[House Report 113-333]
[From the U.S. Government Publishing Office]
113th Congress } { Report
2d Session } HOUSE OF REPRESENTATIVES { 113-333
_______________________________________________________________________
AGRICULTURAL ACT OF 2014
__________
CONFERENCE REPORT
to accompany
H.R. 2642
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
January 27, 2014.--Ordered to be printed
----------
U.S. GOVERNMENT PRINTING OFFICE
86-435 WASHINGTON : 2014
AGRICULTURAL ACT OF 2014
113th Congress } { Report
2d Session } HOUSE OF REPRESENTATIVES { 113-333
_______________________________________________________________________
AGRICULTURAL ACT OF 2014
----------
CONFERENCE REPORT
to accompany
H.R. 2642
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
January 27, 2014.--Ordered to be printed
113th Congress } { Report
2d Session } HOUSE OF REPRESENTATIVES { 113-333
=======================================================================
AGRICULTURAL ACT OF 2014
_______
January 27, 2014.--Ordered to be printed
_______
Mr. Lucas, from the committee on conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 2642]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the House to the amendment
of the Senate to the bill (H.R. 2642), to provide for the
reform and continuation of agricultural and other programs of
the Department of Agriculture through fiscal year 2018, and for
other purposes, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its amendment to the amendment
of the Senate and agree to the same with an amendment as
follows:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Agricultural Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary of Agriculture.
TITLE I--COMMODITIES
Subtitle A--Repeals and Reforms
Part I--Repeals
Sec. 1101. Repeal of direct payments.
Sec. 1102. Repeal of counter-cyclical payments.
Sec. 1103. Repeal of average crop revenue election program.
Part II--Commodity Policy
Sec. 1111. Definitions.
Sec. 1112. Base acres.
Sec. 1113. Payment yields.
Sec. 1114. Payment acres.
Sec. 1115. Producer election.
Sec. 1116. Price loss coverage.
Sec. 1117. Agriculture risk coverage.
Sec. 1118. Producer agreements.
Sec. 1119. Transition assistance for producers of upland cotton.
Subtitle B--Marketing Loans
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.
Subtitle C--Sugar
Sec. 1301. Sugar policy.
Subtitle D--Dairy
Part I--Margin Protection Program for Dairy Producers
Sec. 1401. Definitions.
Sec. 1402. Calculation of average feed cost and actual dairy production
margins.
Sec. 1403. Establishment of margin protection program for dairy
producers.
Sec. 1404. Participation of dairy operations in margin protection
program.
Sec. 1405. Production history of participating dairy operations.
Sec. 1406. Margin protection payments.
Sec. 1407. Premiums for margin protection program.
Sec. 1408. Effect of failure to pay administrative fees or premiums.
Sec. 1409. Duration.
Sec. 1410. Administration and enforcement.
Part II--Repeal or Reauthorization of Other Dairy-Related Provisions
Sec. 1421. Repeal of dairy product price support program.
Sec. 1422. Temporary continuation and eventual repeal of milk income
loss contract program.
Sec. 1423. Repeal of dairy export incentive program.
Sec. 1424. Extension of dairy forward pricing program.
Sec. 1425. Extension of dairy indemnity program.
Sec. 1426. Extension of dairy promotion and research program.
Sec. 1427. Repeal of Federal Milk Marketing Order Review Commission.
Part III--Dairy Product Donation Program
Sec. 1431. Dairy product donation program.
Subtitle E--Supplemental Agricultural Disaster Assistance Programs
Sec. 1501. Supplemental agricultural disaster assistance.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Rulemaking related to significant contribution for active
personal management.
Sec. 1605. Adjusted gross income limitation.
Sec. 1606. Geographically disadvantaged farmers and ranchers.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Prevention of deceased individuals receiving payments under
farm commodity programs.
Sec. 1609. Technical corrections.
Sec. 1610. Appeals.
Sec. 1611. Assignment of payments.
Sec. 1612. Tracking of benefits.
Sec. 1613. Signature authority.
Sec. 1614. Implementation.
Sec. 1615. Research option.
TITLE II--CONSERVATION
Subtitle A--Conservation Reserve Program
Sec. 2001. Extension and enrollment requirements of conservation reserve
program.
Sec. 2002. Farmable wetland program.
Sec. 2003. Duties of owners and operators.
Sec. 2004. Duties of the Secretary.
Sec. 2005. Payments.
Sec. 2006. Contract requirements.
Sec. 2007. Conversion of land subject to contract to other conserving
uses.
Sec. 2008. Effect on existing contracts.
Subtitle B--Conservation Stewardship Program
Sec. 2101. Conservation stewardship program.
Subtitle C--Environmental Quality Incentives Program
Sec. 2201. Purposes.
Sec. 2202. Definitions.
Sec. 2203. Establishment and administration.
Sec. 2204. Evaluation of applications.
Sec. 2205. Duties of producers.
Sec. 2206. Limitation on payments.
Sec. 2207. Conservation innovation grants and payments.
Sec. 2208. Effect on existing contracts.
Subtitle D--Agricultural Conservation Easement Program
Sec. 2301. Agricultural conservation easement program.
Subtitle E--Regional Conservation Partnership Program
Sec. 2401. Regional conservation partnership program.
Subtitle F--Other Conservation Programs
Sec. 2501. Conservation of private grazing land.
Sec. 2502. Grassroots source water protection program.
Sec. 2503. Voluntary public access and habitat incentive program.
Sec. 2504. Agriculture conservation experienced services program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Emergency watershed protection program.
Sec. 2507. Terminal Lakes.
Sec. 2508. Soil and Water Resources Conservation.
Subtitle G--Funding and Administration
Sec. 2601. Funding.
Sec. 2602. Technical assistance.
Sec. 2603. Regional equity.
Sec. 2604. Reservation of funds to provide assistance to certain farmers
or ranchers for conservation access.
Sec. 2605. Annual report on program enrollments and assistance.
Sec. 2606. Administrative requirements applicable to all conservation
programs.
Sec. 2607. Standards for State technical committees.
Sec. 2608. Rulemaking authority.
Sec. 2609. Wetlands mitigation.
Sec. 2610. Lesser prairie-chicken conservation report.
Sec. 2611. Highly erodible land and wetland conservation for crop
insurance.
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions; Technical Amendments
Sec. 2701. Comprehensive conservation enhancement program.
Sec. 2702. Emergency forestry conservation reserve program.
Sec. 2703. Wetlands reserve program.
Sec. 2704. Farmland protection program and farm viability program.
Sec. 2705. Grassland reserve program.
Sec. 2706. Agricultural water enhancement program.
Sec. 2707. Wildlife habitat incentive program.
Sec. 2708. Great Lakes basin program.
Sec. 2709. Chesapeake Bay watershed program.
Sec. 2710. Cooperative conservation partnership initiative.
Sec. 2711. Environmental easement program.
Sec. 2712. Temporary administration of conservation programs.
Sec. 2713. Technical amendments.
TITLE III--TRADE
Subtitle A--Food for Peace Act
Sec. 3001. General authority.
Sec. 3002. Set-aside for support for organizations through which
nonemergency assistance is provided.
Sec. 3003. Food aid quality.
Sec. 3004. Minimum levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Oversight, monitoring, and evaluation.
Sec. 3007. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3008. Impact on local farmers and economy and report on use of
funds.
Sec. 3009. Prepositioning of agricultural commodities.
Sec. 3010. Annual report regarding food aid programs and activities.
Sec. 3011. Deadline for agreements to finance sales or to provide other
assistance.
Sec. 3012. Minimum level of nonemergency food assistance.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Sec. 3015. Coordination of foreign assistance programs report.
Subtitle B--Agricultural Trade Act of 1978
Sec. 3101. Export credit guarantee program.
Sec. 3102. Funding for market access program.
Sec. 3103. Foreign market development cooperator program.
Subtitle C--Other Agricultural Trade Laws
Sec. 3201. Food for Progress Act of 1985.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
Sec. 3203. Promotion of agricultural exports to emerging markets.
Sec. 3204. McGovern-Dole International Food for Education and Child
Nutrition Program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global Crop Diversity Trust.
Sec. 3207. Local and regional food aid procurement projects.
Sec. 3208. Under Secretary of Agriculture for Trade and Foreign
Agricultural Affairs.
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
Sec. 4001. Preventing payment of cash to recipients of supplemental
nutrition assistance benefits for the return of empty bottles
and cans used to contain food purchased with benefits provided
under the program.
Sec. 4002. Retail food stores.
Sec. 4003. Enhancing services to elderly and disabled supplemental
nutrition assistance program participants.
Sec. 4004. Food distribution program on Indian reservations.
Sec. 4005. Exclusion of medical marijuana from excess medical expense
deduction.
Sec. 4006. Standard utility allowances based on the receipt of energy
assistance payments.
Sec. 4007. Eligibility disqualifications.
Sec. 4008. Eligibility disqualifications for certain convicted felons.
Sec. 4009. Ending supplemental nutrition assistance program benefits for
lottery or gambling winners.
Sec. 4010. Improving security of food assistance.
Sec. 4011. Technology modernization for retail food stores.
Sec. 4012. Use of benefits for purchase of community-supported
agriculture share.
Sec. 4013. Improved wage verification using the National Directory of
New Hires.
Sec. 4014. Restaurant meals program.
Sec. 4015. Mandating State immigration verification.
Sec. 4016. Data exchange standardization for improved interoperability.
Sec. 4017. Pilot projects to improve Federal-State cooperation in
identifying and reducing fraud in the supplemental nutrition
assistance program.
Sec. 4018. Prohibiting government-sponsored recruitment activities.
Sec. 4019. Tolerance level for excluding small errors.
Sec. 4020. Quality control standards.
Sec. 4021. Performance bonus payments.
Sec. 4022. Pilot projects to reduce dependency and increase work
requirements and work effort under supplemental nutrition
assistance program.
Sec. 4023. Cooperation with program research and evaluation.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Review, report, and regulation of cash nutrition assistance
program benefits provided in Puerto Rico.
Sec. 4026. Assistance for community food projects.
Sec. 4027. Emergency food assistance.
Sec. 4028. Nutrition education.
Sec. 4029. Retail food store and recipient trafficking.
Sec. 4030. Technical and conforming amendments.
Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program.
Sec. 4032. Annual State report on verification of SNAP participation.
Sec. 4033. Service of traditional foods in public facilities.
Subtitle B--Commodity Distribution Programs
Sec. 4101. Commodity distribution program.
Sec. 4102. Commodity supplemental food program.
Sec. 4103. Distribution of surplus commodities to special nutrition
projects.
Sec. 4104. Processing of commodities.
Subtitle C--Miscellaneous
Sec. 4201. Purchase of fresh fruits and vegetables for distribution to
schools and service institutions.
Sec. 4202. Pilot project for procurement of unprocessed fruits and
vegetables.
Sec. 4203. Seniors farmers' market nutrition program.
Sec. 4204. Dietary Guidelines for Americans.
Sec. 4205. Multiagency task force.
Sec. 4206. Healthy Food Financing Initiative.
Sec. 4207. Purchase of Halal and Kosher food for emergency food
assistance program.
Sec. 4208. Food insecurity nutrition incentive.
Sec. 4209. Food and agriculture service learning program.
Sec. 4210. Nutrition information and awareness pilot program.
Sec. 4211. Termination of existing agreement.
Sec. 4212. Review of sole-source contracts in Federal nutrition
programs.
Sec. 4213. Pulse crop products.
Sec. 4214. Pilot project for canned, frozen, or dried fruits and
vegetables.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Eligibility for farm ownership loans.
Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Joint financing arrangements.
Sec. 5004. Elimination of mineral rights appraisal requirement.
Sec. 5005. Down payment loan program.
Subtitle B--Operating Loans
Sec. 5101. Eligibility for farm operating loans.
Sec. 5102. Elimination of rural residency requirement for operating
loans to youth.
Sec. 5103. Defaults by youth loan borrowers.
Sec. 5104. Term limits on direct operating loans.
Sec. 5105. Valuation of local or regional crops.
Sec. 5106. Microloans.
Sec. 5107. Term limits on guaranteed operating loans.
Subtitle C--Emergency Loans
Sec. 5201. Eligibility for emergency loans.
Subtitle D--Administrative Provisions
Sec. 5301. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5302. Farmer loan pilot projects.
Sec. 5303. Definition of qualified beginning farmer or rancher.
Sec. 5304. Loan authorization levels.
Sec. 5305. Loan fund set-asides.
Sec. 5306. Borrower training.
Subtitle E--Miscellaneous
Sec. 5401. State agricultural mediation programs.
Sec. 5402. Loans to purchasers of highly fractionated land.
Sec. 5403. Removal of duplicative appraisals.
Sec. 5404. Compensation disclosure by Farm Credit System institutions.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Elimination of reservation of community facilities grant
program funds.
Sec. 6003. Rural water and wastewater circuit rider program.
Sec. 6004. Use of loan guarantees for community facilities.
Sec. 6005. Tribal college and university essential community facilities.
Sec. 6006. Essential community facilities technical assistance and
training.
Sec. 6007. Emergency and imminent community water assistance grant
program.
Sec. 6008. Water systems for rural and native villages in Alaska.
Sec. 6009. Household water well systems.
Sec. 6010. Rural business and industry loan program.
Sec. 6011. Solid waste management grants.
Sec. 6012. Rural business development grants.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Locally or regionally produced agricultural food products.
Sec. 6015. Appropriate technology transfer for rural areas program.
Sec. 6016. Rural economic area partnership zones.
Sec. 6017. Intermediary relending program.
Sec. 6018. Rural college coordinated strategy.
Sec. 6019. Rural water and waste disposal infrastructure.
Sec. 6020. Simplified applications.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Grants for NOAA weather radio transmitters.
Sec. 6023. Rural microentrepreneur assistance program.
Sec. 6024. Health care services.
Sec. 6025. Strategic economic and community development.
Sec. 6026. Delta Regional Authority.
Sec. 6027. Northern Great Plains Regional Authority.
Sec. 6028. Rural business investment program.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Fees for certain loan guarantees.
Sec. 6102. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6103. Expansion of 911 access.
Sec. 6104. Access to broadband telecommunications services in rural
areas.
Sec. 6105. Rural Gigabit Network Pilot Program.
Subtitle C--Miscellaneous
Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Agricultural transportation.
Sec. 6203. Value-added agricultural product market development grants.
Sec. 6204. Agriculture innovation center demonstration program.
Sec. 6205. Rural energy savings program.
Sec. 6206. Study of rural transportation issues.
Sec. 6207. Regional economic and infrastructure development.
Sec. 6208. Definition of rural area for purposes of the Housing Act of
1949.
Sec. 6209. Program metrics.
Sec. 6210. Funding of pending rural development loan and grant
applications.
TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7101. Option to be included as non-land-grant college of
agriculture.
Sec. 7102. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7103. Specialty crop committee.
Sec. 7104. Veterinary services grant program.
Sec. 7105. Grants and fellowships for food and agriculture sciences
education.
Sec. 7106. Agricultural and food policy research centers.
Sec. 7107. Education grants to Alaska Native serving institutions and
Native Hawaiian serving institutions.
Sec. 7108. Repeal of human nutrition intervention and health promotion
research program.
Sec. 7109. Repeal of pilot research program to combine medical and
agricultural research.
Sec. 7110. Nutrition education program.
Sec. 7111. Continuing animal health and disease research programs.
Sec. 7112. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7113. Grants to upgrade agriculture and food science facilities and
equipment at insular area land-grant institutions.
Sec. 7114. Repeal of national research and training virtual centers.
Sec. 7115. Hispanic-serving institutions.
Sec. 7116. Competitive Grants Program for Hispanic Agricultural Workers
and Youth.
Sec. 7117. Competitive grants for international agricultural science and
education programs.
Sec. 7118. Repeal of research equipment grants.
Sec. 7119. University research.
Sec. 7120. Extension service.
Sec. 7121. Auditing, reporting, bookkeeping, and administrative
requirements.
Sec. 7122. Supplemental and alternative crops.
Sec. 7123. Capacity building grants for NLGCA institutions.
Sec. 7124. Aquaculture assistance programs.
Sec. 7125. Rangeland research programs.
Sec. 7126. Special authorization for biosecurity planning and response.
Sec. 7127. Distance education and resident instruction grants program
for insular area institutions of higher education.
Sec. 7128. Matching funds requirement.
Sec. 7129. Designation of Central State University as 1890 institution.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7201. Best utilization of biological applications.
Sec. 7202. Integrated management systems.
Sec. 7203. Sustainable agriculture technology development and transfer
program.
Sec. 7204. National training program.
Sec. 7205. National Genetics Resources Program.
Sec. 7206. National Agricultural Weather Information System.
Sec. 7207. Repeal of rural electronic commerce extension program.
Sec. 7208. Agricultural Genome Initiative.
Sec. 7209. High-priority research and extension initiatives.
Sec. 7210. Repeal of nutrient management research and extension
initiative.
Sec. 7211. Organic agriculture research and extension initiative.
Sec. 7212. Repeal of agricultural bioenergy feedstock and energy
efficiency research and extension initiative.
Sec. 7213. Farm business management.
Sec. 7214. Centers of excellence.
Sec. 7215. Repeal of red meat safety research center.
Sec. 7216. Assistive technology program for farmers with disabilities.
Sec. 7217. National rural information center clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7301. Relevance and merit of agricultural research, extension, and
education funded by the Department.
Sec. 7302. Integrated research, education, and extension competitive
grants program.
Sec. 7303. Support for research regarding diseases of wheat, triticale,
and barley caused by Fusarium graminearum or by Tilletia
indica.
Sec. 7304. Repeal of Bovine Johne's disease control program.
Sec. 7305. Grants for youth organizations.
Sec. 7306. Specialty crop research initiative.
Sec. 7307. [H7308] Food animal residue avoidance database program.
Sec. 7308. Repeal of national swine research center.
Sec. 7309. Office of pest management policy.
Sec. 7310. Forestry products advanced utilization research.
Sec. 7311. Repeal of studies of agricultural research, extension, and
education.
Subtitle D--Other Laws
Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Research Facilities Act.
Sec. 7404. Competitive, Special, and Facilities Research Grant Act.
Sec. 7405. Renewable Resources Extension Act of 1978.
Sec. 7406. National Aquaculture Act of 1980.
Sec. 7407. Repeal of use of remote sensing data.
Sec. 7408. Repeal of reports under Farm Security and Rural Investment
Act of 2002.
Sec. 7409. Beginning farmer and rancher development program.
Sec. 7410. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Subtitle E--Food, Conservation, and Energy Act of 2008
Part I--Agricultural Security
Sec. 7501. Agricultural biosecurity communication center.
Sec. 7502. Assistance to build local capacity in agricultural
biosecurity planning, preparation, and response.
Sec. 7503. Research and development of agricultural countermeasures.
Sec. 7504. Agricultural biosecurity grant program.
Part II--Miscellaneous Provisions
Sec. 7511. Enhanced use lease authority pilot program.
Sec. 7512. Grazinglands research laboratory.
Sec. 7513. Budget submission and funding.
Sec. 7514. Repeal of seed distribution.
Sec. 7515. Natural products research program.
Sec. 7516. Sun grant program.
Sec. 7517. Repeal of study and report on food deserts.
Sec. 7518. Repeal of agricultural and rural transportation research and
education.
Subtitle F--Miscellaneous Provisions
Sec. 7601. Foundation for Food and Agriculture Research.
Sec. 7602. Concessions and agreements with nonprofit organizations for
National Arboretum.
Sec. 7603. Agricultural and food law research, legal tools, and
information.
Sec. 7604. Cotton Disease Research Report.
Sec. 7605. Miscellaneous technical corrections.
Sec. 7606. Legitimacy of industrial hemp research.
TITLE VIII--FORESTRY
Subtitle A--Repeal of Certain Forestry Programs
Sec. 8001. Forest land enhancement program.
Sec. 8002. Watershed forestry assistance program.
Sec. 8003. Expired cooperative national forest products marketing
program.
Sec. 8004. Hispanic-serving institution agricultural land national
resources leadership program.
Sec. 8005. Tribal watershed forestry assistance program.
Sec. 8006. Separate Forest Service decisionmaking and appeals process.
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
Sec. 8101. State-wide assessment and strategies for forest resources.
Subtitle C--Reauthorization of Other Forestry-related Laws
Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Healthy forests reserve program.
Sec. 8204. Insect and disease infestation.
Sec. 8205. Stewardship end result contracting projects.
Sec. 8206. Good neighbor authority.
Subtitle D--Miscellaneous Provisions
Sec. 8301. Revision of strategic plan for forest inventory and analysis.
Sec. 8302. Forest service participation in ACES program.
Sec. 8303. Extension of stewardship contracts authority regarding use of
designation by prescription to all thinning sales under
National Forest Management Act of 1976.
Sec. 8304. Reimbursement of fire funds.
Sec. 8305. Forest Service large airtanker and aerial asset firefighting
recapitalization pilot program.
Sec. 8306. Land conveyance, Jefferson National Forest in Wise County,
Virginia.
TITLE IX--ENERGY
Sec. 9001. Definitions.
Sec. 9002. Biobased markets program.
Sec. 9003. Biorefinery assistance.
Sec. 9004. Repowering assistance program.
Sec. 9005. Bioenergy program for advanced biofuels.
Sec. 9006. Biodiesel fuel education program.
Sec. 9007. Rural Energy for America Program.
Sec. 9008. Biomass research and development.
Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers.
Sec. 9010. Biomass Crop Assistance Program.
Sec. 9011. Repeal of forest biomass for energy.
Sec. 9012. Community wood energy program.
Sec. 9013. Repeal of biofuels infrastructure study.
Sec. 9014. Repeal of renewable fertilizer study.
Sec. 9015. Energy efficiency report for USDA facilities.
TITLE X--HORTICULTURE
Sec. 10001. Specialty crops market news allocation.
Sec. 10002. Repeal of grant program to improve movement of specialty
crops.
Sec. 10003. Farmers' market and local food promotion program.
Sec. 10004. Organic agriculture.
Sec. 10005. Investigations and enforcement of the Organic Foods
Production Act of 1990.
Sec. 10006. Food safety education initiatives.
Sec. 10007. Consolidation of plant pest and disease management and
disaster prevention programs.
Sec. 10008. Importation of seed.
Sec. 10009. Bulk shipments of apples to Canada.
Sec. 10010. Specialty crop block grants.
Sec. 10011. Department of Agriculture consultation regarding enforcement
of certain labor law provisions.
Sec. 10012. Report on honey.
Sec. 10013. Reports to Congress.
Sec. 10014. Stay of regulations.
Sec. 10015. Regulation of sulfuryl fluoride.
Sec. 10016. Local food production and program evaluation.
Sec. 10017. Clarification of use of funds for technical assistance.
TITLE XI--CROP INSURANCE
Sec. 11001. Information sharing.
Sec. 11002. Publication of information on violations of prohibition on
premium adjustments.
Sec. 11003. Supplemental coverage option.
Sec. 11004. Crop margin coverage option.
Sec. 11005. Premium amounts for catastrophic risk protection.
Sec. 11006. Permanent enterprise unit subsidy.
Sec. 11007. Enterprise units for irrigated and nonirrigated crops.
Sec. 11008. Data collection.
Sec. 11009. Adjustment in actual production history to establish
insurable yields.
Sec. 11010. Submission of policies and Board review and approval.
Sec. 11011. Consultation.
Sec. 11012. Budget limitations on renegotiation of the standard
reinsurance agreement.
Sec. 11013. Test weight for corn.
Sec. 11014. Crop production on native sod.
Sec. 11015. Coverage levels by practice.
Sec. 11016. Beginning farmer and rancher provisions.
Sec. 11017. Stacked income protection plan for producers of upland
cotton.
Sec. 11018. Peanut revenue crop insurance.
Sec. 11019. Authority to correct errors.
Sec. 11020. Implementation.
Sec. 11021. Crop insurance fraud.
Sec. 11022. Research and development priorities.
Sec. 11023. Crop insurance for organic crops.
Sec. 11024. Program compliance partnerships.
Sec. 11025. Pilot programs.
Sec. 11026. Index-based weather insurance pilot program.
Sec. 11027. Enhancing producer self-help through farm financial
benchmarking.
Sec. 11028. Technical amendments.
TITLE XII--MISCELLANEOUS
Subtitle A--Livestock
Sec. 12101. Trichinae certification program.
Sec. 12102. Sheep production and marketing grant program.
Sec. 12103. National Aquatic Animal Health Plan.
Sec. 12104. Country of origin labeling.
Sec. 12105. National animal health laboratory network.
Sec. 12106. Food safety inspection.
Sec. 12107. National Poultry Improvement Plan.
Sec. 12108. Sense of Congress regarding feral swine eradication.
Subtitle B--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 12201. Outreach and assistance for socially disadvantaged farmers
and ranchers and veteran farmers and ranchers.
Sec. 12202. Office of Advocacy and Outreach.
Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research
Center.
Sec. 12204. Receipt for service or denial of service from certain
department of agriculture agencies.
Subtitle C--Other Miscellaneous Provisions
Sec. 12301. Grants to improve supply, stability, safety, and training of
agricultural labor force.
Sec. 12302. Program benefit eligibility status for participants in high
plains water study.
Sec. 12303. Office of Tribal Relations.
Sec. 12304. Military Veterans Agricultural Liaison.
Sec. 12305. Noninsured crop assistance program.
Sec. 12306. Acer access and development program.
Sec. 12307. Science Advisory Board.
Sec. 12308. Amendments to Animal Welfare Act.
Sec. 12309. Produce represented as grown in the United States when it is
not in fact grown in the United States.
Sec. 12310. Report on water sharing.
Sec. 12311. Scientific and economic analysis of the FDA Food Safety
Modernization Act.
Sec. 12312. Payment in lieu of taxes.
Sec. 12313. Silvicultural activities.
Sec. 12314. Pima agriculture cotton trust fund.
Sec. 12315. Agriculture Wool Apparel Manufacturers Trust Fund.
Sec. 12316. Wool research and promotion.
Subtitle D--Oilheat Efficiency, Renewable Fuel Research and Jobs
Training
Sec. 12401. Short title.
Sec. 12402. Findings and purposes.
Sec. 12403. Definitions.
Sec. 12404. Membership.
Sec. 12405. Functions.
Sec. 12406. Assessments.
Sec. 12407. Market survey and consumer protection.
Sec. 12408. Lobbying restrictions.
Sec. 12409. Noncompliance.
Sec. 12410. Sunset.
SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--COMMODITIES
Subtitle A--Repeals and Reforms
PART I--REPEALS
SEC. 1101. REPEAL OF DIRECT PAYMENTS.
Sections 1103 and 1303 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.
SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.
(a) Repeal.--Sections 1104 and 1304 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754) are
repealed.
(b) Continued Application for 2013 Crop Year.--Sections
1104 and 1304 of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8714, 8754), as in effect on the day before the date
of enactment of this Act, shall continue to apply through the
2013 crop year with respect to all covered commodities (as
defined in section 1001 of that Act (7 U.S.C. 8702)) and
peanuts on a farm.
SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM.
(a) Repeal.--Section 1105 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8715) is repealed.
(b) Continued Application for 2013 Crop Year.--Section 1105
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8715), as in effect on the day before the date of enactment of
this Act, shall continue to apply through the 2013 crop year
with respect to all covered commodities (as defined in section
1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm for
which the irrevocable election under section 1105 of that Act
was made before the date of enactment of this Act.
PART II--COMMODITY POLICY
SEC. 1111. DEFINITIONS.
In this subtitle and subtitle B:
(1) Actual crop revenue.--The term ``actual crop
revenue'', with respect to a covered commodity for a
crop year, means the amount determined by the Secretary
under section 1117(b).
(2) Agriculture risk coverage.--The term
``agriculture risk coverage'' means coverage provided
under section 1117.
(3) Agriculture risk coverage guarantee.--The term
``agriculture risk coverage guarantee'', with respect
to a covered commodity for a crop year, means the
amount determined by the Secretary under section
1117(c).
(4) Base acres.--
(A) In general.--The term ``base acres'',
with respect to a covered commodity on a farm,
means the number of acres in effect under
sections 1001 and 1301 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8702, 8751), as adjusted pursuant to sections
1101, 1108, and 1302 of such Act (7 U.S.C.
8711, 8718, 8752), as in effect on September
30, 2013, subject to any reallocation,
adjustment, or reduction under section 1112 of
this Act.
(B) Inclusion of generic base acres.--The
term ``base acres'' includes any generic base
acres planted to a covered commodity as
determined in section 1114(b).
(5) County coverage.--The term ``county coverage''
means agriculture risk coverage selected under section
1115(b)(1) to be obtained at the county level.
(6) Covered commodity.--The term ``covered
commodity'' means wheat, oats, and barley (including
wheat, oats, and barley used for haying and grazing),
corn, grain sorghum, long grain rice, medium grain
rice, pulse crops, soybeans, other oilseeds, and
peanuts.
(7) Effective price.--The term ``effective price'',
with respect to a covered commodity for a crop year,
means the price calculated by the Secretary under
section 1116(b) to determine whether price loss
coverage payments are required to be provided for that
crop year.
(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) Generic base acres.--The term ``generic base
acres'' means the number of base acres for cotton in
effect under section 1001 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8702), as adjusted
pursuant to section 1101 of such Act (7 U.S.C. 8711),
as in effect on September 30, 2013, subject to any
adjustment or reduction under section 1112 of this Act.
(10) Individual coverage.--The term ``individual
coverage'' means agriculture risk coverage selected
under section 1115(b)(2) to be obtained at the farm
level.
(11) Medium grain rice.--The term ``medium grain
rice'' includes short grain rice and temperate japonica
rice.
(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) Payment acres.--The term ``payment acres'',
with respect to the provision of price loss coverage
payments and agriculture risk coverage payments, means
the number of acres determined for a farm under section
1114.
(14) Payment yield.--The term ``payment yield'',
for a farm for a covered commodity--
(A) means the yield used to make payments
pursuant to section 1104 or 1304 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8714, 8754), as in effect on September 30,
2013; or
(B) means the yield established under
section 1113 of this Act.
(15) Price loss coverage.--The term ``price loss
coverage'' means coverage provided under section 1116.
(16) 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.
(17) Pulse crop.--The term ``pulse crop'' means dry
peas, lentils, small chickpeas, and large chickpeas.
(18) Reference price.--The term ``reference
price'', with respect to a covered commodity for a crop
year, means the following:
(A) For wheat, $5.50 per bushel.
(B) For corn, $3.70 per bushel.
(C) For grain sorghum, $3.95 per bushel.
(D) For barley, $4.95 per bushel.
(E) For oats, $2.40 per bushel.
(F) For long grain rice, $14.00 per
hundredweight.
(G) For medium grain rice, $14.00 per
hundredweight.
(H) For soybeans, $8.40 per bushel.
(I) For other oilseeds, $20.15 per
hundredweight.
(J) For peanuts, $535.00 per ton.
(K) For dry peas, $11.00 per hundredweight.
(L) For lentils, $19.97 per hundredweight.
(M) For small chickpeas, $19.04 per
hundredweight.
(N) For large chickpeas, $21.54 per
hundredweight.
(19) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(20) 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.
(21) Temperate japonica rice.--The term ``temperate
japonica rice'' means rice that is grown in high
altitudes or temperate regions of high latitudes with
cooler climate conditions, in the Western United
States, as determined by the Secretary, for the purpose
of--
(A) the reallocation of base acres under
section 1112;
(B) the establishment of a reference price
(as required under section 1116(g)) and an
effective price pursuant to section 1116; and
(C) the determination of the actual crop
revenue and agriculture risk coverage guarantee
pursuant to section 1117.
(22) 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)).
(23) United states.--The term ``United States'',
when used in a geographical sense, means all of the
States.
(24) 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. 1112. BASE ACRES.
(a) Retention or 1-time Reallocation of Base Acres.--
(1) Election required.--
(A) Notice of election opportunity.--As
soon as practicable after the date of enactment
of this Act, the Secretary shall provide notice
to the owners of a farm regarding their
opportunity to make an election, in the manner
provided in this subsection--
(i) to retain base acres, including
any generic base acres, as provided in
paragraph (2); or
(ii) in lieu of retaining base
acres, to reallocate base acres, other
than any generic base acres, as
provided in paragraph (3).
(B) Content of notice.--The notice under
subparagraph (A) shall include the following:
(i) Information that the
opportunity of an owner to make the
election is being provided only once.
(ii) Information regarding the
manner in which the owner must make the
election and the manner of notifying
the Secretary of the election.
(iii) Information regarding the
deadline before which the owner must
notify the Secretary of the election to
be in effect beginning with the 2014
crop year.
(C) Effect of failure to make election.--If
the owner of a farm fails to make the election
under this subsection, or fails to timely
notify the Secretary of the election as
required by subparagraph (B)(iii), the owner
shall be deemed to have elected to retain base
acres, including generic base acres, as
provided in paragraph (2).
(2) Retention of base acres.--
(A) Election to retain.--For the purpose of
applying this part to a covered commodity, the
Secretary shall give an owner of a farm an
opportunity to elect to retain all of the base
acres for each covered commodity on the farm.
(B) Treatment of generic base acres.--
Generic base acres are automatically retained.
(3) Reallocation of base acres.--
(A) Election to reallocate.--For the
purpose of applying this part to covered
commodities, the Secretary shall give an owner
of a farm an opportunity to elect to reallocate
all of the base acres for covered commodities
on the farm, as in effect on September 30,
2013, among those covered commodities planted
on the farm at any time during the 2009 through
2012 crop years.
(B) Reallocation formula.--The reallocation
of base acres among covered commodities on a
farm shall be in proportion to the ratio of--
(i) the 4-year average of--
(I) the acreage planted on
the farm to each covered
commodity for harvest, grazing,
haying, silage, or other
similar purposes for the 2009
through 2012 crop years; and
(II) any acreage on the
farm that the producers were
prevented from planting during
the 2009 through 2012 crop
years to that covered commodity
because of drought, flood, or
other natural disaster, or
other condition beyond the
control of the producers, as
determined by the Secretary; to
(ii) the 4-year average of--
(I) the acreage planted on
the farm to all covered
commodities for harvest,
grazing, haying, silage, or
other similar purposes for such
crop years; and
(II) any acreage on the
farm that the producers were
prevented from planting during
such crop years to covered
commodities because of drought,
flood, or other natural
disaster, or other condition
beyond the control of the
producers, as determined by the
Secretary.
(C) Treatment of generic base acres.--
Generic base acres are retained and may not be
reallocated under this paragraph.
(D) Inclusion of all 4 years in average.--
For the purpose of determining a 4-year acreage
average under subparagraph (B) for a farm, the
Secretary shall not exclude any crop year in
which a covered commodity was not planted.
(E) Treatment of multiple planting or
prevented planting.--For the purpose of
determining under subparagraph (B) the acreage
on a farm that producers planted or were
prevented from planting during the 2009 through
2012 crop years to covered commodities, if the
acreage that was planted or prevented from
being planted was devoted to another covered
commodity in the same crop year (other than a
covered commodity produced under an established
practice of double cropping), the owner may
elect the commodity to be used for that crop
year in determining the 4-year average, but may
not include both the initial commodity and the
subsequent commodity.
(F) Limitation.--The reallocation of base
acres among covered commodities on a farm under
this paragraph may not result in a total number
of base acres (including generic base acres)
for the farm in excess of the number of base
acres in effect for the farm on September 30,
2013.
(4) Application of election to all covered
commodities.--The election made under this subsection,
or deemed to be made under paragraph (1)(C), with
respect to a farm shall apply to all of the covered
commodities on the farm.
(b) Adjustment of Base Acres.--
(1) In general.--Notwithstanding the election made
under subsection (a), the Secretary shall provide for
an adjustment, as appropriate, in the base acres for
covered commodities for a farm and any generic base
acres for the farm whenever any of the following
circumstances occur:
(A) A conservation reserve contract entered
into under section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) with respect to
the farm expires or is voluntarily terminated.
(B) Cropland is released from coverage
under a conservation reserve contract by the
Secretary.
(C) 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)).
(2) Special conservation reserve acreage payment
rules.--For the crop year in which a base acres
adjustment under subparagraph (A) or (B) of paragraph
(1) is first made, the owner of the farm shall elect to
receive price loss coverage or agriculture risk
coverage with respect to the acreage added to the farm
under this subsection or a prorated payment under the
conservation reserve contract, but not both.
(c) Prevention of Excess Base Acres.--
(1) Required reduction.--Notwithstanding the
election made under subsection (a), if the sum of the
base acres for a farm, including generic base acres,
and the acreage described in paragraph (2) exceeds the
actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered
commodities or generic base acres for the farm so that
the sum of the base acres, including generic base
acres, and the acreage described in paragraph (2) does
not exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1),
the Secretary shall include the following:
(A) Any acreage on the farm enrolled in the
conservation reserve program or wetlands
reserve program (or successor programs) under
chapter 1 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3830 et
seq.).
(B) Any other acreage on the farm enrolled
in a Federal conservation program for which
payments are made in exchange for not producing
an agricultural commodity on the acreage.
(C) If the Secretary designates additional
oilseeds, any eligible oilseed acreage, which
shall be determined in the same manner as
eligible oilseed acreage under subsection
(b)(1)(C).
(3) Selection of acres.--The Secretary shall give
the owner of the farm the opportunity to select the
base acres for a covered commodity or generic base
acres for the farm against which the reduction required
by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In
applying paragraph (1), the Secretary shall make an
exception in the case of double cropping, as determined
by the Secretary.
(d) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may
reduce, at any time, the base acres for any
covered commodity or generic base acres for the
farm.
(B) Effect of reduction.--A reduction under
subparagraph (A) shall be permanent and made in
a manner prescribed by the Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall
proportionately reduce base acres, including
any generic base acres, on a farm for land that
has been subdivided and developed for multiple
residential units or other nonfarming uses if
the size of the tracts and the density of the
subdivision is such that the land is unlikely
to return to the previous agricultural use,
unless the producers on the farm demonstrate
that the land--
(i) remains devoted to commercial
agricultural production; or
(ii) is likely to be returned to
the previous agricultural use.
(B) Requirement.--The Secretary shall
establish procedures to identify land described
in subparagraph (A).
SEC. 1113. PAYMENT YIELDS.
(a) Establishment and Purpose.--For the purpose of making
price loss coverage payments under section 1116, the Secretary
shall provide for the establishment of a yield for each farm
for any designated oilseed for which a payment yield was not
established under section 1102 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8712) in accordance with this
section.
(b) Payment Yields for Designated Oilseeds.--
(1) Determination of average yield.--In the case of
designated oilseeds, the Secretary shall determine the
average yield per planted acre for the designated
oilseed on a farm for the 1998 through 2001 crop years,
excluding any crop year in which the acreage planted to
the designated oilseed was zero.
(2) Adjustment for payment yield.--
(A) In general.--The payment yield for a
farm for a designated oilseed shall be equal to
the product of the following:
(i) The average yield for the
designated oilseed determined under
paragraph (1).
(ii) The ratio resulting from
dividing the national average yield for
the designated oilseed for the 1981
through 1985 crops by the national
average yield for the designated
oilseed for the 1998 through 2001
crops.
(B) No national average yield information
available.--To the extent that national average
yield information for a designated oilseed is
not available, the Secretary shall use such
information as the Secretary determines to be
fair and equitable to establish a national
average yield under this section.
(3) Use of county average yield.--If the yield per
planted acre for a crop of a designated oilseed for a
farm for any of the 1998 through 2001 crop years was
less than 75 percent of the county yield for that
designated oilseed, the Secretary shall assign a yield
for that crop year equal to 75 percent of the county
yield for the purpose of determining the average under
paragraph (1).
(c) Effect of Lack of Payment Yield.--
(1) Establishment by secretary.--In the case of a
covered commodity on a farm for which base acres have
been established or that is planted on generic base
acres, if no payment yield is otherwise established for
the covered commodity on the farm, the Secretary shall
establish an appropriate payment yield for the covered
commodity on the farm under paragraph (2).
(2) Use of similarly situated farms.--To establish
an appropriate payment yield for a covered commodity on
a farm as required by paragraph (1), the Secretary
shall take into consideration the farm program payment
yields applicable to that covered commodity for
similarly situated farms. The use of such data in an
appeal, by the Secretary or by the producer, shall not
be subject to any other provision of law.
(d) Single Opportunity To Update Yields Used To Determine
Price Loss Coverage Payments.--
(1) Election to update.--At the sole discretion of
the owner of a farm, the owner of a farm shall have a
1-time opportunity to update, on a covered commodity-
by-covered-commodity basis, the payment yield that
would otherwise be used in calculating any price loss
coverage payment for each covered commodity on the farm
for which the election is made.
(2) Time for election.--The election under
paragraph (1) shall be made at a time and manner to be
in effect beginning with the 2014 crop year as
determined by the Secretary.
(3) Method of updating yields.--If the owner of a
farm elects to update yields under this subsection, the
payment yield for a covered commodity on the farm, for
the purpose of calculating price loss coverage payments
only, shall be equal to 90 percent of the average of
the yield per planted acre for the crop of the covered
commodity on the farm for the 2008 through 2012 crop
years, as determined by the Secretary, excluding any
crop year in which the acreage planted to the crop of
the covered commodity was zero.
(4) Use of county average yield.--If the yield per
planted acre for a crop of the covered commodity for a
farm for any of the 2008 through 2012 crop years was
less than 75 percent of the average of the 2008 through
2012 county yield for that commodity, the Secretary
shall assign a yield for that crop year equal to 75
percent of the average of the 2008 through 2012 county
yield for the purposes of determining the average yield
under paragraph (3).
SEC. 1114. PAYMENT ACRES.
(a) Determination of Payment Acres.--
(1) General rule.--For the purpose of price loss
coverage and agriculture risk coverage when county
coverage has been selected under section 1115(b)(1),
but subject to subsection (e), the payment acres for
each covered commodity on a farm shall be equal to 85
percent of the base acres for the covered commodity on
the farm.
(2) Effect of individual coverage.--In the case of
agriculture risk coverage when individual coverage has
been selected under section 1115(b)(2), but subject to
subsection (e), the payment acres for a farm shall be
equal to 65 percent of the base acres for all of the
covered commodities on the farm.
(b) Treatment of Generic Base Acres.--
(1) In general.--In the case of generic base acres,
price loss coverage payments and agriculture risk
coverage payments are made only with respect to generic
base acres planted to a covered commodity for the crop
year.
(2) Attribution.--With respect to a farm containing
generic base acres, for the purpose of applying
paragraphs (1)(B) and (2)(B) of subsection (a), generic
base acres on the farm are attributed to a covered
commodity in the following manner:
(A) If a single covered commodity is
planted and the total acreage planted exceeds
the generic base acres on the farm, the generic
base acres are attributed to that covered
commodity in an amount equal to the total
number of generic base acres.
(B) If multiple covered commodities are
planted and the total number of acres planted
to all covered commodities on the farm exceeds
the generic base acres on the farm, the generic
base acres are attributed to each of the
covered commodities on the farm on a pro rata
basis to reflect the ratio of--
(i) the acreage planted to a
covered commodity on the farm; to
(ii) the total acreage planted to
all covered commodities on the farm.
(C) If the total number of acres planted to
all covered commodities on the farm does not
exceed the generic base acres on the farm, the
number of acres planted to a covered commodity
is attributed to that covered commodity.
(3) Treated as additional acreage.--When generic
base acres are planted to a covered commodity or
acreage planted to a covered commodity is attributed to
generic base acres, the generic base acres are in
addition to other base acres on the farm.
(c) Exclusion.--The quantity of payment acres determined
under subsection (a) may not include any crop subsequently
planted during the same crop year on the same land for which
the first crop is eligible for price loss coverage payments or
agriculture risk coverage payments, unless the crop was
approved for double cropping in the county, as determined by
the Secretary.
(d) Effect of Minimal Payment Acres.--
(1) Prohibition on payments.--Notwithstanding any
other provision of this title, a producer on a farm may
not receive price loss coverage payments or agriculture
risk coverage payments if the sum of the base acres on
the farm is 10 acres or less, as determined by the
Secretary.
(2) Exceptions.--Paragraph (1) does not apply to a
producer that is--
(A) a socially disadvantaged farmer or
rancher (as defined in section 355(e) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2003(e))); or
(B) a limited resource farmer or rancher,
as defined by the Secretary.
(e) Effect of Planting Fruits and Vegetables.--
(1) Reduction required.--In the manner provided in
this subsection, payment acres on a farm shall be
reduced in any crop year in which fruits, vegetables
(other than mung beans and pulse crops), or wild rice
have been planted on base acres on a farm.
(2) Price loss coverage and county coverage.--In
the case of price loss coverage payments and
agricultural risk coverage payments using county
coverage, the reduction under paragraph (1) shall be
the amount equal to the base acres planted to crops
referred to in such paragraph in excess of 15 percent
of base acres.
(3) Individual coverage.--In the case of
agricultural risk coverage payments using individual
coverage, the reduction under paragraph (1) shall be
the amount equal to the base acres planted to crops
referred to in such paragraph in excess of 35 percent
of base acres.
(4) Reduction exceptions.--No reduction to payment
acres shall be made under this subsection if--
(A) cover crops or crops referred to in
paragraph (1) are grown solely for conservation
purposes and not harvested for use or sale, as
determined by the Secretary; or
(B) in any region in which there is a
history of double-cropping covered commodities
with crops referred to in paragraph (1) and
such crops were so double-cropped on the base
acres, as determined by the Secretary.
SEC. 1115. PRODUCER ELECTION.
(a) Election Required.--For the 2014 through 2018 crop
years, all of the producers on a farm shall make a 1-time,
irrevocable election to obtain--
(1) price loss coverage under section 1116 on a
covered commodity-by-covered-commodity basis; or
(2) agriculture risk coverage under section 1117.
(b) Coverage Options.--In the election under subsection
(a), the producers on a farm that elect under paragraph (2) of
such subsection to obtain agriculture risk coverage under
section 1117 shall unanimously select whether to receive
agriculture risk coverage payments based on--
(1) county coverage applicable on a covered
commodity-by-covered-commodity basis; or
(2) individual coverage applicable to all of the
covered commodities on the farm.
(c) Effect of Failure to Make Unanimous Election.--If all
the producers on a farm fail to make a unanimous election under
subsection (a) for the 2014 crop year--
(1) the Secretary shall not make any payments with
respect to the farm for the 2014 crop year under
section 1116 or 1117; and
(2) the producers on the farm shall be deemed to
have elected price loss coverage under section 1116 for
all covered commodities on the farm for the 2015
through 2018 crop years.
(d) Effect of Selection of County Coverage.--If all the
producers on a farm select county coverage for a covered
commodity under subsection (b)(1), the Secretary may not make
price loss coverage payments under section 1116 to the
producers on the farm with respect to that covered commodity.
(e) Effect of Selection of Individual Coverage.--If all the
producers on a farm select individual coverage under subsection
(b)(2), in addition to the selection and election under this
section applying to each producer on the farm, the Secretary
shall consider, for purposes of making the calculations
required by subsections (b)(2) and (c)(3) of section 1117, the
producer's share of all farms in the same State--
(1) in which the producer has an interest; and
(2) for which individual coverage has been
selected.
(f) Prohibition on Reconstitution.--The Secretary shall
ensure that producers on a farm do not reconstitute the farm to
void or change an election or selection made under this
section.
SEC. 1116. PRICE LOSS COVERAGE.
(a) Price Loss Coverage Payments.--If all of the producers
on a farm make the election under subsection (a) of section
1115 to obtain price loss coverage or, subject to subsection
(c)(1) of such section, are deemed to have made such election
under subsection (c)(2) of such section, the Secretary shall
make price loss coverage payments to producers on the farm on a
covered commodity-by-covered-commodity basis if the Secretary
determines that, for any of the 2014 through 2018 crop years--
(1) the effective price for the covered commodity
for the crop year; is less than
(2) the reference price for the covered commodity
for the crop year.
(b) Effective Price.--The effective price for a covered
commodity for a crop year shall be the higher of--
(1) the national average market price received by
producers during the 12-month marketing year for the
covered commodity, as determined by the Secretary; or
(2) the national average loan rate for a marketing
assistance loan for the covered commodity in effect for
such crop year under subtitle B.
(c) Payment Rate.--The payment rate shall be equal to the
difference between--
(1) the reference price for the covered commodity;
and
(2) the effective price determined under subsection
(b) for the covered commodity.
(d) Payment Amount.--If price loss coverage payments are
required to be provided under this section for any of the 2014
through 2018 crop years for a covered commodity, the amount of
the price loss coverage payment to be paid to the producers on
a farm for the crop year shall be equal to the product obtained
by multiplying--
(1) the payment rate for the covered commodity
under subsection (c);
(2) the payment yield for the covered commodity;
and
(3) the payment acres for the covered commodity.
(e) Time for Payments.--If the Secretary determines under
this section that price loss coverage payments are required to
be provided for the covered commodity, the payments shall be
made beginning October 1, or as soon as practicable thereafter,
after the end of the applicable marketing year for the covered
commodity.
(f) Effective Price for Barley.--In determining the
effective price for barley under subsection (b), the Secretary
shall use the all-barley price.
(g) Reference Price for Temperate Japonica Rice.--The
Secretary shall provide a reference price with respect to
temperate japonica rice in an amount equal to 115 percent of
the amount established in subparagraphs (F) and (G) of section
1111(18) in order to reflect price premiums.
SEC. 1117. AGRICULTURE RISK COVERAGE.
(a) Agriculture Risk Coverage Payments.--If all of the
producers on a farm make the election under section 1115(a) to
obtain agriculture risk coverage, the Secretary shall make
agriculture risk coverage payments to producers on the farm if
the Secretary determines that, for any of the 2014 through 2018
crop years--
(1) the actual crop revenue determined under
subsection (b) for the crop year; is less than
(2) the agriculture risk coverage guarantee
determined under subsection (c) for the crop year.
(b) Actual Crop Revenue.--
(1) County coverage.--In the case of county
coverage, the amount of the actual crop revenue for a
county for a crop year of a covered commodity shall be
equal to the product obtained by multiplying--
(A) the actual average county yield per
planted acre for the covered commodity, as
determined by the Secretary; and
(B) the higher of--
(i) the national average market
price received by producers during the
12-month marketing year for the covered
commodity, as determined by the
Secretary; or
(ii) the national average loan rate
for a marketing assistance loan for the
covered commodity in effect for such
crop year under subtitle B.
(2) Individual coverage.--In the case of individual
coverage, the amount of the actual crop revenue for a
producer on a farm for a crop year shall be based on
the producer's share of all covered commodities planted
on all farms for which individual coverage has been
selected and in which the producer has an interest, to
be determined by the Secretary as follows:
(A) For each covered commodity, the product
obtained by multiplying--
(i) the total production of the
covered commodity on such farms, as
determined by the Secretary; and
(ii) the higher of--
(I) the national average
market price received by
producers during the 12-month
marketing year, as determined
by the Secretary; or
(II) the national average
loan rate for a marketing
assistance loan for the covered
commodity in effect for such
crop year under subtitle B.
(B) The sum of the amounts determined under
subparagraph (A) for all covered commodities on
such farms.
(C) The quotient obtained by dividing the
amount determined under subparagraph (B) by the
total planted acres of all covered commodities
on such farms.
(c) Agriculture Risk Coverage Guarantee.--
(1) In general.--The agriculture risk coverage
guarantee for a crop year for a covered commodity shall
equal 86 percent of the benchmark revenue.
(2) Benchmark revenue for county coverage.--In the
case of county coverage, the benchmark revenue shall be
the product obtained by multiplying--
(A) subject to paragraph (4), the average
historical 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
(B) subject to paragraph (5), the national
average market price received by producers
during the 12-month marketing year for the most
recent 5 crop years, excluding each of the crop
years with the highest and lowest prices.
(3) Benchmark revenue for individual coverage.--In
the case of individual coverage, the benchmark revenue
for a producer on a farm for a crop year shall be based
on the producer's share of all covered commodities
planted on all farms for which individual coverage has
been selected and in which the producer has an
interest, to be determined by the Secretary as follows:
(A) For each covered commodity for each of
the most recent 5 crop years, the product
obtained by multiplying--
(i) subject to paragraph (4), the
yield per planted acre for the covered
commodity on such farms, as determined
by the Secretary; by
(ii) subject to paragraph (5), the
national average market price received
by producers during the 12-month
marketing year.
(B) For each covered commodity, the average
of the revenues determined under subparagraph
(A) for the most recent 5 crop years, excluding
each of the crop years with the highest and
lowest revenues.
(C) For each of the 2014 through 2018 crop
years, the sum of the amounts determined under
subparagraph (B) for all covered commodities on
such farms, but adjusted to reflect the ratio
between the total number of acres planted on
such farms to a covered commodity and the total
acres of all covered commodities planted on
such farms.
(4) Yield conditions.--If the yield per planted
acre for the covered commodity or historical county
yield per planted acre for the covered commodity for
any of the 5 most recent crop years, as determined by
the Secretary, is less than 70 percent of the
transitional yield, as determined by the Secretary, the
amounts used for any of those years in paragraph (2)(A)
or (3)(A)(i) shall be 70 percent of the transitional
yield.
(5) Reference price.--If the national average
market price received by producers during the 12-month
marketing year for any of the 5 most recent crop years
is lower than the reference price for the covered
commodity, the Secretary shall use the reference price
for any of those years for the amounts in paragraph
(2)(B) or (3)(A)(ii).
(d) Payment Rate.--The payment rate for a covered
commodity, in the case of county coverage, or a farm, in the
case of individual coverage, shall be equal to the lesser of--
(1) the amount that--
(A) the agriculture risk coverage guarantee
for the crop year applicable under subsection
(c); exceeds
(B) the actual crop revenue for the crop
year applicable under subsection (b); or
(2) 10 percent of the benchmark revenue for the
crop year applicable under subsection (c).
(e) Payment Amount.--If agriculture risk coverage payments
are required to be paid for any of the 2014 through 2018 crop
years, the amount of the agriculture risk coverage payment for
the crop year shall be determined by multiplying--
(1) the payment rate determined under subsection
(d); and
(2) the payment acres determined under section
1114.
(f) Time for Payments.--If the Secretary determines that
agriculture risk coverage payments are required to be provided
for the covered commodity, payments shall be made beginning
October 1, or as soon as practicable thereafter, after the end
of the applicable marketing year for the covered commodity.
(g) Additional Duties of the Secretary.--In providing
agriculture risk coverage, the Secretary shall--
(1) to the maximum extent practicable, use all
available information and analysis, including data
mining, to check for anomalies in the determination of
agriculture risk coverage payments;
(2) to the maximum extent practicable, calculate a
separate actual crop revenue and agriculture risk
coverage guarantee for irrigated and nonirrigated
covered commodities;
(3) in the case of individual coverage, assign an
average yield for a farm 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 determines that the farm
has planted acreage in a quantity that is insufficient
to calculate a representative average yield for the
farm; and
(4) in the case of county coverage, assign an
actual or benchmark county yield for each planted acre
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--
(A) the Secretary cannot establish the
actual or benchmark county yield for each
planted acre for a crop year for a covered
commodity in the county in accordance with
subsection (b)(1) or (c)(2); or
(B) the yield determined under subsection
(b)(1) or (c)(2) is an unrepresentative average
yield for the county, as determined by the
Secretary.
SEC. 1118. PRODUCER AGREEMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm
may receive payments under this subtitle with respect
to the farm, 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 effectively control noxious weeds
and otherwise maintain the land in accordance
with sound agricultural practices, as
determined by the Secretary; and
(D) to use the land on the farm, in a
quantity equal to the attributable base acres
for the farm and any base acres for an
agricultural or conserving use, and not for a
nonagricultural commercial, industrial, or
residential use, as determined by the
Secretary.
(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
payments under this subtitle are provided shall
result in the termination of the 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 a payment
under this subtitle 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) 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.
(d) Production Reports.--As an additional condition on
receiving agriculture risk coverage payments for individual
coverage, the Secretary shall require a producer on a farm to
submit to the Secretary annual production reports with respect
to all covered commodities produced on all farms in the same
State--
(1) in which the producer has an interest; and
(2) for which individual coverage has been
selected.
(e) Effect of Inaccurate Reports.--No penalty with respect
to benefits under this subtitle or subtitle B shall be assessed
against a producer on a farm for an inaccurate acreage or
production report unless the Secretary determines that the
producer on the farm knowingly and willfully falsified the
acreage or production report.
(f) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(g) Sharing of Payments.--The Secretary shall provide for
the sharing of payments made under this subtitle among the
producers on a farm on a fair and equitable basis.
SEC. 1119. TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND COTTON.
(a) Availability.--
(1) Purpose.--It is the purpose of this section to
provide transition assistance to producers of upland
cotton in light of the repeal of section 1103 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8713), the inapplicability of sections 1116 and 1117 to
upland cotton, and the delayed implementation of the
Stacked Income Protection Plan required by section 508B
of the Federal Crop Insurance Act (7 U.S.C. 1508b), as
added by section 11017 of this Act.
(2) 2014 crop year.--For the 2014 crop of upland
cotton, the Secretary shall provide transition
assistance, pursuant to the terms and conditions of
this section, to producers on a farm for which cotton
base acres were in existence for the 2013 crop year.
(3) 2015 crop year.--For the 2015 crop of upland
cotton, the Secretary shall provide transition
assistance, pursuant to the terms and conditions of
this section, to producers on a farm--
(A) for which cotton base acres were in
existence for the 2013 crop year; and
(B) that is located in a county in which
the Stacked Income Protection Plan required by
section 508B of the Federal Crop Insurance Act
(7 U.S.C. 1508b) is not available to producers
of upland cotton for the 2015 crop year.
(b) Transition Assistance Rate.--The transition assistance
rate shall be equal to the product obtained by multiplying--
(1) the June 12, 2013, midpoint estimate for the
marketing year average price of upland cotton received
by producers for the marketing year beginning August 1,
2013, minus the December 10, 2013, midpoint estimate
for the marketing year average price of upland cotton
received by producers for the marketing year beginning
August 1, 2013, as contained in the applicable World
Agricultural Supply and Demand Estimates report
published by the Department of Agriculture; and
(2) the national program yield for upland cotton of
597 pounds per acre.
(c) Calculation of Transition Assistance Amount.--The
amount of transition assistance to be provided under this
section to producers on a farm for a crop year shall be equal
to the product obtained by multiplying--
(1) for the 2014 crop year, 60 percent, and for the
2015 crop year, 36.5 percent, of the cotton base acres
referred to in subsection (a) for the farm, subject to
adjustment or reduction for conservation measures as
provided in subsections (b) and (c) of section 1112;
(2) the transition assistance rate in effect for
the crop year under subsection (b); and
(3) the payment yield for upland cotton for the
farm established for purposes of section 1103(c)(3) of
the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8713(c)(3)), divided by the national program
yield for upland cotton of 597 pounds per acre.
(d) Time for Payment.--The Secretary may not make
transition assistance payments for a crop year under this
section before October 1 of the calendar year in which the crop
of upland cotton is harvested.
(e) Payment Limitations.--Sections 1001 through 1001C of
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308C), as
in effect on September 30, 2013, shall apply to the receipt of
transition assistance under this section in the same manner as
such sections applied to section 1103 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8713).
Subtitle B--Marketing Loans
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.
(b) Nonrecourse Loans Available.--
(1) In general.--For each of the 2014 through 2018
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.--As a condition of the receipt of a marketing
assistance loan under subsection (b), the producer shall 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.) and applicable wetland protection requirements under
subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.)
during the term of the loan.
(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 2014 through
2018 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 each of the 2014 through 2018 crop years, 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 $0.45 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.--
(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, 2019, 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 2014 through 2018 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 10 percent.
(h) Repayment Rate for Peanuts.--The Secretary shall permit
producers on a farm to repay a marketing assistance loan for
peanuts under section 1201 at a rate that is the lesser of--
(1) the loan rate established for peanuts under
section 1202(a)(20), 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
each of the 2014 through 2018 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 each of the 2014
through 2018 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
each of the 2014 through 2018 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 payment yield in effect
for the calculation of price loss
coverage under section 1115 with
respect to that loan commodity on the
farm;
(II) in the case of a farm for
which agriculture risk coverage is
elected under section 1116(a), the
payment yield that would otherwise be
in effect with respect to that loan
commodity on the farm in the absence of
such election; or
(III) in the case of a farm for
which no payment yield is otherwise
established for that loan commodity on
the farm, an appropriate yield
established by the Secretary in a
manner consistent with section 1113(c).
(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 payment yield in effect
for the calculation of price loss
coverage under subtitle A with respect
to wheat on the farm;
(II) in the case of a farm for
which agriculture risk coverage is
elected under section 1116(a), the
payment yield that would otherwise be
in effect for wheat on the farm in the
absence of such election; or
(III) in the case of a farm for
which no payment yield is otherwise
established for wheat on the farm, an
appropriate yield established by the
Secretary in a manner consistent with
section 1113(c).
(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.
(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 2014 through 2018 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 beginning on August
1, 2014, 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 are available or, in the
absence of sufficient data, as estimated by the
Secretary.
(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 weeks'
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 are
available or, in the absence of
sufficient data, as estimated by the
Secretary; 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 carry-over 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, in
the absence of sufficient data, 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, 2013, 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, 2019, 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.
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 2014
through 2018 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--
(i) the payment yield in effect for
the calculation of price loss coverage
under section 1115, or the payment
yield deemed to be in effect or
established under subclause (II) or
(III) of section 1206(b)(1)(B)(ii),
with respect to corn or grain sorghum
on a field that is similar to the field
from which the corn or grain sorghum
referred to in subparagraph (A) was
obtained; or
(ii) the actual yield of corn or
grain sorghum on a field, as determined
by the Secretary, that is similar to
the field from which the corn or grain
sorghum referred to in subparagraph (A)
was obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of
the 2014 through 2018 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 subtitle C.
(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) Types of adjustments.--Loan rate adjustments
under paragraph (1) may include--
(A) 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;
(B) 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
(C) 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 adjustments to the administration of
the loan program for upland cotton, by revoking or
revising any adjustment taken under paragraph (2).
(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 POLICY.
(a) Continuation of Current Program and Loan Rates.--
(1) Sugarcane.--Section 156(a) of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272(a)) is amended--
(A) by inserting ``and'' at the end of
paragraph (3);
(B) in paragraph (4), by striking ``the
2011 crop year; and'' and inserting ``each of
the 2011 through 2018 crop years.''; and
(C) by striking paragraph (5).
(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 ``2018''.
(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 ``2018''.
(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 ``2018''.
(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 ``2018''.
Subtitle D--Dairy
PART I--MARGIN PROTECTION PROGRAM FOR DAIRY PRODUCERS
SEC. 1401. DEFINITIONS.
In this part and part III:
(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) 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.
(4) 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.
(5) 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 risk of producing
milk; and
(ii) makes contributions (including
land, labor, management, equipment, or
capital) to the dairy operation of the
individual or entity, which are at
least commensurate with the individual
or entity's share of the proceeds of
the operation.
(B) Additional ownership structures.--The
Secretary shall determine additional ownership
structures to be covered by the definition of
dairy operation.
(6) Margin protection program.--The term ``margin
protection program'' means the margin protection
program required by section 1403.
(7) Margin protection program payment.--The term
``margin protection program payment'' means a payment
made to a participating dairy operation under the
margin protection program pursuant to section 1406.
(8) Participating dairy operation.--The term
``participating dairy operation'' means a dairy
operation that registers under section 1404 to
participate in the margin protection program.
(9) Production history.--The term ``production
history'' means the production history determined for a
participating dairy operation under subsection (a) or
(b) of section 1405 when the participating dairy
operation first registers to participate in the margin
protection program.
(10) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(11) 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 Margin.--
(1) In general.--For use in the margin protection
program, 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) Time for calculation.--The calculation required
by this subsection shall be made as soon as practicable
using the full-month price of the applicable reference
month.
SEC. 1403. ESTABLISHMENT OF MARGIN PROTECTION PROGRAM FOR DAIRY
PRODUCERS.
Not later than September 1, 2014, the Secretary shall
establish and administer a margin protection program for dairy
producers under which participating dairy operations are paid a
margin protection payment when actual dairy production margins
are less than the threshold levels for a margin protection
payment.
SEC. 1404. PARTICIPATION OF DAIRY OPERATIONS IN MARGIN PROTECTION
PROGRAM.
(a) Eligibility.--All dairy operations in the United States
shall be eligible to participate in the margin protection
program to receive margin protection payments.
(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 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 participating in
the margin protection program.
(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 participate in the margin
protection program.
(c) Annual Administrative Fee.--
(1) Administrative fee required.--Each
participating dairy operation shall--
(A) pay an administrative fee to register
to participate in the margin protection
program; and
(B) pay the administrative fee annually
through the duration of the margin protection
program specified in section 1409.
(2) Amount of fee.--The administrative fee for a
participating dairy operation shall be $100.
(3) Use of fees.--The Secretary shall use
administrative fees collected under this subsection to
cover administrative costs incurred to carry out the
margin protection program.
(d) Relation to Livestock Gross Margin for Dairy Program.--
A dairy operation may participate in the 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. 1405. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS.
(a) Production History.--
(1) In general.--Except as provided in subsection
(b), when a dairy operation first registers to
participate in the margin protection program, the
production history of the dairy operation for the
margin protection program is equal to the highest
annual milk marketings of the participating dairy
operation during any one of the 2011, 2012, or 2013
calendar years.
(2) Adjustment.--In subsequent years, the Secretary
shall adjust the production history of a participating
dairy operation determined under paragraph (1) to
reflect any increase in the national average milk
production.
(b) 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
production history of the participating dairy operation:
(1) The volume of the actual milk marketings for
the months the participating dairy operation has been
in operation extrapolated to a yearly amount.
(2) 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.
(c) Required Information.--A participating dairy operation
shall provide all information that the Secretary may require in
order to establish the production history of the participating
dairy operation for purposes of participating in the margin
protection program.
SEC. 1406. MARGIN PROTECTION PAYMENTS.
(a) Coverage Level Threshold and Coverage Percentage.--For
purposes of receiving margin protection payments for a
consecutive 2-month period, a participating dairy operation
shall annually elect--
(1) a coverage level threshold that is equal to
$4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50,
or $8.00; and
(2) a percentage of coverage, in 5-percent
increments, beginning with 25 percent and not exceeding
90 percent of the production history of the
participating dairy operation.
(b) Payment Threshold.--A participating dairy operation
shall receive a 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.
(c) Amount of Margin Protection Payment.--The margin
protection payment for the participating dairy operation shall
be determined as follows:
(1) The Secretary shall calculate the amount by
which the coverage level threshold selected by the
participating dairy operation exceeds the average
actual dairy production margin for the consecutive 2-
month period.
(2) The amount determined under paragraph (1) shall
be multiplied by--
(A) the coverage percentage selected by the
participating dairy operation; and
(B) the production history of the
participating dairy operation divided by 6.
SEC. 1407. PREMIUMS FOR MARGIN PROTECTION PROGRAM.
(a) Calculation of Premiums.--For purposes of participating
in the margin protection program, a participating dairy
operation shall pay an annual premium equal to the product
obtained by multiplying--
(1) the coverage percentage elected by the
participating dairy operation under section 1406(a)(2);
(2) the production history of the participating
dairy operation; and
(3) the premium per hundredweight of milk imposed
by this section for the coverage level selected.
(b) Premium Per Hundredweight for First 4 Million Pounds of
Production.--
(1) In general.--For the first 4,000,000 pounds of
milk marketings included in the production history of a
participating dairy operation, the premium per
hundredweight for each coverage level is specified in
the table contained in paragraph (2).
(2) Producer premiums.--Except as provided in
paragraph (3), the following annual premiums apply:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.00 None
$4.50 $0.010
$5.00 $0.025
$5.50 $0.040
$6.00 $0.055
$6.50 $0.090
$7.00 $0.217
$7.50 $0.300
$8.00 $0.475
------------------------------------------------------------------------
(3) Special rule.--The premium per hundredweight
specified in the table contained in paragraph (2) for
each coverage level (except the $8.00 coverage level)
shall be reduced by 25 percent for each of calendar
years 2014 and 2015.
(c) Premium Per Hundredweight for Production in Excess of 4
Million Pounds.--
(1) In general.--For milk marketings in excess of
4,000,000 pounds included in the production history of
a participating dairy operation, the premium per
hundredweight for each coverage level is specified in
the table contained in paragraph (2).
(2) Producer premiums.--The following annual
premiums apply:
------------------------------------------------------------------------
Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.00 None
$4.50 $0.020
$5.00 $0.040
$5.50 $0.100
$6.00 $0.155
$6.50 $0.290
$7.00 $0.830
$7.50 $1.060
$8.00 $1.360
------------------------------------------------------------------------
(d) Time for Payment of Premium.--The Secretary shall
provide more than 1 method by which a participating dairy
operation may pay the premium required under this section in
any manner that maximizes participating dairy operation payment
flexibility and program integrity.
(e) Premium Obligations.--
(1) Pro-ration of premium for new participants.--In
the case of a participating dairy operation that first
registers to participate in the margin protection
program for a calendar year after the start of the
calendar year, the participating dairy operation 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 in the margin protection program 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 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.
SEC. 1408. EFFECT OF FAILURE TO PAY ADMINISTRATIVE FEES OR PREMIUMS.
(a) Loss of Benefits.--A participating dairy operation that
fails to pay the required annual administrative fee under
section 1404 or is in arrears on premium payments under section
1407--
(1) remains legally obligated to pay the
administrative fee or premiums, as the case may be; and
(2) may not receive margin protection payments
until the fees or premiums are fully paid.
(b) Enforcement.--The Secretary may take such action as
necessary to collect administrative fees and premium payments
for participation in the margin protection program.
SEC. 1409. DURATION.
The margin protection program shall end on December 31,
2018.
SEC. 1410. ADMINISTRATION AND ENFORCEMENT.
(a) In General.--The Secretary shall promulgate regulations
to address administrative and enforcement issues involved in
carrying out the margin protection program.
(b) Reconstitution.--The Secretary shall promulgate
regulations to prohibit a dairy producer from reconstituting a
dairy operation for the purpose of the dairy producer receiving
margin protection payments.
(c) 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 margin protection program.
(d) Inclusion of Additional Order.--Section 143(a)(2) of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7253(a)(2)) is amended by adding at the end the
following new sentence: ``Subsection (b) does not apply to the
authority of the Secretary under this subsection.''.
PART II--REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS
SEC. 1421. 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.
SEC. 1422. TEMPORARY CONTINUATION AND EVENTUAL REPEAL OF MILK INCOME
LOSS CONTRACT PROGRAM.
(a) Temporary Continuation of Payments Under Milk Income
Loss Contract Program.--Section 1506 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8773) is amended--
(1) in subsection (a), by adding at the end the
following new paragraph:
``(6) Termination date.--The term `termination
date' means the earlier of the following:
``(A) The date on which the Secretary
certifies to Congress that the margin
protection program required by section 1403 of
the Agricultural Act of 2014 is operational.
``(B) September 1, 2014.'';
(2) in subsection (c)(3)--
(A) in subparagraph (B), by inserting after
``August 31, 2013,'' the following: ``and for
the period beginning February 1, 2014, and
ending on the termination date,''; and
(B) in subparagraph (C), by striking ``and
thereafter,'' and inserting ``and ending
January 31, 2014,'';
(3) in subsection (d)--
(A) in paragraph (2), by striking ``For any
month beginning on or after September 1,
2013,'' and inserting ``During the period
beginning on September 1, 2013, and ending on
January 31, 2014,'';
(B) by redesignating paragraph (3) as
paragraph (4); and
(C) by inserting after paragraph (2) the
following new paragraph (3):
``(3) Final adjustment authority.--During the
period beginning on February 1, 2014, and ending on the
termination date, if the National Average Dairy Feed
Ration Cost for a month during that period is greater
than $7.35 per hundredweight, the amount specified in
subsection (c)(2)(A) used to determine the payment rate
for that month shall be increased by 45 percent of the
percentage by which the National Average Dairy Feed
Ration Cost exceeds $7.35 per hundredweight.'';
(4) in subsection (e)(2)(A)--
(A) in clause (ii), by inserting after
``August 31, 2013,'' the following: ``and for
the period beginning February 1, 2014, and
ending on the termination date,''; and
(B) in clause (iii), by striking
``effective beginning September 1, 2013,'' and
inserting ``for the period beginning September
1, 2013, and ending January 31, 2014,'';
(5) in subsection (g), by striking ``during the
period beginning on the date that is 90 days after the
date of enactment of this Act and ending on September
30, 2013'' and inserting ``until the termination
date''; and
(6) in subsection (h)(1), by striking ``September
30, 2013'' and inserting ``the termination date''.
(b) Repeal of Milk Income Loss Contract Program.--
(1) Repeal.--Effective on the termination date,
section 1506 of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8773) is repealed.
(2) Termination date defined.--In paragraph (1),
the term ``termination date'' means the earlier of the
following:
(A) The date on which the Secretary
certifies to Congress that the margin
protection program required by section 1403 is
operational.
(B) September 1, 2014.
SEC. 1423. 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. 1424. 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 ``2018''; and
(2) in paragraph (2), by striking ``2015'' and
inserting ``2021''.
SEC. 1425. EXTENSION OF DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended
by striking ``2012'' and inserting ``2018''.
SEC. 1426. 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 ``2018''.
SEC. 1427. REPEAL OF FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
Section 1509 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 1726) is repealed.
PART III--DAIRY PRODUCT DONATION PROGRAM
SEC. 1431. DAIRY PRODUCT DONATION PROGRAM.
(a) Program Required; Purpose.--Not later than 120 days
after the date on which the Secretary certifies to Congress
that the margin protection program is operational, the
Secretary shall establish and administer a dairy product
donation program for the purposes of--
(1) addressing low operating margins experienced by
participating dairy operations; and
(2) providing nutrition assistance to individuals
in low-income groups.
(b) Program Trigger.--The Secretary shall announce that the
dairy product donation program is in effect for a month, and
undertake activities under subsection (c) during the month,
whenever the actual dairy production margin has been $4.00 or
less per hundredweight of milk for each of the immediately
preceding 2 months.
(c) Required Program Activities.--
(1) In general.--Whenever the dairy product
donation program is in effect under subsection (b), the
Secretary shall immediately purchase dairy products, at
prevailing market prices, until such time as one of the
termination conditions specified in subsection (d)(1)
is met.
(2) Consultation.--To determine the types and
quantities of dairy products to purchase under the
dairy product donation program, the Secretary shall
consult with public and private nonprofit organizations
organized to feed low-income populations
(d) Termination of Program Activities.--
(1) Termination thresholds.--The Secretary shall
cease activities under the dairy product donation
program, and shall not reinitiate activities under the
program until the condition specified in subsection (b)
is again met, whenever any one of the following occurs:
(A) The Secretary has made purchases under
the dairy product donation program for three
consecutive months, even if the actual dairy
production margin remains $4.00 or less per
hundredweight of milk.
(B) The actual dairy production margin has
been greater than $4.00 per hundredweight of
milk for the immediately preceding month.
(C) The actual dairy production margin has
been $4.00 or less, but more than $3.00, per
hundredweight of milk for the immediately
preceding month and during the same month--
(i) the price in the United States
for cheddar cheese was more than 5
percent above the world price; or
(ii) the price in the United States
for non-fat dry milk was more than 5
percent above the world price of skim
milk powder.
(D) The actual dairy production margin has
been $3.00 or less per hundredweight of milk
for the immediately preceding month and during
the same month--
(i) the price in the United States
for cheddar cheese was more than 7
percent above the world price; or
(ii) the price in the United States
for non-fat dry milk was more than 7
percent above the world price of skim
milk powder.
(2) Determinations.--For purposes of this
subsection, the Secretary shall determine the price in
the United States for cheddar cheese and non-fat dry
milk and the world price of cheddar cheese and skim
milk powder.
(e) Distribution of Purchased Dairy Products.--
(1) In general.--The Secretary of Agriculture shall
distribute, but not store, the dairy products purchased
under the dairy product donation program in a manner
that encourages the domestic consumption of such dairy
products by diverting them to persons in low-income
groups, as determined by the Secretary.
(2) Use of public or private nonprofit
organizations.--The Secretary shall utilize the
services of public and private nonprofit organizations
for the distribution of dairy products purchased under
the dairy product donation program. A public or private
nonprofit organization that receives dairy products may
transfer the products to another public or private
nonprofit organization that agrees to use the dairy
products to provide, without cost or waste, nutrition
assistance to individuals in low-income groups.
(f) Prohibition on Resale of Products.--A public or private
nonprofit organization that receives dairy products under
subsection (e) may not sell the products back into commercial
markets.
(g) Use of Commodity Credit Corporation Funds.--As
specified in section 1601(a), the funds, facilities, and
authorities of the Commodity Credit Corporation shall be
available to the Secretary for the purposes of implementing and
administering the dairy product donation program.
(h) Duration.--In addition to the termination conditions
specified in subsection (d)(1), the dairy product donation
program shall end on December 31, 2018.
Subtitle E--Supplemental Agricultural Disaster Assistance Programs
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(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-raised fish.--The term ``farm-raised
fish'' means any aquatic species that is propagated and
reared in a controlled environment.
(3) 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.
(4) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(b) Livestock Indemnity Payments.--
(1) Payments.--For fiscal year 2012 and each
succeeding fiscal year, 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 and avian
predators; 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 75 percent of the market value of
the applicable livestock on the day before the date of
death of the livestock, as determined by the Secretary.
(3) Special rule for payments made due to
disease.--The Secretary shall ensure that 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) 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 a qualifying drought
or fire condition, as determined by the
Secretary, the eligible livestock
producer--
(I) owned;
(II) leased;
(III) purchased;
(IV) entered into a
contract to purchase;
(V) is a contract grower;
or
(VI) sold or otherwise
disposed of due to qualifying
drought conditions during--
(aa) the current
production year; or
(bb) subject to
paragraph (3)(B)(ii), 1
or both of the 2
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
qualifying drought or fire condition,
as a part of the normal business
operation of the eligible livestock
producer, as determined by the
Secretary.
(B) Drought monitor.--The term ``drought
monitor'' means a system for classifying
drought severity according to a range of
abnormally dry to exceptional drought, as
defined by the Secretary.
(C) Eligible livestock producer.--
(i) In general.--The term
``eligible livestock producer'' means
an eligible 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
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
drought;
(III) certifies grazing
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.
(D) Normal carrying capacity.--The term
``normal carrying capacity'', with respect to
each type of grazing land or pastureland in a
county, means the normal carrying capacity, as
determined under paragraph (3)(D)(i), that
would be expected from the grazing land or
pastureland for livestock during the normal
grazing period, in the absence of a drought or
fire that diminishes the production of the
grazing land or pastureland.
(E) 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 (3)(D)(i).
(2) Program.--For fiscal year 2012 and each
succeeding fiscal year, the Secretary shall use such
sums as are necessary of the funds of the Commodity
Credit Corporation to provide compensation for losses
to eligible livestock producers due to grazing losses
for covered livestock due to--
(A) a drought condition, as described in
paragraph (3); or
(B) fire, as described in paragraph (4).
(3) Assistance for losses due to drought
conditions.--
(A) Eligible losses.--
(i) In general.--An eligible
livestock producer may receive
assistance under this subsection only
for grazing losses for covered
livestock that occur 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 subsection for
grazing 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.).
(B) Monthly payment rate.--
(i) In general.--Except as provided
in clause (ii), the payment rate for
assistance under this paragraph for 1
month shall, in the case of drought, be
equal to 60 percent of the lesser of--
(I) the monthly feed cost
for all covered livestock owned
or leased by the eligible
livestock producer, as
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
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).
(4) Assistance for losses due to fire on public
managed land.--
(A) In general.--An eligible livestock
producer may receive assistance under this
paragraph only if--
(i) the grazing losses occur on
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 the
Federal lease of the eligible livestock
producer, as determined under paragraph (3)(C).
(C) Payment duration.--
(i) In general.--Subject to clause
(ii), an eligible livestock producer
shall be eligible to receive assistance
under this paragraph for the period--
(I) beginning on the date
on which the Federal agency
excludes the eligible livestock
producer from using the managed
rangeland for grazing; and
(II) ending on the last day
of the Federal lease of the
eligible livestock producer.
(ii) Limitation.--An eligible
livestock producer may only receive
assistance under this paragraph for
losses that occur on not more than 180
days per year.
(5) No duplicative payments.--An eligible livestock
producer may elect to receive assistance for grazing or
pasture feed losses due to drought conditions under
paragraph (3) or fire under paragraph (4), but not both
for the same loss, as determined by the Secretary.
(d) Emergency Assistance for Livestock, Honey Bees, and
Farm-Raised Fish.--
(1) In general.--For fiscal year 2012 and each
succeeding fiscal year, the Secretary shall use not
more than $20,000,000 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 (including cattle tick fever), adverse weather,
or other conditions, such as blizzards and wildfires,
as determined by the Secretary, that are not covered
under subsection (b) or (c).
(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by
feed or water shortages, disease, or other factors as
determined by the Secretary.
(3) Availability of funds.--Any funds made
available under this subsection shall remain available
until expended.
(e) Tree Assistance Program.--
(1) Definitions.--In this subsection:
(A) Eligible orchardist.--The term
``eligible orchardist'' means a person that
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
fiscal year 2012 and each succeeding fiscal
year, 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 $125,000 for any crop year, or an
equivalent value in tree seedlings.
(C) Acres.--The total quantity of acres
planted to trees or tree seedlings for which a
person or legal entity shall be entitled to
receive payments under this subsection may not
exceed 500 acres.
(f) Payment Limitations.--
(1) Definitions of legal entity and person.--In
this subsection, the terms ``legal entity'' and
``person'' have the meaning given those terms in
section 1001(a) of the Food Security Act of 1985 (7
U.S.C. 1308(a)).
(2) Amount.--The total amount of disaster
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
$125,000 for any crop year.
(3) Direct attribution.--Subsections (e) and (f) of
section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) or any successor provisions relating to direct
attribution shall apply with respect to assistance
provided under this section.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--The Secretary
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 11003 and 11017 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 such allowable levels
for any applicable reporting period, the Secretary
shall, to the maximum extent practicable, make
adjustments in the amount of such expenditures during
that period to ensure that such 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.
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 2014 through 2018 crops of covered
commodities (as defined in section 1111), 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, 2018:
(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
2014 through 2018 crops of covered commodities (as defined in
section 1111), 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, 2018:
(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 2014 through 2018.
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 Covered Commodities (other
Than Peanuts).--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
sections 1116 and 1117 and as marketing loan gains or loan
deficiency payments under subtitle B of title I of the
Agricultural Act of 2014 (other than for peanuts) may not
exceed $125,000.
``(c) Limitation on Payments for Peanuts.--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 sections 1116 and 1117 and as marketing
loan gains or loan deficiency payments under subtitle B of
title I of the Agricultural Act of 2014 for peanuts may not
exceed $125,000.''.
(b) Conforming Amendments.--
(1) Limitation on applicability.--Section 1001(d)
of the Food Security Act of 1985 (7 U.S.C. 1308(d)) is
amended by striking ``the marketing assistance loan
program or the loan deficiency payment program under
title I of the Food, Conservation, and Energy Act of
2008'' and inserting ``the forfeiture of a commodity
pledged as collateral for a loan made available under
subtitle B of title I of the Agricultural Act of
2014''.
(2) Treatment of federal agencies and state and
local governments.--Section 1001(f) of the Food
Security Act of 1985 (7 U.S.C. 1308(f)) is amended--
(A) in paragraph (5)(A), by striking ``or
title XII'' and inserting ``, title I of the
Agricultural Act of 2014, or title XII''; and
(B) in paragraph (6)(A), by striking ``or
title XII'' and inserting ``, title I of the
Agricultural Act of 2014, or title XII''.
(3) Foreign persons ineligible.--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 Agricultural
Act of 2014,'' after ``2008,''.
(c) Application.--The amendments made by this section shall
apply beginning with the 2014 crop year.
SEC. 1604. RULEMAKING RELATED TO SIGNIFICANT CONTRIBUTION FOR ACTIVE
PERSONAL MANAGEMENT.
(a) Regulations Required.--Within 180 days after the date
of the enactment of this Act, the Secretary shall promulgate,
with an opportunity for notice and comment, regulations--
(1) to define the term ``significant contribution
of active personal management'' for purposes of section
1001A of the Food Security Act of 1985 (7 U.S.C. 1308-
1); and
(2) if the Secretary determines it is appropriate,
to establish limits for varying types of farming
operations on the number of individuals who may be
considered to be actively engaged in farming with
respect to the farming operation when a significant
contribution of active personal management is the basis
used to meet the requirement of being actively engaged
in farming under section 1001A of the Food Security Act
of 1985 (7 U.S.C. 1308-1) by an individual or entity.
(b) Considerations.--In promulgating the regulations
required under subsection (a), the Secretary shall consider--
(1) the size, nature, and management requirements
of each type of farming operation;
(2) the changing nature of active personal
management due to advancements of farming operations;
and
(3) the degree to which the regulations promulgated
pursuant to subsection (a) will adversely impact the
long-term viability of the farming operation.
(c) Family Farms.--The Secretary shall not apply the
regulations promulgated pursuant to subsection (a) to
individuals or entities comprised solely of family members (as
that term is defined in section 1001(a)(2) of the Food Security
Act of 1985 (7 U.S.C. 1308(a)(2))).
(d) Monitoring.--The regulations promulgated pursuant to
subsection (a) shall include a plan for monitoring the status
of compliance reviews for whether a person or entity is in
compliance with the regulations.
(e) Paperwork Reduction.--In order to conserve Federal
resources and prevent unnecessary paperwork burdens, the
Secretary shall ensure that any additional paperwork required
as a result of the regulations promulgated pursuant to
subsection (a) be limited to those persons who are subject to
such regulations.
(f) Relation to Other Requirements.--Nothing in this
section may be construed to authorize the Secretary to alter,
directly or indirectly, existing regulations for other
requirements in section 1001A of the Food Security Act of 1985
(7 U.S.C. 1308-1).
(g) Effective Date.--The requirements of any regulation
promulgated pursuant to this section shall apply beginning with
the 2015 crop year.
SEC. 1605. ADJUSTED GROSS INCOME LIMITATION.
(a) Limitations and Covered Benefits.--Section 1001D(b) of
the Food Security Act of 1985 (7 U.S.C. 1308-3a(b)) is
amended--
(1) in the subsection heading, by striking
``Limitations'' and inserting ``Limitations on
Commodity and Conservation Programs'';
(2) by striking paragraphs (1) and (2) and
inserting the following new paragraphs:
``(1) Limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive any benefit described in paragraph
(2) during a crop, fiscal, or program year, as
appropriate, if the average adjusted gross income of
the person or legal entity exceeds $900,000.
``(2) Covered benefits.--Paragraph (1) applies with
respect to the following:
``(A) A payment or benefit under subtitle A
or E of title I of the Agricultural Act of
2014.
``(B) A marketing loan gain or loan
deficiency payment under subtitle B of title I
of the Agricultural Act of 2014.
``(C) Starting with fiscal year 2015, a
payment or benefit under title II of the
Agricultural Act of 2014, title II of the Farm
Security and Rural Investment Act of 2002,
title II of the Food, Conservation, and Energy
Act of 2008, or title XII of the Food Security
Act of 1985.
``(D) A payment or benefit under section
524(b) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)).
``(E) A payment or benefit under section
196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).''.
(b) Updating Definitions.--Paragraph (1) of section
1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a))
is amended to read as follows:
``(1) Average adjusted gross income.--In this
section, the term `average adjusted gross income', with
respect to a person or legal entity, means the average
of the adjusted gross income or comparable measure of
the person or legal entity over the 3 taxable years
preceding the most immediately preceding complete
taxable year, as determined by the Secretary.''.
(c) Income Determination.--Section 1001D of the Food
Security Act of 1985 (7 U.S.C. 1308-3a) is amended--
(1) by striking subsection (c); and
(2) by redesignating subsections (d), (e), and (f)
as subsections (c), (d), and (e), respectively.
(d) Conforming Amendments.--Section 1001D of the Food
Security Act of 1985 (7 U.S.C. 1308-3a) is amended--
(1) in subsection (a)(2)--
(A) by striking ``subparagraph (A) or (B)
of''; and
(B) by striking ``, the average adjusted
gross farm income, and the average adjusted
gross nonfarm income'';
(2) in subsection (a)(3), by striking ``, average
adjusted gross farm income, and average adjusted gross
nonfarm income'' both places it appears;
(3) in subsection (c) (as redesignated by
subsection (c)(2) of this section)--
(A) in paragraph (1), by striking ``,
average adjusted gross farm income, and average
adjusted gross nonfarm income'' both places it
appears; and
(B) in paragraph (2), by striking
``paragraphs (1)(C) and (2)(B) of subsection
(b)'' and inserting ``subsection (b)(2)''; and
(4) in subsection (d) (as redesignated by
subsection (c)(2) of this section)--
(A) by striking ``paragraphs (1)(C) and
(2)(B) of subsection (b)'' and inserting
``subsection (b)(2)''; and
(B) by striking ``, average adjusted gross
farm income, or average adjusted gross nonfarm
income''.
(e) Effective Period.--Subsection (e) of section 1001D of
the Food Security Act of 1985 (7 U.S.C. 1308-3a), as
redesignated by subsection (c)(2) of this section, is repealed.
(f) Limitation on Applicability.--Section 1001(d) of the
Food Security Act of 1985 (7 U.S.C. 1308) is amended by
inserting before the period at the end the following: ``or
title I of the Agricultural Act of 2014''.
(g) Transition.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a), as in effect on the day before the
date of the enactment of this Act, shall apply with respect to
the 2013 crop, fiscal, or program year, as appropriate, for
each program described in paragraphs (1)(C) and (2)(B) of
subsection (b) of that section (as so in effect on that day).
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 ``each of
fiscal years 2009 through 2012'' and inserting ``fiscal year
2009 and each succeeding fiscal year''.
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 Agricultural Act of 2014''.
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. TECHNICAL CORRECTIONS.
(a) Missing Punctuation.--Section 359f(c)(1)(B) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B))
is amended by adding a period at the end.
(b) Erroneous Cross Reference.--
(1) Amendment.--Section 1603(g) of the Food,
Conservation, and Energy Act of 2008 (Public Law 110-
246; 122 Stat. 1739) is amended in paragraphs (2)
through (6) and the amendments made by those paragraphs
by striking ``1703(a)'' each place it appears and
inserting ``1603(a)''.
(2) Effective date.--This subsection and the
amendments made by this subsection take effect as if
included in the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 1651).
(c) Continued Applicability of Appropriations General
Provision.--Section 767 of division A of Public Law 108-7 (7
U.S.C. 7911 note; 117 Stat. 48) is amended--
(1) by striking ``(a)'';
(2) by striking ``sections 1101 and 1102 of Public
Law 107-171'' and inserting ``subtitle A of title I of
the Agricultural Act of 2014''; and
(3) by striking ``such section 1102'' and inserting
``such subtitle''; and
(4) by striking subsection (b).
SEC. 1610. 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) Conforming Amendment.--Section 296(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is
amended--
(1) in the matter preceding paragraph (1) by
striking ``affect--'' and inserting ``affect:'';
(2) by striking ``the authority'' each place it
appears in paragraphs (1) through (7) and inserting
``The authority'';
(3) by striking the semicolon at the end of each of
paragraphs (1) through (5) and inserting a period;
(4) in paragraph (6)(C), by striking ``; or'' at
the end and inserting a period; and
(5) by adding at the end the following:
``(8) The authority of the Secretary to carry out
amendments made to this title by the Agricultural Act
of 2014.''.
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) Maintenance of Base Acres and Payment Yields.--The
Secretary shall maintain, for each covered commodity and upland
cotton, base acres and payment yields on a farm established
under sections 1001 and 1301 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant
to sections 1101, 1102, 1108, and 1302 of such Act (7 U.S.C.
8711, 8712, 8718, 8752), as in effect on September 30, 2013.
(b) Streamlining.--In implementing this title, the
Secretary shall--
(1) reduce administrative burdens and costs to
producers by streamlining and reducing paperwork,
forms, and other administrative requirements, including
through the implementation of the Acreage Crop
Reporting and Streamlining Initiative that, in part,
shall ensure that--
(A) a producer (or an agent of a producer)
may report information, electronically
(including geospatial data) or conventionally,
to the Department; and
(B) upon the request of the producer (or
agent thereof) the Department of Agriculture
electronically shares with the producer (or
agent) in real time and without cost to the
producer (or agent) the common land unit data,
related farm level data, and other information
of the producer;
(2) improve coordination, information sharing, and
administrative work with the Farm Service Agency, 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.
(c) Implementation.--
(1) In general.--The Secretary shall make available
to the Farm Service Agency to carry out this title
$100,000,000.
(2) Additional funds.--
(A) Initial determination.--If, by
September 30, 2014, the Secretary notifies the
Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate that the Farm Service Agency has made
substantial progress toward implementing the
requirements of subsection (b)(1), the
Secretary shall make available to the Farm
Service Agency to carry out this title
$10,000,000 on October 1, 2014. The amount made
available under this subparagraph is in
addition to the amount made available under
paragraph (1).
(B) Subsequent determination.--If, by
September 30, 2015, the Secretary notifies the
Committee on Agriculture of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate that the requirements of subsection
(b)(1) have been fully implemented and those
Committees provide written concurrence to the
Secretary, the Secretary shall make available
to the Farm Service Agency to carry out this
title $10,000,000 on the date the written
concurrence is provided or October 1, 2015,
whichever is later. The amount made available
under this subparagraph is in addition to the
amount made available under paragraph (1) and
any amount made available under subparagraph
(A).
(3) Producer education.--
(A) In general.--Of the funds made
available under paragraph (1), the Secretary
shall provide $3,000,000 to State extension
services for the purpose of educating farmers
and ranchers on the options made available
under subtitles A, D, and E of this title and
under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7333).
(B) Web-based decision aids.--
(i) Use of qualified
universities.--Of the funds made
available under paragraph (1), the
Secretary shall use $3,000,000 to
support qualified universities (or
university-based organizations) that
represent a diversity of regions and
commodities (including dairy), possess
expertise regarding the programs
authorized by this Act, have a history
in the development of decision aids and
producer outreach initiatives regarding
farm risk management programs, and are
able to meet the deadline established
pursuant to clause (ii) to develop web-
based decision aids to assist producers
in understanding available options
described in subparagraph (A) and to
train producers to use these decision
aids.
(ii) Deadlines.--To the maximum
extent practicable, the Secretary
shall--
(I) obligate the funds made
available under clause (i)
within 30 days after the date
of the enactment of this Act;
and
(II) require the products
described in clause (i) to be
made available to producers on
the internet within a
reasonable period of time, as
determined by the Secretary,
after the implementation of the
first rule implementing
programs required under
subtitle A of this title.
(d) Loan Implementation.--
(1) In general.--In any crop year in which an order
is issued pursuant 2 U.S.C. 901(a), the Secretary shall
use such sums as necessary of the funds of the
Commodity Credit Corporation for such crop year to
fully restore the support, loan, or assistance that is
otherwise required under subtitles B or C of this title
or under the amendments made by subtitles B or C,
except with respect to the assistance provided under
sections 1207(c) and 1208.
(2) Repayment.--In carrying out this subsection,
the Secretary shall ensure that when a producer repays
a loan at a rate equal to the loan rate plus interest
in accordance with the repayment provisions of
subtitles B or C that the repayment amount shall
include the portion of the loan amount provided under
paragraph (1), except that this paragraph shall not
affect or reduce marketing loan gains, loan deficiency
payments, or forfeiture benefits provided for under
subtitles B or C and as supplemented in accordance with
paragraph (1).
SEC. 1615. RESEARCH OPTION.
(a) In General.--Notwithstanding section 4(m) of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714b(m)),
funds of the Commodity Credit Corporation disbursed pursuant to
the memorandum of understanding between the Government of the
United States of America and the Government of the Federative
Republic of Brazil regarding a fund for technical assistance
and capacity building with respect to dispute WT/DS 267 in the
World Trade Organization may, upon resolution of the dispute,
be used for research consistent with the conditions imposed by
subsection (b).
(b) Conditions.--Research authorized by subsection (a) must
be conducted in collaboration with research agencies of the
United States Department of Agriculture or with a college,
university, or research foundation located in the United
States. Such research and collaboration shall be subject to the
agreement of the parties to the resolved dispute described in
subsection (a).
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 ``2018''.
(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
Agricultural Act of 2014'';
(2) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2);
(3) by inserting before paragraph (4) the following
new paragraph:
``(3) grasslands that--
``(A) contain forbs or shrubland (including
improved rangeland and pastureland) for which
grazing is the predominant use;
``(B) are located in an area historically
dominated by grasslands; and
``(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 or riparian buffers devoted to trees,
shrubs, or grasses''; and
(5) by striking paragraph (5) and inserting the
following new paragraph:
``(5) the portion of land in a field not enrolled
in the conservation reserve in a case in which--
``(A) more than 50 percent of the land in
the field is enrolled as a buffer or
filterstrip, or more than 75 percent of the
land in the field is enrolled as a conservation
practice other than as a buffer or filterstrip;
and
``(B) the remainder of the field is--
``(i) infeasible to farm; and
``(ii) enrolled at regular rental
rates.''.
(c) Planting Status of Certain Land.--Section 1231(c) of
the Food Security Act of 1985 (16 U.S.C. 3831(c)) is amended by
striking ``if'' and all that follows through the period at the
end and inserting ``if, during the crop year, the land was
devoted to a conserving use.''.
(d) Enrollment.--Subsection (d) of section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended to read as
follows:
``(d) Enrollment.--
``(1) Maximum acreage enrolled.--The Secretary may
maintain in the conservation reserve at any one time
during--
``(A) fiscal year 2014, no more than
27,500,000 acres;
``(B) fiscal year 2015, no more than
26,000,000 acres;
``(C) fiscal year 2016, no more than
25,000,000 acres;
``(D) fiscal year 2017, no more than
24,000,000 acres; and
``(E) fiscal year 2018, no more than
24,000,000 acres.
``(2) Grasslands.--
``(A) Limitation.--For purposes of applying
the limitations in paragraph (1), no more than
2,000,000 acres of the land described in
subsection (b)(3) may be enrolled in the
program at any one time during the 2014 through
2018 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 on a continuous
enrollment basis with one or more ranking
periods.''.
(e) Duration of Contract.--Section 1231(e) of the Food
Security Act of 1985 (16 U.S.C. 3831(e)) is amended by striking
paragraphs (2) and (3) and inserting the following new
paragraph:
``(2) Special rule for certain land.--In the case
of land devoted to hardwood trees, shelterbelts,
windbreaks, or wildlife corridors under a contract
entered into under this subchapter, the owner or
operator of the land may, within the limitations
prescribed under paragraph (1), 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 ``2018'';
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) Acreage Limitation.--Section 1231B(c)(1)(B) of the Food
Security Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) is amended by
striking ``1,000,000'' and inserting ``750,000''.
(d) Clerical 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: ``farmable wetland program''; and
(2) in subsection (f)(2), by striking ``section
1234(c)(2)(B)'' and inserting ``section
1234(d)(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 subsection (b)
or (c) of section 1233;''.
(b) Conservation Plan Requirements.--Subsection (b) of
section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832)
is amended to read as follows:
``(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 under the
conservation reserve program, 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 lands normally
devoted to the production of an agricultural
commodity on a farm or ranch to a less
intensive use;
``(B) the retirement of any base history
that the owner or operator agrees to retire
permanently; and
``(C) the development and management of
grasslands for multiple natural resource
conservation benefits, including to soil,
water, air, and wildlife.
``(b) Specified Activities Permitted.--The Secretary shall
permit certain activities or commercial uses of land that is
subject to a contract under the conservation reserve program 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 a drought, flooding, or
other emergency, without any reduction in the rental
rate;
``(2) consistent with the conservation of soil,
water quality, and wildlife habitat (including habitat
during primary nesting seasons for birds in the area),
and in exchange for a reduction of not less than 25
percent in the annual rental rate for the acres covered
by the authorized activity, 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--
``(A) shall develop appropriate vegetation
management requirements; and
``(B) shall identify periods during which
the activities may be conducted, such that the
frequency is at least every 5 but not more than
once every 3 years;
``(3) subject to appropriate restrictions during
the nesting season for birds in the local area that are
economically significant, in significant decline, or
conserved in accordance with Federal or State law, as
determined by the Secretary in consultation with the
State technical committee, 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) prescribed grazing for the control of
invasive species, which may be conducted
annually;
``(B) routine grazing, except that in
permitting such 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
``(C) the installation of wind turbines and
associated access, except that in permitting
the installation of wind turbines, the
Secretary shall determine the number and
location of wind 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;
``(4) the intermittent and seasonal use of
vegetative buffer practices incidental to agricultural
production on lands adjacent to the buffer such that
the permitted use does not destroy the permanent
vegetative cover; and
``(5) 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;
``(B) subject to appropriate restrictions
during the nesting season for birds in the
local area that are economically significant,
in significant decline, or conserved in
accordance with Federal or State law, as
determined by the Secretary in consultation
with the State technical committee; and
``(C) described in subparagraph (A) or (B)
of paragraph (3).
``(c) Authorized Activities on Grasslands.--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 nesting season for birds in the local area that are
economically significant, in significant decline, or
conserved in accordance with Federal or State law, as
determined by the Secretary in consultation with the
State technical committee.
``(3) Fire presuppression, fire-related
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 for
economic use that facilitate maintaining protection of
enrolled land after expiration of the contract.
``(2) Conservation plan.--The Secretary shall
require an owner or operator carrying out the
activities described in paragraph (1) to develop and
implement a conservation plan.
``(3) Re-enrollment prohibited.--Land improved
under paragraph (1) may not be re-enrolled in the
conservation reserve program for 5 years after the date
of termination of the contract.
``(4) Payment reduction.--In the case of an
activity carried out under paragraph (1), the Secretary
shall reduce the payment otherwise payable under the
contract by an amount commensurate with the economic
value of the activity.''.
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 to read as follows:
``(A) Applicability.--This paragraph
applies to land devoted to the production of
hardwood trees, windbreaks, shelterbelts, or
wildlife corridors under a contract entered
into under this subchapter after November 28,
1990.''.
(b) Incentives for Thinning.--Section 1234 of the Food
Security Act of 1985 (16 U.S.C. 3834) is amended--
(1) in subsection (b)--
(A) in the heading, by striking ``Federal
Percentage of''; and
(B) in paragraph (3)(B)--
(i) in clause (i), by striking ``or
thinning''; and
(ii) by amending clause (ii) to
read as follows:
``(ii) Duration.--The Secretary
shall make payments as described in
clause (i) for a period of not less
than 2 years, but not more than 4
years, beginning on the date of the
planting of the trees or shrubs.'';
(2) by redesignating subsections (c) through (g) as
subsections (d) through (h), respectively; and
(3) by inserting after subsection (b) the
following:
``(c) Incentive Payments.--
``(1) In general.--The Secretary may make incentive
payments to an owner or operator of eligible land in an
amount sufficient to encourage proper thinning and
other practices to improve the condition of resources,
promote forest management, or enhance wildlife habitat
on the land.
``(2) Limitation.--A payment described in paragraph
(1) may not exceed 150 percent of the total cost of
thinning and other practices conducted by the owner or
operator.''.
(c) Annual Rental Payments.--Section 1234(d) of the Food
Security Act of 1985 (as redesignated by subsection (b)(2)) is
amended--
(1) in paragraph (1), by inserting ``or other
eligible lands'' after ``highly erodible cropland''
both places it appears;
(2) by striking paragraph (2) and inserting the
following new paragraph:
``(2) Methods of determination.--
``(A) In general.--The amounts payable to
owners or operators in the form of rental
payments under contracts entered into under
this subchapter may be determined through--
``(i) the submission of bids for
such contracts by owners and operators
in such manner as the Secretary may
prescribe; or
``(ii) such other means as the
Secretary determines are appropriate.
``(B) Grasslands.--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) in subparagraph (A), by striking
``conduct an annual survey'' and inserting ``,
not less frequently than once every other year,
conduct a survey'';
(B) in subparagraph (B), by striking
``annual''; and
(C) by adding at the end the following:
``(C) Use.--The Secretary may use the
estimates derived from the survey conducted
under subparagraph (A) relating to dryland cash
rental rates as a factor in determining rental
rates under this section in a manner determined
appropriate by the Secretary.''.
(d) Payment Schedule.--Subsection (e) of section 1234 of
the Food Security Act of 1985 (as redesignated by subsection
(b)(2)) is amended to read as follows:
``(e) 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) Advance payment.--Payments under this
subchapter may be made in advance of determination of
performance.''.
(e) Payment Limitation.--Section 1234(g) of the Food
Security Act of 1985 (as redesignated by subsection (b)(2)) 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.
(a) Early Termination by Owner or Operator.--Section
1235(e) of the Food Security Act of 1985 (16 U.S.C. 3835(e)) is
amended--
(1) in paragraph (1)(A)--
(A) by striking ``The Secretary'' and
inserting ``During fiscal year 2015, the
Secretary''; and
(B) by striking ``before January 1,
1995,'';
(2) in paragraph (2), by striking subparagraph (C)
and inserting the following:
``(C) Land devoted to hardwood trees.
``(D) Wildlife habitat, duck nesting
habitat, pollinator habitat, upland bird
habitat buffer, wildlife food plots, State
acres for wildlife enhancement, shallow water
areas for wildlife, and rare and declining
habitat.
``(E) Farmable wetland and restored
wetland.
``(F) Land that contains diversions,
erosion control structures, flood control
structures, contour grass strips, living snow
fences, salinity reducing vegetation, cross
wind trap strips, and sediment retention
structures.
``(G) Land located within a federally
designated wellhead protection area.
``(H) Land that is covered by an easement
under the conservation reserve program.
``(I) Land located within an average width,
according to the applicable Natural Resources
Conservation Service field office technical
guide, of a perennial stream or permanent water
body.
``(J) Land enrolled under the conservation
reserve enhancement program.''; and
(3) in paragraph (3), by striking ``60 days after
the date on which the owner or operator submits the
notice required under paragraph (1)(C)'' and inserting
``upon approval by the Secretary''.
(b) Transition Option for Certain Farmers or Ranchers.--
Section 1235(f) of the Food Security Act of 1985 (16 U.S.C.
3835(f)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph
(A), by striking ``Duties'' and all that
follows through ``a beginning farmer or rancher
or'' 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 or rancher, 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))), or a'';
(B) in subparagraph (A)(i), by inserting
``, including preparing to plant an
agricultural crop'' after ``improvements'';
(C) in subparagraph (D), by striking ``the
farmer or rancher'' and inserting ``the covered
farmer or rancher''; and
(D) 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 pursuant
to section 1234(d)(2)(A)(ii)''.
(c) Final Year Contract.--Section 1235 of the Food Security
Act of 1985 (16 U.S.C. 3835) is amended by adding at the end
the following new subsections:
``(g) Final Year of Contract.--The Secretary shall not
consider an owner or operator to be in violation of a term or
condition of the conservation reserve contract if--
``(1) during the year prior to expiration of the
contract, the land is enrolled in the conservation
stewardship program; and
``(2) the activity required under the conservation
stewardship program pursuant to such enrollment is
consistent with this subchapter.
``(h) Land Enrolled in Agricultural Conservation Easement
Program.--The Secretary may terminate or modify a contract
entered into under this subchapter if eligible land that is
subject to such contract is transferred into the agricultural
conservation easement program under subtitle H.''.
SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER CONSERVING
USES.
Section 1235A of the Food Security Act of 1985 (16 U.S.C.
3835a) is repealed.
SEC. 2008. EFFECT ON EXISTING CONTRACTS.
(a) In General.--Except as provided in paragraph (2), the
amendments made by this subtitle shall not affect the validity
or terms of any contract entered into by the Secretary of
Agriculture under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) before the date of enactment of the Agricultural Act of
2014, or any payments required to be made in connection with
the contract.
(b) Updating of Existing Contracts.--The Secretary shall
permit an owner or operator of land subject to a contract
entered into under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.) before the date of enactment of the Agricultural Act of
2014, to update the contract to reflect the activities and uses
of land under contract permitted under the terms and conditions
of section 1233(b) of that Act (as amended by section 2004), as
determined appropriate by the Secretary.
Subtitle B--Conservation Stewardship Program
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM.
(a) Revision of Current Program.--Subchapter B of chapter 2
of subtitle D of title XII of the Food 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 or tribal land on
which agricultural commodities,
livestock, or forest-related products
are produced; and
``(ii) lands 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) pasture land;
``(v) nonindustrial private forest
land; and
``(vi) other land in agricultural
areas (including cropped woodland,
marshes, and agricultural land used or
capable of being 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 a State;
``(B) represents a significant concern in a
State or region; and
``(C) is likely to be addressed
successfully through the implementation of
conservation 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 2014 through 2018, 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.--
``(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, unless--
``(i) the conservation reserve
contract will expire at the end of the
fiscal year in which the land is to be
enrolled in the program; and
``(ii) conservation reserve program
payments for land enrolled in the
program cease before the first program
payment is made to the applicant under
this subchapter.
``(B) Land enrolled in a wetland reserve
easement through the agricultural conservation
easement program.
``(C) Land enrolled in the conservation
security program.
``(2) Conversion to cropland.--Eligible land used
for crop production after the date of enactment of the
Agricultural Act of 2014, 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 such 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 to the Secretary 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, meets or exceeds 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 across the
entire agricultural operation in a manner that
increases or extends the conservation benefits
in place at the time the contract offer is
accepted by the Secretary.
