SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY 
                   OPERATION PAYMENTS.

       (a) Reduced Participating Dairy Operation Payments 
     Required.--During any month in which payment reductions are 
     in effect under the stabilization program, each handler shall 
     reduce payments to each participating dairy operation from 
     whom the handler receives milk.
       (b) Reductions Based on Actual Dairy Production Margin.--
       (1) Reduction requirement 1.--If the Secretary determines 
     that the average actual dairy production margin has been less 
     than $6.00 but greater than $5.00 per hundredweight of milk 
     for 2 consecutive months, the handler shall make payments to 
     a participating dairy operation for a month based on the 
     greater of the following:
       (A) 98 percent of the stabilization program base of the 
     participating dairy operation.
       (B) 94 percent of the marketings of milk for the month by 
     the participating dairy operation.
       (2) Reduction requirement 2.--If the Secretary determines 
     that the average actual dairy production margin has been less 
     than $5.00 but greater than $4.00 for 2 consecutive months, 
     the handler shall make payments to a participating dairy 
     operation for a month based on the greater of the following:
       (A) 97 percent of the stabilization program base of the 
     participating dairy operation.
       (B) 93 percent of the marketings of milk for the month by 
     the participating dairy operation.
       (3) Reduction requirement 3.--If the Secretary determines 
     that the average actual dairy production margin has been 
     $4.00 or less for any 1 month, the handler shall make 
     payments to a participating dairy operation for a month based 
     on the greater of the following:
       (A) 96 percent of the stabilization program base of the 
     participating dairy operation.
       (B) 92 percent of the marketings of milk for the month by 
     the participating dairy operation.
       (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 program and terminates 
     payment reductions in accordance with section 1436.
       (d) Payment Reduction Exception.--Notwithstanding any 
     preceding subsection of this section, a handler shall make no 
     payment reductions for a participating dairy operation for a 
     month if the participating dairy operation's milk marketings 
     for the month are equal to or less than the percentage of the 
     stabilization program base applicable to the participating 
     dairy operation

[[Page S4010]]

     under paragraph (1), (2), or (3) of subsection (b).

     SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE OF FUNDS.

       (a) Remitting Funds.--As soon as practicable after the end 
     of each month during which payment reductions 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 operations are reduced by the handler 
     under section 1434.
       (b) Deposit of Remitted Funds.--All funds received under 
     subsection (a) shall be available to the Secretary, without 
     further appropriation and until expended, for use or transfer 
     as provided in subsection (c).
       (c) Use of Funds.--
       (1) Availability for certain commodity donations.--Not 
     later than 90 days after the funds described in subsection 
     (a) are due as determined by the Secretary, the Secretary 
     shall obligate the funds for the purpose of--
       (A) purchasing dairy products for donation to food banks 
     and other programs that the Secretary determines appropriate; 
     and
       (B) expanding consumption and building demand for dairy 
     products.
       (2) No duplication of effort.--The Secretary shall ensure 
     that expenditures under paragraph (1) are compatible with, 
     and do not duplicate, programs supported by the dairy 
     research and promotion activities conducted under the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).
       (3) Accounting.--The Secretary shall keep an accurate 
     account of all funds expended under paragraph (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 Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that provides an accurate 
     accounting of--
       (1) the funds received by the Secretary during the 
     preceding fiscal year under subsection (a);
       (2) all expenditures made by the Secretary under subsection 
     (b) during the preceding fiscal year; and
       (3) the impact of the stabilization program on dairy 
     markets.
       (e) Enforcement.--If a participating dairy operation or 
     handler fails to remit or collect the amounts by which 
     payments to participating dairy operations are reduced under 
     section 1434, the participating dairy operation or handler 
     responsible 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 
     available under section 1437, the Secretary may enforce this 
     subsection in the courts of the United States.

     SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.

       (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) Suspension Thresholds.--The stabilization program shall 
     be suspended or the Secretary shall refrain from making the 
     announcement under section 1432(a) if the Secretary 
     determines that--
       (1) the actual dairy production margin is greater than 
     $6.00 per hundredweight of milk for 2 consecutive months;
       (2) the actual dairy production margin is equal to or less 
     than $6.00 (but greater than $5.00) for 2 consecutive months, 
     and during the same 2 consecutive 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 nonfat dry milk is 
     equal to or greater than the world price of skim milk powder;
       (3) the actual dairy production margin is equal to or less 
     than $5.00 (but greater than $4.00) for 2 consecutive months, 
     and during the same 2 consecutive 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 nonfat dry milk is 
     more than 5 percent above the world price of skim milk 
     powder; or
       (4) the actual dairy production margin is equal to or less 
     than $4.00 for 2 consecutive months, and during the same 2 
     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
       (B) the price in the United States for nonfat dry milk is 
     more than 7 percent above the world price of skim milk 
     powder.
       (c) Implementation by Handlers.--Effective on the day after 
     the date of the announcement by the Secretary under 
     subsection (b) of the suspension of the stabilization 
     program, the handler shall cease reducing payments to 
     participating dairy operations under the stabilization 
     program.
       (d) Condition on Resumption of Stabilization Program.--Upon 
     the announcement by the Secretary under subsection (b) that 
     the stabilization program has been suspended, the 
     stabilization program may not be implemented again until, at 
     the earliest--
       (1) 2 months have passed, beginning on the first day of the 
     month immediately following the announcement 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 violation 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 subsection (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.
       (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 district 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 Dairy Operation and Handler Compliance.--
       (1) Audits authorized.--If determined by the Secretary to 
     be necessary to ensure compliance by participating dairy 
     operations and handlers with the stabilization program, the 
     Secretary may conduct periodic audits of participating dairy 
     operations and handlers.
       (2) Sample of dairy operations.--Any audit conducted under 
     this subsection shall include, at a minimum, investigation of 
     a statistically valid and random sample of participating 
     dairy operations.
       (b) Submission of Results.--The Secretary shall submit the 
     results of any audit conducted under subsection (a) to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and include such recommendations as the Secretary 
     considers appropriate regarding the stabilization program.

     SEC. 1439. STUDY; REPORT.

       (a) In General.--The Secretary shall direct the Office of 
     the Chief Economist to conduct a study of the impacts of the 
     program established under section 1431(a).
       (b) Considerations.--The study conducted under subsection 
     (a) shall consider--
       (1) the economic impact of the program throughout the dairy 
     product value chain, including the impact on producers, 
     processors, domestic customers, export customers, actual 
     market growth and potential market growth, farms of different 
     sizes, and different regions and States; and
       (2) the impact of the program on the competitiveness of the 
     United States dairy industry in international markets.
       (c) Report.--Not later than December 1, 2016, the Office of 
     the Chief Economist 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 that describes the results of the study conducted 
     under subsection (a).

                       Subpart C--Administration

     SEC. 1451. DURATION.

       The production margin protection program and the 
     stabilization program shall end on December 31, 2017.

     SEC. 1452. ADMINISTRATION AND ENFORCEMENT.

       (a) In General.--The Secretary shall promulgate regulations 
     to address administrative and enforcement issues involved in 
     carrying out the production margin protection, supplemental 
     production margin protection, and market stabilization 
     programs.
       (b) Reconstitution and Eligibility Issues.--
       (1) Reconstitution.--Using authorities under section 
     1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 
     1308(f), 1308-2), the Secretary shall promulgate regulations 
     to prohibit a dairy producer from reconstituting a dairy 
     operation for the sole purpose of the dairy producer--
       (A) receiving basic margin protection;
       (B) purchasing supplemental margin protection; or
       (C) avoiding participation in the market stabilization 
     program.
       (2) Eligibility issues.--Using authorities under section 
     1001(f) and 1001B of the Food Security Act of 1985 (7 U.S.C. 
     1308(f), 1308-2), the Secretary shall promulgate 
     regulations--
       (A) to prohibit a scheme or device;
       (B) to provide for equitable relief; and
       (C) to provide for other issues affecting eligibility and 
     liability issues.
       (3) Administrative appeals.--Using authorities under 
     section 1001(h) of the Food Security Act of 1985 (7 U.S.C. 
     1308(h)) and subtitle H of the Department of Agriculture 
     Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary 
     shall promulgate regulations to provide for administrative 
     appeals of decisions of the Secretary that are adverse to 
     participants of the programs described in subsection (a).

[[Page S4011]]

                   PART II--DAIRY MARKET TRANSPARENCY

     SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING.

       (a) Definitions.--Section 272(1)(A) of the Agricultural 
     Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is amended by 
     inserting ``, or any other products that may significantly 
     aid price discovery in the dairy markets, as determined by 
     the Secretary'' after ``of 1937''.
       (b) Mandatory Reporting for Dairy Products.--Section 273(b) 
     of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)) 
     is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) In general.--In establishing the program, the 
     Secretary shall only--
       ``(A)(i) subject to the conditions described in paragraph 
     (2), require each manufacturer to report to the Secretary, no 
     less frequently than once per month, information concerning 
     the price, quantity, and moisture content of dairy products 
     sold by the manufacturer and any other product 
     characteristics that may significantly aid price discovery in 
     the dairy markets, as determined by the Secretary; and
       ``(ii) modify the format used to provide the information on 
     the day before the date of enactment of this subtitle to 
     ensure that the information can be readily understood by 
     market participants; and
       ``(B) require each manufacturer and other person storing 
     dairy products (including dairy products in cold storage) to 
     report to the Secretary, no less frequently than once per 
     month, information on the quantity of dairy products 
     stored.''; and
       (2) in paragraph (2), by inserting ``or those that may 
     significantly aid price discovery in the dairy markets'' 
     after ``Federal milk marketing order'' each place it appears 
     in subparagraphs (A), (B), and (C).

     SEC. 1462. FEDERAL MILK MARKETING ORDER INFORMATION.

       (a) Information Clearinghouse.--
       (1) In general.--The Secretary shall, on behalf of each 
     milk marketing order issued under the Agricultural Adjustment 
     Act (7 U.S.C. 601 et seq.), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, establish an 
     information clearinghouse for the purposes of educating the 
     public about the Federal milk marketing order system and any 
     marketing order referenda, including proposal information and 
     timelines that shall be kept current and updated as 
     information becomes available.
       (2) Requirements.--Information under paragraph (1) shall 
     include--
       (A) information on procedures by which cooperatives vote;
       (B) if applicable, information on the manner by which 
     producers may cast an individual ballot;
       (C) in applicable, instructions on the manner in which to 
     vote online;
       (D) due dates for each specific referendum;
       (E) the text of each referendum question under 
     consideration;
       (F) a description in plain language of the question;
       (G) any relevant background information to the question; 
     and
       (H) any other information that increases Federal milk 
     marketing order transparency.
       (b) Notification List for Upcoming Referendum.--Each 
     Federal milk marketing order shall--
       (1) make available the information described in subsection 
     (b) through an Internet site; and
       (2) publicize the information in major agriculture and 
     dairy-specific publications on upcoming referenda.

 PART III--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS

     SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK 
                   INCOME LOSS CONTRACT PROGRAMS.

       (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 Program.--
       (1) Payments under milk income loss contract program.--
     Section 1506(c)(3) of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 8773(c)(3)) is amended--
       (A) in subparagraph (A), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``August 31, 2012, 45 
     percent; and'' and inserting ``June 30, 2013, 45 percent.''; 
     and
       (C) by striking subparagraph (C).
       (2) Extension.--Section 1506(h)(1) of the Food, 
     Conservation, and Energy Act of 2008 (7 U.S.C. 8773(h)(1)) is 
     amended by striking ``September 30, 2012'' and inserting 
     ``June 30, 2013''.
       (3) Repeal.--Effective July 1, 2013, section 1506 of the 
     Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is 
     repealed.

     SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.

       (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--
       (1) by striking subparagraph (D); and
       (2) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (D) and (E), respectively.

     SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.

       Section 1502(e) of the Food, Conservation, and Energy 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. 1474. 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. 1475. EXTENSION 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 ``2012'' 
     and inserting ``2017''.

     SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING ORDER REVIEW 
                   COMMISSION.

       Section 1509(a) of the Food, Conservation, and Energy Act 
     of 2008 (Public Law 110 246; 122 Stat. 1726) is amended by 
     inserting ``or other funds'' after ``Subject to the 
     availability of appropriations''.

                        PART IV--EFFECTIVE DATE

     SEC. 1481. EFFECTIVE DATE.

       Except as otherwise provided in this subtitle, this 
     subtitle and the amendments made by this subtitle take effect 
     on October 1, 2012.

   Subtitle E--Supplemental Agricultural Disaster Assistance Programs

     SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE 
                   PROGRAMS.

       (a) Definitions.--In this section:
       (1) Eligible producer on a farm.--
       (A) In general.--The term ``eligible producer on a farm'' 
     means an individual or entity described in subparagraph (B) 
     that, as determined by the Secretary, assumes the production 
     and market risks associated with the agricultural production 
     of crops or livestock.
       (B) Description.--An individual or entity 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 corporation, or other 
     farm organizational structure organized under State law.
       (2) Farm.--
       (A) In general.--The term ``farm'' means, in relation to an 
     eligible producer on a farm, the total of all crop acreage in 
     all counties that is planted or intended to be planted for 
     harvest, for sale, or on-farm livestock feeding (including 
     native grassland intended for haying) by the eligible 
     producer.
       (B) Aquaculture.--In the case of aquaculture, the term 
     ``farm'' means, in relation to an eligible producer on a 
     farm, all fish being produced in all counties that are 
     intended to be harvested for sale by the eligible producer.
       (C) Honey.--In the case of honey, the term ``farm'' means, 
     in relation to an eligible producer on a farm, all bees and 
     beehives in all counties that are intended to be harvested 
     for a honey crop for sale by the eligible producer.
       (3) Farm-raised fish.--The term ``farm-raised fish'' means 
     any aquatic species that is propagated and reared in a 
     controlled environment.
       (4) Livestock.--The term ``livestock'' includes--
       (A) cattle (including dairy cattle);
       (B) bison;
       (C) poultry;
       (D) sheep;
       (E) swine;
       (F) horses; and
       (G) other livestock, as determined by the Secretary.
       (b) Livestock Indemnity Payments.--
       (1) Payments.--For each of fiscal years 2012 through 2017, 
     the Secretary shall use such sums as are necessary of the 
     funds of the Commodity Credit Corporation to make livestock 
     indemnity 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--
       (A) attacks by animals reintroduced into the wild by the 
     Federal Government or protected by Federal law, including 
     wolves; or
       (B) adverse weather, as determined by the Secretary, during 
     the calendar year, including losses due to hurricanes, 
     floods, blizzards, disease, 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 65 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 payments 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) Establishment.--There is established a livestock forage 
     disaster program to provide 1 source for livestock forage 
     disaster assistance for weather-related forage losses, as 
     determined by the Secretary, by combining--
       (A) the livestock forage assistance functions of--
       (i) the noninsured crop disaster assistance program 
     established by section 196 of the

[[Page S4012]]

     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7333); and
       (ii) the emergency assistance for livestock, honey bees, 
     and farm-raised fish program under section 531(e) of the 
     Federal Crop Insurance Act (7 U.S.C. 1531(e)) (as in 
     existence on the day before the date of enactment of this 
     Act); and
       (B) the livestock forage disaster program under section 
     531(d) of the Federal Crop Insurance Act (7 U.S.C. 1531(d)) 
     (as in existence on the day before the date of enactment of 
     this Act).
       (2) Definitions.--In this subsection:
       (A) Covered livestock.--
       (i) In general.--Except as provided in clause (ii), the 
     term ``covered livestock'' means livestock of an eligible 
     livestock producer that, during the 60 days prior to the 
     beginning date of an eligible forage loss, as determined by 
     the Secretary, the eligible livestock producer--

       (I) owned;
       (II) leased;
       (III) purchased;
       (IV) entered into a contract to purchase;
       (V) was a contract grower; or
       (VI) sold or otherwise disposed of due to an eligible 
     forage loss during--

       (aa) the current production year; or
       (bb) subject to paragraph (4)(B)(ii), 1 or both of the 2 
     production years immediately preceding the current production 
     year.
       (ii) Exclusion.--The term ``covered livestock'' does not 
     include livestock that were or would have been in a feedlot, 
     on the beginning date of the eligible forage loss, 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 forage loss.--The term ``eligible forage 
     loss'' means 1 or more forage losses that occur due to 
     weather-related conditions, including drought, flood, 
     blizzard, hail, excessive moisture, hurricane, and fire, 
     occurring during the normal grazing period, as determined by 
     the Secretary, if the forage--
       (i) is grown on land that is native or improved pastureland 
     with permanent vegetative cover; or
       (ii) is a crop planted specifically for the purpose of 
     providing grazing for covered livestock of an eligible 
     livestock producer.
       (D) Eligible livestock producer.--
       (i) In general.--The term ``eligible livestock producer'' 
     means an eligible producer 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 covered livestock;
       (II) provides the pastureland or grazing land for covered 
     livestock, including cash-leased pastureland or grazing land 
     that is physically located in a county affected by an 
     eligible forage loss;
       (III) certifies the eligible forage loss; and
       (IV) meets all other eligibility requirements established 
     under this subsection.

       (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 another person on a rate-of-gain basis.
       (E) 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 (4)(D)(i), that would be 
     expected from the grazing land or pastureland for livestock 
     during the normal grazing period, in the absence of an 
     eligible forage loss that diminishes the production of the 
     grazing land or pastureland.
       (F) Normal grazing period.--The term ``normal grazing 
     period'', with respect to a county, means the normal grazing 
     period during the calendar year for the county, as determined 
     under paragraph (4)(D)(i).
       (3) Program.--For each of fiscal years 2012 through 2017, 
     the Secretary shall use such sums as are necessary of the 
     funds of the Commodity Credit Corporation to provide 
     compensation under paragraphs (4) through (6), as determined 
     by the Secretary for eligible forage losses affecting covered 
     livestock of eligible livestock producers.
       (4) Assistance for eligible forage losses due to drought 
     conditions.--
       (A) Eligible forage losses.--
       (i) In general.--An eligible livestock producer of covered 
     livestock may receive assistance under this paragraph for 
     eligible forage losses that occur due to drought on land 
     that--

       (I) is native or improved pastureland with permanent 
     vegetative cover; or
       (II) is planted to a crop planted specifically for the 
     purpose of providing grazing for covered livestock.

       (ii) Exclusions.--An eligible livestock producer may not 
     receive assistance under this paragraph for eligible forage 
     losses that occur on land used for haying or grazing under 
     the conservation reserve program 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.), unless the 
     land is grassland eligible for the conservation reserve 
     program under section 1231(d)(2) of the Food Security Act of 
     1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of 
     this Act).
       (B) Monthly payment rate.--
       (i) In general.--Except as provided in clause (ii), the 
     payment rate for assistance for 1 month under this paragraph 
     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 determined 
     under subparagraph (C); or
       (II) the monthly feed cost calculated 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 sold or otherwise disposed of covered 
     livestock 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 determined 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
       (II) in the case of any other type of weight of livestock, 
     an amount determined by the Secretary that represents 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 
     obtained by dividing--

       (I) the higher of--

       (aa) the national average corn price per bushel for the 12-
     month period immediately preceding 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 preceding that March 1; by

       (II) 56.

       (D) Normal grazing period and drought monitor intensity.--
       (i) FSA county committee determinations.--

       (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 Farm Service Agency committee.
       (II) Changes.--No change to the normal carrying capacity or 
     normal 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 consecutive weeks during the normal grazing period 
     for the county, as determined by the Secretary, shall be 
     eligible to receive assistance under this paragraph in an 
     amount equal to 1 monthly payment using the monthly payment 
     rate determined under subparagraph (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) intensity 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 paragraph--

       (aa) in an amount equal to 3 monthly payments using the 
     monthly payment rate determined under subparagraph (B);
       (bb) if the county is rated as having a D3 (extreme 
     drought) intensity in any area of the county for at least 4 
     weeks during the normal grazing period for the county, or is 
     rated as having a D4 (exceptional drought) intensity in any 
     area of the county at any time during the normal grazing 
     period, in an amount equal to 4 monthly payments using the 
     monthly payment rate determined under subparagraph (B); or
       (cc) if the county is rated as having a D4 (exceptional 
     drought) intensity in any area of the county for at least 4 
     weeks during the normal grazing period, in an amount equal to 
     5 monthly payments using the monthly rate determined under 
     subparagraph (B).
       (5) 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 eligible forage losses occur on rangeland 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 equal to 50 percent of the monthly 
     feed cost for the total number of livestock covered by

[[Page S4013]]

     the Federal lease of the eligible livestock producer, as 
     determined under paragraph (4)(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.
       (6) Assistance for eligible forage losses due to other than 
     drought or fire.--
       (A) Eligible forage losses.--
       (i) In general.--Subject to subparagraph (B), an eligible 
     livestock producer of covered livestock may receive 
     assistance under this paragraph for eligible forage losses 
     that occur due to weather-related conditions other than 
     drought or fire on land that--

       (I) is native or improved pastureland with permanent 
     vegetative cover; or
       (II) is planted to a crop planted specifically for the 
     purpose of providing grazing for covered livestock.

       (ii) Exclusions.--An eligible livestock producer may not 
     receive assistance under this paragraph for eligible forage 
     losses that occur on land used for haying or grazing under 
     the conservation reserve program 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.), unless the 
     land is grassland eligible for the conservation reserve 
     program under section 1231(d)(2) of the Food Security Act of 
     1985 (16 U.S.C. 3831(d)(2)) (as amended by section 2001 of 
     this Act).
       (B) Payments for eligible forage losses.--
       (i) In general.--The Secretary shall provide assistance 
     under this paragraph to an eligible livestock producer for 
     eligible forage losses that occur due to weather-related 
     conditions other than--

       (I) drought under paragraph (4); and
       (II) fire on public managed land under paragraph (5).

       (ii) Terms and conditions.--The Secretary shall establish 
     terms and conditions for assistance under this paragraph that 
     are consistent with the terms and conditions for assistance 
     under this subsection.
       (7) No duplicative payments.--An eligible livestock 
     producer may elect to receive assistance for eligible forage 
     losses under either paragraph (4), (5), or (6), if 
     applicable, but may not receive assistance under more than 1 
     of those paragraphs for the same loss, as determined by the 
     Secretary.
       (8) Determinations by secretary.--A determination made by 
     the Secretary under this subsection shall be final and 
     conclusive.
       (d) Emergency Assistance for Livestock, Honey Bees, and 
     Farm-raised Fish.--
       (1) In general.--For each of fiscal years 2012 through 
     2017, the Secretary shall use not more than $5,000,000 of the 
     funds of the Commodity Credit Corporation to provide 
     emergency relief to eligible producers of livestock, honey 
     bees, and farm-raised fish to aid in the reduction of losses 
     due to disease, 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 produces annual crops from trees for 
     commercial purposes.
       (B) Natural disaster.--The term ``natural disaster'' means 
     plant disease, insect infestation, 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 produces nursery, ornamental, fruit, nut, 
     or Christmas 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 fiscal 
     years 2012 through 2017, the Secretary shall use such sums as 
     are necessary of the funds of the Commodity Credit 
     Corporation to provide assistance--
       (i) under paragraph (3) to eligible orchardists and nursery 
     tree growers that planted trees for commercial purposes but 
     lost the trees as a result of a natural disaster, as 
     determined by the Secretary; and
       (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 disaster, as determined by the 
     Secretary.
       (B) Limitation.--An eligible orchardist or nursery tree 
     grower shall qualify for assistance 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 described 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 excess of 15 percent 
     mortality (adjusted for normal mortality); or
       (ii) at the option of the Secretary, sufficient seedlings 
     to reestablish a stand; and
       (B) reimbursement of 50 percent of the cost of pruning, 
     removal, and other costs incurred 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 
     Security Act of 1985 (7 U.S.C. 1308(a)).
       (B) Amount.--The total amount of payments received, 
     directly or indirectly, by a person or legal entity 
     (excluding a joint venture or general partnership) under this 
     subsection may not exceed $100,000 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 payments under this subsection may not 
     exceed 500 acres.
       (f) Payments.--
       (1) Payment limitations.--
       (A) Definitions of legal entity and person.--In this 
     subsection, the terms ``legal entity'' and ``person'' have 
     the meanings given those terms in section 1001(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308(a)).
       (B) Amount.--The total amount of disaster assistance 
     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 exceed $100,000 for any crop 
     year.
       (C) Direct attribution.--Subsections (d) and (e) 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.
       (2) Payment delivery.--The Secretary shall make payments 
     under this section after October 1, 2013, for losses incurred 
     in the 2012 and 2013 fiscal years, and as soon as practicable 
     for losses incurred in any year thereafter.

                       Subtitle F--Administration

     SEC. 1601. ADMINISTRATION GENERALLY.

       (a) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this title.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title shall be final and conclusive.
       (c) Regulations.--
       (1) In general.--Except as otherwise provided 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 regulations and 
     administration of this title and the amendments made by this 
     title and sections 11001 and 11011 of this Act shall be made 
     without regard 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 Reduction Act''); and
       (C) 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.
       (3) Congressional review of agency rulemaking.--In carrying 
     out this subsection, the Secretary 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; adjustment.--If the Secretary 
     determines that expenditures under this title that are 
     subject to the total allowable 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 reporting 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 Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report describing the determination made under 
     that paragraph and the extent of the adjustment to be made.

[[Page S4014]]

     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 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 and through December 31, 2017:
       (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 Agricultural 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 subsections (b) 
     and (c) and inserting the following:
       ``(b) Limitation on Payments for Peanuts and Other Covered 
     Commodities.--The total amount of payments received, directly 
     or indirectly, by a person or legal entity (except a joint 
     venture or general partnership) for any crop year under title 
     I of subtitle A of the Agriculture Reform, Food, and Jobs Act 
     of 2012 for--
       ``(1) peanuts may not exceed $50,000; and
       ``(2) 1 or more other covered commodities may not exceed 
     $50,000.''.
       (b) Conforming Amendments.--
       (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
     1308) is amended--
       (A) in subsection (a)(1), by striking ``section 1001 of the 
     Food, Conservation, and Energy Act of 2008'' and inserting 
     ``section 1104 of the Agriculture Reform, Food, and Jobs Act 
     of 2012'';
       (B) in subsection (d), by inserting ``or title I of the 
     Agriculture Reform, Food, and Jobs Act of 2012'' before the 
     period at the end;
       (C) in subsection (e)--
       (i) in paragraph (1), by striking ``subsections (b) and (c) 
     and a program described in paragraphs (1)(C)'' and inserting 
     ``subsection (b) and a program described in paragraph 
     (1)(B)''; and
       (ii) in paragraph (3)(B), by striking ``subsections (b) and 
     (c)'' each place it appears and inserting ``subsection (b)'';
       (D) in subsection (f)--
       (i) by striking ``or title XII'' each place it appears in 
     paragraphs (5)(A) and (6)(A) and inserting ``, title I of the 
     Agriculture Reform, Food, and Jobs Act of 2012, or title 
     XII'';
       (ii) in paragraph (2), by striking ``Subsections (b) and 
     (c)'' and inserting ``Subsection (b)'';
       (iii) in paragraph (4)(B), by striking ``subsection (b) or 
     (c)'' and inserting ``subsection (b)'';
       (iv) in paragraph (5)--

       (I) in subparagraph (A), by striking ``subsection (d)'' and 
     inserting ``subsection (c)''; and
       (II) in subparagraph (B), by striking ``subsection (b), 
     (c), or (d)'' and inserting ``subsection (b) or (c)''; and

       (v) in paragraph (6)--

       (I) in subparagraph (A), by striking ``subsection (d), 
     except as provided in subsection (g)'' and inserting 
     ``subsection (c), except as provided in subsection (f)''; and
       (II) in subparagraph (B), by striking ``subsections (b), 
     (c), and (d)'' and inserting ``subsections (b) and (c)'';

       (E) in subsection (g)--
       (i) in paragraph (1)--

       (I) bv striking ``subsection (f)(6)(A)'' and inserting 
     ``subsection (e)(6)(A)'' and
       (II) by striking ``subsection (b) or (c)'' and inserting 
     ``subsection (b)''; and

       (ii) in paragraph (2)(A), by striking ``subsections (b) and 
     (c)'' and inserting ``subsection (b)''; and
       (F) by redesignating subsections (d) through (h) as 
     subsections (c) through (g), respectively.
       (2) Section 1001A of the Food Security Act of 1985 (7 
     U.S.C. 1308 1) is amended--
       (A) in subsection (a), by striking ``subsections (b) and 
     (c)'' and inserting ``subsection (b)''; and
       (B) in subsection (b)(1), by striking ``subsection (b) or 
     (c)'' and inserting ``subsection (b)''.
       (3) Section 1001B(a) of the Food Security Act of 1985 (7 
     U.S.C. 1308 2(a)) is amended in the matter preceding 
     paragraph (1) by striking ``subsections (b) and (c)'' and 
     inserting ``subsection (b)''.
       (4) Section 1001C(a) of the Food Security Act of 1985 (7 
     U.S.C. 1308 3(a)) is amended by inserting ``title I of the 
     Agriculture Reform, Food, and Jobs Act of 2012,'' after 
     ``2008,''.
       (c) Application.--The amendments made by this section shall 
     apply beginning with the 2013 crop year.

     SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS.

       Section 1001A of the Food Security Act of 1985 (7 U.S.C. 
     1308 1) is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``or active personal management'' each 
     place it appears in subparagraphs (A)(i)(II) and (B)(ii); and
       (B) in subparagraph (C), by striking ``, as applied to the 
     legal entity, are met by the legal entity, the partners or 
     members making a significant contribution of personal labor 
     or active personal management'' and inserting ``are met by 
     partners or members making a significant contribution of 
     personal labor, those partners or members''; and
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the landowner share-rents the land at a rate that is 
     usual and customary;'';
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) the share of the payments received by the landowner 
     is commensurate with the share of the crop or income received 
     as rent.'';
       (B) in paragraph (2)(A), by striking ``active personal 
     management or'';
       (C) in paragraph (5)--
       (i) by striking ``(5)'' and all that follows through ``(A) 
     In general.--A person'' and inserting the following:
       ``(5) Custom farming services.--A person'';
       (ii) by inserting ``under usual and customary terms'' after 
     ``services''; and
       (iii) by striking subparagraph (B); and
       (D) by adding at the end the following:
       ``(7) Farm managers.--A person who otherwise meets the 
     requirements of this subsection other than (b)(2)(A)(i)(II) 
     shall be considered to be actively engaged in farming, as 
     determined by the Secretary, with respect to the farming 
     operation, including a farming operation that is a sole 
     proprietorship, a legal entity such as a joint venture or 
     general partnership, or a legal entity such as a corporation 
     or limited partnership, if the person--
       ``(A) makes a significant contribution of management to the 
     farming operation necessary for the farming operation, taking 
     into account--
       ``(i) the size and complexity of the farming operation; and
       ``(ii) the management requirements normally and customarily 
     required by similar farming operations;
       ``(B) is the only person in the farming operation 
     qualifying as actively engaged in farming;
       ``(C) does not use the management contribution under this 
     paragraph to qualify as actively engaged in more than 1 
     farming operation; and
       ``(D) manages a farm operation that does not substantially 
     share equipment, labor, or management with persons or legal 
     entities that with the person collectively receive, directly 
     or indirectly, an amount equal to more than the applicable 
     limits under section 1001(b).''.

     SEC. 1605. ADJUSTED GROSS INCOME LIMITATION.

       (a) In General.--Section 1001D(b)) of the Food Security Act 
     of 1985 (7 U.S.C. 1308 3a(b)) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) Commodity programs.--
       ``(A) Limitation.--Notwithstanding any other provision of 
     law, a person or legal entity shall not be eligible to 
     receive any benefit described in subparagraph (B) during a 
     crop, fiscal or program year, as appropriate, if the average 
     adjusted gross income (or comparable measure over the 3 
     taxable years preceding the most immediately preceding 
     complete taxable year, as determined by the Secretary) of the 
     person or legal entity exceeds $750,000.
       ``(B) Covered benefits.--Subparagraph (A) applies with 
     respect to the following:
       ``(i) A payment under section 1105 of the Agriculture 
     Reform, Food, and Jobs Act of 2012.
       ``(ii) A marketing loan gain or loan deficiency payment 
     under subtitle B of title I of the Agriculture Reform, Food, 
     and Jobs Act of 2012.
       ``(iii) A payment under subtitle E of the Agriculture 
     Reform, Food, and Jobs Act of 2012.''.
       ``(iv) A payment under section 196 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7333).''.
       (b) Application.--The amendments made by this section shall 
     apply beginning with the 2013 crop year.

     SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

       Section 1621(d) of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 8792(d)) is amended by striking ``2012'' 
     and inserting ``2017''.

[[Page S4015]]

     SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

       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 Energy 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 Agriculture Reform, Food, and Jobs 
     Act of 2012''.

     SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RECEIVING 
                   PAYMENTS UNDER FARM COMMODITY PROGRAMS.

       (a) Reconciliation.--At least twice each year, the 
     Secretary shall reconcile social security numbers of all 
     individuals who receive payments under this title, whether 
     directly or indirectly, with the Commissioner of Social 
     Security to determine if the individuals are alive.
       (b) Preclusion.--The Secretary shall preclude the issuance 
     of payments to, and on behalf of, deceased individuals that 
     were not eligible for payments.

     SEC. 1609. APPEALS.

       (a) Direction, Control, and Support.--Section 272 of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6992) is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Direction, Control, and Support.--
       ``(1) Direction and control.--
       ``(A) In general.--Except as provided in paragraph (2), the 
     Director shall be free from the direction and control of any 
     person other than the Secretary or the Deputy Secretary of 
     Agriculture.
       ``(B) Administrative support.--The Division shall not 
     receive administrative support (except on a reimbursable 
     basis) from any agency other than the Office of the 
     Secretary.
       ``(C) Prohibition on delegation.--The Secretary may not 
     delegate to any other officer or employee of the Department, 
     other than the Deputy Secretary of Agriculture or the 
     Director, the authority of the Secretary with respect to the 
     Division.
       ``(2) Exception.--The Assistant Secretary for 
     Administration is authorized to investigate, enforce, and 
     implement the provisions in law, Executive order, or 
     regulations that relate in general to competitive and 
     excepted service positions and employment within the 
     Division, including the position of Director, and such 
     authority may be further delegated to subordinate 
     officials.''.
       (b) Determination of Appealability of Agency Decisions.--
     Section 272 of the Department of Agriculture Reorganization 
     Act of 1994 (7 U.S.C. 6992) is amended by striking subsection 
     (d) and inserting the following:
       ``(d) Determination of Appealability of Agency Decisions.--
       ``(1) Definition of a matter of general applicability.--In 
     this subsection, the term `a matter of general applicability' 
     means a matter that challenges the merits or authority of a 
     rule, procedure, local or national program practice, or 
     determination of an agency that applies, or can apply, to 
     more than 1 interested party as opposed to the particular 
     application of the rule, procedure, or practice to a specific 
     set of facts or the facts themselves as the facts apply to 1 
     particular interested party.
       ``(2) Matters not subject to appeal.--The Division may not 
     hear appeals--
       ``(A) unless the determination of the agency is adverse to 
     the appellant;
       ``(B) that involve matters of general applicability; and
       ``(C) that involve requests for equitable relief unless the 
     equitable relief has been denied by the agency.
       ``(3) Equitable relief.--
       ``(A) In general.--An appeal requesting equitable relief 
     may not be granted by the Director to an appellant unless, 
     using the rules and practices that the agency applies to 
     itself, the agency could in fact have granted the relief 
     because the appellant acted in good faith, but failed to 
     fully comply with the requirement of the rule or practice of 
     the agency.
       ``(B) Remand.--If it cannot be determined whether the 
     agency would have granted equitable relief because the 
     appellant acted in good faith, but failed to comply with the 
     rule or practice of the agency, the matter shall be remanded 
     to the agency for further consideration.
       ``(4) Determination of appealability.--If an officer, 
     employee, or committee of an agency determines that a 
     decision is not appealable and a participant appeals the 
     decision to the Director, the Director shall determine 
     whether the decision is adverse to the individual participant 
     and appealable or is a matter of general applicability and 
     not subject to appeal.
       ``(5) Appealability of determination.--The determination of 
     the Director as to whether a decision is appealable is 
     final.''.
       (c) Equitable Relief.--Section 278 of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6998) is 
     amended by striking subsection (d).
       (d) Conforming Amendment.--Section 296(b) of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) 
     is amended--
       (1) in paragraph (6)(C), by striking ``or'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(8) the authority of the Secretary to carry out 
     amendments to sections 272 and 278 made by the Agriculture 
     Reform, Food, and Jobs Act of 2012.''.

     SEC. 1610. TECHNICAL CORRECTIONS.

       (a) 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)(1) Section 1603(g) of the Food, Conservation, and 
     Energy Act of 2008 (Public Law 110 246; 122 Stat. 1739) is 
     amended in paragraphs (2) through (6) and the amendments made 
     by those paragraphs by striking ``1703(a)'' each place it 
     appears and inserting ``1603(a)''.
       (2) 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).

     SEC. 1611. 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 assignment made 
     under this section.

     SEC. 1612. 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 titles I and 
     II and the amendments made by those titles.

     SEC. 1613. SIGNATURE AUTHORITY.

       (a) In General.--In carrying out this title and title II 
     and amendments made by those titles, if the Secretary 
     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 document on 
     behalf of the applicant or any other individual, entity, 
     general partnership, or joint venture, or the documents 
     relied upon were determined inadequate or invalid, unless the 
     person signing the program document knowingly and willfully 
     falsified the evidence of signature authority or a signature.
       (b) Affirmation.--
       (1) In general.--Nothing in this section prohibits the 
     Secretary from asking a proper party to affirm any document 
     that otherwise would be considered approved under subsection 
     (a).
       (2) No retroactive effect.--A denial of benefits based on a 
     lack of affirmation under paragraph (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 Secretary of the 
     documents in good faith; and
       (B) substantively complied with all program requirements.

     SEC. 1614. 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 paperwork, forms, and 
     other administrative requirements;
       (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 enhance 
     efficiency and effectiveness of program delivery to 
     producers.
       (b) Implementation.--On October 1, 2013, the Secretary 
     shall make available to the Farm Service Agency to carry out 
     this title $100,000,000.

                         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 Security Act of 
     1985 (16 U.S.C. 3831(a)) is amended by striking ``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 enactment of the Agriculture 
     Reform, Food, and Jobs Act of 2012'';
       (2) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (2);
       (3) by inserting before paragraph (4) the following:
       ``(3) grassland that--
       ``(A) contains forbs or shrubland (including improved 
     rangeland and pastureland) for which grazing is the 
     predominant use;
       ``(B) is located in an area historically dominated by 
     grassland; and
       ``(C) could provide habitat for animal and plant 
     populations of significant ecological value if the land is 
     retained in its current use or restored to a natural 
     condition;'';
       (4) in paragraph (4)(C), by striking ``filterstrips devoted 
     to trees or shrubs'' and inserting ``filterstrips and 
     riparian buffers devoted to trees, shrubs, or grasses''; and
       (5) by striking paragraph (5) and inserting the following:
       ``(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 in a practice other than 
     as a buffer or filterstrip; and
       ``(B) the remainder of the field is--

[[Page S4016]]

       ``(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.''.
       (d) Enrollment.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Enrollment.--
       ``(1) Maximum acreage enrolled.--The Secretary may maintain 
     in the conservation reserve at any 1 time during--
       ``(A) fiscal year 2012, no more than 32,000,000 acres;
       ``(B) fiscal year 2013, no more than 30,000,000 acres;
       ``(C) fiscal year 2014, no more than 27,500,000 acres;
       ``(D) fiscal year 2015, no more than 26,500,000 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) Grassland.--
       ``(A) Limitation.--For purposes of applying the limitations 
     in paragraph (1), no more than 1,500,000 acres of the land 
     described in subsection (b)(3) may be enrolled in the program 
     at any 1 time during the 2013 through 2017 fiscal years.
       ``(B) Priority.--In enrolling acres under subparagraph (A), 
     the Secretary may give priority to land with expiring 
     conservation reserve program contracts.
       ``(C) Method of enrollment.--In enrolling acres under 
     subparagraph (A), the Secretary shall make the program 
     available to owners or operators of eligible land at least 
     once during each fiscal year.''.
       (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:
       ``(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 
     limitations prescribed under this section, specify the 
     duration of the contract.''.
       (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 ``watersheds.--
     Watersheds'' and inserting ``areas.--Areas''; and
       (3) in paragraph (3), by striking ``a watershed's 
     designation--'' and all that follows through the period at 
     the end and inserting ``an area's designation if the 
     Secretary finds that the area no longer contains 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 amended--
       (1) by striking ``2012'' and inserting ``2017''; and
       (2) by striking ``a program'' and inserting ``a farmable 
     wetland program''.
       (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 production''.
       (c) Clerical Amendments.--Section 1231B of the Food 
     Security Act of 1985 (16 U.S.C. 3831b) is amended--
       (1) by striking the heading and inserting the following:

     ``SEC. 1231B. FARMABLE WETLAND PROGRAM.'';

     and
       (2) in subsection (f)(2), by striking ``section 
     1234(c)(2)(B)'' and inserting ``section 1234(c)(2)(A)(ii)''.

     SEC. 2003. DUTIES OF OWNERS AND OPERATORS.

       (a) Limitation on Harvesting, Grazing or Commercial 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 section 
     1233(b);''.
       (b) Conservation Plan Requirements.--Section 1232 of the 
     Food Security Act of 1985 (16 U.S.C. 3832) is amended by 
     striking subsection (b) and inserting the following:
       ``(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 return for a 
     contract entered into by an owner or operator, the Secretary 
     shall--
       ``(1) share the cost of carrying out the conservation 
     measures and practices set forth in the contract for which 
     the Secretary determines that cost sharing is appropriate and 
     in the public interest; and
       ``(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 cropland or other 
     eligible land normally devoted to the production of an 
     agricultural commodity on a farm or ranch to a less intensive 
     use;
       ``(B) the retirement of any cropland base and allotment 
     history that the owner or operator agrees to retire 
     permanently; and
       ``(C) the development and management of grassland for 
     multiple natural resource conservation benefits, including 
     soil, water, air, and wildlife.
       ``(b) Specified Activities Permitted.--The Secretary shall 
     permit certain activities or commercial uses of land that is 
     subject to the contract if those activities or uses are 
     consistent with a plan approved by the Secretary and 
     include--
       ``(1) harvesting, grazing, or other commercial use of the 
     forage in response to drought, flooding, or other emergency 
     without any reduction in the rental rate;
       ``(2) grazing by livestock of a beginning farmer or rancher 
     without any reduction in the rental rate, if the grazing is--
       ``(A) consistent with the conservation of soil, water 
     quality, and wildlife habitat (including habitat during the 
     primary nesting season for critical birds in the area); and
       ``(B) described in subparagraph (B) or (C) of paragraph 
     (3);
       ``(3) consistent with the conservation of soil, water 
     quality, and wildlife habitat (including habitat during the 
     primary nesting season for critical 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 commercial use 
     (including the managed harvesting of biomass), except that in 
     permitting those activities the Secretary, in coordination 
     with the State technical committee--
       ``(i) shall develop appropriate vegetation management 
     requirements; and
       ``(ii) shall identify periods during which the activities 
     may be conducted, such that the frequency is at least once 
     every 5 years but not more than once every 3 years;
       ``(B) prescribed grazing for the control of invasive 
     species, which may be conducted annually;
       ``(C) routine grazing, except that in permitting routine 
     grazing, the Secretary, in coordination with the State 
     technical committee--
       ``(i) shall develop appropriate vegetation management 
     requirements and stocking rates for the land that are 
     suitable for continued routine grazing; and
       ``(ii) shall identify the periods during which routine 
     grazing may be conducted, such that the frequency is not more 
     than once every 2 years, taking into consideration regional 
     differences such as--

       ``(I) climate, soil type, and natural 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

       ``(D) 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 turbines that may be installed, taking into 
     account--
       ``(i) the location, size, and other physical 
     characteristics of the land;
       ``(ii) the extent to which the land contains threatened or 
     endangered wildlife and wildlife habitat; and
       ``(iii) the purposes of the conservation reserve program 
     under this subchapter; and
       ``(4) the intermittent and seasonal use of vegetative 
     buffer practices incidental to agricultural production on 
     land adjacent to the buffer such that the permitted use does 
     not destroy the permanent vegetative cover.
       ``(c) Authorized Activities on Grassland.--Notwithstanding 
     section 1232(a)(8), for eligible land described in section 
     1231(b)(3), the Secretary 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 appropriate to that locality.
       ``(2) Haying, mowing, or harvesting for seed production, 
     subject to appropriate restrictions during the primary 
     nesting season for critical birds in the area.
       ``(3) Fire presuppression, rehabilitation, and construction 
     of fire breaks.
       ``(4) Grazing-related activities, such as fencing and 
     livestock watering.
       ``(d) Resource Conserving Use.--
       ``(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 highly erodible land after 
     expiration of the contract.

[[Page S4017]]

       ``(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) Reenrollment prohibited.--Land altered under 
     paragraph (1) may not be reenrolled in the conservation 
     reserve program for 5 years.
       ``(4) Payment.--The Secretary shall provide an annual 
     payment that is reduced in an amount commensurate with any 
     income or other compensation received as a result of the 
     activities carried out under paragraph (1).''.

     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).
       (b) Incentives.--Section 1234(b)(3)(B) of the Food Security 
     Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amended--
       (1) in clause (i), by inserting ``, practices to improve 
     the condition of resources on the land,'' after 
     ``operator)''; and
       (2) by adding at the end the following:
       ``(iii) Incentives.--In making rental payments to an owner 
     or operator of land described in subparagraph (A), the 
     Secretary may provide incentive payments sufficient to 
     encourage proper thinning and practices to improve the 
     condition of resources on the land.''.
       (c) 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 ``and other eligible 
     land'' after ``highly erodible cropland'' both places it 
     appears;
       (2) by striking paragraph (2) and inserting the following:
       ``(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 Secretary determines are 
     appropriate.
       ``(B) Grassland.--In the case of eligible land described in 
     section 1231(b)(3), the Secretary shall make annual payments 
     in an amount that is not more than 75 percent of the grazing 
     value of the land covered by the contract.''; and
       (3) in paragraph (5)(A)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(i) Survey.--The Secretary''; and
       (B) by adding at the end the following:
       ``(ii) Use.--The Secretary may use the survey of dryland 
     cash rental rates described in clause (i) as a factor in 
     determining rental rates under this section as the Secretary 
     determines appropriate.''.
       (d) Payment Schedule.--Section 1234 of the Food Security 
     Act of 1985 (16 U.S.C. 3834) is amended by striking 
     subsection (d) and inserting the following:
       ``(d) Payment Schedule.--
       ``(1) In general.--Except as otherwise provided in this 
     section, payments under this subchapter shall be made in cash 
     in such amount and on such time schedule as is agreed on and 
     specified in the contract.
       ``(2) Source.--Payments under this subchapter shall be made 
     using the funds of the Commodity Credit Corporation.
       ``(3) Advance payment.--Payments under this subchapter may 
     be made in advance of determination of performance.''.
       (e) Payment Limitation.--Section 1234(f) of the Food 
     Security Act of 1985 (16 U.S.C. 3834(f)) is amended--
       (1) in paragraph (1), by striking ``, including rental 
     payments made in the form of in-kind commodities,'';
       (2) by striking paragraph (3); and
       (3) by redesignating paragraph (4) as paragraph (2).

     SEC. 2006. CONTRACT REQUIREMENTS.

       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 
     rancher.--In the case of a contract modification approved 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 (D), by striking ``the farmer or 
     rancher'' and inserting ``the covered farmer or rancher''; 
     and
       (C) in subparagraph (E), by striking ``section 
     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 provided under section 
     1234(c)(2)(A)(ii)''.

     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 title shall 
     take effect on October 1, 2012, except, the amendment made by 
     section 2001(d), which shall take effect on the date of 
     enactment of this Act.
       (b) Effect on Existing Contracts.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this title 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 required to be 
     made in connection with the contract.
       (2) Updating of existing contracts.--The Secretary shall 
     permit an owner or operator with a contract entered into 
     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, to update the contract to reflect the 
     activities and uses of land under contract permitted under 
     the terms and conditions of paragraphs (1) and (2) of section 
     1233(b) of that Act (as amended by section 2004).

              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 Security 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 producer at the time 
     the producer enters into a contract under the program; and
       ``(B) operated with equipment, labor, management, and 
     production or cultivation practices that are substantially 
     separate from other agricultural operations, as determined by 
     the Secretary.
       ``(2) Conservation activities.--
       ``(A) In general.--The term `conservation activities' means 
     conservation systems, practices, or management measures.
       ``(B) Inclusions.--The term `conservation activities' 
     includes--
       ``(i) structural measures, vegetative measures, and land 
     management measures, including agriculture drainage 
     management systems, as determined by the Secretary; and
       ``(ii) planning needed to address a priority resource 
     concern.
       ``(3) Conservation stewardship plan.--The term 
     `conservation stewardship plan' means a plan that--
       ``(A) identifies and inventories priority resource 
     concerns;
       ``(B) establishes benchmark data and conservation 
     objectives;
       ``(C) describes conservation activities to be implemented, 
     managed, or improved; and
       ``(D) includes a schedule and evaluation plan for the 
     planning, installation, and management of the new and 
     existing conservation activities.
       ``(4) Eligible land.--
       ``(A) In general.--The term `eligible land' means--
       ``(i) private and tribal land on which agricultural 
     commodities, livestock, or forest-related products are 
     produced; and
       ``(ii) land associated with the land described in clause 
     (i) on which priority resource concerns could be addressed 
     through a contract under the program.
       ``(B) Inclusions.--The term `eligible land' includes--
       ``(i) cropland;
       ``(ii) grassland;
       ``(iii) rangeland;
       ``(iv) pastureland;
       ``(v) nonindustrial private forest land; and
       ``(vi) other agricultural land (including cropped woodland, 
     marshes, and agricultural land used for the production of 
     livestock), as determined by the Secretary.
       ``(5) Priority resource concern.--The term `priority 
     resource concern' means a natural resource 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 the State;
       ``(B) represents a significant concern in a State or 
     region; and
       ``(C) is likely to be addressed successfully through the 
     implementation of conservation activities 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 management 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 carry out a 
     conservation stewardship program to encourage producers to 
     address priority resource concerns and improve and conserve 
     the quality and condition of natural resources in a 
     comprehensive manner--
       ``(1) by undertaking additional conservation activities; 
     and
       ``(2) by improving, maintaining, and managing existing 
     conservation activities.
       ``(b) Exclusions.--

[[Page S4018]]

       ``(1) Land enrolled in other conservation programs.--
     Subject to paragraph (2), the following land (even if covered 
     by the definition of eligible land) is not eligible for 
     enrollment in the program:
       ``(A) Land enrolled in the conservation reserve program.
       ``(B) Land enrolled in the Agricultural Conservation 
     Easement Program in a wetland easement.
       ``(C) Land enrolled in the conservation security 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 determined by the 
     Secretary.

     ``SEC. 1238F. STEWARDSHIP CONTRACTS.

       ``(a) Submission of Contract Offers.--To be eligible to 
     participate in the conservation stewardship program, a 
     producer shall submit a contract offer for the agricultural 
     operation that--
       ``(1) demonstrates to the satisfaction of the Secretary 
     that the producer, at the time of the contract offer, is 
     meeting the stewardship threshold for at least 2 priority 
     resource concerns; and
       ``(2) would, at a minimum, meet or exceed the stewardship 
     threshold for at least 1 additional priority resource concern 
     by the end of the stewardship contract by--
       ``(A) installing and adopting additional conservation 
     activities; and
       ``(B) improving, maintaining, and managing existing 
     conservation activities on the 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 evaluating contract 
     offers the Secretary shall rank applications based on--
       ``(A) the level of conservation treatment on all applicable 
     priority resource concerns at the time of application;
       ``(B) the degree to which the proposed conservation 
     activities effectively increase conservation performance;
       ``(C) the number of applicable priority resource 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 resource concerns 
     will be addressed to meet or exceed the stewardship threshold 
     by the end of the contract period;
       ``(E) the extent to which the actual and anticipated 
     conservation benefits from the contract 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 agricultural production.
       ``(2) Prohibition.--The Secretary may not assign 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 the Secretary determines 
     are necessary to ensure that national, State, and local 
     priority resource concerns are effectively addressed.
       ``(c) Entering Into Contracts.--After a determination 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 conservation 
     stewardship contract with the producer to enroll the eligible 
     land to be covered by the contract.
       ``(d) Contract Provisions.--
       ``(1) Term.--A conservation stewardship contract 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 contract under section 1238G(d);
       ``(B) require the producer--
       ``(i) to implement a conservation stewardship plan that 
     describes the program purposes to be achieved through 1 or 
     more conservation activities;
       ``(ii) to maintain and supply information as required by 
     the Secretary to determine compliance with the conservation 
     stewardship plan and any other requirements 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 eligible land that--
       ``(i) maintain the agricultural nature of the land; and
       ``(ii) are consistent with the conservation purposes of the 
     conservation stewardship 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 contract due to circumstances beyond the 
     control of the producer, including a disaster or related 
     condition, as determined by the Secretary;
       ``(E) include provisions where upon the violation of a term 
     or condition of the contract at any time the producer has 
     control of the land--
       ``(i) if the Secretary determines that the violation 
     warrants termination of the contract--

       ``(I) to forfeit all rights to receive payments under the 
     contract; and
       ``(II) to refund all or a portion of the payments received 
     by the producer under the contract, including any interest on 
     the payments, as determined by the Secretary; or

       ``(ii) if the Secretary determines that the violation does 
     not warrant termination of the contract, to refund or accept 
     adjustments to the payments provided to the producer, as the 
     Secretary determines to be appropriate;
       ``(F) include provisions in accordance with paragraphs (3) 
     and (4) of this section; and
       ``(G) include any additional provisions the Secretary 
     determines are necessary to carry out the program.
       ``(3) Change of interest in land subject to a contract.--
       ``(A) In general.--At the time of application, a producer 
     shall have control of the eligible land to be enrolled in the 
     program. Except as provided in subparagraph (B), a change in 
     the interest of a producer in eligible land covered by a 
     contract under the program shall result in the termination of 
     the contract with regard to that land.
       ``(B) Transfer of duties and rights.--Subparagraph (A) 
     shall not apply if--
       ``(i) within a reasonable period of time (as determined by 
     the Secretary) after the date of the change in the interest 
     in all or a portion of the land covered by a contract under 
     the program, the transferee of the land provides written 
     notice to the Secretary that 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 eligibility requirements of 
     the program; and
       ``(iii) the Secretary approves the transfer of all duties 
     and rights under the contract.
       ``(4) Modification and termination of contracts.--
       ``(A) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract with a producer if--
       ``(i) the producer agrees to the modification 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 Secretary determines that the producer 
     violated the contract.
       ``(5) Repayment.--If a contract is terminated, the 
     Secretary may, consistent with the purposes of the program--
       ``(A) allow the producer to retain payments already 
     received under the contract; or
       ``(B) require repayment, in whole or in part, of payments 
     received and assess liquidated damages.
       ``(e) Contract Renewal.--At the end of the initial 5-year 
     contract period, the Secretary may allow the producer to 
     renew the contract for 1 additional 5-year period if the 
     producer--
       ``(1) demonstrates compliance with the terms of the 
     existing contract;
       ``(2) agrees to adopt and continue to integrate 
     conservation activities across the entire agricultural 
     operation as determined by the Secretary; and
       ``(3) agrees, at a minimum, to meet or exceed the 
     stewardship threshold for at least 2 additional priority 
     resource concerns on the agricultural operation by the end of 
     the contract period.

     ``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 producers on a 
     continuous enrollment basis with 1 or more ranking periods, 1 
     of which shall occur in the first quarter of each fiscal 
     year;
       ``(2) identify not less than 5 priority resource concerns 
     in a particular watershed or other appropriate region or area 
     within a State; and
       ``(3) establish a science-based stewardship threshold for 
     each priority resource concern identified under subparagraph 
     (2).
       ``(b) Allocation to States.--The Secretary shall allocate 
     acres to States for enrollment, based--
       ``(1) primarily on each State's proportion of eligible land 
     to the total acreage of eligible land in all States; and
       ``(2) also on consideration of--
       ``(A) the extent and magnitude of the conservation needs 
     associated with agricultural production in each State;
       ``(B) the degree to which implementation of the program in 
     the State is, or will be, effective in helping producers 
     address those needs; and
       ``(C) other considerations to achieve equitable geographic 
     distribution of funds, as determined by the Secretary.
       ``(c) Acreage Enrollment Limitation.--During the period 
     beginning on October 1, 2012, and ending on September 30, 
     2021, the Secretary shall, to the maximum extent 
     practicable--

[[Page S4019]]

       ``(1) enroll in the program an additional 10,348,000 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 Secretary shall 
     provide annual payments under the program to compensate the 
     producer for--
       ``(A) installing and adopting additional conservation 
     activities; and
       ``(B) improving, maintaining, and managing conservation 
     activities in place at the 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 maximum extent practicable, on 
     the following factors:
       ``(A) Costs incurred by the producer associated with 
     planning, design, materials, installation, labor, management, 
     maintenance, or training.
       ``(B) Income forgone by the producer.
       ``(C) Expected conservation benefits.
       ``(D) The extent to which priority resource concerns will 
     be addressed through the installation 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 agricultural operation for 
     all applicable priority resource concerns over the term of 
     the contract.
       ``(G) Such other factors as determined by the Secretary.
       ``(3) Exclusions.--A payment to a producer under this 
     subsection shall not be provided for--
       ``(A) the design, construction, or maintenance of animal 
     waste storage or treatment facilities or associated waste 
     transport or transfer devices for animal feeding operations; 
     or
       ``(B) conservation activities for which there is no cost 
     incurred or income forgone to the producer.
       ``(4) Delivery of payments.--In making stewardship 
     payments, the Secretary shall, to the extent practicable--
       ``(A) prorate conservation performance over the term of the 
     contract so as to accommodate, to the extent practicable, 
     producers earning equal annual stewardship payments in each 
     fiscal year; and
       ``(B) make stewardship payments as soon as practicable 
     after October 1 of each fiscal year for activities carried 
     out in the previous fiscal year.
       ``(e) Supplemental Payments for Resource-conserving Crop 
     Rotations.--
       ``(1) Availability of payments.--The Secretary shall 
     provide additional payments to producers that, in 
     participating in the program, agree to adopt resource-
     conserving crop rotations to achieve beneficial crop 
     rotations as appropriate for the eligible land of the 
     producers.
       ``(2) Beneficial crop rotations.--The Secretary shall 
     determine whether a resource-conserving crop rotation is a 
     beneficial crop rotation eligible for additional payments 
     under paragraph (1), based on whether the resource-conserving 
     crop rotation is designed 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 the resource-conserving crop rotations for the 
     term of the contract.
       ``(4) Resource-conserving crop rotation.--In this 
     subsection, the term `resource-conserving crop rotation' 
     means a crop rotation that--
       ``(A) includes at least 1 resource conserving crop (as 
     defined by the Secretary);
       ``(B) reduces erosion;
       ``(C) improves soil fertility and tilth;
       ``(D) interrupts pest cycles; and
       ``(E) in applicable areas, reduces depletion of soil 
     moisture or otherwise reduces the need for irrigation.
       ``(f) Payment Limitations.--A person or legal entity may 
     not receive, directly or indirectly, payments under the 
     program that, in the aggregate, exceed $200,000 under all 
     contracts entered into during fiscal years 2013 through 2017, 
     excluding funding arrangements with Indian tribes, regardless 
     of the number of contracts entered into under the program by 
     the person or legal entity.
       ``(g) Specialty Crop and Organic Producers.--The Secretary 
     shall ensure that outreach and technical assistance are 
     available, and program specifications are appropriate to 
     enable specialty crop and organic producers to participate in 
     the program.
       ``(h) Coordination With Organic Certification.--The 
     Secretary shall establish a transparent means by which 
     producers may initiate organic certification 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 reasonable 
     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.--
       (1) In general.--The amendment made by this section shall 
     not affect the validity or terms of any contract entered into 
     by the Secretary of Agriculture under subchapter B of chapter 
     2 of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3838d et seq.) before October 1, 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)) may be 
     used to administer and make payments to program participants 
     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;
       (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:
       ``(B) develop and improve 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--
       (1) by striking paragraph (2) and redesignating paragraphs 
     (3) through (6) as paragraphs (2) through (5), respectively; 
     and
       (2) in paragraph (2) (as so redesignated), by inserting 
     ``established under the Organic Foods Production Act of 1990 
     (7 U.S.C. 6501 et seq.)'' after ``national organic program''.

     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:
       ``(2) Term.--A contract under the program shall have a term 
     that does not exceed 10 years.'';
       (3) in subsection (d)--
       (A) in paragraph (3), by striking subparagraphs (A) through 
     (G) and inserting the following:
       ``(A) soil health;
       ``(B) water quality and quantity improvement;
       ``(C) nutrient management;
       ``(D) pest management;
       ``(E) air quality improvement;
       ``(F) wildlife habitat development, including pollinator 
     habitat;
       ``(G) invasive species management; or
       ``(H) other resource issues of regional or national 
     significance, as determined by the Secretary.''; and
       (B) in paragraph (4)--
       (i) 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
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Advance payments.--
       ``(i) In general.--Not more than 30 percent of the amount 
     determined under subparagraph (A) may be provided in advance 
     for the purpose of purchasing materials or contracting.
       ``(ii) Return of funds.--If funds provided in advance are 
     not expended during 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:
       ``(f) Allocation of Funding.--
       ``(1) Livestock.--For each of fiscal years 2013 through 
     2017, at least 60 percent of the funds made available for 
     payments under the program shall be targeted at practices 
     relating to livestock production.
       ``(2) Wildlife habitat.--For each of fiscal years 2013 
     through 2017, at least 5 percent of the funds made available 
     for payments under the program shall be targeted at practices 
     benefitting wildlife habitat under subsection (g).''; and
       (5) by striking subsection (g) and inserting the following:
       ``(g) Wildlife Habitat Incentive Practice.--The Secretary 
     shall provide payments under the program for conservation 
     practices that support the restoration, development, 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 irregular areas of 
     a field; and
       ``(6) other types of wildlife habitat, as determined by the 
     Secretary.''.

[[Page S4020]]

     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 ``environmental'' and 
     inserting ``conservation''; and
       (2) in paragraph (3), by striking ``purpose of the 
     environmental quality incentives program specified in section 
     1240(1)'' and inserting ``purposes of the 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''.

     SEC. 2206. LIMITATION ON PAYMENTS.

       Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
     3839aa 7) is amended--
       (1) in subsection (a)--
       (A) by striking ``by the person or entity during any six-
     year period,'' and inserting ``during fiscal years 2013 
     through 2017''; and
       (B) by striking ``federally recognized'' and all that 
     follows through the period and inserting ``Indian tribes 
     under section 1244(l).''; and
       (2) in subsection (b)(2), by striking ``any six-year 
     period'' and inserting ``fiscal years 2013 through 2017''.

     SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

       Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
     3839aa 8) is amended by striking subsection (b) and inserting 
     the following:
       ``(b) Reporting.--Not later than December 31, 2013, and 
     every 2 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 title shall 
     take effect on October 1, 2012.
       (b) Effect on Existing Contracts.--The amendments made by 
     this title 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.) 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 Security Act of 
     1985 is amended by adding at the end the following:

        ``Subtitle H--Agricultural Conservation Easement Program

     ``SEC. 1265. ESTABLISHMENT AND PURPOSES.

       ``(a) Establishment.--The Secretary shall establish 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 established under section 1237, 
     the grassland reserve program established under section 
     1238N, and the farmland protection program established under 
     section 1238I;
       ``(2) restore, protect, and enhance wetland on eligible 
     land;
       ``(3) protect the agricultural use, viability, and related 
     conservation values of eligible land by limiting 
     nonagricultural uses of that land; and
       ``(4) protect grazing uses and related conservation values 
     by restoring and conserving eligible land.

     ``SEC. 1265A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Agricultural land easement.--The term `agricultural 
     land easement' means an easement or other interest in 
     eligible land that--
       ``(A) is conveyed for the purposes of protecting natural 
     resources and the agricultural nature of the land, and of 
     promoting agricultural viability for future generations; and
       ``(B) permits the landowner the right to continue 
     agricultural production and related uses subject to an 
     agricultural land easement plan.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) an agency of State or local government or an Indian 
     tribe (including farmland protection board or land resource 
     council established under State law); or
       ``(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 section 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 section 509(a) of that Code; 
     or
       ``(II) section 509(a)(3) of that Code and is controlled by 
     an organization 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--
       ``(i) that is subject to a pending offer for purchase from 
     an eligible entity;
       ``(ii) that--

       ``(I) has prime, unique, or other productive soil;
       ``(II) contains historical or archaeological resources; or
       ``(III) the protection of which will further a State or 
     local policy consistent with the purposes of the program; and

       ``(iii) that is--

       ``(I) cropland;
       ``(II) rangeland;
       ``(III) grassland or land that contains forbs, or shrubland 
     for which grazing is the predominant 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;

       ``(B) in the case of a wetland easement, a wetland or 
     related area, including--
       ``(i) farmed or converted wetland, together with the 
     adjacent land that is functionally dependent on that land if 
     the Secretary 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 a 
     closed basin lake or pothole, as determined by the Secretary, 
     together (where practicable) with the adjacent land that is 
     functionally dependent on the cropland or grassland;
       ``(iii) farmed wetland and adjoining land that--

       ``(I) is enrolled in the conservation reserve program;
       ``(II) has the highest wetland functions and values; and
       ``(III) is likely to return to production after the land 
     leaves the conservation reserve program;

       ``(iv) riparian areas that link wetland that is protected 
     by easements or some other device that achieves the same 
     purpose as an easement; or
       ``(v) other wetland of an owner that would not otherwise be 
     eligible if the Secretary determines that the inclusion of 
     such wetland in such easement would significantly add to the 
     functional value of the easement; and
       ``(C) in the case of both an agricultural land easement or 
     wetland easement, other land that is incidental to eligible 
     land if the Secretary determines that it is necessary for the 
     efficient administration of the easements under this program.
       ``(4) Program.--The term `program' means the Agricultural 
     Conservation Easement Program established 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 of agricultural land easements and other 
     interests in eligible land; and
       ``(2) technical assistance to provide for the conservation 
     of natural resources pursuant to an agricultural land 
     easement plan.
       ``(b) Cost-share Assistance.--
       ``(1) In general.--The Secretary shall provide cost-share 
     assistance to eligible entities for purchasing agricultural 
     land easements to protect the agricultural use, including 
     grazing, and related conservation values of eligible land.
       ``(2) Scope of assistance available.--
       ``(A) Federal share.--Subject to subparagraph (C), an 
     agreement described 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 Professional Appraisal 
     Practices;
       ``(ii) an area-wide market analysis or survey; or
       ``(iii) another industry approved method.
       ``(B) Non-federal share.--
       ``(i) In general.--Subject to subparagraph (C), under the 
     agreement, the eligible entity shall provide a share that is 
     at least equivalent to that provided by the Secretary.
       ``(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) Waiver authority.--In the case of grassland of 
     special environmental significance, as determined by the 
     Secretary, the Secretary may provide up to 75 percent of the 
     fair market value of the agricultural land easement.

[[Page S4021]]

       ``(3) Evaluation and ranking of applications.--
       ``(A) Criteria.--The Secretary shall establish evaluation 
     and ranking criteria to maximize the benefit of Federal 
     investment under the program.
       ``(B) Considerations.--In establishing the criteria, the 
     Secretary shall emphasize support for--
       ``(i) protecting agricultural uses and related conservation 
     values of the land; and
       ``(ii) maximizing the protection of contiguous acres 
     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 applications 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 5 years; and
       ``(ii) for all other eligible entities, at least 3, but not 
     more than 5 years.
       ``(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) are permanent or for the maximum duration allowed 
     under applicable State law;
       ``(iii) permit effective enforcement of the conservation 
     purposes of such easements, including appropriate 
     restrictions depending on the purposes for which the easement 
     is acquired;
       ``(iv) include a right of enforcement for the Secretary;
       ``(v) subject the land 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 grassland according to a 
     grassland management plan; and
       ``(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

       ``(vi) include a limit on the impervious surfaces to be 
     allowed that is consistent with the agricultural activities 
     to be conducted.
       ``(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 violation occurs of a term 
     or condition of an agreement under this subsection--
       ``(i) the agreement may be terminated; and
       ``(ii) the Secretary may require the eligible 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.--
       ``(A) Certification process.--The Secretary 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 demonstrate to the Secretary that the 
     entity will maintain, at a minimum, for the duration of the 
     agreement--
       ``(i) a plan for administering easements that is consistent 
     with the purpose of this subtitle;
       ``(ii) the capacity and resources to monitor and enforce 
     agricultural land easements; and
       ``(iii) policies and procedures to ensure--

       ``(I) the long-term integrity of agricultural land 
     easements on eligible land;
       ``(II) timely completion of acquisitions of easements; and
       ``(III) timely and complete evaluation 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 certified under subparagraph (A) every 3 
     years to ensure that such entities are meeting the criteria 
     established under subparagraph (B).
       ``(ii) Revocation.--If the Secretary finds that the 
     certified entity no longer meets the criteria established 
     under subparagraph (B), the Secretary may--

       ``(I) allow the certified 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
       ``(II) revoke the certification of the entity, if after the 
     specified period of time, the certified entity does not meet 
     such criteria.

       ``(c) 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 restore, 
     protect, and enhance wetland through--
       ``(1) easements and related wetland easement plans; and
       ``(2) technical assistance.
       ``(b) Easements.--
       ``(1) Method of enrollment.--The Secretary shall enroll 
     eligible land 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.
       ``(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 wetland or converted wetland where the 
     conversion was not commenced prior to December 23, 1985.
       ``(B) Changes in ownership.--No easement shall be created 
     on land that has 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 foreclosure, 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 establish evaluation 
     and ranking criteria to maximize the benefit of Federal 
     investment under the program.
       ``(B) Considerations.--When evaluating offers from 
     landowners, the Secretary may consider--
       ``(i) the conservation benefits of obtaining an easement or 
     30-year contract, including the potential environmental 
     benefits if the land was removed from agricultural 
     production;
       ``(ii) the cost-effectiveness of each easement or 30-year 
     contract, so as to maximize the environmental benefits per 
     dollar expended;
       ``(iii) whether the landowner or another person is offering 
     to contribute financially to the cost of the easement or 30-
     year contract to leverage Federal funds; and
       ``(iv) such other factors as the Secretary determines are 
     necessary to carry out the purposes of the program.
       ``(C) Priority.--The Secretary shall place priority on 
     acquiring easements based on the value of the easement for 
     protecting and enhancing habitat for migratory birds and 
     other wildlife.
       ``(4) Agreement.--To be eligible to place eligible land 
     into the program through a wetland easement, the owner of 
     such land shall enter into an agreement with the Secretary 
     to--
       ``(A) grant an easement on such land to the Secretary;
       ``(B) authorize the implementation of a wetland easement 
     plan;
       ``(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 consent 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 cropland base and 
     allotment 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 necessary to maintain existing public drainage 
     systems; and
       ``(II) owners to control public access on the easement 
     areas while identifying 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 authorized 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 Federal or State noxious weed control 
     laws;
       ``(bb) to comply with a Federal 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 is subject to the 
     easement if such activities will alter, degrade, or otherwise 
     diminish the functional value of the eligible land; and

[[Page S4022]]

       ``(IV) the adoption of any other practice that would tend 
     to defeat the purposes of the program, as determined by the 
     Secretary;

       ``(iii) provide for the efficient and effective 
     establishment of wetland functions and values; and
       ``(iv) include such additional provisions as the Secretary 
     determines are desirable to carry out the program or 
     facilitate the practical administration thereof.
       ``(B) Violation.--On the violation of the terms or 
     conditions of the easement, the 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 Secretary.
       ``(C) Compatible uses.--Land subject to a wetland easement 
     may be used for compatible economic uses, including such 
     activities as hunting and fishing, managed timber harvest, or 
     periodic haying or grazing, if such use is specifically 
     permitted by the wetland easement plan 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 an easement a 
     provision under which the owner reserves grazing 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 historical natural uses of 
     the land and long-term protection and enhancement goals for 
     which the easement was established; and
       ``(III) complies with the wetland easement plan; and

       ``(ii) the agreement provides for a commensurate reduction 
     in the easement payment to account for the grazing value, as 
     determined by the Secretary.
       ``(E) Application.--The relevant provisions of this 
     paragraph shall also apply to a 30-year contract.
       ``(6) Compensation.--
       ``(A) Determination.--
       ``(i) In general.--The Secretary shall pay as compensation 
     for a permanent easement acquired 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 Professional 
     Appraisal Practices 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) Other.--Compensation for a 30-year contract or 30-
     year easement shall be not less than 50 percent, but not more 
     than 75 percent, of the compensation that would be paid for a 
     permanent easement.
       ``(B) Form of payment.--Compensation 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 less than $500,000.--For 
     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 
     easements valued at more than $500,000, the Secretary may 
     provide easement payments in at least 5, but not more than 10 
     annual payments, except that, if the Secretary determines 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 carry out the establishment of conservation 
     measures and practices and protect wetland functions and 
     values, including necessary maintenance activities, as set 
     forth in a wetland easement plan.
       ``(2) Payments.--The Secretary shall--
       ``(A) in the case of a permanent easement, pay an amount 
     that is not less than 75 percent, but not more than 100 
     percent, of the eligible costs; and
       ``(B) in the case of a 30-year contract or 30-year 
     easement, pay an amount that is not less than 50 percent, but 
     not more than 75 percent, of the eligible costs.
       ``(d) Technical Assistance.--
       ``(1) In general.--The Secretary shall assist owners in 
     complying with the terms and conditions of easements and 30-
     year contracts.
       ``(2) Contracts or agreements.--The Secretary may enter 
     into 1 or more contracts with private entities or agreements 
     with a State, non-governmental organization, or Indian tribe 
     to carry out necessary restoration, enhancement or 
     maintenance of an easement if the Secretary determines that 
     the contract or agreement will advance the purposes of the 
     program.
       ``(e) Wetland Enhancement Option.--The Secretary 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 the program.
       ``(f) Administration.--
       ``(1) Wetland easement plan.--The Secretary shall develop a 
     wetland easement plan for eligible land subject to a wetland 
     easement, which will include the practices and activities 
     necessary to restore, protect, enhance, and maintain the 
     enrolled land.
       ``(2) Delegation of easement administration.--
       ``(A) In general.--The Secretary may delegate 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 delegated 
     responsibilities or to other conservation organizations if 
     the Secretary determines the organization has similar 
     expertise and resources.
       ``(B) Limitation.--The Secretary shall not delegate any of 
     the monitoring or enforcement responsibilities under the 
     program to conservation organizations.
       ``(3) Payments.--
       ``(A) Timing of payments.--The Secretary shall provide 
     payment for obligations incurred by the Secretary under this 
     section--
       ``(i) with respect to any easement restoration obligation 
     as soon as possible after the obligation is incurred; and
       ``(ii) with respect to any annual easement payment 
     obligation incurred by the Secretary as soon as possible 
     after October 1 of each calendar year.
       ``(B) Payments to others.--If an owner who is entitled to a 
     payment dies, becomes incompetent, is otherwise unable to 
     receive such payment, or is succeeded by another person or 
     entity who renders or completes the required performance, the 
     Secretary shall make such payment, in accordance with 
     regulations prescribed by the Secretary and without regard to 
     any other provision of law, in such 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 acquire an 
     easement under the program on--
       ``(1) land owned by an agency of the United States, other 
     than land held in trust for Indian tribes;
       ``(2) land owned in fee title by a State, including an 
     agency or a subdivision of a State, or a unit of local 
     government;
       ``(3) land subject to an easement or deed restriction 
     which, as determined by the Secretary, provides similar 
     protection as would be provided by enrollment in the program; 
     and
       ``(4) land where the purposes of the program would be 
     undermined due to on-site or off-site conditions, such as 
     risk of hazardous substances, proposed or existing rights of 
     way, infrastructure development, 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--
       ``(1) in the case of an agricultural land easement, is 
     grassland that would benefit from protection 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 values 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 subordinate, exchange, 
     terminate, or modify 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 when the Secretary determines that--
       ``(A) it is in the Federal Government's interest to 
     subordinate, exchange, modify or terminate the interest in 
     land;
       ``(B) the subordination, exchange, modification, or 
     termination action--
       ``(i) will address a compelling public need for which there 
     is no practicable alternative, or
       ``(ii) such action will further the practical 
     administration of the program; and
       ``(C) the subordination, exchange, modification, 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 
     current owner, and eligible entity if applicable, to address 
     any subordination, exchange, termination, or modification 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 action to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       ``(d) Land Enrolled in Other Programs.--
       ``(1) Conservation reserve program.--The Secretary may 
     terminate or modify an existing contract entered into under 
     section 1231(a) if eligible land that is subject to such 
     contract is transferred into the program.
       ``(2) Other.--Land enrolled in the wetlands reserve 
     program, grassland reserve program, or farmland protection 
     program shall be considered enrolled in this program.
       ``(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 no less

[[Page S4023]]

     than 40 percent for agricultural land easements.''.
       (b) Compliance With Certain Requirements.--Before an 
     eligible entity or owner of eligible land may receive 
     assistance under subtitle H of title XII of the Food Security 
     Act of 1985, the eligible entity or person shall agree, 
     during the crop year for which the assistance is provided and 
     in exchange for the assistance--
       (1) to comply with applicable conservation requirements 
     under subtitle B of title XII of that Act (16 U.S.C. 3811 et 
     seq.); and
       (2) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.).
       (c) Cross Reference.--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:
       ``(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 inserting ``conservation reserve program 
     established under subchapter B of chapter 1 of subtitle D and 
     the Agricultural Conservation Easement Program under subtitle 
     H using wetland easements under section 1265C''; and
       (ii) in subparagraph (B), by striking ``subchapter C of 
     chapter 1 of subtitle D'' and inserting ``the Agricultural 
     Conservation Easement Program under subtitle H using wetland 
     easements under section 1265C''; and
       (B) in paragraph (4), by striking ``subchapter C'' and 
     inserting ``subchapter B''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2012.

         Subtitle E--Regional Conservation Partnership Program

     SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.

       (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:

        ``Subtitle I--Regional Conservation Partnership Program

     ``SEC. 1271. ESTABLISHMENT AND PURPOSES.

       ``(a) Establishment.--The Secretary shall establish a 
     Regional Conservation Partnership Program to implement 
     eligible activities through--
       ``(1) partnership agreements with eligible partners; and
       ``(2) contracts with producers.
       ``(b) Purposes.--The purposes of the program are--
       ``(1) to combine the purposes and coordinate the functions 
     of--
       ``(A) the agricultural water enhancement program 
     established under section 1240I;
       ``(B) the Chesapeake Bay watershed program established 
     under section 1240Q;
       ``(C) the cooperative conservation partnership initiative 
     established under section 1243; and
       ``(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 related natural 
     resources on a regional or watershed scale; and
       ``(3) to encourage partners to cooperate with producers 
     in--
       ``(A) meeting or avoiding the need for national, State, and 
     local natural resource regulatory requirements related to 
     production; and
       ``(B) implementing projects that will result in the 
     installation and maintenance of eligible activities that 
     affect multiple agricultural or nonindustrial private forest 
     operations on a local, regional, State, or multi-State basis.

     ``SEC. 1271A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Covered programs.--The term `covered programs' 
     means--
       ``(A) the agricultural conservation easement program;
       ``(B) the environmental quality incentives program; and
       ``(C) the conservation stewardship program.
       ``(2) Eligible activity.--The term `eligible activity' 
     means any of the following conservation activities when 
     delivered through a covered program:
       ``(A) Water quality restoration or enhancement projects, 
     including nutrient management and sediment reduction.
       ``(B) Water quantity conservation, restoration, or 
     enhancement projects relating to surface water and 
     groundwater resources, including--
       ``(i) the conversion of irrigated cropland to the 
     production of less water-intensive agricultural commodities 
     or dryland farming; and
       ``(ii) irrigation system improvement and irrigation 
     efficiency enhancement.
       ``(C) Drought mitigation.
       ``(D) Flood prevention.
       ``(E) Water retention.
       ``(F) Habitat conservation, restoration, and enhancement.
       ``(G) Erosion control.
       ``(H) Other related activities that the Secretary 
     determines will help achieve conservation benefits.
       ``(3) Eligible partner.--The term `eligible partner' means 
     any of the following:
       ``(A) An agricultural or silvicultural producer association 
     or other group of producers.
       ``(B) A State or unit of local government.
       ``(C) An Indian tribe.
       ``(D) A farmer cooperative.
       ``(E) An institution of higher education.
       ``(F) An organization with an established history of 
     working cooperatively with producers on agricultural land, as 
     determined by the Secretary, to address--
       ``(i) local conservation priorities related to agricultural 
     production, wildlife habitat development, and nonindustrial 
     private forest land management; or
       ``(ii) critical watershed-scale soil erosion, water 
     quality, sediment reduction, or other natural resource 
     concerns.
       ``(4) Partnership agreement.--The term `partnership 
     agreement' means an agreement between the Secretary and an 
     eligible partner.
       ``(5) Program.--The term `program' means the Regional 
     Conservation Partnership Program established by this 
     subtitle.

     ``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 eligible activity.
       ``(b) Length.--A partnership agreement shall be for a 
     period not to exceed 5 years, except that the Secretary may 
     extend the agreement 1 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 agreement, the 
     eligible partner shall--
       ``(A) define the scope of a project, including--
       ``(i) the eligible activities to be implemented;
       ``(ii) the potential agricultural or nonindustrial private 
     forest operations affected;
       ``(iii) the local, State, multi-State or other geographic 
     area covered; and
       ``(iv) the planning, outreach, implementation and 
     assessment to be conducted;
       ``(B) conduct outreach and education to producers for 
     potential 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 assistance 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, report to the 
     Secretary on its results and funds leveraged.
       ``(2) Contribution.--A partner shall provide a significant 
     portion of the overall costs of the scope of the project as 
     determined by the Secretary.
       ``(d) Applications.--
       ``(1) Competitive process.--The Secretary shall conduct a 
     competitive process to select applications for partnership 
     agreements and may assess and rank applications with similar 
     conservation purposes as a group.
       ``(2) Criteria used.--In carrying out the process described 
     in paragraph (1), the Secretary shall make public the 
     criteria used in evaluating applications.
       ``(3) Content.--An application to the Secretary 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 achieving 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) the partners collaborating to achieve project 
     objectives, including their roles, responsibilities, 
     capabilities, and financial contribution; and
       ``(E) any other elements the Secretary considers necessary 
     to adequately evaluate and competitively select applications 
     for funding under the program.
       ``(4) Application selection.--
       ``(A) Priority to certain applications.--The Secretary 
     shall give a higher priority to applications that--
       ``(i) assist producers in meeting or avoiding the need for 
     a natural resource regulatory requirement;
       ``(ii) significantly leverage non-Federal financial and 
     technical resources and coordinate with other local, State, 
     regional, or national efforts;
       ``(iii) deliver high percentages of applied conservation to 
     address conservation priorities or local, State, regional, or 
     national conservation initiatives; or
       ``(iv) provide innovation in conservation methods and 
     delivery, including outcome-based performance measures and 
     methods.
       ``(B) Other applications.--The Secretary may give priority 
     to applications that--
       ``(i) have a high percentage of producers in the area to be 
     covered by the agreement; or

[[Page S4024]]

       ``(ii) meet other factors that are important for achieving 
     the purposes of the program, as determined by the Secretary.

     ``SEC. 1271C. ASSISTANCE TO PRODUCERS.

       ``(a) In General.--The Secretary shall enter into contracts 
     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 conservation area 
     designated pursuant to section 1271F, but who are seeking to 
     implement an eligible activity independent of a partner.
       ``(b) Terms and Conditions.--
       ``(1) Consistency with program rules.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall ensure that the terms and conditions of a 
     contract under this section are consistent with the 
     applicable rules of the covered programs to be used as part 
     of the project, as described in the application under section 
     1271B(d)(3)(C).
       ``(B) Adjustments.--Except for statutory program 
     requirements governing appeals, payment limitations, and 
     conservation compliance, the Secretary may adjust the 
     discretionary program rules of a covered program--
       ``(i) to provide a simplified application and evaluation 
     process; and
       ``(ii) to better reflect unique local circumstances and 
     purposes if the Secretary determines such adjustments are 
     necessary to achieve the purposes of the program.
       ``(2) Alternative funding arrangements.--
       ``(A) In general.--For the purposes of providing assistance 
     for land described in subsection (a) and section 1271F, the 
     Secretary may enter into alternative funding arrangements 
     with a multistate water resource agency or authority if--
       ``(i) the Secretary determines that the goals and 
     objectives of the program will be met by the alternative 
     funding arrangements;
       ``(ii) the agency or authority certifies that the 
     limitations established under this section on agreements with 
     individual producers will not be exceeded; and
       ``(iii) all participating producers meet applicable payment 
     eligibility provisions.
       ``(B) Conditions.--As a condition on receipt of funding 
     under subparagraph (A), the multistate water resource agency 
     or authority shall agree--
       ``(i) to submit an annual independent audit to the 
     Secretary that describes the use of funds under this 
     paragraph;
       ``(ii) to provide any data necessary for the Secretary to 
     issue a report on the use of funds under this paragraph; and
       ``(iii) not to use any funds for administration or 
     contracting with another entity.
       ``(C) Limitation.--The Secretary may enter into not more 
     than 10 alternative funding arrangements under this 
     paragraph.
       ``(c) Payments.--
       ``(1) In general.--In accordance with statutory 
     requirements of the covered programs involved, the Secretary 
     may make payments to a producer in an amount determined by 
     the Secretary to be necessary to achieve the purposes of the 
     program.
       ``(2) Payments to certain producers.--The Secretary may 
     provide payments for a period of 5 years--
       ``(A) to producers participating in a project that 
     addresses water quantity concerns and in an amount sufficient 
     to encourage conversion from irrigated to dryland farming; 
     and
       ``(B) to producers participating in a project that 
     addresses water quality concerns and in an amount sufficient 
     to encourage adoption of conservation practices and systems 
     that improve nutrient management.
       ``(3) Waiver authority.--To assist in the implementation 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 necessary to fulfill the objectives of the program.

     ``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 established under this subtitle.
       ``(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 8 percent 
     of the funds and acres made available for a covered program 
     for each of fiscal years 2013 through 2017 in order to ensure 
     additional resources are available to carry out this program.
       ``(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 administered by the State 
     conservationist, with the advice of the State technical 
     committee;
       ``(2) 40 percent of the funds and acres to projects based 
     on a national competitive process to be established by the 
     Secretary; and
       ``(3) 35 percent of the funds and acres to projects for the 
     critical conservation areas designated in 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 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 for 
     every 2 years thereafter, 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 on the status of projects funded under the 
     program, including--
       ``(1) the number and types of partners and producers 
     participating in the partnership agreements selected;
       ``(2) the number of producers receiving assistance;
       ``(3) total funding committed to projects, including 
     Federal and non-Federal resources; and
       ``(4) a description of how the funds under section 
     1271C(b)(3) are being administered, including--
       ``(A) any oversight mechanisms that the Secretary has 
     implemented;
       ``(B) the process through which the Secretary is resolving 
     appeals by program participants; and
       ``(C) the means by which the Secretary is tracking 
     adherence to any applicable provisions for payment 
     eligibility.

     ``SEC. 1271F. CRITICAL CONSERVATION AREAS.

       ``(a) In General.--When administering the funding described 
     in section 1271D(d)(3), the Secretary shall select 
     applications for partnership agreements and producer 
     contracts within designated critical conservation areas.
       ``(b) Critical Conservation Area Designations.--
       ``(1) In general.--The Secretary shall designate up to 6 
     geographical areas as critical conservation areas based on 
     the degree to which an area--
       ``(A) includes multiple States with significant 
     agricultural production;
       ``(B) is covered by an existing regional, State, 
     binational, or multistate agreement or plan that has 
     established objectives, goals and work plans and is adopted 
     by a Federal, State, or regional authority;
       ``(C) has water quality concerns, including concerns for 
     reducing erosion, promoting sediment control, and addressing 
     nutrient management activities affecting large bodies of 
     water of regional, national, or international significance;
       ``(D) has water quantity concerns, including--
       ``(i) concerns for groundwater, surface water, aquifer, or 
     other water sources; or
       ``(ii) a need to promote water retention and flood 
     prevention; or
       ``(E) is subject to regulatory requirements that could 
     reduce the economic scope of agricultural operations within 
     the area.
       ``(2) Expiration.--Critical conservation area designations 
     under this section shall expire after 5 years, subject to 
     redesignation, except that the Secretary may withdraw 
     designation from an area if the Secretary finds the area no 
     longer meets the conditions described in paragraph (1).
       ``(c) Administration.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall administer any partnership 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 practicable, ensure that 
     eligible activities carried out in critical conservation 
     areas designated under this section complement and are 
     consistent with other Federal and State programs and water 
     quality and quantity strategies.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

                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 inserting ``and $30,000,000 for 
     each of fiscal years 2013 through 2017'' before the period at 
     the end.

     SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       Section 1240O(b) of the Food Security Act of 1985 (16 
     U.S.C. 3839bb 2(b)) is amended by inserting ``and $15,000,000 
     for each of fiscal years 2013 through 2017'' before the 
     period at the end.

     SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 
                   PROGRAM.

       (a) Funding.--Section 1240R(f) of the Food Security Act of 
     1985 (16 U.S.C. 3839bb 5(f)) is amended by inserting ``and 
     $40,000,000 for the period of fiscal years 2013 through 
     2017'' before the period at the end .
       (b) Report on Program Effectiveness.--Not later than 2 
     years after the date of 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 Forestry of the Senate a report

[[Page S4025]]

     evaluating the effectiveness of the voluntary public access 
     and habitat incentive program established by section 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 State;
       (3) evaluating the extent of improved access on eligible 
     land, improved wildlife habitat, and related economic 
     benefits; and
       (4) any other relevant information and data relating to the 
     program that would be helpful to such Committees.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 
                   PROGRAM.

       (a) Funding.--Section 1252 of the Food Security Act of 1985 
     (16 U.S.C. 3851) is amended by striking subsection (c) and 
     inserting the following:
       ``(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 PROGRAM.

       Section 14(h)(2)(E) of the Watershed Protection and Flood 
     Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by 
     striking ``2012'' and inserting ``2017''.

     SEC. 2506. TERMINAL LAKES ASSISTANCE.

       Section 2507 of the Food, Security, and Rural Investment 
     Act of 2002 (43 U.S.C. 2211 note; Public Law 107 171) is 
     amended to read as follows:

     ``SEC. 2507. TERMINAL LAKES ASSISTANCE.

       ``(a) Definitions.--In this section:
       ``(1) Eligible land.--The term `eligible land' means 
     privately owned agricultural land (including land in which a 
     State has a property interest as a result of state water 
     law)--
       ``(A) that a landowner voluntarily agrees to sell to a 
     State; and
       ``(B) which--
       ``(i)(I) is ineligible for enrollment as a wetland easement 
     established under the Agricultural Conservation Easement 
     Program under subtitle H of the Food Security Act of 1985;
       ``(II) is flooded to--

       ``(aa) an average depth of at least 6.5 feet; or
       ``(bb) a level below which the State determines the 
     management of the water level is beyond the control of the 
     State or landowner; or

       ``(III) is inaccessible for agricultural use due to the 
     flooding of adjoining property (such as islands of 
     agricultural land created by flooding);
       ``(ii) is located within a watershed with water rights 
     available for lease or purchase; and
       ``(iii) has been used during at least 5 of the immediately 
     preceding 30 years--

       ``(I) to produce crops or hay; or
       ``(II) as livestock pasture or grazing.

       ``(2) Program.--The term `program' means the voluntary land 
     purchase program established under this section.
       ``(3) Terminal lake.--The term `terminal lake' means a lake 
     and its associated riparian and watershed resources that is--
       ``(A) considered flooded because there is no natural outlet 
     for water accumulating in the lake or the associated riparian 
     area such that the watershed and surrounding land is 
     consistently flooded; or
       ``(B) considered terminal because it has no natural outlet 
     and is at risk due to a history of consistent Federal 
     assistance to address critical resource conditions, including 
     insufficient water available to meet the needs of the lake, 
     general uses, and water rights.
       ``(b) Assistance.--The Secretary shall--
       ``(1) provide grants under subsection (c) for the purchase 
     of eligible land impacted by a terminal lake described in 
     subsection (a)(3)(A); and
       ``(2) provide funds to the Secretary of the Interior 
     pursuant to subsection (e)(2) with assistance in accordance 
     with subsection (d) for terminal lakes described in 
     subsection (a)(3)(B).
       ``(c) Land Purchase Grants.--
       ``(1) In general.--Using funds provided under subsection 
     (e)(1), the Secretary shall make available land purchase 
     grants to States for the purchase of eligible land in 
     accordance with this subsection.
       ``(2) Implementation.--
       ``(A) Amount.--A land purchase grant shall be in an amount 
     not to exceed the lesser of--
       ``(i) 50 percent of the total purchase price per acre of 
     the eligible land; or
       ``(ii)(I) in the case of eligible land that was used to 
     produce crops or hay, $400 per acre; and
       ``(II) in the case of eligible land that was pasture or 
     grazing land, $200 per acre.
       ``(B) Determination of purchase price.--A State purchasing 
     eligible land with a land purchase grant shall ensure, to the 
     maximum extent practicable, that the purchase price of such 
     land reflects the value, if any, of other encumbrances on the 
     eligible land to be purchased, including easements and 
     mineral rights.
       ``(C) Cost-share required.--To be eligible to receive a 
     land purchase grant, a State shall provide matching non-
     Federal funds in an amount equal to 50 percent of the amount 
     described in subparagraph (A), including additional non-
     Federal funds.
       ``(D) Conditions.--To receive a land purchase grant, a 
     State shall agree--
       ``(i) to ensure that any eligible land purchased is--

       ``(I) conveyed in fee simple to the State; and
       ``(II) free from mortgages or other liens at the time title 
     is transferred;

       ``(ii) to maintain ownership of the eligible land in 
     perpetuity;
       ``(iii) to pay (from funds other than grant dollars 
     awarded) any costs associated with the purchase of eligible 
     land under this section, including surveys and legal fees; 
     and
       ``(iv) to keep eligible land in a conserving use, as 
     defined by the Secretary.
       ``(E) Loss of federal benefits.--Eligible land purchased 
     with a grant under this section shall lose eligibility for 
     any benefits under other Federal programs, including--
       ``(i) benefits under title XII of the Food Security Act of 
     1985 (16 U.S.C. 3801 et seq.);
       ``(ii) benefits under the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.); and
       ``(iii) covered benefits described in section 1001D(b) of 
     the Food Security Act of 1985 (7 U.S.C. 1308 3a).
       ``(F) Prohibition.--Any Federal rights or benefits 
     associated with eligible land prior to purchase by a State 
     may not be transferred to any other land or person in 
     anticipation of or as a result of such purchase.
       ``(d) Water Assistance.--
       ``(1) In general.--The Secretary of the Interior, acting 
     through the Commissioner of Reclamation, may use the funds 
     described in subsection (e)(2) to administer and provide 
     financial assistance to carry out this subsection to provide 
     water and assistance to a terminal lake described in 
     subsection (a)(3)(B) through willing sellers or willing 
     participants only--
       ``(A) to lease water;
       ``(B) to purchase land, water appurtenant to the land, and 
     related interests; and
       ``(C) to carry out research, support and conservation 
     activities for associated fish, wildlife, plant, and habitat 
     resources.''
       ``(2) Exclusions.--The Secretary of the Interior may not 
     use this subsection to deliver assistance to the Great Salt 
     Lake in Utah, lakes that are considered dry lakes, or other 
     lakes that do not meet the purposes of this section, as 
     determined by the Secretary of the Interior.
       ``(3) Transitional provision.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, any funds made available before the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012 under a provision of law described in subparagraph (B) 
     shall remain available using the provisions of law (including 
     regulations) in effect on the day before the date of 
     enactment of that Act.
       ``(B) Described laws.--The provisions of law described in 
     this section are--
       ``(i) section 2507 of the Farm Security and Rural 
     Investment Act of 2002 (43 U.S.C. 2211 note; Public Law 107 
     171) (as in effect on the day before the date of enactment of 
     the Agriculture Reform, Food, and Jobs Act of 2012);
       ``(ii) section 207 of the Energy and Water Development 
     Appropriations Act, 2003 (Public Law 108 7; 117 Stat. 146);
       ``(iii) section 208 of the Energy and Water Development 
     Appropriations Act, 2006 (Public Law 109 103; 119 Stat. 2268, 
     123 Stat. 2856); and
       ``(iv) section 208 of the Energy and Water Development and 
     Related Agencies Appropriations Act, 2010 (Public Law 111 85; 
     123 Stat. 2858, 123 Stat. 2967, 125 Stat. 867).
       ``(e) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out subsection 
     (c) $25,000,000, to remain available until expended.
       ``(2) Commodity credit corporation.--As soon as practicable 
     after the date of enactment of the Agriculture Reform, Food, 
     and Jobs Act of 2012, the Secretary shall transfer to the 
     Bureau of Reclamation Water and Related Resources Account 
     $150,000,000 from the funds of the Commodity Credit 
     Corporation to carry out subsection (d), to remain available 
     until expended.''.

                 Subtitle G--Funding and Administration

     SEC. 2601. FUNDING.

       (a) In General.--Section 1241 of the Food Security Act of 
     1985 (16 U.S.C. 3841) is amended by striking subsection (a) 
     and inserting the following:
       ``(a) Annual Funding.--For each of fiscal years 2013 
     through 2017, the Secretary shall use the funds, facilities, 
     and authorities of the Commodity Credit Corporation 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--
       ``(A) $10,000,000 for the period of fiscal years 2013 
     through 2017 to provide payments under paragraph (3) of 
     section 1234(b) in connection with thinning activities 
     conducted on land described in subparagraph (B)(iii) of that 
     paragraph; and
       ``(B) $50,000,000 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 
     ranchers and socially disadvantaged farmers or ranchers.

[[Page S4026]]

       ``(2) The Agricultural Conservation Easement Program under 
     subtitle H using to the maximum extent practicable--
       ``(A) $223,000,000 for fiscal year 2013;
       ``(B) $702,000,000 for fiscal year 2014;
       ``(C) $500,000,000 for fiscal year 2015;
       ``(D) $525,000,000 for fiscal year 2016; and
       ``(E) $250,000,000 for 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 entered into before September 30, 
     2008.
       ``(4) The conservation stewardship program under subchapter 
     B of chapter 2 of subtitle D.
       ``(5) The environmental quality incentives program under 
     chapter 4 of subtitle D, using, to the maximum extent 
     practicable--
       ``(A) $1,455,000,000 for fiscal year 2013;
       ``(B) $1,645,000,000 for fiscal year 2014; and
       ``(C) $1,650,000,000 for each of fiscal years 2015 through 
     2017.''.
       (b) Guaranteed Availability of Funds.--Section 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 following:
       ``(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 related administrative 
     actions and not obligated in that fiscal year shall remain 
     available for obligation during subsequent fiscal years, but 
     shall reduce the amount of additional funds made available in 
     the subsequent fiscal year by an amount equal to the amount 
     remaining unobligated.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2012.

     SEC. 2602. TECHNICAL ASSISTANCE.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) is amended by striking subsection (c) (as redesignated 
     by section 2601(b)(1)) and inserting the following:
       ``(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 implement the programs effectively; 
     and
       ``(B) shall not be available for the provision 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 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 assistance funds 
     requested and apportioned in each program specified in 
     subsection (a) during the preceding fiscal year; and
       ``(B) any other data relating to this provision that would 
     be helpful to such Committees.''.

     SEC. 2603. REGIONAL EQUITY.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) is amended by striking subsection (e) (as redesignated 
     by section 2601(b)(1)) and inserting the following:
       ``(e) Regional Equity.--
       ``(1) Equitable distribution.--When determining funding 
     allocations each fiscal year, the Secretary shall, after 
     considering available funding and program demand in each 
     State, provide a distribution of funds for conservation 
     programs under subtitle D (excluding the conservation reserve 
     program under subchapter B of chapter 1), subtitle H 
     (excluding wetland easements under section 1265C), and 
     subtitle I to ensure equitable program participation 
     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 opportunity to establish that the 
     State can use an aggregate allocation amount of at least 0.6 
     percent of the funds made available for those conservation 
     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.''.

     SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO 
                   CERTAIN FARMERS OR RANCHERS FOR CONSERVATION 
                   ACCESS.

       Subsection (h) of section 1241 of the Food Security Act of 
     1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) 
     is amended--
       (1) in paragraph (1) by striking ``2012'' and inserting 
     ``2017''; and
       (2) by adding at the end the following:
       ``(4) Preference.--In providing assistance under paragraph 
     (1), the Secretary shall give preference to a 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))) that qualifies under subparagraph (A) or (B) of 
     paragraph (1).''.

     SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND 
                   ASSISTANCE.

       Subsection (i) of section 1241 of the Food Security Act of 
     1985 (16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) 
     is amended--
       (1) in paragraph (1), by striking ``wetlands reserve 
     program'' and inserting ``agricultural conservation easement 
     program'';
       (2) by striking paragraphs (2) and (3) and redesignating 
     paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), 
     respectively;
       (3) in paragraph (3) (as so redesignated)--
       (A) by striking ``agricultural water enhancement program'' 
     and inserting ``regional conservation partnership program''; 
     and
       (B) by striking ``section 1240I(g)'' and inserting 
     ``section 1271C(c)(3)''; and
       (4) by adding at the end the following:
       ``(5) Payments made under the conservation stewardship 
     program.
       ``(6) Waivers granted by the Secretary under section 
     1265B(b)(2)(C).''.

     SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       Section 1244 of the Food Security Act of 1985 (16 U.S.C. 
     3844) is amended--
       (1) in subsection (a)(2), by adding at the end the 
     following:
       ``(E) Veteran farmers or ranchers (as defined in section 
     2501(e) of the Food, Agriculture, 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 ``subsection (c)(2)(B) or 
     (f)(4)'' and inserting ``subsection (c)(2)(A)(ii) or 
     (f)(2)'';
       (4) by striking subsection (i) and inserting the following:
       ``(i) Conservation Application Process.--
       ``(1) Initial application.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall establish a 
     single, simplified application for eligible entities to use 
     in initially requesting assistance under any conservation 
     program administered by the Secretary (referred to in this 
     subsection as the `initial application').
       ``(B) Requirements.--To the maximum extent practicable, the 
     Secretary shall ensure that--
       ``(i) a conservation program applicant is not required to 
     provide information that is duplicative of information or 
     resources already available to the Secretary for that 
     applicant and the specific operation of the applicant; and
       ``(ii) the initial application process is streamlined to 
     minimize complexity and redundancy.
       ``(2) Review of application process.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall review the 
     application process for each conservation program 
     administered by the Secretary, including the forms and 
     processes used to receive assistance requests from eligible 
     program participants.
       ``(B) Requirements.--In carrying out the review, the 
     Secretary shall determine what information the participant is 
     required to submit during the application process, 
     including--
       ``(i) identification information for the applicant;
       ``(ii) identification and location information for the land 
     parcel or tract of concern;
       ``(iii) a general statement of the need or resource concern 
     of the applicant for the land parcel or tract; and
       ``(iv) the minimum amount of other information the 
     Secretary considers to be essential for the applicant to 
     provide personally.
       ``(3) Revision and streamline.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Secretary shall carry out a 
     revision of the application forms and processes for each 
     conservation program administered by the Secretary to enable 
     use of information technology to incorporate appropriate data 
     and information concerning the conservation needs and 
     solutions appropriate for the land area identified by the 
     applicant.
       ``(B) Goal.--The goal of the revision shall be to 
     streamline the application process to minimize the burden 
     placed on applicants.
       ``(4) Conservation program application.--
       ``(A) In general.--Once the needs of an applicant have been 
     adequately assessed by the Secretary, or a third party 
     provider under section 1242, based on the initial 
     application, in order to determine the 1 or more programs 
     under this title that best match the needs of the applicant, 
     with the approval of the applicant, the Secretary may convert 
     the initial application into the specific application for 
     assistance for the relevant conservation program.
       ``(B) Secretarial burden.--To the maximum extent 
     practicable, the Secretary shall--
       ``(i) complete the specific application for conservation 
     program assistance for each applicant; and
       ``(ii) request only that specific further information from 
     the applicant that is not already available to the Secretary.
       ``(5) Implementation and notification.--Not later than 1 
     year after the date of enactment of this subsection, 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 written notification 
     that the Secretary has fulfilled the requirements of this 
     subsection.''; and

[[Page S4027]]

       (5) by adding at the end the following:
       ``(j) Improved Administrative Efficiency and 
     Effectiveness.--In administrating a conservation program 
     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 enhance 
     efficiency and effectiveness.
       ``(k) Relation to Other Payments.--Any payment 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 payments 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 Agriculture Reform, Food, and Jobs Act of 2012.
       ``(4) Any law that succeeds a law specified in paragraph 
     (1), (2), or (3).
       ``(l) Funding for Indian Tribes.--In carrying out the 
     conservation stewardship program under subchapter B of 
     chapter 2 of subtitle D and the environmental quality 
     incentives program under chapter 4 of subtitle D, the 
     Secretary may enter into alternative funding arrangements 
     with Indian tribes if the Secretary determines that the goals 
     and objectives of the programs will be met by such 
     arrangements, and that statutory limitations regarding 
     contracts with individual producers will not be exceeded by 
     any Tribal member.''.

     SEC. 2607. RULEMAKING AUTHORITY.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 1246. REGULATIONS.

       ``(a) In General.--The Secretary shall promulgate such 
     regulations as are necessary to implement programs under this 
     title, including such regulations as the Secretary determines 
     to be necessary to ensure a fair and reasonable application 
     of the limitations established under section 1244(f).
       ``(b) Rulemaking Procedure.--The promulgation of 
     regulations and administration of programs under this title--
       ``(1) shall be carried out without regard to--
       ``(A) the Statement of Policy of the Secretary effective 
     July 24, 1971 (36 Fed. Reg. 13804), relating to notices of 
     proposed rulemaking and public participation in rulemaking; 
     and
       ``(B) chapter 35 of title 44, United States Code (commonly 
     known as the Paperwork Reduction Act); and
       ``(2) shall be made as an interim rule effective on 
     publication with an opportunity for notice and comment.
       ``(c) Congressional Review of Agency Rulemaking.--In 
     promulgating regulations under this section, the Secretary 
     shall use the authority provided under section 808 of title 
     5, United States Code.''.

     SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMITTEES.

       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''.

 Subtitle H--Repeal of Superseded Program Authorities and Transitional 
                               Provisions

     SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

       Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
     3830) is repealed.

     SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

       (a) Repeal.--Section 1231A of the Food Security Act of 1985 
     (16 U.S.C. 3831a) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts.--The amendment made by 
     this section shall not affect the validity or terms of any 
     contract entered into by the Secretary of Agriculture under 
     section 1231A of the Food Security Act of 1985 (16 U.S.C. 
     3831a) before October 1, 2012, or any payments required to be 
     made in connection with the contract.
       (2) Funding.--The Secretary may use funds made available to 
     carry out the conservation reserve program 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.) to continue to carry out 
     contracts referred to in paragraph (1) using the provisions 
     of law and regulation applicable to such contracts as in 
     existence on September 30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2703. WETLANDS RESERVE PROGRAM.

       (a) Repeal.--Subchapter C of chapter 1 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et 
     seq.) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts and easements.--The 
     amendment made by this section shall not affect the validity 
     or terms of any contract or easement entered into by the 
     Secretary of Agriculture under subchapter C of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3837 et seq.) before October 1, 2012, or any payments 
     required to be made in connection with the contract or 
     easement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     subchapter C of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3837 et seq.), any funds 
     made available from the Commodity Credit Corporation to carry 
     out the wetlands reserve program under that subchapter for 
     fiscal years 2009 through 2012 shall be made available to 
     carry out contracts or easements referred to in paragraph (1) 
     that were entered into prior to October 1, 2012 (including 
     the provision of technical assistance), provided that no such 
     contract or easement is modified so as to increase the amount 
     of the payment received.
       (B) Other.--The Secretary may use funds made available to 
     carry out the agricultural conservation easement program 
     under subtitle H of title XII of the Food Security Act of 
     1985, as added by section 2301 of this Act, to continue to 
     carry out contracts and easements referred to in paragraph 
     (1) using the provisions of law and regulation applicable to 
     such contracts and easements as in existence on September 30, 
     2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY 
                   PROGRAM.

       (a) Repeal.--Subchapter C of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3838h 
     et seq.) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing agreements and easements.--The 
     amendment made by this section shall not affect the validity 
     or terms of any agreement or easement entered into by the 
     Secretary of Agriculture under subchapter C of chapter 2 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3838h et seq.) before October 1, 2012, or any payments 
     required to be made in connection with the agreement or 
     easement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     subchapter C of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838h et seq.), any 
     funds made available from the Commodity Credit Corporation to 
     carry out the farmland protection program under that 
     subchapter for fiscal years 2009 through 2012 shall be made 
     available to carry out agreements and easements referred to 
     in paragraph (1) that were entered into prior to October 1, 
     2012 (including the provision of technical assistance).
       (B) Other.--On exhaustion of funds made available under 
     subparagraph (A), the Secretary may use funds made available 
     to carry out the agricultural conservation easement program 
     under subtitle H of title XII of the Food Security Act of 
     1985, as added by section 2301 of this Act, to continue to 
     carry out agreements and easements referred to in paragraph 
     (1) using the provisions of law and regulation applicable to 
     such agreements and easement as in existence on September 30, 
     2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2705. GRASSLAND RESERVE PROGRAM.

       (a) Repeal.--Subchapter D of chapter 2 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3838n 
     et seq.) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts, agreements, and 
     easements.--The amendment made by this section shall not 
     affect the validity or terms of any contract, agreement, or 
     easement entered into by the Secretary of Agriculture under 
     subchapter D of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838n et seq.) before 
     October 1, 2012, or any payments required to be made in 
     connection with the contract, agreement, or easement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     subchapter D of chapter 2 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3838n et seq.), any 
     funds made available from the Commodity Credit Corporation to 
     carry out the grassland reserve program under that subchapter 
     for fiscal years 2009 through 2012 shall be made available to 
     carry out contracts, agreements, or easements referred to in 
     paragraph (1) that were entered into prior to October 1, 2012 
     (including the provision of technical assistance), provided 
     that no such contract, agreement, or easement is modified so 
     as to increase the amount of the payment received.
       (B) Other.--The Secretary may use funds made available to 
     carry out the agricultural conservation easement program 
     under subtitle H of title XII of the Food Security Act of 
     1985, as added by section 2301 of this Act, to continue to 
     carry out contracts, agreements, and easements referred to in 
     paragraph (1) using the provisions of law and regulation 
     applicable to such contracts, agreements, and easements as in 
     existence on September 30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

       (a) Repeal.--Section 1240I of the Food Security Act of 1985 
     (16 U.S.C. 3839aa 9) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts and agreements.--The 
     amendment made by this section shall not affect the validity 
     or terms of any contract or agreement entered into by

[[Page S4028]]

     the Secretary of Agriculture under section 1240I of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa 9) before October 1, 
     2012, or any payments required to be made in connection with 
     the contract or agreement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     section 1240I of the Food Security Act of 1985 (16 U.S.C. 
     3839aa 9), any funds made available from the Commodity Credit 
     Corporation to carry out the agricultural water enhancement 
     program under that section for fiscal years 2009 through 2012 
     shall be made available to carry out contracts and agreements 
     referred to in paragraph (1) that were entered into prior to 
     October 1, 2012 (including the provision of technical 
     assistance).
       (B) Other.--On exhaustion of funds made available under 
     subparagraph (A), the Secretary may use funds made available 
     to carry out the regional conservation partnerships program 
     under subtitle I of title XII of the Food Security Act of 
     1985, as added by section 2401 of this Act, to continue to 
     carry out contracts and agreements referred to in paragraph 
     (1) using the provisions of law and regulation applicable to 
     such contracts and agreements as in existence on September 
     30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.

       (a) Repeal.--Section 1240N of the Food Security Act of 1985 
     (16 U.S.C. 3839bb 1) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts.--The amendment made by 
     this section shall not affect the validity or terms of any 
     contract entered into by the Secretary of Agriculture under 
     section 1240N of the Food Security Act of 1985 (16 U.S.C. 
     3839bb 1) before October 1, 2012, or any payments required to 
     be made in connection with the contract.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     section 1240N of the Food Security Act of 1985 (16 U.S.C. 
     3839bb 1), any funds made available from the Commodity Credit 
     Corporation to carry out the wildlife habitat incentive 
     program under that section for fiscal years 2009 through 2012 
     shall be made available to carry out contracts referred to in 
     paragraph (1) which were entered into prior to October 1, 
     2012 (including the provision of technical assistance).
       (B) Other.--On exhaustion of funds made available under 
     subparagraph (A), the Secretary may use funds made available 
     to carry out the environmental quality incentives program 
     under chapter 4 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa et seq.) to continue 
     to carry out contracts referred to in paragraph (1) using the 
     provisions of law and regulation applicable to such contracts 
     as in existence on September 30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2708. GREAT LAKES BASIN PROGRAM.

       (a) Repeal.--Section 1240P of the Food Security Act of 1985 
     (16 U.S.C. 3839bb 3) is repealed.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.

       (a) Repeal.--Section 1240Q of the Food Security Act of 1985 
     (16 U.S.C. 3839bb 4) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts, agreements, and 
     easements.--The amendment made by this section shall not 
     affect the validity or terms of any contract, agreement, or 
     easement entered into by the Secretary of Agriculture under 
     section 1240Q of the Food Security Act of 1985 (16 U.S.C. 
     3839bb 4) before October 1, 2012, or any payments required to 
     be made in connection with the contract, agreement, or 
     easement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     section 1240Q of the Food Security Act of 1985 (16 U.S.C. 
     3839bb 4), any funds made available from the Commodity Credit 
     Corporation to carry out the Chesapeake Bay watershed program 
     under that section for fiscal years 2009 through 2012 shall 
     be made available to carry out contracts, agreements, and 
     easements referred to in paragraph (1) that were entered into 
     prior to October 1, 2012 (including the provision of 
     technical assistance).
       (B) Other.--The Secretary may use funds made available to 
     carry out the regional conservation partnerships program 
     under subtitle I of title XII of the Food Security Act of 
     1985, as added by section 2401 of this Act, to continue to 
     carry out contracts, agreements, and easements referred to in 
     paragraph (1) using the provisions of law and regulation 
     applicable to such contracts, agreements, and easements as in 
     existence on September 30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

       (a) Repeal.--Section 1243 of the Food Security Act of 1985 
     (16 U.S.C. 3843) is repealed.
       (b) Transitional Provisions.--
       (1) Effect on existing contracts and agreements.--The 
     amendment made by this section shall not affect the validity 
     or terms of any contract or agreement entered into by the 
     Secretary of Agriculture under section 1243 of the Food 
     Security Act of 1985 (16 U.S.C. 3843) before October 1, 2012, 
     or any payments required to be made in connection with the 
     contract or agreement.
       (2) Funding.--
       (A) Use of prior year funds.--Notwithstanding the repeal of 
     section 1243 of the Food Security Act of 1985 (16 U.S.C. 
     3843), any funds made available from the Commodity Credit 
     Corporation to carry out the cooperative conservation 
     partnership initiative under that section for fiscal years 
     2009 through 2012 shall be made available to carry out 
     contracts and agreements referred to in paragraph (1) that 
     were entered into prior to October 1, 2012 (including the 
     provision of technical assistance).
       (B) Other.--On exhaustion of funds made available under 
     subparagraph (A), the Secretary may use funds made available 
     to carry out the regional conservation partnerships program 
     under subtitle I of title XII of the Food Security Act of 
     1985, as added by section 2401 of this Act, to continue to 
     carry out contracts and agreements referred to in paragraph 
     (1) using the provisions of law and regulation applicable to 
     such contracts and agreements as in existence on September 
     30, 2012.
       (c) Effective Date.--The amendment made by this section 
     shall take effect on October 1, 2012.

     SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM.

       Chapter 3 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3839 et seq.) is repealed.

     SEC. 2712. TECHNICAL AMENDMENTS.

       (a) Section 1201(a) of the Food Security Act of 1985 (16 
     U.S.C. 3801(a)) is amended in the matter preceding paragraph 
     (1) by striking ``E'' and inserting ``I''.
       (b) Section 1211(a) of the Food Security Act of 1985 (16 
     U.S.C. 3811(a)) is amended by striking ``predominate'' each 
     place it appears and inserting ``predominant''.
       (c) Section 1242(i) of the Food Security Act of 1985(16 
     U.S.C. 3842(i)) is amended in the subsection heading by 
     striking ``speciality'' and inserting ``specialty''.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

     SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH 
                   WHICH NONEMERGENCY ASSISTANCE IS PROVIDED.

       Effective October 1, 2012, section 202(e)(1) of the Food 
     for Peace Act (7 U.S.C. 1722(e)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``13 percent'' and inserting ``15 percent''; and
       (2) in subparagraph (A), by striking ``new'' and inserting 
     ``and enhancing''.

     SEC. 3002. FOOD AID QUALITY.

       Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) 
     is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--The Administrator shall use funds made 
     available for fiscal year 2013 and subsequent fiscal years to 
     carry out this title--
       ``(A) to assess the types and quality of agricultural 
     commodities and products donated for food aid;
       ``(B) to adjust products and formulations, including 
     potential introduction of new fortificants and products, as 
     necessary to cost-effectively meet nutrient needs of target 
     populations;
       ``(C) to test prototypes;
       ``(D) to adopt new specifications or improve existing 
     specifications for micronutrient fortified food aid products, 
     based on the latest developments in food and nutrition 
     science, and in coordination with other international 
     partners;
       ``(E) to develop new program guidance to facilitate 
     improved matching of products to purposes having nutritional 
     intent, in coordination with other international partners;
       ``(F) to develop improved guidance for implementing 
     partners on how to address nutritional deficiencies that 
     emerge among recipients for whom food assistance is the sole 
     source of diet in emergency programs that extend beyond 1 
     year, in coordination with other international partners; and
       ``(G) to evaluate, in appropriate settings and as 
     necessary, the performance and cost-effectiveness of new or 
     modified specialized food products and program approaches 
     designed to meet the nutritional needs of the most vulnerable 
     groups, such as pregnant and lactating mothers, and children 
     under the age of 5.''; and
       (2) in paragraph (3), by striking ``2011'' and inserting 
     ``2017''.

     SEC. 3003. MINIMUM LEVELS OF ASSISTANCE.

       Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) 
     is amended--
       (1) in paragraph (1), by striking ``2012'' and inserting 
     ``2017''; and
       (2) in paragraph (2), by striking ``2012'' and inserting 
     ``2017''.

     SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULTATIVE GROUP.

       Section 205(f) of the Food for Peace Act (7 U.S.C. 1725(f)) 
     is amended by striking ``2012'' and inserting ``2017''.

     SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF FOOD FOR 
                   PEACE ACT PROGRAMS.

       Section 207(f) of the Food for Peace Act (7 U.S.C. 
     1726a(f)) is amended--

[[Page S4029]]

       (1) by striking paragraph (4) and redesignating paragraphs 
     (5) and (6) as paragraphs (4) and (5), respectively; and
       (2) in subparagraph (A) of paragraph (5) (as so 
     redesignated)--
       (A) by striking ``2012'' and inserting ``2017''; and
       (B) by striking ``during fiscal year 2009'' and inserting 
     ``during the period of fiscal years 2013 through 2017''.

     SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID 
                   TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF 
                   SHELF-STABLE PREPACKAGED FOODS.

       Section 208(f) of the Food for Peace Act (7 U.S.C. 
     1726b(f)) is amended by striking ``2012'' and inserting 
     ``2017''.

     SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMODITIES 
                   MONETIZED.

       Section 403 of the Food for Peace Act (7 U.S.C. 1733) is 
     amended by adding at the end the following:
       ``(m) Limitation on Monetization of Commodities.--
       ``(1) Limitation.--
       ``(A) In general.--Unless the Administrator grants a waiver 
     under paragraph (2), no commodity may be made available under 
     this Act unless the rate of return for the commodity (as 
     determined under subparagraph (B)) is at least 70 percent.
       ``(B) Rate of return.--For purposes of subparagraph (A), 
     the rate of return shall be equal to the proportion that--
       ``(i) the proceeds the implementing partners generate 
     through monetization; bears to
       ``(ii) the cost to the Federal Government to procure and 
     ship the commodities to a recipient country for monetization.
       ``(2) Waiver authority.--The Administrator may waive the 
     application of the limitation in paragraph (1) with regard to 
     a commodity for a recipient country if the Administrator 
     determines that it is necessary to achieve the purposes of 
     this Act in the recipient country.
       ``(3) Report.--Not later than 90 days after a waiver is 
     granted under paragraph (2), the Administrator shall prepare, 
     publish in the Federal Register, and submit to the Committees 
     on Foreign Affairs, Agriculture, and Appropriations of the 
     House of Representatives, and the Committees on 
     Appropriations, Foreign Relations, and Agriculture, 
     Nutrition, and Forestry of the Senate a report that--
       ``(A) contains the reasons for granting the waiver and the 
     actual rate of return for the commodity; and
       ``(B) includes for the commodity the costs of bagging or 
     further processing, ocean transportation, inland 
     transportation in the recipient country, storage costs, and 
     any other information that the Administrator determines to be 
     necessary.''.

     SEC. 3008. FLEXIBILITY.

       Section 406 of the Food for Peace Act (7 U.S.C. 1736) is 
     amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Flexibility.--Notwithstanding any other provision of 
     law and as necessary to achieve the purposes of this Act, 
     funds available under this Act may be used to pay the costs 
     of up to 20 percent of activities conducted in recipient 
     countries by nonprofit voluntary organizations, cooperatives, 
     or intergovernmental agencies or organizations.''.

     SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, AND STORAGE 
                   OF AGRICULTURAL COMMODITIES FOR PREPOSITIONING 
                   IN THE UNITED STATES AND FOREIGN COUNTRIES.

       Section 407 of the Food for Peace Act (7 U.S.C. 1736a) is 
     amended--
       (1) in subparagraph (c)(4)(A)--
       (A) by striking ``2012'' and inserting ``2017''; and
       (B) by striking ``for each such fiscal year not more than 
     $10,000,000 of such funds'' and inserting ``for each of 
     fiscal years 2001 through 2012 not more than $10,000,000 of 
     such funds and for each of fiscal years 2013 through 2017 not 
     more than $15,000,000 of such funds''; and
       (2) by adding at the end the following:
       ``(g) Funding for Testing of Food Aid Shipments.--Funds 
     made available for agricultural products acquired under this 
     Act and section 3107 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 1736 o 1) may be used to pay 
     for the testing of those agricultural products.''.

     SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO 
                   PROVIDE OTHER ASSISTANCE.

       Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is 
     amended by striking ``2012'' and inserting ``2017''.

     SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

       Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is 
     amended by striking subsection (e) and inserting the 
     following:
       ``(e) Minimum Level of Nonemergency Food Assistance.--
       ``(1) In general.--Subject to paragraph (2), of the amounts 
     made available to carry out emergency and nonemergency food 
     assistance programs under title II, not less than 15 percent 
     nor more than 30 percent for each of fiscal years 2013 
     through 2017 shall be expended for nonemergency food 
     assistance programs under title II.
       ``(2) Minimum level.--The amount made available to carry 
     out nonemergency food assistance programs under title II 
     shall not be less than $275,000,000 for any fiscal year.''.

     SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS 
                   REPORT.

       Section 413 of the Food for Peace Act (7 U.S.C. 1736(g)) is 
     amended--
       (1) by striking ``(a) In General.--To the maximum'' and 
     inserting ``To the maximum''; and
       (2) by striking subsection (b).

     SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

       (a) Elimination of Obsolete Reference to Study.--Section 
     415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g 
     2(a)(2)(B)) is amended by striking ``, using 
     recommendations'' and all that follows through ``quality 
     enhancements''.
       (b) Extension.--Section 415(c) of the Food for Peace Act (7 
     U.S.C. 1736g 2(c)) is amended by striking ``2012'' and 
     inserting ``2017''.

     SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER 
                   PROGRAM.

       Section 501 of the Food for Peace Act (7 U.S.C. 1737) is 
     amended--
       (1) in subsection (d)--
       (A) by striking ``0.5 percent'' and inserting ``0.6 
     percent''; and
       (B) by striking ``2012'' and inserting ``2017''; and
       (2) in subsection (e)(1), by striking ``2012'' and 
     inserting ``2017''.

               Subtitle B--Agricultural Trade Act of 1978

     SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS.

       Section 211 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5641) is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Export Credit Guarantee Programs.--The Commodity 
     Credit Corporation shall make available for each of fiscal 
     years 2013 through 2017 credit guarantees under section 
     202(a) in an amount equal to not more than $4,500,000,000 in 
     credit guarantees.''.

     SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM.

       Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 
     (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``2012'' and 
     inserting ``2017''.

     SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       Section 703(a) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5723(a)) is amended by striking ``2012'' and inserting 
     ``2017''.

               Subtitle C--Other Agricultural Trade Laws

     SEC. 3201. FOOD FOR PROGRESS ACT OF 1985.

       (a) Extension.--The Food for Progress Act of 1985 (7 U.S.C. 
     1736o) is amended--
       (1) in subsection (f)(3), by striking ``2012'' and 
     inserting ``2017'';
       (2) in subsection (g), by striking ``2012'' and inserting 
     ``2017'';
       (3) in subsection (k), by striking ``2012'' and inserting 
     ``2017''; and
       (4) in subsection (l)(1), by striking ``2012'' and 
     inserting ``2017''.
       (b) Repeal of Completed Project.--Subsection (f) of the 
     Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by 
     striking paragraph (6).
       (c) Flexibility.--The Food for Progress Act of 1985 (7 
     U.S.C. 1736o) is amended in subsection (l) by adding at the 
     end the following:
       ``(5) Flexibility.--Notwithstanding any other provision of 
     law and as necessary to achieve the purposes of this Act, 
     funds available under this Act may be used to pay the costs 
     of up to 20 percent of activities conducted in recipient 
     countries by nonprofit voluntary organizations, cooperatives, 
     or intergovernmental agencies or organizations.''.
       (d) Limitation on Total Volume of Commodities Monetized.--
     The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended 
     by adding at the end the following:
       ``(p) Limitation on Monetization of Commodities.--
       ``(1) Limitation.--
       ``(A) In general.--Unless the Secretary grants a waiver 
     under paragraph (2), no eligible commodity may be made 
     available under this section unless the rate of return for 
     the eligible commodity (as determined under subparagraph (B)) 
     is at least 70 percent.
       ``(B) Rate of return.--For purposes of subparagraph (A), 
     the rate of return shall be equal to the proportion that--
       ``(i) the proceeds the implementing partners generate 
     through monetization; bears to
       ``(ii) the cost to the Federal Government to procure and 
     ship the eligible commodities to a recipient country for 
     monetization.
       ``(2) Waiver authority.--The Secretary may waive the 
     application of the limitation in paragraph (1) with regard to 
     an eligible commodity for a recipient country if the 
     Secretary determines that it is necessary to achieve the 
     purposes of this Act in the recipient country.
       ``(3) Report.--Not later than 90 days after a waiver is 
     granted under paragraph (2), the Secretary shall prepare, 
     publish in the Federal Register, and submit to the Committees 
     on Foreign Affairs, Agriculture, and Appropriations of the 
     House of Representatives, and the Committees on 
     Appropriations, Foreign Relations, and Agriculture, 
     Nutrition, and Forestry of the Senate a report that--
       ``(A) contains the reasons for granting the waiver and the 
     actual rate of return for the eligible commodity; and
       ``(B) includes for the commodity the costs of bagging or 
     further processing, ocean transportation, inland 
     transportation in the recipient country, storage costs, and 
     any other information that the Secretary determines to be 
     necessary.''.

     SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

       Section 302 of the Bill Emerson Humanitarian Trust Act (7 
     U.S.C. 1736f 1) is amended--

[[Page S4030]]

       (1) in subsection (b)(2)(B)(i), by striking ``2012'' both 
     places it appears and inserting ``2017''; and
       (2) in subsection (h), by striking ``2012'' both places it 
     appears and inserting ``2017''.

     SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING 
                   MARKETS.

       (a) Direct Credits or Export Credit Guarantees.--Section 
     1542(a) of the Food, Agriculture, Conservation, and Trade Act 
     of 1990 (Public Law 101 624; 7 U.S.C. 5622 note) is amended 
     by striking ``2012'' and inserting ``2017''.
       (b) Development of Agricultural Systems.--Section 
     1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101 624; 7 U.S.C. 5622 note) is 
     amended by striking ``2012'' and inserting ``2017''.

     SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND 
                   CHILD NUTRITION PROGRAM.

       (a) Reauthorization.--Section 3107(l)(2) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 1736o 
     1(l)(2)) is amended by striking ``2012'' and inserting 
     ``2017''.
       (b) Technical Correction.--Section 3107(d) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 1736o 
     1(d)) is amended by striking ``to'' in the matter preceding 
     paragraph (1).

     SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

       (a) Purpose.--Section 3205(b) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by 
     striking ``related barriers to trade'' and inserting 
     ``technical barriers to trade''.
       (b) Funding.--Section 3205(e)(2) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is 
     amended--
       (1) by inserting ``and'' at the end of subparagraph (C); 
     and
       (2) by striking subparagraphs (D) and (E) and inserting the 
     following new subparagraph:
       ``(D) $9,000,000 for each of fiscal years 2011 through 
     2017.''.

     SEC. 3206. GLOBAL CROP DIVERSITY TRUST.

       Section 3202(c) of the Food, Conservation, and Energy Act 
     of 2008 (Public Law 110 246; 22 U.S.C. 2220a note) is amended 
     by striking ``2008 through 2012'' and inserting ``2013 
     through 2017''.

     SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

       Section 3206 of the Food, Conservation, and Energy Act of 
     2008 (7 U.S.C. 1726c) is amended--
       (1) in subsection (b)--
       (A) by striking ``(b) Study; Field-based Projects.--'' and 
     all that follows through ``(2) Field-based projects.--'' and 
     inserting the following:
       ``(b) Field-based Projects.--'';
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and indenting 
     appropriately;
       (C) in paragraph (1) (as so redesignated), by striking 
     ``subparagraph (B)'' and inserting ``paragraph (2)''; and
       (D) in paragraph (2) (as so redesignated), by striking 
     ``subparagraph (A)'' and inserting ``paragraph (1)'';
       (2) in subsection (c)(1), by striking ``subsection (b)(2)'' 
     and inserting ``subsection (b)'';
       (3) by striking subsections (d), (f), and (g);
       (4) by redesignating subsection (e) as subsection (d);
       (5) in subsection (d) (as so redesignated)--
       (A) in paragraph (2)--
       (i) by striking subparagraph (B); and
       (ii) in subparagraph (A)--

       (I) by striking ``(A) Application.--'' and all that follows 
     through ``To be eligible'' in clause (i) and inserting the 
     following:

       ``(A) In general.--To be eligible'';

       (II) by redesignating clause (ii) as subparagraph (B) and 
     indenting appropriately; and
       (III) in subparagraph (B) (as so redesignated), by striking 
     ``clause (i)'' and inserting ``subparagraph (A)''; and

       (B) by striking paragraph (4); and
       (6) by adding at the end the following:
       ``(e) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $40,000,000 for 
     each of fiscal years 2013 through 2017.
       ``(2) Preference.--In carrying out this section, the 
     Secretary may give a preference to eligible organizations 
     that have, or are working toward, projects under the 
     McGovern-Dole International Food for Education and Child 
     Nutrition Program established under section 3107 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1).
       ``(3) Reporting.--Each year, the Secretary shall submit to 
     the appropriate committees of Congress a report that 
     describes the use of funds under this section, including--
       ``(A) the impact of procurements and projects on--
       ``(i) local and regional agricultural producers; and
       ``(ii) markets and consumers, including low-income 
     consumers; and
       ``(B) implementation time frames and costs.''.

     SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESILIENCE 
                   PROGRAM.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Agency for International Development.
       (2) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate;
       (B) the Committee on Agriculture of the House of 
     Representatives;
       (C) the Committee on Foreign Relations of the Senate; and
       (D) the Committee on Foreign Affairs of the House of 
     Representatives.
       (3) Eligible organization.--The term ``eligible 
     organization'' means an organization that is--
       (A) a private voluntary organization or cooperative that 
     is, to the extent practicable, registered with the 
     Administrator; or
       (B) an intergovernmental organization, such as the World 
     Food Program.
       (4) Horn of africa.--The term ``Horn of Africa'' means the 
     countries of--
       (A) Ethiopia;
       (B) Somalia;
       (C) Kenya;
       (D) Djibouti;
       (E) Eritrea;
       (F) South Sudan;
       (G) Uganda; and
       (H) such other countries as the Administrator determines to 
     be appropriate after providing notification to the 
     appropriate committees of Congress.
       (5) Resilience.--The term ``resilience'' means--
       (A) the capacity to mitigate the negative impacts of crises 
     (including natural disasters, conflicts, and economic shocks) 
     in order to reduce loss of life and depletion of productive 
     assets;
       (B) the capacity to respond effectively to crises, ensuring 
     basic needs are met in a way that is integrated with long-
     term development efforts; and
       (C) the capacity to recover and rebuild after crises so 
     that future shocks can be absorbed with less need for ongoing 
     external assistance.
       (b) Purpose.--The purpose of this section is to establish a 
     pilot program to effectively integrate all United States-
     funded emergency and long-term development activities that 
     aim to improve food security in the Horn of Africa, building 
     resilience so as--
       (1) to reduce the impacts of future crises;
       (2) to enhance local capacity for emergency response;
       (3) to enhance sustainability of long-term development 
     programs targeting poor and vulnerable households; and
       (4) to reduce the need for repeated costly emergency 
     operations.
       (c) Study.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator shall initiate a 
     study of prior programs to support resilience in the Horn of 
     Africa conducted by--
       (A) other donor countries;
       (B) private voluntary organizations;
       (C) the World Food Program of the United Nations; and
       (D) multilateral institutions, including the World Bank.
       (2) Requirements.--The study shall--
       (A) include all programs implemented through the Agency for 
     International Development, the Department of Agriculture, the 
     Department of Treasury, the Millennium Challenge Corporation, 
     the Peace Corps, and other relevant Federal agencies;
       (B) evaluate how well the programs described in 
     subparagraph (A) work together to complement each other and 
     leverage impacts across programs;
       (C) include recommendations for how full integration of 
     efforts can be achieved; and
       (D) evaluate the degree to which country-led development 
     plans support programs that increase resilience, including 
     review of the investments by each country in nutrition and 
     safety nets.
       (3) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     appropriate committees of Congress a report containing the 
     results of the study.
       (d) Field-based Project Grants or Cooperative Agreements.--
       (1) In general.--The Administrator shall--
       (A) provide grants to, or enter into cooperative agreements 
     with, eligible organizations to carry out field-based 
     projects that build resilience in the Horn of Africa in 
     accordance with this section; and
       (B) develop a project approval process to ensure full 
     integration of efforts.
       (2) Requirements of eligible organizations.--
       (A) Application.--To be eligible to receive a grant from, 
     or enter into a cooperative agreement with, the Administrator 
     under this subsection, an eligible organization shall submit 
     to the Administrator an application by such date, in such 
     manner, and containing such information as the Administrator 
     may require.
       (B) Completion requirement.--To be eligible to receive a 
     grant from, or enter into a cooperative agreement with, the 
     Administrator under this subsection, an eligible organization 
     shall agree--
       (i) to collect, not later than September 30, 2016, data 
     containing the information required under subsection (f)(2) 
     relating to the field-based project funded through the grant 
     or cooperative agreement; and
       (ii) to provide to the Administrator the data collected 
     under clause (i).
       (3) Requirements of administrator.--
       (A) Project diversity.--
       (i) In general.--Subject to clause (ii) and subparagraph 
     (B), in selecting proposals for

[[Page S4031]]

     field-based projects to fund under this section, the 
     Administrator shall select a diversity of projects, including 
     projects located in--

       (I) areas most prone to repeated crises;
       (II) areas with effective existing resilience programs that 
     can be scaled; and
       (III) areas in all countries of the Horn of Africa.