``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating
contract offers submitted under subsection (a), the
Secretary shall rank applications based on--
``(A) the level of conservation treatment
on all applicable priority resource concerns at
the time of application;
``(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 requiring that
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) the producer shall
forfeit all rights to receive
payments under the contract;
and
``(II) the producer shall
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, the
producer shall 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); 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 eligible land covered by a
contract under the program, the
transferee of the land provides written
notice to the Secretary that all duties
and rights under the contract have been
transferred to, and assumed by, the
transferee for the portion of the land
transferred;
``(ii) the transferee meets the
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
initial contract;
``(2) agrees to adopt and continue to integrate
conservation activities across the entire agricultural
operation, as determined by the Secretary; and
``(3) agrees, by the end of the contract period--
``(A) to meet the stewardship threshold of
at least 2 additional priority resource
concerns on the agricultural operation; or
``(B) to exceed the stewardship threshold
of 2 existing priority resource concerns that
are specified by the Secretary in the initial
contract.
``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 paragraph (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 the date of enactment of the Agricultural Act of
2014, and ending on September 30, 2022, the Secretary shall, to
the maximum extent practicable--
``(1) enroll in the program an additional
10,000,000 acres for each fiscal year; and
``(2) manage the program to achieve a national
average rate of $18 per acre, which shall include the
costs of all financial assistance, technical
assistance, and any other expenses associated with
enrollment or participation in the program.
``(d) Conservation Stewardship Payments.--
``(1) Availability of payments.--The 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
agricultural operation of the producer at the
time the contract offer is accepted by the
Secretary.
``(2) Payment amount.--The amount of the 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 are determined
appropriate 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 payments
under this subsection, 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 payments in each fiscal year; and
``(B) make such 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 or improve
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 beneficial 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 2014 through 2018, 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) 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 the date of enactment of the Agricultural Act of
2014, or any payments required to be made in connection
with the contract.
(2) Conservation stewardship program.--Funds made
available under section 1241(a)(4) of the Food Security
Act of 1985 (16 U.S.C. 3841(a)(4)) (as amended by
section 2601(a) of this title) may be used to
administer and make payments to program participants
that enrolled into contracts during any of fiscal years
2009 through 2013.
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 new subparagraph:
``(B) developing and improving wildlife
habitat; and'';
(2) in paragraph (4), by striking ``; and'' and
inserting a period; and
(3) by striking paragraph (5).
SEC. 2202. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C.
3839aa-1) is amended--
(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 ``2018'';
(2) in subsection (b), by striking paragraph (2)
and inserting the following new paragraph:
``(2) Term.--A contract under the program shall
have a term that does not exceed 10 years.'';
(3) in subsection (d)--
(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; or
``(G) invasive species management.''; and
(B) in paragraph (4)--
(i) in subparagraph (A), in the
matter preceding clause (i), by
inserting ``, 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))),'' before ``or a beginning
farmer or rancher''; and
(ii) by striking subparagraph (B)
and inserting the following new
subparagraph:
``(B) Advance payments.--
``(i) In general.--Not more than 50
percent of the amount determined under
subparagraph (A) may be provided in
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 timeframe, as determined by
the Secretary.'';
(4) by striking subsection (f) and inserting the
following new subsection:
``(f) Allocation of Funding.--
``(1) Livestock.--For each of fiscal years 2014
through 2018, 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
2014 through 2018, 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 new subsection:
``(g) Wildlife Habitat Incentive Program.--
``(1) In general.--The Secretary shall provide
payments under the environmental quality incentives
program for conservation practices that support the
restoration, development, protection, and improvement
of wildlife habitat on eligible land, including--
``(A) upland wildlife habitat;
``(B) wetland wildlife habitat;
``(C) habitat for threatened and endangered
species;
``(D) fish habitat;
``(E) habitat on pivot corners and other
irregular areas of a field; and
``(F) other types of wildlife habitat, as
determined by the Secretary.
``(2) State technical committee.--In determining
the practices eligible for payment under paragraph (1)
and targeted for funding under subsection (f), the
Secretary shall consult with the relevant State
technical committee not less often than once each
year.''.
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 to read as follows:
``SEC. 1240G. LIMITATION ON PAYMENTS.
``A person or legal entity may not receive, directly or
indirectly, cost-share or incentive payments under this chapter
that, in aggregate, exceed $450,000 for all contracts entered
into under this chapter by the person or legal entity during
the period of fiscal years 2014 through 2018, regardless of the
number of contracts entered into under this chapter by the
person or legal entity.''.
SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa-8) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (C), by striking ``;
and'' and inserting a semicolon;
(B) in subparagraph (D), by striking the
period and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(E) facilitate on-farm conservation
research and demonstration activities; and
``(F) facilitate pilot testing of new
technologies or innovative conservation
practices.'';
(2) in subsection (b)(2)--
(A) by striking ``$37,500,000'' and
inserting ``$25,000,000''; and
(B) by striking ``2012'' and inserting
``2018''; and
(3) by adding at the end the following new
subsection:
``(c) Reporting.--Not later than December 31, 2014, and
every two years thereafter, the Secretary shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committee on Agriculture of the House of
Representatives a report on the status of projects funded under
this section, including--
``(1) funding awarded;
``(2) project results; and
``(3) incorporation of project findings, such as
new technology and innovative approaches, into the
conservation efforts implemented by the Secretary.''.
SEC. 2208. EFFECT ON EXISTING CONTRACTS.
The amendments made by this subtitle shall not affect the
validity or terms of any contract entered into by the Secretary
of Agriculture under chapter 4 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) before
the date of enactment of the Agricultural Act of 2014, 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 new
subtitle:
``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, as
such sections were in effect on the day before the date
of enactment of the Agricultural Act of 2014;
``(2) restore, protect, and enhance wetlands on
eligible land;
``(3) protect the agricultural use and future
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 purpose of
protecting natural resources and the
agricultural nature of the land; and
``(B) permits the landowner the right to
continue agricultural production and related
uses subject to an agricultural land easement
plan, as approved by the Secretary.
``(2) Eligible entity.--The term `eligible entity'
means--
``(A) an agency of State or local
government or an Indian tribe (including a
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 of an agricultural
land easement from an eligible entity;
``(ii)(I) that has prime, unique,
or other productive soil;
``(II) that contains historical or
archaeological resources;
``(III) the enrollment of which
would protect grazing uses and related
conservation values by restoring and
conserving land; or
``(IV) 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) located in an area
that has been historically
dominated by grassland, forbs,
or shrubs and could provide
habitat for animal or plant
populations of significant
ecological value;
``(V) pastureland; or
``(VI) 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 reserve
easement, a wetland or related area,
including--
``(i) farmed or converted wetlands,
together with 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--
``(I) a closed basin lake
and adjacent land that is
functionally dependent upon it,
if the State or other entity is
willing to provide 50 percent
share of the cost of an
easement; or
``(II) a pothole and
adjacent land that is
functionally dependent on it;
``(iii) farmed wetlands and
adjoining lands that--
``(I) are enrolled in the
conservation reserve program;
``(II) have the highest
wetland functions and values,
as determined by the Secretary;
and
``(III) are likely to
return to production after they
leave the conservation reserve
program;
``(iv) riparian areas that link
wetlands that are protected by
easements or some other device that
achieves the same purpose as an
easement; or
``(v) other wetlands of an owner
that would not otherwise be eligible,
if the Secretary determines that the
inclusion of such wetlands in a wetland
reserve easement would significantly
add to the functional value of the
easement; or
``(C) in the case of either an agricultural
land easement or a wetland reserve easement,
other land that is incidental to land described
in subparagraph (A) or (B), if the Secretary
determines that it is necessary for the
efficient administration of an easement under
the program.
``(4) Program.--The term `program' means the
agricultural conservation easement program established
by this subtitle.
``(5) Wetland reserve easement.--The term `wetland
reserve easement' means a reserved interest in eligible
land that--
``(A) is defined and delineated in a deed;
and
``(B) stipulates--
``(i) the rights, title, and
interests in land conveyed to the
Secretary; and
``(ii) the rights, title, and
interests in land that are reserved to
the landowner.
``SEC. 1265B. AGRICULTURAL LAND EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall
facilitate and provide funding for--
``(1) the purchase by eligible entities of
agricultural land easements 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 protect the
agricultural use, including grazing, and related
conservation values of eligible land through cost-share
assistance to eligible entities for purchasing
agricultural land easements.
``(2) Scope of assistance available.--
``(A) Federal share.--An agreement
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,
as determined by the Secretary using--
``(i) the Uniform Standards of
Professional Appraisal Practice;
``(ii) an areawide market analysis
or survey; or
``(iii) another industry-approved
method.
``(B) Non-federal share.--
``(i) In general.--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 under clause (i) a charitable
donation or qualified conservation
contribution (as defined by section
170(h) of the Internal Revenue Code of
1986) from the private landowner if the
eligible entity contributes its own
cash resources in an amount that is at
least 50 percent of the amount
contributed by the Secretary.
``(C) Exception.--
``(i) Grasslands.--In the case of
grassland of special environmental
significance, as determined by the
Secretary, the Secretary may provide an
amount not to exceed 75 percent of the
fair market value of the agricultural
land easement.
``(ii) Cash contribution.--For
purposes of subparagraph (B)(ii), the
Secretary may waive any portion of the
eligible entity cash contribution
requirement for projects of special
significance, subject to an increase in
the private landowner donation that is
equal to the amount of the waiver, if
the donation is voluntary and the
property is in active agricultural
production.
``(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
areas devoted to agricultural use.
``(C) Bidding down.--If the Secretary
determines that 2 or more applications for
cost-share assistance are comparable in
achieving the purpose of the program, the
Secretary shall not assign a higher priority to
any of those 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 five years; and
``(ii) for all other eligible
entities, at least three, but not more
than five 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) permit effective enforcement
of the conservation purposes of such
easements;
``(iii) include a right of
enforcement for the Secretary, that may
be used only if the terms of the
easement are not enforced by the holder
of the easement;
``(iv) subject the land in which an
interest is purchased to an
agricultural land easement plan that--
``(I) describes the
activities which promote the
long-term viability of the land
to meet the purposes for which
the easement was acquired;
``(II) requires the
management of grasslands
according to a grasslands
management plan; and
``(III) includes a
conservation plan, where
appropriate, and requires, at
the option of the Secretary,
the conversion of highly
erodible cropland to less
intensive uses; and
``(v) include a limit on the
impervious surfaces to be allowed that
is consistent with the agricultural
activities to be 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 Secretary may terminate
the agreement; 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 the program;
``(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 such 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
three years to ensure that such
entities are meeting the criteria
established under subparagraph (B).
``(ii) Revocation.--If the
Secretary finds that a certified
eligible entity no longer meets the
criteria established under subparagraph
(B), the Secretary may--
``(I) allow the certified
eligible entity a specified
period of time, at a minimum
180 days, in which to take such
actions as may be necessary to
meet the criteria; and
``(II) revoke the
certification of the eligible
entity, if, after the specified
period of time, the certified
eligible entity does not meet
such criteria.
``(c) Method of Enrollment.--The Secretary shall enroll
eligible land under this section through the use of--
``(1) permanent easements; or
``(2) easements for the maximum duration allowed
under applicable State laws.
``(d) Technical Assistance.--The Secretary may provide
technical assistance, if requested, to assist in--
``(1) compliance with the terms and conditions of
easements; and
``(2) implementation of an agricultural land
easement plan.
``SEC. 1265C. WETLAND RESERVE EASEMENTS.
``(a) Availability of Assistance.--The Secretary shall
provide assistance to owners of eligible land to restore,
protect, and enhance wetlands through--
``(1) wetland reserve easements and related wetland
reserve easement plans; and
``(2) technical assistance.
``(b) Easements.--
``(1) Method of enrollment.--The Secretary shall
enroll eligible land under this section through the use
of--
``(A) 30-year easements;
``(B) permanent easements;
``(C) easements for the maximum duration
allowed under applicable State laws; or
``(D) as an option for Indian tribes only,
30-year contracts.
``(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 this section; and
``(ii) farmed wetlands or converted
wetlands where the conversion was not
commenced prior to December 23, 1985.
``(B) Changes in ownership.--No wetland
reserve 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 for
offers from landowners under this section 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 a wetland reserve easement,
including the potential environmental
benefits if the land was removed from
agricultural production;
``(ii) the cost effectiveness of
each wetland reserve easement, 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 wetland reserve easement 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 give
priority to acquiring wetland reserve easements
based on the value of the wetland reserve
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 reserve
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 reserve easement plan developed for the
eligible land under subsection (f);
``(C) create and record an appropriate deed
restriction in accordance with applicable State
law to reflect the easement agreed to;
``(D) provide a written statement of
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 base
history for the land on which the easement has
been obtained.
``(5) Terms and conditions of easement.--
``(A) In general.--A wetland reserve
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
``(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 a
term or condition of a wetland reserve
easement, the wetland reserve 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, with
interest on the payments as determined
appropriate by the Secretary.
``(C) Compatible uses.--Land subject to a
wetland reserve 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 reserve easement plan developed for the
land under subsection (f) and is consistent
with the long-term protection and enhancement
of the wetland resources for which the easement
was established.
``(D) Reservation of grazing rights.--The
Secretary may include in the terms and
conditions of a wetland reserve 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 the long-term
protection and enhancement
goals for which the easement
was established; and
``(III) complies with the
wetland reserve easement plan
developed for the land under
subsection (f); and
``(ii) the agreement provides for a
commensurate reduction in the easement
payment to account for the grazing
value, as determined by the Secretary.
``(6) Compensation.--
``(A) Determination.--
``(i) Permanent easements.--The
Secretary shall pay as compensation for
a permanent wetland reserve easement
acquired under the program an amount
necessary to encourage enrollment in
the program, based on the lowest of--
``(I) the fair market value
of the land, as determined by
the Secretary, using the
Uniform Standards of
Professional Appraisal Practice
or an areawide 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 wetland
reserve easement shall be not less than
50 percent, but not more than 75
percent, of the compensation that would
be paid for a permanent wetland reserve
easement.
``(B) Form of payment.--Compensation for a
wetland reserve easement shall be provided by
the Secretary in the form of a cash payment, in
an amount determined under subparagraph (A).
``(C) Payment schedule.--
``(i) Easements valued at $500,000
or less.--For wetland reserve easements
valued at $500,000 or less, the
Secretary may provide payments in not
more than 10 annual payments.
``(ii) Easements valued at more
than $500,000.--For wetland reserve
easements valued at more than $500,000,
the Secretary may provide 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 owners of eligible land 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 reserve easement plan developed for
the eligible land under subsection (f).
``(2) Payments.--The Secretary shall--
``(A) in the case of a permanent wetland
reserve easement, pay an amount that is not
less than 75 percent, but not more than 100
percent, of the eligible costs, as determined
by the Secretary; and
``(B) in the case of a 30-year contract or
30-year wetland reserve easement, pay an amount
that is not less than 50 percent, but not more
than 75 percent, of the eligible costs, as
determined by the Secretary.
``(d) Technical Assistance.--
``(1) In general.--The Secretary shall assist
owners in complying with the terms and conditions of a
wetland reserve easement.
``(2) Contracts or agreements.--The Secretary may
enter into 1 or more contracts with private entities or
agreements with a State, nongovernmental organization,
or Indian tribe to carry out necessary restoration,
enhancement, or maintenance of a wetland reserve
easement if the Secretary determines that the contract
or agreement will advance the purposes of the program.
``(e) Wetland Reserve 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
reserve enhancement option that the Secretary determines would
advance the purposes of program.
``(f) Administration.--
``(1) Wetland reserve easement plan.--The Secretary
shall develop a wetland reserve easement plan for any
eligible land subject to a wetland reserve easement,
which shall include 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 management, monitoring, and
enforcement responsibilities of the Secretary
under this section to other Federal or State
agencies that have the appropriate authority,
expertise, and resources necessary to carry out
such delegated responsibilities, or to
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 this section 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 under subsection
(c), 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 under this section
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.
``(g) Application.--The relevant provisions of this section
shall also apply to a 30-year contract.
``SEC. 1265D. ADMINISTRATION.
``(a) Ineligible Land.--The Secretary may not use program
funds for the purposes of acquiring an easement on--
``(1) lands owned by an agency of the United
States, other than land held in trust for Indian
tribes;
``(2) lands owned in fee title by a State,
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; or
``(4) lands 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 reserve easement, is
a wetland or related area with the highest wetland
functions and value and is likely to return to
production after the land leaves the conservation
reserve program.
``(c) Subordination, Exchange, Modification, and
Termination.--
``(1) In general.--The Secretary may subordinate,
exchange, modify, or terminate any interest in land, or
portion of such interest, administered by the
Secretary, either directly or on behalf of the
Commodity Credit Corporation under the program if the
Secretary determines that--
``(A) it is in the Federal Government's
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 owner, and eligible entity if applicable, to
address any subordination, exchange, modification, or
termination of the interest, or portion of such
interest, in land.
``(3) Notice.--At least 90 days before taking any
termination action described in paragraph (1), the
Secretary shall provide written notice of such 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 a contract entered into under
section 1231(a) if eligible land that is subject to
such contract is transferred into the program.
``(2) Other.--In accordance with the provisions of
subtitle H of title II of the Agricultural Act of 2014,
land enrolled in the wetlands reserve program,
grassland reserve program, or farmland protection
program on the day before the date of enactment of the
Agricultural Act of 2014 shall be considered enrolled
in the program.
``(e) Compliance With Certain Requirements.--The Secretary
may not provide assistance under this subtitle to an eligible
entity or owner of eligible land unless the eligible entity or
owner agrees, during the crop year for which the assistance is
provided--
``(1) to comply with applicable conservation
requirements under subtitle B; and
``(2) to comply with applicable wetland protection
requirements under subtitle C.''.
(b) Cross Reference; Calculation.--Section 1244 of the Food
Security Act of 1985 (16 U.S.C. 3844) is amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``and'' at the end
of subparagraph (A);
(ii) by striking ``and'' at the end
of subparagraph (B); and
(iii) by striking subparagraph (C);
(B) by redesignating paragraph (2) as
paragraph (3); and
(C) by inserting after paragraph (1) the
following new paragraph:
``(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 wetland
reserve easements under section
1265C''; and
(ii) in subparagraph (B), by
striking ``an easement acquired under
subchapter C of chapter 1 of subtitle
D'' and inserting ``a wetland reserve
easement under section 1265C'';
(B) by striking paragraph (4) and inserting
the following:
``(4) Exclusions.--
``(A) Shelterbelts and windbreaks.--The
limitations established under paragraph (1)
shall not apply to cropland that is subject to
an easement under subchapter B of chapter 1 of
subtitle D that is used for the establishment
of shelterbelts and windbreaks.
``(B) Wet and saturated soils.--For the
purposes of enrolling land in a wetland reserve
easement under section 1265C, the limitations
established under paragraph (1) shall not apply
to cropland designated by the Secretary with
subclass w in the land capability classes IV
through VIII because of severe use limitations
due to soil saturation or inundation.''; and
(C) by adding at the end the following new
paragraph:
``(5) Calculation.--In calculating the percentages
described in paragraph (1), the Secretary shall include
any acreage that was included in calculations of
percentages made under such paragraph, as in effect on
the day before the date of enactment of the
Agricultural Act of 2014, and that remains enrolled
when the calculation is made after that date under
paragraph (1).''.
Subtitle E--Regional Conservation Partnership Program
SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM.
Title XII of the Food Security Act of 1985 is amended by
inserting after subtitle H, as added by section 2301, the
following new subtitle:
``Subtitle I--Regional Conservation Partnership Program
``SEC. 1271. ESTABLISHMENT AND PURPOSES.
``(a) Establishment.--The Secretary shall establish a
regional conservation partnership program to implement eligible
activities on eligible land through--
``(1) partnership agreements with eligible
partners; and
``(2) contracts with producers.
``(b) Purposes.--The purposes of the program are as
follows:
``(1) To use covered programs to accomplish
purposes and functions similar to those of the
following programs, as in effect on the day before the
date of enactment of the Agricultural Act of 2014:
``(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.
``(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 eligible land on a regional or
watershed scale.
``(3) To encourage eligible partners to cooperate
with producers in--
``(A) meeting or avoiding the need for
national, State, and local natural resource
regulatory requirements related to production
on eligible land; 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
multistate basis.
``SEC. 1271A. DEFINITIONS.
``In this subtitle:
``(1) Covered program.--The term `covered program'
means the following:
``(A) The agricultural conservation
easement program.
``(B) The environmental quality incentives
program.
``(C) The conservation stewardship program.
``(D) The healthy forests reserve program
established under section 501 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C.
6571).
``(2) Eligible activity.--The term `eligible
activity' means a conservation activity for any of the
following:
``(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; or
``(ii) irrigation system
improvement and irrigation efficiency
enhancement.
``(C) Drought mitigation.
``(D) Flood prevention.
``(E) Water retention.
``(F) Air quality improvement.
``(G) Habitat conservation, restoration,
and enhancement.
``(H) Erosion control and sediment
reduction.
``(I) Forest restoration.
``(J) Other related activities that the
Secretary determines will help achieve
conservation benefits.
``(3) Eligible land.--
``(A) In general.--The term `eligible land'
means--
``(i) land on which agricultural
commodities, livestock, or forest-
related products are produced; and
``(ii) lands associated with the
lands described in clause (i).
``(B) Inclusions.--The term `eligible land'
includes--
``(i) cropland;
``(ii) grassland;
``(iii) rangeland;
``(iv) pastureland;
``(v) nonindustrial private forest
land; and
``(vi) other land incidental to
agricultural production (including
wetlands and riparian buffers) on which
significant natural resource issues
could be addressed under the program.
``(4) Eligible partner.--The term `eligible
partner' means any of the following:
``(A) An agricultural or silvicultural
producer association or other group of
producers.
``(B) A State or unit of local government.
``(C) An Indian tribe.
``(D) A farmer cooperative.
``(E) A water district, irrigation
district, rural water district or association,
or other organization with specific water
delivery authority to producers on agricultural
land.
``(F) A municipal water or wastewater
treatment entity.
``(G) An institution of higher education.
``(H) An organization or entity 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, or
nonindustrial private forest land
management; or
``(ii) critical watershed-scale
soil erosion, water quality, sediment
reduction, or other natural resource
issues.
``(5) Partnership agreement.--The term `partnership
agreement' means an agreement entered into under
section 1271B between the Secretary and an eligible
partner.
``(6) 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 on eligible land.
``(b) Length.--A partnership agreement shall be for a
period not to exceed 5 years, except that the Secretary may
extend the agreement one time for up to 12 months when an
extension is necessary to meet the objectives of the program.
``(c) Duties of Partners.--
``(1) In general.--Under a partnership 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 land
operations affected;
``(iii) the local, State,
multistate, 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.--An eligible partner shall
provide a significant portion of the overall costs of
the scope of the project that is the subject of the
agreement entered into under subsection (a), as
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 toward 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) each eligible partner 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) Priority to certain applications.--The
Secretary may give a higher priority to applications
that--
``(A) assist producers in meeting or
avoiding the need for a natural resource
regulatory requirement;
``(B) have a high percentage of producers
in the area to be covered by the agreement;
``(C) significantly leverage non-Federal
financial and technical resources and
coordinate with other local, State, or national
efforts;
``(D) deliver high percentages of applied
conservation to address conservation priorities
or regional, State, or national conservation
initiatives;
``(E) provide innovation in conservation
methods and delivery, including outcome-based
performance measures and methods; or
``(F) meet other factors that are important
for achieving the purposes of the program, as
determined by the Secretary.
``SEC. 1271C. ASSISTANCE TO PRODUCERS.
``(a) In General.--The Secretary shall enter into contracts
with producers to provide financial and technical assistance
to--
``(1) producers participating in a project with an
eligible partner; or
``(2) producers that fit within the scope of a
project described in section 1271B or a critical
conservation area designated under section 1271F, but
who are seeking to implement an eligible activity on
eligible land independent of an eligible partner.
``(b) Terms and Conditions.--
``(1) Consistency with program rules.--
``(A) In general.--Except as provided in
subparagraph (B) and paragraph (2), 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
partnership agreement, as described in the
application under section 1271B(d)(3)(C).
``(B) Adjustments.--
``(i) In general.--The Secretary
may adjust the rules of a covered
program, including--
``(I) operational guidance
and requirements for a covered
program at the discretion of
the Secretary so as to provide
a simplified application and
evaluation process; and
``(II) nonstatutory,
regulatory rules or provisions
to better reflect unique local
circumstances and purposes if
the Secretary determines such
adjustments are necessary to
achieve the purposes of the
covered program.
``(ii) Limitation.--The Secretary
shall not adjust the application of
statutory requirements for a covered
program, including requirements
governing appeals, payment limits, and
conservation compliance.
``(iii) Irrigation.--In States
where irrigation has not been used
significantly for agricultural
purposes, as determined by the
Secretary, the Secretary shall not
limit eligibility under section 1271B
or this section on the basis of prior
irrigation history.
``(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 of
receiving 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 of the funds
provided pursuant to subparagraph (A)
for administration or to provide for
administrative costs through contracts
with another entity.
``(C) Limitation.--The Secretary may enter
into not more than 20 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 2014 through 2018 to carry out the
program.
``(b) Duration of Availability.--Funds made available under
subsection (a) shall remain available until expended.
``(c) Additional Funding and Acres.--
``(1) In general.--In addition to the funds made
available under subsection (a), the Secretary shall
reserve 7 percent of the funds and acres made available
for a covered program for each of fiscal years 2014
through 2018 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 committed 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 subsection (a) and reserved for
the program under subsection (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 established under subtitle G;
``(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 critical conservation areas designated under
section 1271F.
``(e) Limitation on Administrative Expenses.--None of the
funds made available or reserved for the program may be used to
pay for the administrative expenses of eligible partners.
``SEC. 1271E. ADMINISTRATION.
``(a) Disclosure.--In addition to the criteria used in
evaluating applications as described in section 1271B(d)(2),
the Secretary shall make publicly available information on
projects selected through the competitive process described in
section 1271B(d)(1).
``(b) Reporting.--Not later than December 31, 2014, and
every two 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 eligible partners and
producers participating in the partnership agreements
selected;
``(2) the number of producers receiving assistance;
``(3) total funding committed to projects,
including from Federal and non-Federal resources; and
``(4) a description of how the funds under section
1271C(b)(2) 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.--In administering funds under section
1271D(d)(3), the Secretary shall select applications for
partnership agreements and producer contracts within critical
conservation areas designated under this section.
``(b) Critical Conservation Area Designations.--
``(1) Priority.--In designating critical
conservation areas under this section, the Secretary
shall give priority to geographical areas based on the
degree to which the geographical area--
``(A) includes multiple States with
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) would benefit from water quality
improvement, including through reducing
erosion, promoting sediment control, and
addressing nutrient management activities
affecting large bodies of water of regional,
national, or international significance;
``(D) would benefit from water quantity
improvement, including improvement relating
to--
``(i) groundwater, surface water,
aquifer, or other water sources; or
``(ii) a need to promote water
retention and flood prevention; or
``(E) contains producers that need
assistance in meeting or avoiding the need for
a natural resource regulatory requirement that
could have a negative impact on the economic
scope of the 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).
``(3) Limitation.--The Secretary may not designate
more than 8 geographical areas as critical conservation
areas under this section.
``(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.
``(3) Additional authority.--For a critical
conservation area described in subsection (b)(1)(D),
the Secretary may use authorities under the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1001 et
seq.), other than section 14 of such Act (16 U.S.C.
1012), to carry out projects for the purposes of this
section.''.
Subtitle F--Other Conservation Programs
SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16
U.S.C. 3839bb(e)) is amended by striking ``2012'' and inserting
``2018''.
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 to read as follows:
``(b) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$20,000,000 for each of fiscal years 2008 through 2018.
``(2) Availability of funds.--In addition to funds
made available under paragraph (1), of the funds of the
Commodity Credit Corporation, the Secretary shall use
$5,000,000, to remain available until expended.''.
SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
(a) Funding.--Section 1240R(f)(1) of the Food Security Act
of 1985 (16 U.S.C. 3839bb-5(f)(1)) is amended--
(1) in the heading, by striking ``Fiscal years 2009
through 2012'' and inserting ``Mandatory funding''; and
(2) by inserting ``and $40,000,000 for the period
of fiscal years 2014 through 2018'' 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 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.
SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
Subsection (c)(2) of section 1252 of the Food Security Act
of 1985 (16 U.S.C. 3851) is amended to read as follows:
``(2) Exclusion.--Funds made available to carry out
the conservation reserve program may not be used to
carry out the ACES program.''.
SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.
(a) Availability of Funds.--Section 14(h)(1) of the
Watershed Protection and Flood Prevention Act (16 U.S.C.
1012(h)(1)) is amended--
(1) in subparagraph (E), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (F), by striking the period and
inserting a semicolon;
(3) in subparagraph (G), by striking the period and
inserting ``; and''; and
(4) by adding at the end the following new
subparagraph:
``(H) $250,000,000 for fiscal year 2014, to
remain available until expended.''.
(b) Authorization of Appropriations.--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
``2018''.
SEC. 2506. EMERGENCY WATERSHED PROTECTION PROGRAM.
Section 403 of the Agricultural Credit Act of 1978 (16
U.S.C. 2203) is amended--
(1) by striking ``Sec. 403. The Secretary'' and
inserting the following:
``SEC. 403. EMERGENCY MEASURES.
``(a) In General.--The Secretary''; and
(2) by adding at the end the following:
``(b) Floodplain Easements.--
``(1) Modification and termination.--The Secretary
may modify or terminate a floodplain easement
administered by the Secretary under this section if--
``(A) the current owner agrees to the
modification or termination; and
``(B) the Secretary determines that the
modification or termination--
``(i) will address a compelling
public need for which there is no
practicable alternative; and
``(ii) is in the public interest.
``(2) Consideration.--
``(A) Termination.--As consideration for
termination of an easement and associated
agreements under paragraph (1), the Secretary
shall enter into compensatory arrangements as
determined to be appropriate by the Secretary.
``(B) Modification.--In the case of a
modification under paragraph (1)--
``(i) as a condition of the
modification, the current owner shall
enter into a compensatory arrangement
(as determined to be appropriate by the
Secretary) to incur the costs of
modification; and
``(ii) the Secretary shall ensure
that--
``(I) the modification will
not adversely affect the
floodplain functions and values
for which the easement was
acquired;
``(II) any adverse impacts
will be mitigated by enrollment
and restoration of other land
that provides greater
floodplain functions and values
at no additional cost to the
Federal Government; and
``(III) the modification
will result in equal or greater
environmental and economic
values to the United States.''.
SEC. 2507. TERMINAL LAKES.
Section 2507 of the Farm 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 reserve
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
Agricultural Act of 2014 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
Agricultural Act of 2014);
``(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
Agricultural Act of 2014, 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.''.
SEC. 2508. SOIL AND WATER RESOURCES CONSERVATION.
(a) Congressional Policy and Declaration of Purpose.--
Section 4 of the Soil and Water Resources Conservation Act of
1977 (16 U.S.C. 2003) is amended--
(1) in subsection (b), by inserting ``and tribal''
after ``State'' each place it appears; and
(2) in subsection (c)(2), by inserting ``,
tribal,'' after ``State''.
(b) Continuing Appraisal of Soil, Water, and Related
Resources.--Section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
(1) in subsection (a)(4), by striking ``and State''
and inserting ``, State, and tribal'';
(2) in subsection (b), by inserting ``, tribal''
after ``State'' each place it appears; and
(3) in subsection (c)--
(A) by striking ``State soil'' and
inserting ``State and tribal soil''; and
(B) by striking ``local'' and inserting
``local, tribal,''.
(c) Soil and Water Conservation Program.--Section 6(a) of
the Soil and Water Resources Conservation Act of 1977 (16
U.S.C. 2005(a)) is amended--
(1) by inserting ``, tribal,'' after ``State'' the
first place it appears;
(2) by inserting ``, tribal'' after ``State'' each
other place it appears; and
(3) by inserting ``, tribal,'' after ``private''.
(d) Utilization of Available Information and Data.--Section
9 of the Soil and Water Resources Conservation Act of 1977 (16
U.S.C. 2008) is amended by inserting ``, tribal'' after
``State''.
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 2014
through 2018, 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 2014 through 2018 to provide payments
under section 1234(c); and
``(B) $33,000,000 for the period of fiscal
years 2014 through 2018 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.
``(2) The agricultural conservation easement
program under subtitle H using to the maximum extent
practicable--
``(A) $400,000,000 for fiscal year 2014;
``(B) $425,000,000 for fiscal year 2015;
``(C) $450,000,000 for fiscal year 2016;
``(D) $500,000,000 for fiscal year 2017;
and
``(E) $250,000,000 for fiscal year 2018.
``(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) $1,350,000,000 for fiscal year 2014;
``(B) $1,600,000,000 for fiscal year 2015;
``(C) $1,650,000,000 for fiscal year 2016;
``(D) $1,650,000,000 for fiscal year 2017;
and
``(E) $1,750,000,000 for fiscal year
2018.''.
(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;
(2) by inserting after subsection (a) the
following:
``(b) Availability of Funds.--Amounts made available by
subsection (a) for fiscal years 2014 through 2018 shall be used
by the Secretary to carry out the programs specified in such
subsection and shall remain available until expended.''; and
(3) in subsection (d) (as redesignated by paragraph
(1)), by striking ``subsection (b)'' and inserting
``subsection (c)''.
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.--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;
``(B) except for technical assistance for
the conservation reserve program under
subchapter B of chapter 1 of subtitle D, shall
be apportioned for the provision of technical
assistance in the amount determined by the
Secretary, at the sole discretion of the
Secretary; and
``(C) 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) Priority.--
``(A) In general.--In the delivery of
technical assistance under the Soil
Conservation and Domestic Allotment Act (16
U.S.C. 590a et seq.), the Secretary shall give
priority to producers who request technical
assistance from the Secretary in order to
comply for the first time with the requirements
of subtitle B and subtitle C of this title as a
result of the amendments made by section 2611
of the Agricultural Act of 2014.
``(B) Report.--Not later than 270 days
after the date of enactment of the Agricultural
Act of 2014, 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 regarding the extent to which
the conservation compliance requirements
contained in the amendments made by section
2611 of the Agricultural Act of 2014 apply to
and impact specialty crop growers, including
national analysis and surveys to determine the
extent of specialty crop acreage that includes
highly erodible land and wetlands.
``(3) Report.--Not later than December 31, 2014,
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.
``(4) Compliance report.--Not later than November 1
of each year, the Secretary shall submit to the
Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that
includes--
``(A) a description of the extent to which
the requests for highly erodible land
conservation and wetland compliance
determinations are being addressed in a timely
manner;
``(B) the total number of requests
completed in the previous fiscal year;
``(C) the incomplete determinations on
record; and
``(D) the number of requests that are still
outstanding more than 1 year since the date on
which the requests were received from the
producer.''.
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, 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 ``2018''; and
(2) by adding at the end the following new
paragraph:
``(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 ``1240I(g)'' and inserting
``1271C(c)(3)''; and
(4) by adding at the end the following:
``(5) Payments made under the conservation
stewardship program.
``(6) Exceptions provided by the Secretary under
section 1265B(b)(2)(C).''.
SEC. 2606. ADMINISTRATIVE REQUIREMENTS APPLICABLE TO ALL 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 new subparagraph:
``(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 (d)(2)(A)(ii) or
(g)(2)'';
(4) in subsection (h)(2), by inserting ``,
including, to the extent practicable, practices that
maximize benefits for honey bees'' after
``pollinators''; and
(5) by adding at the end the following new
subsections:
``(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 Agricultural Act of 2014.
``(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. 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''.
SEC. 2608. 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 new section:
``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
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. 2609. WETLANDS MITIGATION.
Section 1222(k) of the Food Security Act of 1985 (16 U.S.C.
3822(k)) is amended to read as follows:
``(k) Mitigation Banking.--
``(1) Mitigation banking program.--
``(A) In general.--Using authorities
available to the Secretary, the Secretary shall
operate a program or work with third parties to
establish mitigation banks to assist persons in
complying with the provisions of this section
while mitigating any loss of wetland values and
functions.
``(B) Funding.--Of the funds of the
Commodity Credit Corporation, the Secretary
shall use $10,000,000, to remain available
until expended, to carry out this paragraph.
``(2) Applicability.--Subsection (f)(2)(C) shall
not apply to this subsection.
``(3) Policy and criteria.--The Secretary shall
develop the appropriate policy and criteria that will
allow willing persons to access existing mitigation
banks, under this section or any other authority, that
will serve the purposes of this section without
requiring the Secretary to hold an easement, in whole
or in part, in a mitigation bank.''.
SEC. 2610. LESSER PRAIRIE-CHICKEN CONSERVATION REPORT.
(a) In General.--Not later than 90 days 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 containing the results of a
review and analysis of each of the activities (including those
administered by the Secretary) that pertain to the conservation
of the lesser prairie-chicken, including the conservation
reserve program, the environmental quality incentives program,
the Lesser Prairie-Chicken Initiative, the Western Association
of Fish and Wildlife Agencies Candidate Conservation Agreement
with Assurances for Oil and Gas, and the Western Association of
Fish and Wildlife Agencies Lesser Prairie-Chicken Range-Wide
Conservation Plan.
(b) Contents.--The Secretary shall include in the report
required by this section, at a minimum--
(1) with respect to each activity described in
subsection (a) as it relates to the conservation of the
lesser prairie-chicken, findings regarding--
(A) the cost of the activity to the Federal
Government, impacted State governments, and the
private sector;
(B) the conservation effectiveness of the
activity; and
(C) the cost effectiveness of the activity;
and
(2) a ranking of the activities described in
subsection (a) based on their relative cost
effectiveness.
SEC. 2611. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION FOR CROP
INSURANCE.
(a) Highly Erodible Land Program Ineligibility.--
(1) In general.--Section 1211(a)(1) of the Food
Security Act of 1985 (16 U.S.C. 3811(a)(1)) is
amended--
(A) in subparagraph (C), by striking ``or''
at the end;
(B) in subparagraph (D), by adding ``or''
at the end; and
(C) by adding at the end the following:
``(E) any portion of the premium paid by
the Federal Crop Insurance Corporation for a
policy or plan of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.), on
the condition that if a person is determined to
have committed a violation under this
subsection during a crop year, ineligibility
under this subparagraph shall--
``(i) only apply to reinsurance
years subsequent to the date of final
determination of a violation, including
all administrative appeals; and
``(ii) not apply to the existing
reinsurance year or any reinsurance
year prior to the date of final
determination;''.
(2) Exemptions.--Section 1212(a)(2) of the Food
Security Act of 1985 (16 U.S.C. 3812(a)(2)) is
amended--
(A) in the first sentence, by striking
``(2) If,'' and inserting the following:
``(2) Eligibility based on compliance with
conservation plan.--
``(A) In general.--If,'';
(B) in the second sentence, by striking
``In carrying'' and inserting the following:
``(B) Minimization of documentation.--In
carrying''; and
(C) by adding at the end the following:
``(C) Crop insurance.--
``(i) Operations new to
compliance.--Notwithstanding section
1211(a), in the case of a person that
is subject to section 1211 for the
first time solely due to the amendment
made by section 2611(a) of the
Agricultural Act of 2014, any person
who produces an agricultural commodity
on the land that is the basis of the
payments described in section
1211(a)(1)(E) shall have 5 reinsurance
years after the date on which such
payments become subject to section 1211
to develop and comply with an approved
conservation plan so as to maintain
eligibility for such payments.
``(ii) Existing operations with
prior violations.--Notwithstanding
section 1211(a), in the case of a
person that the Secretary determines
would have been in violation of section
1211(a) if the person had continued
participation in the programs requiring
compliance at any time after the date
of enactment of the Agricultural Act of
2014 and is currently in violation of
section 1211(a), the person shall have
2 reinsurance years after the date on
which the payments described in section
1211(a)(1)(E) become subject to section
1211 to develop and comply with an
approved conservation plan, as
determined by the Secretary, so as to
maintain eligibility for such payments.
``(iii) Applicable reinsurance
year.--Ineligibility for the payment
described in section 1211(a)(1)(E) for
a violation under this subparagraph
during a crop year shall--
``(I) only apply to
reinsurance years subsequent to
the date of a final
determination of a violation,
including all administrative
appeals; and
``(II) not apply to the
existing reinsurance year or
any reinsurance year prior to
the date of the final
determination.''.
(3) Crop insurance premium assistance.--Section
1213(d) of the Food Security Act of 1985 (16 U.S.C.
3812a(d)) is amended by adding at the end the
following:
``(4) Crop insurance premium assistance.--For the
purpose of determining the eligibility of a person for
the payment described in section 1211(a)(1)(E), the
Secretary shall apply the procedures described in
section 1221(c)(3)(E) and coordinate the certification
process so as to avoid duplication or unnecessary
paperwork.''.
(b) Wetland Conservation Program Ineligibility.--Section
1221 of the Food Security Act of 1985 (16 U.S.C. 3821) is
amended--
(1) by redesignating subsections (c), (d), and (e)
as subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the
following:
``(c) Ineligibility for Crop Insurance Premium
Assistance.--
``(1) Requirements.--
``(A) In general.--If a person is
determined to have committed a violation under
subsection (a) or (d) during a crop year, the
person shall be ineligible to receive any
payment of any portion of premium paid by the
Federal Crop Insurance Corporation for a plan
or policy of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) pursuant
to this subsection.
``(B) Applicability.--Ineligibility under
this subsection shall--
``(i) only apply to reinsurance
years subsequent to the date of a final
determination of a violation, including
all administrative appeals; and
``(ii) not apply to the existing
reinsurance year or any reinsurance
year prior to the date of the final
determination.
``(2) Conversions.--
``(A) In general.--Notwithstanding
paragraph (1), ineligibility for crop insurance
premium assistance shall apply in accordance
with this paragraph.
``(B) New conversions.--In the case of a
wetland that the Secretary determines was
converted after the date of enactment of the
Agricultural Act of 2014--
``(i) the person shall be
ineligible to receive crop insurance
premium subsidies in subsequent
reinsurance years unless the Secretary
determines that an exemption pursuant
to section 1222 applies; or
``(ii) for any violation that the
Secretary determines impacts less than
5 acres of an entire farm, the person
may pay a contribution in an amount
equal to 150 percent of the cost of
mitigation, as determined by the
Secretary, to the fund described in
section 1241(f) for wetland restoration
in lieu of ineligibility to receive
crop insurance premium assistance.
``(C) Prior conversions.--In the case of a
wetland that the Secretary determines was
converted prior to the date of enactment of the
Agricultural Act of 2014, ineligibility under
this subsection shall not apply.
``(D) Conversions and new policies or plans
of insurance.--In the case of an agricultural
commodity for which an individual policy or
plan of insurance is available for the first
time to the person after the date of enactment
of the Agricultural Act of 2014--
``(i) ineligibility shall apply
only to conversions that take place
after the date on which the policy or
plan of insurance first becomes
available to the person; and
``(ii) the person shall take such
steps as the Secretary determines
appropriate to mitigate any prior
conversion in a timely manner but not
to exceed 2 reinsurance years.
``(3) Limitations.--
``(A) Mitigation required.--Except as
otherwise provided in this paragraph, a person
subject to a final determination, including all
administrative appeals, of a violation
described in subsection (d) shall have 1
reinsurance year to initiate a mitigation plan
to remedy the violation, as determined by the
Secretary, before becoming ineligible under
this subsection in the following reinsurance
year to receive any payment of any portion of
the premium paid by the Federal Crop Insurance
Corporation for a policy or plan of insurance
under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
``(B) Persons covered for the first time.--
Notwithstanding the requirements of paragraph
(1), in the case of a person that is subject to
this subsection for the first time solely due
to the amendment made by section 2611(b) of the
Agricultural Act of 2014, the person shall have
2 reinsurance years after the reinsurance year
in which a final determination is made,
including all administrative appeals, of a
violation described in this subsection to take
such steps as the Secretary determines
appropriate to remedy or mitigate the violation
in accordance with this subsection.
``(C) Good faith.--If the Secretary
determines that a person subject to a final
determination, including all administrative
appeals, of a violation described in this
subsection acted in good faith and without
intent to commit a violation described in this
subsection as described in section 1222(h), the
person shall have 2 reinsurance years to take
such steps as the Secretary determines
appropriate to remedy or mitigate the violation
in accordance with this subsection.
``(D) Tenant relief.--
``(i) In general.--If a tenant is
determined to be ineligible for
payments and other benefits under this
subsection, the Secretary may limit the
ineligibility only to the farm that is
the basis for the ineligibility
determination if the tenant has
established, to the satisfaction of the
Secretary that--
``(I) the tenant has made a
good faith effort to meet the
requirements of this section,
including enlisting the
assistance of the Secretary to
obtain a reasonable plan for
restoration or mitigation for
the farm;
``(II) the landlord on the
farm refuses to comply with the
plan on the farm; and
``(III) the Secretary
determines that the lack of
compliance is not a part of a
scheme or device to avoid the
compliance.
``(ii) Report.--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 an annual
report concerning the ineligibility
determinations limited during the
previous 12-month period under this
subparagraph.
``(E) Certificate of compliance.--
``(i) In general.--Beginning with
the first full reinsurance year
immediately following the date of
enactment of this paragraph, all
persons seeking eligibility for the
payment of a portion of the premium
paid by the Federal Crop Insurance
Corporation for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.)
shall provide certification of
compliance with this section as
determined by the Secretary.
``(ii) Timely evaluation.--The
Secretary shall evaluate the
certification in a timely manner and--
``(I) a person who has
properly complied with
certification shall be held
harmless with regard to
eligibility during the period
of evaluation; and
``(II) if the Secretary
fails to evaluate the
certification in a timely
manner and the person is
subsequently found to be in
violation of this subsection,
ineligibility shall not apply
to the person for that
violation.
``(iii) Equitable contribution.--
``(I) In general.--If a
person fails to notify the
Secretary as required and is
subsequently found to be in
violation of this subsection,
the Secretary shall--
``(aa) determine
the amount of an
equitable contribution
to conservation by the
person for the
violation; and
``(bb) deposit the
contribution in the
fund described in
section 1241(f).
``(II) Limitation.--The
contribution shall not exceed
the total of the portion of the
premium paid by the Federal
Crop Insurance Corporation for
a policy or plan of insurance
for all years the person is
determined to have been in
violation subsequent to the
date on which certification was
first required under this
subparagraph.
``(4) Duties of the secretary.--
``(A) In general.--In carrying out this
subsection, the Secretary shall use existing
processes and procedures for certifying
compliance.
``(B) Responsibility.--The Secretary,
acting through the agencies of the Department
of Agriculture, shall be solely responsible for
determining whether a producer is eligible to
receive crop insurance premium subsidies in
accordance with this subsection.
``(C) Limitation.--The Secretary shall
ensure that no agent, approved insurance
provider, or employee or contractor of an
agency or approved insurance provider, bears
responsibility or liability for the eligibility
of an insured producer under this subsection,
other than in cases of misrepresentation,
fraud, or scheme and device.''.
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions; Technical Amendments
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.--Except as provided in subsection (b), section
1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) 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
1231A of the Food Security Act of 1985 (16 U.S.C.
3831a) before the date of enactment of the Agricultural
Act of 2014, or any payments required to be made in
connection with the contract or agreement.
(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 or agreements
referred to in paragraph (1) using the provisions of
law and regulation applicable to such contracts or
agreements as in existence on the day before the date
of enactment of the Agricultural Act of 2014.
SEC. 2703. WETLANDS RESERVE PROGRAM.
(a) Repeal.--Except as provided in subsection (b),
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, 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 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 the date of enactment of
the Agricultural Act of 2014, 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 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 2013 shall be
made available to carry out contracts,
agreements, or easements referred to in
paragraph (1) that were entered into prior to
the date of enactment of the Agricultural Act
of 2014 (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, 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 the day before the date of
enactment of the Agricultural Act of 2014.
SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY PROGRAM.
(a) Repeal.--Except as provided in subsection (b),
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
the date of enactment of the Agricultural Act of 2014,
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 2013
shall be made available to carry out agreements
and easements referred to in paragraph (1) that
were entered into prior to the date of
enactment of the Agricultural Act of 2014
(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,
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 easements as in
existence on the day before the date of
enactment of the Agricultural Act of 2014.
SEC. 2705. GRASSLAND RESERVE PROGRAM.
(a) Repeal.--Except as provided in subsection (b),
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 the date of enactment of
the Agricultural Act of 2014, 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 2013 shall be
made available to carry out contracts,
agreements, or easements referred to in
paragraph (1) that were entered into prior to
the date of enactment of the Agricultural Act
of 2014 (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, 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 the day before the date of
enactment of the Agricultural Act of 2014.
SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
(a) Repeal.--Except as provided in subsection (b), 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 the Secretary of Agriculture under section
1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa-9) before the date of enactment of the
Agricultural Act of 2014, 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 2013
shall be made available to carry out contracts
and agreements referred to in paragraph (1)
that were entered into prior to the date of
enactment of the Agricultural Act of 2014
(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 partnership program under
subtitle I of title XII of the Food Security
Act of 1985, as added by section 2401, 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 the day before the date of enactment of the
Agricultural Act of 2014.
SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Repeal.--Except as provided in subsection (b), 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 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
1240N of the Food Security Act of 1985 (16 U.S.C.
3839bb-1) before the date of enactment of the
Agricultural Act of 2014, 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 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 2013
shall be made available to carry out contracts
or agreements referred to in paragraph (1)
which were entered into prior to the date of
enactment of the Agricultural Act of 2014
(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 or
agreements referred to in paragraph (1) using
the provisions of law and regulation applicable
to such contracts or agreements as in existence
on the day before the date of enactment of the
Agricultural Act of 2014.
SEC. 2708. GREAT LAKES BASIN PROGRAM.
Section 1240P of the Food Security Act of 1985 (16 U.S.C.
3839bb-3) is repealed.
SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM.
(a) Repeal.--Except as provided in subsection (b), 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 the date of
enactment of the Agricultural Act of 2014, 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 2013
shall be made available to carry out contracts,
agreements, and easements referred to in
paragraph (1) that were entered into prior to
the date of enactment of the Agricultural Act
of 2014 (including the provision of technical
assistance).
(B) Other.--The Secretary may use funds
made available to carry out the regional
conservation partnership program under subtitle
I of title XII of the Food Security Act of
1985, as added by section 2401, 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 the day before the date of
enactment of the Agricultural Act of 2014.
SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Repeal.--Except as provided in subsection (b), 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 the date of enactment of the Agricultural Act of
2014, 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 2013
shall be made available to carry out contracts
and agreements referred to in paragraph (1)
that were entered into prior to the date of
enactment of the Agricultural Act of 2014
(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 partnership program under
subtitle I of title XII of the Food Security
Act of 1985, as added by section 2401, 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 the day before the date of enactment of the
Agricultural Act of 2014.
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. TEMPORARY ADMINISTRATION OF CONSERVATION PROGRAMS.
(a) Applicability.--This section is applicable to
activities under--
(1) the wetlands reserve program, the farmland
protection program, and the farm viability program
being merged into the agricultural conservation
easement program under the amendment made by section
2301;
(2) the wildlife habitat incentive program being
merged into the environmental quality incentives
program under the amendments made by subtitle C;
(3) the agricultural water enhancement program, the
Chesapeake Bay watershed program, the cooperative
conservation partnership initiative, and the Great
Lakes basin program being merged into the regional
conservation partnership program under the amendment
made by section 2401; and
(4) the grassland reserve program being merged into
the conservation reserve program under the amendments
made by subtitle A and into the agricultural
conservation easement program under the amendment made
by section 2301.
(b) Interim Administration.--Subject to subsection (d),
with respect to the implementation of the agricultural
conservation easement program under subtitle H of title XII of
the Food Security Act of 1985, as added by section 2301, the
amendments to the environmental quality incentives program made
by subtitle C, the regional conservation partnership program
under subtitle I of title XII of the Food Security Act of 1985,
as added by section 2401, and the amendments to the
conservation reserve program made by subtitle A, the Secretary
shall use the regulations in existence as of the day before the
date of enactment of this Act that are applicable to the
wetlands reserve program, the grassland reserve program, the
farmland protection program, the farm viability program, the
wildlife habitat incentive program, the agricultural water
enhancement program, the Chesapeake Bay watershed program, the
cooperative conservation partnership initiative, and the Great
Lakes basin program repealed by this subtitle, to the extent
that the terms and conditions of such regulations are
consistent with--
(1) the provisions of the agricultural conservation
easement program and the regional conservation
partnership program; and
(2) the amendments to the environmental quality
incentives program and the conservation reserve program
made by this title.
(c) Funding.--The Secretary may only use funds authorized
in this title or in the amendments made by this title for the
specific programs listed in subsection (b), including any
restrictions on the use of those funds, for the purposes
identified in paragraphs (1) and (2) of subsection (b).
(d) Termination of Authority.--The authority of the
Secretary to carry out subsection (b) shall terminate on the
date that is 270 days after the date of enactment of this Act.
(e) Permanent Administration.--Effective beginning on the
termination date described in subsection (d), the Secretary
shall provide technical assistance, financial assistance, and
easement enrollment in accordance with any final regulations
that the Secretary considers necessary to carry out this title
and the amendments made by this title.
SEC. 2713. TECHNICAL AMENDMENTS.
(a) Definitions.--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) Program Ineligibility.--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) Specialty Crop Producers.--Section 1242(i) of the Food
Security Act of 1985 (16 U.S.C. 3842(i)) is amended in the
header by striking ``Speciality'' and inserting ``Specialty''.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. GENERAL AUTHORITY.
Section 201 of the Food for Peace Act (7 U.S.C. 1721) is
amended--
(1) in the matter preceding paragraph (1), by
inserting ``(to be implemented by the Administrator)''
after ``under this title''; and
(2) by striking paragraph (7) and the second
sentence and inserting the following new paragraph:
``(7) build resilience to mitigate and prevent food
crises and reduce the future need for emergency aid.''.
SEC. 3002. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH WHICH
NONEMERGENCY ASSISTANCE IS PROVIDED.
Section 202(e) of the Food for Peace Act (7 U.S.C. 1722(e))
is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph
(A), by striking ``13 percent'' and inserting
``20 percent'';
(B) in subparagraph (A), by striking
``new'' and inserting ``and enhancing'';
(C) by striking subparagraph (B);
(D) by redesignating subparagraph (C) as
subparagraph (D); and
(E) by inserting after subparagraph (A) the
following new subparagraphs:
``(B) meeting specific administrative,
management, personnel, transportation, storage,
and distribution costs for carrying out
programs in foreign countries under this title;
``(C) implementing income-generating,
community development, health, nutrition,
cooperative development, agricultural, and
other developmental activities within 1 or more
recipient countries or within 1 or more
countries in the same region; and''; and
(2) by adding at the end the following new
paragraph:
``(4) Investment authority.--An eligible
organization that receives funds made available under
paragraph (1) may invest the funds pending the eligible
organization's use of the funds. Any interest earned on
such investment may be used for the purposes for which
the assistance was provided to the eligible
organization without further appropriation by
Congress.''.
SEC. 3003. 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 new paragraph:
``(1) In general.--The Administrator shall use
funds made available for fiscal year 2014 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 ``fiscal years
2009 through 2011'' and inserting ``fiscal years 2014
through 2018''.
SEC. 3004. 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 ``2018''; and
(2) in paragraph (2), by striking ``2012'' and
inserting ``2018''.
SEC. 3005. FOOD AID CONSULTATIVE GROUP.
(a) Membership.--Section 205(b) of the Food for Peace Act
(7 U.S.C. 1725(b)) is amended--
(1) by striking ``and'' at the end of paragraph
(6);
(2) by redesignating paragraph (7) as paragraph
(8); and
(3) by inserting after paragraph (6) the following
new paragraph:
``(7) representatives from the United States
agricultural processing sector involved in providing
agricultural commodities for programs under this Act;
and''.
(b) Consultation.--Section 205(d) of the Food for Peace Act
(7 U.S.C. 1725(d)) is amended--
(1) by striking the first sentence and inserting
the following:
``(1) Consultation in advance of issuance of
implementation regulations, handbooks, and
guidelines.--Not later than 45 days before a proposed
regulation, handbook, or guideline implementing this
title, or a proposed significant revision to a
regulation, handbook, or guideline implementing this
title, becomes final, the Administrator shall provide
the proposal to the Group for review and comment.'';
and
(2) by adding at the end the following new
paragraph:
``(2) Consultation regarding food aid quality
efforts.--The Administrator shall seek input from and
consult with the Group on the implementation of section
202(h).''.
(c) Reauthorization.--Section 205(f) of the Food for Peace
Act (7 U.S.C. 1725(f)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 3006. OVERSIGHT, MONITORING, AND EVALUATION.
(a) Regulations and Guidance.--Section 207(c) of the Food
for Peace Act (7 U.S.C. 1726a(c)) is amended--
(1) in the subsection heading, by inserting ``and
Guidance'' after ``Regulations'';
(2) in paragraph (1), by adding at the end the
following new sentence: ``Not later than 270 days after
the date of the enactment of the Agricultural Act of
2014, the Administrator shall issue all regulations and
revisions to agency guidance necessary to implement the
amendments made to this title by such Act.''; and
(3) in paragraph (2), by inserting ``and guidance''
after ``develop regulations''.
(b) Funding.--Section 207(f) of the Food for Peace Act (7
U.S.C. 1726a(f)) is amended--
(1) in paragraph (2)(F), by striking ``upgraded''
and inserting ``maintenance of'';
(2) by striking paragraphs (3) and (4); and
(3) by redesignating paragraphs (5) and (6) as
paragraphs (3) and (4), respectively; and
(4) in paragraph (4) (as so redesignated)--
(A) in subparagraph (A), by striking
``$22,000,000'' and all that follows through
the period at the end and inserting
``$17,000,000 of the funds made available under
this title for each of fiscal years 2014
through 2018, except for paragraph (2)(F), for
which not more than $500,000 shall be made
available for each of the fiscal years 2014
through 2018.''; and
(B) in subparagraph (B)(i), by striking
``2012'' and inserting ``2018''.
(c) Implementation Reports.--Not later than 270 days after
the date of the enactment of this Act, the Administrator of the
Agency for International Development shall submit to the
Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committees on Agriculture and Foreign Affairs of the
House of Representatives a report describing--
(1) the implementation of section 207(c) of the
Food for Peace Act (7 U.S.C. 1726a(c));
(2) the surveys, studies, monitoring, reporting,
and audit requirements for programs conducted under
title II of such Act (7 U.S.C. 1721 et seq.) by an
eligible organization that is a nongovernmental
organization (as such term is defined in section 402 of
such Act (7 U.S.C. 1732)); and
(3) the surveys, studies, monitoring, reporting,
and audit requirements for such programs by an eligible
organization that is an intergovernmental organization,
such as the World Food Program or other multilateral
organization.
SEC. 3007. 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 ``$8,000,000 for each of
fiscal years 2001 through 2012'' and inserting ``$10,000,000
for each of fiscal years 2014 through 2018''.
SEC. 3008. IMPACT ON LOCAL FARMERS AND ECONOMY AND REPORT ON USE OF
FUNDS.
(a) Impact on Local Farmers and Economy.--Section 403(b) of
the Food for Peace Act (7 U.S.C. 1733(b)) is amended by adding
at the end the following new sentence: ``The Secretary or the
Administrator, as appropriate, shall seek information, as part
of the regular proposal and submission process, from
implementing agencies on the potential costs and benefits to
the local economy of sales of agricultural commodities within
the recipient country.''.
(b) Report on Use of Funds.--Section 403 of the Food for
Peace Act (7 U.S.C. 1733) is amended by adding at the end the
following new subsection:
``(m) Report on Use of Funds.--
``(1) Report required.--Not later than 180 days
after the date of the enactment of the Agricultural Act
of 2014, and annually thereafter, the Administrator
shall submit to Congress a report that--
``(A) specifies the amount of funds
(including funds for administrative costs,
indirect cost recovery, internal
transportation, storage, and handling, and
associated distribution costs) provided to each
eligible organization that received assistance
under this Act in the previous fiscal year;
``(B) describes how those funds were used
by the eligible organization;
``(C) describes the actual rate of return
for each commodity made available under this
Act, including--
``(i) factors that influenced the
rate of return; and
``(ii) 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; and
``(D) for each instance in which a
commodity was made available under this Act at
a rate of return less than 70 percent,
describes the reasons for the rate of return
realized.
``(2) Rate of return described.--For purposes of
applying paragraph (1)(C), the rate of return for a
commodity shall be equal to the proportion that--
``(A) the proceeds the implementing
partners generate through monetization; bears
to
``(B) the cost to the Federal Government to
procure and ship the commodity to a recipient
country for monetization.''.
SEC. 3009. PREPOSITIONING OF AGRICULTURAL COMMODITIES.
Section 407(c)(4) of the Food for Peace Act (7 U.S.C.
1736a(c)(4)) is amended--
(1) in subparagraph (A)--
(A) by striking ``2012'' and inserting
``2018''; 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 2013 not more than $10,000,000 of such
funds and for each of fiscal years 2014 through
2018 not more than $15,000,000 of such funds'';
and
(2) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Additional prepositioning sites.--The
Administrator may establish additional sites
for prepositioning in foreign countries or
change the location of current sites for
prepositioning in foreign countries after
conducting, and based on the results of,
assessments of need, the availability of
appropriate technology for long-term storage,
feasibility, and cost.''.
SEC. 3010. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND ACTIVITIES.
Section 407(f)(1) of the Food for Peace Act (7 U.S.C.
1736a(f)(1)) is amended--
(1) in the paragraph heading, by striking
``agricultural trade'' and inserting ``food aid'';
(2) in subparagraph (B)(ii), by inserting before
the semicolon at the end the following: ``and the total
number of beneficiaries of the project and the
activities carried out through such project''; and
(3) in subparagraph (B)(iii)--
(A) in the matter preceding subclause (I),
by inserting ``, and the total number of
beneficiaries in,'' after ``commodities made
available to'';
(B) by striking ``and'' at the end of
subclause (I);
(C) by inserting ``and'' at the end of
subclause (II); and
(D) by inserting after subclause (II) the
following new subclause:
``(III) the McGovern-Dole
International Food for
Education and Child Nutrition
Program established by section
3107 of the Farm Security and
Rural Investment Act of 2002 (7
U.S.C. 1736o-1);''.
SEC. 3011. 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 ``2018''.
SEC. 3012. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Subsection (e) of section 412 of the Food for Peace Act (7
U.S.C. 1736f) is amended to read as follows:
``(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 20 nor more than 30 percent for each of
fiscal years 2014 through 2018 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 $350,000,000 for any
fiscal year.''.
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 ``2018''.
SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
(a) Funding and Reauthorization of Program.--Section 501 of
the Food for Peace Act (7 U.S.C. 1737) is amended--
(1) in subsection (d), in the matter preceding
paragraph (1), by striking ``2012'' and inserting
``2013, and not less than the greater of $15,000,000 or
0.6 percent of the amounts made available for each of
fiscal years 2014 through 2018,''; and
(2) in subsection (e)(1), by striking ``2012'' and
inserting ``2018''.
(b) Comptroller General Report.--Not later than 270 days
after the date of enactment of this Act, the Comptroller
General of the United States shall submit to Congress a report
that contains--
(1) a review of the John Ogonowski and Doug
Bereuter Farmer-to-Farmer Program authorized by section
501 of the Food for Peace Act (7 U.S.C. 1737); and
(2) recommendations relating to actions that the
Comptroller General determines to be necessary to
improve the monitoring and evaluation of assistance
provided under such program.
SEC. 3015. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS REPORT.
Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is
amended--
(1) by striking ``(a) In General.--To the maximum''
and inserting ``To the maximum''; and
(2) by striking subsection (b).
Subtitle B--Agricultural Trade Act of 1978
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Short-Term Credit Guarantees.--Section 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a), by striking ``3-year'' and
inserting ``24-month'';
(2) in subsection (d), by striking ``country'' and
inserting ``obligor'';
(3) by striking subsection (i);
(4) by redesignating subsections (j) and (k) as
subsections (i) and (j), respectfully; and
(5) in subsection (j)(2) (as so redesignated)--
(A) by striking subparagraphs (A) and (B);
(B) by redesignating subparagraphs (C)
through (E) as subparagraphs (A) through (C),
respectfully;
(C) in subparagraph (B) (as so
redesignated), by striking ``and'' at the end;
(D) in subparagraph (C) (as so
redesignated)--
(i) by striking ``, but do not
exceed,''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(E) by adding at the end the following new
subparagraph:
``(D) notwithstanding any other provision
of this section, administer and carry out (only
after consulting with the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition and
Forestry of the Senate) the program pursuant to
such terms as may be agreed between the parties
to address the World Trade Organization dispute
WTO/DS267 to the extent not superseded by any
applicable international undertakings on
officially supported export credits to which
the United States is a party.''.
(b) Funding.--Subsection (b) of section 211 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5641) is amended to
read as follows:
``(b) Export Credit Guarantee Program.--The Commodity
Credit Corporation shall make available for each fiscal year
$5,500,000,000 of credit guarantees under section 202(a).''.
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 ``2018''.
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
``2018''.
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 ``2018'';
(2) in subsection (g), by striking ``2012'' and
inserting ``2018'';
(3) in subsection (k), by striking ``2012'' and
inserting ``2018''; and
(4) in subsection (l)(1), by striking ``2012'' and
inserting ``2018''.
(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).
SEC. 3202. BILL EMERSON HUMANITARIAN TRUST ACT.
Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1) is amended--
(1) in subsection (b)(2)(B)(i), by striking
``2012'' both places it appears and inserting ``2018'';
and
(2) in subsection (h), by striking ``2012'' both
places it appears and inserting ``2018''.
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 ``2018''.
(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 ``2018''.
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
``2018''.
(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 2018.''.
(c) U.S. Atlantic Spiny Dogfish Study.--Not later than 90
days after the date of the enactment of this Act, the Secretary
shall conduct an economic study on the existing market in the
United States for U.S. Atlantic Spiny Dogfish.
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 ``2014 through
2018''.
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 new
subsection:
``(e) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$80,000,000 for each of fiscal years 2014 through 2018.
``(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. UNDER SECRETARY OF AGRICULTURE FOR TRADE AND FOREIGN
AGRICULTURAL AFFAIRS.
(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) Proposal.--
(1) In general.--The Secretary, in consultation
with the agriculture committees and subcommittees,
shall propose a reorganization of international trade
functions for imports and exports of the Department of
Agriculture.
(2) Considerations.--In producing the proposal
under this section, the Secretary shall--
(A) in recognition of the importance of
agricultural exports to the farm economy and
the economy as a whole, include a plan for the
establishment of an Under Secretary of
Agriculture for Trade and Foreign Agricultural
Affairs;
(B) take into consideration how the Under
Secretary described in subparagraph (A) 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
(C) take into consideration all
implications of a reorganization described in
paragraph (1) on domestic programs and
operations of the Department of Agriculture.
(3) Report.--Not later than 180 days after the date
of enactment of this Act and before the reorganization
described in paragraph (1) can take effect, the
Secretary shall submit to the agriculture committees
and subcommittees a report that--
(A) includes the results of the proposal
under this section; and
(B) provides a notice of the reorganization
plan.
(4) Implementation.--Not later than 1 year after
the date of the submission of the report under
paragraph (3), the Secretary shall implement a
reorganization of international trade functions for
imports and exports of the Department of Agriculture,
including the establishment of an Under Secretary of
Agriculture for Trade and Foreign Agricultural Affairs.
(c) Confirmation Required.--The position of Under Secretary
of Agriculture for Trade and Foreign Agricultural Affairs
established under subsection (b)(2)(A) shall be appointed by
the President, by and with the advice and consent of the
Senate.
TITLE IV--NUTRITION
Subtitle A--Supplemental Nutrition Assistance Program
SEC. 4001. PREVENTING PAYMENT OF CASH TO RECIPIENTS OF SUPPLEMENTAL
NUTRITION ASSISTANCE BENEFITS FOR THE RETURN OF
EMPTY BOTTLES AND CANS USED TO CONTAIN FOOD
PURCHASED WITH BENEFITS PROVIDED UNDER THE PROGRAM.
Section 3(k)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2012(k)(1)) is amended--
(1) by striking ``and hot foods'' and inserting
``hot foods''; and
(2) by adding at the end the following: ``and any
deposit fee in excess of the amount of the State fee
reimbursement (if any) required to purchase any food or
food product contained in a returnable bottle or can,
regardless of whether the fee is included in the shelf
price posted for the food or food product,''.
SEC. 4002. RETAIL FOOD STORES.
(a) Definition of Retail Food Store.--Section 3(p)(1)(A) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is
amended--
(1) by inserting ``at least 7'' after ``a variety
of''; and
(2) 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 and other
direct-to-consumer 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.
``(C) Interchange fees.--Nothing in this
paragraph permits the charging of fees relating
to the redemption of supplemental nutrition
assistance program benefits, in accordance with
subsection (h)(13).''; 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.--
``(A) In general.--To enhance the anti-
fraud protections of the program, 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.
``(B) Regulations.--
``(i) In general.--Not earlier than
2 years after the date of enactment of
this paragraph, the Secretary shall
issue proposed regulations to carry out
this paragraph.
``(ii) Commercial practices.--In
issuing regulations to carry out this
paragraph, the Secretary shall consider
existing commercial practices for other
point-of-sale debit transactions.''.
(c) Electronic Benefit Transfer Auditability.--Section
7(h)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C.
2016(h)(2)(C)) is amended by striking clause (ii) and inserting
the following:
``(ii) unless determined by the
Secretary to be located in an area with
significantly limited access to food,
measures that require an electronic
benefit transfer system--
``(I) to set and enforce
sales restrictions based on
benefit transfer payment
eligibility by using scanning
or product lookup entry; and
``(II) to deny benefit
tenders for manually entered
sales of ineligible items.''.
(d) 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''.
(e) 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)(1), in the second sentence,
by striking ``; and (C)'' and inserting ``; (C) whether
the applicant is located in an area with significantly
limited access to food; and (D)'';
(2) in subsection (c), in the first sentence, by
inserting ``purchase invoices, or program-related
records,'' after ``relevant income and sales tax filing
documents,''; 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. 4003. ENHANCING SERVICES TO ELDERLY AND DISABLED SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM PARTICIPANTS.
(a) Enhancing Services to Elderly and Disabled Program
Participants.--Section 3(p) of the Food and Nutrition Act of
2008 (7 U.S.C. 2012(p)) is amended--
(1) in paragraph (3), by striking ``and'' at the
end;
(2) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(3) by inserting after paragraph (4) the following:
``(5) a governmental or private nonprofit food
purchasing and delivery service that--
``(A) purchases food for, and delivers the
food to, individuals who are--
``(i) unable to shop for food; and
``(ii)(I) not less than 60 years of
age; or
``(II) physically or mentally
handicapped or otherwise disabled;
``(B) clearly notifies the participating
household at the time the household places a
food order--
``(i) of any delivery fee
associated with the food purchase and
delivery provided to the household by
the service; and
``(ii) that a delivery fee cannot
be paid with benefits provided under
supplemental nutrition assistance
program; and
``(C) sells food purchased for the
household at the price paid by the service for
the food and without any additional cost
markup.''.
(b) Implementation.--
(1) Issuance of rules.--The Secretary shall issue
regulations that--
(A) establish criteria to identify a food
purchasing and delivery service referred to in
section 3(p)(5) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2012(p)(5)); and
(B) establish procedures to ensure that the
service--
(i) does not charge more for a food
item than the price paid by the service
for the food item;
(ii) offers food delivery service
at no or low cost to households under
that Act;
(iii) ensures that benefits
provided under the supplemental
nutrition assistance program are used
only to purchase food (as defined in
section 3 of that Act (7 U.S.C. 2012));
(iv) limits the purchase of food,
and the delivery of the food, to
households eligible to receive services
described in section 3(p)(5) of that
Act (7 U.S.C. 2012(p)(5));
(v) has established adequate
safeguards against fraudulent
activities, including unauthorized use
of electronic benefit cards issued
under that Act; and
(vi) meets such other requirements
as the Secretary determines to be
appropriate.
(2) Limitation.--Before the issuance of rules under
paragraph (1), the Secretary may not approve more than
20 food purchasing and delivery services referred to in
section 3(p)(5) of the Food and Nutrition Act of 2008
(7 U.S.C. 2012(p)(5)) to participate as retail food
stores under the supplemental nutrition assistance
program.
SEC. 4004. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.
(a) In General.--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 ``2018''.
(b) Feasibility Study, Report, and Demonstration Project
for Indian Tribes.--
(1) Definitions.--In this subsection:
(A) Indian; indian tribe.--The terms
``Indian'' and ``Indian tribe'' have the
meaning given the terms in section 4 of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
(B) Tribal organization.--The term ``tribal
organization'' has the meaning given the term
in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(2) Study.--The Secretary shall conduct a study to
determine the feasibility of tribal administration of
Federal food assistance programs, services, functions,
and activities (or portions thereof), in lieu of State
agencies or other administrating entities.
(3) Report.--Not later than 18 months 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 that--
(A) contains a list of programs, services,
functions, and activities with respect to which
it would be feasible to be administered by a
tribal organization;
(B) a description of whether that
administration would necessitate a statutory or
regulatory change; and
(C) such other issues that may be
determined by the Secretary and developed
through consultation pursuant to paragraph (4).
(4) Consultation with indian tribes.--In developing
the report required by paragraph (3), the Secretary
shall consult with tribal organizations.
(5) Funding.--Out of any funds made available under
section 18 for fiscal year 2014, the Secretary shall
make available to carry out the study and report
described in paragraphs (2) and (3) $1,000,000, to
remain available until expended.
(6) Traditional and local foods demonstration
project.--
(A) In general.--Subject to the
availability of appropriations, the Secretary
shall pilot a demonstration project by awarding
a grant to 1 or more tribal organizations
authorized to administer the food distribution
program on Indian reservations under section
4(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)) for the purpose of purchasing
nutritious and traditional foods, and when
practicable, foods produced locally by Indian
producers, for distribution to recipients of
foods distributed under that program.
(B) Administration.--The Secretary may
award a grant on a noncompetitive basis to 1 or
more tribal organizations that have the
administrative and financial capability to
conduct a demonstration project, as determined
by the Secretary.
(C) Consultation, technical assistance, and
training.--During the implementation phase of
the demonstration project, the Secretary shall
consult with Indian tribes and provide outreach
to Indian farmers, ranchers, and producers
regarding the training and capacity to
participate in the demonstration project.
(D) Funding.--
(i) Authorization of
appropriations.--There is authorized to
be appropriated to carry out this
section $2,000,000 for each of fiscal
years 2014 through 2018.
(ii) Relationship to other
authorities.--The funds and authorities
provided under this subparagraph are in
addition to any other funds or
authorities the Secretary may have to
carry out activities described in this
paragraph.
SEC. 4005. EXCLUSION OF MEDICAL MARIJUANA FROM EXCESS MEDICAL EXPENSE
DEDUCTION.
Section 5(e)(5) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(5)) is amended by adding at the end the
following:
``(C) Exclusion of medical marijuana.--The
Secretary shall promulgate rules to ensure that
medical marijuana is not treated as a medical
expense for purposes of this paragraph.''.
SEC. 4006. 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), by striking subclause (I) and
inserting the following:
``(I) In general.--Subject
to subclause (II), if a State
agency elects to use a standard
utility allowance that reflects
heating and cooling costs, the
standard utility allowance
shall be made available to
households that received a
payment, or on behalf of which
a payment was made, under the
Low-Income Home Energy
Assistance Act of 1981 (42
U.S.C. 8621 et seq.) or other
similar energy assistance
program, if in the current
month or in the immediately
preceding 12 months, the
household either received such
a payment, or such a payment
was made on behalf of the
household, that was greater
than $20 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 the
following: ``, 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 were greater than $20 annually, consistent with
section 5(e)(6)(C)(iv)(I) of that Act (7 U.S.C.
2014(e)(6)(C)(iv)(I)), as determined by the Secretary of
Agriculture''.
(c) Application and Implementation.--
(1) In general.--Except as provided in paragraph
(2), this section and the amendments made by this
section shall--
(A) take effect 30 days after the date of
enactment of this Act; and
(B) apply with respect to certification
periods that begin 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 reduces
the effect of the amendments made by this section on
households that received a standard utility allowance
as of the date of enactment of this Act, for not more
than a 5-month period beginning on the date on which
the amendments would otherwise apply to the respective
household.
SEC. 4007. ELIGIBILITY DISQUALIFICATIONS.
Section 6(e)(3)(B) of the 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. 4008. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN CONVICTED FELONS.
(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) Disqualification for Certain Convicted Felons.--
``(1) In general.--An individual shall not be
eligible for benefits under this Act if--
``(A) the individual is convicted of--
``(i) aggravated sexual abuse under
section 2241 of title 18, United States
Code;
``(ii) murder under section 1111 of
title 18, United States Code;
``(iii) an offense under chapter
110 of title 18, United States Code;
``(iv) a Federal or State offense
involving sexual assault, as defined in
40002(a) of the Violence Against Women
Act of 1994 (42 U.S.C. 13925(a)); or
``(v) an offense under State law
determined by the Attorney General to
be substantially similar to an offense
described in clause (i), (ii), or
(iii); and
``(B) the individual is not in compliance
with the terms of the sentence of the
individual or the restrictions under subsection
(k).
``(2) Effects on assistance and benefits for
others.--The amount of benefits otherwise required to
be provided to an eligible household under this Act
shall be determined by considering the individual to
whom paragraph (1) applies not to be a member of the
household, except that the income and resources of the
individual shall be considered to be income and
resources of the household.
``(3) Enforcement.--Each State shall require each
individual applying for benefits under this Act to
attest to whether the individual, or any member of the
household of the individual, has been convicted of a
crime described in paragraph (1).''.
(b) Conforming Amendment.--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''.
(c) Inapplicability to Convictions Occurring on or Before
Enactment.--The amendments made by this section shall not apply
to a conviction if the conviction is for conduct occurring on
or before the date of enactment of this Act.
SEC. 4009. 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) (as amended by section 4008) is amended by
adding at the end the following:
``(s) 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.''.
SEC. 4010. 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) in the paragraph heading, by striking ``card
fee'' and inserting ``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) 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. 4011. 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
4030(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,
2016.
``(C) Report to congress.--The Secretary
shall--
``(i) by not later than January 1,
2017, 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,
2016.
``(5) Report to congress.--The Secretary shall--
``(A) by not later than January 1, 2017,
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 alters 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. 4012. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED
AGRICULTURE SHARE.
Subsection (o)(4) of section 3 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2012) (as redesignated by section
4030(a)(4)) is amended by inserting ``, or agricultural
producers who market agricultural products directly to
consumers'' after ``such food''.
SEC. 4013. IMPROVED WAGE VERIFICATION USING THE NATIONAL DIRECTORY OF
NEW HIRES.
Section 11(e) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)) is amended--
(1) in paragraph (3), by inserting ``and after
compliance with the requirement specified in paragraph
(24)'' after ``section 16(e) of this Act'';
(2) in paragraph (22), by striking ``and'' at the
end;
(3) in paragraph (23)(C), by striking the period at
the end and inserting ``; and''; and
(4) by adding at the end the following:
``(24) that the State agency shall request wage
data directly from the National Directory of New Hires
established under section 453(i) of the Social Security
Act (42 U.S.C. 653(i)) relevant to determining
eligibility to receive supplemental nutrition
assistance program benefits and determining the correct
amount of those benefits at the time of
certification.''.
SEC. 4014. RESTAURANT MEALS PROGRAM.
(a) In General.--Section 11(e) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020(e)) (as amended by section 4013) is
amended--
(1) in paragraph (23)(C), by striking ``and'' at
the end;
(2) in paragraph (24), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(25) 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 4002(d)(2)) 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)(25).
``(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)(25), 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)(25).
``(B) Justification.--If the Secretary
determines 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, 2014, and 90 days after the last
day of each fiscal year 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
effectiveness of a program under this subsection using
any information received from States under section
11(e)(25) 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. 4015. MANDATING STATE IMMIGRATION VERIFICATION.
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking subsection (p) and inserting the
following:
``(p) State Verification Option.--In carrying out the
supplemental nutrition assistance program, a State agency shall
be required to use an immigration status verification system
established under section 1137 of the Social Security Act (42
U.S.C. 1320b-7), and an income and eligibility verification
system, in accordance with standards set by the Secretary.''.
SEC. 4016. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.
(a) Data Exchange Standardization.--Section 11 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding
at the end the following:
``(v) Data Exchange Standards for Improved
Interoperability.--
``(1) Designation.--The Secretary shall, in
consultation with an interagency work group established
by the Office of Management and Budget, and considering
State government perspectives, designate data exchange
standards to govern, under this Act--
``(A) necessary categories of information
that State agencies operating related programs
are required under applicable law to
electronically exchange with another State
agency; and
``(B) Federal reporting and data exchange
required under applicable law.
``(2) Requirements.--The data exchange standards
required by paragraph (1) shall, to the maximum extent
practicable--
``(A) incorporate a widely accepted,
nonproprietary, searchable, computer-readable
format, such as the eXtensible Markup Language;
``(B) contain interoperable standards
developed and maintained by intergovernmental
partnerships, such as the National Information
Exchange Model;
``(C) incorporate interoperable standards
developed and maintained by Federal entities
with authority over contracting and financial
assistance;
``(D) be consistent with and implement
applicable accounting principles;
``(E) be implemented in a manner that is
cost-effective and improves program efficiency
and effectiveness; and
``(F) be capable of being continually
upgraded as necessary.
``(3) Rules of construction.--Nothing in this
subsection requires a change to existing data exchange
standards for Federal reporting found to be effective
and efficient.''.
(b) Application Date.--
(1) In general.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall
issue a proposed rule to carry out the amendments made
by this section.
(2) Requirements.--The rule shall--
(A) identify federally required data
exchanges;
(B) include specification and timing of
exchanges to be standardized;
(C) address the factors used in determining
whether and when to standardize data exchanges;
(D) specify State implementation options;
and
(E) describe future milestones.
SEC. 4017. PILOT PROJECTS TO IMPROVE FEDERAL-STATE COOPERATION IN
IDENTIFYING AND REDUCING FRAUD IN THE SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C.
2021) is amended by adding at the end the following:
``(i) Pilot Projects to Improve Federal-State Cooperation
in Identifying and Reducing Fraud in the Supplemental Nutrition
Assistance Program.--
``(1) Pilot projects required.--
``(A) In general.--The Secretary shall
carry out, under such terms and conditions as
are determined by the Secretary, pilot projects
to test innovative Federal-State partnerships
to identify, investigate, and reduce fraud by
retail food stores and wholesale food concerns
in the supplemental nutrition assistance
program, including allowing States to operate
programs to investigate that fraud.
``(B) Requirement.--At least 1 pilot
project described in subparagraph (A) shall be
carried out in an urban area that is among the
10 largest urban areas in the United States
(based on population), if--
``(i) the supplemental nutrition
assistance program is separately
administered in the area; and
``(ii) if the administration of the
supplemental nutrition assistance
program in the area complies with the
other applicable requirements of the
program.
``(2) Selection criteria.--Pilot projects shall be
selected based on criteria the Secretary establishes,
which shall include--
``(A) enhancing existing efforts by the
Secretary to reduce fraud described in
paragraph (1)(A);
``(B) requiring participant States to
maintain the overall level of effort of the
States at addressing recipient fraud, as
determined by the Secretary, prior to
participation in the pilot project;
``(C) collaborating with other law
enforcement authorities as necessary to carry
out an effective pilot project;
``(D) commitment of the participant State
agency to follow Federal rules and procedures
with respect to investigations described in
paragraph (1)(A); and
``(E) the extent to which a State has
committed resources to recipient fraud and the
relative success of those efforts.
``(3) Evaluation.--
``(A) In general.--The Secretary shall
evaluate the pilot projects selected under this
subsection to measure the impact of the pilot
projects.
``(B) Requirements.--The evaluation shall
include--
``(i) the impact of each pilot
project on increasing the capacity of
the Secretary to address fraud
described in paragraph (1)(A);
``(ii) the effectiveness of the
pilot projects in identifying,
preventing and reducing fraud described
in paragraph (1)(A); and
``(iii) the cost effectiveness of
the pilot projects.
``(4) Report to congress.--Not later than September
30, 2017, 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 includes a description of the
results of each pilot project, including--
``(A) an evaluation of the impact of the
pilot project on fraud described in paragraph
(1)(A); and
``(B) the costs associated with the pilot
project.
``(5) Funding.--Any costs incurred by a State to
operate pilot projects under this subsection that are
in excess of the amount expended under this Act to
identify, investigate, and reduce fraud described in
paragraph (1)(A) in the respective State in the
previous fiscal year shall not be eligible for Federal
reimbursement under this Act.''.
SEC. 4018. PROHIBITING GOVERNMENT-SPONSORED RECRUITMENT ACTIVITIES.
(a) Administrative Cost-sharing and Quality Control.--
Section 16(a)(4) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)(4)) is amended by inserting after ``recruitment
activities'' the following: ``designed to persuade an
individual to apply for program benefits or that promote the
program through television, radio, or billboard
advertisements''.
(b) Limitation on Use of Funds Authorized to Be
Appropriated Under Act.--Section 18 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2027) is amended by adding at the end the
following:
``(g) Ban on Recruitment and Promotion Activities.--
``(1) In general.--Except as provided in paragraph
(2), no funds authorized to be appropriated under this
Act shall be used by the Secretary for--
``(A) recruitment activities designed to
persuade an individual to apply for
supplemental nutrition assistance program
benefits;
``(B) television, radio, or billboard
advertisements that are designed to promote
supplemental nutrition assistance program
benefits and enrollment; or
``(C) any agreements with foreign
governments designed to promote supplemental
nutrition assistance program benefits and
enrollment.
``(2) Limitation.--Paragraph (1)(B) shall not apply
to programmatic activities undertaken with respect to
benefits made under section 5(h).''.
(c) Ban on Recruitment Activities by Entities That Receive
Funds.--Section 18 of the Food and Nutrition Act of 2008 (7
U.S.C. 2027) (as amended by subsection (b)) is amended by
adding at the end the following:
``(h) Ban on Recruitment by Entities That Receive Funds.--
The Secretary shall issue regulations that prohibit entities
that receive funds under this Act to compensate any person for
conducting outreach activities relating to participation in, or
for recruiting individuals to apply to receive benefits under,
the supplemental nutrition assistance program, if the amount of
the compensation would be based on the number of individuals
who apply to receive the benefits.''.
SEC. 4019. TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.
Section 16(c)(1)(A) of the Food and Nutrition Act of 2008
(7 U.S.C. 2025(c)(1)(A)) is amended--
(1) by striking ``In carrying'' and inserting the
following:
``(i) In general.--In carrying'';
and
(2) by adding at the end the following:
``(ii) Tolerance level for
excluding small errors.--The Secretary
shall set the tolerance level for
excluding small errors for the purposes
of this subsection--
``(I) for fiscal year 2014,
at an amount not greater than
$37; and
``(II) for each fiscal year
thereafter, the amount
specified in subclause (I)
adjusted by the percentage by
which the thrifty food plan is
adjusted under section 3(u)(4)
between June 30, 2013, and June
30 of the immediately preceding
fiscal year.''.
SEC. 4020. QUALITY CONTROL STANDARDS.
(a) In General.--Section 16(c)(1)(D)(i) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is amended by
striking subclause (I).
(b) Conforming Amendments.--
(1) Section 13(a)(1) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first
sentence by striking ``section 16(c)(1)(D)(i)(III)''
and inserting ``section 16(c)(1)(D)(i)(II)''.
(2) Section 16(c)(1) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025(c)(1)) is amended--
(A) in subparagraph (D)--
(i) in clause (i)--
(I) by redesignating
subclauses (II) through (IV) as
subclauses (I) through (III),
respectively; and
(II) in subclause (III) (as
so redesignated), by striking
``through (III)'' and inserting
``and (II)''; and
(ii) in clause (ii), by striking
``waiver amount or'';
(B) in subparagraph (E)(i), by striking
``(D)(i)(III)'' and inserting ``(D)(i)(II)'';
and
(C) in subparagraph (F), by striking
``(D)(i)(II)'' each place it appears and
inserting ``(D)(i)(I)''.
SEC. 4021. PERFORMANCE BONUS PAYMENTS.
Section 16(d) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(d)) is amended by adding at the end the following:
``(5) Use of performance bonus payments.--A State
agency may use a performance bonus payment received
under this subsection only to carry out the program
established under this Act, including investments in--
``(A) technology;
``(B) improvements in administration and
distribution; and
``(C) actions to prevent fraud, waste, and
abuse.''.
SEC. 4022. PILOT PROJECTS TO REDUCE DEPENDENCY AND INCREASE WORK
REQUIREMENTS AND WORK EFFORT UNDER SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.
(a) In General.--Section 16(h) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(h)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``15 months'' and
inserting ``24 months''; and
(ii) by striking ``, except that
for fiscal year 2013 and fiscal year
2014, the amount shall be
$79,000,000'';
(B) in subparagraph (C)--
(i) by striking ``If a State'' and
inserting the following:
``(i) In general.--If a State'';
and
(ii) by adding at the end the
following:
``(ii) Timing.--The Secretary shall
collect such information as the
Secretary determines to be necessary
about the expenditures and anticipated
expenditures by the State agencies of
the funds initially allocated to the
State agencies under subparagraph (A)
to make reallocations of unexpended
funds under clause (i) within a
timeframe that allows each State agency
to which funds are reallocated at least
270 days to expend the reallocated
funds.
``(iii) Opportunity.--The Secretary
shall ensure that all State agencies
have an opportunity to obtain
reallocated funds.''; and
(C) by adding at the end the following:
``(F) Pilot projects to reduce dependency
and increase work requirements and work effort
under supplemental nutrition assistance
program.--
``(i) Pilot projects required.--
``(I) In general.--The
Secretary shall carry out pilot
projects under which State
agencies shall enter into
cooperative agreements with the
Secretary to develop and test
methods, including operating
work programs with certain
features comparable to the
program of block grants to
States for temporary assistance
for needy families established
under part A of title IV of the
Social Security Act (42 U.S.C.
601 et seq.), for employment
and training programs and
services to raise the number of
work registrants under section
6(d) of this Act who obtain
unsubsidized employment,
increase the earned income of
the registrants, and reduce the
reliance of the registrants on
public assistance, so as to
reduce the need for
supplemental nutrition
assistance benefits.
``(II) Requirements.--Pilot
projects shall--
``(aa) meet such
terms and conditions as
the Secretary considers
to be appropriate; and
``(bb) except as
otherwise provided in
this subparagraph, be
in accordance with the
requirements of
sections 6(d) and 20.
``(ii) Selection criteria.--
``(I) In general.--The
Secretary shall select pilot
projects under this
subparagraph in accordance with
the criteria established under
this clause and additional
criteria established by the
Secretary.
``(II) Qualifying
criteria.--To be eligible to
participate in a pilot project,
a State agency shall--
``(aa) agree to
participate in the
evaluation described in
clause (vii), including
providing evidence that
the State has a robust
data collection system
for program
administration and
cooperating to make
available State data on
the employment
activities and post-
participation
employment, earnings,
and public benefit
receipt of participants
to ensure proper and
timely evaluation;
``(bb) commit to
collaborate with the
State workforce board
and other job training
programs in the State
and local area; and
``(cc) commit to
maintain at least the
amount of State funding
for employment and
training programs and
services under
paragraphs (2) and (3)
and under section 20 as
the State expended for
fiscal year 2013.
``(III) Selection
criteria.--In selecting pilot
projects, the Secretary shall--
``(aa) consider the
degree to which the
pilot project would
enhance existing
employment and training
programs in the State;
``(bb) consider the
degree to which the
pilot project would
enhance the employment
and earnings of program
participants;
``(cc) consider
whether there is
evidence that the pilot
project could be
replicated easily by
other States or
political subdivisions;
``(dd) consider
whether the State
agency has a
demonstrated capacity
to operate high quality
employment and training
programs; and
``(ee) ensure the
pilot projects, when
considered as a group,
test a range of
strategies, including
strategies that--
``(AA) target
individuals with low
skills or limited work
experience, individuals
subject to the
requirements under
section 6(o), and
individuals who are
working;
``(BB) are located
in a range of
geographic areas and
States, including rural
and urban areas;
``(CC) emphasize
education and training,
rehabilitative services
for individuals with
barriers to employment,
rapid attachment to
employment, and mixed
strategies; and
``(DD) test
programs that assign
work registrants to
mandatory and voluntary
participation in
employment and training
activities.
``(iii) Accountability .--
``(I) In general.--The
Secretary shall establish and
implement a process to
terminate a pilot project for
which the State has failed to
meet the criteria described in
clause (ii) or other criteria
established by the Secretary.
``(II) Timing.--The process
shall include a reasonable time
period, not to exceed 180 days,
for State agencies found
noncompliant to correct the
noncompliance.
``(iv) Employment and training
activities.--Allowable programs and
services carried out under this
subparagraph shall include those
programs and services authorized under
this Act and employment and training
activities authorized under the program
of block grants to States for temporary
assistance for needy families
established under part A of title IV of
the Social Security Act (42 U.S.C. 601
et seq.), including:
``(I) Employment in the
public or private sector that
is not subsidized by any public
program.
``(II) Employment in the
private sector for which the
employer receives a subsidy
from public funds to offset all
or a part of the wages and
costs of employing an adult.
``(III) Employment in the
public sector for which the
employer receives a subsidy
from public funds to offset all
or a part of the wages and
costs of employing an adult.
``(IV) A work activity
that--
``(aa) is performed
in return for public
benefits;
``(bb) provides an
adult with an
opportunity to acquire
the general skills,
knowledge, and work
habits necessary to
obtain employment;
``(cc) is designed
to improve the
employability of those
who cannot find
unsubsidized
employment; and
``(dd) is
supervised by an
employer, work site
sponsor, or other
responsible party on an
ongoing basis.
``(V) Training in the
public or private sector that--
``(aa) is given to
a paid employee while
the employee is engaged
in productive work; and
``(bb) provides
knowledge and skills
essential to the full
and adequate
performance of the job.
``(VI) Job search,
obtaining employment, or
preparation to seek or obtain
employment, including--
``(aa) life skills
training;
``(bb) substance
abuse treatment or
mental health
treatment, determined
to be necessary and
documented by a
qualified medical,
substance abuse, or
mental health
professional; and
``(cc)
rehabilitation
activities, supervised
by a public agency or
other responsible party
on an ongoing basis.
``(VII) Structured programs
and embedded activities--
``(aa) in which
adults perform work for
the direct benefit of
the community under the
auspices of public or
nonprofit
organizations;
``(bb) that are
limited to projects
that serve useful
community purposes in
fields such as health,
social service,
environmental
protection, education,
urban and rural
redevelopment, welfare,
recreation, public
facilities, public
safety, and child care;
``(cc) that are
designed to improve the
employability of adults
not otherwise able to
obtain unsubsidized
employment;
``(dd) that are
supervised on an
ongoing basis; and
``(ee) with respect
to which a State agency
takes into account, to
the maximum extent
practicable, the prior
training, experience,
and skills of a
recipient in making
appropriate community
service assignments.
``(VIII) Career and
technical training programs
that are--
``(aa) directly
related to the
preparation of adults
for employment in
current or emerging
occupations; and
``(bb) supervised
on an ongoing basis.
``(IX) Training or
education for job skills that
are--
``(aa) required by
an employer to provide
an adult with the
ability to obtain
employment or to
advance or adapt to the
changing demands of the
workplace; and
``(bb) supervised
on an ongoing basis.
``(X) Education that is--
``(aa) related to a
specific occupation,
job, or job offer; and
``(bb) supervised
on an ongoing basis.
``(XI) In the case of an
adult who has not completed
secondary school or received a
certificate of general
equivalence, regular attendance
that is--
``(aa) in
accordance with the
requirements of the
secondary school or
course of study, at a
secondary school or in
a course of study
leading to a
certificate of general
equivalence; and
``(bb) supervised
on an ongoing basis.
``(XII) Providing child
care to enable another
recipient of public benefits to
participate in a community
service program that--
``(aa) does not
provide compensation
for the community
service;
``(bb) is a
structured program
designed to improve the
employability of adults
who participate in the
program; and
``(cc) is
supervised on an
ongoing basis.
``(v) Sanctions.--Subject to clause
(vi), no work registrant shall be
eligible to participate in the
supplemental nutrition assistance
program if the individual refuses
without good cause to participate in an
employment and training program under
this subparagraph, to the extent
required by the State agency.
``(vi) Standards.--
``(I) In general.--
Employment and training
activities under this
subparagraph shall be
considered to be carried out
under section 6(d), including
for the purpose of satisfying
any conditions of participation
and duration of ineligibility.
``(II) Standards for
certain employment
activities.--The Secretary
shall establish standards for
employment activities described
in subclauses (I), (II), and
(III) of clause (iv) that
ensure that failure to work for
reasons beyond the control of
an individual, such as
involuntary reduction in hours
of employment, shall not result
in ineligibility.
``(III) Participation in
other programs.--Before
assigning a work registrant to
mandatory employment and
training activities, a State
agency shall--
``(aa) assess
whether the work
registrant is
participating in
substantial employment
and training activities
outside of the pilot
project that are
expected to result in
the work registrant
gaining increased
skills, training, work,
or experience
consistent with the
objectives of the pilot
project; and
``(bb) if
determined to be
acceptable, count hours
engaged in the
activities toward any
minimum participation
requirement.
``(vii) Evaluation and reporting.--
``(I) Independent
evaluation.--
``(aa) In
general.--The Secretary
shall, under such terms
and conditions as the
Secretary determines to
be appropriate, conduct
for each State agency
that enters into a
cooperative agreement
under clause (i) an
independent
longitudinal evaluation
of each pilot project
of the State agency
under this
subparagraph, with
results reported not
less frequently than in
consecutive 12-month
increments.
``(bb) Purpose.--
The purpose of the
independent evaluation
shall be to measure the
impact of employment
and training programs
and services provided
by each State agency
under the pilot
projects on the ability
of adults in each pilot
project target
population to find and
retain employment that
leads to increased
household income and
reduced reliance on
public assistance, as
well as other measures
of household well-
being, compared to what
would have occurred in
the absence of the
pilot project.
``(cc)
Methodology.--The
independent evaluation
shall use valid
statistical methods
that can determine, for
each pilot project, the
difference, if any,
between supplemental
nutrition assistance
and other public
benefit receipt
expenditures,
employment, earnings
and other impacts as
determined by the
Secretary--
``(AA) as a result
of the employment and
training programs and
services provided by
the State agency under
the pilot project; as
compared to
``(BB) a control
group that is not
subject to the
employment and training
programs and services
provided by the State
agency under the pilot
project.
``(II) Reporting.--Not
later than December 31, 2015,
and each December 31 thereafter
until the completion of the
last evaluation under subclause
(I), 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
share broadly, including by
posting on the Internet website
of the Department of
Agriculture, a report that
includes a description of--
``(aa) the status
of each pilot project
carried out under this
subparagraph;
``(bb) the results
of the evaluation
completed during the
previous fiscal year;
``(cc) to the
maximum extent
practicable, baseline
information relevant to
the stated goals and
desired outcomes of the
pilot project;
``(dd) the
employment and training
programs and services
each State tested under
the pilot, including--
``(AA) the system
of the State for
assessing the ability
of work registrants to
participate in and meet
the requirements of
employment and training
activities and
assigning work
registrants to
appropriate activities;
and
``(BB) the
employment and training
activities and services
provided under the
pilot;
``(ee) the impact
of the employment and
training programs and
services on appropriate
employment, income, and
public benefit receipt
as well as other
outcomes among
households
participating in the
pilot project, relative
to households not
participating; and
``(ff) the steps
and funding necessary
to incorporate into
State employment and
training programs and
services the components
of the pilot projects
that demonstrate
increased employment
and earnings.
``(viii) Funding.--
``(I) In general.--Subject
to subclause (II), from amounts
made available under section
18(a)(1), the Secretary shall
use to carry out this
subparagraph--
``(aa) for fiscal
year 2014, $10,000,000;
and
``(bb) for fiscal
year 2015,
$190,000,000.
``(II) Limitations.--
``(aa) In
general.--The Secretary
shall not fund more
than 10 pilot projects
under this
subparagraph.
``(bb) Duration.--
Each pilot project
shall be in effect for
not more than 3 years.
``(III) Availability of
funds.--Funds made available
under subclause (I) shall
remain available through
September 30, 2018.
``(ix) Use of funds.--
``(I) In general.--Funds
made available under this
subparagraph for pilot projects
shall be used only for--
``(aa) pilot
projects that comply
with this Act;
``(bb) the program
and administrative
costs of carrying out
the pilot projects;
``(cc) the costs
incurred in developing
systems and providing
information and data
for the independent
evaluations under
clause (vii); and
``(dd) the costs of
the evaluations under
clause (vii).
``(II) Maintenance of
effort.--Funds made available
under this subparagraph shall
be used only to supplement, not
to supplant, non-Federal funds
used for existing employment
and training activities or
services.
``(III) Other funds.--In
carrying out pilot projects,
States may contribute
additional funds obtained from
other sources, including
Federal, State, or private
funds, on the condition that
the use of the contributions is
permissible under Federal
law.''; and
(2) by striking paragraph (5) and inserting the
following:
``(5) Monitoring.--
``(A) In general.--The Secretary shall
monitor the employment and training programs
carried out by State agencies under section
6(d)(4) and assess the effectiveness of the
programs in--
``(i) preparing members of
households participating in the
supplemental nutrition assistance
program for employment, including the
acquisition of basic skills necessary
for employment; and
``(ii) increasing the number of
household members who obtain and retain
employment subsequent to participation
in the employment and training
programs.
``(B) Reporting measures.--
``(i) In general.--The Secretary,
in consultation with the Secretary of
Labor, shall develop State reporting
measures that identify improvements in
the skills, training, education, or
work experience of members of
households participating in the
supplemental nutrition assistance
program.
``(ii) Requirements.--Measures
shall--
``(I) be based on common
measures of performance for
Federal workforce training
programs; and
``(II) include additional
indicators that reflect the
challenges facing the types of
members of households
participating in the
supplemental nutrition
assistance program who
participate in a specific
employment and training
component.
``(iii) State requirements.--The
Secretary shall require that each State
employment and training plan submitted
under section 11(e)(19) identifies
appropriate reporting measures for each
proposed component that serves a
threshold number of participants
determined by the Secretary of at least
100 people a year.
``(iv) Inclusions.--Reporting
measures described in clause (iii) may
include--
``(I) the percentage and
number of program participants
who received employment and
training services and are in
unsubsidized employment
subsequent to the receipt of
those services;
``(II) the percentage and
number of program participants
who obtain a recognized
credential, including a
registered apprenticeship, or a
regular secondary school
diploma or its recognized
equivalent, while participating
in, or within 1 year after
receiving, employment and
training services;
``(III) the percentage and
number of program participants
who are in an education or
training program that is
intended to lead to a
recognized credential,
including a registered
apprenticeship or on-the-job
training program, a regular
secondary school diploma or its
recognized equivalent, or
unsubsidized employment;
``(IV) subject to terms and
conditions established by the
Secretary, measures developed
by each State agency to assess
the skills acquisition of
employment and training program
participants that reflect the
goals of the specific
employment and training program
components of the State agency,
which may include, at a
minimum--
``(aa) the
percentage and number
of program participants
who are meeting program
requirements in each
component of the
education and training
program of the State
agency;
``(bb) the
percentage and number
of program participants
who are gaining skills
likely to lead to
employment as measured
through testing,
quantitative or
qualitative assessment,
or other method; and
``(cc) the
percentage and number
of program participants
who do not comply with
employment and training
requirements and who
are ineligible under
section 6(b); and
``(V) other indicators
approved by the Secretary.
``(C) Oversight of state employment and
training activities.--The Secretary shall
assess State employment and training programs
on a periodic basis to ensure--
``(i) compliance with Federal
employment and training program rules
and regulations;
``(ii) that program activities are
appropriate to meet the needs of the
individuals referred by the State
agency to an employment and training
program component;
``(iii) that reporting measures are
appropriate to identify improvements in
skills, training, work and experience
for participants in an employment and
training program component; and
``(iv) for States receiving
additional allocations under paragraph
(1)(E), any information the Secretary
may require to evaluate the compliance
of the State agency with paragraph (1),
which may include--
``(I) a report for each
fiscal year of the number of
individuals in the State who
meet the conditions of
paragraph (1)(E)(ii), the
number of individuals the State
agency offers a position in a
program described in
subparagraph (B) or (C) of
section 6(o)(2), and the number
who participate in such a
program;
``(II) a description of the
types of employment and
training programs the State
agency uses to comply with
paragraph (1)(E) and the
availability of those programs
throughout the State; and
``(III) any additional
information the Secretary
determines to be appropriate.
``(D) State report.--Each State agency
shall annually prepare and submit to the
Secretary a report on the State employment and
training program that includes, using measures
identified under subparagraph (B), the numbers
of supplemental nutrition assistance program
participants who have gained skills, training,
work, or experience that will increase the
ability of the participants to obtain regular
employment.
``(E) Modifications to the state employment
and training plan.--Subject to terms and
conditions established by the Secretary, if the
Secretary determines that the performance of a
State agency with respect to employment and
training outcomes is inadequate, the Secretary
may require the State agency to make
modifications to the State employment and
training plan to improve the outcomes.
``(F) Periodic evaluation.--Subject to
terms and conditions established by the
Secretary, not later than October 1, 2016, and
not less frequently than once every 5 years
thereafter, the Secretary shall conduct a study
to review existing practice and research to
identify employment and training program
components and practices that--
``(i) effectively assist members of
households participating in the
supplemental nutrition assistance
program in gaining skills, training,
work, or experience that will increase
the ability of the participants to
obtain regular employment; and
``(ii) are best integrated with
statewide workforce development
systems.''.
(b) Conforming Amendments.--
(1) Section 5 of the Food and Nutrition Act of 2008
(7 U.S.C. 2014) is amended--
(A) in subsection (d)(14), by inserting
``or a pilot project under section
16(h)(1)(F)'' after ``6(d)(4)(I)'';
(B) in subsection (e)(3)(B)(iii), by
inserting ``or a pilot project under section
16(h)(1)(F)'' after ``6(d)(4)''; and
(C) in subsection (g)(3), in the first
sentence, by inserting ``or a pilot project
under section 16(h)(1)(F)'' after ``6(d)''.
(2) Section 16(h) of the Food and Nutrition Act of
2008 (7 U.S.C. 2025(h)) is amended--
(A) in paragraph (3), by inserting ``or a
pilot project under paragraph (1)(F)'' after
``6(d)(4)''; and
(B) in paragraph (4), by inserting ``or a
pilot project under paragraph (1)(F)'' after
``6(d)(4)''.
(3) 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 inserting
``(h)(1)(F),'' after ``(g),''.
(c) Application Date.--
(1) In general.--The amendments made by this
section (other than the amendments made by subsection
(a)(2)) shall apply beginning on the date of enactment
of this Act.
(2) Process for selecting pilot programs.--
(A) In general.--Not later than 180 days
after the date of enactment of this Act, the
Secretary shall--
(i) develop and publish the process
for selecting pilot projects under
section 16(h)(1)(F) of the Food and
Nutrition Act of 2008 (as added by
subsection (a)(1)(C)); and
(ii) issue such request for
proposals for the independent
evaluation as is determined appropriate
by the Secretary.
(B) Application.--The Secretary shall begin
considering proposals not earlier than 90 days
after the date on which the Secretary completes
the actions described in subparagraph (A).
(C) Selection.--Not later than 180 days
after the date on which the Secretary completes
the actions described in subparagraph (A), the
Secretary shall select pilot projects from the
applications submitted in response to the
request for proposals issued under subparagraph
(A).
(3) Monitoring of employment and training
programs.--
(A) In general.--Not later than 18 months
after the date of enactment of this Act, the
Secretary shall issue interim final regulations
implementing the amendments made by subsection
(a)(2).
(B) State action.--States shall include
reporting measures required under section
16(h)(5) of the Food and Nutrition Act of 2008
(as amended by subsection (a)(2)) in the
employment and training plans of the States for
the first full fiscal year that begins not
earlier than 180 days after the date that the
regulations described in subparagraph (A) are
published.
SEC. 4023. COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
2026) is amended by adding at the end the following:
``(l) Cooperation With Program Research and Evaluation.--
Subject to the requirements of this Act, including protections
under section 11(e)(8), States, State agencies, local agencies,
institutions, facilities such as data consortiums, and
contractors participating in programs authorized under this Act
shall--
``(1) cooperate with officials and contractors
acting on behalf of the Secretary in the conduct of
evaluations and studies under this Act; and
``(2) submit information at such time and in such
manner as the Secretary may require.''.
SEC. 4024. 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 ``2018''.
SEC. 4025. REVIEW, REPORT, AND REGULATION OF CASH NUTRITION ASSISTANCE
PROGRAM BENEFITS PROVIDED IN PUERTO RICO.
Section 19 of the Food and Nutrition Act of 2008 (7 U.S.C.
2028) is amended by adding at the end the following:
``(e) Review, Report, and Regulation of Cash Nutrition
Assistance Program Benefits Provided in Puerto Rico.--
``(1) Review.--The Secretary, in consultation with
the Secretary of Health and Human Services, shall carry
out a review of the provision of nutrition assistance
in Puerto Rico in the form of cash benefits under this
section that shall include--
``(A) an examination of the history of and
purpose for distribution of a portion of
monthly benefits in the form of cash;
``(B) an examination of current barriers to
the redemption of non-cash benefits by current
program participants and retailers;
``(C) an examination of current usage of
cash benefits for the purchase of non-food and
other prohibited items;
``(D) an identification and assessment of
potential adverse effects of the
discontinuation of a portion of benefits in the
form of cash for program participants and
retailers; and
``(E) an examination of such other factors
as the Secretary determines to be relevant.