       (ii) Priority.--In selecting proposals for field-based 
     projects under clause (i), the Administrator shall ensure 
     that the selected proposals are for field-based projects 
     that--

       (I) effectively integrate emergency and long-term 
     development programs to improve sustainability;
       (II) demonstrate the potential to reduce the need for 
     future emergency assistance; and
       (III) build targeted productive safety nets, in 
     coordination with host country governments, through food for 
     work, cash for work, and other proven program methodologies.

       (B) Availability.--The Administrator shall not award a 
     grant or cooperative agreement or approve a field-based 
     project under this subsection until the date on which the 
     Administrator promulgates regulations or issues guidelines 
     under subsection (e).
       (e) Regulations; Guidelines.--
       (1) In general.--Not later than 180 days after the date of 
     completion of the study under subsection (c), the 
     Administrator shall promulgate regulations or issue 
     guidelines to carry out field-based projects under this 
     section.
       (2) Requirements.--In promulgating regulations or issuing 
     guidelines under paragraph (1), the Administrator shall--
       (A) take into consideration the results of the study 
     described in subsection (c); and
       (B) provide an opportunity for public review and comment.
       (f) Report.--
       (1) In general.--Not later than November 1, 2016, the 
     Administrator shall submit to the appropriate committees of 
     Congress a report that--
       (A) addresses each factor described in paragraph (2); and
       (B) is conducted in accordance with this section.
       (2) Required factors.--The report shall include baseline 
     and end-of-project data that measures--
       (A) the prevalence of moderate and severe hunger so as to 
     provide an accurate accounting of project impact on household 
     access to and consumption of food during every month of the 
     year prior to data collection;
       (B) household ownership of and access to productive assets, 
     including at a minimum land, livestock, homes, equipment, and 
     other materials assets needed for income generation;
       (C) household incomes, including informal sources of 
     employment; and
       (D) the productive assets of women using the Women's 
     Empowerment in Agriculture Index.
       (3) Public access to records and reports.--Not later than 
     90 days after the date on which the report is submitted under 
     paragraph (1), the Administrator shall provide public access 
     to the report.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2013 through 2017.

     SEC. 3209. AGRICULTURAL TRADE ENHANCEMENT STUDY.

       (a) Definition of Agriculture Committees and 
     Subcommittees.--In this section, the term ``agriculture 
     committees and subcommittees'' means--
       (1) the Committee on Agriculture of the House of 
     Representatives;
       (2) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate; and
       (3) the subcommittees on agriculture, rural development, 
     food and drug administration, and related agencies of the 
     Committees on Appropriations of the House of Representatives 
     and the Senate.
       (b) Development.--The Secretary, in consultation with the 
     agriculture committees and subcommittees, shall develop a 
     study that takes into consideration a reorganization of 
     international trade functions for imports and exports at the 
     Department of Agriculture.
       (c) Implementation.--In implementing the study under this 
     section, the Secretary--
       (1) in recognition of the importance of agricultural 
     exports to the farm economy and the economy as a whole, may 
     include a recommendation for the establishment of an Under 
     Secretary for Trade and Foreign Agricultural Affairs;
       (2) may take into consideration how the Under Secretary 
     described in paragraph (1) would serve as a multiagency 
     coordinator of sanitary and phytosanitary issues and 
     nontariff trade barriers in agriculture with respect to 
     imports and exports of agricultural products; and
       (3) shall take into consideration all implications of a 
     reorganization described in subsection (b) on domestic 
     programs and operations of the Department of Agriculture.
       (d) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     agriculture committees and subcommittees a report describing 
     the results of the study under this section.

                          TITLE IV--NUTRITION

         Subtitle A--Supplemental Nutrition Assistance Program

     SEC. 4001. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

       Section 4(b)(6)(F) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2013(b)(6)(F)) is amended by striking ``2012'' and 
     inserting ``2017''.

     SEC. 4002. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT 
                   OF ENERGY ASSISTANCE PAYMENTS.

       (a) Standard Utility Allowances in the Supplemental 
     Nutrition Assistance Program.--Section 5(e)(6)(C) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is 
     amended--
       (1) in clause (i), by inserting ``, subject to clause 
     (iv)'' after ``Secretary''; and
       (2) in clause (iv)(I), by striking ``the household still 
     incurs'' and all that follows through the end of the 
     subclause and inserting ``the payment received by, or made on 
     behalf of, the household exceeds $10 or a higher amount 
     annually, as determined by the Secretary.''.
       (b) Conforming Amendment.--Section 2605(f)(2)(A) of the 
     Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8624(f)(2)(A)) is amended by inserting before the semicolon 
     at the end ``, except that, for purposes of the supplemental 
     nutrition assistance program established under the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such payments 
     or allowances exceed $10 or a higher amount annually, as 
     determined by the Secretary of Agriculture in accordance with 
     section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C. 
     2014(e)(6)(C)(iv)(I))''.
       (c) Effective and Implementation Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section and the amendments made by this section shall take 
     effect beginning on October 1, 2013, for all certification 
     periods beginning after that date.
       (2) State option to delay implementation for current 
     recipients.--A State may, at the option of the State, 
     implement a policy that eliminates or minimizes the effect of 
     the amendments made by this section for households that 
     receive a standard utility allowance as of the date of 
     enactment of this Act for not more than a 180-day period 
     beginning on the date on which the amendments made by this 
     section would otherwise affect the benefits received by a 
     household.

     SEC. 4003. ELIGIBILITY DISQUALIFICATIONS.

       Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 
     U.S.C. 2015(e)(3)(B)) is amended by striking ``section'' and 
     inserting the following: ``section, subject to the condition 
     that the course or program of study--
       ``(i) is part of a program of career and technical 
     education (as defined in section 3 of the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2302)) 
     that may be completed in not more than 4 years at an 
     institution of higher education (as defined in section 102 of 
     the Higher Education Act of 1965 (20 U.S.C. 1002)); or
       ``(ii) is limited to remedial courses, basic adult 
     education, literacy, or English as a second language;''.

     SEC. 4004. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 
                   BENEFITS FOR LOTTERY OR GAMBLING WINNERS.

       (a) In General.--Section 6 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2015) is amended by adding at the end the 
     following:
       ``(r) Ineligibility for Benefits Due to Receipt of 
     Substantial Lottery or Gambling Winnings.--
       ``(1) In general.--Any household in which a member receives 
     substantial lottery or gambling winnings, as determined by 
     the Secretary, shall lose eligibility for benefits 
     immediately upon receipt of the winnings.
       ``(2) Duration of ineligibility.--A household described in 
     paragraph (1) shall remain ineligible for participation until 
     the household meets the allowable financial resources and 
     income eligibility requirements under subsections (c), (d), 
     (e), (f), (g), (i), (k), (l), (m), and (n) of section 5.
       ``(3) Agreements.--As determined by the Secretary, each 
     State agency, to the maximum extent practicable, shall 
     establish agreements with entities responsible for the 
     regulation or sponsorship of gaming in the State to determine 
     whether individuals participating in the supplemental 
     nutrition assistance program have received substantial 
     lottery or gambling winnings.''.
       (b) Conforming Amendments.--Section 5(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the 
     second sentence by striking ``sections 6(b), 6(d)(2), and 
     6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r) 
     of section 6''.

     SEC. 4005. RETAIL FOOD STORES.

       (a) Definition of Retail Food Store.--Subsection (o)(1)(A) 
     of section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2012) (as redesignated by section 4016(a)(4)) is amended by 
     striking ``at least 2'' and inserting ``at least 3''.
       (b) Alternative Benefit Delivery.--Section 7(f) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Imposition of costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require participating retail food stores 
     (including restaurants participating in a State option 
     restaurant program intended to serve the elderly, disabled, 
     and homeless) to pay 100 percent of the costs of acquiring, 
     and arrange for the implementation of, electronic benefit 
     transfer point-of-sale equipment and supplies, including 
     related services.
       ``(B) Exemptions.--The Secretary may exempt from 
     subparagraph (A)--

[[Page S4032]]

       ``(i) farmers' markets, military commissaries, nonprofit 
     food buying cooperatives, and establishments, organizations, 
     programs, or group living arrangements described in 
     paragraphs (5), (7), and (8) of section 3(k); and
       ``(ii) establishments described in paragraphs (3), (4), and 
     (9) of section 3(k), other than restaurants participating in 
     a State option restaurant program.''; and
       (2) by adding at the end the following:
       ``(4) Termination of manual vouchers.--
       ``(A) In general.--Effective beginning on the date of 
     enactment of this paragraph, except as provided in 
     subparagraph (B), no State shall issue manual vouchers to a 
     household that receives supplemental nutrition assistance 
     under this Act or allow retail food stores to accept manual 
     vouchers as payment, unless the Secretary determines that the 
     manual vouchers are necessary, such as in the event of an 
     electronic benefit transfer system failure or a disaster 
     situation.
       ``(B) Exemptions.--The Secretary may exempt categories of 
     retail food stores or individual retail food stores from 
     subparagraph (A) based on criteria established by the 
     Secretary.
       ``(5) Unique identification number required.--The Secretary 
     shall require all parties providing electronic benefit 
     transfer services to provide for and maintain unique terminal 
     identification number information through the supplemental 
     nutrition assistance program electronic benefit transfer 
     transaction routing system.''.
       (c) Electronic Benefit Transfers.--Section 7(h)(3)(B) of 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) 
     is amended by striking ``is operational--'' and all that 
     follows through ``(ii) in the case of other participating 
     stores,'' and inserting ``is operational''.
       (d) Approval of Retail Food Stores and Wholesale Food 
     Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2018) is amended--
       (1) in subsection (a)--
       (A) in the second sentence of paragraph (a)(1), by striking 
     ``; and (C)'' and inserting ``; (C) whether the applicant is 
     located in an area with significantly limited access to food; 
     and (D)''; and
       (2) by adding at the end the following:
       ``(4) Retail food stores with significant sales of excepted 
     items.--
       ``(A) In general.--No retail food store for which at least 
     45 percent of the total sales of the retail food store is 
     from the sale of excepted items described in section 3(k)(1) 
     may be authorized to accept and redeem benefits unless the 
     Secretary determines that the participation of the retail 
     food store is required for the effective and efficient 
     operation of the supplemental nutrition assistance program.
       ``(B) Application.--Subparagraph (A) shall be effective--
       ``(i) in the case of retail food stores applying to be 
     authorized for the first time, beginning on the date that is 
     1 year after the date of enactment of this paragraph; and
       ``(ii) in the case of retail food stores participating in 
     the program on the date of enactment of this paragraph, 
     during periodic reauthorization in accordance with paragraph 
     (2)(A).''; and
       (3) by adding at the end the following:
       ``(g) EBT Service Requirement.--An approved retail food 
     store shall provide adequate EBT service as described in 
     section 7(h)(3)(B).''.

     SEC. 4006. IMPROVING SECURITY OF FOOD ASSISTANCE.

       Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2016(h)(8)) is amended--
       (1) by striking the paragraph heading and inserting 
     ``Replacement of cards.--'';
       (2) by striking ``A State'' and inserting the following:
       ``(A) Fees.--A State''; and
       (3) by adding after subparagraph (A) (as so designated by 
     paragraph (2)) the following:
       ``(B) Purposeful loss of cards.--
       ``(i) In general.--Subject to terms and conditions 
     established by the Secretary in accordance with clause (ii), 
     if a household makes excessive requests for replacement of 
     the electronic benefit transfer card of the household, the 
     Secretary may require a State agency to decline to issue a 
     replacement card to the household unless the household, upon 
     request of the State agency, provides an explanation for the 
     loss of the card.
       ``(ii) Requirements.--The terms and conditions established 
     by the Secretary shall provide that--

       ``(I) the household be given the opportunity to provide the 
     requested explanation and meet the requirements under this 
     paragraph promptly;
       ``(II) after an excessive number of lost cards, the head of 
     the household shall be required to review program rights and 
     responsibilities with State agency personnel authorized to 
     make determinations under section 5(a); and
       ``(III) any action taken, including actions required under 
     section 6(b)(2), other than the withholding of the electronic 
     benefit transfer card until an explanation described in 
     subclause (I) is provided, shall be consistent with the due 
     process protections under section 6(b) or 11(e)(10), as 
     appropriate.

       ``(C) Protecting vulnerable persons.--In implementing this 
     paragraph, a State agency shall act to protect homeless 
     persons, persons with disabilities, victims of crimes, and 
     other vulnerable persons who lose electronic benefit transfer 
     cards but are not intentionally committing fraud.
       ``(D) Effect on eligibility.--While a State may decline to 
     issue an electronic benefits transfer card until a household 
     satisfies the requirements under this paragraph, nothing in 
     this paragraph shall be considered a denial of, or limitation 
     on, the eligibility for benefits under section 5.''.

     SEC. 4007. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES.

       (a) Mobile Technologies.--Section 7(h) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by 
     section 4016(e)) is amended by adding at the end the 
     following:
       ``(14) Mobile technologies.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall approve retail food stores to redeem benefits 
     through electronic means other than wired point of sale 
     devices for electronic benefit transfer transactions, if the 
     retail food stores--
       ``(i) establish recipient protections regarding privacy, 
     ease of use, access, and support similar to the protections 
     provided for transactions made in retail food stores;
       ``(ii) bear the costs of obtaining, installing, and 
     maintaining mobile technologies, including mechanisms needed 
     to process EBT cards and transaction fees;
       ``(iii) demonstrate the foods purchased with benefits 
     issued under this section through mobile technologies are 
     purchased at a price not higher than the price of the same 
     food purchased by other methods used by the retail food 
     store, as determined by the Secretary;
       ``(iv) provide adequate documentation for each authorized 
     transaction, as determined by the Secretary; and
       ``(v) meet other criteria as established by the Secretary.
       ``(B) Demonstration project on acceptance of benefits of 
     mobile transactions.--
       ``(i) In general.--Before authorizing implementation of 
     subparagraph (A) in all States, the Secretary shall pilot the 
     use of mobile technologies determined by the Secretary to be 
     appropriate to test the feasibility and implications for 
     program integrity, by allowing retail food stores to accept 
     benefits from recipients of supplemental nutrition assistance 
     through mobile transactions.
       ``(ii) Demonstration projects.--To be eligible to 
     participate in a demonstration project under clause (i), a 
     retail food store shall submit to the Secretary for approval 
     a plan that includes--

       ``(I) a description of the technology;
       ``(II) the manner by which the retail food store will 
     provide proof of the transaction to households;
       ``(III) the provision of data to the Secretary, consistent 
     with requirements established by the Secretary, in a manner 
     that allows the Secretary to evaluate the impact of the 
     demonstration on participant access, ease of use, and program 
     integrity; and
       ``(IV) such other criteria as the Secretary may require.

       ``(iii) Date of completion.--The demonstration projects 
     under this subparagraph shall be completed and final reports 
     submitted to the Secretary by not later than July 1, 2015.
       ``(C) Report to congress.--The Secretary shall--
       ``(i) by not later than January 1, 2016, authorize 
     implementation of subparagraph (A) in all States, unless the 
     Secretary makes a finding, based on the data provided under 
     subparagraph (B), that implementation in all States is not in 
     the best interest of the supplemental nutrition assistance 
     program; and
       ``(ii) if the determination made in clause (i) is not to 
     implement subparagraph (A) in all States, 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 basis of the finding.''.
       (b) Acceptance of Benefits Through On-line Transactions.--
       (1) In general.--Section 7 of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2016) is amended by adding at the end the 
     following:
       ``(k) Option to Accept Program Benefits Through On-line 
     Transactions.--
       ``(1) In general.--Subject to paragraph (4), the Secretary 
     shall approve retail food stores to accept benefits from 
     recipients of supplemental nutrition assistance through on-
     line transactions.
       ``(2) Requirements to accept benefits.--A retail food store 
     seeking to accept benefits from recipients of supplemental 
     nutrition assistance through on-line transactions shall--
       ``(A) establish recipient protections regarding privacy, 
     ease of use, access, and support similar to the protections 
     provided for transactions made in retail food stores;
       ``(B) ensure benefits are not used to pay delivery, 
     ordering, convenience, or other fees or charges;
       ``(C) clearly notify participating households at the time a 
     food order is placed--
       ``(i) of any delivery, ordering, convenience, or other fee 
     or charge associated with the food purchase; and
       ``(ii) that any such fee cannot be paid with benefits 
     provided under this Act;
       ``(D) ensure the security of on-line transactions by using 
     the most effective technology available that the Secretary 
     considers appropriate and cost-effective and that is 
     comparable to the security of transactions at retail food 
     stores; and
       ``(E) meet other criteria as established by the Secretary.

[[Page S4033]]

       ``(3) State agency action.--Each State agency shall ensure 
     that recipients of supplemental nutrition assistance can use 
     benefits on-line as described in this subsection as 
     appropriate.
       ``(4) Demonstration project on acceptance of benefits 
     through on-line transactions.--
       ``(A) In general.--Before the Secretary authorizes 
     implementation of paragraph (1) in all States, the Secretary 
     shall carry out a number of demonstration projects as 
     determined by the Secretary to test the feasibility of 
     allowing retail food stores to accept benefits through on-
     line transactions.
       ``(B) Demonstration projects.--To be eligible to 
     participate in a demonstration project under subparagraph 
     (A), a retail food store shall submit to the Secretary for 
     approval a plan that includes--
       ``(i) a method of ensuring that benefits may be used to 
     purchase only eligible items under this Act;
       ``(ii) a description of the method of educating participant 
     households about the availability and operation of on-line 
     purchasing;
       ``(iii) adequate testing of the on-line purchasing option 
     prior to implementation;
       ``(iv) the provision of data as requested by the Secretary 
     for purposes of analyzing the impact of the project on 
     participant access, ease of use, and program integrity;
       ``(v) reports on progress, challenges, and results, as 
     determined by the Secretary; and
       ``(vi) such other criteria, including security criteria, as 
     established by the Secretary.
       ``(C) Date of completion.--The demonstration projects under 
     this paragraph shall be completed and final reports submitted 
     to the Secretary by not later than July 1, 2015.
       ``(5) Report to congress.--The Secretary shall--
       ``(A) by not later than January 1, 2016, authorize 
     implementation of paragraph (1) in all States, unless the 
     Secretary makes a finding, based on the data provided under 
     paragraph (4), that implementation in all States is not in 
     the best interest of the supplemental nutrition assistance 
     program; and
       ``(B) if the determination made in subparagraph (A) is not 
     to implement in all States, 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 basis of the finding.''.
       (2) Conforming amendments.--
       (A) Section 7(b) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2016(b)) is amended by striking ``purchase food in 
     retail food stores'' and inserting ``purchase food from 
     retail food stores''.
       (B) Section 10 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2019) is amended in the first sentence by inserting 
     ``retail food stores authorized to accept and redeem benefits 
     through on-line transactions shall be authorized to accept 
     benefits prior to the delivery of food if the delivery occurs 
     within a reasonable time of the purchase, as determined by 
     the Secretary,'' after ``food so purchased,''.
       (c) Savings Clause.--Nothing in this section or an 
     amendment made by this section alter any requirements of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless 
     specifically authorized in this section or an amendment made 
     by this section.

     SEC. 4008. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-
                   SUPPORTED AGRICULTURE SHARE.

       Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2019) (as amended by section 4007(b)(2)(B)) is amended in the 
     first sentence by inserting ``agricultural producers who 
     market agricultural products directly to consumers shall be 
     authorized to redeem benefits for the initial cost of the 
     purchase of a community-supported agriculture share for an 
     appropriate time in advance of food delivery as determined by 
     the Secretary,'' after ``as determined by the Secretary,''.

     SEC. 4009. RESTAURANT MEALS PROGRAM.

       (a) In General.--Section 11(e) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2020(e)) is amended--
       (1) in paragraph (22), by striking ``and'' at the end;
       (2) in paragraph (23), by striking the period at the end of 
     subparagraph (C) and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(24) if the State elects to carry out a program to 
     contract with private establishments to offer meals at 
     concessional prices, as described in paragraphs 3, 4, and 9 
     of section 3(k)--
       ``(A) the plans of the State agency for operating the 
     program, including--
       ``(i) documentation of a need that eligible homeless, 
     elderly, and disabled clients are underserved in a particular 
     geographic area;
       ``(ii) the manner by which the State agency will limit 
     participation to only those private establishments that the 
     State determines necessary to meet the need identified in 
     clause (i); and
       ``(iii) any other conditions the Secretary may prescribe, 
     such as the level of security necessary to ensure that only 
     eligible recipients participate in the program; and
       ``(B) a report by the State agency to the Secretary 
     annually, the schedule of which shall be established by the 
     Secretary, that includes--
       ``(i) the number of households and individual recipients 
     authorized to participate in the program, including any 
     information on whether the individual recipient is elderly, 
     disabled, or homeless; and
       ``(ii) an assessment of whether the program is meeting an 
     established need, as documented under subparagraph (A)(i).''.
       (b) Approval of Retail Food Stores and Wholesale Food 
     Concerns.--Section 9 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2018) (as amended by section 4005(d)(3)) is amended by 
     adding at the end the following:
       ``(h) Private Establishments.--
       ``(1) In general.--Subject to paragraph (2), no private 
     establishment that contracts with a State agency to offer 
     meals at concessional prices as described in paragraphs 3, 4, 
     and 9 of section 3(k) may be authorized to accept and redeem 
     benefits unless the Secretary determines that the 
     participation of the private establishment is required to 
     meet a documented need in accordance with section 11(e)(24).
       ``(2) Existing contracts.--
       ``(A) In general.--If, on the day before the date of 
     enactment of this subsection, a State has entered into a 
     contract with a private establishment described in paragraph 
     (1) and the Secretary has not determined that the 
     participation of the private establishment is necessary to 
     meet a documented need in accordance with section 11(e)(24), 
     the Secretary shall allow the operation of the private 
     establishment to continue without that determination of need 
     for a period not to exceed 180 days from the date on which 
     the Secretary establishes determination criteria, by 
     regulation, under section 11(e)(24).
       ``(B) Justification.--If the Secretary makes a 
     determination to terminate a contract with a private 
     establishment that is in effect on the date of enactment of 
     this subsection, the Secretary shall provide justification to 
     the State in which the private establishment is located for 
     that termination.
       ``(3) Report to congress.--Not later than 90 days after 
     September 30, 2013, and 90 days after the last day of each 
     fiscal year thereafter, the Secretary shall report to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate on the effectiveness of a program under this 
     subsection using any information received from States under 
     section 11(e)(24) as well as any other information the 
     Secretary may have relating to the manner in which benefits 
     are used.''.
       (c) Conforming Amendments.--Section 3(k) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by 
     inserting ``subject to section 9(h)'' after ``concessional 
     prices'' each place it appears.

     SEC. 4010. QUALITY CONTROL ERROR RATE DETERMINATION.

       Section 16(c) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2025(c)) is amended by adding at the end the 
     following:
       ``(10) Tolerance level.--For the purposes of this 
     subsection, the Secretary shall set the tolerance level for 
     excluding small errors at $25.''.

     SEC. 4011. AUTHORIZATION OF APPROPRIATIONS.

       Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2027(a)(1)) is amended in the first sentence by 
     striking ``2012'' and inserting ``2017''.

     SEC. 4012. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

       Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2034) is amended--
       (1) in subsection (a)(1)(B)(ii)--
       (A) by striking subclause (I); and
       (B) by redesignating subclauses (II) and (III) as 
     subclauses (I) and (II), respectively; and
       (2) in subsection (b), by adding at the end the following:
       ``(3) Funding.--
       ``(A) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section not less 
     than $5,000,000 for fiscal year 2013 and each fiscal year 
     thereafter.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subparagraph (A), 
     without further appropriation.
       ``(C) Maintenance of funding.--The funding provided under 
     subparagraph (A) shall supplement (and not supplant) other 
     Federal funding made available to the Secretary to carry out 
     this section.''.

     SEC. 4013. EMERGENCY FOOD ASSISTANCE.

       (a) Purchase of Commodities.--Section 27(a) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended--
       (1) in paragraph (1), by striking ``2008 through 2012'' and 
     inserting ``2012 through 2017'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Amounts.--The Secretary shall use to carry out 
     paragraph (1)--
       ``(A) for fiscal year 2012, $260,250,000; and
       ``(B) for each subsequent fiscal year, the dollar amount of 
     commodities specified in subparagraph (A) adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(u)(4) between June 30, 2012, and June 30 of 
     the immediately preceding fiscal year, and subsequently 
     increased by--
       ``(i) for fiscal year 2013, $28,000,000;
       ``(ii) for fiscal year 2014, $44,000,000;
       ``(iii) for fiscal year 2015, $24,000,000;
       ``(iv) for fiscal year 2016, $18,000,000; and
       ``(v) for fiscal year 2017 and each fiscal year thereafter, 
     $10,000,000.''; and
       (3) by adding at the end the following:
       ``(3) Funds availability.--For purposes of the funds 
     described in this subsection, the Secretary shall--

[[Page S4034]]

       ``(A) make the funds available for 2 fiscal years; and
       ``(B) allow States to carry over unexpended balances to the 
     next fiscal year pursuant to such terms and conditions as are 
     determined by the Secretary.''.
       (b) Emergency Food Program Infrastructure Grants.--Section 
     209(d) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7511a(d)) is amended by striking ``2012'' and inserting 
     ``2017''.

     SEC. 4014. NUTRITION EDUCATION.

       Section 28(b) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2036a(b)) is amended by inserting ``and physical 
     activity'' after ``healthy food choices''.

     SEC. 4015. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

       The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING.

       ``(a) Purpose.--The purpose of this section is to provide 
     the Department of Agriculture with additional resources to 
     prevent trafficking in violation of this Act by strengthening 
     recipient and retail food store program integrity.
       ``(b) Use of Funds.--Additional funds are provided under 
     this section to supplement the retail food store and 
     recipient integrity activities of the Department.
       ``(c) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary to carry out this section not less 
     than $18,500,000 for fiscal year 2013 and each fiscal year 
     thereafter.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Maintenance of funding.--The funding provided under 
     paragraph (1) shall supplement (and not supplant) other 
     Federal funding for programs carried out under this Act.''.

     SEC. 4016. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Section 3 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2012) is amended--
       (1) in subsection (g), by striking ``coupon,'' and 
     inserting ``coupon'';
       (2) in subsection (k)(7), by striking ``or are'' and 
     inserting ``and'';
       (3) by striking subsection (l);
       (4) by redesignating subsections (m) through (t) as 
     subsections (l) through (s), respectively; and
       (5) by inserting after subsection (s) (as so redesignated) 
     the following:
       ``(t) `Supplemental nutrition assistance program' means the 
     program operated pursuant to this Act.''.
       (b) Section 4(a) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2013(a)) is amended in the last sentence by striking 
     ``benefits'' and inserting ``Benefits''.
       (c) Section 5 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2014) is amended--
       (1) in the last sentence of subsection (i)(2)(D), by 
     striking ``section 13(b)(2)'' and inserting ``section 
     13(b)''; and
       (2) in subsection (k)(4)(A), by striking ``paragraph 
     (2)(H)'' and inserting ``paragraph (2)(G)''.
       (d) Section 6(d)(4) of the Food and Nutrition Act of 2008 
     (7 U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii) 
     and (F)(iii) by indenting both clauses appropriately.
       (e) Section 7(h) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2016(h)) is amended by redesignating the second 
     paragraph (12) (relating to interchange fees) as paragraph 
     (13).
       (f) Section 9(a) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2018(a)) is amended by indenting paragraph (3) 
     appropriately.
       (g) Section 12 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2021) is amended--
       (1) in subsection (b)(3)(C), by striking ``civil money 
     penalties'' and inserting ``civil penalties''; and
       (2) in subsection (g)(1), by striking ``(7 U.S.C. 1786)'' 
     and inserting ``(42 U.S.C. 1786)''.
       (h) Section 15(b)(1) of the Food and Nutrition Act of 2008 
     (7 U.S.C. 2024(b)(1)) is amended in the first sentence by 
     striking ``an benefit'' and inserting ``a benefit''.
       (i) Section 16(a) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2025(a)) is amended in the proviso following paragraph 
     (8) by striking ``as amended.''.
       (j) Section 18(e) of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2027(e)) is amended in the first sentence by striking 
     ``sections 7(f)'' and inserting ``section 7(f)''.
       (k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last 
     sentence by striking ``Food benefits'' and inserting 
     ``Benefits''.
       (l) Section 26(f)(3)(C) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking 
     ``subsection'' and inserting ``subsections''.
       (m) Section 27(a)(1) of the Food and Nutrition Act of 2008 
     (7 U.S.C. 2036(a)(1)) is amended by striking ``(Public Law 98 
     8; 7 U.S.C. 612c note)'' and inserting ``(7 U.S.C. 7515)''.
       (n) Section 509 of the Older Americans Act of 1965 (42 
     U.S.C. 3056g) is amended in the section heading by striking 
     ``FOOD STAMP PROGRAMS'' and inserting ``SUPPLEMENTAL 
     NUTRITION ASSISTANCE PROGRAMS''.
       (o) Section 4115(c)(2)(H) of the Food, Conservation, and 
     Energy Act of 2008 (Public Law 110 246; 122 Stat. 1871) is 
     amended by striking ``531'' and inserting ``454''.

              Subtitle B--Commodity Distribution Programs

     SEC. 4101. COMMODITY DISTRIBUTION PROGRAM.

       Section 4(a) of the Agriculture and Consumer Protection Act 
     of 1973 (7 U.S.C. 612c note; Public Law 93 86) is amended in 
     the first sentence by striking ``2012'' and inserting 
     ``2017''.

     SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

       Section 5 of the Agriculture and Consumer Protection Act of 
     1973 (7 U.S.C. 612c note; Public Law 93 86) is amended--
       (1) in paragraphs (1) and (2)(B) of subsection (a), by 
     striking ``2012'' each place it appears and inserting 
     ``2017'';
       (2) in the first sentence of subsection (d)(2), by striking 
     ``2012'' and inserting ``2017'';
       (3) by striking subsection (g) and inserting the following:
       ``(g) Eligibility.--Except as provided in subsection (m), 
     the States shall only provide assistance under the commodity 
     supplemental food program to low-income persons aged 60 and 
     older.''; and
       (4) by adding at the end the following:
       ``(m) Phase-out.--Notwithstanding any other provision of 
     law, an individual who receives assistance under the 
     commodity supplemental food program on the day before the 
     date of enactment of this subsection shall continue to 
     receive that assistance until the date on which the 
     individual is no longer eligible for assistance under the 
     eligibility requirements for the program in effect on the day 
     before the date of enactment of this subsection.''.

     SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL 
                   NUTRITION PROJECTS.

       Section 1114(a)(2)(A) of the Agriculture and Food Act of 
     1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence 
     by striking ``2012'' and inserting ``2017''.

     SEC. 4104. TECHNICAL AND CONFORMING AMENDMENTS.

       Section 3 of the Commodity Distribution Reform Act and WIC 
     Amendments of 1987 (7 U.S.C. 612c note; Public Law 100 237) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) the program established under section 4(b) of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));''; and
       (B) in paragraph (3)(D), by striking ``the Committee on 
     Education and Labor'' and inserting ``the Committee on 
     Education and the Workforce'';
       (2) in subsection (b)(1)(A)(ii), by striking ``section 32 
     of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)'' 
     and inserting ``section 32 of the Act of August 24, 1935 (7 
     U.S.C. 612c)'';
       (3) in subsection (e)(1)(D)(iii), by striking subclause 
     (II) and inserting the following:

       ``(II) the program established under section 4(b) of the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));''; and

       (4) in subsection (k), by striking ``the Committee on 
     Education and Labor'' and inserting ``the Committee on 
     Education and the Workforce''.

                       Subtitle C--Miscellaneous

     SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR 
                   DISTRIBUTION TO SCHOOLS AND SERVICE 
                   INSTITUTIONS.

       Section 10603(b) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 612c 4(b)) is amended by striking 
     ``2012'' and inserting ``2017''.

     SEC. 4202. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       Section 4402(a) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 3007(a)) is amended by striking 
     ``2012'' and inserting ``2017''.

     SEC. 4203. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

       Section 4403 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 3171 note; Public Law 107 171) is repealed.

     SEC. 4204. WHOLE GRAIN PRODUCTS.

       Section 4305 of the Food, Conservation, and Energy Act of 
     2008 (42 U.S.C. 1755a) is amended--
       (1) in subsection (a), by striking ``2005'' and inserting 
     ``2010'';
       (2) in subsection (d), by striking ``2011'' and inserting 
     ``2015'';
       (3) in subsection (e), by striking ``Labor of the House of 
     Representative'' and inserting ``the Workforce of the House 
     of Representatives''; and
       (4) by adding at the end the following:
       ``(f) Funding.--
       ``(1) In general.--On October 1, 2013, out of any funds in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall transfer to the Secretary to carry out this 
     section $10,000,000 for the period of fiscal years 2014 
     through 2015.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Maintenance of funding.--The funding provided under 
     paragraph (1) shall supplement (and not supplant) other 
     Federal funding (including funds made available under section 
     32 of the Act of August 24, 1935 (7 U.S.C. 612c)) for 
     programs carried out under--
       ``(A) the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.), except for section 19 of that Act (42 
     U.S.C. 1769a);

[[Page S4035]]

       ``(B) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
     7501 et seq.); and
       ``(C) section 27 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2036).''.

     SEC. 4205. HUNGER-FREE COMMUNITIES.

       Section 4405 of the Food, Conservation, and Energy Act of 
     2008 (7 U.S.C. 7517) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Eligible entity.--
       ``(A) Collaborative grants.--In subsection (b), the term 
     `eligible entity' means a public food program service 
     provider or nonprofit organization, including an emergency 
     feeding organization, that has collaborated or will 
     collaborate with 1 or more local partner organizations to 
     achieve at least 1 hunger-free communities goal.
       ``(B) Incentive grants.--In subsection (c), the term 
     `eligible entity' means a nonprofit organization (including 
     an emergency feeding organization), an agricultural 
     cooperative, producer network or association, community 
     health organization, public benefit corporation, economic 
     development corporation, farmers' market, community-supported 
     agriculture program, buying club, supplemental nutrition 
     assistance program retail food store, a State, local, or 
     tribal agency, and any other entity the Secretary 
     designates.'';
       (B) by adding at the end the following:
       ``(4) Supplemental nutrition assistance program.--The term 
     `supplemental nutrition assistance program' means the 
     supplemental nutrition assistance program established under 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
       ``(5) Underserved community.--The term `underserved 
     community' has the meaning given the term in section 25 of 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2034).'';
       (2) in subsection (b)(1)(A), by striking ``not more than 50 
     percent of any funds made available under subsection (e)'' 
     and inserting ``funds made available under subsection 
     (d)(1)''; and
       (3) by striking subsections (c), (d), and (e) and inserting 
     the following:
       ``(c) Hunger-free Communities Incentive Grants.--
       ``(1) Authorization.--
       ``(A) In general.--In each of the years specified in 
     subsection (d), the Secretary shall make grants to eligible 
     entities in accordance with paragraph (2).
       ``(B) Federal share.--The Federal share of the cost of 
     carrying out an activity under this subsection shall not 
     exceed 50 percent of the total cost of the activity.
       ``(C) Non-federal share.--
       ``(i) In general.--The non-Federal share of the cost of an 
     activity under this subsection may be provided--

       ``(I) in cash or in-kind contributions as determined by the 
     Secretary, including facilities, equipment, or services; and
       ``(II) by a State or local government or a private source.

       ``(ii) Limitation.--In the case of a for-profit entity, the 
     non-Federal share described in clause (i) shall not include 
     services of an employee, including salaries paid or expenses 
     covered by the employer.
       ``(2) Criteria.--
       ``(A) In general.--For purposes of this subsection, an 
     eligible entity is a governmental agency or nonprofit 
     organization that--
       ``(i) meets the application criteria set forth by the 
     Secretary; and
       ``(ii) proposes a project that, at a minimum--

       ``(I) has the support of the State agency;
       ``(II) would increase the purchase of fruits and vegetables 
     by low-income consumers participating in the supplemental 
     nutrition assistance program by providing incentives at the 
     point of purchase;
       ``(III) agrees to participate in the evaluation described 
     in paragraph (4);
       ``(IV) ensures that the same terms and conditions apply to 
     purchases made by individuals with benefits issued under this 
     Act and incentives provided for in this subsection as apply 
     to purchases made by individuals who are not members of 
     households receiving benefits, such as provided for in 
     section 278.2(b) of title 7, Code of Federal Regulations (or 
     a successor regulation); and
       ``(V) includes effective and efficient technologies for 
     benefit redemption systems that may be replicated in other 
     for States and communities.

       ``(B) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to projects that--
       ``(i) maximize the share of funds used for direct 
     incentives to participants;
       ``(ii) use direct-to-consumer sales marketing;
       ``(iii) demonstrate a track record of designing and 
     implementing successful nutrition incentive programs that 
     connect low-income consumers and agricultural producers;
       ``(iv) provide locally or regionally produced fruits and 
     vegetables;
       ``(v) are located in underserved communities; or
       ``(vi) address other criteria as established by the 
     Secretary.
       ``(3) Applicability.--
       ``(A) In general.--The value of any benefit provided to a 
     participant in any activity funded under this subsection 
     shall not be considered income or resources for any purpose 
     under any Federal, State, or local law.
       ``(B) Prohibition on collection of sales taxes.--Each State 
     shall ensure that no State or local tax is collected on a 
     purchase of food under this subsection.
       ``(C) No limitation on benefits.--A grant made available 
     under this subsection shall not be used to carry out any 
     project that limits the use of benefits under the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or any other 
     Federal nutrition law.
       ``(D) Household allotment.--Assistance provided under this 
     subsection to households receiving benefits under the 
     supplemental nutrition assistance program shall not--
       ``(i) be considered part of the supplemental nutrition 
     assistance program benefits of the household; or
       ``(ii) be used in the collection or disposition of claims 
     under section 13 of the Food and Nutrition Act of 2008 (7 
     U.S.C. 2022).
       ``(4) Evaluation.--
       ``(A) Independent evaluation.--The Secretary shall provide 
     for an independent evaluation of projects selected under this 
     subsection that measures the impact of each project on--
       ``(i) improving the nutrition and health status of 
     participating households receiving incentives under this 
     subsection; and
       ``(ii) increasing fruit and vegetable purchases in 
     participating households.
       ``(B) Requirement.--The independent evaluation under 
     subparagraph (A) shall use rigorous methodologies capable of 
     producing scientifically valid information regarding the 
     effectiveness of a project.
       ``(C) Costs.--The Secretary may use funds not to exceed 10 
     percent of the funding provided to carry out this section to 
     pay costs associated with administering, monitoring, and 
     evaluating each project.
       ``(d) Funding.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out subsection (b) $5,000,000 for 
     each of fiscal years 2013 through 2017.
       ``(2) Mandatory funding.--Of the funds of the Commodity 
     Credit Corporation, the Secretary shall use to carry out 
     subsection (c)--
       ``(A) $15,000,000 for fiscal year 2013;
       ``(B) $20,000,000 for each of fiscal years 2014 through 
     2016; and
       ``(C) $25,000,000 for fiscal year 2017.''.

     SEC. 4206. HEALTHY FOOD FINANCING INITIATIVE.

       (a) In General.--Subtitle D of title II of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.

       ``(a) Purpose.--The purpose of this section is to enhance 
     the authorities of the Secretary to support efforts to 
     provide access to healthy food by establishing an initiative 
     to improve access to healthy foods in underserved areas, to 
     create and preserve quality jobs, and to revitalize low-
     income communities by providing loans and grants to eligible 
     fresh, healthy food retailers to overcome the higher costs 
     and initial barriers to entry in underserved areas.
       ``(b) Definitions.--In this section:
       ``(1) Community development financial institution.--The 
     term `community development financial institution' has the 
     meaning given the term in section 103 of the Community 
     Development Banking and Financial Institutions Act of 1994 
     (12 U.S.C. 4702).
       ``(2) Initiative.--The term `Initiative' means the Healthy 
     Food Financing Initiative established under subsection 
     (c)(1).
       ``(3) National fund manager.--The term `national fund 
     manager' means a community development financial institution 
     that is--
       ``(A) in existence on the date of enactment of this 
     section; and
       ``(B) certified by the Community Development Financial 
     Institution Fund of the Department of Treasury to manage the 
     Initiative for purposes of--
       ``(i) raising private capital;
       ``(ii) providing financial and technical assistance to 
     partnerships; and
       ``(iii) funding eligible projects to attract fresh, healthy 
     food retailers to underserved areas, in accordance with this 
     section.
       ``(4) Partnership.--The term `partnership' means a 
     regional, State, or local public-private partnership that--
       ``(A) is organized to improve access to fresh, healthy 
     foods;
       ``(B) provides financial and technical assistance to 
     eligible projects; and
       ``(C) meets such other criteria as the Secretary may 
     establish.
       ``(5) Perishable food.--The term `perishable food' means a 
     staple food that is fresh, refrigerated, or frozen.
       ``(6) Quality job.--The term `quality job' means a job that 
     provides wages and other benefits comparable to, or better 
     than, similar positions in existing businesses of similar 
     size in similar local economies.
       ``(7) Staple food.--
       ``(A) In general.--The term `staple food' means food that 
     is a basic dietary item.
       ``(B) Inclusions.--The term `staple food' includes--
       ``(i) bread;
       ``(ii) flour;
       ``(iii) fruits;
       ``(iv) vegetables; and
       ``(v) meat.
       ``(c) Initiative.--
       ``(1) Establishment.--The Secretary shall establish an 
     initiative to achieve the purpose described in subsection (a) 
     in accordance with this subsection.
       ``(2) Implementation.--
       ``(A) In general.--
       ``(i) In general.--In carrying out the Initiative, the 
     Secretary shall provide funding

[[Page S4036]]

     to entities with eligible projects, as described in 
     subparagraph (B), subject to the priorities described in 
     subparagraph (C).
       ``(ii) Use of funds.--Funds provided to an entity pursuant 
     to clause (i) shall be used--

       ``(I) to create revolving loan pools of capital or other 
     products to provide loans to finance eligible projects or 
     partnerships;
       ``(II) to provide grants for eligible projects or 
     partnerships;
       ``(III) to provide technical assistance to funded projects 
     and entities seeking Initiative funding; and
       ``(IV) to cover administrative expenses of the national 
     fund manager in an amount not to exceed 10 percent of the 
     Federal funds provided.

       ``(B) Eligible projects.--Subject to the approval of the 
     Secretary, the national fund manager shall establish 
     eligibility criteria for projects under the Initiative, which 
     shall include the existence or planned execution of 
     agreements--
       ``(i) to expand or preserve the availability of staple 
     foods in underserved areas with moderate- and low-income 
     populations by maintaining or increasing the number of retail 
     outlets that offer an assortment of perishable food and 
     staple food items, as determined by the Secretary, in those 
     areas; and
       ``(ii) to accept benefits under the supplemental nutrition 
     assistance program established under the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2011 et seq.).
       ``(C) Priorities.--In carrying out the Initiative, priority 
     shall be given to projects that--
       ``(i) are located in severely distressed low-income 
     communities, as defined by the Community Development 
     Financial Institutions Fund of the Department of Treasury; 
     and
       ``(ii) include 1 or more of the following characteristics:

       ``(I) The project will create or retain quality jobs for 
     low-income residents in the community.
       ``(II) The project supports regional food systems and 
     locally grown foods, to the maximum extent practicable.
       ``(III) In areas served by public transit, the project is 
     accessible by public transit.
       ``(IV) The project involves women- or minority-owned 
     businesses.
       ``(V) The project receives funding from other sources, 
     including other Federal agencies.
       ``(VI) The project otherwise advances the purpose of this 
     section, as determined by the Secretary.

       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $125,000,000, to remain available until expended.''.
       (b) Conforming Amendment.--Section 296(b) of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) 
     (as amended by section 1609(d)) is amended--
       (1) in paragraph (7), by striking ``or'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(9) the authority of the Secretary to establish and carry 
     out the Health Food Financing Initiative under section 
     242.''.

                            TITLE V--CREDIT

  Subtitle A--Farmer Loans, Servicing, and Other Assistance Under the 
              Consolidated Farm and Rural Development Act

     SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSISTANCE 
                   UNDER THE CONSOLIDATED FARM AND RURAL 
                   DEVELOPMENT ACT.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 6001) is amended by inserting after section 3002 
     the following:

      ``Subtitle A--Farmer Loans, Servicing, and Other Assistance

                   ``CHAPTER 1--FARM OWNERSHIP LOANS

     ``SEC. 3101. FARM OWNERSHIP LOANS.

       ``(a) In General.--The Secretary may make or guarantee a 
     farm ownership loan under this chapter to an eligible farmer.
       ``(b) Eligibility.--A farmer shall be eligible under 
     subsection (a) only--
       ``(1) if the farmer, or, in the case of an entity, 1 or 
     more individuals holding a majority interest in the farmer--
       ``(A) is a citizen of the United States; and
       ``(B) in the case of a direct loan, has training or farming 
     experience that the Secretary determines is sufficient to 
     ensure a reasonable prospect of success in the farming 
     operation proposed by the farmer;
       ``(2)(A) in the case of a farmer that is an individual, if 
     the farmer is or proposes to become an owner and operator of 
     a farm that is not larger than a family farm; or
       ``(B) in the case of a lessee-operator of a farm located in 
     the State of Hawaii, if the Secretary determines that--
       ``(i) the farm is not larger than a family farm;
       ``(ii) the farm cannot be acquired in fee simple by the 
     lessee-operator;
       ``(iii) adequate security is provided for the loan with 
     respect to the farm for which the lessee-operator applies 
     under this chapter; and
       ``(iv) there is a reasonable probability of accomplishing 
     the objectives and repayment of the loan;
       ``(3) in the case of a farmer that is a cooperative, 
     corporation, partnership, trust, limited liability company, 
     joint operation, or such other legal entity as the Secretary 
     determines to be appropriate, with respect to the entity and 
     each farm in which the entity has an ownership or operator 
     interest--
       ``(A) if--
       ``(i) a majority interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become 
     owners or operators of a farm that is not larger than a 
     family farm; and
       ``(iii) at least 1 of the individuals is or proposes to 
     become an operator of the farm; or
       ``(B) if--
       ``(i) the entire interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become farm 
     operators; and
       ``(iii) the ownership interest of each individual 
     separately constitutes not larger than a family farm, even if 
     the ownership interests of the individuals collectively 
     constitute larger than a family farm;
       ``(4) in the case of an entity that is, or will become 
     within a reasonable period of time, as determined by the 
     Secretary, only the operator of a family farm, if the 1 or 
     more individuals who are the owners of the family farm own--
       ``(A) a percentage of the family farm that exceeds 50 
     percent; or
       ``(B) such other percentage as the Secretary determines to 
     be appropriate;
       ``(5) in the case of an operator described in paragraph (3) 
     that is owned, in whole or in part, by 1 or more other 
     entities, if each of the individuals that have a direct or 
     indirect ownership interest in such other entities also have 
     a direct ownership interest in the entity applying as an 
     individual; and
       ``(6) if the farmer and each individual that holds a 
     majority interest in the farmer is unable to obtain credit 
     elsewhere.
       ``(c) Direct Loans.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may make a direct loan under this chapter only to a farmer 
     who has participated in business operations of a farm for not 
     less than 3 years (or has other acceptable experience for a 
     period of time determined by the Secretary) and--
       ``(A) is a qualified beginning farmer;
       ``(B) has not received a previous direct farm ownership 
     loan made under this chapter; or
       ``(C) has not received a direct farm ownership loan under 
     this chapter more than 10 years before the date on which the 
     new loan would be made.
       ``(2) Youth loans.--The operation of an enterprise by a 
     youth under section 3201(d) shall not be considered the 
     operation of a farm for purposes of paragraph (1).

     ``SEC. 3102. PURPOSES OF LOANS.

       ``(a) Allowed Purposes.--
       ``(1) Direct loans.--A farmer may use a direct loan made 
     under this chapter only--
       ``(A) to acquire or enlarge a farm;
       ``(B) to make capital improvements to a farm;
       ``(C) to pay loan closing costs related to acquiring, 
     enlarging, or improving a farm;
       ``(D) to pay for activities to promote soil and water 
     conservation and protection described in section 3103 on a 
     farm; or
       ``(E) to refinance a temporary bridge loan made by a 
     commercial or cooperative lender to a farmer for the 
     acquisition of land for a farm, if--
       ``(i) the Secretary approved an application for a direct 
     farm ownership loan to the farmer for acquisition of the 
     land; and
       ``(ii) funds for direct farm ownership loans under section 
     3201(a) were not available at the time at which the 
     application was approved.
       ``(2) Guaranteed loans.--A farmer may use a loan guaranteed 
     under this chapter only--
       ``(A) to acquire or enlarge a farm;
       ``(B) to make capital improvements to a farm;
       ``(C) to pay loan closing costs related to acquiring, 
     enlarging, or improving a farm;
       ``(D) to pay for activities to promote soil and water 
     conservation and protection described in section 3103 on a 
     farm; or
       ``(E) to refinance indebtedness.
       ``(b) Preferences.--In making or guaranteeing a loan under 
     this chapter for purchase of a farm, the Secretary shall give 
     preference to a person who--
       ``(1) has a dependent family;
       ``(2) to the extent practicable, is able to make an initial 
     down payment on the farm; or
       ``(3) is an owner of livestock or farm equipment that is 
     necessary to successfully carry out farming operations.
       ``(c) Hazard Insurance Requirement.--The Secretary may not 
     make a loan to a farmer under this chapter unless the farmer 
     has, or agrees to obtain, hazard insurance on any real 
     property to be acquired or improved with the loan.

     ``SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

       ``(a) In General.--The Secretary may make or guarantee 
     qualified conservation loans to eligible borrowers under this 
     section.
       ``(b) Definitions.--In this section:
       ``(1) Conservation plan.--The term `conservation plan' 
     means a plan, approved by the Secretary, that, for a farming 
     operation, identifies the conservation activities that will 
     be addressed with loan funds provided under this section, 
     including--
       ``(A) the installation of conservation structures to 
     address soil, water, and related resources;
       ``(B) the establishment of forest cover for sustained yield 
     timber management, erosion control, or shelter belt purposes;

[[Page S4037]]

       ``(C) the installation of water conservation measures;
       ``(D) the installation of waste management systems;
       ``(E) the establishment or improvement of permanent 
     pasture;
       ``(F) compliance with section 1212 of the Food Security Act 
     of 1985 (16 U.S.C. 3812); and
       ``(G) other purposes consistent with the plan, including 
     the adoption of any other emerging or existing conservation 
     practices, techniques, or technologies approved by the 
     Secretary.
       ``(2) Qualified conservation loan.--The term `qualified 
     conservation loan' means a loan, the proceeds of which are 
     used to cover the costs to the borrower of carrying out a 
     qualified conservation project.
       ``(3) Qualified conservation project.--The term `qualified 
     conservation project' means conservation measures that 
     address provisions of a conservation plan of the eligible 
     borrower.
       ``(c) Eligibility.--
       ``(1) In general.--The Secretary may make or guarantee 
     loans to farmers.
       ``(2) Requirements.--To be eligible for a loan under this 
     section, applicants shall meet the citizenship and training 
     and experience requirements of section 3101(b).
       ``(d) Priority.--In making or guaranteeing loans under this 
     section, the Secretary shall give priority to--
       ``(1) qualified beginning farmers and socially 
     disadvantaged farmers;
       ``(2) owners or tenants who use the loans to convert to 
     sustainable or organic agricultural production systems; and
       ``(3) producers who use the loans to build conservation 
     structures or establish conservation practices to comply with 
     section 1212 of the Food Security Act of 1985 (16 U.S.C. 
     3812).
       ``(e) Limitations Applicable to Loan Guarantees.--The 
     portion of a loan that the Secretary may guarantee under this 
     section shall not exceed 75 percent of the principal amount 
     of the loan.
       ``(f) Administrative Provisions.--The Secretary shall 
     ensure, to the maximum extent practicable, that loans made or 
     guaranteed under this section are distributed across diverse 
     geographic regions.
       ``(g) Credit Eligibility.--The provisions of paragraphs (1) 
     and (3) of section 3406(a) shall not apply to loans made or 
     guaranteed under this section.
       ``(h) Authorization of Appropriations.--For each of fiscal 
     years 2012 through 2017, there are authorized to be 
     appropriated to the Secretary such sums as are necessary to 
     carry out this section.

     ``SEC. 3104. LOAN MAXIMUMS.

       ``(a) Maximum.--
       ``(1) In general.--The Secretary shall make or guarantee no 
     loan under sections 3101, 3102, 3103, 3106, and 3107 that 
     would cause the unpaid indebtedness under those sections of 
     any 1 borrower to exceed the lesser of--
       ``(A) the value of the farm or other security, or
       ``(B)(i) in the case of a loan made by the Secretary, 
     $300,000; or
       ``(ii) in the case of a loan guaranteed by the Secretary, 
     $700,000 (as modified under paragraph (2)).
       ``(2) Modification.--The amount specified in paragraph 
     (1)(B)(ii) shall be--
       ``(A) increased, beginning with fiscal year 2000, by the 
     inflation percentage applicable to the fiscal year in which 
     the loan is guaranteed; and
       ``(B) reduced by the amount of any unpaid indebtedness of 
     the borrower on loans under chapter 2 that are guaranteed by 
     the Secretary.
       ``(b) Determination of Value.--In determining the value of 
     the farm, the Secretary shall consider appraisals made by 
     competent appraisers under rules established by the 
     Secretary.
       ``(c) Inflation Percentage.--For purposes of this section, 
     the inflation percentage applicable to a fiscal year is the 
     percentage (if any) by which--
       ``(1) the average of the Prices Paid By Farmers Index (as 
     compiled by the National Agricultural Statistics Service of 
     the Department) for the 12-month period ending on August 31 
     of the immediately preceding fiscal year; exceeds
       ``(2) the average of that index (as so defined) for the 12-
     month period ending on August 31, 1996.

     ``SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWNERSHIP LOANS.

       ``(a) Period for Repayment.--The period for repayment of a 
     loan under this chapter shall not exceed 40 years.
       ``(b) Interest Rates.--
       ``(1) In general.--Except as otherwise provided in this 
     title, the interest rate on a loan under this chapter shall 
     be determined by the Secretary at a rate--
       ``(A) not to exceed the sum obtained by adding--
       ``(i) the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the average maturity of the 
     loan; and
       ``(ii) an amount not to exceed 1 percent, as determined by 
     the Secretary; and
       ``(B) adjusted to the nearest \1/8\ of 1 percent.
       ``(2) Low income farm ownership loans.--Except as provided 
     in paragraph (3), the interest rate on a loan (other than a 
     guaranteed loan) under section 3106 shall be determined by 
     the Secretary at a rate that is--
       ``(A) not greater than the sum obtained by adding--
       ``(i) an amount that does not exceed \1/2\ of the current 
     average market yield on outstanding marketable obligations of 
     the United States with maturities of 5 years; and
       ``(ii) an amount not to exceed 1 percent per year, as the 
     Secretary determines is appropriate; and
       ``(B) not less than 5 percent per year.
       ``(3) Joint financing arrangement.--If a direct farm 
     ownership loan is made under this chapter as part of a joint 
     financing arrangement and the amount of the direct farm 
     ownership loan does not exceed 50 percent of the total 
     principal amount financed under the arrangement, the interest 
     rate on the direct farm ownership loan shall be at least 4 
     percent annually.
       ``(4) Guaranteed loans.--The interest rate on a loan made 
     under this chapter as a guaranteed loan shall be such rate as 
     may be agreed on by the borrower and the lender, but not in 
     excess of any rate determined by the Secretary.
       ``(c) Payment of Charges.--A borrower of a loan made or 
     guaranteed under this chapter shall pay such fees and other 
     charges as the Secretary may require, and prepay to the 
     Secretary such taxes and insurance as the Secretary may 
     require, on such terms and conditions as the Secretary may 
     prescribe.
       ``(d) Security.--
       ``(1) In general.--The Secretary shall take as security for 
     an obligation entered into in connection with a loan, a 
     mortgage on a farm with respect to which the loan is made or 
     such other security as the Secretary may require.
       ``(2) Liens to united states.--An instrument for security 
     under paragraph (1) may constitute a lien running to the 
     United States notwithstanding the fact that the note for the 
     security may be held by a lender other than the United 
     States.
       ``(3) Multiple loans.--A borrower may use the same 
     collateral to secure 2 or more loans made or guaranteed under 
     this chapter, except that the outstanding amount of the loans 
     may not exceed the total value of the collateral.
       ``(e) Mineral Rights as Collateral.--
       ``(1) In general.--In the case of a farm ownership loan 
     made after December 23, 1985, unless appraised values of the 
     rights to oil, gas, or other minerals are specifically 
     included as part of the appraised value of collateral 
     securing the loan, the rights to oil, gas, or other minerals 
     located under the property shall not be considered part of 
     the collateral securing the loan.
       ``(2) Compensatory payments.--Nothing in this subsection 
     prevents the inclusion of, as part of the collateral securing 
     the loan, any payment or other compensation the borrower may 
     receive for damages to the surface of the collateral real 
     estate resulting from the exploration for or recovery of 
     minerals.
       ``(f) Additional Collateral.--The Secretary may not--
       ``(1) require any borrower to provide additional collateral 
     to secure a farmer program loan made or guaranteed under this 
     subtitle, if the borrower is current in the payment of 
     principal and interest on the loan; or
       ``(2) bring any action to foreclose, or otherwise 
     liquidate, the loan as a result of the failure of a borrower 
     to provide additional collateral to secure the loan, if the 
     borrower was current in the payment of principal and interest 
     on the loan at the time the additional collateral was 
     requested.

     ``SEC. 3106. LIMITED-RESOURCE LOANS.

       ``(a) In General.--The Secretary may make or guarantee a 
     limited-resource loan for any of the purposes specified in 
     sections 3102(a) or 3103(a) to a farmer in the United States 
     who--
       ``(1) in the case of an entity, all members, stockholders, 
     or partners are eligible under section 3101(b);
       ``(2) has a low income; and
       ``(3) demonstrates a need to maximize the income of the 
     farmer from farming operations.
       ``(b) Installments.--A loan made or guaranteed under this 
     section shall be repayable in such installments as the 
     Secretary determines will provide for reduced payments during 
     the initial repayment period of the loan and larger payments 
     during the remainder of the repayment period of the loan.
       ``(c) Interest Rates.--Except as provided in section 
     3105(b)(3) and in section 3204(b)(3), the interest rate on 
     loans (other than guaranteed loans) under this section shall 
     not be--
       ``(1) greater than the sum obtained by adding--
       ``(A) an amount that does not exceed \1/2\ of the current 
     average market yield on outstanding marketable obligations of 
     the United States with maturities of 5 years; and
       ``(B) an amount not exceeding 1 percent per year, as the 
     Secretary determines is appropriate; or
       ``(2) less than 5 percent per year.

     ``SEC. 3107. DOWNPAYMENT LOAN PROGRAM.

       ``(a) In General.--
       ``(1) Establishment.--Notwithstanding any other provision 
     of this chapter, the Secretary shall establish, under the 
     farm ownership loan program established under this chapter, a 
     program under which loans shall be made under this section to 
     a qualified beginning farmer or a socially disadvantaged 
     farmer for a downpayment on a farm ownership loan.
       ``(2) Coordination.--The Secretary shall be the primary 
     coordinator of credit supervision for the downpayment loan 
     program established under this section, in consultation

[[Page S4038]]

     with a commercial or cooperative lender and, if applicable, a 
     contracting credit counseling service selected under section 
     3420(c).
       ``(b) Loan Terms.--
       ``(1) Principal.--Each loan made under this section shall 
     be in an amount that does not exceed 45 percent of the lesser 
     of--
       ``(A) the purchase price of the farm to be acquired;
       ``(B) the appraised value of the farm to be acquired; or
       ``(C) $667,000.
       ``(2) Interest rate.--The interest rate on any loan made by 
     the Secretary under this section shall be a rate equal to the 
     greater of--
       ``(A) the difference between--
       ``(i) 4 percent; and
       ``(ii) the interest rate for farm ownership loans under 
     this chapter; or
       ``(B) 1.5 percent.
       ``(3) Duration.--Each loan under this section shall be made 
     for a period of 20 years or less, at the option of the 
     borrower.
       ``(4) Repayment.--Each borrower of a loan under this 
     section shall repay the loan to the Secretary in equal annual 
     installments.
       ``(5) Nature of retained security interest.--The Secretary 
     shall retain an interest in each farm acquired with a loan 
     made under this section that shall--
       ``(A) be secured by the farm;
       ``(B) be junior only to such interests in the farm as may 
     be conveyed at the time of acquisition to the person 
     (including a lender) from whom the borrower obtained a loan 
     used to acquire the farm; and
       ``(C) require the borrower to obtain the permission of the 
     Secretary before the borrower may grant an additional 
     security interest in the farm.
       ``(c) Limitations.--
       ``(1) Borrowers required to make minimum down payment.--The 
     Secretary shall not make a loan under this section to any 
     borrower with respect to a farm if the contribution of the 
     borrower to the down payment on the farm will be less than 5 
     percent of the purchase price of the farm.
       ``(2) Prohibited types of financing.--The Secretary shall 
     not make a loan under this section with respect to a farm if 
     the farm is to be acquired with other financing that contains 
     any of the following conditions:
       ``(A) The financing is to be amortized over a period of 
     less than 30 years.
       ``(B) A balloon payment will be due on the financing during 
     the 20-year period beginning on the date on which the loan is 
     to be made by the Secretary.
       ``(d) Administration.--In carrying out this section, the 
     Secretary shall, to the maximum extent practicable--
       ``(1) facilitate the transfer of farms from retiring 
     farmers to persons eligible for insured loans under this 
     subtitle;
       ``(2) make efforts to widely publicize the availability of 
     loans under this section among--
       ``(A) potentially eligible recipients of the loans;
       ``(B) retiring farmers; and
       ``(C) applicants for farm ownership loans under this 
     chapter;
       ``(3) encourage retiring farmers to assist in the sale of 
     their farms to qualified beginning farmers and socially 
     disadvantaged farmers providing seller financing;
       ``(4) coordinate the loan program established by this 
     section with State programs that provide farm ownership or 
     operating loans for beginning farmers or socially 
     disadvantaged farmers; and
       ``(5) establish annual performance goals to promote the use 
     of the down payment loan program and other joint financing 
     arrangements as the preferred choice for direct real estate 
     loans made by any lender to a qualified beginning farmer or 
     socially disadvantaged farmer.

     ``SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVANTAGED 
                   FARMER CONTRACT LAND SALES PROGRAM.

       ``(a) In General.--The Secretary shall, in accordance with 
     this section, guarantee a loan made by a private seller of a 
     farm to a qualified beginning farmer or socially 
     disadvantaged farmer on a contract land sales basis.
       ``(b) Eligibility.--To be eligible for a loan guarantee 
     under subsection (a)--
       ``(1) the qualified beginning farmer or socially 
     disadvantaged farmer shall--
       ``(A) on the date the contract land sale that is subject of 
     the loan is complete, own and operate the farm that is the 
     subject of the contract land sale;
       ``(B) have a credit history that--
       ``(i) includes a record of satisfactory debt repayment, as 
     determined by the Secretary; and
       ``(ii) is acceptable to the Secretary; and
       ``(C) demonstrate to the Secretary that the farmer is 
     unable to obtain sufficient credit without a guarantee to 
     finance any actual need of the farmer at a reasonable rate or 
     term; and
       ``(2) the loan shall meet applicable underwriting criteria, 
     as determined by the Secretary.
       ``(c) Limitations.--The Secretary shall not provide a loan 
     guarantee under subsection (a) if--
       ``(1) the contribution of the qualified beginning farmer or 
     socially disadvantaged farmer to the down payment for the 
     farm that is the subject of the contract land sale would be 
     less than 5 percent of the purchase price of the farm; or
       ``(2) the purchase price or the appraisal value of the farm 
     that is the subject of the contract land sale is greater than 
     $500,000.
       ``(d) Period of Guarantee.--A loan guarantee under this 
     section shall be in effect for the 10-year period beginning 
     on the date on which the guarantee is provided.
       ``(e) Guarantee Plan.--
       ``(1) Selection of plan.--A private seller of a farm who 
     makes a loan guaranteed by the Secretary under subsection (a) 
     may select--
       ``(A) a prompt payment guarantee plan, which shall cover--
       ``(i) 3 amortized annual installments; or
       ``(ii) an amount equal to 3 annual installments (including 
     an amount equal to the total cost of any tax and insurance 
     incurred during the period covered by the annual 
     installments); or
       ``(B) a standard guarantee plan, which shall cover an 
     amount equal to 90 percent of the outstanding principal of 
     the loan.
       ``(2) Eligibility for standard guarantee plan.--To be 
     eligible for a standard guarantee plan referred to in 
     paragraph (1)(B), a private seller shall--
       ``(A) secure a commercial lending institution or similar 
     entity, as determined by the Secretary, to serve as an escrow 
     agent; or
       ``(B) in cooperation with the farmer, use an appropriate 
     alternate arrangement, as determined by the Secretary.

                      ``CHAPTER 2--OPERATING LOANS

     ``SEC. 3201. OPERATING LOANS.

       ``(a) In General.--The Secretary may make or guarantee an 
     operating loan under this chapter to an eligible farmer in 
     the United States.
       ``(b) Eligibility.--A farmer shall be eligible under 
     subsection (a) only--
       ``(1) if the farmer, or an individual holding a majority 
     interest in the farmer--
       ``(A) is a citizen of the United States; and
       ``(B) has training or farming experience that the Secretary 
     determines is sufficient to ensure a reasonable prospect of 
     success in the farming operation proposed by the farmer;
       ``(2) in the case of a farmer that is an individual, if the 
     farmer is or proposes to become an operator of a farm that is 
     not larger than a family farm;
       ``(3) in the case of a farmer that is a cooperative, 
     corporation, partnership, trust, limited liability company, 
     joint operation, or other such legal entity as the Secretary 
     determines to be appropriate, with respect to the entity and 
     each farm in which the entity has an ownership or operator 
     interest--
       ``(A) if--
       ``(i) a majority interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become 
     owners or operators of a farm that is not larger than a 
     family farm; and
       ``(iii) at least 1 of the individuals is or proposes to 
     become an operator of the farm; or
       ``(B) if--
       ``(i) the entire interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become farm 
     operators; and
       ``(iii) the ownership interest of each individual 
     separately constitutes not larger than a family farm, even if 
     the ownership interests of the individuals collectively 
     constitute larger than a family farm;
       ``(4) in the case of an operator described in paragraph (3) 
     that is owned, in whole or in part by 1 or more other 
     entities, if not less than 75 percent of the ownership 
     interests of each other entity is owned directly or 
     indirectly by 1 or more individuals who own the family farm; 
     and
       ``(5) if the farmer and each individual that holds a 
     majority interest in the farmer is unable to obtain credit 
     elsewhere.
       ``(c) Direct Loans.--
       ``(1) In general.--Subject to paragraph (3), the Secretary 
     may make a direct loan under this chapter only to a farmer 
     who--
       ``(A) is a qualified beginning farmer;
       ``(B) has not received a previous direct operating loan 
     made under this chapter; or
       ``(C) has not received a direct operating loan made under 
     this chapter for a total of 7 years, less 1 year for every 3 
     consecutive years the farmer did not receive a direct 
     operating loan after the year in which the borrower initially 
     received a direct operating loan under this chapter, as 
     determined by the Secretary.
       ``(2) Youth loans.--In this subsection, the term `direct 
     operating loan' shall not include a loan made to a youth 
     under subsection (d).
       ``(3) Transition rule.--If, as of April 4, 1996, a farmer 
     has received a direct operating loan under this chapter 
     during each of 4 or more previous years, the borrower shall 
     be eligible to receive a direct operating loan under this 
     chapter during 3 additional years after April 4, 1996.
       ``(4) Waivers.--
       ``(A) Farm operations on tribal land.--The Secretary shall 
     waive the limitation under paragraph (1)(C) or (3) for a 
     direct loan made under this chapter to a farmer whose farm 
     land is subject to the jurisdiction of an Indian tribe and 
     whose loan is secured by 1 or more security instruments that 
     are subject to the jurisdiction of an Indian tribe if the 
     Secretary determines that commercial credit is not generally 
     available for such farm operations.
       ``(B) Other farm operations.--On a case-by-case 
     determination not subject to administrative appeal, the 
     Secretary may grant a borrower a waiver, 1 time only for a 
     period of 2 years, of the limitation under paragraph (1)(C) 
     or (3) for a direct operating loan if the

[[Page S4039]]

     borrower demonstrates to the satisfaction of the Secretary 
     that--
       ``(i) the borrower has a viable farm operation;
       ``(ii) the borrower applied for commercial credit from at 
     least 2 commercial lenders;
       ``(iii) the borrower was unable to obtain a commercial loan 
     (including a loan guaranteed by the Secretary); and
       ``(iv) the borrower successfully has completed, or will 
     complete within 1 year, borrower training under section 3419 
     (from which requirement the Secretary shall not grant a 
     waiver under section 3419(f)).
       ``(d) Youth Loans.--
       ``(1) In general.--Notwithstanding subsection (b), except 
     for citizenship and credit requirements, a loan may be made 
     under this chapter to a youth who is a rural resident to 
     enable the youth to operate an enterprise in connection with 
     the participation in a youth organization, as determined by 
     the Secretary.
       ``(2) Full personal liability.--A youth receiving a loan 
     under this subsection who executes a promissory note for the 
     loan shall incur full personal liability for the indebtedness 
     evidenced by the note, in accordance with the terms of the 
     note, free of any disability of minority.
       ``(3) Cosigner.--The Secretary may accept the personal 
     liability of a cosigner of a promissory note for a loan under 
     this subsection, in addition to the personal liability of the 
     youth borrower.
       ``(4) Youth enterprises not farming.--The operation of an 
     enterprise by a youth under this subsection shall not be 
     considered the operation of a farm under this subtitle.

     ``SEC. 3202. PURPOSES OF LOANS.

       ``(a) Direct Loans.--A direct loan may be made under this 
     chapter only--
       ``(1) to pay the costs incident to reorganizing a farm for 
     more profitable operation;
       ``(2) to purchase livestock, poultry, or farm equipment;
       ``(3) to purchase feed, seed, fertilizer, insecticide, or 
     farm supplies, or to meet other essential farm operating 
     expenses, including cash rent;
       ``(4) to finance land or water development, use, or 
     conservation;
       ``(5) to pay loan closing costs;
       ``(6) to assist a farmer in changing the equipment, 
     facilities, or methods of operation of a farm to comply with 
     a standard promulgated under section 6 of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 655) or a standard 
     adopted by a State under a plan approved under section 18 of 
     that Act (29 U.S.C. 667), if the Secretary determines that 
     without assistance under this paragraph the farmer is likely 
     to suffer substantial economic injury in complying with the 
     standard;
       ``(7) to train a limited-resource borrower receiving a loan 
     under section 3106 in maintaining records of farming 
     operations;
       ``(8) to train a borrower under section 3419;
       ``(9) to refinance the indebtedness of a borrower, if the 
     borrower--
       ``(A) has refinanced a loan under this chapter not more 
     than 4 times previously; and
       ``(B)(i) is a direct loan borrower under this title at the 
     time of the refinancing and has suffered a qualifying loss 
     because of a natural or major disaster or emergency; or
       ``(ii) is refinancing a debt obtained from a creditor other 
     than the Secretary; or
       ``(10) to provide other farm or home needs, including 
     family subsistence.
       ``(b) Guaranteed Loans.--A loan may be guaranteed under 
     this chapter only--
       ``(1) to pay the costs incident to reorganizing a farm for 
     more profitable operation;
       ``(2) to purchase livestock, poultry, or farm equipment;
       ``(3) to purchase feed, seed, fertilizer, insecticide, or 
     farm supplies, or to meet other essential farm operating 
     expenses, including cash rent;
       ``(4) to finance land or water development, use, or 
     conservation;
       ``(5) to refinance indebtedness;
       ``(6) to pay loan closing costs;
       ``(7) to assist a farmer in changing the equipment, 
     facilities, or methods of operation of a farm to comply with 
     a standard promulgated under section 6 of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 655) or a standard 
     adopted by a State under a plan approved under section 18 of 
     that Act (29 U.S.C. 667), if the Secretary determines that 
     without assistance under this paragraph the farmer is likely 
     to suffer substantial economic injury due to compliance with 
     the standard;
       ``(8) to train a borrower under section 3419; or
       ``(9) to provide other farm or home needs, including family 
     subsistence.
       ``(c) Hazard Insurance Requirement.--The Secretary may not 
     make a loan to a farmer under this chapter unless the farmer 
     has, or agrees to obtain, hazard insurance on the property to 
     be acquired with the loan.
       ``(d) Private Reserve.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, the Secretary may reserve a portion of any loan 
     made under this chapter to be placed in an unsupervised bank 
     account that may be used at the discretion of the borrower 
     for the basic family needs of the borrower and the immediate 
     family of the borrower.
       ``(2) Limit on size of the reserve.--The size of the 
     reserve shall not exceed the lesser of--
       ``(A) 10 percent of the loan;
       ``(B) $5,000; or
       ``(C) the amount needed to provide for the basic family 
     needs of the borrower and the immediate family of the 
     borrower for 3 calendar months.

     ``SEC. 3203. RESTRICTIONS ON LOANS.

       ``(a) Requirements.--
       ``(1) In general.--The Secretary may not make or guarantee 
     a loan under this chapter--
       ``(A) that would cause the total principal indebtedness 
     outstanding at any 1 time for loans made under this chapter 
     to any 1 borrower to exceed--
       ``(i)(I) in the case of a loan made by the Secretary, 
     $300,000; or
       ``(II) in the case of a loan guaranteed by the Secretary, 
     $700,000 (as modified under paragraph (2)); or
       ``(B) for the purchasing or leasing of land other than for 
     cash rent, or for carrying on a land leasing or land 
     purchasing program.
       ``(2) Modification.--The amount specified in paragraph 
     (1)(A)(ii) shall be--
       ``(A) increased, beginning with fiscal year 2000, by the 
     inflation percentage applicable to the fiscal year in which 
     the loan is guaranteed; and
       ``(B) reduced by the unpaid indebtedness of the borrower on 
     loans under sections specified in section 3104 that are 
     guaranteed by the Secretary.
       ``(b) Inflation Percentage.--For purposes of this section, 
     the inflation percentage applicable to a fiscal year is the 
     percentage (if any) by which--
       ``(1) the average of the Prices Paid By Farmers Index (as 
     compiled by the National Agricultural Statistics Service of 
     the Department) for the 12-month period ending on August 31 
     of the immediately preceding fiscal year; exceeds
       ``(2) the average of that index (as so defined) for the 12-
     month period ending on August 31, 1996.

     ``SEC. 3204. TERMS OF LOANS.

       ``(a) Personal Liability.--A borrower of a loan made under 
     this chapter shall secure the loan with the full personal 
     liability of the borrower and such other security as the 
     Secretary may prescribe.
       ``(b) Interest Rates.--
       ``(1) Maximum rate.--
       ``(A) In general.--Except as provided in paragraphs (2) and 
     (3), the interest rate on a loan made under this chapter 
     (other than a guaranteed loan) shall be determined by the 
     Secretary at a rate not to exceed the sum obtained by 
     adding--
       ``(i) the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the average maturity of the 
     loan; and
       ``(ii) an additional charge not to exceed 1 percent, as 
     determined by the Secretary.
       ``(B) Adjustment.--The sum obtained under subparagraph (A) 
     shall be adjusted to the nearest \1/8\ of 1 percent.
       ``(2) Guaranteed loan.--The interest rate on a guaranteed 
     loan made under this chapter shall be such rate as may be 
     agreed on by the borrower and the lender, but may not exceed 
     any rate prescribed by the Secretary.
       ``(3) Low income loan.--The interest rate on a direct loan 
     made under this chapter to a low-income, limited-resource 
     borrower shall be determined by the Secretary at a rate that 
     is not--
       ``(A) greater than the sum obtained by adding--
       ``(i) an amount that does not exceed \1/2\ of the current 
     average market yield on outstanding marketable obligations of 
     the United States with a maturity of 5 years; and
       ``(ii) an amount not to exceed 1 percent per year, as the 
     Secretary determines is appropriate; or
       ``(B) less than 5 percent per year.
       ``(c) Period for Repayment.--The period for repayment of a 
     loan made under this chapter may not exceed 7 years.
       ``(d) Line-of-credit Loans.--
       ``(1) In general.--A loan made or guaranteed by the 
     Secretary under this chapter may be in the form of a line-of-
     credit loan.
       ``(2) Term.--A line-of-credit loan under paragraph (1) 
     shall terminate not later than 5 years after the date that 
     the loan is made or guaranteed.
       ``(3) Eligibility.--For purposes of determining eligibility 
     for an operating loan under this chapter, each year during 
     which a farmer takes an advance or draws on a line-of-credit 
     loan the farmer shall be considered as having received an 
     operating loan for 1 year.
       ``(4) Termination of delinquent loans.--If a borrower does 
     not pay an installment on a line-of-credit loan on schedule, 
     the borrower may not take an advance or draw on the line-of-
     credit, unless the Secretary determines that--
       ``(A) the failure of the borrower to pay on schedule was 
     due to unusual conditions that the borrower could not 
     control; and
       ``(B) the borrower will reduce the line-of-credit balance 
     to the scheduled level at the end of--
       ``(i) the production cycle; or
       ``(ii) the marketing of the agricultural products of the 
     borrower.
       ``(5) Agricultural commodities.--A line-of-credit loan may 
     be used to finance the production or marketing of an 
     agricultural commodity that is eligible for a price support 
     program of the Department.

                      ``CHAPTER 3--EMERGENCY LOANS

     ``SEC. 3301. EMERGENCY LOANS.

       ``(a) In General.--The Secretary shall make or guarantee an 
     emergency loan under

[[Page S4040]]

     this chapter to an eligible farmer only to the extent and in 
     such amounts as provided in advance in appropriation Acts.
       ``(b) Eligibility.--An established farmer shall be eligible 
     under subsection (a) only--
       ``(1) if the farmer or an individual holding a majority 
     interest in the farmer--
       ``(A) is a citizen of the United States; and
       ``(B) has experience and resources that the Secretary 
     determines are sufficient to ensure a reasonable prospect of 
     success in the farming operation proposed by the farmer;
       ``(2) in the case of a farmer that is an individual, if the 
     farmer is--
       ``(A) in the case of a loan for a purpose under chapter 1, 
     an owner, operator, or lessee-operator described in section 
     3101(b)(2); and
       ``(B) in the case of a loan for a purpose under chapter 2, 
     an operator of a farm that is not larger than a family farm;
       ``(3) in the case of a farmer that is a cooperative, 
     corporation, partnership, trust, limited liability company, 
     joint operation, or such other legal entity as the Secretary 
     determines to be appropriate, with respect to the entity and 
     each farm in which the entity has an ownership or operator 
     interest--
       ``(A) if--
       ``(i) a majority interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become 
     owners or operators of a farm that is not larger than a 
     family farm; and
       ``(iii) at least 1 of the individuals is or proposes to 
     become an operator of the farm; or
       ``(B) if--
       ``(i) the entire interest is held by individuals who are 
     related by blood or marriage, as defined by the Secretary;
       ``(ii) all of the individuals are or propose to become farm 
     operators; and
       ``(iii) the ownership interest of each individual 
     separately constitutes not larger than a family farm, even if 
     the ownership interests of the individuals collectively 
     constitute larger than a family farm;
       ``(4) if the entity is owned, in whole or in part, by 1 or 
     more other entities and each individual who is an owner of 
     the family farm involved has a direct or indirect ownership 
     interest in each of the other entities;
       ``(5) if the farmer and any individual that holds a 
     majority interest in the farmer is unable to obtain credit 
     elsewhere; and
       ``(6)(A) if the Secretary finds that the operations of the 
     farmer have been substantially affected by--
       ``(i) a natural or major disaster or emergency designated 
     by the President under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.); or
       ``(ii) a quarantine imposed by the Secretary under the 
     Plant Protection Act (7 U.S.C. 7701 et seq.) or the Animal 
     Health Protection Act (7 U.S.C. 8301 et seq.); or
       ``(B) if the farmer conducts farming operations in a county 
     or a county contiguous to a county in which the Secretary has 
     found that farming operations have been substantially 
     affected by a natural or major disaster or emergency.
       ``(c) Time for Accepting an Application.--The Secretary 
     shall accept an application for a loan under this chapter 
     from a farmer at any time during the 8-month period beginning 
     on the date that--
       ``(1) the Secretary determines that farming operations of 
     the farmer have been substantially affected by--
       ``(A) a quarantine imposed by the Secretary under the Plant 
     Protection Act (7 U.S.C. 7701 et seq.) or the Animal Health 
     Protection Act (7 U.S.C. 8301 et seq.); or
       ``(B) a natural disaster; or
       ``(2) the President makes a major disaster or emergency 
     designation with respect to the affected county of the farmer 
     referred to in subsection (b)(5)(B).
       ``(d) Hazard Insurance Requirement.--The Secretary may not 
     make a loan to a farmer under this chapter to cover a 
     property loss unless the farmer had hazard insurance that 
     insured the property at the time of the loss.
       ``(e) Family Farm.--The Secretary shall conduct the loan 
     program under this chapter in a manner that will foster and 
     encourage the family farm system of agriculture, consistent 
     with the reaffirmation of policy and declaration of the 
     intent of Congress contained in section 102(a) of the Food 
     and Agriculture Act of 1977 (7 U.S.C. 2266(a)).

     ``SEC. 3302. PURPOSES OF LOANS.

       ``Subject to the limitations on the amounts of loans 
     provided in section 3303(a), a loan may be made or guaranteed 
     under this chapter for--
       ``(1) any purpose authorized for a loan under chapter 1 or 
     2; and
       ``(2) crop or livestock purposes that are--
       ``(A) necessitated by a quarantine, natural disaster, major 
     disaster, or emergency; and
       ``(B) considered desirable by the farmer.

     ``SEC. 3303. TERMS OF LOANS.

       ``(a) Maximum Amount of Loan.--The Secretary may not make 
     or guarantee a loan under this chapter to a borrower who has 
     suffered a loss in an amount that--
       ``(1) exceeds the actual loss caused by a disaster; or
       ``(2) would cause the total indebtedness of the borrower 
     under this chapter to exceed $500,000.
       ``(b) Interest Rates.--Any portion of a loan under this 
     chapter up to the amount of the actual loss suffered by a 
     farmer caused by a disaster shall be at a rate prescribed by 
     the Secretary, but not in excess of 8 percent per annum.
       ``(c) Interest Subsidies for Guaranteed Loans.--In the case 
     of a guaranteed loan under this chapter, the Secretary may 
     pay an interest subsidy to the lender for any portion of the 
     loan up to the amount of the actual loss suffered by a farmer 
     caused by a disaster.
       ``(d) Time for Repayment.--
       ``(1) In general.--Subject to paragraph (2), a loan under 
     this chapter shall be repayable at such times as the 
     Secretary may determine, considering the purpose of the loan 
     and the nature and effect of the disaster, but not later than 
     the maximum repayment period allowed for a loan for a similar 
     purpose under chapters 1 and 2.
       ``(2) Extended repayment period.--The Secretary may, if the 
     loan is for a purpose described in chapter 2 and the 
     Secretary determines that the need of the loan applicant 
     justifies the longer repayment period, make the loan 
     repayable at the end of a period of more than 7 years, but 
     not more than 20 years.
       ``(e) Security for Loan.--
       ``(1) In general.--A borrower of a loan made under this 
     chapter shall secure the loan with the full personal 
     liability of the borrower and such other security as the 
     Secretary may prescribe.
       ``(2) Adequate security.--Subject to paragraph (3), the 
     Secretary may not make or guarantee a loan under this chapter 
     unless the security for the loan is adequate to ensure 
     repayment of the loan.
       ``(3) Inadequate security due to disaster.--If adequate 
     security for a loan under this chapter is not available 
     because of a disaster, the Secretary shall accept as security 
     any collateral that is available if the Secretary is 
     confident that the collateral and the repayment ability of 
     the farmer are adequate security for the loan.
       ``(4) Valuation of farm assets.--If a farm asset (including 
     land, livestock, or equipment) is used as collateral to 
     secure a loan applied for under this chapter and the governor 
     of the State in which the farm is located requests assistance 
     under this chapter or the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for the 
     portion of the State in which the asset is located, the 
     Secretary shall establish the value of the asset as of the 
     day before the occurrence of the natural or major disaster or 
     emergency.
       ``(f) Review of Loan.--
       ``(1) In general.--In the case of a loan made, but not 
     guaranteed, under section 3301, the Secretary shall review 
     the loan 3 years after the loan is made, and every 2 years 
     thereafter for the term of the loan.
       ``(2) Termination of federal assistance.--If, based on a 
     review under paragraph (1), the Secretary determines that the 
     borrower is able to obtain a loan from a non-Federal source 
     at reasonable rates and terms, the borrower shall, on request 
     by the Secretary, apply for, and accept, a non-Federal loan 
     in a sufficient amount to repay the Secretary.

     ``SEC. 3304. PRODUCTION LOSSES.

       ``(a) In General.--The Secretary shall make or guarantee a 
     loan under this chapter to an eligible farmer for production 
     losses if a single enterprise that constitutes a basic part 
     of the farming operation of the farmer has sustained at least 
     a 30 percent loss in normal per acre or per animal 
     production, or such lesser percentage as the Secretary may 
     determine, as a result of a disaster.
       ``(b) Basis for Percentage.--A percentage loss under 
     subsection (a) shall be based on the average monthly price in 
     effect for the previous crop or calendar year, as 
     appropriate.
       ``(c) Amount of Loan.--A loan under subsection (a) shall be 
     in an amount that is equal to 80 percent, or such greater 
     percentage as the Secretary may determine, of the total 
     calculated actual production loss sustained by the farmer.

              ``CHAPTER 4--GENERAL FARMER LOAN PROVISIONS

     ``SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND.

       ``The fund established pursuant to section 11(a) of the 
     Bankhead-Jones Farm Tenant Act (60 Stat. 1075, chapter 964) 
     shall be known as the Agricultural Credit Insurance Fund 
     (referred to in this section as the `Fund', unless the 
     context otherwise requires) for the discharge of the 
     obligations of the Secretary under agreements insuring loans 
     under this subtitle and loans and mortgages insured under 
     prior authority.

     ``SEC. 3402. GUARANTEED FARMER LOANS.

       ``(a) In General.--The Secretary may provide financial 
     assistance to a borrower for a purpose provided in this 
     subtitle by guaranteeing a loan made by any Federal or State 
     chartered bank, savings and loan association, cooperative 
     lending agency, or other legally organized lending agency.
       ``(b) Interest Rate.--The interest rate payable by a 
     borrower on the portion of a guaranteed loan that is sold by 
     a lender to the secondary market under this subtitle may be 
     lower than the interest rate charged on the portion retained 
     by the lender, but shall not exceed the average interest rate 
     charged by the lender on loans made to farm borrowers.
       ``(c) Fees.--In the case of a loan guarantee on a loan made 
     by a commercial or cooperative lender related to a loan made 
     by the Secretary under section 3107--
       ``(1) the Secretary shall not charge a fee to any person 
     (including a lender); and

[[Page S4041]]

       ``(2) a lender may charge a loan origination and servicing 
     fee in an amount not to exceed 1 percent of the amount of the 
     loan.
       ``(d) Maximum Guarantee of 90 Percent.--Except as provided 
     in subsections (e) and (f), a loan guarantee under this 
     subtitle shall be for not more than 90 percent of the 
     principal and interest due on the loan.
       ``(e) Refinanced Loans Guaranteed at 95 Percent.--The 
     Secretary shall guarantee 95 percent of--
       ``(1) in the case of a loan that solely refinances a direct 
     loan made under this subtitle, the principal and interest due 
     on the loan on the date of the refinancing; or
       ``(2) in the case of a loan that is used for multiple 
     purposes, the portion of the loan that refinances the 
     principal and interest due on a direct loan made under this 
     subtitle that is outstanding on the date the loan is 
     guaranteed.
       ``(f) Beginning Farmer Loans Guaranteed up to 95 Percent.--
     The Secretary may guarantee not more than 95 percent of--
       ``(1) a farm ownership loan for acquiring a farm to a 
     borrower who is participating in the downpayment loan program 
     under section 3107; or
       ``(2) an operating loan to a borrower who is participating 
     in the downpayment loan program under section 3107 that is 
     made during the period that the borrower has a direct loan 
     outstanding under chapter 1 for acquiring a farm.
       ``(g) Guarantee of Loans Made Under State Beginning Farmer 
     Programs.--The Secretary may guarantee under this subtitle a 
     loan made under a State beginning farmer program, including a 
     loan financed by the net proceeds of a qualified small issue 
     agricultural bond for land or property described in section 
     144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.

     ``SEC. 3403. PROVISION OF INFORMATION TO BORROWERS.

       ``(a) Approval Notification.--The Secretary shall approve 
     or disapprove an application for a loan or loan guarantee 
     made under this subtitle, and notify the applicant of such 
     action, not later than 60 days after the date on which the 
     Secretary has received a complete application for the loan or 
     loan guarantee.
       ``(b) List of Lenders.--The Secretary shall make available 
     to any farmer, on request, a list of lenders in the area that 
     participate in guaranteed farmer program loan programs 
     established under this subtitle, and other lenders in the 
     area that express a desire to participate in the programs and 
     that request inclusion on the list.
       ``(c) Other Information.--
       ``(1) In general.--On the request of a borrower, the 
     Secretary shall make available to the borrower--
       ``(A) a copy of each document signed by the borrower;
       ``(B) a copy of each appraisal performed with respect to 
     the loan; and
       ``(C) any document that the Secretary is required to 
     provide to the borrower under any law in effect on the date 
     of the request.
       ``(2) Rule of construction.--Paragraph (1) shall not 
     supersede any duty imposed on the Secretary by a law in 
     effect on January 5, 1988, unless the duty directly conflicts 
     with a duty under paragraph (1).

     ``SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS.

       ``(a) Requirement.--The Secretary shall provide notice by 
     certified mail to each borrower who is at least 90 days past 
     due on the payment of principal or interest on a loan made 
     under this subtitle.
       ``(b) Contents.--The notice required under subsection (a) 
     shall--
       ``(1) include a summary of all primary loan service 
     programs, homestead retention programs, debt settlement 
     programs, and appeal procedures, including the eligibility 
     criteria, and terms and conditions of the programs and 
     procedures;
       ``(2) include a summary of the manner in which the borrower 
     may apply, and be considered, for all such programs, except 
     that the Secretary shall not require the borrower to select 
     among the programs or waive any right to be considered for 
     any program carried out by the Secretary;
       ``(3) advise the borrower regarding all filing requirements 
     and any deadlines that must be met for requesting loan 
     servicing;
       ``(4) provide any relevant forms, including applicable 
     response forms;
       ``(5) advise the borrower that a copy of regulations is 
     available on request; and
       ``(6) be designed to be readable and understandable by the 
     borrower.
       ``(c) Contained in Regulations.--All notices required by 
     this section shall be contained in the regulations issued to 
     carry out this title.
       ``(d) Timing.--The notice described in subsection (b) shall 
     be provided--
       ``(1) at the time an application is made for participation 
     in a loan service program;
       ``(2) on written request of the borrower; and
       ``(3) before the earliest of the date of--
       ``(A) initiating any liquidation;
       ``(B) requesting the conveyance of security property;
       ``(C) accelerating the loan;
       ``(D) repossessing property;
       ``(E) foreclosing on property; or
       ``(F) taking any other collection action.
       ``(e) Consideration of Borrowers for Loan Service 
     Programs.--
       ``(1) In general.--The Secretary shall consider a farmer 
     program loan borrower for all loan service programs if, not 
     later than 60 days after receipt of the notice described in 
     subsection (b), the borrower requests the consideration in 
     writing.
       ``(2) Priority.--In considering a borrower for a loan 
     service program, the Secretary shall place the highest 
     priority on the preservation of the farming operations of the 
     borrower.

     ``SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDELINES.

       ``(a) In General.--The Secretary shall ensure that 
     appropriate procedures, including, to the extent practicable, 
     onsite inspections, or use of county or State yield averages, 
     are used in calculating future yields for an applicant for a 
     loan, when an accurate projection cannot be made because the 
     past production history of the farmer has been affected by a 
     natural or major disaster or emergency.
       ``(b) Calculation of Yields.--
       ``(1) In general.--For the purpose of averaging the past 
     yields of the farm of a farmer over a period of crop years to 
     calculate the future yield of the farm under this title, the 
     Secretary shall permit the farmer to exclude the crop year 
     with the lowest actual or county average yield for the farm 
     from the calculation, if the farmer was affected by a natural 
     or major disaster or emergency during at least 2 of the crop 
     years during the period.
       ``(2) Affected by a natural or major disaster or 
     emergency.--A farmer was affected by a natural or major 
     disaster or emergency under paragraph (1) if the Secretary 
     finds that the farming operations of the farmer have been 
     substantially affected by a natural or major disaster or 
     emergency, including a farmer who has a qualifying loss but 
     is not located in a designated or declared disaster area.
       ``(3) Application of subsection.--This subsection shall 
     apply to any action taken by the Secretary that involves--
       ``(A) a loan under chapter 1 or 2; and
       ``(B) the yield of a farm of a farmer, including making a 
     loan or loan guarantee, servicing a loan, or making a credit 
     sale.

     ``SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON LOANS.

       ``(a) Applicant Requirements.--In connection with a loan 
     made or guaranteed under this subtitle, the Secretary shall 
     require--
       ``(1) the applicant--
       ``(A) to certify in writing that, and the Secretary shall 
     determine whether, the applicant is unable to obtain credit 
     elsewhere; and
       ``(B) to furnish an appropriate written financial 
     statement;
       ``(2) except for a guaranteed loan, an agreement by the 
     borrower that if at any time it appears to the Secretary that 
     the borrower may be able to obtain a loan from a production 
     credit association, a Federal land bank, or other responsible 
     cooperative or private credit source (or, in the case of a 
     borrower under section 3106, the borrower may be able to 
     obtain a loan under section 3101), at reasonable rates and 
     terms for loans for similar purposes and periods of time, the 
     borrower will, on request by the Secretary, apply for and 
     accept the loan in a sufficient amount to repay the Secretary 
     or the insured lender, or both, and to pay for any stock 
     necessary to be purchased in a cooperative lending agency in 
     connection with the loan;
       ``(3) such provision for supervision of the operations of 
     the borrower as the Secretary shall consider necessary to 
     achieve the objectives of the loan and protect the interests 
     of the United States; and
       ``(4) the application of a person who is a veteran for a 
     loan under chapter 1 or 2 to be given preference over a 
     similar application from a person who is not a veteran if the 
     applications are on file in a county or area office at the 
     same time.
       ``(b) Agency Processing Requirements.--
       ``(1) Notifications.--
       ``(A) Incomplete application notification.--If an 
     application for a loan or loan guarantee under this subtitle 
     (other than an operating loan or loan guarantee) is 
     incomplete, the Secretary shall inform the applicant of the 
     reasons the application is incomplete not later than 20 days 
     after the date on which the Secretary has received the 
     application.
       ``(B) Operating loans.--
       ``(i) Additional information needed.--Not later than 10 
     calendar days after the Secretary receives an application for 
     an operating loan or loan guarantee, the Secretary shall 
     notify the applicant of any information required before a 
     decision may be made on the application.
       ``(ii) Information not received.--If, not later than 20 
     calendar days after the date a request is made pursuant to 
     clause (i) with respect to an application, the Secretary has 
     not received the information requested, the Secretary shall 
     notify the applicant and the district office of the Farm 
     Service Agency, in writing, of the outstanding information.
       ``(C) Request information.--
       ``(i) In general.--On receipt of an application, the 
     Secretary shall request from other parties such information 
     as may be needed in connection with the application.
       ``(ii) Information from an agency of the department.--Not 
     later than 15 calendar days after the date on which an agency 
     of the Department receives a request for information made 
     pursuant to subparagraph (A), the agency shall provide the 
     Secretary with the requested information.
       ``(2) Report of pending applications.--
       ``(A) In general.--A county office shall notify the 
     district office of the Farm Service Agency of each 
     application for an operating loan or loan guarantee that is 
     pending more

[[Page S4042]]

     than 45 days after receipt, and the reasons for which the 
     application is pending.
       ``(B) Action on pending applications.--A district office 
     that receives a notice provided under subparagraph (A) with 
     respect to an application shall immediately take steps to 
     ensure that final action is taken on the application not 
     later than 15 days after the date of the receipt of the 
     notice.
       ``(C) Pending application report.--The district office 
     shall report to the State office of the Farm Service Agency 
     on each application for an operating loan or loan guarantee 
     that is pending more than 45 days after receipt, and the 
     reasons for which the application is pending.
       ``(D) Report to congress.--Each month, the Secretary shall 
     notify the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate, on a State-by-State basis, as to 
     each application for an operating loan or loan guarantee on 
     which final action had not been taken within 60 calendar days 
     after receipt by the Secretary, and the reasons for which 
     final action had not been taken.
       ``(3) Disapprovals.--
       ``(A) In general.--If an application for a loan or loan 
     guarantee under this subtitle is disapproved by the 
     Secretary, the Secretary shall state the reasons for the 
     disapproval in the notice required under paragraph (1).
       ``(B) Disapproval due to lack of funds.--
       ``(i) In general.--Notwithstanding paragraph (1), each 
     application for a loan or loan guarantee under section 
     3601(e), or for a loan under section 3501(a) or 3502(a), that 
     is to be disapproved by the Secretary solely because the 
     Secretary lacks the funds necessary to make the loan or 
     guarantee shall not be disapproved but shall be placed in 
     pending status.
       ``(ii) Reconsideration.--The Secretary shall retain each 
     pending application and reconsider the application beginning 
     on the date that sufficient funds become available.
       ``(iii) Notification.--Not later than 60 days after funds 
     become available regarding each pending application, the 
     Secretary shall notify the applicant of the approval or 
     disapproval of funding for the application.
       ``(4) Approvals on appeal.--If an application for a loan or 
     loan guarantee under this subtitle is disapproved by the 
     Secretary, but that action is subsequently reversed or 
     revised as the result of an appeal within the Department or 
     to the courts of the United States and the application is 
     returned to the Secretary for further consideration, the 
     Secretary shall act on the application and provide the 
     applicant with notice of the action not later than 15 days 
     after the date of return of the application to the Secretary.
       ``(5) Provision of proceeds.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if an application for an insured loan under this title is 
     approved by the Secretary, the Secretary shall provide the 
     loan proceeds to the applicant not later than 15 days (or 
     such longer period as the applicant may approve) after the 
     application for the loan is approved by the Secretary.
       ``(B) Lack of funds.--If the Secretary is unable to provide 
     the loan proceeds to the applicant during the 15-day period 
     described in subparagraph (A) because sufficient funds are 
     not available to the Secretary for that purpose, the 
     Secretary shall provide the loan proceeds to the applicant as 
     soon as practicable (but in no event later than 15 days 
     unless the applicant agrees to a longer period) after 
     sufficient funds for that purpose become available to the 
     Secretary.

     ``SEC. 3407. GRADUATION OF BORROWERS.

       ``(a) Graduation of Seasoned Direct Loan Borrowers to the 
     Loan Guarantee Program.--
       ``(1) Review of loans.--
       ``(A) In general.--The Secretary, or a contracting third 
     party, shall annually review under section 3420 the loans of 
     each seasoned direct loan borrower.
       ``(B) Assistance.--If, based on the review, it is 
     determined that a borrower would be able to obtain a loan, 
     guaranteed by the Secretary, from a commercial or cooperative 
     lender at reasonable rates and terms for loans for similar 
     purposes and periods of time, the Secretary shall assist the 
     borrower in applying for the commercial or cooperative loan.
       ``(2) Prospectus.--
       ``(A) In general.--In accordance with section 3422, the 
     Secretary shall prepare a prospectus on each seasoned direct 
     loan borrower determined eligible to obtain a guaranteed 
     loan.
       ``(B) Requirements.--The prospectus shall contain a 
     description of the amounts of the loan guarantee and interest 
     assistance that the Secretary will provide to the seasoned 
     direct loan borrower to enable the seasoned direct loan 
     borrower to carry out a financially viable farming plan if a 
     guaranteed loan is made.
       ``(3) Verification.--
       ``(A) In general.--The Secretary shall provide a prospectus 
     of a seasoned direct loan borrower to each approved lender 
     whose lending area includes the location of the seasoned 
     direct loan borrower.
       ``(B) Notification.--The Secretary shall notify each 
     borrower of a loan that a prospectus has been provided to a 
     lender under subparagraph (A).
       ``(C) Credit extended.--If the Secretary receives an offer 
     from an approved lender to extend credit to the seasoned 
     direct loan borrower under terms and conditions contained in 
     the prospectus, the seasoned direct loan borrower shall not 
     be eligible for a loan from the Secretary under chapter 1 or 
     2, except as otherwise provided in this section.
       ``(4) Insufficient assistance or offers.--If the Secretary 
     is unable to provide loan guarantees and, if necessary, 
     interest assistance to the seasoned direct loan borrower 
     under this section in amounts sufficient to enable the 
     seasoned direct loan borrower to borrow from commercial 
     sources the amount required to carry out a financially viable 
     farming plan, or if the Secretary does not receive an offer 
     from an approved lender to extend credit to a seasoned direct 
     loan borrower under the terms and conditions contained in the 
     prospectus, the Secretary shall make a loan to the seasoned 
     direct loan borrower under chapter 1 or 2, whichever is 
     applicable.
       ``(5) Interest rate reductions.--To the extent necessary 
     for the borrower to obtain a loan, guaranteed by the 
     Secretary, from a commercial or cooperative lender, the 
     Secretary shall provide interest rate reductions as provided 
     for under section 3413.
       ``(b) Transition to Private Commercial or Other Sources of 
     Credit.--
       ``(1) In general.--In making an operating or ownership 
     loan, the Secretary shall establish a plan and promulgate 
     regulations (including performance criteria) that promote the 
     goal of transitioning borrowers to private commercial credit 
     and other sources of credit in the shortest period of time 
     practicable.
       ``(2) Coordination.--In carrying out this section, the 
     Secretary shall integrate and coordinate the transition 
     policy described in subsection (a) with--
       ``(A) the borrower training program established by section 
     3419;
       ``(B) the loan assessment process established by section 
     3420;
       ``(C) the supervised credit requirement established by 
     section 3421;
       ``(D) the market placement program established by section 
     3422; and
       ``(E) other appropriate programs and authorities, as 
     determined by the Secretary.
       ``(c) Graduation of Borrowers With Operating Loans or 
     Guarantees to Private Commercial Credit.--The Secretary shall 
     establish a plan, in coordination with activities under 
     sections 3419 through 3422, to encourage each borrower with 
     an outstanding loan under this chapter, or with respect to 
     whom there is an outstanding guarantee under this chapter, to 
     graduate to private commercial or other sources of credit.

     ``SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING.

       ``In carrying out this subtitle, the Secretary may--
       ``(1) provide voluntary debt adjustment assistance 
     between--
       ``(A) farmers; and
       ``(B) the creditors of the farmers;
       ``(2) cooperate with State, territorial, and local agencies 
     and committees engaged in the debt adjustment; and
       ``(3) give credit counseling.

     ``SEC. 3409. SECURITY SERVICING.

       ``(a) Sale of Property.--
       ``(1) In general.--Subject to this subsection and 
     subsection (e)(1), the Secretary shall offer to sell real 
     property that is acquired by the Secretary under this 
     subtitle using the following order and method of sale:
       ``(A) Advertisement.--Not later than 15 days after 
     acquiring real property, the Secretary shall publicly 
     advertise the property for sale.
       ``(B) Qualified beginning farmer.--
       ``(i) In general.--Not later than 75 days after acquiring 
     real property, the Secretary shall offer to sell the property 
     to a qualified beginning farmer or a socially disadvantaged 
     farmer at current market value based on a current appraisal.
       ``(ii) Random selection.--If more than 1 qualified 
     beginning farmer or socially disadvantaged farmer offers to 
     purchase the property, the Secretary shall select between the 
     qualified applicants on a random basis.
       ``(iii) Appeal of random selection.--A random selection or 
     denial by the Secretary of a qualified beginning farmer or a 
     socially disadvantaged farmer for farm inventory property 
     under this subparagraph shall be final and not 
     administratively appealable.
       ``(C) Public sale.--If no acceptable offer is received from 
     a qualified beginning farmer or a socially disadvantaged 
     farmer under subparagraph (B) not later than 135 days after 
     acquiring the real property, the Secretary shall, not later 
     than 30 days after the 135-day period, sell the property 
     after public notice at a public sale, and, if no acceptable 
     bid is received, by negotiated sale, at the best price 
     obtainable.
       ``(2) Interest.--
       ``(A) In general.--Subject to subparagraph (B), any 
     conveyance of real property under this subsection shall 
     include all of the interest of the United States in the 
     property, including mineral rights.
       ``(B) Conservation.--The Secretary may for conservation 
     purposes grant or sell an easement, restriction, development 
     right, or similar legal right to real property to a State, a 
     political subdivision of a State, or a private nonprofit 
     organization separately from the underlying fee or other 
     rights to the property owned by the United States.
       ``(3) Other law.--Subtitle I of title 40, United States 
     Code, and title III of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) 
     shall not apply to any exercise of authority under this 
     subtitle.
       ``(4) Lease of property.--

[[Page S4043]]

       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary may not lease any real property acquired under this 
     subtitle.
       ``(B) Exception.--
       ``(i) Qualified beginning farmer or socially disadvantaged 
     farmer.--The Secretary may lease or contract to sell to a 
     qualified beginning farmer or a socially disadvantaged farmer 
     a farm acquired by the Secretary under this subtitle if the 
     qualified beginning farmer qualifies for a credit sale or 
     direct farm ownership loan under chapter 1 but credit sale 
     authority for loans or direct farm ownership loan funds, 
     respectively, are not available.
       ``(ii) Term.--The term of a lease or contract to sell to a 
     qualified beginning farmer or a socially disadvantaged farmer 
     under clause (i) shall be until the earlier of--

       ``(I) the date that is 18 months after the date of the 
     lease or sale; or
       ``(II) the date that direct farm ownership loan funds or 
     credit sale authority for loans becomes available to the 
     qualified beginning farmer or socially disadvantaged farmer.

       ``(iii) Income-producing capability.--In determining the 
     rental rate on real property leased under this subparagraph, 
     the Secretary shall consider the income-producing capability 
     of the property during the term that the property is leased.
       ``(5) Expedited determination.--
       ``(A) In general.--On the request of an applicant, not 
     later than 30 days after denial of the application, the 
     appropriate State director shall provide an expedited review 
     and determination of whether the applicant is a qualified 
     beginning farmer or a socially disadvantaged farmer for the 
     purpose of acquiring farm inventory property.
       ``(B) Appeal.--The determination of a State Director under 
     subparagraph (A) shall be final and not administratively 
     appealable.
       ``(C) Effects of determinations.--
       ``(i) In general.--The Secretary shall maintain statistical 
     data on the number and results of determinations made under 
     subparagraph (A) and the effect of the determinations on--

       ``(I) selling farm inventory property to qualified 
     beginning farmers or socially disadvantaged farmers; and
       ``(II) disposing of real property in inventory.

       ``(ii) Notification.--The Secretary shall notify the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate if the Secretary determines that the review process 
     under subparagraph (A) is adversely affecting the selling of 
     farm inventory property to qualified beginning farmers or 
     socially disadvantaged farmers or the disposing of real 
     property in inventory.
       ``(b) Road and Utility Easements and Condemnations.--In the 
     case of any real property administered under this subtitle, 
     the Secretary may grant or sell easements or rights-of-way 
     for roads, utilities, and other appurtenances that are not 
     inconsistent with the public interest.
       ``(c) Sale or Lease of Farmland.--
       ``(1) Disposition of real property on indian 
     reservations.--
       ``(A) Definition of indian reservation.--In this paragraph, 
     the term `Indian reservation' means--
       ``(i) all land located within the limits of any Indian 
     reservation under the jurisdiction of the United States, 
     notwithstanding the issuance of any patent, and, including 
     any right-of-way running through the reservation;
       ``(ii) trust or restricted land located within the 
     boundaries of a former reservation of an Indian tribe in the 
     State of Oklahoma; or
       ``(iii) all Indian allotments the Indian titles to which 
     have not been extinguished if the allotments are subject to 
     the jurisdiction of an Indian tribe.
       ``(B) Disposition.--Except as provided in paragraph (3), 
     the Secretary shall dispose of or administer the property as 
     provided in this paragraph when--
       ``(i) the Secretary acquires property under this subtitle 
     that is located within an Indian reservation; and
       ``(ii) the borrower-owner is the Indian tribe that has 
     jurisdiction over the reservation in which the real property 
     is located or the borrower-owner is a member of the Indian 
     tribe;
       ``(C) Priority.--Not later than 90 days after acquiring the 
     property, the Secretary shall afford an opportunity to 
     purchase or lease the real property in accordance with the 
     order of priority established under subparagraph (D) to the 
     Indian tribe having jurisdiction over the Indian reservation 
     within which the real property is located or, if no order of 
     priority is established by the Indian tribe under 
     subparagraph (D), in the following order:
       ``(i) An Indian member of the Indian tribe that has 
     jurisdiction over the reservation within which the real 
     property is located.
       ``(ii) An Indian corporate entity.
       ``(iii) The Indian tribe.
       ``(D) Revision of priority and restriction of 
     eligibility.--The governing body of any Indian tribe having 
     jurisdiction over an Indian reservation may revise the order 
     of priority provided in subparagraph (C) under which land 
     located within the reservation shall be offered for purchase 
     or lease by the Secretary under subparagraph (C) and may 
     restrict the eligibility for the purchase or lease to--
       ``(i) persons who are members of the Indian tribe;
       ``(ii) Indian corporate entities that are authorized by the 
     Indian tribe to lease or purchase land within the boundaries 
     of the reservation; or
       ``(iii) the Indian tribe itself.
       ``(E) Transfer of property to secretary of the interior.--
       ``(i) In general.--If real property described in 
     subparagraph (B) is not purchased or leased under 
     subparagraph (C) and the Indian tribe having jurisdiction 
     over the reservation within which the real property is 
     located is unable to purchase or lease the real property, the 
     Secretary shall transfer the real property to the Secretary 
     of the Interior who shall administer the real property as if 
     the real property were held in trust by the United States for 
     the benefit of the Indian tribe.
       ``(ii) Use of rental income.--From the rental income 
     derived from the lease of the transferred real property, and 
     all other income generated from the transferred real 
     property, the Secretary of the Interior shall pay the State, 
     county, municipal, or other local taxes to which the 
     transferred real property was subject at the time of 
     acquisition by the Secretary, until the earlier of--

       ``(I) the expiration of the 4-year period beginning on the 
     date on which the real property is so transferred; or
       ``(II) such time as the land is transferred into trust 
     pursuant to subparagraph (H).

       ``(F) Responsibilities of secretaries.--If any real 
     property is transferred to the Secretary of the Interior 
     under subparagraph (E)--
       ``(i) the Secretary of Agriculture shall have no further 
     responsibility under this title for--

       ``(I) collection of any amounts with regard to the farm 
     program loan that had been secured by the real property;
       ``(II) any lien arising out of the loan transaction; or
       ``(III) repayment of any amount with regard to the loan 
     transaction or lien to the Treasury of the United States; and

       ``(ii) the Secretary of the Interior shall succeed to all 
     right, title, and interest of the Secretary of Agriculture in 
     the real estate arising from the farm program loan 
     transaction, including the obligation to remit to the 
     Treasury of the United States, in repayment of the original 
     loan, the amounts provided in subparagraph (G).
       ``(G) Use of income.--After the payment of any taxes that 
     are required to be paid under subparagraph (E)(ii), all 
     remaining rental income derived from the lease of the real 
     property transferred to the Secretary of the Interior under 
     subparagraph (E)(i), and all other income generated from the 
     real property transferred to the Secretary of the Interior 
     under that subparagraph, shall be deposited as miscellaneous 
     receipts in the Treasury of the United States until the 
     amount deposited is equal to the lesser of--
       ``(i) the amount of the outstanding lien of the United 
     States against the real property, as of the date the real 
     property was acquired by the Secretary;
       ``(ii) the fair market value of the real property, as of 
     the date of the transfer to the Secretary of the Interior; or
       ``(iii) the capitalized value of the real property, as of 
     the date of the transfer to the Secretary of the Interior.
       ``(H) Holding of title in trust.--If the total amount that 
     is required to be deposited under subparagraph (G) with 
     respect to any real property has been deposited into the 
     Treasury of the United States, title to the real property 
     shall be held in trust by the United States for the benefit 
     of the Indian tribe having jurisdiction over the Indian 
     reservation within which the real property is located.
       ``(I) Payment of remaining lien or fair market value of 
     property.--
       ``(i) In general.--Notwithstanding any other subparagraph 
     of this paragraph, the Indian tribe having jurisdiction over 
     the Indian reservation within which the real property 
     described in subparagraph (B) is located may, at any time 
     after the real property has been transferred to the Secretary 
     of the Interior under subparagraph (E), offer to pay the 
     remaining amount on the lien or the fair market value of the 
     real property, whichever is less.
       ``(ii) Effect of payment.--On payment of the amount, title 
     to the real property shall be held by the United States in 
     trust for the tribe and the trust or restricted land that has 
     been acquired by the Secretary under foreclosure or voluntary 
     transfer under a loan made or insured under this subtitle and 
     transferred to an Indian person, entity, or tribe under this 
     paragraph shall be considered to have never lost trust or 
     restricted status.
       ``(J) Applicability.--
       ``(i) In general.--This paragraph shall apply to all land 
     in the land inventory established under this subtitle (as of 
     November 28, 1990) that was (immediately prior to the date) 
     owned by an Indian borrower-owner described in subparagraph 
     (B) and that is situated within an Indian reservation, 
     regardless of the date of foreclosure or acquisition by the 
     Secretary.
       ``(ii) Opportunity to purchase or lease.--The Secretary 
     shall afford an opportunity to an Indian person, entity, or 
     tribe to purchase or lease the real property as provided in 
     subparagraph (C).
       ``(iii) Transfer.--If the right is not exercised or no 
     expression of intent to exercise the right is received within 
     180 days after November 28, 1990, the Secretary shall 
     transfer the real property to the Secretary of the Interior 
     as provided in subparagraph (E).

[[Page S4044]]

       ``(2) Additional rights.--The rights provided in this 
     subsection shall be in addition to any right of first refusal 
     under the law of the State in which the property is located.
       ``(3) Disposition of real property on indian reservations 
     after procedures exhausted.--
       ``(A) In general.--The Secretary shall dispose of or 
     administer real property described in paragraph (1)(B) only 
     as provided in paragraph (1), as modified by this paragraph, 
     if--
       ``(i) the real property described in paragraph (1)(B) is 
     located within an Indian reservation;
       ``(ii) the borrower-owner is an Indian tribe that has 
     jurisdiction over the reservation in which the real property 
     is located or the borrower-owner is a member of an Indian 
     tribe;
       ``(iii) the borrower-owner has obtained a loan made or 
     guaranteed under this title; and
       ``(iv) the borrower-owner and the Secretary have exhausted 
     all of the procedures provided for in this title to permit a 
     borrower-owner to retain title to the real property, so that 
     it is necessary for the borrower-owner to relinquish title.
       ``(B) Notice of right to convey property.--The Secretary 
     shall provide the borrower-owner of real property that is 
     described in subparagraph (A) with written notice of--
       ``(i) the right of the borrower-owner to voluntarily convey 
     the real property to the Secretary; and
       ``(ii) the fact that real property so conveyed will be 
     placed in the inventory of the Secretary.
       ``(C) Notice of rights and protections.--The Secretary 
     shall provide the borrower-owner of the real property with 
     written notice of the rights and protections provided under 
     this title to the borrower-owner, and the Indian tribe that 
     has jurisdiction over the reservation in which the real 
     property is located, from foreclosure or liquidation of the 
     real property, including written notice--
       ``(i) of paragraph (1), this paragraph, and subsection 
     (e)(3);
       ``(ii) if the borrower-owner does not voluntarily convey 
     the real property to the Secretary, that--

       ``(I) the Secretary may foreclose on the property;
       ``(II) in the event of foreclosure, the property will be 
     offered for sale;
       ``(III) the Secretary shall offer a bid for the property 
     that is equal to the fair market value of the property or the 
     outstanding principal and interest of the loan, whichever is 
     higher;
       ``(IV) the property may be purchased by another party; and
       ``(V) if the property is purchased by another party, the 
     property will not be placed in the inventory of the Secretary 
     and the borrower-owner will forfeit the rights and 
     protections provided under this title; and

       ``(iii) of the opportunity of the borrower-owner to consult 
     with the Indian tribe that has jurisdiction over the 
     reservation in which the real property is located or counsel 
     to determine if State or tribal law provides rights and 
     protections that are more beneficial than the rights and 
     protections provided the borrower-owner under this title.
       ``(D) Acceptance of voluntary conveyance.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary shall accept the voluntary conveyance of real 
     property described in subparagraph (A).
       ``(ii) Hazardous substances.--If a hazardous substance (as 
     defined in section 101(14) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(14))) is located on the property and the Secretary takes 
     remedial action to protect human health or the environment if 
     the property is taken into inventory, the Secretary shall 
     accept the voluntary conveyance of the property only if the 
     Secretary determines that the conveyance is in the best 
     interests of the Federal Government.
       ``(E) Foreclosure procedures.--
       ``(i) Notice to borrower.--If an Indian borrower-owner does 
     not voluntarily convey to the Secretary real property 
     described in subparagraph (A), not less than 30 days before a 
     foreclosure sale of the property, the Secretary shall provide 
     the Indian borrower-owner with the option of--

       ``(I) requiring the Secretary to assign the loan and 
     security instruments to the Secretary of the Interior, if the 
     Secretary of the Interior agrees to an assignment releasing 
     the Secretary of Agriculture from all further responsibility 
     for collection of any amounts with regard to the loan secured 
     by the real property; or
       ``(II) requiring the Secretary to assign the loan and 
     security instruments to the tribe having jurisdiction over 
     the reservation in which the real property is located, if the 
     tribe agrees to assume the loan under the terms specified in 
     clause (iii).

       ``(ii) Notice to tribe.--If an Indian borrower-owner does 
     not voluntarily convey to the Secretary real property 
     described in subparagraph (A), not less than 30 days before a 
     foreclosure sale of the property, the Secretary shall provide 
     written notice to the Indian tribe that has jurisdiction over 
     the reservation in which the real property is located of--

       ``(I) the sale;
       ``(II) the fair market value of the property; and
       ``(III) the requirements of this paragraph.

       ``(iii) Assumed loans.--If an Indian tribe assumes a loan 
     under clause (i)--

       ``(I) the Secretary shall not foreclose the loan because of 
     any default that occurred prior to the date of the 
     assumption;
       ``(II) the loan shall be for the lesser of the outstanding 
     principal and interest of the loan or the fair market value 
     of the property; and
       ``(III) the loan shall be treated as though the loan was 
     made under Public Law 91 229 (25 U.S.C. 488 et seq.).

       ``(F) Amount of bid by secretary.--
       ``(i) In general.--Except as provided in clause (ii), at a 
     foreclosure sale of real property described in subparagraph 
     (A), the Secretary shall offer a bid for the property that is 
     equal to the higher of--

       ``(I) the fair market value of the property; or
       ``(II) the outstanding principal and interest on the loan.

       ``(ii) Hazardous substances.--If a hazardous substance (as 
     defined in section 101(14) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(14))) is located on the property and the Secretary takes 
     remedial action to protect human health or the environment if 
     the property is taken into inventory, clause (i) shall apply 
     only if the Secretary determines that bidding is in the best 
     interests of the Federal Government.
       ``(4) Detrimental effect on value of area farmland.--The 
     Secretary shall not offer for sale or sell any farmland 
     referred to in paragraphs (1) through (3) if placing the 
     farmland on the market will have a detrimental effect on the 
     value of farmland in the area.
       ``(5) Installment sales and multiple operators.--
       ``(A) In general.--The Secretary may sell farmland 
     administered under this title through an installment sale or 
     similar device that contains such terms as the Secretary 
     considers necessary to protect the investment of the Federal 
     Government in the land.
       ``(B) Sale of contract.--The Secretary may subsequently 
     sell any contract entered into to carry out subparagraph (A).
       ``(6) Highly erodible land.--In the case of farmland 
     administered under this title that is highly erodible land 
     (as defined in section 1201 of the Food Security Act of 1985 
     (16 U.S.C. 3801)), the Secretary may require the use of 
     specified conservation practices on the land as a condition 
     of the sale or lease of the land.
       ``(7) No effect on acreage allotments, marketing quotas, or 
     acreage bases.--Notwithstanding any other law, compliance by 
     the Secretary with this subsection shall not cause any 
     acreage allotment, marketing quota, or acreage base assigned 
     to the property to lapse, terminate, be reduced, or otherwise 
     be adversely affected.
       ``(8) No preemption of state law.--If a conflict exists 
     between any provision of this subsection and any provision of 
     the law of any State providing a right of first refusal to 
     the owner of farmland or the operator of a farm before the 
     sale or lease of land to any other person, the provision of 
     State law shall prevail.
       ``(d) Release of Normal Income Security.--
       ``(1) Definition of normal income security.--In this 
     subsection:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `normal income security' means all security not 
     considered basic security, including crops, livestock, 
     poultry products, Farm Service Agency payments and Commodity 
     Credit Corporation payments, and other property covered by 
     Farm Service Agency liens that is sold in conjunction with 
     the operation of a farm or other business.
       ``(B) Exceptions.--The term `normal income security' does 
     not include any equipment (including fixtures in States that 
     have adopted the Uniform Commercial Code), or foundation herd 
     or flock, that is--
       ``(i) the basis of the farming or other operation; and
       ``(ii) the basic security for a farmer program loan.
       ``(2) General release.--The Secretary shall release from 
     the normal income security provided for a loan an amount 
     sufficient to pay for the essential household and farm 
     operating expenses of the borrower, until such time as the 
     Secretary accelerates the loan.
       ``(3) Notice of reporting requirements and rights.--If a 
     borrower is required to plan for or to report as to how 
     proceeds from the sale of collateral property will be used, 
     the Secretary shall notify the borrower of--
       ``(A) the requirement; and
       ``(B) the right to the release of funds under this 
     subsection and the means by which a request for the funds may 
     be made.
       ``(e) Easements on Inventoried Property.--
       ``(1) In general.--Subject to paragraph (2), in the 
     disposal of real property under this section, the Secretary 
     shall establish perpetual wetland conservation easements to 
     protect and restore wetland or converted wetland that exists 
     on inventoried property.
       ``(2) Limitation.--The Secretary shall not establish a 
     wetland conservation easement on an inventoried property 
     that--
       ``(A) was cropland on the date the property entered the 
     inventory of the Secretary; or
       ``(B) was used for farming at any time during the period--
       ``(i) beginning on the date that is 5 years before the 
     property entered the inventory of the Secretary; and
       ``(ii) ending on the date on which the property entered the 
     inventory of the Secretary.

[[Page S4045]]

       ``(3) Notification.--The Secretary shall provide prior 
     written notification to a borrower considering homestead 
     retention that a wetland conservation easement may be placed 
     on land for which the borrower is negotiating a lease option.
       ``(4) Appraised value.--The appraised value of the farm 
     shall reflect the value of the land due to the placement of 
     wetland conservation easements.

     ``SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES.

       ``(a) Contracts on Loan Security Properties.--Subject to 
     subsection (b), the Secretary may enter into a contract 
     related to real property for conservation, recreation, or 
     wildlife purposes.
       ``(b) Limitations.--The Secretary may enter into a contract 
     under subsection (a) if--
       ``(1) the property is wetland, upland, or highly erodible 
     land;
       ``(2) the property is determined by the Secretary to be 
     suitable for the purpose involved; and
       ``(3)(A) the property secures a loan made under a law 
     administered and held by the Secretary; and
       ``(B) the contract would better enable a qualified borrower 
     to repay the loan in a timely manner, as determined by the 
     Secretary.
       ``(c) Terms and Conditions.--The terms and conditions 
     specified in a contract under subsection (a) shall--
       ``(1) specify the purposes for which the real property may 
     be used;
       ``(2) identify any conservation measure to be taken, and 
     any recreational and wildlife use to be allowed, with respect 
     to the real property; and
       ``(3) require the owner 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.
       ``(d) Reduction or Forgiveness of Debt.--
       ``(1) In general.--Subject to this section, 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 an outstanding loan under a law administered by the 
     Secretary, by canceling that part of the aggregate amount of 
     the outstanding loan 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 loan; 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) Maximum canceled amount.--The amount canceled or 
     treated as prepaid under paragraph (1) shall not exceed--
       ``(A) in the case of a delinquent loan, the greater of--
       ``(i) the value of the land on 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; or

       ``(B) in the case of a nondelinquent loan, 33 percent of 
     the amount of the loan secured by the land.
       ``(e) Consultation With Fish and Wildlife Service.--If the 
     Secretary uses the authority provided by this section, the 
     Secretary shall consult with the Director of the Fish and 
     Wildlife Service for the purposes of--
       ``(1) selecting real property in which the Secretary may 
     enter into a contract under this section;
       ``(2) formulating the terms and conditions of the contract; 
     and
       ``(3) enforcing the contract.
       ``(f) 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. 3411. DEBT RESTRUCTURING AND LOAN SERVICING.

       ``(a) In General.--The Secretary shall modify a delinquent 
     farmer program loan made under this subtitle, or purchased 
     from the lender or the Federal Deposit Insurance Corporation 
     under section 3902, to the maximum extent practicable--
       ``(1) to avoid a loss to the Secretary on the loan, with 
     priority consideration being placed on writing-down the loan 
     principal and interest (subject to subsections (d) and (e)), 
     and debt set-aside (subject to subsection (e)), to facilitate 
     keeping the borrower on the farm, or otherwise through the 
     use of primary loan service programs under this section; and
       ``(2) to ensure that a borrower is able to continue farming 
     operations.
       ``(b) Eligibility.--To be eligible to obtain assistance 
     under subsection (a)--
       ``(1) the delinquency shall be due to a circumstance beyond 
     the control of the borrower, as defined in regulations issued 
     by the Secretary, except that the regulations shall require 
     that, if the value of the assets calculated under subsection 
     (c)(2)(A)(ii) that may be realized through liquidation or 
     other methods would produce enough income to make the 
     delinquent loan current, the borrower shall not be eligible 
     for assistance under subsection (a);
       ``(2) the borrower shall have acted in good faith with the 
     Secretary in connection with the loan as defined in 
     regulations issued by the Secretary;
       ``(3) the borrower shall present a preliminary plan to the 
     Secretary that contains reasonable assumptions that 
     demonstrate that the borrower will be able--
       ``(A) to meet the necessary family living and farm 
     operating expenses of the borrower; and
       ``(B) to service all debts of the borrower, including 
     restructured loans; and
       ``(4) the loan, if restructured, shall result in a net 
     recovery to the Federal Government, during the term of the 
     loan as restructured, that would be more than or equal to the 
     net recovery to the Federal Government from an involuntary 
     liquidation or foreclosure on the property securing the loan.
       ``(c) Restructuring Determinations.--
       ``(1) Determination of net recovery.--In determining the 
     net recovery from the involuntary liquidation of a loan under 
     this section, the Secretary shall calculate--
       ``(A) the recovery value of the collateral securing the 
     loan, in accordance with paragraph (2); and
       ``(B) the value of the restructured loan, in accordance 
     with paragraph (3).
       ``(2) Recovery value.--For the purpose of paragraph (1), 
     the recovery value of the collateral securing the loan shall 
     be based on the difference between--
       ``(A)(i) the amount of the current appraised value of the 
     interests of the borrower in the property securing the loan; 
     and
       ``(ii) the value of the interests of the borrower in all 
     other assets that are--
       ``(I) not essential for necessary family living expenses;
       ``(II) not essential to the operation of the farm; and
       ``(III) not exempt from judgment creditors or in a 
     bankruptcy action under Federal or State law;
       ``(B) the estimated administrative, attorney, and other 
     expenses associated with the liquidation and disposition of 
     the loan and collateral, including--
       ``(i) the payment of prior liens;
       ``(ii) taxes and assessments, depreciation, management 
     costs, the yearly percentage decrease or increase in the 
     value of the property, and lost interest income, each 
     calculated for the average holding period for the type of 
     property involved;
       ``(iii) resale expenses, such as repairs, commissions, and 
     advertising; and
       ``(iv) other administrative and attorney costs; and
       ``(C) the value, as determined by the Secretary, of any 
     property not included in subparagraph (A)(i) if the property 
     is specified in any security agreement with respect to the 
     loan and the Secretary determines that the value of the 
     property should be included for purposes of this section.
       ``(3) Value of the restructured loan.--
       ``(A) In general.--For the purpose of paragraph (1), the 
     value of the restructured loan shall be based on the present 
     value of payments that the borrower would make to the Federal 
     Government if the terms of the loan were modified under any 
     combination of primary loan service programs to ensure that 
     the borrower is able to meet the obligations and continue 
     farming operations.
       ``(B) Present value.--For the purpose of calculating the 
     present value referred to in subparagraph (A), the Secretary 
     shall use a discount rate of not more than the current rate 
     at the time of the calculation of 90-day Treasury bills.
       ``(C) Cash flow margin.--For the purpose of assessing under 
     subparagraph (A) the ability of a borrower to meet debt 
     obligations and continue farming operations, the Secretary 
     shall assume that the borrower needs up to 110 percent of the 
     amount indicated for payment of farm operating expenses, debt 
     service obligations, and family living expenses.
       ``(4) Notification.--Not later than 90 days after receipt 
     of a written request for restructuring from the borrower, the 
     Secretary shall--
       ``(A) make the calculations specified in paragraphs (2) and 
     (3);
       ``(B) notify the borrower in writing of the results of the 
     calculations; and
       ``(C) provide documentation for the calculations.
       ``(5) Restructuring of loans.--
       ``(A) In general.--If the value of a restructured loan is 
     greater than or equal to the recovery value of the collateral 
     securing the loan, not later than 45 days after notifying the 
     borrower under paragraph (4), the Secretary shall offer to 
     restructure the loan obligations of the borrower under this 
     subtitle through primary loan service programs that would 
     enable the borrower to meet the obligations (as modified) 
     under the loan and to continue the farming operations of the 
     borrower.
       ``(B) Restructuring.--If the borrower accepts an offer 
     under subparagraph (A), not later than 45 days after receipt 
     of notice of acceptance, the Secretary shall restructure the 
     loan accordingly.
       ``(6) Termination of loan obligations.--The obligations of 
     a borrower to the Secretary under a loan shall terminate if--
       ``(A) the borrower satisfies the requirements of paragraphs 
     (1) and (2) of subsection (b);
       ``(B) the value of the restructured loan is less than the 
     recovery value; and

[[Page S4046]]

       ``(C) not later than 90 days after receipt of the 
     notification described in paragraph (4)(B), the borrower pays 
     (or obtains third-party financing to pay) the Secretary an 
     amount equal to the current market value.
       ``(7) Negotiation of appraisal.--
       ``(A) In general.--In making a determination concerning 
     restructuring under this subsection, the Secretary, at the 
     request of the borrower, shall enter into negotiations with 
     the borrower concerning appraisals required under this 
     subsection.
       ``(B) Independent appraisal.--
       ``(i) In general.--If the borrower, based on a separate 
     current appraisal, objects to the decision of the Secretary 
     regarding an appraisal, the borrower and the Secretary shall 
     mutually agree, to the extent practicable, on an independent 
     appraiser who shall conduct another appraisal of the property 
     of the borrower.
       ``(ii) Value of final appraisal.--The average of the 2 
     appraisals under clause (i) that are closest in value shall 
     become the final appraisal under this paragraph.
       ``(iii) Cost of appraisal.--The borrower and the Secretary 
     shall each pay \1/2\ of the cost of any independent 
     appraisal.
       ``(d) Principal and Interest Write-down.--
       ``(1) In general.--
       ``(A) Priority consideration.--In selecting the 
     restructuring alternatives to be used in the case of a 
     borrower who has requested restructuring under this section, 
     the Secretary shall give priority consideration to the use of 
     a principal and interest write-down if other creditors of the 
     borrower (other than any creditor who is fully 
     collateralized) representing a substantial portion of the 
     total debt of the borrower held by the creditors of the 
     borrower, agree to participate in the development of the 
     restructuring plan or agree to participate in a State 
     mediation program.
       ``(B) Failure of creditors to agree.--Failure of creditors 
     to agree to participate in the restructuring plan or 
     mediation program shall not preclude the use of a principal 
     and interest write-down by the Secretary if the Secretary 
     determines that restructuring results in the least cost to 
     the Secretary.
       ``(2) Participation of creditors.--Before eliminating the 
     option to use debt write-down in the case of a borrower, the 
     Secretary shall make a reasonable effort to contact the 
     creditors of the borrower, either directly or through the 
     borrower, and encourage the creditors to participate with the 
     Secretary in the development of a restructuring plan for the 
     borrower.
       ``(e) Shared Appreciation Arrangements.--
       ``(1) In general.--As a condition of restructuring a loan 
     in accordance with this section, the borrower of the loan may 
     be required to enter into a shared appreciation arrangement 
     that requires the repayment of amounts written off or set 
     aside.
       ``(2) Terms.--A shared appreciation agreement shall--
       ``(A) have a term not to exceed 10 years; and
       ``(B) provide for recapture based on the difference between 
     the appraised values of the real security property at the 
     time of restructuring and at the time of recapture.
       ``(3) Percentage of recapture.--The amount of the 
     appreciation to be recaptured by the Secretary shall be--
       ``(A) 75 percent of the appreciation in the value of the 
     real security property if the recapture occurs not later than 
     4 years after the date of restructuring; and
       ``(B) 50 percent if the recapture occurs during the 
     remainder of the term of the agreement.
       ``(4) Time of recapture.--Recapture shall take place on the 
     date that is the earliest of--
       ``(A) the end of the term of the agreement;
       ``(B) the conveyance of the real security property;
       ``(C) the repayment of the loans; or
       ``(D) the cessation of farming operations by the borrower.
       ``(5) Transfer of title.--Transfer of title to the spouse 
     of a borrower on the death of the borrower shall not be 
     treated as a conveyance for the purpose of paragraph (4).
       ``(6) Notice of recapture.--Not later than 12 months before 
     the end of the term of a shared appreciation arrangement, the 
     Secretary shall notify the borrower involved of the 
     provisions of the arrangement.
       ``(7) Financing of recapture payment.--
       ``(A) In general.--The Secretary may amortize a recapture 
     payment owed to the Secretary under this subsection.
       ``(B) Term.--The term of an amortization under this 
     paragraph may not exceed 25 years.
       ``(C) Interest rate.--The interest rate applicable to an 
     amortization under this paragraph may not exceed the rate 
     applicable to a loan to reacquire homestead property less 100 
     basis points.
       ``(D) Reamortization.--
       ``(i) In general.--The Secretary may modify the 
     amortization of a recapture payment referred to in 
     subparagraph (A) of this paragraph on which a payment has 
     become delinquent if--

       ``(I) the default is due to circumstances beyond the 
     control of the borrower; and
       ``(II) the borrower acted in good faith (as determined by 
     the Secretary) in attempting to repay the recapture amount.