``(2) Report.--Not later than 18 months 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 that
describes the results of the review conducted under
this subsection.
``(3) Regulation.--
``(A) In general.--Except as provided in
subparagraph (B), and notwithstanding the
second sentence of subsection (b)(1)(B)(i), the
Secretary shall disapprove any plan submitted
pursuant to subsection (b)(1)(A)--
``(i) for fiscal year 2017 that
provides for the distribution of more
than 20 percent of the nutrition
assistance benefit of a participant in
the form of cash;
``(ii) for fiscal year 2018 that
provides for the distribution of more
than 15 percent of the nutrition
assistance benefit of a participant in
the form of cash;
``(iii) for fiscal year 2019 that
provides for the distribution of more
than 10 percent of the nutrition
assistance benefit of a participant in
the form of cash;
``(iv) for fiscal year 2020 that
provides for the distribution of more
than 5 percent of the nutrition
assistance benefit of a participant in
the form of cash; and
``(v) for fiscal year 2021 that
provides for the distribution of any
portion of the nutrition assistance
benefit of a participant in the form of
cash.
``(B) Exception.--Notwithstanding
subparagraph (A), the Secretary, informed by
the report required under paragraph (2), may
approve a plan that exempts participants or
categories of participants if the Secretary
determines that discontinuation of benefits in
the form of cash is likely to have significant
adverse effects.
``(4) Funding.--Out of any funds made available
under section 18 for fiscal year 2014, the Secretary
shall make available to carry out the review and report
described in paragraphs (1) and (2) $1,000,000, to
remain available until expended.''.
SEC. 4026. 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)--
(A) in paragraph (1)(B)--
(i) in clause (i)--
(I) in subclause (I), by
inserting after ``individuals''
the following: ``through food
distribution, community
outreach to assist in
participation in Federally
assisted nutrition programs, or
improving access to food as
part of a comprehensive
service;''; and
(II) in subclause (III), by
inserting ``food access,''
after ``food,''; and
(ii) in clause (ii), by striking
subclause (I) and inserting the
following:
``(I) equipment necessary
for the efficient operation of
a project;''; and
(B) by striking paragraphs (2) and (3) and
inserting the following:
``(2) Gleaner.--The term `gleaner' means an entity
that--
``(A) collects edible, surplus food that
would be thrown away and distributes the food
to agencies or nonprofit organizations that
feed the hungry; or
``(B) harvests for free distribution to the
needy, or for donation to agencies or nonprofit
organizations for ultimate distribution to the
needy, an agricultural crop that has been
donated by the owner of the crop.
``(3) Hunger-free communities goal.--The term
`hunger-free communities goal' means any of the 14
goals described in House Concurrent Resolution 302,
102nd Congress, agreed to October 5, 1992.'';
(2) in subsection (b)(2)--
(A) in subparagraph (A), by striking
``and'' at the end;
(B) in subparagraph (B), by striking
``fiscal year 2008 and each fiscal year
thereafter.'' and inserting the following:
``each of fiscal years 2008 through 2014; and
``(C) $9,000,000 for fiscal year 2015 and
each fiscal year thereafter.'';
(3) in subsection (c)--
(A) in the matter preceding paragraph (1),
by striking ``private nonprofit entity'' and
inserting ``public food program service
provider, a tribal organization, or a private
nonprofit entity, including gleaners,'';
(B) in paragraph (1)--
(i) in subparagraph (A), by
striking ``or'' after the semicolon at
the end;
(ii) in subparagraph (B), by
inserting ``or'' after the semicolon at
the end; and
(iii) by adding at the end the
following:
``(C) efforts to reduce food insecurity in
the community, including food distribution,
improving access to services, or coordinating
services and programs;'';
(C) in paragraph (2), by striking ``and''
after the semicolon at the end;
(D) in paragraph (3), by striking the
period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(4) collaborate with 1 or more local partner
organizations to achieve at least 1 hunger-free
communities goal.'';
(4) in subsection (d)--
(A) in paragraph (3), by striking ``or''
after the semicolon at the end;
(B) in paragraph (4), by striking the
period at the end and inserting ``; or''; and
(C) by adding at the end the following:
``(5) develop new resources and strategies to help
reduce food insecurity in the community and prevent
food insecurity in the future by--
``(A) developing creative food resources;
``(B) coordinating food services with park
and recreation programs and other community-
based outlets to reduce barriers to access; or
``(C) creating nutrition education programs
for at- risk populations to enhance food-
purchasing and food- preparation skills and to
heighten awareness of the connection between
diet and health.'';
(5) in subsection (f)(2), by striking ``3 years''
and inserting ``5 years''; and
(6) by striking subsections (h) and (i) and
inserting the following:
``(h) Reports to Congress.--Not later than September 30,
2014, and each year thereafter, the Secretary shall submit to
Congress a report that describes each grant made under this
section, including--
``(1) a description of any activity funded;
``(2) the degree of success of each activity funded
in achieving hunger-free community goals; and
``(3) the degree of success in improving the long-
term capacity of a community to address food and
agriculture problems related to hunger or access to
healthy food.''.
SEC. 4027. 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 ``2014 through 2018'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking
``and'' at the end;
(B) in subparagraph (C)--
(i) by striking ``2012'' and
inserting ``2018''; and
(ii) by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(D) for each of fiscal years 2015 through
2018, the sum obtained by adding the total
dollar amount of commodities specified in
subparagraph (C) and--
``(i) for fiscal year 2015,
$50,000,000;
``(ii) for fiscal year 2016,
$40,000,000;
``(iii) for fiscal year 2017,
$20,000,000; and
``(iv) for fiscal year 2018,
$15,000,000; and
``(E) for fiscal year 2019 and each
subsequent fiscal year, the total dollar amount
of commodities specified in subparagraph
(D)(iv) adjusted by the percentage by which the
thrifty food plan has been adjusted under
section 3(u)(4) to reflect changes between June
30, 2017, and June 30 of the immediately
preceding fiscal year.''; 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
``2018''.
SEC. 4028. 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. 4029. 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.--
``(1) In general.--Additional funds are provided
under this section to supplement the retail food store
and recipient integrity activities of the Department.
``(2) Information technologies.--The Secretary
shall use an appropriate amount of the funds provided
under this section to employ information technologies
known as data mining and data warehousing and other
available information technologies to administer the
supplemental nutrition assistance program and enforce
regulations promulgated under section 4(c).
``(c) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$5,000,000 for each of fiscal years 2014 through 2018.
``(2) Mandatory 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 $15,000,000 for fiscal year 2014, to
remain available until expended.
``(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 for programs carried out under this
Act.''.
SEC. 4030. 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,'' the
last place it appears 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'' both places it appears 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 115 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is
amended--
(1) in subsection (a)(2), by striking ``food stamp
program (as defined in section 3(l) of the Food Stamp
Act of 1977) or any State program carried out under the
Food Stamp Act of 1977'' and inserting ``supplemental
nutrition assistance program (as defined in section 3
of the Food and Nutrition Act of 2008 (7 U.S.C. 2012))
or any State program carried out under that Act'';
(2) in subsection (b)(2)--
(A) in the paragraph heading, by striking
``the food stamp act of 1977'' and inserting
``the food and nutrition act of 2008''; and
(B) by striking ``food stamp program (as
defined in section 3(l) of the Food Stamp Act
of 1977), or any State program carried out
under the Food Stamp Act of 1977'' and
inserting ``supplemental nutrition assistance
program (as defined in section 3 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2012)), or
any State program carried out under that Act'';
and
(3) in subsection (e)(2), by striking ``section
3(s) of the Food Stamp Act of 1977, when referring to
the food stamp program (as defined in section 3(l) of
the Food Stamp Act of 1977) or any State program
carried out under the Food Stamp Act of 1977'' and
inserting ``section 3 of the Food and Nutrition Act of
2008 (7 U.S.C. 2012), when referring to the
supplemental nutrition assistance program (as defined
in that section) or any State program carried out under
that Act''.
(o) Section 3803(c)(2)(C)(vii) of title 31 of the United
States Code is amended by striking ``section 3(l)'' and
inserting ``section 3''.
(p) Section 453(j)(10) of the Social Security Act (42
U.S.C. 653(j)(10)) is amended in the paragraph heading by
striking ``food stamp programs'' and inserting ``supplemental
nutrition assistance program benefits''.
(q) Section 1137 of the Social Security Act (42 U.S.C.
1320b-7)--
(1) in subsection (a)(5)(B), by striking ``food
stamp'' and inserting ``supplemental nutrition
assistance''; and
(2) in subsection (b)(4), by striking ``food stamp
program under the Food Stamp Act of 1977'' and
inserting ``supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.)''.
(r) Section 1631(n) of the Social Security Act (42 U.S.C.
1383) is amended in the subsection heading by striking ``Food
Stamp'' and inserting ``Supplemental Nutrition Assistance''.
(s) 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''.
(t) Section 4(a) of the Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note; Public Law 93-86) is amended
by striking ``Food Stamp Act of 1977'' and inserting ``Food and
Nutrition Act of 2008''.
(u) 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 subsection (h)(1), by striking ``food
stamps'' and inserting ``the supplemental nutrition
assistance program'';
(2) in subsection (i)(1), by striking ``food stamps
provided under the Food Stamp Act of 1977'' and
inserting ``supplemental nutrition assistance benefits
provided under the Food and Nutrition Act of 2008'';
and
(3) in subsection (l)(2)(B), by striking ``Food
Stamp Act of 1977'' and inserting ``Food and Nutrition
Act of 2008''.
(v) 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''.
SEC. 4031. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS PILOT PROGRAM.
(a) Study.--
(1) In general.--Prior to establishing the pilot
program under subsection (b), the Secretary shall
conduct a study to be completed not later than 2 years
after the date of enactment of this Act to assess--
(A) the capabilities of the Commonwealth of
the Northern Mariana Islands to operate the
supplemental nutrition assistance program
established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) in a similar
manner as the program is operated in the States
(as defined in section 3 of that Act (7 U.S.C.
2012)); and
(B) alternative models of the supplemental
nutrition assistance program operation and
benefit delivery that best meet the nutrition
assistance needs of the Commonwealth of the
Northern Mariana Islands.
(2) Scope.--The study conducted under paragraph
(1)(A) shall assess the capability of the Commonwealth
of the Northern Mariana Islands to fulfill the
responsibilities of a State agency (as defined in
section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012)), including--
(A) extending and limiting participation to
eligible households, as required by sections 5
and 6 of that Act (7 U.S.C. 2014, 2015);
(B) issuing benefits through EBT cards, as
required by section 7 of that Act (7 U.S.C.
2016);
(C) maintaining the integrity of the
program, including operation of a quality
control system, as required by section 16(c) of
that Act (7 U.S.C. 2025(c));
(D) implementing work requirements,
including operating an employment and training
program, as required by section 6(d) of that
Act (7 U.S.C. 2015(d)); and
(E) paying a share of administrative costs
with non-Federal funds, as required by section
16(a) of that Act (7 U.S.C. 2016(a)).
(b) Establishment.--If the Secretary determines that a
pilot program is feasible, the Secretary shall establish a
pilot program for the Commonwealth of the Northern Mariana
Islands to operate the supplemental nutrition assistance
program in the same manner in which the program is operated in
the States.
(c) Scope.--The Secretary shall use the information
obtained from the study conducted under subsection (a) to
establish the scope of the pilot program established under
subsection (b).
(d) Report.--Not later than June 30, 2019, 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 pilot program
carried out under this section, including an analysis of the
feasibility of operating the supplemental nutrition assistance
program in the Commonwealth of the Northern Mariana Islands in
the same manner in which the program is operated in the States.
(e) Funding.--
(1) Study.--Of the funds made available under
section 18(a)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2027(a)(1)), the Secretary may use to conduct
the study described in subsection (a) not more than
$1,000,000 for each of fiscal years 2014 and 2015.
(2) Pilot program.--
(A) In general.--Except as provided in
subparagraph (B), of the funds made available
under section 18(a)(1) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)),
the Secretary may use to establish and carry
out the pilot program under subsection (b),
including the Federal costs for providing
technical assistance to the Commonwealth of the
Northern Mariana Islands, authorizing and
monitoring retail food stores, and assessing
pilot operations, not more than--
(i) $13,500,000 for fiscal year
2016; and
(ii) $8,500,000 for each of fiscal
years 2017 and 2018.
(B) Exception.--If the Secretary determines
that a pilot program described in subsection
(b) is not feasible, the Secretary shall
provide to the Commonwealth of the Northern
Mariana Islands any unspent funds described in
subparagraph (A), which shall--
(i) be made available for
obligation under the Commonwealth of
the Northern Mariana Islands nutrition
assistance program block grant in
addition to any other funds made
available for that grant; and
(ii) remain available until
expended.
SEC. 4032. ANNUAL STATE REPORT ON VERIFICATION OF SNAP PARTICIPATION.
(a) Annual Report.--Not later than 1 year after the date
specified by the Secretary during the 180-day period beginning
on the date of enactment of this Act, and annually thereafter,
each State agency that carries out the supplemental nutrition
assistance program established under the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.) shall submit to the Secretary a
report containing sufficient information for the Secretary to
determine whether the State agency has, for the most recently
concluded fiscal year preceding that annual date, verified that
the State agency in that fiscal year--
(1) did not issue benefits to a deceased
individual; and
(2) did not issue benefits to an individual who had
been permanently disqualified from receiving benefits.
(b) Penalty for Noncompliance.--For any fiscal year for
which a State agency fails to comply with subsection (a), the
Secretary shall impose a penalty that includes a reduction of
up to 50 percent of the amount that would be otherwise payable
to the State agency under section 16(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2025(a)) with respect to that
fiscal year.
(c) Report of Pilot Program to Test Prevention of Duplicate
Participation.--Not later than 90 days after the completion in
multiple States of a temporary pilot program to test the
detection and prevention of duplicate participation by
beneficiaries of the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), 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
assessing the feasibility, effectiveness, and cost for the
expansion of the pilot program nationwide.
SEC. 4033. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES.
(a) Purposes.--The purposes of this section are--
(1) to provide access to traditional foods in food
service programs;
(2) to encourage increased consumption of
traditional foods to decrease health disparities among
Indians, particularly Alaska Natives; and
(3) to provide alternative food options for food
service programs.
(b) Definitions.--In this section:
(1) Alaska native.--The term ``Alaska Native''
means a person who is a member of any Native village,
Village Corporation, or Regional Corporation (as those
terms are defined in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602)).
(2) Commissioner.--The term ``Commissioner'' means
the Commissioner of Food and Drugs.
(3) Food service program.--The term ``food service
program'' includes--
(A) food service at residential child care
facilities that have a license from an
appropriate State agency;
(B) any child nutrition program (as that
term is defined in section 25(b) of the Richard
B. Russell National School Lunch Act (42 U.S.C.
1769f(b));
(C) food service at hospitals, clinics, and
long-term care facilities; and
(D) senior meal programs.
(4) Indian; indian tribe.--The terms ``Indian'' and
``Indian tribe'' have the meanings given those terms in
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(5) Traditional food.--
(A) In general.--The term ``traditional
food'' means food that has traditionally been
prepared and consumed by an Indian tribe.
(B) Inclusions.--The term ``traditional
food'' includes--
(i) wild game meat;
(ii) fish;
(iii) seafood;
(iv) marine mammals;
(v) plants; and
(vi) berries.
(6) Tribal organization.--The term ``tribal
organization'' has the meaning given the term in
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(c) Program.--The Secretary and the Commissioner shall
allow the donation to and serving of traditional food through
food service programs at public facilities and nonprofit
facilities, including facilities operated by Indian tribes and
facilities operated by tribal organizations, that primarily
serve Indians if the operator of the food service program--
(1) ensures that the food is received whole,
gutted, gilled, as quarters, or as a roast, without
further processing;
(2) makes a reasonable determination that--
(A) the animal was not diseased;
(B) the food was butchered, dressed,
transported, and stored to prevent
contamination, undesirable microbial growth, or
deterioration; and
(C) the food will not cause a significant
health hazard or potential for human illness;
(3) carries out any further preparation or
processing of the food at a different time or in a
different space from the preparation or processing of
other food for the applicable program to prevent cross-
contamination;
(4) cleans and sanitizes food-contact surfaces of
equipment and utensils after processing the traditional
food;
(5) labels donated traditional food with the name
of the food;
(6) stores the traditional food separately from
other food for the applicable program, including
through storage in a separate freezer or refrigerator
or in a separate compartment or shelf in the freezer or
refrigerator;
(7) follows Federal, State, local, county, tribal,
or other non-Federal law regarding the safe preparation
and service of food in public or nonprofit facilities;
and
(8) follows other such criteria as established by
the Secretary and Commissioner.
(d) Liability.--
(1) In general.--The United States, an Indian
tribe, and a tribal organization shall not be liable in
any civil action for any damage, injury, or death
caused to any person by the donation to or serving of
traditional foods through food service programs.
(2) Rule of construction.--Nothing in paragraph (1)
alters any liability or other obligation of the United
States under the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 1450 et seq.).
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 ``2018''.
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 ``2018'';
(2) in the first sentence of subsection (d)(2), by
striking ``2012'' and inserting ``2018'';
(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 ``2018''.
SEC. 4104. PROCESSING OF COMMODITIES.
(a) In General.--Section 17 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 the section heading, by inserting ``and
processing'' after ``donations''; and
(2) by adding at the end the following:
``(c) Processing.--
``(1) In general.--For any program included under
subsection (b), the Secretary may, notwithstanding any
other provision of Federal or State law relating to the
procurement of goods and services--
``(A) retain title to commodities delivered
to a processor, on behalf of a State (including
a State distributing agency and a recipient
agency), until such time as end products
containing the commodities, or similar
commodities as approved by the Secretary, are
delivered to a State distributing agency or to
a recipient agency; and
``(B) promulgate regulations to ensure
accountability for commodities provided to a
processor for processing into end products, and
to facilitate processing of commodities into
end products for use by recipient agencies.
``(2) Regulations.--The regulations described in
paragraph (1)(B) may provide that--
``(A) a processor that receives commodities
for processing into end products, or provides a
service with respect to the commodities or end
products, in accordance with the agreement of
the processor with a State distributing agency
or a recipient agency, provide to the Secretary
a bond or other means of financial assurance to
protect the value of the commodities; and
``(B) in the event a processor fails to
deliver to a State distributing agency or a
recipient agency an end product in conformance
with the processing agreement entered into
under this Act, the Secretary--
``(i) take action with respect to
the bond or other means of financial
assurance pursuant to regulations
promulgated under this subsection; and
``(ii) distribute any proceeds
obtained by the Secretary to 1 or more
State distributing agencies and
recipient agencies, as determined
appropriate by the Secretary.''.
(b) Definitions.--Section 18 of the Commodity Distribution
Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note;
Public Law 100-237) is amended by striking paragraphs (1) and
(2) and inserting the following:
``(1) Commodities.--The term `commodities' means
agricultural commodities and their products that are
donated by the Secretary for use by recipient agencies.
``(2) End product.--The term `end product' means a
food product that contains processed commodities.''.
(c) 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 ``2018''.
SEC. 4202. PILOT PROJECT FOR PROCUREMENT OF UNPROCESSED FRUITS AND
VEGETABLES.
Section 6 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1755) is amended by adding at the end the
following:
``(f) Pilot Project for Procurement of Unprocessed Fruits
and Vegetables.--
``(1) In general.--The Secretary shall conduct a
pilot project under which the Secretary shall
facilitate the procurement of unprocessed fruits and
vegetables in not more than 8 States receiving funds
under this Act.
``(2) Purpose.--The purpose of the pilot project
required by this subsection is to provide selected
States flexibility for the procurement of unprocessed
fruits and vegetables by permitting each State--
``(A) to utilize multiple suppliers and
products established and qualified by the
Secretary; and
``(B) to allow geographic preference, if
desired, in the procurement of the products
under the pilot project.
``(3) Selection and participation.--
``(A) In general.--The Secretary shall
select States for participation in the pilot
project in accordance with criteria established
by the Secretary and terms and conditions
established for participation.
``(B) Requirement.--The Secretary shall
ensure that at least 1 project is located in a
State in each of--
``(i) the Pacific Northwest Region;
``(ii) the Northeast Region;
``(iii) the Western Region;
``(iv) the Midwest Region; and
``(v) the Southern Region.
``(4) Priority.--In selecting States for
participation in the pilot project, the Secretary shall
prioritize applications based on--
``(A) the quantity and variety of growers
of local fruits and vegetables in the States on
a per capita basis;
``(B) the demonstrated commitment of the
States to farm-to-school efforts, as evidenced
by prior efforts to increase and promote farm-
to-school programs in the States; and
``(C) whether the States contain a
sufficient quantity of local educational
agencies, various population sizes, and
geographical locations.
``(5) Recordkeeping and reporting requirements.--
``(A) Recordkeeping requirement.--States
selected to participate in the pilot project,
and participating school food authorities
within those States, shall keep records of the
fruits and vegetables received under the pilot
project in such manner and form as requested by
the Secretary.
``(B) Reporting requirement.--Each
participating State shall submit to the
Secretary a report on the success of the pilot
project in the State, including information
on--
``(i) the quantity and cost of each
type of fruit and vegetable received by
the State under the pilot project; and
``(ii) the benefit provided by
those procurements in conducting school
food service in the State, including
meeting school meal requirements.''.
SEC. 4203. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
(a) In General.--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 ``2018''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on October 1, 2013.
SEC. 4204. 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.''.
SEC. 4205. MULTIAGENCY TASK FORCE.
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. MULTIAGENCY TASK FORCE.
``(a) In General.--The Secretary shall establish, in the
office of the Under Secretary for Food, Nutrition, and Consumer
Services, a multiagency task force for the purpose of providing
coordination and direction for commodity programs.
``(b) Composition.--The Task Force shall be composed of at
least 4 members, including--
``(1) a representative from the Food Distribution
Division of the Food and Nutrition Service, who shall--
``(A) be appointed by the Under Secretary
for Food, Nutrition, and Consumer Services; and
``(B) serve as Chairperson of the Task
Force;
``(2) at least 1 representative from the
Agricultural Marketing Service, who shall be appointed
by the Under Secretary for Marketing and Regulatory
Programs;
``(3) at least 1 representative from the Farm
Services Agency, who shall be appointed by the Under
Secretary for Farm and Foreign Agricultural Services;
and
``(4) at least 1 representative from the Food
Safety and Inspection Service, who shall be appointed
by the Under Secretary for Food Safety.
``(c) Duties.--
``(1) In general.--The Task Force shall be
responsible for evaluation and monitoring of the
commodity programs to ensure that the commodity
programs meet the mission of the Department--
``(A) to support the United States farm
sector; and
``(B) to contribute to the health and well-
being of individuals in the United States
through the distribution of domestic
agricultural products through commodity
programs.
``(2) Specific duties.--In carrying out paragraph
(1), the Task Force shall--
``(A) review and make recommendations
regarding the specifications used for the
procurement of food commodities;
``(B) review and make recommendations
regarding the efficient and effective
distribution of food commodities; and
``(C) review and make recommendations
regarding the degree to which the quantity,
quality, and specifications of procured food
commodities align the needs of producers and
the preferences of recipient agencies.
``(d) Reports.--Not later than 1 year after the date of
enactment of this section, and annually thereafter, the
Secretary shall submit to Congress a report that describes, for
the period covered by the report--
``(1) the findings and recommendations of the Task
Force; and
``(2) policies implemented for the improvement of
commodity procurement programs.''.
SEC. 4206. HEALTHY FOOD FINANCING INITIATIVE.
Subtitle D of title II of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended
by section 4205) is amended by adding at the end the following:
``SEC. 243. 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 or cereal;
``(ii) flour;
``(iii) fruits;
``(iv) vegetables;
``(v) meat; and
``(vi) dairy products.
``(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 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.''.
SEC. 4207. PURCHASE OF HALAL AND KOSHER FOOD FOR EMERGENCY FOOD
ASSISTANCE PROGRAM.
Section 202 of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7502) is amended by adding at the end the following:
``(h) Kosher and Halal Food.--As soon as practicable after
the date of enactment of this subsection, the Secretary shall
finalize and implement a plan--
``(1) to increase the purchase of Kosher and Halal
food from food manufacturers with a Kosher or Halal
certification to carry out the program established
under this Act if the Kosher and Halal food purchased
is cost neutral as compared to food that is not from
food manufacturers with a Kosher or Halal
certification; and
``(2) to modify the labeling of the commodities
list used to carry out the program in a manner that
enables Kosher and Halal distribution entities to
identify which commodities to obtain from local food
banks.''.
SEC. 4208. FOOD INSECURITY NUTRITION INCENTIVE.
Section 4405 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 7517) is amended to read as follows:
``SEC. 4405. FOOD INSECURITY NUTRITION INCENTIVE.
``(a) In General.--In this section:
``(1) Eligible entity.--The term `eligible entity'
means--
``(A) a nonprofit organization (including
an emergency feeding organization);
``(B) an agricultural cooperative;
``(C) a producer network or association;
``(D) a community health organization;
``(E) a public benefit corporation;
``(F) an economic development corporation;
``(G) a farmers' market;
``(H) a community-supported agriculture
program;
``(I) a buying club;
``(J) a retail food store participating in
the supplemental nutrition assistance program;
``(K) a State, local, or tribal agency; and
``(L) any other entity the Secretary
designates.
``(2) Emergency feeding organization.--The term
`emergency feeding organization' has the meaning given
the term in section 201A of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7501).
``(3) 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.).
``(b) Food Insecurity Nutrition Incentive Grants.--
``(1) Authorization.--
``(A) In general.--In each of the years
specified in subsection (c), 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
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 be treated
as supplemental nutrition benefits under
section 8(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2017(b)).
``(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.
``(c) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out subsection
(b) $5,000,000 for each of fiscal years 2014 through
2018.
``(2) Mandatory funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out subsection (b)--
``(A) $35,000,000 for the period of fiscal
years 2014 and 2015;
``(B) $20,000,000 for each of fiscal years
2016 and 2017; and
``(C) $25,000,000 for fiscal year 2018.''.
SEC. 4209. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630 et seq.) is amended
by adding at the end the following:
``SEC. 413. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM.
``(a) In General.--Subject to the availability of
appropriations under subsection (e), the Secretary, acting
through the Director of the National Institute of Food and
Agriculture, and working in consultation with other appropriate
Federal agencies that oversee national service programs, shall
administer a competitively awarded food and agriculture service
learning grant program (referred to in this section as the
`Program') to increase knowledge of agriculture and improve the
nutritional health of children.
``(b) Purposes.--The purposes of the Program are--
``(1) to increase capacity for food, garden, and
nutrition education within host organizations or
entities and school cafeterias and in the classroom;
``(2) to complement and build on the efforts of the
farm to school programs implemented under section 18(g)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769(g));
``(3) to complement efforts by the Department and
school food authorities to implement the school lunch
program established under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.) and
the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773);
``(4) to carry out activities that advance the
nutritional health of children and nutrition education
in elementary schools and secondary schools (as those
terms are defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)); and
``(5) to foster higher levels of community
engagement and support the expansion of national
service and volunteer opportunities.
``(c) Grants.--
``(1) In general.--In carrying out the Program, the
Director of the National Institute of Food and
Agriculture shall make competitive grants to eligible
entities that carry out the purposes described in
paragraphs (1) through (5) of subsection (b).
``(2) Priorities.--In making grants under this
section, the Secretary may consider projects that are
carried out by entities that--
``(A) have a proven track record in
carrying out the purposes described in
subsection (b);
``(B) work in underserved rural and urban
communities;
``(C) teach and engage children in
experiential learning about agriculture,
gardening, nutrition, cooking, and where food
comes from; and
``(D) facilitate a connection between
elementary schools and secondary schools and
agricultural producers in the local and
regional area.
``(d) Accountability.--
``(1) In general.--The Secretary may require a
partner organization or other qualified entity to
collect and report any data on the activities carried
out under the Program, as determined by the Secretary.
``(2) Evaluation.--The Secretary shall--
``(A) conduct regular evaluations of the
activities carried out under the Program; and
``(B) 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 includes a
description of the results of each evaluation
conducted under subparagraph (A).
``(e) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out the Program
$25,000,000, to remain available until expended.
``(2) Administration.--Paragraphs (4), (7), (8),
and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)) shall apply with respect to the making of a
competitive grant under this section.
``(3) Maintenance of effort.--Funds made available
under paragraph (1) shall be used only to supplement,
not to supplant, the amount of Federal funding
otherwise expended for nutrition, research, and
extension programs of the Department.''.
SEC. 4210. 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. 4211. TERMINATION OF EXISTING AGREEMENT.
Effective beginning on the date of the enactment of this
Act, the memorandum of understanding entered into on July 22,
2004, by the Secretary of Agriculture of the United States
Department of Agriculture and the Secretary of Foreign Affairs
of the Republic of Mexico and known as the ``Partnership for
Nutrition Assistance Initiative'' is null and void.
SEC. 4212. REVIEW OF SOLE-SOURCE CONTRACTS IN FEDERAL NUTRITION
PROGRAMS.
(a) In General.--The Secretary shall conduct an evaluation
of sole-source contracts in Federal nutrition programs carried
out by the Secretary, and the effect the contracts have on
program participation, program goals, nonprogram consumers,
retailers, and free market dynamics.
(b) Report.--Not later than 1 year 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 that describes the findings of the review
conducted under subsection (a).
SEC. 4213. 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),
subject to the availability of appropriations, 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.
SEC. 4214. PILOT PROJECT FOR CANNED, FROZEN, OR DRIED FRUITS AND
VEGETABLES.
(a) In General.--Subject to subsection (b), in the 2014-
2015 school year, the Secretary shall carry out a pilot project
in schools participating in the Fresh Fruit and Vegetable
Program under section 19 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769a) (referred to in this section
as the ``Program''), in not less than 5 States, to evaluate the
impact of allowing schools to offer canned, frozen, or dried
fruits and vegetables as part of the Program.
(b) Requirements.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall establish criteria
for the conditions under which canned, frozen, or dried fruits
and vegetables may be offered, which shall be in accordance
with 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).
(c) Evaluation.--With respect to the pilot project, the
Secretary shall evaluate--
(1) the impacts on fruit and vegetable consumption
at the schools participating in the pilot project;
(2) the impacts of the pilot project on school
participation in the Program and operation of the
Program;
(3) the implementation strategies used by the
schools participating in the pilot project;
(4) the acceptance of the pilot project by key
stakeholders; and
(5) such other outcomes as are determined by the
Secretary.
(d) Reports.--
(1) Interim report.--Not later than January 1,
2015, the Secretary shall submit to the Committee on
Education and Workforce of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the
results of the evaluation under subsection (c).
(2) Final report .--On completion of the pilot
project, the Secretary shall submit to the Committee on
Education and Workforce of the House of Representatives
and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes the
results of the evaluation under subsection (c).
(e) Notice of Availability.--As soon as practicable after
the date on which the Secretary establishes the criteria for
the pilot project under subsection (b), the Secretary shall
notify potentially eligible schools of the potential
eligibility of the schools for participation in the pilot
project.
(f) Relationship to Fresh Fruit and Vegetable Program.--
Nothing in this section permits a school that is not a part of
the pilot project to offer anything other than fresh fruits and
vegetables through the Program.
(g) Funding.--The Secretary shall use $5,000,000 of amounts
otherwise made available to the Secretary to carry out this
section.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS.
(a) In General.--Section 302(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1922(a)) is amended--
(1) by striking ``(a) In General.--The'' and
inserting the following:
``(a) In General.--
``(1) Eligibility requirements.--The'';
(2) in the first sentence, by striking ``and
limited liability companies'' and inserting ``limited
liability companies, and such other legal entities as
the Secretary considers appropriate,'';
(3) in the second sentence, by redesignating
paragraphs (1) through (4) as subparagraphs (A) through
(D), respectively;
(4) in each of the second and third sentences, by
striking ``and limited liability companies'' each place
it appears and inserting ``limited liability companies,
and such other legal entities'';
(5) in the third sentence--
(A) by striking ``clause (3)'' and
inserting ``subparagraph (C)'';
(B) by striking ``clause (4)'' and
inserting ``subparagraph (D)''; and
(6) by adding at the end the following:
``(2) Special rules.--
``(A) Eligibility of certain operating-only
entities.--An entity that is or will become
only the operator of a family farm shall be
considered to meet the owner-operator
requirements of paragraph (1) if the
individuals that are the owners of the family
farm own more than 50 percent (or such other
percentage as the Secretary determines is
appropriate) of the entity.
``(B) Eligibility of certain embedded
entities.--An entity that is an owner-operator
described in paragraph (1), or an operator
described in subparagraph (A) of this paragraph
that is owned, in whole or in part, by other
entities, shall be considered to meet the
direct ownership requirement imposed under
paragraph (1) if at least 75 percent of the
ownership interests of each embedded entity of
the entity is owned directly or indirectly by
the individuals that own the family farm.''.
(b) Direct Farm Ownership Experience Requirement.--Section
302(b)(1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922(b)(1)) is amended in the matter preceding
subparagraph (A) by inserting ``or has other acceptable
experience for a period of time, as determined by the
Secretary,'' after ``3 years''.
(c) Conforming Amendments.--
(1) Section 304(c)(2) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1924(c)(2)) by striking
``paragraphs (1) and (2) of section 302(a)'' and
inserting ``subparagraphs (A) and (B) of section
302(a)(1)''.
(2) Section 310D(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1934(a)) is amended in
the second sentence--
(A) by inserting after ``partnership'' the
following: ``, or such other legal entities as
the Secretary considers appropriate,''; and
(B) by striking ``or partners'' each place
it appears and inserting ``partners, or
owners''.
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
(a) Eligibility.--Section 304(c) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1924(c)) is amended by
striking ``or limited liability companies'' and inserting
``limited liability companies, or such other legal entities as
the Secretary considers appropriate''.
(b) Limitations Applicable to Loan Guarantees.--Section
304(e) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1924(e)) is amended by striking ``shall be 75 percent of
the principal amount of the loan.'' and inserting ``shall be--
``(1) 80 percent of the principal amount of the
loan; or
``(2) in the case of a producer that is a qualified
socially disadvantaged farmer or rancher or a beginning
farmer or rancher, 90 percent of the principal amount
of the loan.''.
(c) Extension of Program.--Section 304 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1924) is amended by
striking subsection (h) and inserting the following:
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$150,000,000 for each of fiscal years 2014 through 2018.''.
SEC. 5003. JOINT FINANCING ARRANGEMENTS.
Section 307(a)(3) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(3)) is amended by striking
subparagraph (D) and inserting the following:
``(D) Joint financing arrangements.--If a
direct farm ownership loan is made under this
subtitle 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 a rate equal to
the greater of--
``(i) the difference between--
``(I) 2 percent; and
``(II) the interest rate
for farm ownership loans under
this subtitle; or
``(ii) 2.5 percent.''.
SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL REQUIREMENT.
Section 307 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1927) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection
(d).
SEC. 5005. DOWN PAYMENT LOAN PROGRAM.
(a) In General.--Section 310E(b)(1)(C) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is
amended by striking ``$500,000'' and inserting ``$667,000''.
(b) Technical Correction.--Section 310E(b) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b))
is amended by striking paragraph (2) (as added by section 7(a)
of Public Law 102-554; 106 Stat. 4145).
Subtitle B--Operating Loans
SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS.
Section 311(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941(a)) is amended--
(1) by striking ``(a) In General.--The'' and
inserting the following:
``(a) In General.--
``(1) Eligibility requirements.--The'';
(2) in the first sentence, by striking ``and
limited liability companies'' and inserting `` limited
liability companies, and such other legal entities as
the Secretary considers appropriate,'';
(3) in the second sentence, by redesignating
paragraphs (1) through (4) as subparagraphs (A) through
(D), respectively;
(4) in each of the second and third sentences, by
striking ``and limited liability companies'' each place
it appears and inserting ``limited liability companies,
and such other legal entities'';
(5) in the third sentence--
(A) by striking ``clause (3)'' and
inserting ``subparagraph (C)''; and
(B) by striking ``clause (4)'' and
inserting ``subparagraph (D)''; and
(6) by adding at the end the following:
``(2) Special rule.--An entity that is an operator
described in paragraph (1) that is owned, in whole or
in part, by other entities, shall be considered to meet
the direct ownership requirement imposed under
paragraph (1) if at least 75 percent of the ownership
interests of each embedded entity of the entity is
owned directly or indirectly by the individuals that
own the family farm.''.
SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIREMENT FOR OPERATING
LOANS TO YOUTH.
Section 311(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941(b)(1)) is amended by striking
``who are rural residents''.
SEC. 5103. DEFAULTS BY YOUTH LOAN BORROWERS.
Section 311(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941(b)) is amended by adding at the
end the following:
``(5) Equitable considerations for default.--
``(A) Debt forgiveness.--
``(i) In general.--The Secretary
may, on a case-by-case basis, provide
debt forgiveness to a borrower for a
loan made under this subsection if the
borrower was unable to timely repay the
loan due to circumstances beyond the
control of the borrower, as determined
by the Secretary, including any natural
disaster, act of terrorism, or other
man-made disaster that results in an
inordinate level of damage or
disruption severely affecting the
borrower.
``(ii) Eligibility for future
loans.--Notwithstanding any other
provision of law, debt forgiveness
provided under this subparagraph shall
not be used by any Federal agency in
determining the eligibility of the
borrower for any loan made or
guaranteed by the agency.
``(B) Education loans.--Notwithstanding any
other provision of law, if a borrower becomes
delinquent or is provided with debt forgiveness
with respect to a youth loan made under this
subsection, the borrower shall not become
ineligible, as a result of the delinquency or
debt forgiveness, to receive loans and loan
guarantees from the Federal Government to pay
for education expenses of the borrower.''.
SEC. 5104. TERM LIMITS ON DIRECT OPERATING LOANS.
Section 311(c) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941(c)) is amended by adding at the
end the following:
``(5) Annual report on term limits on direct
operating loans.--
``(A) In general.--The Secretary shall
prepare a report annually that describes--
``(i) the status of the direct
operating loan program of the
Department of Agriculture; and
``(ii) the impact of term limits on
direct loan borrowers.
``(B) Demographic information.--
``(i) In general.--The report shall
provide a demographic breakdown, on a
State-by-State basis, of--
``(I) all direct loan
borrowers; and
``(II) borrowers that have
reached the eligibility limit
for direct lending programs
during the previous calendar
year.
``(ii) Demographic information.--
The available demographic information
shall include, to the maximum extent
practicable, a description of race or
ethnicity, gender, age, type of farm or
ranch, financial classification, number
of years of indebtedness, veteran
status, and other similar information,
as determined by the Secretary.
``(C) Additional content.--In addition to
information described in subparagraph (B), the
report shall provide--
``(i) a demographic analysis of the
borrowers impacted by term limits;
``(ii) information on the
conditions impacting the direct lending
portfolio of the Department of
Agriculture, including impacts by
region and agriculture sector, and
credit availability within those
regions and sectors;
``(iii) to the maximum extent
practicable, information on the status
of borrower operations impacted by term
limits; and
``(iv) recommendations, if
appropriate, to address any
identifiable unmet credit needs.
``(D) Submission.--The Secretary shall--
``(i) annually submit to the
Committee on Agriculture of the House
of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a copy of the report; and
``(ii) make the report available to
the public, including posting the
report on the website of the Department
of Agriculture.''.
SEC. 5105. VALUATION OF LOCAL OR REGIONAL CROPS.
Section 312 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1942) is amended by adding at the end the
following:
``(e) Valuation of Local or Regional Crops.--
``(1) In general.--The Secretary shall develop ways
to determine unit prices (or other appropriate forms of
valuation) for crops and other agricultural products,
the end use of which is intended to be in locally or
regionally produced agricultural food products, to
facilitate lending to local and regional food
producers.
``(2) Price history.--The Secretary shall implement
a mechanism for local and regional food producers to
establish price history for the crops and other
agricultural products produced by local and regional
food producers.''.
SEC. 5106. MICROLOANS.
(a) In General.--Section 313 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1943) is amended by adding at
the end the following:
``(c) Microloans.--
``(1) In general.--Subject to paragraph (2), the
Secretary may establish a program to make or guarantee
microloans.
``(2) Limitations.--The Secretary shall not make or
guarantee a microloan under this subsection that would
cause the total principal indebtedness outstanding at
any 1 time for microloans made under this title to any
1 borrower to exceed $50,000.
``(3) Applications.--To the maximum extent
practicable, the Secretary shall limit the
administrative burdens and streamline the application
and approval process for microloans under this
subsection.
``(4) Cooperative lending pilot projects.--
``(A) In general.--Subject to subparagraph
(B), during each of the 2014 through 2018
fiscal years, the Secretary may carry out a
pilot project to make loans to community
development financial institutions, as the
Secretary determines appropriate--
``(i) to make or guarantee
microloans consistent with the terms
provided under this subsection; and
``(ii) to provide business,
financial, marketing, and credit
management services to microloan
borrowers.
``(B) Requirements.--Prior to making a loan
to an institution described in subparagraph
(A), the Secretary shall--
``(i) review and approve--
``(I) the loan loss reserve
fund for microloans established
by the institution; and
``(II) the underwriting
standards for microloans of the
institution; and
``(ii) establish such other
requirements for making a loan to the
institution as the Secretary determines
necessary.
``(C) Eligibility.--To be eligible for a
loan under subparagraph (A), an institution
described in subparagraph (A) shall, as
determined by the Secretary--
``(i) have the legal authority
necessary to carry out the actions
described in subparagraph (A);
``(ii) have a proven track record
of successfully assisting agricultural
borrowers; and
``(iii) have the services of a
staff with appropriate loan making and
servicing expertise.
``(D) Oversight.--Not less often than
annually, on a date determined by the
Secretary, an institution that has a loan under
this paragraph shall provide to the Secretary
such information as the Secretary may require
to ensure that the services provided by the
institution are serving the purposes of this
subsection.
``(E) Limitation.--The Secretary shall not
make more than $10,000,000 in loans under this
paragraph in any fiscal year.''.
(b) Conforming Amendments.--
(1) Section 311(c) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941(c)) is amended by
striking paragraph (2) and inserting the following:
``(2) Definition of direct operating loan.--In this
subsection, the term `direct operating loan' does not
include--
``(A) a loan made to a youth under
subsection (b); or
``(B) a microloan made to a beginning
farmer or rancher or 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)).''.
(2) Section 312(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1942(a)) is amended in
the matter preceding paragraph (1) by inserting
``(including a microloan, as defined by the
Secretary)'' after ``A direct loan''.
(3) Section 316(a)(2) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1946(a)(2)) is amended
in the matter preceding subparagraph (A) by inserting
``a microloan to a beginning farmer or rancher or
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)), or'' after ``The
interest rate on''.
SEC. 5107. TERM LIMITS ON GUARANTEED OPERATING LOANS.
Section 319 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1949) is amended--
(1) in subsection (a), by striking ``(a) Graduation
Plan.--''; and
(2) by striking subsection (b).
Subtitle C--Emergency Loans
SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS.
Section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) is amended--
(1) by striking ``owner-operators (in the case of
loans for a purpose under subtitle A) or operators (in
the case of loans for a purpose under subtitle B)''
each place it appears and inserting ``(in the case of
farm ownership loans in accordance with subtitle A)
owner-operators or operators, or (in the case of loans
for a purpose under subtitle B) operators'';
(2) in the first sentence--
(A) by inserting ``, or such other legal
entities as the Secretary considers
appropriate'' after ``limited liability
companies'' the first place it appears;
(B) by inserting ``, or other legal
entities'' after ``limited liability
companies'' the second place it appears; and
(C) by striking ``and limited liability
companies,'' and inserting ``limited liability
companies, and such other legal entities'';
(3) in the second sentence, by striking ``ownership
and operator'' and inserting ``ownership or operator'';
and
(4) by adding at the end the following: ``An entity
that is an owner-operator or operator described in this
subsection shall be considered to meet the direct
ownership requirement imposed under this subsection if
at least 75 percent of the ownership interests of each
embedded entity of the entity is owned directly or
indirectly by the individuals that own the family
farm.''.
Subtitle D--Administrative Provisions
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
PILOT PROGRAM.
Section 333B(h) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1983b(h)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 5302. FARMER LOAN PILOT PROJECTS.
Subtitle D of the Consolidated Farm and Rural Development
Act is amended by inserting after section 333C (7 U.S.C. 1983c)
the following:
``SEC. 333D. FARMER LOAN PILOT PROJECTS.
``(a) In General.--The Secretary may conduct pilot projects
of limited scope and duration that are consistent with subtitle
A through this subtitle to evaluate processes and techniques
that may improve the efficiency and effectiveness of the
programs carried out under subtitle A through 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. 5303. DEFINITION OF QUALIFIED BEGINNING FARMER OR RANCHER.
(a) In General.--Section 343(a)(11) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)(11)) is
amended in subparagraphs (C) and (D)--
(1) by striking ``or joint operation,'' each place
it appears and inserting ``joint operation, or such
other legal entity as the Secretary considers
appropriate,'';
(2) by striking ``or joint operators,'' each place
it appears and inserting ``joint operators, or
owners,''; and
(3) in subparagraph (D), by striking ``corporation,
has stockholders,'' each place it appears in clauses
(i)(II)(bb) and (ii)(II)(bb) and inserting
``cooperative, corporation, partnership, joint
operation, or other such legal entity as the Secretary
considers appropriate, has members, stockholders,
partners, or joint operators,''.
(b) Modification of Acreage Ownership Limitation.--Section
343(a)(11)(F) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking ``median
acreage'' and inserting ``average acreage''.
SEC. 5304. LOAN AUTHORIZATION LEVELS.
Section 346(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1994(b)(1)) is amended in the matter
preceding subparagraph (A) by striking ``2012'' and inserting
``2018''.
SEC. 5305. LOAN FUND SET-ASIDES.
Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is
amended--
(1) by striking ``2012'' and inserting ``2018'';
and
(2) by striking ``of the total amount''.
SEC. 5306. BORROWER TRAINING.
Section 359(c)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2006a(c)(2)) is amended by striking
``section 302(a)(2) or 311(a)(2)'' and inserting ``section
302(a)(1)(B) or 311(a)(1)(B)''.
Subtitle E--Miscellaneous
SEC. 5401. 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
``2018''.
SEC. 5402. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND.
The first section of Public Law 91-229 (25 U.S.C. 488) is
amended--
(1) in subsection (a), in the first sentence, by
striking ``loans from'' and all that follows through
``1929)'' and inserting ``direct loans in a manner
consistent with direct loans pursuant to subtitle D of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.)''; and
(2) in subsection (b)(1)--
(A) by striking ``pursuant to section
205(c) of the Indian Land Consolidation Act (25
U.S.C. 2204(c))''; and
(B) 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. 5403. 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.
SEC. 5404. COMPENSATION DISCLOSURE BY FARM CREDIT SYSTEM INSTITUTIONS.
(a) Findings.--Congress finds that --
(1) the reasonable disclosure to stockholders by
Farm Credit System institutions regarding the
compensation of Farm Credit System institution senior
officers is beneficial to stockholders' understanding
of the operation of their institutions;
(2) transparency regarding compensation practices
reinforces the cooperative nature of Farm Credit System
institutions;
(3) the unique cooperative structure of the Farm
Credit System should be considered when promulgating
rules;
(4) the participation of stockholders in the
election of the boards of directors of Farm Credit
System institutions provides stockholders the
opportunity to participate in the management of their
institutions;
(5) as representatives of stockholders, the boards
of directors of Farm Credit System institutions
importantly establish and oversee the compensation
practices of Farm Credit System institutions to ensure
the safe and sound operation of those institutions; and
(6) any regulation should strengthen and not hinder
the ability of Farm Credit System boards of directors
to oversee compensation practices.
(b) Implementation.--Not later than 60 days after the date
of enactment of this Act, the Farm Credit Administration shall
review its rules to reflect Congressional intent that a primary
responsibility of the boards of directors of Farm Credit System
institutions, as elected representatives of their stockholders,
is to oversee compensation practices.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.
Section 306(a)(2)(B)(vii) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended
by striking ``2012'' and inserting ``2018''.
SEC. 6002. ELIMINATION OF RESERVATION OF COMMUNITY FACILITIES GRANT
PROGRAM FUNDS.
Section 306(a)(19) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(19)) is amended by striking
subparagraph (C).
SEC. 6003. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended by striking
paragraph (22) and inserting the following:
``(22) Rural water and wastewater circuit rider
program.--
``(A) 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 the date of enactment
of this clause, as determined by the
Secretary; and
``(ii) receives funding from the
Secretary, acting through the Rural
Utilities Service.
``(B) Authorization of appropriations.--
There is authorized to be appropriated to carry
out this paragraph $20,000,000 for fiscal year
2014 and each fiscal year thereafter.''.
SEC. 6004. USE OF LOAN GUARANTEES FOR COMMUNITY FACILITIES.
Section 306(a)(24) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(24)) is amended by adding at
the end the following:
``(C) Use of loan guarantees for community
facilities.--The Secretary shall consider the
benefits to communities that result from using
loan guarantees in carrying out the community
facilities program and, to the maximum extent
practicable, use guarantees to enhance
community involvement.''.
SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a)(25)(C) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(25)(C)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 6006. ESSENTIAL COMMUNITY FACILITIES TECHNICAL ASSISTANCE AND
TRAINING.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) is amended by adding at the
end the following:
``(26) Essential community facilities technical
assistance and training.--
``(A) In general.--The Secretary may make
grants to public bodies and private nonprofit
corporations (such as States, counties, cities,
townships, and incorporated towns and villages,
boroughs, authorities, districts, and Indian
tribes on Federal and State reservations) that
will serve rural areas for the purpose of
enabling the public bodies and private
nonprofit corporations to provide to
associations described in paragraph (1)
technical assistance and training, with respect
to essential community facilities programs
authorized under this subsection--
``(i) to assist communities in
identifying and planning for community
facility needs;
``(ii) to identify public and
private resources to finance community
facility needs;
``(iii) to prepare reports and
surveys necessary to request financial
assistance to develop community
facilities;
``(iv) to prepare applications for
financial assistance;
``(v) to improve the management,
including financial management, related
to the operation of community
facilities; or
``(vi) to assist with other areas
of need identified by the Secretary.
``(B) Selection priority.--In selecting
recipients of grants under this paragraph, the
Secretary shall give priority to private,
nonprofit, or public organizations that have
experience in providing technical assistance
and training to rural entities.
``(C) Funding.--Not less than 3 nor more
than 5 percent of any funds appropriated to
carry out each of the essential community
facilities grant, loan and loan guarantee
programs as authorized under this subsection
for a fiscal year shall be reserved for grants
under this paragraph.''.
SEC. 6007. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
PROGRAM.
Section 306A(i)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 6008. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
Section 306D(d)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 6009. HOUSEHOLD WATER WELL SYSTEMS.
Section 306E(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926e(d)) is amended by striking
``$10,000,000 for each of fiscal years 2008 through 2012'' and
inserting ``$5,000,000 for each of fiscal years 2014 through
2018''.
SEC. 6010. RURAL BUSINESS AND INDUSTRY LOAN PROGRAM.
(a) In General.--Section 310B(a)(2)(A) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932(a)(2)(A)) is
amended by inserting ``(including through the financing of
working capital)'' after ``employment''.
(b) Greater Flexibility for Adequate Collateral Through
Accounts Receivable.--Section 310B(g)(7) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932(g)(7)) is
amended--
(1) by striking ``In determining'' and inserting
the following:
``(A) In general.--In determining''; and
(2) by adding at the end the following:
``(B) Accounts receivable.--In the
discretion of the Secretary, if the Secretary
determines that the action would not create or
otherwise contribute to an unreasonable risk of
default or loss to the Federal Government, the
Secretary may take accounts receivable as
security for the obligations entered into in
connection with loans and a borrower may use
accounts receivable as collateral to secure a
loan made or guaranteed under this
subsection.''.
(c) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall promulgate such
regulations as are necessary to implement the amendments made
by this section.
SEC. 6011. SOLID WASTE MANAGEMENT GRANTS.
Section 310B(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(b)) is amended--
(1) by striking ``The Secretary'' and by inserting
the following:
``(1) In general.--The Secretary''; and
(2) by adding at the end the following
``(2) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $10,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 6012. RURAL BUSINESS DEVELOPMENT GRANTS.
(a) In General.--Section 310B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932) is amended by striking
subsection (c) and inserting the following:
``(c) Rural Business Development Grants.--
``(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.--
``(A) In general.--There is authorized to
be appropriated to the Secretary to carry out
this subsection $65,000,000 for each of fiscal
years 2014 through 2018, to remain available
until expended.
``(B) Allocation.--Of the funds made
available under subparagraph (A) for a fiscal
year, not more than 10 percent shall be used
for the purposes described in paragraph
(3)(A).''.
(b) Conforming Amendment.--Section 306(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a))
is amended by striking paragraph (11).
SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.
Section 310B(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(e)) is amended--
(1) by redesignating paragraph (12) as paragraph
(13);
(2) by inserting after paragraph (11) the
following:
``(12) Interagency working group.--Not later than
90 days after the date of enactment of the Agricultural
Act of 2014, 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.''; and
(3) in paragraph (13) (as so redesignated), by
striking ``$50,000,000 for each of fiscal years 2008
through 2012'' and inserting ``$40,000,000 for each of
fiscal years 2014 through 2018''.
SEC. 6014. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.
Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) is amended
by striking ``2012'' and inserting ``2018''.
SEC. 6015. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS PROGRAM.
Section 310B(i)(4) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(i)(4)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 6016. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
Section 310B(j) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(j)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 6017. INTERMEDIARY RELENDING PROGRAM.
(a) In General.--Subtitle A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1922 et seq.) is amended by
adding at the end the following:
``SEC. 310H. INTERMEDIARY RELENDING PROGRAM.
``(a) In General.--The Secretary may make or guarantee
loans to eligible entities described in subsection (b) so that
the eligible entities may relend the funds to individuals and
entities for the purposes described in subsection (c).
``(b) Eligible Entities.--Entities eligible for loans and
loan guarantees described in subsection (a) are--
``(1) public agencies;
``(2) Indian tribes;
``(3) cooperatives; and
``(4) nonprofit corporations.
``(c) Eligible Purposes.--The proceeds from loans made or
guaranteed by the Secretary pursuant to subsection (a) may be
relent by eligible entities for projects that--
``(1) predominately serve communities in rural
areas; and
``(2) as determined by the Secretary--
``(A) promote community development;
``(B) establish new businesses;
``(C) establish and support microlending
programs; and
``(D) create or retain employment
opportunities.
``(d) Limitation.--The Secretary shall not make loans under
section 623(a) of the Community Economic Development Act of
1981 (42 U.S.C. 9812(a)).
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000 for
each of fiscal years 2014 through 2018.''.
(b) Conforming Amendments.--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 adding ``and'' at the
end;
(2) in subparagraph (B), by striking ``; and'' and
inserting a period; and
(3) by striking subparagraph (C).
SEC. 6018. RURAL COLLEGE COORDINATED STRATEGY.
Section 331 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981) is amended by adding at the end the
following:
``(d) Rural College Coordinated Strategy.--
``(1) In general.--The Secretary shall develop a
coordinated strategy across the relevant programs
within the Rural Development mission areas to serve the
specific, local needs of rural communities when making
investments in rural community colleges and technical
colleges through other authorities in effect on the
date of enactment of this subsection.
``(2) Consultation.--In developing a coordinated
strategy, the Secretary shall consult with groups
representing rural-serving community colleges and
technical colleges to coordinate critical investments
in rural community colleges and technical colleges
involved in workforce training.
``(3) Administration.--Nothing in this subsection
provides a priority for funding under authorities in
effect on the date of enactment of this subsection.
``(4) Use.--The Secretary shall use the coordinated
strategy and information developed for the strategy to
more effectively serve rural communities with respect
to investments in community colleges and technical
colleges.''.
SEC. 6019. RURAL WATER AND WASTE DISPOSAL INFRASTRUCTURE.
Section 333 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1983) is amended--
(1) in the matter preceding paragraph (1), by
striking ``require'';
(2) in paragraph (1), by inserting ``require''
after ``(1)'';
(3) in paragraph (2), by inserting ``, require''
after ``314'';
(4) in paragraph (3), by inserting ``require''
after ``loans,'';
(5) in paragraph (4)--
(A) by inserting ``require'' after ``(4)'';
and
(B) by striking ``and'' after the
semicolon;
(6) in paragraph (5)--
(A) by inserting ``require'' after ``(5)'';
and
(B) by striking the period at the end and
inserting ``; and''; and
(7) by adding at the end the following:
``(6) in the case of water and waste disposal
direct and guaranteed loans provided under section 306,
encourage, to the maximum extent practicable, private
or cooperative lenders to finance rural water and waste
disposal facilities by--
``(A) maximizing the use of loan guarantees
to finance eligible projects in rural
communities in which the population exceeds
5,500;
``(B) maximizing the use of direct loans to
finance eligible projects in rural communities
if the impact on ratepayers will be material
when compared to financing with a loan
guarantee;
``(C) establishing and applying a
materiality standard when determining the
difference in impact on ratepayers between a
direct loan and a loan guarantee;
``(D) in the case of projects that require
interim financing in excess of $500,000,
requiring that the projects initially seek the
financing from private or cooperative lenders;
and
``(E) determining if an existing direct
loan borrower can refinance with a private or
cooperative lender, including with a loan
guarantee, prior to providing a new direct
loan.''.
SEC. 6020. SIMPLIFIED APPLICATIONS.
(a) In General.--Section 333A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1983a) is amended by adding at
the end the following:
``(h) Simplified Application Forms.--Except as provided in
subsection (g)(2), the Secretary shall, to the maximum extent
practicable, develop a simplified application process,
including a single page application if practicable, for grants
and relending authorized under sections 306, 306C, 306D, 306E,
310B(b), 310B(c), 310B(e), 310B(f), 310H, 379B, and 379E.''.
(b) Report to Congress.--Not later than 2 years 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 that contains an evaluation of the
implementation of the amendment made by subsection (a).
SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Section 378 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2008m) is amended--
(1) in subsection (g)(1), by striking ``2012'' and
inserting ``2018''; and
(2) in subsection (h), by striking ``2012'' and
inserting ``2018''.
SEC. 6022. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.
Section 379B(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008p(d)) is amended by striking
subsection (d) and inserting the following:
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2014 through 2018.''.
SEC. 6023. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.
Section 379E(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008s(d)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking
``and'' after the semicolon at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) $3,000,000 for each of fiscal years
2014 through 2018.''; and
(2) in paragraph (2), by striking ``2012'' and
inserting ``2018''.
SEC. 6024. HEALTH CARE SERVICES.
Section 379G(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008u(e)) is amended by striking
``2012'' and inserting ``2018''.
SEC. 6025. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) is amended by adding at the end the
following:
``SEC. 379H. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT.
``(a) In General.--In the case of any rural development
program described in subsection (d)(2), the Secretary may give
priority to an application for a project that, as determined
and approved by the Secretary--
``(1) meets the applicable eligibility requirements
of this title;
``(2) will be carried out solely in a rural area;
and
``(3) supports strategic community and economic
development plans on a multijurisdictional basis.
``(b) Rural Area.--For purposes of subsection (a)(2), the
Secretary shall consider an application to be for a project
that will be carried out solely in a rural area only if--
``(1) in the case of an application for a project
in the rural community facilities category described in
subsection (d)(2)(A), the project will be carried out
in a rural area described in section 343(a)(13)(C));
``(2) in the case of an application for a project
in the rural utilities category described in subsection
(d)(2)(B), the project will be carried out in a rural
area described in section 343(a)(13)(B); and
``(3) in the case of an application for a project
in the rural business and cooperative development
category described in subsection (d)(2)(C), the project
will be carried out in a rural area described in
section 343(a)(13)(A).
``(c) Evaluation.--
``(1) In general.--In evaluating strategic
applications, the Secretary shall give a higher
priority to strategic applications for a plan described
in subsection (a) that demonstrates to the Secretary--
``(A) 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;
``(B) an understanding of the applicable
regional resources that could support the plan,
including natural resources, human resources,
infrastructure, and financial resources;
``(C) investment from other Federal
agencies;
``(D) investment from philanthropic
organizations; and
``(E) clear objectives for the plan and the
ability to establish measurable performance
measures and to track progress toward meeting
the objectives.
``(2) Consistency with plans.--Applications
involving State, county, municipal, or tribal
governments shall include an indication of consistency
with an adopted regional economic or community
development plan.
``(d) Funds.--
``(1) In general.--Subject to paragraph (3) and
subsection (e), the Secretary may reserve for projects
that support multijurisdictional strategic community
and economic development plans described in subsection
(a) an amount that does not exceed 10 percent of the
funds made available for a fiscal year for a functional
category described in paragraph (2).
``(2) Functional categories.--The functional
categories described in this subsection are the
following:
``(A) Rural community facilities
category.--The rural community facilities
category consists of all amounts made available
for community facility grants and direct and
guaranteed loans under paragraph (1), (19),
(20), (21), (24), or (25) of section 306(a).
``(B) Rural utilities category.--The rural
utilities category consists of all amounts made
available for--
``(i) water or waste disposal
grants or direct or guaranteed loans
under paragraph (1), (2), or (24) of
section 306(a);
``(ii) rural water or wastewater
technical assistance and training
grants under section 306(a)(14);
``(iii) emergency community water
assistance grants under section 306A;
or
``(iv) solid waste management
grants under section 310B(b).
``(C) Rural business and cooperative
development category.--The rural business and
cooperative development category consists of
all amounts made available for--
``(i) business and industry direct
and guaranteed loans under section
310B(a)(2)(A); or
``(ii) rural business development
grants under section 310B(c).
``(3) Period.--The reservation of funds described
in paragraph (2) may only extend through June 30 of the
fiscal year in which the funds were first made
available.
``(e) Approved Applications.--
``(1) In general.--Any applicant who submitted a
rural development application that was approved before
the date of enactment of this section may amend the
application to qualify for the funds reserved under
subsection (d)(1).
``(2) Rural utilities.--Any rural development
application authorized under section 306(a)(2),
306(a)(14), 306(a)(24), 306A, or 310B(b) and approved
by the Secretary before the date of enactment of this
section shall be eligible for the funds reserved under
subsection (d)(1) on the same basis as the applications
submitted under this section until September 30,
2016.''.
SEC. 6026. DELTA REGIONAL AUTHORITY.
(a) Authorization of Appropriations.--Section 382M(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-12(a)) is amended by striking ``2012'' and inserting
``2018''.
(b) Termination of Authority.--Section 382N of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
13) is amended by striking ``2012'' and inserting ``2018''.
SEC. 6027. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
(a) Audit.--Section 383L(c) of the Consolidated Farm and
Rural Development Ac (7 U.S.C. 2009bb-10(c)) is amended by
inserting ``for any fiscal year for which funds are
appropriated'' after ``annual basis''.
(b) Authorization of Appropriations.--Section 383N(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009bb-12(a)) is amended by striking ``2012'' and inserting
``2018''.
(c) Termination of Authority.--Section 383O of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-
13) is amended by striking ``2012'' and inserting ``2018''.
SEC. 6028. RURAL BUSINESS INVESTMENT PROGRAM.
Section 384S of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009cc-18) is amended by striking ``$50,000,000
for the period of fiscal years 2008 through 2012'' and
inserting ``$20,000,000 for each of fiscal years 2014 through
2018''.
Subtitle B--Rural Electrification Act of 1936
SEC. 6101. FEES FOR CERTAIN LOAN GUARANTEES.
The Rural Electrification Act of 1936 is amended by
inserting after section 4 (7 U.S.C. 904) the following:
``SEC. 5. FEES FOR CERTAIN LOAN GUARANTEES.
``(a) In General.--For electrification baseload generation
loan guarantees, the Secretary shall, at the request of the
borrower, charge an upfront fee to cover the costs of the loan
guarantee.
``(b) Fee.--The fee described in subsection (a) for a loan
guarantee shall be equal to the costs of the loan guarantee
(within the meaning of section 502(5)(C) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)(C))).
``(c) Limitation.--Funds received from a borrower to pay
the fee described in this section shall not be derived from a
loan or other debt obligation that is made or guaranteed by the
Federal Government.''.
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
``2018''.
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
``2018''.
SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
(a) In General.--Section 601 of the Rural Electrification
Act of 1936 (7 U.S.C. 950bb) is amended--
(1) in subsection (c), by striking paragraph (2)
and inserting the following:
``(2) Priority.--In making loans or loan guarantees
under paragraph (1), the Secretary shall--
``(A) establish not less than 2 evaluation
periods for each fiscal year to compare loan
and loan guarantee applications and to
prioritize loans and loan guarantees to all or
part of rural communities that do not have
residential broadband service that meets the
minimum acceptable level of broadband service
established under subsection (e);
``(B) give the highest priority to
applicants that offer to provide broadband
service to the greatest proportion of unserved
households or households that do not have
residential broadband service that meets the
minimum acceptable level of broadband service
established under subsection (e), as--
``(i) certified by the affected
community, city, county, or designee;
or
``(ii) demonstrated on--
``(I) the broadband map of
the affected State if the map
contains address-level data; or
``(II) the National
Broadband Map if address-level
data is unavailable; and
``(C) provide equal consideration to all
qualified applicants, including applicants that
have not previously received loans or loan
guarantees under paragraph (1); and
``(D) give priority to applicants that
offer in the applications of the applicants to
provide broadband service not predominantly for
business service, if at least 25 percent of the
customers in the proposed service territory are
commercial interests.'';
(2) in subsection (d)--
(A) in paragraph (1)(A), by striking clause
(i) and inserting the following:
``(i) demonstrate the ability to
furnish, improve in order to meet the
minimum acceptable level of broadband
service established under subsection
(e), or extend broadband service to all
or part of an unserved rural area or an
area below the minimum acceptable level
of broadband service established under
subsection (e);'';
(B) in paragraph (2)--
(i) in subparagraph (A), by
striking clause (i) and inserting the
following:
``(i) not less than 15 percent of
the households in the proposed service
territory are unserved or have service
levels below the minimum acceptable
level of broadband service established
under subsection (e); and'';
(ii) in the heading of subparagraph
(B), by striking ``25''; and
(iii) in subparagraph (C)--
(I) in the subparagraph
heading, by striking ``3 or
more''; and
(II) by striking clause (i)
and inserting the following:
``(i) In general.--Except as
provided in clause (ii), subparagraph
(A)(ii) shall not apply to an incumbent
service provider in the portion of a
proposed service territory in which the
provider is upgrading broadband service
to meet the minimum acceptable level of
broadband service established under
subsection (e) for the existing
territory of the incumbent service
provider.'';
(C) in paragraph (3)(B), by adding at the
end the following:
``(iii) Information.--Information
submitted under this subparagraph shall
be--
``(I) certified by the
affected community, city,
county, or designee; or
``(II) demonstrated on--
``(aa) the
broadband map of the
affected State if the
map contains address-
level data; or
``(bb) the National
Broadband Map if
address-level data is
unavailable.'';
(D) by striking paragraph (5) and inserting
the following:
``(5) Notice requirements.--The Secretary shall
promptly provide a fully searchable database on the
website of the Rural Utilities Service that contains,
at a minimum--
``(A) notice of each application for a loan
or loan guarantee under this section describing
the application, including--
``(i) the identity of the
applicant;
``(ii) a description of each
application, including--
``(I) each area proposed to
be served by the applicant; and
``(II) the amount and type
of support requested by each
applicant;
``(iii) the status of each
application;
``(iv) the estimated number and
proportion relative to the service
territory of households without
terrestrial-based broadband service in
those areas; and
``(v) a list of the census block
groups or proposed service territory,
in a manner specified by the Secretary,
that the applicant proposes to service;
``(B) notice of each entity receiving
assistance under this section, including--
``(i) the name of the entity;
``(ii) the type of assistance being
received;
``(iii) the purpose for which the
entity is receiving the assistance;
``(iv) each semiannual report
submitted under paragraph (8)(A)
(redacted to protect any proprietary
information in the report); and
``(C) such other information as is
sufficient to allow the public to understand
assistance provided under this section.'';
(E) by adding at the end the following:
``(8) Reporting.--
``(A) In general.--The Secretary shall
require any entity receiving assistance under
this section to submit a semiannual report for
3 years after completion of the project, in a
format specified by the Secretary, that
describes--
``(i) the use by the entity of the
assistance, including new equipment and
capacity enhancements that support
high-speed broadband access for
educational institutions, health care
providers, and public safety service
providers (including the estimated
number of end users who are currently
using or forecasted to use the new or
upgraded infrastructure); and
``(ii) the progress towards
fulfilling the objectives for which the
assistance was granted, including--
``(I) the number and
location of residences and
businesses that will receive
new broadband service, existing
network service improvements,
and facility upgrades resulting
from the Federal assistance;
``(II) the speed of
broadband service;
``(III) the average price
of broadband service in a
proposed service area;
``(IV) any changes in
broadband service adoption
rates, including new
subscribers generated from
demand-side projects; and
``(V) any metrics the
Secretary determines to be
appropriate;
``(B) Additional reporting.--The Secretary
may require any additional reporting and
information by any recipient of any assistance
under this section so as to ensure compliance
with this section.
``(9) Default and deobligation.--In addition to
other authority under applicable law, the Secretary
shall establish written procedures for all broadband
programs administered by the Rural Utilities Service
under this or any other Act that, to the maximum extent
practicable--
``(A) recover funds from loan defaults;
``(B) deobligate any awards, less allowable
costs that demonstrate an insufficient level of
performance (including metrics determined by
the Secretary) or fraudulent spending, to the
extent funds with respect to the award are
available in the account relating to the
program established by this section;
``(C) award those funds, on a competitive
basis, to new or existing applicants consistent
with this section; and
``(D) minimize overlap among the programs.
``(10) Service area assessment.--The Secretary
shall, with respect to an application for assistance
under this section--
``(A) provide not less than 15 days for
broadband service providers to voluntarily
submit information concerning the broadband
services that the providers offer in the census
block groups or tracts described in paragraph
(5)(A)(v) so that the Secretary may assess
whether the applications submitted meet the
eligibility requirements under this section;
and
``(B) if no broadband service provider
submits information under subparagraph (A),
consider the number of providers in the census
block group or tract to be established by
using--
``(i) the most current National
Broadband Map of the National
Telecommunications and Information
Administration; or
``(ii) any other data regarding the
availability of broadband service that
the Secretary may collect or obtain
through reasonable efforts.'';
(3) in subsection (e)--
(A) by redesignating paragraph (2) as
paragraph (3); and
(B) by striking paragraph (1) and inserting
the following:
``(1) In general.--Subject to paragraph (2), for
purposes of this section, the minimum acceptable level
of broadband service for a rural area shall be at
least--
``(A) a 4-Mbps downstream transmission
capacity; and
``(B) a 1-Mbps upstream transmission
capacity.
``(2) Adjustments.--
``(A) In general.--At least once every 2
years, the Secretary shall review, and may
adjust through notice published in the Federal
Register, the minimum acceptable level of
broadband service established under paragraph
(1) to ensure that high quality, cost-effective
broadband service is provided to rural areas
over time.
``(B) Considerations.--In making an
adjustment to the minimum acceptable level of
broadband service under subparagraph (A), the
Secretary may consider establishing different
transmission rates for fixed broadband service
and mobile broadband service.'';
(4) in subsection (g), by striking paragraph (2)
and inserting the following:
``(2) Terms.--In determining the term and
conditions of a loan or loan guarantee, the Secretary
may--
``(A) consider whether the recipient is or
would be serving an area that is unserved or
has service levels below the minimum acceptable
level of broadband service established under
subsection (e); and
``(B) if the Secretary makes a
determination in the affirmative under
subparagraph (A), establish a limited initial
deferral period or comparable terms necessary
to achieve the financial feasibility and long-
term sustainability of the project.'';
(5) in subsection (j)--
(A) in paragraph (1), by inserting ``,
including any loan terms or conditions for
which the Secretary provided additional
assistance to unserved areas'' before the
semicolon at the end;
(B) in paragraph (5), by striking ``and''
after the semicolon at the end;
(C) in paragraph (6), by striking the
period at the end and inserting ``; and''; and
(D) by adding at the end the following:
``(7) the overall progress towards fulfilling the
goal of improving the quality of rural life by
expanding rural broadband access, as demonstrated by
metrics, including--
``(A) the number of residences and
businesses receiving new broadband services;
``(B) network improvements, including
facility upgrades and equipment purchases;
``(C) average broadband speeds and prices
on a local and statewide basis;
``(D) any changes in broadband adoption
rates; and
``(E) any specific activities that
increased high speed broadband access for
educational institutions, health care
providers, and public safety service
providers.''; and
(6) in subsections (k)(1) and (l), by striking
``2012'' each place it appears and inserting ``2018''.
(b) Study on Providing Effective Data for National
Broadband Map.--.
(1) In general.--The Secretary, in consultation
with the Secretary of Commerce and the Chairman of the
Federal Communications Commission, shall conduct a
study of the ways that data collected under the
broadband programs of the Secretary of Agriculture
could be most effectively shared with the Commission to
support the development and maintenance of the National
Broadband Map by the Commission.
(2) Inclusions.--The study shall include a
consideration of the circumstances under which address-
level data could be collected by the Secretary and
appropriately shared with the Commission.
(3) Completion.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
complete the study required under this subsection.
(4) Report.--Not later than 60 days after the date
of completion of the study, the Secretary shall submit
a report describing the results of the study to--
(A) the Committee on Agriculture of the
House of Representatives;
(B) the Committee on Energy and Commerce of
the House of Representatives;
(C) the Committee on Agriculture,
Nutrition, and Forestry of the Senate; and
(D) the Committee on Commerce, Science, and
Transportation of the Senate.
SEC. 6105. RURAL GIGABIT NETWORK PILOT PROGRAM.
Title VI of the Rural Electrification Act of 1936 (7 U.S.C.
950bb et seq.) is amended by adding at the end the following:
``SEC. 603. RURAL GIGABIT NETWORK PILOT PROGRAM.
``(a) Definition of Ultra-high Speed Service.--In this
section, the term `ultra-high speed service' means broadband
service operating at a 1 gigabit per second downstream
transmission capacity.
``(b) Pilot Program.--The Secretary shall establish a pilot
program to be known as the `Rural Gigabit Network Pilot
Program', under which the Secretary may, at the discretion of
the Secretary, provide grants, loans, or loan guarantees to
eligible entities.
``(c) Eligibility.--
``(1) In general.--To be eligible to obtain
assistance under this section, an entity shall--
``(A) demonstrate to the Secretary the
ability to furnish or extend ultra-high speed
service to a rural area;
``(B) submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary
may require;
``(C) not already provide ultra-high speed
service to a rural area within any State in the
proposed service territory; and
``(D) agree to complete buildout of ultra-
high speed service by not later than 3 years
after the initial date on which assistance
under this section is made available.
``(2) Eligible projects.--Assistance under this
section may only be used to carry out a project in a
proposed service territory if--
``(A) the proposed service territory is a
rural area; and
``(B) ultra-high speed service is not
provided in any part of the proposed service
territory.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2014 through 2018.''.
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 ``$100,000,000 for each
of fiscal years 1996 through 2012'' and inserting ``$75,000,000
for each of fiscal years 2014 through 2018''.
(b) Conforming Amendment.--Section 1(b) of Public Law 102-
551 (7 U.S.C. 950aaa note) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 6202. AGRICULTURAL TRANSPORTATION.
Section 203(j) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1622(j)) is amended by striking ``the Interstate
Commerce Commission, the Maritime Commission,,'' and inserting
``the Surface Transportation Board, the Federal Maritime
Commission,''.
SEC. 6203. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.
Section 231(b) of the Agricultural Risk Protection Act of
2000 (7 U.S.C. 1632a(b)) is amended--
(1) by striking paragraph (6) and inserting the
following:
``(6) Priority.--
``(A) Eligible independent producers of
value-added agricultural products.--In awarding
grants under paragraph (1)(A), the Secretary
shall give priority to--
``(i) operators of small- and
medium-sized farms and ranches that are
structured as family farms;
``(ii) beginning farmers or
ranchers;
``(iii) socially disadvantaged
farmers or ranchers; and
``(iv) 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))).
``(B) Eligible agricultural producer
groups, farmer or rancher cooperatives, and
majority-controlled producer-based business
venture.--In awarding grants under paragraph
(1)(B), the Secretary shall give priority to
projects (including farmer or rancher
cooperative projects) that best contribute to
creating or increasing marketing opportunities
for operators, farmers, and ranchers described
in subparagraph (A).''; and
(2) in paragraph (7)--
(A) in subparagraph (A)--
(i) by striking ``On October 1,
2008,'' and inserting ``On the date of
enactment of the Agricultural Act of
2014,''; and
(ii) by striking ``$15,000,000''
and inserting ``$63,000,000''; and
(B) in subparagraph (B), by striking
``2012'' and inserting ``2018''.
SEC. 6204. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.
Section 6402(i) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 1632b(i)) is amended by striking
``$6,000,000 for each of fiscal years 2008 through 2012'' and
inserting ``$1,000,000 for each of fiscal years 2014 through
2018''.
SEC. 6205. 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 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 Utilities 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) 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.
``(g) 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.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $75,000,000 for
each of fiscal years 2014 through 2018.''.
SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.
(a) In General.--The Secretary of Agriculture and the
Secretary of Transportation shall publish an updated version of
the study described in section 6206 of the Food, Conservation,
and Energy Act of 2008 (as amended by subsection (b)).
(b) Addition to Study.--Section 6206(b) of the Food,
Conservation, and Energy Act of 2008 (Public Law 110-246; 122
Stat. 1971) is amended--
(1) in paragraph (3), by striking ``and'' at the
end;
(2) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(5) the sufficiency of infrastructure along
waterways in the United States and the impact of the
infrastructure on the movement of agricultural goods in
terms of safety, efficiency and speed, as well as the
benefits derived through upgrades and repairs to locks
and dams.''.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Agriculture and
the Secretary of Transportation shall submit to Congress the
updated version of the study required by subsection (a).
SEC. 6207. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.
Section 15751 of title 40, United States Code, is amended--
(1) in subsection (a), by striking ``2012'' and
inserting ``2018''; and
(2) in subsection (b)--
(A) by striking ``Not more than'' and
inserting the following:
``(1) In general.--Except as provided in paragraph
(2), not more than''; and
(B) by adding at the end the following:
``(2) Limited funding.--In a case in which less
than $10,000,000 is made available to a Commission for
a fiscal year under this section, paragraph (1) shall
not apply.''.
SEC. 6208. DEFINITION OF RURAL AREA FOR PURPOSES OF THE HOUSING ACT OF
1949.
The second sentence of section 520 of the Housing Act of
1949 (42 U.S.C. 1490) is amended--
(1) by striking ``1990 or 2000 decennial census
shall continue to be so classified until the receipt of
data from the decennial census in the year 2010'' and
inserting ``1990, 2000, or 2010 decennial census, and
any area deemed to be a `rural area' for purposes of
this title under any other provision of law at any time
during the period beginning January 1, 2000, and ending
December 31, 2010, shall continue to be so classified
until the receipt of data from the decennial census in
the year 2020''; and
(2) by striking ``25,000'' and inserting
``35,000''.
SEC. 6209. PROGRAM METRICS.
(a) In General.--The Secretary shall collect data regarding
economic activities created through grants and loans, including
any technical assistance provided as a component of the grant
or loan program, and measure the short- and long-term viability
of award recipients and any entities to whom those recipients
provide assistance using award funds, under--
(1) section 231 of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 1632a);
(2) section 313(b)(2) of the Rural Electrification
Act of 1936 (7 U.S.C. 940c(b)(2)); or
(3) section 310B(c), 310B(e), 310B(g), 310H, or
379E, or subtitle E, of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(c), 1932(e), 1932(g),
2008s, 2009 et seq.).
(b) Data.--The data collected under subsection (a) shall
include information collected from recipients both during the
award period and for a period of time, as determined by the
Secretary, which is not less than 2 years after the award
period ends.
(c) Report.--
(1) In general.--Not later than 4 years after the
date of enactment of this Act, and 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 that contains the data described in
subsection (a).
(2) Detailed information.--The report shall include
detailed information regarding--
(A) actions taken by the Secretary to use
the data;
(B) the percentage increase of employees;
(C) the number of business starts and
clients served;
(D) any benefit, such as an increase in
revenue or customer base; and
(E) such other information as the Secretary
considers appropriate.
SEC. 6210. 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,
beginning in fiscal year 2014, of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $150,000,000, to remain available until expended.
TITLE VII--RESEARCH, EXTENSION, AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7101. OPTION TO BE INCLUDED AS NON-LAND-GRANT COLLEGE OF
AGRICULTURE.
Section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
amended--
(1) by striking paragraph (5) and inserting the
following new paragraph:
``(5) Cooperating forestry school.--
``(A) In general.--The term `cooperating
forestry school' means an institution--
``(i) that is eligible to receive
funds under Public Law 87-788 (commonly
known as the McIntire-Stennis
Cooperative Forestry Act; 16 U.S.C.
582a et seq.); and
``(ii) with respect to which the
Secretary has not received a
declaration of the intent of that
institution to not be considered a
cooperating forestry school.
``(B) Termination of declaration.--A
declaration of the intent of an institution to
not be considered a cooperating forestry school
submitted to the Secretary shall be in effect
until September 30, 2018.'';
(2) in paragraph (10)--
(A) in subparagraph (A)--
(i) in the matter preceding clause
(i), by striking ``that'';
(ii) in clause (i)--
(I) by inserting ``that''
before ``qualify''; and
(II) by striking ``and'' at
the end;
(iii) in clause (ii)--
(I) by inserting ``that''
before ``offer''; and
(II) by striking the period
at the end and inserting ``;
and''; and
(iv) by adding at the end the
following new clause:
``(iii) with respect to which the
Secretary has not received a
declaration of the intent of a college
or university to not be considered a
Hispanic-serving agricultural college
or university.''; and
(B) by adding at the end the following new
subparagraph:
``(C) Termination of declaration of
intent.--A declaration of the intent of a
college or university to not be considered a
Hispanic-serving agricultural college or
university submitted to the Secretary shall be
in effect until September 30, 2018.''; and
(3) in paragraph (14)--
(A) in subparagraph (A), by striking
``agriculture or forestry'' and inserting
``food and agricultural sciences'';
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) Designation.--Not later than 90 days
after the date of the enactment of this
subparagraph, the Secretary shall establish an
ongoing process through which public colleges
or universities may apply for designation as an
NLGCA Institution.''.
SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
ECONOMICS ADVISORY BOARD.
(a) Extension of Termination Date.--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 ``2018''.
(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 (1)--
(A) by striking ``Committee on
Appropriations of the Senate'' and all that
follows through the semi-colon and inserting
``Committee on Appropriations of the Senate
on--''; and
(B) by adding at the end the following new
subparagraphs:
``(A) long-term and short-term national
policies and priorities consistent with the
purposes specified in section 1402 for
agricultural research, extension, education,
and economics; and
``(B) the annual establishment of
priorities that--
``(i) are in accordance with the
purposes specified in a provision of a
covered law (as defined in subsection
(d) of section 1492) under which
competitive grants (described in
subsection (c) of such section) are
awarded; and
``(ii) the Board determines are
national priorities.'';
(2) in paragraph (3), by striking ``and'' at the
end;
(3) in paragraph (4)--
(A) in subparagraph (B), by striking ``the
national research policies and priorities set
forth in'' inserting ``national research
policies and priorities that are consistent
with the purposes specified in''; and
(B) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(4) by adding at the end the following new
paragraph:
``(5) consult with industry groups on agricultural
research, extension, education, and economics, and make
recommendations to the Secretary based on that
consultation.''.
SEC. 7103. SPECIALTY CROP COMMITTEE.
(a) Establishment of Subcommittee.--Section 1408A(a) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a(a)) is amended--
(1) by striking ``Not later than'' and inserting
the following:
``(1) In general.--Not later than''; and
(2) by adding at the end the following new
paragraph:
``(2) Citrus disease subcommittee.--
``(A) In general.--Not later than 45 days
after the date of the enactment of the
Agricultural Act of 2014, the Secretary shall
establish within the speciality crops
committee, and appoint the initial members of,
a citrus disease subcommittee to carry out the
responsibilities of the subcommittee described
in subsection (g) in accordance with subsection
(j)(3) of section 412 of the Agricultural
Research, Extension, and Education Reform Act
of 1998 (7 U.S.C. 7632).
``(B) Composition.--The citrus disease
subcommittee shall be composed of 9 members,
each of whom is a domestic producer of citrus
in a State, represented as follows:
``(i) Three of such members shall
represent Arizona or California.
``(ii) Five of such members shall
represent Florida.
``(iii) One of such members shall
represent Texas.
``(C) Membership.--The Secretary may
appoint individuals who are not members of the
specialty crops committee or the Advisory Board
established under section 1408 as members of
the citrus disease subcommittee
``(D) Termination.--The subcommittee
established under subparagraph (A) shall
terminate on September 30, 2018.
``(E) Federal advisory committee act.--The
subcommittee established under subparagraph (A)
shall be covered by the exemption to section
9(c) of the Federal Advisory Committee Act (5
U.S.C. App.) applicable to the Advisory Board
under section 1408(f).''.
(b) Members.--Section 1408A(b) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123a(b)) is amended--
(1) by striking ``Individuals'' and inserting the
following:
``(1) Eligibility.--Individuals'';
(2) by striking ``Members'' and inserting the
following:
``(2) Service.--Members''; and
(3) by adding at the end the following new
paragraph:
``(3) Diversity.--Membership of the specialty crops
committee shall reflect diversity in the specialty
crops represented.''.
(c) Annual Committee Report.--Section 1408A(c) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a(c)) is amended--
(1) in paragraph (1), by striking ``Measures'' and
inserting ``Programs'';
(2) by striking paragraph (2);
(3) by redesignating paragraphs (3), (4), and (5)
as paragraphs (2), (3), and (4), respectively;
(4) in paragraph (2) (as so redesignated)--
(A) in the matter preceding subparagraph
(A), by striking ``Programs that would'' and
inserting ``Research, extension, and teaching
programs designed to improve competitiveness in
the specialty crop industry, including programs
that would'';
(B) in subparagraph (D), by inserting ``,
including improving the quality and taste of
processed specialty crops'' before the
semicolon; and
(C) in subparagraph (G), by inserting ``the
remote sensing and the'' before
``mechanization''; and
(5) by adding at the end the following:
``(5) Analysis of the alignment of specialty crops
committee recommendations with grants awarded through
the specialty crop research initiative established
under section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7632).''.
(d) Consultation With Specialty Crop Industry.--Section
1408A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3123a) is amended--
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively;
(2) 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
(3) in subsection (f) (as redesignated by paragraph
(1)), by striking ``subsection (d)'' and inserting
``subsection (e)''.
(e) Duties of Citrus Disease Subcommittee.--Section 1408A
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123a), as amended by subsection
(d), is further amended by adding at the end the following new
subsection:
``(g) Citrus Disease Subcommittee Duties.--For the purposes
of subsection (j) of section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7632),
the citrus disease subcommittee shall--
``(1) advise the Secretary on citrus research,
extension, and development needs;
``(2) propose, by a favorable vote of two-thirds of
the members of the subcommittee, a research and
extension agenda and annual budgets for the funds made
available to carry out such subsection;
``(3) evaluate and review ongoing research and
extension funded under the emergency citrus disease
research and extension program (as defined in such
subsection);
``(4) establish, by a favorable vote of two-thirds
of the members of the subcommittee, annual priorities
for the award of grants under such subsection;
``(5) provide the Secretary any comments on grants
awarded under such subsection during the previous
fiscal year; and
``(6) engage in regular consultation and
collaboration with the Department and other
institutional, governmental, and private persons
conducting scientific research on, and extension
activities related to, the causes or treatments of
citrus diseases and pests, both domestic and invasive,
for purposes of--
``(A) maximizing the effectiveness of
research and extension projects funded under
the citrus disease research and extension
program;
``(B) hastening the development of useful
treatments;
``(C) avoiding duplicative and wasteful
expenditures; and
``(D) providing the Secretary with such
information and advice as the Secretary may
request.''.
SEC. 7104. 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 new section:
``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, or an
individual who, 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 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; or
``(G) a State, local, or tribal government
agency.
``(2) Veterinarian shortage situation.--The term
`veterinarian shortage situation' means a veterinarian
shortage situation as determined by the Secretary under
section 1415A.
``(b) Establishment.--
``(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.--A qualified entity
shall be eligible to receive a grant described in
paragraph (1) if the entity carries out programs or
activities that the Secretary determines will--
``(A) substantially relieve veterinarian
shortage situations;
``(B) support or facilitate private
veterinary practices engaged in public health
activities; or
``(C) support or facilitate the practices
of veterinarians who are providing or have
completed providing services under an agreement
entered into with the Secretary under section
1415A(a)(2).
``(c) Award Processes and Preferences.--
``(1) Application, evaluation, and input
processes.--In administering the grant program
established under this section, the Secretary shall--
``(A) use an appropriate application and
evaluation process, as determined by the
Secretary; and
``(B) seek the input of interested persons.
``(2) Coordination preference.--In selecting
recipients of grants to be used for any of the purposes
described in subsection (d)(1), the Secretary shall
give a preference to qualified entities that provide
documentation of coordination with other qualified
entities, with respect to any such purpose.
``(3) Consideration of available funds.--In
selecting recipients of grants to be used for any of
the purposes described in subsection (d), the Secretary
shall take into consideration the amount of funds
available for grants and the purposes for which the
grant funds will be used.
``(4) Nature of grants.--A grant awarded under this
section shall be considered to be a competitive
research, extension, or education grant.
``(d) Use of Grants To Relieve Veterinarian Shortage
Situations and Support Veterinary Services.--
``(1) In general.--Except as provided in paragraph
(2), a qualified entity may use funds provided by a
grant awarded under this section to relieve
veterinarian shortage situations and support veterinary
services for any of the following purposes:
``(A) To promote recruitment (including for
programs in secondary schools), placement, and
retention of veterinarians, veterinary
technicians, students of veterinary medicine,
and students of veterinary technology.
``(B) To allow veterinary students,
veterinary interns, externs, fellows, and
residents, and veterinary technician students
to cover expenses (other than the types of
expenses described in section 1415A(c)(5)) to
attend training programs in food safety or food
animal medicine.
``(C) To establish or expand accredited
veterinary education programs (including
faculty recruitment and retention), veterinary
residency and fellowship programs, or
veterinary internship and externship programs
carried out in coordination with accredited
colleges of veterinary medicine.
``(D) To provide continuing education and
extension, including veterinary telemedicine
and other distance-based education, for
veterinarians, veterinary technicians, and
other health professionals needed to strengthen
veterinary programs and enhance food safety.
``(E) To provide technical assistance for
the preparation of applications submitted to
the Secretary for designation as a veterinarian
shortage situation under this section or
section 1415A.
``(2) Qualified entities operating veterinary
clinics.--A qualified entity described in subsection
(a)(1)(A) may only use funds provided by a grant
awarded under this section to establish or expand
veterinary practices, including--
``(A) equipping veterinary offices;
``(B) sharing in the reasonable overhead
costs of such veterinary practices, as
determined by the Secretary; or
``(C) establishing mobile veterinary
facilities in which a portion of the facilities
will address education or extension needs.
``(e) Special Requirements for Certain Grants.--
``(1) Terms of service requirements.--
``(A) In general.--Funds provided through a
grant made under this section to a qualified
entity described in subsection (a)(1)(A) and
used by such entity under subsection (d)(2)
shall be subject to an agreement between the
Secretary and such entity that includes a
required term of service for such entity
(including a qualified entity operating as an
individual), as established by the Secretary.
``(B) Considerations.--In establishing a
term of service under subparagraph (A), the
Secretary shall consider only--
``(i) the amount of the grant
awarded; and
``(ii) the specific purpose of the
grant.
``(2) Breach remedies.--
``(A) In general.--An agreement under
paragraph (1) shall provide remedies for any
breach of the agreement by the qualified entity
referred to in paragraph (1)(A), including
repayment or partial repayment of the grant
funds, with interest.
``(B) Waiver.--The Secretary may grant a
waiver of the repayment obligation for breach
of contract if the Secretary determines that
such qualified entity demonstrates extreme
hardship or extreme need.
``(C) Treatment of amounts recovered.--
Funds recovered under this paragraph shall--
``(i) be credited to the account
available to carry out this section;
and
``(ii) remain available until
expended without further appropriation.
``(f) Prohibition on Use of Grant Funds for Construction.--
Except as provided in subsection (d)(2), funds made available
for grants under this section may not be used--
``(1) to construct a new building or facility; or
``(2) to acquire, expand, remodel, or alter an
existing building or facility, including site grading
and improvement and architect fees.
``(g) Regulations.--Not later than 1 year after the date of
the enactment of this section, the Secretary shall promulgate
regulations to carry out this section.
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this section $10,000,000 for fiscal year 2014 and each fiscal
year thereafter, to remain available until expended.''.
SEC. 7105. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE SCIENCES
EDUCATION.
Section 1417(m) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(m))
is amended by striking ``section $60,000,000'' and all that
follows and inserting the following: ``section--
``(1) $60,000,000 for each of fiscal years 1990
through 2013; and
``(2) $40,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7106. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is
amended--
(1) in the section heading, by inserting
``agricultural and food'' before ``policy'';
(2) in subsection (a), in the matter preceding
paragraph (1)--
(A) by striking ``Secretary may'' and
inserting ``Secretary shall, acting through the
Office of the Chief Economist,''; and
(B) by striking ``make grants, competitive
grants, and special research grants to, and
enter into cooperative agreements and other
contracting instruments with,'' and inserting
``make competitive grants to, or enter into
cooperative agreements with,'';
(3) by striking subsection (b) and inserting the
following new subsection:
``(b) Eligible Recipients.--An entity eligible to apply for
funding under subsection (a) is a State agricultural experiment
station, college or university, or other public research
institution or organization that has a history of providing--
``(1) unbiased, nonpartisan economic analysis to
Congress on the areas specified in paragraphs (1)
through (4) of subsection (a); or
``(2) objective, scientific information to Federal
agencies and the public to support and enhance
efficient, accurate implementation of Federal drought
preparedness and drought response programs, including
interagency thresholds used to determine eligibility
for mitigation or emergency assistance.'';
(4) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively;
(5) by inserting after subsection (b) the following
new subsection:
``(c) Preference.--In making awards under this section, the
Secretary shall give a preference to policy research centers
that have--
``(1) extensive databases, models, and demonstrated
experience in providing Congress with agricultural
market projections, rural development analysis,
agricultural policy analysis, and baseline projections
at the farm, multiregional, national, and international
levels; or
``(2) information, analysis, and research relating
to drought mitigation.'';
(6) in subsection (d)(2) (as redesignated by
paragraph (4)), by inserting ``applied'' after
``theoretical and''; and
(7) by striking subsection (e) (as redesignated by
paragraph (4)) and inserting the following new
subsection:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 2014 through 2018.''.
SEC. 7107. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND
NATIVE HAWAIIAN SERVING INSTITUTIONS.
Section 1419B of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``(or
grants without regard to any requirement for
competition)''; and
(B) in paragraph (3), by striking ``2012''
and inserting ``2018''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``(or
grants without regard to any requirement for
competition)''; and
(B) in paragraph (3), by striking ``2012''
and inserting ``2018''.
SEC. 7108. REPEAL OF HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION
RESEARCH PROGRAM.
Section 1424 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174) is
repealed.
SEC. 7109. REPEAL OF PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
AGRICULTURAL RESEARCH.
Section 1424A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a) is
repealed.
SEC. 7110. NUTRITION EDUCATION PROGRAM.
Section 1425(f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(f))
is amended by striking ``2012'' and inserting ``2018''.
SEC. 7111. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
(a) In General.--Section 1433 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3195) is amended to read as follows:
``SEC. 1433. CONTINUING ANIMAL HEALTH AND DISEASE, FOOD SECURITY, AND
STEWARDSHIP RESEARCH, EDUCATION, AND EXTENSION
PROGRAMS.
``(a) Capacity and Infrastructure Program.--
``(1) In general.--In each State with one or more
accredited colleges of veterinary medicine, the deans
of the accredited college or colleges and the director
of the State agricultural experiment station shall
develop a comprehensive animal health and disease
research program for the State based on the animal
health research capacity of each eligible institution
in the State, which shall be submitted to the Secretary
for approval and shall be used for the allocation of
funds available to the State under this section.
``(2) Use of funds.--An eligible institution
allocated funds to carry out animal health and disease
research under this section may only use such funds--
``(A) to meet the expenses of conducting
animal health and disease research, publishing
and disseminating the results of such research,
and contributing to the retirement of employees
subject to the Act of March 4, 1940 (7 U.S.C.
331);
``(B) for administrative planning and
direction; and
``(C) to purchase equipment and supplies
necessary for conducting research described in
subparagraph (A).
``(3) Cooperation among eligible institutions.--The
Secretary, to the maximum extent practicable, shall
encourage eligible institutions to cooperate in setting
research priorities under this section through
conducting regular regional and national meetings.
``(b) Competitive Grant Program.--
``(1) In general.--The Secretary, for purposes of
addressing the critical needs of animal agriculture,
shall award competitive grants to eligible entities
under which such eligible entities--
``(A) conduct research--
``(i) to promote food security,
such as by--
``(I) improving feed
efficiency;
``(II) improving energetic
efficiency;
``(III) connecting
genomics, proteomics,
metabolomics and related
phenomena to animal production;
``(IV) improving
reproductive efficiency; and
``(V) enhancing pre- and
post-harvest food safety
systems; and
``(ii) on the relationship between
animal and human health, such as by--
``(I) exploring new
approaches for vaccine
development;
``(II) understanding and
controlling zoonosis, including
its impact on food safety;
``(III) improving animal
health through feed; and
``(IV) enhancing product
quality and nutritive value;
and
``(B) develop and disseminate to the public
tools and information based on the research
conducted under subparagraph (A) and sound
science.
``(2) Eligible entities.--An entity eligible to
receive a grant under this subsection is any of the
following:
``(A) A State cooperative institution.
``(B) An NLGCA Institution.
``(3) Administration.--In carrying out this
subsection, the Secretary shall establish procedures--
``(A) to seek and accept proposals for
grants;
``(B) to review and determine the relevance
and merit of proposals, in consultation with
representatives of the animal agriculture
industry;
``(C) to provide a scientific peer review
of each proposal conducted by a panel of
subject matter experts from Federal agencies,
academic institutions, State animal health
agencies, and the animal agriculture industry;
and
``(D) to award competitive grants on the
basis of merit, quality, and relevance.
``(c) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$25,000,000 for each of fiscal years 2014 through 2018.
``(2) Reservation of funds.--The Secretary shall
reserve not less than $5,000,000 of the funds made
available under paragraph (1) to carry out the capacity
and infrastructure program under subsection (a).
``(3) Initial apportionment.--The amounts made
available under paragraph (1) that are remaining after
the reservation of funds under paragraph (2), shall be
apportioned as follows:
``(A) 15 percent of such amounts shall be
used to carry out the capacity and
infrastructure program under subsection (a).
``(B) 85 percent of such funds shall be
used to carry out the competitive grant program
under subsection (b).
``(4) Additional apportionment.--The funds reserved
under paragraph (2) and apportioned under paragraph
(3)(A) to carry out the capacity and infrastructure
program under subsection (a) shall be apportioned as
follows:
``(A) Four percent shall be retained by the
Department of Agriculture for administration,
program assistance to the eligible
institutions, and program coordination.
``(B) 48 percent shall be distributed among
the several States in the proportion that the
value of and income to producers from domestic
livestock, poultry, and commercial aquaculture
species in each State bears to the total value
of and income to producers from domestic
livestock, poultry, and commercial aquaculture
species in all the States. The Secretary shall
determine the total value of and income from
domestic livestock, poultry, and commercial
aquaculture species in all the States and the
proportionate value of and income from domestic
livestock, poultry, and commercial aquaculture
species for each State, based on the most
current inventory of all cattle, sheep, swine,
horses, poultry, and commercial aquaculture
species published by the Department of
Agriculture.
``(C) 48 percent shall be distributed among
the several States in the proportion that the
animal health research capacity of the eligible
institutions in each State bears to the total
animal health research capacity in all the
States. The Secretary shall determine the
animal health research capacity of the eligible
institutions.
``(5) Special rules for apportionment of certain
funds.--With respect to funds reserved under paragraph
(2) and apportioned under paragraph (3)(A) to carry out
the capacity and infrastructure program under
subsection (a), the following shall apply:
``(A) When the amount available under this
section for allotment to any State on the basis
of domestic livestock, poultry, and commercial
aquaculture species values and incomes exceeds
the amount for which the eligible institution
or institutions in the State are eligible on
the basis of animal health research capacity,
the excess may be used, at the discretion of
the Secretary, for remodeling of facilities,
construction of new facilities, or increase in
staffing, proportionate to the need for added
research capacity.
``(B) Whenever a new college of veterinary
medicine is established in a State and is
accredited, the Secretary, after consultation
with the dean of such college and the director
of the State agricultural experiment station
and where applicable, deans of other accredited
colleges in the State, shall provide for the
reallocation of funds available to the State
pursuant to paragraph (4) between the new
college and other eligible institutions in the
State, based on the animal health research
capacity of each eligible institution.
``(C) Whenever two or more States jointly
establish an accredited regional college of
veterinary medicine or jointly support an
accredited college of veterinary medicine
serving the States involved, the Secretary is
authorized to make funds which are available to
such States pursuant to paragraph (4) available
for such college in such amount that reflects
the combined relative value of, and income
from, domestic livestock, poultry, and
commercial aquaculture species in the
cooperating States, such amount to be adjusted,
as necessary, pursuant to subsection (a)(1) and
subparagraph (B).''.
(b) Conforming Amendments.--
(1) Definition of state cooperative institution.--
Section 1404(18) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103(18)) is amended--
(A) in subparagraph (E), by striking
``and'' at the end;
(B) in subparagraph (F), by striking
``subtitles E, G,'' and inserting ``subtitles
G,'';
(C) by redesignating subparagraph (F) as
subparagraph (G); and
(D) by inserting after subparagraph (E) the
following new subparagraph:
``(F) section 1430; and''.
(2) Definition of capacity and infrastructure
program.--Section 251(f)(1)(C)(vi) of the Department of
Agriculture Reorganization Act of 1994 (7
U.S.C.6971(f)(1)(C)(vi)) is amended by inserting
``except for the competitive grant program under
section 1433(b)'' before the period at the end.
(3) Subtitle e of the national agricultural
research, extension, and teaching policy act of 1977.--
Subtitle E of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 is amended--
(A) in section 1431(a) (7 U.S.C. 3193(a)),
by inserting ``under sections 1433(a) and
1434'' after ``eligible institutions'';
(B) in section 1435 (7 U.S.C. 3197), by
striking ``for allocation under the terms of
this subtitle'' and inserting ``to carry out
sections 1433(a) and 1434'';
(C) in section 1436 (7 U.S.C. 3198), in the
first sentence, by striking ``section 1433 of
this title'' and inserting ``subsection (c) of
section 1433 to carry out subsection (a) of
such section'';
(D) in section 1437 (7 U.S.C. 3199), in the
first sentence, by striking ``States under
section 1433 of this title'' and inserting
``States under subsection (c) of section 1433
to carry out subsection (a) of such section'';
(E) in section 1438 (7 U.S.C. 3200), in the
first sentence by striking ``under this
subtitle'' and inserting ``under subsection (c)
of section 1433 to carry out subsection (a) of
such section''; and
(F) in section 1439 (7 U.S.C. 3201), by
striking ``under this subtitle'' and inserting
``under subsection (c) of section 1433 to carry
out subsection (a) of such section or section
1434, as applicable,''.
(4) Authorization for appropriations for existing
and certain new agricultural research programs.--
Section 1463(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3311(c)) is amended by striking ``sections 1433 and
1434'' and inserting ``sections 1433(a) and 1434''.
SEC. 7112. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE
UNIVERSITY.
Section 1447(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b))
is amended by striking ``2012'' and inserting ``2018''.
SEC. 7113. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCE FACILITIES
AND EQUIPMENT AT INSULAR AREA LAND-GRANT
INSTITUTIONS.
(a) Supporting Tropical and Subtropical Agricultural
Research.--
(1) In general.--Section 1447B(a) of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3222b-2(a)) is amended to read as
follows:
``(a) Purpose.--It is the intent of Congress to assist the
land-grant colleges and universities in the insular areas in
efforts to--
``(1) acquire, alter, or repair facilities or
relevant equipment necessary for conducting
agricultural research; and
``(2) support tropical and subtropical agricultural
research, including pest and disease research.''.
(2) Conforming amendment.--Section 1447B of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222b-2) is amended in the
heading--
(A) by inserting ``and support tropical and
subtropical agricultural research'' after
``equipment''; and
(B) by striking ``institutions'' and
inserting ``colleges and universities''.
(b) Extension.--Section 1447B(d) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3222b-2(d)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 7114. REPEAL OF NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is
repealed.
SEC. 7115. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c))
is amended by striking ``2012'' and inserting ``2018''.
SEC. 7116. COMPETITIVE GRANTS PROGRAM FOR HISPANIC AGRICULTURAL WORKERS
AND YOUTH.
Section 1456(e)(1) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3243(e)(1)) is amended to read as follows:
``(1) In general.--The Secretary shall establish a
competitive grants program--
``(A) to fund fundamental and applied
research and extension at Hispanic-serving
agricultural colleges and universities in
agriculture, human nutrition, food science,
bioenergy, and environmental science; and
``(B) to award competitive grants to
Hispanic-serving agricultural colleges and
universities to provide for training in the
food and agricultural sciences of Hispanic
agricultural workers and Hispanic youth working
in the food and agricultural sciences.''.
SEC. 7117. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
AND EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c))
is amended to read as follows:
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal
years 1999 through 2013; and
``(2) $5,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7118. REPEAL OF RESEARCH EQUIPMENT GRANTS.
Section 1462A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310a) is
repealed.
SEC. 7119. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is
amended by striking ``2012'' each place it appears in
subsections (a) and (b) and inserting ``2018''.
SEC. 7120. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is
amended by striking ``2012'' and inserting ``2018''.
SEC. 7121. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE
REQUIREMENTS.
Section 1469 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3315) is
amended--
(1) by redesignating subsections (b), (c), and (d)
as subsections (c), (d), and (e), respectively; and
(2) by inserting after subsection (a) the following
new subsection:
``(b) Agreements With Former Agricultural Research
Facilities of the Department.--To the maximum extent
practicable, the Secretary, for purposes of supporting ongoing
research and information dissemination activities, including
supporting research and those activities through co-locating
scientists and other technical personnel, sharing of laboratory
and field equipment, and providing financial support, shall
enter into grants, contracts, cooperative agreements, or other
legal instruments with former Department of Agriculture
agricultural research facilities.''.
SEC. 7122. SUPPLEMENTAL AND ALTERNATIVE CROPS.
(a) Authorization of Appropriations and Termination.--
Section 1473D of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended--
(1) in subsection (a), by striking ``2012'' and
inserting ``2018''; and
(2) by adding at the end the following new
subsection:
``(e) There are authorized to be appropriated to carry out
this section--
``(1) such sums as are necessary for fiscal year
2013; and
``(2) $1,000,000 for each of fiscal years 2014
through 2018.''.
(b) Competitive Grants.--Section 1473D(c)(1) of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3319d(c)(1)) is amended by striking ``use
such research funding, special or competitive grants, or other
means, as the Secretary determines,'' and inserting ``make
competitive grants''.
SEC. 7123. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
Section 1473F(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b))
is amended by striking ``2012'' and inserting ``2018''.
SEC. 7124. AQUACULTURE ASSISTANCE PROGRAMS.
(a) Competitive Grants.--Section 1475(b) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3322(b)) is amended in the matter preceding
paragraph (1), by inserting ``competitive'' before ``grants''.
(b) Authorization of Appropriations.--Section 1477 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3324) is amended to read as follows:
``SEC. 1477. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
to carry out this subtitle--
``(1) $7,500,000 for each of fiscal years 1991
through 2013; and
``(2) $5,000,000 for each of fiscal years 2014
through 2018.
``(b) Prohibition on Use.--Funds made available under this
section may not be used to acquire or construct a building.''.
SEC. 7125. RANGELAND RESEARCH PROGRAMS.
Section 1483(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a))
is amended by striking ``subtitle'' and all that follows and
inserting the following: ``subtitle--
``(1) $10,000,000 for each of fiscal years 1991
through 2013; and
``(2) $2,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7126. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.
Section 1484(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a))
is amended by striking ``response such sums as are necessary''
and all that follows and inserting the following: ``response--
``(1) such sums as are necessary for each of fiscal
years 2002 through 2013; and
``(2) $20,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7127. DISTANCE EDUCATION AND RESIDENT INSTRUCTION GRANTS PROGRAM
FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
(a) Distance Education Grants for Insular Areas.--
(1) Competitive grants.--Section 1490(a) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3362(a)) is amended by
striking ``or noncompetitive''.
(2) Authorization of appropriations.--Section
1490(f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3362(f)) is amended by striking ``section'' and all
that follows and inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal
years 2002 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014
through 2018.''.
(b) Resident Instruction Grants for Insular Areas.--Section
1491(c) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363(c)) is amended by
striking ``such sums as are necessary'' and all that follows
and inserting the following: ``to carry out this section--
``(1) such sums as are necessary for each of fiscal
years 2002 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7128. MATCHING FUNDS REQUIREMENT.
(a) In General.--The National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et
seq.) is amended by adding at the end the following new
subtitle:
``Subtitle P--General Provisions
``SEC. 1492. MATCHING FUNDS REQUIREMENT.
``(a) In General.--The recipient of a competitive grant
that is awarded by the Secretary under a covered law shall
provide funds, in-kind contributions, or a combination of both,
from sources other than funds provided through such grant in an
amount that is at least equal to the amount of such grant.
``(b) Exception.--The matching funds requirement under
subsection (a) shall not apply to grants awarded--
``(1) to a research agency of the Department of
Agriculture; or
``(2) to an entity eligible to receive funds under
a capacity and infrastructure program (as defined in
section 251(f)(1)(C) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971(f)(1)(C))),
including a partner of such entity.
``(c) Waiver.--The Secretary may waive the matching funds
requirement under subsection (a) for a year with respect to a
competitive grant that involves research or extension
activities that are consistent with the priorities established
by the National Agricultural Research, Extension, Education,
and Economics Advisory Board under section 1408(c)(1)(B) for
the year involved.
``(d) Covered Law.--In this section, the term `covered law'
means each of the following provisions of law:
``(1) This title.
``(2) Title XVI of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5801 et
seq.).
``(3) The Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601 et seq.).
``(4) Part III of subtitle E of title VII of the
Food, Conservation, and Energy Act of 2008.
``(5) The Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i).''.
(b) Conforming Amendments.--
(1) National agricultural research, extension, and
teaching policy act of 1977.--The National Agricultural
Research, Extension, and Teaching Policy Act of 1977 is
amended--
(A) in section 1415(a) (7 U.S.C. 3151(a)),
by striking the second sentence;
(B) in section 1475(b) (7 U.S.C. 3322(b)),
in the matter following paragraph (4), by
striking ``Except in the case of'' and all that
follows; and
(C) in section 1480 (7 U.S.C. 3333)--
(i) by striking subsection (b); and
(ii) by striking ``(a) In
General.--The Secretary'' and inserting
``The Secretary''.
(2) Food, agriculture, conservation, and trade act
of 1990.--The Food, Agriculture, Conservation, and
Trade Act of 1990 is amended--
(A) in section 1623(d)(2) (7 U.S.C.
5813(d)(2)), by adding at the end the
following: ``The matching funds requirement
under section 1492 of the National Agricultural
Research, Extension, and Teaching Policy Act of
1977 shall not apply to grants awarded under
this section.'';
(B) in section 1671 (7 U.S.C. 5924)--
(i) by striking subsection (e); and
(ii) by redesignating subsection
(f) as subsection (e);
(C) in section 1672 (7 U.S.C. 5925)--
(i) by striking subsection (c); and
(ii) by redesignating subsections
(d) through (j) as subsections (c)
through (i), respectively; and
(D) in section 1672B (7 U.S.C. 5925b)--
(i) by striking subsection (c); and
(ii) by redesignating subsections
(d), (e), and (f) as subsections (c),
(d), and (e), respectively.
(3) Agricultural research, extension, and education
reform act of 1998.--The Agricultural Research,
Extension, and Education Reform Act of 1998 is
amended--
(A) in section 406 (7 U.S.C. 7626)--
(i) by striking subsection (d); and
(ii) by redesignating subsections
(e) and (f) as subsections (d) and (e),
respectively; and
(B) in section 412(e) (7 U.S.C. 7632(e))--
(i) by striking paragraph (3); and
(ii) by redesignating paragraph (4)
as paragraph (3).
(4) Competitive, special, and facilities research
grant act.--Subsection (b)(9) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)(9)) is amended--
(A) in subparagraph (A), by adding at the
end the following new clause:
``(iii) Exemption.--The matching
funds requirement under section 1492 of
the National Agricultural Research,
Extension, and Teaching Policy Act of
1977 shall not apply in the case of a
grant made under paragraph (6)(A).'';
and
(B) by striking subparagraph (B).
(5) Sun grant program.--Section 7526(c)(1)(D)(iv)
of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8114(c)(1)(D)(iv)) is amended by adding at the
end the following new subclause:
``(IV) Relation to other
matching fund requirement.--The
matching funds requirement
under section 1492 of the
National Agricultural Research,
Extension, and Teaching Policy
Act of 1977 shall not apply in
the case of a grant provided by
a sun grant center or subcenter
under this paragraph.''.
(c) Application to Amendments.--
(1) New grants.--Section 1492 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977, as added by subsection (a), shall apply
with respect to grants described in such section
awarded after October 1, 2014, unless the provision of
a covered law under which such grants are awarded
specifically exempts such grants from the matching
funds requirement under such section.
(2) Grants awarded on or before october 1, 2014.--
Notwithstanding the amendments made by subsection (b),
a matching funds requirement in effect on or before the
date of the enactment of this section under a provision
of a covered law shall continue to apply to a grant
awarded under such provision on or before October 1,
2014.
SEC. 7129. DESIGNATION OF CENTRAL STATE UNIVERSITY AS 1890 INSTITUTION.
(a) Designation.--Any provision of a Federal law relating
to colleges and universities eligible to receive funds under
the Act of August 30, 1890 (7 U.S.C. 321 et seq.), including
Tuskegee University, shall apply to Central State University.
(b) Funding Restriction.--Notwithstanding the designation
under subsection (a), for fiscal years 2014 and 2015, Central
State University shall not be eligible to receive formula funds
under--
(1) section 1444 or 1445 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3221 and 3222);
(2) section 3(d) of the Smith-Lever Act (7 U.S.C.
343(d)) to carry out the national education program
established under section 1425 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3175);
(3) the Renewable Resources Extension Act of 1978
(16 U.S.C. 1671 et seq.); or
(4) Public Law 87-788 (commonly known as the
McIntire-Stennis Cooperative Forestry Act; 16 U.S.C.
582a et seq.).
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS.
Section 1624 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5814) is amended in the first
sentence--
(1) by striking ``$40,000,000 for each fiscal
year''; and
(2) by inserting ``$40,000,000 for each of fiscal
years 2013 through 2018'' after ``chapter''.
SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS.
Section 1627(d) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5821(d)) is amended to read as
follows:
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section through
the National Institute of Food and Agriculture $20,000,000 for
each of fiscal years 2013 through 2018.''.
SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER
PROGRAM.
Section 1628(f) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5831(f)) is amended to read as
follows:
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for fiscal year
2013; and
``(2) $5,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7204. NATIONAL TRAINING PROGRAM.
Section 1629(i) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5832(i)) is amended to read as
follows:
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to carry out the National
Training Program $20,000,000 for each of fiscal years 2013
through 2018.''.
SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended--
(1) by striking ``such funds as may be necessary'';
and
(2) by striking ``subtitle'' and all that follows
and inserting the following: ``subtitle--
``(1) such sums as are necessary for each of fiscal
years 1991 through 2013; and
``(2) $1,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended--
(1) by striking ``$5,000,000 to carry out this
subtitle'' and inserting ``to carry out this subtitle
$5,000,000''; and
(2) by inserting ``and $1,000,000 for each of
fiscal years 2014 through 2018'' before the period at
the end.
SEC. 7207. REPEAL OF RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.
Section 1670 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5923) is repealed.
SEC. 7208. AGRICULTURAL GENOME INITIATIVE.
Section 1671(c) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5924(c)) is amended by adding at
the end the following:
``(3) Consortia.--The Secretary shall encourage
awards under this section to consortia of eligible
entities.''.
SEC. 7209. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925) is amended--
(1) in the first sentence of subsection (a), by
striking ``subsections (e) through (i)'' and inserting
``subsections (d) through (g)'';
(2) in subsection (b)(2), in the first sentence, by
striking ``subsections (e) through (i)'' and inserting
``subsections (d) through (g)'';
(3) by striking subsection (h) (as redesignated by
section 7128(b)(2)(C)(ii));
(4) by redesignating subsection (i) (as
redesignated by such section) as subsection (h);
(5) in subsection (d) (as redesignated by such
section)--
(A) by striking paragraphs (1) through (5),
(7), (8), (11) through (43), (47), (48), (51),
and (52);
(B) by redesignating paragraphs (6), (9),
(10), (44), (45), (46), (49), and (50) as
paragraphs (1), (2), (3), (4), (5), (6), (7),
and (8), respectively; and
(C) by adding at the end the following new
paragraphs:
``(9) Coffee plant health initiative.--Research and
extension grants may be made under this section for the
purposes of--
``(A) developing and disseminating science-
based tools and treatments to combat the coffee
berry borer (Hypothenemus hampei); and
``(B) establishing an areawide integrated
pest management program in areas affected by,
or areas at risk of, being affected by the
coffee berry borer.
``(10) Corn, soybean meal, cereal grains, and grain
byproducts research and extension.--Research and
extension grants may be made under this section for the
purpose of carrying out or enhancing research to
improve the digestibility, nutritional value, and
efficiency of the use of corn, soybean meal, cereal
grains, and grain byproducts for the poultry and food
animal production industries.'';
(6) by striking subsection (e) (as redesignated by
such section)and inserting the following new
subsection:
``(e) Pulse Crop Health Initiative.--
``(1) Definitions.--In this subsection:
``(A) Initiative.--The term `Initiative'
means the pulse crop health initiative
established by paragraph (2).
``(B) Pulse crop.--The term `pulse crop'
means dry beans, dry peas, lentils, and
chickpeas.
``(2) Establishment.--The Secretary shall carry out
a pulse crop health competitive research and extension
initiative to address the critical needs of the pulse
crop industry by developing and disseminating science-
based tools and information, including--
``(A) research conducted with respect to
pulse crops in the areas of health and
nutrition, such as--
``(i) pulse crop diets and the
ability of such diets to reduce obesity
and associated chronic disease; and
``(ii) the underlying mechanisms of
the health benefits of pulse crop
consumption;
``(B) research related to the functionality
of pulse crops, such as--
``(i) improving the functional
properties of pulse crops and pulse
crop fractions; and
``(ii) developing new and
innovative technologies to improve
pulse crops as an ingredient in food
products;
``(C) research conducted with respect to
pulse crops for purposes of enhancing
sustainability and global food security, such
as--
``(i) improving pulse crop
productivity, nutrient density, and
phytonutrient content using plant
breeding, genetics, and genomics;
``(ii) improving pest and disease
management, including resistance to
pests and diseases; and
``(iii) improving nitrogen fixation
and water use efficiency to reduce the
carbon and energy footprint of
agriculture;
``(D) the optimization of systems used in
producing pulse crops to reduce water usage;
and
``(E) education and technical assistance
programs with respect to pulse crops, such as
programs--
``(i) providing technical expertise
to help food companies include pulse
crops in innovative and healthy food;
and
``(ii) establishing an educational
program to encourage pulse crop
consumption in the United States.
``(3) Administration.--Paragraphs (4), (7), (8),
and (11)(B) of subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)) shall apply with respect to the making of a
competitive grant under this subsection.
``(4) Priorities.--In making competitive grants
under this subsection, the Secretary shall provide a
higher priority to projects that--
``(A) are multistate, multiinstitutional,
and multidisciplinary; and
``(B) include explicit mechanisms to
communicate results to the pulse crop industry
and the public.
``(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $25,000,000 for each of fiscal years 2014
through 2018.'';
(7) by striking subsection (f) (as redesignated by
such section) and inserting the following new
subsection:
``(f) Training Coordination for Food and Agriculture
Protection.--
``(1) In general.--The Secretary shall make a
competitive grant to, or enter into a contract or a
cooperative agreement with, an eligible entity
(described in paragraph (2)) for purposes of
establishing an internationally integrated training
system to enhance the protection of the food supply in
the United States, to be known as the `Comprehensive
Food Safety Training Network' (referred to in this
subsection as the `Network').
``(2) Eligibility.--
``(A) In general.--For purposes of this
subsection, an eligible entity is a
multiinstitutional consortium that includes--
``(i) a nonprofit institution that
provides food safety protection
training; and
``(ii) one or more training centers
in institutions of higher education (as
defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001))
that have demonstrated expertise in
developing and delivering community-
based training in food supply and
agricultural safety and defense.
``(B) Collective consideration.--The
Secretary may consider such consortium
collectively and not on an institution-by-
institution basis.
``(3) Duties of eligible entity.--As a condition of
receiving a competitive grant or entering into a
contract or a cooperative agreement with the Secretary
under this subsection, the eligible entity, in
cooperation with the Secretary, shall establish and
maintain the Network, including by--
``(A) providing basic, technical,
management, and leadership training (including
by developing curricula) to regulatory and
public health officials, producers, processors,
and other agribusinesses;
``(B) serving as the hub for the
administration of the Network;
``(C) implementing a standardized national
curriculum to ensure the consistent delivery of
quality training throughout the United States;
``(D) building and overseeing a nationally
recognized instructor cadre to ensure the
availability of highly qualified instructors;
``(E) reviewing training proposed through
the National Institute of Food and Agriculture
and other relevant Federal agencies that report
to the Secretary on the quality and content of
proposed and existing courses;
``(F) assisting Federal agencies in the
implementation of food safety protection
training requirements including requirements
under the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 301 et seq.), the Agricultural Act
of 2014, and any provision of law amended by
such Act; and
``(G) performing evaluation and outcome-
based studies to provide to the Secretary
information on the effectiveness and impact of
training and metrics on jurisdictions and
sectors within the food safety system.
``(4) Membership.--An eligible entity may alter the
consortium membership to meet specific training
expertise needs.
``(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $20,000,000 for each of fiscal years 2014
through 2018, to remain available until expended.'';
(8) in subsection (g) (as redesignated by such
section)--
(A) by striking ``2012'' each place it
appears in paragraphs (1)(B), (2)(B), and (3)
and inserting ``2018'';
(B) in paragraph (3)--
(i) in the heading, by striking
``pest and pathogen''; and
(ii) by striking ``pest and
pathogen surveillance'' and inserting
``pest, pathogen, health, and
population status surveillance'';
(C) by redesignating paragraph (4) as
paragraph (5);
(D) by inserting after paragraph (3) the
following new paragraph:
``(4) Consultation.--The Secretary, in consultation
with the Secretary of the Interior and the
Administrator of the Environmental Protection Agency,
shall publish guidance on enhancing pollinator health
and the long-term viability of populations of
pollinators, including recommendations related to--
``(A) allowing for managed honey bees to
forage on National Forest System lands where
compatible with other natural resource
management priorities; and
``(B) planting and maintaining managed
honey bee and native pollinator foraging on
National Forest System lands where compatible
with other natural resource management
priorities.''; and
(E) in paragraph (5) (as redesignated by
subparagraph (C))--
(i) by redesignating subparagraphs
(A) and (B) as clauses (i) and (ii),
respectively, and moving the margins of
such subparagraphs two ems to the
right;
(ii) by striking ``annual report
describing'' and inserting the
following: ``annual report--
``(A) describing'';
(iii) in clause (i) (as
redesignated by clause (i) of this
subparagraph)--
(I) by inserting ``and
honey bee health disorders''
after ``collapse''; and
(II) by striking ``and'' at
the end;
(iv) in clause (ii) (as
redesignated by clause (i) of this
subparagraph)--
(I) by inserting ``,
including best management
practices'' after
``strategies''; and
(II) by striking the period
at the end and inserting ``;
and'';
(v) by adding at the end the
following new clause:
``(iii) addressing the decline of
managed honey bees and native
pollinators;''; and
(vi) by adding at the end the
following new subparagraphs:
``(B) assessing Federal efforts to mitigate
pollinator losses and threats to the United
States commercial beekeeping industry; and
``(C) providing recommendations to Congress
regarding how to better coordinate Federal
agency efforts to address the decline of
managed honey bees and native pollinators.'';
and
(9) in subsection (h) (as redesignated by paragraph
(4)), by striking ``2012'' and inserting ``2018''.
SEC. 7210. REPEAL OF NUTRIENT MANAGEMENT RESEARCH AND EXTENSION
INITIATIVE.
Section 1672A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925a) is repealed.
SEC. 7211. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.
Section 1672B of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925b) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1),
by inserting ``, education,'' after ``support
research'';
(B) in paragraph (1), by inserting ``and
improvement'' after ``development'';
(C) in paragraph (2), by striking ``to
producers and processors who use organic
methods'' and inserting ``of organic
agricultural production and methods to
producers, processors, and rural communities'';
and
(D) in paragraph (6), by striking ``and
marketing and to socioeconomic conditions'' and
inserting ``, marketing, food safety,
socioeconomic conditions, and farm business
management''; and
(2) in subsection (e) (as redesignated by section
7128(b)(2)(D)(ii))--
(A) in paragraph (1)--
(i) in the heading, by striking
``for fiscal years 2009 through 2012'';
(ii) in subparagraph (A), by
striking ``and'' at the end;
(iii) in subparagraph (B), by
striking the period at the end and
inserting ``; and''; and
(iv) by adding at the end the
following:
``(C) $20,000,000 for each of fiscal years
2014 through 2018.''; and
(B) in paragraph (2)--
(i) in the heading, by striking
``2009 through 2012'' and inserting
``2014 through 2018''; and
(ii) by striking ``2009 through
2012'' and inserting ``2014 through
2018''.
SEC. 7212. REPEAL OF AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY
EFFICIENCY RESEARCH AND EXTENSION INITIATIVE.
(a) Repeal.--Section 1672C of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925e) is
repealed.
(b) Conforming Amendment.--Section 251(f)(1)(D) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6971(f)(1)(D)) is amended--
(1) by striking clause (xi); and
(2) by redesignating clauses (xii) and (xiii) as
clauses (xi) and (xii), respectively.
SEC. 7213. FARM BUSINESS MANAGEMENT.
Section 1672D(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5925f(d)) is amended by
striking ``such sums as are necessary to carry out this
section.'' and inserting the following: ``to carry out this
section--
``(1) such sums as are necessary for fiscal year
2013; and
``(2) $5,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7214. CENTERS OF EXCELLENCE.
(a) In General.--The Food, Agriculture, Conservation, and
Trade Act of 1990 is amended by inserting after section 1672D
(7 U.S.C. 5925f) the following new section:
``SEC. 1673. CENTERS OF EXCELLENCE.
``(a) Funding Priorities.--The Secretary shall prioritize
centers of excellence established for purposes of carrying out
research, extension, and education activities relating to the
food and agricultural sciences (as defined in section 1404 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)) for the receipt of funding
for any competitive research or extension program administered
by the Secretary.
``(b) Composition.--A center of excellence is composed of 1
or more of the eligible entities specified in subsection (b)(7)
of the Competitive, Special, and Facilities Research Grant Act
(7 U.S.C. 450i(b)(7)) that provide financial or in-kind support
to the center of excellence.
``(c) Criteria for Centers of Excellence.--
``(1) Required efforts.--The criteria for
recognition as a center of excellence shall include
efforts--
``(A) to ensure coordination and cost
effectiveness by reducing unnecessarily
duplicative efforts regarding research,
teaching, and extension;
``(B) to leverage available resources by
using public-private partnerships among
agricultural industry groups, institutions of
higher education, and the Federal Government;
``(C) to implement teaching initiatives to
increase awareness and effectively disseminate
solutions to target audiences through extension
activities; and
``(D) to increase the economic returns to
rural communities by identifying, attracting,
and directing funds to high-priority
agricultural issues.
``(2) Additional efforts.--Where practicable, the
criteria for recognition as a center of excellence
shall include efforts to improve teaching capacity and
infrastructure at colleges and universities (including
land-grant colleges and universities, cooperating
forestry schools, NLGCA Institutions (as those terms
are defined in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)), and schools of veterinary
medicine).''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 2014.
SEC. 7215. REPEAL OF RED MEAT SAFETY RESEARCH CENTER.
Section 1676 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5929) is repealed.
SEC. 7216. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended--
(1) by striking ``is'' and inserting ``are''; and
(2) by striking ``section'' and all that follows
and inserting the following: ``section--
``(A) $6,000,000 for each of fiscal years
1999 through 2013; and
``(B) $5,000,000 for each of fiscal years
2014 through 2018.''.
SEC. 7217. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking
``2012'' and inserting ``2018''.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION FUNDED BY THE DEPARTMENT.
Section 103(a)(2) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is
amended--
(1) in the heading by striking ``Merit review of
extension'' and inserting ``Relevance and merit review
of research, extension,'';
(2) in subparagraph (A)--
(A) by inserting ``relevance and'' before
``merit''; and
(B) by striking ``extension or education''
and inserting ``research, extension, or
education''; and
(3) in subparagraph (B), by inserting ``on a
continuous basis'' after ``procedures''.
SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
GRANTS PROGRAM.
Subsection (e) of section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7626) (as
redesignated by section 7128(b)(3)(A)(ii)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE,
AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY
TILLETIA INDICA.
Section 408(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended to
read as follows:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as may be necessary for each of
fiscal years 1999 through 2013; and
``(2) $10,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7304. REPEAL OF BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
Section 409 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629) is repealed.
SEC. 7305. GRANTS FOR YOUTH ORGANIZATIONS.
Section 410(d) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by
striking ``section such sums as are necessary'' and all that
follows and inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal
years 2008 through 2013; and
``(2) $3,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7306. SPECIALTY CROP RESEARCH INITIATIVE.
Section 412 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7632) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1) and (2)
as paragraphs (2) and (3), respectively;
(B) by inserting before paragraph (2) (as
so redesignated), the following new paragraph:
``(1) Citrus disease subcommittee.--The term
`citrus disease subcommittee' means the subcommittee
established under section 1408A(a)(2) of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977.'';and
(C) by adding at the end the following new
paragraph:
``(4) Specialty crops committee.--The term
`specialty crops committee' means the committee
established under section 1408A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a).'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``and
genomics'' and inserting ``genomics, and other
methods''; and
(B) in paragraph (3), by inserting
``handling and processing,'' after ``production
efficiency,'';
(3) in subsection (c), in the matter preceding
paragraph (1), by striking ``the Initiative'' and
inserting ``this section'';
(4) by striking subsection (d) and inserting the
following new subsection:
``(d) Review of Proposals.--In carrying out this section,
the Secretary shall award competitive grants on the basis of--
``(1) a scientific peer review conducted by a panel
of subject matter experts from Federal agencies, non-
Federal entities, and the specialty crop industry; and
``(2) a review and ranking for merit, relevance,
and impact conducted by a panel of specialty crop
industry representatives for the specific specialty
crop.'';
(5) by redesignating subsections (e) (as amended by
section 7128(b)(3)(B)), (f), (g), and (h) as
subsections (g), (h), (i), and (k), respectively;
(6) by inserting after subsection (d) the following
new subsections:
``(e) Consultation.--Each fiscal year, before conducting
the scientific peer review described in paragraph (1) of
subsection (d) and the merit and relevancy review described in
paragraph (2) of such subsection, the Secretary shall consult
with the specialty crops committee regarding such reviews. The
committee shall provide the Secretary--
``(1) in the first fiscal year in which that
consultation occurs, any recommendations for conducting
such reviews in such fiscal year; and
``(2) in any subsequent fiscal year in which such
consultation occurs--
``(A) an assessment of the procedures and
objectives used by the Secretary for such
reviews in the previous fiscal year;
``(B) any recommendations for such reviews
for the current fiscal year; and
``(C) any comments on grants awarded under
subsection (d) during the previous fiscal year.
``(f) Report.--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--
``(1) the results of the consultations with the
specialty crops committee (and subcommittees thereof)
conducted under subsection (e) of this section and
subsection (g) of section 1408A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a);
``(2) the specialty crops committee's (and
subcommittees thereof) recommendations, if any,
provided to the Secretary during such consultations;
and
``(3) the specialty crops committee's (and
subcommittees thereof) review of the grants awarded
under subsection (d) and (j), as applicable, in the
previous fiscal year.'';
(7) in subsection (g) (as so redesignated)--
(A) by striking paragraph (1) and inserting
the following new paragraph:
``(1) In general.--With respect to grants awarded
under this section, the Secretary shall seek and accept
proposals for grants.''; and
(B) in paragraph (3) (as redesignated by
section 7128(b)(3)(B)), by striking ``this
section'' and inserting ``the Initiative'';
(8) in subsection (h) (as so redesignated), in the
matter preceding paragraph (1), by striking ``this
section'' and inserting ``the Initiative'';
(9) in subsection (k) (as so redesignated)--
(A) in paragraph (1)--
(i) by striking ``(1) Mandatory
funding for fiscal years 2008 through
2012.--Of the funds'' and inserting the
following:
``(1) Mandatory funding.--
``(A) Fiscal years 2008 through 2012.--Of
the funds''; and
(ii) by adding at the end the
following new subparagraph:
``(B) Subsequent funding.--Of the funds of
the Commodity Credit Corporation, the Secretary
shall make available to carry out this section
$80,000,000 for fiscal year 2014 and each
fiscal year thereafter.
``(C) Reservation.--For each of fiscal
years 2014 through 2018, the Secretary shall
reserve not less than $25,000,000 of the funds
made available under subparagraph (B) to carry
out the program established under subsection
(j).
``(D) Availability of funds.--Funds
reserved under subparagraph (C) shall remain
available and reserved for the purpose
described in such subparagraph until
expended.''; and
(B) in paragraph (2)--
(i) in the heading, by striking
``2008 through 2012'' and inserting
``2014 through 2018''; and
(ii) by striking ``2008 through
2012'' and inserting ``2014 through
2018''; and
(10) by inserting after subsection (i) the
following new subsection:
``(j) Emergency Citrus Disease Research and Extension
Program.--
``(1) Establishment and purpose.--The Secretary
shall establish a competitive research and extension
grant program to combat diseases of citrus under which
the Secretary awards competitive grants to eligible
entities--
``(A) to conduct scientific research and
extension activities, technical assistance, and
development activities to combat citrus
diseases and pests, both domestic and invasive,
which pose imminent harm to the United States
citrus production and threaten the future
viability of the citrus industry, including
huanglongbing and the Asian Citrus Psyllid; and
``(B) to provide support for the
dissemination and commercialization of relevant
information, techniques, and technologies
discovered pursuant to research and extension
activities funded through--
``(i) the emergency citrus disease
research and extension program; or
``(ii) other research and extension
projects intended to solve problems
caused by citrus production diseases
and invasive pests.
``(2) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to grants
that address the research and extension priorities
established pursuant to subsection (g)(4) of section
1408A of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3123a).
``(3) Coordination.--When developing the proposed
research and extension agenda and budget under
subsection (g)(2) of section 1408A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3123a) for the funds made
available under this subsection for a fiscal year, the
citrus disease subcommittee shall--
``(A) seek input from Federal and State
agencies and other entities involved in citrus
disease response; and
``(B) take into account other public and
private citrus-related research and extension
projects and the funding for such projects.
``(4) Nonduplication.--The Secretary shall ensure
that funds made available to carry out the emergency
citrus disease research and extension activities under
this subsection shall be in addition to and not
supplant funds made available to carry out other citrus
disease activities carried out by the Department of
Agriculture in consultation with State agencies.
``(5) Authorization of appropriations.--In addition
to the amounts reserved under subsection (k)(1)(C),
there are authorized to be appropriated to carry out
this subsection, $25,000,000 for each of fiscal years
2014 through 2018.
``(6) Definitions.--In this subsection:
``(A) Citrus.--The term `citrus' means
edible fruit of the family Rutaceae, including
any hybrid of such fruits and products of such
hybrids that are produced for commercial
purposes in the United States.
``(B) Citrus producer.--The term `citrus
producer' means any person that is engaged in
the domestic production and commercial sale of
citrus in the United States.
``(C) Emergency citrus disease research and
extension program.--The term `emergency citrus
disease research and extension program' means
the emergency citrus research and extension
grant program established under this
subsection.''.
SEC. 7307. [H7308] FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
Section 604(e) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 7308. REPEAL OF NATIONAL SWINE RESEARCH CENTER.
Section 612 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (Public Law 105-185; 112 Stat.
605) is repealed.
SEC. 7309. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``section'' and all that follows
and inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal
years 1999 through 2013; and
``(2) $3,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7310. FORESTRY PRODUCTS ADVANCED UTILIZATION RESEARCH.
Subtitle B of title VI of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et
seq.) is amended by inserting after section 616 (7 U.S.C. 7655)
the following new section:
``SEC. 617. FORESTRY PRODUCTS ADVANCED UTILIZATION RESEARCH.
``(a) Establishment.--The Secretary shall establish a
forestry and forestry products research and extension
initiative to develop and disseminate science-based tools that
address the needs of the forestry sector and their respective
regions, forest and timberland owners and managers, and
forestry products engineering, manufacturing, and related
interests.
``(b) Activities.--The initiative described in subsection
(a) shall include the following activities:
``(1) Research conducted for purposes of--
``(A) wood quality improvement with respect
to lumber strength and grade yield;
``(B) the development of novel engineered
lumber products and renewable energy from wood;
and
``(C) enhancing the longevity,
sustainability, and profitability of timberland
through sound management and utilization.
``(2) Demonstration activities and technology
transfer to demonstrate the beneficial characteristics
of wood as a green building material, including
investments in life cycle assessment for wood products.
``(3) Projects designed to improve--
``(A) forestry products, lumber, and
evaluation standards and valuation techniques;
``(B) lumber quality and value-based, on-
forest management techniques; and
``(C) forestry products conversion and
manufacturing efficiency, productivity, and
profitability over the long term (including
forestry product marketing).
``(c) Grants.--
``(1) In general.--The Secretary shall make
competitive grants to carry out the activities
described in subsection (b).
``(2) Priorities.--In making grants under this
section, the Secretary shall give higher priority to
activities that are carried out by entities that--
``(A) are multistate, multiinstitutional,
or multidisciplinary;
``(B) have explicit mechanisms to
communicate results to producers, forestry
industry stakeholders, policymakers, and the
public; and
``(C) have--
``(i) extensive history and
demonstrated experience in forestry and
forestry products research;
``(ii) existing capacity in
forestry products research and
dissemination; and
``(iii) a demonstrated means of
evaluating and responding to the needs
of the related commercial sector.
``(3) Administration.--In making grants under this
section, the Secretary shall follow the requirements of
paragraphs (4), (7), (8), and (11)(B) of subsection (b)
of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i).
``(4) Term.--The term of a grant made under this
section may not exceed 10 years.
``(d) Coordination.-- The Secretary shall ensure that any
activities carried out under this section are carried out in
coordination with the Forest Service, including the Forest
Products Laboratory, and other appropriate agencies of the
Department.
``(e) Report.--The Secretary shall submit an annual report
to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate describing, for the period covered by the report--
``(1) the research that has been conducted under
paragraph (2) of subsection (b);
``(2) the number of buildings the Forest Service
has built with wood as the primary structural material;
and
``(3) the investments made by the Forest Service in
green building and wood promotion.
``(f) Authorization of Appropriations.--
``(1) In general.--There are authorized to be
appropriated to carry out this section $7,000,000 for
each of fiscal years 2014 through 2018.
``(2) Matching funds.--To the extent practicable,
the Secretary shall match any funds made available
under paragraph (1) with funds made available under
section 7 of the Forest and Rangeland Renewable
Resources Research Act of 1978 (16 U.S.C.1646).''.
SEC. 7311. REPEAL OF STUDIES OF AGRICULTURAL RESEARCH, EXTENSION, AND
EDUCATION.
Subtitle C of title VI of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7671 et
seq.) is repealed.
Subtitle D--Other Laws
SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.
Section 16(a) of the Critical Agricultural Materials Act (7
U.S.C. 178n(a)) is amended--
(1) by striking ``such sums as are necessary''; and
(2) by striking ``Act'' and all that follows and
inserting the following: ``Act--
``(1) such sums as are necessary for each of fiscal
years 1991 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) Definition of 1994 Institution.--
(1) In general.--Section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301
note; Public Law 103-382) is amended to read as
follows:
``SEC. 532. DEFINITION OF 1994 INSTITUTION.
``In this part, the term `1994 Institution' means any of
the following colleges:
``(1) Aaniiih Nakoda College.
``(2) Bay Mills Community College.
``(3) Blackfeet Community College.
``(4) Cankdeska Cikana Community College.
``(5) Chief Dull Knife College.
``(6) College of Menominee Nation.
``(7) College of the Muscogee Nation.
``(8) D-Q University.
``(9) Dine College.
``(10) Fond du Lac Tribal and Community College.
``(11) Fort Berthold Community College.
``(12) Fort Peck Community College.
``(13) Haskell Indian Nations University.
``(14) Ilisagvik College.
``(15) Institute of American Indian and Alaska
Native Culture and Arts Development.
``(16) Keweenaw Bay Ojibwa Community College.
``(17) Lac Courte Oreilles Ojibwa Community
College.
``(18) Leech Lake Tribal College.
``(19) Little Big Horn College.
``(20) Little Priest Tribal College.
``(21) Navajo Technical College.
``(22) Nebraska Indian Community College.
``(23) Northwest Indian College.
``(24) Oglala Lakota College.
``(25) Saginaw Chippewa Tribal College.
``(26) Salish Kootenai College.
``(27) Sinte Gleska University.
``(28) Sisseton Wahpeton College.
``(29) Sitting Bull College.
``(30) Southwestern Indian Polytechnic Institute.
``(31) Stone Child College.
``(32) Tohono O'odham Community College.
``(33) Turtle Mountain Community College.
``(34) United Tribes Technical College.
``(35) White Earth Tribal and Community College.''.
(2) Effective date.--The amendments made by
paragraph (1) shall take effect on October 1, 2014.
(b) Endowment for 1994 Institutions.--Section 533(b) of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended in the first sentence
by striking ``2012'' and inserting ``2018''.
(c) Institutional Capacity Building Grants.--Section 535 of
the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103-382) is amended by striking
``2012'' each place it appears in subsections (b)(1) and (c)
and inserting ``2018''.
(d) Research Grants.--
(1) Authorization of appropriations.--Section
536(c) of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is
amended in the first sentence by striking ``2012'' and
inserting ``2018''.
(2) Research grant requirements.--Section 536(b) of
the Equity in Educational Land-Grant Status Act of 1994
(7 U.S.C. 301 note; Public Law 103-382) is amended by
striking ``with at least 1 other land-grant college or
university'' and all that follows and inserting the
following: ``with--
``(1) the Agricultural Research Service of the
Department of Agriculture; or
``(2) at least 1--
``(A) other land-grant college or
university (exclusive of another 1994
Institution);
``(B) non-land-grant college of agriculture
(as defined in section 1404 of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)); or
``(C) cooperating forestry school (as
defined in that section).''.
SEC. 7403. RESEARCH FACILITIES ACT.
Section 6(a) of the Research Facilities Act (7 U.S.C.
390d(a)) is amended by striking ``2012'' and inserting
``2018''.
SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT.
(a) Extension.--Subsection (b)(11)(A) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)(11)(A)) is amended, in the matter preceding clause (i),
by striking ``2012'' and inserting ``2018''.
(b) Priority Areas.--Subsection (b)(2) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C.
450i(b)(2)) is amended--
(1) in subparagraph (B)--
(A) in clause (vii), by striking ``and'' at
the end;
(B) in clause (viii), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following new
clauses:
``(ix) the research and development
of surveillance methods, vaccines,
vaccination delivery systems, or
diagnostic tests for pests and
diseases, including--
``(I) epizootic diseases in
domestic livestock (including
deer, elk, bison, and other
animals of the family
Cervidae); and
``(II) zoonotic diseases
(including bovine brucellosis
and bovine tuberculosis) in
domestic livestock or wildlife
reservoirs that present a
potential concern to public
health; and
``(x) the identification of animal
drug needs and the generation and
dissemination of data for safe and
effective therapeutic applications of
animal drugs for minor species and
minor uses of such drugs in major
species.'';
(2) in subparagraph (D)--
(A) in the heading, by striking ``Renewable
energy'' and inserting ``Bioenergy'';
(B) by redesignating clauses (iv), (v), and
(vi) as clauses (v), (vi), and (vii),
respectively; and
(C) by inserting after clause (iii) the
following new clause:
``(iv) the effectiveness of
conservation practices and technologies
designed to address nutrient losses and
improve water quality;''; and
(3) in subparagraph (F)--
(A) in the matter preceding clause (i), by
inserting ``economics,'' after ``trade,'';
(B) by redesignating clauses (v) and (vi)
as clauses (vi) and (vii), respectively; and
(C) by inserting after clause (iv) the
following new clause:
``(v) the economic costs, benefits,
and viability of producers adopting
conservation practices and technologies
designed to improve water quality;''.
(c) General Administration.--Subsection (b)(4) of the
Competitive, Special, and Facilities Research Grant Act (7
U.S.C. 450i(b)(4)) is amended--
(1) in subparagraph (D), by striking ``and'' at the
end;
(2) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following new
subparagraph:
``(F) establish procedures, including
timelines, under which an entity established
under a commodity promotion law (as such term
is defined under section 501(a) of the Federal
Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7401(a))) or a State commodity board
(or other equivalent State entity) may directly
submit to the Secretary for consideration
proposals for requests for applications that
specifically address particular issues related
to the priority areas specified in paragraph
(2). ''.
(d) Special Considerations.--Subsection (b)(6) of the
Competitive, Special, and Facilities Research Grant Act (7
U.S.C. 450i(b)(6)) is amended--
(1) in subparagraph (C), by striking ``and'' at the
end;
(2) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following new
subparagraph:
``(E) to eligible entities to carry out the
specific proposals submitted under procedures
established under paragraph (4)(F) only if such
specific proposals are consistent with a
priority area specified in paragraph (2).''.
(e) Eligible Entities.--Subsection (b)(7)(G) of the
Competitive, Special, and Facilities Research Grant Act (7
U.S.C. 450i(b)(7)(G)) is amended by striking ``or
corporations'' and inserting ``, foundations, or
corporations''.
(f) Special Contribution Requirement for Certain Grants.--
Subsection (b)(9) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)(9)) (as amended by section
7128(b)(4)) is amended by adding at the end the following new
subparagraph:
``(B) Contribution requirement for
commodity promotion grants.--
``(i) In general.--Subject to
clauses (ii) and (iii), as a condition
of funding a grant under paragraph
(6)(E), the Secretary shall require
that the grant be matched with an equal
contribution of funds from the entities
described in paragraph (4)(F)
submitting proposals under procedures
established under such paragraph.
``(ii) Availability of funds.--
``(I) In general.--
Contributions required by
clause (i) shall be available
to the Secretary for obligation
and remain available until
expended for the purpose of
making grants under paragraph
(6)(E).
``(II) Administration.--Of
amounts contributed to the
Secretary under clause (i), not
more than 4 percent may be
retained by the Secretary to
pay administrative costs
incurred by the Secretary in
carrying out this subsection.
``(III) Restriction.--Funds
contributed to the Secretary by
an entity under clause (i) in
connection with a proposal
submitted by that entity under
procedures established under
paragraph (4)(F) may only be
used to fund grants in
connection with that proposal.
``(IV) Remaining funds.--
Funds contributed to the
Secretary by an entity under
clause (i) that remain
unobligated at the time of
grant closeout shall be
returned to that entity.
``(V) Indirect costs.--The
indirect cost rate applicable
to appropriated funds for a
grant funded under paragraph
(6)(E) shall apply to amounts
contributed by an entity under
clause (i).
``(iii) Other matching funds
requirements.--The contribution
requirement under clause (i) shall be
in addition to any matching funds
requirement for grant recipients
required by section 1492 of the
National Agricultural Research,
Extension, and Teaching Policy Act of
1977.''.
(g) Inter-Regional Research Project Number 4.--Subsection
(e) of the Competitive, Special, and Facilities Research Grant
Act (7 U.S.C. 450i(e)) is amended--
(1) in paragraph (1)(A), by striking ``minor use
pesticides'' and inserting ``pesticides for minor
agricultural use and for use on specialty crops (as
defined in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note)),'';
and
(2) in paragraph (4)--
(A) in subparagraph (A), by inserting ``and
for use on specialty crops'' after ``minor
agricultural use'';
(B) in subparagraph (B), by striking
``and'' at the end;
(C) by redesignating subparagraph (C) as
subparagraph (G); and
(D) by inserting after subparagraph (B) the
following new subparagraphs:
``(C) prioritize potential pest management
technology for minor agricultural use and for
use on specialty crops;
``(D) conduct research to develop the data
necessary to facilitate pesticide
registrations, reregistrations, and associated
tolerances;
``(E) assist in removing trade barriers
caused by residues of pesticides registered for
minor agricultural use and for use on
domestically grown specialty crops;
``(F) assist in the registration and
reregistration of pest management technologies
for minor agricultural use and for use on
specialty crops; and''.
SEC. 7405. RENEWABLE RESOURCES EXTENSION ACT OF 1978.
(a) Authorization of Appropriations.--Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is
amended in the first sentence by striking ``2012'' and
inserting ``2018''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306)
is amended by striking ``2012'' and inserting ``2018''.
SEC. 7406. NATIONAL AQUACULTURE ACT OF 1980.
Section 10 of the National Aquaculture Act of 1980 (16
U.S.C. 2809) is amended by striking ``2012'' each place it
appears and inserting ``2018''.
SEC. 7407. REPEAL OF USE OF REMOTE SENSING DATA.
Section 892 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 5935) is repealed.
SEC. 7408. REPEAL OF REPORTS UNDER FARM SECURITY AND RURAL INVESTMENT
ACT OF 2002.
(a) Repeal of Report on Producers and Handlers for Organic
Products.--Section 7409 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 5925b note; Public Law 107-
171) is repealed.
(b) Repeal of Report on Genetically Modified Pest-Protected
Plants.--Section 7410 of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 462) is repealed.
(c) Repeal of Study on Nutrient Banking.--Section 7411 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
5925a note; Public Law 107-171) is repealed.
SEC. 7409. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
Section 7405 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3319f) is amended--
(1) in subsection (c)--
(A) in paragraph (1), by striking
subparagraphs (A) through (R) and inserting the
following new subparagraphs:
``(A) basic livestock, forest management,
and crop farming practices;
``(B) innovative farm, ranch, and private,
nonindustrial forest land transfer strategies;
``(C) entrepreneurship and business
training;
``(D) financial and risk management
training (including the acquisition and
management of agricultural credit);
``(E) natural resource management and
planning;
``(F) diversification and marketing
strategies;
``(G) curriculum development;
``(H) mentoring, apprenticeships, and
internships;
``(I) resources and referral;
``(J) farm financial benchmarking;
``(K) assisting beginning farmers or
ranchers in acquiring land from retiring
farmers and ranchers;
``(L) agricultural rehabilitation and
vocational training for veterans;
``(M) farm safety and awareness; and
``(N) other similar subject areas of use to
beginning farmers or ranchers.'';
(B) in paragraph (2)(C), by striking ``and
nongovernmental organization'' and inserting
``or nongovernmental organization'';
(C) in paragraph (7), by striking ``and
community-based organizations'' and inserting
``, community-based organizations, and school-
based agricultural educational organizations'';
(D) by striking paragraph (8) and inserting
the following new paragraph:
``(8) Set-asides.--
``(A) In general.--Not less than 5 percent
of the funds used to carry out this subsection
for a fiscal year shall be used to support
programs and services that address the needs
of--
``(i) limited resource beginning
farmers or ranchers (as defined by the
Secretary);
``(ii) socially disadvantaged
farmers or ranchers (as defined in
section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C.
2003(e)) who are beginning farmers or
ranchers; and
``(iii) farmworkers desiring to
become farmers or ranchers.
``(B) Veteran farmers and ranchers.--Not
less than 5 percent of the funds used to carry
out this subsection for a fiscal year shall be
used to support programs and services that
address the needs of veteran farmers and
ranchers (as defined in section 2501(e) of the
Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(e))). ''; and
(E) by adding at the end the following new
paragraphs:
``(11) Limitation on indirect costs.--A recipient
of a grant under this subsection may not use more than
10 percent of the funds provided by the grant for the
indirect costs of carrying out the initiatives
described in paragraph (1).
``(12) Coordination permitted.--A recipient of a
grant under this subsection using the grant as
described in paragraph (8)(B) may coordinate with a
recipient of a grant under section 1680 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5933) in addressing the needs of veteran farmers
and ranchers with disabilities.'';
(2) in subsection (h)(1)--
(A) in the paragraph heading, by striking
``2012'' and inserting ``2018'';
(B) in subparagraph (A), by striking
``and'' at the end;
(C) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(D) by adding at the end the following new
subparagraph:
``(C) $20,000,000 for each of fiscal years
2014 through 2018, to remain available until
expended.''; and
(3) in subsection (h)(2)--
(A) in the paragraph heading, by striking
``2008 through 2012'' and inserting ``2014
through 2018''; and
(B) by striking ``2008 through 2012'' and
inserting ``2014 through 2018''.
SEC. 7410. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
POLICY ACT AMENDMENTS OF 1985.
Section 1431 of the National Agricultural Research,
Extension, and Teaching Policy Act Amendments of 1985 (Public
Law 99-198; 99 Stat. 1556) is amended by striking ``2012'' and
inserting ``2018''.
Subtitle E--Food, Conservation, and Energy Act of 2008
PART I--AGRICULTURAL SECURITY
SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.
Section 14112(c) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8912(c)) is amended to read as follows:
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal
years 2008 through 2013; and
``(2) $2,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
BIOSECURITY PLANNING, PREPARATION, AND RESPONSE.
Section 14113 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8913) is amended--
(1) in subsection (a)(2)--
(A) by striking ``such sums as may be
necessary''; and
(B) by striking ``subsection'' and all that
follows and inserting the following:
``subsection--
``(A) such sums as are necessary for each
of fiscal years 2008 through 2013; and
``(B) $15,000,000 for each of fiscal years
2014 through 2018.''; and
(2) in subsection (b)(2), by striking ``is
authorized to be appropriated to carry out this
subsection'' and all that follows and inserting the
following: ``are authorized to be appropriated to carry
out this subsection--
``(A) $25,000,000 for each of fiscal years
2008 through 2013; and
``(B) $15,000,000 for each of fiscal years
2014 through 2018.''.
SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.
Section 14121(b) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8921(b)) is amended by striking ``is
authorized to be appropriated to carry out this section'' and
all that follows and inserting the following: ``are authorized
to be appropriated to carry out this section--
``(1) $50,000,000 for each of fiscal years 2008
through 2013; and
``(2) $15,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM.
Section 14122(e) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8922(e)) is amended--
(1) by striking ``sums as are necessary''; and
(2) by striking ``section'' and all that follows
and inserting the following: ``section--
``(1) such sums as are necessary for each of fiscal
years 2008 through 2013, to remain available until
expended; and
``(2) $5,000,000 for each of fiscal years 2014
through 2018, to remain available until expended.''.
PART II--MISCELLANEOUS PROVISIONS
SEC. 7511. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
Section 308 of the Federal Crop Insurance Reform and
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
3125a) is amended--
(1) in subsection (b)(6)(A), by striking ``5
years'' and inserting ``10 years''; and
(2) in subsection (d)(2), in the matter preceding
subparagraph (A), by striking ``1, 3, and 5 years'' and
inserting ``6, 8, and 10 years''.
SEC. 7512. GRAZINGLANDS RESEARCH LABORATORY.
Section 7502 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 2019) is amended by
striking ``5-year period'' and inserting ``10-year period''.
SEC. 7513. BUDGET SUBMISSION AND FUNDING.
Section 7506 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 7614c) is amended--
(1) by striking subsection (a) and inserting the
following new subsection:
``(a) Definitions.--In this section:
``(1) Covered program.--The term `covered program'
means--
``(A) each research program carried out by
the Agricultural Research Service or the
Economic Research Service for which annual
appropriations are requested in the annual
budget submission of the President; and
``(B) each competitive program carried out
by the National Institute of Food and
Agriculture for which annual appropriations are
requested in the annual budget submission of
the President.
``(2) Request for applications.--The term `request
for applications' means a funding announcement
published by the National Institute of Food and
Agriculture that provides detailed information on
funding opportunities at the Institute, including the
purpose, eligibility, restriction, focus areas,
evaluation criteria, regulatory information, and
instructions on how to apply for such opportunities.'';
and
(2) by adding at the end the following new
subsections:
``(e) Additional Presidential Budget Submission
Requirement.--
``(1) In general.--Each year, the President shall
submit to Congress for each funding request for a
covered program--
``(A) in the case of the information
described in paragraph (2), such information
together with the annual budget submission of
the President; and
``(B) in the case of any additional
information described in paragraph (3), such
additional information within a reasonable
period that begins after the date of the annual
budget submission of the President.
``(2) Information described.--The information
described in this paragraph includes--
``(A) baseline information, including with
respect to each covered program--
``(i) the funding level for the
program for the fiscal year preceding
the year for which the annual budget
submission of the President is
submitted;
``(ii) the funding level requested
in the annual budget submission of the
President, including any increase or
decrease in the funding level; and
``(iii) an explanation justifying
any change from the funding level
specified in clause (i) to the level
specified in clause (ii);
``(B) with respect to each covered program
that is carried out by the Economic Research
Service or the Agricultural Research Service,
the location and staff years of the program;
``(C) the proposed funding levels to be
allocated to, and the expected publication
date, scope, and allocation level for, each
request for applications to be published under
or associated with--
``(i) each priority area specified
in subsection (b)(2) of the
Competitive, Special, and Facilities
Research Grant Act (7 U.S.C.
450i(b)(2));
``(ii) each research and extension
project carried out under section
1621(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7
U.S.C. 5811(a));
``(iii) each grant awarded under
section 1672B(a) of the Food,
Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925b(a));
``(iv) each grant awarded under
section 412(d) of the Agricultural
Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7632(d));
and
``(v) each grant awarded under
section 7405(c)(1) of the Farm Security
and Rural Investment Act of 2002 (7
U.S.C. 3319f(c)(1)); and
``(D) any other information the Secretary
determines will increase congressional
oversight with respect to covered programs.
``(3) additional information described.--The
additional information described in this paragraph is
information that the Secretary, after consulting with
the Committee on Agriculture of the House of
Representatives, the Committee on Agriculture,
Nutrition, and Forestry of the Senate, and the
Subcommittees on Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies of the
Committee on Appropriations of the House of
Representatives and the Senate, determines is a
necessary revision or clarification to the information
described in paragraph (2).
``(4) Prohibition.--Unless the President submits
the information described in paragraph (2)(C) for a
fiscal year, the President may not carry out any
program during that fiscal year that is authorized
under--
``(A) subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7
U.S.C. 450i(b));
``(B) section 1621 of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5811);
``(C) section 1672B of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925b);
``(D) section 412 of the Agricultural
Research, Extension, and Education Reform Act
of 1998 (7 U.S.C. 7632); or
``(E) section 7405 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 3319f).
``(f) Report of the Secretary of Agriculture.--Each year on
a date that is not later than the date on which the President
submits the annual budget, the Secretary shall submit to
Congress a report containing a description of the agricultural
research, extension, and education activities carried out by
the Federal Government during the fiscal year that immediately
precedes the year for which the report is submitted,
including--
``(1) a review of the extent to which those
activities--
``(A) are duplicative or overlap within the
Department of Agriculture; or
``(B) are similar to activities carried out
by--
``(i) other Federal agencies;
``(ii) the States (including the
District of Columbia, the Commonwealth
of Puerto Rico and other territories or
possessions of the United States);
``(iii) institutions of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001)); or
``(iv) the private sector; and
``(2) for each report submitted under this section
on or after January 1, 2014, a 5-year projection of
national priorities with respect to agricultural
research, extension, and education, taking into account
domestic needs.
``(g) Interchangeability of Funds.--Nothing in this section
shall be construed so as to limit the authority of the
Secretary under section 702(b) of the Department of Agriculture
Organic Act of 1944 (7 U.S.C. 2257(b)), with respect to the
reprogramming or transfer of funds.''.
SEC. 7514. REPEAL OF SEED DISTRIBUTION.
Section 7523 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 415-1) is repealed.
SEC. 7515. NATURAL PRODUCTS RESEARCH PROGRAM.
Section 7525(e) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 5937(e)) is amended to read as follows:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$7,000,000 for each of fiscal years 2014 through 2018.''.
SEC. 7516. SUN GRANT PROGRAM.
(a) In General.--Section 7526 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8114) is amended--
(1) in subsection (a)(4)(B), by striking ``the
Department of Energy'' and inserting ``other
appropriate Federal agencies (as determined by the
Secretary)'';
(2) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``at
South Dakota State University'';
(B) in subparagraph (B), by striking ``at
the University of Tennessee at Knoxville'';
(C) in subparagraph (C), by striking ``at
Oklahoma State University'';
(D) in subparagraph (D), by striking ``at
Oregon State University'';
(E) in subparagraph (E), by striking ``at
Cornell University''; and
(F) in subparagraph (F), by striking ``at
the University of Hawaii'';
(3) in subsection (c)(1)--
(A) in subparagraph (B), by striking
``multistate'' and all that follows through
``technology implementation'' and inserting
``integrated, multistate research, extension,
and education programs on technology
development and technology implementation'';
(B) by striking subparagraph (C); and
(C) by redesignating subparagraph (D) as
subparagraph (C);
(4) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``in accordance
with paragraph (2)'';
(ii) by striking ``gasification''
and inserting ``bioproducts''; and
(iii) by striking ``the Department
of Energy'' and inserting ``other
appropriate Federal agencies'';
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) and (4)
as paragraphs (2) and (3), respectively; and
(5) in subsection (g), by striking ``2012'' and
inserting ``2018''.
(b) Conforming Amendment.--Section 7526(f)(1) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is
amended by striking ``subsection (c)(1)(D)(i)'' and inserting
``subsection (c)(1)(C)(i)''.
SEC. 7517. REPEAL OF STUDY AND REPORT ON FOOD DESERTS.
Section 7527 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 2039) is repealed.
SEC. 7518. REPEAL OF AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND
EDUCATION.
Section 7529 of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 5938) is repealed.
Subtitle F--Miscellaneous Provisions
SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Board of
Directors described in subsection (e).
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the
Foundation for Food and Agriculture Research
established under subsection (b).
(4) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture.
(b) Establishment.--
(1) In general.--The Secretary shall establish a
nonprofit corporation to be known as the ``Foundation
for Food and Agriculture Research''.
(2) Status.--The Foundation shall not be an agency
or instrumentality of the United States Government.
(c) Purposes.--The purposes of the Foundation shall be--
(1) to advance the research mission of the
Department by supporting agricultural research
activities focused on addressing key problems of
national and international significance including--
(A) plant health, production, and plant
products;
(B) animal health, production, and
products;
(C) food safety, nutrition, and health;
(D) renewable energy, natural resources,
and the environment;
(E) agricultural and food security;
(F) agriculture systems and technology; and
(G) agriculture economics and rural
communities; and
(2) to foster collaboration with agricultural
researchers from the Federal Government, State (as
defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)) governments, institutions of higher
education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)), industry, and
nonprofit organizations.
(d) Duties.--
(1) In general.--The Foundation shall--
(A) award grants to, or enter into
contracts, memoranda of understanding, or
cooperative agreements with, scientists and
entities, which may include agricultural
research agencies in the Department, university
consortia, public-private partnerships,
institutions of higher education, nonprofit
organizations, and industry, to efficiently and
effectively advance the goals and priorities of
the Foundation;
(B) in consultation with the Secretary--
(i) identify existing and proposed
Federal intramural and extramural
research and development programs
relating to the purposes of the
Foundation described in subsection (c);
and
(ii) coordinate Foundation
activities with those programs so as to
minimize duplication of existing
efforts and to avoid conflicts;
(C) identify unmet and emerging
agricultural research needs after reviewing the
roadmap for agricultural research, education,
and extension authorized by section 7504 of the
Food, Conservation, and Energy Act of 2008 (7
U.S.C. 7614a);
(D) facilitate technology transfer and
release of information and data gathered from
the activities of the Foundation to the
agricultural research community;
(E) promote and encourage the development
of the next generation of agricultural research
scientists; and
(F) carry out such other activities as the
Board determines to be consistent with the
purposes of the Foundation.
(2) Relationship to other activities.--The
activities described in paragraph (1) shall be
supplemental to any other activities at the Department
and shall not preempt any authority or responsibility
of the Department under another provision of law.
(e) Board of Directors.--
(1) Establishment.--The Foundation shall be
governed by a Board of Directors.
(2) Composition.--
(A) In general.--The Board shall be
composed of appointed and ex-officio, nonvoting
members.
(B) Ex-officio members.--The ex-officio
members of the Board shall be the following
individuals or designees of such individuals:
(i) The Secretary.
(ii) The Under Secretary of
Agriculture for Research, Education,
and Economics.
(iii) The Administrator of the
Agricultural Research Service.
(iv) The Director of the National
Institute of Food and Agriculture.
(v) The Director of the National
Science Foundation.
(C) Appointed members.--
(i) In general.--The ex-officio
members of the Board (as specified in
subparagraph (B)) shall, by majority
vote, appoint to the Board 15
individuals, of whom--
(I) 8 shall be selected
from a list of candidates to be
provided by the National
Academy of Sciences; and
(II) 7 shall be selected
from lists of candidates
provided by industry.
(ii) Requirements.--
(I) Expertise.--The ex-
officio members shall ensure
that a majority of the
appointed members of the Board
have actual experience in
agricultural research and, to
the extent practicable,
represent diverse sectors of
agriculture.
(II) Limitation.--No
employee of the Federal
Government may serve as an
appointed member of the Board
under this subparagraph.
(III) Not federal
employment.--Appointment to the
Board under this subparagraph
shall not constitute Federal
employment.
(iii) Authority.--All appointed
members of the Board shall be voting
members.
(D) Chair.--The Board shall, from among the
members of the Board, designate an individual
to serve as Chair of the Board.
(3) Initial meeting.--Not later than 60 days after
the date of enactment of this Act, the Secretary shall
convene a meeting of the ex-officio members of the
Board--
(A) to incorporate the Foundation; and
(B) to appoint the members of the Board in
accordance with paragraph (2)(C)(i).
(4) Duties.--
(A) In general.--The Board shall--
(i) establish bylaws for the
Foundation that, at a minimum,
include--
(I) policies for the
selection of future Board
members, officers, employees,
agents, and contractors of the
Foundation;
(II) policies, including
ethical standards, for--
(aa) the
acceptance,
solicitation, and
disposition of
donations and grants to
the Foundation; and
(bb) the
disposition of assets
of the Foundation,
including appropriate
limits on the ability
of donors to designate,
by stipulation or
restriction, the use or
recipient of donated
funds;
(III) policies that would
subject all employees, fellows,
trainees, and other agents of
the Foundation (including
members of the Board) to
conflict of interest standards
in the same manner as Federal
employees are subject to the
conflict of interest standards
under section 208 of title 18,
United States Code;
(IV) policies for writing,
editing, printing, publishing,
and vending of books and other
materials;
(V) policies for the
conduct of the general
operations of the Foundation,
including a cap on
administrative expenses for
recipients of a grant,
contract, or cooperative
agreement from the Foundation;
and
(VI) specific duties for
the Executive Director;
(ii) prioritize and provide overall
direction for the activities of the
Foundation;
(iii) evaluate the performance of
the Executive Director; and
(iv) carry out any other necessary
activities regarding the Foundation.
(B) Establishment of bylaws.--In
establishing bylaws under subparagraph (A)(i),
the Board shall ensure that the bylaws do not--
(i) reflect unfavorably on the
ability of the Foundation to carry out
the duties of the Foundation in a fair
and objective manner; or
(ii) compromise, or appear to
compromise, the integrity of any
governmental agency or program, or any
officer or employee employed by, or
involved in, a governmental agency or
program.
(5) Terms and vacancies.--
(A) Terms.--
(i) In general.--The term of each
member of the Board appointed under
paragraph (2)(C) shall be 5 years,
except that of the members initially
appointed, 8 of the members shall each
be appointed for a term of 3 years and
7 of the members shall each be
appointed for a term of 2 years.
(ii) Partial terms.--If a member of
the Board does not serve the full term
applicable under clause (i), the
individual appointed to fill the
resulting vacancy shall be appointed
for the remainder of the term of the
predecessor of the individual.
(iii) Transition.--A member of the
Board may continue to serve after the
expiration of the term of the member
until a successor is appointed.
(B) Vacancies.--After the initial
appointment of the members of the Board under
paragraph (2)(C), any vacancy in the membership
of the Board shall be filled as provided in the
bylaws established under paragraph (4)(A)(i).
(6) Compensation.--Members of the Board may not
receive compensation for service on the Board but may
be reimbursed for travel, subsistence, and other
necessary expenses incurred in carrying out the duties
of the Board.
(7) Meetings and quorum.--A majority of the members
of the Board shall constitute a quorum for purposes of
conducting the business of the Board.
(f) Administration.--
(1) Executive director.--
(A) In general.--The Board shall hire an
Executive Director who shall carry out such
duties and responsibilities as the Board may
prescribe.
(B) Service.--The Executive Director shall
serve at the pleasure of the Board.
(2) Administrative powers.--
(A) In general.--In carrying out this
section, the Board, acting through the
Executive Director, may--
(i) adopt, alter, and use a
corporate seal, which shall be
judicially noticed;
(ii) hire, promote, compensate, and
discharge 1 or more officers,
employees, and agents, as may be
necessary, and define the duties of the
officers, employees, and agents;
(iii) solicit and accept any funds,
gifts, grants, devises, or bequests of
real or personal property made to the
Foundation, including such support from
private entities;
(iv) prescribe the manner in
which--
(I) real or personal
property of the Foundation is
acquired, held, and
transferred;
(II) general operations of
the Foundation are to be
conducted; and
(III) the privileges
granted to the Board by law are
exercised and enjoyed;
(v) with the consent of the
applicable executive department or
independent agency, use the
information, services, and facilities
of the department or agency in carrying
out this section on a reimbursable
basis;
(vi) enter into contracts with
public and private organizations for
the writing, editing, printing, and
publishing of books and other material;
(vii) hold, administer, invest, and
spend any funds, gifts, grant, devise,
or bequest of real or personal property
made to the Foundation;
(viii) enter into such contracts,
leases, cooperative agreements, and
other transactions as the Board
considers appropriate to conduct the
activities of the Foundation;
(ix) modify or consent to the
modification of any contract or
agreement to which the Foundation is a
party or in which the Foundation has an
interest;
(x) take such action as may be
necessary to obtain and maintain
patents for and to license inventions
(as defined in section 201 of title 35,
United States Code) developed by the
Foundation, employees of the
Foundation, or derived from the
collaborative efforts of the
Foundation;
(xi) sue and be sued in the
corporate name of the Foundation, and
complain and defend in courts of
competent jurisdiction;
(xii) appoint other groups of
advisors as may be determined necessary
to carry out the functions of the
Foundation; and
(xiii) exercise such other
incidental powers as are necessary to
carry out the duties and functions of
the Foundation in accordance with this
section.
(B) Limitation.--No appointed member of the
Board or officer or employee of the Foundation
or of any program established by the Foundation
(other than ex-officio members of the Board)
shall exercise administrative control over any
Federal employee.
(3) Records.--
(A) Audits.--The Foundation shall--
(i) provide for annual audits of
the financial condition of the
Foundation; and
(ii) make the audits, and all other
records, documents, and other papers of
the Foundation, available to the
Secretary and the Comptroller General
of the United States for examination or
audit.
(B) Reports.--
(i) Annual report on foundation.--
(I) In general.--Not later
than 5 months following the end
of each fiscal year, the
Foundation shall publish a
report for the preceding fiscal
year that includes--
(aa) a description
of Foundation
activities, including
accomplishments; and
(bb) a
comprehensive statement
of the operations and
financial condition of
the Foundation.
(II) Financial condition.--
Each report under subclause (I)
shall include a description of
all gifts, grants, devises, or
bequests to the Foundation of
real or personal property or
money, which shall include--
(aa) the source of
the gifts, grants,
devises, or bequests;
and
(bb) any
restrictions on the
purposes for which the
gift, grant, devise, or
bequest may be used.
(III) Availability.--The
Foundation shall--
(aa) make copies of
each report submitted
under subclause (I)
available for public
inspection; and
(bb) on request,
provide a copy of the
report to any
individual.
(IV) Public meeting.--The
Board shall hold an annual
public meeting to summarize the
activities of the Foundation.
(ii) Grant reporting.--Any
recipient of a grant under subsection
(d)(1)(A) shall provide the Foundation
with a report at the conclusion of any
research or studies conducted that
describes the results of the research
or studies, including any data
generated.
(4) Integrity.--
(A) In general.--To ensure integrity in the
operations of the Foundation, the Board shall
develop and enforce procedures relating to
standards of conduct, financial disclosure
statements, conflicts of interest (including
recusal and waiver rules), audits, and any
other matters determined appropriate by the
Board.
(B) Financial conflicts of interest.--Any
individual who is an officer, employee, or
member of the Board is prohibited from any
participation in deliberations by the
Foundation of a matter that would directly or
predictably affect any financial interest of--
(i) the individual;
(ii) a relative (as defined in
section 109 of the Ethics in Government
Act of 1978 (5 U.S.C. App.)) of that
individual; or
(iii) a business organization or
other entity in which the individual
has an interest, including an
organization or other entity with which
the individual is negotiating
employment.
(5) Intellectual property.--The Board shall adopt
written standards to govern the ownership and licensing
of any intellectual property rights derived from the
collaborative efforts of the Foundation.
(6) Liability.--The United States shall not be
liable for any debts, defaults, acts, or omissions of
the Foundation nor shall the full faith and credit of
the United States extend to any obligations of the
Foundation.
(g) Funds.--
(1) Mandatory funding.--
(A) In general.--On the date of the
enactment of this Act, of the funds of the
Commodity Credit Corporation, the Secretary
shall transfer to the Foundation to carry out
this section $200,000,000, to remain available
until expended under the conditions described
in subparagraph (B).
(B) Conditions on expenditure.--The
Foundation may use the funds made available
under subparagraph (A) to carry out the
purposes of the Foundation only to the extent
that the Foundation secures an equal amount of
non-Federal matching funds for each
expenditure.
(C) Prohibition on construction.--None of
the funds made available under subparagraph (A)
may be used for construction.
(2) Separation of funds.--The Executive Director
shall ensure that any funds received under paragraph
(1) are held in separate accounts from funds received
from nongovernmental entities as described in
subsection (f)(2)(A)(iii).
SEC. 7602. CONCESSIONS AND AGREEMENTS WITH NONPROFIT ORGANIZATIONS FOR
NATIONAL ARBORETUM.
Section 6 of the Act of March 4, 1927 (20 U.S.C. 196), is
amended--
(1) in subsection (a), by striking paragraph (1)
and inserting the following new paragraph:
``(1) negotiate concessions and agreements for the
National Arboretum with nonprofit scientific or
educational organizations, the interests of which are
complementary to the mission of the National Arboretum,
or nonprofit organizations that support the purpose of
the National Arboretum, except that the net proceeds of
the organizations from the concessions or agreements,
as applicable, shall be used exclusively for--
``(A) the research and educational work for
the benefit of the National Arboretum; and
``(B) the operation and maintenance of the
facilities of the National Arboretum, including
enhancements, upgrades, restoration, and
conservation;''; and
(2) by adding at the end the following new
subsection:
``(d) Recognition of Donors.--A nonprofit organization that
entered into a concession or agreement under subsection (a)(1)
may recognize donors if that recognition is approved in advance
by the Secretary of Agriculture. In considering whether to
approve such recognition, the Secretary shall broadly exercise
the discretion of the Secretary to the fullest extent allowed
under Federal law.''.
SEC. 7603. AGRICULTURAL AND FOOD LAW RESEARCH, LEGAL TOOLS, AND
INFORMATION.
(a) Partnerships.--The Secretary of Agriculture, acting
through the National Agricultural Library, shall support the
dissemination of objective, scholarly, and authoritative
agricultural and food law research, legal tools, and
information by entering into cooperative agreements with
institutions of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)) that on the
date of enactment of this Act are carrying out objective
programs for research, legal tools, and information in
agricultural and food law.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $5,000,000 for
fiscal year 2014 and each fiscal year thereafter.
SEC. 7604. COTTON DISEASE RESEARCH REPORT.
Not later than 180 days after the date of the enactment of
this Act, the Secretary shall submit to Congress a report on
the fungus Fusarium oxysporum f. sp. vasinfectum race 4
(referred to in this section as ``FOV Race 4'') and the impact
of such fungus on cotton, including--
(1) an overview of the threat FOV Race 4 poses to
the cotton industry in the United States;
(2) the status and progress of Federal research
initiatives to detect, contain, or eradicate FOV Race
4, including current FOV Race 4-specific research
projects; and
(3) a comprehensive strategy to combat FOV Race 4
that establishes--
(A) detection and identification goals;
(B) containment goals;
(C) eradication goals; and
(D) a plan to partner with the cotton
industry in the United States to maximize
resources, information sharing, and research
responsiveness and effectiveness.
SEC. 7605. MISCELLANEOUS TECHNICAL CORRECTIONS.
Sections 7408 and 7409 of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246; 122 Stat. 2013) are
both amended by striking ``Title III of the Department of
Agriculture Reorganization Act of 1994'' and inserting ``Title
III of the Federal Crop Insurance Reform and Department of
Agriculture Reorganization Act of 1994''.
SEC. 7606. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH.
(a) In General.--Notwithstanding the Controlled Substances
Act (21 U.S.C. 801 et seq.), the Safe and Drug-Free Schools and
Communities Act (20 U.S.C. 7101 et seq.), chapter 81 of title
41, United States Code, or any other Federal law, an
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001)) or a State
department of agriculture may grow or cultivate industrial hemp
if--
(1) the industrial hemp is grown or cultivated for
purposes of research conducted under an agricultural
pilot program or other agricultural or academic
research; and
(2) the growing or cultivating of industrial hemp
is allowed under the laws of the State in which such
institution of higher education or State department of
agriculture is located and such research occurs.
(b) Definitions.--In this section:
(1) Agricultural pilot program.--The term
``agricultural pilot program'' means a pilot program to
study the growth, cultivation, or marketing of
industrial hemp--
(A) in States that permit the growth or
cultivation of industrial hemp under the laws
of the State; and
(B) in a manner that--
(i) ensures that only institutions
of higher education and State
departments of agriculture are used to
grow or cultivate industrial hemp;
(ii) requires that sites used for
growing or cultivating industrial hemp
in a State be certified by, and
registered with, the State department
of agriculture; and
(iii) authorizes State departments
of agriculture to promulgate
regulations to carry out the pilot
program in the States in accordance
with the purposes of this section.
(2) Industrial hemp.--The term ``industrial hemp''
means the plant Cannabis sativa L. and any part of such
plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration of not more than 0.3
percent on a dry weight basis.
(3) State department of agriculture.--The term
``State department of agriculture'' means the agency,
commission, or department of a State government
responsible for agriculture within the State.
TITLE VIII--FORESTRY
Subtitle A--Repeal of Certain Forestry Programs
SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM.
(a) Repeal.--Section 4 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103) is repealed.
(b) Conforming Amendment.--Section 8002 of the Farm
Security and Rural Investment Act of 2002 (Public Law 107-171;
16 U.S.C. 2103 note) is amended by striking subsection (a).
SEC. 8002. WATERSHED FORESTRY ASSISTANCE PROGRAM.
Section 6 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103b) is repealed.
SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING
PROGRAM.
Section 18 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2112) is repealed.
SEC. 8004. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
RESOURCES LEADERSHIP PROGRAM.
Section 8402 of the Food, Conservation, and Energy Act of
2008 (16 U.S.C. 1649a) is repealed.
SEC. 8005. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM.
Section 303 of the Healthy Forests Restoration Act of 2003
(16 U.S.C. 6542) is repealed.
SEC. 8006. SEPARATE FOREST SERVICE DECISIONMAKING AND APPEALS PROCESS.
(a) Repeal.--Section 322 of the Department of the Interior
and Related Agencies Appropriations Act, 1993 (16 U.S.C. 1612
note; Public Law 102-381) is repealed.
(b) Forest Service Pre-decisional Objection Process.--
Section 428 of division E of the Consolidated Appropriations
Act, 2012 (16 U.S.C. 6515 note; Public Law 112-74) shall not
apply to any project or activity implementing a land and
resource management plan developed under section 6 of the
Forest and Rangeland Renewable Resources Planning Act of 1974
(16 U.S.C. 1604) that is categorically excluded from
documentation in an environmental assessment or an
environmental impact statement under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.
Section 2A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2101a) is amended--
(1) in subsection (c)--
(A) in paragraph (4), by striking ``and'';
(B) by redesignating paragraph (5) as
paragraph (6); and
(C) by inserting after paragraph (4) the
following new paragraph:
``(5) as feasible, appropriate military
installations where the voluntary participation and
management of private or State-owned or other public
forestland is able to support, promote, and contribute
to the missions of such installations; and''; and
(2) in subsection (f)(1), by striking ``2012'' and
inserting ``2018''.
Subtitle C--Reauthorization of Other Forestry-related Laws
SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.
Section 2371(d)(2) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by
striking ``2012'' and inserting ``2018''.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Global Climate Change Prevention Act
of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 8203. HEALTHY FORESTS RESERVE PROGRAM.
(a) Definition of Acreage Owned by Indian Tribes.--Section
502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C.
6572(e)(3)) is amended--
(1) in subparagraph (C), by striking
``subparagraphs (A) and (B)'' and inserting ``clauses
(i) and (ii)'';
(2) by redesignating subparagraphs (A) through (C)
as clauses (i) through (iii), respectively, and
indenting appropriately; and
(3) by striking ``In the case of'' and inserting
the following:
``(A) Definition of acreage owned by indian
tribes.--In this paragraph, the term `acreage
owned by Indian tribes' includes--
``(i) land that is held in trust by
the United States for Indian tribes or
individual Indians;
``(ii) land, the title to which is
held by Indian tribes or individual
Indians subject to Federal restrictions
against alienation or encumbrance;
``(iii) land that is subject to
rights of use, occupancy, and benefit
of certain Indian tribes;
``(iv) land that is held in fee
title by an Indian tribe; or
``(v) land that is owned by a
native corporation formed under section
17 of the Act of June 18, 1934
(commonly known as the `Indian
Reorganization Act') (25 U.S.C. 477) or
section 8 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1607); or
``(vi) a combination of 1 or more
types of land described in clauses (i)
through (v).
``(B) Enrollment of acreage.--In the case
of''.
(b) Change in Funding Source for Healthy Forests Reserve
Program.--Section 508 of the Healthy Forests Restoration Act of
2003 (16 U.S.C. 6578) is amended--
(1) in subsection (a), by striking ``In General''
and inserting ``Fiscal Years 2009 Through 2013'';
(2) by redesignating subsection (b) as subsection
(d); and
(3) by inserting after subsection (a) the
following:
``(b) Fiscal Years 2014 Through 2018.--There is authorized
to be appropriated to the Secretary of Agriculture to carry out
this section $12,000,000 for each of fiscal years 2014 through
2018.
``(c) Additional Source of Funds.--In addition to funds
appropriated pursuant to the authorization of appropriations in
subsection (b) for a fiscal year, the Secretary may use such
amount of the funds appropriated for that fiscal year to carry
out the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590a et seq.) as the Secretary determines necessary to cover
the cost of technical assistance, management, and enforcement
responsibilities for land enrolled in the healthy forests
reserve program pursuant to subsections (a) and (b) of section
504.''.
SEC. 8204. INSECT AND DISEASE INFESTATION.
Title VI of the Healthy Forests Restoration Act of 2003 (16
U.S.C. 6591 et seq.) is amended by adding at the end the
following:
``SEC. 602. DESIGNATION OF TREATMENT AREAS.
``(a) Definition of Declining Forest Health.--In this
section, the term `declining forest health' means a forest that
is experiencing--
``(1) substantially increased tree mortality due to
insect or disease infestation; or
``(2) dieback due to infestation or defoliation by
insects or disease.
``(b) Designation of Treatment Areas.--
``(1) Initial areas.--Not later than 60 days after
the date of enactment of the Agricultural Act of 2014,
the Secretary shall, if requested by the Governor of
the State, designate as part of an insect and disease
treatment program 1 or more landscape-scale areas, such
as subwatersheds (sixth-level hydrologic units,
according to the System of Hydrologic Unit Codes of the
United States Geological Survey), in at least 1
national forest in each State that is experiencing an
insect or disease epidemic.
``(2) Additional areas.--After the end of the 60-
day period described in paragraph (1), the Secretary
may designate additional landscape-scale areas under
this section as needed to address insect or disease
threats.
``(c) Requirements.--To be designated a landscape-scale
area under subsection (b), the area shall be--
``(1) experiencing declining forest health, based
on annual forest health surveys conducted by the
Secretary;
``(2) at risk of experiencing substantially
increased tree mortality over the next 15 years due to
insect or disease infestation, based on the most recent
National Insect and Disease Risk Map published by the
Forest Service; or
``(3) in an area in which the risk of hazard trees
poses an imminent risk to public infrastructure,
health, or safety.
``(d) Treatment of Areas.--
``(1) In general.--The Secretary may carry out
priority projects on Federal land in the areas
designated under subsection (b) to reduce the risk or
extent of, or increase the resilience to, insect or
disease infestation in the areas.
``(2) Authority.--Any project under paragraph (1)
for which a public notice to initiate scoping is issued
on or before September 30, 2018, may be carried out in
accordance with subsections (b), (c), and (d) of
section 102, and sections 104, 105, and 106.
``(3) Effect.--Projects carried out under this
subsection shall be considered authorized hazardous
fuel reduction projects for purposes of the authorities
described in paragraph (2).
``(4) Report.--
``(A) In general.--In accordance with the
schedule described in subparagraph (B), the
Secretary shall issue 2 reports on actions
taken to carry out this subsection, including--
``(i) an evaluation of the progress
towards project goals; and
``(ii) recommendations for
modifications to the projects and
management treatments.
``(B) Schedule.--The Secretary shall--
``(i) not earlier than September
30, 2018, issue the initial report
under subparagraph (A); and
``(ii) not earlier than September
30, 2024, issue the second report under
that subparagraph.
``(e) Tree Retention.--The Secretary shall carry out
projects under subsection (d) in a manner that maximizes the
retention of old-growth and large trees, as appropriate for the
forest type, to the extent that the trees promote stands that
are resilient to insects and disease.
``(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $200,000,000 for
each of fiscal years 2014 through 2024.
``SEC. 603. ADMINISTRATIVE REVIEW.
``(a) In General.--Except as provided in subsection (d), a
project described in subsection (b) that is conducted in
accordance with section 602(d) may be--
``(1) considered an action categorically excluded
from the requirements of Public Law 91-190 (42 U.S.C.
4321 et seq.); and
``(2) exempt from the special administrative review
process under section 105.
``(b) Collaborative Restoration Project.--
``(1) In general.--A project referred to in
subsection (a) is a project to carry out forest
restoration treatments that--
``(A) maximizes the retention of old-growth
and large trees, as appropriate for the forest
type, to the extent that the trees promote
stands that are resilient to insects and
disease;
``(B) considers the best available
scientific information to maintain or restore
the ecological integrity, including maintaining
or restoring structure, function, composition,
and connectivity; and
``(C) is developed and implemented through
a collaborative process that--
``(i) includes multiple interested
persons representing diverse interests;
and
``(ii)(I) is transparent and
nonexclusive; or
``(II) meets the requirements for a
resource advisory committee under
subsections (c) through (f) of section
205 of the Secure Rural Schools and
Community Self-Determination Act of
2000 (16 U.S.C. 7125).
``(2) Inclusion.--A project under this subsection
may carry out part of a proposal that complies with the
eligibility requirements of the Collaborative Forest
Landscape Restoration Program under section 4003(b) of
the Omnibus Public Land Management Act of 2009 (16
U.S.C. 7303(b)).
``(c) Limitations.--
``(1) Project size.--A project under this section
may not exceed 3000 acres.
``(2) Location.--A project under this section shall
be limited to areas--
``(A) in the wildland-urban interface; or
``(B) Condition Classes 2 or 3 in Fire
Regime Groups I, II, or III, outside the
wildland-urban interface.
``(3) Roads.--
``(A) Permanent roads.--
``(i) Prohibition on
establishment.--A project under this
section shall not include the
establishment of permanent roads.
``(ii) Existing roads.--The
Secretary may carry out necessary
maintenance and repairs on existing
permanent roads for the purposes of
this section.
``(B) Temporary roads.--The Secretary shall
decommission any temporary road constructed
under a project under this section not later
than 3 years after the date on which the
project is completed.
``(d) Exclusions.--This section does not apply to--
``(1) a component of the National Wilderness
Preservation System;
``(2) any Federal land on which, by Act of Congress
or Presidential proclamation, the removal of vegetation
is restricted or prohibited;
``(3) a congressionally designated wilderness study
area; or
``(4) an area in which activities under subsection
(a) would be inconsistent with the applicable land and
resource management plan.
``(e) Forest Management Plans.--All projects and activities
carried out under this section shall be consistent with the
land and resource management plan established under section 6
of the Forest and Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1604) for the unit of the National Forest
System containing the projects and activities.
``(f) Public Notice and Scoping.--The Secretary shall
conduct public notice and scoping for any project or action
proposed in accordance with this section.
``(g) Accountability.--
``(1) In general.--The Secretary shall prepare an
annual report on the use of categorical exclusions
under this section that includes a description of all
acres (or other appropriate unit) treated through
projects carried out under this section.
``(2) Submission.--Not later than 1 year after the
date of enactment of this section, and each year
thereafter, the Secretary shall submit the reports
required under paragraph (1) to--
``(A) the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
``(B) the Committee on Environment and
Public Works of the Senate;
``(C) the Committee on Agriculture of the
House of Representatives;
``(D) the Committee on Natural Resources of
the House of Representatives; and
``(E) the Government Accountability
Office.''.
SEC. 8205. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
(a) In General.--Title VI of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6591) (as amended by section
8204) is amended by adding at the end the following:
``SEC. 604. STEWARDSHIP END RESULT CONTRACTING PROJECTS.
``(a) Definitions.--In this section:
``(1) Chief.--The term `Chief' means the Chief of
the Forest Service.
``(2) Director.--The term `Director' means the
Director of the Bureau of Land Management.
``(b) Projects.--The Chief and the Director, via agreement
or contract as appropriate, may enter into stewardship
contracting projects with private persons or other public or
private entities to perform services to achieve land management
goals for the national forests and the public lands that meet
local and rural community needs.
``(c) Land Management Goals.--The land management goals of
a project under subsection (b) may include any of the
following:
``(1) Road and trail maintenance or obliteration to
restore or maintain water quality.
``(2) Soil productivity, habitat for wildlife and
fisheries, or other resource values.
``(3) Setting of prescribed fires to improve the
composition, structure, condition, and health of stands
or to improve wildlife habitat.
``(4) Removing vegetation or other activities to
promote healthy forest stands, reduce fire hazards, or
achieve other land management objectives.
``(5) Watershed restoration and maintenance.
``(6) Restoration and maintenance of wildlife and
fish.
``(7) Control of noxious and exotic weeds and
reestablishing native plant species.
``(d) Agreements or Contracts.--
``(1) Procurement procedure.--A source for
performance of an agreement or contract under
subsection (b) shall be selected on a best-value basis,
including consideration of source under other public
and private agreements or contracts.
``(2) Contract for sale of property.--A contract
entered into under this section may, at the discretion
of the Secretary of Agriculture, be considered a
contract for the sale of property under such terms as
the Secretary may prescribe without regard to any other
provision of law.
``(3) Term.--
``(A) In general.--Except as provided in
subparagraph (B), the Chief and the Director
may enter into a contract under subsection (b)
in accordance with section 3903 of title 41,
United States Code.
``(B) Maximum.--The period of the contract
under subsection (b) may exceed 5 years but may
not exceed 10 years.
``(4) Offsets.--
``(A) In general.--The Chief and the
Director may apply the value of timber or other
forest products removed as an offset against
the cost of services received under the
agreement or contract described in subsection
(b).
``(B) Methods of appraisal.--The value of
timber or other forest products used as an
offset under subparagraph (A)--
``(i) shall be determined using
appropriate methods of appraisal
commensurate with the quantity of
products to be removed; and
``(ii) may--
``(I) be determined using a
unit of measure appropriate to
the contracts; and
``(II) may include valuing
products on a per-acre basis.
``(5) Relation to other laws.--Notwithstanding
subsections (d) and (g) of section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a), the
Chief may enter into an agreement or contract under
subsection (b).
``(6) Contracting officer.--Notwithstanding any
other provision of law, the Secretary or the Secretary
of the Interior may determine the appropriate
contracting officer to enter into and administer an
agreement or contract under subsection (b).
``(7) Fire liability provisions.--Not later than 90
days after the date of enactment of this section, the
Chief and the Director shall issue for use in all
contracts and agreements under this section fire
liability provisions that are in substantially the same
form as the fire liability provisions contained in--
``(A) integrated resource timber contracts,
as described in the Forest Service contract
numbered 2400-13, part H, section H.4; and
``(B) timber sale contracts conducted
pursuant to section 14 of the National Forest
Management Act of 1976 (16 U.S.C. 472a).
``(e) Receipts.--
``(1) In general.--The Chief and the Director may
collect monies from an agreement or contract under
subsection (b) if the collection is a secondary
objective of negotiating the contract that will best
achieve the purposes of this section.
``(2) Use.--Monies from an agreement or contract
under subsection (b)--
``(A) may be retained by the Chief and the
Director; and
``(B) shall be available for expenditure
without further appropriation at the project
site from which the monies are collected or at
another project site.
``(3) Relation to other laws.--
``(A) In general.--Notwithstanding any
other provision of law, the value of services
received by the Chief or the Director under a
stewardship contract project conducted under
this section, and any payments made or
resources provided by the contractor, Chief, or
Director shall not be considered monies
received from the National Forest System or the
public lands.
``(B) Knutson-vanderberg act.--The Act of
June 9, 1930 (commonly known as the `Knutson-
Vanderberg Act') (16 U.S.C. 576 et seq.) shall
not apply to any agreement or contract under
subsection (b).
``(f) Costs of Removal.--Notwithstanding the fact that a
contractor did not harvest the timber, the Chief may collect
deposits from a contractor covering the costs of removal of
timber or other forest products under--
``(1) the Act of August 11, 1916 (16 U.S.C. 490);
and
``(2) the Act of June 30, 1914 (16 U.S.C. 498).
``(g) Performance and Payment Guarantees.--
``(1) In general.--The Chief and the Director may
require performance and payment bonds under sections
28.103-2 and 28.103-3 of the Federal Acquisition
Regulation, in an amount that the contracting officer
considers sufficient to protect the investment in
receipts by the Federal Government generated by the
contractor from the estimated value of the forest
products to be removed under a contract under
subsection (b).
``(2) Excess offset value.--If the offset value of
the forest products exceeds the value of the resource
improvement treatments, the Chief and the Director
may--
``(A) collect any residual receipts under
the Act of June 9, 1930 (commonly known as the
`Knutson-Vanderberg Act') (16 U.S.C. 576 et
seq.); and
``(B) apply the excess to other authorized
stewardship projects.
``(h) Monitoring and Evaluation.--
``(1) In general.--The Chief and the Director shall
establish a multiparty monitoring and evaluation
process that accesses the stewardship contracting
projects conducted under this section.
``(2) Participants.--Other than the Chief and
Director, participants in the process described in
paragraph (1) may include--
``(A) any cooperating governmental
agencies, including tribal governments; and
``(B) any other interested groups or
individuals.
``(i) Reporting.--Not later than 1 year after the date of
enactment of this section, and annually thereafter, the Chief
and the Director shall report to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives on--
``(1) the status of development, execution, and
administration of agreements or contracts under
subsection (b);
``(2) the specific accomplishments that have
resulted; and
``(3) the role of local communities in the
development of agreements or contract plans.''.
(b) Conforming Amendment.--Section 347 of the Department of
the Interior and Related Agencies Appropriations Act, 1999 (16
U.S.C. 2104 note; Public Law 105-277) is repealed.
SEC. 8206. GOOD NEIGHBOR AUTHORITY.
(a) Definitions.--In this section:
(1) Authorized restoration services.--The term
``authorized restoration services'' means similar and
complementary forest, rangeland, and watershed
restoration services carried out--
(A) on Federal land and non-Federal land;
and
(B) by either the Secretary or a Governor
pursuant to a good neighbor agreement.
(2) Federal land.--
(A) In general.--The term ``Federal land''
means land that is--
(i) National Forest System land; or
(ii) public land (as defined in
section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C.
1702)).
(B) Exclusions.--The term ``Federal land''
does not include--
(i) a component of the National
Wilderness Preservation System;
(ii) Federal land on which the
removal of vegetation is prohibited or
restricted by Act of Congress or
Presidential proclamation (including
the applicable implementation plan); or
(iii) a wilderness study area.
(3) Forest, rangeland, and watershed restoration
services.--
(A) In general.--The term ``forest,
rangeland, and watershed restoration services''
means--
(i) activities to treat insect- and
disease-infected trees;
(ii) activities to reduce hazardous
fuels; and
(iii) any other activities to
restore or improve forest, rangeland,
and watershed health, including fish
and wildlife habitat.
(B) Exclusions.--The term ``forest,
rangeland, and watershed restoration services''
does not include--
(i) construction, reconstruction,
repair, or restoration of paved or
permanent roads or parking areas; or
(ii) construction, alteration,
repair or replacement of public
buildings or works.
(4) Good neighbor agreement.--The term ``good
neighbor agreement'' means a cooperative agreement or
contract (including a sole source contract) entered
into between the Secretary and a Governor to carry out
authorized restoration services under this section.
(5) Governor.--The term ``Governor'' means the
Governor or any other appropriate executive official of
an affected State or the Commonwealth of Puerto Rico.
(6) Road.--The term ``road'' has the meaning given
the term in section 212.1 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of
this Act).
(7) Secretary.--The term ``Secretary means--
(A) the Secretary of Agriculture, with
respect to National Forest System land; and
(B) the Secretary of the Interior, with
respect to Bureau of Land Management land.
(b) Good Neighbor Agreements.--
(1) Good neighbor agreements.--
(A) In general.--The Secretary may enter
into a good neighbor agreement with a Governor
to carry out authorized restoration services in
accordance with this section.
(B) Public availability.--The Secretary
shall make each good neighbor agreement
available to the public.
(2) Timber sales.--
(A) In general.--Subsections (d) and (g) of
section 14 of the National Forest Management
Act of 1976 (16 U.S.C. 472a(d) and (g)) shall
not apply to services performed under a
cooperative agreement or contract entered into
under subsection (a).
(B) Approval of silviculture prescriptions
and marking guides.--The Secretary shall
provide or approve all silviculture
prescriptions and marking guides to be applied
on Federal land in all timber sale projects
conducted under this section.
(3) Retention of nepa responsibilities.--Any
decision required to be made under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) with respect to any authorized restoration
services to be provided under this section on Federal
land shall not be delegated to a Governor.
Subtitle D--Miscellaneous Provisions
SEC. 8301. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY AND
ANALYSIS.
(a) Revision Required.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall revise the
strategic plan for forest inventory and analysis initially
prepared pursuant to section 3(e) of the Forest and Rangeland
Renewable Resources Research Act of 1978 (16 U.S.C. 1642(e)) to
address the requirements imposed by subsection (b).
(b) Elements of Revised Strategic Plan.--In revising the
strategic plan, the Secretary shall describe in detail the
organization, procedures, and funding needed to achieve each of
the following:
(1) Complete the transition to a fully annualized
forest inventory program and include inventory and
analysis of interior Alaska.
(2) Implement an annualized inventory of trees in
urban settings, including the status and trends of
trees and forests, and assessments of their ecosystem
services, values, health, and risk to pests and
diseases.
(3) Report information on renewable biomass
supplies and carbon stocks at the local, State,
regional, and national level, including by ownership
type.
(4) Engage State foresters and other users of
information from the forest inventory and analysis in
reevaluating the list of core data variables collected
on forest inventory and analysis plots with an emphasis
on demonstrated need.
(5) Improve the timeliness of the timber product
output program and accessibility of the annualized
information on that database.
(6) Foster greater cooperation among the forest
inventory and analysis program, research station
leaders, and State foresters and other users of
information from the forest inventory and analysis.
(7) Promote availability of and access to non-
Federal resources to improve information analysis and
information management.
(8) Collaborate with the Natural Resources
Conservation Service, National Aeronautics and Space
Administration, National Oceanic and Atmospheric
Administration, and United States Geological Survey to
integrate remote sensing, spatial analysis techniques,
and other new technologies in the forest inventory and
analysis program.
(9) Understand and report on changes in land cover
and use.
(10) Expand existing programs to promote
sustainable forest stewardship through increased
understanding, in partnership with other Federal
agencies, of the over 10,000,000 family forest owners,
their demographics, and the barriers to forest
stewardship.
(11) Implement procedures to improve the
statistical precision of estimates at the sub-State
level.
(c) Submission of Revised Strategic Plan.--The Secretary
shall submit the revised strategic plan to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate.
SEC. 8302. FOREST SERVICE PARTICIPATION IN ACES PROGRAM.
The Secretary, acting through the Chief of the Forest
Service, may use funds derived from conservation-related
programs executed on National Forest System land to utilize the
Agriculture Conservation Experienced Services Program
established pursuant to section 1252 of the Food Security Act
of 1985 (16 U.S.C. 3851) to provide technical services for
conservation-related programs and authorities carried out by
the Secretary on National Forest System land.
SEC. 8303. EXTENSION OF STEWARDSHIP CONTRACTS AUTHORITY REGARDING USE
OF DESIGNATION BY PRESCRIPTION TO ALL THINNING
SALES UNDER NATIONAL FOREST MANAGEMENT ACT OF 1976.
Section 14 of the National Forest Management Act of 1976
(16 U.S.C. 472a) is amended by striking subsection (g) and
inserting the following:
``(g) Designation and Supervision of Harvesting.--
``(1) In general.--Designation, including marking
when necessary, designation by description, or
designation by prescription, and supervision of
harvesting of trees, portions of trees, or forest
products shall be conducted by persons employed by the
Secretary of Agriculture.
``(2) Requirement.--Persons employed by the
Secretary of Agriculture under paragraph (1)--
``(A) shall have no personal interest in
the purchase or harvest of the products; and
``(B) shall not be directly or indirectly
in the employment of the purchaser of the
products.
``(3) Methods for designation.--Designation by
prescription and designation by description shall be
considered valid methods for designation, and may be
supervised by use of post-harvest cruise, sample weight
scaling, or other methods determined by the Secretary
of Agriculture to be appropriate.''.
SEC. 8304. REIMBURSEMENT OF FIRE FUNDS.
(a) Definition of State.--In this section, the term
``State'' means--
(1) a State; and
(2) the Commonwealth of Puerto Rico.
(b) In General.--If a State seeks reimbursement for amounts
expended for resources and services provided to another State
for the management and suppression of a wildfire, the
Secretary, subject to subsections (c) and (d)--
(1) may accept the reimbursement amounts from the
other State; and
(2) shall pay those amounts to the State seeking
reimbursement.
(c) Mutual Assistance Agreement.--As a condition of seeking
and providing reimbursement under subsection (b), the State
seeking reimbursement and the State providing reimbursement
must each have a mutual assistance agreement with the Forest
Service or another Federal agency for providing and receiving
wildfire management and suppression resources and services.
(d) Terms and Conditions.--The Secretary may prescribe the
terms and conditions determined to be necessary to carry out
subsection (b).
(e) Effect on Prior Reimbursements.--Any acceptance of
funds or reimbursements made by the Secretary before the date
of enactment of this Act that otherwise would have been
authorized under this section shall be considered to have been
made in accordance with this section.
(f) Amendment.--Section 5(b) of the Act of May 27, 1955 (42
U.S.C. 1856d(b)) is amended in the first sentence by inserting
``or Department of Agriculture'' after ``Department of
Defense''.
SEC. 8305. FOREST SERVICE LARGE AIRTANKER AND AERIAL ASSET FIREFIGHTING
RECAPITALIZATION PILOT PROGRAM.
(a) In General.--Subject to the availability of
appropriations, the Secretary, acting through the Chief of the
Forest Service, may establish a large airtanker and aerial
asset lease program in accordance with this section.
(b) Aircraft Requirements.--In carrying out the program
described in subsection (a), the Secretary may enter into a
multiyear lease contract for up to 5 aircraft that meet the
criteria--
(1) described in the Forest Service document
entitled ``Large Airtanker Modernization Strategy'' and
dated February 10, 2012, for large airtankers; and
(2) determined by the Secretary, for other aerial
assets.
(c) Lease Terms.--The term of any individual lease
agreement into which the Secretary enters under this section
shall be--
(1) up to 5 years, inclusive of any options to
renew or extend the initial lease term; and
(2) in accordance with section 3903 of title 41,
United States Code.
(d) Prohibition.--No lease entered into under this section
shall provide for the purchase of the aircraft by, or the
transfer of ownership to, the Forest Service.
SEC. 8306. LAND CONVEYANCE, JEFFERSON NATIONAL FOREST IN WISE COUNTY,
VIRGINIA.
(a) Definitions.--In this section:
(1) Association.--The term ``Association'' means
the Mullins and Sturgill Cemetery Association of Pound,
Virginia.
(2) Map.--The term ``map'' means the map titled
``Mullins and Sturgill Cemetery'' dated March 1, 2013.
(b) Conveyance Required.--Upon payment by the Association
of the consideration under subsection (c) and the costs under
subsection (e), the Secretary shall, subject to valid existing
rights, convey to the Association all right, title, and
interest of the United States in and to a parcel of National
Forest System land in the Jefferson National Forest in Wise
County, Virginia, consisting of approximately 0.70 acres and
containing the Mullins and Sturgill Cemetery and an easement to
provide access to the parcel, as generally depicted on the map.
(c) Consideration.--
(1) Fair market value.--As consideration for the
land conveyed under subsection (b), the Association
shall pay to the Secretary cash in an amount equal to
the market value of the land, as determined by an
appraisal approved by the Secretary and conducted in
conformity with the Uniform Appraisal Standards for
Federal Land Acquisitions and section 206 of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1716).
(2) Deposit.--The consideration received by the
Secretary under paragraph (1) shall be deposited into
the general fund of the Treasury of the United States
for the purposes of deficit reduction.
(d) Description of Property.--The exact acreage and legal
description of the land to be conveyed under subsection (b)
shall be determined by a survey satisfactory to the Secretary.
(e) Costs.--The Association shall pay to the Secretary at
closing the reasonable costs of the survey, the appraisal, and
any administrative and environmental analyses required by law.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (b) as the Secretary considers
appropriate to protect the interests of the United States.
TITLE IX--ENERGY
SEC. 9001. DEFINITIONS.
Section 9001 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8101) is amended by--
(1) redesignating paragraphs (9), (10), (11), (12),
(13), and (14) as paragraphs (10), (11), (12), (13),
(15), and (17);
(2) inserting after paragraph (8), the following
new paragraph:
``(9) Forest product.--
``(A) In general.--The term `forest
product' means a product made from materials
derived from the practice of forestry or the
management of growing timber.
``(B) Inclusions.--The term `forest
product' includes--
``(i) pulp, paper, paperboard,
pellets, lumber, and other wood
products; and
``(ii) any recycled products
derived from forest materials.'';
(3) by inserting after paragraph (13) (as
redesignated by paragraph (1) of this section) the
following:
``(14) Renewable chemical.--The term `renewable
chemical' means a monomer, polymer, plastic, formulated
product, or chemical substance produced from renewable
biomass.''; and
(4) inserting after paragraph (15) (as so
redesignated), the following new paragraph:
``(16) Renewable energy system.--
``(A) In general.--Subject to subparagraph
(B), the term `renewable energy system' means a
system that--
``(i) produces usable energy from a
renewable energy source; and
``(ii) may include distribution
components necessary to move energy
produced by such system to the initial
point of sale.
``(B) Limitation.--A system described in
subparagraph (A) may not include a mechanism
for dispensing energy at retail.''.
SEC. 9002. BIOBASED MARKETS PROGRAM.
(a) In General.--Section 9002 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A)(i)--
(i) in subclause (I), by striking
``and'' at the end;
(ii) in subclause (II)(bb), by
striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the
following:
``(III) establish a
targeted biobased-only
procurement requirement under
which the procuring agency
shall issue a certain number of
biobased-only contracts when
the procuring agency is
purchasing products, or
purchasing services that
include the use of products,
that are included in a biobased
product category designated by
the Secretary.''; and
(B) in paragraph (3)--
(i) in subparagraph (B)--
(I) in clause (v), by
inserting ``as determined to be
necessary by the Secretary
based on the availability of
data,'' before ``provide
information'';
(II) by redesignating
clauses (v) and (vi) as clauses
(vii) and (viii), respectively;
and
(III) by inserting after
clause (iv) the following:
``(v) require reporting of
quantities and types of biobased
products purchased by procuring
agencies;
``(vi) promote biobased products,
including forest products, that apply
an innovative approach to growing,
harvesting, sourcing, procuring,
processing, manufacturing, or
application of biobased products
regardless of the date of entry into
the marketplace;''; and
(ii) by adding at the end the
following:
``(F) Required designations.--Not later
than 1 year after the date of enactment of this
subparagraph, the Secretary shall begin to
designate intermediate ingredients or
feedstocks and assembled and finished biobased
products in the guidelines issued under this
paragraph.'';
(2) in subsection (b)--
(A) in paragraph (3)--
(i) by striking ``The Secretary''
and inserting the following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the
following:
``(B) Auditing and compliance.--The
Secretary may carry out such auditing and
compliance activities as the Secretary
determines to be necessary to ensure compliance
with subparagraph (A).''; and
(B) by adding at the end the following:
``(4) Assembled and finished products.--Not later
than 1 year after the date of enactment of this
paragraph, the Secretary shall begin issuing criteria
for determining which assembled and finished products
may qualify to receive the label under paragraph
(1).'';
(3) in subsection (g)--
(A) in paragraph (2)--
(i) in the matter preceding
subparagraph (A) by striking ``The
report'' and inserting ``Each report
under paragraph (1)'';
(ii) in subparagraph (A), by
striking ``and'' at the end;
(iii) in subparagraph (B)(ii), by
striking the period at the end and
inserting ``; and''; and
(iv) by adding at the end the
following new subparagraph:
``(C) the progress made by other Federal
agencies in compliance with the biobased
procurement requirements, including the
quantity of purchases made.''; and
(B) by adding at the end the following:
``(3) Economic impact study and report.--
``(A) In general.--The Secretary shall
conduct a study to assess the economic impact
of the biobased products industry, including--
``(i) the quantity of biobased
products sold;
``(ii) the value of the biobased
products;
``(iii) the quantity of jobs
created;
``(iv) the quantity of petroleum
displaced;
``(v) other environmental benefits;
and
``(vi) areas in which the use or
manufacturing of biobased products
could be more effectively used,
including identifying any technical and
economic obstacles and recommending how
those obstacles can be overcome.
``(B) Report.--Not later than 1 year after
the date of enactment of this subparagraph, the
Secretary shall submit to Congress a report
describing the results of the study conducted
under subparagraph (A).'';
(4) by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively;
(5) by inserting after subsection (f) the following
new subsection:
``(g) Forest Products Laboratory Coordination.--In
determining whether products are eligible for the `USDA
Certified Biobased Product' label, the Secretary (acting
through the Forest Products Laboratory) shall provide
appropriate technical and other assistance to the program and
applicants for forest products.''; and
(6) in subsection (i) (as redesignated by paragraph
(4)), by striking paragraphs (1) and (2) and inserting
the following new paragraphs:
``(1) Mandatory funding.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out this section $3,000,000 for each of fiscal
years 2014 through 2018.
``(2) Discretionary funding.--There is authorized
to be appropriated to carry out this section $2,000,000
for each of fiscal years 2014 through 2018.''; and
(7) by adding at the end the following new
subsection:
``(j) Biobased Product Inclusion.--In this section, the
term `biobased product' (as defined in section 9001) includes,
with respect to forestry materials, forest products that meet
biobased content requirements, notwithstanding the market share
the product holds, the age of the product, or whether the
market for the product is new or emerging.''.
(b) Conforming Amendment.--Section 944(c)(2)(A) of the
Energy Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is amended
by striking ``section 9002(h)(1)'' and inserting ``section
9002(b)''.
SEC. 9003. BIOREFINERY ASSISTANCE.
(a) Program Adjustments.--Section 9003 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended--
(1) in the section heading, by inserting ``,
renewable chemical, and biobased product
manufacturing'' after ``biorefinery'';
(2) in subsection (a), in the matter preceding
paragraph (1), by inserting ``renewable chemicals, and
biobased product manufacturing'' after ``advanced
biofuels,'';
(3) in subsection (b)--
(A) by redesignating paragraphs (1) and (2)
as paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2) (as
so redesignated) the following:
``(1) Biobased product manufacturing.--The term
`biobased product manufacturing' means development,
construction, and retrofitting of technologically new
commercial-scale processing and manufacturing equipment
and required facilities that will be used to convert
renewable chemicals and other biobased outputs of
biorefineries into end-user products on a commercial
scale.'';
(4) in subsection (c), by striking ``to eligible
entities'' and all that follows through ``guarantees
for loans'' and inserting ``to eligible entities
guarantees for loans'';
(5) by striking subsection (d);
(6) by redesignating subsections (e), (f), (g), and
(h) as subsections (d), (e), (f), and (g),
respectively; and
(7) in subsection (d) (as so redesignated)--
(A) in paragraph (1), by adding at the end
the following new subparagraph:
``(D) Project diversity.--In approving loan
guarantee applications, the Secretary shall
ensure that, to the extent practicable, there
is diversity in the types of projects approved
for loan guarantees to ensure that as wide a
range as possible of technologies, products,
and approaches are assisted.''.
(B) by striking ``subsection (c)(2)'' each
place it appears and inserting ``subsection
(c)''; and
(C) in paragraph (2)(C), by striking
``subsection (h)'' and inserting ``subsection
(g)''.
(b) Funding.--Subsection (g) of section 9003 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8103) (as
redesignated by paragraph (6)) is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) Mandatory funding.--
``(A) In general.--Subject to subparagraph
(B), of the funds of the Commodity Credit
Corporation, the Secretary shall use for the
cost of loan guarantees under this section, to
remain available until expended--
``(i) $100,000,000 for fiscal year
2014; and
``(ii) $50,000,000 for each of
fiscal years 2015 and 2016.
``(B) Biobased product manufacturing.--Of
the total amount of funds made available for
fiscal years 2014 and 2015 under subparagraph
(A), the Secretary may use for the cost of loan
guarantees under this section not more than 15
percent of such funds to promote biobased
product manufacturing.''; and
(2) in paragraph (2), by striking ``$150,000,000
for each of fiscal years 2009 through 2013'' and
inserting ``$75,000,000 for each of fiscal years 2014
through 2018''.
SEC. 9004. REPOWERING ASSISTANCE PROGRAM.
Section 9004(d) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8104(d)) is amended--
(1) in paragraph (1), by striking ``$35,000,000 for
fiscal year 2009'' and inserting ``$12,000,000 for
fiscal year 2014''; and
(2) in paragraph (2), by striking ``$15,000,000 for
each of fiscal years 2009 through 2013'' and inserting
``$10,000,000 for each of fiscal years 2014 through
2018''.
SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.
Section 9005(g) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8105(g)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``;
and'' and inserting a semicolon;
(B) in subparagraph (D), by striking the
period and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) $15,000,000 for each of fiscal years
2014 through 2018.''; and
(2) in paragraph (2), by striking ``$25,000,000 for
each of fiscal years 2009 through 2013'' and inserting
``$20,000,000 for each of fiscal years 2014 through
2018''.
SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.
Section 9006(d) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8106(d)) is amended--
(1) in paragraph (1)--
(A) in the heading, by striking ``Fiscal
years 2009 through 2012'' and inserting
``Mandatory funding''; and
(B) by striking ``2012'' and inserting
``2018''; and
(2) in paragraph (2)--
(A) in the heading, by striking
``Authorization of appropriations'' and
inserting ``Discretionary funding''; and
(B) by striking ``fiscal year 2013'' and
inserting ``each of fiscal years 2014 through
2018''.
SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Program Adjustments.--Section 9007 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended--
(1) in subsection (b)(2)--
(A) in subparagraph (C), by striking
``and'' at the end;
(B) by redesignating subparagraph (D) as
subparagraph (E); and
(C) by inserting after subparagraph (C) the
following:
``(D) a council (as defined in section 1528
of the Agriculture and Food Act of 1981 (16
U.S.C. 3451)); and''; and
(2) in subsection (c)--
(A) by striking paragraph (3);
(B) by redesignating paragraph (4) as
paragraph (3); and
(C) by adding at the end the following:
``(4) Tiered application process.--
``(A) In general.--In providing loan
guarantees and grants under this subsection,
the Secretary shall use a 3-tiered application
process that reflects the size of proposed
projects in accordance with this paragraph.
``(B) Tier 1.--The Secretary shall
establish a separate application process for
projects for which the cost of the activity
funded under this subsection is not more than
$80,000.
``(C) Tier 2.--The Secretary shall
establish a separate application process for
projects for which the cost of the activity
funded under this subsection is greater than
$80,000 but less than $200,000.
``(D) Tier 3.--The Secretary shall
establish a separate application process for
projects for which the cost of the activity
funded under this subsection is equal to or
greater than $200,000.
``(E) Application process.--The Secretary
shall establish an application, evaluation, and
oversight process that is the most simplified
for tier I projects and more comprehensive for
each subsequent tier.''.
(b) Funding.--Section 9007(g) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107(g)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``;
and'' and inserting a semicolon;
(B) in subparagraph (D), by striking the
period and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) $50,000,000 for fiscal year 2014 and
each fiscal year thereafter.''; and
(2) in paragraph (3), by striking ``$25,000,000 for
each of fiscal years 2009 through 2013'' and inserting
``$20,000,000 for each of fiscal years 2014 through
2018''.
SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.