       ``(ii) Limitations.--

       ``(I) Term of reamortization.--The term of a reamortization 
     under this subparagraph may not exceed 25 years from the date 
     of the original amortization agreement.
       ``(II) No reduction or principal or unpaid interest due.--A 
     reamortization of a recapture payment under this subparagraph 
     may not provide for reducing the outstanding principal or 
     unpaid interest due on the recapture payment.

       ``(f) Interest Rates.--Any loan for farm ownership 
     purposes, farm operating purposes, or disaster emergency 
     purposes, other than a guaranteed loan, that is deferred, 
     consolidated, rescheduled, or reamortized shall, 
     notwithstanding any other provision of this subtitle, bear 
     interest on the balance of the original loan and for the term 
     of the original loan at a rate that is the lowest of--
       ``(1) the rate of interest on the original loan;
       ``(2) the rate being charged by the Secretary for loans, 
     other than guaranteed loans, of the same type at the time at 
     which the borrower applies for a deferral, consolidation, 
     rescheduling, or reamortization; or
       ``(3) the rate being charged by the Secretary for loans, 
     other than guaranteed loans, of the same type at the time of 
     the deferral, consolidation, rescheduling, or reamortization.
       ``(g) Period and Effect.--
       ``(1) Period.--The Secretary may consolidate or reschedule 
     outstanding loans for payment over a period not to exceed 7 
     years (or, in the case of loans for farm operating purposes, 
     15 years) from the date of the consolidation or rescheduling.
       ``(2) Effect.--The amount of unpaid principal and interest 
     of the prior loans so consolidated or rescheduled shall not 
     create a new charge against any loan levels authorized by 
     law.
       ``(h) Prerequisites to Foreclosure or Liquidation.--No 
     foreclosure or other similar action shall be taken to 
     liquidate any loan determined to be ineligible for 
     restructuring by the Secretary under this section--
       ``(1) until the borrower has been given the opportunity to 
     appeal the decision; and
       ``(2) if the borrower appeals, the appeals process has been 
     completed, and a determination has been made that the loan is 
     ineligible for restructuring.
       ``(i) Notice of Ineligibility for Restructuring.--
       ``(1) In general.--A notice of ineligibility for 
     restructuring shall be sent to the borrower by registered or 
     certified mail not later than 15 days after a determination 
     of ineligibility.
       ``(2) Contents.--The notice required under paragraph (1) 
     shall contain--
       ``(A) the determination and the reasons for the 
     determination;
       ``(B) the computations used to make the determination, 
     including the calculation of the recovery value of the 
     collateral securing the loan; and
       ``(C) a statement of the right of the borrower to appeal 
     the decision to the appeals division, and to appear before a 
     hearing officer.
       ``(j) Independent Appraisals.--
       ``(1) In general.--An appeal may include a request by the 
     borrower for an independent appraisal of any property 
     securing the loan.
       ``(2) Process for appraisal.--On a request under paragraph 
     (1), the Secretary shall present the borrower with a list of 
     3 appraisers approved by the county supervisor, from which 
     the borrower shall select an appraiser to conduct the 
     appraisal.
       ``(3) Cost.--The cost of an appraisal under this subsection 
     shall be paid by the borrower.
       ``(4) Result.--The result of an appraisal under this 
     subsection shall be considered in any final determination 
     concerning the loan.
       ``(5) Copy.--A copy of any appraisal under this subsection 
     shall be provided to the borrower.
       ``(k) Partial Liquidations.--If a partial liquidation of a 
     delinquent loan is performed (with the prior consent of the 
     Secretary) as part of loan servicing by a guaranteed lender 
     under this title, the Secretary shall not require full 
     liquidation of the loan for the lender to be eligible to 
     receive payment on losses.
       ``(l) Only 1 Write-down or Net Recovery Buy-out Per 
     Borrower for a Loan Made After January 6, 1988.--
       ``(1) In general.--The Secretary may provide for each 
     borrower not more than 1 write-down or net recovery buy-out 
     under this section with respect to all loans made to the 
     borrower after January 6, 1988.
       ``(2) Special rule.--For purposes of paragraph (1), the 
     Secretary shall treat any loan made on or before January 6, 
     1988, with respect to which a restructuring, write-down, or 
     net recovery buy-out is provided under this section after 
     January 6, 1988, as a loan made after January 6, 1988.
       ``(m) Liquidation of Assets.--The Secretary may not use the 
     authority provided by this section to reduce or terminate any 
     portion of the debt of the borrower that the borrower could 
     pay through the liquidation of assets (or through the payment 
     of the loan value of the assets, if the loan value is greater 
     than the liquidation value) described in subsection 
     (c)(2)(A)(ii).
       ``(n) Lifetime Limitation on Debt Forgiveness Per 
     Borrower.--The Secretary may provide each borrower not more 
     than $300,000 in debt forgiveness under this section.

[[Page S4047]]

     ``SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

       ``(a) Definition of Mobilized Military Reservist.--In this 
     section, the term `mobilized military reservist' means an 
     individual who--
       ``(1) is on active duty under section 688, 12301(a), 
     12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of 
     title 10, United States Code, or any other provision of law 
     during a war or during a national emergency declared by the 
     President or Congress, regardless of the location at which 
     the active duty service is performed; or
       ``(2) in the case of a member of the National Guard, is on 
     full-time National Guard duty (as defined in section 
     101(d)(5) of title 10, United States Code) under a call to 
     active service authorized by the President or the Secretary 
     of Defense for a period of more than 30 consecutive days 
     under section 502(f) of title 32, United States Code, for 
     purposes of responding to a national emergency declared by 
     the President and supported by Federal funds.
       ``(b) Forgiveness of Interest Payments Due While Borrower 
     Is a Mobilized Military Reservist.--Any requirement that a 
     borrower of a direct loan made under this subtitle make any 
     interest payment on the loan that would otherwise be required 
     to be made while the borrower is a mobilized military 
     reservist is rescinded.
       ``(c) Deferral of Principal Payments Due While or After 
     Borrower Is a Mobilized Military Reservist.--The due date of 
     any payment of principal on a direct loan made to a borrower 
     under this subtitle that would otherwise be required to be 
     made while or after the borrower is a mobilized military 
     reservist is deferred for a period equal in length to the 
     period for which the borrower is a mobilized military 
     reservist.
       ``(d) Nonaccrual of Interest.--Interest on a direct loan 
     made to a borrower described in this section shall not accrue 
     during the period the borrower is a mobilized military 
     reservist.
       ``(e) Borrower Not Considered to Be Delinquent or Receiving 
     Debt Forgiveness.--Notwithstanding section 3425 or any other 
     provision of this title, a borrower who receives assistance 
     under this section shall not, as a result of the assistance, 
     be considered to be delinquent or receiving debt forgiveness 
     for purposes of receiving a direct or guaranteed loan under 
     this subtitle.

     ``SEC. 3413. INTEREST RATE REDUCTION PROGRAM.

       ``(a) Establishment of Program.--The Secretary shall 
     establish and carry out in accordance with this section an 
     interest rate reduction program for any loan guaranteed under 
     this subtitle.
       ``(b) Entering Into Contracts.--The Secretary shall enter 
     into a contract with, and make payments to, an institution to 
     reduce, during the term of the contract, the interest rate 
     paid by the borrower on the guaranteed loan if--
       ``(1) the borrower--
       ``(A) is unable to obtain credit elsewhere;
       ``(B) is unable to make payments on the loan in a timely 
     manner; and
       ``(C) during the 24-month period beginning on the date on 
     which the contract is entered into, has a total estimated 
     cash income, including all farm and nonfarm income, that will 
     equal or exceed the total estimated cash expenses, including 
     all farm and nonfarm expenses, to be incurred by the borrower 
     during the period; and
       ``(2) during the term of the contract, the lender reduces 
     the annual rate of interest payable on the loan by a minimum 
     percentage specified in the contract.
       ``(c) Payments.--
       ``(1) In general.--Subject to paragraph (2), in return for 
     a contract entered into by a lender under subsection (b) for 
     the reduction of the interest rate paid on a loan, the 
     Secretary shall make payments to the lender in an amount 
     equal to not more than 100 percent of the cost of reducing 
     the annual rate of interest payable on the loan.
       ``(2) Limitation.--Payments under paragraph (1) may not 
     exceed the cost of reducing the rate by more than 400 basis 
     points.
       ``(d) Term.--The term of a contract entered into under this 
     section to reduce the interest rate on a guaranteed loan may 
     not exceed the outstanding term of the loan.
       ``(e) Condition on Foreclosure.--Notwithstanding any other 
     law, any contract of guarantee on a farm loan entered into 
     under this subtitle shall contain a condition that the lender 
     of the loan may not initiate a foreclosure action on the loan 
     until 60 days after a determination is made with respect to 
     the eligibility of the borrower to participate in the program 
     established under this section.

     ``SEC. 3414. HOMESTEAD PROPERTY.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Small Business Administration.
       ``(2) Borrower-owner.--The term `borrower-owner' means--
       ``(A) a borrower-owner of a loan made or guaranteed by the 
     Secretary or the Administrator who meets the eligibility 
     requirements of subsection (c)(1); or
       ``(B) in a case in which an owner of homestead property 
     pledged the property to secure the loan and the owner is 
     different than the borrower, the owner.
       ``(3) Farm program loan.--The term `farm program loan' 
     means a loan made by the Administrator under the Small 
     Business Act (15 U.S.C. 631 et seq.) for any of the purposes 
     authorized for loans under chapter 1 or 2.
       ``(4) Homestead property.--The term `homestead property' 
     means--
       ``(A) the principal residence and adjoining property 
     possessed and occupied by a borrower-owner, including a 
     reasonable number of farm outbuildings located on the 
     adjoining land that are useful to any occupant of the 
     homestead; and
       ``(B) not more than 10 acres of adjoining land that is used 
     to maintain the family of the borrower-owner.
       ``(b) Retention of Homestead Property.--
       ``(1) In general.--The Secretary or the Administrator 
     shall, on application by a borrower-owner who meets the 
     eligibility requirements of subsection (c)(1), permit the 
     borrower-owner to retain possession and occupancy of 
     homestead property under the terms set forth, and until the 
     action described in this section has been completed, if--
       ``(A) the Secretary forecloses or takes into inventory 
     property securing a loan made under this subtitle;
       ``(B) the Administrator forecloses or takes into inventory 
     property securing a farm program loan made under the Small 
     Business Act (15 U.S.C. 631 et seq.); or
       ``(C) the borrower-owner of a loan made by the Secretary or 
     the Administrator files a petition in bankruptcy that results 
     in the conveyance of the homestead property to the Secretary 
     or the Administrator, or agrees to voluntarily liquidate or 
     convey the property in whole or in part.
       ``(2) Period of occupancy.--Subject to subsection (c), the 
     Secretary or the Administrator shall not grant a period of 
     occupancy of less than 3 nor more than 5 years.
       ``(c) Eligibility.--
       ``(1) In general.--To be eligible to occupy homestead 
     property, a borrower-owner of a loan made by the Secretary or 
     the Administrator shall--
       ``(A) apply for the occupancy not later than 30 days after 
     the property is acquired by the Secretary or Administrator;
       ``(B) have received from farming operations gross farm 
     income that is reasonably commensurate with--
       ``(i) the size and location of the farming unit of the 
     borrower-owner; and
       ``(ii) local agricultural conditions (including natural and 
     economic conditions), during at least 2 calendar years of the 
     6-year period preceding the calendar year in which the 
     application is made;
       ``(C) have received from farming operations at least 60 
     percent of the gross annual income of the borrower-owner and 
     any spouse of the borrower-owner during at least 2 calendar 
     years of the 6-year period described in subparagraph (B);
       ``(D) have continuously occupied the homestead property 
     during the 6-year period described in subparagraph (B), 
     except that the requirement of this subparagraph may be 
     waived if a borrower-owner, due to circumstances beyond the 
     control of the borrower-owner, had to leave the homestead 
     property for a period of time not to exceed 12 months during 
     the 6-year period;
       ``(E) during the period of occupancy of the homestead 
     property, pay a reasonable sum as rent for the property to 
     the Secretary or the Administrator in an amount substantially 
     equivalent to rents charged for similar residential 
     properties in the area in which the homestead property is 
     located;
       ``(F) during the period of the occupancy of the homestead 
     property, maintain the property in good condition; and
       ``(G) meet such other reasonable and necessary terms and 
     conditions as the Secretary may require.
       ``(2) Definition of farming operations.--In subparagraphs 
     (B) and (C) of paragraph (1), the term `farming operations' 
     includes rent paid by a lessee of agricultural land during a 
     period in which the borrower-owner, due to circumstances 
     beyond the control of the borrower-owner, is unable to 
     actively farm the land.
       ``(3) Termination of rights.--
       ``(A) In general.--For purposes of paragraph (1)(E), the 
     failure of the borrower-owner to make a timely rental payment 
     shall constitute cause for the termination of all rights of 
     the borrower-owner to possession and occupancy of the 
     homestead property under this section.
       ``(B) Procedure for termination.--In effecting a 
     termination under subparagraph (A), the Secretary shall--
       ``(i) afford the borrower-owner or lessee the notice and 
     hearing procedural rights described in subtitle H of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6991 et seq.); and
       ``(ii) comply with any applicable State and local law 
     governing eviction of a person from residential property.
       ``(4) Rights of borrower-owner.--
       ``(A) Period of occupancy.--Subject to subsection (b)(2), 
     the period of occupancy allowed the borrower-owner of 
     homestead property under this section shall be the period 
     requested in writing by the borrower-owner.
       ``(B) Right to reacquire.--
       ``(i) In general.--During the period the borrower-owner 
     occupies the homestead property, the borrower-owner shall 
     have a right to reacquire the homestead property on such 
     terms and conditions as the Secretary shall determine.
       ``(ii) Socially disadvantaged borrower-owner.--During the 
     period of occupancy of a

[[Page S4048]]

     borrower-owner who is a socially disadvantaged farmer, the 
     borrower-owner or a member of the immediate family of the 
     borrower-owner shall have a right of first refusal to 
     reacquire the homestead property on such terms and conditions 
     as the Secretary shall determine.
       ``(iii) Independent appraisal.--The Secretary may not 
     demand a payment for the homestead property that is in excess 
     of the current market value of the homestead property as 
     established by an independent appraisal.
       ``(iv) Conduct of appraisal.--An independent appraisal 
     under clause (iii) shall be conducted by an appraiser 
     selected by the borrower-owner, or, in the case of a 
     borrower-owner who is a socially disadvantaged farmer, the 
     immediate family member of the borrower-owner, from a list of 
     3 appraisers approved by the county supervisor.
       ``(5) Transfer of rights.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no right of a borrower-owner under this section, and no 
     agreement entered into between the borrower-owner and the 
     Secretary for occupancy of the homestead property, shall be 
     transferable or assignable by the borrower-owner or by 
     operation of law.
       ``(B) Death or incompetency.--In the case of death or 
     incompetency of the borrower-owner, the right and agreement 
     shall be transferable to a spouse of the borrower-owner if 
     the spouse agrees to comply with any terms and conditions of 
     the right or agreement.
       ``(6) Notification.--Not later than the date of acquisition 
     of the property securing a loan made under this title, the 
     Secretary shall notify the borrower-owner of the property of 
     the availability of homestead protection rights under this 
     section.
       ``(d) End of Period of Occupancy.--
       ``(1) In general.--At the end of the period of occupancy 
     allowed a borrower-owner under subsection (c), the Secretary 
     or the Administrator shall grant to the borrower-owner a 
     right of first refusal to reacquire the homestead property on 
     such terms and conditions (which may include payment of 
     principal in installments) as the Secretary or the 
     Administrator shall determine.
       ``(2) Terms and conditions.--The terms and conditions 
     granted under paragraph (1) may not be less favorable than 
     those offered by the Secretary or Administrator or intended 
     by the Secretary or Administrator to be offered to any other 
     buyer.
       ``(e) Maximum Payment of Principal.--
       ``(1) In general.--At the time a reacquisition agreement is 
     entered into, the Secretary or the Administrator may not 
     demand a total payment of principal that is in excess of the 
     value of the homestead property.
       ``(2) Determination of value.--To the maximum extent 
     practicable, the value of the homestead property shall be 
     determined by an independent appraisal made during the 180 
     day period beginning on the date of receipt of the 
     application of the borrower-owner to retain possession and 
     occupancy of the homestead property.
       ``(f) Title Not Needed to Enter Into Contracts.--The 
     Secretary may enter into a contract authorized by this 
     section before the Secretary acquires title to the homestead 
     property that is the subject of the contract.
       ``(g) State Law Prevails.--In the event of a conflict 
     between this section and a provision of State law relating to 
     the right of a borrower-owner to designate for separate sale 
     or redeem part or all of the real property securing a loan 
     foreclosed on by a lender to the borrower-owner, the 
     provision of State law shall prevail.

     ``SEC. 3415. TRANSFER OF INVENTORY LAND.

       ``(a) In General.--Subject to subsection (b), the Secretary 
     may transfer to a Federal or State agency, for conservation 
     purposes, any real property, or interest in real property, 
     administered by the Secretary under this subtitle--
       ``(1) with respect to which the rights of all prior owners 
     and operators have expired;
       ``(2) that is eligible to be disposed of in accordance with 
     section 3409; and
       ``(3) that--
       ``(A) has marginal value for agricultural production;
       ``(B) is environmentally sensitive; or
       ``(C) has special management importance.
       ``(b) Conditions.--The Secretary may not transfer any 
     property or interest in property under subsection (a) 
     unless--
       ``(1) at least 2 public notices are given of the transfer;
       ``(2) if requested, at least 1 public meeting is held prior 
     to the transfer; and
       ``(3) the Governor and at least 1 elected county official 
     of the State and county in which the property is located are 
     consulted prior to the transfer.

     ``SEC. 3416. TARGET PARTICIPATION RATES.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall establish annual 
     target participation rates, on a county-wide basis, that 
     shall ensure that members of socially disadvantaged groups 
     shall--
       ``(A) receive loans made or guaranteed under chapter 1; and
       ``(B) have the opportunity to purchase or lease farmland 
     acquired by the Secretary under this subtitle.
       ``(2) Group population.--Except as provided in paragraph 
     (3), in establishing the target rates, the Secretary shall 
     take into consideration--
       ``(A) the portion of the population of the county made up 
     of the socially disadvantaged groups; and
       ``(B) the availability of inventory farmland in the county.
       ``(3) Gender.--In the case of gender, target participation 
     rates shall take into consideration the number of current and 
     potential socially disadvantaged farmers in a State in 
     proportion to the total number of farmers in the State.
       ``(b) Reservation and Allocation.--
       ``(1) Reservation.--To the maximum extent practicable, the 
     Secretary shall reserve sufficient loan funds made available 
     under chapter 1 for use by members of socially disadvantaged 
     groups identified under target participation rates 
     established under subsection (a).
       ``(2) Allocation.--The Secretary shall allocate the loans 
     on the basis of the proportion of members of socially 
     disadvantaged groups in a county and the availability of 
     inventory farmland, with the greatest amount of loan funds 
     being distributed in the county with the greatest proportion 
     of socially disadvantaged group members and the greatest 
     quantity of available inventory farmland.
       ``(3) Indian reservations.--In distributing loan funds in 
     counties within the boundaries of an Indian reservation, the 
     Secretary shall allocate the funds on a reservation-wide 
     basis.
       ``(c) Operating Loans.--
       ``(1) Establishment.--
       ``(A) In general.--The Secretary shall establish annual 
     target participation rates that shall ensure that socially 
     disadvantaged farmers receive loans made or guaranteed under 
     chapter 2.
       ``(B) Considerations.--In establishing the target rates, 
     the Secretary shall consider the number of socially 
     disadvantaged farmers in a State in proportion to the total 
     number of farmers in the State.
       ``(2) Reservation and allocation.--
       ``(A) In general.--To the maximum extent practicable, the 
     Secretary shall reserve and allocate the proportion of the 
     loan funds of each State made available under chapter 2 that 
     is equal to the target participation rate of the State for 
     use by the socially disadvantaged farmers in the State.
       ``(B) Distribution.--To the maximum extent practicable, the 
     Secretary shall distribute the total loan funds reserved 
     under subparagraph (A) on a county-by-county basis according 
     to the number of socially disadvantaged farmers in the 
     county.
       ``(C) Reallocation of unused funds.--Any funds reserved and 
     allocated under this paragraph but not used within a State 
     shall, to the extent necessary to satisfy pending 
     applications under this title, be available for use by 
     socially disadvantaged farmers in other States, as determined 
     by the Secretary, and any remaining funds shall be 
     reallocated within the State.
       ``(d) Report.--The Secretary shall prepare and submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate a report that describes the annual target 
     participation rates and the success in meeting the rates.
       ``(e) Implementation Consistent With Supreme Court 
     Holding.--Not later than 180 days after April 4, 1996, the 
     Secretary shall ensure that the implementation of this 
     section is consistent with the holding of the Supreme Court 
     in Adarand Constructors, Inc. v. Federico Pena, Secretary of 
     Transportation, 115 S. Ct. 2097 (1995).

     ``SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR CLAIMS BY 
                   GUARANTEED LENDER.

       ``(a) Loss by Lender.--If the lender of a guaranteed farmer 
     program loan takes any action described in section 3903(a)(4) 
     with respect to the loan and the Secretary approves the 
     action, for purposes of the guarantee, the lender shall be 
     treated as having sustained a loss equal to the amount by 
     which--
       ``(1) the outstanding balance of the loan immediately 
     before the action; exceeds
       ``(2) the outstanding balance of the loan immediately after 
     the action.
       ``(b) Net Present Value of Loan.--The Secretary shall 
     approve the taking of an action described in section 
     3903(a)(4) by the lender of a guaranteed farmer program loan 
     with respect to the loan if the action reduces the net 
     present value of the loan to an amount equal to not less than 
     the greater of--
       ``(1) the greatest net present value of a loan the borrower 
     could reasonably be expected to repay; and
       ``(2) the difference between--
       ``(A) the greatest amount that the lender of the loan could 
     reasonably expect to recover from the borrower through 
     bankruptcy, or liquidation of the property securing the loan; 
     and
       ``(B) all reasonable and necessary costs and expenses that 
     the lender of the loan could reasonably expect to incur to 
     preserve or dispose of the property (including all associated 
     legal and property management costs) in the course of such a 
     bankruptcy or liquidation.
       ``(c) No Limitation on Authority.--This section shall not 
     limit the authority of the Secretary to enter into a shared 
     appreciation arrangement with a borrower under section 
     3411(e).

     ``SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BORROWERS.

       ``The Secretary may not make or guarantee any farmer 
     program loan to a farm borrower on the condition that the 
     borrower waive any right under the mediation program of any 
     State.

[[Page S4049]]

     ``SEC. 3419. BORROWER TRAINING.

       ``(a) In General.--The Secretary shall contract to provide 
     educational training to all borrowers of direct loans made 
     under this subtitle in financial and farm management concepts 
     associated with commercial farming.
       ``(b) Contract.--
       ``(1) In general.--The Secretary may contract with a State 
     or private provider of farm management and credit counseling 
     services (including a community college, the extension 
     service of a State, a State department of agriculture, or a 
     nonprofit organization) to carry out this section.
       ``(2) Consultation.--The Secretary may consult with the 
     chief executive officer of a State concerning the identity of 
     the contracting organization and the process for contracting.
       ``(c) Eligibility for Loans.--
       ``(1) In general.--Subject to paragraph (2), to be eligible 
     to obtain a direct or guaranteed loan under this subtitle, a 
     borrower shall be required to obtain management assistance 
     under this section, appropriate to the management ability of 
     the borrower during the determination of eligibility for the 
     loan.
       ``(2) Loan conditions.--The need of a borrower who 
     satisfies the criteria set out in section 3101(b)(1)(B) or 
     3201(b)(1)(B) for management assistance under this section 
     shall not be cause for denial of eligibility of the borrower 
     for a direct or guaranteed loan under this subtitle.
       ``(d) Guidelines and Curriculum.--The Secretary shall issue 
     regulations establishing guidelines and curriculum for the 
     borrower training program established under this section.
       ``(e) Payment.--A borrower--
       ``(1) shall pay for training received under this section; 
     and
       ``(2) may use funds from operating loans made under chapter 
     2 to pay for the training.
       ``(f) Waivers.--
       ``(1) In general.--The Secretary may waive the requirements 
     of this section for an individual borrower on a determination 
     that the borrower demonstrates adequate knowledge in areas 
     described in this section.
       ``(2) Criteria.--The Secretary shall establish criteria 
     providing for the application of paragraph (1) consistently 
     in all counties nationwide.

     ``SEC. 3420. LOAN ASSESSMENTS.

       ``(a) In General.--After an applicant is determined to be 
     eligible for assistance under this subtitle, the Secretary 
     shall evaluate, in accordance with regulations issued by the 
     Secretary, the farming plan and financial situation of each 
     qualified farmer applicant.
       ``(b) Determinations.--In evaluating the farming plan and 
     financial situation of an applicant under this section, the 
     Secretary shall determine--
       ``(1) the amount that the applicant needs to borrow to 
     carry out the proposed farming plan;
       ``(2) the rate of interest that the applicant would need to 
     be able to cover expenses and build an adequate equity base;
       ``(3) the goals of the proposed farming plan of the 
     applicant;
       ``(4) the financial viability of the plan and any changes 
     that are necessary to make the plan viable; and
       ``(5) whether assistance is necessary under this title and, 
     if so, the amount of the assistance.
       ``(c) Contract.--The Secretary may contract with a third 
     party (including an entity that is eligible to provide 
     borrower training under section 3419(b)) to conduct a loan 
     assessment under this section.
       ``(d) Review of Loans.--
       ``(1) In general.--Loan assessments conducted under this 
     section shall include biannual review of direct loans, and 
     periodic review (as determined necessary by the Secretary) of 
     guaranteed loans, made under this title to assess the 
     progress of a borrower in meeting the goals for the farm 
     operation.
       ``(2) Contracts.--The Secretary may contract with an entity 
     that is eligible to provide borrower training under section 
     3419(b) to conduct a loan review under paragraph (1).
       ``(3) Problem assessments.--If a borrower is delinquent in 
     payments on a direct or guaranteed loan made under this 
     title, the Secretary or the contracting entity shall 
     determine the cause of, and action necessary to correct, the 
     delinquency.
       ``(e) Guidelines.--The Secretary shall issue regulations 
     providing guidelines for loan assessments conducted under 
     this section.

     ``SEC. 3421. SUPERVISED CREDIT.

       ``The Secretary shall provide adequate training to 
     employees of the Farm Service Agency on credit analysis and 
     financial and farm management--
       ``(1) to better acquaint the employees with what 
     constitutes adequate financial data on which to base a direct 
     or guaranteed loan approval decision; and
       ``(2) to ensure proper supervision of farmer program loans.

     ``SEC. 3422. MARKET PLACEMENT.

       ``The Secretary shall establish a market placement program 
     for a qualified beginning farmer and any other borrower of 
     farmer program loans that the Secretary believes has a 
     reasonable chance of qualifying for commercial credit with a 
     guarantee provided under this subtitle.

     ``SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF BORROWER.

       ``The Secretary shall classify, by gender, records of 
     applicants for loans and loan guarantees under this subtitle.

     ``SEC. 3424. CROP INSURANCE REQUIREMENT.

       ``(a) In General.--As a condition of obtaining any benefit 
     (including a direct loan, loan guarantee, or payment) 
     described in subsection (b), a borrower shall be required to 
     obtain at least catastrophic risk protection insurance 
     coverage under section 508 of the Federal Crop Insurance Act 
     (7 U.S.C. 1508) for the crop and crop year for which the 
     benefit is sought, if the coverage is offered by the Federal 
     Crop Insurance Corporation.
       ``(b) Applicable Benefits.--Subsection (a) shall apply to--
       ``(1) a farm ownership loan under section 3102;
       ``(2) an operating loan under section 3202; and
       ``(3) an emergency loan under section 3301.

     ``SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS.

       ``(a) Delinquent Borrowers Prohibited From Obtaining Direct 
     Operating Loans.--The Secretary may not make a direct 
     operating loan under chapter 2 to a borrower who is 
     delinquent on any loan made or guaranteed under this 
     subtitle.
       ``(b) Loans Prohibited for Borrowers That Have Received 
     Debt Forgiveness.--
       ``(1) Prohibitions.--Except as provided in paragraph (2)--
       ``(A) the Secretary may not make a loan under this subtitle 
     to a borrower that has received debt forgiveness on a loan 
     made or guaranteed under this subtitle; and
       ``(B) the Secretary may not guarantee a loan under this 
     subtitle to a borrower that has received--
       ``(i) debt forgiveness after April 4, 1996, on a loan made 
     or guaranteed under this subtitle; or
       ``(ii) received debt forgiveness on more than 3 occasions 
     on or before April 4, 1996.
       ``(2) Exceptions.--
       ``(A) In general.--The Secretary may make a direct or 
     guaranteed farm operating loan for paying annual farm 
     operating expenses of a borrower who--
       ``(i) was restructured with a write-down under section 
     3411;
       ``(ii) is current on payments under a confirmed 
     reorganization plan under chapters 1 11, 12, or 13 of title 
     11 of the United States Code; or
       ``(iii) received debt forgiveness on not more than 1 
     occasion resulting directly and primarily from a major 
     disaster or emergency designated by the President on or after 
     April 4, 1996, under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(B) Emergency loans.--The Secretary may make an emergency 
     loan under section 3301 to a borrower that--
       ``(i) on or before April 4, 1996, received not more than 1 
     debt forgiveness on a loan made or guaranteed under this 
     subtitle; and
       ``(ii) after April 4, 1996, has not received debt 
     forgiveness on a loan made or guaranteed under this subtitle.
       ``(c) No More Than 1 Debt Forgiveness for a Borrower on a 
     Direct Loan.--The Secretary may not provide to a borrower 
     debt forgiveness on a direct loan made under this subtitle if 
     the borrower has received debt forgiveness on another direct 
     loan made under this subtitle.

     ``SEC. 3426. SHORT FORM CERTIFICATION OF FARM PROGRAM 
                   BORROWER COMPLIANCE.

       ``The Secretary shall develop and use a consolidated short 
     form for farmer program loan borrowers to use in certifying 
     compliance with any applicable provision of law (including a 
     regulation) that serves as an eligibility prerequisite for a 
     loan made under this subtitle.

     ``SEC. 3427. UNDERWRITING FORMS AND STANDARDS.

       ``In the administration of this subtitle, the Secretary 
     shall, to the extent practicable, use underwriting forms, 
     standards, practices, and terminology similar to the forms, 
     standards, practices, and terminology used by lenders in the 
     private sector.

     ``SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOPMENT ACCOUNTS 
                   PILOT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Demonstration program.--The term `demonstration 
     program' means a demonstration program carried out by a 
     qualified entity under the pilot program established in 
     subsection (b)(1).
       ``(2) Eligible participant.--The term `eligible 
     participant' means a qualified beginning farmer that--
       ``(A) lacks significant financial resources or assets; and
       ``(B) has an income that is less than--
       ``(i) 80 percent of the median income of the State in which 
     the farmer resides; or
       ``(ii) 200 percent of the most recent annual Federal 
     Poverty Income Guidelines published by the Department of 
     Health and Human Services for the State.
       ``(3) Individual development account.--The term `individual 
     development account' means a savings account described in 
     subsection (b)(4)(A).
       ``(4) Qualified entity.--
       ``(A) In general.--The term `qualified entity' means--
       ``(i) 1 or more organizations--

       ``(I) described in section 501(c)(3) of the Internal 
     Revenue Code of 1986; and
       ``(II) exempt from taxation under section 501(a) of such 
     Code; or

       ``(ii) a State, local, or tribal government submitting an 
     application jointly with an organization described in clause 
     (i).

[[Page S4050]]

       ``(B) No prohibition on collaboration.--An organization 
     described in subparagraph (A)(i) may collaborate with a 
     financial institution or for-profit community development 
     corporation to carry out the purposes of this section.
       ``(b) Pilot Program.--
       ``(1) In general.--The Secretary shall establish a pilot 
     program to be known as the `New Farmer Individual Development 
     Accounts Pilot Program' under which the Secretary shall work 
     through qualified entities to establish demonstration 
     programs--
       ``(A) of at least 5 years in duration; and
       ``(B) in at least 15 States.
       ``(2) Coordination.--The Secretary shall operate the pilot 
     program through and in coordination with the farmer program 
     loans of the Farm Service Agency.
       ``(3) Reserve funds.--
       ``(A) In general.--A qualified entity carrying out a 
     demonstration program under this section shall establish a 
     reserve fund consisting of a non-Federal match of 50 percent 
     of the total amount of the grant awarded to the demonstration 
     program under this section.
       ``(B) Federal funds.--After the qualified entity has 
     deposited the non-Federal matching funds described in 
     subparagraph (A) in the reserve fund, the Secretary shall 
     provide the total amount of the grant awarded under this 
     section to the demonstration program for deposit in the 
     reserve fund.
       ``(C) Use of funds.--Of the funds deposited under 
     subparagraph (B) in the reserve fund established for a 
     demonstration program, the qualified entity carrying out the 
     demonstration program--
       ``(i) may use up to 10 percent for administrative expenses; 
     and
       ``(ii) shall use the remainder in making matching awards 
     described in paragraph (4)(B)(ii)(I).
       ``(D) Interest.--Any interest earned on amounts in a 
     reserve fund established under subparagraph (A) may be used 
     by the qualified entity as additional matching funds for, or 
     to administer, the demonstration program.
       ``(E) Guidance.--The Secretary shall issue guidance 
     regarding the investment requirements of reserve funds 
     established under this paragraph.
       ``(F) Reversion.--On the date on which all funds remaining 
     in any individual development account established by a 
     qualified entity have reverted under paragraph (5)(B)(ii) to 
     the reserve fund established by the qualified entity, there 
     shall revert to the Treasury of the United States a 
     percentage of the amount (if any) in the reserve fund equal 
     to--
       ``(i) the amount of Federal funds deposited in the reserve 
     fund under subparagraph (B) that were not used for 
     administrative expenses; divided by
       ``(ii) the total amount of funds deposited in the reserve 
     fund.
       ``(4) Individual development accounts.--
       ``(A) In general.--A qualified entity receiving a grant 
     under this section shall establish and administer individual 
     development accounts for eligible participants.
       ``(B) Contract requirements.--To be eligible to receive 
     funds under this section from a qualified entity, an eligible 
     participant shall enter into a contract with only 1 qualified 
     entity under which--
       ``(i) the eligible participant agrees--

       ``(I) to deposit a certain amount of funds of the eligible 
     participant in a personal savings account, as prescribed by 
     the contractual agreement between the eligible participant 
     and the qualified entity;
       ``(II) to use the funds described in subclause (I) only for 
     1 or more eligible expenditures described in paragraph 
     (5)(A); and
       ``(III) to complete financial training; and

       ``(ii) the qualified entity agrees--

       ``(I) to deposit, not later than 1 month after an amount is 
     deposited pursuant to clause (i)(I), at least a 100-percent, 
     and up to a 200-percent, match of that amount into the 
     individual development account established for the eligible 
     participant; and
       ``(II) with uses of funds proposed by the eligible 
     participant.

       ``(C) Limitation.--
       ``(i) In general.--A qualified entity administering a 
     demonstration program under this section may provide not more 
     than $6,000 for each fiscal year in matching funds to the 
     individual development account established by the qualified 
     entity for an eligible participant.
       ``(ii) Treatment of amount.--An amount provided under 
     clause (i) shall not be considered to be a gift or loan for 
     mortgage purposes.
       ``(5) Eligible expenditures.--
       ``(A) In general.--An eligible expenditure described in 
     this subparagraph is an expenditure--
       ``(i) to purchase farmland or make a down payment on an 
     accepted purchase offer for farmland;
       ``(ii) to make mortgage payments on farmland purchased 
     pursuant to clause (i), for up to 180 days after the date of 
     the purchase;
       ``(iii) to purchase breeding stock, fruit or nut trees, or 
     trees to harvest for timber; and
       ``(iv) for other similar expenditures, as determined by the 
     Secretary.
       ``(B) Timing.--
       ``(i) In general.--An eligible participant may make an 
     eligible expenditure at any time during the 2-year period 
     beginning on the date on which the last matching funds are 
     provided under paragraph (4)(B)(ii)(I) to the individual 
     development account established for the eligible participant.
       ``(ii) Unexpended funds.--At the end of the period 
     described in clause (i), any funds remaining in an individual 
     development account established for an eligible participant 
     shall revert to the reserve fund of the demonstration program 
     under which the account was established.
       ``(c) Applications.--
       ``(1) In general.--A qualified entity that seeks to carry 
     out a demonstration program under this section may submit to 
     the Secretary an application at such time, in such form, and 
     containing such information as the Secretary may prescribe.
       ``(2) Criteria.--In considering whether to approve an 
     application to carry out a demonstration program under this 
     section, the Secretary shall assess--
       ``(A) the degree to which the demonstration program 
     described in the application is likely to aid eligible 
     participants in successfully pursuing new farming 
     opportunities;
       ``(B) the experience and ability of the qualified entity to 
     responsibly administer the demonstration program;
       ``(C) the experience and ability of the qualified entity in 
     recruiting, educating, and assisting eligible participants to 
     increase economic independence and pursue or advance farming 
     opportunities;
       ``(D) the aggregate amount of direct funds from non-Federal 
     public sector and private sources that are formally committed 
     to the demonstration program as matching contributions;
       ``(E) the adequacy of the plan of the qualified entity to 
     provide information relevant to an evaluation of the 
     demonstration program; and
       ``(F) such other factors as the Secretary considers to be 
     appropriate.
       ``(3) Preferences.--In considering an application to 
     conduct a demonstration program under this section, the 
     Secretary shall give preference to an application from a 
     qualified entity that demonstrates--
       ``(A) a track record of serving clients targeted by the 
     program, including, as appropriate, socially disadvantaged 
     farmers; and
       ``(B) expertise in dealing with financial management 
     aspects of farming.
       ``(4) Approval.--Not later than 1 year after the date of 
     enactment of this section, in accordance with this section, 
     the Secretary shall, on a competitive basis, approve such 
     applications to conduct demonstration programs as the 
     Secretary considers appropriate.
       ``(5) Term of authority.--If the Secretary approves an 
     application to carry out a demonstration program, the 
     Secretary shall authorize the applicant to carry out the 
     project for a period of 5 years, plus an additional 2 years 
     to make eligible expenditures in accordance with subsection 
     (b)(5)(B).
       ``(d) Grant Authority.--
       ``(1) In general.--The Secretary shall make a grant to a 
     qualified entity authorized to carry out a demonstration 
     program under this section.
       ``(2) Maximum amount of grants.--The aggregate amount of 
     grant funds provided to a demonstration program carried out 
     under this section shall not exceed $250,000.
       ``(3) Timing of grant payments.--The Secretary shall pay 
     the amounts awarded under a grant made under this section--
       ``(A) on the awarding of the grant; or
       ``(B) pursuant to such payment plan as the qualified entity 
     may specify.
       ``(e) Reports.--
       ``(1) Annual progress reports.--
       ``(A) In general.--Not later than 60 days after the end of 
     the calendar year in which the Secretary authorizes a 
     qualified entity to carry out a demonstration program under 
     this section, and annually thereafter until the conclusion of 
     the demonstration program, the qualified entity shall prepare 
     an annual report that includes, for the period covered by the 
     report--
       ``(i) an evaluation of the progress of the demonstration 
     program;
       ``(ii) information about the demonstration program, 
     including the eligible participants and the individual 
     development accounts that have been established; and
       ``(iii) such other information as the Secretary may 
     require.
       ``(B) Submission of reports.--A qualified entity shall 
     submit each report required under subparagraph (A) to the 
     Secretary.
       ``(2) Reports by the secretary.--Not later than 1 year 
     after the date on which all demonstration programs under this 
     section are concluded, the Secretary shall submit to Congress 
     a final report that describes the results and findings of all 
     reports and evaluations carried out under this section.
       ``(f) Annual Review.--The Secretary may conduct an annual 
     review of the financial records of a qualified entity--
       ``(1) to assess the financial soundness of the qualified 
     entity; and
       ``(2) to determine the use of grant funds made available to 
     the qualified entity under this section.
       ``(g) Regulations.--In carrying out this section, the 
     Secretary may promulgate regulations to ensure that the 
     program includes provisions for--
       ``(1) the termination of demonstration programs;
       ``(2) control of the reserve funds in the case of such a 
     termination;
       ``(3) transfer of demonstration programs to other qualified 
     entities; and
       ``(4) remissions from a reserve fund to the Secretary in a 
     case in which a demonstration program is terminated without 
     transfer to a new qualified entity.

[[Page S4051]]

       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2012 through 2017.

     ``SEC. 3429. FARMER LOAN PILOT PROJECTS.

       ``(a) In General.--The Secretary may conduct pilot projects 
     of limited scope and duration that are consistent with this 
     subtitle to evaluate processes and techniques that may 
     improve the efficiency and effectiveness of the programs 
     carried out under this subtitle
       ``(b) Notification.--The Secretary shall--
       ``(1) not less than 60 days before the date on which the 
     Secretary initiates a pilot project under subsection (a), 
     submit notice of the proposed pilot project to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate; and
       ``(2) consider any recommendations or feedback provided to 
     the Secretary in response to the notice provided under 
     paragraph (1).

     ``SEC. 3430. AUTHORIZATION OF APPROPRIATIONS AND ALLOCATION 
                   OF FUNDS.

       ``(a) Authorization for Loans.--
       ``(1) In general.--The Secretary may make or guarantee 
     loans under chapters 1 and 2 from the Agricultural Credit 
     Insurance Fund for not more than $4,226,000,000 for each of 
     fiscal years 2012 through 2017, of which, for each fiscal 
     year--
       ``(A) $1,200,000,000 shall be for direct loans, of which--
       ``(i) $350,000,000 shall be for farm ownership loans; and
       ``(ii) $850,000,000 shall be for operating loans; and
       ``(B) $3,026,000,000 shall be for guaranteed loans, of 
     which--
       ``(i) $1,000,000,000 shall be for guarantees of farm 
     ownership loans; and
       ``(ii) $2,026,000,000 shall be for guarantees of operating 
     loans.
       ``(2) Beginning farmers.--
       ``(A) Direct loans.--
       ``(i) Farm ownership loans.--

       ``(I) In general.--Of the amounts made available under 
     paragraph (1) for direct farm ownership loans, the Secretary 
     shall reserve an amount that is not less than 75 percent of 
     the total amount for qualified beginning farmers.
       ``(II) Down payment loans; joint financing arrangements.--
     Of the amounts reserved for a fiscal year under subclause 
     (I), the Secretary shall reserve an amount not less than \2/
     3\ of the amount for the down payment loan program under 
     section 3107 and joint financing arrangements under section 
     3105 until April 1 of the fiscal year.

       ``(ii) Operating loans.--Of the amounts made available 
     under paragraph (1) for direct operating loans, the Secretary 
     shall reserve for qualified beginning farmers for each of 
     fiscal years 2012 through 2017, an amount that is not less 
     than 50 percent of the total amount.
       ``(iii) Funds reserved until september 1.--Except as 
     provided in clause (i)(II), funds reserved for qualified 
     beginning farmers under this subparagraph for a fiscal year 
     shall be reserved only until September 1 of the fiscal year.
       ``(B) Guaranteed loans.--
       ``(i) Farm ownership loans.--Of the amounts made available 
     under paragraph (1) for guarantees of farm ownership loans, 
     the Secretary shall reserve an amount that is not less than 
     40 percent of the total amount for qualified beginning 
     farmers.
       ``(ii) Operating loans.--Of the amounts made available 
     under paragraph (1) for guarantees of operating loans, the 
     Secretary shall reserve 40 percent for qualified beginning 
     farmers.
       ``(iii) Funds reserved until april 1.--Funds reserved for 
     qualified beginning farmers under this subparagraph for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.
       ``(C) Reserved funds for all qualified beginning farmers.--
     If a qualified beginning farmer meets the eligibility 
     criteria for receiving a direct or guaranteed loan under 
     section 3101, 3107, or 3201, the Secretary shall make or 
     guarantee the loan if sufficient funds reserved under this 
     paragraph are available to make or guarantee the loan.
       ``(3) Transfer for down payment loans.--
       ``(A) In general.--Subject to subparagraph (B)--
       ``(i) beginning on August 1 of each fiscal year, the 
     Secretary shall use available unsubsidized guaranteed farm 
     operating loan funds to provide direct farm ownership loans 
     approved by the Secretary to qualified beginning farmers 
     under the down payment loan program established under section 
     3107, if sufficient direct farm ownership loan funds are not 
     otherwise available; and
       ``(ii) beginning on September 1 of each fiscal year, the 
     Secretary shall use available unsubsidized guaranteed farm 
     operating loan funds to provide direct farm ownership loans 
     approved by the Secretary to qualified beginning farmers, if 
     sufficient direct farm ownership loan funds are not otherwise 
     available.
       ``(B) Limitation.--The Secretary shall limit the transfer 
     of funds under subparagraph (A) so that all guaranteed farm 
     operating loans that have been approved, or will be approved, 
     by the Secretary during the fiscal year will be made to the 
     extent of available amounts.
       ``(4) Transfer for credit sales of farm inventory 
     property.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     beginning on September 1 of each fiscal year, the Secretary 
     may use available funds made available under chapter 3 for 
     the fiscal year to fund the credit sale of farm real estate 
     in the inventory of the Secretary.
       ``(B) Supplemental appropriations.--The transfer authority 
     provided under subparagraph (A) shall not apply to any funds 
     made available to the Secretary for any fiscal year under an 
     Act making supplemental appropriations.
       ``(C) Limitation.--The Secretary shall limit the transfer 
     of funds under subparagraph (A) so that all emergency 
     disaster loans that have been approved, or will be approved, 
     by the Secretary during the fiscal year will be made to the 
     extent of available amounts.
       ``(5) Availability of funds.--Funds made available to carry 
     out this subtitle shall remain available until expended.
       ``(b) Cost Projections.--
       ``(1) In general.--The Secretary shall develop long-term 
     cost projections for loan program authorizations required 
     under subsection (a).
       ``(2) Analysis.--Each projection under paragraph (1) shall 
     include analyses of--
       ``(A) the long-term costs of the lending levels that the 
     Secretary requests to be authorized under subsection (a); and
       ``(B) the long-term costs for increases in lending levels 
     beyond those requested to be authorized, based on increments 
     of $10,000,000 or such other levels as the Secretary 
     considers appropriate.
       ``(3) Submission to congress.--The Secretary shall submit 
     to the Committees on Agriculture and Appropriations of the 
     House of Representatives and the Committees on Agriculture, 
     Nutrition, and Forestry and Appropriations of the Senate 
     reports containing the long-term cost projections for the 3-
     year period beginning with fiscal year 1983 and each 3-year 
     period thereafter at the time the requests for authorizations 
     for those periods are submitted to Congress.
       ``(c) Low-income, Limited-resource Borrowers.--
       ``(1) Reserve.--Notwithstanding any other provision of law, 
     not less than 25 percent of the loans for farm ownership 
     purposes for each fiscal year under this subtitle shall be 
     for low-income, limited-resource borrowers.
       ``(2) Notification.--The Secretary shall provide 
     notification to farm borrowers under this subtitle in the 
     normal course of loan making and loan servicing operations, 
     of the provisions of this subtitle relating to low-income, 
     limited-resource borrowers and the procedures by which 
     persons may apply for loans under the low-income, limited-
     resource borrower program.''.

                       Subtitle B--Miscellaneous

     SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS.

       Section 506 of the Agricultural Credit Act of 1987 (7 
     U.S.C. 5106) is amended by striking ``2015'' and inserting 
     ``2017''.

     SEC. 5102. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.

       The first section of Public Law 91 229 (25 U.S.C. 488) is 
     amended in subsection (b)(1) by inserting ``or to 
     intermediaries in order to establish revolving loan funds for 
     the purchase of highly fractionated land under that section'' 
     before the period at the end.

     SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS.

       Notwithstanding any other law (including regulations), in 
     making loans under the first section of Public Law 91 229 (25 
     U.S.C. 488), borrowers who are Indian tribes, members of 
     Indian tribes, or tribal corporations shall only be required 
     to obtain 1 appraisal under an appraisal standard recognized 
     as of the date of enactment of this Act by the Secretary or 
     the Secretary of the Interior.

                      TITLE VI--RURAL DEVELOPMENT

     Subtitle A--Reorganization of the Consolidated Farm and Rural 
                            Development Act

     SEC. 6001. REORGANIZATION OF THE CONSOLIDATED FARM AND RURAL 
                   DEVELOPMENT ACT.

       Title III of the Agricultural Act of 1961 (7 U.S.C. 1921 et 
     seq.) is amended to read as follows:

                    ``TITLE III--AGRICULTURAL CREDIT

     ``SEC. 3001. SHORT TITLE; TABLE OF CONTENTS.

       ``(a) Short Title.--This title may be cited as the 
     `Consolidated Farm and Rural Development Act'.
       ``(b) Table of Contents.--The table of contents of this 
     title is as follows:

                    ``TITLE III--AGRICULTURAL CREDIT

``Sec. 3001. Short title; table of contents.
``Sec. 3002. Definitions.

      ``Subtitle A--Farmer Loans, Servicing, and Other Assistance

                   ``Chapter 1--Farm Ownership Loans

``Sec. 3101. Farm ownership loans.
``Sec. 3102. Purposes of loans.
``Sec. 3103. Conservation loan and loan guarantee program.
``Sec. 3104. Loan maximums.
``Sec. 3105. Repayment requirements for farm ownership loans.
``Sec. 3106. Limited-resource loans.
``Sec. 3107. Downpayment loan program.
``Sec. 3108. Beginning farmer and socially disadvantaged farmer 
              contract land sales program.

                      ``Chapter 2--Operating Loans

``Sec. 3201. Operating loans.
``Sec. 3202. Purposes of loans.
``Sec. 3203. Restrictions on loans.
``Sec. 3204. Terms of loans.

                      ``Chapter 3--Emergency Loans

``Sec. 3301. Emergency loans.

[[Page S4052]]

``Sec. 3302. Purposes of loans.
``Sec. 3303. Terms of loans.
``Sec. 3304. Production losses.

              ``Chapter 4--General Farmer Loan Provisions

``Sec. 3401. Agricultural Credit Insurance Fund.
``Sec. 3402. Guaranteed farmer loans.
``Sec. 3403. Provision of information to borrowers.
``Sec. 3404. Notice of loan service programs.
``Sec. 3405. Planting and production history guidelines.
``Sec. 3406. Special conditions and limitations on loans.
``Sec. 3407. Graduation of borrowers.
``Sec. 3408. Debt adjustment and credit counseling.
``Sec. 3409. Security servicing.
``Sec. 3410. Contracts on loan security properties.
``Sec. 3411. Debt restructuring and loan servicing.
``Sec. 3412. Relief for mobilized military reservists from certain 
              agricultural loan obligations.
``Sec. 3413. Interest rate reduction program.
``Sec. 3414. Homestead property.
``Sec. 3415. Transfer of inventory land.
``Sec. 3416. Target participation rates.
``Sec. 3417. Compromise or adjustment of debts or claims by guaranteed 
              lender.
``Sec. 3418. Waiver of mediation rights by borrowers.
``Sec. 3419. Borrower training.
``Sec. 3420. Loan assessments.
``Sec. 3421. Supervised credit.
``Sec. 3422. Market placement.
``Sec. 3423. Recordkeeping of loans by gender of borrower.
``Sec. 3424. Crop insurance requirement.
``Sec. 3425. Loan and loan servicing limitations.
``Sec. 3426. Short form certification of farm program borrower 
              compliance.
``Sec. 3427. Underwriting forms and standards.
``Sec. 3428. Beginning farmer individual development accounts pilot 
              program.
``Sec. 3429. Farmer loan pilot projects.
``Sec. 3430. Authorization of appropriations and allocation of funds.

                    ``Subtitle B--Rural Development

                 ``Chapter 1--Rural Community Programs

``Sec. 3501. Water and waste disposal loans, loan guarantees, and 
              grants.
``Sec. 3502. Community facilities loans, loan guarantees, and grants.
``Sec. 3503. Health care services.

        ``Chapter 2--Rural Business and Cooperative Development

``Sec. 3601. Business programs.
``Sec. 3602. Rural business investment program.

           ``Chapter 3--General Rural Development Provisions

``Sec. 3701. General provisions for loans and grants.
``Sec. 3702. Strategic economic and community development.
``Sec. 3703. Guaranteed rural development loans.
``Sec. 3704. Rural Development Insurance Fund.
``Sec. 3705. Rural economic area partnership zones.
``Sec. 3706. Streamlining applications and improving accessibility of 
              rural development programs.

                 ``Chapter 4--Delta Regional Authority

``Sec. 3801. Definitions.
``Sec. 3802. Delta Regional Authority.
``Sec. 3803. Economic and community development grants.
``Sec. 3804. Supplements to Federal grant programs.
``Sec. 3805. Local development districts; certification and 
              administrative expenses.
``Sec. 3806. Distressed counties and areas and nondistressed counties.
``Sec. 3807. Development planning process.
``Sec. 3808. Program development criteria.
``Sec. 3809. Approval of development plans and projects.
``Sec. 3810. Consent of States.
``Sec. 3811. Records.
``Sec. 3812. Annual report.
``Sec. 3813. Authorization of appropriations.
``Sec. 3814. Termination of authority.

         ``Chapter 5--Northern Great Plains Regional Authority

``Sec. 3821. Definitions.
``Sec. 3822. Northern Great Plains Regional Authority.
``Sec. 3823. Interstate cooperation for economic opportunity and 
              efficiency.
``Sec. 3824. Economic and community development grants.
``Sec. 3825. Supplements to Federal grant programs.
``Sec. 3826. Multistate and local development districts and 
              organizations and Northern Great Plains Inc.
``Sec. 3827. Distressed counties and areas and nondistressed counties.
``Sec. 3828. Development planning process.
``Sec. 3829. Program development criteria.
``Sec. 3830. Approval of development plans and projects.
``Sec. 3831. Consent of States.
``Sec. 3832. Records.
``Sec. 3833. Annual report.
``Sec. 3834. Authorization of appropriations.
``Sec. 3835. Termination of authority.

                    ``Subtitle C--General Provisions

``Sec. 3901. Full faith and credit.
``Sec. 3902. Purchase and sale of guaranteed portions of loans.
``Sec. 3903. Administration.
``Sec. 3904. Loan moratorium and policy on foreclosures.
``Sec. 3905. Oil and gas royalty payments on loans.
``Sec. 3906. Taxation.
``Sec. 3907. Conflicts of interest.
``Sec. 3908. Loan summary statements.
``Sec. 3909. Certified lenders program.
``Sec. 3910. Loans to resident aliens.
``Sec. 3911. Expedited clearing of title to inventory property.
``Sec. 3912. Prohibition on use of loans for certain purposes.
``Sec. 3913. Transfer of land to Secretary.
``Sec. 3914. Competitive sourcing limitations.
``Sec. 3915. Regulations.

     ``SEC. 3002. DEFINITIONS.

       ``In this title (unless the context otherwise requires):
       ``(1) Able to obtain credit elsewhere.--The term `able to 
     obtain credit elsewhere' means able to obtain a loan from a 
     production credit association, a Federal land bank, or other 
     responsible cooperative or private credit source (or, in the 
     case of a borrower under section 3106, the borrower may be 
     able to obtain a loan under section 3101) at reasonable rates 
     and terms, taking into consideration prevailing private and 
     cooperative rates and terms in the community in or near which 
     the applicant resides for loans for similar purposes and 
     periods of time.
       ``(2) Agricultural credit insurance fund.--The term 
     `Agricultural Credit Insurance Fund' means the fund 
     established under section 3401.
       ``(3) Approved lender.--The term `approved lender' means--
       ``(A) a lender approved prior to October 28, 1992, by the 
     Secretary under the approved lender program established by 
     exhibit A to subpart B of part 1980 of title 7, Code of 
     Federal Regulations (as in effect on January 1, 1991); or
       ``(B) a lender certified under section 3909.
       ``(4) Aquaculture.--The term `aquaculture' means the 
     culture or husbandry of aquatic animals or plants by private 
     industry for commercial purposes, including the culture and 
     growing of fish by private industry for the purpose of 
     creating or augmenting publicly owned and regulated stocks of 
     fish.
       ``(5) Beginning farmer.--The term `beginning farmer' has 
     the meaning given the term by the Secretary.
       ``(6) Borrower.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `borrower' means an individual or entity who has an 
     outstanding obligation to the Secretary under any loan made 
     or guaranteed under this title, without regard to whether the 
     loan has been accelerated.
       ``(B) Exclusions.--The term `borrower' does not include an 
     individual or entity all of whose loans and accounts have 
     been foreclosed on or liquidated, voluntarily or otherwise.
       ``(7) County committee.--The term `county committee' means 
     the appropriate county committee established under section 
     8(b)(5) of the Soil Conservation and Domestic Allotment Act 
     (16 U.S.C. 590h(b)(5)).
       ``(8) Debt forgiveness.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `debt forgiveness' means reducing or terminating a 
     loan made or guaranteed under this title, in a manner that 
     results in a loss to the Secretary, through--
       ``(i) writing down or writing off a loan under section 
     3411;
       ``(ii) compromising, adjusting, reducing, or charging-off a 
     debt or claim under section 3903;
       ``(iii) paying a loss on a guaranteed loan under this 
     title; or
       ``(iv) discharging a debt as a result of bankruptcy.
       ``(B) Loan restructuring.--The term `debt forgiveness' does 
     not include consolidation, rescheduling, reamortization, or 
     deferral.
       ``(9) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(10) Direct loan.--The term `direct loan' means a loan 
     made by the Secretary from appropriated funds.
       ``(11) Entity.--The term `entity' means a corporation, farm 
     cooperative, partnership, joint operation, governmental 
     entity, or other legal organization, as determined by the 
     Secretary.
       ``(12) Farm.--The term `farm' means an operation involved 
     in--
       ``(A) the production of an agricultural commodity;
       ``(B) ranching; or
       ``(C) aquaculture.
       ``(13) Farmer.--The term `farmer' means an individual or 
     entity engaged primarily and directly in--
       ``(A) the production of an agricultural commodity;
       ``(B) ranching; or
       ``(C) aquaculture.
       ``(14) Farmer program loan.--The term `farmer program loan' 
     means--
       ``(A) a farm ownership loan under section 3101;
       ``(B) a conservation loan under section 3103;
       ``(C) an operating loan under section 3201;
       ``(D) an emergency loan under section 3301;
       ``(E) an economic emergency loan under section 202 of the 
     Emergency Agricultural

[[Page S4053]]

     Credit Adjustment Act of 1978 (7 U.S.C. prec. 1961 note; 
     Public Law 95-334);
       ``(F) a loan for a farm service building under section 502 
     of the Housing Act of 1949 (42 U.S.C. 1472);
       ``(G) an economic opportunity loan under section 602 of the 
     Economic Opportunity Act of 1964 (Public Law 88 452; 42 
     U.S.C. 2942 note) (as it existed before the amendment made by 
     section 683(a) of the Omnibus Budget Reconciliation Act of 
     1981 (Public Law 97 35; 95 Stat. 519));
       ``(H) a softwood timber loan under section 608 of the 
     Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1981 
     note; Public Law 98 258); or
       ``(I) any other loan described in section 343(a)(10) of 
     this title (as it existed before the amendment made by 
     section 2 of the Agriculture Reform, Food, and Jobs Act of 
     2012) that is outstanding on the date of enactment of that 
     Act.
       ``(15) Farm service agency.--The term `Farm Service Agency' 
     means the offices of the Farm Service Agency to which the 
     Secretary delegates responsibility to carry out this title.
       ``(16) Governmental entity.--The term `governmental entity' 
     means any agency of the United States, a State, or a unit of 
     local government of a State, or subdivision thereof.
       ``(17) Guarantee.--The term `guarantee' means guaranteeing 
     the payment of a loan originated, held, and serviced by a 
     private financial agency, or lender, approved by the 
     Secretary.
       ``(18) Highly erodible land.--The term `highly erodible 
     land' has the meaning given the term in section 1201(a) of 
     the Food Security Act of 1985 (16 U.S.C. 3801(a)).
       ``(19) Homestead retention.--The term `homestead retention' 
     means homestead retention as authorized under section 3414.
       ``(20) Indian tribe.--The term `Indian tribe' means a 
     Federal and State-recognized Indian tribe or other federally 
     recognized Indian tribal group (including a Tribal College or 
     University, as defined in section 316(b) of the Higher 
     Education Act of 1965 (20 U.S.C. 1059c(b)).
       ``(21) Loan service program.--The term `loan service 
     program' means, with respect to a farmer program loan 
     borrower, a primary loan service program or a homestead 
     retention program.
       ``(22) Natural or major disaster or emergency.--The term 
     `natural or major disaster or emergency' means--
       ``(A) a disaster due to nonmanmade causes declared by the 
     Secretary; or
       ``(B) a major disaster or emergency designated by the 
     President under the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(23) Primary loan service program.--The term `primary 
     loan service program' means, with respect to a farmer program 
     loan--
       ``(A) loan consolidation, rescheduling, or reamortization;
       ``(B) interest rate reduction, including the use of the 
     limited resource program;
       ``(C) loan restructuring, including deferral, set aside, or 
     writing down of the principal or accumulated interest 
     charges, or both, of the loan; or
       ``(D) any combination of actions described in subparagraphs 
     (A), (B), and (C).
       ``(24) Prime farmland.--The term `prime farmland' means 
     prime farmland and unique farmland (as defined in subsections 
     (a) and (b) of section 657.5 of title 7, Code of Federal 
     Regulations (1980)).
       ``(25) Project.--For purposes of section 3501, the term 
     `project' includes a facility providing central service or a 
     facility serving an individual property, or both.
       ``(26) Qualified beginning farmer.--The term `qualified 
     beginning farmer' means an applicant, regardless of whether 
     the applicant is participating in a program under section 
     3107, who--
       ``(A) is eligible for assistance under this title;
       ``(B) has not operated a farm, or has operated a farm for 
     not more than 10 years;
       ``(C) in the case of a cooperative, corporation, 
     partnership, or joint operation, has members, stockholders, 
     partners, or joint operators who are all related to each 
     other by blood or marriage;
       ``(D) in the case of a farmer who is the owner and operator 
     of a farm--
       ``(i) in the case of a loan made to an individual, 
     individually or with the immediate family of the applicant--

       ``(I) materially and substantially participates in the 
     operation of the farm; and
       ``(II) provides substantial day-to-day labor and management 
     of the farm, consistent with the practices in the State or 
     county in which the farm is located; or

       ``(ii)(I) in the case of a loan made to a cooperative, 
     corporation, partnership, or joint operation, has members, 
     stockholders, partners, or joint operators who materially and 
     substantially participate in the operation of the farm; and
       ``(II) in the case of a loan made to a corporation, has 
     stockholders who all qualify individually as beginning 
     farmers;
       ``(E) in the case of an applicant seeking to become an 
     owner and operator of a farm--
       ``(i) in the case of a loan made to an individual, 
     individually or with the immediate family of the applicant, 
     will--

       ``(I) materially and substantially participate in the 
     operation of the farm; and
       ``(II) provide substantial day-to-day labor and management 
     of the farm, consistent with the practices in the State or 
     county in which the farm is located; or

       ``(ii)(I) in the case of a loan made to a cooperative, 
     corporation, partnership, or joint operation, will have 
     members, stockholders, partners, or joint operators who will 
     materially and substantially participate in the operation of 
     the farm; and
       ``(II) in the case of a loan made to a corporation, has 
     stockholders who will all qualify individually as beginning 
     farmers;
       ``(F) agrees to participate in such loan assessment, 
     borrower training, and financial management programs as the 
     Secretary may require;
       ``(G)(i) does not own farm land; or
       ``(ii) directly or through interests in family farm 
     corporations, owns farm land, the aggregate acreage of which 
     does not exceed 30 percent of the average acreage of the 
     farms, as the case may be, in the county in which the farm 
     operations of the applicant are located, as reported in the 
     most recent census of agriculture taken in accordance with 
     the Census of Agriculture Act of 1997 (7 U.S.C. 2204g et 
     seq.), except that this subparagraph shall not apply to a 
     loan made or guaranteed under chapter 2 of subtitle A; and
       ``(H) demonstrates that the available resources of the 
     applicant and any spouse of the applicant are not sufficient 
     to enable the applicant to farm on a viable scale.
       ``(27) Recreational purpose.--For purposes of section 3410, 
     the term `recreational purpose' has the meaning provided by 
     the Secretary, but shall include hunting.
       ``(28) Rural and rural area.--
       ``(A) In general.--Subject to any determination made under 
     subparagraph (B), the terms `rural' and `rural area' mean any 
     area other than--
       ``(i) a city or town that has a population of greater than 
     50,000 inhabitants; and
       ``(ii) any urbanized area contiguous and adjacent to a city 
     or town described in clause (i).
       ``(B) Determination of areas rural in character.--
       ``(i) In general.--If part of an area described in 
     subparagraph (A)(ii) was eligible under the definitions of 
     the terms `rural' and `rural area' in section 343 (as in 
     effect on the day before the date of enactment of the 
     Agriculture Reform, Food, and Jobs Act of 2012) for community 
     facility, water and waste disposal, and broadband programs, 
     that area shall remain eligible unless the Secretary, acting 
     through the Under Secretary for Rural Development (referred 
     to in this subparagraph as the `Under Secretary'), determines 
     the area is no longer rural, based on the criteria described 
     in clause (iii).
       ``(ii) Other areas.--On petition of a unit of local 
     government in an urbanized area described in subparagraph 
     (A)(ii), or on the initiative of the Under Secretary, the 
     Under Secretary may determine that part of an area is rural, 
     based on the criteria described in clause (iii).
       ``(iii) Criteria.--In making a determination under clause 
     (i), the Under Secretary shall consider--

       ``(I) population density;
       ``(II) economic conditions, favoring a rural determination 
     for areas facing--

       ``(aa) chronic unemployment in excess of statewide 
     averages;
       ``(bb) sudden loss of employment from natural disaster or 
     the loss of a significant employer in the area; or
       ``(cc) chronic poverty demonstrated at the census block or 
     county level compared to statewide median household income; 
     and

       ``(III) commuting patterns, favoring a rural determination 
     for areas that can demonstrate higher proportions of the 
     population living and working in the area.

       ``(iv) Administration.--In carrying out this subparagraph, 
     the Under Secretary shall--

       ``(I) not delegate the authority to carry out this 
     subparagraph;
       ``(II) not make a determination under clause (i) until the 
     date that is 3 years after the date of enactment of the 
     Agriculture Reform, Food, and Jobs Act of 2012;
       ``(III) consult with the applicable rural development State 
     or regional director of the Department and the Governor of 
     the respective State;
       ``(IV) provide an opportunity to appeal to the Under 
     Secretary a determination made under this subparagraph;
       ``(V) release to the public notice of a petition filed or 
     initiative of the Under Secretary under this subparagraph not 
     later than 30 days after receipt of the petition or the 
     commencement of the initiative, as appropriate;
       ``(VI) make a determination under this subparagraph not 
     less than 15 days, and not more than 60 days, after the 
     release of the notice under subclause (V); and
       ``(VII) submit to the Committee on Agriculture of the House 
     of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate an annual report on 
     actions taken to carry out this subparagraph.

       ``(v) Hawaii and puerto rico.--Notwithstanding any other 
     provision of this subsection, within the areas of the County 
     of Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the 
     Under Secretary may designate any part of the areas as a 
     rural area if the Under Secretary determines that the part is 
     not urban in character, other than any area included in the 
     Honolulu Census Designated Place or the San Juan Census 
     Designated Place.

[[Page S4054]]

       ``(C) Exclusions.--Notwithstanding any other provision of 
     this paragraph, in determining which census blocks in an 
     urbanized area are not in a rural area (as defined in this 
     paragraph), the Secretary shall exclude any cluster of census 
     blocks that would otherwise be considered not in a rural area 
     only because the cluster is adjacent to not more than 2 
     census blocks that are otherwise considered not in a rural 
     area under this paragraph.
       ``(29) Seasoned direct loan borrower.--The term `seasoned 
     direct loan borrower' means a borrower who could reasonably 
     be expected to qualify for commercial credit using criteria 
     determined by the Secretary.
       ``(30) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(31) Socially disadvantaged farmer.--The term `socially 
     disadvantaged farmer' means a farmer who is a member of a 
     socially disadvantaged group.
       ``(32) Socially disadvantaged group.--The term `socially 
     disadvantaged group' means a group whose members have been 
     subjected to racial, ethnic, or gender prejudice because of 
     the identity of the members as members of a group without 
     regard to the individual qualities of the members.
       ``(33) Solar energy.--The term `solar energy' means energy 
     derived from sources (other than fossil fuels) and 
     technologies included in the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5901 et 
     seq.).
       ``(34) State.--The term `State' means--
       ``(A) in this title (other than subtitle A), each of the 50 
     States, the Commonwealth of Puerto Rico, the Virgin Islands, 
     Guam, American Samoa, the Commonwealth of the Northern 
     Mariana Islands, the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau; 
     and
       ``(B) in subtitle A, each of the 50 States, the 
     Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
     American Samoa, the Commonwealth of the Northern Mariana 
     Islands, and, to the extent the Secretary determines it to be 
     feasible and appropriate, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(35) State beginning farmer program.--The term `State 
     beginning farmer program' means any program that is--
       ``(A) carried out by, or under contract with, a State; and
       ``(B) designed to assist qualified beginning farmers in 
     obtaining the financial assistance necessary to enter 
     agriculture and establish viable farming operations.
       ``(36) Veteran.--The term `veteran' has the meaning given 
     the term in section 101 of title 38, United States Code.
       ``(37) Wetland.--The term `wetland' has the meaning given 
     the term in section 1201(a) of the Food Security Act of 1985 
     (16 U.S.C. 3801(a)).
       ``(38) Wildlife.--The term `wildlife' means fish or 
     wildlife (as defined in section 2(a) of the Lacey Act 
     Amendments of 1981 (16 U.S.C. 3371(a))).

                    ``Subtitle B--Rural Development

                 ``CHAPTER 1--RURAL COMMUNITY PROGRAMS

     ``SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN GUARANTEES, 
                   AND GRANTS.

       ``(a) In General.--The Secretary may make grants and loans 
     and issue loan guarantees (including a guarantee of a loan 
     financed by the net proceeds of a bond described in section 
     142(a) of the Internal Revenue Code of 1986) to eligible 
     entities described in subsection (b) for projects in rural 
     areas that primarily serve rural residents to provide for--
       ``(1) the development, storage, treatment, purification, or 
     distribution of water or the collection, treatment, or 
     disposal of waste; and
       ``(2) financial assistance and other aid in the planning of 
     projects for purposes described in paragraph (1).
       ``(b) Eligible Entities.--Entities eligible for assistance 
     described in subsection (a) are--
       ``(1) associations (including corporations not operated for 
     profit);
       ``(2) Indian tribes;
       ``(3) public and quasi-public agencies; and
       ``(4) in the case of a project to attach an individual 
     property in a rural area to a water system to alleviate a 
     health risk, an individual.
       ``(c) Loan and Loan Guarantee Requirements.--In connection 
     with loans made or guaranteed under this section, the 
     Secretary shall require the applicant--
       ``(1) to certify in writing, and the Secretary shall 
     determine, that the applicant is unable to obtain sufficient 
     credit elsewhere to finance the actual needs of the applicant 
     at reasonable rates and terms, taking into consideration 
     prevailing private and cooperative rates and terms in the 
     community in or near which the applicant resides for loans 
     for similar purposes and periods of time; and
       ``(2) to furnish an appropriate written financial 
     statement.
       ``(d) Grant Amounts.--
       ``(1) Maximum.--Except as otherwise provided in this 
     subsection, the amount of any grant made under this section 
     shall not exceed 75 percent of the development cost of the 
     project for which the grant is provided.
       ``(2) Grant rate.--The Secretary shall establish the grant 
     rate for each project in conformity with regulations issued 
     by the Secretary that shall provide for a graduated scale of 
     grant rates that establish higher rates for projects in 
     communities that have--
       ``(A) lower community population;
       ``(B) higher rates of outmigration; and
       ``(C) lower income levels.
       ``(3) Local share requirements.--Grants made under this 
     section may be used to pay the local share requirements of 
     another Federal grant-in-aid program to the extent permitted 
     under the law providing for the grant-in-aid program.
       ``(e) Special Grants.--
       ``(1) Revolving funds for financing water and wastewater 
     projects.--
       ``(A) In general.--The Secretary may make grants to 
     qualified, nonprofit entities in rural areas to capitalize 
     revolving funds for the purpose of providing financing to 
     eligible entities for--
       ``(i) predevelopment costs associated with proposed water 
     and wastewater projects or with existing water and wastewater 
     systems; and
       ``(ii) short-term costs incurred for replacement equipment, 
     small-scale extension services, or other small capital 
     projects that are not part of the regular operations and 
     maintenance activities of existing water and wastewater 
     systems.
       ``(B) Maximum amount of financing.--The amount of financing 
     made to an eligible entity under this paragraph shall not 
     exceed--
       ``(i) $100,000 for costs described in subparagraph (A)(i); 
     and
       ``(ii) $100,000 for costs described in subparagraph 
     (A)(ii).
       ``(C) Term.--The term of financing provided to an eligible 
     entity under this paragraph shall not exceed 10 years.
       ``(D) Administration.--The Secretary shall limit the amount 
     of grant funds that may be used by a grant recipient for 
     administrative costs incurred under this paragraph.
       ``(E) Annual report.--A nonprofit entity receiving a grant 
     under this paragraph shall submit to the Secretary an annual 
     report that describes the number and size of communities 
     served and the type of financing provided.
       ``(F) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $30,000,000 
     for each of fiscal years 2013 through 2017.
       ``(2) Emergency and imminent community water assistance 
     program.--
       ``(A) In general.--The Secretary shall provide grants in 
     accordance with this paragraph to assist the residents of 
     rural areas and small communities to secure adequate 
     quantities of safe water--
       ``(i) after a significant decline in the quantity or 
     quality of water available from the water supplies of the 
     rural areas and small communities, or when such a decline is 
     imminent; or
       ``(ii) when repairs, partial replacement, or significant 
     maintenance efforts on established water systems would 
     remedy--

       ``(I) an acute or imminent shortage of quality water; or
       ``(II) a significant or imminent decline in the quantity or 
     quality of water that is available.

       ``(B) Priority.--In carrying out subparagraph (A), the 
     Secretary shall--
       ``(i) give priority to projects described in subparagraph 
     (A)(i); and
       ``(ii) provide at least 70 percent of all grants under this 
     paragraph to those projects.
       ``(C) Eligibility.--To be eligible to obtain a grant under 
     this paragraph, an applicant shall--
       ``(i) be a public or private nonprofit entity; and
       ``(ii) in the case of a grant made under subparagraph 
     (A)(i), demonstrate to the Secretary that the decline 
     referred to in that subparagraph occurred, or will occur, not 
     later than 2 years after the date on which the application 
     was filed for the grant.
       ``(D) Uses.--
       ``(i) In general.--Grants made under this paragraph may be 
     used--

       ``(I) for waterline extensions from existing systems, 
     laying of new waterlines, repairs, significant maintenance, 
     digging of new wells, equipment replacement, and hook and tap 
     fees;
       ``(II) for any other appropriate purpose associated with 
     developing sources of, treating, storing, or distributing 
     water;
       ``(III) to assist communities in complying with the 
     requirements of the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 
     U.S.C. 300f et seq.); and
       ``(IV) to provide potable water to communities through 
     other means.

       ``(ii) Joint proposals.--

       ``(I) In general.--Subject to the restrictions in 
     subparagraph (E), nothing in this paragraph precludes rural 
     communities from submitting joint proposals for emergency 
     water assistance.
       ``(II) Consideration of restrictions.--The restrictions in 
     subparagraph (E) shall be considered in the aggregate, 
     depending on the number of communities involved.

       ``(E) Restrictions.--
       ``(i) Maximum income.--No grant provided under this 
     paragraph shall be used to assist any rural area or community 
     that has a median household income in excess of the State 
     nonmetropolitan median household income according to the most 
     recent decennial census of the United States.
       ``(ii) Set-aside for smaller communities.--Not less than 50 
     percent of the funds allocated under this paragraph shall be 
     allocated to rural communities with populations that do not 
     exceed 3,000 inhabitants.
       ``(F) Maximum grants.--Grants made under this paragraph may 
     not exceed--

[[Page S4055]]

       ``(i) in the case of each grant made under subparagraph 
     (A)(i), $500,000; and
       ``(ii) in the case of each grant made under subparagraph 
     (A)(ii), $150,000.
       ``(G) Full funding.--Subject to subparagraph (F), grants 
     under this paragraph shall be made in an amount equal to 100 
     percent of the costs of the projects conducted under this 
     paragraph.
       ``(H) Application.--
       ``(i) Nationally competitive application process.--

       ``(I) In general.--The Secretary shall develop a nationally 
     competitive application process to award grants under this 
     paragraph.
       ``(II) Requirements.--The process shall include criteria 
     for evaluating applications, including population, median 
     household income, and the severity of the decline, or 
     imminent decline, in the quantity or quality of water.

       ``(ii) Timing of review of applications.--

       ``(I) Simplified application.--The application process 
     developed by the Secretary under clause (i) shall include a 
     simplified application form that will permit expedited 
     consideration of an application for a grant filed under this 
     paragraph.
       ``(II) Priority review.--In processing applications for any 
     water or waste grant or loan authorized under this section, 
     the Secretary shall afford priority processing to an 
     application for a grant under this paragraph to the extent 
     funds will be available for an award on the application at 
     the conclusion of priority processing.
       ``(III) Timing.--The Secretary shall, to the maximum extent 
     practicable, review and act on an application under this 
     paragraph not later than 60 days after the date on which the 
     application is submitted to the Secretary.

       ``(I) Funding.--
       ``(i) Reservation.--

       ``(I) In general.--For each fiscal year, not less than 3 
     nor more than 5 percent of the total amount made available to 
     carry out this section for the fiscal year shall be reserved 
     for grants under this paragraph.
       ``(II) Release.--Funds reserved under subclause (I) for a 
     fiscal year shall be reserved only until July 1 of the fiscal 
     year.

       ``(ii) Authorization of appropriations.--In addition to 
     funds made available under clause (i), there is authorized to 
     be appropriated to carry out this paragraph $35,000,000 for 
     each of fiscal years 2013 through 2017.
       ``(3) Water and waste facility loans and grants to 
     alleviate health risks.--
       ``(A) Definition of cooperative.--In this paragraph, the 
     term `cooperative' means a cooperative formed specifically 
     for the purpose of the installation, expansion, improvement, 
     or operation of water supply or waste disposal facilities or 
     systems.
       ``(B) Loans and grants to persons other than individuals.--
       ``(i) In general.--The Secretary shall make or guarantee 
     loans and make grants to provide for the conservation, 
     development, use, and control of water (including the 
     extension or improvement of existing water supply systems) 
     and the installation or improvement of drainage or waste 
     disposal facilities and essential community facilities, 
     including necessary related equipment, training, and 
     technical assistance to--

       ``(I) rural water supply corporations, cooperatives, or 
     similar entities;
       ``(II) Indian tribes on Federal or State reservations and 
     other federally recognized Indian tribes;
       ``(III) rural or native villages in the State of Alaska;
       ``(IV) native tribal health consortiums;
       ``(V) public agencies; and
       ``(VI) Native Hawaiian Home Lands.

       ``(ii) Eligible projects.--Loans and grants described in 
     clause (i) shall be available only to provide the described 
     water and waste facilities and services to communities whose 
     residents face significant health risks, as determined by the 
     Secretary, due to the fact that a significant proportion of 
     the residents of the community do not have access to, or are 
     not served by, adequate affordable--

       ``(I) water supply systems; or
       ``(II) waste disposal facilities.

       ``(iii) Matching requirements.--For entities described 
     under subclauses (III), (IV), or (V) of clause (i) to be 
     eligible to receive a grant for water supply systems or waste 
     disposal facilities, the State in which the project will 
     occur shall provide 25 percent in matching funds from non-
     Federal sources.
       ``(iv) Certain areas targeted.--

       ``(I) In general.--Loans and grants under clause (i) shall 
     be made only if the loan or grant funds will be used 
     primarily to provide water or waste services, or both, to 
     residents of a county or census area--

       ``(aa) the per capita income of the residents of which is 
     not more than 70 percent of the national average per capita 
     income, as determined by the Department of Commerce; and
       ``(bb) the unemployment rate of the residents of which is 
     not less than 125 percent of the national average 
     unemployment rate, as determined by the Bureau of Labor 
     Statistics.

       ``(II) Exceptions.--Notwithstanding subclause (I), loans 
     and grants under clause (i) may also be made if the loan or 
     grant funds will be used primarily to provide water or waste 
     services, or both, to residents of--

       ``(aa) a rural area that was recognized as a colonia as of 
     October 1, 1989; or
       ``(bb) an area described under subclause (II), (III), or 
     (VI) of clause (i).
       ``(C) Loans and grants to individuals.--
       ``(i) In general.--The Secretary shall make or guarantee 
     loans and make grants to individuals who reside in a 
     community described in subparagraph (B)(i) for the purpose of 
     extending water supply and waste disposal systems, connecting 
     the systems to the residences of the individuals, or 
     installing plumbing and fixtures within the residences of the 
     individuals to facilitate the use of the water supply and 
     waste disposal systems.
       ``(ii) Interest.--Loans described in clause (i) shall be at 
     a rate of interest no greater than the Federal Financing Bank 
     rate on loans of a similar term at the time the loans are 
     made.
       ``(iii) Amortization.--The repayment of loans described in 
     clause (i) shall be amortized over the expected life of the 
     water supply or waste disposal system to which the residence 
     of the borrower will be connected.
       ``(iv) Manner in which loans and grants are to be made.--
     Loans and grants to individuals under clause (i) shall be 
     made--

       ``(I) directly to the individuals by the Secretary; or
       ``(II) to the individuals through the rural water supply 
     corporation, cooperative, or similar entity, or public 
     agency, providing the water supply or waste disposal 
     services, pursuant to regulations issued by the Secretary.

       ``(D) Preference.--The Secretary shall give preference in 
     the awarding of loans and grants under subparagraphs (B) and 
     (C) to entities described in clause (i) of subparagraph (B) 
     that propose to provide water supply or waste disposal 
     services to the residents of Indian reservations, rural or 
     native villages in the State of Alaska, Native Hawaiian Home 
     Lands, and those rural subdivisions commonly referred to as 
     colonias, that are characterized by substandard housing, 
     inadequate roads and drainage, and a lack of adequate water 
     or waste facilities.
       ``(E) Relationship to other authority.--Notwithstanding any 
     other provision of law, the head of any Federal agency may 
     enter into interagency agreements with Federal, State, 
     tribal, and other entities to share resources, including 
     transferring and accepting funds, equipment, or other 
     supplies, to carry out the activities described in this 
     paragraph.
       ``(F) Authorization of appropriations.--There are 
     authorized to be appropriated--
       ``(i) for grants under this paragraph, $60,000,000 for each 
     fiscal year;
       ``(ii) for loans under this paragraph, $60,000,000 for each 
     fiscal year; and
       ``(iii) in addition to grants provided under clause (i), 
     for grants under this section to benefit Indian tribes, 
     $20,000,000 for each fiscal year.
       ``(4) Solid waste management grants.--
       ``(A) In general.--The Secretary may make grants to 
     nonprofit organizations for the provision of regional 
     technical assistance to local and regional governments and 
     related agencies for the purpose of reducing or eliminating 
     pollution of water resources and improving the planning and 
     management of solid waste disposal facilities in rural areas.
       ``(B) Technical assistance grant amounts.--Grants made 
     under this paragraph for the provision of technical 
     assistance shall be made for 100 percent of the cost of the 
     technical assistance.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $10,000,000 
     for each of fiscal years 2013 through 2017
       ``(5) Rural water and wastewater technical assistance and 
     training programs.--
       ``(A) Grants to nonprofits.--
       ``(i) In general.--The Secretary may make grants to 
     nonprofit organizations to enable the organizations to 
     provide to associations that provide water and wastewater 
     services in rural areas technical assistance and training--

       ``(I) to identify, and evaluate alternative solutions to, 
     problems relating to the obtaining, storage, treatment, 
     purification, or distribution of water or the collection, 
     treatment, or disposal of waste in rural areas;
       ``(II) to prepare applications to receive financial 
     assistance for any purpose specified in subsection (a)(1) 
     from any public or private source; and
       ``(III) to improve the operation and maintenance practices 
     at any existing works for the storage, treatment, 
     purification, or distribution of water or the collection, 
     treatment, or disposal of waste in rural areas.

       ``(ii) Selection priority.--In selecting recipients of 
     grants to be made under clause (i), the Secretary shall give 
     priority to nonprofit organizations that have experience in 
     providing the technical assistance and training described in 
     clause (i) to associations serving rural areas in which--

       ``(I) residents have low income; and
       ``(II) water supply systems or waste facilities are 
     unhealthful.

       ``(iii) Funding.--

       ``(I) In general.--Except as provided in subclause (II), 
     not less than 1 nor more than 3 percent of any funds made 
     available to carry out water and waste disposal projects 
     described in subsection (a) for any fiscal year shall be 
     reserved for grants under this paragraph.
       ``(II) Exception.--The minimum amount specified in 
     subclause (I) shall not apply if the aggregate amount of 
     grant funds requested by applications that qualify for grants 
     received by the Secretary from eligible nonprofit 
     organizations for the fiscal year totals less than 1 percent 
     of those funds.

[[Page S4056]]

       ``(B) Rural water and wastewater circuit rider program.--
       ``(i) In general.--The Secretary shall continue a national 
     rural water and wastewater circuit rider program that--

       ``(I) is consistent with the activities and results of the 
     program conducted before January 1, 2012, as determined by 
     the Secretary; and
       ``(II) received funding from the Secretary, acting through 
     the Administrator of the Rural Utilities Service.

       ``(ii) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $25,000,000 for fiscal year 2013 and each fiscal year 
     thereafter.
       ``(6) SEARCH program.--
       ``(A) In general.--The Secretary may establish a Special 
     Evaluation Assistance for Rural Communities and Households 
     (SEARCH) program to make predevelopment planning grants for 
     feasibility studies, design assistance, and technical 
     assistance, to financially distressed communities in rural 
     areas with populations of 2,500 or fewer inhabitants for 
     water and waste disposal projects described in this section.
       ``(B) Terms.--
       ``(i) Documentation.--With respect to grants made under 
     this paragraph, the Secretary shall require the lowest 
     quantity of documentation practicable.
       ``(ii) Matching.--Notwithstanding any other provision of 
     this section, the Secretary may fund up to 100 percent of the 
     eligible costs of grants provided under this paragraph, as 
     determined by the Secretary.
       ``(iii) Funding.--The Secretary may use not more than 4 
     percent of the total amount of funds made available for a 
     fiscal year for water, waste disposal, and essential 
     community facility activities under this chapter to carry out 
     this paragraph.
       ``(C) Relationship to other authority.--
       ``(i) In general.--The funds and authorities provided under 
     this paragraph are in addition to any other funds or 
     authorities the Secretary may have to carry out activities 
     described in this section.
       ``(ii) Authorized activities.--The Secretary may furnish 
     financial assistance or other aid in planning projects for 
     the purposes described in subparagraph (A).
       ``(f) Priority.--In making grants and loans, and 
     guaranteeing loans, for water, wastewater, and waste disposal 
     projects under this section, the Secretary shall give 
     priority consideration to projects that serve rural 
     communities that, as determined by the Secretary--
       ``(1) have a population of less than 5,500 permanent 
     residents;
       ``(2) have a community water, wastewater, or waste disposal 
     system that--
       ``(A) is experiencing--
       ``(i) an unanticipated reduction in the quality of water, 
     the quantity of water, or the ability to deliver water; or
       ``(ii) some other deterioration in the supply of water to 
     the community;
       ``(B) is not adequate to meet the needs of the community; 
     and
       ``(C) requires immediate corrective action;
       ``(3) are experiencing outmigration;
       ``(4) have a high percentage of low-income residents; or
       ``(5) are isolated from other significant population 
     centers.
       ``(g) Curtailment or Limitation of Service Prohibited.--The 
     service provided or made available through any such 
     association shall not be curtailed or limited by inclusion of 
     the area served by such association within the boundaries of 
     any municipal corporation or other public body, or by the 
     granting of any private franchise for similar service within 
     such area during the term of such loan; nor shall the 
     happening of any such event be the basis of requiring such 
     association to secure any franchise, license, or permit as a 
     condition to continuing to serve the area served by the 
     association at the time of the occurrence of such event.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary.

     ``SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARANTEES, AND 
                   GRANTS.

       ``(a) In General.--The Secretary may make grants and loans 
     and issue loan guarantees (including a guarantee of a loan 
     financed by the net proceeds of a bond described in section 
     142(a) of the Internal Revenue Code of 1986) to eligible 
     entities described in subsection (b) for projects in rural 
     areas that primarily serve rural residents to provide for--
       ``(1) essential community facilities, including--
       ``(A) necessary equipment;
       ``(B) recreational developments; and
       ``(2) financial assistance and other assistance in the 
     planning of projects for purposes described in this section.
       ``(b) Eligible Entities.--Entities eligible for assistance 
     described in subsection (a) are--
       ``(1) associations (including corporations not operated for 
     profit);
       ``(2) Indian tribes (including groups of individuals 
     described in paragraph (4) of section 815 of the Native 
     American Programs Act of 1974 (42 U.S.C. 2992c)); and
       ``(3) public and quasi-public agencies.
       ``(c) Loan and Loan Guarantee Requirements.--
       ``(1) In general.--In connection with loans made or 
     guaranteed under this section, the Secretary shall require 
     the applicant--
       ``(A) to certify in writing, and the Secretary shall 
     determine, that the applicant is unable to obtain sufficient 
     credit elsewhere to finance the actual needs of the 
     applicant; and
       ``(B) to furnish an appropriate written financial 
     statement.
       ``(2) Debt restructuring and loan servicing for community 
     facility loans.--The Secretary shall establish and implement 
     a program that is similar to the program established under 
     section 3411, except that the debt restructuring and loan 
     servicing procedures shall apply to delinquent community 
     facility program loans to a hospital or health care facility 
     under subsection (a).
       ``(d) Grant Amounts.--
       ``(1) Maximum.--Except as otherwise provided in this 
     subsection, the amount of any grant made under this section 
     shall not exceed 75 percent of the development cost of the 
     project for which the grant is provided.
       ``(2) Grant rate.--The Secretary shall establish the grant 
     rate for each project in conformity with regulations issued 
     by the Secretary that shall provide for a graduated scale of 
     grant rates that establish higher rates for projects in 
     communities that have--
       ``(A) low community population;
       ``(B) high rates of outmigration; and
       ``(C) low income levels.
       ``(3) Local share requirements.--Grants made under this 
     section may be used to pay the local share requirements of 
     another Federal grant-in-aid program to the extent permitted 
     under the law providing for the grant-in-aid program.
       ``(e) Priority.--In making grants and loans, and 
     guaranteeing loans under this section, the Secretary shall 
     give priority consideration to projects that serve rural 
     communities that--
       ``(1) have a population of less than 20,000 permanent 
     residents;
       ``(2) are experiencing outmigration;
       ``(3) have a high percentage of low-income residents; or
       ``(4) are isolated from other significant population 
     centers.
       ``(f) Tribal Colleges and Universities.--
       ``(1) In general.--The Secretary may make grants to an 
     entity that is a Tribal College or University (as defined in 
     section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1059c(b))) to provide the Federal share of the cost of 
     developing specific Tribal College or University essential 
     community facilities in rural areas.
       ``(2) Federal share.--The Secretary shall establish the 
     maximum percentage of the cost of the project that may be 
     covered by a grant under this subsection, except that the 
     Secretary may not require non-Federal financial support in an 
     amount that is greater than 5 percent of the total cost of 
     the project.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2013 through 2017.
       ``(g) Technical Assistance for Community Facilities 
     Projects.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may use funds made available for community facilities 
     programs authorized under this section to provide technical 
     assistance to applicants and participants for community 
     facilities programs.
       ``(2) Funding.--The Secretary may use not more than 3 
     percent of the amount of funds made available to participants 
     for a fiscal year for a community facilities program to 
     provide technical assistance described in paragraph (1).
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary.

     ``SEC. 3503. HEALTH CARE SERVICES.

       ``(a) Purpose.--The purpose of this section is to address 
     the continued unmet health needs in the Delta region through 
     cooperation among health care professionals, institutions of 
     higher education, research institutions, and other 
     individuals and entities in the region.
       ``(b) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means a consortium of regional 
     institutions of higher education, academic health and 
     research institutes, and economic development entities 
     located in the Delta region that have experience in 
     addressing the health care issues in the region.
       ``(c) Grants.--To carry out the purpose described in 
     subsection (a), the Secretary may award a grant to an 
     eligible entity for--
       ``(1) the development of--
       ``(A) health care services;
       ``(B) health education programs; and
       ``(C) health care job training programs; and
       ``(2) the development and expansion of public health-
     related facilities in the Delta region to address 
     longstanding and unmet health needs of the region.
       ``(d) Use.--As a condition of the receipt of the grant, the 
     eligible entity shall use the grant to fund projects and 
     activities described in subsection (c), based on input 
     solicited from local governments, public health care 
     providers, and other entities in the Delta region.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this section 
     $3,000,000 for each of fiscal years 2013 through 2017.

        ``CHAPTER 2--RURAL BUSINESS AND COOPERATIVE DEVELOPMENT

     ``SEC. 3601. BUSINESS PROGRAMS.

       ``(a) Rural Business Development Grants.--

[[Page S4057]]

       ``(1) In general.--The Secretary may make grants under this 
     subsection to eligible entities described in paragraph (2) in 
     rural areas that primarily serve rural areas for purposes 
     described in paragraph (3).
       ``(2) Eligible entities.--The Secretary may make grants 
     under this subsection to--
       ``(A) governmental entities;
       ``(B) Indian tribes; and
       ``(C) nonprofit entities.
       ``(3) Eligible purposes for grants.--Eligible entities that 
     receive grants under this subsection may use the grant funds 
     for--
       ``(A) business opportunity projects that--
       ``(i) identify and analyze business opportunities;
       ``(ii) identify, train, and provide technical assistance to 
     existing or prospective rural entrepreneurs and managers;
       ``(iii) assist in the establishment of new rural businesses 
     and the maintenance of existing businesses, including through 
     business support centers;
       ``(iv) conduct regional, community, and local economic 
     development planning and coordination, and leadership 
     development; and
       ``(v) establish centers for training, technology, and trade 
     that will provide training to rural businesses in the use of 
     interactive communications technologies to develop 
     international trade opportunities and markets; and
       ``(B) projects that support the development of business 
     enterprises that finance or facilitate--
       ``(i) the development of small and emerging private 
     business enterprise;
       ``(ii) the establishment, expansion, and operation of rural 
     distance learning networks;
       ``(iii) the development of rural learning programs that 
     provide educational instruction or job training instruction 
     related to potential employment or job advancement to adult 
     students; and
       ``(iv) the provision of technical assistance and training 
     to rural communities for the purpose of improving passenger 
     transportation services or facilities.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this 
     subsection $65,000,000 for each of fiscal years 2013 through 
     2017, to remain available until expended.
       ``(b) Value-added Agricultural Producer Grants.--
       ``(1) Definitions.--In this subsection:
       ``(A) Mid-tier value chain.--The term `mid-tier value 
     chain' means a local and regional supply network that links 
     independent producers with businesses and cooperatives that 
     market value-added agricultural products in a manner that--
       ``(i) targets and strengthens the profitability and 
     competitiveness of small- and medium-sized farms that are 
     structured as family farms; and
       ``(ii) obtains agreement from an eligible agricultural 
     producer group, farmer cooperative, or majority-controlled 
     producer-based business venture that is engaged in the value 
     chain on a marketing strategy.
       ``(B) Producer.--The term `producer' means a farmer.
       ``(C) Value-added agricultural product.--The term `value-
     added agricultural product' means any agricultural commodity 
     or product--
       ``(i) that--

       ``(I) has undergone a change in physical state;
       ``(II) was produced in a manner that enhances the value of 
     the agricultural commodity or product, as demonstrated 
     through a business plan that shows the enhanced value, as 
     determined by the Secretary;
       ``(III) is physically segregated in a manner that results 
     in the enhancement of the value of the agricultural commodity 
     or product;
       ``(IV) is a source of farm-based renewable energy, 
     including E 85 fuel; or
       ``(V) is aggregated and marketed as a locally produced 
     agricultural food product; and

       ``(ii) for which, as a result of the change in physical 
     state or the manner in which the agricultural commodity or 
     product was produced, marketed, or segregated--

       ``(I) the customer base for the agricultural commodity or 
     product is expanded; and
       ``(II) a greater portion of the revenue derived from the 
     marketing, processing, or physical segregation of the 
     agricultural commodity or product is available to the 
     producer of the commodity or product.

       ``(2) Grants.--
       ``(A) In general.--The Secretary may make grants under this 
     subsection to--
       ``(i) independent producers of value-added agricultural 
     products; and
       ``(ii) an agricultural producer group, farmer cooperative, 
     or majority-controlled producer-based business venture, as 
     determined by the Secretary.
       ``(B) Grants to a producer.--A grantee under subparagraph 
     (A)(i) shall use the grant--
       ``(i) to develop a business plan or perform a feasibility 
     study to establish a viable marketing opportunity (including 
     through mid-tier value chains) for value-added agricultural 
     products; or
       ``(ii) to provide capital to establish alliances or 
     business ventures that allow the producer to better compete 
     in domestic or international markets.
       ``(C) Grants to an agricultural producer group, cooperative 
     or producer-based business venture.--A grantee under 
     subparagraph (A)(ii) shall use the grant--
       ``(i) to develop a business plan for viable marketing 
     opportunities in emerging markets for a value-added 
     agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities in emerging markets for the value-
     added agricultural product.
       ``(D) Award selection.--
       ``(i) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority to projects--

       ``(I) that contribute to increasing opportunities for 
     operators of small- and medium-sized farms that are 
     structured as family farms; or
       ``(II) at least \1/4\ of the recipients of which are 
     beginning farmers or socially disadvantaged farmers.

       ``(ii) Ranking.--In evaluating and ranking proposals under 
     this subsection, the Secretary shall provide substantial 
     weight to the priorities described in clause (i).
       ``(E) Amount of grant.--
       ``(i) In general.--The total amount provided to a grant 
     recipient under this subsection shall not exceed $500,000.
       ``(ii) Majority-controlled, producer-based business 
     ventures.--The total amount of all grants provided to 
     majority-controlled, producer-based business ventures under 
     this subsection for a fiscal year shall not exceed 10 percent 
     of the amount of funds used to make all grants for the fiscal 
     year under this subsection.
       ``(F) Term.--The term of a grant under this paragraph shall 
     not exceed 3 years.
       ``(G) Simplified application.--The Secretary shall offer a 
     simplified application form and process for project proposals 
     requesting less than $50,000 under this subsection.
       ``(3) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $40,000,000 
     for each of fiscal years 2013 through 2017.
       ``(B) Reservation of funds for projects to benefit 
     beginning farmers, socially disadvantaged farmers, and mid-
     tier value chains.--
       ``(i) In general.--The Secretary shall reserve 10 percent 
     of the amounts made available for each fiscal year under this 
     subsection to fund projects that benefit beginning farmers or 
     socially disadvantaged farmers.
       ``(ii) Mid-tier value chains.--The Secretary shall reserve 
     10 percent of the amounts made available for each fiscal year 
     under this subsection to fund applications of eligible 
     entities described in paragraph (2) that propose to develop 
     mid-tier value chains.
       ``(iii) Unobligated amounts.--Any amounts in the reserves 
     for a fiscal year established under clauses (i) and (ii) that 
     are not obligated by June 30 of the fiscal year shall be 
     available to the Secretary to make grants under this 
     subsection to eligible entities in any State, as determined 
     by the Secretary.
       ``(c) Rural Cooperative Development Grants.--
       ``(1) Definitions.--In this subsection:
       ``(A) Nonprofit institution.--The term `nonprofit 
     institution' means any organization or institution, including 
     an accredited institution of higher education, no part of the 
     net earnings of which inures, or may lawfully inure, to the 
     benefit of any private shareholder or individual.
       ``(B) United states.--The term `United States' means--
       ``(i) the several States; and
       ``(ii) the District of Columbia.
       ``(2) Grants.--The Secretary shall make grants under this 
     subsection to nonprofit institutions for the purpose of 
     enabling the nonprofit institutions to establish and operate 
     centers for rural cooperative development.
       ``(3) Goals.--The goals of a center funded under this 
     subsection shall be to facilitate the creation of jobs in 
     rural areas through the development of new rural 
     cooperatives, value -added processing, and rural businesses.
       ``(4) Application.--
       ``(A) In general.--Any nonprofit institution seeking a 
     grant under paragraph (2) shall submit to the Secretary an 
     application containing a plan for the establishment and 
     operation by the institution of 1 or more centers for 
     cooperative development.
       ``(B) Requirements.--The Secretary may approve an 
     application if the plan contains the following:
       ``(i) A provision that substantiates that the center will 
     effectively serve rural areas in the United States.
       ``(ii) A provision that the primary objective of the center 
     will be to improve the economic condition of rural areas 
     through cooperative development.
       ``(iii) A description of the activities that the center 
     will carry out to accomplish the objective, which may include 
     programs--

       ``(I) for applied research and feasibility studies that may 
     be useful to individuals, cooperatives, small businesses, and 
     other similar entities in rural areas served by the center;
       ``(II) for the collection, interpretation, and 
     dissemination of information that may be useful to 
     individuals, cooperatives, small businesses, and other 
     similar entities in rural areas served by the center;
       ``(III) providing training and instruction for individuals, 
     cooperatives, small businesses, and other similar entities in 
     rural areas served by the center;

[[Page S4058]]

       ``(IV) providing loans and grants to individuals, 
     cooperatives, small businesses, and other similar entities in 
     rural areas served by the center;
       ``(V) providing technical assistance, research services, 
     and advisory services to individuals, cooperatives, small 
     businesses, and other similar entities in rural areas served 
     by the center; and
       ``(VI) providing for the coordination of services and 
     sharing of information by the center.

       ``(iv) A description of the contributions that the 
     activities are likely to make to the improvement of the 
     economic conditions of the rural areas for which the center 
     will provide services.
       ``(v) Provisions that the center, in carrying out the 
     activities, will seek, if appropriate, the advice, 
     participation, expertise, and assistance of representatives 
     of business, industry, educational institutions, the Federal 
     Government, and State and local governments.
       ``(vi) Provisions that the center will take all practicable 
     steps to develop continuing sources of financial support for 
     the center, particularly from sources in the private sector.
       ``(vii) Provisions for--

       ``(I) monitoring and evaluating the activities by the 
     nonprofit institution operating the center; and
       ``(II) accounting for funds received by the institution 
     under this section.

       ``(5) Awarding grants.--
       ``(A) In general.--Grants made under paragraph (2) shall be 
     made on a competitive basis.
       ``(B) Preference.--In making grants under paragraph (2), 
     the Secretary shall give preference to grant applications 
     providing for the establishment of centers for rural 
     cooperative development that--
       ``(i) demonstrate a proven track record in carrying out 
     activities to promote and assist the development of 
     cooperatively and mutually owned businesses;
       ``(ii) demonstrate previous expertise in providing 
     technical assistance in rural areas to promote and assist the 
     development of cooperatively and mutually owned businesses;
       ``(iii) demonstrate the ability to assist in the retention 
     of businesses, facilitate the establishment of cooperatives 
     and new cooperative approaches, and generate employment 
     opportunities that will improve the economic conditions of 
     rural areas;
       ``(iv) commit to providing technical assistance and other 
     services to underserved and economically distressed areas in 
     rural areas of the United States;
       ``(v) demonstrate a commitment to--

       ``(I) networking with and sharing the results of the 
     efforts of the center with other cooperative development 
     centers and other organizations involved in rural economic 
     development efforts; and
       ``(II) developing multiorganization and multistate 
     approaches to addressing the economic development and 
     cooperative needs of rural areas; and

       ``(vi) commit to providing a 25 percent matching 
     contribution with private funds and in-kind contributions, 
     except that the Secretary shall not require non-Federal 
     financial support in an amount that is greater than 5 percent 
     in the case of a 1994 institution (as defined in section 532 
     of the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103 382)).
       ``(6) Grant period.--
       ``(A) In general.--A grant awarded to a center that has 
     received no prior funding under this subsection shall be made 
     for a period of 1 year.
       ``(B) Multiyear grants.--If the Secretary determines it to 
     be in the best interest of the program, the Secretary shall 
     award grants for a period of more than 1 year, but not more 
     than 3 years, to a center that has successfully met the 
     requirements of paragraph (5)(B), as determined by the 
     Secretary.
       ``(7) Authority to extend grant period.--The Secretary may 
     extend for 1 additional 12-month period the period during 
     which a grantee may use a grant made under this subsection.
       ``(8) Technical assistance to prevent excessive 
     unemployment or underemployment.--
       ``(A) In general.--In carrying out this subsection, the 
     Secretary may provide technical assistance to alleviate or 
     prevent conditions of excessive unemployment, 
     underemployment, outmigration, or low employment growth in 
     economically distressed rural areas that the Secretary 
     determines have a substantial need for the assistance.
       ``(B) Inclusions.--The assistance may include planning and 
     feasibility studies, management and operational assistance, 
     and studies evaluating the need for the development potential 
     of projects that increase employment and improve economic 
     growth in the areas.
       ``(9) Grants to defray administrative costs.--
       ``(A) In general.--The Secretary may make grants to defray 
     not to exceed 75 percent of the costs incurred by 
     organizations and public bodies to carry out projects for 
     which grants or loans are made under this subsection.
       ``(B) Cost-sharing.--For purposes of determining the non-
     Federal share of the costs, the Secretary shall include 
     contributions in cash and in kind, fairly evaluated, 
     including premises, equipment, and services.
       ``(10) Cooperative research program.--The Secretary shall 
     offer to enter into a cooperative research agreement with 1 
     or more qualified academic institutions in each fiscal year 
     to conduct research on the effects of all types of 
     cooperatives on the national economy.
       ``(11) Addressing needs of minority communities.--
       ``(A) In general.--If the total amount appropriated under 
     paragraph (13) for a fiscal year exceeds $7,500,000, the 
     Secretary shall reserve an amount equal to 20 percent of the 
     total amount appropriated for grants for cooperative 
     development centers, individual cooperatives, or groups of 
     cooperatives--
       ``(i) that serve socially disadvantaged groups; and
       ``(ii) a majority of the boards of directors or governing 
     boards of which are comprised of individuals who are members 
     of socially disadvantaged groups.
       ``(B) Insufficient applications.--To the extent there are 
     insufficient applications to carry out subparagraph (A), the 
     Secretary shall use the funds as otherwise authorized by this 
     subsection.
       ``(12) Interagency working group.--Not later than 90 days 
     after the date of enactment of the Agriculture Reform, Food, 
     and Jobs Act of 2012, the Secretary shall coordinate and 
     chair an interagency working group to foster cooperative 
     development and ensure coordination with Federal agencies and 
     national and local cooperative organizations that have 
     cooperative programs and interests.
       ``(13) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subsection 
     $50,000,000 for each of fiscal years 2013 through 2017.
       ``(d) Appropriate Technology Transfer for Rural Areas 
     Program.--
       ``(1) Definition of national nonprofit agricultural 
     assistance institution.--In this subsection, the term 
     `national nonprofit agricultural assistance institution' 
     means an organization that--
       ``(A) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 and exempt from taxation under 501(a) of 
     that Code;
       ``(B) has staff and offices in multiple regions of the 
     United States;
       ``(C) has experience and expertise in operating national 
     agricultural technical assistance programs;
       ``(D) expands markets for the agricultural commodities 
     produced by producers through the use of practices that 
     enhance the environment, natural resource base, and quality 
     of life; and
       ``(E) improves the economic viability of agricultural 
     operations.
       ``(2) Establishment.--The Secretary shall establish a 
     national appropriate technology transfer for rural areas 
     program to assist agricultural producers that are seeking 
     information--
       ``(A) to reduce input costs;
       ``(B) to conserve energy resources;
       ``(C) to diversify operations through new energy crops and 
     energy generation facilities; and
       ``(D) to expand markets for agricultural commodities 
     produced by the producers by using practices that enhance the 
     environment, natural resource base, and quality of life.
       ``(3) Implementation.--
       ``(A) In general.--The Secretary shall carry out the 
     program under this subsection by making a grant to, or 
     offering to enter into a cooperative agreement with, a 
     national nonprofit agricultural assistance institution.
       ``(B) Grant amount.--A grant made, or cooperative agreement 
     entered into, under subparagraph (A) shall provide 100 
     percent of the cost of providing information described in 
     paragraph (2).
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2013 through 2017.
       ``(e) Business and Industry Direct and Guaranteed Loans.--
       ``(1) Definition of business and industry loan.--In this 
     section, the term `business and industry loan' means a direct 
     loan that is made, or a loan that is guaranteed, by the 
     Secretary under this subsection.
       ``(2) Loan purposes.--The Secretary may make business and 
     industry loans to public, private, or cooperative 
     organizations organized for profit or nonprofit, private 
     investment funds that invest primarily in cooperative 
     organizations, or to individuals--
       ``(A) to improve, develop, or finance business, industry, 
     and employment and improve the economic and environmental 
     climate in rural communities, including pollution abatement 
     and control;
       ``(B) to conserve, develop, and use water for aquaculture 
     purposes in rural areas; and
       ``(C) to reduce the reliance on nonrenewable energy 
     resources by encouraging the development and construction of 
     renewable energy systems (including solar energy systems, 
     wind energy systems, and anaerobic digestors for the purpose 
     of energy generation), including the modification of existing 
     systems, in rural areas.
       ``(3) Loan guarantees for certain loans.--The Secretary may 
     guarantee loans made under this subsection to finance the 
     issuance of bonds for the projects described in paragraph 
     (2).
       ``(4) Maximum amount of principal.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, no loan may be made or guaranteed under this 
     subsection that exceeds $25,000,000 in principal amount.
       ``(B) Limitations on loan guarantees for cooperative 
     organizations.--

[[Page S4059]]

       ``(i) Principal amount.--Subject to clause (ii), the 
     principal amount of a business and industry loan made to a 
     cooperative organization and guaranteed under this subsection 
     shall not exceed $40,000,000.
       ``(ii) Use.--To be eligible for a guarantee under this 
     subsection for a business and industry loan made to a 
     cooperative organization, the principal amount of the loan in 
     excess of $25,000,000 shall be used to carry out a project 
     that is in a rural area and--

       ``(I) provides for the value-added processing of 
     agricultural commodities; or
       ``(II) significantly benefits 1 or more entities eligible 
     for assistance for the purposes described in paragraph (2), 
     as determined by the Secretary.

       ``(iii) Applications.--If a cooperative organization 
     submits an application for a guarantee under this paragraph, 
     the Secretary shall make the determination whether to approve 
     the application, and the Secretary may not delegate this 
     authority.
       ``(iv) Maximum amount.--The total amount of business and 
     industry loans made to cooperative organizations and 
     guaranteed for a fiscal year under this subsection with 
     principal amounts that are in excess of $25,000,000 may not 
     exceed 10 percent of the total amount of business and 
     industry loans guaranteed for the fiscal year under this 
     subsection.
       ``(5) Fees.--The Secretary may assess a 1-time fee and an 
     annual renewal fee for any guaranteed business and industry 
     loan in an amount that does not exceed 3 percent of the 
     guaranteed principal portion of the loan.
       ``(6) Intangible assets.--In determining whether a 
     cooperative organization is eligible for a guaranteed 
     business and industry loan, the Secretary may consider the 
     market value of a properly appraised brand name, patent, or 
     trademark of the cooperative.
       ``(7) Loan appraisals.--The Secretary may require that any 
     appraisal made in connection with a business and industry 
     loan be conducted by a specialized appraiser that uses 
     standards that are comparable to standards used for similar 
     purposes in the private sector, as determined by the 
     Secretary.
       ``(8) Loan guarantees for the purchase of cooperative 
     stock.--
       ``(A) In general.--The Secretary may guarantee a business 
     and industry loan to individual farmers to purchase capital 
     stock of a farmer cooperative established for the purpose of 
     processing an agricultural commodity.
       ``(B) Processing contracts during initial period.--A 
     cooperative described in subparagraph (A) for which a farmer 
     receives a guarantee to purchase stock under that 
     subparagraph may contract for services to process 
     agricultural commodities or otherwise process value added for 
     the period beginning on the date of the startup of the 
     cooperative in order to provide adequate time for the 
     planning and construction of the processing facility of the 
     cooperative.
       ``(C) Financial information.--Financial information 
     required by the Secretary from a farmer as a condition of 
     making a business and industry loan guarantee under this 
     paragraph shall be provided in the manner generally required 
     by commercial agricultural lenders in the applicable area.
       ``(9) Loans to cooperatives.--
       ``(A) Eligibility.--
       ``(i) In general.--The Secretary may make or guarantee a 
     business and industry loan to a cooperative organization that 
     is headquartered in a metropolitan area if the loan is--

       ``(I) used for a project or venture described in paragraph 
     (2) that is located in a rural area; or
       ``(II) a loan guarantee that meets the requirements of 
     paragraph (10).

       ``(ii) Equity.--The Secretary may guarantee a loan made for 
     the purchase of preferred stock or similar equity issued by a 
     cooperative organization or a fund that invests primarily in 
     cooperative organizations, if the guarantee significantly 
     benefits 1 or more entities eligible for assistance for the 
     purposes described in paragraph (2)(A), as determined by the 
     Secretary.
       ``(B) Refinancing.--A cooperative organization that is 
     eligible for a business and industry loan shall be eligible 
     to refinance an existing business and industry loan with a 
     lender if--
       ``(i) the cooperative organization--

       ``(I) is current and performing with respect to the 
     existing loan; and
       ``(II)(aa) is not, and has not been, in payment default, 
     with respect to the existing loan; or
       ``(bb) has not converted any of the collateral with respect 
     to the existing loan; and

       ``(ii) there is adequate security or full collateral for 
     the refinanced loan.
       ``(10) Loan guarantees in nonrural areas.--The Secretary 
     may guarantee a business and industry loan to a cooperative 
     organization for a facility that is not located in a rural 
     area if--
       ``(A) the primary purpose of the loan guarantee is for a 
     facility to provide value-added processing for agricultural 
     producers that are located within 80 miles of the facility;
       ``(B) the applicant demonstrates to the Secretary that the 
     primary benefit of the loan guarantee will be to provide 
     employment for residents of a rural area; and
       ``(C) the total amount of business and industry loans 
     guaranteed for a fiscal year under this paragraph does not 
     exceed 10 percent of the business and industry loans 
     guaranteed for the fiscal year under this subsection.
       ``(11) Locally or regionally produced agricultural food 
     products.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Locally or regionally produced agricultural food 
     product.--The term `locally or regionally produced 
     agricultural food product' means any agricultural food 
     product that is raised, produced, and distributed in--

       ``(I) the locality or region in which the final product is 
     marketed, so that the total distance that the product is 
     transported is less than 400 miles from the origin of the 
     product; or
       ``(II) the State in which the product is produced.

       ``(ii) Underserved community.--The term `underserved 
     community' means a community (including an urban or rural 
     community and an Indian tribal community) that, as determined 
     by the Secretary, has--

       ``(I) limited access to affordable, healthy foods, 
     including fresh fruits and vegetables, in grocery retail 
     stores or farmer-to-consumer direct markets; and
       ``(II) a high rate of hunger or food insecurity or a high 
     poverty rate.

       ``(B) Loan and loan guarantee program.--
       ``(i) In general.--The Secretary shall make or guarantee 
     loans to individuals, cooperatives, cooperative 
     organizations, businesses, and other entities to establish 
     and facilitate enterprises that process, distribute, 
     aggregate, store, and market locally or regionally produced 
     agricultural food products to support community development 
     and farm income.
       ``(ii) Requirement.--The recipient of a loan or loan 
     guarantee under this paragraph shall include in an 
     appropriate agreement with retail and institutional 
     facilities to which the recipient sells locally or regionally 
     produced agricultural food products a requirement to inform 
     consumers of the retail or institutional facilities that the 
     consumers are purchasing or consuming locally or regionally 
     produced agricultural food products.
       ``(iii) Priority.--In making or guaranteeing a loan under 
     this paragraph, the Secretary shall give priority to projects 
     that have components benefitting underserved communities.
       ``(iv) Reports.--Not later than 2 years after the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012 and annually thereafter, 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, and publish on the Internet, a report that 
     describes projects carried out using loans or loan guarantees 
     made under clause (i), including--

       ``(I) summary information about all projects;
       ``(II) the characteristics of the communities served; and
       ``(III) resulting benefits.

       ``(v) Reservation of funds.--For each of fiscal years 2012 
     through 2017, the Secretary shall reserve not less than 5 
     percent of the total amount of funds made available to carry 
     out this subsection to carry out this paragraph until April 1 
     of the fiscal year.
       ``(vi) Outreach.--The Secretary shall develop and implement 
     an outreach plan to publicize the availability of loans and 
     loan guarantees under this paragraph, working closely with 
     rural cooperative development centers, credit unions, 
     community development financial institutions, regional 
     economic development authorities, and other financial and 
     economic development entities.
       ``(12) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subsection 
     $75,000,000 for each of fiscal years 2013 through 2017.
       ``(f) Relending Programs.--
       ``(1) Intermediate relending program.--
       ``(A) In general.--The Secretary may make or guarantee 
     loans to eligible entities described in subparagraph (B) so 
     that the eligible entities may relend the funds to 
     individuals and entities for the purposes described in 
     subparagraph (C).
       ``(B) Eligible entities.--Entities eligible for loans and 
     loan guarantees described in subparagraph (A) are--
       ``(i) public agencies;
       ``(ii) Indian tribes;
       ``(iii) cooperatives; and
       ``(iv) nonprofit corporations.
       ``(C) Eligible purposes.--The proceeds from loans made or 
     guaranteed by the Secretary pursuant to subparagraph (A) may 
     be relent by eligible entities for projects that--
       ``(i) predominately serve communities in rural areas; and
       ``(ii) as determined by the Secretary--

       ``(I) promote community development;
       ``(II) establish new businesses;
       ``(III) establish and support microlending programs; and
       ``(IV) create or retain employment opportunities.

       ``(D) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2013 through 2017.
       ``(2) Rural microentrepreneur assistance program.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Microentrepreneur.--The term `microentrepreneur' 
     means an owner and operator, or prospective owner and 
     operator, of a rural microenterprise who is unable to obtain 
     sufficient training, technical assistance, or credit other 
     than under this subsection, as determined by the Secretary.

[[Page S4060]]

       ``(ii) Microenterprise development organization.--The term 
     `microenterprise development organization' means an 
     organization that is--

       ``(I) a nonprofit entity;
       ``(II) an Indian tribe, the tribal government of which 
     certifies to the Secretary that--

       ``(aa) no microenterprise development organization serves 
     the Indian tribe; and
       ``(bb) no rural microentrepreneur assistance program exists 
     under the jurisdiction of the Indian tribe;

       ``(III) a public institution of higher education; or
       ``(IV) a collaboration of rural nonprofit entities serving 
     a region or State, if 1 lead nonprofit entity is the sole 
     underwriter of all loans and is responsible for associated 
     risks.

       ``(iii) Microloan.--The term `microloan' means a business 
     loan of not more than $50,000 that is provided to a rural 
     microenterprise.
       ``(iv) Program.--The term `program' means the rural 
     microentrepreneur assistance program established under 
     subparagraph (B).
       ``(v) Rural microenterprise.--The term `rural 
     microenterprise' means a business entity with not more than 
     10 full-time equivalent employees located in a rural area.
       ``(vi) Training.--The term `training' means teaching broad 
     business principles or general business skills in a group or 
     public setting.
       ``(vii) Technical assistance.--The term `technical 
     assistance' means working with a business client in a 1-to-1 
     manner to provide business and financial management 
     counseling, assist in the preparation of business or 
     marketing plans, or provide other skills tailored to an 
     individual microentrepreneur.
       ``(B) Rural microentrepreneur assistance program.--
       ``(i) Establishment.--The Secretary shall establish a rural 
     microentrepreneur assistance program to provide loans and 
     grants to support microentrepreneurs in the development and 
     ongoing success of rural microenterprises.
       ``(ii) Purpose.--The purpose of the program is to provide 
     microentrepreneurs with--

       ``(I) the skills necessary to establish new rural 
     microenterprises; and
       ``(II) continuing technical and financial assistance 
     related to the successful operation of rural 
     microenterprises.

       ``(iii) Loans.--

       ``(I) In general.--The Secretary shall make loans to 
     microenterprise development organizations for the purpose of 
     providing fixed-interest rate microloans to 
     microentrepreneurs for startup and growing rural 
     microenterprises.
       ``(II) Loan terms.--A loan made by the Secretary to a 
     microenterprise development organization under this 
     subparagraph shall--

       ``(aa) be for a term not to exceed 20 years; and
       ``(bb) bear an annual interest rate of at least 1 percent.

       ``(III) Loan loss reserve fund.--The Secretary shall 
     require each microenterprise development organization that 
     receives a loan under this subparagraph to--

       ``(aa) establish a loan loss reserve fund; and
       ``(bb) maintain the reserve fund in an amount equal to at 
     least 5 percent of the outstanding balance of such loans owed 
     by the microenterprise development organization, until all 
     obligations owed to the Secretary under this subparagraph are 
     repaid.

       ``(IV) Deferral of interest and principal.--The Secretary 
     may permit the deferral of payments on principal and interest 
     due on a loan to a microenterprise development organization 
     made under this paragraph for a 2-year period beginning on 
     the date on which the loan is made.

       ``(iv) Grants to support rural microenterprise 
     development.--

       ``(I) In general.--The Secretary shall make grants to 
     microenterprise development organizations--

       ``(aa) to provide training and technical assistance, and 
     other related services to rural microentrepreneurs; and
       ``(bb) to carry out such other projects and activities as 
     the Secretary determines appropriate to further the purposes 
     of the program.

       ``(II) Selection.--In making grants under subclause (I), 
     the Secretary shall--

       ``(aa) place an emphasis on microenterprise development 
     organizations that serve microentrepreneurs that are located 
     in rural areas that have suffered significant outward 
     migration, as determined by the Secretary; and
       ``(bb) ensure, to the maximum extent practicable, that 
     grant recipients include microenterprise development 
     organizations of varying sizes and that serve racially and 
     ethnically diverse populations.
       ``(v) Grants to assist microentrepreneurs.--

       ``(I) In general.--The Secretary shall make annual grants 
     to microenterprise development organizations to provide 
     technical assistance to microentrepreneurs that--

       ``(aa) received a loan from the microenterprise development 
     organization under subparagraph (B)(iii); or
       ``(bb) are seeking a loan from the microenterprise 
     development organization under subparagraph (B)(iii).

       ``(II) Maximum amount of technical assistance grant.--The 
     maximum amount of a grant under this clause shall be in an 
     amount equal to not more than 25 percent of the total 
     outstanding balance of microloans made by the microenterprise 
     development organization under clause (iii), as of the date 
     the grant is awarded.

       ``(vi) Administrative expenses.--Not more than 10 percent 
     of a grant received by a microenterprise development 
     organization for a fiscal year under this subparagraph may be 
     used to pay administrative expenses.
       ``(C) Administration.--
       ``(i) Matching requirement.--As a condition of any grant 
     made under clauses (iv) and (v) of subparagraph (B), the 
     Secretary shall require the microenterprise development 
     organization to match not less than 15 percent of the total 
     amount of the grant in the form of matching funds (including 
     community development block grants), indirect costs, or in-
     kind goods or services.
       ``(ii) Oversight.--At a minimum, not later than December 1 
     of each fiscal year, a microenterprise development 
     organization that receives a loan or grant under this section 
     shall provide to the Secretary such information as the 
     Secretary may require to ensure that assistance provided 
     under this section is used for the purposes for which the 
     loan or grant was made.
       ``(D) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $40,000,000 
     for each of fiscal years 2013 through 2017.

     ``SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Articles.--The term `articles' means articles of 
     incorporation for an incorporated body or the functional 
     equivalent or other similar documents specified by the 
     Secretary for other business entities.
       ``(2) Developmental venture capital.--The term 
     `developmental venture capital' means capital in the form of 
     equity capital investments in rural business investment 
     companies with an objective of fostering economic development 
     in rural areas.
       ``(3) Employee welfare benefit plan; pension plan.--
       ``(A) In general.--The terms `employee welfare benefit 
     plan' and `pension plan' have the meanings given the terms in 
     section 3 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1002).
       ``(B) Inclusions.--The terms `employee welfare benefit 
     plan' and `pension plan' include--
       ``(i) public and private pension or retirement plans 
     subject to this subtitle; and
       ``(ii) similar plans not covered by this subtitle that have 
     been established, and that are maintained, by the Federal 
     Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State) for the benefit of employees.
       ``(4) Equity capital.--The term `equity capital' means 
     common or preferred stock or a similar instrument, including 
     subordinated debt with equity features.
       ``(5) Leverage.--The term `leverage' includes--
       ``(A) debentures purchased or guaranteed by the Secretary;
       ``(B) participating securities purchased or guaranteed by 
     the Secretary; and
       ``(C) preferred securities outstanding as of the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012.
       ``(6) License.--The term `license' means a license issued 
     by the Secretary in accordance with in subsection (d)(5).
       ``(7) Limited liability company.--The term `limited 
     liability company' means a business entity that is organized 
     and operating in accordance with a State limited liability 
     company law approved by the Secretary.
       ``(8) Member.--The term `member' means, with respect to a 
     rural business investment company that is a limited liability 
     company, a holder of an ownership interest, or a person 
     otherwise admitted to membership in the limited liability 
     company.
       ``(9) Operational assistance.--The term `operational 
     assistance' means management, marketing, and other technical 
     assistance that assists a rural business concern with 
     business development.
       ``(10) Participation agreement.--The term `participation 
     agreement' means an agreement, between the Secretary and a 
     rural business investment company granted final approval 
     under subsection (d)(5), that requires the rural business 
     investment company to make investments in smaller enterprises 
     in rural areas.
       ``(11) Private capital.--
       ``(A) In general.--The term `private capital' means the 
     total of--
       ``(i)(I) the paid-in capital and paid-in surplus of a 
     corporate rural business investment company;
       ``(II) the contributed capital of the partners of a 
     partnership rural business investment company; or
       ``(III) the equity investment of the members of a limited 
     liability company rural business investment company; and
       ``(ii) unfunded binding commitments from investors that 
     meet criteria established by the Secretary to contribute 
     capital to the rural business investment company, except 
     that--

       ``(I) unfunded commitments may be counted as private 
     capital for purposes of approval by the Secretary of any 
     request for leverage; but
       ``(II) leverage shall not be funded based on the 
     commitments.

       ``(B) Exclusions.--The term `private capital' does not 
     include--
       ``(i) any funds borrowed by a rural business investment 
     company from any source;

[[Page S4061]]

       ``(ii) any funds obtained through the issuance of leverage; 
     or
       ``(iii) any funds obtained directly or indirectly from the 
     Federal Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State), except for--

       ``(I) funds obtained from the business revenues (excluding 
     any governmental appropriation) of any Federally chartered or 
     government-sponsored enterprise established prior to the date 
     of enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012;
       ``(II) funds invested by an employee welfare benefit plan 
     or pension plan; and
       ``(III) any qualified nonprivate funds (if the investors of 
     the qualified nonprivate funds do not control, directly or 
     indirectly, the management, board of directors, general 
     partners, or members of the rural business investment 
     company).

       ``(12) Qualified nonprivate funds.--The term `qualified 
     nonprivate funds' means any--
       ``(A) funds directly or indirectly invested in any 
     applicant or rural business investment company on or before 
     the date of enactment of the Agriculture Reform, Food, and 
     Jobs Act of 2012 by any Federal agency, other than the 
     Department, under a provision of law explicitly mandating the 
     inclusion of those funds in the definition of the term 
     `private capital'; and
       ``(B) funds invested in any applicant or rural business 
     investment company by 1 or more entities of any State 
     (including by a political subdivision, agency, or 
     instrumentality of the State and including any guarantee 
     extended by those entities) in an aggregate amount that does 
     not exceed 33 percent of the private capital of the applicant 
     or rural business investment company.
       ``(13) Rural business concern.--The term `rural business 
     concern' means--
       ``(A) a public, private, or cooperative for-profit or 
     nonprofit organization;
       ``(B) a for-profit or nonprofit business controlled by an 
     Indian tribe; or
       ``(C) any other person or entity that primarily operates in 
     a rural area, as determined by the Secretary.
       ``(14) Rural business investment company.--The term `rural 
     business investment company' means a company that--
       ``(A) has been granted final approval by the Secretary 
     under subsection (d)(5); and
       ``(B) has entered into a participation agreement with the 
     Secretary.
       ``(15) Smaller enterprise.--
       ``(A) In general.--The term `smaller enterprise' means any 
     rural business concern that, together with its affiliates--
       ``(i) has--

       ``(I) a net financial worth of not more than $6,000,000, as 
     of the date on which assistance is provided under this 
     section to the rural business concern; and
       ``(II) except as provided in subparagraph (B), an average 
     net income for the 2-year period preceding the date on which 
     assistance is provided under this section to the rural 
     business concern, of not more than $2,000,000, after Federal 
     income taxes (excluding any carryover losses); or

       ``(ii) satisfies the standard industrial classification 
     size standards established by the Administrator of the Small 
     Business Administration for the industry in which the rural 
     business concern is primarily engaged.
       ``(B) Exception.--For purposes of subparagraph (A)(i)(II), 
     if the rural business concern is not required by law to pay 
     Federal income taxes at the enterprise level, but is required 
     to pass income through to the shareholders, partners, 
     beneficiaries, or other equitable owners of the business 
     concern, the net income of the business concern shall be 
     determined by allowing a deduction in an amount equal to the 
     total of--
       ``(i) if the rural business concern is not required by law 
     to pay State (and local, if any) income taxes at the 
     enterprise level, the product obtained by multiplying--

       ``(I) the net income (determined without regard to this 
     subparagraph); by
       ``(II) the marginal State income tax rate (or by the 
     combined State and local income tax rates, as applicable) 
     that would have applied if the business concern were a 
     corporation; and

       ``(ii) the product obtained by multiplying--

       ``(I) the net income (so determined) less any deduction for 
     State (and local) income taxes calculated under clause (i); 
     by
       ``(II) the marginal Federal income tax rate that would have 
     applied if the rural business concern were a corporation.