Section 9008(h) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8108(h)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``;
and'' and inserting a semicolon;
(B) in subparagraph (D), by striking the
period and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) $3,000,000 for each of fiscal years
2014 through 2017.''; and
(2) in paragraph (2), by striking ``$35,000,000 for
each of fiscal years 2009 through 2013'' and inserting
``$20,000,000 for each of fiscal years 2014 through
2018''.
SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.
Section 9010(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8110(b)) is amended--
(1) in paragraph (1)(A), by striking ``2013'' and
inserting ``2018''; and
(2) in paragraph (2)(A), by striking ``2013'' and
inserting ``2018''.
SEC. 9010. BIOMASS CROP ASSISTANCE PROGRAM.
Section 9011 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8111) is amended to read as follows:
``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) BCAP.--The term `BCAP' means the Biomass Crop
Assistance Program established under this section.
``(2) BCAP project area.--The term `BCAP project
area' means an area that--
``(A) has specified boundaries that are
submitted to the Secretary by the project
sponsor and subsequently approved by the
Secretary;
``(B) includes producers with contract
acreage that will supply a portion of the
renewable biomass needed by a biomass
conversion facility; and
``(C) is physically located within an
economically practicable distance from the
biomass conversion facility.
``(3) Contract acreage.--The term `contract
acreage' means eligible land that is covered by a BCAP
contract entered into with the Secretary.
``(4) Eligible crop.--
``(A) In general.--The term `eligible crop'
means a crop of renewable biomass.
``(B) Exclusions.--The term `eligible crop'
does not include--
``(i) any crop that is eligible to
receive payments under title I of the
Agricultural Act of 2014 or an
amendment made by that title; or
``(ii) any plant that is invasive
or noxious or species or varieties of
plants that credible risk assessment
tools or other credible sources
determine are potentially invasive, as
determined by the Secretary in
consultation with other appropriate
Federal or State departments and
agencies.
``(5) Eligible land.--
``(A) In general.--The term `eligible land'
includes--
``(i) agricultural and
nonindustrial private forest lands (as
defined in section 5(c) of the
Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103a(c))); and
``(ii) land enrolled in the
conservation reserve program
established under subchapter B of
chapter I of subtitle D of title XII of
the Food Security Act of 1985 (16
U.S.C. 3831 et seq.), or the
Agricultural Conservation Easement
Program established under subtitle H of
title XII of that Act, under a contract
that will expire at the end of the
current fiscal year.
``(B) Exclusions.--The term `eligible land'
does not include--
``(i) Federal- or State-owned land;
``(ii) land that is native sod, as
of the date of enactment of the Food,
Conservation, and Energy Act of 2008 (7
U.S.C. 8701 et seq.);
``(iii) land enrolled in 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.), other than land
described in subparagraph (A)(ii); or
``(iv) land enrolled in the
Agricultural Conservation Easement
Program established under subtitle H of
title XII of that Act, other than land
described in subparagraph (A)(ii).
``(6) Eligible material.--
``(A) In general.--The term `eligible
material' means renewable biomass harvested
directly from the land, including crop residue
from any crop that is eligible to receive
payments under title I of the Agricultural Act
of 2014 or an amendment made by that title.
``(B) Inclusions.--The term `eligible
material' shall only include--
``(i) eligible material that is
collected or harvested by the eligible
material owner--
``(I) directly from--
``(aa) National
Forest System;
``(bb) Bureau of
Land Management land;
``(cc) non-Federal
land; or
``(dd) land owned
by an individual Indian
or Indian tribe that is
held in trust by the
United States for the
benefit of the
individual Indian or
Indian tribe or subject
to a restriction
against alienation
imposed by the United
States;
``(II) in a manner that is
consistent with--
``(aa) a
conservation plan;
``(bb) a forest
stewardship plan; or
``(cc) a plan that
the Secretary
determines is
equivalent to a plan
described in item (aa)
or (bb) and consistent
with Executive Order
13112 (42 U.S.C. 4321
note; relating to
invasive species);
``(ii) if woody eligible material,
woody eligible material that is
produced on land other than contract
acreage that--
``(I) is a byproduct of a
preventative treatment that is
removed to reduce hazardous
fuel or to reduce or contain
disease or insect infestation;
and
``(II) if harvested from
Federal land, is harvested in
accordance with section 102(e)
of the Healthy Forests
Restoration Act of 2003 (16
U.S.C. 6512(e)); and
``(iii) eligible material that is
delivered to a qualified biomass
conversion facility to be used for
heat, power, biobased products,
research, or advanced biofuels.
``(C) Exclusions.--The term `eligible
material' does not include--
``(i) material that is whole grain
from any crop that is eligible to
receive payments under title I of the
Agricultural Act of 2014 or an
amendment made by that title,
including--
``(I) barley, corn, grain
sorghum, oats, rice, or wheat;
``(II) honey;
``(III) mohair;
``(IV) oilseeds, including
canola, crambe, flaxseed,
mustard seed, rapeseed,
safflower seed, soybeans,
sesame seed, and sunflower
seed;
``(V) peanuts;
``(VI) pulse;
``(VII) chickpeas, lentils,
and dry peas;
``(VIII) dairy products;
``(IX) sugar; and
``(X) wool and cotton boll
fiber;
``(ii) animal waste and byproducts,
including fat, oil, grease, and manure;
``(iii) food waste and yard waste;
``(iv) algae;
``(v) woody eligible material
that--
``(I) is removed outside
contract acreage; and
``(II) is not a byproduct
of a preventative treatment to
reduce hazardous fuel or to
reduce or contain disease or
insect infestation;
``(vi) any woody eligible material
collected or harvested outside contract
acreage that would otherwise be used
for existing market products; or
``(vii) bagasse.
``(7) Producer.--The term `producer' means an owner
or operator of contract acreage that is physically
located within a BCAP project area.
``(8) Project sponsor.--The term `project sponsor'
means--
``(A) a group of producers; or
``(B) a biomass conversion facility.
``(9) Socially disadvantaged farmer or rancher.--
The term `socially disadvantaged farmer or rancher' has
the meaning given the term in section 2501(e) of the
Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(e)).
``(b) Establishment and Purpose.--The Secretary shall
establish and administer a Biomass Crop Assistance Program to--
``(1) support the establishment and production of
eligible crops for conversion to bioenergy in selected
BCAP project areas; and
``(2) assist agricultural and forest land owners
and operators with the collection, harvest, storage,
and transportation of eligible material for use in a
biomass conversion facility.
``(c) BCAP Project Area.--
``(1) In general.--The Secretary shall provide
financial assistance to a producer of an eligible crop
in a BCAP project area.
``(2) Selection of project areas.--
``(A) In general.--To be considered for
selection as a BCAP project area, a project
sponsor shall submit to the Secretary a
proposal that, at a minimum, includes--
``(i) a description of the eligible
land and eligible crops of each
producer that will participate in the
proposed BCAP project area;
``(ii) a letter of commitment from
a biomass conversion facility that the
facility will use the eligible crops
intended to be produced in the proposed
BCAP project area;
``(iii) evidence that the biomass
conversion facility has sufficient
equity available, as determined by the
Secretary, if the biomass conversion
facility is not operational at the time
the proposal is submitted to the
Secretary; and
``(iv) any other information about
the biomass conversion facility or
proposed biomass conversion facility
that the Secretary determines necessary
for the Secretary to be reasonably
assured that the plant will be in
operation by the date on which the
eligible crops are ready for harvest.
``(B) BCAP project area selection
criteria.--In selecting BCAP project areas, the
Secretary shall consider--
``(i) the volume of the eligible
crops proposed to be produced in the
proposed BCAP project area and the
probability that those crops will be
used for the purposes of the BCAP;
``(ii) the volume of renewable
biomass projected to be available from
sources other than the eligible crops
grown on contract acres;
``(iii) the anticipated economic
impact in the proposed BCAP project
area;
``(iv) the opportunity for
producers and local investors to
participate in the ownership of the
biomass conversion facility in the
proposed BCAP project area;
``(v) the participation rate by--
``(I) beginning farmers or
ranchers (as defined in
accordance with section 343(a)
of the Consolidated Farm and
Rural Development Act (7 U.S.C.
1991(a))); or
``(II) socially
disadvantaged farmers or
ranchers;
``(vi) the impact on soil, water,
and related resources;
``(vii) the variety in biomass
production approaches within a project
area, including (as appropriate)--
``(I) agronomic conditions;
``(II) harvest and
postharvest practices; and
``(III) monoculture and
polyculture crop mixes;
``(viii) the range of eligible
crops among project areas;
``(ix) existing project areas that
have received funding under this
section and the continuation of funding
of such project areas to advance the
maturity of such project areas; and
``(x) any additional information
that the Secretary determines to be
necessary.
``(3) Contract.--
``(A) In general.--On approval of a BCAP
project area by the Secretary, each producer in
the BCAP project area shall enter into a
contract directly with the Secretary.
``(B) Minimum terms.--At a minimum, a
contract under this subsection shall include
terms that cover--
``(i) an agreement to make
available to the Secretary, or to an
institution of higher education or
other entity designated by the
Secretary, such information as the
Secretary considers to be appropriate
to promote the production of eligible
crops and the development of biomass
conversion technology;
``(ii) compliance with the highly
erodible land conservation requirements
of subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et
seq.) and the wetland conservation
requirements of subtitle C of title XII
of that Act (16 U.S.C. 3821 et seq.);
``(iii) the implementation of (as
determined by the Secretary)--
``(I) a conservation plan;
``(II) a forest stewardship
plan; or
``(III) a plan that is
equivalent to a conservation or
forest stewardship plan; and
``(iv) any additional requirements
that Secretary determines to be
necessary.
``(C) Duration.--A contract under this
subsection shall have a term of not more than--
``(i) 5 years for annual and
perennial crops; or
``(ii) 15 years for woody biomass.
``(4) Relationship to other programs.--In carrying
out this subsection, the Secretary shall provide for
the preservation of cropland base and yield history
applicable to the land enrolled in a BCAP contract.
``(5) Payments.--
``(A) In general.--The Secretary shall make
establishment and annual payments directly to
producers to support the establishment and
production of eligible crops on contract
acreage.
``(B) Amount of establishment payments.--
``(i) In general.--Subject to
clause (ii), the amount of an
establishment payment under this
subsection shall be not more than 50
percent of the costs of establishing an
eligible perennial crop covered by the
contract but not to exceed $500 per
acre, including--
``(I) the cost of seeds and
stock for perennials;
``(II) the cost of planting
the perennial crop, as
determined by the Secretary;
and
``(III) in the case of
nonindustrial private
forestland, the costs of site
preparation and tree planting.
``(ii) Socially disadvantaged
farmers or ranchers.--In the case of
socially disadvantaged farmers or
ranchers, the costs of establishment
may not exceed $750 per acre.
``(C) Amount of annual payments.--
``(i) In general.--Subject to
clause (ii), the amount of an annual
payment under this subsection shall be
determined by the Secretary.
``(ii) Reduction.--The Secretary
shall reduce an annual payment by an
amount determined to be appropriate by
the Secretary, if--
``(I) an eligible crop is
used for purposes other than
the production of energy at the
biomass conversion facility;
``(II) an eligible crop is
delivered to the biomass
conversion facility;
``(III) the producer
receives a payment under
subsection (d);
``(IV) the producer
violates a term of the
contract; or
``(V) the Secretary
determines a reduction is
necessary to carry out this
section.
``(D) Exclusion.--The Secretary shall not
make any BCAP payments on land for which
payments are received 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.) or the agricultural conservation easement
program established under subtitle H of title
XII of that Act.
``(d) Assistance With Collection, Harvest, Storage, and
Transportation.--
``(1) In general.--The Secretary shall make a
payment for the delivery of eligible material to a
biomass conversion facility to--
``(A) a producer of an eligible crop that
is produced on BCAP contract acreage; or
``(B) a person with the right to collect or
harvest eligible material, regardless of
whether the eligible material is produced on
contract acreage.
``(2) Payments.--
``(A) Costs covered.--A payment under this
subsection shall be in an amount described in
subparagraph (B) for--
``(i) collection;
``(ii) harvest;
``(iii) storage; and
``(iv) transportation to a biomass
conversion facility.
``(B) Amount.--Subject to paragraph (3),
the Secretary may provide matching payments at
a rate of up to $1 for each $1 per ton provided
by the biomass conversion facility, in an
amount not to exceed $20 per dry ton for a
period of 2 years.
``(3) Limitation on assistance for bcap contract
acreage.--As a condition of the receipt of an annual
payment under subsection (c), a producer receiving a
payment under this subsection for collection, harvest,
storage, or transportation of an eligible crop produced
on BCAP acreage shall agree to a reduction in the
annual payment.
``(e) Report.--Not later than 4 years after the date of
enactment of the Agricultural Act of 2014, 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 dissemination by the
Secretary of the best practice data and information gathered
from participants receiving assistance under this section.
``(f) Funding.--
``(1) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry
out this section $25,000,000 for each of fiscal years
2014 through 2018.
``(2) Collection, harvest, storage, and
transportation payments.--Of the amount made available
under paragraph (1) for each fiscal year, the Secretary
shall use not less than 10 percent, nor more than 50
percent, of the amount to make collection, harvest,
transportation, and storage payments under subsection
(d)(2).
``(3) Technical assistance.--
``(A) In general.--Effective for fiscal
year 2014 and each subsequent fiscal year,
funds made available under this subsection
shall be available for the provision of
technical assistance with respect to activities
authorized under this section.
``(B) Relationship to other laws.--To the
extent funds obligated or expended under
subparagraph (A) include funds of the Commodity
Credit Corporation, such funds shall not be
considered an allotment or fund transfer from
the Commodity Credit Corporation for purposes
of the limit on expenditures for technical
assistance imposed by section 11 of the
Commodity Credit Corporation Charter Act (15
U.S.C. 714i).''.
SEC. 9011. REPEAL OF FOREST BIOMASS FOR ENERGY.
Section 9012 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8112) is repealed.
SEC. 9012. COMMUNITY WOOD ENERGY PROGRAM.
(a) Definition of Biomass Consumer Cooperative.--Section
9013(a) of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8113(a)) is amended--
(1) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively; and
(2) by inserting before paragraph (2) (as so
redesignated) the following:
``(1) Biomass consumer cooperative.--The term
`biomass consumer cooperative' means a consumer
membership organization the purpose of which is to
provide members with services or discounts relating to
the purchase of biomass heating products or biomass
heating systems.''.
(b) Grant Program.--Section 9013(b)(1) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8113(b)(1)) is
amended--
(1) in subparagraph (A), by striking ``and'' after
the semicolon at the end;
(2) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(C) grants of up to $50,000 to biomass
consumer cooperatives for the purpose of
establishing or expanding biomass consumer
cooperatives that will provide consumers with
services or discounts relating to--
``(i) the purchase of biomass
heating systems;
``(ii) biomass heating products,
including wood chips, wood pellets, and
advanced biofuels; or
``(iii) the delivery and storage of
biomass of heating products.''.
(c) Matching Funds.--Section 9013(d) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8113(d)) is
amended--
(1) by striking ``A State or local government that
receives a grant under subsection (b)'' and inserting
the following:
``(1) State and local governments.--A State or
local government that receives a grant under
subparagraph (A) or (B) of subsection (b)(1)''; and
(2) by adding at the end the following:
``(2) Biomass consumer cooperatives.--A biomass
consumer cooperative that receives a grant under
subsection (b)(1)(C) shall contribute an amount of non-
Federal funds (which may include State, local, and
nonprofit funds and membership dues) toward the
establishment or expansion of a biomass consumer
cooperative that is at least equal to 50 percent of the
amount of Federal funds received for that purpose.''.
(d) Authorization of Appropriations.--Section 9013(e) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8113(e)) is amended by striking ``2013'' and inserting
``2018''.
SEC. 9013. REPEAL OF BIOFUELS INFRASTRUCTURE STUDY.
Section 9002 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 2095) is repealed.
SEC. 9014. REPEAL OF RENEWABLE FERTILIZER STUDY.
Section 9003 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 2096) is repealed.
SEC. 9015. ENERGY EFFICIENCY REPORT FOR USDA FACILITIES.
(a) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Agriculture shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report on energy use and energy
efficiency projects at the Washington, District of Columbia,
headquarters and the major regional facilities of the
Department of Agriculture.
(b) Contents.--The report required by subsection (a) shall
include the following:
(1) An analysis of energy use by the Department of
Agriculture headquarters and major regional facilities.
(2) A list of energy audits that have been
conducted at such facilities.
(3) A list of energy efficiency projects that have
been conducted at such facilities.
(4) A list of energy savings projects that could be
achieved with enacting a consistent, timely, and proper
mechanical insulation maintenance program and upgrading
mechanical insulation at such facilities.
TITLE X--HORTICULTURE
SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION.
Section 10107(b) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 1622b(b)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.
Effective October 1, 2013, section 10403 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 1622c) is
repealed.
SEC. 10003. FARMERS' MARKET AND LOCAL FOOD PROMOTION PROGRAM.
Section 6 of the Farmer-to-Consumer Direct Marketing Act of
1976 (7 U.S.C. 3005) is amended--
(1) in the section heading, by inserting ``and
local food'' after ``farmers' market'';
(2) in subsection (a)--
(A) by inserting ``and Local Food'' after
``Farmers' Market'';
(B) by striking ``farmers' markets and to
promote''; and
(C) by striking the period and inserting
``and assist in the development of local food
business enterprises.'';
(3) by striking subsection (b) and inserting the
following:
``(b) Program Purposes.--The purposes of the Program are to
increase domestic consumption of and access to locally and
regionally produced agricultural products, and to develop new
market opportunities for farm and ranch operations serving
local markets, by developing, improving, expanding, and
providing outreach, training, and technical assistance to, or
assisting in the development, improvement and expansion of--
``(1) domestic farmers' markets, roadside stands,
community-supported agriculture programs, agritourism
activities, and other direct producer-to-consumer
market opportunities; and
``(2) local and regional food business enterprises
(including those that are not direct producer-to-
consumer markets) that process, distribute, aggregate,
or store locally or regionally produced food
products.'';
(4) in subsection (c)(1)--
(A) by inserting ``or other agricultural
business entity'' after ``cooperative''; and
(B) by inserting ``, including a community
supported agriculture network or association''
after ``association'';
(5) by redesignating subsection (e) as subsection
(g);
(6) by inserting after subsection (d) the
following:
``(e) Priorities.--In providing grants under the Program,
priority shall be given to applications that include projects
that benefit underserved communities, including communities
that--
``(1) are located in areas of concentrated poverty
with limited access to fresh locally or regionally
grown foods; and
``(2) have not received benefits from the Program
in the recent past.
``(f) Funds Requirements for Eligible Entities.--
``(1) Matching funds.--An entity receiving a grant
under this section for a project to carry out a purpose
described in subsection (b)(2) shall provide matching
funds in the form of cash or an in-kind contribution in
an amount equal to 25 percent of the total cost of the
project.
``(2) Limitation on use of funds.--An eligible
entity may not use a grant or other assistance provided
under this section for the purchase, construction, or
rehabilitation of a building or structure.''; and
(7) in subsection (g) (as redesignated by paragraph
(5))--
(A) in paragraph (1)--
(i) in the paragraph heading, by
striking ``Fiscal years 2008 through
2012'' and inserting ``Mandatory
funding'';
(ii) in subparagraph (B), by
striking ``and'' at the end;
(iii) in subparagraph (C), by
striking the period at the end and
inserting ``; and''; and
(iv) by adding at the end the
following:
``(D) $30,000,000 for each of fiscal years
2014 through 2018.'';
(B) by striking paragraphs (3) and (5);
(C) by redesignating paragraph (4) as
paragraph (6); and
(D) by inserting after paragraph (2) the
following:
``(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 2014 through 2018.
``(4) Use of funds.--Of the funds made available to
carry out this section for a fiscal year--
``(A) 50 percent of the funds shall be used
for the purposes described in subsection
(b)(1); and
``(B) 50 percent of the funds shall be used
for the purposes described in subsection
(b)(2).
``(5) Limitation on administrative expenses.--Not
more than 4 percent of the total amount made available
to carry out this section for a fiscal year may be used
for administrative expenses.''.
SEC. 10004. ORGANIC AGRICULTURE.
(a) Organic Production and Market Data Initiatives.--
Section 7407 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 5925c) is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1),
by inserting ``and annually thereafter'' after
``this subsection'';
(B) in paragraph (1), by striking ``and''
at the end;
(C) by redesignating paragraph (2) as
paragraph (3); and
(D) by inserting after paragraph (1) the
following:
``(2) describes how data collection agencies (such
as the Agricultural Marketing Service and the National
Agricultural Statistics Service) are coordinating with
data user agencies (such as the Risk Management Agency)
to ensure that data collected under this section can be
used by data user agencies, including by the Risk
Management Agency to offer price elections for all
organic crops; and''; and
(2) in subsection (d)--
(A) by striking paragraph (3);
(B) by redesignating paragraph (2) as
paragraph (3);
(C) by inserting after paragraph (1) the
following:
``(2) Mandatory funding.--In addition to any funds
made available under paragraph (1), of the funds of the
Commodity Credit Corporation, the Secretary shall use
to carry out this section $5,000,000, to remain
available until expended.''; and
(D) in paragraph (3) (as redesignated by
subparagraph (B))--
(i) in the paragraph heading, by
striking ``for fiscal years 2008
through 2012'';
(ii) by striking ``paragraph (1)''
and inserting ``paragraphs (1) and
(2)''; and
(iii) by striking ``2012'' and
inserting ``2018''.
(b) Modernization and Technology Upgrade for National
Organic Program.--Section 2123 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6522) is amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and''
at the end;
(B) by redesignating paragraph (6) as
paragraph (7); and
(C) by inserting after paragraph (5) the
following:
``(6) $15,000,000 for each of fiscal years 2014
through 2018; and''; and
(2) by adding at the end the following:
``(c) Modernization and Technology Upgrade for National
Organic Program.--
``(1) In general.--The Secretary shall modernize
database and technology systems of the national organic
program.
``(2) Funding.--Of the funds of the Commodity
Credit Corporation and in addition to any other funds
made available for that purpose, the Secretary shall
make available to carry out this subsection $5,000,000
for fiscal year 2014, to remain available until
expended.''.
(c) National Organic Certification Cost-share Program.--
Section 10606(d) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 6523(d)) is amended by striking paragraph (1)
and inserting the following:
``(1) Mandatory funding for fiscal years 2014
through 2018.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to
carry out this section $11,500,000 for each of fiscal
years 2014 through 2018, to remain available until
expended.''.
(d) Exemption of Certified Organic Products From Promotion
Order Assessments.--Section 501 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7401) is amended
by striking subsection (e) and inserting the following;
``(e) Exemption of Certified Organic Products From
Promotion Order Assessments.--
``(1) In general.--Notwithstanding any provision of
a commodity promotion law, a person that produces,
handles, markets, or imports organic products may be
exempt from the payment of an assessment under a
commodity promotion law with respect to any
agricultural commodity that is certified as `organic'
or `100 percent organic' (as defined in part 205 of
title 7, Code of Federal Regulations (or a successor
regulation)).
``(2) Split operations.--The exemption described in
paragraph (1) shall apply to the certified `organic' or
`100 percent organic' (as defined in part 205 of title
7 of the Code of Federal Regulations (or a successor
regulation)) products of a producer, handler, or
marketer regardless of whether the agricultural
commodity subject to the exemption is produced,
handled, or marketed by a person that also produces,
handles, or markets conventional or nonorganic
agricultural products, including conventional or
nonorganic agricultural products of the same
agricultural commodity as that for which the exemption
is claimed.
``(3) Approval.--The Secretary shall approve the
exemption of a person under this subsection if the
person maintains a valid organic certificate issued
under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.).
``(4) Termination of effectiveness.--This
subsection shall be effective until the date on which
the Secretary issues an organic commodity promotion
order in accordance with subsection (f).
``(5) Regulations.--The Secretary shall promulgate
regulations concerning eligibility and compliance for
an exemption under paragraph (1).''.
(e) Organic Commodity Promotion Order.--Section 501 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7401) is amended by adding at the end the following:
``(f) Organic Commodity Promotion Order.--
``(1) Definitions.--In this subsection:
``(A) Certified organic farm.--The term
`certified organic farm' has the meaning given
the term in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502).
``(B) Covered person.--The term `covered
person' means a producer, handler, marketer, or
importer of an organic agricultural commodity.
``(C) Dual-covered agricultural
commodity.--The term `dual-covered agricultural
commodity' means an agricultural commodity
that--
``(i) is produced on a certified
organic farm; and
``(ii) is covered under both--
``(I) an organic commodity
promotion order issued pursuant
to paragraph (2); and
``(II) any other
agricultural commodity
promotion order issued under
section 514.
``(2) Authorization.--The Secretary may issue an
organic commodity promotion order under section 514
that includes any agricultural commodity that--
``(A) is produced or handled (as defined in
section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502)) and that is
certified to be sold or labeled as `organic' or
`100 percent organic' (as defined in part 205
of title 7, Code of Federal Regulations (or a
successor regulation)); or
``(B) is imported with a valid organic
certificate (as defined in that part).
``(3) Election.--If the Secretary issues an organic
commodity promotion order described in paragraph (2), a
covered person may elect, for applicable dual-covered
agricultural commodities and in the sole discretion of
the covered person, whether to be assessed under the
organic commodity promotion order or another applicable
agricultural commodity promotion order.
``(4) Regulations.--The Secretary shall promulgate
regulations concerning eligibility and compliance for
an exemption under paragraph (1).''.
(f) Definition of Agricultural Commodity.--Section 513(1)
of the Commodity Promotion, Research, and Information Act of
1996 (7 U.S.C. 7412(1)) is amended--
(1) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the
following:
``(E) products, as a class, that are--
``(i) produced on a certified
organic farm (as defined in section
2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502)); and
``(ii) certified to be sold or
labeled as `organic' or `100 percent
organic' (as defined in part 205 of
title 7, Code of Federal Regulations
(or a successor regulation));''.
SEC. 10005. INVESTIGATIONS AND ENFORCEMENT OF THE ORGANIC FOODS
PRODUCTION ACT OF 1990.
(a) Recordkeeping by Certified Operations.--Section 2112 of
the Organic Foods Production Act of 1990 (7 U.S.C. 6511) is
amended by striking subsection (d).
(b) Recordkeeping by Certifying Agents.--
(1) In general.--Section 2116 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6515) is amended--
(A) by striking subsection (c);
(B) by redesignating subsections (d)
through (j) as subsections (c) through (i),
respectively; and
(C) in subsection (d) (as so redesignated),
in the matter preceding paragraph (1), by
striking ``subsection (d)'' and inserting
``subsection (c)''.
(2) Conforming amendment.--Section 2107(a)(8) of
the Organic Foods Production Act of 1990 (7 U.S.C.
6506(a)(8)) is amended by striking ``section 2116(h)''
and inserting ``section 2116(g)''.
(c) Recordkeeping, Investigations, and Enforcement.--
Section 2120 of the Organic Foods Production Act of 1990 (7
U.S.C. 6519) is amended to read as follows:
``SEC. 2120. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.
``(a) Recordkeeping.--
``(1) In general.--Except as otherwise provided in
this title, each person who sells, labels, or
represents any agricultural product as having been
produced or handled using organic methods shall make
available to the Secretary or the applicable governing
State official, on request by the Secretary or
official, all records associated with the agricultural
product.
``(2) Certified operations.--Each producer that
operates a certified organic farm or certified organic
handling operation under this title shall maintain, for
a period of not less than 5 years, all records
concerning the production or handling of any
agricultural product sold or labeled as organically
produced under this title, including--
``(A) a detailed history of substances
applied to fields or agricultural products;
``(B) the name and address of each person
who applied such a substance; and
``(C) the date, rate, and method of
application of each such substance.
``(3) Certifying agents.--
``(A) Maintenance of records.--A certifying
agent shall maintain all records concerning the
activities of the certifying agent under this
title for a period of not less than 10 years.
``(B) Access for secretary.--A certifying
agent shall provide to the Secretary and the
applicable governing State official (or a
representative) access to all records
concerning the activities of the certifying
agent under this title.
``(C) Transference of records.--If a
private person that was certified under this
title is dissolved or loses accreditation, all
records and copies of records concerning the
activities of the person under this title shall
be--
``(i) transferred to the Secretary;
and
``(ii) made available to the
applicable governing State official.
``(4) Unlawful act.--It shall be unlawful and a
violation of this title for any person covered by this
title to fail or refuse to provide accurate information
(including a delay in the timely delivery of such
information) required by the Secretary under this
title.
``(5) Confidentiality.--Except as provided in
section 2107(a)(9), or as otherwise directed by the
Secretary or the Attorney General for enforcement
purposes, no officer, employee, or agent of the United
States shall make available to the public any
information, statistic, or document obtained from, or
made available by, any person under this title, other
than in a manner that ensures that confidentiality is
preserved regarding--
``(A) the identity of all relevant persons
(including parties to a contract); and
``(B) proprietary business information.
``(b) Investigations.--
``(1) In general.--The Secretary may take such
investigative actions as the Secretary considers to be
necessary--
``(A) to verify the accuracy of any
information reported or made available under
this title; and
``(B) to determine whether a person covered
by this title has committed a violation of any
provision of this title, including an order or
regulation promulgated by the Secretary
pursuant to this title.
``(2) Specific investigative powers.--In carrying
out this title, the Secretary may--
``(A) administer oaths and affirmations;
``(B) subpoena witnesses;
``(C) compel attendance of witnesses;
``(D) take evidence; and
``(E) require the production of any records
required to be maintained under this title that
are relevant to an investigation.
``(c) Violations of Title.--
``(1) Misuse of label.--Any person who knowingly
sells or labels a product as organic, except in
accordance with this title, shall be subject to a civil
penalty of not more than $10,000.
``(2) False statement.--Any person who makes a
false statement under this title to the Secretary, a
governing State official, or a certifying agent shall
be punished in accordance with section 1001 of title
18, United States Code.
``(3) Ineligibility.--
``(A) In general.--Except as provided in
subparagraph (C), any person that carries out
an activity described in subparagraph (B),
after notice and an opportunity to be heard,
shall not be eligible, for the 5-year period
beginning on the date of the occurrence, to
receive a certification under this title with
respect to any farm or handling operation in
which the person has an interest.
``(B) Description of activities.--An
activity referred to in subparagraph (A) is--
``(i) making a false statement;
``(ii) attempting to have a label
indicating that an agricultural product
is organically produced affixed to an
agricultural product that a person
knows, or should have reason to know,
to have been produced or handled in a
manner that is not in accordance with
this title; or
``(iii) otherwise violating the
purposes of the applicable organic
certification program, as determined by
the Secretary.
``(C) Waiver.--Notwithstanding subparagraph
(A), the Secretary may modify or waive a period
of ineligibility under this paragraph if the
Secretary determines that the modification or
waiver is in the best interests of the
applicable organic certification program
established under this title.
``(4) Reporting of violations.--A certifying agent
shall immediately report any violation of this title to
the Secretary or the applicable governing State
official.
``(5) Violations by certifying agent.--A certifying
agent that is a private person that violates the
provisions of this title or falsely or negligently
certifies any farming or handling operation that does
not meet the terms and conditions of the applicable
organic certification program as an organic operation,
as determined by the Secretary or the applicable
governing State official shall, after notice and an
opportunity to be heard--
``(A) lose accreditation as a certifying
agent under this title; and
``(B) be ineligible to be accredited as a
certifying agent under this title for a period
of not less than 3 years, beginning on the date
of the determination.
``(6) Effect on other law.--Nothing in this title
alters--
``(A) the authority of the Secretary
concerning meat, poultry and egg products
under--
``(i) the Federal Meat Inspection
Act (21 U.S.C. 601 et seq.);
``(ii) the Poultry Products
Inspection Act (21 U.S.C. 451 et seq.);
or
``(iii) the Egg Products Inspection
Act (21 U.S.C. 1031 et seq.);
``(B) the authority of the Secretary of
Health and Human Services under the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
seq.); or
``(C) the authority of the Administrator of
the Environmental Protection Agency under the
Federal Insecticide, Fungicide, and Rodenticide
Act (7 U.S.C. 136 et seq.).''.
SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES.
Section 10105(c) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 7655a(c)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 10007. CONSOLIDATION OF PLANT PEST AND DISEASE MANAGEMENT AND
DISASTER PREVENTION PROGRAMS.
(a) Relocation of Legislative Language Relating to National
Clean Plant Network.--Section 420 of the Plant Protection Act
(7 U.S.C. 7721) is amended--
(1) by redesignating subsection (e) as subsection
(f); and
(2) by inserting after subsection (d) the
following:
``(e) National Clean Plant Network.--
``(1) In general.--The Secretary shall establish a
program to be known as the `National Clean Plant
Network' (referred to in this subsection as the
`Program').
``(2) Requirements.--Under the Program, the
Secretary shall establish a network of clean plant
centers for diagnostic and pathogen elimination
services--
``(A) to produce clean propagative plant
material; and
``(B) to maintain blocks of pathogen-tested
plant material in sites located throughout the
United States.
``(3) Availability of clean plant source
material.--Clean plant source material may be made
available to--
``(A) a State for a certified plant program
of the State; and
``(B) private nurseries and producers.
``(4) Consultation and collaboration.--In carrying
out the Program, the Secretary shall--
``(A) consult with--
``(i) State departments of
agriculture; and
``(ii) land-grant colleges and
universities and NLGCA Institutions (as
those terms are defined in section 1404
of the National Agricultural Research,
Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)); and
``(B) to the extent practicable and with
input from the appropriate State officials and
industry representatives, use existing Federal
or State facilities to serve as clean plant
centers.
``(5) Funding for fiscal year 2013.--There is
authorized to be appropriated to carry out the Program
$5,000,000 for fiscal year 2013.''.
(b) Funding.--Subsection (f) of section 420 of the Plant
Protection Act (7 U.S.C. 7721) (as so redesignated) is
amended--
(1) in paragraph (3), by striking ``and'' at the
end;
(2) in paragraph (4), by striking ``and each fiscal
year thereafter.'' and inserting a semicolon; and
(3) by adding at the end the following:
``(5) $62,500,000 for each of fiscal years 2014
through 2017; and
``(6) $75,000,000 for fiscal year 2018 and each
fiscal year thereafter.''.
(c) Repeal of Existing Provision.--Section 10202 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is
repealed.
(d) Use of Funds for Clean Plant Network.--Section 420 of
the Plant Protection Act (7 U.S.C. 7721) (as amended by
subsection (a)), is amended by adding at the end the following:
``(g) Use of Funds for Clean Plant Network.--Of the funds
made available under subsection (f) to carry out this section
for a fiscal year, not less than $5,000,000 shall be available
to carry out the National Clean Plant Network under subsection
(e).
``(h) Limitation on Indirect Costs for the Consolidation of
Plant Pest and Disease Management and Disaster Prevention
Programs.--Indirect costs charged against a cooperative
agreement under this section shall not exceed the lesser of--
``(1) 15 percent of the total Federal funds
provided under the cooperative agreement, as determined
by the Secretary; and
``(2) the indirect cost rate applicable to the
recipient as otherwise established by law.''.
SEC. 10008. IMPORTATION OF SEED.
Section 17(c) of the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. 136o(c)) 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) Importation of seed.--Notwithstanding any
other provision of law, no person is required to notify
the Administrator of the arrival of a plant-
incorporated protectant (as defined in section 174.3 of
title 40, Code of Federal Regulations (or any successor
regulation)) that is contained in a seed, if--
``(A) that plant-incorporated protectant is
registered under section 3;
``(B) the Administrator has issued an
experimental use permit for that plant-
incorporated protectant under section 5; or
``(C) the seed is covered by a permit (as
defined in part 340 of title 7, Code of Federal
Regulations (or any successor regulation)) or a
notification.
``(3) Cooperation.--
``(A) In general.--In response to a request
from the Administrator, the Secretary of
Agriculture shall provide to the Administrator
a list of seed containing plant-incorporated
protectants (as defined in section 174.3 of
title 40, Code of Federal Regulations (or any
successor regulation)) if the importation of
that seed into the United States has been
approved under a permit or notification
referred to in paragraph (2).
``(B) Contents.--The list under
subparagraph (A) shall be provided in a form
and at such intervals as may be agreed to by
the Secretary and the Administrator.
``(4) Applicability.--Nothing in this subsection
precludes or limits the authority of the Secretary of
Agriculture with respect to the importation or movement
of plants, plant products, or seeds under--
``(A) the Plant Protection Act (7
U.S.C.7701 et seq.); and
``(B) the Federal Seed Act (7 U.S.C. 1551
et seq.).''.
SEC. 10009. BULK SHIPMENTS OF APPLES TO CANADA.
(a) Bulk Shipment of Apples to Canada.--Section 4 of the
Export Apple Act (7 U.S.C. 584) is amended--
(1) by striking ``Sec. 4. Apples in'' and
inserting the following:
``SEC. 4. EXEMPTIONS.
``(a) In General.--Apples in''; and
(2) by adding at the end the following:
``(b) Bulk Containers.--Apples may be shipped to Canada in
bulk containers without complying with the provisions of this
Act.''.
(b) Definition of Bulk Container.--Section 9 of the Export
Apple Act (7 U.S.C. 589) is amended by adding at the end the
following:
``(5) The term `bulk container' means a container that
contains a quantity of apples weighing more than 100 pounds.''.
(c) Regulations.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall issue regulations to
carry out the amendments made by this section.
SEC. 10010. SPECIALTY CROP BLOCK GRANTS.
Section 101 of the Specialty Crops Competitiveness Act of
2004 (7 U.S.C. 1621 note; Public Law 108-465) is amended--
(1) in subsection (a)--
(A) by striking ``subsection (j)'' and
inserting ``subsection (l)''; and
(B) by striking ``2012'' and inserting
``2018'';
(2) by striking subsection (b) and inserting the
following:
``(b) Grants Based on Value and Acreage.--Subject to
subsection (c), for each State whose application for a grant
for a fiscal year that is accepted by the Secretary under
subsection (f), the amount of the grant for that fiscal year to
the State under this section shall bear the same ratio to the
total amount made available under subsection (l)(1) for that
fiscal year as--
``(1) the average of the most recent available
value of specialty crop production in the State and the
acreage of specialty crop production in the State, as
demonstrated in the most recent Census of Agriculture
data; bears to
``(2) the average of the most recent available
value of specialty crop production in all States and
the acreage of specialty crop production in all States,
as demonstrated in the most recent Census of
Agriculture data.'';
(3) by redesignating subsection (j) as subsection
(l);
(4) by inserting after subsection (i) the
following:
``(j) Multistate Projects.--Not later than 180 days after
the effective date of the Agricultural Act of 2014, the
Secretary of Agriculture shall issue guidance for the purpose
of making grants to multistate projects under this section for
projects involving--
``(1) food safety;
``(2) plant pests and disease;
``(3) research;
``(4) crop-specific projects addressing common
issues; and
``(5) any other area that furthers the purposes of
this section, as determined by the Secretary.
``(k) Administration.--
``(1) Department.--The Secretary of Agriculture may
not use more than 3 percent of the funds made available
to carry out this section for a fiscal year for
administrative expenses.
``(2) States.--A State receiving a grant under this
section may not use more than 8 percent of the funds
received under the grant for a fiscal year for
administrative expenses.''; and
(5) in subsection (l) (as redesignated by paragraph
(3))--
(A) by redesignating paragraphs (1), (2),
and (3) as subparagraphs (A), (B), and (C),
respectively, and indenting appropriately;
(B) by striking ``Of the funds'' and
inserting the following:
``(1) In general.--Of the funds'';
(C) in paragraph (1) (as so designated)--
(i) in subparagraph (B) (as
redesignated by subparagraph (A)), by
striking ``and'' at the end;
(ii) in subparagraph (C) (as
redesignated by subparagraph (A)), by
striking the period at the end and
inserting a semicolon; and
(iii) by adding at the end the
following:
``(D) $72,500,000 for each of fiscal years
2014 through 2017; and
``(E) $85,000,000 for fiscal year 2018 and
each fiscal year thereafter.''; and
(D) by adding at the end the following:
``(2) Multistate projects.--Of the funds made
available under paragraph (1), the Secretary may use to
carry out subsection (j), to remain available until
expended--
``(A) $1,000,000 for fiscal year 2014;
``(B) $2,000,000 for fiscal year 2015;
``(C) $3,000,000 for fiscal year 2016;
``(D) $4,000,000 for fiscal year 2017; and
``(E) $5,000,000 for fiscal year 2018.''.
SEC. 10011. DEPARTMENT OF AGRICULTURE CONSULTATION REGARDING
ENFORCEMENT OF CERTAIN LABOR LAW PROVISIONS.
(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall consult with the
Secretary of Labor regarding the restraining of shipments of
agricultural commodities, or the confiscation of agricultural
commodities, by the Department of Labor for actual or suspected
labor law violations in order to consider--
(1) the perishable nature of the commodities;
(2) the impact of the restraining or confiscation
on the economic viability of farming operations; and
(3) the competitiveness of specialty crops through
grants awarded to States under section 101 of the
Specialty Crops Competitiveness Act of 2004 (7 U.S.C.
1621 note; Public Law 108-465).
(b) Report.--The Secretary of Labor shall submit to the
Committees on Agriculture and Education and Workforce of the
House of Representative and the Committees on Agriculture,
Nutrition, and Forestry and Health, Education, Labor, and
Pensions of the Senate a report that describes the number of
instances during the period of fiscal years 2008 through 2013
that the Department of Labor has contacted a purchaser of
perishable agricultural commodities to notify that purchaser of
an investigation or pending enforcement action against a
producer from whom the purchaser has purchased perishable
agricultural commodities.
SEC. 10012. REPORT ON HONEY.
(a) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary, in consultation with
persons affected by the potential establishment of a Federal
standard for the identity of honey, shall submit to the
Commissioner of Food and Drugs a report describing how an
appropriate Federal standard for the identity of honey would be
in the interest of consumers, the honey industry, and United
States agriculture.
(b) Considerations.--In preparing the report required under
subsection (a), the Secretary shall take into consideration the
March 2006, Standard of Identity citizens petition filed with
the Food and Drug Administration, including any current
industry amendments or clarifications necessary to update that
petition.
SEC. 10013. REPORTS TO CONGRESS.
(a) In General.--Not later than 180 days and 1 year after
the date of enactment of this Act, the Administrator of the
Environmental Protection Agency and Secretaries of Commerce,
Agriculture and the Interior shall submit to the Committees on
Agriculture and Natural Resources of the House of
Representatives and the Committees on Agriculture, Nutrition,
and Forestry and Environment and Public Works of the Senate, 2
reports that describe approaches and actions taken by the
Environmental Protection Agency, the United States Fish and
Wildlife Service, and the National Marine Fisheries Service--
(1) to implement recommendations, including an
analysis of how any identified delays to implementation
will be overcome, of the 2013 Expert Report authored by
the National Research Council of the National Academies
entitled ``Assessing Risks to Endangered and Threatened
Species from Pesticides'';
(2) to otherwise minimize delays in integrating--
(A) the pesticide registration and
registration review requirements of sections 3
and 33 of the Federal Insecticide, Fungicide,
and Rodenticide Act (7 U.S.C. 136a, 136w-8);
and
(B) the species and habitat protection
processes described in sections 7 and 10 of the
Endangered Species Act of 1973 (16 U.S.C. 1536,
1539); and
(3) to ensure public participation and transparency
during the development, implementation, and evaluation
of the approaches to implement the recommendations
contained in the report described in paragraph (1).
(b) Requirement for Final Report.--In addition to the
requirements of subsection (a), the final report submitted to
Congress under that subsection shall--
(1) inform Congress of specific actions that have
been and will be taken to address the recommendations
identified in subsection (a)(1), including an
evaluation to establish that--
(A) the approaches utilize the best
available science;
(B) reasonable and prudent alternatives
within biological opinions are technologically
and economically feasible;
(C) reasonable and prudent measures are
necessary and appropriate; and
(D) the agencies ensure public
participation and transparency in the
development of reasonable and prudent
alternatives and reasonable and prudent
measures; and
(2) update the study and report required by
subsections (b) and (c) of section 1010 of Public Law
100-478 (7 U.S.C. 136a note).
SEC. 10014. STAY OF REGULATIONS.
Not later than 60 days after the date of enactment of this
Act, the Secretary shall lift the administrative stay imposed
under the rule of the Secretary entitled ``Christmas Tree
Promotion, Research, and Information Order; Stay of
Regulations'' and published by the Department of Agriculture on
November 17, 2011 (76 Fed. Reg. 71241), on the regulations in
subpart A of part 1214 of title 7, Code of Federal Regulations,
establishing an industry-funded promotion, research, and
information program for fresh-cut Christmas trees.
SEC. 10015. REGULATION OF SULFURYL FLUORIDE.
Notwithstanding any other provision of law, the
Administrator of the Environmental Protection Agency shall
exclude nonpesticideal sources of fluoride from any aggregate
exposure assessment required under section 408 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 346a) when assessing
tolerances associated with residues from the pesticide.
SEC. 10016. LOCAL FOOD PRODUCTION AND PROGRAM EVALUATION.
(a) In General.--The Secretary shall--
(1) collect data on--
(A) the production and marketing of locally
or regionally produced agricultural food
products; and
(B) direct and indirect regulatory
compliance costs affecting the production and
marketing of locally or regionally produced
agricultural food products;
(2) facilitate interagency collaboration and data
sharing on programs relating to local and regional food
systems;
(3) monitor--
(A) the effectiveness of programs designed
to expand or facilitate local food systems; and
(B) barriers to local and regional market
access due to Federal regulation of small-scale
production; and
(4) evaluate the manner in which local food
systems--
(A) contribute to improving community food
security; and
(B) assist populations with limited access
to healthy food.
(b) Requirements.--In carrying out this section, the
Secretary shall, at a minimum--
(1) collect and distribute comprehensive reporting
of prices and volume of locally or regionally produced
agricultural food products;
(2) conduct surveys and analysis and publish
reports relating to the production, handling,
distribution, retail sales, and trend studies
(including consumer purchasing patterns) of or on
locally or regionally produced agricultural food
products;
(3) evaluate the effectiveness of existing programs
in growing local and regional food systems, including--
(A) the impact of local food systems on job
creation and economic development;
(B) the level of participation in the
Farmers' Market and Local Food Promotion
Program established under section 6 of the
Farmer-to-Consumer Direct Marketing Act of 1976
(7 U.S.C. 3005), including the percentage of
projects funded in comparison to applicants and
the types of eligible entities receiving funds;
(C) the ability of participants to leverage
private capital and a synopsis of the places
from which non-Federal funds are derived; and
(D) any additional resources required to
aid in the development or expansion of local
and regional food systems;
(4) evaluate the impact that Federal regulation of
small commercial producers of agricultural food
products intended for local and regional consumption
may have on--
(A) local job creation and economic
development;
(B) access to local and regional fruit and
vegetable markets, including for new and
beginning small commercial producers; and
(C) participation in--
(i) supplier networks;
(ii) high volume distribution
systems; and
(iii) retail sales outlets;
(5) expand the Agricultural Resource Management
Survey of the Department to include questions on
locally or regionally produced agricultural food
products; and
(6) seek to establish or expand private-public
partnerships to facilitate, to the maximum extent
practicable, the collection of data on locally or
regionally produced agricultural food products,
including the development of a nationally coordinated
and regionally balanced evaluation of the redevelopment
of locally or regionally produced food systems.
(c) Report.--Not later than 1 year after the date of
enactment of this Act 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 a report describing the progress
that has been made in implementing this section and identifying
any additional needs and barriers related to developing local
and regional food systems.
SEC. 10017. CLARIFICATION OF USE OF FUNDS FOR TECHNICAL ASSISTANCE.
In the case of each program established or amended by this
title that is authorized or required to be carried out using
funds of the Commodity Credit Corporation, the use of those
funds to provide technical assistance shall not be considered
an allotment or fund transfer from the Commodity Credit
Corporation for purposes of the limit on expenditures for
technical assistance imposed by section 11 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714i).
TITLE XI--CROP INSURANCE
SEC. 11001. INFORMATION SHARING.
Section 502(c) of the Federal Crop Insurance Act (7 U.S.C.
1502(c)) is amended by adding at the end the following:
``(4) Information.--
``(A) Request.--Subject to subparagraph
(B), the Farm Service Agency shall, in a timely
manner, provide to an agent or an approved
insurance provider authorized by the producer
any information (including Farm Service Agency
Form 578s (or any successor form)) or maps (or
any corrections to those forms or maps) that
may assist the agent or approved insurance
provider in insuring the producer under a
policy or plan of insurance under this
subtitle.
``(B) Privacy.--Except as provided in
subparagraph (C), an agent or approved
insurance provider that receives the
information of a producer pursuant to
subparagraph (A) shall treat the information in
accordance with paragraph (1).
``(C) Sharing.--Nothing in this section
prohibits the sharing of the information of a
producer pursuant to subparagraph (A) between
the agent and the approved insurance provider
of the producer.''.
SEC. 11002. PUBLICATION OF INFORMATION ON VIOLATIONS OF PROHIBITION ON
PREMIUM ADJUSTMENTS.
Section 508(a)(9) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)(9)) is amended by adding at the end the
following:
``(C) Publication of violations.--
``(i) Publication required.--
Subject to clause (ii), the Corporation
shall publish in a timely manner on the
website of the Risk Management Agency
information regarding each violation of
this paragraph, including any sanctions
imposed in response to the violation,
in sufficient detail so that the
information may serve as effective
guidance to approved insurance
providers, agents, and producers.
``(ii) Protection of privacy.--In
providing information under clause (i)
regarding violations of this paragraph,
the Corporation shall redact the
identity of the persons and entities
committing the violations in order to
protect the privacy of those persons
and entities.''.
SEC. 11003. SUPPLEMENTAL COVERAGE OPTION.
(a) Availability of Supplemental Coverage Option.--Section
508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is
amended by striking paragraph (3) and inserting the following:
``(3) Yield and loss basis options.--A producer
shall have the option of purchasing additional coverage
based on--
``(A)(i) an individual yield and loss
basis; or
``(ii) an area yield and loss basis; or
``(B) an individual yield and loss basis,
supplemented with coverage based on an area
yield and loss basis to cover a part of the
deductible under the individual yield and loss
policy, as described in paragraph (4)(C).''.
(b) Level of Coverage.--Section 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by striking
paragraph (4) and inserting the following:
``(4) Level of coverage.--
``(A) Dollar denomination and percentage of
yield.--Except as provided in subparagraph (C),
the level of coverage--
``(i) shall be dollar denominated;
and
``(ii) may be purchased at any
level not to exceed 85 percent of the
individual yield or 95 percent of the
area yield (as determined by the
Corporation).
``(B) Information.--The Corporation shall
provide producers with information on
catastrophic risk and additional coverage in
terms of dollar coverage (within the allowable
limits of coverage provided in this paragraph).
``(C) Supplemental coverage option.--
``(i) In general.--Notwithstanding
subparagraph (A), in the case of the
supplemental coverage option described
in paragraph (3)(B), the Corporation
shall offer producers the opportunity
to purchase coverage in combination
with a policy or plan of insurance
offered under this subtitle that would
allow indemnities to be paid to a
producer equal to a part of the
deductible under the policy or plan of
insurance--
``(I) at a county-wide
level to the fullest extent
practicable; or
``(II) in counties that
lack sufficient data, on the
basis of such larger
geographical area as the
Corporation determines to
provide sufficient data for
purposes of providing the
coverage.
``(ii) Trigger.--Coverage offered
under paragraph (3)(B) and clause (i)
shall be triggered only if the losses
in the area exceed 14 percent of normal
levels (as determined by the
Corporation).
``(iii) Coverage.--Subject to the
trigger described in clause (ii),
coverage offered under paragraph (3)(B)
and clause (i) shall not exceed the
difference between--
``(I) 86 percent; and
``(II) the coverage level
selected by the producer for
the underlying policy or plan
of insurance.
``(iv) Ineligible crops and
acres.--Crops for which the producer
has elected under section 1116 of the
Agricultural Act of 2014 to receive
agriculture risk coverage and acres
that are enrolled in the stacked income
protection plan under section 508B
shall not be eligible for supplemental
coverage under this subparagraph.
``(v) Calculation of premium.--
Notwithstanding subsection (d), the
premium for coverage offered under
paragraph (3)(B) and clause (i) shall--
``(I) be sufficient to
cover anticipated losses and a
reasonable reserve; and
``(II) include an amount
for operating and
administrative expenses
established in accordance with
subsection (k)(4)(F).''.
(c) Payment of Portion of Premium by Corporation.--Section
508(e)(2) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)(2)) is amended by adding at the end the following:
``(H) In the case of the supplemental
coverage option authorized in subsection
(c)(4)(C), the amount shall be equal to the sum
of--
``(i) 65 percent of the additional
premium associated with the coverage;
and
``(ii) the amount determined under
subsection (c)(4)(C)(v)(II), subject to
subsection (k)(4)(F), for the coverage
to cover operating and administrative
expenses.''.
(d) Application Date.--The Federal Crop Insurance
Corporation shall begin to provide additional coverage based on
an individual yield and loss basis, supplemented with coverage
based on an area yield and loss basis, as described in the
amendments made by this section, not later than for the 2015
crop year.
SEC. 11004. CROP MARGIN COVERAGE OPTION.
Section 508(c)(3) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)(3)) (as amended by section 11003) is amended--
(1) in subparagraph (A)(ii), by striking ``or'' at
the end;
(2) in subparagraph (B), by striking the period at
the end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) a margin basis alone or in
combination with the coverages available under
subparagraph (A) or (B).''.
SEC. 11005. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION.
Section 508(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(d)(2)) is amended by striking subparagraph (A) and
inserting the following:
``(A) In the case of catastrophic risk
protection, the amount of the premium
established by the Corporation for each crop
for which catastrophic risk protection is
available shall be reduced by the percentage
equal to the difference between the average
loss ratio for the crop and 100 percent, plus a
reasonable reserve, as determined by the
Corporation.''.
SEC. 11006. PERMANENT ENTERPRISE UNIT SUBSIDY.
Section 508(e)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(e)(5)) is amended by striking subparagraph (A) and
inserting the following:
``(A) In general.--The Corporation may pay
a portion of the premiums for plans or policies
of insurance for which the insurable unit is
defined on a whole farm or enterprise unit
basis that is higher than would otherwise be
paid in accordance with paragraph (2).''.
SEC. 11007. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED CROPS.
Section 508(e)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(e)(5)) is amended by adding at the end the
following:
``(D) Nonirrigated crops.--Beginning with
the 2015 crop year, the Corporation shall make
available separate enterprise units for
irrigated and nonirrigated acreage of crops in
counties.''.
SEC. 11008. DATA COLLECTION.
Section 508(g)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)(2)) is amended by adding at the end the
following:
``(E) Sources of yield data.--To determine
yields under this paragraph, the Corporation--
``(i) shall use county data
collected by the Risk Management
Agency, the National Agricultural
Statistics Service, or both; or
``(ii) if sufficient county data is
not available, may use other data
considered appropriate by the
Secretary.''.
SEC. 11009. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH
INSURABLE YIELDS.
Section 508(g) of the Federal Crop Insurance Act (7 U.S.C.
1508(g)) (as amended by section 11008) is amended--
(1) in paragraph (2)(A), by inserting ``and
paragraph (4)(C)'' after ``(B)''; and
(2) in paragraph (4)--
(A) by redesignating subparagraph (C) as
subparagraph (D);
(B) in subparagraph (D) (as so
redesignated), by inserting ``or (C)'' after
``(B)''; and
(C) by inserting after subparagraph (B) the
following:
``(C) Election to exclude certain
history.--
``(i) In general.--Notwithstanding
paragraph (2), with respect to 1 or
more of the crop years used to
establish the actual production history
of an agricultural commodity of the
producer, the producer may elect to
exclude any recorded or appraised yield
for any crop year in which the per
planted acre yield of the agricultural
commodity in the county of the producer
was at least 50 percent below the
simple average of the per planted acre
yield of the agricultural commodity in
the county during the previous 10
consecutive crop years.
``(ii) Contiguous counties.--In any
crop year that a producer in a county
is eligible to make an election to
exclude a yield under clause (i), a
producer in a contiguous county is
eligible to make such an election.
``(iii) Irrigation practice.--For
purposes of determining whether the per
planted acre yield of the agricultural
commodity in the county of the producer
was at least 50 percent below the
simple average of the per planted acre
yield of the agricultural commodity in
the county during the previous 10
consecutive crop years, the Corporation
shall make a separate determination for
irrigated and nonirrigated acreage.''.
SEC. 11010. SUBMISSION OF POLICIES AND BOARD REVIEW AND APPROVAL.
(a) In General.--Section 508(h) of the Federal Crop
Insurance Act (7 U.S.C. 1508(h)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively, and
indenting appropriately;
(B) by striking ``(1) In general.--In
addition'' and inserting the following:
``(1) Authority to submit.--
``(A) In general.--In addition''; and
(C) by adding at the end the following:
``(B) Review and submission by
corporation.--The Corporation shall review any
policy developed under section 522(c) or any
pilot program developed under section 523 and
submit the policy or program to the Board under
this subsection if the Corporation, at the sole
discretion of the Corporation, finds that the
policy or program--
``(i) will likely result in a
viable and marketable policy consistent
with this subsection;
``(ii) would provide crop insurance
coverage in a significantly improved
form; and
``(iii) adequately protects the
interests of producers.''; and
(2) by striking paragraph (3) and inserting the
following:
``(3) Review and approval by the board.--
``(A) In general.--A policy, plan of
insurance, or other material submitted to the
Board under this subsection shall be reviewed
by the Board and shall be approved by the Board
for reinsurance and for sale by approved
insurance providers to producers at actuarially
appropriate rates and under appropriate terms
and conditions if the Board determines that--
``(i) the interests of producers
are adequately protected;
``(ii) the proposed policy or plan
of insurance will--
``(I) provide a new kind of
coverage that is likely to be
viable and marketable;
``(II) provide crop
insurance coverage in a manner
that addresses a clear and
identifiable flaw or problem in
an existing policy; or
``(III) provide a new kind
of coverage for a commodity
that previously had no
available crop insurance, or
has demonstrated a low level of
participation or coverage level
under existing coverage; and
``(iii) the proposed policy or plan
of insurance will not have a
significant adverse impact on the crop
insurance delivery system.
``(B) Consideration.--In approving policies
or plans of insurance, the Board shall in a
timely manner--
``(i) first, consider policies or
plans of insurance that address
underserved commodities, including
commodities for which there is no
insurance;
``(ii) second, consider existing
policies or plans of insurance for
which there is inadequate coverage or
there exists low levels of
participation; and
``(iii) last, consider all policies
or plans of insurance submitted to the
Board that do not meet the criteria
described in clause (i) or (ii).
``(C) Specified review and approval
priorities.--In reviewing policies and other
materials submitted to the Board under this
subsection for approval, the Board--
``(i) shall make the development
and approval of a revenue policy for
peanut producers a priority so that a
revenue policy is available to peanut
producers in time for the 2015 crop
year;
``(ii) shall make the development
and approval of a margin coverage
policy for rice producers a priority so
that a margin coverage policy is
available to rice producers in time for
the 2015 crop year; and
``(iii) may approve a submission
that is made pursuant to this
subsection that would, beginning with
the 2015 crop year, allow producers
that purchase policies in accordance
with subsection (e)(5)(A) to separate
enterprise units by risk rating for
acreage of crops in counties.''.
(b) Approval of Costs for Research and Development.--
Section 522(b)(2) of the Federal Crop Insurance Act (7 U.S.C.
1522(b)(2)) is amended by striking subparagraph (E) and
inserting the following:
``(E) Approval.--
``(i) In general.--The Board may
approve up to 50 percent of the
projected total research and
development costs to be paid in advance
to an applicant, in accordance with the
procedures developed by the Board for
the making of the payments, if, after
consideration of the reviewer reports
described in subparagraph (D) and such
other information as the Board
determines appropriate, the Board
determines that--
``(I) the concept, in good
faith, will likely result in a
viable and marketable policy
consistent with section 508(h);
``(II) at the sole
discretion of the Board, the
concept, if developed into a
policy and approved by the
Board, would provide crop
insurance coverage--
``(aa) in a
significantly improved
form;
``(bb) to a crop or
region not
traditionally served by
the Federal crop
insurance program; or
``(cc) in a form
that addresses a
recognized flaw or
problem in the program;
``(III) the applicant
agrees to provide such reports
as the Corporation determines
are necessary to monitor the
development effort;
``(IV) the proposed budget
and timetable are reasonable,
as determined by the Board; and
``(V) the concept proposal
meets any other requirements
that the Board determines
appropriate.
``(ii) Waiver.--The Board may waive
the 50-percent limitation and, upon
request of the submitter after the
submitter has begun research and
development activities, the Board may
approve an additional 25 percent
advance payment to the submitter for
research and development costs, if, at
the sole discretion of the Board, the
Board determines that--
``(I) the intended policy
or plan of insurance developed
by the submitter will provide
coverage for a region or crop
that is underserved by the
Federal crop insurance program,
including specialty crops; and
``(II) the submitter is
making satisfactory progress
towards developing a viable and
marketable policy or plan of
insurance consistent with
section 508(h).''.
SEC. 11011. CONSULTATION.
Section 508(h)(4) of the Federal Crop Insurance Act (7
U.S.C. 1508(h)(4)) is amended by adding at the end the
following:
``(E) Consultation.--
``(i) Requirement.--As part of the
feasibility and research associated
with the development of a policy or
other material for fruits and
vegetables, tree nuts, dried fruits,
and horticulture and nursery crops
(including floriculture), the submitter
prior to making a submission under this
subsection shall consult with groups
representing producers of those
agricultural commodities in all major
producing areas for the commodities to
be served or potentially impacted,
either directly or indirectly.
``(ii) Submission to the board.--
Any submission made to the Board under
this subsection shall contain a summary
and analysis of the feasibility and
research findings from the impacted
groups described in clause (i),
including a summary assessment of the
support for or against development of
the policy and an assessment on the
impact of the proposed policy to the
general marketing and production of the
crop from both a regional and national
perspective.
``(iii) Evaluation by the board.--
In evaluating whether the interests of
producers are adequately protected
pursuant to paragraph (3) with respect
to a submission made under this
subsection, the Board shall review the
information provided pursuant to clause
(ii) to determine if the submission
will create adverse market distortions
with respect to the production of
commodities that are the subject of the
submission.''.
SEC. 11012. BUDGET LIMITATIONS ON RENEGOTIATION OF THE STANDARD
REINSURANCE AGREEMENT.
Section 508(k)(8) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(8)) is amended by adding at the end the
following:
``(F) Budget.--
``(i) In general.--The Board shall
ensure that any Standard Reinsurance
Agreement negotiated under subparagraph
(A)(ii) shall--
``(I) to the maximum extent
practicable, be estimated as
budget neutral with respect to
the total amount of payments
described in paragraph (9) as
compared to the total amount of
such payments estimated to be
made under the immediately
preceding Standard Reinsurance
Agreement if that Agreement
were extended over the same
period of time;
``(II) comply with the
applicable provisions of this
Act establishing the rates of
reimbursement for
administrative and operating
costs for approved insurance
providers and agents, except
that, to the maximum extent
practicable, the estimated
total amount of reimbursement
for those costs shall not be
less than the total amount of
the payments to be made under
the immediately preceding
Standard Reinsurance Agreement
if that Agreement were extended
over the same period of time,
as estimated on the date of
enactment of the Agricultural
Act of 2014; and
``(III) in no event
significantly depart from
budget neutrality unless
otherwise required by this Act.
``(ii) Use of savings.--To the
extent that any budget savings are
realized in the renegotiation of a
Standard Reinsurance Agreement under
subparagraph (A)(ii), and the savings
are determined not to be a significant
departure from budget neutrality under
clause (i), the savings shall be used
to increase reimbursements or payments
described under paragraphs (4) and
(9).''.
SEC. 11013. TEST WEIGHT FOR CORN.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C.
1508(m)) is amended by adding at the end the following:
``(6) Test weight for corn.--
``(A) In general.--The Corporation shall
establish procedures to allow insured producers
not more than 120 days to settle claims, in
accordance with procedures established by the
Secretary, involving corn that is determined to
have low test weight.
``(B) Implementation.--As soon as
practicable after the date of enactment of this
paragraph, the Corporation shall implement
subparagraph (A) on a regional basis based on
market conditions and the interests of
producers.
``(C) Termination of effectiveness.--The
authority provided by this paragraph terminates
effective on the date that is 5 years after the
date on which subparagraph (A) is
implemented.''.
SEC. 11014. CROP PRODUCTION ON NATIVE SOD.
(a) Federal Crop Insurance.--Section 508(o) of the Federal
Crop Insurance Act (7 U.S.C. 1508(o)) is amended--
(1) in paragraph (1)(B), by inserting ``, or the
producer cannot substantiate that the ground has ever
been tilled,'' after ``tilled'';
(2) in paragraph (2)--
(A) in the paragraph heading, by striking
``Ineligibility for'' and inserting ``Reduction
in'';
(B) by striking subparagraph (A) and
inserting the following:
``(A) In general.--During the first 4 crop
years of planting, as determined by the
Secretary, native sod acreage that has been
tilled for the production of an annual crop
after the date of enactment of the Agricultural
Act of 2014 shall be subject to a reduction in
benefits under this subtitle as described in
this paragraph.''; and
(C) by adding at the end the following:
``(C) Administration.--
``(i) Reduction.--For purposes of
the reduction in benefits for the
acreage described in subparagraph (A)--
``(I) the crop insurance
guarantee shall be determined
by using a yield equal to 65
percent of the transitional
yield of the producer; and
``(II) the crop insurance
premium subsidy provided for
the producer under this
subtitle, except for coverage
authorized pursuant to
subsection (b)(1), shall be 50
percentage points less than the
premium subsidy that would
otherwise apply.
``(ii) Yield substitution.--During
the period native sod acreage is
covered by this subsection, a producer
may not substitute yields for the
native sod.'';
(3) by striking paragraph (3) and inserting the
following:
``(3) Application.--This subsection shall only
apply to native sod acreage in the States of Minnesota,
Iowa, North Dakota, South Dakota, Montana, and
Nebraska.''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a)(4)
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333(a)(4)) is amended--
(1) in the paragraph heading, by striking
``ineligibility'' and inserting ``reduction in
benefits'';
(2) in subparagraph (A)(ii), by inserting ``, or
the producer cannot substantiate that the ground has
ever been tilled,'' after ``tilled'';
(3) in subparagraph (B)--
(A) in the subparagraph heading, by
striking ``Ineligibility for'' and inserting
``Reduction in'';
(B) by striking clause (i) and inserting
the following:
``(i) In general.--During the first
4 crop years of planting, as determined
by the Secretary, native sod acreage
that has been tilled for the production
of an annual crop after the date of
enactment of the Agricultural Act of
2014 shall be subject to a reduction in
benefits under this section as
described in this subparagraph.''; and
(C) by adding at the end the following:
``(iii) Reduction.--For purposes of
the reduction in benefits for the
acreage described in clause (i)--
``(I) the approved yield
shall be determined by using a
yield equal to 65 percent of
the transitional yield of the
producer; and
``(II) the service fees or
premiums for crops planted on
native sod shall be equal to
200 percent of the amount
determined in subsections
(l)(2) or (k), as applicable,
but in no case shall exceed the
amount determined in subsection
(l)(2)(B)(ii).''; and
(4) by striking subparagraph (C) and inserting the
following:
``(C) Application.--This paragraph shall
only apply to native sod acreage in the States
of Minnesota, Iowa, North Dakota, South Dakota,
Montana, and Nebraska.''.
(c) Cropland Report.--
(1) Baseline.--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 that
describes the cropland acreage in each applicable
county and State, and the change in cropland acreage
from the preceding year in each applicable county and
State, beginning with calendar year 2000 and including
that information for the most recent year for which
that information is available.
(2) Annual updates.--Not later than January 1,
2015, and each January 1 thereafter through January 1,
2018, 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 describes--
(A) the cropland acreage in each applicable
county and State as of the date of submission
of the report; and
(B) the change in cropland acreage from the
preceding year in each applicable county and
State.
SEC. 11015. COVERAGE LEVELS BY PRACTICE.
Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended by adding at the end the following:
``(p) Coverage Levels by Practice.--Beginning with the 2015
crop year, a producer that produces an agricultural commodity
on both dry land and irrigated land may elect a different
coverage level for each production practice.''.
SEC. 11016. BEGINNING FARMER AND RANCHER PROVISIONS.
(a) Definition.--Section 502(b) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)) is amended--
(1) by redesignating paragraphs (3) through (9) as
paragraphs (4) through (10), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Beginning farmer or rancher.--The term
`beginning farmer or rancher' means a farmer or rancher
who has not actively operated and managed a farm or
ranch with a bona fide insurable interest in a crop or
livestock as an owner-operator, landlord, tenant, or
sharecropper for more than 5 crop years, as determined
by the Secretary.''.
(b) Premium Adjustments.--Section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) is amended--
(1) in subsection (b)(5)(E), by inserting ``and
beginning farmers or ranchers'' after ``limited
resource farmers'';
(2) in subsection (e), by adding at the end the
following:
``(8) Premium for beginning farmers or ranchers.--
Notwithstanding any other provision of this subsection
regarding payment of a portion of premiums, a beginning
farmer or rancher shall receive premium assistance that
is 10 percentage points greater than premium assistance
that would otherwise be available under paragraphs (2)
(except for subparagraph (A) of that paragraph), (5),
(6), and (7) for the applicable policy, plan of
insurance, and coverage level selected by the beginning
farmer or rancher.''; and
(3) in subsection (g)--
(A) in paragraph (2)(B)--
(i) in clause (i), by striking
``or'' at the end;
(ii) in clause (ii)(III), by
striking the period at the end and
inserting ``; or''; and
(iii) by adding at the end the
following:
``(iii) if the producer is a
beginning farmer or rancher who was
previously involved in a farming or
ranching operation, including
involvement in the decisionmaking or
physical involvement in the production
of the crop or livestock on the farm,
for any acreage obtained by the
beginning farmer or rancher, a yield
that is the higher of--
``(I) the actual production
history of the previous
producer of the crop or
livestock on the acreage
determined under subparagraph
(A); or
``(II) a yield of the
producer, as determined in
clause (i).''; and
(B) in paragraph (4)(B)(ii)--
(i) by inserting ``(I)'' after
``(ii)'';
(ii) by striking the period at the
end and inserting ``; or''; and
(iii) by adding at the end the
following:
``(II) in the case of beginning
farmers or ranchers, replace each
excluded yield with a yield equal to 80
percent of the applicable transitional
yield.''.
SEC. 11017. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
COTTON.
(a) Availability of Stacked Income Protection Plan for
Producers of Upland Cotton.--The Federal Crop Insurance Act is
amended by inserting after section 508A (7 U.S.C. 1508a) the
following:
``SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS OF UPLAND
COTTON.
``(a) Availability.--Beginning not later than the 2015 crop
of upland cotton, the Corporation shall make available to
producers of upland cotton an additional policy (to be known as
the `Stacked Income Protection Plan'), which shall provide
coverage consistent with the Group Risk Income Protection Plan
(and the associated Harvest Revenue Option Endorsement) offered
by the Corporation for the 2011 crop year.
``(b) Required Terms.--The Corporation may modify the
Stacked Income Protection Plan on a program-wide basis, except
that the Stacked Income Protection Plan shall comply with the
following requirements:
``(1) Provide coverage for revenue loss of not less
than 10 percent and not more than 30 percent of
expected county revenue, specified in increments of 5
percent. The deductible shall be the minimum percent of
revenue loss at which indemnities are triggered under
the plan, not to be less than 10 percent of the
expected county revenue.
``(2) Be offered to producers of upland cotton in
all counties with upland cotton production--
``(A) at a county-wide level to the fullest
extent practicable; or
``(B) in counties that lack sufficient
data, on the basis of such larger geographical
area as the Corporation determines to provide
sufficient data for purposes of providing the
coverage.
``(3) Be purchased in addition to any other
individual or area coverage in effect on the producer's
acreage or as a stand-alone policy, except that if a
producer has an individual or area coverage for the
same acreage, the maximum coverage available under the
Stacked Income Protection Plan shall not exceed the
deductible for the individual or area coverage.
``(4) Establish coverage based on--
``(A) the expected price established under
existing Group Risk Income Protection or area
wide policy offered by the Corporation for the
applicable county (or area) and crop year; and
``(B) an expected county yield that is the
higher of--
``(i) the expected county yield
established for the existing area-wide
plans offered by the Corporation for
the applicable county (or area) and
crop year (or, in geographic areas
where area-wide plans are not offered,
an expected yield determined in a
manner consistent with those of area-
wide plans); or
``(ii) the average of the
applicable yield data for the county
(or area) for the most recent 5 years,
excluding the highest and lowest
observations, from the Risk Management
Agency or the National Agricultural
Statistics Service (or both) or, if
sufficient county data is not
available, such other data considered
appropriate by the Secretary.
``(5) Use a multiplier factor to establish maximum
protection per acre (referred to as a `protection
factor') of not less than the higher of the level
established on a program wide basis or 120 percent.
``(6) Pay an indemnity based on the amount that the
expected county revenue exceeds the actual county
revenue, as applied to the individual coverage of the
producer. Indemnities under the Stacked Income
Protection Plan shall not include or overlap the amount
of the deductible selected under paragraph (1).
``(7) In all counties for which data are available,
establish separate coverage levels for irrigated and
nonirrigated practices.
``(c) Premium.--Notwithstanding section 508(d), the premium
for the Stacked Income Protection Plan shall--
``(1) be sufficient to cover anticipated losses and
a reasonable reserve; and
``(2) include an amount for operating and
administrative expenses established in accordance with
section 508(k)(4)(F).
``(d) Payment of Portion of Premium by Corporation.--
Subject to section 508(e)(4), the amount of premium paid by the
Corporation for all qualifying coverage levels of the Stacked
Income Protection Plan shall be--
``(1) 80 percent of the amount of the premium
established under subsection (c) for the coverage level
selected; and
``(2) the amount determined under subsection
(c)(2), subject to section 508(k)(4)(F), for the
coverage to cover administrative and operating
expenses.
``(e) Relation to Other Coverages.--The Stacked Income
Protection Plan is in addition to all other coverages available
to producers of upland cotton.''.
(b) Conforming Amendment.--Section 508(k)(4)(F) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended
by inserting ``or authorized under subsection (c)(4)(C) or
section 508B'' after ``of this subparagraph''.
SEC. 11018. PEANUT REVENUE CROP INSURANCE.
The Federal Crop Insurance Act is amended by inserting
after section 508B (as added by section 11017), the following:
``SEC. 508C. PEANUT REVENUE CROP INSURANCE.
``(a) In General.--Effective beginning with the 2015 crop
year, the Risk Management Agency and the Corporation shall make
available to producers of peanuts a revenue crop insurance
program for peanuts.
``(b) Effective Price.--Subject to subsection (c), for
purposes of the revenue crop insurance program and the
multiperil crop insurance program under this Act, the effective
price for peanuts shall be equal to the Rotterdam price index
for peanuts or other appropriate price as determined by the
Secretary, as adjusted to reflect the farmer stock price of
peanuts in the United States.
``(c) Adjustments.--
``(1) In general.--The effective price for peanuts
established under subsection (b) may be adjusted by the
Risk Management Agency and the Corporation to correct
distortions.
``(2) Administration.--If an adjustment is made
under paragraph (1), the Risk Management Agency and the
Corporation shall--
``(A) make the adjustment in an open and
transparent manner; and
``(B) 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 reasons for the adjustment.''.
SEC. 11019. AUTHORITY TO CORRECT ERRORS.
Section 515(c) of the Federal Crop Insurance Act (7 U.S.C.
1515(c)) is amended--
(1) in the first sentence, by striking ``The
Secretary'' and inserting the following:
``(1) In general.--The Secretary'';
(2) in the second sentence, by striking ``Beginning
with'' and inserting the following:
``(2) Frequency.--Beginning with''; and
(3) by adding at the end the following:
``(3) Corrections.--
``(A) In general.--In addition to the
corrections permitted by the Corporation as of
the day before the date of enactment of the
Agricultural Act of 2014, the Corporation shall
establish procedures that allow an agent or an
approved insurance provider, subject to
subparagraph (B)--
``(i) within a reasonable amount of
time following the applicable sales
closing date, to correct errors in
information that is provided by a
producer for the purpose of obtaining
coverage under any policy or plan of
insurance made available under this
subtitle to ensure that the eligibility
information is correct and consistent
with information reported by the
producer for other programs
administered by the Secretary;
``(ii) within a reasonable amount
of time following--
``(I) the acreage reporting
date, to reconcile errors in
the information reported by the
producer with correct
information determined from any
other program administered by
the Secretary; or
``(II) the date of any
subsequent correction of data
by the Farm Service Agency made
as a result of the verification
of information, to make
conforming corrections; and
``(iii) at any time, to correct
electronic transmission errors that
were made by an agent or approved
insurance provider, or such errors made
by the Farm Service Agency or any other
agency of the Department of Agriculture
in transmitting the information
provided by the producer for purposes
of other programs of the Department to
the extent an agent or approved
insurance provider relied upon the
erroneous information for crop
insurance purposes.
``(B) Limitation.--In accordance with the
procedures of the Corporation, correction to
the information described in clauses (i) and
(ii) of subparagraph (A) may only be made if
the corrections do not allow the producer--
``(i) to avoid ineligibility
requirements for insurance or obtain a
disproportionate benefit under the crop
insurance program or any related
program administered by the Secretary;
``(ii) to obtain, enhance, or
increase an insurance guarantee or
indemnity if a cause of loss exists or
has occurred before any correction has
been made, or avoid premium owed if no
loss is likely to occur; or
``(iii) to avoid an obligation or
requirement under any Federal or State
law.
``(C) Exception to late filing sanctions.--
Any corrections made within a reasonable amount
of time, in accordance with established
procedures, pursuant to this paragraph shall
not be subject to any late filing sanctions
authorized in the reinsurance agreement with
the Corporation.
``(D) Late payment of debt.--In the case of
a producer that has inadvertently failed to pay
a debt due as specified by regulations of the
Corporation and has been determined to be
ineligible for crop insurance pursuant to the
terms of the policy as a result of that
failure, the Corporation may determine to allow
the producer to pay the debt and purchase the
crop insurance after the sales closing date, in
accordance with procedures and limitations
established by the Corporation.''.
SEC. 11020. IMPLEMENTATION.
Section 515 of the Federal Crop Insurance Act (7 U.S.C.
1515) is amended--
(1) in subsection (j), by striking paragraph (1)
and inserting the following:
``(1) Systems maintenance and upgrades.--
``(A) In general.--The Secretary shall
maintain and upgrade the information management
systems of the Corporation used in the
administration and enforcement of this
subtitle.
``(B) Requirement.--
``(i) In general.--In maintaining
and upgrading the systems, the
Secretary shall ensure that new
hardware and software are compatible
with the hardware and software used by
other agencies of the Department to
maximize data sharing and promote the
purposes of this section.
``(ii) Acreage report streamlining
initiative project.--As soon as
practicable, the Secretary shall
develop and implement an acreage report
streamlining initiative project to
allow producers to report acreage and
other information directly to the
Department.''; and
(2) in subsection (k), by striking paragraph (1)
and inserting the following:
``(1) Information technology.--
``(A) In general.--For purposes of
subsection (j)(1), the Corporation may use,
from amounts made available from the insurance
fund established under section 516(c), not more
than--
``(i)(I) for fiscal year 2014,
$14,000,000; and
``(II) for each of fiscal years
2015 through 2018, $9,000,000; or
``(ii) if the Acreage Crop
Reporting Streamlining Initiative
(ACRSI) project is substantially
completed by September 30, 2015, not
more than $14,000,000 for each of the
fiscal years 2015 through 2018.
``(B) 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 of the substantial completion of the
Acreage Crop Reporting Streamlining Initiative
(ACRSI) project not later than July 1, 2015.''.
SEC. 11021. CROP INSURANCE FRAUD.
Section 516(b)(2) of the Federal Crop Insurance Act (7
U.S.C. 1516(b)(2)) is amended by adding at the end the
following:
``(C) Reviews, compliance, and integrity.--
``(i) In general.--For each of the
2014 and subsequent reinsurance years,
the Corporation may use the insurance
fund established under subsection (c),
but not to exceed $9,000,000 for each
fiscal year, to pay costs--
``(I) to reimburse expenses
incurred for the operations and
review of policies, plans of
insurance, and related
materials (including actuarial
and related information); and
``(II) to assist the
Corporation in maintaining
program actuarial soundness and
financial integrity.
``(ii) Secretarial action.--For the
purposes described in clause (i), the
Secretary may, without further
appropriation--
``(I) merge some or all of
the funds made available under
this subparagraph into the
accounts of the Risk Management
Agency; and
``(II) obligate those
funds.
``(iii) Maintenance of funding.--
Funds made available under this
subparagraph shall be in addition to
other funds made available for costs
incurred by the Corporation or the Risk
Management Agency.''.
SEC. 11022. RESEARCH AND DEVELOPMENT PRIORITIES.
(a) Authority to Conduct Research and Development,
Priorities.--Section 522(c) of the Federal Crop Insurance Act
(7 U.S.C. 1522(c)) is amended--
(1) in the subsection heading, by striking
``Contracting'';
(2) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``may enter into
contracts to carry out research and development to''
and inserting ``may conduct activities or enter into
contracts to carry out research and development to
maintain or improve existing policies or develop new
policies to'';
(3) in paragraph (2)--
(A) in subparagraph (A), by inserting
``conduct research and development or'' after
``The Corporation may''; and
(B) in subparagraph (B), by inserting
``conducting research and development or''
after ``Before'';
(4) in paragraph (5), by inserting ``after expert
review in accordance with section 505(e)'' after
``approved by the Board'';
(5) in paragraph (6), by striking ``a pasture,
range, and forage program'' and inserting ``policies
that increase participation by producers of underserved
agricultural commodities, including sweet sorghum,
biomass sorghum, rice, peanuts, sugarcane, alfalfa,
pennycress, dedicated energy crops, and specialty
crops'';
(6) by redesignating paragraph (17) as paragraph
(25); and
(7) by inserting after paragraph (16), the
following:
``(17) Margin coverage for catfish.--
``(A) In general.--The Corporation shall
offer to enter into a contract with a qualified
entity to conduct research and development
regarding a policy to insure producers against
reduction in the margin between the market
value of catfish and selected costs incurred in
the production of catfish.
``(B) Eligibility.--Eligibility for the
policy described in subparagraph (A) shall be
limited to freshwater species of catfish that
are propagated and reared in controlled or
selected environments.
``(C) Implementation.--The Board shall
review the policy described in subparagraph (B)
under section 508(h) and approve the policy if
the Board finds that the policy--
``(i) will likely result in a
viable and marketable policy consistent
with this subsection;
``(ii) would provide crop insurance
coverage in a significantly improved
form;
``(iii) adequately protects the
interests of producers; and
``(iv) meets other requirements of
this subtitle determined appropriate by
the Board.
``(18) Biomass and sweet sorghum energy crop
insurance policies.--
``(A) In general.--The Corporation shall
offer to enter into 1 or more contracts with
qualified entities to carry out research and
development regarding--
``(i) a policy to insure biomass
sorghum that is grown expressly for the
purpose of producing a feedstock for
renewable biofuel, renewable
electricity, or biobased products; and
``(ii) a policy to insure sweet
sorghum that is grown for a purpose
described in clause (i).
``(B) Research and development.--Research
and development with respect to each of the
policies required in subparagraph (A) shall
evaluate the effectiveness of risk management
tools for the production of biomass sorghum or
sweet sorghum, including policies and plans of
insurance that--
``(i) are based on market prices
and yields;
``(ii) to the extent that
insufficient data exist to develop a
policy based on market prices and
yields, evaluate the policies and plans
of insurance based on the use of
weather indices, including excessive or
inadequate rainfall, to protect the
interest of crop producers; and
``(iii) provide protection for
production or revenue losses, or both.
``(19) Study on swine catastrophic disease
program.--
``(A) In general.--The Corporation shall
contract with 1 or more qualified entities to
conduct a study to determine the feasibility of
insuring swine producers for a catastrophic
event.
``(B) Report.--Not later than 1 year after
the date of the enactment of this paragraph,
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 a report that
describes the results of the study conducted
under subparagraph (A).
``(20) Whole farm diversified risk management
insurance plan.--
``(A) In general.--Unless the Corporation
approves a whole farm insurance plan, similar
to the plan described in this paragraph, to be
available to producers for the 2016 reinsurance
year, the Corporation shall conduct activities
or enter into contracts to carry out research
and development to develop a whole farm risk
management insurance plan, with a liability
limitation of $1,500,000, that allows a
diversified crop or livestock producer the
option to qualify for an indemnity if actual
gross farm revenue is below 85 percent of the
average gross farm revenue or the expected
gross farm revenue that can reasonably be
expected of the producer, as determined by the
Corporation.
``(B) Eligible producers.--The Corporation
shall permit producers (including direct-to-
consumer marketers and producers servicing
local and regional and farm identity-preserved
markets) who produce multiple agricultural
commodities, including specialty crops,
industrial crops, livestock, and aquaculture
products, to participate in the plan developed
under subparagraph (A) in lieu of any other
plan under this subtitle.
``(C) Diversification.--The Corporation may
provide diversification-based additional
coverage payment rates, premium discounts, or
other enhanced benefits in recognition of the
risk management benefits of crop and livestock
diversification strategies for producers that--
``(i) grow multiple crops; or
``(ii) may have income from the
production of livestock that uses a
crop grown on the farm.
``(D) Market readiness.--The Corporation
may include coverage for the value of any
packing, packaging, or any other similar on-
farm activity the Corporation determines to be
the minimum required in order to remove the
commodity from the field.
``(21) Study on poultry catastrophic disease
program.--
``(A) In general.--The Corporation shall
contract with a qualified person to conduct a
study to determine the feasibility of insuring
poultry producers for a catastrophic event.
``(B) Report.--Not later than 1 year after
the date of the enactment of this paragraph,
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 a report that
describes the results of the study conducted
under subparagraph (A).
``(22) Poultry business interruption insurance
policy.--
``(A) Definitions.--In this paragraph, the
terms `poultry' and `poultry grower' have the
meanings given those terms in section 2(a) of
the Packers and Stockyards Act, 1921 (7 U.S.C.
182(a)).
``(B) Authority.--The Corporation shall
offer to enter into a contract or cooperative
agreement with an institution of higher
education or other legal entity to carry out
research and development regarding a policy to
insure the commercial production of poultry
against business interruptions caused by
integrator bankruptcy.
``(C) Research and development.--As part of
the research and development conducted pursuant
to a contract or cooperative agreement entered
into under subparagraph (B), the entity shall--
``(i) evaluate the market place for
business interruption insurance that is
available to poultry growers;
``(ii) determine what statutory
authority would be necessary to
implement a business interruption
insurance through the Corporation;
``(iii) assess the feasibility of a
policy or plan of insurance offered
under this subtitle to insure against a
portion of losses due to business
interruption or to the bankruptcy of an
business integrator; and
``(iv) analyze the costs to the
Federal Government of a Federal
business interruption insurance program
for poultry growers or producers.
``(D) Deadline for contract or cooperative
agreement.--Not later than 180 days after the
date of enactment of this paragraph, the
Corporation shall offer to enter into the
contract or cooperative agreement required by
subparagraph (B).
``(E) Deadline for completion of research
and development.--Not later than 1 year after
the date of enactment of this paragraph, 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 a report that describes
the results of the research and development
conducted pursuant to the contract or
cooperative agreement entered into under
subparagraph (B).]
``(23) Study of food safety insurance.--
``(A) In general.--The Corporation shall
offer to enter into a contract with 1 or more
qualified entities to conduct a study to
determine whether offering policies that
provide coverage for specialty crops from food
safety and contamination issues would benefit
agricultural producers.
``(B) Subject.--The study described in
subparagraph (A) shall evaluate policies and
plans of insurance coverage that provide
protection for production or revenue impacted
by food safety concerns including, at a
minimum, government, retail, or national
consumer group announcements of a health
advisory, removal, or recall related to a
contamination concern.
``(C) Report.--Not later than 1 year after
the date of enactment of this paragraph, 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 a report that describes
the results of the study conducted under
subparagraph (A).''.
``(24) Alfalfa crop insurance policy.--
``(A) In general.--The Corporation shall
offer to enter into 1 or more contracts with
qualified entities to carry out research and
development regarding a policy to insure
alfalfa.
``(B) Report.--Not later than 1 year after
the date of enactment of this paragraph, 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 a report that describes
the results of the study conducted under
subparagraph (A).''.
(b) Funding.--Section 522(e) of the Federal Crop Insurance
Act (7 U.S.C. 1522(e)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) in the subparagraph heading, by
striking ``Authority.--'' and inserting
``Conducting and contracting for
research and development.--''; and
(ii) by inserting ``conduct
research and development and'' after
``the Corporation may use to''; and
(B) in subparagraph (B), by inserting
``conduct research and development and'' after
``for the fiscal year to'';
(2) in paragraph (3), in the matter preceding
subparagraph (A), by striking ``to provide either
reimbursement payments or contract payments''; and
(3) by striking paragraph (4).
SEC. 11023. 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
11022) is amended--
(1) by striking paragraph (10); and
(2) by redesignating paragraphs (11) through (25)
as paragraphs (10) through (24), respectively.
SEC. 11024. PROGRAM COMPLIANCE PARTNERSHIPS.
(a) In General.--Section 522(d) of the Federal Crop
Insurance Act (7 U.S.C. 1522(d)) is amended by striking
paragraph (1) and inserting the following:
``(1) Purpose.--The purpose of this subsection is
to authorize the Corporation to enter into partnerships
with public and private entities for the purpose of
either--
``(A) increasing the availability of loss
mitigation, financial, and other risk
management tools for producers, with a priority
given to risk management tools for producers of
agricultural commodities covered by section 196
of the Agricultural Market Transition Act (7
U.S.C. 7333), specialty crops, and underserved
agricultural commodities; or
``(B) improving analysis tools and
technology regarding compliance or identifying
and using innovative compliance strategies.''.
(b) Objectives.--Section 522(d)(3) of the Federal Crop
Insurance Act (7 U.S.C. 1522(d)(3)) is amended--
(1) in subparagraph (F), by striking ``and'' at the
end;
(2) by redesignating subparagraph (G) as
subparagraph (H); and
(3) by inserting after subparagraph (F) the
following:
``(G) to improve analysis tools and
technology regarding compliance or identifying
and using innovative compliance strategies;
and''.
SEC. 11025. PILOT PROGRAMS.
Section 523(a) of the Federal Crop Insurance Act (7 U.S.C.
1523(a)) is amended--
(1) in paragraph (1), by inserting ``, at the sole
discretion of the Corporation,'' after ``may''; and
(2) by striking paragraph (5).
SEC. 11026. INDEX-BASED WEATHER INSURANCE PILOT PROGRAM.
Section 523 of the Federal Crop Insurance Act (7 U.S.C.
1523) is amended by adding at the end the following:
``(i) Underserved Crops and Regions Pilot Programs.--
``(1) Definition of livestock commodity.--In this
subsection, the term `livestock commodity' includes
cattle, sheep, swine, goats, and poultry, including
pasture, rangeland, and forage as a source of feed for
that livestock.
``(2) Authorization.--Notwithstanding subsection
(a)(2), the Corporation may conduct 2 or more pilot
programs to provide producers of underserved specialty
crops and livestock commodities with index-based
weather insurance, subject to the requirements of this
section.
``(3) Review and approval of submissions.--
``(A) In general.--The Board shall approve
2 or more proposed policies or plans of
insurance from approved insurance providers if
the Board determines that the policies or plans
provide coverage as specified in paragraph (2),
and meet the conditions described in this
paragraph
``(B) Requirements.--To be eligible for
approval under this subsection, the approved
insurance provider shall have--
``(i) adequate experience
underwriting and administering policies
or plans of insurance that are
comparable to the proposed policy or
plan of insurance;
``(ii) sufficient assets or
reinsurance to satisfy the underwriting
obligations of the approved insurance
provider, and possess a sufficient
insurance credit rating from an
appropriate credit rating bureau, in
accordance with Board procedures; and
``(iii) applicable authority and
approval from each State in which the
approved insurance provider intends to
sell the insurance product.
``(C) Review requirements.--In reviewing
applications under this subsection, the Board
shall conduct the review in a manner consistent
with the standards, rules, and procedures for
policies or plans of insurance submitted under
section 508(h) and the actuarial soundness
requirements applied to other policies and
plans of insurance made available under this
subtitle.
``(D) Prioritization.--The Board shall
prioritize applications that provide a new kind
of coverage for specialty crops and livestock
commodities that previously had no available
crop insurance, or has demonstrated a low level
of participation under existing coverage.
``(4) Payment of premium support.--
``(A) In general.--The Corporation shall
pay a portion of the premium for producers that
purchase a policy or plan of insurance approved
pursuant to this subsection.
``(B) Amount.--The premium subsidy shall
provide a similar dollar amount of premium
subsidy per acre that the Corporation pays for
comparable policies or plans of insurance
reinsured under this subtitle, except that in
no case shall the premium subsidy exceed 60
percent of total premium, as determined by the
Corporation.
``(C) Calculation.--The premium subsidy, as
determined by the Corporation, shall be
calculated as--
``(i) a percentage of premium;
``(ii) a percentage of expected
loss determined pursuant to a
reasonable actuarial methodology; or
``(iii) a fixed dollar amount per
acre.
``(D) Payment.--Subject to subparagraphs
(B) and (C), the premium subsidy under this
subsection shall be paid by the Corporation in
the same manner and under the same terms and
conditions as premium subsidy for other
policies and plans of insurance.
``(E) Operating and administrative expense
payments.--
``(i) In general.--Subject to
clause (ii), operating and
administrative expense payments may be
made for policies and plans of
insurance approved under this
subsection in an amount that is
commensurate with similar policies and
plans of insurance reinsured under this
subtitle, on the condition that the
operating and administrative expenses
are not included in premiums.
``(ii) Limitation.--Subject to
subparagraph (F)(i), Federal
reinsurance, research and development
costs, other reimbursements, or
maintenance fees shall not be provided
or collected for policies and plans of
insurance approved under this
subsection.
``(F) Approved insurance providers.--Any
policy or plan of insurance approved under this
subsection may be sold only by the approved
insurance provider that submits the application
and by any additional approved insurance
provider that--
``(i) agrees to pay maintenance
fees or other payments to the approved
insurance provider that submitted the
application in an amount agreed to by
the applicant and the additional
approved insurance provider, on the
condition that the fees or payments
shall be reasonable and appropriate to
ensure that the policies or plans of
insurance may be made available by
additional approved insurance
providers; and
``(ii) meets the eligibility
criteria of paragraph (3)(B), as
determined by the Board.
``(G) Relationship to other provisions.--
The requirements of this paragraph shall apply
notwithstanding paragraph (6).
``(5) Oversight.--The Corporation shall develop and
publish procedures to administer policies or plans of
insurance approved under this subsection that--
``(A) require each approved insurance
provider to report sales, acreage and claim
data, and any other data that the Corporation
determines to be appropriate, to allow the
Corporation to evaluate sales and performance
of the product; and
``(B) contain such other requirements as
the Corporation determines necessary to ensure
that the products--
``(i) do not have a significant
adverse impact on the crop insurance
delivery system;
``(ii) are in the best interests of
producers; and
``(iii) do not result in a
reduction of program integrity.
``(6) Confidentiality.--
``(A) In general.--All reports required
under paragraph (5) and all other proprietary
information and data generated or derived from
applicants under this subsection shall be
considered to be confidential commercial or
financial information for the purposes of
section 552(b)(4) of title 5, United States
Code.
``(B) Standard.--If information concerning
a proposal could be withheld by the Secretary
under the standard for privileged or
confidential information pertaining to trade
secrets and commercial or financial information
under section 552(b)(4) of title 5, United
States Code, the information shall not be
released to the public.
``(7) Ineligible purposes.--In no case shall a
policy or plan of insurance made available under this
subsection provide coverage substantially similar to
privately available hail insurance.
``(8) Funding.--
``(A) Limitation on expenditures.--
Notwithstanding any other provision in this
subsection, of the funds of the Corporation,
the Corporation shall use to carry out this
section not more than $12,500,000 for each of
fiscal years 2015 through 2018, to remain
available until expended.
``(B) Relation to other programs.--The
amount of funds made available under this
section shall be in addition to amounts made
available under other provisions of this
subtitle, including amounts made available
under subsection (b).''.
SEC. 11027. ENHANCING PRODUCER SELF-HELP THROUGH FARM FINANCIAL
BENCHMARKING.
(a) Definition.--Section 502(b) of the Federal Crop
Insurance Act (7 U.S.C. 1502(b)) (as amended by section
11016(a)(1)) is amended--
(1) by redesignating paragraphs (7) through (10) as
paragraphs (8) through (11), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Farm financial benchmarking.--The term `farm
financial benchmarking' means--
``(A) the process of comparing the
performance of an agricultural enterprise
against the performance of other similar
enterprises, through the use of comparable and
reliable data, in order to identify business
management strengths, weaknesses, and steps
necessary to improve management performance and
business profitability; and
``(B) benchmarking of the type conducted by
farm management and producer associations
consistent with the activities described in or
funded pursuant to section 1672D of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5925f).''.
(b) Partnerships for Risk Management for Producers of
Specialty Crops and Underserved Agricultural Commodities.--
Section 522(d)(3)(F) of the Federal Crop Insurance Act (7
U.S.C. 1522(d)(3)(F)) is amended by inserting ``farm financial
benchmarking,'' after ``management,''.
(c) Crop Insurance Education and Risk Management
Assistance.--Section 524(a) of the Federal Crop Insurance Act
(7 U.S.C. 1524(a)) is amended--
(1) in paragraph (3)(A), by inserting ``farm
financial benchmarking,'' after ``risk reduction,'';
and
(2) in paragraph (4), in the matter preceding
subparagraph (A), by inserting ``(including farm
financial benchmarking)'' after ``management
strategies''.
SEC. 11028. TECHNICAL AMENDMENTS.
(a) Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended--
(1) in subsection (b)--
(A) by striking paragraph (7); and
(B) by redesignating paragraphs (8) through
(11) as paragraphs (7) through (10),
respectively;
(2) in subsection (e)(2), in the matter preceding
subparagraph (A), by striking ``paragraph (3)'' and
inserting ``paragraphs (3), (6), and (7)''; and
(3) in subsection (k)(8)(C), by striking
``subparagraph (A)(iii)'' and inserting ``subparagraph
(A)(ii)''.
(b) Section 522 of the Federal Crop Insurance Act (7 U.S.C.
1522) is amended--
(1) in subsection (b)(4)(A), by striking
``paragraphs (1)'' and inserting ``paragraph (1)''; and
(2) in subsection (e)(1), by adding a period at the
end.
(c) Section 531(d)(3)(A) of the Federal Crop Insurance Act
(7 U.S.C. 1531(d)(3)(A)) is amended--
(1) by striking ``(A) Eligible losses.--'' and all
that follows through ``An eligible'' in clause (i) and
inserting the following:
``(A) Eligible losses.--An eligible'';
(2) by striking clause (ii); and
(3) by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively, and indenting
appropriately.
(d) Section 901(d)(3)(A) of the Trade Act of 1974 (19
U.S.C. 2497(d)(3)(A)) is amended--
(1) by striking ``(A) Eligible losses.--'' and all
that follows through ``An eligible'' in clause (i) and
inserting the following:
``(A) Eligible losses.--An eligible'';
(2) by striking clause (ii); and
(3) by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively, and indenting
appropriately.
TITLE XII--MISCELLANEOUS
Subtitle A--Livestock
SEC. 12101. TRICHINAE CERTIFICATION PROGRAM.
(a) Alternative Certification Process.--The Secretary of
Agriculture shall amend the rule made under paragraph (2) of
section 11010(a) of the Food, Conservation, and Energy Act of
2008 (7 U.S.C. 8304(a)) to implement the voluntary trichinae
certification program established under paragraph (1) of such
section, to include a requirement to establish an alternative
trichinae certification process based on surveillance or other
methods consistent with international standards for
categorizing compartments as having negligible risk for
trichinae.
(b) Final Regulations.--Not later than one year after the
date on which the international standards referred to in
subsection (a) are adopted, the Secretary shall finalize the
rule amended under such subsection.
(c) Reauthorization.--Section 10405(d)(1) of the Animal
Health Protection Act (7 U.S.C. 8304(d)(1)) is amended in
subparagraphs (A) and (B) by striking ``2012'' each place it
appears and inserting ``2018''.
SEC. 12102. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
(a) In General.--Subtitle A of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the
end the following:
``SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM.
``(a) Establishment.--The Secretary of Agriculture, acting
through the Administrator of the Agricultural Marketing
Service, shall establish a competitive grant program for the
purposes of strengthening and enhancing the production and
marketing of sheep and sheep products in the United States,
including through--
``(1) the improvement of--
``(A) infrastructure;
``(B) business; and
``(C) resource development; and
``(2) the development of innovative approaches to
solve long-term needs.
``(b) Eligibility.--The Secretary shall make grants under
this section to at least one national entity, the mission of
which is consistent with the purpose of the grant program.
``(c) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this section
$1,500,000 for fiscal year 2014, to remain available until
expended.''.
(b) Conforming Amendment.--Section 375 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2008j) (as in
existence on the day before the date of the enactment of this
Act) is--
(1) amended in subsection (e)--
(A) in paragraph (3)(D), by striking ``3
percent'' and inserting ``10 percent''; and
(B) by striking paragraph (6);
(2) redesignated as section 210 of the Agricultural
Marketing Act of 1946; and
(3) moved so as to appear at the end of subtitle A
of that Act (as amended by subsection (a)).
SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN.
Section 11013(d) of the Food, Conservation, and Energy Act
of 2008 (7 U.S.C. 8322(d)) is amended by striking ``2012'' and
inserting ``2018''.
SEC. 12104. COUNTRY OF ORIGIN LABELING.
(a) Economic Analysis.--
(1) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of
Agriculture, acting through the Office of the Chief
Economist, shall conduct an economic analysis of the
final rule entitled ``Mandatory Country of Origin
Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Wild
and Farm-raised Fish and Shellfish, Perishable
Agricultural Commodities, Peanuts, Pecans, Ginseng and
Macadamia Nuts'' published by the Department of
Agriculture on May 24, 2013 (78 Fed. Reg. 31367) that
makes certain amendments to parts 60 and 65 of title 7,
Code of Federal Regulations.
(2) Contents.--The economic analysis described in
subsection (a) shall include, with respect to the
labeling of beef, pork, and chicken, an analysis of the
impact on consumers, producers, and packers in the
United States of--
(A) the implementation of subtitle D of the
Agricultural Marketing Act of 1946 (7 U.S.C.
1638 et seq.); and
(B) the final rule referred to in
subsection (a).
(b) Applying Country of Origin Labeling Requirements to
Venison.--
(1) Definition of covered commodity.--Section
281(2)(A) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638(2)(A)) is amended--
(A) in clause (i), by striking ``and pork''
and inserting ``pork, and venison''; and
(B) in clause (ii), by striking ``and
ground pork'' and inserting ``ground pork, and
ground venison''.
(2) Notice of country of origin.--Section 282(a)(2)
of the Agricultural Marketing Act of 1946 (7 U.S.C.
1638a(a)(2)) is amended--
(A) in the heading, by striking ``and
goat'' and inserting ``goat, and venison'';
(B) by striking ``or goat'' and inserting
``goat, or venison'' each place it appears in
subparagraphs (A), (B), (C), and (D); and
(C) in subparagraph (E)--
(i) in the heading, by striking
``and goat'' and inserting ``goat, and
venison''; and
(ii) by striking ``or ground goat''
each place it appears and inserting
``ground goat, or ground venison''.
SEC. 12105. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.
The Animal Health Protection Act is amended by inserting
after section 10409 (7 U.S.C. 8308) the following new section:
``SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY NETWORK.
``(a) Definition of Eligible Laboratory.--In this section,
the term `eligible laboratory' means a diagnostic laboratory
that meets specific criteria developed by the Secretary, in
consultation with State animal health officials, State
veterinary diagnostic laboratories, and veterinary diagnostic
laboratories at institutions of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)).
``(b) In General.--The Secretary, in consultation with
State veterinarians, shall offer to enter into contracts,
grants, cooperative agreements, or other legal instruments with
eligible laboratories for any of the following purposes:
``(1) To enhance the capability of the Secretary to
respond in a timely manner to emerging or existing
bioterrorist threats to animal health.
``(2) To provide the capacity and capability for
standardized--
``(A) test procedures, reference materials,
and equipment;
``(B) laboratory biosafety and biosecurity
levels;
``(C) quality management system
requirements;
``(D) interconnected electronic reporting
and transmission of data; and
``(E) evaluation for emergency
preparedness.
``(3) To coordinate the development,
implementation, and enhancement of national veterinary
diagnostic laboratory capabilities, with special
emphasis on surveillance planning and vulnerability
analysis, technology development and validation,
training, and outreach.
``(c) Priority.--To the extent practicable and to the
extent capacity and specialized expertise may be necessary, the
Secretary shall give priority to existing Federal facilities,
State facilities, and facilities at institutions of higher
education.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$15,000,000 for each of fiscal years 2014 through 2018.''.
SEC. 12106. FOOD SAFETY INSPECTION.
(a) Inspections.--
(1) In general.--Section 1(w) of the Federal Meat
Inspection Act (21 U.S.C. 601(w)) is amended by
striking paragraph (2) and inserting the following:
``(2) all fish of the order Siluriformes; and''.
(2) Conditions.--Section 6 of the Federal Meat
Inspection Act (21 U.S.C. 606) is amended by striking
subsection (b) and inserting the following:
``(b) Certain Fish.--In the case of an examination and
inspection under subsection (a) of a meat food product derived
from any fish described in section 1(w)(2), the Secretary shall
take into account the conditions under which the fish is raised
and transported to a processing establishment.''.
(3) Inapplicability.--Section 25 of the Federal
Meat Inspection Act (21 U.S.C. 625) is amended by
striking ``not apply'' and all that follows and
inserting ``not apply to any fish described in section
1(w)(2).''.
(4) Conforming amendment.--Section 203(n) of the
Agricultural Marketing Act of 1946 (7 U.S.C. 1622(n))
is amended by striking paragraph (1) and inserting the
following:
``(1) all fish of the order Siluriformes; and''.
(b) Implementation.--
(1) In general.--The Secretary shall--
(A) not later than 60 days after the date
of enactment of this Act, issue final
regulations to carry out the amendments made by
section 11016(b)(1) of the Food, Conservation,
and Energy Act of 2008 (Public Law 110-246; 122
Stat. 2130), as further clarified by the
amendments made by this section; and
(B) not later than 1 year after the date of
enactment of this Act, implement the amendments
described in subparagraph (A).
(2) Notification.--Beginning 30 days after the date
of enactment of this Act and every 30 days thereafter
until the date of full implementation of the amendments
described in paragraph (1)(A), the Secretary shall
submit a report describing the status of implementation
to--
(A) the Committee on Agriculture of the
House of Representatives;
(B) the Committee on Agriculture, Nutrition
and Forestry of the Senate;
(C) the Subcommittee on Agriculture, Rural
Development, Food and Drug Administration, and
Related Agencies of the Committee on
Appropriations of the House of Representatives;
and
(D) the Subcommittee on Agriculture, Rural
Development, and Related Agencies of the
Committee on Appropriations of the Senate.
(3) Procedure.--Section 1601(c)(2) applies to the
promulgation of the regulations and administration of
this section and the amendments made by this section.
(4) Conforming amendment.--Section 11016(b) of the
Food, Conservation, and Energy Act of 2008 (Public Law
110-246; 122 Stat. 2130) is amended by striking
paragraph (2) and inserting the following:
``(2) Implementation.--
``(A) Regulations.--Not later than 60 days
after the date of enactment of the Agricultural
Act of 2014, the Secretary, in consultation
with the Commissioner of Food and Drugs, shall
issue final regulations to carry out the
amendments made by paragraph (1) and section
12106 of that Act in a manner that ensures that
there is no duplication in inspection
activities.
``(B) Interagency coordination.--Not later
than 60 days after the date of enactment of the
Agricultural Act of 2014, the Secretary shall
execute a memorandum of understanding with the
Commissioner of Food and Drugs for the
following purposes:
``(i) To improve interagency
cooperation on food safety and fraud
prevention, building upon any other
prior agreements, including provisions,
performance metrics, and timelines as
appropriate.
``(ii) To maximize the
effectiveness of limited personnel and
resources by ensuring that--
``(I) inspections conducted
by the Department satisfy
requirements under the Federal
Food, Drug, and Cosmetic Act
(21 U.S.C. 301 et seq.);
``(II) inspections of
shipments and processing
facilities for fish of the
order Siluriformes by the
Department and the Food and
Drug Administration are not
duplicative; and
``(III) any information
resulting from examination,
testing, and inspections
conducted is considered in
making risk-based
determinations, including the
establishment of inspection
priorities.''.
(c) Effective Date.--This section and the amendments made
by this section shall take effect as if enacted as part of
section 11016(b) of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 2130).
SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN.