       ``(b) Purposes.--The purposes of the Rural Business 
     Investment Program established under this section are--
       ``(1) to promote economic development and the creation of 
     wealth and job opportunities in rural areas and among 
     individuals living in those areas by encouraging 
     developmental venture capital investments in smaller 
     enterprises primarily located in rural areas; and
       ``(2) to establish a developmental venture capital program, 
     with the mission of addressing the unmet equity investment 
     needs of small enterprises located in rural areas, by 
     authorizing the Secretary--
       ``(A) to enter into participation agreements with rural 
     business investment companies;
       ``(B) to guarantee debentures of rural business investment 
     companies to enable each rural business investment company to 
     make developmental venture capital investments in smaller 
     enterprises in rural areas; and
       ``(C) to make grants to rural business investment 
     companies, and to other entities, for the purpose of 
     providing operational assistance to smaller enterprises 
     financed, or expected to be financed, by rural business 
     investment companies.
       ``(c) Establishment.--In accordance with this subtitle, the 
     Secretary shall establish a Rural Business Investment 
     Program, under which the Secretary may--
       ``(1) enter into participation agreements with companies 
     granted final approval under subsection (d)(5) for the 
     purposes described in subsection (b);
       ``(2) guarantee the debentures issued by rural business 
     investment companies as provided in subsection (e); and
       ``(3) make grants to rural business investment companies, 
     and to other entities, under subsection (h).
       ``(d) Selection of Rural Business Investment Companies.--
       ``(1) Eligibility.--A company shall be eligible to apply to 
     participate, as a rural business investment company, in the 
     program established under this section if--
       ``(A) the company is a newly formed for-profit entity or a 
     newly formed for-profit subsidiary of such an entity;
       ``(B) the company has a management team with experience in 
     community development financing or relevant venture capital 
     financing; and
       ``(C) the company will invest in enterprises that will 
     create wealth and job opportunities in rural areas, with an 
     emphasis on smaller enterprises.
       ``(2) Application.--To participate, as a rural business 
     investment company, in the program established under this 
     section, a company meeting the eligibility requirements of 
     paragraph (1) shall submit an application to the Secretary 
     that includes--
       ``(A) a business plan describing how the company intends to 
     make successful developmental venture capital investments in 
     identified rural areas;
       ``(B) information regarding the community development 
     finance or relevant venture capital qualifications and 
     general reputation of the management of the company;
       ``(C) a description of how the company intends to work with 
     community-based organizations and local entities (including 
     local economic development companies, local lenders, and 
     local investors) and to seek to address the unmet equity 
     capital needs of the communities served;
       ``(D) a proposal describing how the company intends to use 
     the grant funds provided under this section to provide 
     operational assistance to smaller enterprises financed by the 
     company, including information regarding whether the company 
     intends to use licensed professionals, as necessary, on the 
     staff of the company or from an outside entity;
       ``(E) with respect to binding commitments to be made to the 
     company under this section, an estimate of the ratio of cash 
     to in-kind contributions;
       ``(F) a description of the criteria to be used to evaluate 
     whether and to what extent the company meets the purposes of 
     the program established under this section;
       ``(G) information regarding the management and financial 
     strength of any parent firm, affiliated firm, or any other 
     firm essential to the success of the business plan of the 
     company; and
       ``(H) such other information as the Secretary may require.
       ``(3) Status.--Not later than 90 days after the initial 
     receipt by the Secretary of an application under this 
     subsection, the Secretary shall provide to the applicant a 
     written report describing the status of the application and 
     any requirements remaining for completion of the application.
       ``(4) Matters considered.--In reviewing and processing any 
     application under this subsection, the Secretary shall--
       ``(A) determine whether--
       ``(i) the applicant meets the requirements of paragraph 
     (5); and
       ``(ii) the management of the applicant is qualified and has 
     the knowledge, experience, and capability necessary to comply 
     with this section;
       ``(B) take into consideration--
       ``(i) the need for and availability of financing for rural 
     business concerns in the geographic area in which the 
     applicant is to commence business;
       ``(ii) the general business reputation of the owners and 
     management of the applicant; and
       ``(iii) the probability of successful operations of the 
     applicant, including adequate profitability and financial 
     soundness; and
       ``(C) not take into consideration any projected shortage or 
     unavailability of grant funds or leverage.
       ``(5) Approval; license.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary may approve an applicant to operate as a rural 
     business investment company under this subtitle and license 
     the applicant as a rural business investment company, if--
       ``(i) the Secretary determines that the application 
     satisfies the requirements of paragraph (2);
       ``(ii) the area in which the rural business investment 
     company is to conduct its operations, and establishment of 
     branch offices or agencies (if authorized by the articles), 
     are approved by the Secretary; and
       ``(iii) the applicant enters into a participation agreement 
     with the Secretary.
       ``(B) Capital requirements.--
       ``(i) In general.--Notwithstanding any other provision of 
     this section, the Secretary

[[Page S4062]]

     may approve an applicant to operate as a rural business 
     investment company under this section and designate the 
     applicant as a rural business investment company, if the 
     Secretary determines that the applicant--

       ``(I) has private capital as determined by the Secretary;
       ``(II) would otherwise be approved under this section, 
     except that the applicant does not satisfy the requirements 
     of subsection (i)(3); and
       ``(III) has a viable business plan that--

       ``(aa) reasonably projects profitable operations; and
       ``(bb) has a reasonable timetable for achieving a level of 
     private capital that satisfies the requirements of subsection 
     (i)(3).
       ``(ii) Leverage.--An applicant approved under clause (i) 
     shall not be eligible to receive leverage under this section 
     until the applicant satisfies the requirements of section 
     3602(i)(3).
       ``(iii) Grants.--An applicant approved under clause (i) 
     shall be eligible for grants under subsection (h) in 
     proportion to the private capital of the applicant, as 
     determined by the Secretary.
       ``(e) Debentures.--
       ``(1) In general.--The Secretary may guarantee the timely 
     payment of principal and interest, as scheduled, on 
     debentures issued by any rural business investment company.
       ``(2) Terms and conditions.--The Secretary may make 
     guarantees under this subsection on such terms and conditions 
     as the Secretary considers appropriate, except that the term 
     of any debenture guaranteed under this section shall not 
     exceed 15 years.
       ``(3) Full faith and credit of the united states.--Section 
     3901 shall apply to any guarantee under this subsection.
       ``(4) Maximum guarantee.--Under this subsection, the 
     Secretary may--
       ``(A) guarantee the debentures issued by a rural business 
     investment company only to the extent that the total face 
     amount of outstanding guaranteed debentures of the rural 
     business investment company does not exceed the lesser of--
       ``(i) 300 percent of the private capital of the rural 
     business investment company; or
       ``(ii) $105,000,000; and
       ``(B) provide for the use of discounted debentures.
       ``(f) Issuance and Guarantee of Trust Certificates.--
       ``(1) Issuance.--The Secretary may issue trust certificates 
     representing ownership of all or a fractional part of 
     debentures issued by a rural business investment company and 
     guaranteed by the Secretary under this section, if the 
     certificates are based on and backed by a trust or pool 
     approved by the Secretary and composed solely of guaranteed 
     debentures.
       ``(2) Guarantee.--
       ``(A) In general.--The Secretary may, under such terms and 
     conditions as the Secretary considers appropriate, guarantee 
     the timely payment of the principal of and interest on trust 
     certificates issued by the Secretary or agents of the 
     Secretary for purposes of this subsection.
       ``(B) Limitation.--Each guarantee under this paragraph 
     shall be limited to the extent of principal and interest on 
     the guaranteed debentures that compose the trust or pool.
       ``(C) Prepayment or default.--
       ``(i) In general.--

       ``(I) Authority to prepay.--A debenture may be prepaid at 
     any time without penalty.
       ``(II) Reduction of guarantee.--Subject to subclause (I), 
     if a debenture in a trust or pool is prepaid, or in the event 
     of default of such a debenture, the guarantee of timely 
     payment of principal and interest on the trust certificates 
     shall be reduced in proportion to the amount of principal and 
     interest the prepaid debenture represents in the trust or 
     pool.

       ``(ii) Interest.--Interest on prepaid or defaulted 
     debentures shall accrue and be guaranteed by the Secretary 
     only through the date of payment of the guarantee.
       ``(iii) Redemption.--At any time during the term of a trust 
     certificate, the trust certificate may be called for 
     redemption due to prepayment or default of all debentures.
       ``(3) Full faith and credit of the united states.--Section 
     3901 shall apply to any guarantee of a trust certificate 
     issued by the Secretary under this section.
       ``(4) Subrogation and ownership rights.--
       ``(A) Subrogation.--If the Secretary pays a claim under a 
     guarantee issued under this section, the claim shall be 
     subrogated fully to the rights satisfied by the payment.
       ``(B) Ownership rights.--No Federal, State, or local law 
     shall preclude or limit the exercise by the Secretary of the 
     ownership rights of the Secretary in a debenture residing in 
     a trust or pool against which 1 or more trust certificates 
     are issued under this subsection.
       ``(5) Management and administration.--
       ``(A) Registration.--The Secretary shall provide for a 
     central registration of all trust certificates issued under 
     this subsection.
       ``(B) Creation of pools.--The Secretary may--
       ``(i) maintain such commercial bank accounts or investments 
     in obligations of the United States as may be necessary to 
     facilitate the creation of trusts or pools backed by 
     debentures guaranteed under this subtitle; and
       ``(ii) issue trust certificates to facilitate the creation 
     of those trusts or pools.
       ``(C) Fidelity bond or insurance requirement.--Any agent 
     performing functions on behalf of the Secretary under this 
     paragraph shall provide a fidelity bond or insurance in such 
     amount as the Secretary considers to be necessary to fully 
     protect the interests of the United States.
       ``(D) Regulation of brokers and dealers.--The Secretary may 
     regulate brokers and dealers in trust certificates issued 
     under this subsection.
       ``(E) Electronic registration.--Nothing in this paragraph 
     prohibits the use of a book-entry or other electronic form of 
     registration for trust certificates issued under this 
     subsection.
       ``(g) Fees.--
       ``(1) In general.--The Secretary may charge a fee that does 
     not exceed $500 with respect to any guarantee or grant issued 
     under this section.
       ``(2) Trust certificate.--Notwithstanding paragraph (1), 
     the Secretary shall not collect a fee for any guarantee of a 
     trust certificate under subsection (f), except that any agent 
     of the Secretary may collect a fee that does not exceed $500 
     for the functions described in subsection (f)(5)(B).
       ``(3) License.--
       ``(A) In general.--Except as provided in subparagraph (C), 
     the Secretary may prescribe fees to be paid by each applicant 
     for a license to operate as a rural business investment 
     company under this section.
       ``(B) Use of amounts.--Fees collected under this 
     paragraph--
       ``(i) shall be deposited in the account for salaries and 
     expenses of the Secretary;
       ``(ii) are authorized to be appropriated solely to cover 
     the costs of licensing examinations; and
       ``(iii) shall--

       ``(I) in the case of a license issued before the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012, not exceed $500 for any fee collected under this 
     paragraph; and
       ``(II) in the case of a license issued after the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012, be a rate as determined by the Secretary.

       ``(C) Prohibition on collection of certain fees.--In the 
     case of a license described in subparagraph (A) that was 
     approved before July 1, 2007, the Secretary shall not collect 
     any fees due on or after the date of enactment of the 
     Agriculture Reform, Food, and Jobs Act of 2012.
       ``(h) Operational Assistance Grants.--
       ``(1) In general.--In accordance with this subsection, the 
     Secretary may make grants to rural business investment 
     companies and to other entities, as authorized by this 
     section, to provide operational assistance to smaller 
     enterprises financed, or expected to be financed, by the 
     entities.
       ``(2) Terms.--Grants made under this subsection shall be 
     made over a multiyear period (not to exceed 10 years) under 
     such terms as the Secretary may require.
       ``(3) Use of funds.--The proceeds of a grant made under 
     this subsection may be used by the rural business investment 
     company receiving the grant only to provide operational 
     assistance in connection with an equity or prospective equity 
     investment in a business located in a rural area.
       ``(4) Submission of plans.--A rural business investment 
     company shall be eligible for a grant under this subsection 
     only if the rural business investment company submits to the 
     Secretary, in such form and manner as the Secretary may 
     require, a plan for use of the grant.
       ``(5) Grant amount.--
       ``(A) Rural business investment companies.--The amount of a 
     grant made under this subsection to a rural business 
     investment company shall be equal to the lesser of--
       ``(i) 10 percent of the private capital raised by the rural 
     business investment company; or
       ``(ii) $1,000,000.
       ``(6) Other entities.--The amount of a grant made under 
     this subsection to any entity other than a rural business 
     investment company shall be equal to the resources (in cash 
     or in kind) raised by the entity in accordance with the 
     requirements applicable to rural business investment 
     companies under this section.
       ``(i) Rural Business Investment Companies.--
       ``(1) Organization.--For purposes of this subsection, a 
     rural business investment company shall--
       ``(A) be an incorporated body, a limited liability company, 
     or a limited partnership organized and chartered or otherwise 
     existing under State law solely for the purpose of performing 
     the functions and conducting the activities authorized by 
     this section; and
       ``(B)(i) if incorporated, have succession for a period of 
     not less than 30 years unless earlier dissolved by the 
     shareholders of the rural business investment company; and
       ``(ii) if a limited partnership or a limited liability 
     company, have succession for a period of not less than 10 
     years; and
       ``(iii) possess the powers reasonably necessary to perform 
     the functions and conduct the activities.
       ``(2) Articles.--The articles of any rural business 
     investment company--
       ``(A) shall specify in general terms--
       ``(i) the purposes for which the rural business investment 
     company is formed;
       ``(ii) the name of the rural business investment company;
       ``(iii) the 1 or more areas in which the operations of the 
     rural business investment company are to be carried out;

[[Page S4063]]

       ``(iv) the place where the principal office of the rural 
     business investment company is to be located; and
       ``(v) the amount and classes of the shares of capital stock 
     of the rural business investment company;
       ``(B) may contain any other provisions consistent with this 
     section that the rural business investment company may 
     determine appropriate to adopt for the regulation of the 
     business of the rural business investment company and the 
     conduct of the affairs of the rural business investment 
     company; and
       ``(C) shall be subject to the approval of the Secretary.
       ``(3) Capital requirements.--
       ``(A) In general.--Each rural business investment company 
     shall be required to meet the capital requirements as 
     provided by the Secretary.
       ``(B) Time frame.--Each rural business investment company 
     shall have a period of 2 years to meet the capital 
     requirements of this paragraph.
       ``(C) Adequacy.--In addition to the requirements of 
     subparagraph (A), the Secretary shall--
       ``(i) determine whether the private capital of each rural 
     business investment company is adequate to ensure a 
     reasonable prospect that the rural business investment 
     company will be operated soundly and profitably, and managed 
     actively and prudently in accordance with the articles of the 
     rural business investment company;
       ``(ii) determine that the rural business investment company 
     will be able to comply with the requirements of this section;
       ``(iii) require that at least 75 percent of the capital of 
     each rural business investment company is invested in rural 
     business concerns;
       ``(iv) ensure that the rural business investment company is 
     designed primarily to meet equity capital needs of the 
     businesses in which the rural business investment company 
     invests and not to compete with traditional small business 
     financing by commercial lenders; and
       ``(v) require that the rural business investment company 
     makes short-term non-equity investments of less than 5 years 
     only to the extent necessary to preserve an existing 
     investment.
       ``(4) Diversification of ownership.--The Secretary shall 
     ensure that the management of each rural business investment 
     company licensed after the date of enactment of the 
     Agriculture Reform, Food, and Jobs Act of 2012 is 
     sufficiently diversified from and unaffiliated with the 
     ownership of the rural business investment company so as to 
     ensure independence and objectivity in the financial 
     management and oversight of the investments and operations of 
     the rural business investment company.
       ``(j) Financial Institution Investments.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection and notwithstanding any other provision of law, 
     the following banks, associations, and institutions are 
     eligible both to establish and invest in any rural business 
     investment company or in any entity established to invest 
     solely in rural business investment companies:
       ``(A) Any bank or savings association the deposits of which 
     are insured under the Federal Deposit Insurance Act (12 
     U.S.C. 1811 et seq.), including an investment pool created 
     entirely by such bank or savings association.
       ``(B) Any Farm Credit System institution described in 
     subsection 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2002(a)).
       ``(2) Limitation.--No bank, association, or institution 
     described in paragraph (1) may make investments described in 
     paragraph (1) that are greater than 5 percent of the capital 
     and surplus of the bank, association, or institution.
       ``(3) Limitation on rural business investment companies 
     controlled by farm credit system institutions.--If a Farm 
     Credit System institution described in section 1.2(a) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 
     25 percent of the shares of a rural business investment 
     company, either alone or in conjunction with other System 
     institutions (or affiliates), the rural business investment 
     company shall not provide equity investments in, or provide 
     other financial assistance to, entities that are not 
     otherwise eligible to receive financing from the Farm Credit 
     System under that Act (12 U.S.C. 2001 et seq.).
       ``(k) Examinations.--
       ``(1) In general.--Each rural business investment company 
     that participates in the program established under this 
     section shall be subject to examinations made at the 
     direction of the Secretary in accordance with this 
     subsection.
       ``(2) Assistance of private sector entities.--An 
     examination under this subsection may be conducted with the 
     assistance of a private sector entity that has the 
     qualifications and the expertise necessary to conduct such an 
     examination.
       ``(3) Costs.--
       ``(A) In general.--The Secretary may assess the cost of an 
     examination under this section, including compensation of the 
     examiners, against the rural business investment company 
     examined.
       ``(B) Payment.--Any rural business investment company 
     against which the Secretary assesses costs under this 
     subparagraph shall pay the costs.
       ``(4) Deposit of funds.--Funds collected under this 
     subsection shall--
       ``(A) be deposited in the account that incurred the costs 
     for carrying out this subsection;
       ``(B) be made available to the Secretary to carry out this 
     subsection, without further appropriation; and
       ``(C) remain available until expended.
       ``(l) Reporting Requirements.--
       ``(1) Rural business investment companies.--Each entity 
     that participates in a program established under this section 
     shall provide to the Secretary such information as the 
     Secretary may require, including--
       ``(A) information relating to the measurement criteria that 
     the entity proposed in the program application of the rural 
     business investment company; and
       ``(B) in each case in which the entity under this section 
     makes an investment in, or a loan or grant to, a business 
     that is not located in a rural area, a report on the number 
     and percentage of employees of the business who reside in 
     those areas.
       ``(2) Public reports.--
       ``(A) In general.--The Secretary shall prepare and make 
     available to the public an annual report on the programs 
     established under this section, including detailed 
     information on--
       ``(i) the number of rural business investment companies 
     licensed by the Secretary during the previous fiscal year;
       ``(ii) the aggregate amount of leverage that rural business 
     investment companies have received from the Federal 
     Government during the previous fiscal year;
       ``(iii) the aggregate number of each type of leveraged 
     instruments used by rural business investment companies 
     during the previous fiscal year and how each number compares 
     to previous fiscal years;
       ``(iv) the number of rural business investment company 
     licenses surrendered and the number of rural business 
     investment companies placed in liquidation during the 
     previous fiscal year, identifying the amount of leverage each 
     rural business investment company has received from the 
     Federal Government and the type of leverage instruments each 
     rural business investment company has used;
       ``(v) the amount of losses sustained by the Federal 
     Government as a result of operations under this section 
     during the previous fiscal year and an estimate of the total 
     losses that the Federal Government can reasonably expect to 
     incur as a result of the operations during the current fiscal 
     year;
       ``(vi) actions taken by the Secretary to maximize 
     recoupment of funds of the Federal Government expended to 
     implement and administer the Rural Business Investment 
     Program under this section during the previous fiscal year 
     and to ensure compliance with the requirements of this 
     section (including regulations);
       ``(vii) the amount of Federal Government leverage that each 
     licensee received in the previous fiscal year and the types 
     of leverage instruments each licensee used;
       ``(viii) for each type of financing instrument, the sizes, 
     types of geographic locations, and other characteristics of 
     the small business investment companies using the instrument 
     during the previous fiscal year, including the extent to 
     which the investment companies have used the leverage from 
     each instrument to make loans or equity investments in rural 
     areas; and
       ``(ix) the actions of the Secretary to carry out this 
     section
       ``(B) Prohibition.--In compiling the report required under 
     subparagraph (A), the Secretary may not--
       ``(i) compile the report in a manner that permits 
     identification of any particular type of investment by an 
     individual rural business investment company or small 
     business concern in which a rural business investment company 
     invests; or
       ``(ii) release any information that is prohibited under 
     section 1905 of title 18, United States Code.
       ``(m) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     the period of fiscal years 2008 through 2017.''.

           ``CHAPTER 3--GENERAL RURAL DEVELOPMENT PROVISIONS

     ``SEC. 3701. GENERAL PROVISIONS FOR LOANS AND GRANTS.

       ``(a) Period for Repayment.--Unless otherwise specifically 
     provided for in this subtitle, the period for repayment of a 
     loan under this subtitle shall not exceed 40 years.
       ``(b) Interest Rates.--
       ``(1) In general.--Except as otherwise provided in this 
     title, the interest rate on a loan under this subtitle shall 
     be determined by the Secretary at a rate--
       ``(A) not to exceed a sum obtained by adding--
       ``(i) the current average market yield on outstanding 
     marketable obligations of the United States with remaining 
     periods to maturity comparable to the average maturity of the 
     loan; and
       ``(ii) an amount not to exceed 1 percent, as determined by 
     the Secretary; and
       ``(B) adjusted to the nearest \1/8\ of 1 percent.
       ``(2) Water and waste facility loans and community 
     facilities loans.--
       ``(A) In general.--Notwithstanding any provision of State 
     law limiting the rate or amount of interest that may be 
     charged, taken, received, or reserved, except as provided in 
     subparagraph (C) and paragraph (5), the interest rate on a 
     loan (other than a guaranteed loan) to a public body or 
     nonprofit association (including an Indian tribe) for a water 
     or waste disposal facility or essential community facility 
     shall be determined by the Secretary at a rate not to 
     exceed--

[[Page S4064]]

       ``(i) the current market yield on outstanding municipal 
     obligations with remaining periods to maturity comparable to 
     the average maturity for the loan, and adjusted to the 
     nearest \1/8\ of 1 percent;
       ``(ii) 5 percent per year for a loan that is for the 
     upgrading of a facility or construction of a new facility as 
     required to meet applicable health or sanitary standards in--

       ``(I) an area in which the median family income of the 
     persons to be served by the facility is below the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902)); and
       ``(II) any areas the Secretary may designate in which a 
     significant percentage of the persons to be served by the 
     facilities are low income persons, as determined by the 
     Secretary; and

       ``(iii) 7 percent per year for a loan for a facility that 
     does not qualify for the 5 percent per year interest rate 
     prescribed in clause (ii) but that is located in an area in a 
     State in which the median household income of the persons to 
     be served by the facility does not exceed 100 percent of the 
     statewide nonmetropolitan median household income for the 
     State.
       ``(B) Health care and related facilities.--Notwithstanding 
     subparagraph (A), the Secretary shall establish a rate for a 
     loan for a health care or related facility that is--
       ``(i) based solely on the income of the area to be served; 
     and
       ``(ii) otherwise consistent with subparagraph (A).
       ``(C) Interest rates for water and waste disposal 
     facilities loans.--
       ``(i) In general.--Except as provided in clause (ii) and 
     notwithstanding subparagraph (A), in the case of a direct 
     loan for a water or waste disposal facility--

       ``(I) in the case of a loan that would be subject to the 5 
     percent interest rate limitation under subparagraph (A), the 
     Secretary shall establish the interest rate at a rate that is 
     equal to 60 percent of the current market yield for 
     outstanding municipal obligations with remaining periods to 
     maturity comparable to the average maturity of the loan, 
     adjusted to the nearest \1/8\ of 1 percent; and
       ``(II) in the case of a loan that would be subject to the 7 
     percent limitation under subparagraph (A), the Secretary 
     shall establish the interest rate at a rate that is equal to 
     80 percent of the current market yield for outstanding 
     municipal obligations with remaining periods to maturity 
     comparable to the average maturity of the loan, adjusted to 
     the nearest \1/8\ of 1 percent.

       ``(ii) Exception.--Clause (i) does not apply to a loan for 
     a specific project that is the subject of a loan that has 
     been approved, but not closed, as of the date of enactment of 
     the Agriculture Reform, Food, and Jobs Act of 2012.
       ``(3) Interest rates on business and other loans.--
       ``(A) In general.--Except as provided in paragraph (4), the 
     interest rates on loans under sections 3501(a)(1) (other than 
     guaranteed loans and loans as described in paragraph (2)(A)) 
     shall be as determined by the Secretary in accordance with 
     subparagraph (B).
       ``(B) Minimum rate.--The interest rates described in 
     subparagraph (A) shall be not less than the sum obtained by 
     adding--
       ``(i) such rates as determined by the Secretary of the 
     Treasury taking into consideration the current average market 
     yield on outstanding marketable obligations of the United 
     States with remaining periods to maturity comparable to the 
     average maturities of such loans, adjusted in the judgment of 
     the Secretary of the Treasury to provide for rates comparable 
     to the rates prevailing in the private market for similar 
     loans and considering the insurance by the Secretary of the 
     loans; and
       ``(ii) an additional charge, prescribed by the Secretary, 
     to cover the losses of the Secretary and cost of 
     administration, which shall be deposited in the Rural 
     Development Insurance Fund, and further adjusted to the 
     nearest \1/8\ of 1 percent.
       ``(4) Interest rates adjustments.--
       ``(A) Adjustments.--Notwithstanding any other provision of 
     this subsection, in the case of loans (other than guaranteed 
     loans) made or guaranteed under the authorities of this title 
     specified in subparagraph (C) for activities that involve the 
     use of prime farmland, the interest rates shall be the 
     interest rates otherwise applicable under this section 
     increased by 2 percent per year.
       ``(B) Prime farmland.--
       ``(i) In general.--Wherever practicable, construction by a 
     State, municipality, or other political subdivision of local 
     government that is supported by loans described in 
     subparagraph (A) shall be placed on land that is not prime 
     farmland, in order to preserve the maximum practicable 
     quantity of prime farmlands for production of food and fiber.
       ``(ii) Increased rate.--In any case in which other options 
     exist for the siting of construction described in clause (i) 
     and the governmental authority still desires to carry out the 
     construction on prime farmland, the 2-percent interest rate 
     increase provided by this paragraph shall apply, but that 
     increased interest rate shall not apply where such other 
     options do not exist.
       ``(C) Applicable authorities.--The authorities referred to 
     in subparagraph (A) are--
       ``(i) the provisions of section 3502(a) relating to loans 
     for recreational developments and essential community 
     facilities;
       ``(ii) section 3601(e)(2)(A); and
       ``(iii) section 3601(c).
       ``(c) Payment of Charges.--A borrower of a loan made or 
     guaranteed under this subtitle shall pay such fees and other 
     charges as the Secretary may require, and prepay to the 
     Secretary such taxes and insurance as the Secretary may 
     require, on such terms and conditions as the Secretary may 
     prescribe.
       ``(d) Security.--
       ``(1) In general.--The Secretary shall take as security for 
     an obligation entered into in connection with a loan made 
     under this subtitle such security as the Secretary may 
     require.
       ``(2) Liens to united states.--An instrument for security 
     under paragraph (1) may constitute a lien running to the 
     United States notwithstanding the fact that the note for the 
     security may be held by a lender other than the United 
     States.
       ``(3) Multiple loans.--A borrower may use the same 
     collateral to secure 2 or more loans made or guaranteed under 
     this subtitle, except that the outstanding amount of the 
     loans may not exceed the total value of the collateral.
       ``(e) Legal Counsel for Small Loans.--In the case of a loan 
     of less than $500,000 made or guaranteed under section 3501 
     that is evidenced by a note or mortgage (as distinguished 
     from a bond issue), the borrower shall not be required to 
     appoint bond counsel to review the legal validity of the loan 
     if the Secretary has available legal counsel to perform the 
     review.

     ``SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.

       ``(a) Priority.--In the case of any rural development 
     program authorized by this subtitle, the Secretary may give 
     priority to applications that are otherwise eligible and 
     support strategic community and economic development plans on 
     a multijurisdictional basis, as approved by the Secretary.
       ``(b) Evaluation.--In evaluating strategic applications, 
     the Secretary shall give a higher priority to strategic 
     applications for a plan described in subsection (a) that 
     demonstrate--
       ``(1) the plan was developed through the collaboration of 
     multiple stakeholders in the service area of the plan, 
     including the participation of combinations of stakeholders 
     such as State, local, and tribal governments, nonprofit 
     institutions, institutions of higher education, and private 
     entities;
       ``(2) an understanding of the applicable regional resources 
     that could support the plan, including natural resources, 
     human resources, infrastructure, and financial resources;
       ``(3) investment from other Federal agencies;
       ``(4) investment from philanthropic organizations; and
       ``(5) clear objectives for the plan and the ability to 
     establish measurable performance measures and to track 
     progress toward meeting the objectives.

     ``SEC. 3703. GUARANTEED RURAL DEVELOPMENT LOANS.

       ``(a) In General.--The Secretary may provide financial 
     assistance to a borrower for a purpose provided in this 
     subtitle by guaranteeing a loan made by any Federal or State 
     chartered bank, savings and loan association, cooperative 
     lending agency, or other legally organized lending agency.
       ``(b) Interest Rate.--The interest rate payable by a 
     borrower on the portion of a guaranteed loan that is sold by 
     a lender to the secondary market under this subtitle may be 
     lower than the interest rate charged on the portion retained 
     by the lender.
       ``(c) Maximum Guarantee of 90 Percent.--Except as provided 
     in subsections (d) and (e), a loan guarantee under this 
     subtitle shall be for not more than 90 percent of the 
     principal and interest due on the loan.
       ``(d) Refinanced Loans Guaranteed at 95 Percent.--The 
     Secretary shall guarantee 95 percent of--
       ``(1) in the case of a loan that solely refinances a direct 
     loan made under this subtitle, the principal and interest due 
     on the loan on the date of the refinancing; or
       ``(2) in the case of a loan that is used for multiple 
     purposes, the portion of the loan that refinances the 
     principal and interest due on a direct loan made under this 
     subtitle that is outstanding on the date on which the loan is 
     guaranteed.
       ``(e) Risk of Loss.--
       ``(1) In general.--Subject to subsection (b), the Secretary 
     may not make a loan under section 3501 or 3601 unless the 
     Secretary determines that no other lender is willing to make 
     the loan and assume 10 percent of the potential loss to be 
     sustained from the loan.
       ``(2) Exception for nonprofit groups.--Paragraph (1) shall 
     not apply to a public body or nonprofit association, 
     including an Indian tribe.

     ``SEC. 3704. RURAL DEVELOPMENT INSURANCE FUND.

       ``(a) Definition of Rural Development Loan.--In this 
     section, the term `rural development loan' means a loan 
     provided for by section 3501 or 3601.
       ``(b) Establishment.--There is established in the Treasury 
     of the United States a fund to be known as the `Rural 
     Development Insurance Fund' that shall be used by the 
     Secretary to discharge the obligations of the Secretary under 
     contracts making or guaranteeing rural development loans.

     ``SEC. 3705. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

       ``(a) In General.--The Secretary may designate additional 
     areas as rural economic

[[Page S4065]]

     area partnership zones to be assisted under this chapter--
       ``(1) through an open, competitive process; and
       ``(2) with priority given to rural areas--
       ``(A) with excessive unemployment or underemployment, a 
     high percentage of low-income residents, or high rates of 
     outmigration, as determined by the Secretary; and
       ``(B) that the Secretary determines have a substantial need 
     for assistance.
       ``(b) Requirements.--The Secretary shall carry out those 
     rural economic area partnership zones administratively in 
     effect on the date of enactment of the Agriculture Reform, 
     Food, and Jobs Act of 2012 in accordance with the terms and 
     conditions contained in the memoranda of agreement entered 
     into by the Secretary for the rural economic area partnership 
     zones.

     ``SEC. 3706. STREAMLINING APPLICATIONS AND IMPROVING 
                   ACCESSIBILITY OF RURAL DEVELOPMENT PROGRAMS.

       ``The Secretary shall expedite the process of creating 
     user-friendly and accessible application forms and procedures 
     prioritizing programs and applications at the individual 
     level with an emphasis on utilizing current technology 
     including online applications and submission processes.

                 ``CHAPTER 4--DELTA REGIONAL AUTHORITY

     ``SEC. 3801. DEFINITIONS.

       ``In this chapter:
       ``(1) Authority.--The term `Authority' means the Delta 
     Regional Authority established by section 3802.
       ``(2) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) acquiring or developing land;
       ``(B) constructing or equipping a highway, road, bridge, or 
     facility; or
       ``(C) carrying out other economic development activities.
       ``(3) Region.--The term `region' means the Lower 
     Mississippi (as defined in section 4 of the Delta Development 
     Act (42 U.S.C. 3121 note; Public Law 100 460)).

     ``SEC. 3802. DELTA REGIONAL AUTHORITY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the Delta Regional 
     Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     with the advice and consent of the Senate; and
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority.
       ``(3) Cochairpersons.--The Authority shall be headed by--
       ``(A) the Federal member, who shall serve as--
       ``(i) the Federal cochairperson; and
       ``(ii) a liaison between the Federal Government and the 
     Authority; and
       ``(B) a State cochairperson, who shall be--
       ``(i) a Governor of a participating State in the region; 
     and
       ``(ii) elected by the State members for a term of not less 
     than 1 year.
       ``(4) Alabama.--Notwithstanding any other provision of law, 
     the State of Alabama shall be a full member of the Authority 
     and shall be entitled to all rights and privileges that the 
     membership affords to all other participating States in the 
     Authority.
       ``(b) Alternate Members.--
       ``(1) State alternates.--The State member of a 
     participating State may have a single alternate, who shall 
     be--
       ``(A) a resident of that State; and
       ``(B) appointed by the Governor of the State.
       ``(2) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(3) Quorum.--A State alternate shall not be counted 
     toward the establishment of a quorum of the Authority in any 
     instance in which a quorum of the State members is required 
     to be present.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (c), and no voting right of any Authority member, 
     shall be delegated to any person--
       ``(A) who is not an Authority member; or
       ``(B) who is not entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--A decision by the Authority shall 
     require a majority vote of the Authority (not including any 
     member representing a State that is delinquent under 
     subsection (g)(2)(C)) to be effective.
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of an Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 3809.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the Federal or State 
     representative for which the alternate member is an 
     alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs to establish priorities and 
     approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, and local 
     planning and development activities in the region;
       ``(2) review, and where appropriate amend, priorities in a 
     development plan for the region (including 5-year regional 
     outcome targets);
       ``(3) assess the needs and assets of the region based on 
     available research, demonstrations, investigations, 
     assessments, and evaluations of the region prepared by 
     Federal, State, and local agencies, universities, local 
     development districts, and other nonprofit groups;
       ``(4) formulate and recommend to the Governors and 
     legislatures of States that participate in the Authority 
     forms of interstate cooperation;
       ``(5) work with State and local agencies in developing 
     appropriate model legislation;
       ``(6)(A) enhance the capacity of, and provide support for, 
     local development districts in the region; or
       ``(B) if no local development district exists in an area in 
     a participating State in the region, foster the creation of a 
     local development district;
       ``(7) encourage private investment in industrial, 
     commercial, and other economic development projects in the 
     region; and
       ``(8) cooperate with and assist State governments with 
     economic development programs of participating States.
       ``(e) Administration.--In carrying out subsection (d), the 
     Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute a description of the 
     proceedings and reports on actions by the Authority as the 
     Authority considers appropriate;
       ``(2) authorize, through the Federal or State cochairperson 
     or any other member of the Authority designated by the 
     Authority, the administration of oaths if the Authority 
     determines that testimony should be taken or evidence 
     received under oath;
       ``(3) request from any Federal, State, or local department 
     or agency such information as may be available to or 
     procurable by the department or agency that may be of use to 
     the Authority in carrying out duties of the Authority;
       ``(4) adopt, amend, and repeal bylaws, rules, and 
     regulations governing the conduct of Authority business and 
     the performance of Authority duties;
       ``(5) request the head of any Federal department or agency 
     to detail to the Authority such personnel as the Authority 
     requires to carry out duties of the Authority, each such 
     detail to be without loss of seniority, pay, or other 
     employee status;
       ``(6) request the head of any State department or agency or 
     local government to detail to the Authority such personnel as 
     the Authority requires to carry out duties of the Authority, 
     each such detail to be without loss of seniority, pay, or 
     other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, or cooperative agreements with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State); or
       ``(C) any person, firm, association, or corporation; and
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select.
       ``(f) Federal Agency Cooperation.--A Federal agency shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide, on request of the Federal cochairperson, 
     appropriate assistance in carrying out this chapter, in 
     accordance with applicable Federal laws (including 
     regulations).
       ``(g) Administrative Expenses.--
       ``(1) In general.--Administrative expenses of the Authority 
     (except for the expenses of the Federal cochairperson, 
     including expenses of the alternate and staff of the Federal 
     cochairperson, which shall be paid solely by the Federal 
     Government) shall be paid--
       ``(A) by the Federal Government, in an amount equal to 50 
     percent of the administrative expenses; and
       ``(B) by the States in the region participating in the 
     Authority, in an amount equal to 50 percent of the 
     administrative expenses.
       ``(2) State share.--
       ``(A) In general.--The share of administrative expenses of 
     the Authority to be paid by each State shall be determined by 
     the Authority.
       ``(B) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (A).

[[Page S4066]]

       ``(C) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this chapter shall be furnished 
     to the State (including assistance to a political subdivision 
     or a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal cochairperson.--The Federal cochairperson 
     shall be compensated by the Federal Government at level III 
     of the Executive Schedule in subchapter II of chapter 53 of 
     title 5, United States Code.
       ``(2) Alternate federal cochairperson.--The alternate 
     Federal cochairperson--
       ``(A) shall be compensated by the Federal Government at 
     level V of the Executive Schedule described in paragraph (1); 
     and
       ``(B) when not actively serving as an alternate for the 
     Federal cochairperson, shall perform such functions and 
     duties as are delegated by the Federal cochairperson.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by law of the State.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, local, or 
     intergovernmental department or agency from which the person 
     was detailed; or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation under clause (i) shall not 
     exceed the maximum rate for the Senior Executive Service 
     under section 5382 of title 5, United States Code, including 
     any applicable locality-based comparability payment that may 
     be authorized under section 5304(h)(2)(C) of that title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative duties of the 
     Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (e)(5)) shall be considered 
     to be a Federal employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, alternate, officer, or employee of the 
     Authority shall participate personally and substantially as a 
     member, alternate, officer, or employee of the Authority, 
     through decision, approval, disapproval, recommendation, the 
     rendering of advice, investigation, or otherwise, in any 
     proceeding, application, request for a ruling or other 
     determination, contract, claim, controversy, or other matter 
     in which, to knowledge of the member, alternate, officer, or 
     employee, there is a financial interest of--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision of the State) of 
     the member, alternate, officer, or employee, in which the 
     member, alternate, officer, or employee is serving as 
     officer, director, trustee, partner, or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, alternate, officer, or employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a potential conflict of 
     interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4), subsection (i), or sections 202 
     through 209 of title 18, United States Code.

     ``SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

       ``(a) In General.--The Authority may approve grants to 
     States and public and nonprofit entities for projects, 
     approved in accordance with section 3809--
       ``(1) to develop the transportation infrastructure of the 
     region for the purpose of facilitating economic development 
     in the region (except that grants for this purpose may only 
     be made to a State or local government);
       ``(2) to assist the region in obtaining the job training, 
     employment-related education, and business development (with 
     an emphasis on entrepreneurship) that are needed to build and 
     maintain strong local economies;
       ``(3) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     improving basic public services;
       ``(4) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     equipping industrial parks and related facilities; and
       ``(5) to otherwise achieve the purposes of this chapter.
       ``(b) Funding.--
       ``(1) In general.--Funds for grants under subsection (a) 
     may be provided--
       ``(A) entirely from appropriations to carry out this 
     section;
       ``(B) in combination with funds available under another 
     Federal or Federal grant program; or
       ``(C) from any other source.
       ``(2) Priority of funding.--To best build the foundations 
     for long-term economic development and to complement other 
     Federal and State resources in the region, Federal funds 
     available under this chapter shall be focused on the 
     activities in the following order or priority:
       ``(A) Basic public infrastructure in distressed counties 
     and isolated areas of distress.
       ``(B) Transportation infrastructure for the purpose of 
     facilitating economic development in the region.
       ``(C) Business development, with emphasis on 
     entrepreneurship.
       ``(D) Job training or employment-related education, with 
     emphasis on use of existing public educational institutions 
     located in the region.

     ``SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       ``(1) the States or communities lack the economic resources 
     to provide the required matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal law authorizing the Federal grant program 
     to meet pressing needs of the region.
       ``(b) Federal Grant Program Funding.--Notwithstanding any 
     provision of law limiting the Federal share, the areas 
     eligible for assistance, or the authorizations of 
     appropriations of any Federal grant program, and in 
     accordance with subsection (c), the Authority, with the 
     approval of the Federal cochairperson and with respect to a 
     project to be carried out in the region--
       ``(1) may increase the Federal share of the costs of a 
     project under the Federal grant program to not more than 90 
     percent (except as provided in section 3806(b)); and
       ``(2) shall use amounts made available to carry out this 
     chapter to pay the increased Federal share.
       ``(c) Certifications.--
       ``(1) In general.--In the case of any project for which all 
     or any portion of the basic Federal share of the costs of the 
     project is proposed to be paid under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law that authorizes the Federal 
     grant program certifies that the project--
       ``(A) meets (except as provided in subsection (b)) the 
     applicable requirements of the applicable Federal grant 
     program; and
       ``(B) could be approved for Federal contribution under the 
     Federal grant program if funds were available under the law 
     for the project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this Act in accordance with section 3809 shall be--
       ``(i) controlling; and
       ``(ii) accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--In the case of 
     any project described in paragraph (1), any finding, report, 
     certification, or documentation required to be submitted with 
     respect to the project to the

[[Page S4067]]

     head of the department, agency, or instrumentality of the 
     Federal Government responsible for the administration of the 
     Federal grant program under which the project is carried out 
     shall be accepted by the Federal cochairperson.

     ``SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                   ADMINISTRATIVE EXPENSES.

       ``(a) Definition of Local Development District.--In this 
     section, the term `local development district' means an 
     entity that--
       ``(1) is--
       ``(A) a planning district in existence on the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012 that is recognized by the Secretary; or
       ``(B) if an entity described in subparagraph (A) does not 
     exist--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) governed by a policy board with at least a simple 
     majority of members consisting of elected officials or 
     employees of a general purpose unit of local government who 
     have been appointed to represent the government;
       ``(iii) certified to the Authority as having a charter or 
     authority that includes the economic development of counties 
     or parts of counties or other political subdivisions within 
     the region--

       ``(I) by the Governor of each State in which the entity is 
     located; or
       ``(II) by the State officer designated by the appropriate 
     State law to make the certification; and

       ``(iv)(I) a nonprofit incorporated body organized or 
     chartered under the law of the State in which the entity is 
     located;
       ``(II) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(III) a public organization established before December 
     21, 2000, under State law for creation of multi-
     jurisdictional, area-wide planning organizations; or
       ``(IV) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in subclauses (I) 
     through (III); and
       ``(2) has not, as certified by the Federal cochairperson--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Local Development Districts.--
       ``(1) In general.--The Authority shall make grants for 
     administrative expenses under this section.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the local development district 
     receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded to a State agency certified as a local 
     development district for a period greater than 3 years.
       ``(C) Local share.--The contributions of a local 
     development district for administrative expenses may be in 
     cash or in kind, fairly evaluated, including space, 
     equipment, and services.
       ``(c) Duties of Local Development Districts.--A local 
     development district shall--
       ``(1) operate as a lead organization serving multicounty 
     areas in the region at the local level; and
       ``(2) serve as a liaison between State and local 
     governments, nonprofit organizations (including community-
     based groups and educational institutions), the business 
     community, and citizens that--
       ``(A) are involved in multijurisdictional planning;
       ``(B) provide technical assistance to local jurisdictions 
     and potential grantees; and
       ``(C) provide leadership and civic development assistance.

     ``SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 
                   COUNTIES.

       ``(a) Designations.--Each year, the Authority, in 
     accordance with such criteria as the Authority may establish, 
     shall designate--
       ``(1) as distressed counties, counties in the region that 
     are the most severely and persistently distressed and 
     underdeveloped and have high rates of poverty or 
     unemployment;
       ``(2) as nondistressed counties, counties in the region 
     that are not designated as distressed counties under 
     paragraph (1); and
       ``(3) as isolated areas of distress, areas located in 
     nondistressed counties (as designated under paragraph (2)) 
     that have high rates of poverty or unemployment.
       ``(b) Distressed Counties.--
       ``(1) In general.--The Authority shall allocate at least 75 
     percent of the appropriations made available under section 
     3813 for programs and projects designed to serve the needs of 
     distressed counties and isolated areas of distress in the 
     region.
       ``(2) Funding limitations.--The funding limitations under 
     section 3804(b) shall not apply to a project providing 
     transportation or basic public services to residents of 1 or 
     more distressed counties or isolated areas of distress in the 
     region.
       ``(c) Nondistressed Counties.--
       ``(1) In general.--Except as provided in this subsection, 
     no funds shall be provided under this chapter for a project 
     located in a county designated as a nondistressed county 
     under subsection (a)(2).
       ``(2) Exceptions.--
       ``(A) In general.--The funding prohibition under paragraph 
     (1) shall not apply to grants to fund the administrative 
     expenses of local development districts under section 
     3805(b).
       ``(B) Multicounty projects.--The Authority may waive the 
     application of the funding prohibition under paragraph (1) to 
     a multicounty project that includes participation by a 
     nondistressed county; or any other type of project if the 
     Authority determines that the project could bring significant 
     benefits to areas of the region outside a nondistressed 
     county.
       ``(C) Isolated areas of distress.--For a designation of an 
     isolated area of distress for assistance to be effective, the 
     designation shall be supported--
       ``(i) by the most recent Federal data available; or
       ``(ii) if no recent Federal data are available, by the most 
     recent data available through the government of the State in 
     which the isolated area of distress is located.
       ``(d) Transportation and Basic Public Infrastructure.--The 
     Authority shall allocate at least 50 percent of any funds 
     made available under section 3813 for transportation and 
     basic public infrastructure projects authorized under 
     paragraphs (1) and (3) of section 3803(a).

     ``SEC. 3807. DEVELOPMENT PLANNING PROCESS.

       ``(a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     a development plan for the area of the region represented by 
     the State member.
       ``(b) Content of Plan.--A State development plan submitted 
     under subsection (a) shall reflect the goals, objectives, and 
     priorities identified in the regional development plan 
     developed under section 3802(d)(2).
       ``(c) Consultation With Interested Local Parties.--In 
     carrying out the development planning process (including the 
     selection of programs and projects for assistance), a State 
     may--
       ``(1) consult with--
       ``(A) local development districts; and
       ``(B) local units of government; and
       ``(2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities described in 
     paragraph (1).
       ``(d) Public Participation.--
       ``(1) In general.--The Authority and applicable State and 
     local development districts shall encourage and assist, to 
     the maximum extent practicable, public participation in the 
     development, revision, and implementation of all plans and 
     programs under this chapter.
       ``(2) Regulations.--The Authority shall develop guidelines 
     for providing public participation described in paragraph 
     (1), including public hearings.

     ``SEC. 3808. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this chapter and in establishing 
     a priority ranking of the requests for assistance provided by 
     the Authority, the Authority shall follow procedures that 
     ensure, to the maximum extent practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall regional development;
       ``(2) the per capita income and poverty and unemployment 
     rates in an area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project, with 
     emphasis on ensuring that projects are adequately financed to 
     maximize the probability of successful economic development;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic development of the 
     area served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     financial assistance authorized by this chapter shall be used 
     to assist a person or entity in relocating from 1 area to 
     another.
       ``(2) Outside businesses.--Financial assistance under this 
     chapter may be used as otherwise authorized by this title to 
     attract businesses from outside the region to the region.
       ``(c) Reduction of Funds.--Funds may be provided for a 
     program or project in a State under this chapter only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     chapter, for the same type of program or project in the same 
     area of the State within the region, will not be reduced as a 
     result of funds made available by this chapter.

     ``SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

       ``(a) In General.--A State or regional development plan or 
     any multistate subregional plan that is proposed for 
     development under this chapter shall be reviewed and approved 
     by the Authority.
       ``(b) Evaluation by State Member.--An application for a 
     grant or any other assistance for a project under this 
     chapter shall be

[[Page S4068]]

     made through and evaluated for approval by the State member 
     of the Authority representing the applicant.
       ``(c) Certification.--An application for a grant or other 
     assistance for a project shall be approved only on 
     certification by the State member that the application for 
     the project--
       ``(1) describes ways in which the project complies with any 
     applicable State development plan;
       ``(2) meets applicable criteria under section 3808;
       ``(3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       ``(4) otherwise meets the requirements of this chapter.
       ``(d) Approval of Grant Applications.--On certification by 
     a State member of the Authority of an application for a grant 
     or other assistance for a specific project under this 
     section, an affirmative vote of the Authority under section 
     3802(c) shall be required for approval of the application.

     ``SEC. 3810. CONSENT OF STATES.

       ``Nothing in this chapter requires any State to engage in 
     or accept any program under this chapter without the consent 
     of the State.

     ``SEC. 3811. RECORDS.

       ``(a) Records of the Authority.--
       ``(1) In general.--The Authority shall maintain accurate 
     and complete records of all transactions and activities of 
     the Authority.
       ``(2) Availability.--All records of the Authority shall be 
     available for audit and examination by the Comptroller 
     General of the United States and the Inspector General of the 
     Department of Agriculture (including authorized 
     representatives of the Comptroller General and the Inspector 
     General of the Department of Agriculture).
       ``(b) Records of Recipients of Federal Assistance.--
       ``(1) In general.--A recipient of Federal funds under this 
     chapter shall, as required by the Authority, maintain 
     accurate and complete records of transactions and activities 
     financed with Federal funds and report on the transactions 
     and activities to the Authority.
       ``(2) Availability.--All records required under paragraph 
     (1) shall be available for audit by the Comptroller General 
     of the United States, the Inspector General of the Department 
     of Agriculture, and the Authority (including authorized 
     representatives of the Comptroller General, the Inspector 
     General of the Department of Agriculture, and the Authority).

     ``SEC. 3812. ANNUAL REPORT.

       ``Not later than 180 days after the end of each fiscal 
     year, the Authority shall submit to the President and to 
     Congress a report describing the activities carried out under 
     this chapter.

     ``SEC. 3813. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Authority to carry out this chapter $30,000,000 for 
     each of fiscal years 2012 through 2017, to remain available 
     until expended.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the amount appropriated under subsection (a) for a fiscal 
     year shall be used for administrative expenses of the 
     Authority.

     ``SEC. 3814. TERMINATION OF AUTHORITY.

       ``This chapter and the authority provided under this 
     chapter expire on October 1, 2017.

         ``CHAPTER 5--NORTHERN GREAT PLAINS REGIONAL AUTHORITY

     ``SEC. 3821. DEFINITIONS.

       ``In this chapter:
       ``(1) Authority.--The term `Authority' means the Northern 
     Great Plains Regional Authority established by section 3822.
       ``(2) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) implementing the recommendations of the Northern 
     Great Plains Rural Development Commission established by the 
     Northern Great Plains Rural Development Act (7 U.S.C. 2661 
     note; Public Law 103 318);
       ``(B) acquiring or developing land;
       ``(C) constructing or equipping a highway, road, bridge, or 
     facility;
       ``(D) carrying out other economic development activities; 
     or
       ``(E) conducting research activities related to the 
     activities described in subparagraphs (A) through (D).
       ``(3) Region.--The term `region' means the States of Iowa, 
     Minnesota, Missouri (other than counties included in the 
     Delta Regional Authority), Nebraska, North Dakota, and South 
     Dakota.

     ``SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the Northern Great 
     Plains Regional Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     by and with the advice and consent of the Senate;
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority; and
       ``(C) a member of an Indian tribe, who shall be a 
     chairperson of an Indian tribe in the region or a designee of 
     such a chairperson, to be appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(3) Cochairpersons.--The Authority shall be headed by--
       ``(A) the Federal member, who shall serve as--
       ``(i) the Federal cochairperson; and
       ``(ii) a liaison between the Federal Government and the 
     Authority;
       ``(B) a State cochairperson, who shall be--
       ``(i) a Governor of a participating State in the region; 
     and
       ``(ii) elected by the State members for a term of not less 
     than 1 year; and
       ``(C) the member of an Indian tribe, who shall serve as--
       ``(i) the tribal cochairperson; and
       ``(ii) a liaison between the governments of Indian tribes 
     in the region and the Authority.
       ``(4) Failure to confirm.--
       ``(A) Federal member.--Notwithstanding any other provision 
     of this section, if a Federal member described in paragraph 
     (2)(A) has not been confirmed by the Senate by not later than 
     180 days after the date of enactment of the Agriculture 
     Reform, Food, and Jobs Act of 2012, the Authority may 
     organize and operate without the Federal member.
       ``(B) Tribal cochairperson.--In the case of the tribal 
     cochairperson, if no tribal cochairperson is confirmed by the 
     Senate, the regional authority shall consult and coordinate 
     with the leaders of Indian tribes in the region concerning 
     the activities of the Authority, as appropriate.
       ``(b) Alternate Members.--
       ``(1) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(2) State alternates.--
       ``(A) In general.--The State member of a participating 
     State may have a single alternate, who shall be--
       ``(i) a resident of that State; and
       ``(ii) appointed by the Governor of the State.
       ``(B) Quorum.--A State alternate member shall not be 
     counted toward the establishment of a quorum of the members 
     of the Authority in any case in which a quorum of the State 
     members is required to be present.
       ``(3) Alternate tribal cochairperson.--The President shall 
     appoint an alternate tribal cochairperson, by and with the 
     advice and consent of the Senate.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (c), and no voting right of any member of the 
     Authority, shall be delegated to any person who is not--
       ``(A) a member of the Authority; or
       ``(B) entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--A decision by the Authority shall 
     require a majority vote of the Authority (not including any 
     member representing a State that is delinquent under 
     subsection (g)(2)(D)) to be effective.
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of an Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 3830.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the Federal, State, or Indian 
     tribe member for whom the alternate member is an alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs for multistate cooperation to 
     advance the economic and social well-being of the region and 
     to approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, tribal, and 
     local planning and development activities in the region;
       ``(2) review, and when appropriate amend, priorities in a 
     development plan for the region (including 5-year regional 
     outcome targets);
       ``(3) assess the needs and assets of the region based on 
     available research, demonstrations, investigations, 
     assessments, and evaluations of the region prepared by 
     Federal, State, tribal, and local agencies, universities, 
     regional and local development districts or organizations, 
     and other nonprofit groups;
       ``(4) formulate and recommend to the Governors and 
     legislatures of States that participate in the Authority 
     forms of interstate cooperation for--
       ``(A) renewable energy development and transmission;
       ``(B) transportation planning and economic development;
       ``(C) information technology;
       ``(D) movement of freight and individuals within the 
     region;
       ``(E) federally-funded research at institutions of higher 
     education; and
       ``(F) conservation land management;
       ``(5) work with State, tribal, and local agencies in 
     developing appropriate model legislation;

[[Page S4069]]

       ``(6) enhance the capacity of, and provide support for, 
     multistate development and research organizations, local 
     development organizations and districts, and resource 
     conservation districts in the region;
       ``(7) encourage private investment in industrial, 
     commercial, renewable energy, and other economic development 
     projects in the region; and
       ``(8) cooperate with and assist State governments with 
     economic development programs of participating States.
       ``(e) Administration.--In carrying out subsection (d), the 
     Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute a description of the 
     proceedings and reports on actions by the Authority as the 
     Authority considers appropriate;
       ``(2) authorize, through the Federal, State, or tribal 
     cochairperson or any other member of the Authority designated 
     by the Authority, the administration of oaths if the 
     Authority determines that testimony should be taken or 
     evidence received under oath;
       ``(3) request from any Federal, State, tribal, or local 
     agency such information as may be available to or procurable 
     by the agency that may be of use to the Authority in carrying 
     out the duties of the Authority;
       ``(4) adopt, amend, and repeal bylaws and rules governing 
     the conduct of business and the performance of duties of the 
     Authority;
       ``(5) request the head of any Federal agency to detail to 
     the Authority such personnel as the Authority requires to 
     carry out duties of the Authority, each such detail to be 
     without loss of seniority, pay, or other employee status;
       ``(6) request the head of any State agency, tribal 
     government, or local government to detail to the Authority 
     such personnel as the Authority requires to carry out duties 
     of the Authority, each such detail to be without loss of 
     seniority, pay, or other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government or tribal government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, or cooperative agreements with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State);
       ``(C) any Indian tribe in the region; or
       ``(D) any person, firm, association, or corporation; and
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select.
       ``(f) Federal Agency Cooperation.--A Federal agency shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide, on request of a cochairperson, appropriate 
     assistance in carrying out this chapter, in accordance with 
     applicable Federal laws (including regulations).
       ``(g) Administrative Expenses.--
       ``(1) Federal share.--The Federal share of the 
     administrative expenses of the Authority shall be--
       ``(A) for each of fiscal years 2012 and 2013, 100 percent;
       ``(B) for fiscal year 2014, 75 percent; and
       ``(C) for fiscal year 2015 and each fiscal year thereafter, 
     50 percent.
       ``(2) Non-federal share.--
       ``(A) In general.--The non-Federal share of the 
     administrative expenses of the Authority shall be paid by 
     non-Federal sources in the States that participate in the 
     Authority.
       ``(B) Share paid by each state.--The share of 
     administrative expenses of the Authority to be paid by non-
     Federal sources in each State shall be determined by the 
     Authority.
       ``(C) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (B).
       ``(D) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this chapter shall be provided to 
     the State (including assistance to a political subdivision or 
     a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal and tribal cochairpersons.--The Federal 
     cochairperson and the tribal cochairperson shall be 
     compensated by the Federal Government at the annual rate of 
     basic pay prescribed for level III of the Executive Schedule 
     in subchapter II of chapter 53 of title 5, United States 
     Code.
       ``(2) Alternate federal and tribal cochairpersons.--The 
     alternate Federal cochairperson and the alternate tribal 
     cochairperson--
       ``(A) shall be compensated by the Federal Government at the 
     annual rate of basic pay prescribed for level V of the 
     Executive Schedule described in paragraph (1); and
       ``(B) when not actively serving as an alternate, shall 
     perform such functions and duties as are delegated by the 
     Federal cochairperson or the tribal cochairperson, 
     respectively.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by State law.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate member to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, tribal, local, or 
     intergovernmental agency from which the person was detailed; 
     or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation under clause (i) shall not 
     exceed the maximum rate for the Senior Executive Service 
     under section 5382 of title 5, United States Code, including 
     any applicable locality-based comparability payment that may 
     be authorized under section 5304(h)(2)(C) of that title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative duties of the 
     Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (e)(5)) shall be considered 
     to be a Federal employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, Indian tribe member, State alternate, 
     officer, or employee of the Authority shall participate 
     personally and substantially as a member, alternate, officer, 
     or employee of the Authority, through decision, approval, 
     disapproval, recommendation, the rendering of advice, 
     investigation, or otherwise, in any proceeding, application, 
     request for a ruling or other determination, contract, claim, 
     controversy, or other matter in which, to knowledge of the 
     member, alternate, officer, or employee, there is a financial 
     interest of--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision of the State or 
     the Indian tribe) of the member, alternate, officer, or 
     employee, in which the member, alternate, officer, or 
     employee is serving as officer, director, trustee, partner, 
     or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, Indian tribe member, alternate, officer, or 
     employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a potential conflict of 
     interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     Indian tribe member, alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4) or subsection (i) of this chapter, or 
     sections 202 through 209 of title 18, United States Code.

[[Page S4070]]

     ``SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY 
                   AND EFFICIENCY.

       ``(a) In General.--The Authority shall provide assistance 
     to States in developing regional plans to address multistate 
     economic issues, including plans--
       ``(1) to develop a regional transmission system for 
     movement of renewable energy to markets outside the region;
       ``(2) to address regional transportation concerns, 
     including the establishment of a Northern Great Plains 
     Regional Transportation Working Group;
       ``(3) to encourage and support interstate collaboration on 
     federally-funded research that is in the national interest; 
     and
       ``(4) to establish a Regional Working Group on Agriculture 
     Development and Transportation.
       ``(b) Economic Issues.--The multistate economic issues 
     referred to in subsection (a) shall include--
       ``(1) renewable energy development and transmission;
       ``(2) transportation planning and economic development;
       ``(3) information technology;
       ``(4) movement of freight and individuals within the 
     region;
       ``(5) federally-funded research at institutions of higher 
     education; and
       ``(6) conservation land management.

     ``SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

       ``(a) In General.--The Authority may approve grants to 
     States, Indian tribes, local governments, and public and 
     nonprofit organizations for projects, approved in accordance 
     with section 3830--
       ``(1) to assist the region in obtaining the job training, 
     employment-related education, and business development (with 
     an emphasis on entrepreneurship) that are needed to build and 
     maintain strong local economies;
       ``(2) to develop the transportation, renewable energy 
     transmission, and telecommunication infrastructure of the 
     region for the purpose of facilitating economic development 
     in the region (except that grants for this purpose may be 
     made only to States, Indian tribes, local governments, and 
     nonprofit organizations);
       ``(3) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     improving basic public services;
       ``(4) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     equipping industrial parks and related facilities; and
       ``(5) to otherwise achieve the purposes of this chapter.
       ``(b) Funding.--
       ``(1) In general.--Funds for grants under subsection (a) 
     may be provided--
       ``(A) entirely from appropriations to carry out this 
     section;
       ``(B) in combination with funds available under another 
     Federal grant program; or
       ``(C) from any other source.
       ``(2) Priority of funding.--To best build the foundations 
     for long-term economic development and to complement other 
     Federal, State, and tribal resources in the region, Federal 
     funds available under this chapter shall be focused on the 
     following activities:
       ``(A) Basic public infrastructure in distressed counties 
     and isolated areas of distress.
       ``(B) Transportation and telecommunication infrastructure 
     for the purpose of facilitating economic development in the 
     region.
       ``(C) Business development, with emphasis on 
     entrepreneurship.
       ``(D) Job training or employment-related education, with 
     emphasis on use of existing public educational institutions 
     located in the region.

     ``SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region may be unable to take maximum 
     advantage of Federal grant programs for which the States and 
     communities are eligible because--
       ``(1) the States and communities lack the economic 
     resources to provide the required matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal law authorizing the Federal grant program 
     to meet pressing needs of the region.
       ``(b) Federal Grant Program Funding.--Notwithstanding any 
     provision of law limiting the Federal share, the areas 
     eligible for assistance, or the authorizations of 
     appropriations, under any Federal grant program, and in 
     accordance with subsection (c), the Authority, with the 
     approval of the Federal cochairperson and with respect to a 
     project to be carried out in the region--
       ``(1) may increase the Federal share of the costs of a 
     project under any Federal grant program to not more than 90 
     percent (except as provided in section 3827(b)); and
       ``(2) shall use amounts made available to carry out this 
     chapter to pay the increased Federal share.
       ``(c) Certifications.--
       ``(1) In general.--In the case of any project for which all 
     or any portion of the basic Federal share of the costs of the 
     project is proposed to be paid under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law that authorizes the Federal 
     grant program certifies that the project--
       ``(A) meets (except as provided in subsection (b)) the 
     applicable requirements of the applicable Federal grant 
     program; and
       ``(B) could be approved for Federal contribution under the 
     Federal grant program if funds were available under the law 
     for the project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this Act in accordance with section 3830 shall be--
       ``(i) controlling; and
       ``(ii) accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--In the case of 
     any project described in paragraph (1), any finding, report, 
     certification, or documentation required to be submitted with 
     respect to the project to the head of the department, agency, 
     or instrumentality of the Federal Government responsible for 
     the administration of the Federal grant program under which 
     the project is carried out shall be accepted by the Federal 
     cochairperson.

     ``SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND 
                   ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.

       ``(a) Definition of Multistate and Local Development 
     District or Organization.--In this section, the term 
     `multistate and local development district or organization' 
     means an entity--
       ``(1) that--
       ``(A) is a planning district that is recognized by the 
     Economic Development Administration of the Department of 
     Commerce; or
       ``(B) is--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) a nonprofit incorporated body organized or chartered 
     under the law of the State in which the entity is located;
       ``(iii) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(iv) a public organization established before the date of 
     enactment of the Agriculture Reform, Food, and Jobs Act of 
     2012 under State law for creation of multijurisdictional, 
     area-wide planning organizations;
       ``(v) a nonprofit agency or instrumentality of a State that 
     was established for the purpose of assisting with multistate 
     cooperation; or
       ``(vi) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in clauses (ii) 
     through (v); and
       ``(2) that has not, as certified by the Authority (in 
     consultation with the Federal cochairperson or Secretary, as 
     appropriate)--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Multistate, Local, or Regional Development 
     Districts and Organizations.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses under this section to multistate, 
     local, and regional development districts and organizations.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the multistate, local, or regional 
     development district or organization receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded for a period of greater than 3 years.
       ``(3) Local share.--The contributions of a multistate, 
     local, or regional development district or organization for 
     administrative expenses may be in cash or in kind, fairly 
     evaluated, including space, equipment, and services.
       ``(c) Duties.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     local development district shall operate as a lead 
     organization serving multicounty areas in the region at the 
     local level.
       ``(2) Designation.--The Federal cochairperson may designate 
     an Indian tribe or multijurisdictional organization to serve 
     as a lead organization in such cases as the Federal 
     cochairperson or Secretary, as appropriate, determines 
     appropriate.
       ``(d) Northern Great Plains Inc.--Northern Great Plains 
     Inc., a nonprofit corporation incorporated in the State of 
     Minnesota to implement the recommendations of the Northern 
     Great Plains Rural Development Commission established by the 
     Northern Great Plains Rural Development Act (7 U.S.C. 2661 
     note; Public Law 103 318)--
       ``(1) shall serve as an independent, primary resource for 
     the Authority on issues of concern to the region;
       ``(2) shall advise the Authority on development of 
     international trade;
       ``(3) may provide research, education, training, and other 
     support to the Authority; and
       ``(4) may carry out other activities on its own behalf or 
     on behalf of other entities.

     ``SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 
                   COUNTIES.

       ``(a) Designations.--Each year, the Authority, in 
     accordance with such criteria as the Authority may establish, 
     shall designate--

[[Page S4071]]

       ``(1) as distressed counties, counties in the region that 
     are the most severely and persistently distressed and 
     underdeveloped and have high rates of poverty, unemployment, 
     or outmigration;
       ``(2) as nondistressed counties, counties in the region 
     that are not designated as distressed counties under 
     paragraph (1); and
       ``(3) as isolated areas of distress, areas located in 
     nondistressed counties (as designated under paragraph (2)) 
     that have high rates of poverty, unemployment, or 
     outmigration.
       ``(b) Distressed Counties.--
       ``(1) In general.--The Authority shall allocate at least 50 
     percent of the appropriations made available under section 
     3834 for programs and projects designed to serve the needs of 
     distressed counties and isolated areas of distress in the 
     region.
       ``(2) Funding limitations.--The funding limitations under 
     section 3825(b) shall not apply to a project to provide 
     transportation or telecommunication or basic public services 
     to residents of 1 or more distressed counties or isolated 
     areas of distress in the region.
       ``(c) Transportation, Telecommunication, Renewable Energy, 
     and Basic Public Infrastructure.--The Authority shall 
     allocate at least 50 percent of any funds made available 
     under section 3834 for transportation, telecommunication, 
     renewable energy, and basic public infrastructure projects 
     authorized under paragraphs (1) and (3) of section 3824(a).

     ``SEC. 3828. DEVELOPMENT PLANNING PROCESS.

       ``(a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     a development plan for the area of the region represented by 
     the State member.
       ``(b) Content of Plan.--A State development plan submitted 
     under subsection (a) shall reflect the goals, objectives, and 
     priorities identified in the regional development plan 
     developed under section 3823(d)(2).
       ``(c) Consultation With Interested Local Parties.--In 
     carrying out the development planning process (including the 
     selection of programs and projects for assistance), a State 
     may--
       ``(1) consult with--
       ``(A) multistate, regional, and local development districts 
     and organizations; and
       ``(B) local units of government; and
       ``(2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities described in 
     paragraph (1).
       ``(d) Public Participation.--
       ``(1) In general.--The Authority and applicable multistate, 
     regional, and local development districts and organizations 
     shall encourage and assist, to the maximum extent 
     practicable, public participation in the development, 
     revision, and implementation of all plans and programs under 
     this chapter.
       ``(2) Regulations.--The Authority shall develop guidelines 
     for providing public participation described in paragraph 
     (1), including public hearings.

     ``SEC. 3829. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this chapter, and in 
     establishing a priority ranking of the requests for 
     assistance provided to the Authority, the Authority shall 
     follow procedures that ensure, to the maximum extent 
     practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall multistate or regional development;
       ``(2) the per capita income and poverty and unemployment 
     and outmigration rates in an area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project, with 
     emphasis on ensuring that projects are adequately financed to 
     maximize the probability of successful economic development;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic development of the 
     area to be served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     financial assistance authorized by this chapter shall be used 
     to assist a person or entity in relocating from 1 area to 
     another.
       ``(2) Outside businesses.--Financial assistance under this 
     chapter may be used as otherwise authorized by this title to 
     attract businesses from outside the region to the region.
       ``(c) Maintenance of Effort.--Funds may be provided for a 
     program or project in a State under this chapter only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     chapter, for the same type of program or project in the same 
     area of the State within the region, will not be reduced as a 
     result of funds made available by this chapter.

     ``SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

       ``(a) In General.--A State or regional development plan or 
     any multistate subregional plan that is proposed for 
     development under this chapter shall be reviewed by the 
     Authority.
       ``(b) Evaluation by State Member.--An application for a 
     grant or any other assistance for a project under this 
     chapter shall be made through and evaluated for approval by 
     the State member of the Authority representing the applicant.
       ``(c) Certification.--An application for a grant or other 
     assistance for a project shall be approved only on 
     certification by the State member that the application for 
     the project--
       ``(1) describes ways in which the project complies with any 
     applicable State development plan;
       ``(2) meets applicable criteria under section 3829;
       ``(3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       ``(4) otherwise meets the requirements of this chapter.
       ``(d) Votes for Decisions.--On certification by a State 
     member of the Authority of an application for a grant or 
     other assistance for a specific project under this section, 
     an affirmative vote of the Authority under section 3822(c) 
     shall be required for approval of the application.

     ``SEC. 3831. CONSENT OF STATES.

       `` ``Nothing in this chapter requires any State to engage 
     in or accept any program under this chapter without the 
     consent of the State.

     ``SEC. 3832. RECORDS.

       ``(a) Records of the Authority.--
       ``(1) In general.--The Authority shall maintain accurate 
     and complete records of all transactions and activities of 
     the Authority.
       ``(2) Availability.--All records of the Authority shall be 
     available for audit and examination by the Comptroller 
     General of the United States and the Inspector General of the 
     Department of Agriculture (including authorized 
     representatives of the Comptroller General and the Inspector 
     General of the Department of Agriculture).
       ``(b) Records of Recipients of Federal Assistance.--
       ``(1) In general.--A recipient of Federal funds under this 
     chapter shall, as required by the Authority, maintain 
     accurate and complete records of transactions and activities 
     financed with Federal funds and report to the Authority on 
     the transactions and activities to the Authority.
       ``(2) Availability.--All records required under paragraph 
     (1) shall be available for audit by the Comptroller General 
     of the United States, the Inspector General of the Department 
     of Agriculture, and the Authority (including authorized 
     representatives of the Comptroller General, the Inspector 
     General of the Department of Agriculture, and the Authority).
       ``(c) Annual Audit.--The Inspector General of the 
     Department of Agriculture shall audit the activities, 
     transactions, and records of the Authority on an annual 
     basis.

     ``SEC. 3833. ANNUAL REPORT.

       ``Not later than 180 days after the end of each fiscal 
     year, the Authority shall submit to the President and to 
     Congress a report describing the activities carried out under 
     this chapter.

     ``SEC. 3834. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Authority to carry out this chapter $30,000,000 for 
     each of fiscal years 2012 through 2017, to remain available 
     until expended.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the amount appropriated under subsection (a) for a fiscal 
     year shall be used for administrative expenses of the 
     Authority.
       ``(c) Minimum State Share of Grants.--Notwithstanding any 
     other provision of this chapter, for any fiscal year, the 
     aggregate amount of grants received by a State and all 
     persons or entities in the State under this chapter shall be 
     not less than \1/3\ of the product obtained by multiplying--
       ``(1) the aggregate amount of grants under this chapter for 
     the fiscal year; and
       ``(2) the ratio that--
       ``(A) the population of the State (as determined by the 
     Secretary of Commerce based on the most recent decennial 
     census for which data are available); bears to
       ``(B) the population of the region (as so determined).

     ``SEC. 3835. TERMINATION OF AUTHORITY.

       ``The authority provided by this chapter terminates 
     effective October 1, 2017.

                    ``Subtitle C--General Provisions

     ``SEC. 3901. FULL FAITH AND CREDIT.

       ``(a) In General.--A contract of insurance or guarantee 
     executed by the Secretary under this title shall be an 
     obligation supported by the full faith and credit of the 
     United States.
       ``(b) Contestability.--A contract of insurance or guarantee 
     executed by the Secretary under this title shall be 
     incontestable except for fraud or misrepresentation that the 
     lender or any holder--
       ``(1) has actual knowledge of at the time the contract of 
     insurance or guarantee is executed; or
       ``(2) participates in or condones.

     ``SEC. 3902. PURCHASE AND SALE OF GUARANTEED PORTIONS OF 
                   LOANS.

       ``(a) In General.--Subject to subsections (b) and (c), the 
     Secretary may purchase, on such terms and conditions as the 
     Secretary

[[Page S4072]]

     considers appropriate, the guaranteed portion of a loan 
     guaranteed under this title, if the Secretary determines that 
     an adequate secondary market is not available in the private 
     sector.
       ``(b) Maximum Payment.--The Secretary may not pay for any 
     guaranteed portion of a loan under subsection (a) in excess 
     of an amount equal to the unpaid principal balance and 
     accrued interest on the guaranteed portion of the loan.
       ``(c) Sources of Funding.--The Secretary may use for the 
     purchases--
       ``(1) funds from the Rural Development Insurance Fund with 
     respect to rural development loans (as defined in section 
     3704(a)); and
       ``(2) funds from the Agricultural Credit Insurance Fund 
     with respect to all other loans under this title.
       ``(d) Sale of Guaranteed Loans.--
       ``(1) Sales.--
       ``(A) Regulation.--
       ``(i) In general.--The guaranteed portion of any loan made 
     under this title may be sold by the lender, and by any 
     subsequent holder, in accordance with such regulations 
     governing the sales as the Secretary shall establish, subject 
     to clauses (ii) and (iii).
       ``(ii) Fees to be paid in full.--All fees due the Secretary 
     with respect to a guaranteed loan shall be paid in full 
     before any sale.
       ``(iii) Loan to be fully disbursed.--The loan shall be 
     fully disbursed to the borrower before the sale.
       ``(B) Post-sale.--After a loan is sold in the secondary 
     market, the lender shall--
       ``(i) remain obligated under the guarantee agreement of the 
     lender with the Secretary; and
       ``(ii) continue to service the loan in accordance with the 
     terms and conditions of that agreement.
       ``(C) Procedures.--The Secretary shall develop such 
     procedures as are necessary for--
       ``(i) the facilitation, administration, and promotion of 
     secondary market operations; and
       ``(ii) determining the increase of access of farmers to 
     capital at reasonable rates and terms as a result of 
     secondary market operations.
       ``(D) Rights to prepay.--This subsection does not impede or 
     extinguish--
       ``(i) the right of the borrower or the successor in 
     interest to the borrower to prepay (in whole or in part) any 
     loan made under this title; or
       ``(ii) the rights of any party under any provision of this 
     title.
       ``(2) Issue pool certificates.--
       ``(A) In general.--The Secretary may, directly or through a 
     market maker approved by the Secretary, issue pool 
     certificates representing ownership of part or all of the 
     guaranteed portion of any loan guaranteed by the Secretary 
     under this title.
       ``(B) Approval.--Certificates under subparagraph (A) shall 
     be based on and backed by a pool established or approved by 
     the Secretary and composed solely of the entire guaranteed 
     portion of the loans.
       ``(C) Guarantee of pool.--On such terms and conditions as 
     the Secretary considers appropriate, the Secretary may 
     guarantee the timely payment of the principal and interest on 
     pool certificates issued on behalf of the Secretary by 
     approved market makers for purposes of this subsection.
       ``(D) Limitations.--A guarantee under subparagraph (C) 
     shall be limited to the extent of principal and interest on 
     the guaranteed portions of loans that compose the pool.
       ``(E) Prepayment.--If a loan in a pool is prepaid, either 
     voluntarily or by reason of default, the guarantee of timely 
     payment of principal and interest on the pool certificates 
     shall be reduced in proportion to the amount of principal and 
     interest that the prepaid loan represents in the pool.
       ``(F) Interest accrual.--Interest on prepaid or defaulted 
     loans shall accrue and be guaranteed by the Secretary only 
     through the date of payment on the guarantee.
       ``(G) Redemption.--During the term of the pool certificate, 
     the certificate may be called for redemption due to 
     prepayment or default of all loans constituting the pool.
       ``(H) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     that may be required to be paid under any guarantee of the 
     pool certificates issued by approved market makers under this 
     subsection.
       ``(I) Fees.--
       ``(i) In general.--The Secretary shall not collect any fee 
     for any guarantee under this subsection.
       ``(ii) Secretarial functions.--Clause (i) does not preclude 
     the Secretary from collecting a fee for the functions 
     described in paragraph (3).
       ``(J) Default.--Not later than 30 days after a borrower of 
     a guaranteed loan is in default of any principal or interest 
     payment due for 60 days or more, the Secretary shall--
       ``(i) purchase the pool certificates representing ownership 
     of the guaranteed portion of the loan; and
       ``(ii) pay the registered holder of the certificates an 
     amount equal to the guaranteed portion of the loan 
     represented by the certificate.
       ``(K) Payment of claims.--If the Secretary pays a claim 
     under a guarantee issued under this subsection, the claim 
     shall be subrogated fully to the rights satisfied by the 
     payment, as may be provided by the Secretary.
       ``(L) Application of laws.--No State or local law, and no 
     Federal law, shall preclude or limit the exercise by the 
     Secretary of the ownership rights of the Secretary in the 
     portions of loans constituting the pool against which the 
     certificates are issued.
       ``(3) Duties of the secretary.--
       ``(A) In general.--On the adoption of final rules and 
     regulations, the Secretary shall--
       ``(i) provide for the central collection of registration 
     information from all participating market makers for all 
     loans and pool certificates sold under paragraphs (1) and 
     (2), including, with respect to each original sale and any 
     subsequent sale--

       ``(I) identification of the interest rate paid by the 
     borrower to the lender;
       ``(II) the servicing fee of the lender;
       ``(III) disclosure of whether interest on the loan is at a 
     fixed or variable rate;
       ``(IV) identification of each purchaser of a pool 
     certificate;
       ``(V) the interest rate paid on the certificate; and
       ``(VI) such other information as the Secretary considers 
     appropriate.

       ``(ii) before any sale, require the seller (as defined in 
     subparagraph (B) to disclose to each prospective purchaser of 
     the portion of a loan guaranteed under this title and to each 
     prospective purchaser of a pool certificate issued under 
     paragraph (2) information on the terms, conditions, and yield 
     of such instrument;
       ``(iii) provide for adequate custody of any pooled 
     guaranteed loans;
       ``(iv) take such actions as are necessary, in restructuring 
     pools of the guaranteed portion of loans, to minimize the 
     estimated costs of paying claims under guarantees issued 
     under this subsection;
       ``(v) require each market maker--

       ``(I) to service all pools formed, and participations sold, 
     by the market maker; and
       ``(II) to provide the Secretary with information relating 
     to the collection and disbursement of all periodic payments, 
     prepayments, and default funds from lenders, to or from the 
     reserve fund that the Secretary shall establish to enable the 
     timely payment guarantee to be self-funding, and from all 
     beneficial holders; and

       ``(vi) regulate market makers in pool certificates sold 
     under this subsection.
       ``(B) Definition of seller.--For purposes of subparagraph 
     (A)(ii), if the instrument being sold is a loan, the term 
     `seller' does not include--
       ``(i) the person who made the loan; or
       ``(ii) any person who sells 3 or fewer guaranteed loans per 
     year.
       ``(4) Contract for services.--The Secretary may contract 
     for goods and services to be used for the purposes of this 
     subsection without regard to titles 5, 40, and 41, United 
     States Code (including any regulations issued under those 
     titles).

     ``SEC. 3903. ADMINISTRATION.

       ``(a) Powers of Secretary.--The Secretary may--
       ``(1)(A) administer the powers and duties of the Secretary 
     through such national, area, State, or local offices and 
     employees in the United States as the Secretary determines to 
     be necessary; and
       ``(B) authorize an office to serve an area composed of 2 or 
     more States if the Secretary determines that the volume of 
     business in the area is not sufficient to justify separate 
     State offices;
       ``(2)(A) accept and use voluntary and uncompensated 
     services; and
       ``(B) with the consent of the agency concerned, use the 
     officers, employees, equipment, and information of any agency 
     of the Federal Government, or of any State, territory, or 
     political subdivision;
       ``(3) subject to appropriations, make necessary 
     expenditures for the purchase or hire of passenger vehicles, 
     and such other facilities and services as the Secretary may 
     from time to time find necessary for the proper 
     administration of this title;
       ``(4) subject to subsection (b), compromise, adjust, 
     reduce, or charge-off debts or claims (including debts and 
     claims arising from loan guarantees), and adjust, modify, 
     subordinate, or release the terms of security instruments, 
     leases, contracts, and agreements entered into or 
     administered by the Farm Service Agency, the Rural Utilities 
     Service, the Rural Housing Service, the Rural Business-
     Cooperative Service, or successor agencies under this title, 
     except for activities conducted under the Housing Act of 1949 
     (42 U.S.C. 1441 et seq.);
       ``(5) release mortgage and other contract liens if it 
     appears that the mortgage and liens have no present or 
     prospective value or that the enforcement of the mortgage and 
     liens likely would be ineffectual or uneconomical;
       ``(6) obtain fidelity bonds protecting the Federal 
     Government against fraud and dishonesty of officers and 
     employees of the Farm Service Agency, the Rural Utilities 
     Service, the Rural Housing Service, or the Rural Business-
     Cooperative Service in lieu of faithful performance of duties 
     bonds under section 14 of title 6, United States Code, but 
     otherwise in accordance with the section;
       ``(7) consent to--
       ``(A) long-term leases of facilities financed under this 
     title notwithstanding the failure of the lessee to meet any 
     of the requirements of this title if the long-term leases are 
     necessary to ensure the continuation of services for which 
     financing was extended to the lessor; and
       ``(B) the transfer of property securing any loan or 
     financed by any loan or grant made or guaranteed by the Farm 
     Service Agency,

[[Page S4073]]

     the Rural Utilities Service, the Rural Housing Service, or 
     the Rural Business-Cooperative Service under this title, or 
     any other law administered by the Secretary, on such terms as 
     the Secretary considers necessary to carry out the purpose of 
     the loan or grant or to protect the financial interest of the 
     Federal Government, provided that the Secretary shall 
     document the consent of the Secretary for the transfer of the 
     property of a borrower in the file of the borrower; and
       ``(8) notwithstanding that an area ceases, or has ceased, 
     to be rural, in a rural area, or an eligible area, make loans 
     and grants, and approve transfers and assumptions, under this 
     title on the same basis as though the area still was rural in 
     connection with property securing any loan made or guaranteed 
     by the Secretary under this title or in connection with any 
     property held by the Secretary under this title.
       ``(b) Loan Adjustments.--
       ``(1) No liquidation of property.--The Secretary may not 
     require liquidation of property securing any farmer program 
     loan or acceleration of any payment required under any farmer 
     program loan as a prerequisite to initiating an action 
     authorized under subsection (a).
       ``(2) Release of personal liability.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary may release a borrower or other person 
     obligated on a debt (other than debt incurred under the 
     Housing Act of 1949 (42 U.S.C. 1441 et seq.)) from personal 
     liability with or without payment of any consideration at the 
     time of the compromise, adjustment, reduction, or charge-off 
     of any claim.
       ``(B) Exception.--No compromise, adjustment, reduction, or 
     charge-off of any claim may be made or carried out after the 
     claim has been referred to the Attorney General, unless the 
     Attorney General approves.
       ``(3) Rural electrification security instruments.--In the 
     case of a security instrument entered into under the Rural 
     Electrification Act of 1936 (7 U.S.C. 901 et seq.), the 
     Secretary shall notify the Attorney General of the intent of 
     the Secretary to exercise the authority of the Secretary 
     under paragraph (2).
       ``(c) Simplified Application Forms for Loan Guarantees.--
       ``(1) In general.--The Secretary shall provide to lenders a 
     short, simplified application form for guarantees under this 
     title of--
       ``(A) farmer program loans the principal amount of which is 
     $125,000 or less; and
       ``(B) business and industry guaranteed loans under section 
     3601(a)(2)(A) the principal amount of which is--
       ``(i) in the case of a loan guarantee made during fiscal 
     year 2002 or 2003, $400,000 or less; and
       ``(ii) in the case of a loan guarantee made during any 
     subsequent fiscal year--

       ``(I) $400,000 or less; or
       ``(II) if the Secretary determines that there is not a 
     significant increased risk of a default on the loan, $600,000 
     or less.

       ``(2) Water and waste disposal grants and loans.--The 
     Secretary shall develop an application process that 
     accelerates, to the maximum extent practicable, the 
     processing of applications for water and waste disposal 
     grants or direct or guaranteed loans under section 3501(a)(1) 
     the grant award amount or principal loan amount, 
     respectively, of which is $300,000 or less.
       ``(3) Administration.--In developing an application under 
     this subsection, the Secretary shall--
       ``(A) consult with commercial and cooperative lenders; and
       ``(B) ensure that--
       ``(i) the form can be completed manually or electronically, 
     at the option of the lender;
       ``(ii) the form minimizes the documentation required to 
     accompany the form;
       ``(iii) the cost of completing and processing the form is 
     minimal; and
       ``(iv) the form can be completed and processed in an 
     expeditious manner.
       ``(d) Use of Attorneys for Prosecution or Defense of 
     Claims.--The Secretary may use for the prosecution or defense 
     of any claim or obligation described in subsection (a)(5) the 
     Attorney General, the General Counsel of the Department, or a 
     private attorney who has entered into a contract with the 
     Secretary.
       ``(e) Private Collection Agency.--The Secretary may use a 
     private collection agency to collect a claim or obligation 
     described in subsection (a)(5).
       ``(f) Security Servicing.--
       ``(1) In general.--The Secretary may--
       ``(A) make advances, without regard to any loan or total 
     indebtedness limitation, to preserve and protect the security 
     for, or the lien or priority of the lien securing any loan or 
     other indebtedness owing to or acquired by the Secretary 
     under this title or under any other program administered by 
     the Farm Service Agency, the Rural Utilities Service, the 
     Rural Housing Service, or the Rural Business-Cooperative 
     Service applicable program, as determined by the Secretary; 
     and
       ``(B)(i) bid for and purchase at any execution, 
     foreclosure, or other sale or otherwise acquire property on 
     which the United States has a lien by reason of a judgment or 
     execution arising from, or that is pledged, mortgaged, 
     conveyed, attached, or levied on to secure the payment of, 
     the indebtedness regardless of whether the property is 
     subject to other liens;
       ``(ii) accept title to any property so purchased or 
     acquired; and
       ``(iii) sell, manage, or otherwise dispose of the property 
     in accordance with this subsection.
       ``(2) Operation or lease of realty.--Except as provided in 
     subsections (c) and (e), real property administered under 
     this title may be operated or leased by the Secretary for 
     such period as the Secretary may consider necessary to 
     protect the investment of the Federal Government in the 
     property.
       ``(g) Payments to Lenders.--
       ``(1) Requirement.--Not later than 90 days after a court of 
     competent jurisdiction confirms a plan of reorganization 
     under chapter 12 of title 11, United States Code, for any 
     borrower to whom a lender has made a loan guaranteed under 
     this title, the Secretary shall pay the lender an amount 
     estimated by the Secretary to be equal to the loss incurred 
     by the lender for purposes of the guarantee.
       ``(2) Payment toward loan guarantee.--Any amount paid to a 
     lender under this subsection with respect to a loan 
     guaranteed under this title shall be treated as payment 
     towards satisfaction of the loan guarantee.

     ``SEC. 3904. LOAN MORATORIUM AND POLICY ON FORECLOSURES.

       ``(a) In General.--In addition to any other authority that 
     the Secretary may have to defer principal and interest and 
     forgo foreclosure, the Secretary may permit, at the request 
     of the borrower, the deferral of principal and interest on 
     any outstanding loan made or guaranteed by the Secretary 
     under this title, or under any other law administered by the 
     Farm Service Agency, the Rural Utilities Service, the Rural 
     Housing Service, or the Rural Business-Cooperative Service, 
     and may forgo foreclosure of the loan, for such period as the 
     Secretary considers necessary on a showing by the borrower 
     that, due to circumstances beyond the control of the 
     borrower, the borrower is temporarily unable to continue 
     making payments of the principal and interest when due 
     without unduly impairing the standard of living of the 
     borrower.
       ``(b) Interest.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary may permit any loan deferred under this section to 
     bear no interest during or after the deferral period.
       ``(2) Exception.--If the security instrument securing the 
     loan is foreclosed, such interest as is included in the 
     purchase price at the foreclosure shall become part of the 
     principal and draw interest from the date of foreclosure at 
     the rate prescribed by law.
       ``(c) Moratorium Regarding Civil Rights Claims.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, effective beginning on May 22, 2008, there shall 
     be in effect a moratorium, with respect to farmer program 
     loans made under subtitle A, on all acceleration and 
     foreclosure proceedings instituted by the Department against 
     any farmer who--
       ``(A) has pending against the Department a claim of program 
     discrimination that is accepted by the Department as valid; 
     or
       ``(B) files a claim of program discrimination that is 
     accepted by the Department as valid.
       ``(2) Waiver of interest and offsets.--During the period of 
     the moratorium, the Secretary shall waive the accrual of 
     interest and offsets on all farmer program loans made under 
     subtitle A, B, or C for which loan acceleration or 
     foreclosure proceedings have been suspended under paragraph 
     (1).
       ``(3) Termination of moratorium.--The moratorium shall 
     terminate with respect to a claim of discrimination by a 
     farmer on the earlier of--
       ``(A) the date the Secretary resolves the claim; or
       ``(B) if the farmer appeals the decision of the Secretary 
     on the claim to a court of competent jurisdiction, the date 
     that the court renders a final decision on the claim.
       ``(4) Failure to prevail.--If a farmer does not prevail on 
     a claim of discrimination described in paragraph (1), the 
     farmer shall be liable for any interest and offsets that 
     accrued during the period that loan acceleration or 
     foreclosure proceedings have been suspended under paragraph 
     (1).

     ``SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS.

       ``(a) In General.--The Secretary shall permit a borrower of 
     a loan made or guaranteed under this title to make a 
     prospective payment on the loan with proceeds from--
       ``(1) the leasing of oil, gas, or other mineral rights to 
     real property used to secure the loan; or
       ``(2) the sale of oil, gas, or other minerals removed from 
     real property used to secure the loan, if the value of the 
     rights to the oil, gas, or other minerals has not been used 
     to secure the loan.
       ``(b) Applicability.--Subsection (a) shall not apply to a 
     borrower of a loan made or guaranteed under this title with 
     respect to which a liquidation or foreclosure proceeding was 
     pending on December 23, 1985.

     ``SEC. 3906. TAXATION.

       ``(a) In General.--Except as provided in subsection (b), 
     all property subject to a lien held by the United States or 
     the title to which is acquired or held by the Secretary under 
     this title (other than property used for administrative 
     purposes) shall be subject to taxation by State, territory, 
     district, and local political subdivisions in the same manner 
     and to the same extent as other property is taxed.
       ``(b) Exceptions.--No tax shall be imposed or collected as 
     described in subsection (a) if the tax (whether as a tax on 
     the instrument or in connection with conveying, transferring, 
     or recording the instrument) is based on--

[[Page S4074]]

       ``(1) the value of any notes or mortgages or other lien 
     instruments held by or transferred to the Secretary;
       ``(2) any notes or lien instruments administered under this 
     title that are made, assigned, or held by a person otherwise 
     liable for the tax; or
       ``(3) the value of any property conveyed or transferred to 
     the Secretary.
       ``(c) Failure to Pay or Collect Tax.--The failure to pay or 
     collect a tax under subsection (a) shall not--
       ``(1) be a ground for--
       ``(A) refusal to record or file an instrument; or
       ``(B) failure to provide notice; or
       ``(2) prevent the enforcement of the instrument in any 
     Federal or State court.

     ``SEC. 3907. CONFLICTS OF INTEREST.

       ``(a) Acceptance of Consideration Prohibited.--No officer, 
     attorney, or other employee of the Department shall, directly 
     or indirectly, be the beneficiary of or receive any fee, 
     commission, gift, or other consideration for or in connection 
     with any transaction or business under this title other than 
     such salary, fee, or other compensation as the officer, 
     attorney, or employee may receive as the officer, attorney, 
     or employee.
       ``(b) Acquisition of Interest in Land Prohibited.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     officer or employee of the Department who acts on or reviews 
     an application made by any person under this title for a loan 
     to purchase land may acquire, directly or indirectly, any 
     interest in the land for a period of 3 years after the date 
     on which the action is taken or the review is made.
       ``(2) Former county committee members.--Paragraph (1) shall 
     not apply to a former member of a county committee on a 
     determination by the Secretary, prior to the acquisition of 
     the interest, that the former member acted in good faith when 
     acting on or reviewing the application.
       ``(c) Certifications on Loans to Family Members 
     Prohibited.--No member of a county committee shall knowingly 
     make or join in making any certification with respect to--
       ``(1) a loan to purchase any land in which the member, or 
     any person related to the member within the second degree of 
     consanguinity or affinity, has or may acquire any interest; 
     or
       ``(2) any applicant related to the member within the second 
     degree of consanguinity or affinity.
       ``(d) Penalties.--Any person violating this section shall, 
     on conviction of the violation, be punished by a fine of not 
     more than $2,000 or imprisonment for not more than 2 years, 
     or both.

     ``SEC. 3908. LOAN SUMMARY STATEMENTS.

       ``(a) Definition of Summary Period.--In this section, the 
     term `summary period' means the period beginning on the date 
     of issuance of the preceding loan summary statement and 
     ending on the date of issuance of the current loan summary 
     statement.
       ``(b) Issuance of Statements.--On the request of a borrower 
     of a loan made (but not guaranteed) under this title, the 
     Secretary shall issue to the borrower a loan summary 
     statement that reflects the account activity during the 
     summary period for each loan made under this title to the 
     borrower, including--
       ``(1) the outstanding amount of principal due on each loan 
     at the beginning of the summary period;
       ``(2) the interest rate charged on each loan;
       ``(3) the amount of payments made on, and the application 
     of the payments to, each loan during the summary period and 
     an explanation of the basis for the application of the 
     payments;
       ``(4) the amount of principal and interest due on each loan 
     at the end of the summary period;
       ``(5) the total amount of unpaid principal and interest on 
     all loans at the end of the summary period;
       ``(6) any delinquency in the repayment of any loan;
       ``(7) a schedule of the amount and date of payments due on 
     each loan; and
       ``(8) the procedure the borrower may use to obtain more 
     information concerning the status of the loans.

     ``SEC. 3909. CERTIFIED LENDERS PROGRAM.

       ``(a) Certified Lenders Program.--
       ``(1) In general.--The Secretary shall establish a program 
     under which the Secretary shall guarantee loans under this 
     title that are made by lending institutions certified by the 
     Secretary.
       ``(2) Certification requirements.--The Secretary shall 
     certify a lending institution that meets such criteria as the 
     Secretary may prescribe in regulations, including the ability 
     of the institution to properly make, service, and liquidate 
     the loans of the institution.
       ``(3) Condition of certification.--
       ``(A) In general.--As a condition of the certification, the 
     Secretary shall require the institution to undertake to 
     service the loans guaranteed by the Secretary under this 
     section, using standards that are not less stringent than 
     generally accepted banking standards concerning loan 
     servicing employed by prudent commercial or cooperative 
     lenders.
       ``(B) Monitoring.--The Secretary shall, at least annually, 
     monitor the performance of each certified lender to ensure 
     that the conditions of the certification are being met.
       ``(4) Effect of certification.--Notwithstanding any other 
     provision of law:
       ``(A) Amount of loan guarantee.--In the case of a loan made 
     or guaranteed under subtitle A, the Secretary shall guarantee 
     80 percent of a loan made under this section by a certified 
     lending institution as described in paragraph (1), subject to 
     a determination that the borrower of the loan meets the 
     eligibility requirements and such other criteria as may be 
     applicable to loans guaranteed by the Secretary under other 
     provisions of this title.
       ``(B) Certifications by lending institutions.--In the case 
     of loans to be guaranteed by the Secretary under this 
     section, the Secretary shall permit certified lending 
     institutions to make appropriate certifications (as provided 
     by regulations issued by the Secretary)--
       ``(i) relating to issues such as creditworthiness, 
     repayment ability, adequacy of collateral, and feasibility of 
     farm operation; and
       ``(ii) that the borrower is in compliance with all 
     requirements of law, including regulations issued by the 
     Secretary.
       ``(C) Approval process.--
       ``(i) In general.--The Secretary shall approve or 
     disapprove a guarantee not later than 14 days after the date 
     that the lending institution applies to the Secretary for the 
     guarantee.
       ``(ii) Disapproval.--If the Secretary disapproves the loan 
     application during the 14-day period, the Secretary shall 
     state, in writing, all of the reasons the application was 
     disapproved.
       ``(5) Relationship to other requirements.--Nothing in this 
     section affects the responsibility of the Secretary to 
     certify eligibility, review financial information, and 
     otherwise assess an application.
       ``(b) Preferred Certified Lenders Program.--
       ``(1) In general.--The Secretary shall establish a 
     Preferred Certified Lenders Program for lenders under this 
     title who establish--
       ``(A) knowledge of, and experience under, the program 
     established under subsection (a);
       ``(B) knowledge of the regulations concerning the 
     guaranteed loan program; and
       ``(C) proficiency related to the certified lender program 
     requirements.
       ``(2) Revocation of designation.--
       ``(A) In general.--Subject to subparagraph (B), the 
     designation of a lender as a Preferred Certified Lender shall 
     be revoked at any time--
       ``(i) that the Secretary determines that the lender is not 
     adhering to the rules and regulations applicable to the 
     program; or
       ``(ii) if the loss experiences of a Preferred Certified 
     Lender are excessive as compared to other Preferred Certified 
     Lenders.
       ``(B) Effect.--A suspension or revocation under 
     subparagraph (A) shall not affect any outstanding guarantee.
       ``(3) Condition of certification.--As a condition of 
     preferred certification, the Secretary shall require the 
     institution to undertake to service the loans guaranteed by 
     the Secretary under this subsection using generally accepted 
     banking standards concerning loan servicing employed by 
     prudent commercial or cooperative lenders.
       ``(4) Monitoring.--The Secretary shall, at least annually, 
     monitor the performance of each Preferred Certified Lender to 
     ensure that the conditions of certification are being met.
       ``(5) Effect of preferred lender certification.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, the Secretary shall--
       ``(i) guarantee 80 percent of an approved loan made by a 
     certified lending institution as described in this 
     subsection, subject to a determination that the borrower 
     meets the eligibility requirements or such other criteria as 
     may be applicable to loans guaranteed by the Secretary under 
     other provisions of this title;
       ``(ii) permit certified lending institutions--

       ``(I) to make all decisions, with respect to loans to be 
     guaranteed by the Secretary under this subsection relating to 
     credit worthiness, the closing, monitoring, collection and 
     liquidation of loans; and
       ``(II) to accept appropriate certifications, as provided by 
     regulations issued by the Secretary, that the borrower is in 
     compliance with all requirements of law or regulations 
     promulgated by the Secretary; and

       ``(iii) be considered to have guaranteed 80 percent of a 
     loan made by a preferred certified lending institution as 
     described in paragraph (1), if the Secretary fails to approve 
     or reject the application of such institution within 14 
     calendar days after the date that the lending institution 
     presented the application to the Secretary.
       ``(B) Requirement.--If the Secretary rejects an application 
     under subparagraph (A)(iii) during the 14-day period, the 
     Secretary shall state, in writing, the reasons the 
     application was rejected.
       ``(c) Administration of Certified Lenders and Preferred 
     Certified Lenders Programs.--The Secretary may administer the 
     loan guarantee programs under subsections (a) and (b) through 
     central offices established in States or in multi-State areas

     ``SEC. 3910. LOANS TO RESIDENT ALIENS.

       ``(a) In General.--Notwithstanding the provisions of this 
     title limiting the making of a loan to a citizen of the 
     United States, the Secretary may make a loan under this title 
     to an alien lawfully admitted to the United States for 
     permanent residence under the Immigration and Nationality Act 
     (8 U.S.C. 1101 et seq.).

[[Page S4075]]

       ``(b) Regulations.--
       ``(1) In general.--No loan may be made under this title to 
     an alien referred to in subsection (a) until the Secretary 
     issues regulations establishing the terms and conditions 
     under which the alien may receive the loan.
       ``(2) Requirement.--The Secretary shall submit the 
     regulations to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate at least 30 days prior to the date 
     on which the regulations are published in the Federal 
     Register.

     ``SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY 
                   PROPERTY.

       ``(a) In General.--The Secretary may employ local 
     attorneys, on a case-by-case basis, to process all legal 
     procedures necessary to clear the title to foreclosed 
     properties in the inventory of the Department.
       ``(b) Compensation.--Attorneys shall be compensated at not 
     more than the usual and customary charges of the attorneys 
     for the work.

     ``SEC. 3912. PROHIBITION ON USE OF LOANS FOR CERTAIN 
                   PURPOSES.

       ``(a) In General.--Except as provided in subsections (b) 
     and (c), the Secretary may not approve a loan under this 
     title to drain, dredge, fill, level, or otherwise manipulate 
     a wetland (as defined in section 1201(a) of the Food Security 
     Act of 1985 (16 U.S.C. 3801(a))), or to engage in any 
     activity that results in impairing or reducing the flow, 
     circulation, or reach of water.
       ``(b) Prior Activity.--Subsection (a) does not apply in the 
     case of--
       ``(1) an activity related to the maintenance of a 
     previously converted wetland; or
       ``(2) in the case of an activity that had already commenced 
     before November 28, 1990.
       ``(c) Exception.--This section shall not apply to a loan 
     made or guaranteed under this title for a utility line.

     ``SEC. 3913. TRANSFER OF LAND TO SECRETARY.

       ``The President may at any time, in the discretion of the 
     President, transfer to the Secretary any right, interest, or 
     title held by the United States in any land acquired in the 
     program of national defense and no longer needed for that 
     purpose that the President finds suitable for the purposes of 
     this title, and the Secretary shall dispose of the 
     transferred land in the manner and subject to the terms and 
     conditions of this title.

     ``SEC. 3914. COMPETITIVE SOURCING LIMITATIONS.

       ``The Secretary may not complete a study of, or enter into 
     a contract with a private party to carry out, without 
     specific authorization in a subsequent Act of Congress, a 
     competitive sourcing activity of the Secretary, including 
     support personnel of the Department, relating to rural 
     development or farmer program loans.

     ``SEC. 3915. REGULATIONS.

       ``The Secretary may issue such regulations, prescribe such 
     terms and conditions for making or guaranteeing loans, 
     security instruments, and agreements, except as otherwise 
     specified in this title, and make such delegations of 
     authority as the Secretary considers necessary to carry out 
     this title.''.

     SEC. 6002. CONFORMING AMENDMENTS.

       (a) Section 17(c) of the Rural Electrification Act of 1936 
     (7 U.S.C. 917(c)) is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) Subtitle B of the Consolidated Farm and Rural 
     Development Act.''.
       (b) Section 305(c)(2)(B)(i)(I) of the Rural Electrification 
     Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended by 
     striking ``section 307(a)(3)(A) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1927(a)(3)(A))'' and 
     inserting ``section 3701(b)(2) of the Consolidated Farm and 
     Rural Development Act''.
       (c) Section 306F(a)(1) of the Rural Electrification Act of 
     1936 (7 U.S.C. 936f(a)(1)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) chapter 1 of subtitle B of the Consolidated Farm and 
     Rural Development Act.''.
       (d) Section 2333(d) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 950aaa 2(d)) is amended--
       (1) in paragraph (11), by adding ``and'' at the end;
       (2) by striking paragraph (12); and
       (3) by redesignating paragraph (13) as paragraph (12).
       (e) Section 601(b) of the Rural Electrification Act of 1936 
     (7 U.S.C. 950bb(b)) is amended by striking paragraph (3).
       (f) Section 602(5) of the Emergency Livestock Feed 
     Assistance Act of 1988 (7 U.S.C. 1471(5)) is amended by 
     striking ``section 355(e)(1)(D)(ii) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii))'' and 
     inserting ``section 3409(c)(1)(A) of the Consolidated Farm 
     and Rural Development Act)''.
       (g) Section 508 of the Federal Crop Insurance Act (7 U.S.C. 
     1508) is amended--
       (1) in subsection (b)(7)(A), by striking ``section 371 of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2008f)'' and inserting ``section 3424 of the Consolidated 
     Farm and Rural Development Act''; and
       (2) in subsection (n)(2), by striking ``subtitle C of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
     seq.)'' and inserting ``chapter 3 of subtitle A of the 
     Consolidated Farm and Rural Development Act''.
       (h) Section 231(a) of the Agricultural Risk Protection Act 
     of 2000 (7 U.S.C. 1632a(a)) is amended--
       (1) in paragraph (1), by striking ``section 343(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a))'' and inserting ``section 3002 of the Consolidated 
     Farm and Rural Development Act''; and
       (2) in paragraph (4), by striking ``section 355(e) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     2003(e))'' and inserting ``section 3002 of the Consolidated 
     Farm and Rural Development Act''.
       (i) Section 14204(a) of the Food, Conservation, and Energy 
     Act of 2008 (7 U.S.C. 2008q 1(a)) is amended by striking ``an 
     entity described in section 379C(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2008q(a))'' and inserting 
     ``an entity determined by the Secretary''.
       (j) Section 607(c)(6) of the Rural Development Policy Act 
     of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last 
     sentence--
       (1) by striking ``, and'' and inserting ``and any''; and
       (2) by striking ``required under section 306(a)(12) of the 
     Consolidated Farm and Rural Development Act''.
       (k) Section 901(b) of the Agricultural Act of 1970 (7 
     U.S.C. 2204b 1(b)) is amended by striking ``rural areas as 
     defined in the private business enterprise exception in 
     section 306(a)(7) of the Consolidated Farmers Home 
     Administration Act of 1961, as amended (7 U.S.C. 1926)'' and 
     inserting ``rural areas, as defined in section 3002 of the 
     Consolidated Farm and Rural Development Act''.
       (l) Section 14220 of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 2206b) is amended by striking ``section 
     343(a)(13)(A) of the Consolidated Farm and Rural Development 
     Act)'' and inserting ``section 3002 of the Consolidated Farm 
     and Rural Development Act)''.
       (m) Section 2501(c)(2)(D) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279(c)(2)(D)) 
     is amended by striking ``sections 355(a)(1) and 355(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     2003(a)(1))'' and inserting ``paragraphs (1) and (3) of 
     section 3416(a) of the Consolidated Farm and Rural 
     Development Act''.
       (n) Section 2501A(b) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279 1(b)) is 
     amended by striking ``section 355(e) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2003(e))'' and inserting 
     ``section 3002 of the Consolidated Farm and Rural Development 
     Act''.
       (o) Section 7405(c)(8)(B) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is amended 
     by striking ``section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e))'' and inserting 
     ``section 3002 of the Consolidated Farm and Rural Development 
     Act)''.
       (p) Section 1101(d)(2)(A) of the Food, Conservation, and 
     Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amended by 
     striking ``section 355(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e))'' and inserting ``section 
     3002 of the Consolidated Farm and Rural Development Act)''.
       (q) Section 1302(d)(2)(A) of the Food, Conservation, and 
     Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amended by 
     striking ``section 355(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e))'' and inserting ``section 
     3002 of the Consolidated Farm and Rural Development Act)''.
       (r) Section 2375(g) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended by 
     striking ``section 304(b), 306(a), or 310B(e) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1924(b), 1926(a), and 1932(e))'' and inserting ``subtitle B 
     of the Consolidated Farm and Rural Development Act''.
       (s) Section 226B(a)(1) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) is amended 
     by striking ``section 343(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1991(a))'' and inserting 
     ``section 3002 of the Consolidated Farm and Rural Development 
     Act''.
       (t) Section 196(i)(3)(B) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)(3)(B)) 
     is amended by striking ``subtitle C of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961 et seq.)'' and 
     inserting ``chapter 3 of subtitle A of the Consolidated Farm 
     and Rural Development Act''.
       (u) Section 9009(a)(1) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is amended by 
     striking ``section 343(a)(13)(A) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1991(a)(13)(A)))'' and 
     inserting ``section 3002 of the Consolidated Farm and Rural 
     Development Act''.
       (v) Section 9011(c)(2)(B)(v) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) is amended 
     by striking subclause (I)and inserting the following:

       ``(I) beginning farmers (as defined in accordance with 
     section 3002 of the Consolidated Farm and Rural Development 
     Act); or''.

       (w) Section 7(b)(2)(B) of the Small Business Act (15 U.S.C. 
     636(b)(2)(B)) is amended by striking ``section 321 of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1961)'' 
     and inserting ``section 3301 of the Consolidated Farm and 
     Rural Development Act''.
       (x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 
     590h(b)(5)(B)(iii)(III)(bb)) is amended by striking ``section 
     355(e)(1) of the Consolidated Farm and Rural Development Act 
     (7 U.S.C.A. Sec.  2003(e)(1))'' and inserting ``section 3002 
     of the Consolidated Farm and Rural Development Act)''.
       (y) Section 10(b)(3) of the Cooperative Forestry Assistance 
     Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the last 
     sentence by striking ``set out in the first clause of section 
     306(a)(7) of the Consolidated Farm and

[[Page S4076]]

     Rural Development Act'' and inserting ``given the term in 
     section 3002 of the Consolidated Farm and Rural Development 
     Act''.
       (z) Section 1201(a)(2) of the Food Security Act of 1985 (16 
     U.S.C. 3801(a)(2)) is amended by striking ``section 343(a)(8) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)(8))'' and inserting ``section 3002 of the 
     Consolidated Farm and Rural Development Act''.
       (aa) Section 1238(2) of the Food Security Act of 1985 (16 
     U.S.C. 3838(2)) is amended by striking ``section 343(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a))'' and inserting ``section 3002 of the Consolidated 
     Farm and Rural Development Act''.
       (bb) The first section of Public Law 91 229 (25 U.S.C. 488) 
     is amended in subsection (a) by striking ``make loans from 
     the Farmers Home Administration Direct Loan Account created 
     by section 338(c), and to make and insure loans as provided 
     in sections 308 and 309, of the Consolidated Farmers Home 
     Administration Act of 1961, as amended (7 U.S.C. 1988(c), 
     1928, 1929),'' and inserting ``make loans under chapter 1 of 
     subtitle A of the Consolidated Farm and Rural Development 
     Act''.
       (cc) Section 5 of Public Law 91 229 (25 U.S.C. 492) is 
     amended by striking ``section 307(a)(3)(B) of the 
     Consolidated Farmers Home Administration Act of 1961, as 
     amended, and to the provisions of subtitle D of that Act 
     except sections 340, 341, 342, and 343'' and inserting 
     ``3105(b)(2) of the Consolidated Farm and Rural Development 
     Act''.
       (dd) Section 6(c) of Public Law 91 229 (25 U.S.C. 493(c)) 
     is amended by striking ``section 333B of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1983b)'' and 
     inserting ``subtitle H of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6991 et seq.)''.
       (ee) Section 181(a)(2)(B)(ii) of the Internal Revenue Code 
     of 1986 is amended by striking ``section 2009aa 1 of title 7, 
     United States Code'' and inserting ``section 3801 of the 
     Consolidated Farm and Rural Development Act''.
       (ff) Section 515(b)(3) of the Housing Act of 1949 (42 
     U.S.C. 1485(b)(3)) is amended by striking ``all the 
     provisions of section 309 and the second and third sentences 
     of section 308 of the Consolidated Farmers Home 
     Administration Act of 1961, including the authority in 
     section 309(f)(1) of that Act'' and inserting ``section 3401 
     of the Consolidated Farm and Rural Development Act''.
       (gg) Section 517(b) of the Housing Act of 1949 (42 U.S.C. 
     1487(b)) is amended in the third sentence by striking ``(7 
     U.S.C. 1929)'' and inserting ``under section 3401 of the 
     Consolidated Farm and Rural Development Act''.
       (hh) Section 3(8) of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3122(8)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the Delta Regional Authority established under 
     chapter 4 of subtitle B of the Consolidated Farm and Rural 
     Development Act;''; and
       (2) by striking subparagraph (D) and inserting the 
     following:
       ``(D) the Northern Great Plains Regional Authority 
     established under chapter 5 of subtitle B of the Consolidated 
     Farm and Rural Development Act.''.
       (ii) Section 310(a) of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) is 
     amended by striking paragraph (4) and inserting the 
     following:
       ``(4) Chapter 1 of subtitle B of the Consolidated Farm and 
     Rural Development Act.''.
       (jj) Section 582(d)(1) of the National Flood Insurance 
     Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended by 
     striking ``section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a))'' and inserting ``section 
     3301(b) of the Consolidated Farm and Rural Development Act''.
       (kk) Section 213(c)(1) of the Biomass Energy and Alcohol 
     Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended in the 
     first sentence by striking ``section 309 of the Consolidated 
     Farm and Rural Development Act or the Rural Development 
     Insurance Fund in section 309A of such Act'' and inserting 
     ``under section 3401 of the Consolidated Farm and Rural 
     Development Act or the Rural Development Insurance Fund under 
     section 3704 of that Act''.
       (ll) Section 1323(b)(2) of the Food Security Act of 1985 
     (Public Law 99 198; 7 U.S.C. 1932 note) is amended--
       (1) in subparagraph (A), by inserting ``and'' at the end;
       (2) in subparagraph (B), by striking ``; and'' at the end 
     and inserting a period; and
       (3) by striking subparagraph (C).

                   Subtitle B--Rural Electrification

     SEC. 6101. DEFINITION OF RURAL AREA.

       Section 13(3) of the Rural Electrification Act of 1936 (7 
     U.S.C. 913(A)) is amended by striking subparagraph (A) and 
     inserting the following:
       ``(A) any area described in section 3002(28)(A)(i) of the 
     Consolidated Farm and Rural Development Act; and''.

     SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       Section 313A(f) of the Rural Electrification Act of 1936 (7 
     U.S.C. 940c 1(f)) is amended by striking ``2012'' and 
     inserting ``2017''.

     SEC. 6103. EXPANSION OF 911 ACCESS.

       Section 315(d) of the Rural Electrification Act of 1936 (7 
     U.S.C. 940e(d)) is amended by striking ``2012'' and inserting 
     ``2017''.

     SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN 
                   RURAL AREAS.

       Section 601 of the Rural Electrification Act of 1936 (7 
     U.S.C. 950bb) is amended--
       (1) in subsection (a), by striking ``loans and'' and 
     inserting ``grants, loans, and'';
       (2) in subsection (b), by striking paragraph (3) and 
     inserting the following:
       ``(3) Rural area.--The term `rural area' means any area 
     described in section 3002 of the Consolidated Farm and Rural 
     Development Act.'';
       (3) in subsection (c)--
       (A) in the subsection heading, by striking ``Loans and'' 
     and inserting ``Grants, Loans, and'';
       (B) in paragraph (1), by inserting ``make grants and'' 
     after ``Secretary shall'';
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Priority.--
       ``(A) In general.--In making grants or guaranteeing loans 
     under paragraph (1), the Secretary shall give the highest 
     priority to applicants that offer to provide broadband 
     service to the greatest proportion of households that, prior 
     to the provision of the broadband service, had no incumbent 
     service provider.
       ``(B) Other.--After giving priority to the applicants 
     described in subparagraph (A), the Secretary shall then give 
     priority to projects that serve rural communities--
       ``(i) with a population of less than 20,000 permanent 
     residents;
       ``(ii) experiencing outmigration;
       ``(iii) with a high percentage of low-income residents; and
       ``(iv) that are isolated from other significant population 
     centers.''; and
       (D) by adding at the end the following:
       ``(3) Grant amounts.--
       ``(A) Eligibility.--To be eligible for a grant under this 
     section, the project that is the subject of the grant shall 
     be carried out in a rural area.
       ``(B) Maximum.--Except as provided in subparagraph (D), the 
     amount of any grant made under this section shall not exceed 
     50 percent of the development costs of the project for which 
     the grant is provided.
       ``(C) Grant rate.--The Secretary shall establish the grant 
     rate for each project in accordance with regulations issued 
     by the Secretary that shall provide for a graduated scale of 
     grant rates that establish higher rates for projects in 
     communities that have--
       ``(i) remote locations;
       ``(ii) low community populations;
       ``(iii) low income levels; and
       ``(iv) developed the applications of the communities with 
     the participation of combinations of stakeholders, 
     including--

       ``(I) State, local, and tribal governments;
       ``(II) nonprofit institutions;
       ``(III) institutions of higher education;
       ``(IV) private entities; and
       ``(V) philanthropic organizations.

       ``(D) Secretarial authority to adjust.--The Secretary may 
     make grants of up to 75 percent of the development costs of 
     the project for which the grant is provided to an eligible 
     entity if the Secretary determines that the project serves a 
     remote or low income area that does not have access to 
     broadband service from any provider of broadband service 
     (including the applicant).'';
       (4) in subsection (d)--
       (A) in paragraph (1)(A)--
       (i) in the matter preceding clause (i), by striking ``loan 
     or'' and inserting ``grant, loan, or'';
       (ii) in clause (ii), by striking ``a loan application'' and 
     inserting ``an application''; and
       (iii) in clause (iii)--

       (I) by striking ``the loan application'' and inserting 
     ``the application''; and
       (II) by striking ``proceeds from the loan made or 
     guaranteed under this section are'' and inserting 
     ``assistance under this section is'';

       (B) in paragraph (2)(A), in the matter preceding clause 
     (i)--
       (i) by striking ``the proceeds of a loan made or 
     guaranteed'' and inserting ``assistance''; and
       (ii) by striking ``for the loan or loan guarantee'' and 
     inserting ``of the eligible entity'';
       (C) by striking ``loan or'' each place it appears in 
     paragraphs (2)(B), (3)(A), (4), (5), and (6) and inserting 
     ``grant, loan, or'';
       (D) in paragraph (7), by striking ``a loan application'' 
     and inserting ``an application''; and
       (E) by adding at the end the following:
       ``(8) Transparency and reporting.--The Secretary--
       ``(A) shall require any entity receiving assistance under 
     this section to submit quarterly, in a format specified by 
     the Secretary, a report that describes--
       ``(i) the use by the entity of the assistance; and
       ``(ii) the progress towards fulfilling the objectives for 
     which the assistance was granted;
       ``(B) shall maintain a fully searchable database, 
     accessible on the Internet at no cost to the public, that 
     contains, at a minimum--
       ``(i) a list of each entity that has applied for assistance 
     under this section;
       ``(ii) a description of each application, including the 
     status of each application;
       ``(iii) for each entity receiving assistance under this 
     section--

       ``(I) the name of the entity;
       ``(II) the type of assistance being received;
       ``(III) the purpose for which the entity is receiving the 
     assistance; and

[[Page S4077]]

       ``(IV) each quarterly report submitted under subparagraph 
     (A); and

       ``(iv) such other information as is sufficient to allow the 
     public to understand and monitor assistance provided under 
     this section;
       ``(C) may, in addition to other authority under applicable 
     law, deobligate awards to grantees that demonstrate an 
     insufficient level of performance, or wasteful or fraudulent 
     spending, as defined in advance by the Secretary, and award 
     those funds competitively to new or existing applicants 
     consistent with this section; and
       ``(D) may establish additional reporting and information 
     requirements for any recipient of any assistance under this 
     section so as to ensure compliance with this section.'';
       (5) in subsection (f), by striking ``make a loan or loan 
     guarantee'' and inserting ``provide assistance'';
       (6) in subsection (j)--
       (A) in the matter preceding paragraph (1), by striking 
     ``loan and loan guarantee'';
       (B) in paragraph (1), by inserting ``grants and'' after 
     ``number of'';
       (C) in paragraph (2)--
       (i) in subparagraph (A), by striking ``loan''; and
       (ii) in subparagraph (B), by striking ``loans and'' and 
     inserting ``grants, loans, and''; and
       (D) in paragraph (3), by striking ``loan'';
       (7) in subsection (k)(1)--
       (A) by striking ``$25,000,000'' and inserting 
     ``$50,000,000''; and
       (B) by striking ``2012'' and inserting ``2017''; and
       (8) in subsection (l)--
       (A) by striking ``loan or'' and inserting ``grant, loan, 
     or''; and
       (B) by striking ``2012'' and inserting ``2017''.

                       Subtitle C--Miscellaneous

     SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

       (a) Authorization of Appropriations.--Section 2335A of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 950aaa-5) is amended by striking ``2012'' and 
     inserting ``2017''.
       (b) Conforming Amendment.--Section 1(b) of Public Law 102 
     551 (7 U.S.C. 950aaa note) is amended by striking ``2012'' 
     and inserting ``2017''.

     SEC. 6202. RURAL ENERGY SAVINGS PROGRAM.

       Subtitle E of title VI of the Farm Security and Rural 
     Investment Act of 2002 (Public Law 107 171; 116 Stat. 424) is 
     amended by adding at the end the following:

     ``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.

       ``(a) Purpose.--The purpose of this section is to create 
     jobs, promote rural development, and help rural families and 
     small businesses achieve cost savings by providing loans to 
     qualified consumers to implement durable cost-effective 
     energy efficiency measures.
       ``(b) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) any public power district, public utility district, 
     or similar entity, or any electric cooperative described in 
     section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code 
     of 1986, that borrowed and repaid, prepaid, or is paying an 
     electric loan made or guaranteed by the Rural Utilities 
     Service (or any predecessor agency);
       ``(B) any entity primarily owned or controlled by 1 or more 
     entities described in subparagraph (A); or
       ``(C) any other entity that is an eligible borrower of the 
     Rural Utility Service, as determined under section 1710.101 
     of title 7, Code of Federal Regulations (or a successor 
     regulation).
       ``(2) Energy efficiency measures.--The term `energy 
     efficiency measures' means, for or at property served by an 
     eligible entity, structural improvements and investments in 
     cost-effective, commercial technologies to increase energy 
     efficiency.
       ``(3) Qualified consumer.--The term `qualified consumer' 
     means a consumer served by an eligible entity that has the 
     ability to repay a loan made under subsection (d), as 
     determined by the eligible entity.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Administrator of the Rural 
     Utilities Service.
       ``(c) Loans to Eligible Entities.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall make loans to eligible entities that agree to use the 
     loan funds to make loans to qualified consumers for the 
     purpose of implementing energy efficiency measures.
       ``(2) Requirements.--
       ``(A) In general.--As a condition of receiving a loan under 
     this subsection, an eligible entity shall--
       ``(i) establish a list of energy efficiency measures that 
     is expected to decrease energy use or costs of qualified 
     consumers;
       ``(ii) prepare an implementation plan for use of the loan 
     funds, including use of any interest to be received pursuant 
     to subsection (d)(1)(A);
       ``(iii) provide for appropriate measurement and 
     verification to ensure--

       ``(I) the effectiveness of the energy efficiency loans made 
     by the eligible entity; and
       ``(II) that there is no conflict of interest in carrying 
     out this section; and

       ``(iv) demonstrate expertise in effective use of energy 
     efficiency measures at an appropriate scale.
       ``(B) Revision of list of energy efficiency measures.--
     Subject to the approval of the Secretary, an eligible entity 
     may update the list required under subparagraph (A)(i) to 
     account for newly available efficiency technologies.
       ``(C) Existing energy efficiency programs.--An eligible 
     entity that, at any time before the date that is 60 days 
     after the date of enactment of this section, has established 
     an energy efficiency program for qualified consumers may use 
     an existing list of energy efficiency measures, 
     implementation plan, or measurement and verification system 
     of that program to satisfy the requirements of subparagraph 
     (A) if the Secretary determines the list, plan, or systems 
     are consistent with the purposes of this section.
       ``(3) No interest.--A loan under this subsection shall bear 
     no interest.
       ``(4) Repayment.--With respect to a loan under paragraph 
     (1)--
       ``(A) the term shall not exceed 20 years from the date on 
     which the loan is closed; and
       ``(B) except as provided in paragraph (6), the repayment of 
     each advance shall be amortized for a period not to exceed 10 
     years.
       ``(5) Amount of advances.--Any advance of loan funds to an 
     eligible entity in any single year shall not exceed 50 
     percent of the approved loan amount.
       ``(6) Special advance for start-up activities.--
       ``(A) In general.--In order to assist an eligible entity in 
     defraying the appropriate start-up costs (as determined by 
     the Secretary) of establishing new programs or modifying 
     existing programs to carry out subsection (d), the Secretary 
     shall allow an eligible entity to request a special advance.
       ``(B) Amount.--No eligible entity may receive a special 
     advance under this paragraph for an amount that is greater 
     than 4 percent of the loan amount received by the eligible 
     entity under paragraph (1).
       ``(C) Repayment.--Repayment of the special advance--
       ``(i) shall be required during the 10-year period beginning 
     on the date on which the special advance is made; and
       ``(ii) at the election of the eligible entity, may be 
     deferred to the end of the 10-year period.
       ``(7) Limitation.--All special advances shall be made under 
     a loan described in paragraph (1) during the first 10 years 
     of the term of the loan.
       ``(d) Loans to Qualified Consumers.--
       ``(1) Terms of loans.--Loans made by an eligible entity to 
     qualified consumers using loan funds provided by the 
     Secretary under subsection (c)--
       ``(A) may bear interest, not to exceed 3 percent, to be 
     used for purposes that include--
       ``(i) to establish a loan loss reserve; and
       ``(ii) to offset personnel and program costs of eligible 
     entities to provide the loans;
       ``(B) shall finance energy efficiency measures for the 
     purpose of decreasing energy usage or costs of the qualified 
     consumer by an amount that ensures, to the maximum extent 
     practicable, that a loan term of not more than 10 years will 
     not pose an undue financial burden on the qualified consumer, 
     as determined by the eligible entity;
       ``(C) shall not be used to fund purchases of, or 
     modifications to, personal property unless the personal 
     property is or becomes attached to real property (including a 
     manufactured home) as a fixture;
       ``(D) shall be repaid through charges added to the electric 
     bill for the property for, or at which, energy efficiency 
     measures are or will be implemented, on the condition that 
     this requirement does not prohibit--
       ``(i) the voluntary prepayment of a loan by the owner of 
     the property; or
       ``(ii) the use of any additional repayment mechanisms that 
     are--

       ``(I) demonstrated to have appropriate risk mitigation 
     features, as determined by the eligible entity; or
       ``(II) required if the qualified consumer is no longer a 
     customer of the eligible entity; and

       ``(E) shall require an energy audit by an eligible entity 
     to determine the impact of proposed energy efficiency 
     measures on the energy costs and consumption of the qualified 
     consumer.
       ``(2) Contractors.--In addition to any other qualified 
     general contractor, eligible entities may serve as general 
     contractors.
       ``(e) Contract for Measurement and Verification, Training, 
     and Technical Assistance.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of this section, the Secretary--
       ``(A) shall establish a plan for measurement and 
     verification, training, and technical assistance of the 
     program; and
       ``(B) may enter into 1 or more contracts with a qualified 
     entity for the purposes of--
       ``(i) providing measurement and verification activities; 
     and
       ``(ii) developing a program to provide technical assistance 
     and training to the employees of eligible entities to carry 
     out this section.
       ``(2) Use of subcontractors authorized.--A qualified entity 
     that enters into a contract under paragraph (1) may use 
     subcontractors to assist the qualified entity in carrying out 
     the contract.
       ``(f) Fast Start Demonstration Projects.--
       ``(1) In general.--The Secretary shall offer to enter into 
     agreements with eligible entities (or groups of eligible 
     entities) that have energy efficiency programs described in 
     subsection (c)(2)(C) to establish an energy efficiency loan 
     demonstration projects consistent with the purposes of this 
     section.

[[Page S4078]]

       ``(2) Evaluation criteria.--In determining which eligible 
     entities to award loans under this section, the Secretary 
     shall take into consideration eligible entities that--
       ``(A) implement approaches to energy audits and investments 
     in energy efficiency measures that yield measurable and 
     predictable savings;
       ``(B) use measurement and verification processes to 
     determine the effectiveness of energy efficiency loans made 
     by eligible entities;
       ``(C) include training for employees of eligible entities, 
     including any contractors of such entities, to implement or 
     oversee the activities described in subparagraphs (A) and 
     (B);
       ``(D) provide for the participation of a majority of 
     eligible entities in a State;
       ``(E) reduce the need for generating capacity;
       ``(F) provide efficiency loans to--
       ``(i) in the case of a single eligible entity, not fewer 
     than 20,000 consumers; or
       ``(ii) in the case of a group of eligible entities, not 
     fewer than 80,000 consumers; and
       ``(G) serve areas in which, as determined by the Secretary, 
     a large percentage of consumers reside--
       ``(i) in manufactured homes; or
       ``(ii) in housing units that are more than 50 years old.
       ``(3) Deadline for implementation.--To the maximum extent 
     practicable, the Secretary shall enter into agreements 
     described in paragraph (1) by not later than 90 days after 
     the date of enactment of this section.
       ``(4) Effect on availability of loans nationally.--Nothing 
     in this subsection shall delay the availability of loans to 
     eligible entities on a national basis beginning not later 
     than 180 days after the date of enactment of this section.
       ``(5) Additional demonstration project authority.--
       ``(A) In general.--The Secretary may conduct demonstration 
     projects in addition to the project required by paragraph 
     (1).
       ``(B) Inapplicability of certain criteria.--The additional 
     demonstration projects may be carried out without regard to 
     subparagraphs (D), (F), or (G) of paragraph (2).
       ``(g) Additional Authority.--The authority provided in this 
     section is in addition to any other authority of the 
     Secretary to offer loans under any other law.
       ``(h) Effective Period.--Subject to the availability of 
     funds and except as otherwise provided in this section, the 
     loans and other expenditures required to be made under this 
     section shall be available until expended, with the Secretary 
     authorized to make new loans as loans are repaid.
       ``(i) Regulations.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, not later than 180 days after the date of 
     enactment of this section, the Secretary shall promulgate 
     such regulations as are necessary to implement this section.
       ``(2) Procedure.--The promulgation of the regulations and 
     administration of this section shall be made without regard 
     to--
       ``(A) 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
       ``(B) chapter 35 of title 44, United States Code (commonly 
     known as the `Paperwork Reduction Act').
       ``(3) Congressional review of agency rulemaking.--In 
     carrying out this section, the Secretary shall use the 
     authority provided under section 808 of title 5, United 
     States Code.
       ``(4) Interim regulations.--Notwithstanding paragraphs (1) 
     and (2), to the extent regulations are necessary to carry out 
     any provision of this section, the Secretary shall implement 
     such regulations through the promulgation of an interim 
     rule.''.

          TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS

  Subtitle A--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

     SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       (a) Authorization of Appropriations.--Section 1408(h) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by striking 
     ``2012'' and inserting ``2017''.
       (b) Duties of National Agricultural Research, Extension, 
     Education, and Economics Advisory Board.--Section 1408(c) of 
     the National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3123(c)) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4)(C), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(5) consult with industry groups on agricultural 
     research, extension, education, and economics, and make 
     recommendations to the Secretary based on that 
     consultation.''.

     SEC. 7102. SPECIALTY CROP COMMITTEE.

       Section 1408A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) 
     is amended--
       (1) in subsection (b)--
       (A) by striking ``Individuals'' and inserting the 
     following:
       ``(1) Eligibility.--Individuals'';
       (B) by striking ``Members'' and inserting the following:
       ``(2) Service.--Members''; and
       (C) by adding at the end the following:
       ``(3) Diversity.--Membership of the specialty crops 
     committee shall reflect diversity in the specialty crops 
     represented.'';
       (2) in subsection (c), by adding at the end the following:
       ``(6) Analysis of alignment of specialty crop committee 
     recommendations with specialty crop research initiative 
     grants awarded under section 412(d) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7632).'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively;
       (4) by inserting after subsection (c) the following:
       ``(d) Consultation With Specialty Crop Industry.--In 
     studying the scope and effectiveness of programs under 
     subsection (a), the specialty crops committee shall consult 
     on an ongoing basis with diverse sectors of the specialty 
     crop industry.''; and
       (5) in subsection (f) (as redesignated by paragraph (3)), 
     by striking ``subsection (d)'' and inserting ``subsection 
     (e)''.

     SEC. 7103. VETERINARY SERVICES GRANT PROGRAM.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 
     1415A (7 U.S.C. 3151a) the following:

     ``SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Qualified entity.--The term `qualified entity' 
     means--
       ``(A) a for-profit or nonprofit entity located in the 
     United States that operates a veterinary clinic providing 
     veterinary services--
       ``(i) in a rural area, as defined in section 343(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)); and
       ``(ii) in response to a veterinarian shortage situation;
       ``(B) a State, national, allied, or regional veterinary 
     organization or specialty board recognized by the American 
     Veterinary Medical Association;
       ``(C) a college or school of veterinary medicine accredited 
     by the American Veterinary Medical Association;
       ``(D) a university research foundation or veterinary 
     medical foundation;
       ``(E) a department of veterinary science or department of 
     comparative medicine accredited by the Department of 
     Education;
       ``(F) a State agricultural experiment station; and
       ``(G) a State, local, or tribal government agency.
       ``(2) Veterinarian shortage situation.--The term 
     `veterinarian shortage situation' means a veterinarian 
     shortage situation determined by the Secretary under section 
     1415A(b).
       ``(b) Establishment of Program.--
       ``(1) Competitive grants.--The Secretary shall carry out a 
     program to make competitive grants to qualified entities that 
     carry out programs or activities described in paragraph (2) 
     for the purpose of developing, implementing, and sustaining 
     veterinary services.
       ``(2) Eligibility requirements.--To be eligible to receive 
     a grant described in paragraph (1), a qualified entity shall 
     carry out programs or a