The Secretary of Agriculture shall ensure that the
Department of Agriculture continues to administer the
diagnostic surveillance program for H5/H7 low pathogenic avian
influenza with respect to commercial poultry under section
146.14 of title 9, Code of Federal Regulations (or a successor
regulation), without amending the regulations in section 147.43
of title 9, Code of Federal Regulations (as in effect on the
date of the enactment of this Act), with respect to the
governance of the General Conference Committee established
under such section. The Secretary of Agriculture shall
maintain--
(1) the operations of the General Conference
Committee--
(A) in the physical location at which the
Committee was located on the date of the
enactment of this Act; and
(B) with the organizational structure
within the Department of Agriculture in effect
as of such date; and
(2) the funding levels for the National Poultry
Improvement Plan for Commercial Poultry (established
under part 146 of title 9, Code of Federal Regulations,
or a successor regulation) at the fiscal year 2013
funding levels for the Plan.
SEC. 12108. SENSE OF CONGRESS REGARDING FERAL SWINE ERADICATION.
It is the sense of the Congress that--
(1) the Secretary of Agriculture should recognize
the threat feral swine pose to the domestic swine
population and the entire agriculture industry; and
(2) feral swine eradication is a high priority that
the Secretary should carry out under the authorities of
the Animal Health Protection Act (7 U.S.C. 8301 et
seq.).
Subtitle B--Socially Disadvantaged Producers and Limited Resource
Producers
SEC. 12201. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS AND VETERAN FARMERS AND RANCHERS.
(a) Outreach and Assistance for Socially Disadvantaged
Farmers and Ranchers and Veteran Farmers and Ranchers.--Section
2501 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 2279) is amended--
(1) in the section heading, by inserting ``and
veteran farmers and ranchers'' after ``ranchers'';
(2) in subsection (a)--
(A) in paragraph (1), in the matter
preceding subparagraph (A), by inserting ``and
veteran farmers or ranchers'' after
``ranchers'';
(B) in paragraph (2)(B)(i), by inserting
``and veteran farmers or ranchers'' after
``ranchers''; and
(C) in paragraph (4)--
(i) in subparagraph (A)--
(I) in the subparagraph
heading, by striking ``2012''
and inserting ``2018'';
(II) in clause (i), by
striking ``and'' at the end;
(III) in clause (ii), by
striking the period at the end
and inserting ``; and''; and
(IV) by adding at the end
the following new clause:
``(iii) $10,000,000 for each of
fiscal years 2014 through 2018.''; and
(ii) by adding at the end the
following new subparagraph:
``(E) Authorization of appropriations.--
There are authorized to be appropriated to
carry out this section $20,000,000 for each of
fiscal years 2014 through 2018.'';
(3) in subsection (b)(2), by inserting ``or veteran
farmers and ranchers'' after ``socially disadvantaged
farmers and ranchers'';
(4) in subsection (c)--
(A) in paragraph (1)(A), by inserting
``veteran farmers or ranchers and'' before
``members''; and
(B) in paragraph (2)(A), by inserting
``veteran farmers or ranchers and'' before
``members''; and
(5) in subsection (e)(5)(A)--
(A) in clause (i), by inserting ``and
veteran farmers or ranchers'' after
``ranchers''; and
(B) in clause (ii), by inserting ``and
veteran farmers or ranchers'' after
``ranchers''.
(b) Definition of Veteran Farmer or Rancher.--Section
2501(e) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279(e)) is amended by adding at the end the
following new paragraph:
``(7) Veteran farmer or rancher.--The term `veteran
farmer or rancher' means a farmer or rancher who has
served in the Armed Forces (as defined in section
101(10) of title 38 United States Code) and who--
``(A) has not operated a farm or ranch; or
``(B) has operated a farm or ranch for not
more than 10 years.''.
SEC. 12202. OFFICE OF ADVOCACY AND OUTREACH.
Paragraph (3) of section 226B(f) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6934(f)) is
amended to read as follows:
``(3) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection--
``(A) such sums as are necessary for each
of fiscal years 2009 through 2013; and
``(B) $2,000,000 for each of fiscal years
2014 through 2018.''.
SEC. 12203. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS POLICY RESEARCH
CENTER.
Section 2501 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279), as amended by section 12201,
is amended by adding at the end the following new subsection:
``(i) Socially Disadvantaged Farmers and Ranchers Policy
Research Center.--The Secretary shall award a grant to a
college or university eligible to receive funds under the Act
of August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee
University, to establish a policy research center to be known
as the `Socially Disadvantaged Farmers and Ranchers Policy
Research Center' for the purpose of developing policy
recommendations for the protection and promotion of the
interests of socially disadvantaged farmers and ranchers.''.
SEC. 12204. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM CERTAIN
DEPARTMENT OF AGRICULTURE AGENCIES.
Section 2501A(e) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279-1(e)) is amended by
striking ``and, at the time of the request, also requests a
receipt''.
Subtitle C--Other Miscellaneous Provisions
SEC. 12301. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING
OF AGRICULTURAL LABOR FORCE.
Subsection (d) of section 14204 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 2008q-1) is amended to read as
follows:
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) such sums as are necessary for each of fiscal
years 2008 through 2013; and
``(2) $10,000,000 for each of fiscal years 2014
through 2018.''.
SEC. 12302. PROGRAM BENEFIT ELIGIBILITY STATUS FOR PARTICIPANTS IN HIGH
PLAINS WATER STUDY.
Section 2901 of the Food, Conservation, and Energy Act of
2008 (Public Law 110-246; 122 Stat. 1818) is amended by
striking ``this Act or an amendment made by this Act'' and
inserting ``this Act, an amendment made by this Act, the
Agricultural Act of 2014, or an amendment made by the
Agricultural Act of 2014''.
SEC. 12303. OFFICE OF TRIBAL RELATIONS.
Title III of the Federal Crop Insurance Reform and
Department of Agriculture Reorganization Act of 1994 is amended
by adding after section 308 (7 U.S.C. 3125a note; Public Law
103-354) the following new section:
``SEC. 309. OFFICE OF TRIBAL RELATIONS.
``The Secretary shall maintain in the Office of the
Secretary an Office of Tribal Relations, which shall advise the
Secretary on policies related to Indian tribes and carry out
such other functions as the Secretary considers appropriate.''.
SEC. 12304. MILITARY VETERANS AGRICULTURAL LIAISON.
Subtitle A of the Department of Agriculture Reorganization
Act of 1994 is amended by inserting after section 218 (7 U.S.C.
6918) the following new section:
``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.
``(a) Authorization.--The Secretary shall establish in the
Department the position of Military Veterans Agricultural
Liaison.
``(b) Duties.--The Military Veterans Agricultural Liaison
shall--
``(1) provide information to returning veterans
about, and connect returning veterans with, beginning
farmer training and agricultural vocational and
rehabilitation programs appropriate to the needs and
interests of returning veterans, including assisting
veterans in using Federal veterans educational benefits
for purposes relating to beginning a farming or
ranching career;
``(2) provide information to veterans concerning
the availability of, and eligibility requirements for,
participation in agricultural programs, with particular
emphasis on beginning farmer and rancher programs;
``(3) serve as a resource for assisting veteran
farmers and ranchers, and potential farmers and
ranchers, in applying for participation in agricultural
programs; and
``(4) advocate on behalf of veterans in
interactions with employees of the Department.
``(c) Contracts and Cooperative Agreements.--For purposes
of carrying out the duties under subsection (b), the Military
Veterans Agricultural Liaison may enter into contracts or
cooperative agreements with the research centers of the
Agricultural Research Service, institutions of higher education
(as defined in section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001)), or nonprofit organizations for--
``(1) the conduct of regional research on the
profitability of small farms;
``(2) the development of educational materials;
``(3) the conduct of workshops, courses, and
certified vocational training;
``(4) the conduct of mentoring activities; or
``(5) the provision of internship opportunities.''.
SEC. 12305. NONINSURED CROP ASSISTANCE PROGRAM.
(a) In General.--Section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting
the following:
``(1) In general.--
``(A) Coverages.--In the case of an
eligible crop described in paragraph (2), the
Secretary of Agriculture shall operate a
noninsured crop disaster assistance program to
provide coverages based on individual yields
(other than for value-loss crops) equivalent
to--
``(i) catastrophic risk protection
available under section 508(b) of the
Federal Crop Insurance Act (7 U.S.C.
1508(b)); or
``(ii) except in the case of crops
and grasses used for grazing,
additional coverage available under
subsections (c) and (h) of section 508
of that Act (7 U.S.C. 1508) that does
not exceed 65 percent, as described in
subsection (l).
``(B) Administration.--The Secretary shall
carry out this section through the Farm Service
Agency (referred to in this section as the
`Agency').''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i), by
striking ``and'' after the
semicolon at the end;
(II) by redesignating
clause (ii) as clause (iii);
and
(III) by inserting after
clause (i) the following:
``(ii) for which
additional coverage
under subsections (c)
and (h) of section 508
of that Act (7 U.S.C.
1508) is not available;
and''; and
(ii) in subparagraph (B), by
striking ``and industrial crops'' and
inserting ``sweet sorghum, biomass
sorghum, and industrial crops
(including those grown expressly for
the purpose of producing a feedstock
for renewable biofuel, renewable
electricity, or biobased products)'';
(2) in subsection (i)(2), by striking ``$100,000''
and inserting ``$125,000'';
(3) in subsection (k)(2), by striking ``limited
resource farmer'' and inserting ``limited resource,
beginning, or socially disadvantaged farmer''; and
(4) by adding at the end the following:
``(l) Payment Equivalent to Additional Coverage.--
``(1) In general.--The Secretary shall make
available noninsured assistance under this subsection
(other than for crops and grasses used for grazing) at
a payment amount that is equivalent to an indemnity for
additional coverage under subsections (c) and (h) of
section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) and equal to the product obtained by
multiplying--
``(A) the amount that--
``(i) the additional coverage
yield, which shall be equal to the
product obtained by multiplying--
``(I) an amount not less
than 50 percent nor more than
65 percent, as elected by the
producer and specified in 5-
percent increments; and
``(II) the approved yield
for the crop, as determined by
the Secretary; exceeds
``(ii) the actual yield;
``(B) 100 percent of the average market
price for the crop, as determined by the
Secretary; and
``(C) a payment rate for the type of crop,
as determined by the Secretary, that reflects--
``(i) in the case of a crop that is
produced with a significant and
variable harvesting expense, the
decreasing cost incurred in the
production cycle for the crop that is,
as applicable--
``(I) harvested;
``(II) planted but not
harvested; or
``(III) prevented from
being planted because of
drought, flood, or other
natural disaster, as determined
by the Secretary; or
``(ii) in the case of a crop that
is produced without a significant and
variable harvesting expense, such rate
as shall be determined by the
Secretary.
``(2) Service fee and premium.--To be eligible to
receive a payment under this subsection, a producer
shall pay--
``(A) the service fee required by
subsection (k); and
``(B) the lesser of--
``(i) the sum of the premiums for
each eligible crop, with the premium
for each eligible crop obtained by
multiplying--
``(I) the number of acres
devoted to the eligible crop;
``(II) the yield, as
determined by the Secretary
under subsection (e);
``(III) the coverage level
elected by the producer;
``(IV) the average market
price, as determined by the
Secretary; and
``(V) a 5.25-percent
premium fee; or
``(ii) the product obtained by
multiplying--
``(I) a 5.25-percent
premium fee; and
``(II) the applicable
payment limit.
``(3) Additional availability.--
``(A) In general.--As soon as practicable
after October 1, 2013, the Secretary shall make
assistance available to producers of an
otherwise eligible crop described in subsection
(a)(2) that suffered losses--
``(i) to a 2012 annual fruit crop
grown on a bush or tree; and
``(ii) in a county covered by a
declaration by the Secretary of a
natural disaster for production losses
due to a freeze or frost.
``(B) Assistance.--The Secretary shall make
assistance available under subparagraph (A) in
an amount equivalent to assistance available
under paragraph (1), less any fees not
previously paid under paragraph (2).
``(4) Limited resource, beginning, and socially
disadvantaged farmers.--The coverage made available
under this subsection shall be available to limited
resource, beginning, and socially disadvantaged
farmers, as determined by the Secretary, in exchange
for a premium that is 50 percent of the premium
determined under paragraph (2).
``(5) Effective date.--Except as provided in
paragraph (3)(A), additional coverage under this
subsection shall be available for each of the 2015
through 2018 crop years.''.
(b) Prohibition on Catastrophic Risk Protection.--Section
508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is
amended by striking paragraph (1) and inserting the following:
``(1) Coverage availability.--
``(A) In general.--Except as provided in
subparagraph (B), the Corporation shall offer a
catastrophic risk protection plan to indemnify
producers for crop loss due to loss of yield or
prevented planting, if provided by the
Corporation, when the producer is unable,
because of drought, flood, or other natural
disaster (as determined by the Secretary), to
plant other crops for harvest on the acreage
for the crop year.
``(B) Exception.--Coverage described in
subparagraph (A) shall not be available for
crops and grasses used for grazing.''.
SEC. 12306. ACER ACCESS AND DEVELOPMENT PROGRAM.
(a) Grants Authorized.--The Secretary of Agriculture may
make competitive grants to States, tribal governments, and
research institutions to support the efforts of such States,
tribal governments, and research institutions to promote the
domestic maple syrup industry through the following activities:
(1) Promotion of research and education related to
maple syrup production.
(2) Promotion of natural resource sustainability in
the maple syrup industry.
(3) Market promotion for maple syrup and maple-sap
products.
(4) Encouragement of owners and operators of
privately held land containing species of trees in the
genus Acer--
(A) to initiate or expand maple-sugaring
activities on the land; or
(B) to voluntarily make the land available,
including by lease or other means, for access
by the public for maple-sugaring activities.
(b) Application.--In submitting an application for a
competitive grant under this section, a State, tribal
government, or research institution shall include--
(1) a description of the activities to be supported
using the grant funds;
(2) a description of the benefits that the State,
tribal government, or research institution intends to
achieve as a result of engaging in such activities; and
(3) an estimate of the increase in maple-sugaring
activities or maple syrup production that the State,
tribal government, or research institution anticipates
will occur as a result of engaging in such activities.
(c) Rule of Construction.--Nothing in this section shall be
construed so as to preempt a State or tribal government law,
including a State or tribal government liability law.
(d) Definition of Maple-Sugaring.--In this section, the
term ``maple-sugaring'' means the collection of sap from any
species of tree in the genus Acer for the purpose of boiling to
produce food.
(e) Regulations.--The Secretary of Agriculture shall
promulgate such regulations as are necessary to carry out this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2014 through 2018.
SEC. 12307. SCIENCE ADVISORY BOARD.
Section 8 of the Environmental Research, Development, and
Demonstration Authorization Act of 1978 (42 U.S.C. 4365) is
amended--
(1) by striking subsection (e) and inserting the
following:
``(e) Committees.--
``(1) Member committees.--
``(A) In general.--The Board is authorized
to establish such member committees and
investigative panels as the Administrator and
the Board determine to be necessary to carry
out this section.
``(B) Chairmanship.--Each member committee
or investigative panel established under this
subsection shall be chaired by a member of the
Board.
``(2) Agriculture-related committees.--
``(A) In general.--The Administrator and
the Board--
``(i) shall establish a standing
agriculture-related committee; and
``(ii) may establish such
additional agriculture-related
committees and investigative panels as
the Administrator and the Board
determines to be necessary to carry out
the duties under subparagraph (C).
``(B) Membership.--The standing committee
and each agriculture-related committee or
investigative panel established under
subparagraph (A) shall be--
``(i) composed of--
``(I) such quantity of
members as the Administrator
and the Board determines to be
necessary; and
``(II) individuals who are
not members of the Board on the
date of appointment to the
committee or investigative
panel; and
``(ii) appointed by the
Administrator and the Board, in
consultation with the Secretary of
Agriculture.
``(C) Duties.--The agriculture-related
standing committee and each additional
committee and investigative panel established
under subparagraph (A) shall provide scientific
and technical advice to the Board relating to
matters referred to the Board that the
Administrator and the Board determines, in
consultation with the Secretary of Agriculture,
to have a significant direct impact on
enterprises that are engaged in the business of
the production of food and fiber, ranching and
raising livestock, aquaculture, and all other
farming- and agriculture-related industries.'';
and
(2) by adding at the end the following:
``(h) Public Participation and Transparency.--The Board
shall make every effort, consistent with applicable law,
including section 552 of title 5, United States Code (commonly
known as the `Freedom of Information Act') and section 552a of
title 5, United States Code (commonly known as the `Privacy
Act'), to maximize public participation and transparency,
including making the scientific and technical advice of the
Board and any committees or investigative panels of the Board
publically available in electronic form on the website of the
Environmental Protection Agency.
``(i) Report to Congress.--The Administrator shall annually
report to the Committees on Environment and Public Works and
Agriculture of the Senate and the Committees on Transportation
and Infrastructure, Energy and Commerce, and Agriculture of the
House of Representatives regarding the membership and
activities of the standing agriculture-related committee
established pursuant to subsection (e)(2)(A)(i).''.
SEC. 12308. AMENDMENTS TO ANIMAL WELFARE ACT.
(a) Licensing of Dealers and Exhibitors.--
(1) Definition.--Section 2 of the Animal Welfare
Act (7 U.S.C. 2132) is amended--
(A) in the matter preceding subsection (a),
by striking ``When used in this Act--'' and
inserting ``In this Act:'';
(B) in subsection (f), by striking ``(2)
any dog for hunting, security, or breeding
purposes'' and all that follows through the
semicolon at the end and inserting ``(2) any
dog for hunting, security, or breeding
purposes. Such term does not include a retail
pet store (other than a retail pet store which
sells any animals to a research facility, an
exhibitor, or another dealer).'';
(C) in each of subsections (a), (b), (d),
(e), (g), (h), (i), (j), (k), and (m), by
striking the semicolon at the end and inserting
a period; and
(D) in subsection (n), by striking ``;
and'' at the end and inserting a period.
(2) Licensing.--Section 3 of the Animal Welfare Act
(7 U.S.C. 2133) is amended by striking ``: Provided,
however, That any retail pet store'' and all that
follows through ``under this Act.'' and inserting the
following ``: Provided, however, That a dealer or
exhibitor shall not be required to obtain a license as
a dealer or exhibitor under this Act if the size of the
business is determined by the Secretary to be de
minimis.''.
(b) Prohibition on Attending an Animal Fight or Causing an
Individual Who Has Not Attained the Age of 16 to Attend an
Animal Fight; Enforcement of Animal Fighting Provisions.--
(1) Prohibition on attending an animal fight or
causing an individual who has not attained the age of
16 to attend an animal fight.--Section 26(a) of the
Animal Welfare Act (7 U.S.C. 2156(a)) is amended--
(A) in the heading, by striking
``Sponsoring or Exhibiting an Animal in'' and
inserting ``Sponsoring or Exhibiting an Animal
in, Attending, or Causing an Individual Who Has
Not Attained the Age of 16 To Attend,''; and
(B) in paragraph (1)--
(i) in the heading, by striking
``In General'' and inserting
``Sponsoring or Exhibiting''; and
(ii) by striking ``paragraph (2)''
and inserting ``paragraph (3)'';
(iii) by redesignating paragraph
(2) as paragraph (3); and
(iv) by inserting after paragraph
(1) the following:
``(2) Attending or causing an individual who has
not attained the age of 16 to attend.--It shall be
unlawful for any person to--
``(A) knowingly attend an animal fighting
venture; or
``(B) knowingly cause an individual who has
not attained the age of 16 to attend an animal
fighting venture.''.
(2) Enforcement of animal fighting prohibitions.--
Section 49 of title 18, United States Code, is
amended--
(A) by striking ``Whoever'' and inserting
``(a) In General.--Whoever'';
(B) in subsection (a), as designated by
subparagraph (A), by striking ``subsection
(a),'' and inserting ``subsection (a)(1),'';
and
(C) by adding at the end the following:
``(b) Attending an Animal Fighting Venture.--Whoever
violates subsection (a)(2)(A) of section 26 of the Animal
Welfare Act (7 U.S.C. 2156) shall be fined under this title,
imprisoned for not more than 1 year, or both, for each
violation.
``(c) Causing an Individual Who Has Not Attained the Age of
16 To Attend an Animal Fighting Venture.--Whoever violates
subsection (a)(2)(B) of section 26 (7 U.S.C. 2156) of the
Animal Welfare Act shall be fined under this title, imprisoned
for not more than 3 years, or both, for each violation.''.
SEC. 12309. PRODUCE REPRESENTED AS GROWN IN THE UNITED STATES WHEN IT
IS NOT IN FACT GROWN IN THE UNITED STATES.
(a) Technical Assistance to CBP.--The Secretary of
Agriculture shall make available to U.S. Customs and Border
Protection technical assistance related to the identification
of produce represented as grown in the United States when it is
not in fact grown in the United States.
(b) 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 on produce represented as grown in the United
States when it is not in fact grown in the United States.
SEC. 12310. REPORT ON WATER SHARING.
Not later than 120 days after the date of the enactment of
this Act and annually thereafter, the Secretary of State shall
submit to Congress a report on efforts by Mexico to meet its
treaty deliveries of water to the Rio Grande in accordance with
the Treaty between the United States and Mexico Respecting
Utilization of waters of the Colorado and Tijuana Rivers and of
the Rio Grande (done at Washington, February 3, 1944).
SEC. 12311. SCIENTIFIC AND ECONOMIC ANALYSIS OF THE FDA FOOD SAFETY
MODERNIZATION ACT.
(a) In General.--When publishing a final rule with respect
to ``Standards for the Growing, Harvesting, Packing, and
Holding of Produce for Human Consumption'' published by the
Department of Health and Human Services on January 16, 2013 (78
Fed. Reg. 3504), the Secretary of Health and Human Services
(referred to in this section as the ``Secretary'') shall ensure
that the final rule (referred to in this section as the ``final
rule'') includes the following information:
(1) An analysis of the scientific information used
to promulgate the final rule, taking into consideration
any information about farming and ranching operations
of a variety of sizes, with regional differences, and
that have a diversity of production practices and
methods.
(2) An analysis of the economic impact of the final
rule.
(3) A plan to systematically--
(A) evaluate the impact of the final rule
on farming and ranching operations; and
(B) develop an ongoing process to evaluate
and respond to business concerns.
(b) Report.--Not later than 1 year after the date on which
the Secretary promulgates the final rule referred to in
subsection (a), the Comptroller General of the United States
shall submit to the Committee on Agriculture, Nutrition, and
Forestry and the Committee on Health, Education, and Labor of
the Senate and the Committee on Agriculture and the Committee
on Energy and Commerce of the House of Representatives a report
on the effectiveness of the ongoing evaluation and response
process referred to in subsection (a)(3)(B). Not later than one
year after the date on which such report is submitted, the
Comptroller General of the United States shall submit to such
committees an updated report on such process.
SEC. 12312. PAYMENT IN LIEU OF TAXES.
Section 6906 of title 31, United States Code, is amended,
in the matter preceding paragraph (1), by striking ``2013'' and
inserting ``2014''.
SEC. 12313. SILVICULTURAL ACTIVITIES.
Section 402(l) of the Federal Water Pollution Control Act
(33 U.S.C. 1342(l)) is amended by adding at the end the
following:
``(3) Silvicultural activities.--
``(A) NPDES permit requirements for
silvicultural activities.--The Administrator
shall not require a permit under this section
nor directly or indirectly require any State to
require a permit under this section for a
discharge from runoff resulting from the
conduct of the following silviculture
activities conducted in accordance with
standard industry practice: nursery operations,
site preparation, reforestation and subsequent
cultural treatment, thinning, prescribed
burning, pest and fire control, harvesting
operations, surface drainage, or road
construction and maintenance.
``(B) Other requirements.--Nothing in this
paragraph exempts a discharge from
silvicultural activity from any permitting
requirement under section 404, existing
permitting requirements under section 402, or
from any other federal law.
``(C) The authorization provided in Section
505(a) does not apply to any non-permitting
program established under 402(p)(6) for the
silviculture activities listed in 402(l)(3)(A),
or to any other limitations that might be
deemed to apply to the silviculture activities
listed in 402(l)(3)(A).''.
SEC. 12314. PIMA AGRICULTURE COTTON TRUST FUND.
(a) Establishment of Trust Fund.--There is established in
the Treasury of the United States a trust fund to be known as
the ``Pima Agriculture Cotton Trust Fund'' (in this section
referred to as the ``Trust Fund''), consisting of such amounts
as may be transferred to the Trust Fund pursuant to subsection
(h), and to be used for the purpose of reducing the injury to
domestic manufacturers resulting from tariffs on cotton fabric
that are higher than tariffs on certain apparel articles made
of cotton fabric.
(b) Distribution of Funds.--From amounts in the Trust Fund,
the Secretary shall make payments annually beginning in
calendar year 2014 for calendar years 2014 through 2018 as
follows:
(1) Twenty-five percent of the amounts in the Trust
Fund shall be paid to one or more nationally recognized
associations established for the promotion of pima
cotton for use in textile and apparel goods.
(2) Twenty-five percent of the amounts in the Trust
Fund shall be paid to yarn spinners of pima cotton that
produce ring spun cotton yarns in the United States, to
be allocated to each spinner in an amount that bears
the same ratio as--
(A) the spinner's production of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number) from pima cotton
in single and plied form during calendar year
2013 (as evidenced by an affidavit provided by
the spinner that meets the requirements of
subsection (c)), bears to--
(B) the production of the yarns described
in subparagraph (A) during calendar year 2013
for all spinners who qualify under this
paragraph.
(3) Fifty percent of the amounts in the Trust Fund
shall be paid to manufacturers who cut and sew cotton
shirts in the United States who certify that they used
imported cotton fabric during calendar year 2013, to be
allocated to each such manufacturer in an amount that
bears the same ratio as--
(A) the dollar value (excluding duty,
shipping, and related costs) of imported woven
cotton shirting fabric of 80s or higher count
and 2-ply in warp purchased by the manufacturer
during calendar year 2013 (as evidenced by an
affidavit provided by the manufacturer that
meets the requirements of subsection (d)) used
in the manufacturing of men's and boys' cotton
shirts, bears to--
(B) the dollar value (excluding duty,
shipping, and related costs) of the fabric
described in subparagraph (A) purchased during
calendar year 2013 by all manufacturers who
qualify under this paragraph.
(c) Affidavit of Yarn Spinners.--The affidavit required by
subsection (b)(2)(A) is a notarized affidavit provided annually
by an officer of a producer of ring spun yarns that affirms--
(1) that the producer used pima cotton during the
year in which the affidavit is filed and during
calendar year 2013 to produce ring spun cotton yarns in
the United States, measuring less than 83.33 decitex
(exceeding 120 metric number), in single and plied
form;
(2) the quantity, measured in pounds, of ring spun
cotton yarns, measuring less than 83.33 decitex
(exceeding 120 metric number), in single and plied form
during calendar year 2013; and
(3) that the producer maintains supporting
documentation showing the quantity of such yarns
produced, and evidencing the yarns as ring spun cotton
yarns, measuring less than 83.33 decitex (exceeding 120
metric number), in single and plied form during
calendar year 2013.
(d) Affidavit of Shirting Manufacturers.--
(1) In general.--The affidavit required by
subsection (b)(3)(A) is a notarized affidavit provided
annually by an officer of a manufacturer of men's and
boys' shirts that affirms--
(A) that the manufacturer used imported
cotton fabric during the year in which the
affidavit is filed and during calendar year
2013, to cut and sew men's and boys' woven
cotton shirts in the United States;
(B) the dollar value of imported woven
cotton shirting fabric of 80s or higher count
and 2-ply in warp purchased by the manufacturer
during calendar year 2013;
(C) that the manufacturer maintains
invoices along with other supporting
documentation (such as price lists and other
technical descriptions of the fabric qualities)
showing the dollar value of such fabric
purchased, the date of purchase, and evidencing
the fabric as woven cotton fabric of 80s or
higher count and 2-ply in warp; and
(D) that the fabric was suitable for use in
the manufacturing of men's and boys' cotton
shirts.
(2) Date of purchase.--For purposes of the
affidavit under paragraph (1), the date of purchase
shall be the invoice date, and the dollar value shall
be determined excluding duty, shipping, and related
costs.
(e) Filing Deadline for Affidavits.--Any person required to
provide an affidavit under this section shall file the
affidavit with the Secretary or as directed by the Secretary--
(1) in the case of an affidavit required for
calendar year 2014, not later than 60 days after the
date of the enactment of this Act; and
(2) in the case of an affidavit required for any of
calendar years 2015 through 2018, not later than March
15 of that calendar year.
(f) Timing of Distributions.--The Secretary shall make a
payment under paragraph (2) or (3) of subsection (b)--
(1) for calendar year 2014--
(A) not later than the date that is 30 days
after the filing of the affidavit required with
respect to that payment; or
(B) if the Secretary is unable to make the
payment by the date described in subparagraph
(A), as soon as practicable thereafter; and
(2) for calendar years 2015 through 2018, not later
than the date that is 30 days after the filing of the
affidavit required with respect to that payment.
(g) Memorandum of Understanding.--The Secretary and the
Commissioner responsible for U.S. Customs and Border Protection
shall, as soon as practicable after the date of the enactment
of this Act, negotiate a memorandum of understanding to
establish procedures pursuant to which the Commissioner will
assist the Secretary in carrying out the provisions of this
section.
(h) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall transfer to the Trust Fund
$16,000,000 for each of calendar years 2014 through 2018, to
remain available until expended.
SEC. 12315. AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND.
(a) Establishment of Trust Fund.--There is established in
the Treasury of the United States a trust fund to be known as
the ``Agriculture Wool Apparel Manufacturers Trust Fund'' (in
this section referred to as the ``Trust Fund''), consisting of
such amounts as may be transferred to the Trust Fund pursuant
to subsection (f), and to be used for the purpose of reducing
the injury to domestic manufacturers resulting from tariffs on
wool fabric that are higher than tariffs on certain apparel
articles made of wool fabric.
(b) Distribution of Funds.--
(1) In general.--From amounts in the Trust Fund,
the Secretary may make payments annually beginning in
calendar year 2014 for calendar years 2010 through 2019
as follows:
(A) To each eligible manufacturer under
paragraph (3) of section 4002(c) of the Wool
Suit and Textile Trade Extension Act of 2004
(Public Law 108-429; 118 Stat. 2600), as
amended by section 1633(c) of the Miscellaneous
Trade and Technical Corrections Act of 2006
(Public Law 109-280; 120 Stat. 1166) and
section 325(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008
(division C of Public Law 110-343; 122 Stat.
3875), and any successor-in-interest to such a
manufacturer as provided for under paragraph
(4) of such section 4002(c), that submits an
affidavit in accordance with paragraph (2) for
the year of the payment--
(i) for calendar years 2010 through
2015, payments that, when added to any
other payments made to the manufacturer
or successor-in-interest under
paragraph (3) of such section 4002(c)
in such calendar years, equal the total
amount of payments authorized to be
provided to the manufacturer or
successor-in-interest under that
paragraph, or the provisions of this
section, in such calendar years; and
(ii) for calendar years 2016
through 2019, payments in amounts
authorized under that paragraph.
(B) To each eligible manufacturer under
paragraph (6) of such section 4002(c)--
(i) for calendar years 2010 through
2014, payments that, when added to any
other payments made to eligible
manufacturers under that paragraph in
such calendar years, equal the total
amount of payments authorized to be
provided to the manufacturer under that
paragraph, or the provisions of this
section, in such calendar years; and
(ii) for calendar years 2015
through 2019, payments in amounts
authorized under that paragraph.
(2) Submission of affidavits.--An affidavit
required by paragraph (1)(A) shall be submitted--
(A) in each of calendar years 2010 through
2015, to the Commissioner responsible for U.S.
Customs and Border Protection not later than
April 15; and
(B) in each of calendar years 2016 through
2019, to the Secretary, or as directed by the
Secretary, and not later than March 1.
(c) Payment of Amounts.--The Secretary shall make payments
to eligible manufacturers and successors-in-interest described
in paragraphs (1) and (2) of subsection (b)--
(1) for calendar years 2010 through 2014, not later
than 30 days after the transfer of amounts from the
Commodity Credit Corporation to the Trust Fund under
subsection (f); and
(2) for calendar years 2015 through 2019, not later
than April 15 of the year of the payment.
(d) Memoranda of Understanding.--The Secretary shall, as
soon as practicable after the date of the enactment of this
Act, negotiate memoranda of understanding with the Commissioner
responsible for U.S. Customs and Border Protection and the
Secretary of Commerce to establish procedures pursuant to which
the Commissioner and the Secretary of Commerce will assist in
carrying out the provisions of this section.
(e) Increase in Payments in the Event of Expiration of Duty
Suspensions.--
(1) In general.--In any calendar year in which the
suspension of duty on wool fabrics provided for under
headings 9902.51.11, 9902.51.13, 9902.51.14,
9902.51.15, and 9902.51.16 of the Harmonized Tariff
Schedule of the United States are not in effect, the
amount of any payment described in subsection (b)(1) to
a manufacturer or successor-in-interest shall be
increased by an amount the Secretary, after
consultation with the Secretary of Commerce, determines
is equal to the amount the manufacturer or successor-
in-interest would have saved during the calendar year
of the payment if the suspension of duty on wool
fabrics were in effect.
(2) No appeal of determinations.--A determination
of the Secretary under this subsection shall be final
and not subject to appeal or protest.
(f) Funding.--
(1) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall transfer to the
Trust Fund for each of calendar years 2014 through 2019
an amount equal to the lesser of--
(A) the amount the Secretary determines to
be necessary to make payments required by this
section in that calendar year; or
(B) $30,000,000.
(2) Availability.--Amounts transferred to the Trust
Fund under paragraph (1) shall remain available until
expended.
SEC. 12316. WOOL RESEARCH AND PROMOTION.
(a) In General.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to provide grants
described in section 506(d) of the Trade and Development Act of
2000 (7 U.S.C. 7101 note) $2,250,000 for each of calendar years
2015 through 2019, to remain available until expended.
(b) Authorization to Distribute Unexpended Balance.--In
addition to funds made available under subsection (a) and
notwithstanding subsection (f) of section 506 of the Trade and
Development Act of 2000 (7 U.S.C. 7101 note), the Secretary may
use any unexpended balances remaining in the Wool Research,
Development, and Promotion Trust Fund established under that
section as of December 31, 2014, to provide grants described in
subsection (d) of that section.
Subtitle D--Oilheat Efficiency, Renewable Fuel Research and Jobs
Training
SEC. 12401. SHORT TITLE.
This subtitle may be cited as the ``Oilheat Efficiency,
Renewable Fuel Research and Jobs Training Act of 2014''.
SEC. 12402. FINDINGS AND PURPOSES.
Section 702 of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is amended--
(1) in paragraph (4), by striking ``and'' after the
semicolon at the end;
(2) by striking the period at the end and inserting
a semicolon; and
(3) by adding at the end the following:
``(6) consumers of oilheat fuel are provided
service by thousands of small businesses that are
unable to individually develop training programs to
facilitate the entry of new and qualified workers into
the oilheat fuel industry;
``(7) small businesses and trained employees are in
an ideal position--
``(A) to provide information to consumers
about the benefits of improved efficiency; and
``(B) to encourage consumers to value
efficiency in energy choices and assist
individuals in conserving energy;
``(8) additional research is necessary--
``(A) to improve oilheat fuel equipment;
and
``(B) to develop domestic renewable
resources that can be used to safely and
affordably heat homes;
``(9) since there are no Federal resources
available to assist the oilheat fuel industry, it is
necessary and appropriate to develop a self-funded
program dedicated--
``(A) to improving efficiency in customer
homes;
``(B) to assist individuals to gain
employment in the oilheat fuel industry; and
``(C) to develop domestic renewable
resources;
``(10) both consumers of oilheat fuel and retailers
would benefit from the self-funded program; and
``(11) the oilheat fuel industry is committed to
providing appropriate funding necessary to carry out
the purposes of this title without passing additional
costs on to residential consumers.''.
SEC. 12403. DEFINITIONS.
(a) In General.--Section 703 of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended--
(1) by redesignating paragraphs (3) through (15) as
paragraphs (4) through (16), respectively;
(2) by inserting after paragraph (2) the following:
``(3) Cost-effective.--The term `cost-effective',
with respect to a program or activity carried out under
section 707(f)(4), means that the program or activity
meets a total resource cost test under which--
``(A) the net present value of economic
benefits over the life of the program or
activity, including avoided supply and delivery
costs and deferred or avoided investments; is
greater than
``(B) the net present value of the economic
costs over the life of the program or activity,
including program costs and incremental costs
borne by the energy consumer.''; and
(3) by striking paragraph (8) (as redesignated in
paragraph (1)) and inserting the following:
``(8) Oilheat fuel.--The term `oilheat fuel' means
fuel that--
``(A) is--
``(i) No. 1 distillate;
``(ii) No. 2 dyed distillate;
``(iii) a liquid blended with No. 1
distillate or No. 2 dyed distillate; or
``(iv) a biobased liquid; and
``(B) is used as a fuel for nonindustrial
commercial or residential space or hot water
heating.''.
(b) Conforming Amendments.--
(1) The National Oilheat Research Alliance Act of
2000 (42 U.S.C. 6201 note; Public Law 106-469) is
amended by striking ``oilheat'' each place it appears
and inserting ``oilheat fuel''.
(2) Section 704(d) of the National Oilheat Research
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended in the subsection heading by
striking ``Oilheat'' and inserting ``Oilheat Fuel''.
(3) Section 706(c)(2) of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note;
Public Law 106-469) is amended in the paragraph heading
by striking ``oilheat'' and inserting ``oilheat fuel''.
(4) Section 707(c) of the National Oilheat Research
Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended in the subsection heading by
striking ``Oilheat'' and inserting ``Oilheat Fuel''.
SEC. 12404. MEMBERSHIP.
(a) Selection.--Section 705 of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended by striking subsection (a) and inserting
the following:
``(a) Selection.--
``(1) List.--
``(A) In general.--The Alliance shall
provide to the Secretary a list of qualified
nominees for membership in the Alliance.
``(B) Requirement.--Except as provided in
subsection (c)(1)(C), members of the Alliance
shall be representatives of the oilheat fuel
industry in a State, selected from a list of
nominees submitted by the qualified State
association in the State.
``(2) Vacancies.--A vacancy in the Alliance shall
be filled in the same manner as the original selection.
``(3) Secretarial action.--
``(A) In general.--The Secretary shall have
60 days to review nominees provided under
paragraph (1).
``(B) Failure to act.--If the Secretary
takes no action during the 60-day period
described in subparagraph (A), the nominees
shall be considered to be members of the
Alliance.''.
(b) Representation.--Section 705(b) of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended in the matter preceding paragraph (1) by
striking ``qualified industry organization'' and inserting
``Alliance''.
(c) Number of Members.--Section 705(c) of the National
Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note;
Public Law 106-469) is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) In general.--The Alliance shall be composed
of the following members:
``(A) 1 member representing each State
participating in the Alliance.
``(B) 5 representatives of retail
marketers, of whom 1 shall be selected by each
of the qualified State associations of the 5
States with the highest volume of annual
oilheat fuel sales.
``(C) 5 additional representatives of
retail marketers.
``(D) 21 representatives of wholesale
distributors.
``(E) 6 public members, who shall be
representatives of significant users of oilheat
fuel, the oilheat fuel research community,
State energy officials, or other groups with
expertise in oilheat fuel, including consumer
and low-income advocacy groups.''; and
(2) in paragraph (2), by striking ``the qualified
industry organization or''.
SEC. 12405. FUNCTIONS.
(a) Renewable Fuel Research.--Section 706(a)(3)(B)(i)(I) of
the National Oilheat Research Alliance Act of 2000 (42 U.S.C.
6201 note; Public Law 106-469) is amended by inserting before
the semicolon at the end the following: ``, including research
to develop renewable fuels and to examine the compatibility of
different renewable fuels with oilheat fuel utilization
equipment, with priority given to research on the development
and use of advanced biofuels''.
(b) Biennial Budgets.--Section 706(e) of the National
Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note;
Public Law 106-469) is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) Publication of proposed budget.--Not later
than August 1, 2014, and every 2 years thereafter, the
Alliance shall, in consultation with the Secretary,
develop and publish for public review and comment a
proposed biennial budget for the next 2 calendar years,
including the probable operating and planning costs of
all programs, projects, and contracts and other
agreements.''; and
(2) by striking paragraph (4) and inserting the
following:
``(4) Implementation.--
``(A) In general.--The Alliance shall not
implement a proposed budget until the
expiration of 60 days after submitting the
proposed budget to the Secretary.
``(B) Recommendations for changes by
secretary.--
``(i) In general.--The Secretary
may recommend to the Alliance changes
to the budget programs and activities
of the Alliance that the Secretary
considers appropriate.
``(ii) Response by alliance.--Not
later than 30 days after the receipt of
any recommendations made under clause
(i), the Alliance shall submit to the
Secretary a final budget for the next 2
calendar years that incorporates or
includes a description of the response
of the Alliance to any changes
recommended under clause (i).''.
SEC. 12406. ASSESSMENTS.
(a) In General.--Section 707 of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended--
(1) by striking subsection (a) and inserting the
following:
``(a) Rate.--The assessment rate shall be equal to \2/10\
of 1 cent per gallon of oilheat fuel.''; and
(2) in subsection (b), by adding at the end the
following:
``(8) Prohibition on pass through.--None of the
assessments collected under this title may be passed
through or otherwise required to be paid by residential
consumers of oilheat fuel.''.
(b) Funds Made Available to Qualified State Associations.--
Section 707(e)(2) of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is amended by
adding at the end the following:
``(B) Separate accounts.--As a condition of
receipt of funds made available to a qualified
State association under this title, the
qualified State association shall deposit the
funds in an account that is separate from other
funds of the qualified State association.''.
(c) Administration.--Section 707 of the National Oilheat
Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law
106-469) is amended by adding at the end the following:
``(f) Use of Assessments.--
``(1) In general.--Notwithstanding any other
provision of this title, the Secretary and the Alliance
shall ensure that assessments collected for each
calendar year under this title are allocated and used
in accordance with this subsection.
``(2) Research, development, and demonstration.--
``(A) In general.--The Alliance shall
ensure that not less than 30 percent of the
assessments collected for each calendar year
under this title are used by qualified State
associations or the Alliance to conduct
research, development, and demonstration
activities relating to oilheat fuel, including
the development of energy-efficient heating and
the transition and facilitation of the entry of
energy efficient heating systems into the
marketplace.
``(B) Coordination.--The Alliance shall
coordinate with the Secretary to develop
priorities for the use of assessments under
this paragraph.
``(C) Plan.--The Alliance shall develop a
coordinated research plan to carry out research
programs and activities under this section.
``(D) Report.--
``(i) In general.--No later than 1
year after the date of enactment of
this subsection, the Alliance shall
prepare a report on the use of biofuels
in oilheat fuel utilization equipment.
``(ii) Contents.--The report
required under clause (i) shall--
``(I) provide information
on the environmental benefits,
economic benefits, and any
technical limitations on the
use of biofuels in oilheat fuel
utilization equipment; and
``(II) describe market
acceptance of the fuel, and
information on State and local
governments that are
encouraging the use of biofuels
in oilheat fuel utilization
equipment.
``(iii) Copies.--The Alliance shall
submit a copy of the report required
under clause (i) to--
``(I) Congress;
``(II) the Governor of each
State, and other appropriate
State leaders, in which the
Alliance is operating; and
``(III) the Administrator
of the Environmental Protection
Agency.
``(E) Consumer education materials.--The
Alliance, in conjunction with an institution or
organization engaged in biofuels research,
shall develop consumer education materials
describing the benefits of using biofuels as or
in oilheat fuel based on the technical
information developed in the report required
under subparagraph (D) and other information
generally available.
``(3) Cost sharing.--
``(A) In general.--In carrying out a
research, development, demonstration, or
commercial application program or activity that
is commenced after the date of enactment of
this subsection, the Alliance shall require
cost-sharing in accordance with this section.
``(B) Research and development.--
``(i) In general.--Except as
provided in clauses (ii) and (iii), the
Alliance shall require that not less
than 20 percent of the cost of a
research or development program or
activity described in subparagraph (A)
to be provided by a source other than
the Alliance.
``(ii) Exclusion.--Clause (i) shall
not apply to a research or development
program or activity described in
subparagraph (A) that is of a basic or
fundamental nature, as determined by
the Alliance.
``(iii) Reduction.--The Alliance
may reduce or eliminate the requirement
of clause (i) for a research and
development program or activity of an
applied nature if the Alliance
determines that the reduction is
necessary and appropriate.
``(C) Demonstration and commercial
application.--The Alliance shall require that
not less than 50 percent of the cost of a
demonstration or commercial application program
or activity described in subparagraph (A) to be
provided by a source other than the Alliance.
``(4) Heating oil efficiency and upgrade program.--
``(A) In general.--The Alliance shall
ensure that not less than 15 percent of the
assessments collected for each calendar year
under this title are used by qualified State
associations or the Alliance to carry out
programs to assist consumers--
``(i) to make cost-effective
upgrades to more fuel efficient heating
oil systems or otherwise make cost-
effective modifications to an existing
heating system to improve the
efficiency of the system;
``(ii) to improve energy efficiency
or reduce energy consumption through
cost-effective energy efficiency
programs for consumers; or
``(iii) to improve the safe
operation of a heating system.
``(B) Plan.--The Alliance shall, to the
maximum extent practicable, coordinate,
develop, and implement the programs and
activities of the Alliance in conjunction with
existing State energy efficiency program
administrators.
``(C) Administration.--
``(i) In general.--In carrying out
this paragraph, the Alliance shall, to
the maximum extent practicable, ensure
that heating system conversion
assistance is coordinated with, and
developed after consultation with,
persons or organizations responsible
for administering--
``(I) the low-income home
energy assistance program
established under the Low-
Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et
seq.);
``(II) the Weatherization
Assistance Program for Low-
Income Persons established
under part A of title IV of the
Energy Conservation and
Production Act (42 U.S.C. 6861
et seq.); or
``(III) other energy
efficiency programs
administered by the State or
other parties in the State.
``(ii) Distribution of funds.--The
Alliance shall ensure that funds
distributed to carry out this paragraph
are--
``(I) distributed equitably
to States based on the
proportional contributions of
the States through collected
assessments;
``(II) used to supplement
(and not supplant) State or
alternative sources of funding
for energy efficiency programs;
and
``(III) used only to carry
out this paragraph.
``(5) Consumer education, safety, and training.--
The Alliance shall ensure that not more than 30 percent
of the assessments collected for each calendar year
under this title are used--
``(A) to conduct consumer education
activities relating to oilheat fuel, including
providing information to consumers on--
``(i) energy conservation
strategies;
``(ii) safety;
``(iii) new technologies that
reduce consumption or improve safety
and comfort;
``(iv) the use of biofuels blends;
and
``(v) Federal, State, and local
programs designed to assist oilheat
fuel consumers;
``(B) to conduct worker safety and training
activities relating to oilheat fuel, including
energy efficiency training (including classes
to obtain Building Performance Institute or
Residential Energy Services Network
certification);
``(C) to carry out other activities
recommended by the Secretary; or
``(D) to the maximum extent practicable, a
data collection process established, in
collaboration with the Secretary or other
appropriate Federal agencies, to track
equipment, service, and related safety issues
and to develop measures to improve safety.
``(6) Administrative costs.--
``(A) In general.--The Alliance shall
ensure that not more than 5 percent of the
assessments collected for each calendar year
under this title are used for--
``(i) administrative costs; or
``(ii) indirect costs incurred in
carrying out paragraphs (1) through
(5).
``(B) Administration.--Activities under
this section shall be documented pursuant to a
transparent process and procedures developed in
coordination with the Secretary.
``(7) Reports.--
``(A) Annual reports.--
``(i) In general.--Each qualified
State association or the Alliance shall
prepare an annual report describing the
development and administration of this
section, and yearly expenditures under
this section.
``(ii) Contents.--Each report
required under clause (i) shall include
a description of the use of proceeds
under this section, including a
description of--
``(I) advancements made in
energy-efficient heating
systems and biofuel heating oil
blends; and
``(II) heating system
upgrades and modifications and
energy efficiency programs
funded under this section.
``(iii) Verification.--
``(I) In general.--The
Alliance shall ensure that an
independent third-party reviews
each report described in clause
(i) and verifies the accuracy
of the report.
``(II) Councils.--If a
State has a stakeholder
efficiency oversight council,
the council shall be the entity
that reviews and verifies the
report of the State association
or Alliance for the State under
clause (i).
``(B) Reports on heating oil efficiency and
upgrade program.--At least once every 3 years,
the Alliance shall prepare a detailed report
describing the consumer savings, cost-
effectiveness of, and the lifetime and annual
energy savings achieved by heating system
upgrades and modifications and energy
efficiency programs funded under paragraph (4).
``(C) Availability.--Each report, and any
subsequent changes to the report, described in
this paragraph shall be made publically
available, with notice of availability provided
to the Secretary, and posted on the website of
the Alliance.''.
SEC. 12407. MARKET SURVEY AND CONSUMER PROTECTION.
Section 708 of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is repealed.
SEC. 12408. LOBBYING RESTRICTIONS.
Section 710 of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is amended--
(1) by striking ``No funds'' and inserting the
following:
``(a) In General.--No funds'';
(2) by inserting ``or to lobby'' after
``elections''; and
(3) by adding at the end the following:
``(b) Assessments.--
``(1) In general.--Subject to paragraph (2), no
funds derived from assessments collected by the
Alliance under section 707 shall be used, directly or
indirectly, to influence Federal, State, or local
legislation or elections, or the manner of
administering of a law.
``(2) Information.--The Alliance may use funds
described in paragraph (1) to provide information
requested by a Member of Congress, or an official of
any Federal, State, or local agency, in the course of
the official business of the Member or official.''.
SEC. 12409. NONCOMPLIANCE.
Section 712 of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is amended by
adding at the end the following:
``(g) Noncompliance.--If the Alliance, a qualified State
association, or any other entity or person violates this title,
the Secretary shall--
``(1) notify Congress of the noncompliance; and
``(2) provide notice of the noncompliance on the
Alliance website.''.
SEC. 12410. SUNSET.
Section 713 of the National Oilheat Research Alliance Act
of 2000 (42 U.S.C. 6201 note; Public Law 106-469) is amended by
striking ``9 years'' and inserting ``18 years''.
And the Senate agree to the same.
From the Committee on Agriculture, for
consideration of the House amendment and the
Senate amendment, and modifications committed
to conference:
Frank D. Lucas,
Randy Neugebauer,
Mike Rogers of Alabama,
Michael K. Conaway,
Glenn Thompson of Pennsylvania,
Austin Scott of Georgia,
Eric A. ``Rick'' Crawford,
Martha Roby,
Kristi L. Noem,
Jeff Denham,
Rodney Davis of Illinois,
Collin C. Peterson,
Mike McIntyre,
Jim Costa,
Timothy J. Walz,
Kurt Schrader,
Suzan K. DelBene,
Gloria Negrete McLeod,
Filemon Vela,
From the Committee on Foreign Affairs, for
consideration of title III of the House
amendment, and title III of the Senate
amendment, and modifications committed to
conference:
Edward R. Royce,
Tom Marino,
Eliot L. Engel,
From the Committee on Ways and Means, for
consideration of secs. 1207 and 1301, of the
House amendment, and secs. 1301, 1412, 1435 and
4204 of the Senate amendment, and modifications
committed to conference:
Dave Camp,
Sam Johnson of Texas,
For consideration of the House amendment and
the Senate amendment, and modifications
committed to conference:
Steve Southerland II,
Marcia L. Fudge,
Managers on the Part of the House.
Debbie Stabenow,
Patrick J. Leahy,
Tom Harkin,
Max Baucus,
Sherrod Brown,
Amy Klobuchar,
Michael F. Bennet,
Thad Cochran,
Saxby Chambliss,
John Boozman,
John Hoeven,
Managers on the Part of the Senate.
Joint Explanatory Statement of the Committee of Conference
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the House to the amendment of the Senate to
the bill (H.R. 2642), to provide for the reform and
continuation of agricultural and other programs of the
Department of Agriculture through fiscal year 2018, and for
other purposes, submit the following joint statement to the
House and the Senate in explanation of the effect of the action
agreed upon by the managers and recommended in he accompanying
conference report:
The Senate amendment struck all of the House bill after
the enacting clause and inserted a substitute text.
The House amendment struck out that matter proposed to be
inserted by the Senate amendment and inserted a substitute
text.
The House recedes from its amendment to the amendment of
the Senate and agrees to the same with an amendment that is a
substitute for the House amendment and the Senate amendment.
The difference between the House amendment, the Senate
amendment, and the substitute agreed to in conference are noted
below, except for clerical corrections, conforming changes made
necessary by agreements reached by the conferees, and minor
drafting and clarifying changes.
Title I--Commodities
(1) Repeal of Direct Payments
Section 1101 of the House bill repeals direct payments
effective with the 2014 crop year. The section continues direct
payments for the 2013 crop year for all covered commodities and
peanuts, consistent with the extension of the 2008 Farm Bill.
The section continues direct payments for the 2014 and 2015
crop years for upland cotton only except that the term
``payment acres'' is amended to mean the following: (1) for
crop year 2014, 70 percent of the base acres of upland cotton
on a farm on which direct payments are made; and (2) for crop
year 2015, 60 percent of the base acres of upland cotton on a
farm on which direct payments are made. (Section 1101)
The Senate amendment, in section 1101, repeals direct
payments effective with the 2014 crop year. The section
continues direct payments for the 2013 crop year for all
covered commodities (except pulse crops) and peanuts. (Section
1101)
The Conference substitute adopts the House provision with
an amendment to delete the continued application for the 2014
and 2015 crop years. (Section 1101)
Transition assistance for producers of upland cotton
The House bill, in section 1101, continued application of
direct payments to producers of upland cotton as a transition
to STAX, including on 70 percent of base acres in the 2014 crop
year and on 60 percent of base acres in the 2015 crop year.
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
allowing for a transition payment but not through a
continuation of the Direct Payment or any portion thereof. The
section provides transition payments to producers of upland
cotton in light of the repeal of direct payments, the
ineligibility of cotton producers for PLC or ARC, and the
delayed implementation of STAX. The section provides that
transition payments will be made with respect to the 2014 crop
year to upland cotton producers with cotton base in the 2013
crop year, and with respect to the 2015 crop year to upland
cotton producers with base in the 2013 crop year and who are
located in counties where STAX is not available for that crop
year. The transition assistance rate is equal to the product
obtained when multiplying the June 12, 2013 midpoint estimate
for the marketing year average price of upland cotton for the
marketing year beginning August 1, 2013 less the December 10,
2013 midpoint estimate for the marketing year average price of
upland cotton for the marketing year beginning August 1, 2013
as contained in the applicable WASDE report published by USDA
and the national program yield for upland cotton of 597 pounds
per acre. The section provides that the amount of transition
assistance shall be equal to the product obtained when
multiplying, for the 2014 crop year, 60 percent, and for the
2015 crop year, 36.5 percent, of the cotton base acres in
effect for crop year 2013; the transition assistance rate in
effect for the particular crop year and the payment yield for
upland cotton under section 1103(c)(3) of the 2008 Farm Bill
divided by the national program yield of 597 pounds per acre.
The section requires transition payments to be made on October
1 or as soon as practicable thereafter. The section applies the
same pay limits to this transition assistance as was applied to
section 1103 of the 2008 Farm Bill. The section provides that
the pay limits provided for under the 2014 Farm Bill do not
apply to transition payments and transition payments received
under this section shall not count toward pay limits under the
2014 Farm Bill limits. (Section 1119)
(2) Definitions
The House bill defines terms necessary for implementation
of this Act: actual county revenue, base acres, county revenue
loss coverage trigger, covered commodity, effective price,
extra long staple cotton, farm base acres, medium grain rice,
midseason price, other oilseed, payment acres, payment yield,
price loss coverage, producer, pulse crop, reference price,
revenue loss coverage, Secretary, state, temperate Japonica
rice, transitional yield, United States, and United States
premium factor. (Section 1104)
The Senate amendment defines terms necessary for
implementation of this Act: actual crop revenue, adverse market
payment, agriculture risk coverage guarantee, agriculture risk
coverage payment, average individual yield, base acres, county
coverage, covered commodity, eligible acres, extra long staple
cotton, individual coverage, medium grain rice, other oilseed,
payment acres, payment yield, producer, pulse crop, state,
reference price, transitional yield, United States, and United
States premium factor. (Section 1104)
The Conference substitute defines the terms necessary for
implementation of this Act: actual crop revenue, agriculture
risk coverage, agriculture risk coverage guarantee, base acres,
county coverage, covered commodity, effective price, extra long
staple cotton, generic base acres, individual coverage, medium
grain rice, other oilseed, payment acres, payment yield, price
loss coverage, producer, pulse crop, reference price,
Secretary, state, temperate Japonica rice, transitional yield,
United States, and United States premium factor. (Section 1111)
The Managers intend that, for purposes of the
reallocation of base acres under section 1112; the
establishment of a reference price (as required under section
1116(g)) and an effective price pursuant to section 1116; and
the determination of the actual crop revenue and agriculture
risk coverage guarantee pursuant to section 1117, medium and
short grain rice produced in California shall be deemed
Temperate Japonica Rice. For all other purposes, the Managers
intend that Temperate Japonica Rice be treated as medium grain
rice.
Payment Acres
The House bill, in the definitions section, provides that
payment acres for price loss coverage and revenue loss coverage
means 85 percent of total acres planted for the year to each
covered commodity on a farm and 30 percent of total acres
approved as prevented from being planted, except that the total
of payment acres may not exceed farm base acres. The provision
requires the Secretary to reduce payment acres applicable to
each crop proportionately. The provision excludes from the term
payment acres any crop subsequently planted during the same
crop year on the same land for which the first crop is eligible
for payments unless the crop was approved for double cropping.
(Section 1104)
The Senate bill, in the definitions section, provides
that payment acres means 85 percent of the base acres for a
covered commodity on a farm on which adverse market payments
are made. (Section 1104)
The Conference substitute adopts the House provision with
modifications. The section establishes payment acres for both
price loss coverage and agriculture risk coverage for each
covered commodity on a farm at 85 percent of the sum of the
total base acres for each covered commodity on the farm and any
generic base acres on the farm planted to the covered commodity
for the crop year. The section establishes payment acres for
individual coverage under agriculture risk coverage at 65
percent of the sum of total base acres and any generic base
acres planted to a covered commodity for the crop year. The
section provides that price loss coverage and agriculture risk
coverage payments are made only with respect to generic base
acres planted to a covered commodity for the crop year. The
section provides that if a single covered commodity is planted
on generic base acres and the total acreage exceeds that
generic base, the generic base acres are attributed to that
covered commodity in an amount equal to the total number of
generic base acres. The section provides that if multiple
covered commodities are planted to generic base acres and the
total number of acres planted exceeds generic base, the generic
base acres are attributed to each of the covered commodities on
a pro rata basis to reflect the ratio of the acreage planted to
a covered commodity on the farm to the total acreage planted to
all covered commodities on the farm. The section provides that
if the total number of acres planted to all covered commodities
does not exceed the generic base acres then the number of acres
planted to a covered commodity is attributed to that covered
commodity. The section provides that when generic base acres
are planted to a covered commodity or acreage planted to a
covered commodity is attributed to generic base, the generic
base acres are in addition to other base acres on the farm. The
section further provides that the quantity of payment acres may
not include any crop subsequently planted during the same crop
year on the same land for which the first crop is eligible for
price loss coverage or agriculture risk coverage unless the
crop was approved for double cropping. The section prohibits
price loss coverage or agriculture risk coverage payments to a
producer on a farm if base acres are 10 acres or less, except
in the case of socially disadvantaged or limited resource
farmers and ranchers. The section requires that for purposes of
calculating payment acres, base acres must be reduced in any
crop year when fruits, vegetables (other than mung beans and
pulse crops), or wild rice are planted on base acres. In the
case of price loss coverage payments and agriculture risk
coverage payments using county coverage, the reduction will be
equal to the acreage planted to fruits, vegetables (with the
two exceptions), or wild rice in excess of 15 percent of base
acres; 35 percent of base acres in the case of individual level
agriculture risk coverage payments. No such reduction is
required under the section where the crops are grown solely for
conservation purposes and not for use or sale, in any region in
which there is a history of double cropping these crops with
covered commodities and the crops were double cropped on base
acres, or where the crops were planted on generic base acres.
(Section 1114)
(3) Base Acres
The House bill, in section 1105(a), requires the
Secretary to provide for appropriate adjustments to base acres
for covered commodities and cotton when a Conservation Reserve
Program (CRP) contract expires or is voluntarily terminated,
when cropland is released from coverage under a conservation
reserve contract, or when the producer has eligible oilseed
acreage as the result of the Secretary designating additional
oilseeds which must be determined in the same manner as under
the 2008 Farm Bill. Section 1105(a) further requires that, for
the crop year in which an adjustment in base is made, an owner
of a farm elect price loss coverage or revenue loss coverage
with respect to acreage added to the farm under an adjustment
in base acres or a prorated payment under the conservation
reserve contract, but not both. Section 1105(b) requires the
Secretary to reduce the base acres for 1 or more covered
commodities or cotton so the sum of base acres does not exceed
the actual crop acreage of the farm. For purposes of carrying
out any required reduction, the provision requires the
Secretary to include any acreage enrolled in CRP or WRP, or
successor programs, any other acreage enrolled in a federal
conservation program for which payments are made in exchange
for not producing a crop, or any eligible oilseed acreage if
the Secretary designates additional oilseeds. The section
requires the Secretary to allow the owner of the farm to select
base acres against which any reduction is to be made. The
section requires an exception to be made in regard to any
required reduction in the case of double cropping. Section
1105(c) authorizes an owner on a farm to reduce base acres at
any time and the reduction will be permanent. Finally, the
section requires the Secretary to proportionately reduce base
acres on a farm for land that has been subdivided and developed
for multiple residential units or non-farming uses if the land
is unlikely to return to agriculture uses unless the producers
on the farm demonstrate that the land remains devoted to
agricultural production or is likely to be returned to previous
agriculture use. The Secretary is required to establish
procedures to identify such lands. (Section 1105)
The Senate amendment is similar to the House provision
except the section refers to covered commodities rather than
covered commodities and cotton. The provision also allows an
adjustment in base acres if a conservation reserve contract was
terminated or expired, or if cropland is released from a
conservation reserve contract, between October 1, 2012 and the
date of enactment of the 2014 Farm Bill; if the producer has
eligible pulse crop acreage determined in the same manner as
eligible oilseed acreage under section 1101(a)(2) of the 2002
Farm Bill; or when the producer has eligible oilseed acreage as
the result of the Secretary designating additional oilseeds
which must be determined in the same manner as under the 2002
Farm Bill. The section includes the same special conservation
reserve acreage payment rules as the House provision except it
is with respect to a producer rather than owner of a farm. The
section provides peanut producers with a one-time opportunity
to adjust peanut base acres. The section, in regard to
prevention of excess base acres, is the same as the House
provision except the section refers to covered commodities
rather than covered commodities and cotton relative to required
reductions to base. With regard to other acreage to be included
as part of any required reduction, the section refers to the
Agricultural Conservation Easement Program instead of WRP or
successor programs; includes any eligible pulse crop acreage
which must be determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the 2002 Farm Bill; and
includes any eligible oilseeds if the Secretary designates
additional oilseeds determined under section 1101(a)(2) of the
2002 Farm Bill rather than subsection (a)(1)(c) of the 2014
Farm Bill. The section allows the producer to decide what base
acres to reduce if any reduction is required rather than the
owner of the farm. Similarly, the section allows the farmer to
elect to reduce base acres at any time, rather than allowing
the owner of the farm to do so. The section requiring the
Secretary to proportionally reduce base acres for land not in
agricultural use refers to covered commodities rather than
covered commodities and cotton. The section also requires a
report to Congress that only farmers received Farm Bill
payments. (Section 1105)
The Conference substitute adopts the House provision with
an amendment to allow owners of a farm to retain base acres,
including generic base acres, or to reallocate all base acres,
other than generic base. The section provides notice
requirements concerning the option to retain or reallocate base
and provides that failure to make an election results in the
retention of existing base acres. The section provides that an
election to retain the number of acres established sections
1001 and 1301 of the 2008 Farm Bill, as adjusted pursuant to
sections 1101, 1108, and 1302 of the 2008 Farm Bill in effect
as of September 30, 2013. The section provides that generic
base is automatically retained. The section authorizes an owner
of a farm to reallocate all of the base acres for covered
commodities among those covered commodities planted on the farm
at any time during the 2009 through 2012 crop years. The
section requires that the reallocation of base acres be in
proportion to the ratio of the 4-year average of the acreage
planted on the farm to each covered commodity for harvest,
grazing, haying, silage, or other similar purposes for the 2009
through 2012 crop years and any acreage that the producers were
prevented from planting during the same years because of
drought, flood, natural disasters, or other condition beyond
the control of producers as determined by the Secretary, to the
4-year average of the acreage planted on the farm to all
covered commodities for harvest, grazing, haying, silage or
other similar purposes for the crop years and any acreage on
the farm that the producers were prevented from planting during
the crop years to covered commodities for the same reasons
prescribed above. The section requires that generic base is
retained and may not be reallocated. The section prohibits the
Secretary from excluding any year in which a covered commodity
was not planted for purposes of determining the 4-year average.
The section provides that if acreage that was planted or
prevented from being planted was devoted to another covered
commodity in the same crop year (other than under an
established practice of double cropping), the owner may elect
the commodity to be used for that crop year in determining the
4-year average but may not include both the initial commodity
and the subsequent commodity. The section requires that the
reallocation of base acres may not result in a total number of
base acres (including generic base) for the farm that exceed
the number of base acres in effect on the farm on September 30,
2013. The section requires that the election made by an owner
on a farm or deemed to be made applies to all covered
commodities on the farm. With respect to provisions concerning
the adjustment of base acres, prevention of excess base acres,
and reduction in base acres, reference is made to generic base
instead of cotton. (Section 1112)
(4) Payment yields
The House bill maintains the provisions of section 1102
of the 2008 Farm Bill except it drops the directive that the
Secretary establish yields for eligible pulse crops and directs
the Secretary to establish yields for designated oilseeds not
established under section 1102 of the 2008 Farm Bill rather
than the 2002 Farm Bill. The section requires that if no
payment yield is otherwise established the Secretary must
establish an appropriate payment yield. In establishing
appropriate payment yields, the Secretary is required to take
into consideration payment yields applicable to the covered
commodity for similarly situated farms. The section authorizes
owners to update yields on a commodity-by-commodity basis for
purposes of price loss coverage payments. Owners must make an
election to update yields to be in effect beginning with the
2014 crop year. The section requires that payment yields under
any updated yield would be 90 percent of the average of the
yield per planted acre for the 2008 through 2012 crop years, as
determined by the Secretary, excluding crop years in which the
acreage planted to the commodity was zero. The section provides
that if the yield per planted acre for any of the 2008 through
2012 crop years was less than 75 percent of the average of the
2008 through 2012 county yields, the Secretary must assign a
yield for the crop year equal to 75 percent of the average of
the 2008 through 2012 county yield for purposes of determining
the average yield under an update. The section requires that,
in the case of a yield update, if no payment yield is otherwise
established the Secretary must establish an appropriate payment
yield. In establishing appropriate payment yields in the case
of an update, the Secretary is required to take into
consideration payment yields applicable to the covered
commodity for similarly situated farms. (Section 1106)
The Senate amendment contains similar provisions relative
to yields for designated oilseeds but adds eligible pulse crops
and refers to section 1102 of the 2002 Farm Bill rather than
section 1102 of the 2008 Farm Bill. The provision also allows a
yield update for rice and a yield update for peanuts if the
producer elected to update base. (Section 1106)
The Conference substitute adopts the House provision
except that the Secretary shall provide for the establishment
of a yield for any designated oilseed for which a payment yield
was not established under the 2008 Farm Bill for purposes of
price loss coverage only; the substitute omits the requirement
that in the case of establishing yields for designated
oilseeds, if historic yield data is not available, the
Secretary must use a specified ratio for dry peas; and the
language clarifies that the payment yield update opportunity is
with respect to each covered commodity, and that the election
to update yields would take effect beginning with the 2014 crop
year. (Section 1113)
For those producers with no payment yield, the Managers
intend that, with respect to the yield update offered under
section 1113, the Secretary will assign the producer a payment
yield using similarly situated farms prior to offering the
opportunity to update their yield.
(5) Farm Risk Management Election
The House bill requires the Secretary to make required
payments under Price Loss Coverage (PLC) or Revenue Loss
Coverage (RLC) with respect to covered commodities of producers
on a farm except that PLC or RLC payments may not be made on
farms with 10 acres or less of planted acres of a covered
commodity unless in the case of socially disadvantaged or
limited resource farmers or ranchers. In the case of PLC, for
the 2014 and subsequent crop years the Secretary is required to
make payments on a covered commodity when the effective price
for the crop year is less than the reference price, with the
effective price being the higher of the midseason price or the
national average loan rate for the covered commodity. The
section provides a payment rate equal to the difference between
the reference price and the effective price and that the
payment amount is to be equal to the product when multiplying
the payment rate, the payment yield, and the payment acres. The
section requires that payments be made on October 1 or as soon
as practicable thereafter. The Secretary is required to use an
all-barley price when determining the effective price for
barley, and a reference price for Temperate Japonica Rice that
is 115 percent of the reference price for long grain and medium
grain rice. Reference prices, provided in the definitions
section, are: wheat, $5.50 per bushel; corn, $3.70 per bushel;
grain sorghum, $3.95 per bushel; barley, $4.95 per bushel;
oats, $2.40 per bushel; long grain rice, $14.00 per cwt.;
medium grain rice, $14.00 per cwt.; soybeans, $8.40 per bushel;
other oilseeds, $20.15 per cwt.; peanuts $535.00 per ton; dry
peas, $11.00 per cwt.; lentils, $19.97 per cwt.; small
chickpeas, $19.04 per cwt.; large chickpeas, $21.54 per cwt.
The section offers RLC as an alternative to PLC that owners on
the farm have a one-time, irrevocable election to make on a
covered commodity-by-covered commodity basis. The section
provides that if any owners of the farm make different
elections with respect to the same covered commodity, all
owners of the farm will be deemed to have not elected RLC. The
section requires the Secretary to make an RLC payment for the
2014 and subsequent crop years when the actual county revenue
for a covered commodity in a crop year is less than the county
revenue loss trigger for the commodity for the crop year. The
section requires that RLC payments be made on October 1 or as
soon as practicable thereafter. The section provides that
actual county revenue is the product of multiplying the actual
county yield for each planted acre of the covered commodity in
a crop year by the higher of the midseason price or the
national average loan rate for the covered commodity. The
section provides that the county RLC trigger is equal to 85
percent of the benchmark county revenue which is the product of
multiplying the average historical county yield for the most
recent 5 crop years, excluding the high and the low, by the
average national marketing year average price for the most
recent 5 crop years, excluding the high and the low. The
section provides a yield plug of 70 percent of the transitional
yield where historical county yield is less than 70 percent of
that transitional yield, and a price plug, the reference price
for the covered commodity, where the national marketing year
average price is lower than the reference price. The section
provides that the payment rate for RLC is equal to the lesser
of 10 percent of the benchmark county revenue for the covered
commodity for the crop year, or the difference between the
county RLC trigger and the actual county revenue. The section
provides a payment amount equal to the product of the payment
rate multiplied by the payment acres of the covered commodity.
The section imposes duties on the Secretary to ensure that
producers on the farm do not reconstitute the farm to void or
change the election made between PLC and RLC; use all available
information and analysis to check for anomalies in RLC
payments; to provide separate county RLC trigger and actual
county revenue for covered commodities by irrigation practice;
assign a benchmark yield on the basis of yield history of
representative farms in a state, region, or crop reporting
district where the Secretary cannot establish the benchmark
county yield in a county or the yield otherwise determined is
unrepresentative of the average yield for the county; and
ensure that producers on the farm suffered an actual loss when
receiving an RLC payment. The section requires a report to
Congress on the cost of PLC and RLC and their effect on
planting, production, price, and exports. The section also
imposes a cap on total cost of PLC and RLC. (Section 1107)
The Senate amendment authorizes the Secretary to make
Adverse Market Payments (AMP) to eligible producers for each of
the 2014 through 2018 crop years. The section requires a
payment any time that the actual price for a covered commodity
is less than the reference price. The section establishes the
actual price at a level equal to the higher of the national
average market price received during the 12-month marketing
year or the national average loan rate. The actual price for
rice is determined in the same way except separately for long
grain rice and medium grain rice. The section establishes
reference prices at 55 percent of the average national
marketing year average price for the most recent 5 crop years,
dropping the high and the low except that for long grain rice
and medium grain rice the reference price will be $13.30 per
hundredweight and for peanuts the reference price will be
$523.77 per ton. The section provides that the payment rate
will be the difference by which the reference price exceeds the
actual price, and that the payment amount is calculated by
multiplying the payment rate by the payment acres and payment
yield. The section requires the Secretary to determine actual
price and reference price by type or class for sunflowers;
barley, using malting values; and wheat. The section provides
that payments must be made by October 1 or as soon as
practicable thereafter. (Section 1107)
The Senate amendment also authorizes Agriculture Risk
Coverage (ARC) payments for the 2014 through 2018 crop years.
The section requires producers to make a one time, irrevocable
election to receive individual coverage or county coverage
where there is sufficient county data. The election would bind
the producer with respect to all acres under the operational
control of the producer, including acres brought under the
control of the producer after the election is made. Acres no
longer under the producer's operational control after an
election are not subject to the producer's election but the
election of the subsequent producer. The section requires the
Secretary to ensure that producers do not take actions to alter
or reverse their elections. An ARC payment is required whenever
the actual crop revenue for the covered commodity is less than
the ARC guarantee. The section provides that payments are to be
made on October 1 or as soon as practicable thereafter. The
section provides that actual crop revenue is the product of the
multiplication of the actual average individual yield (for
individual coverage) or the actual average yield for the county
(for county coverage) and the higher of the national average
market price received during the 12-month marketing year or, if
applicable, the reference price established for the covered
commodity under section 1107. The section provides that the ARC
guarantee is equal to 88 percent of the benchmark revenue. The
section requires that the benchmark revenue be the product of
multiplying the average individual yield for the most recent 5
crop years, dropping the high and the low (for individual
coverage) or the average county yield for the most recent 5
crop years, dropping the high and the low (for county coverage)
by the average national marketing year average price for the
most recent 5 crop years, excluding the high and the low. The
section provides a 60 percent yield plug for the 2013 and prior
crop years and a 65 percent yield plug for the 2014 and
subsequent crop years. The section establishes a payment rate
equal to the lesser of the amount that the ARC guarantee
exceeds the actual crop revenue or 10 percent of the benchmark
revenue for the covered commodity. The section established a
payment amount at an amount equal to the product obtained by
multiplying the payment rate by 65 percent of the planted
eligible acres and 45 percent of the eligible acres that were
prevented from being planted (for individual coverage) and by
80 percent and 45 percent, respectively (for county coverage).
The section imposes duties on the Secretary including using all
available information and analysis to check for anomalies in
ARC payments; to calculate separate actual crop revenue and ARC
guarantees by irrigation practice; differentiate by type or
class the national average price for sunflowers; barley, using
malting barley values; and wheat; and assign yields on the
basis of yield history of representative farms in the state,
region, or crop reporting districts if the Secretary cannot
establish a county yield if the yield otherwise determined is
unrepresentative of an average yield for the covered commodity.
(Section 1108)
The Conference substitute adopts the House provision with
amendments. The substitute creates a new section, section 1115,
establishing rules for a producer election between PLC and ARC.
For the 2014 through 2018 crop years the substitute requires
all of the producers on a farm to make a 1-time, irrevocable
election to receive price loss coverage on a covered commodity-
by-covered-commodity basis or agriculture risk coverage. The
substitute requires that producers on a farm that elect ARC
must unanimously select whether to receive county coverage on a
covered commodity-by-covered-commodity basis or individual
coverage applicable to all of the covered commodities on the
farm. The substitute provides that if all the producers on a
farm fail to make a unanimous election for the 2014 crop year,
the Secretary may not make any ARC or PLC payments with respect
to the farm for the 2014 crop year and the producers on the
farm will be deemed to have elected PLC for all covered
commodities on the farm for the 2015 through 2018 crop years.
The substitute provides that if all the producers on a farm
select ARC county coverage for a covered commodity, the
Secretary may not make PLC payments to the producers on the
farm for that covered commodity. The substitute provides that
if all the producers on a farm select individual ARC coverage,
the Secretary must consider for purposes of making specified
calculations the producer's share of all farms in the same
State in which the producer has an interest and for which
individual coverage has been selected. Finally, the substitute
requires the Secretary to ensure that producers on a farm do
not reconstitute the farm to void or change an election or
selection made.
The Conference substitute provides, in section 1116, that
if all of the producers on a farm make an election to receive
PLC for a covered commodity or are deemed to have made such an
election, then the Secretary shall make PLC payments to
producers on the farm on a covered commodity-by-covered-
commodity basis if the Secretary determines that, for any of
the 2014 through 2018 crop years, the effective price for a
covered commodity is less than the reference price in a crop
year. The section establishes that the effective price for a
covered commodity is the higher of the national average market
price during the 12-month marketing year or the national
average loan rate. The section provides that the payment rate
is equal to the difference between the reference price and the
effective price. The section further provides that the payment
amount shall be the product of multiplying the payment rate,
the payment yield, and the payment acres and that payments are
to be made by October 1 or as soon as practicable thereafter.
The section requires that the all-barley price is to be used
when determining the effective price for barley, and that the
reference price for Temperate Japonica Rice is 115 percent of
the reference price for long grain or medium grain rice.
Reference prices are the same as provided in the House bill.
The Conference substitute, in section 1117, also includes
the ARC that closely mirrors the Senate provision with some
modifications. The substitute provides that if all producers on
a farm make an election to receive ARC, then ARC payments are
required to be made to producers on the farm when the Secretary
determines that, for any of the 2014 through 2018 crop years,
actual crop revenue is less than the ARC guarantee for a crop
year. The section provides that actual crop revenue for a
county is equal to the product obtained when multiplying the
actual average county yield per planted acre for the covered
commodity and the higher of the national average market price
received during the 12-month marketing year or the national
average loan rate. The section provides that in the case of
individual ARC, the actual crop revenue for a producer for a
crop is based on the producer's share of all covered
commodities planted on all farms in which the producer has an
interest and for which individual coverage has been selected,
to be determined by the Secretary as follows: for each covered
commodity, by obtaining the product of multiplying the total
production of the covered commodity on the farm by the higher
of the national average market price received during the 12-
month marketing year or the national average loan rate; by then
determining the sum of the amounts determined, above, for all
covered commodities on the farm; and then arriving at the
quotient obtained when dividing the amount, immediately above,
by the total planted acres of all covered commodities on the
farms. The section provides that the ARC guarantee for a
covered commodity in a crop year is 86 percent of the benchmark
revenue, which for county coverage is the product obtained by
multiplying the average historical yield for the most recent 5
crop years, excluding the high and the low, by the national
average market price received by producers during the 12-month
marketing year for the most recent 5 crop years, dropping the
high and the low. The section provides that benchmark revenue
for individual coverage is based on the producer's share of all
covered commodities planted on all farms which the producer has
an interest and for which individual coverage has been selected
to be determined by the Secretary as follows: for each covered
commodity for each of the most recent 5 years, the product
obtained by multiplying the yield per planted acre for the
covered commodity on the farm by the national average market
price received by producers during the 12-month marketing year;
for each covered commodity, the average of the revenues
determined above for the most recent 5 crops, dropping the high
and the low; for each of the 2014 through 2018 crop years, the
sum of the amounts determined immediately above for all covered
commodities on the farms, but adjusted to reflect the ratio
between the total number of acres planted on the farms to a
covered commodity and the total acres of all covered
commodities planted on the farms. The section provides a yield
plug of 70 percent of the transitional yield when the yield per
planted acre or historical county yield for any of the 5 most
recent crop years is less than 70 percent of the transitional
yield, and a price plug equal to the reference price for the
covered commodity when the national average market price
received by producers during the 12-month marketing year for
any of the 5 most recent crop years is lower than the reference
price. The section establishes that the payment rate is equal
to the lesser of the amount that the ARC guarantee exceeds the
actual crop revenue or 10 percent of the benchmark revenue. The
section further provides that the payment amount is to be
determined by multiplying the payment rate by the payment acres
determined under section 1114, and that payments are required
to be made by October 1 or as soon as practicable thereafter.
The section imposes duties on the Secretary to use all
available information and analysis to check for anomalies in
ARC payments; to provide separate actual crop revenue and ARC
guarantees for a covered commodity by irrigation practice;
assign an individual yield for a farm on the basis of the yield
history of representative farms in the state, region, or crop
reporting district if the farm has planted acreage in a
quantity that is insufficient to calculate a representative
average yield for the farm; and assign a benchmark county yield
for each planted acre on the basis of the yield history of
representative farms in the state, region, or crop reporting
district where the Secretary cannot establish the actual or
benchmark county yield or the yield calculated is an
unrepresentative average yield. (Sections 1115, 1116, and 1117)
The Managers recognize that all producers on the farm
have a one-time opportunity to elect either PLC or ARC for each
crop on the farm on a commodity-by-commodity basis, with the
exception that if a producer elects individual-level ARC, the
producer must elect individual-level ARC for all crops on the
farm. However, the Managers intend for USDA to have an annual
signup to participate in the program for the applicable year
based on the producer election that was made. The Managers
stress that FSA has always had an annual signup into available
programs, which is simply a decision to participate in a given
year. Absent an annual signup, producers may well fail to
notify FSA of ownership changes, complete AGI certifications,
and other information required to be provided by the producer
to FSA. The signup period is the one time each year where
producers are certain to complete all of the necessary records
and forms.
(6) Producer Agreements
The House bill, in section 1108, retains a producer
agreement requirement from the 2008 Farm Bill except that
benefits under this subtitle are referred to rather than 2008
subtitle programs and planting flexibility, agricultural and
conserving use, and production report requirements are dropped,
as is a provision that prohibits any benefit penalties against
a producer for an inaccurate acreage or production report
unless the producer knowingly and willfully falsified the
reports.
The Senate amendment is similar except agricultural and
conserving uses and production reports requirements and
prohibition on penalties are not dropped as compared to the
2008 Farm Bill. The section includes a data reporting
requirement that the Secretary must use data reported by the
producer to meet crop insurance requirements to meet acreage
reporting and production reporting requirements, and the
section clarifies that producers are required to meet the
noxious weed control requirement if the agriculture or
conserving use involves non-cultivation of any portion of land
referenced in the agriculture and conserving use requirement
provision.
The Conference substitute adopts the House provision
except agricultural and conserving use requirements under the
2008 Farm Bill are retained and certain production reports are
required. (Section 1118)
(7) Senate Amendment
The Senate amendment provides that Sections 1104
(Definitions) through 1109 (Producer Agreements) shall be
effective beginning with the 2014 crop year of each covered
commodity through the 2018 crop year. (Section 1110)
The House bill provides no comparable provision and
instead indicates in each section that the provision applies
for the 2014 and each subsequent crop year.
The Conference substitute adopts the Senate effective
period for sections 1111 (Definitions) through 1118 (producer
agreements).
(8) Availability of marketing assistance loans
The House bill extends the 2008 Farm Bill's provision
requiring the availability of nonrecourse marketing assistance
loans for loan commodities for the 2014 and succeeding crop
years except that peanuts are included in the definition of
loan commodity rather than there being a separate section of
the law providing loan assistance for peanuts. The special
rules for peanuts authorized under the 2008 Farm Bill are also
carried over into this section. (Section 1201)
The Senate amendment is the same as the House bill except
that the provision is reauthorized through 2018 and requires
producers to agree to use the land on the farm for an
agriculture or conserving use, and to effectively control
noxious weeds and maintain the land in accordance with sound
agricultural practices if it involves the noncultivation of any
portion of the land. The Secretary is required under the
provision to issue rules necessary to enforce compliance. The
section also authorizes the Secretary to modify the
requirements of this section if the modification is consistent
with the purposes of this subsection. (Section 1201)
The Conference substitute adopts the House provision
except that the provision of loans is required for the 2014
through 2018 crop years. (Section 1201)
The Managers intend that Subtitle B, including but not
limited to the Marketing Assistance Loan Program, the Economic
Adjustment Assistance Program, and the ELS Competitiveness
Program, will be administered in the same manner as under the
2008 Farm Bill.
(9) Loan Rates for Nonrecourse Marketing Assistance Loans
The House bill extends the 2008 Farm Bill's provision
establishing loan rates for nonrecourse marketing assistance
loans for the 2014 and succeeding crop years except the loan
rate for upland cotton is established at the simple average of
the adjusted prevailing world price for the two immediately
preceding marketing years, as determined by the Secretary and
announced October 1 preceding the next domestic plantings but
in no case may the loan rate be less than 47 cents per pound or
more than 52 cents per pound. The section also includes an
extension of the 2008 Farm Bill's loan rate for peanuts.
(Section 1202)
The Senate amendment is similar to the House provision
except that the loan rates are extended through the 2018 crop
year and the minimum loan rate for upland cotton is established
at 45 cents per pound. (Section 1202)
The Conference substitute adopts the Senate provision.
(Section 1202)
The Managers stress that the loan rate reduction
authority granted under this section is intended to address the
cotton domestic support elements of Brazil's dispute with the
United States (WT/DS 267) before the World Trade Organization.
This authority is in addition to other reforms to U.S. cotton
policy made by the 2014 Farm Bill, including repeal of the
suite of commodity policies made available to cotton producers
under the 2002 and 2008 Farm Bills, the ineligibility of cotton
producers to participate in successor policies contained in the
2014 Farm Bill, the authorization of expenditure of funds in
connection with certain research and development activities on
behalf of Brazilian cotton, and other reforms, including with
respect to the export credit guarantee elements of the dispute,
statutory reforms to the GSM 102 Export Credit Guarantee
Program. The Managers intend that these reforms lead to a
negotiated resolution of the dispute.
(10) Repayment of Loans
The House bill generally extends the repayment of loan
provisions of the 2008 Farm Bill for the 2014 and succeeding
crop years except the section incorporates peanuts consistent
with repayment provisions of the 2008 Farm Bill for that crop,
and provides for a 10 percent reduction in cotton storage
payment rates as compared to the rates in effect for the 2006
crop year. (Section 1204)
The Senate bill is similar to the House Bill provisions
except that the provision is authorized for the 2014 through
2018 crop years and cotton storage payment rates are reduced by
20 percent as compared to the rates in effect for the 2006 crop
year. (Section 1204)
The Conference substitute adopts the House provision
except that the provision is reauthorized for the 2014 through
2018 crop years. (Section 1204)
(11) Loan Deficiency Payments
The House bill extends the provision in the 2008 Farm
Bill requiring loan deficiency payments for the 2014 crop year
and each succeeding crop year. (Section 1205)
The Senate bill is similar to the House bill except loan
deficiency payments are authorized for the 2014 through 2018
crop years. (Section 1205)
The Conference Substitute adopts the Senate provision.
(Section 1205)
(12) Payments in Lieu of LDPs for Grazed Acreage
The House bill extends such provisions of the 2008 Farm
Bill for the 2014 and succeeding crop years but used the
payment yield under price loss coverage rather than the direct
payment for purposes of calculating payment quantity. (Section
1206)
The Senate amendment is similar except the provision
applies to the 2014 through 2018 crop years and uses the
payment yield for the agriculture risk coverage program as well
as the payment yield for the 2008 Farm Bill in the case of a
farm without a payment yield for wheat. (Section 1206)
The Conference substitute adopts the House provision
except the payments are required for the 2014 through 2018 crop
years. (Section 1206)
(13) Special Marketing Loan Provisions for Upland Cotton
The House bill extends the provision of the 2008 Farm
Bill authorizing the President to carry out a special import
quota starting August 1, 2014 and a limited global import
quota. The section authorizes the use of official data of USDA
if available or estimates of the Secretary in carrying out the
section. The section also provides for economic adjustment
assistance to users of upland cotton at 3 cents per pound
beginning August 1, 2013. (Section 1207)
The Senate provision provides for economic adjustment
assistance similar to the House except the 3 cents per pound
amount begins August 1, 2012. (Section 1207)
Conference substitute adopts the House provision except
the starting date of the special import quota is August 1, 2014
and the 3 cent per pound economic adjustment assistance begins
August 1, 2013. (Section 1207)
(14) Special Competitive Provisions for Extra Long Staple Cotton
The House bill permanently extends current law in this
regard. (Section 1208)
The Senate amendment extends current law through July 31,
2019, beginning on the date of enactment of this Act. (Section
1208)
The Conference substitute adopts the House provision
except that the program is authorized beginning on the date of
enactment through July 31, 2019. (Section 1208)
(15) Availability of Recourse Loans for High Moisture Feed Grains and
Seed Cotton
The House bill extends the provision of the 2008 Farm
Bill providing recourse loans for the 2014 and each succeeding
crop year except for purposes of calculating the quantity of
corn or grain sorghum, the lower of the farm program payment
yield used to make payments under the new Farm Bill or the
actual yield is used instead of the lower of the
countercyclical payment yield under the 2008 Farm Bill or the
actual yield. (Section 1209)
The Senate amendment is similar except recourse loans are
extended for the 2014 through 2018 crop years and the
calculation is based on the lower of the actual average yield
used to make payments under the new Farm Bill or the actual
yield. (Section 1209)
The Conference substitute adopts the House provision
except that the recourse loans are required for the 2014
through 2018 crop years.
(16) Adjustments of Loans
The House bill is the same as current law except any
adjustments must be made so the average loan level for the
commodity will be equal to the level of support determined in
accordance with this subtitle and subtitle C and revisions to
quality adjustments for upland cotton provision is deleted.
(Section 1210)
The Senate amendment is similar except the average loan
level must be equal to the level of support determined under
this subtitle and subtitles C through E, revisions to quality
adjustment for upland cotton provision is retained, and
authority is provided to revise or revoke any actions taken
pursuant to that revision authority. (Section 1210)
The Conference substitute adopts the House provision.
(17) Sugar Policy
The House bill permanently extends current sugar policy
for the 2012 crop year and each succeeding crop year. (Section
1301)
The Senate amendment extends current sugar policy for
each of the 2014 through 2018 crop years. (Section 1301)
The Conference substitute adopts the Senate provision,
extending current sugar policy for the 2012 through 2018 crop
years.
(18) Definitions for the Dairy Producer Margin Insurance Program
The House bill defines the new terms and establishes the
Dairy Producer Margin program in the new section 1511(a) of the
Food Conservation and Energy Act of 2008. (Section 1401)
The Senate amendment is similar and gives the definitions
for the ``Dairy Margin Protection Program'' and the ``Dairy
Market Stabilization Program''. (Section 1401)
The Conference substitute adopts the House provision with
an amendment. The amendment replaces the term ``Dairy
Producer'' with ``Dairy Operation''; the ``Margin Insurance
Program'' is instead referred to as the ``Margin Protection
Program''; and definitions are included for ``Margin Protection
Program Payment'' and ``Secretary''. (Section 1401)
(19) Calculation of Average Feed and Actual Dairy Production
The House bill establishes the calculation for the
average feed cost and actual dairy producer margins. (Section
1401)
The Senate amendment is similar to the House provision
but it includes provisions unique to the stabilization program.
(Section 1402)
The Conference substitute adopts the House provision with
an amendment to include Senate language related to the time for
calculation. (Section 1402)
(20) Establishment of Dairy Producer Margin Insurance Program
The House bill establishes the Dairy Producer Margin
Insurance Program to be effective October 1, 2013. (Section
1401)
The Senate amendment similarly establishes the Dairy
Product Margin Protection Program, but requires the program be
effective not later than 120 days after the effective date of
this subtitle. (Section 1411)
The Conference substitute directs the Secretary to
establish a margin protection program for dairy producers not
later than September 1, 2014. (Section 1403)
(21) Eligibility and Registration of Dairy Producers for Margin
Insurance Program
The House bill requires that all dairy producers in the
United States shall be eligible to participate in the margin
insurance program. It sets out an annual registration process
and provides for retroactivity of the program. (Section 1401)
The Senate amendment is similar to the House provision
but does not provide for retroactivity of the program. It
instead provides for a transition period from MILC to the
Production Margin Protection Program and describes rules and
restrictions for producers during this period. It establishes
an annual administrative fee schedule for producers to
participate in the Production Margin Protection Program. It
also establishes a fund for the use of fees collected and
authorizes a range of uses for this fund. It prohibits a
producer from participating in both the Livestock Margin
Program and the Production Margin Protection Program. (Section
1412)
The Conference substitute adopts the Senate provision
with an amendment. The amendment eliminates the tiered fee
structure and waiver and instead requires that all
participating producers pay a single annual fee of $100. The
Secretary is authorized to specify the manner and form in which
producers may register. (Section 1404)
(22) Production History of Participating Dairy Producers
The House bill requires the Secretary to determine the
production history of each producer in the margin insurance
program and allows for annual updates. Annual updates are based
on the producer's highest annual milk marketings during any of
the 3 immediately preceding calendar years. It provides a
mechanism for the Secretary to determine production history of
producers in operation for less than one year. It lists the
required information a participating dairy producer must submit
to the Secretary for establishing production history. It
details how production history is transferred by sale or by
lease. It prohibits the producer to whom the production history
is transferred from choosing a different coverage level. It
prohibits the Secretary from transferring production history
established for a new entrant to another person. It allows the
production history of a producer to move to a new location with
the producer. (Section 1401)
The Senate amendment is specific to basic margin
protection which has a one-time registration without
opportunity for annual updating of the producer's production
history. It requires the Secretary to determine the actual
production history of a producer who purchases supplemental
production coverage. It sets out a new producer's options to
determine basic production history. Similar to the House bill,
it lists the required information a participating dairy
producer must submit to the Secretary for establishing
production history. It requires the Secretary to specify how
production history is to be transferred. Similar to the House
bill, it prohibits the producer to whom the production history
is transferred from choosing a different coverage level and
also extends the prohibition to transfers within the
supplemental production margin protection program. It allows
the basic and annual production history of a producer to move
to a new location with the producer. (Section 1413) It allows a
participating dairy operation to purchase supplemental
production margin protection. (Section 1415))
The Conference substitute adopts the House provision with
an amendment. It sets production history equal to the highest
annual milk marketings from the 2011, 2012, or 2013 calendar
years. The Secretary shall adjust the production history to
reflect any increase in the national average milk production.
New dairy operations shall elect one of two methods to
establish production history: (1) the volume of actual milk
marketings for the months the dairy operation has been in
operation extrapolated to a yearly amount; or (2) an estimate
of the actual milk marketings based on herd size relative to
the national herd average data published by the Secretary.
(Section 1405)
(23) Margin Insurance
The House bill allows a participating dairy producer to
annually purchase margin insurance. The producer shall elect a
coverage level between $4 and $8. It requires a producer to
select a coverage percentage between 25 percent and 80 percent
of production history. It sets the margin insurance payment for
a consecutive 2-month period equal to the product of the
shortfall in actual margins below a chosen threshold, the
coverage percentage selected by the producer, and the lesser of
the producer's actual marketings or actual production history.
(Section 1401)
The Senate amendment requires the Secretary to make a
payment whenever the margin for a 2-month period is less than
$4 per cwt. It sets the basic margin production payment amount
equal to the product of multiplying the difference between the
average actual product margin and $4 by the lesser of: 80% of
production history, divided by 6; or the actual quantity of
milk marketed by the dairy operation during the 2 month period.
(Section 1414)
The Conference substitute adopts the House provision with
an amendment. The amendment allows for coverage percentages
between 25 percent and 90 percent. (Section 1406)
(24) Producer Premiums
The House bill requires a participating producer to pay
an annual premium. It sets the premium schedule for the first 4
million pounds of milk. It also sets the premium schedule for
production in excess of 4 million pounds. It establishes a
schedule for the timing of premium payments including options
for subsequent years, single annual payments, and semi-annual
payments. It sets out the producer premium obligations
including a pro-ration of the first year obligations, and a
legal obligation to pay the premium except in the case of death
and retirement. It requires that a producer shall receive a
margin insurance payment whenever the average actual producer
margin is less than the coverage threshold selected by the
producer. It requires the Secretary to make margin insurance
payments when the average actual production for a consecutive
two-month period is less than the coverage level threshold
selected by the dairy producer. It allows the Secretary to use
the funds of the CCC to carry out this section. It establishes
that the program start date is October 1, 2013. (Section 1401)
The Senate amendment is similar to the House bill, but
contains slight differences in premiums. It requires the
Secretary to provide for more than one method by which a dairy
operation can pay premiums. Unlike the House bill, it allows
the Secretary to waive the legal obligation to pay the premium
in case of death, retirement, or other circumstances as the
Secretary considers appropriate. It establishes the payment
threshold and calculation method for Supplemental Production
Margin Payments. (Section 1415)
The Conference substitute includes premium schedules for
the first 4 million pounds of production and for production in
excess of 4 million pounds. The premiums for the first 4
million pounds are reduced by 25 percent for calendar years
2014 and 2015. (Section 1407)
(25) Establishment of the Dairy Market Stabilization Program
The Senate amendment requires the Secretary to 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. (Section 1431)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(26) Threshold for Implementation and Reduction in Dairy Payments
The Senate amendment provides that 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 under certain
circumstances. (Section 1432)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(27) Milk Marketings Information
The Senate amendment requires the Secretary to establish
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. (Section 1433)
The House bill has no comparable provision.
The Conference substitute adopts the House position (but
see Section 1405(c)).
(28) Calculation and Collection of Reduced Dairy Operation Payments
The Senate amendment requires each handler, during any
month in which payment reductions are in effect under the
stabilization program, to reduce payments to each participating
dairy operation from whom the handler receives milk. (Section
1435)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(29) Remitting Funds to the Secretary and Use of Funds
The Senate amendment requires, as soon as practicable
after the end of each month during which payment reductions are
in effect under the stabilization program, each handler to
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. (Section 1435)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(30) Suspension of Reduced Payment Requirement
The Senate amendment requires reduced payments to be
suspended under certain circumstances. (Section 1436)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(31) Enforcement
The Senate amendment makes it unlawful and a violation of
this subpart for any person subject to the stabilization
program to willfully fail, refuse to provide, or delay the
timely reporting of accurate information and remittance of
funds to the Secretary. (Section 1437)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(32) Audit Requirements
The Senate amendment authorizes the Secretary to conduct
audits to ensure compliance by participating dairy operations
and handlers with the stabilization program. (Section 1438)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(33) Study; Report
The Senate amendment requires the Secretary, acting
through the Office of the Chief Economist, to conduct a study
of the impacts of the program established under section
1431(a). (Section 1451)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(34) Duration
The Senate amendment terminates the production margin
protection program and the stabilization program on December
31, 2018. (Section 1439)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 1409)
(35) Rulemaking
The House bill requires the promulgation of regulations
for the initiation of the margin insurance program. It also
requires administration of the margin insurance program to
comply with the Administrative Procedure Act, but does not
require compliance with the Paperwork Reduction Act. It repeals
the deadline for the Secretary to consider the state of
California's reentry into the federal milk marketing order
system. (Section 1402)
The Senate amendment requires the Secretary to promulgate
regulations to address administrative and enforcement issues
involved in carrying out the production margin protection,
supplemental production margin protection, and market
stabilization programs. It also requires regulations for an
appeals process. (Section 1452)
The Conference substitute adopts the House provision with
an amendment. The amendment requires the Secretary to
promulgate regulations to address administrative and
enforcement issues and prohibit reconstitution of a dairy
operation for the purpose of the dairy producer receiving
margin protection payments. (Section 1410).
The Managers intend for the Secretary to conduct a
hearing prior to the issuance of an order designating the State
of California as a Federal milk marketing order. The provision
provides the Secretary of Agriculture with the discretion, if a
California Federal milk marketing order is requested, to
recognize the longstanding California quota system, established
under state marketing regulations, in whatever manner is
appropriate on the basis of a rulemaking hearing record.
Section 1504 of the Food, Conservation, and Energy Act of
2008 amended the Agricultural Adjustment Act (7 U.S.C. 608c) to
establish timeframes for the hearing process for amending
federal milk marketing orders. The Managers expect the
Secretary to adhere to such timeframes, to the maximum extent
practicable, for the process of designating California as a
Federal milk marketing order.
(36) Dairy Product Mandatory Reporting
The Senate amendment changes the dairy product mandatory
reporting process so that each manufacturer has to report to
the Secretary, more frequently than once per month, information
concerning the price, quantity, and moisture content of dairy
products sold by the manufacturer. (Section 1461)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(37) Federal Milk Marketing Order Program Pre-Hearing Procedure for
Class III pricing
The Senate amendment requires the Secretary to use the
pre-hearing procedure described in this section to consider
alternative formulas for Class III milk product pricing under
section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937. (Section 1462)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
The Managers have heard concerns from various dairy
stakeholders in regards to the Class III and Class IV milk
product pricing systems. The Managers recognize that the
Secretary has the authority and ability to conduct a pre-
hearing procedure to consider alternative pricing formulas for
Class III and Class IV milk products. If petitioned by
industry, the Secretary is encouraged to engage in public, pre-
hearing information sessions that allow the opportunity for
interested parties to discuss alternative price formula
proposals. The Managers believe that through review of
proposals from interested parties, this process will help
address concerns from industry, assist with the stabilization
of the price of milk and provide greater certainty for dairy
producers. It is the Managers understanding that the Dairy
Industry Advisory Committee has recommended that the Secretary
take such action and review interested party proposals to
address Class III and Class IV pricing formula changes in this
participatory and transparent manner.
(38) Repeal of Dairy product Support and MILC programs
The House bill repeals both sections of current law that
establish the dairy product support and MILC programs. (Section
1411)
The Senate amendment is similar to the House bill but
continues MILC payments at the 45% payment rate through June
30, 2014. MILC is repealed effective July 1, 2014. It repeals
the Dairy Export Incentive Program, and extends the Dairy
Forward Pricing Program, the Dairy Indemnity Program, and the
Dairy Promotion and Research Program. (Sections 1471-1475)
The Conference substitute adopts the Senate provisions.
(Section 1422)
(39) Repeal of the Federal Milk Marketing Order Review Commission
The House bill repeals section 1509 of the Food,
Conservation Act of 2008. (Section 1416)
The Senate amendment extends the order review commission.
(Section 1476)
The Conference substitute adopts the House provision.
(Section 1427)
(40) Federal Milk Marketing Orders
The Senate amendment requires the Secretary to provide an
analysis on the effects of amending each Federal milk marketing
order issued under section 8c of the Agricultural Adjustment
Act. (Section 1481)
The House bill has no comparable provision.
The Conference substitute adopts the House position.
(41) Supplemental Agriculture Disaster Assistance
The House bill provides definitions as necessary to carry
out the Livestock Indemnity Program. The provision requires
Livestock Indemnity Payments to be made to eligible producers
from funds of the Commodity Credit Corporation (CCC) for fiscal
year 2012 and each succeeding fiscal year with respect to
livestock losses in excess of normal mortality due to adverse
weather or attacks by federally reintroduced animals, including
wolves or avian predators. The provision provides for an
indemnity rate of 75% of the market value of the applicable
livestock. The provision provides definitions as necessary to
carry out the Livestock Forage Program. The provision requires
that, for the 2012 and each succeeding fiscal year, the
Livestock Forage Program must provide compensation from the
funds of the CCC for losses to eligible livestock producers due
to grazing losses on account of prescribed drought conditions
or fire. The provision provides that an eligible producer may
receive assistance only for grazing losses for covered
livestock on land that is native or improved pastureland with
permanent vegetative cover or is planted to a crop for the
purpose of providing grazing for covered livestock. The
provision excludes assistance for grazing losses on land used
for haying or grazing under a CRP contract. The provision
establishes that in the case of drought, a payment rate for a
single month is to be equal to 60 percent of the lesser of the
monthly feed cost for covered livestock, owned or leased, or
the monthly feed cost calculated by using the normal carrying
capacity of the eligible grazing land. The provision requires a
payment rate of 80 percent of the aforementioned payment rate
in the case of an eligible livestock producer that sold or
disposed of livestock due to drought in one or both of the two
production years preceding the current production year. The
provision also prescribes the means by which monthly feed
costs, feed grain equivalents, and corn price per pound are
determined. The provision requires the Secretary to determine
normal carrying capacity and normal grazing period in the
county served by the applicable committee and prohibits any
change in the determination without the request of the State
and county FSA committees. The provision establishes a schedule
of payments to be made to producers in D2, D3, and D4 drought
conditions as follows: D2 for at least 8 consecutive weeks, 1
monthly payment; D3 for any period, 3 monthly payments; D3 for
at least 4 weeks or D4 any time, 4 monthly payments; D4 for at
least 4 weeks, 5 monthly payments. The provision establishes
assistance for eligible livestock producers that sustain
grazing losses on federal lands when a federal agency prohibits
grazing on the federal lands due to fire at a rate equal to 50
percent of the monthly feed cost. The provision further
establishes that such producers are eligible for assistance
beginning on the date they are denied grazing on federal lands
until such time that their lease expires. The provision
prohibits duplicative drought and fire payments covering the
same losses. The provision requires the Secretary to use not
more than $20 million of CCC funds for each of the 2012 and
succeeding fiscal years to provide emergency relief to eligible
producers of livestock, honey bees, and farm raised fish to
help in the reduction of losses due to disease, adverse
weather, or other conditions not covered under Livestock
Indemnity Payments or the Livestock Forage Disaster Program.
The provision requires that funds be used to reduce losses due
to feed or water shortages, disease, or other factors
determined by the Secretary and that the funds be available
until expended. The provision contains definitions as necessary
to carry out the Tree Assistance Program. The provision
requires the Secretary to use CCC funds for each of the 2012
and subsequent fiscal years to provide assistance to eligible
orchardists and nursery tree growers that planted and lost
trees intended for commercial purposes due to natural disaster,
and orchardists and nursery tree growers that have a production
history for commercial purposes but lost trees due to natural
disaster. The provision requires a tree mortality loss in
excess of 15 percent to qualify for assistance with assistance
consisting of 65 percent of the cost of replanting trees lost
in excess of 15 percent or, at the Secretary's discretion,
sufficient seedling to reestablish a stand, and 50 percent of
the cost of pruning, removal, and other costs incurred to
salvage existing trees or to prepare land to replant trees, in
excess of 15 percent. The provision establishes a $125,000
payment limit under the Tree Assistance Program, with a 500
acre cap as well. The provision also provides for a $125,000
payment limit on assistance provided under section 1501, with
direct attribution requirements. The provision omits the
minimum risk management purchase requirement and does not
reauthorize the SURE program of the 2008 Farm Bill. (Section
1501)
The Senate amendment is similar to the House provision,
except that definitions vary; programs required under subtitle
E are authorized for the 2014 through 2018 fiscal years;
payment rates under the Livestock Indemnity Program are
established at 65 percent of the market value; the functions of
other programs are folded into the Livestock Forage Program,
including the noninsured crop disaster program, the emergency
assistance for livestock, honey bees, and farm-raised fish
program, and the Livestock Forage Disaster Program; Livestock
Forage Disaster Program assistance is not excluded on CRP
contract acreage if the land is grassland eligible; the monthly
payment rate under the Livestock Forage Disaster Program is 50
percent; the calculation for determining the corn price per
pound is based on a different corn price; the normal grazing
period under the Livestock Forage Disaster Program may not
exceed 240 days; the drought intensity payment schedule is
distinguished from the House bill as follows: D3 at any time, 2
monthly payments, and D3 for 4 weeks or D4 at any time, 3
monthly payments; authorizes annual payments based on drought
determined by means other than the drought monitor and
assistance for eligible forage losses due to other than drought
or fire; up to $15 million for each fiscal year is authorized
under the Emergency Assistance for Livestock, Honey Bees, and
Farm-Raised Fish; the payment limits imposed on the Tree
Assistance Program is $100,000 and the limit under the section
is also $100,000; and the timing of payments is prescribed.
(Section 1501)
The Conference substitute adopts the House provision.
(Section 1501)
The Managers intend that, with respect to any livestock
program signup for 2012, 2013, or 2014, the Secretary be
flexible in establishing signup deadlines. In past years, when
livestock programs have had a firm signup date for one year and
another signup begins for the following year soon thereafter,
it is easy for producers to confuse the years for which an
application has been filed and those that have not. Limited
county office budgets for mailings exacerbate this problem. The
Managers also recognize that in many cases producers will have
to compile records on livestock inventories by type and weight
along with the number of livestock purchased and sold, for
example, for much of the past three years. As such, the
Managers intend that, with regard to 2012 and 2013, the
Secretary take into consideration that the compilation of
records by the producer can be extremely difficult or even
impossible and to exercise flexibility when determining what
constitutes an acceptable record.
(42) National Drought Council and National Drought Policy Action Plan
The House bill establishes in the Office of the Secretary
a ``National Drought Council.'' (Section 1502)
The Senate amendment has no comparable provision.
The Conference substitute deletes the House provision.
Significant droughts have occurred in the United States
more than a dozen times since 1900. The 2012 drought, while
serious, was not unprecedented. The U.S. has faced similar or
worse conditions in the 1930's, 1950's and 1988. However, the
period from 2000-2013 was the worst consecutive period of
drought since the 1930's, surpassing that of the 1950's. The
drought conditions throughout the United States in 2012 had an
estimated cost of $30 billion to the agriculture sector alone.
Impacts were also felt by communities through losses due to
reduced water and energy resources, reduced recreation revenue,
increased wildfires, and dust-borne diseases, among others.
These impacts highlight the need to better align Federal, state
and local drought policies.
The Managers understand that a National Drought
Resilience Partnership was established in November of 2013 to
promote strong partnerships between the Federal agencies and to
make it easier for communities to access Federal drought
resources. The Managers expect the Secretary to make local,
state, and tribal stakeholders an integral part of constructing
national drought preparedness and response policy. As part of
that process, the Secretary should provide clear and easy
opportunities for those stakeholders to have a role in the
Partnership, including creating a plan to coordinate federal
polices with state and local policies and establishing robust
outreach with communities.
(43) Administration Generally
The House bill requires the Secretary to use the funds,
facilities, and authorities of the Commodity Credit Corporation
(CCC) to carry out this title and provides that determinations
made by the Secretary under this title are final and
conclusive. The section further requires that except as
otherwise required in this subsection, the Secretary and the
CCC must promulgate necessary regulations to implement this
title and amendments made by this title within 90 days of
enactment of this Act. The section requires that regulations
and administration of this title and amendments made by this
title as well as sections 10003 and 10016 (supplemental
coverage option and stacked income protection for producers of
upland cotton) of this Act are made in compliance with the
Administrative Procedures Act (APA) but without regard to the
Paperwork Reduction Act or the Statement of Policy of the
Secretary of Agriculture. The section also carries over
adjustment authority relating to trade agreement compliance
from the 2008 Farm Bill. (Section 1601)
The Senate amendment is similar to the House except that
the regulations and administration of the title are not subject
to the APA and the Congressional review of agency rulemaking
provision from the 2008 Farm Bill is carried over. (Section
1601)
The Conference substitute adopts the Senate provision.
(Section 1601)
(44) Repeal of Permanent Price Support Authority
The House bill repeals specific sections of the
Agriculture Adjustment Act of 1938 and the Agriculture Act of
1949 historically suspended under previous Farm Bills during
their effective period except section 377 of the 1938 Act which
is suspended during the period of the new Farm Bill as it
relates to cotton. (Section 1602)
The Senate amendment is the same as current law except
the suspensions are applicable to the 2014 through 2018 crop
years and through December 31, 2018, in the case of dairy.
(Section 1602)
The Conference substitute adopts the Senate provision.
(Section 1602)
The Managers note that, along with the suspension of
other authorities, the general permanent price support
authority provided under 7 U.S.C. 1446(a) must be suspended by
the 2014 Farm Bill, as it has been under previous Farm Bills,
since section 1446(a) would otherwise require USDA to make
available price support for the commodities specified in
subsection (a) in a manner that is in accordance or consistent
(i.e., not incompatible or in conflict) with the support
required to be provided to other commodities under Title II (7
U.S.C. 1446 et. seq.), including as prescribed or previously
carried out under 7 U.S.C. 1446(b), (c), or (f), or in any
combination of these approaches. In sum, 7 U.S.C. 1446(a)
provides broad authority to offer the required price support in
a manner that is consistent with the tenor of price support
provided elsewhere in Title II, and must be suspended for the
effective period of the 2014 Farm Bill. Finally, the Managers
would observe that there are also additional authorities,
including under the other titles of 7 U.S.C. 1421 et. seq.,
that apply to certain commodities specified in 7 U.S.C.
1446(a). Therefore, the additional authorities provided under 7
U.S.C. 1421 et. seq., as they relate to certain commodities
under 7 U.S.C. 1446(a), must also be suspended for the
effective period of the 2014 Farm Bill. This section
accomplishes these objectives.
(45) Payment Limitations
The House bill defines legal entity, excluding general
partnerships or joint ventures. The section imposes a limit on
the amount of payments indirectly or directly received by a
person or legal entity for covered commodities and peanuts
under Title I to not more than $125,000, with not more than
$75,000 consisting of marketing loan gains and loan deficiency
payments and not more than $50,000 consisting of other payments
made with respect to covered commodities and peanuts under
Title I. The section also sets forth spousal equity rules for
pay limit purposes, limiting the amount a person and spouse may
jointly receive to double the enumerated limits; provides for
conforming amendments; and makes the limits effective in time
for the 2014 crop year. (Section 1603)
The Senate amendment limits 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 subtitle A of title I of the Act to $50,000 for
peanuts and $50,000 for 1 or more other covered commodities.
The section provides that the total amount of marketing loan
gains and loan deficiency payments received for peanuts may not
exceed $75,000 and for 1 or more other loan commodities may not
exceed $75,000. The section provides for conforming amendments
and that the section is to be effective in time for the 2014
crop year. (Section 1603)
The Conference substitute adopts the House provision,
except that the House definition of legal entity is dropped, a
separate payment limit for peanuts is maintained, limitations
within the overall payment limit of $125,000 are omitted, and
the proposed change to the spousal rule is also dropped.
(Section 1603)
The Managers note that the 2008 Farm Bill provided for a
$65,000 payment limitation for Countercyclical Payments and
ACRE; a $40,000 payment limitation for Direct Payments;
unlimited marketing loan gains (MLGs) and loan deficiency
payments (LDPs); as well as $100,000 under the SURE program for
a combined total of $205,000, not including marketing loan
gains and LDPs. The payment limitations provided for the suite
of policies in this section that are intended to replace the
2008 Farm Bill provisions in terms of risks covered are $80,000
less and the cap on payments includes MLGs and LDPs.
Specifically, this section provides for one cap of $125,000
under which all PLC, ARC, MLGs, and LDPs must fit. The Managers
would particularly stress that this amount does not include any
benefit derived by the producer from forfeitures. The Managers
fully intend that the marketing assistance loan continue to
operate as a nonrecourse loan. The Managers intend that nothing
in this section shall be construed to limit the right of a
producer to forfeit the crop which the producer has pledged as
collateral in full satisfaction of the loan.
(46) Payment Limited to Active Farmers
The House bill qualifies how farm managers can qualify as
actively engaged in the farming operation. (Section 1603A)
The Senate amendment is similar to the House bill except
with respect to the Farm Managers provision. (Section 1604)
The Conference substitute adopts the House provision,
except that amendments made to the Food Security Act of 1985
are dropped and instead a new regulation is required to be
promulgated within a specified period of time and with
opportunity for notice and comment. The substitute requires the
regulation to define significant contribution of active
personal management for purposes of carrying out the applicable
statute. The substitute further provides that the regulations
may, where appropriate, include limits on the number of
individuals who may be considered actively engaged when a
significant contribution of active personal management is the
basis used by an individual or entity to meet actively engaged
requirements under the law. The regulation is required to take
into account the size, nature, and management requirements of
farming operations, the changing nature of active personal
management due to advancement of farming operations, and the
degree to which the impact of the regulation would adversely
impact the long-term viability of the farm. The substitute
provides that the regulation does not apply to individuals or
entities comprised solely of family members. The substitute
requires that the regulation include a plan for monitoring the
status of compliance reviews, and prohibits the imposition of
any additional paperwork burdens associated with the new
regulation on those not subject to the new regulation. Finally,
the substitute clarifies that the provision is not to be
construed as authorizing broader regulations, and requires that
the regulation promulgated apply beginning with the 2015 crop
year. (Section 1604)
The Managers note that the purpose of this rulemaking is
to strengthen the verification process for members of a farming
operation claiming to be actively engaged under section 1001A
of the Food Security Act of 1985 on the basis of a significant
contribution of active personal management. From that
definition, the Managers intend that the Secretary will develop
clear and objective standards that can be easily measured and
accounted for by members of the farming operation. The Managers
would also stress that this section in no way changes any
aspect of current applicable law, referring in this Act to the
breadth of title 7 of the United States Code. Rather, the
Managers intend that the section only authorizes a rulemaking
to modify current regulations to add clarity and objectivity
where this section specifically requires in order to better
enforce existing law.
The Managers recognize with the inclusion of subsection
(c) that family farming operations are an important part of
American agriculture. The Managers do not intend the
regulations promulgated pursuant to this subsection to
adversely affect the manner in which such family farms allocate
responsibilities among the members of their family. However,
the Managers also do not intend for subsection (c) to overly
restrict the Secretary's authority to implement the reforms
under this section, and intend for the term entity to include
the entity ultimately receiving the payment.
The Managers further intend that the Secretary will
develop standards that are fair, equitable, and will enhance
program integrity. The Managers are aware that under current
rules the agency has had difficulty in determining the
significance of a management contribution. The Managers also
understand that this difficulty is often exacerbated when the
person considered to be actively engaged lives a significant
distance from the farming operation or does not visit the
farming operation on a regular basis.
The Managers intend that the Secretary take into account
the size and complexity of farming operations across different
regions of the country. Further, the Managers intend that the
Secretary will look carefully at certain activities or services
that a person may perform which have a significant impact on
the long-term viability of the farming operation. In
particular, the Managers expect that the Secretary will give
careful consideration to the following activities: labor
contracting; decisions made to achieve regulatory compliance;
marketing, including hedging and forward contracting;
financing, including securing production loans; land
utilization management, including conservation planning;
decisions made regarding risk management and legal liability,
including insurance coverage; decisions made regarding cropping
choices; input purchasing; and decisions made regarding
equipment, including purchases, financing, and maintenance. The
Managers also intend for the Secretary to take into account the
changing nature of active personal management due to
technological and economic advancements of farming operations,
including crop genetics, farming practices such as no-till and
minimal-till farming, and telecommuting.
The Managers intend that any additional paperwork
required by these new requirements be focused solely on the
individuals and entities subject to the new requirements.
Finally, the Managers urge the Secretary to be mindful that
stable, predictable and equitable farm policy is essential to
the continued viability of commercial farming operations that
need access to financing for annual production costs,
equipment, and land. Lastly, the Managers stress that
accessibility to a strong farm safety net is important to
continued prosperity in rural America, particularly in small
towns where agriculture is at the center of the local economy.
(47) Adjusted Gross Income Limitation
The House bill makes changes to Section 1001D of the Food
Security Act of 1985. The section replaces the two income
limitation tests (farm and non-farm incomes) with a single
$950,000 adjusted gross income limitation for certain commodity
programs as well as conservation programs. The section applies
the new limit to payments under the Farm Risk Management
Election, marketing loan gains or loan deficiency payments,
payments from Supplemental Agricultural Disaster Assistance
Programs, payments from conservation programs, the Agriculture
Management Assistance program authorized in the Federal Crop
Insurance Act, and payments from the Noninsured Crop Disaster
Assistance Program. The section requires that payment limits in
effect on the day before the enactment of this Act apply to the
2013 crop, fiscal or program year. (Section 1604)
The Senate amendment makes changes to Section 1001D of
the Food Security Act of 1985. The section replaces the two
income limitation tests (farm and nonfarm incomes) with a
single $750,000 adjusted gross income limitation for commodity
programs if the average adjusted gross income over the last 3
taxable years is in excess of $750,000. The section applies the
new limit to payments under the Adverse Market Program and the
Agriculture Risk Coverage program, marketing loan gains or loan
deficiency payments, payments from Supplemental Agricultural
Disaster Assistance Programs, and payments from the Noninsured
Crop Disaster Assistance Program. (Section 1605)
The Conference substitute adopts the House provision
except that the AGI limitation is established at $900,000.
(48) Geographically Disadvantaged Farmers and Ranchers
The House bill is the same as current law except
authorizes payments for fiscal year 2009 and each succeeding
fiscal year. (Section 1605)
The Senate amendment extends current law through fiscal
year 2018. (Section 1606)
The Conference substitute adopts the House provision.
(Section 1605)
(49) Appeals
The Senate amendment amends the current appeals process
by clarifying, among other things, that the Director of the
National Appeals Division shall be free from the direction and
control of any person other than the Secretary or the Deputy
Secretary of Agriculture. (Section 1609)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
(Section 1610)
(50) Technical Corrections
The House bill includes technical corrections. (Section
1608)
The Senate amendment includes technical corrections.
(Section 1610)
The Conference substitute adopts the House provision with
a technical change.
(51) Implementation
The House bill requires the Secretary to seek to reduce
administrative burdens and costs to producers by streamlining
and reducing paperwork, forms, and other administrative
requirements; improve coordination, information sharing, and
administrative work with the Risk Management Agency and the
Natural Resources Conservation Service; and take advantage of
new technologies to enhance efficiency and effectiveness of
program delivery to producers. The section also requires the
Secretary to maintain records on base acres and payment yields
from the 2008 Farm Bill. The section also requires the
Secretary to maintain records for the separate base acres of
long grain rice and medium grain rice subject to the total base
under the 2008 Farm Bill and any adjustment. The section
requires the Secretary to make $100 million available to the
Farm Service Agency to carry out this title. (Section 1612)
The Senate amendment has similar streamlining
requirements but does not require maintenance of base acres and
payment yields. The section also requires the Secretary to
maintain a record of farms with upland cotton base acres in
effect on the day before the date of enactment of this Act and
to make $97 million available to the Farm Service Agency to
carry out this title. (Section 1614)
The Conference substitute adopts the House provision but
adds the requirement that the Acreage Crop Reporting and
Streamlining Initiative (ACRSI) be implemented and that the
ACRSI ensure that a producer, or an agent of the producer
acting on the producer's behalf, may report information
(including geospatial information) to USDA either
electronically or conventionally; that upon the request of the
producer or the agent of the producer, USDA must electronically
share with the producer or the agent of the producer, in real
time and without cost, common land unit data, related farm
level data, and other information of the producer; that this
reporting and sharing of information must comply with existing
privacy requirements. The substitute also provides an
additional $10 million to the Farm Service Agency on October 1,
2014 if the Secretary notifies the Agriculture Committees of
Congress by September 30, 2014 that substantial progress has
been made in implementing ACRSI and the reporting and sharing
requirements of this section. An additional $10 million is also
provided to FSA if by September 30, 2015 the Secretary reports
to the Agriculture Committees that these requirements have been
fully implemented and the Committees concur, with the added
funding available on the later of the date of concurrence or
October 1, 2015. The substitute further provides that of the
base amount of implementation dollars provided to FSA under
this section, $3 million is to be provided by the Secretary to
state extension services or equivalent agencies for producer
education concerning subtitles A, D, and E of this title and
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996. The substitute also requires the Secretary
to engage one or more qualified universities to develop web-
based decision aids to assist producers in understanding
available options under subtitle A, with the FSA required to
obligate funds for this purpose within 30 days of enactment of
the Farm Bill and web-based decision aids to be made available
to producers via the internet within 45 days, and with $3
million provided for this purpose. Finally, the substitute
provides loan implementation requirements. (Section 1613)
The Managers intend by this section and the
implementation section within the Crop Insurance Title of this
Act for the Secretary to undertake the streamlining efforts
prescribed. As part of the implementation of ACRSI, the
Managers intend for the Secretary to provide for an expedited
means for the reporting and sharing of information as required
under this section. The Managers would particularly note that
this information is the private and proprietary information of
the producer and, as such, is strictly protected by statute
from disclosure, with very limited and specifically prescribed
exceptions, including disclosures made upon the consent of the
agricultural producer or owner of the agricultural land. The
Managers intend that an agent of the producer evidence the
consent of the producer when acting on the producer's behalf in
the reporting and sharing of information in a manner that
complies with the requirements of section 1619 of the 2008 Farm
Bill and without unnecessarily encumbering or delaying the
reporting and sharing.
The Managers also intend that regulations be quickly
finalized to allow a Farm Storage Facility Loan of up to
$100,000 with no additional security. The Managers recognize
that the Farm Service Agency had properly implemented the
program in this manner, consistent with Congressional intent,
from August of 2012 to February of 2013 before the program
reverted back to $50,000 with no additional security. The
Managers commend FSA for the agency's work to fulfill
Congressional intent and intend that regulations to allow a
Farm Storage Facility Loan of $100,000 with no additional
security be finalized and implemented without further delay.
The Managers intend, with respect to loan implementation,
that the Secretary would use the authority provided to carry
out loans described in subsection (d) in a manner where the
loans to producers would be administered as though an order
described in that subsection had not been issued for that crop
year. The Managers intend that the administration of this
subsection not result in the disruption or delay in the orderly
marketing of commodities under loans. The Managers intend that
a producer that repays a loan under subtitles B or C at an
amount equal to the loan rate for the applicable commodity plus
interest must repay the amount that is provided pursuant to
subsection (d). The Managers do not intend that the amount
provided pursuant to subsection (d) be repaid in the case of a
producer receiving a loan deficiency payment, a marketing loan
gain benefit, or a benefit derived from the forfeiture of a
commodity.
(52) Protection of Producer Information
The House bill prohibits the Secretary of Agriculture or
officials or employees of other federal agencies from releasing
certain information given to the government pursuant to Title I
or Title II of this Act or other information provided by a
producer or owner of agricultural land in order to participate
in USDA or other federal agency programs. The section provides
for limited exceptions to the rule and a requirement that
disclosures made under these exceptions be reported to the
Agriculture Committees. (Section 1613)
The Senate amendment has no comparable provision.
The Conference substitute deletes the House provision.
Title II--Conservation
Subtitle A--Conservation Reserve Program
(1) Extension and Enrollment Requirements
The House bill amends the maximum acres as follows:
27,500,000 acres in fiscal year 2014; 26,000,000 acres in
fiscal year 2015; 25,000,000 acres in fiscal year 2016;
24,000,000 acres in fiscal year 2017; and 24,000,000 acres in
fiscal year 2018. Additionally, the House bill caps grassland
enrollment at 2,000,000 acres at any one time. (Section 2001)
The Senate amendment amends the maximum acres as follows:
30,000,000 acres in fiscal year 2014; 27,500,000 acres in
fiscal year 2015; 26,500,000 acres in fiscal year 2016;
25,500,000 acres in fiscal year 2017; and 25,000,000 acres in
fiscal year 2018. Additionally, the Senate amendment caps
grassland enrollment at 1,500,000 acres at any one time.
(Section 2001)
The Conference substitute adopts the House provision.
(Section 2001)
The Managers agreed to an overall reduction in the
maximum acres that could be enrolled in the Conservation
Reserve Program (CRP), however, this should not serve as an
indicator of declining support for CRP. The Managers intend for
CRP to be implemented at authorized levels, using the statutory
flexibility, and for the program to continue as one of USDA's
key conservation programs in concert with working lands
conservation efforts.
Within the overall acreage cap, the Conference substitute
provides for grasslands to be enrolled in CRP and authorizes
the Secretary to grant priority to lands expiring from current
CRP contracts that will retain grass cover. This modification
accommodates acreage that previously would have been eligible
for short-term rental contracts under the Grassland Reserve
Program (GRP) for working grasslands.
The specific priority designations for the Chesapeake Bay
Region, the Great Lakes Region, and the Long Island Sound
Region are removed. The authority for the Secretary to
designate conservation priority areas is retained, recognizing
the importance of the program for addressing regional and
State-identified areas of special environmental sensitivity.
(2) Farmable Wetland Program
The House bill decreases the overall cap to 750,000
acres. (Section 2002)
The Senate amendment contains no comparable amendments
and maintains the current law cap of 1,000,000. (Section 2002)
The Conference substitute adopts the House provision with
an amendment to include a clerical amendment from the Senate
language. (Section 2002)
(3) Duties of the Secretary
The House bill amends current law by striking ``allotment
history'' and by moving out certain activities from section
1232(a)(8). Additionally, the House bill permits certain
activities in case of drought or other emergency caused by a
natural disaster where the activity may occur without a
reduction in the rental rate. The bill includes a reduction of
not less than 25 percent of the rental rate and establishes the
frequency during which managed harvesting may be conducted as
not more than once every three years. The bill also establishes
the frequency during which routine grazing may occur at not
more than once every two years and adds a new subsection that
requires the Secretary to permit certain haying and grazing
practices on grasslands specifically. Lastly, it includes a
provision for individuals with expiring contracts to initiate
conservation and land improvement practices in the final year
of contract. To comply, an owner or operator must develop and
implement a conservation plan for these activities. Re-
enrollment of such lands is prohibited for five years. (Section
2004)
The Senate amendment is similar to the House. However, it
specifies flooding as an emergency for the purposes of carrying
out certain activities without a reduction in the rental rate
payment. Such other emergencies do not need to be a result of a
natural disaster. Additionally, the Senate amendment allows for
limited grazing by a beginning farmer or rancher without any
reduction in the rental rate and includes habitat during the
primary nesting season for critical birds. The Senate amendment
establishes a frequency during which managed harvesting may be
conducted at least once every five but not more than once every
three years and allows for prescribed grazing for the control
of invasive species to occur annually. The frequency for
routine grazing is similar to the House bill. However, the
Senate amendment specifies that the Secretary must take into
account the presence of threatened or endangered wildlife and
wildlife habitat and requires conservation and land improvement
practices in the last year of the contract to maintain the
protection of highly erodible land. Lastly, it states that the
annual payment amount shall be reduced by an amount
commensurate with any income or compensation received as a
result of these activities. (Section 2004)
The Conference substitute adopts the House provision by
eliminating ``allotment history.'' The substitute adopts the
Senate language including flooding or other emergencies as an
emergency not a result of a natural disaster and adds limited
grazing by livestock of a beginning farmer or rancher without a
reduction in rental rate.
The Conference substitute did not specify the range of
situations under which CRP could be used to mitigate the
impacts on agricultural producers resulting from adverse and
extreme weather events or conditions. While these acres can
provide additional forage when they are located within the
disaster footprint, these forages also could assist in meeting
livestock forage needs when near to the affected area, or when
CRP contract holders are willing to make their forage available
to those affected by the emergency, or when flooding displaces
grazing livestock. The Managers expect the Secretary to make
this forage available in response to disasters that affect
other producers without regard to the location of the enrolled
lands. This section establishes the frequency of harvesting and
routine grazing on acres enrolled in CRP contracts, consistent
with a conservation plan, and provides for the incidental use
of buffers adjacent to agricultural lands.
Authorized activities for newly eligible grasslands
include grazing, haying, mowing, or harvesting for seed
production. The Secretary shall permit activities such as fire
pre-suppression, rehabilitation and construction of fire
breaks, fencing, livestock watering, and necessary cultural
practices. These uses of the land are consistent with those
allowed for existing GRP rental contracts and are carried over
here to align with the authorized activities for those
grasslands to be enrolled in the conservation reserve.
The substitute adopts the Senate provision on primary
nesting season with an amendment to change critical birds to
birds in the local area that are in significant decline.
The substitute adopts the Senate language on managed
harvesting frequency, prescribed grazing for invasive species,
and installation of wind turbines.
The substitute adopts the Senate provision on land
improvement and practices in the last year of the contract with
an amendment. The amendment limits applicability to enrolled
land and clarifies that the land can be used for economic use.
(Section 2004) Provisions are added to allow conservation and
land improvement practices in the final year of a contract,
with a commensurate reduction in rental value only when the
participant derives economic benefit from use of the forage.
Re-enrollment of lands modified through this provision is
prohibited for at least five years.
The Managers intend that the intensity of all specified
activities permitted by the revisions to Section 1233(b) of
current law be conducted in accordance with the parameters
outlined in the statute. The Conference substitute also
requires that specified activities are carried out in
accordance with soil, water quality, and wildlife habitat
conservation plans to control invasive species while also
maintaining the health and viability of the established cover.
The Secretary should not require management activities at the
specified frequency when it is determined to be technically
unnecessary for the cover because drought, fire, or other
factors have reduced the need for such cover management action.
Additionally, the Secretary, with advice from State Technical
Committees, shall ensure that the frequency and duration of all
specified activities permitted are reflected in associated
conservation plans appropriate for the local climatic
conditions, precipitation, soils, and other necessary factors
in order to meet the purposes of the program.
The revisions made to section 1233(b)(2) of the current
statute clarify the intent of the Managers to expand some uses
of the conservation reserve when the activities are consistent
with and/or beneficial to the health and viability of the
established cover. In doing so, the Managers focused on
grasslands-related activities since grasslands are the
predominant cover for the program. The Managers intend for this
to be sufficient authority to allow such activities to occur
when doing so would be a similar benefit to the health and
vigor of the cover. For example, the pre-commercial thinning of
pine plantings, or the harvesting of pine straw may be allowed
with commensurate reduction of rental rates if these activities
would be a technically accepted activity for improving the
health and viability of the stand, as reflected in the
conservation plan. The Managers encourage the Secretary to
utilize options other than burning for the disposal of residue
removed from CRP lands, as well as lands enrolled in a
conservation easement, for contract management and maintenance.
The Managers suggest the Secretary coordinate with state
government officials to donate this residue to Indian tribes,
small and disadvantaged farmers or other similar persons or
entities.
(4) Payments
The House bill amends the payment section of CRP by
eliminating in-kind payments. (Section 2005)
The Senate amendment allows for incentive payments for
thinning activities and allows for the National Agricultural
Statistics Service (NASS) survey of dryland cash rental rates
to be used as a factor in determining rental rates, as
determined by the Secretary. In addition to eliminating in-kind
payments, the Senate amendment adds requirements that payments
be made using funds from the Commodity Credit Corporation.
The Conference substitute adopts the Senate provision
with an amendment. The amendment strikes the Commodity Credit
Corporation payment requirement. (Section 2005) The Managers
recommend that the new authority provided under section 1234(c)
is used by the Secretary to incentivize owners and operators to
conduct practices and utilize management tools that would
promote forest management, enhance the overall health of tree
stands, improve the condition of resources, or provide valuable
habitat for wildlife. Such practices and management tools
should be used to encourage landowners to promote pine savannah
habitat or other beneficial resource wildlife habitat practices
such as tree thinning, disking, and prescribed burning.
Further, the Managers intend for the Secretary to determine any
other appropriate practices and management tools that could be
employed to achieve the objective of the provision. The
Managers acknowledge that similar authority was provided by the
Food, Conservation, and Energy Act of 2008, but it did not
achieve the goal of incentivizing owners and operators to
conduct the necessary practices that section 1234(c) is
intended to remedy. Under some situations, local market
conditions will greatly affect the cost of implementing the
appropriate forest management practices making them costly and
difficult to implement. The Managers expect USDA to use the
authority under section 1234(c) to provide incentive payments
in an amount that will overcome any disincentive for owners and
operators to implement these practices in order to improve the
condition of the resources, promote forest management or
enhance the wildlife habitat on the land.
The Managers intend that CRP continue as one of USDA's
key conservation programs. The Managers remain concerned,
however, that USDA does not offer annual payments to producers
commensurate with local prevailing rental rates to ensure that
enrollment is competitive with other land uses. The 2008 Farm
Bill authorized the use of NASS surveys of cropland values;
even so, the Managers are aware that in some parts of the
country, CRP rental rates continue to trail--in some cases by a
large margin--local prevailing rental rates. The Managers
intend for USDA to use NASS survey data and other local data on
cash rental rates and farmland prices, developed through land
grant universities or other sources. The Managers expect USDA
to review this data at least annually, and update CRP rental
rates to reflect local prevailing rental rates.
(5) Contract Requirements
The House bill updates the early termination provisions
to allow for an early termination option in fiscal year 2015
only of a contract that has been in effect for five years and
expands the list of land that is eligible for early
termination. Additionally, the House bill makes adjustments to
the transition option provisions language to allow a retired
farmer or rancher to transfer land to a beginning farmer or
rancher to prepare such land to plant an agricultural crop.
(Section 2006)
The Senate amendment adds ``veteran farmer or rancher''.
(Section 2006)
The Conference substitute adopts both the House and
Senate provisions with amendment changing the year for offering
early termination to fiscal year 2015. (Section 2006)
The Managers are concerned that USDA has not been fully
utilizing CRP technical assistance authorities and funding
enacted in the 2008 Farm Bill for agency infrastructure,
including outreach, training, and other technical services. The
Managers expect USDA to better utilize this authority for
internal support and to support outreach and partnerships with
non-governmental organizations and other qualified entities to
ensure that producers and landowners are fully aware of their
options under the program.
The Managers also encourage USDA to continue to make
their staff available to attend meetings of agricultural
producers at the local, State and national level to educate and
inform producers of the programs available to meet natural
resource needs on their operations.
The Managers direct the Secretary to, within one year of
enactment, report to Congress on the quality of land currently
enrolled in CRP based on the land capability classification
system, the erodibility index, other eligible lands criteria,
and natural resource benefits. The report should include
justification for using the prescribed environmental benefits
index threshold for any acres enrolled into the program after
enactment. The Secretary shall complete such a report five
years thereafter and include the same information on land
quality and decisions to enroll types of acres based on the
environmental benefits index. If the decision is made to use a
different environmental benefits index threshold or methodology
for making decisions to enroll program contracts, reasons for
the decision should be included in the report.
Additionally the Managers direct the Secretary, within
two years of enactment, to complete a comprehensive economic
impact study that specifically evaluates the impact the CRP has
had on rural communities. The report should include the average
county rental rates and rental rates paid for CRP land.
The Managers support ongoing USDA efforts to target the
CRP through enrollment of highly-desirable practices such as
buffers, filter strips, riparian buffers, acreage of importance
to States and local communities, certain wetlands, duck and
upland bird habitat buffers, highly erodible land, longleaf
pine, and pollinator habitat. This widely-supported targeting
effort ensures that critical acreage is protected and
productive land remains available for production. The Managers
intend that USDA accelerate this evolution of targeted
practices to include important natural resource priorities.
Examples of such priorities include: water quality and
quantity, wildlife habitat, and recreation purposes. The
Managers encourage the Secretary to include the use of
potentially larger tracts than have previously been awarded a
contract in order to continue meeting wildlife habitat needs.
In addition to the Managers' intention that USDA expand
the use of continuous and Conservation Reserve Enhancement
Program (CREP) practices, the Managers understand that there
are concerns in regard to the Department's operation of certain
continuous practices, including State Acres for Wildlife
Enhancement or so-called ``SAFE'' acres. The Managers encourage
the Secretary to continue efforts to meet the demand for these
practices, which have proved popular in some states. The
Managers also expect the Secretary to utilize these acres to
meet demand for acreage that will impact threatened or
endangered species or species of economic significance in a
state or region.
The Managers also intend that the provisions in section
2602 regarding availability of Commodity Credit Corporation
funding for farm bill conservation programs will ensure the
Department has adequate acreage available to meet the demand
for the various continuous practices.
Subtitle B--Conservation Stewardship Program
(6) Conservation Stewardship Program
The House bill amends the definitions section to strike
the definition of ``conservation measurement tool'' and thereby
conform with later amendments; relocates the definition of
``eligible land'' and ``agricultural operation'' to the
definitions section; adds pasture land to the list of eligible
land; and expands other eligible agricultural areas to land
capable of being used for livestock production. Additionally,
it reauthorized the program for FY 2014 through 2018. It states
that to be eligible for CSP, a producer must demonstrate that,
at the time of the contract offer, the producer meets or
exceeds the stewardship threshold for at least two priority
resource concerns. The House bill also states that in order to
renew the contract, the producer must demonstrate compliance
with the initial contract, agree to adopt and continue to
integrate conservation activities, and at a minimum meet or
exceed the threshold of at least two additional priority
resource concerns or exceed the threshold for two existing
priority resource concerns. Also, the House bill provides an
annual enrollment limitation of 8,695,000 acres for FY 2014
through 2021 and provides for additional payments to producers
that agree to adopt or improve resource conserving crop
rotations. (Section 2101)
The Senate amendment is similar to the House bill, but
does not include ``capable of being used'' for the production
of livestock; adds improving and conserving the quality and
condition of natural resources on purpose; and states that to
be eligible for a payment under the Conservation Stewardship
Program (CSP), a producer must demonstrate that, at the time of
the contract offer, the producer is meeting the stewardship
threshold for at least two priority resource concerns. Also,
the amendment requires producers to agree to, at a minimum,
meet or exceed the stewardship threshold for at least two
additional priority resource concerns. Additionally, the Senate
amendment provides an annual enrollment limitation of
10,348,000 acres for FY 2012 through 2022. (Section 2101)
The Conference substitute adopts the House provision to
include land capable of being used for livestock production in
the definition of other eligible land. Section 1238D in the
Conference substitute streamlines and consolidates key
definitions for the program. The meaning of agricultural
operation is consistent with current law. Conservation
activities involve conservation systems, practices, and
management measures. The term has an inclusive plain language
meaning to encompass, for example, conservation planning. The
Managers recognize that in developing a conservation plan, a
producer incurs significant costs in time, labor, management,
and foregone income. The specific mention in the statute of
inclusions does not exclude conservation activities that are
otherwise within the definition. The definition of conservation
stewardship plan makes it clear the plan is to inventory and
identify priority resource concerns and to contain the
additional specified elements encompassing new as well as
existing conservation activities. Eligible land is defined to
mean private and tribal land on which agricultural commodities,
livestock, or forest-related products are produced plus
associated land on which priority resource concerns could be
addressed through a contract under the program.
A priority resource concern is defined to mean a natural
resource concern or problem that is identified at the national,
state, or local level as a priority for a particular area, and
that represents a significant concern in a state or region that
is likely to be addressed successfully through implementing
conservation activities. The Managers understand that the
process of identifying priority resource concerns should
involve consultation at the state and local levels to the
maximum extent practicable, such as with State Technical
Committees and local work groups. The stewardship threshold is
the level of management required to conserve and improve the
quality and condition of a natural resource. The stewardship
threshold for a natural resource is a science-based standard at
an advanced level of conservation providing for the long-term
continued productivity, use, and quality of the resource.
The substitute adopts the Senate provision that includes
improving and conserving the quality and condition of natural
resources as a program purpose.
The substitute adopts the House provision relating to the
requirement that the producer meet or exceed the stewardship
threshold of at least two priority resource concerns. It
further adopts the House provision on the contract renewal
requirement that the producer meet at least two additional
resource concerns or exceed two existing resource concerns. The
Managers encourage the Secretary to place emphasis on adopting
new practices; with new contracts addressing at least one
additional priority resource concern and renewing contracts
that address at least two priority resource concerns.
The substitute also adopts the House provision which
allows eligible producers to receive supplemental payments for
making improvements to resource-conserving crop rotations. The
Managers intend for the supplemental payment to encourage
producers to adopt new or additional beneficial crop rotations
that provide significant conservation benefits. The payments
are to be available to producers across the country and should
not be limited to a particular crop, cropping system, or region
of the country. In the Southeast, peanuts are an example of a
crop that responds well to increased rotation lengths, which
help peanut producers, conserve water, more effectively control
disease, and reduce inputs to control disease and increase
productivity. Alfalfa is another important rotation crop in
many parts of the country and plays a role in adding value to a
producer's operation as well as providing natural resource
benefits. The Managers recognizes the very significant
contributions that sorghum has made to resource conservation as
a water-conserving crop and expects the Secretary to include
sorghum in any supplemental payments for resource conserving
crop rotations made available under the CSP.
The substitute lists six criteria for ranking contract
offers, prohibits giving a higher ranking to a contract offer
based on the applicant's willingness to accept a reduced
payment, and allows the development and use of additional
criteria to ensure national, state, and local priority resource
concerns are addressed effectively. Such additional criteria,
should they be developed and used, are not to supersede or be
more heavily weighted than the six statutory ranking criteria.
The language includes as one of six ranking factors ``the
number of applicable priority resource concerns proposed to be
treated to meet or exceed the stewardship threshold by the end
of the contract.'' The Managers expect that, in using this
factor to rank applications, the Natural Resources Conservation
Service (NRCS) will verify not only the number of priority
resource concerns proposed to be treated at the initial
application ranking stage, but also the extent to which the
conservation activity proposed for the priority resource
concern will meet or exceed the stewardship threshold for that
priority resource concern at the expiration of the contract.
The substitute includes an annual enrollment cap of
10,000,000 acres at $18/acre for the program for the remainder
of fiscal year 2014 through fiscal year 2022. (Section 2101)
The Secretary shall prioritize for enrollment in the
program lands that are expiring from the CRP in an effort to
protect the taxpayer's conservation investment by continuing
conservation benefits on those lands and enabling the
transition from CRP to a sustainable grass-based or other type
of agricultural operation where many of the conservation
benefits will continue. The Managers encourage the Secretary to
conduct outreach to producers and to facilitate enrollment of
such land into the CSP in order to maintain and improve
conservation values, such as through grass-based production
systems. The subsection also updates the provision excluding
land recently converted to cropland.
The Managers believe conservation programs as implemented
by USDA should recognize the use of innovative technology such
as enhanced efficiency fertilizers. Enhanced efficiency
fertilizers, which reduce nitrate losses to the environment,
help protect water quality, and reduce greenhouse gas
emissions, include slow- and controlled-release fertilizers
(absorbed, coated, occluded or reacted) and stabilized nitrogen
fertilizers (nitrification inhibitors and nitrogen
stabilizers). These tools are recognized in USDA's conservation
standards and specifications for nutrient management and
related practices and by State regulators of fertilizers.
The Managers recognizes the changing nature of
agriculture including technological advances, weather-related
factors, and markets under which producers must operate their
business. During the term of a 5-year agreement, an agriculture
operation may make adjustments in production systems in
response to the changing markets, weather-related causes, or
other necessary actions essential to the continuing their
operation. The Managers expect that the Secretary will ensure
producers have the opportunity to adjust their operations while
maintaining comparable or enhanced conservation performance of
the enrolled acreage and still continuing their contracts.
Subtitle C--Environmental Quality Incentives Program
(7) Establishment and Administration
The House bill states that not more than 50 percent of a
payment under the Environmental Quality Incentives Program
(EQIP) may be made in advance for the purpose of purchasing
materials or contracting. Funds not expended in 90 days shall
be returned. Additionally, the bill maintains the 60 percent
allocation for livestock production and adds a 7.5 percent
allocation targeted towards practices benefiting wildlife
habitat. The House bill also provides a clerical amendment
using the term ``Indian Tribes''. The bill includes payments to
producers for practices that support the restoration,
development, protection, and improvement of wildlife habitat as
well as recurring practices for the term of the contract. It
also adds a new provision for alternative funding arrangements
with eligible irrigation associations. (Section 2202)
The Senate amendment changes the practices for forgone
income payment and gives greater significance to addressing
resource concerns such as: soil health; water quality and
quantity improvement; nutrient management; pest management; air
quality improvement; wildlife habitat development, including
pollinator habitat; invasive species management; or other
resource issues of regional or national significance.
Additionally, the amendment maintains and consolidates the
authority for the Wildlife Habitat Incentive Program (WHIP)
within EQIP. The amendment also maintains the 60 percent
allocation for livestock production, provides at least a 5
percent allocation targeted towards practices benefiting
wildlife habitat, and strikes the subsection providing for
alternative funding arrangements for Native American Indian
Tribes and Alaska Native Corporations. Additionally, the
alternative funding arrangement provision is expanded to
include CSP. The Senate amendment does not include recurring
practices for the term of the contract and requires the
Secretary to consult at least once a year with the State
Technical Committees when determining practices eligible for
wildlife habitat incentive payments. The Secretary may make
wildlife habitat incentive payments to a state or local
government to enroll land that is riparian to or submerged
under a water body or wetland. (Section 2202)
The Conference substitute adopts the Senate provision
updating the list of practices the Secretary may give special
significance to in determining income forgone with an
amendment. The list is revised to better reflect natural
resource objectives.
The Conference substitute adopts the Senate provision
with amendment regarding the revision of the practice list the
Secretary may give special significance to when determining
income forgone. The Managers intend for the revision to better
reflect natural resource objectives and to clarify that
conservation practices with a longer lifespan may include more
than one year of income forgone when it is necessary to
encourage full adoption and maintenance of the practice.
The substitute adopts the House provision that increases
the percentage of an EQIP payment that may be made in advance
for the purposes of purchasing materials and contracting from
30 percent to 50 percent.
The substitute adopts the Senate provision that maintains
the 60 percent allocation for livestock production and further
provides for an allocation of at least 5 percent for targeted
practices benefiting wildlife habitat. It further adopts the
Senate provision striking alternative funding arrangements for
Indian Tribes as a conforming amendment to [section 2606] which
moves the alternative funding arrangement for EQIP, while
adding CSP, to section 1244(l) of the Food Security Act of
1985, as amended. The Managers recognize the broad and
significant role of the EQIP program in promoting environmental
stewardship among livestock and poultry producers around the
country and maintains that 60% of the funding allocation go to
these producers. Within six months of enactment, USDA is
directed to report to the House Committee on Agriculture and
Senate Committee on Agriculture, Nutrition, and Forestry on
funds spent over the duration of the last Farm Bill and on
whether NRCS has met its statutory obligations.
The substitute adopts the Senate provision on payments to
producers for practices that support the restoration,
development, protection, and improvement of wildlife habitat.
The Managers acknowledge the need to consolidate and streamline
conservation programs which is why WHIP was merged within EQIP
with the primary goal to provide farmers and ranchers with
assistance to improve wildlife habitat on working lands.
The substitute deletes the House provision for
alternative funding arrangements with eligible irrigation
associations.
The substitute adopts the Senate provision requiring the
Secretary to consult at least once a year with the State
Technical Committees when determining eligible practices for
wildlife habitat incentive payments. The Managers intend that
under section 1240B(g)(2) regarding funding of wildlife habitat
practices, the Secretary should prioritize fish and wildlife
species identified in State, regional, or national wildlife
plans and initiatives. However, the Managers did not include
the Senate provision that would allow for wildlife habitat
incentive payments to a state or local government to enroll
land that is riparian to or submerged under a water body or
wetland. (Section 2203)
(8) Limitations on Payments
The House bill provides for a payment limitation of
$450,000 to a person or legal entity for all EQIP contracts
entered during FY 2014 through FY 2018. (Section 2205)
The Senate amendment maintains the $300,000 payment
limitation but strikes the six year period timeframe and
inserts FY 2014 through FY 2018. The amendment also maintains
the waiver authority ``for not more than $450,000'' in current
law. (Section 2205)
The Conference substitute adopts the House provision.
(Section 2206)
(9) Conservation Innovation Grants
The House bill adds facilitating on-farm research and
demonstration activities and facilitating pilot testing of new
technologies or innovative conservation practices to the types
of project the Secretary may fund with Conservation Innovation
Grants. Additionally, the bill eliminates payments to producers
who implement practices to address air quality concerns.
(Section 2206)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment to include payments to producers who implement
practices to address air quality concerns at a reduced funding
level of $25 million. (Section 2207) The Managers intend for
there to be increased transparency by USDA in the area of
innovative conservation projects and monitoring that these
innovative conservation approaches are later incorporated into
common conservation practices.
(10) Definitions
The Senate amendment combines the definitions of
``National Organic Program'' and ``Organic System Plan'' for
simplification purposes. (Section 2202)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 2202)
Section 1240B of the Food Security Act of 1985, as
amended, provides the Secretary the option to accept financial
assistance from other sources. The Secretary should not create
additional burdens on the participant, state or private
organization in an effort to account for non-Federal resources
provided in support of conservation practices installed under
the program by this authority.
The Managers intend that conservation programs should
recognize the use of innovative technology, such as enhanced
efficiency fertilizers (e.g., slow and controlled-release
fertilizers, stabilized nitrogen fertilizers). This innovative
technology can help producers to protect water quality and
reduce greenhouse emissions, and are recognized by State
regulators of fertilizers. In the case of EQIP applications
involving manure-to-energy projects, the Managers encourage the
Secretary to consider whether the projects include an
integrative approach to addressing nutrient management and
water quality issues.
Additionally, the Managers encourage NRCS to evaluate its
education program and make sure that it is providing all
potential users within each state an opportunity to become
educated about the EQIP program and how each farmer can
incorporate EQIP into their farm stewardship management plans.
There is concern that not all producers may be fully aware of
all of the services, practices, components, and other
information needed to participate fully in farm bill
conservation programs. The state NRCS offices shall notify
producers, in a readily accessible and understandable form, the
practices available that may be applicable to various livestock
species and crops. These notifications shall also include the
payment levels available and the period in which payment for a
particular practice is available. The Managers also request a
breakdown of livestock and poultry operation practices
available by state, and what practices were funded in each
state to be included in the report. Finally, the Managers
encourage USDA to continue to make their staff available to
attend meetings of agricultural producers at the local, State
and national level to educate and inform producers of the
programs available to meet natural resource and energy
efficiency needs on their operations.
Subtitle D--Agricultural Conservation Easement Program
(11) Agricultural Conservation Easement Program
The House bill states the definition of ``agricultural
land easement'' for the purposes of the new Agricultural
Conservation Easement Program (ACEP). The House bill includes
land that is conveyed for the purpose of protecting natural
resources and the agriculture nature of the land. It also
provides the definition of ``eligible land'' in the case of an
agricultural land easement. It includes agricultural land that
the protection of which will further a State or local policy
consistent with the purposes of the program. Additionally,
there is a definition of ``eligible land'' in the case of a
wetland easement. The bill provides that eligible land includes
cropland or grassland that was used for agricultural production
prior to the natural overflow of a closed basin lake and
adjacent land dependent on it, if the State or other entity is
willing to provide 50 percent cost-share. It provides for an
exception for grasslands of special environmental significance
by allowing the Secretary to pay up to 75 percent of the fair
market value as the Federal cost-share of the easement. It
authorizes an eligible entity to use its own terms and
conditions for an agricultural land easement as long as the
Secretary determines such terms and conditions meet several
requirements, and establishes the use of permanent easements or
easements for the maximum duration allowed under State law for
agricultural land easements. The bill establishes the method of
enrollment for wetland easements and deems 30-year contracts to
be considered 30-year easements for the purposes of the
wetlands easements and establishes a land ownership requirement
of 24-months. It also provides that, among other things, an
owner entering into a wetland easement shall agree to
permanently retire any existing base history. The bill states a
wetland easement must include, among other things, a term or
condition that provides for the efficient and effective
establishment of wildlife functions and values, and the bill
allows the Secretary to delegate any easement management,
monitoring, and enforcement responsibilities to Federal or
State agencies that have the appropriate authority, expertise
and resources. It adds authority for the Secretary to delegate
any easement management responsibilities to other conservation
organizations determined by the Secretary. Lastly, it allocates
funding for agricultural land easement at no less than 40
percent in FY 2014 through 2017 and no less than 50 percent in
fiscal year 2018, and amends the acreage limitation to include
the repealed Wetlands Reserve Program (WRP) acres when
calculating the 25 percent country acreage cap in addition to
CRP and the new wetland easements. (Section 2301)
The Senate amendment is similar to the House but adds the
purpose of promoting agriculture viability for future
generations, adds agricultural land the protection of which
could conserve grassland or agricultural landscapes of
significant ecological value, incorporates ``reserve'' into the
definition of a wetland reserve easement, and does not include
the 50 percent cost-share included in the House for closed
basin lakes. The Senate amendment includes the same exception
as the House but also authorizes the Secretary to waive any
portion of the eligible entity cash contribution requirement
for projects of special significance, subject to an increase of
private landowner voluntary donation equal to the amount of the
waiver. It includes a requirement that the terms and conditions
are permanent or for the maximum duration allowed under State
law. It does not provide that 30-year contracts should be
considered as 30-year easements for wetlands purposes. The
amendment establishes a land ownership requirement of 12-months
and it also agrees to retire allotment history as included in
comparable provision of current law. In the amendment, the term
or condition must provide for the efficient and effective
establishment of wetland functions and values. The amendment
also allows the Secretary to delegate any easement management,
monitoring, and enforcement responsibilities to Federal or
State agencies that have the appropriate authority, expertise
and resources or to other conservation organizations as
determined by the Secretary. It includes a limitation that the
Secretary shall not delegate monitoring or enforcement to
conservation organizations. Finally, land enrolled in WRP, GRP,
and Farmland Protection Program (FPP) are considered enrolled
in the ACEP program, and the amendment adds to the current law
exclusion for shelterbelts and windbreaks; wetland and
saturated soils, not subjecting such cropland with subclass w
in the land capability classes IV through VII. (Section 2301)
The Conference substitute adopts the Senate provision on
promoting agriculture viability for future generations with an
amendment. The amendment includes a reference to agricultural
future viability in the Establishment and Purposes section
while striking viability for future generations from the
definition of agricultural land easement (ALE). The amendment
also adopts the Senate provision incorporating ``reserve'' in
the definition of a wetland reserve easement.
The substitute adopts the House definition of eligible
land in the case of an agricultural land easement with an
amendment. The amendment uses the Senate's concept of better
incorporating grasslands into the definition.
The substitute also adopts the House definition of
eligible land in the case of a wetland reserve easement. The
Managers do not intend for these slight modifications or
adjustments to significantly alter the way NRCS has evaluated,
ranked, enrolled and protected wetlands.
The substitute adopts the Senate provision on the waiver
of any portion of the cash contribution requirement for
projects of special significance with an amendment. The
amendment limits the land to property that is in active
agricultural production. To ensure the purpose of the GRP is
appropriately included in ALE, the term ``grassland of special
significance'' is included as eligible lands for ALE. The term
encompasses grasslands with high biodiversity values; large
intact natural grassland areas; rare or threatened ecosystems;
grasslands with critical ecosystem importance; and grasslands
that meet any one or more of these values that are of
importance to local communities and working agriculture land
preservation efforts.
The substitute deletes the House provision that deems 30-
year contracts as easements with an amendment. The amendment
includes language in the definition of wetland reserve easement
that gives the Secretary discretion to enter into 30-year
contracts with Indian Tribes where relevant.
The substitute adopts the House provision establishing a
land ownership requirement of 24-months and the House provision
that strikes allotment history. The substitute adopts the
Senate language on the administrative delegation of easements.
The Managers are aware that NRCS enters into cooperative
agreements and Memorandums of Understanding with conservation
groups and this provision does not prohibit NRCS from
continuing these types of agreements under section 1242(d) of
the Food Security Act of 1985, as amended, to help administer
and implement easements.
The substitute adopts the Senate language on land
considered enrolled in ACEP with an amendment to clarify that
this language is consistent with the transition language for
the repealed programs.
The substitute deletes the House provision on allocating
ACEP funding between the two easements. The Managers expect
NRCS to administer the ACEP funding, to the extent practicable,
in a manner that allows for State flexibility to prioritize
their easement needs while making sure that NRCS distributes
funding to address the multiple purposes of the new
consolidated program.
The Managers further intend for the Secretary to have the
flexibility to make adjustments to this allocation based upon
the Department's stewardship responsibilities for lands already
enrolled as the easement portfolio increases over time.
The substitute further adopts the House provision
amending the acreage limitation to include the cropland acreage
currently enrolled under the WRP when calculating the 25
percent country acreage cap in addition to CRP and the new
wetland easements.
The substitute adopts the Senate provision adding to the
current law exclusion for shelterbelts and windbreaks, wetland
and saturated soils, not subjecting such cropland with subclass
w in the land capability classes IV through VII to statutory
acreage limitations. (Section 2301)
Subtitle E--Regional Conservation Partnership Program
(12) Regional Conservation Partnership Program
The House bill provides the definition of ``eligible
activity'' for the new Regional Conservation Partnership
Program (RCPP), which includes air quality improvement. It also
provides the definition of ``eligible land'' and the definition
of ``eligible partner'' for the new RCCP program, which
includes a water district, irrigation district, rural water
district or association, or other organization with specific
water delivery authority to producers on agricultural land. The
bill establishes the duties of partners under RCPP including
conducting outreach to producers for potential participation,
and allows the Secretary to give priority to certain
applications. It gives the Secretary discretion to adjust
program rules for a covered program, and it allows the
Secretary to make payments to producers participating in a
project that addresses water quantity concerns for five years
in an amount sufficient to encourage conversion from irrigation
to dryland farming. The bill provides $100 million in mandatory
funding during FY 2014 through 2018, reserves 6 percent of
funds and acres made available under the covered programs as
additional funding to carry out RCPP, and requires the
Secretary to allocate, from all funds and acres of the program,
25 percent to projects based on a State competitive process, 50
percent based on a national competitive process, and 25 percent
for critical conservation areas. Additionally, the bill
requires a report to Congress on December 31, 2014, and every
two years thereafter. It states that the Secretary shall
designate eight geographical areas as critical conservation
areas under RCPP. Lastly, the bill also makes available to the
Secretary the authorities under the Watershed Protection and
Flood Prevention program (except the Small Watershed
Rehabilitation Program) to carry out projects in a designated
critical conservation area. (Section 2401)
The Senate amendment is similar to House except that it
does not include air quality improvement or water district
language. It does include forest restoration, specifies the
conversion of irrigated cropland to the production of less
water-intensive agricultural commodities or dryland farming
under water quality restoration or enhancement projects,
includes a municipal water or wastewater treatment entity, and
includes education along with outreach to producers for
potential participation as a duty of partners under RCPP. The
amendment requires the Secretary to give priority to certain
applications and allows the Secretary to give priority to
others, and priority for providing innovation in the
improvement and delivery of water quality or water quantity.
Additionally, the amendment provides operational guidance and
requirements for a covered program and non-statutory,
regulatory rules or provisions. Further, it includes a
provision prohibiting the Secretary from limiting eligibility
on the basis of irrigation history for States where irrigation
has not been significantly used for agricultural purposes. It
requires the Secretary to enter into at least 10 but no more
than 20 alternative funding arrangements with multi-state water
resource agencies or authorities. It also adds producers
participating in projects that address water quality concerns
in an amount sufficient to encourage adoption of practices that
improve nutrient management, and provides $110 million of
mandatory funding during FY 2014 through 2018. The amendment
reserves 8 percent of funds and acres made available under the
covered programs as additional funding to carry out RCPP. It
requires the Secretary to allocate, from all funds and acres of
the program, 25 percent to projects based on a State
competitive process, 40 percent based on a national competitive
process, and 35 percent for critical conservation areas, and
also requires that a description of how the funds are being
administered be included in the report. The Secretary shall
designate six geographical areas as critical conservation areas
under RCPP. The critical conservation area designation expires
after five years, subject to redesignation. The Secretary may
withdraw from such area. (Section 2401)
The Conference substitute adopts the House provision on
the definition of eligible activity with an amendment. The
amendment narrows the language and adds forest restoration as
an eligible activity.
The substitute adopts the House definition of eligible
land. It further adopts the House definition of an eligible
partner with an amendment. The amendment adds the Senate's
inclusion of water or wastewater treatment entity as an
eligible partner.
The substitute adopts the Senate provision that includes
education along with outreach as a duty of an eligible partner.
The substitute adopts the House provision on priority to
certain applications.
The substitute adopts the Senate provision on operational
guidance and requirements for a covered program and non-
statutory, regulatory rules or provisions with clarifying
amendments. It further adopts the Senate provision prohibiting
the Secretary from limiting eligibility on the basis of
irrigation history for States where irrigation has not been
significantly used for agricultural purposes.
The substitute adopts the Senate provision that provides
for alternative funding arrangements with an amendment. The
amendment allows the Secretary to enter into no more than 20
alternative funding arrangements with multi-state water
resource agencies but eliminates the requirement that the
Secretary enter into at least 10 of the arrangements.
The substitute adopts the Senate provision on payments to
producers for projects that address both water quantity and
water quality.
The substitute adopts the House mandatory funding level
of $100 million and sets the percentage of acres reserved for
the program at 7 percent.
The substitute adopts the Senate provision on the
allocation of the percentage of the funds going to the states,
the Department and reserved for critical conservation areas. It
further adopts the Senate provision on reporting by the
Department on how funds are being administered.
The substitute adopts the House provision on the number
of critical conservation areas with an amendment. The amendment
includes the Senate provisions on expiration of and withdrawal
from designation of the critical conservation area.
The substitute includes the House provision on including
authorities under P.L. 566 in the Regional program. (Section
2401)
The Managers encourage the Secretary to distribute
funding equitably across the nation and to not ignore different
natural resource concerns that may be unique to each region.
The substitute includes provisions from the Senate amendment
regarding education and outreach duties for partners, which the
Managers view as a vital component due to the important role
those duties will have in the success of the program and in
achieving large-scale conservation benefits on the ground. The
Managers recognize the existing capabilities of the land grant
institutions in each state, including the Cooperative Extension
Service system, which have a proven track record of effectively
working with producers providing outreach and education, and
encourage the Secretary and potential partners to seek ways to
utilize these existing resources and systems.
The Managers intend that projects not be limited solely
to geographic areas but that regional and non-contiguous multi-
state areas be considered as well, provided that all program
requirements are met.
The Managers expect the contribution of the partner to be
a significant portion of the overall costs. The Managers urge
the Secretary to resist defining this as a set percentage of
the cost as a minimum standard to be applied to all
applications. The Secretary should evaluate the overall merits
of each proposal and the significance of the partner's
contribution to the potential successful implementation. There
is concern that a set percentage might preclude proposals from
partners that require high financial assistance from USDA to
the producer while the partner's support is from a smaller, but
essential technical assistance contribution.
Subtitle F--Other Conservation Programs
(13) Conservation on Private Land
The House bill reauthorizes the Conservation on Private
Grazing Land program at previous levels of $60 million per year
through FY 2018. (Section 2501)
The Senate amendment reauthorizes the Conservation on
Private Grazing Land program at reduced level of $30 million
per year through FY 2018. (Section 2501)
The Conference substitute adopts the House provision.
(Section 2501)
(14) Grassroots Source Water Protection Program
The House bill reauthorizes the Grassroots Source Water
Protection Program at previous levels of $20 million per year
through FY 2018. Additionally, it authorizes a one-time $5
million in mandatory money to remain available until expended.
(Section 2502)
The Senate amendment reauthorizes the Grassroots Source
Water Protection Program at reduced appropriated levels of $15
million per year through FY 2018. (Section 2502)
The Conference substitute adopts the House provision.
(Section 2502)
(15) Voluntary Public Access and Habitat Incentive Program
The House bill reauthorizes the Voluntary Public Access
and Habitat Incentive Program at a reduced level of $30 million
in mandatory money per year from FY 2014 though FY 2018.
(Section 2503)
The Senate amendment reauthorizes the Voluntary Public
Access and Habitat Incentive Program at a reduced level of $40
million in mandatory money per year from FY 2014 though FY
2018. Amendments become effective October 1, 2013. (Section
2503)
The Conference substitute adopts the Senate provision.
(Section 2503)
(16) Small Watershed Rehabilitation Program
The House bill reauthorizes the Small Watershed
Rehabilitation Program at previous appropriated levels of $85
million per year through FY 2018 and authorizes $250 million in
mandatory money for FY 2014, to remain available until
expended. (Section 2505)
The Senate amendment reauthorizes the Small Watershed
Rehabilitation Program at previous appropriated levels of $85
million per year through FY 2018. No mandatory money.
The Conference substitute adopts the House provision.
(Section 2505)
(17) Agricultural Management Assistance Program
The House bill eliminates tree plantings and soil erosion
control from the list of approved uses, and permanently
authorizes the Agricultural Management Assistance Program at
$10 million in mandatory money each fiscal year. It sets aside
30 percent to NRCS for conservation, 10 percent to the
Agricultural Marketing Service for organic certification, and
60 percent to the Risk Management Agency for risk management.
(Section 2506)
The Senate amendment eliminates the specific state
designations and tree planting authorities. It adds to the
authority for organic certification, risk management education
and outreach, and management assistance grants for conservation
practices and risk mitigation. It provides for $23 million in
funding to be distributed at levels of: 50 percent for organic
certification; 26 percent for risk management; and 24 percent
for conservation and mitigation. (Section 11034)
The Conference substitute deletes both the House and the
Senate provisions.
(18) Emergency Watershed Protection Program
The House bill adds a priority for projects that mitigate
risks and remediate the effects of catastrophic wildfires on
land that is the source of drinking water for landowners and
land users. (Section 2507)
The Senate amendment authorizes the Secretary to modify
and terminate floodplain easements provided the current
landowner agrees, and the modification or termination addresses
a compelling public need where there is no practical
alternative and it is in the public interest. (Section 2506)
The Conference substitute adopts the Senate provision.
(Section 2506)
The substitute provides the Secretary limited authority
to modify or terminate a floodplain easement which is similar
authority under other conservation programs. The Managers
intend for the Secretary to enter into compensatory agreements
with third parties to allow for flexibility to modify or
terminate the floodplain easements.
(19) Terminal Lakes Assistance
The Senate amendment strikes and replaces current law
with a Terminal Lakes Assistance program. It adds a definition
for eligible land and terminal lake. Additionally, it adds a
new voluntary land purchase grant program with a $25 million
authorization of appropriations, to remain available until
expended. The bill includes a transfer of $150 million in
mandatory funds to the Bureau of Reclamation. (Section 2507)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 2507)
(20) Soil and Water Resources Conservation
The Senate amendment adds Indian tribes as eligible to
cooperate with and participate in the soil and water
conservation program. (Section 2509)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 2508)
Subtitle G--Funding and Administration
(21) Funding
The House bill provides mandatory funding to carry out
CRP including $25 million for FY 2014 through 2018 to
facilitate transfer of land from retired or retiring owners and
operators to beginning or socially disadvantaged farmers or
ranchers. Additionally, the bill provides mandatory funding for
ACEP at the following levels: $425 million in FY 2014; $450
million in FY 2015; $475 million in FY 2016; $500 million in FY
2017; $200 million in FY 2018. It also provides mandatory
funding for EQIP at $1.75 billion each year for FY 2014 through
2018 and eliminates Regional Equity. (Section 2601)
The Senate amendment provides mandatory funding to carry
out CRP including $10 million to provide cost-share payments
for thinning activities and $50 million to facilitate transfer
of land from retired or retiring owners and operators to
beginning or socially disadvantaged farmers or ranchers. It
also provides mandatory funding for ACEP at the following
levels: $450 million in FY 2014; $475 million in FY 2015; $500
million in FY 2016; $525 million in FY 2017; $250 million in FY
2018. The amendment also provides mandatory funding for EQIP at
the following levels: $1.5 billion for FY 2014; $1.6 billion
for FY 2015; $1.65 billion FY 2016 through 2018. The Senate
amendment also retains regional equity, amends current law by
eliminating the $15 million annual requirement, and allows
states in the first quarter of the fiscal year to establish
that they can use a total of 0.6 percent of certain
conservation funds, in which case they may receive such funds
exclusive of the CRP funding. (Section 2603)
The Conference substitute adopts the Senate provision on
mandatory funding for CRP with an amendment. The amendment
includes the funding level for transition payments at $33
million.
The Conference substitute adopts the Senate provision for
mandatory funding for ACEP with an amendment. Funding levels
are: $400 million in FY 2014; $425 million in FY 2015; $450
million in FY 2016; $500 million in FY 2017; $250 million in FY
2018.
The Conference substitute adopts the Senate provision for
EQIP with an amendment. The amendment provides mandatory
funding for EQIP at the following levels: $1.35 billion for FY
2014; $1.6 billion for FY 2015; $1.65 billion for FY 2016;
$1.65 billion for FY 2017; and $1.75 billion in FY 2018.
(Section 2602)
The Conference adopts the Senate provisions for Regional
Equity. (Section 2603)
(22) Technical Assistance
The House bill continues to make mandatory money for
conservation programs available for technical assistance and
requires a report from the Secretary not later than December
31, 2013, on the amount of funds requested and apportioned.
(Section 2602)
The Senate amendment is similar to the House but requires
the apportionment for technical assistance be at the sole
discretion of the Secretary. Further, the Senate amendment
requires the Secretary to give priority to producers who
request technical assistance to comply with subtitles B and C
for the first time and submit a report not later than 270 days
after enactment on the extent to which conservation compliance
requirements affect specialty crop growers. The Secretary must
also submit, not later than November 1 of each year, a report
on highly erodible lands/wetland conservation determinations.
(Section 2642)
The Conference substitute adopts the Senate provision.
(Section 2602)
(23) Reservation of Funds to Provide Assistance to Certain Farmers or
Ranchers for Conservation Access
The House bill reauthorizes the EQIP and CSP set-aside
through FY 2018. It also provides a preference for veteran
farmers or ranchers eligible under the provision. Amendments
take effect on October 1, 2013. (Section 2603)
The Senate amendment is the same as the House, but has no
effective date. (Section 2604)
The Conference substitute adopts the Senate provision.
(Section 2604)
(24) Annual Report on Program Enrollment and Assistance
The House bill amends the reporting requirement to
reflect the repeal of the relevant programs. The amendments
take effect on October 1, 2013. (Section 2604)
The Senate amendment is similar to the House, but adds
reporting requirements for CSP payments and waivers for
grasslands under ACEP. It does not include an effective date.
(Section 2605)
The Conference substitute adopts the Senate provision.
(Section 2605)
(25) Review of Conservation Practice Standards
The House bill requires the Secretary to review the
conservation practice standards in effect on the date of
enactment of the Farm Bill. (Section 2605)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate amendment
making no change to current law.
(26) Administrative Requirements Applicable to All Conservation
Programs
The House bill makes veteran farmers or ranchers eligible
for incentives. Additionally, it makes other clarifying and
conforming amendments. The amendments take effect October 1,
2013. (Section 2606)
The Senate amendment allows for flexible funding
arrangements for Indian Tribes and includes EQIP and CSP as
applicable programs. It does not include an effective date.
(Section 2606)
The Conference substitute adopts the Senate provision.
(Section 2606)
The Conference substitute combines language on improved
administrative efficiency and streamlining from individual
programs and places it in a central location to apply to all
conservation programs. It expands and clarifies requirements
for developing a streamlined conservation application process.
It clarifies that any payment received under Title II is in
addition to and does not affect total payments that an owner or
operator is otherwise eligible to receive. The Managers
encourage the Secretary to significantly increase the use of
computer-based conservation practice planning tools that
incorporate Light Detection and Ranging elevation data to
modernize and simplify conservation planning, improve
efficiency of technical assistance, and improve service to
private landowners.
Further, the Managers encourage the Secretary, in
delivering conservation programs, to give priority within the
tallgrass prairie region to the use of appropriate tallgrass
prairie species for watershed management, flood mitigation/
prevention, reduction of soil erosion and nutrient loss,
biomass crop production, and other conservation measures.
The Managers recognize the unique challenges facing
producers whose operations contain muck soils and encourage the
Secretary to continue to work with these farmers to allow them
to utilize this productive type of ground.
The conferees direct NRCS to ensure agency staff,
partners, and producers are aware of new and interim
conservation practice standards and conservation activity plans
to address herbicide-resistant weeds. The agency is also to
make certain there is awareness that financial assistance is
available through certain conservation programs to assist
producers in their efforts to control these weeds.
The Managers expect that the principles and guidelines
developed pursuant to section 103 of the Water Resources
Planning Act, or revised pursuant to section 2031 of the Water
Resources Development Act of 2007, and any guidelines developed
thereunder, shall not apply and require no new administrative
process, rulemaking, or administrative procedures for programs
administered by NRCS, the Forest Service, RMA, Farm Service
Agency (FSA), or Rural Development. With respect to USDA
programs, section 103 of the Water Resources Planning Act is
intended to only focus on large scale water infrastructure
projects, not individual farm based water conservation, water
quality, or assistance to rural communities for drinking water.
As NRCS is the agency responsible for helping farmers and
ranchers implement voluntary, incentive-based conservation
practices that are all locally-led, the federal objective of
the principles and guidelines is already being met.
Furthermore, the Forest Service, RMA, FSA and Rural Development
all play important roles in helping farmers, ranchers, and
rural communities with finding critical solutions to problems
that are unique to farming, ranching and rural America, and
should not face unnecessary burden in complying with this
administrative requirement.
The Managers are concerned by reports that Federal
agencies other than USDA, as well as State and local
governments, are seeking to impose more stringent and larger
buffer requirements on land being enrolled in USDA conservation
programs. The Managers expect NRCS to continue to utilize their
own Field Office Technical Guide and conservation planning
tools to determine what is reasonable and needed to accomplish
the natural resource concerns to be addressed.
(27) Wetlands Mitigation
The House bill eliminates the requirement to provide
equivalent functions and values when more acreage is needed in
wetland conversion mitigation than a 1-for-1 acreage basis.
(Section 2609)
The Senate amendment requires the Secretary to conduct a
wetland mitigation study no later than 180 days after enactment
to assess the use of wetland mitigation to determine certain
impacts on wildlife. The study also should include
recommendations for improving wetland mitigation procedures and
increasing use of the wetland mitigation process by producers.
Lastly, the Senate amendment requires the Secretary to submit a
report of its findings to Congress no later than two years
after the date of enactment. (Section 2508)
The Conference substitute adopts neither the House nor
Senate provisions but provides $10 million in mandatory funding
for mitigation banking efforts. (Section 2609) The Managers
recognize that the use of wetlands mitigation is an important
tool for wetland habitat development and agriculture crop
production. The Managers encourage the Secretary to use
mitigation with the conversion of a natural wetland and
equivalent wetlands functions at a ratio not to exceed a ratio
of 1-to-1 acreage.
(28) Lesser Prairie Chicken Conservation Report
The House bill requires the Secretary to submit a report
to Congress no later than 90 days after enactment which
considers all USDA administered programs that benefit the
lesser prairie-chicken. (Section 2610)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
amendment. The amendment includes the addition of State plans
to the list of programs pertaining to the conservation of the
lesser prairie-chicken. (Section 2610)
(29) Highly Erodible Land and Wetland Conservation for Crop Insurance
The Senate amendment requires conservation compliance for
eligibility to receive premium assistance on crop insurance,
creates new provisions for determinations, administration, and
penalties unique to crop insurance, and gives technical
assistance priority to producers that need to come under
compliance. (Section 2609)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with amendment. (Section 2611) The amendment clarifies that for
compliance on highly erodible lands ineligibility for premium
assistance can only apply for reinsurance years after the year
in which there has been a final determination of a violation
and cannot apply to the reinsurance year in which the final
determination was made nor any reinsurance year prior to the
year the final determination was made. A determination is not
final until after the producer has exhausted all administrative
appeal rights. The substitute revises the application to
existing operations with prior violations so that the date for
compliance is the date of enactment of this Act. This means
that if a person is found to be out of compliance and would
have been out of compliance since that date, had they
participated in any programs requiring compliance, then they
have two reinsurance years to develop and comply with a
conservation plan.
The substitute also provides for the coordination of
certification processes so that the procedures and paperwork
that are required by this section for eligibility based on
wetlands compliance are also used for determining eligibility
based on highly erodible lands compliance. The amendment
clarifies the provisions for compliance with wetlands
conservation placing all of the components of compliance for
crop insurance premium assistance in a separate subsection. The
substitute also makes clear that ineligibility only applies to
premium assistance in reinsurance years after the year in which
a final determination is made and not to the reinsurance year
in which the final determination is made nor to any year prior
to that year.
The substitute revises the categories for the application
based on the conversion of a wetland. If the wetland is
converted at any time after the date of enactment of this Act,
the person becomes ineligible for premium assistance in the
reinsurance year after final determination, unless an exemption
applies or if the wetland converted constitutes less than five
acres of the person's entire farm in which case the person can
choose to make a contribution to conservation equal to 150
percent of the cost of mitigation. If, however, the wetland was
converted at any time prior to the date of enactment of this
Act, the person cannot be found in violation and thus
ineligible for premium assistance based on that conversion.
Finally, if a new policy or plan of insurance becomes
available after the date of enactment, ineligibility for
premium assistance can only apply to conversions that take
place after the date the new policy or plan of insurance first
becomes available to the person. In this case the person has
two reinsurance years to mitigate the conversion before
ineligibility can apply to the subsequent reinsurance year. The
substitute also clarifies that a person who becomes subject to
wetlands compliance solely because of the enactment of this Act
has two reinsurance years after the year in which a final
determination is made to mitigate the conversion, and that a
person who is found to have converted a wetland in good faith
is also given two reinsurance years to mitigate the conversion.
The Managers do not intend for this language to cause any
change in current law or USDA policy relating to third-party or
landowner/tenant determinations of compliance, violations, or
attribution.
With regard to the provisions for equitable contribution,
the Managers expect that the Secretary will determine the
period of violation to be the date on which the violation
occurred, then adjust for the later of the following: (1) the
first certification period for crop insurance assistance
following date of enactment, or (2) the first date for which
the individual was eligible for and made application for a crop
insurance premium subsidy following the date of violation. The
maximum amount will include the equivalent of the insurance
subsidy provided in the year of the improper certification and
all subsequent years through the date of final determination.
Payment of the equitable contribution does not remove or limit
their responsibility to comply with the soil erosion
requirements or wetland conservation, restoration or mitigation
requirements within the prescribed timeframes to retain the
benefits of premium assistance in subsequent years. (Section
2611)
(30) Adjusted Gross Income Limitation for Conservation Programs
The House bill replaces the two income limitation test
(farm and nonfarm income) with a single $950,000 adjusted gross
income limitation for commodity and conservation programs.
(Section 1604)
The Senate amendment eliminates the Secretary's waiver
authority to protect environmentally sensitive land of special
significance. (Section 2610)
The Conference substitute adopts the House provision with
an amendment. The amendment sets the cap to $900,000. (Section
1605)
Subtitle H--Repeal of Superseded Program Authorities and Transitional
Provisions; Technical Amendments
(31) Wetlands Reserve Program
The House bill repeals WRP with transition language for
current contracts and easements. It allows the Secretary to use
ACEP funds and becomes effective October 1, 2013. (Section
2704)
The Senate amendment allows the use of prior year
Commodity Credit Corporation (CCC) funds for contracts entered
into before October 1, 2012. (Section 2704)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments providing authority
for the Secretary to continue the necessary administrative
actions and utilize prior year funding to fulfill the
commitment and obligations of agreements, contracts, and
easements entered into prior to date of enactment. (Section
2703)
The Managers expect USDA to exhaust available prior year
funding to address any costs associated with fully implementing
prior year wetland reserve program easement enrollments,
including closing, restoration, management, and maintenance of
wetland easements in an effort to protect, restore, and enhance
wetland functions and values.
Section 2712 of the Conference Report is added to address
the variety of effective dates distributed through the
conservation title in the House bill and the Senate amendment.
By including this language the Managers stress to USDA the
importance of continuing program services and providing
certainty to farmers and ranchers amid the passage of this
bill. Therefore, the Managers intend for USDA to continue to
operate the existing conservation programs as necessary through
the current fiscal year using existing regulations while the
Department works to expediently develop the regulations needed
to implement the amendments made by this Title. The Managers
further intend for existing regulations to be used for the
interim administration of EQIP and CSP while the revisions to
these programs are being implemented.
(32) Farmland Protection and Farm Viability Program
The House bill repeals FPP with transition language for
current contracts and easements. The bill also allows the
Secretary to use ACEP funds. It includes an effective date of
October 1, 2013. (Section 2704)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012. It
does not allow the use of ACEP funds. No conforming amendment
for heading. (Section 2704)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments providing authority
for the Secretary to continue the necessary administrative
actions and utilize prior year funding to fulfill the
commitment and obligations of agreements, contracts, and
easements entered into prior to date of enactment. (Section
2704)
(33) Grassland Reserve Program
The House bill repeals GRP with transition language for
current contracts, agreements and easements. (Section 2705)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012.
(Section 2705)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments providing authority
for the Secretary to continue the necessary administrative
actions and utilize prior year funding to fulfill the
commitment and obligations of agreements, contracts, and
easements entered into prior to date of enactment. (Section
2705)
(34) Agricultural Water Enhancement Program
The House bill repeals the Agricultural Water Enhancement
Program (AWEP) with transition language for current contracts
and agreements. (Section 2706)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012.
(Section 2706)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments providing the
authority for the Secretary to continue the necessary
administrative actions and utilize prior year funding to
fulfill the commitment and obligations of agreements,
contracts, and easements entered into prior to date of
enactment. (Section 2706)
With the continuation and consolidation of AWEP
authorities in the RCPP, the Managers intend the Secretary to
continue assistance to agricultural producers that address
irrigation and water management challenges across various
regions of the country. The Managers urge NRCS to continue to
give priority to cost-sharing proposals which incorporate
irrigation management systems that involve water metering, soil
moisture monitoring, proven irrigation delivery systems, and
telemetry to ensure accurate water use measurement and
management. The Managers urge NRCS to consider multiple
producer applications or applications submitted on behalf of
entities representing a group of producers to encourage greater
participation in the program and maximize the benefits of water
management.
(35) Wildlife Incentive Program
The House bill repeals WHIP with transition language for
current contracts. It allows use of EQIP funds. (Section 2707)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012. EQIP
funds may be used but only after prior year funding is
exhausted. (Section 2707)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments providing authority
for the Secretary to continue the necessary administrative
actions and utilize prior year funding to fulfill the
commitment and obligations of agreements, contracts, and
easements entered into prior to date of enactment. (Section
2707)
(36) Great Lakes Basin Program
The House bill repeals the Great Lakes Basin Program with
an effective date of October 1, 2013. (Section 2708)
The Senate amendment includes the same provision.
(Section 2708)
The Conference substitute adopts the House provision with
an amendment of the effective date.
The Managers recognize that the Great Lakes Basin Program
has been an important and successful program for 22 years that
has implemented over 400 projects that have reduced soil
erosion and improved water quality in Great Lakes watersheds.
Since 2008, the program has supported implementation of both
the Great Lakes Regional Collaboration (GLRC) and the Great
Lakes Restoration Initiative (GLRI) by directing resources to
priority watersheds. The Managers intend the program to
continue serving this purpose for the duration of the GLRI.
(Section 2708)
(37) Chesapeake Bay Watershed Program
The House bill repeals the Chesapeake Bay Watershed
Program with transition language for current contracts,
agreements, and easements. The bill allows use of RCPP funds.
(Section 2709)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012.
(Section 2709)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments. (Section 2709)
The Managers recognize that the Chesapeake Bay Watershed
Program established in 2008 complemented other conservation
programs by enhancing their reach and effectiveness within the
tributary watersheds. Since 2008, the program has supported
farm level implementation of conservation practices benefiting
water quality by improving nutrient management, reducing
sedimentation, and restoring riparian areas. With the
consolidation of the Chesapeake Bay Watershed Program into the
Regional Conservation Partnership Program, the Managers intend
the RCPP to continue assistance to agricultural producers
consistent with the purposes of the Chesapeake Bay Watershed
Program.
(38) Cooperative Conservation Partnership Initiative
The House bill repeals the Cooperative Conservation
Partnership Initiative with transition language for current
contracts and agreements. It allows the use of RCPP funds.
(Section 2710)
The Senate amendment allows the use of prior year CCC
funds for contracts entered into before October 1, 2012.
(Section 2710)
The Conference substitute adopts the Senate provision
with technical and clarifying amendments. (Section 2710)
The Managers recognize that the CCPI established in 2008
was built on successful partnership approaches in previous Farm
Bills and encouraged the Secretary to work with specific
priority regions across the country. As such, the Managers
expect the Secretary to build from those lessons learned when
and where those projects were most successful.
Title III--Trade
(1) General authority
The House bill clarifies that Title II emergency and
nonemergency assistance is to be implemented by the
Administrator of the U.S. Agency for International Development
(USAID). The objectives of Title II programs are modified to
include building resilience to mitigate food crises and
reducing the need for future emergency aid. (Section 3001)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 3001)
The Managers modified the general authorities in Title II
of the Food for Peace Act to place a greater emphasis on
projects which focus on building resiliency in the recipient
population where food shortfalls and droughts are common. This
change is intended to prompt USAID to require measurable
outcomes in multiyear projects in order to reduce dependency on
foreign aid.
(2) Support for eligible organizations
The House bill amends section 202(e)(1) of the Food for
Peace Act by reducing the maximum allowable cash assistance
available for administrative costs in non-emergency programs
from 13% to 11% of the total funds made available for the
program. (Section 3002)
The Senate amendment amends Section 202(e)(1) to increase
the maximum allowable cash assistance available for
administrative costs in non-emergency programs from 13% to 15%
of the total funds made available for the program. It also
allows funds to be used for activities that ``enhance'' food
aid projects. (Section 3001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment increases the maximum
allowable cash assistance available for administrative costs to
20% of the total funds made available for the program. The
amendment also revises the list of purposes for which the cash
assistance may be used. (Section 3002)
The Managers expect that additional funds made available
under this provision will provide increased flexibility to
USAID. The Managers understand that an array of programs and
tools are needed to balance the diverse and complex food aid
demands of various countries and regions. As such, the Managers
sought to provide additional cash assistance to accompany
current monetization policy. The increased flexibility gained
by additional cash assistance will allow USAID to better
respond and prioritize food aid needs in real time and is
intended to assist in the transition of programs from emergency
interventions to programs which build resiliency in instances
of protracted humanitarian crises.
(3) Food aid quality
The House bill amends section 202(h) of the Food for
Peace Act by requiring the Administrator to consult with the
Secretary in performing the requirements of this subsection
related to food aid quality by establishing a mechanism for
USDA and USAID to evaluate food aid commodities and implement
appropriate changes; by instructing the agencies to update
program guidance on the use of new commodities; and by limiting
the available funding for these purposes to $1 million.
(Section 3003)
The Senate amendment replaces and expands Section
202(h)(1) to require that the Administrator use funds available
to carry out Title II to assess types and quality of
agricultural commodities donated as food aid; adjust products
and formulation as necessary to meet nutrient needs of target
populations; test prototypes; adopt new specifications or
improve existing specifications for micronutrient food aid
products based on the latest development in food and nutrition
science; develop new program guidance for eligible
organizations to facilitate improved matching of products to
purposes; develop improved guidance on how to address
nutritional efficiencies among long-term recipients of food
aid; and evaluate the performance and cost-effectiveness of
new/modified food products and program approaches to meet
nutritional needs of vulnerable groups. It also extends
authority to fund this section for fiscal years 2014 through
FY2018. (Section 3002)
The Conference substitute adopts the Senate provision.
(Section 3003)
In May 2011, the Government Accountability Office (GAO)
completed a report which cites deficiencies in the nutrition
and quality controls of U.S. food aid commodities. Included in
that report are recommendations that USAID review food aid
packaging, track food aid quality throughout the supply chain,
and ensure that available food aid commodities meet the
nutritional needs of recipients. The Managers expect USAID to
set verifiable goals and to maximize strong public-private
partnerships with food manufacturers and other stakeholders to
more quickly address the deficiencies highlighted in the May
2011 report by using currently available studies on food aid
quality and nutrition. The Managers encourage USAID to
establish multi-year approaches to the procurement of high-
value products. Longer term procurement, to the extent
practicable, is expected to encourage investment of specialized
equipment needed to deliver critical products in a timely and
cost-effective manner. In recognition of the importance
associated with close collaboration between USDA and USAID on
approving new products, the Managers expect both agencies to
adopt clear guidelines to facilitate the swift adoption of new
products in order to quickly capture the benefits of the
research and testing under this section.
(4) Food Aid Consultative Group
The House bill amends Section 205 of the Food for Peace
Act by reauthorizing the Food Aid Consultative Group (the
``Group'') through December 31, 2018. Section 205 is also
amended by adding representatives from the processing sector to
the Group. The provision further requires the Administrator to
consult with the Group on the implementation of food aid
quality provisions and requires the Administrator to provide
the Group at least 45 days for review and comment before a
proposed regulation handbook or guideline, or revision thereof,
becomes final. (Section 3005)
The Senate amendment reauthorizes FACG through December
31, 2018. (Section 3004)
The Conference substitute adopts the House provision.
(Section 3005)
The Managers note that while USAID places significant
burdens for the success of programs upon implementing partners
and other stakeholders, feedback from these groups through the
Food Aid Consultative Group (FACG) is not adequately
incorporated into program guidelines. Before new guidance is
finalized, the Managers expect USAID to give sufficient notice
to stakeholders when changes are made to the Food for Peace
Guidelines and require new guidance to be promulgated in a
timely manner after any changes to the Food for Peace Act.
(5) Oversight, monitoring, and evaluation
The House bill amends Section 207 (c) by requiring that
all regulations and revisions to agency guidance necessary for
implementation of the Federal Agricultural Reform and Risk
Management Act be issued within 270 days of enactment.
The provision removes authority for purchasing new
computer systems, removes obsolete reporting requirements, and
provides $10 million per year for monitoring and evaluation.
Further, the provision requires a report on the extent of
monitoring and evaluation required by eligible organizations
participating in Food for Peace programs. (Section 3006)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment provides $17 million per year for
monitoring and evaluation for each of fiscal years 2014 through
2018, and permits up to $500,000 of those funds in each fiscal
year to be used for maintaining information technology systems.
(Section 3006)
The Managers understand that monitoring is essential to
ensuring that USAID's food aid programs in developing countries
are implemented as intended. As such, the Managers want to
convey their strong support for the Famine Early Warning
Systems Network (FEWS Net). FEWS Net is an integral component
of our nation's ability to effectively and efficiently respond
to crisis situations worldwide.
The Managers also expect USAID to complete development of
IT systems without additional Food for Peace resources. Funding
is continued for additional monitoring and evaluation of
programs at a level which reflects resources available for Food
for Peace programs. The Managers note that in 2009 the GAO
concluded that monitoring of programs was inconsistent and that
program management was not modified to reflect information
gained from the monitoring and evaluation conducted by or for
USAID. The Managers expect USAID to make improvements in
program guidance based on the monitoring and evaluation
conducted.
(6) General monetization provisions
The House bill amends section 403 of the Food for Peace
Act by requiring USDA and USAID to seek information on the
potential benefits of monetization to local economies. The
provision clarifies that implementing partners should sell
monetized commodities at ``fair market value.'' The Secretary
and the Administrator are also instructed to coordinate
assessments which guide the use of monetization to ensure
consistency across programs. The provision requires USAID to
issue a report detailing the use of funds made available for
implementing partners, including funds for administrative and
indirect costs. (Section 3008)
The Senate amendment amends Section 403 of the Food for
Peace Act to require that the rate of return for a commodity
monetized (sold in recipient countries) be at least 70 percent.
The ``rate of return'' is defined as equal to the proportion
that the proceeds the implementing partners generate through
monetization bears to the cost to the federal government to
procure and ship the commodities to a recipient country for
monetization. (Section 3007)
The Conference substitute adopts the House provision with
an amendment. The amendment strikes the clarification regarding
monetizing commodities at fair market value and the provision
requiring that the Secretary and Administrator coordinate
assessments. The amendment revises the report on use of funds
to require that the Administrator report on the amount of funds
spent on each project; how the funds were used; the rate of
return on monetized commodities; and for rates of return less
than 70 percent, the reason for such rate of return. (Section
3008)
In June 2011, GAO reported on inefficiencies and adverse
impacts of monetization. The Managers agree that both USDA and
USAID should have consistent policies governing both agencies'
monetization activities. The Managers expect USAID to consider
the full impact of monetization when considering a proposal
under Food for Peace. The Managers note existing requirements
for USDA and USAID to approve only those sales which will not
disrupt the usual marketing and processing of commodities in
the recipient country. The Managers support the use of a
variety of food assistance modalities in responding to
emergency and non-emergency food aid needs, including the use
of monetized in-kind commodities. However, the Managers are
aware of concerns with lack of accountability and efficiency,
including low rates of return realized on monetized
commodities. As such, the report requested in this Act seeks to
enhance transparency and increase accountability while ensuring
rates of return which reflect reasonable market prices on
monetized commodities. This is a part of the Managers' larger
effort to provide greater flexibility to USAID and USDA so the
agencies have the ability to use the most effective food
assistance tool in each situation.
(7) Additional prepositioning sites and testing
The House bill allows the Administrator discretion to
establish additional prepositioning sites based on the results
of assessments of need, technology, feasibility, and cost.
Funding for prepositioning is increased to $15,000,000 per
year. (Section 3009)
The Senate amendment allows funds to be used for the
testing of food aid shipments. (Section 3009)
The Conference substitute adopts the House provision.
(Section 3009)
The Managers note the rapid response which was possible
due to prepositioned commodities when USAID responded to a
natural disaster in 2013 in the Philippines. The Conference
substitute clarifies existing authority for USAID to consider
additional prepositioning sites, and the Managers expect that
additional funds ensure USAID will be able to effectively
deploy and manage critical commodities ahead of any future
crisis. The Managers also note USAID's efforts to field
additional food aid products and expect prepositioning these
products will be useful in responding quickly to acute
humanitarian needs.
(8) Annual report on food aid programs and activities
The House bill amends section 407(f) of the Food for
Peace Act by requiring the annual report regarding food aid
programs and activities to include information on the actual
beneficiaries of the programs and by specifying the report
include the McGovern-Dole International Food for Education and
Child Nutrition Program. (Section 3010)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 3010)
(9) Funding
The House bill amends section 412 of the Food for Peace
Act by reducing the authorization for appropriations from $2.5
to $2 billion per year. (Section 3012)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(10) Safebox funding
The House bill requires a minimum of $400 million be
expended for nonemergency assistance in each of fiscal years
2014 through 2018. (Section 3012)
The Senate amendment repeals Section 412(e) and requires
that of funds made available under the Food for Peace Act, not
less than 20% nor more than 30% shall be expended for
nonemergency food aid under Title II. Further, the amount made
available to carry out nonemergency food aid programs under
Title II shall not be less than $275 million for any fiscal
year. (Section 3011)
The Conference substitute adopts the Senate provision
with an amendment. The amendment sets the minimum level of
nonemergency assistance at $350,000,000. (Section 3012)
The Managers affirm the importance of maintaining strong
development programs in support of building030 resilient
communities and reducing dependency on foreign assistance. The
Managers expect this flexibility to help USAID efficiently and
effectively allocate funds in a timely manner. By including a
percentage structure to be applied to annual appropriations,
the managers intend to provide USAID the flexibility to respond
to urgent situations when needed or to allocate additional
funds for development in years without significant emergency
needs.
(11) Farmer-to-Farmer program
The House bill provides for the Farmer-to-Farmer program
not less than the greater of $15,000,000 or 0.5 percent of the
funds made available to carry out the Act. (Section 3014)
The Senate amendment provides for the Farmer-to-Farmer
program not less than the greater of $10,000,000 or 0.6 percent
of the funds made available to carry out the Act. (Section
3014)
The Conference substitute adopts the House provision with
an amendment. The amendment provides not less than the greater
of $15,000,000 or 0.6% of the funds made available to carry out
this Act for the Farmer-to-Farmer program. The amendment adds a
GAO report to review the program and provide recommendations to
improve the monitoring and evaluation of the program. (Section
3014)
(12) Flexibility of CCC funds
The Senate amendment revises Section 406 of the Food for
Peace Act to permit the use of funds available under the Act to
pay costs of up to 20% of activities conducted in recipient
countries by nonprofit voluntary organizations, cooperative, or
intergovernmental organizations. (Section 3008)
The House bill contains no comparable provision.
The Conference substitute adopts the House position.
(13) Coordination of foreign assistance programs report
The Senate amendment strikes the language requiring a
report on improved procurement planning. (Section 3012)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 3015)
(14) Prohibition on assistance for North Korea
The Senate amendment states that Title II funds cannot be
used to provide assistance to North Korea. The President can
waive this funding prohibition if the President determines and
certifies to the House and Senate Agriculture Committees, the
House Foreign Affairs Committee and the Senate Foreign
Relations Committee that the waiver is in the national interest
of the United States. (Section 3015)
The House bill contains no comparable provision.
The Conference substitute adopts the House position.
(15) Export Credit Guarantee programs
The House bill amends section 211 of the Agricultural
Trade Act of 1978 by reauthorizing funding for the Export
Credit Guarantee Program through 2018. (Section 3101)
The Senate amendment extends funding through fiscal year
2018 and reduces the amount of allowable credit guarantees to
$4.5 billion. (Section 3101)
The Conference substitute adopts the House provision with
an amendment. The amendment removes outdated language
applicable to previous fiscal years and allows the Secretary to
implement the program in a manner consistent with WTO
obligations by including language authorizing the Secretary to
adjust the program; reducing the maximum tenor for loan
guarantees made available under the program to 24 months;
striking a provision requiring that the Secretary maximize the
amount of credit guarantees made available each fiscal year;
and by striking a provision restricting the Secretary's ability
to adjust program fees. (Section 3101)
The Managers affirm the importance of export programs
that yield mutual benefits for both American agriculture and
international trading partners. The Managers are aware of
outstanding questions generated by the World Trade Organization
dispute WTO/DS267, and the Conference substitute includes
reforms to improve existing programs. It is the Managers'
strong intent that any discretion provided to the
Administration with regard to dispute WTO/DS267 be used to
reach a negotiated solution to the dispute.
(16) Food for Progress
The Senate amendment permits use of funds available under
the Food for Peace Act to pay costs of up to 20% of activities
conducted in recipient countries by nonprofit voluntary
organizations, cooperative, or intergovernmental organizations.
It requires that the rate of return for a commodity monetized
(sold in recipient countries) be at least 70%. The ``rate of
return'' is defined as equal to the proportion that the
proceeds the implementing partners generate through
monetization bears to the cost to the federal government to
procure and ship the commodities to a recipient country for
monetization. (Section 3201)
The House bill contains no comparable provision.
The Conference substitute adopts the House position.
(17) Spiny Dogfish study
The House bill requires the Secretary of Agriculture to
conduct a study on the market for the U.S. Atlantic Spiny
Dogfish. (Section 3205)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 3205)
(18) Global Crop Diversity Trust
The House bill amends section 3202(c) of the Food,
Conservation, and Energy Act of 2008 by reauthorizing USAID to
make a contribution of up to $50 million over 5 years to the
Global Crop Diversity Trust. (Section 3206)
The Senate amendment reauthorizes U.S. contribution to
the Global Crop Diversity Trust for fiscal years 2014-2018 at
current levels. (Section 3206)
The Conference substitute adopts the Senate provision.
(Section 3206)
(19) Undersecretary for Foreign Agricultural Services
The House bill amends Subtitle B of the Department of
Agriculture Reorganization Act of 1994 by adding a new section
allowing USDA to establish the position of Under Secretary for
Foreign Agricultural Services, which would be appointed by the
President with the advice and consent of the Senate. (Section
3207)
The Senate amendment requires the Secretary, in
consultation with the House and Senate Agriculture Committees
and House and Senate Appropriations Committees to propose a
plan for reorganization of the trade functions of USDA,
including the establishment of an Under Secretary of
Agriculture for Trade and Foreign Agricultural Affairs. The
Secretary is required to report on the plan 180 days after the
farm bill's enactment, and within one year of submission of the
report, the Secretary shall implement the reorganization plan
including establishment of the Under Secretary position.
(Section 3209)
The Conference substitute adopts the Senate provision.
(Section 3208)
The Managers recognize that international trade is
critically important to the economic vitality of the U.S.
agriculture and food industry and a major engine of U.S.
economic growth. Trade currently accounts for more than 25
percent of U.S. farm receipts, and the production from one out
of every three acres planted is exported. Our vast and
efficient export system, including handling, processing and
distribution of our food and agricultural products, creates
millions of U.S. jobs and helps feed hundreds of millions all
over the globe. Our $32 billion net trade balance in
agriculture and food products in 2012 represented the single
largest contribution to our balance of payments.
The trade organizational structure at USDA has remained
unchanged since it was last reorganized in 1978. Over this
period, the value and nature of U.S. agriculture exports has
changed dramatically. In 1978, U.S. agriculture exports totaled
$29 billion, whereas in 2012 they reached $136 billion.
Meanwhile, over the last 30 years the challenges that U.S.
agriculture faces in global markets have increased and markedly
changed from primarily tariff barriers to phytosanitary and
other non-tariff trade barriers.
The Managers agree that an Under Secretary for Trade and
Foreign Agricultural Affairs will provide a singular focus on
trade and foster more effective coordination of transparent,
rules-based trade policies in other USDA agencies. Such a
position will bring unified, high level representation to key
trade negotiations with senior, foreign officials and within
the Executive Branch. Furthermore, the creation of this Under
Secretary position will help streamline management, create
greater efficiencies and enhance emphasis in the Office of the
Under Secretary responsible for key domestic programs.
Given the importance of this provision, the Managers
expect USDA to keep Congress regularly informed as to the
progress on the preparation of the reorganization report and,
once completed, its efforts to implement the reorganization
plan within the statutory deadlines.
(20) USDA certificates of origin
The House bill requires the Secretary of Agriculture to
seek to ensure that USDA certificates of origin are accepted by
any country with which the United States has entered into a
Free Trade Agreement providing preferential duty treatment.
(Section 3208)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(21) Local and regional food aid procurement projects
The Senate amendment establishes a local and regional
procurement program with appropriations of $60 million
authorized for each of fiscal years 2014 through 2018.
Preference in carrying out this program may be given to
eligible organizations that have, or are working toward,
projects under the McGovern-Dole International Food for
Education and Child Nutrition Program. (Section 3207)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes appropriations of
$80,000,000 for each of fiscal years 2014 through 2018.
(Section 3207)
The Managers further note that the Local and Regional
Procurement (LRP) pilot program authorized by Section 3206 of
the Food, Conservation, and Energy Act of 2008 was completed,
with 23 field-based projects carried out in 2009-2011 by the UN
World Food Program and PVOs. A study of the projects was
undertaken by a consortium of PVOs participating in the pilot
and economists at Cornell University, as well as an independent
study conducted as required in the legislation. The statutorily
required study found that in the majority of circumstances,
food aid commodities procured locally or regionally were both
less costly for some commodities and delivered more quickly
than comparable commodities sourced in the United States and
shipped to the study countries. However, the Managers note the
absence of any comparison to prepositioned commodities when
reviewing timeliness of deliveries. The Managers further note
on page 1 of the study, that ``LRP may pose risks for local
markets and vulnerable households'', indicating care should be
taken in pursuing the most appropriate areas in which to
implement LRP projects. In support of the broader emphasis on
building resiliency, the Managers expect USDA to give priority
to projects with the greatest long-term developmental benefits.
Section 3207 extends the LRP pilot program into an
authorized program to improve U.S. international food
assistance, by providing a new, more flexible programming tool.
The Managers intend for the new program to complement existing
food aid programs, especially the McGovern-Dole program, and to
fill in nutritional gaps for targeted populations or food
availability gaps generated by unexpected emergencies. To be
eligible for this program, such gaps should be readily
addressable by procurement from local or regional food
supplies. In order to facilitate meeting the latter objective,
some portion of available funds should be reserved for
dispersal during the second half of each fiscal year, to be
available to address emergencies occurring after program
proposal deadlines expire. If, as certified by the
Administrator, no such emergencies occur, the conference
substitute provides authority for the Secretary to award
reserved funds to augment projects approved earlier in the
fiscal year.
(22) Donald Payne Horn of Africa Food Resilience Program
The Senate amendment establishes a pilot program to
effectively integrate all U.S.-funded emergency and long-term
development activities that aim to improve food security in the
Horn of Africa. It authorizes $10 million to carry out the
pilot project, subject to appropriations, and also requires the
USAID Administrator to report to appropriate committees of
Congress on the outcomes of the project. (Section 3208)
The House bill contains no comparable provision.
The Conference substitute adopts the House position.
Title IV--Nutrition
(1) Preventing payment of cash to recipients of supplemental nutrition
assistance benefits for the return of empty bottles and cans
used to contain food purchased with benefits provided under the
program
The House bill prevents the use of benefits to pay for
substantial bottle deposits that can be returned for a cash
refund. (Section 4001)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4001)
(2) Retail food stores
The House bill requires retailers to provide perishable
items in at least three of the staple food categories. (Section
4002(a)) The House bill requires that retailers will be
responsible for purchasing and paying for point-of-sale
equipment and supplies and terminates the use of manual
vouchers except in cases of disasters or other similar
situations and requires parties providing electronic benefit
transfer services to maintain unique terminal identification
numbers throughout the Supplemental Nutrition Assistance
Program (SNAP) routing system. Retailers are also required to
maintain a unique business identification number. (Section
4002(b)) The House bill amends section 7 of the Act by removing
outdated language related to the use of coupons (Section
4002(c)), and amends section 9 of the Act by allowing the
Secretary to consider the location of applicants in areas with
significantly limited access to food when approving retailers.
The House bill also adds and strengthens requirements about the
adequacy of the store's Electronic Benefits Transfer (EBT)
service. (Section 4002(d))
The Senate amendment requires that retailers will be
responsible for purchasing and paying for point-of-sale
equipment and supplies and terminates the use of manual
vouchers except in cases of disasters or other similar
situations. The Senate amendment requires parties providing
electronic benefit transfer services to maintain unique
terminal identification numbers throughout the SNAP routing
system. The Senate amendment removes outdated language related
to the use of coupons and allows the Secretary to consider the
location of applicants in areas with significantly limited
access to food when approving retailers. The Senate amendment
gives USDA authority to consider a store's depth of stock,
variety of staple food items, and the sale of excepted items
when approving a retailer. (Section 4006(b))
The Conference substitute adopts the Senate provision
with an amendment. The amendment strikes the language providing
USDA authority to consider a store's depth of stock, variety of
staple food items, and the sale of excepted items when
approving a retailer. The amendment requires that retailers
offer for sale on a continuous basis a variety of at least
seven foods in each of the four categories of staple foods
categories. The amendment requires that point of sale systems
set and enforce sales restrictions based on item eligibility
through scanning or product lookup entry and deny benefit
tenders for manually entered sales of ineligible items. The
amendment also requires that retailer purchase invoices and
other program-related records be made available for auditing.
(Section 4002)
The conference substitute reduces fraud at retail stores
by requiring a more rigorous standard for stores to become
eligible to process SNAP benefits. Section 4002 requires
participating retailers to stock perishable items in at least
three of the four staple food categories: dairy products; meat,
poultry, or fish; fruits or vegetables; and bread or cereals.
Currently, a store stocking as few as twelve food items, many
of which have limited nutritional value, could be eligible to
be a SNAP retailer. To address this, the conference substitute
requires retailers to stock, at a minimum, seven food items in
each of the staple food categories to be eligible. The Managers
intend for this requirement to serve as a minimum requirement
and do not intend in any way to discourage or prevent more
robust depth of stock. The Managers remain concerned with
retailers that meet the minimum of the existing regulations as
a way to gain entry into SNAP for the sole purpose of expanding
sales of excepted items, including liquor and tobacco, which is
decidedly contrary to the intent of the program.
To further combat fraud, this section places additional
preventative control requirements on EBT systems and provides
USDA the authority to inspect additional invoice and other
program-related records. The Managers intend for these measures
to be implemented in a way that reduces fraud without reducing
access, stigmatizing SNAP participants, or requiring overly
burdensome recordkeeping. Specifically regarding the new EBT
system requirements, the Managers expect that USDA will work to
ensure that these changes will not result in a considerable
increase in transaction errors, will not prevent split
transactions, will not increase delays in check-out lines, and
will not otherwise increase instances in which SNAP
participants are differentiated from other retail customers.
Regarding purchase invoices and other program-related records,
the Managers believe that retention for not longer than 36
months is an appropriate requirement, and is consistent with
requirements in other federal nutrition assistance programs.
This section also requires SNAP retailers to pay 100
percent of the cost of electronic benefit transfer (EBT)
machines, with some exemptions, and restricts states from
issuing manual vouchers for SNAP unless the Secretary deems it
necessary for emergency purposes. By including this provision,
the Managers are targeting fraud within the program, and do not
intend for credit card companies, banks, or others to impose
any additional fees in regard to the acceptance of SNAP EBT
benefits. Additionally, the Managers expect the Secretary to
work with retailers and relevant stakeholders in developing
regulations to implement a unique terminal identification
system. Credit card associations are considering implementation
of this practice across the entire retail industry in the near
future, and it is imperative that the Secretary work with SNAP-
approved retailers to ensure there are no additional costs or
burdens that are duplicative or inconsistent with common
commercial practices. The Managers acknowledge that many small
businesses and direct-to-consumer retailers continue to face
challenges related to the cost of utilizing EBT and advanced
technologies.
Having placed new requirements on retailers, the Managers
are concerned by the unpredictable and growing variation in the
timeline for retailer application approvals. The Managers
encourage the Secretary to work with retailers in the licensing
approval process in a timely manner.
The Managers recognize that current SNAP EBT transactions
running on the QUEST network do so efficiently and at minimal
or no cost to the retailer. The Managers encourage USDA to
continue to work with the states to ensure that all retailers
maintain the ability to use the QUEST network and do so without
being assessed new or added fees for its use.
Recognizing that issuance of SNAP benefits to all
participants on the same date within a month creates many
challenges both for suppliers and retailers, the Managers
encourage the Secretary to work with states to stagger the
monthly issuance of SNAP benefits across an entire month.
The Managers support preserving food access in food
shortage areas and encourage the Secretary to give broad
consideration to the impacts additional requirements will have
on food access in food deserts or other areas with limited food
access.
The Managers also encourage the Secretary to continue to
identify innovative ways in which to assist stores that do
provide critical food access to SNAP recipients in improving
inventory standards and stocking a robust supply of staple food
items.
The Managers also recognize that, in remote communities
in non-contiguous states, it is not unusual for there to be
only one retail food store in operation. These retail stores
are typically located in communities that are connected neither
to the rest of the state's road network nor to a major
electrical grid. Food is typically transported to the community
via small aircraft, and diesel generators generally provide
electrical power to such communities, posing challenges for
such stores to operate adequate refrigeration and freezing
equipment to store perishable foods. The Managers intend for
the Secretary to consider all of the aforementioned unique
criteria when evaluating applications by retail food stores
located in remote communities in non-contiguous states that are
either applying to participate in the SNAP program or currently
participate in the program.
(3) Food distribution program on Indian reservations
The House bill reauthorizes the Traditional and Locally-
Grown Food Fund in the Food Distribution Program on Indian
Reservations (FDPIR). (Section 4004) The House bill requires
USDA to study the feasibility of a demonstration project for
Tribes administering nutrition assistance programs in lieu of
states. (Section 4041)
The Senate amendment requires USDA to study the
feasibility of a demonstration project for Tribes to administer
nutrition assistance programs in lieu of states. The Senate
amendment allows Tribes to substitute local, tribal foods for
up to five percent of their FDPIR entitlement commodities.
(Section 4002)
The Conference substitute adopts the Senate provision
with an amendment.
The amendment provides $1,000,000 to conduct the study.
The amendment strikes the provision stating that up to five
percent of entitlement commodities may be used for purchasing
local and tribal foods and directs the Secretary to carry out a
demonstration project for the purchase of traditional and local
foods. (Section 4004)
The Managers recognize that federal regulations and
certification requirements can often be burdensome for small
producers, especially those on reservations. Often located in
remote locations, producers on reservations may not be close to
the Agricultural Marketing Service (AMS) inspectors necessary
for certification needed to provide fruits, vegetables, and
other agricultural commodities to federal nutrition programs.
Costs, including payments for inspector travel time, make
certification unachievable for many producers on reservations.
As a result, federal nutrition program recipients lose access
to locally produced, fresh commodities, and producers lose
access to a local market that would assist economic development
on reservations. To address this issue, the Managers encourage
the Secretary to work with Tribal Organizations to enable the
use of accredited third party certifiers; existing
infrastructure on reservations, such as extension agents; or
properly trained and certified Tribal employees or officers to
certify producers on reservations.
(4) Updating program eligibility
The House bill restricts categorical eligibility for SNAP
to only those households receiving cash assistance through
other low-income assistance programs. (Section 4005)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(5) Exclusion of medical marijuana from excess medical expense
deduction
The House bill prohibits medical marijuana from being
treated as a medical expense for purposes of income deductions.
(Section 4006)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4005)
Currently, eighteen States have State statutory
provisions that allow for the prescription of medicinal
marijuana to patients in limited circumstances. Five states had
previously allowed for the deduction of medicinal marijuana as
an allowable medical expense when calculating SNAP benefits. In
July 2012, USDA issued guidance to states, reaffirming its
long-standing policy that households may not receive a medical
deduction for medicinal marijuana. Because the Controlled
Substance Act (21 U.S.C. 801 et seq.) currently classifies
marijuana as a Schedule I controlled substance that has no
currently accepted medical use and cannot be prescribed for
medicinal purposes, the Managers expect that the Secretary will
continue to administer this provision in accordance with
current practice and procedures for illegal substances under
federal law.
(6) Standard utility allowances based on the receipt of energy
assistance payments
The House bill provides that only Low Income Home Energy
Assistance Program (LIHEAP) payments above $20 would trigger a
standard utility allowance (``SUA'') deduction. (Section 4007)
The Senate amendment provides that only LIHEAP payments
above $10 would trigger a SUA deduction. (Section 4003)
The Conference substitute adopts the House provision.
(Section 4006)
(7) Repeal of work program waiver authority
The House bill requires all able-bodied adults to meet
applicable work requirements by eliminating the ability of the
Secretary to grant waivers for states in areas of high
unemployment. The House bill maintains states' ability to
provide an exemption from the work requirements for 15 percent
of their Able-Bodied Adults Without Dependents (ABAWD)
population. (Section 4009)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(8) Technology modernization for retail food stores
The House bill requires the Secretary of Agriculture to
implement a pilot program to test the feasibility of allowing
retailers to accept SNAP benefits through mobile transactions.
(Section 4012)
The Senate amendment requires the Secretary of
Agriculture to conduct demonstration projects to authorize
redemption of SNAP benefits online and with mobile
technologies. By 2016, the Secretary shall allow redemption by
these processes in all States unless the results of the
demonstrations indicate these activities will not be beneficial
to the program. (Section 4008)
The Conference substitute adopts the Senate provision.
(Section 4011)
(9) Mandating State immigration verification
The House bill requires states to use an electronic
immigration status verification system to verify applicants'
immigration status. (Section 4015)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4015)
(10) Data exchange standardization for improved interoperability
The House bill establishes requirements, consistent with
other means tested programs, for the electronic content and
format of data used in the administration of SNAP. (Section
4016)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4016)
The Conference substitute expands upon the bipartisan
work begun by the Committee on Ways and Means Human Resources
Subcommittee to allow data both within and across key federal
assistance programs to operate more efficiently. These
standardization activities promote transparency, flexibility,
and consistency so data can be shared across the various
information technology platforms established by federal and
state agencies, increasing administrative efficiency and
reducing improper payments. This provision is not intended to
provide additional authority to standardize data but to drive
the process to occur across multiple federal agencies. As
identity theft and manipulation based fraud is on the rise in
the United States, the Managers direct the Secretary to
carefully analyze the possibility of identity theft and
manipulation-based fraud on SNAP participants and to ensure
that the Secretary is taking necessary steps to protect program
beneficiaries' personally identifiable information against
unauthorized disclosure.
(11) Pilot projects to improve Federal-State cooperation in identifying
and reducing fraud in the Supplemental Nutrition Assistance
Program
The House bill requires USDA to implement a pilot program
to allow states to operate EBT retailer fraud investigation
programs. (Section 4017)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4017)
(12) Prohibiting government-sponsored recruitment activities
The House bill prevents USDA from conducting recruitment
activities, advertising the SNAP program through television,
radio and billboard advertisements and from entering into
agreements with foreign governments to promote SNAP benefits.
The section further prevents States from being reimbursed for
similar activities. (Section 4018)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4018)
The Managers do not intend to prohibit activities that
provide basic program information including rights, program
rules, client responsibilities, and benefits. The Managers
acknowledge that certain vulnerable populations such as
elderly, homeless, or disabled individuals may require
additional assistance in applying for SNAP. The Managers do not
intend to preclude any specialized services for these
populations.
(13) Performance bonus payments
The House bill eliminates the performance bonuses
provided to states for effectively administering SNAP. (Section
4019)
The Senate amendment requires states to reinvest bonus
payments to prevent fraud and abuse and improve the
administration of the SNAP program. (Section 4012)
The Conference substitute adopts the Senate provision.
(Section 4021)
(14) Funding of employment and training programs
The House bill reduces the formula-funded allocation to
State agencies to carry out employment and training programs
from $90 million to $79 million per year. (Section 4020)
The Senate amendment provides $90 million in mandatory
funds in FY2014, FY2015, FY2016, and FY2017. The Senate
amendment reduces mandatory funding to $80 million for 2018 and
each fiscal year thereafter. (Section 4013)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides $90 million per year
in mandatory funds. (Section 4022)
(15) Monitoring employment and training programs
The House bill requires that the Secretary of Agriculture
implement monitoring and performance measures for State
employment and training programs. The section requires that the
Secretary of Agriculture, in consultation with the Secretary of
Labor, develop reporting measures for participants in
employment and training programs and that states report
annually on such measures. The section further provides that if
a State agency's performance is inadequate, the Secretary of
Agriculture may require the State agency to modify its
employment and training plan. (Section 4021)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4022)
(16) Cooperation with program research and evaluation
The House bill requires entities that participate in SNAP
to cooperate with the Department of Agriculture and its agents
in conducting evaluations and studies authorized under the Act.
(Section 4022)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4023)
(17) Pilot projects to reduce dependency and increase work requirements
and work effort under Supplemental Nutrition Assistance Program
The House bill requires USDA to conduct a pilot project
to identify best practices for employment and training programs
to raise the number of work registrants who obtain unsubsidized
employment, increase their earned income, and reduce their
dependence on public assistance. (Section 4023)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment incorporates certain provisions of
the House language into the pilot project described in (32),
below. (Section 4022)
(18) Authorization of appropriations
The House bill reauthorizes appropriations for SNAP and
related programs through FY2016. (Section 4024)
The Senate amendment reauthorizes appropriations for SNAP
and related programs through FY2018. (Section 4014)
The Conference substitute adopts the Senate provision.
(Section 4024)
(19) Review, report, and regulation of cash nutrition assistance
program benefits provided to Puerto Rico
The House bill ensures that no funds made available to
the Commonwealth of Puerto Rico may be used to provide
nutrition assistance in the form of cash. (Section 4025)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment directs the Secretary to conduct a
review of, and report on, the provision of nutrition assistance
in the form of cash in Puerto Rico. The Secretary is directed
to phase out the provision of cash assistance by FY 2021.
Notwithstanding the phase-out, the Secretary may approve a plan
that provides cash to certain categories of participants if the
Secretary determines that discontinuation of cash benefits will
cause significant adverse effects. (Section 4025)
Since 1982, Puerto Rico has operated the Nutrition
Assistance Program (NAP) from federal funds received as a block
grant instead of the Supplemental Nutrition Assistance Program
(SNAP). Under the terms of the block grant, Puerto Rico has had
broad authority in its administration of these funds, and
currently permits up to 25 percent of benefits to be issued in
the form of cash. Permission to issue benefits in cash was
granted in 2001, intended to alleviate concerns regarding lack
of EBT access in Puerto Rico.
With advancement in technologies and the institution of a
Commonwealth-wide sales tax in 2006, the vast majority of food
retailers in Puerto Rico now accept EBT unless they choose not
to. With this change in EBT capability and the Managers'
ongoing interest in ensuring that each dollar of nutrition
funding be used to reduce food insecurity, rigorous review and
phase-out of the use of cash benefits is necessary.
However, as noted in the 2010 study conducted by Insight
Policy research on behalf of the Food and Nutrition Service
(FNS), Supplemental Nutrition Assistance Program in Puerto
Rico: A Feasibility Study, ``It is difficult to determine what
the full impact of a completely non-cash allotment would be on
Puerto Rico retailers and participants.'' Recognizing this and
that there are factors in Puerto Rico that complicate the
ability of program participants to access nutrition through EBT
redemption, the Managers have directed the Secretary to review
the situation. The Managers expect the Secretary to consider
all relevant factors in exercising the discretion provided in
exempting program participants or categories of participants
that may be harmed by the discontinuation of cash benefits.
(20) Assistance for community food projects
The House bill provides an additional $10 million per
fiscal year for Community Food Projects and directs that $5
million be used for incentives. (Section 4026)
The Senate amendment continues support for Community Food
Projects while incorporating an increased food insecurity
focus, along with hunger-free communities goals. Grants under
this program are subject to a 50 percent matching requirement
and periodic effectiveness reports. The Senate amendment
eliminates the Healthy Urban Food Enterprise Development Center
and Innovative Programs for Addressing Common Community
Problems provisions. Funding remains at $5 million in annual
mandatory funds. (Section 4015)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides $9 million in annual
mandatory funds. (Section 4026)
(21) Emergency food assistance
The House bill provides an additional $70 million in
FY2014 and FY2015 and an additional $20 million per fiscal year
thereafter for Emergency Food Assistance. Inflation adjustments
remain in place. (Section 4027)
The Senate amendment increases funding by $54 million
over 10 years. Entitlement commodity funding increases are in
the first five years of the budget window: +$22 million for
FY2014, +$18 million for FY2015, +$10 million for FY2016, +$4
million for FY2017. Inflation adjustment between years remains
in place. (Section 4016)
The Conference substitute adopts the House provision with
an amendment. The amendment provides an increase in funding of
$50 million for fiscal year 2015, $40,000,000 for fiscal year
2016, $20,000,000 for fiscal year 2017, and $15,000,000 for
fiscal year 2018. Funding for fiscal year 2019 and each fiscal
year thereafter will be indexed from the fiscal year 2018
funding level. (Section 4027)
The Managers strongly encourage the Secretary to review
potential bonus and surplus removal purchases on a real-time
basis and adjust the timing of mandatory food purchases and
deliveries to address periods when bonus and specialty crop
deliveries are expected to be low. Having a more balanced
delivery of both mandatory and bonus food purchases will enable
emergency feeding organizations to better serve those in need.
The Managers also intend for the Secretary to consider
the cost of regulatory changes on the operation of emergency
feeding operations in order to prevent such regulatory changes
from adversely affecting the services provided by the emergency
feeding organizations. The Managers encourage the Secretary to
work with emergency feeding organizations to address these
concerns.
Recognizing that some food banks also provide Commodity
Supplemental Food Program (CSFP) commodities, the Managers
understand the importance of CSFP as a critical nutrition
program. Currently, CSFP provides nutritious food, often in the
forms of food boxes for home delivery, that are designed to
meet the dietary needs of seniors, women and children in 39
states, two Indian tribal organizations, and the District of
Columbia. In fiscal year 2013, 97 percent of the recipients
were elderly individuals with an annual income at or below
$14,937. CSFP serves a unique niche by providing nutritious
commodities to homebound seniors who are at severe risk for
hunger.
The Managers fully support the continued operation of the
program and recognize the need for expansion of the CSFP to
reach additional elderly Americans at severe risk for hunger.
The Managers note that there are six states that have currently
been approved by USDA for entry into CSFP, subject to the
availability of appropriations. Provided that sufficient funds
are appropriated by Congress, the Managers encourage the
Secretary to approve all remaining states for participation and
to take action to reach all seniors at severe risk for hunger
in all participating states and other jurisdictions.
(22) Nutrition education
The House bill adds ``promoting physical activity'' as an
allowable use of funding. (Section 4028) The House bill reduces
funding for FY2014 from $401 million to $372 million and then
adjusts for inflation in subsequent years.
The Senate amendment adds ``promoting physical activity''
as an allowable use of funding. (Section 4017)
The Conference substitute adopts the Senate provision.
(Section 4028)
(23) Retail food store and recipient trafficking
The House bill provides USDA $5 million annually in
additional mandatory funding to track and prevent SNAP
trafficking. (Section 4029)
The Senate amendment provides USDA $5 million in FY2014
in additional mandatory funding to track and prevent SNAP
trafficking using data mining technologies. The Senate
amendment also authorizes $12 million subject to appropriations
for each year FY2014-FY2018. (Section 4018)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides one-time mandatory
funding of $15 million in FY 2014 to remain available until
expended, and an authorization of $5 million per year. (Section
4029)
(24) Tolerance level for excluding small errors
The House bill prevents the Secretary from excluding
payment errors greater than $25 from improper payments
calculations. (Section 4031)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment sets the tolerance level for
excluding payment errors from improper payment calculations at
$37 and indexes the level to the thrifty food plan. (Section
4019)
(25) Commonwealth of the Northern Mariana Islands pilot program
The House bill requires the Secretary of Agriculture to
conduct a study to assess the capabilities of the Commonwealth
of the Northern Mariana Islands (CNMI) to operate the SNAP
program in the same manner it is operated in the states. The
section requires that if, following the study, the Secretary of
Agriculture determines that it is feasible for the CNMI to
operate the SNAP program in the same manner it is operated by
the states, the Secretary of Agriculture shall establish a
pilot program in CNMI for such purposes. (Section 4032)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment provides that if the Secretary does
not conduct a pilot with the funds provided in this section,
the funds shall be used for program administration within CNMI.
(Section 4031)
(26) Annual State report on verification of SNAP participation
The House bill requires states to submit an annual report
to the Secretary sufficient to show that the state is verifying
that its SNAP recipients are not receiving benefits in more
than one state, no benefits are being paid to deceased
individuals, and no benefits are being paid to previously
disqualified individuals. (Section 4033)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment sets the penalty for failure to
comply at up to 50 percent of the state's administrative match.
The amendment provides that the Secretary is to complete a
study on methods to prevent payment of benefits to recipients
in multiple states and report to Congress on how to implement
the results of the study. (Section 4032)
(27) Termination of existing agreement
The House bill terminates the existing agreement for SNAP
Outreach between USDA FNS and the Mexican government. (Section
4034)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4211)
(28) Service of traditional foods in public facilities
The House bill grants the Secretary of Agriculture
authority to permit the donation, preparation and consumption
of traditional Native food in public facilities primarily
serving Alaska Natives and American Indians. (Section 4035)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment makes technical and clarifying
revisions, including ensuring that food safety laws apply to
the donation, preparation, and consumption of foods provided
under this section. (Section 4033)
(29) Testing applicants for unlawful use of controlled substances
The House bill allows states to conduct drug testing on
SNAP applicants at state expense as a condition for receiving
benefits. (Section 4036)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(30) Eligibility disqualifications for certain convicted felons
The Senate amendment bars individuals convicted of
specified federal crimes (including murder, rape, certain
crimes against children), and state offenses determined by the
Attorney General to be substantially similar, from receiving
SNAP. The Senate amendment still allows the disqualified ex-
offender's household members to apply for and potentially
receive benefits. The Senate amendment requires the state
agency to collect, in writing, information on SNAP applicants'
convictions. (Section 4020)
The House bill is similar to the Senate amendment but
specifies that restrictions will only apply to individuals with
convictions after the date of enactment. (Section 4037)
The Conference substitute adopts the House provision with
an amendment. The amendment provides that the restrictions only
apply to an individual convicted of the stated crimes if the
individual is not in compliance with the terms of their
sentence. (Section 4008)
(31) Expungement of unused SNAP benefits
The House bill requires a state agency to expunge SNAP
benefits that have not been accessed by a household after a
period of 60 days. (Section 4038)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(32) Pilot projects to promote work and increase State accountability
in SNAP
The House bill creates a pilot program to allow states to
engage able-bodied parents in Temporary Assistance for Needy
Families (TANF)-type work and job training as part of receiving
SNAP benefits. The House bill provides that employment and
training (E&T) cost share funds are only available to states
that adopt the work provisions within this section. (Section
4039)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment directs the Secretary to carry out
a pilot program in up to ten states to develop and test
methods, including operating work programs that engage able-
bodied adults in TANF-type work and job training requirements,
for employment and training programs and services to raise the
number of work registrants who obtain unsubsidized employment,
increase the earned income of the registrants, and reduce the
reliance of the registrants on public assistance. $200 million
in mandatory funds are provided to operate the pilots.
States must commit to participate in the evaluation
described in this section, collaborate with the state workforce
board, and not supplant existing employment and training funds.
The Secretary is required to select a range of pilot projects
in various geographic areas, including projects that require
mandatory participation and voluntary participation, as well as
projects that target groups of individuals with varying skills
and work experience.
States that require mandatory participation in work
activities are provided specific authority to sanction
individuals for failure to participate. The Secretary is
required to establish standards for certain employment
activities to ensure that failure to work for reasons beyond an
individual's control shall not result in ineligibility. Various
protections currently provided in SNAP E&T law are incorporated
into the program, including ensuring that individuals subject
to mandatory work requirements be offered a corresponding work
or training activity, individuals be provided adequate
transportation and childcare, and that elderly, disabled and
those responsible for the care of children under the age of six
are exempt from work requirements. (Section 4022)
The Managers recognize the need for better data and
outcomes from current E&T programs. To further improve the
accountability of the SNAP E&T program, the conference
substitute demands outcomes by requiring states to set
performance goals relating to enhancement of skills, training,
work, or experience that leads to work, for SNAP participants.
In addition, states must report annually on these goals.
The Managers also recognize that the best way to improve
the lives of beneficiaries is through sustainable employment
and increased income. Therefore, the Managers direct the
Secretary to operate up to ten pilot projects to develop and
improve innovative approaches to raise the number of
beneficiaries who obtain unsubsidized employment and decrease
the need for nutrition assistance. The Managers intend that all
state expenses, including for wrap-around services, related to
the pilot projects may be reimbursed out of the funds provided
under section 16(h)(1)(F)(viii).
The Managers expect the Secretary to approve pilot
projects that test a range of strategies to ensure Congress is
provided data on the effectiveness of various employment and
training programs. This range should include those that require
mandatory participation in a program and are subject to
sanctions for non-participation, and those that allow
individuals to volunteer to participate in the programs. All
pilots shall be subject to the protections and conditions of
participation and duration of ineligibility provided under
section 6(d) of the Food and Nutrition Act (including household
ineligibility provided under paragraph (B)).
The Managers recognize that a number of states are
currently operating innovative and effective employment and
training programs and expect the Secretary to test the ability
to expand and replicate such programs. The Managers also
recognize that some states have developed effective employment
and training programs through the TANF Program and encourage
the Secretary to test similar mandatory employment and training
programs that transition beneficiaries to stable employment.
(33) Improved wage verification using the National Directory of New
Hires
The House bill requires all states to data-match with the
National Directory of New Hires. (Section 4040)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment clarifies that states are only
required to data-match at the time of certification. (Section
4013)
(34) Farmers' market nutrition program
The House bill expands the program purposes to allow
additional at-risk populations to be served and by requiring
the Secretary to specify terms and conditions to encourage
expanding the participation of small scale farmers in federal
nutrition programs. The House bill requires that 50 percent of
the funds be reserved for seniors. (Section 4046)
The Senate amendment reauthorizes and continues to
provide Commodity Credit Corporation (CCC) mandatory funding of
$20.6 million annually through FY2018. (Section 4202)
The Conference substitute adopts the Senate provision.
(Section 4203)
(35) Pilot project for canned, frozen, or dried fruits and vegetables
The House bill expands the forms of fruits and vegetables
made available to students through the Fresh Fruit and
Vegetable Program to include canned, frozen, and dried.
(Section 4048)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment reauthorizes the Fresh Fruit and
Vegetable program without revision. The amendment adds a new
section creating a pilot project in schools participating in
the Fresh Fruit and Vegetable Program in not less than five
states to evaluate the impact of allowing schools to offer all
forms of fruits and vegetables as part of the Program. $5
million in mandatory funding is provided to carry out the pilot
project. (Section 4214)
The Managers recognize that the Fresh Fruit and Vegetable
Program (FFVP) has been highly effective in increasing
consumption of fruits and vegetables among low income students.
Studies have shown that children participating in FFVP have a
statistically significant (15 percent) increase in consumption
of fruits and vegetables. The Managers do not intend to
minimize the effectiveness of the current FFVP by establishing
pilots for all forms. The Managers expect USDA to determine
interested schools in an efficient manner and to implement the
pilot at the start of the 2014 school year. The Managers expect
USDA to quickly inform schools of the ability to participate in
the pilot and to develop criteria based on recent school
nutrition regulations and the Dietary Guidelines for Americans.
Recognizing that food packaging technologies include processes
such as shelf-stable cups and pouches that allow for safe
handling while maximizing quality and nutrient retention, the
Secretary should ensure that this program does not exclude
these additional packaging methods. The Managers encourage USDA
to work closely with participating schools to gather
information on the types of schools that participate, identify
how the pilot program is implemented in those schools,
determine continued interest in participating in such a
program, and learn from students and teachers about students'
attitudes and actual behavior during the pilot program. The
Managers intend for USDA to conduct a robust evaluation of the
outcomes of these pilots, and the Secretary shall provide
periodic updates to the House and Senate Committees on
Agriculture on the implementation, operation, and evaluation of
this pilot.
(36) Additional authority for purchase of fresh fruits, vegetables, and
other specialty food crops/encouraging locally and regionally
grown and raised food
The House bill includes a pilot program that would allow
five states to use the fresh fruit and vegetable funding for
their own local sourcing of produce. (Section 4049) The House
bill allows USDA to permit school food authorities with low
annual commodity entitlement values to substitute local foods
entirely or partially for USDA provided foods. The House bill
gives USDA discretion to establish cost-neutral farm-to-school
demonstration projects. (Section 4050)
The Senate amendment continues the ``DoD Fresh Program''
through FY2018. (Section 4201) The Senate amendment requires
USDA to conduct demonstration projects ``to facilitate the
purchase of unprocessed and minimally processed locally grown
and locally raised agricultural products'' for schools that
participate in the National School Lunch and Breakfast program.
(Section 4208)
The Conference substitute adopts the House provision with
an amendment. The amendment directs the Secretary to carry out
a pilot project in not more than eight states that provides the
selected states flexibility in procuring unprocessed fruits and
vegetables by allowing the states to use multiple suppliers and
products and by allowing geographic preference. (Sections 4201
and 4202)
The Managers acknowledge that USDA is already conducting
pilot projects in two states for the purpose of developing new
methods for local procurement. The Conference substitute pilots
are intended to complement these efforts. The Managers expect
the Secretary to select states with a variety of in-state
agricultural economies, noting that states, such as Vermont,
Oregon, and New York, have demonstrated an assortment of local
procurement practices. The Managers expect the Secretary to
work with the selected states in order to maximize flexibility
for geographic preferences, including allowing schools to
specifically request local products as long as competition is
maintained, during procurement. Further, the Managers expect
the Secretary to tailor the pilots to state specific needs
regarding the size and structure of school systems and
enactment of reporting requirements.
(37) Review of public health benefits of white potatoes
The House bill requires the Secretary to conduct a review
of the economic and public health benefits of white potatoes on
low-income families at nutritional risk. (Section 4051)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate position.
(38) Review of sole-source contracts in Federal nutrition programs
The House bill directs USDA to conduct a study on sole-
source contracting in federal nutrition programs to evaluate
the effects such contracts have on program participation,
program goals, non-program consumers, retailers and free market
dynamics. (Section 4053)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4212)
(39) Purchase of Halal and Kosher food for emergency food assistance
program
The House bill requires USDA to facilitate purchases of
Kosher and Halal foods within the Emergency Food Assistance
Program. (Section 4054)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 4207)
(40) Quality control standards
The Senate amendment strikes the Secretary's authority to
waive quality control (QC) penalties. (Section 4011)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 4020)
(41) Food Insecurity Nutrition Incentive
The Senate amendment amends the hunger-free community
grants to establish ``incentive grants'' for projects that
incentivize SNAP participants to buy fruits and vegetables. The
Senate amendment limits federal cost share to 50 percent and
provides $100 million in mandatory funding over five years. The
Senate amendment provides discretionary authority of $5 million
per year. (Section 4204)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment renames the program the Food
Insecurity Nutrition Incentive. (Section 4208)
The Managers intend for these grants to improve access to
and reduce the cost of fruits and vegetables for SNAP
recipients. The Managers intend for the grants to test new
methods and technologies that facilitate the purchase of fresh
fruits and vegetables by SNAP recipients from a variety of
sources, including direct to consumer markets. The Managers
encourage the Secretary to consult with non-profit
organizations with experience conducting similar programs on
the design and implementation of the incentive grants.
(42) Pulse crop products
The Senate amendment creates a pilot project to purchase
pulse crops (dry beans, dry peas, lentils, and chick peas) and
pulse crop products for schools. The Senate amendment
authorizes up to $10 million in discretionary appropriations.
(Section 4206)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 4213)
(43) Dietary Guidelines for Americans
The Senate amendment requires that the guidelines include
specifications for pregnant women and children under the age of
two years, by no later than the 2020 edition. (Section 4207)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 4204)
(44) Multiagency task force
The Senate amendment requires USDA to establish a
multiagency task force to provide guidance to the commodity
distribution programs. The task force must be composed of at
least four members, representing FNS's Food Distribution
Division, Agricultural Marketing Service (AMS), Farm Service
Agency (FSA), and Food Safety and Inspection Service (FSIS).
The task force is to report to Congress not later than one year
after convening. (Section 4209)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 4205)
(45) Food and agriculture service learning program
The Senate amendment creates a Food and Agriculture
Service Learning Program with statutory purposes that include:
increasing capacity for food, garden, and nutrition education;
complementing the work of the federal farm-to-school grants;
and coordinating with the related National Institute of Food
and Agriculture (NIFA) work. USDA is to evaluate the program
regularly and report the results to congressional committees of
jurisdiction. $25 million is authorized to be appropriated and
is to remain available until expended. 20 percent of funds are
set aside for NIFA for particular purposes, and funding is to
``supplement not supplant'' current efforts. (Section 4210)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment places the program under the
jurisdiction of the National Institute of Food and Agriculture
(NIFA) and structures it as a competitive grant program.
Further, the amendment deletes the ``Definitions'' subsection
and removes the 20 percent funding set-aside previously
designated to NIFA for housing, training, and overseeing
participants. (Section 4209)
Title V--Credit
(1) Persons Eligible for Real Estate Loans
The House bill adds ``and such other legal entities as
the Secretary deems appropriate''. It also requires that an
owner-operator own at least 75 percent of an embedded entity
and gives the Secretary authority to set the appropriate
ownership level. It also gives authority to the Secretary to
define the acceptable experience necessary to qualify for
direct farm ownership loans. (Section 5001)
The Senate amendment is similar to the House provision
but does not require 75 percent ownership of an embedded
entity, and does not explicitly require that a farmer prove
``sufficient'' credit is obtainable elsewhere. (Section 3101)
The Conference substitute adopts the House provision.
(2) Conservation Loan and Loan Guarantee Program
The House bill gives USDA discretion to allow alternative
legal entities to qualify for conservation loans and increases
the maximum conservation loan guarantee to 90 percent. It
additionally authorizes the conservation loan program through
FY 2018. (Section 5002)
The Senate amendment gives USDA similar discretion, by
reference. (Section 3103)
The Conference substitute adopts the House provision with
an amendment. The amendment increases the amount of the
conservation loan guarantee from 75 percent to 80 percent. For
socially disadvantaged farmers or ranchers and beginning
farmers and ranchers, the conservation loan guarantee is
increased to 90 percent. The program is authorized to be
appropriated $150,000,000 through fiscal year 2018. (Section
5002)
(3) Down payment loan program
The House bill increases the maximum down payment loan to
45 percent of $667,000. (Section 5003)
The Senate amendment is the same as the House bill.
(Section 3107)
The Conference substitute adopts the House provision.
(Section 5005)
(4) Mineral rights
The House bill eliminates the requirement that mineral
rights be appraised. (Section 5004)
The Senate amendment is the same as current law. (Section
3105)
The Conference substitute adopts the House provision.
(Section 5004)
(5) Operating loans, Persons who are eligible
The House bill gives USDA discretion to allow alternative
legal entities to qualify for farm operating loans and allows
an embedded entity of a borrower to be deemed eligible for an
operating loan if the entity borrower owns at least 75 percent
of the embedded entity. (Section 5101)
The Senate amendment is the same as the House bill.
(Section 3201)
The Conference substitute adopts the House provision.
(Section 5101)
(5.1) Term Limits on Direct Loans
The House bill is the same as current law.
The Senate amendment extends direct loan term limits to
ten years and allows borrowers to earn back eligibility, one
year in the program for every year out. (Section 3201)
The Conference substitute adopts the House provision with
an amendment. The amendment maintains current law but requires
the Secretary of Agriculture to submit an annual report to
Congress that details the status of the Department's direct
farm operation loan program, and the impact of term limits on
direct loan borrowers. (Section 5104)
(5.2) Term Limits on Guaranteed Loans
The House bill is the same as current law.
The Senate amendment removes the provision.
The Conference substitute adopts the Senate provision.
(Section 5107)
(6) Operating loans, rural residency requirements
The House bill eliminates the rural residency requirement
for youth loans. (Section 5102)
The Senate amendment is the same as current law.
The Conference substitute adopts the House provision.
(Section 5102)
(7) Personal liability of youth loan borrower
The House bill gives USDA the option to waive personal
liability for youth loans if default is due to circumstances
beyond the borrower's control. (Section 5103)
The Senate amendment allows a borrower who defaults on a
youth loan to still qualify for educational loans. (Section
3201)
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes the Secretary of
Agriculture to, on a case by case basis, provide debt
forgiveness of a youth loan if the borrower was unable to repay
the loan due to circumstances beyond the control of the
borrower. The debt forgiveness provided by this section shall
not be used by other Federal agencies in determining
eligibility of the borrower for any loan made or guaranteed by
that agency. In no case shall a delinquent borrower or a
borrower provided debt forgiveness be denied a loan or loan
guarantee from the Federal government to pay for educational
expenses of the borrower. (Section 5103)
(8) Microloans
The House bill authorizes the Secretary to make operating
loans of $35,000 to eligible borrowers with a total microloan
indebtedness of $70,000 to any borrower. It also authorizes
intermediary lending projects and exempts microloans from
counting toward direct loan limits. The bill applies limited
resource loan rates to beginning and veteran farmers or
ranchers. (Section 5104)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment sets the total indebtedness level
at $50,000. It also authorizes the Secretary to conduct a pilot
project to contract with community development financial
institutions to make or guarantee microloans and to provide
business, financial and marketing services to borrowers. The
Secretary is limited to $10 million worth of loans through the
new pilot project in any fiscal year. (Section 5106)
To further clarify, the Conference substitute authorizes
the Department of Agriculture to establish cooperative lending
pilot projects to aid administration of microloans. The
Managers believe that the Farm Service Agency should maintain
its mission focus on direct lending, and consider the agency's
existing staffing and expertise when determining how to operate
a pilot. The Managers expect the Secretary to carefully review
intermediaries' loan loss reserve funds, underwriting
standards, and other factors that preserve program integrity.
Therefore, the Conference substitute provides that when
carrying out this pilot program, the Department should utilize
community financial institutions that have been approved by the
Department of the Treasury in order to maximize the
effectiveness of U.S. government resources.
(9) Emergency loans eligibility
The House bill gives USDA discretion to allow alternative
legal entities to qualify for an emergency loan. Additionally,
it allows an embedded entity of a borrower to be deemed
eligible for an operating loan if the entity borrower owns at
least 75 percent of the embedded entity. (Section 5201)
The Senate amendment is the same as the House bill.
(Section 3301)
The Conference substitute adopts the House provision.
(Section 5201)
(10) Beginning Farmer and Rancher individual development pilot program
The House bill authorizes current law through 2018.
(Section 5301)
The Senate amendment is the same as the House bill.
(Section 3428)
The Conference substitute adopts the Senate provision.
(Section 5301)
(11) Eligible Beginning Farmers and Ranchers
The House bill expands the definition of a qualified
beginning farmer or rancher to include ``or other such legal
entity''. It also changes the acreage ownership limitation from
30 percent of the median acreage of farms in the county to 30
percent of the average acreage of farms in the county. (Section
5302)
The Senate amendment replaces ``median'' with ``average''
in the definition and has the same 30 percent limitation, but
does not give USDA discretion to allow alternative legal
entities to qualify as a beginning farmer or rancher. (Section
3002)
The Conference substitute adopts the House provision with
an amendment. The amendment includes language that will ensure
that any legal entity included in the definition of beginning
farmer or rancher for purposes of qualifying for USDA loans
(including cooperatives, corporations, partnerships, joint
operations, or other such legal entities as the Secretary
considers appropriate), will have members, stockholders,
partners, or joint operators who all qualify individually as
beginning farmers. This provision is meant to ensure that any
priorities given to beginning farmers or ranchers are
restricted to individual beginning farmers or ranchers or
entities comprised entirely of beginning farmers or ranchers.
(Section 5303)
(12) Loan Authorization Levels
The House bill reauthorizes the Secretary's ability to
make loans under each subtitle through 2018. (Section 5303)
The Senate amendment is the same as the House bill.
(Section 3431)
The Conference substitute adopts the House provision.
(Section 5304)
(13) Beginning Farmer and Rancher, priorities
The House bill adds a new priority for beginning farmer
and rancher direct loans to those applicants who apply under
the down payment loan program or with joint financing
arrangements. (Section 5304)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment establishes a floating interest
rate with a floor of 2.5 percent for joint financing
arrangements (arrangements where the direct farm ownership loan
does not exceed 50 percent of any total loan). (Section 5003)
The Managers intend for modifications to the interest
rates for joint financing arrangements (in Sec. 307(a)(3)(D) of
the Con Act) to encourage Beginning Farmer and Rancher
borrowers to first rely on the down payment loan program (in
Sec. 310E of the Con Act) for their ownership credit needs.
They should then look to joint financing arrangements, and
lastly, to the Direct Farm Ownership Loan programs. This will
help maximize the number of borrowers served by prioritizing
programs that incorporate public-private partnerships or
personal investments
(14) Loan Fund Set-Asides
The House bill reauthorizes the loan fund set asides
through 2018. (Section 5305)
The Senate amendment is the same as the House bill.
(Section 3431)
The Conference substitute adopts the Senate provision.
(Section 5304)
(15) Conforming amendment
The House bill strikes ``section 302(a)(2) or 311(a)(2)''
and inserts ``section 302(a)(1)(B) or 311 (a)(1)(B)''. (Section
5306)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 5306)
(16) Agricultural Mediation programs
The House bill reauthorizes the state agricultural
mediation programs through 2018. (Section 5401)
The Senate amendment is the same as the House. (Section
5101)
The Conference substitute adopts the Senate provision.
(Section 5401)
(17) Loans to Purchasers of Highly Fractionated Land
The House bill authorizes the use of a revolving loan
fund for purchasers of highly fractionated land. (Section 5501)
The Senate amendment includes the House language, updates
references to other laws, and requires interagency consultation
between USDA and the Department of the Interior. Additionally,
it simplifies appraisals for purchasers of highly fractionated
land by requesting only one appraisal recognized by USDA or the
Department of the Interior. (Section 5102 and Section 5103)
The Conference substitute adopts the Senate provision
with an amendment. The amendment strikes the requirement that
USDA consult with the Department of Interior. (Sections 5402
and 5403)
It is the intent of the Managers that the Department
should consult with the Secretary of the Interior when
determining regulations and procedures to define eligible
purchasers of highly fractionated land relevant to provisions
(Sections 5402 and 5403) in this Title.
(18) Compensation disclosure by farm credit system institutions
The Senate amendment requires the Farm Credit
Administration to review rules regarding compensation packages
of senior officers in order to improve compensation disclosure.
(Section 5104)
The House bill contains no comparable provisions.
The Conference substitute adopts the Senate provision.
(Section 5404)
The Managers support reasonable transparency practices at
Farm Credit System (FCS) institutions that support
stockholders' understanding of the operation of those
institutions. The Managers also recognize that the Farm Credit
Act clearly authorizes the Farm Credit Administration (FCA) to
require appropriate disclosure from FCS institutions, including
disclosures describing compensation practices. The Farm Credit
Act does not explicitly contemplate stockholder voting on
specific issues such as compensation, and the Managers are
concerned such actions could interfere with the explicit
responsibility and duty of the board. Therefore, the Agency
should take this into consideration as it reviews its
regulation.
(19) Emergency loan, equine farmers
The House bill is the same as current law.
The Senate amendment does not mention equine farmers and
ranchers (nor in Sec. 3301). (Section 3002)
The Conference substitute adopts the House provision.
(Section 5201)
(20) Repayment Requirements for Farm Ownership Loans
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law. (Section 3105)
The Conference substitute adopts the House provision.
(21) Limited-Resource Loans
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3106)
The Conference substitute adopts the House provision.
(22) Beginning Farmer and Socially Disadvantaged Farmer Contract Land
Sales Program
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3108)
The Conference substitute adopts the Senate provision.
(23) Loans to gleaners
The Senate amendment creates a pilot program to support
Healthy Foods for the Hungry. It authorizes individual loans of
between $500 and $5,000 to gleaners and other regular farm
operating loan borrowers for the purpose of assisting the
borrowers in providing food for the hungry. The program is
funded from within the farm operating loan program, up to a
maximum total of $500,000 for the entire program. (Section
3201)
The House bill contains no comparable provision.
The Conference substitute amends and moves this section
to Title IV. (Section 4026)
(24) Direct loans, locally produced agriculture products
The Senate amendment adds the assistance of a farmer in
the production of a locally or regionally produced agricultural
food product as a new purpose for direct loans. (Section 3202
(a)(11))
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
Pertaining to (24), (25), (25.1), and (25.2) of this
conference report, the Managers affirm the Department's
authority to directly lend to and guarantee loans for producers
of local/regional foods. Congress expects the Department to
incorporate information on local/regional markets and food
production into its loan officer training and into any borrower
or potential borrower outreach. The Managers also intend that
valuations of local/regional food under Section 5105 will be
incorporated into this training and outreach. Given the
potential for price premiums paid for local/regional food, the
valuation is an important part of understanding the markets for
local/regional foods. The Managers expect the Secretary to
develop a publically available and defensible methodology for
assessing and factoring local food price premiums into loan
decisions made by the Department.
(25) Loan officers, training for loans to local/regional farmers
The Senate amendment requires the Secretary to train loan
officers in pricing of local and regional food production.
(Section 3202(e)(1))
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
(25.1) Valuation for local/regional crops for purposes of
lending
The Senate amendment requires the Secretary to develop
valuation methods for local/regional food for purposes of
lending to local/regional food producers. (Section 3202(e)(2)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 5105)
(25.2) Outreach for lending to local/regional food
producers
The Senate amendment requires the Secretary to develop an
outreach strategy to provide loans to local/regional food
producers. (Section 3302(e)(3))
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
(26) Emergency loans, commercial fishermen
The Senate amendment adds commercial fishermen to the
list of eligible borrowers for emergency loans. (Section
3301(a))
The House amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(27) Hazard insurance, poultry farmers exception
The Senate amendment omits any exception for poultry
farmers in the hazard insurance requirement. (Section 3301(d))
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
(28) Basic Terms for Loans
The House bill is the same as current law.
The Senate amendment does not include section
307(a)(5)(B).
The Conference substitute adopts the House position.
The Managers of the House Agriculture Committee and the
Senate Committee on Agriculture, Nutrition, and Forestry
believe it is important to periodically review and update
statutory language such as the Consolidated Farm and Rural
Development Act and will do so as time allows.
(29) Guaranteed Farmer Loans
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law though it eliminates coordination with the state in (i).
(Section 3402)
The Conference substitute adopts the House provision.
(30) Administrative Provisions
The House bill is the same as current law.
The Senate amendment does not include Section 309(b)-(g)
(the Federal Credit reform Act of 1990 rendered these
provisions--no longer a revolving fund). Also does not include
section 309(i).
The Conference substitute adopts the House provision.
(31) Soil Conservation District Loans
The House bill is the same as current law.
The Senate amendment does not include Section 314.
The Conference substitute adopts the House provision.
(32) Interest rate, term of loan, and line of credit
The House bill is the same as current law.
The Senate amendment does not include section 316(b)
except for the first two sentences that provide the operating
loan at seven years. (Section 3411)
The Conference substitute adopts the House provision.
(32.1) Line of Credit Loans, Qualifying Commodities
The House bill is the same as current law.
The Senate amendment does not include Section
316(c)(5)(B) which made line of credit loans available to
commodities eligible for price support programs before the 1996
Farm Bill.
The Conference substitute adopts the House provision.
(33) Purpose for emergency loans
The House bill is the same as current law.
The Senate amendment does not include Section 321(b)(3).
The Conference substitute adopts the House provision.
(34) Considerations for making emergency loans
The House bill is the same as current law.
The Senate amendment does not include Section 322(a) nor
322(b).
The Conference substitute adopts the House provision.
(35) Emergency Credit Revolving Fund
The House bill is the same as current law.
The Senate amendment does not include Section 326.
The Conference substitute adopts the House provision.
(36) Liquidation of loans become part of the Emergency Credit Revolving
Fund
The House bill is the same as current law.
The Senate amendment does not include Section 327.
The Conference substitute adopts the House provision.
(37) General Powers all loan programs
The House bill is the same as current law.
The Senate amendment does not include Section 331(a), but
see ``Section 3403'' below.
The Conference substitute adopts the House provision.
(38) Timing for the processing of farm loan applications
The House bill is the same as current law.
The Senate amendment does not include Section 333A(d)-
(e), but instead includes Section 3403 as follows:
``Section 3403. Provision of information to borrowers.
``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).''
The Conference substitute adopts the House provision.
(39) Rules and Regulations for Debt Service and Margin Requirements
The House bill is the same as current law.
The Senate amendment does not include Section 339(b) or
Section 339(e).
The Conference substitute adopts the House provision.
(40) Notice of Loan Service Programs
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3404)
The Conference substitute adopts the House provision.
(41) Planting and Production History Guidelines
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3405)
The Conference substitute adopts the House provision.
(42) Special Conditions and Limitations on Loans
The House bill is the same as current law.
The Senate amendment is similar to current law though it
deletes the word ``sufficient''. It also combines the
provisions of Section 333 and 333A in current law. (Section
3406)
The Conference substitute adopts the House provision.
(43) Graduation of Borrowers
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3407)
The Conference substitute adopts the House provision.
(44) Debt Adjustment and Credit Counseling
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3408)
The Conference substitute adopts the House provision.
(45) Security Servicing
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law. (Section 3409)
The Conference substitute adopts the House provision.
(46) Contracts on Loan Security Properties
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law. (Section 3410)
The Conference substitute adopts the House provision.
(47) Debt Restructuring and Loan Servicing
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law. (Section 3411)
The Conference substitute adopts the House provision.
(48) Relief for Mobilized military Reservists from Certain Agricultural
loan obligations
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3412)
The Conference substitute adopts the House provision.
(49) Interest Rate Reduction Program
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law though it restricts the program to loans under this
``subtitle''. (Section 3413)
The Conference substitute adopts the House provision.
(50) Rules and Regulations for Debt Service and Margin Requirements
The House bill is the same as current law.
The Senate amendment does not include Section 339(b) or
339(e).
The Conference substitute adopts the House provision.
(51) Homestead Property
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3414)
The Conference substitute adopts the House provision.
(52) Transfer of Inventory Land
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3415)
The Conference substitute adopts the House provision.
(53) Target Participation Rates
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3416)
The Conference substitute adopts the House provision.
(54) Compromise or adjustment of debts or claims by guaranteed lender
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3417)
The Conference substitute adopts the House provision.
(55) Waiver of Mediation Rights by Borrowers
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3418)
The Conference substitute adopts the House provision.
(56) Borrower Training
The House bill is the same as current law.
The Senate amendment is substantially similar to current
law. It eliminates the ``(as determined by the appropriate
county committee)''. (Section 3419)
The Conference substitute adopts the House provision.
(57) Loan Assessments
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3420)
The Conference substitute adopts the House provision.
(58) Supervised Credit
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3421)
The Conference substitute adopts the House provision.
(59) Market Placement
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3422)
The Conference substitute adopts the House provision.
(60) Recordkeeping of Loans by Gender of Borrower
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3423)
The Conference substitute adopts the House provision.
(61) Crop Insurance Requirement
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3424)
The Conference substitute adopts the House provision.
(62) Loan and Loan Servicing Limitations
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3425)
The Conference substitute adopts the House provision.
(63) Short Form Certification of Farm Program Borrower Compliance
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3426)
The Conference substitute adopts the House provision.
(64) Underwriting Forms and Standards
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3427)
The Conference substitute adopts the House provision.
(65) Farmer Loan Pilot Projects
The House bill is the same as current law.
The Senate amendment authorizes the Secretary to conduct
pilot projects of limited scope and duration to evaluate
processes and techniques that may improve the efficiency and
effectiveness of the programs carried out by this subtitle.
(Section 3429)
The Conference substitute adopts the Senate provision.
(Section 5302)
(66) Prohibition on use of Loans for Certain Purposes
The House bill is the same as current law.
The Senate amendment is the same as current law. (Section
3430)
The Conference substitute adopts the House provision.
(67) Repeal of the application of the Bankhead Jones Act
The House bill is the same as current law.
The Senate amendment outlines an 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. (Section
3401)
The Conference substitute adopts the House provision.
(68) Definitions
The House bill is the same as current law.
The Senate amendment contains the definition of the terms
``farmer'', ``beginning farmer or rancher'', ``United States'',
``direct loan'', ``farmer program loan'', ``qualified beginning
farmer'', ``debt forgiveness'', ``rural area'', ``borrower'',
``loan service program'', and ``primary loan servicing
program''. Additionally, it does not include the definitions of
the terms ``owner-operator'', ``insured'', ``contract of
insurance'', ``joint operation'', and ``preservation loan
servicing program''. (Section 3002)
The Conference substitute adopts the House provision.
(69) Limitations for insured loans and guaranteed loans
The House bill is the same as current law.
The Senate amendment does not include Section 344.
The Conference substitute adopts the House provision.
(70) Maximum amounts for loans authorized, long-term cost projections
The House bill is the same as current law.
The Senate amendment does not include Section 346(a).
The Conference substitute adopts the House provision.
(71) Other Federal agencies provisions of technical assistance to
farmer with loans
The House bill is the same as current law.
The Senate amendment does not include Section 347.
The Conference substitute adopts the House provision.
(72) Debt for nature
The House bill is the same as current law.
The Senate amendment defines the terms ``highly erodible
land'' and ``wildlife'' in Section 3002, but does not include
definitions for the terms ``governmental entity'' and
``recreational purposes''. (Section 3002)
The Conference substitute adopts the House provision.
(73) Purposes of farm loan programs
The House bill is the same as current law.
The Senate amendment does not include Section 350.
The Conference substitute adopts the House provision.
(74) Debt restructuring and loan servicing
The House bill is the same as current law.
The Senate amendment does not include Section 353(f) or
(h).
The Conference substitute adopts the House provision.
(75) Rural Development and Farm Loan Program Activities
The House bill is the same as current law.
The Senate amendment is the same as current law--included
in (Section 3913).
The Conference substitute adopts the House provision.
(76) Payment of Interest as a condition of loan servicing for borrowers
The House bill is the same as current law.
The Senate amendment does not include Section 372.
The Conference substitute adopts the House provision.
(77) Making and Servicing of Loans by Personnel of State, County or
Area Committees
The House bill is the same as current law.
The Senate amendment does not include Section 376.
The Conference substitute adopts the House provision.
(78) Eligibility of Employees of State, County, or Area Committee for
loans and loan Guarantees
The House bill is the same as current law.
The Senate amendment does not include Section 377.
The Conference substitute adopts the House provision.
Title VI--Rural Development
(1) Water, Waste Disposal, and Wastewater Facility Grants
The House bill reauthorizes the authorization of
appropriations for fiscal years 2014 through 2018. (Section
6001)
The Senate amendment is the same as the House. (Section
6001)
The Conference substitute adopts the House provision.
(Section 6001)
(2) Rural Business Opportunity Grants
The House bill reauthorizes the authorization of
appropriations for fiscal years 2014 through 2018. (Section
6002)
The Senate amendment authorizes appropriations of
$65,000,000 for fiscal years 2014 through 2018 and combines the
Rural Business Enterprise Grant and RBOG programs. (Section
6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment strikes Sections 310B(c) and
306(a)(11) in the Con Act and replaces them with the Rural
Business Development Grant authority, allocating not more than
10 percent of amounts appropriated for the purposes previously
authorized under the Rural Business Opportunity Grant
authority. (Section 6012)
The Managers made an effort to streamline and consolidate
programs whenever possible. The conference substitute combines
two existing programs, the Rural Business Opportunity Grants
program and the Rural Business Enterprise Grants program, into
a single program to be known as the Rural Business Development
Grants program. The Managers intend for this new program to
function in a manner similar to its predecessors and to award
competitive grants to public agencies and non-profit community
development organizations for business development, planning,
technical assistance, or job training in rural areas.
(3) Elimination of Reservation of Community Facilities Grant Program
Funds
The House bill repeals the reservation of funds. (Section
6003)
The Senate amendment does not include the reservation of
funds. (Section 6001)
The Conference substitute adopts the House provision.
(Section 6002)
(4) Utilization of Loan Guarantees for Community Facilities
The House bill authorizes the Secretary to utilize loan
guarantees for community facilities to the maximum extent
possible. (Section 6004)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6004)
(5) Rural Water and Wastewater Circuit Rider Program
The House bill authorizes the Secretary to continue a
national rural water and wastewater circuit rider program.
Additionally, the bill authorizes appropriations of $20,000,000
for each fiscal year. (Section 6005)
The Senate amendment authorizes appropriations of
$25,000,000 for each fiscal year.
The Conference substitute adopts the House provision.
(Section 6003)
(6) Tribal College and University Essential Community Facilities
The House bill authorizes appropriations of $5,000,000
for fiscal years 2014 through 2018. (Section 6006)
The Senate amendment authorizes appropriations of
$10,000,000 for fiscal years 2014 through 2018. Additionally,
the amendment authorizes the Secretary to establish the maximum
percentage of the cost of the project covered by this grant and
limits the amount of non-Federal support to no more than 5
percent of the total cost of the project. The amendment also
establishes grant priorities, the maximum grant amount, grant
rate and local share requirements applicable to these grants.
(Section 6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations through 2018. (Section 6005)
(7) Essential Community Facilities Technical Assistance and Training
The House bill authorizes technical assistance and
training for essential community facilities. Additionally, the
bill reserves not less than 3 nor more than 5 percent of any
funds appropriated to carry out each of the community
facilities programs authorized under subsection 306(a).
(Section 6007)
The Senate amendment authorizes technical assistance to
applicants and participants for community facilities programs.
Additionally, under the amendment, the Secretary may not use
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. (Section 6001)
The Conference substitute adopts the House provision.
(Section 6006)
The Managers understand that rural communities, primarily
due to limited staffing, often need technical assistance when
developing funding applications. The conference substitute
authorizes as much as 5 percent of the funding available
through the Community Facilities Loan and Grant Program for
technical assistance to help smaller communities in the
development of their applications to the program.
(8) Emergency Imminent Community Water Assistance Grant Program
The House bill authorizes appropriations of $27,000,000
for fiscal years 2014 through 2018. (Section 6008)
The Senate amendment authorizes appropriations of
$35,000,000 for fiscal years 2014 through 2018. (Section 6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations through 2018. (Section 6007)
(9) Household Water Well Systems
The House bill authorizes appropriations of $5,000,000
for fiscal years 2014 through 2018. (Section 6009)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6009)
(10) Rural Business and Industry Loan Program
The House bill amends subsection 310B(a) to include
working capital as a loan purpose. Additionally, paragraph
310B(g)(7) is amended to authorize the Secretary, when
determining whether a cooperative organization is eligible for
a guaranteed business and industry loan, to take accounts
receivable as security for obligations, and a borrower may use
accounts receivable as collateral to secure a loan. (Section
6010)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment clarifies that the additional loan
purpose is the financing of working capital. (Section 6010)
The Managers recognize the importance of ``Main Street''
businesses to rural communities, and that the recent economic
downturn has reduced the affordability of credit in rural
areas, putting considerable strain on these small businesses.
The Conference substitute addresses this issue through changes
to the Business & Industry (B&I) Loan Program intended to
ensure working capital is an eligible use of funds.
The Conference substitute also provides flexibility for
the Secretary to consider accounts receivable for the purposes
of collateral to allow lenders to help meet the capital needs
of small businesses in rural areas. The Managers encourage USDA
to examine additional ways to guarantee lending to small brick-
and-mortar, community-owned businesses, such as an increased
loan guarantee percentage for smaller loans, a streamlined
process for making B&I loans of less than $250,000, and making
operating lines of credit eligible as a program use.
Additionally, the Managers encourage USDA to better
coordinate with the Small Business Administration on outreach
to rural lenders related to the B&I loan guarantee program.
(11) Rural Cooperative Development Grants
The House bill authorizes appropriations of $40,000,000
for fiscal years 2014 through 2018. (Section 6011)
The Senate amendment authorizes appropriations of
$50,000,000 for fiscal years 2014 through 2018 and an
interagency working group to foster cooperative development and
ensure coordination with Federal agencies and cooperative
organizations.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes appropriations of
$40,000,000 for each fiscal year 2014 through 2018 and an
interagency working group to foster cooperative development and
ensure coordination with Federal agencies and cooperative
organizations. (Section 6013)
(12) Locally or Regionally Produced Agricultural Food Products
The House bill authorizes a reservation of funds through
fiscal year 2018 of not less than 5 percent and not more than 7
percent of the funds made available to carry out subsection
(g), business and industry direct and guaranteed loans.
(Section 6012)
The Senate amendment authorizes a reservation of funds
for fiscal years 2014 through 2018, not less than 5 percent of
the total amount of funds made available to carry out
subsection (e), loans to private business enterprises and
business and industry direct and guaranteed loans. (Section
6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the reservation
of funds through 2018. (Section 6014)
(13) Intermediary Relending Program
The House bill moves the authorization of the
Intermediary Relending Program (IRP) to the Consolidated Farm
and Rural Development Act (Con Act). Additionally, it
authorizes $10,000,000 for fiscal years 2014 through 2018.
(Section 6013)
The Senate amendment moves authorization of IRP to the
Con Act. Additionally, it authorizes $50,000,000 for fiscal
years 2014 through 2018. (Section 6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment prohibits the Secretary from
making IRP loans under another authority, authorizes
appropriations of $25,000,000 for each fiscal year 2014 through
2018, and eliminates another authority for the program.
(Section 6017)
(14) Rural College Coordinated Strategy
The House bill authorizes the Secretary to develop a
rural community college coordinated strategy across the Rural
Development mission area. (Section 6014)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6018)
The Managers recognize the contributions that rural
community and technical colleges make in the development of a
well-trained workforce in rural communities. These institutions
serve over 3.5 million students, and train sixty-percent of
first responders and allied health care providers in rural
communities. The Managers expect the Secretary to work closely
with the rural community and technical colleges to create a
coordinated strategy which would guide the investments USDA
already makes through rural development programs. Noting that a
number of programs have varying eligibility criteria and
purposes, the Managers expect the Secretary to look across the
entire suite of rural development programs when creating a
coordinated strategy to help deploy the most appropriate
resources for each of the needs identified in consultation with
representatives from the rural community and technical
colleges. These investments should continue to utilize
appropriate authorities under both the Rural Electrification
Act and the Consolidated Farm and Rural Development Act,
including investments in technology and facilities, to better
serve rural students.
(15) Rural Water and Waste Disposal Infrastructure
The House bill authorizes the Secretary, with respect to
water and waste disposal direct and guaranteed loans, to
encourage to the maximum extent practicable, private or
cooperative lenders to finance rural water and waste disposal
facilities by maximizing the use of loan guarantees in
communities where the population exceeds 5,500, maximizing the
use of direct loans where the impact on rate payers will be
material when compared to a loan guarantee, in the case of
projects that require interim financing above $500,000
requiring those projects to initially seek such financing from
a private or cooperative lender and determining if existing
direct borrowers can refinance with a private or cooperative
lender prior to providing a new direct loan. (Section 6015)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6019)
The Managers note that there is over $3 billion in
pending applications for water and wastewater projects
throughout rural America. Reauthorization of water
infrastructure programs is a vital component to rural economic
development. Access to water systems promotes the health of
rural communities and attracts businesses to invest in
communities which are well supported by critical
infrastructure. To address the current backlog, the Conference
substitute directs USDA to maximize the use of guarantees
through private or cooperative lenders for projects for larger
communities. The Managers expect these provisions to leverage
available funds to serve more communities than might otherwise
be served solely through direct loans.
(16) Simplified Applications
The House bill requires the Secretary, to the maximum
extent practicable, to develop a simplified application process
for covered programs authorized by the Con Act. It also
requires a report to Congress on implementation of the
simplified applications. (Section 6016)
The Senate amendment requires the Secretary to expedite
the process of creating user-friendly and accessible
application forms and procedures prioritizing programs and
applications at the individual level. It also requires the
Secretary to offer a simplified application form and process
for project proposals requesting less than $50,000 for VAPG.
(Section 6001)
The Conference substitute adopts the House provision.
(Section 6020)
(17) Grants for NOAA Weather Radio Transmitters
The House bill authorizes appropriations of $1,000,000
for fiscal years 2014 through 2018. (Section 6017)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6022)
(18) Rural Microentrepreneur Assistance Program
The House bill authorizes appropriations of $20,000,000
for fiscal years 2014 through 2018. (Section 6018)
The Senate amendment allots the CCC $3,000,000 funds for
each of fiscal years 2014 through 2018 to be available until
expended. Additionally, the amendment defines Microenterprise
Development Organization to include an organization that is a
collaboration of rural nonprofit entities serving a region or
State, if one lead nonprofit entity is the sole underwriter of
all loans and is responsible for associated risks. The
amendment defines the term ``training'' to mean teaching broad
business principles or general business skills in a group or
public setting and the term ``technical assistance'' to mean
working with a business client in a one-to-one manner. The
amendment requires 15 percent matching funds, the form of which
can be community development block grants. (Section 6001)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes of funds from the
Commodity Credit Corporation $3,000,000 for each fiscal year
2014 through 2018 and reauthorizes the authorization of
appropriations through 2018. (Section 6023)
(19) Delta Regional Authority
The House bill authorizes appropriations of $12,000,000
for fiscal years 2014 through 2018. It also extends the
termination of authority until October 1, 2018. (Section 6019)
The Senate amendment authorizes appropriations of
$30,000,000 for fiscal years 2014 through 2018. The termination
extension is the same as the House. (Section 6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the Authority
through 2018 and the authorization of appropriations for fiscal
years 2014 through 2018. (Section 6026)
(20) Northern Great Plains Regional Authority
The House bill authorizes appropriations of $2,000,000
for fiscal years 2014 through 2018 and extends the termination
of authority. (Section 6020)
The Senate amendment authorizes appropriations of
$30,000,000 for fiscal years 2014 through 2018, has a similar
termination of authority provision as the House, and amends the
annual audit requirement. (Section 6001)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authority
through 2018 and the authorization of appropriations for fiscal
years 2014 through 2018, as well as requires an annual audit
only if funds are appropriated to the subtitle. (Section 6027)
(21) Rural Business Investment Program
The House bill authorizes appropriations of $20,000,000
for fiscal years 2014 through 2018. (Section 6021)
The Senate amendment authorizes appropriations of
$25,000,000 through fiscal year 2018 and requires each rural
business investment company to meet capital requirements as
provided by the Secretary. (Section 6001)
The Conference substitute adopts the House provision.
(Section 6028)
(22) Definitions, ``Section 3002'', Apply to Both Credit and RD in
Rewrite
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act. (Section 6001)
The House bill is the same as current law.
The Conference substitute adopts the House provision.
(23) Water and Waste Disposal Loans, Loan Guarantees, and Grants
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act. (Section 6001)
The House bill is the same as current law.
The Conference substitute adopts the House provision.
(24) Water and Waste Facility Loans and Grants to Alleviate Health
Risks and Alaska Water
The Senate amendment authorizes water and waste facility
loans and grants to alleviate health risks and give the
Secretary the authority to give priority to applications from
eligible entities that provide services to colonias, the
residents of Indian reservations, rural or native villages in
Alaska and Native Hawaiian Home Lands. The amendment authorizes
appropriations for grants at $60,000,000 for each fiscal year
and for loans at $60,000,000 for each fiscal year. In addition
to the match requirement from the State of Alaska for grants
awarded to its rural or native villages, grants to native
tribal health consortiums and public agencies shall require a
match from the State in which the project shall occur. (Section
6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations through 2018. (Section 6008)
(25) Solid Waste Management Grants
The Senate amendment authorizes solid waste management
grants and authorizes appropriations of $10,000,000 for each
fiscal year 2014 through 2018. (Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes appropriations of
$10,000,000 for each fiscal year 2014 through 2018. (Section
6011)
(26-31) Consolidated Farm and Rural Development Act
The Senate amendments rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act. (Section 6001)
The House bill is the same as current law.
The Conference substitute adopts the House provisions.
(32) Delta Health
The Senate amendment authorizes appropriations of
$3,000,000 for fiscal years 2014 through 2018. (Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations for each fiscal year 2014 through 2018.
(Section 6024)
(33) Value-Added Agricultural Product Market Development Grants
The Senate amendment allows the Secretary to award grants
and gives independent producers direction regarding grantee
strategies. The amendment states that priority is given to
projects that contribute to increasing opportunities for
operators of small and medium sized farms. Priority is given to
projects at least \1/4\ of the recipients of which are
beginning farmers or socially disadvantaged farmers. The
Secretary shall provide substantial weight to these priorities.
(Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
(34) Appropriate Technology Transfer for Rural Areas Program
The Senate amendment authorizes the Appropriate
Technology Transfer for Rural Areas program, and authorizes
appropriations of $5,000,000 for each fiscal year 2014 through
2018. (Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations for each fiscal year 2014 through 2018.
(Section 6015)
(35) B&I Loans
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act.
The House bill is the same as current law.
The Conference substitute adopts the House provision.
(36) General Provisions for Loans and Grants
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act.
The House bill is the same as current law.
The Conference substitute adopts the House provision.
(37) Regional Authority
The Senate amendment authorizes a regional priority,
including a reservation of funds from funding available for
functional categories, for projects that are part of a
multijurisdictional development plan. (Section 6001)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes a priority for
specific rural development programs only if an eligible
application is carried out solely in a rural area (as described
for its functional category) and also supports development
plans on a multijurisdictional basis. A higher priority shall
be awarded to applications that support multijurisdictional
development plans with particular attributes. A ten percent
reservation of funds is made available from funding available
for functional categories. Any approved application may be
amended to qualify for the reservation of funds. All funding,
including the reservation of funds, is available to certain
approved applications. (Section 6025)
The Managers expect rural entities to utilize Rural
Development programs in a manner that supports projects and
initiatives that develop long-term community and economic
growth strategies. Traditionally, rural development programs
have been used to meet an immediate need. The Managers
recognize that it is essential that versatile programs such as
the Community Facilities Loan and Grant Program are available
to rural residents to address pressing needs and concerns, and
the Managers want to ensure that the programs authorized in
this title continue to provide that type of assistance. The
Managers also understand that regional plans cannot always
address every need, and expect USDA will only devote funds
specifically to regional projects beyond the funds set aside
for this purpose if such can be done without preventing the
funding of otherwise eligible projects in areas where regional
plans have not been developed or the applicant does not feel it
is in their best interest to pursue a regional approach.
To the extent possible, the Managers encourage USDA to
work with rural communities to consider how they might use
Rural Development resources to address multi-jurisdictional
needs, by leveraging federal, state, local or private funding,
or otherwise capitalize upon the unique strengths of the rural
area to support successful community and economic development.
The Managers recognize the work conducted by the national
network of 540 multi-jurisdictional regional planning and
development organizations to develop such plans and expect
that, where possible, USDA will ensure any priority given to
applications under this section to rely on these plans.
Further, the Managers expect that priority will be given only
to proposals that are consistent with an adopted regional
economic or community development plan.
The Managers believe that projects that reflect the
characteristics described above can help to maximize the impact
of resources available at all levels of government and
ultimately help rural communities reach their full potential.
For these reasons, the conference substitute has provided the
Secretary with the discretion to prioritize applications for
funding that reflect an applicant's efforts to maximize
resources and support strategic community and economic
development and reserved funding within select programs for
this purpose.
(38) Rural Development Insurance Fund
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act.
The House bill is the same as current law.
The Conference substitute adopts the House provision.
(39) Rural Economic Area Partnership Zones
The Senate authorizes the Secretary to carry out rural
economic area partnership zones in effect on the date of
enactment of this Act. It also authorizes the Secretary to
designate additional rural economic area partnership zones.
(Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes the Secretary to
carry out rural economic area partnership zones in effect on
the date of enactment of this Act. (Section 6016)
(40) Rural Development Partnership
The Senate amendment authorizes the State Rural
Development Partnership. It does not include the Coordinating
Committee in the Partnership. It outlines that the purposes of
the Partnership are to be accomplished in a manner that
maximizes collaborative public-and-private-sector cooperation
and minimizes regulatory redundancy. The Coordinating Panel
includes representatives from State rural development councils
and shall facilitate effective communication among members of
the Partnership. It also authorizes Federal agencies to enter
into cooperative agreements with and provide grants and other
assistance to State rural development councils and authorizes
State rural development councils, but does not include a duty
to work with the Coordinating Committee on strategies. It
authorizes an annual plan and report to the Secretary and
authorizes appropriations of $5,000,000 for each fiscal year
2014 through 2018. Federal agencies are authorized to enter
into several types of agreements with State rural development
councils and terminates such authority on Sept. 30, 2018.
(Section 6001)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the National
Rural Development Partnership through 2018. (Section 6021)
(41-76) Consolidated Farm and Rural Development Act
The Senate amendment rewrote and reorganized portions of
the Consolidated Farm and Rural Development Act. (Section 6001)
The House bill is the same as current law.
The Conference substitute adopts the House provisions.
(77) Energy Efficiency
The House bill authorizes the Secretary to make loans to
borrowers for the purpose of relending to ultimate consumers
for energy efficiency. It also authorizes the Secretary, acting
through the Rural Utilities Service, to make loans and grants
from the Cushion Credit subaccount. (Section 6101)
The Senate amendment authorizes a Rural Energy Savings
Program 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. The program provides
0% interest rate loans to eligible Rural Utilities Service
borrowers to fund loans to qualified consumers to implement
energy efficiency measures. (Section 6203)
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes a Rural Energy
Savings Program 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. The program provides
0% interest rate loans to eligible Rural Utilities Service
borrowers to fund loans to qualified consumers. The amendment
strikes the authority for Fast Start Demonstration projects and
rulemaking requirements as well as authorizes appropriations of
$75,000,000 for each fiscal year 2014 through 2018. (Section
6205)
The Managers have authorized this new authority as an
addition to any other authority the Secretary may have to offer
loans.
(78) Fees for Certain Loan Guarantees
The House bill authorizes the Secretary, at the request
of the borrower, to charge an upfront fee to cover the cost of
an electrification base load generation loan guarantee equal to
the cost of the loan guarantee. (Section 6102)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6101)
(79) Rural Utilities Service Contracting Authority
The House bill amends current law to update its reference
to the ``Rural Utilities Service'', reflect the current
authorization of cooperative agreements and not allow a
contract funded by a borrower to be considered a public
contract within the meaning of title 41 of the U.S. Code.
(Section 6103)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(80) Access to Broadband Telecommunications Services in Rural Areas
The House bill amends paragraph (c)(2) of the Rural
Electrification Act of 1936 to provide the highest priority to
applicants that offer to provide broadband service to the
greatest proportion of households that would otherwise not have
a service provider. It authorizes a priority to applicants
where the application is not predominantly for business service
only, but offers to provide broadband service to at least 25
percent of customers that are commercial interests.
Additionally, it amends paragraph (d)(5) to require the
Secretary to publish a notice for each application describing
the application including the amount and type of support
requested and a list of the census block groups or tracts
proposed to be so served. It amends subsection (d) to require
the Secretary to establish a process where an incumbent service
provider who provides broadband service to a remote rural area
may submit to the Secretary information regarding the broadband
services that a provider offers in a proposed service territory
so that the Secretary may assess whether the application is an
eligible project. The bill also amends subsection (e) to
require the Secretary, when considering the technology needs of
customers in a proposed service territory, to take into
consideration the upgrade or replacement cost for the
construction or acquisition of facilities and equipment in the
territory. Lastly, the House bill reauthorizes the
authorization of appropriations and the termination of
authority through fiscal year 2018. (Section 6106)
The Senate amendment amends paragraph (c)(2) to provide
the highest priority to applicants that offer to provide
broadband service to the greatest proportion of households that
would otherwise not have broadband service that meets a minimum
acceptable level. It authorizes a priority to projects that
serve rural communities with a population of less than 20,000,
experiencing outmigration, with a high percentage of low-income
residents and which are isolated. It also authorizes evaluation
periods each fiscal year to compare applications and prioritize
awards to rural communities that do not have residential
broadband service that meets a minimum acceptable level.
Paragraph (d)(8) requires the Secretary to post on the RUS
website information that identifies an applicant, the amount
and type of support requested by each applicant and a list of
the census block groups or proposed service territory. It
amends paragraph (d)(5) to require the Secretary to publish a
notice of each application describing the estimated number and
proportion relative to the service territory of households
without terrestrial-based broadband service. Paragraph (d)(8)
requires the Secretary to allow broadband service providers to
submit information about the broadband services that the
providers offer in the groups or tracts in the list of the
census block groups or proposed service territory so that the
Secretary may assess whether the application is an eligible
project. It authorizes appropriations for $50,000,000 through
fiscal year 2018 and program authority through fiscal year
2018.
Additionally, the amendment amends subsection (l) (as
redesignated) to authorize from amounts made available for each
fiscal year a set aside of at least 1 percent for oversight and
implementing accountability measures.
It also amends Section 601 of the Rural Electrification
Act of 1936 by authorizing a grant program for facilities and
equipment for broadband service in rural areas, and amends
paragraph (b)(3) to define ``rural area'' as any area described
in section 3002 of the Consolidated Farm and Rural Development
Act. It amends subsection (b) to define the term ``ultra-high
speed service''.
It also amends clause (d)(1)(A)(i) to require an eligible
entity to demonstrate the ability to furnish, improve in order
to meet a minimum acceptable level of broadband service, or
extend service to all or part of an unserved rural area or an
area below a minimum acceptable level of broadband service or
to demonstrate the ability to carry out a project under a pilot
program that provides a proposed service territory with ultra-
high speed service. Clause (d)(2)(A)(i) is amended to authorize
assistance only if not less than 25 percent of the households
in the proposed service territory are unserved or have service
levels below a minimum acceptable level. Clause (d)(2)(A)(ii)
is amended to authorize assistance only if broadband service is
not provided in any part of the proposed service territory by 2
or more incumbent service providers. Subparagraph (d)(2)(B) is
amended to authorize an increase or decrease to the 25 percent
requirement under certain circumstances. Clause (d)(2)(C)(i) is
amended to provide an exception to the 3 or more incumbent
service provider requirement if the incumbent service provider
is upgrading broadband service to a minimum acceptable level of
service. Clause (d)(2)(C)(ii) is amended to not apply the
exception to the 3 or more incumbent service provider
requirement if the project is being carried out under a pilot
program to provide a proposed service territory with ultra-high
speed service, unless an incumbent is providing ultra-high
speed service. Subparagraph (d)(2)(C) is amended to require a
market survey be certified by an affected community and
demonstrated on a broadband map. Paragraph (d)(4) is amended to
authorize pilot programs to address areas that are unserved or
have service levels below a minimum acceptable level of
service, or provide a proposed service territory with ultra-
high speed service.
It amends subsection (d) to authorize certain reporting
requirements by the entity receiving assistance to the
Secretary including the use by the entity of the assistance and
the progress towards fulfilling the objective of the
assistance. The Secretary is required to maintain a fully
searchable database accessible on the Internet and at no cost
to the public that contains information regarding applicants
and data regarding entities receiving assistance. The Secretary
must also establish written procedures for all broadband
programs administered by the Secretary. The Secretary may also
establish additional report and information requirements for
recipients to ensure compliance. The Secretary is also
authorized, if no broadband service provider submits
information in regard to whether an application submitted meets
the eligibility requirements in the program, to consider the
number of providers in the group or tract to be established.
Subsection (e) is amended to define the minimum
acceptable level of broadband service as at least 4-Mbps
downstream transmission capacity and a 1-Mbps upstream
transmission capacity. The Senate amendment authorizes the
Secretary to adjust the minimum acceptable level of service and
consider whether the broadband service is fixed or mobile.
Paragraph (g)(2) is amended to authorize the Secretary to
establish a limited initial deferral period or comparable terms
necessary to achieve the financial feasibility and long-term
sustainability of the project. Subsection (j) is amended to
require the Administrator to report on the number of loans
applied for and provided, including any loan terms or
conditions for which the Secretary provided additional
assistance to unserved areas and the overall progress towards
fulfilling the goal of improving the quality of rural life by
expanding rural broadband access, as demonstrated by metrics.
It amends Section 601 by authorizing the Secretary to require
address-level broadband buildout data.
The Conference substitute adopts the Senate provision
with an amendment. The amendment requires the Secretary to
establish at least 2 evaluation periods each year to compare
applications to the program and prioritize applications for all
or part of rural communities that do not have residential
service that meets the minimum acceptable level of broadband
service defined as at least 4-Mbps downstream and 1-Mbps
upstream transmission capacity, as reviewed and adjusted by the
Secretary. Priority is also authorized for applicants that
offer to provide service, not predominantly for businesses,
where at least 25 percent of the customers would be commercial
interests. The highest priority shall be given to applicants
that offer to provide broadband service to the greatest
proportion of unserved households or households that do not
have service that meets the minimum acceptable level of service
as defined. The Secretary is directed to give equal
consideration to all qualified applicants, whether or not they
are a previous USDA borrower in the program.
The amendment requires eligible entities to demonstrate
the ability to furnish, improve in order to meet the minimum
acceptable level of broadband service as defined or extend
service to an unserved rural area or an area below the minimum
acceptable level of broadband service as defined. An eligible
project, in general, requires not less than 15 percent of the
households in the proposed service territory to be unserved or
have service levels below the minimum acceptable level of
broadband service as defined. The incumbent service provider
requirement for project eligibility will not apply if an
incumbent service provider is upgrading broadband service for
an existing service territory to meet the minimum acceptable
level of broadband service as defined. Information submitted
for the market survey requirement must be certified or
demonstrated with address-level data or the National Broadband
Map.
The amendment requires the Secretary to promptly provide
a fully searchable database on the RUS website that contains
certain information regarding applications received and
entities receiving assistance. The Secretary will require any
entity receiving assistance to submit a semiannual report for 3
years after completion of the project including certain
information. The Secretary is also directed, to the maximum
extent practicable, to establish written procedures for all
broadband programs administered by the RUS to recover funds
from loan defaults, deobligate any awards, re-award funds and
minimize overlap among programs. The Secretary is directed to
allow broadband service providers to submit information
concerning the service that they offer in relation to
applications received and information posted on the RUS website
in order to assess whether the application is eligible and, if
no information is received, to consider the number of providers
by using the most current National Broadband Map or other data.
The amendment authorizes the Secretary to consider whether the
recipient is or would be serving an unserved area or one with
service levels below the minimum acceptable level of broadband
service as defined when determining the terms and conditions of
a loan or loan guarantee, and if such determination is made,
the Secretary may establish a limited initial deferral period.
The Secretary is also required to submit in his annual report
information that includes any loan terms or conditions for
which the Secretary provided additional assistance to unserved
areas, as well as overall progress towards expanding rural
broadband access as demonstrated by metrics. The amendment
authorizes a study of the ways that data collected under USDA
broadband programs could be shared with the FCC to support the
national Broadband Map. The amendment reauthorizes the program
and authorization of appropriations through 2018.
It also authorizes the Rural Gigabit Network Pilot
Program to provide grants, loans or loan guarantees to furnish
or extend ultra-high speed service to rural areas, with an
authorization of appropriations of $10,000,000 for each of
fiscal years 2014 through 2018. (Sections 6104 and 6105)
Through the Broadband Program, USDA provides funds for
the construction, improvement, and acquisition of facilities
and equipment needed to provide broadband service in rural
communities. The conference substitute directs the program to
target funds to rural communities currently unserved or without
a minimum acceptable level of broadband service.
The conference substitute provides that equal
consideration should be given to all qualified applicants,
including those that have not previously received loans or loan
guarantees. The Managers expect this provision not to be
interpreted in a manner that would compel the agency to make
loans, regardless of the technology utilized, to provide
broadband service in geographic areas in which it has an
outstanding telecom or broadband loan. Further, the Managers
also expect the agency to have in place processes that ensure
that all incumbent service providers, particularly those with
existing agency loans, are made aware of all applications in
their service areas along with a mechanism for these companies
to provide the agency with relevant information on the impact
of the proposal. Finally, the managers intend that the
provision in subsection (c)(2)(C) be interpreted by the
Secretary as not reducing the priority of applications for
loans or loan guarantees from applicants with an existing loan
or loan guarantee under this program to the extent that the
application for additional financing is designed to ensure the
financial viability of the project and reduce the risk of loss
for the Secretary and taxpayers with respect to the existing
loan or loan guarantee.
The Managers expect the Secretary, when reviewing the
minimum broadband speed, to provide updates in the Federal
Register through a notice only, and not through a formal
rulemaking process.
The Managers are aware of concerns about network security
and data surety, especially as broadband networks expand in
part due to efforts supported by this program to promote wider
broadband coverage throughout the country. The House Permanent
Select Committee on Intelligence has released an investigative
report on network security issues in recent months, and the
Managers encourage the Department to take reports such as this
one into consideration as it administers this program.
The Conference substitute adopts provisions which
encourage USDA to consider the number of business subscribers
in a potential project. With economic development at the core
of the broadband loan program, the Managers expect USDA to
consider the benefits to the community of projects which will
provide sufficient levels of service for business connections,
both in main-street establishments and those businesses which
are operated out of the owner's residence.
The conference substitute also makes the application
process more transparent and strengthens the reporting
requirements for successful applicants to ensure the public can
access information as to how program funding is utilized.
(81) Definition of Rural Area
The Senate amendment amends current law to define the
term ``rural area'' as any area described in clause
3002(28)(A)(i) of the Consolidated Farm and Rural Development
Act, as amended by Section 6001. That clause defines ``rural''
and ``rural area'' to mean any area other than a city or town
that has a population of greater than 50,000 inhabitants.
(Section 6101)
The House bill has no comparable provision.
The Conference substitute adopts the House provision.
(82) Distance Learning and Telemedicine
The House bill authorizes appropriations of $65,000,000
for fiscal years 2014 through 2018. (Section 6201)
The Senate amendment authorizes appropriations of
$100,000,000 through fiscal year 2018. (Section 6201)
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes appropriations of
$75,000,000 for each fiscal year 2014 through 2018. (Section
6201)
(83) Value-Added Agricultural Market Development Program Grants
The House bill authorizes $50,000,000 of the funds of the
Commodity Credit Corporation and reauthorizes appropriations
through fiscal year 2018. (Section 6202)
The Senate amendment reauthorizes appropriations through
fiscal year 2017. It also amends section 231(b)(6) to authorize
priority for projects that contribute to increasing
opportunities for veteran farmers or ranchers. (Section 6207)
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes a priority to
operators of small and medium sized farms and ranches,
beginning farmers and ranchers, socially disadvantaged farmers
or ranchers and veteran farmers or ranchers when awarding
grants to eligible independent producers. The amendment also
authorizes a priority to projects that create or increase
marketing opportunities for those same groups when awarding
grants to eligible agricultural producer groups, cooperatives
and majority-controlled producer-based ventures. The amendment
also authorizes $63,000,000 in mandatory funding on the date of
enactment of this Act and reauthorizes the authorization of
appropriations through 2018. (Section 6203)
The conference substitute includes $63 million in
mandatory funding for the Value-Added Agricultural Product
Market Development Grant Program. The Managers are aware of the
increasing interest of local and regional supply chains and
food hubs in securing assistance through the program. Mid-tier
value chains that include independent producers or farm
cooperatives and businesses controlled by producers as full
partners in marketing and pricing strategy decisions already
have funds reserved for them under the program. The Managers
encourage the Department to define those eligible for the mid-
tier value chain reserved fund to include food distribution
networks and centers that coordinate agricultural production
and the aggregation, storage, processing, distribution, or
marketing of locally or regionally produced agricultural
products, provided that such entities and networks are
otherwise eligible.
The Managers recognize the importance of ensuring a
diverse portfolio of projects which help to build markets for
farmers and farmer cooperatives. While the conference
substitute maintains set-asides established in the 2008 Farm
Bill designed to encourage the participation of selected
groups, the Managers are cognizant of concerns expressed by
some stakeholders that program funds have been too narrowly
targeted. The Managers urge USDA to ensure the program funds a
range of projects. In particular, the Managers recognize that
farmer cooperatives efficiently spread the benefits of the VAPG
among a large number of producers in the aggregate.
Cooperatives by their nature bring many producers together who
individually do not have the size, expertise and resources to
take advantage of the value chain beyond the farm gate, and
they give them the opportunity to profit from those down-stream
activities. Therefore, funds invested and the benefits of
projects generated by cooperatives through the VAPG are
distributed to a wide number of producers. Likewise, by
investing in initiatives of cooperatives, such projects lower
the overall costs to the government in program administration
per individual farmer that benefits. Therefore, the Managers
encourage USDA to view cooperatives as a priority in
administering the VAPG.
(84) Agriculture Innovation Center Demonstration Program
The House bill allots $1,000,000 authorization of
appropriations for fiscal years 2014 through 2018. (Section
6203)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 6204)
(85) Program Metrics
The House bill requires the Secretary to collect data
regarding economic activities created through grants and loans,
including any technical assistance provided as a component of
the grant or loan, and measure the short and long term
viability of award recipients and any entities to whom those
recipients provide assistance using award funds under certain
covered programs. It also requires the Secretary to submit a
periodic report to Congress. (Section 6204)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment requires the Secretary to collect
data regarding economic activities created through grants and
loans, including technical assistance, and measure the short
and long term viability of award recipients and any entities to
whom those recipients provide assistance using award funds
under certain covered programs. The amendment requires the
Secretary to submit a periodic report to Congress with
information including the percentage increase of employees and
the number of business starts and clients served. (Section
6209)
In recognition of GAO recommendations to measure the
effectiveness of rural development programs, the Managers
expect the Secretary to collect data regarding economic
activity created through the loans and grants provided to rural
communities. The Managers expect these efforts will create a
harmonized baseline of information for effective use by USDA
and Congress. It is the intent of the Managers that this
collected information be integrated with program changes and
rulemaking. Through implementation of this section, the
Managers expect USDA to create a universal form or appropriate
type of notice to ensure applicants are aware of the reporting
requirements and will be prepared to provide the information in
a timely manner.
(86) Study of Rural Transportation Issues
The House bill authorizes an updated version of the study
described in Section 6206 to be reported to Congress. It also
amends the study to include the sufficiency of infrastructure
along waterways of the U.S. and the impact on the movement of
agricultural goods, as well as the benefits derived through
upgrades and repairs to locks and dams. (Section 6205)
The Senate amendment reauthorizes the study in Section
6206 to be reported to Congress. It also requires a triennial
update of the study. (Section 6205)
The Conference substitute adopts the House provision.
(Section 6206)
The Managers agree that collecting information to
determine the status of critical river infrastructure is an
important component of updating the study, but expect USDA to
seek available information from the Army Corps of Engineers, or
any other appropriate Federal entity, to the greatest extent
practicable in order to expedite the collection of data and to
minimize the time and cost of implementing this section.
(87) Certain Federal Actions not to be Considered Major
The House bill states that an action by the Secretary
that does not involve the provision of Federal dollars or a
Federal loan guarantee shall not be considered a major Federal
action in the case of a loan, loan guarantee, or grant program
in the rural development mission area of USDA. (Section 6206)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
The Managers intend for the Secretary, acting through the
Rural Utilities Service, to act in accordance with 7 C.F.R.
1794.3 as finalized in 1998, consistent with applicable law.
(88) Telemedicine and Distance Learning Services in Rural Areas
The House bill amends subsection 2333 (d) to authorize a
priority based on whether the applicant is located in a
designated health professional shortage area. (Section 6207)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(89) Definition of Rural Area for Purposes of the Housing Act of 1949
The Senate amendment amends section 520 of the Housing
Act of 1949 so that any area with a population of less than
35,000 that has been deemed to be a ``rural area'' for purposes
of this title any time prior to or after October 1, 1990, and
any time during the period between January 1, 2000, and ending
on December 31, 2010, shall continue to be so deemed until the
2020 Census data is received by USDA. (Section 6202)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 6208)
(90) Funding of Pending Rural Development Loan and Grant Applications
The Senate amendment funds pending rural development loan
and grant applications according to the terms and conditions in
Section 6029 from Commodity Credit Corporation funds in the
amount of $150,000,000, to remain available until expended.
(Section 6204)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 6210)
(91) Agriculture Transportation Policy
The Senate amendment amends Section 203 of the
Agricultural Marketing Act of 1946 to direct the Secretary to
participate in all proceedings of the Surface Transportation
Board that may establish freight rail transportation policy
affecting agriculture and rural America. (Section 6206)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes the Secretary to
make complaint to or petition the Surface Transportation Board.
(Section 6202)
Title VII--Research
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
(1) Option to be included as Non-Land-Grant College of Agriculture
The House bill authorizes a Hispanic-serving Agricultural
College and University and any institution eligible to receive
funds under the McIntire-Stennis Cooperative Forestry Act of
1962 to opt out of their respective designation in order to
qualify as a Non-Land-Grant College of Agriculture. (Section
7101)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment allows a Hispanic-serving
agricultural college and university and any institution
eligible to receive funds under the McIntire-Stennis
Cooperative Forestry Act to opt out of their respective
designation in order to qualify as a Non-Land-Grant College of
Agriculture. The amendment also requires a NLGCA institution to
offer a baccalaureate or higher degrees in the study of food
and agricultural sciences and the Secretary to establish a
process for NLGCA designation. (Section 7101)
The Managers do not take a position on how an institution
should be designated, but have provided the Hispanic Serving
Agricultural Colleges and Universities, as well as institutions
eligible to receive funding under the McIntire-Stennis
Cooperative Forestry Research Program, with the option to
choose whether to be designated as such or to opt out of their
designation for purposes of access to program funding
eligibility. The Managers believe institutions with degree
programs in the agricultural sciences that may automatically
qualify as a Hispanic Serving Institution or as a McIntire-
Stennis Cooperative Forestry Research institution should not be
precluded from being able to opt out of those programs in favor
of qualifying as a Non-Land-Grant College of Agriculture.
(2) Specialty Crop Committee
The House bill authorizes the current annual report to
include recommendations regarding the improvement of quality
and taste of processed specialty crops and programs that would
improve remote sensing. (Section 7103)
The Senate amendment authorizes the current annual report
to include an analysis of alignment of Specialty Crop Committee
recommendations with specialty crop research initiative grants,
requires membership on the Specialty Crop Committee to reflect
diversity in the specialty crops represented and that the
Specialty Crop Committee to consult on an ongoing basis with
diverse sectors of the specialty crop industry. (Section 7102)
The Conference substitute adopts the Senate provision,
including Section 12212, with an amendment. The amendment
requires that the Specialty Crop Committee membership reflect
diversity in the specialty crops represented, that the annual
report include recommendations regarding the improvement of
quality and taste of processed specialty crops, programs that
would improve remote sensing, and an analysis of alignment of
committee recommendations with specialty crop research grants
and that the specialty crops committee to consult with diverse
sectors of the specialty crop industry. The amendment also
establishes a Citrus Disease Subcommittee and its duties.
(Section 7103)
The Managers intend the NAREEEAB and Specialty Crop
Committee to consult with industry groups on agricultural
research, extension, education, and economics, and to make
recommendations to the Secretary and Congress based on that
consultation.
In creating the NAREEEAB and Specialty Crop Committee,
Congress intended for these entities to recommend policies, to
identify short and long-term national priorities for REE
programs, and to evaluate program results and effectiveness
among other assigned duties. Congress has since added multiple
duties and consultative functions to the Board's mandate. In
doing so, the Managers are aware that the work load and
learning curve of the volunteer members is high. It has become
apparent to the Managers that it can take several years for new
board members to become comfortable not only with the diverse
subject matter under review, but likewise the law and
administrative functions they are required to evaluate. While
the statute defines the length of a board member's individual
term, Congress has never intended for board members to be
subject to a limit on the number of terms they can serve.
Unfortunately, the Managers have become aware that USDA has
instituted an arbitrary term limit policy on advisory board
members that inhibits the individual members and the advisory
board's effectiveness. The Managers strongly encourage the
Secretary to reverse this policy.
The Managers recognize the interest in growing
agricultural commodities in less traditional production areas.
As such, the Managers encourage the Secretary in consultation
with the NAREEEAB, in both the intramural research carried out
by the Agricultural Research Service and in the competitive
grants programs carried out through AFRI and other authorities,
to carry out and fund research into the unique situations
facing producers in urban areas. These unique situations may
include reclaiming land previously used for industrial purposes
or neglected residential areas, and addressing needs such as
the remediation of soils to make them capable of producing
agricultural commodities for human consumption.
(3) Veterinary Services Grant program
The House authorizes a Veterinary Services Grant program
to award competitive grants to develop, implement and sustain
veterinary services. (Section 7104)
The Senate amendment authorizes a Veterinary Service
Grant program to award competitive grants to develop, implement
and sustain veterinary services. The amendment authorizes the
Secretary to develop additional grant preferences and requires
a 25 percent match requirement unless waived by the Secretary.
(Section 7103)
The Conference substitute adopts the House provision.
(Section 7104)
Our veterinary workforce is responsible for ensuring that
the food we eat is safe, but the nation faces a critical
shortage in the public, private, industrial and academic
sectors. Our nation's large-animal veterinarians are truly on
the front lines of food safety, public health, animal health
and national security. The demand for large-animal
veterinarians is increasing, and the lack of these specialists
in many areas of the country will continue to put our
agricultural economy and the safety of our food supply at risk.
Since the fall of 2000, the House and Senate Agriculture
Committees have worked on ways of resolving the serious
veterinary shortage problem confronting many rural communities.
With the passage of the National Veterinary Medical Service Act
in December of 2003, a program was authorized to incentivize
large animal veterinarians to practice in communities that USDA
designated as veterinarian shortage areas. With this program in
place, large animal veterinarians are able to apply on a
competitive basis for educational loan repayment assistance in
exchange for their commitment to practice in shortage areas.
To the extent that the loan program is successful, it is
important to consider that this was just the first step. While
this assistance will be very helpful in attracting
veterinarians to these communities, gaps remain in veterinarian
recruitment, attracting and training technical support staff,
and simply meeting the long-term costs of operating
veterinarian practices in these communities.
The Veterinarian Services Investment Act is meant to
address these secondary needs and is designed to complement the
loan repayment program to help large animal veterinarians
become established in these rural communities.
The Conference substitute recognizes and addresses a real
problem in rural America by authorizing grants to address
workforce shortages based on the needs of underserved areas.
For example, grants could be used to recruit veterinarians and
veterinary technicians in shortage areas and communities,
expanding and establishing practices in high-need areas. The
program could also establish mobile portable clinics and
televet services and establish education programs, including
continuing education, distance education, and increase
recruitment in veterinary science.
(4) Policy Research Centers
The House bill requires the Secretary, acting through the
Office of the Chief Economist, to make competitive grants to or
enter into cooperative agreements with eligible recipients that
possess a history of providing unbiased, nonpartisan economic
analysis to Congress. The provision authorizes other public
research institutions and organizations as eligible recipients.
The Secretary is directed to give a preference to policy
research centers that have extensive databases, models and
demonstrated experience in providing Congress with agricultural
market projections, rural development and agricultural policy
analysis and baseline projections at the farm, multiregional,
national, and international levels. The bill also authorizes
appropriations of $5,000,000 for each fiscal years 2014 through
2018. (Section 7106)
The Senate amendment requires the Secretary, acting
through the Office of the Chief Economist, to enter into
agreements with eligible recipients that possess a history of
providing unbiased, nonpartisan economic analysis to Congress.
The amendment authorizes other public research institutions and
organizations as eligible recipients. The Secretary is directed
to give a preference to policy research centers that have
extensive databases, models and demonstrated experience in
providing Congress with agricultural market projections, rural
development and agricultural policy analysis and baseline
projections at the farm, multiregional, national, and
international levels, including information, analysis and
research relating to drought mitigation. The amendment also
authorizes appropriations of $10,000,000 for fiscal year 2013
and each fiscal year thereafter and authorizes funding for
activities including developing theoretical applied and
research methods. (Section 7015)
The Conference substitute adopts the Senate provision
with an amendment. The amendment requires the Secretary, acting
through the Office of the Chief Economist, to make competitive
grants or cooperative agreements with eligible recipients and
to award a preference to policy research centers with extensive
databases, models and demonstrated experience in providing
Congress with various types of information or drought
mitigation information, analysis and research. The amendment
also authorizes funding for applied research methods and
authorizes appropriations of $10,000,000 for each of fiscal
years 2014 through 2018. (Section 7106)
The Managers recognize the invaluable role that the
Drought Monitor, produced at the National Drought Mitigation
Center, in coordination with USDA and the National Oceanic and
Atmospheric Administration, plays on several fronts. The
conference substitute includes the provision of information,
analysis and research relating to drought mitigation as one of
the preferences for funding under this section. The Managers
expect that the Drought Monitor will continue to be available
for use in determining eligibility for Federal disaster
response programs, as well as providing invaluable information
for other segments of government, agricultural producers and
the sectors that support agricultural production.
(5) Human Nutrition Intervention and Health Promotion Research program
The House bill repeals section 1424. (Section 7107)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7108)
The Conference substitute builds upon the efforts from
2008, either repealing or allowing unfunded and unused program
authorities to expire with fiscal year 2013, and combining,
consolidating and streamlining authorities to make a more
concentrated and effective use of limited funding. The
remaining authorities are extended through fiscal year 2018
with few changes.
(6) Pilot research program to combine medical and agricultural research
The House bill repeals section 1424A. (Section 7108)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7109)
(7) Continuing animal health and disease research programs
The House bill authorizes appropriations of $15,000,000
for each fiscal year 2014 through 2018. (Section 7110)
The Senate amendment reauthorizes appropriations through
fiscal year 2018. (Section 7108)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes and allocates the
authorization of appropriations through 2018 between the
capacity program in current law and the newly authorized
competitive grant program. (Section 7111)
The Managers have heard concerns from stakeholders that
there has been a lack of emphasis on animal science by USDA.
Additional focus needs to be placed on critical issues facing
animal agriculture. Advancements in animal science will play an
important role in meeting a growing global demand for food
while making efficient use of natural resources, strengthening
the competitiveness of American agriculture and addressing
critical animal health issues. The expansion of Section 1433
includes a competitive mechanism that will enable the
Department to better focus resources on key animal science
priorities.
The Managers appreciate the efforts brought forward by
the Farm Animal Integrated Research 2012 (FAIR 2012) priority
setting process which identified food security, one health and
stewardship as key focal areas for future investments in animal
science. The Managers encourage the Department to use these
focal areas and the underlying priorities identified in FAIR
2012 as a starting point and to regularly consult with industry
when developing requests for proposal under the new competitive
component of Section 1433.
(8) Research on national or regional programs
The House bill repeals section 1434. (Section 7111)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
The Conference substitute reauthorizes many critical
agricultural research programs. In so doing, the Managers
recognize the need to streamline the authorities in this title
and permitted some authorities that had not received funding in
recent years to expire.
(9) Grants to upgrade agriculture and food science facilities and
equipment at insular area land-grant institutions
The House bill authorizes grants to support tropical and
subtropical agricultural research, including pest and disease
research and reauthorizes appropriations through fiscal year
2018. (Section 7113)
The Senate amendment reauthorizes appropriations through
fiscal year 2018. (Section 7110)
The Conference substitute adopts the House provision.
(Section 7113)
(10) National research and training virtual centers
The House bill repeals section 1448. (Section 7114)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7114)
(11) Competitive grants program for Hispanic agricultural workers and
youth
The House bill authorizes the award of competitive grants
to provide for training in the food and agricultural sciences
of Hispanic agricultural workers and Hispanic youth working in
the food and agricultural sciences. (Section 7116)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7116)
(12) Research equipment grants
The House bill declares repeals section 1462A. (Section
7118)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7118)
(13) Auditing, reporting, bookkeeping, and administrative requirements
The House bill states that notwithstanding any other
provision of law, the Secretary may retain not more than 4
percent of amounts made available for agricultural research,
extension, and teaching assistance programs for the
administration of those programs authorized under this Act or
any other Act, except for peer panel expenses or any other
provision that contains a limitation of less than 4 percent.
The Secretary is authorized, to the maximum extent practicable
and for the purposes of supporting ongoing research and
information dissemination activities, to enter into grants,
contracts, cooperative agreements, or other legal instruments
with former Department of Agriculture agricultural research
facilities. The Secretary is also authorized, for the purposes
of receiving support for agricultural research, to enter into
grants, contracts, cooperative agreements or other legal
instruments with agricultural research organizations. (Section
7121)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes the Secretary to enter
into agreements with former USDA agricultural research
facilities. (Section 7121)
Agricultural research, extension, and education programs
serve the food and agriculture sector, consumers of American
agricultural products, and rural communities throughout the
United States. Research programs and funding are primarily
delivered by two agencies at USDA: the Agriculture Research
Service (ARS), which focuses on `intramural' research and basic
research; and the National Institute of Food and Agriculture
(NIFA) which was created by the 2008 Farm Bill to restructure,
combine and improve `extramural' research functions at USDA to
make better use of limited funds.
The Managers are concerned about the increasing use of
assessments, fees, and higher indirect costs rates imposed on
its university partners by ARS. These university partners play
a major role in achieving ARS research priorities and
objectives. In a time of scarce budgetary resources, ARS must
ensure limited research dollars are maximized and
administrative costs are reduced to the fullest extent
possible. In recent years, ARS has imposed a variety of
administrative assessments on its university partners,
effectively reducing funds intended for important research
projects. The Managers expect ARS to operate within historical
administrative cost parameters, namely by imposing a total
indirect cost rate not exceeding four percent. All
administrative assessments, fees, dues, or charges, of any
type, must be included within this overall administrative cost
cap. ARS must administer its programs more efficiently to
ensure valuable research funds are maximized so it may continue
to maintain a robust agricultural research enterprise. The
Managers encourage ARS to continue university research
partnerships to ensure our nation's premier educational and
clinical institutions play a major role in achieving ARS and
congressional research objectives.
The Managers encourage the Secretary, acting through ARS,
to continue and expand the Agricultural Technology Innovation
Partnership (ATIP). The Managers recognize the success of the
ATIP initiative in facilitating technology transfer from USDA
to the private sector, and particularly encourage the Secretary
to support the further development of public-private
partnerships to provide venture development training, promote
the sustainability of soil health for multiple agricultural
uses, and expand the National Nutrient Database to facilitate a
healthier food supply.
The Managers encourage the Secretary to review and assess
technological solutions for the disposal of acid whey
associated with the production of certain dairy products. The
Managers recognize that USDA and the ARS can maximize resources
through public-private partnerships to develop technologies to
effectively process acid whey in an effort to address concerns
of the dairy and food industries.
(14) Special authorization for biosecurity planning and response
The House bill authorizes authorization of appropriations
of such sums as necessary through fiscal year 2013 and
$10,000,000 for fiscal years 2014 through 2018. (Section 7126)
The Senate amendment amends the authorization of
appropriations of such sums as necessary through fiscal year
2013 and $20,000,000 for each fiscal year 2014 through 2018.
(Section 7119)
The Conference substitute adopts the Senate provision.
(Section 7126)
(15) Matching funds requirement
The House bill authorizes the requirement of matching
funds from the recipient of competitive grants under certain
covered laws. The recipient shall provide, from sources other
than funds provided through the grant, funds or in-kind
contributions or a combination of both to match at least 100
percent of the amount of the grant. The match requirement shall
not apply to grants awarded to a research agency of the USDA,
an entity eligible to receive funds under a capacity and
infrastructure program as defined in the Department of
Agriculture Reorganization Act of 1994 or to the partner of
such eligible entity. (Section 7128)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment requires at least a 100 percent
match from the recipient of competitive grants under certain
covered laws but exempts grants awarded to a research agency of
the USDA and entities, including their partners, that are
eligible to receive capacity funds. The amendment authorizes
the Secretary to waive the match requirement if the grant
involves research or extension activities that the NAREEE
Advisory Board has determined is a national priority specific
to a statutory purpose of the program under which the grant is
awarded. The match policy will apply to new grants awarded
after October 1, 2014. (Section 7128)
The use of matching funds has proven to be an effective
tool in leveraging limited Federal resources with commitments
from those benefitting from agricultural research and
extension. Unfortunately, concerns about the consistency of
USDA's application of these policies have been brought to the
attention of the Managers.
Efforts by the Congress to develop a comprehensive policy
on research and extension matching funds originated during the
development of the 2008 farm bill. At the time, it was noted
that as research programs have been authorized or modified, the
incorporation of matching requirements was done in a subjective
manner. An effort was initiated during the 2008 farm bill
conference to harmonize the matching requirements, but due to
the complexity of the task and time constraints, the effort was
dropped with the understanding that the Congress and USDA would
undertake a stakeholder process designed to provide
recommendations in advance of the 2012 farm bill. Unfortunately
that process never materialized after passage of the 2008 bill.
The House Agriculture Committee maintained an interest in
engaging stakeholders in a discussion about how to harmonize
these policies to improve consistency and transparency in their
application. Several requests were made for suggestions on how
best to approach this issue and the consensus seemed to be that
the Committee should propose a discussion draft. The language
included in the 2012 House Committee legislation was the result
of technical assistance received by the USDA and was meant to
begin this discussion.
As part of the discussion that commenced following
release of the 2012 House Agriculture Committee farm bill
draft, several comments were received and a consensus was
formed regarding an effort to utilize matching fund policies to
leverage Federal investment, while at the same time reducing
the administrative and accounting burden on USDA and grant
recipients.
The Conference substitute recognizes the value of
matching funds, but likewise takes into account the long-
standing Federal investment in research, extension and teaching
capacity and infrastructure programs (as defined in Sec.
251(f)(1)(C) of the Department of Agriculture Reorganization
Act of 1994). Whereas the 2012 House draft bill allowed for
capacity and infrastructure program funds to be utilized in
meeting the matching requirement for competitive research and
extension grants, the resulting accounting burden was deemed to
be counterproductive. In the conference substitute, eligibility
to receive capacity and infrastructure program funds is deemed
to be sufficient to authorize a blanket exemption from
competitive grant matching requirements. Likewise, any
individual grant awarded to multiple recipients would be exempt
from matching requirements if at least one of the recipients is
eligible to receive capacity and infrastructure program funds
from USDA.
The Conference substitute includes a provision requiring
the Secretary to establish an ongoing process through which
institutions may apply for designation as a Non-Land Grant
College of Agriculture. The Managers expect the Secretary to
take all reasonable steps for the purposes of ensuring
additional institutions that meet the criteria can be
designated as a Non-Land Grant College of Agriculture.
Additionally, the conference substitute provides the
Secretary the authority to issue a waiver of the matching funds
requirement for competitively awarded grants that support
research or extension activities that the National Agricultural
Research, Extension, Education, and Economics Advisory Board
has deemed to be a national priority. The Managers expect the
national priorities identified by the Board to be consistent
with the priorities established in the authorizing statute for
the various agricultural research, education and extension
programs.
(16) Sense of Congress regarding expansion of the Land Grant program
The House bill provides a Sense of Congress that land-
grant programs should be expanded to include enhanced funding
and additional institutions should be considered. (Section
7129)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment designates Central State University
as a land grant institution, but prohibits the University from
receiving formula funds for two years. (Section 7129)
(17) Education grants program for Alaska and Hawaiian Native serving
institutions
The Senate amendment eliminates grants without regard to
any requirement for competition and reauthorizes appropriations
through 2018. (Section 7106)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 7107)
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
(18) Sustainable agriculture technology development and transfer
The House bill authorizes authorization of appropriations
of $5,000,000 for fiscal years 2014 through 2018. (Section
7203)
The Senate amendment amends authorization of
appropriations of such sums as necessary for fiscal years 2014
through 2018. (Section 7203)
The Conference substitute adopts the House provision.
(Section 7203)
(19) National Agricultural Weather Information System
The House bill repeals Title XVI. (Section 7206)
The Senate amendment authorizes appropriations of
$1,000,000 for fiscal years 2014 through 2018. (Section 7206)
The Conference substitute adopts the Senate provision.
(Section 7206)
The Managers are aware that advanced weather forecasts,
using systems such as Tropospheric Airborne Meteorological Data
Reporting, have been utilized by various Federal agencies for
nearly a decade. The Managers support advanced forecasting in
that it enhances U.S. meteorological forecasting systems, which
are particularly useful in agricultural weather forecasts. The
Managers therefore encourage continued use of these systems.
(20) Rural Electronic Commerce Extension Program
The House bill repeals section 1670. (Section 7207)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7207)
(21) Agricultural Genome Initiative
The House bill repeals Section 1671. (Section 7208)
The Senate amendment authorizes the Secretary to
encourage awards to consortia of eligible entities. (Section
7207)
The Conference substitute adopts the Senate provision.
(Section 7208)
(22) High-priority research and extension initiatives
The House bill repeals high-priority research and
extension areas in subsections (e), (f) and (i). Pollinator
protection is reauthorized through fiscal year 2018 and an
annual report is amended to address honey bee health disorders
and best management practices. A coffee plant health initiative
is authorized as well as the authorization of appropriations
through 2018. Section 7405(b)(2)(C) addresses research needs
regarding cervidae and Section 6405 authorizes a Pulse Health
Initiative. (Section 7209)
The Senate amendment repeals certain high-priority
research and extension areas. Pollinator protection is
reauthorized through fiscal year 2018. A cervidae initiative, a
Corn, Soybean Meal, Cereal Grains, and Grain Byproducts
Research and Extension priority, Forestry Products Advanced
Utilization Research, Training Coordination for Food and
Agriculture Protection, and Farm Animal Agriculture Integrated
Research are authorized as well as the authorization of
appropriations through 2018. (Section 7208)
The Conference substitute adopts the Senate provision
with an amendment. The amendment reauthorizes the authorization
of appropriations through 2018, strikes certain high-priority
research and extension areas, authorizes a coffee plant health
initiative, a corn and soy meal high-priority research and
extension area, a pulse crop health initiative, and training
coordination for food and agriculture protection. Pollinator
protection is reauthorized and amended to include health and
population status surveillance. The amendment also authorizes
Forestry products advanced utilization research in Section
7310. (Section 7209 and 7310)
The Managers recognize that it is in the economic
interest of agricultural producers and American consumers to
ensure a healthy, sustainable population of native and managed
pollinators, including managed honey bees. Pollinators are
essential to the production of an estimated one-third of the
human diet and to the reproduction of at least 80 percent of
flowering plants. Insect-pollinated agricultural commodities
result in significant income for agricultural producers and
account for about $20 billion in U.S. agricultural output
yearly.
The Managers remain concerned about the decline in the
health and viability of managed honey bees due in part to a
loss of appropriate habitat. As a result, the conference
substitute continues to include a priority for creating
pollinator habitat utilizing the Title II conservation
programs. The Managers remain committed to pollinator
protection activities, including the granting of priority
treatment to conservation program applicants who commit to
providing pollinator habitat. The Managers expect the Secretary
to continue to utilize conservation programs to create, restore
and enhance native and managed pollinator habitat quantity and
quality, and specifically encourage the Secretary to ensure
that conservation programs are resulting in sufficient high-
quality pollinator habitat for managed honey bees--habitat that
includes common alfalfa and sweet clover varieties utilized
effectively in farm bill conservation programs.
The Conference substitute also continues the
authorization for research on pollinator protection, and adds a
consideration for honey bee health disorders and best
management practices related to colony collapse disorder to the
annual report that the Secretary is required to submit to
Congress. The Managers also recognize the need to assist honey
bee producers who suffer from disasters in the commodity title
with the funding provided for the emergency assistance program
that includes honey bees. Additionally, the Managers are aware
that specialty crop producers groups are working
collaboratively with institutions of higher learning on
research and education activities. The Managers applaud these
actions and encourage the Secretary to support their efforts.
The Cooperative Extension system is a nationwide, non-
formal educational network. Each state, territory, and the
District of Columbia has an office at its land-grant
universities and a network of local or regional offices which
are staffed by experts who provide practical, research-based
education to agricultural producers, small business owners,
youth, consumers, and others in rural and urban communities.
The Managers encourage the Secretary to ensure that Cooperative
Extension is effectively utilized to deliver the educational
component of USDA programs. The Secretary is also encouraged to
engage in discussions with other federal departments and
agencies to consider ways to use the Cooperative Extension to
deliver education for other federal programs as practicable.
In addition, the Managers recognize the unique knowledge
and information that the Cooperative Extension system experts
provide to various groups regarding farm and food systems. As
mentioned, this education and information is disseminated
through a network of local or regional offices, and when the
Secretary utilizes the Cooperative Extension to deliver the
educational component of the various programs at the
Department, to the extent practicable, the Rural Development
mission area programs should be included.
During the creation of the Reservation Extension Agent
Program, the Congress required the Secretary to consult with
Native American farmers and ranchers in establishing Extension
programs on Indian reservations and tribal jurisdictions. The
Managers understand that changes in the operation of grant
programs have impacted this consultation, and expect that the
Secretary would find ways to continue the dialogue on the
operation of these Extension programs with the populations that
they are serving.
The Conference substitute moves the Forestry Products
Advanced Utilization Research Initiative provision from High
Priority Research and includes it as a separate provision in
the Agricultural Research, Extension, and Education Reform Act
of 1998. The Managers intend for this provision to address
research needs of the forestry sector and their respective
regions. The Conference substitute directs the Secretary to
ensure that this program is administered in coordination with
the U.S. Forest Service Research and Development Program and
the Forest Products Laboratory. The Managers encourage the U.S.
Forest Service Research and Development Program to contribute
funding to carry out this initiative. The Managers also
recognize the benefits the Land Grant System can offer this
initiative in terms of developing and disseminating science-
based tools through research and extension activities.
(23) Nutrient management research and extension initiative
The House bill repeals section 1672A. (Section 7210)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7210)
(24) Organic agriculture research and extension initiative
The House bill eliminates the funds transfer, encourages
farm business management, authorizes $20,000,000 in mandatory
funding for each fiscal year 2014 through 2018 and reauthorizes
appropriations for 2014 through 2018. (Section 7211)
The Senate amendment eliminates the funds transfer and
authorizes $16,000,000 in mandatory funding for each fiscal
year 2014 through 2018. (Section 7209)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes competitive grant
purposes, including farm business management, reauthorizes the
authorization of appropriations and authorizes $20,000,000 of
Commodity Credit Corporation funds for each fiscal year 2014
through 2018. (Section 7211)
The Conference substitute provides additional funding for
the Organic Research and Education Initiative. One of the
primary activities necessary to encourage continued market
growth, improved food safety and risk management for both of
these industries is adequate dedicated research support. The
Managers recognize that research is one of the primary means by
which the Farm Bill provides assistance to organic farmers, so
conference substitute increases funding beyond the levels in
the 2008 Farm Bill, consistent with increased market needs.
The Managers encourage the USDA to explore technology
that meets the requirements of the National Organic Program and
that can control weeds and pests while maintaining healthy
water resources.
(25) Agricultural bioenergy feedstock and energy efficiency research
and extension initiative
The House bill repeals section 1672C. (Section 7212)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7212)
(26) Centers of excellence
The House bill moves the authority in subsection 1672(i)
requiring the Secretary to prioritize any center of excellence
established for specific agricultural commodities for the
receipt of funding for any competitive research or extension
program administered by the Secretary. A center of excellence
is composed of 1 or more eligible entities specified in
subsection (b)(7) of the Competitive, Special, and Facilities
Research Grant Act that provide financial or in-kind support to
the center. Certain criteria will be considered for recognition
as a center of excellence and where practicable, the criteria
for consideration shall include efforts to improve teaching
capacity and infrastructure at colleges and universities.
(Section 7214)
The Senate amendment moves the authority in subsection
1672(i) providing that the Secretary may prioritize regional
centers of excellence established for specific agricultural
commodities for the receipt of funding and authorizes
appropriations of $10,000,000 for fiscal years 2014 through
2018. (Section 7211)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes the Secretary to
prioritize centers of excellence established for the purposes
of carrying out research, extension, and education activities
relating to the food and agricultural sciences for the receipt
of funding for any competitive research or extension program.
(Section 7214)
With limited resources to invest in critical programs,
the Managers considered multiple options by which Federal funds
can be leveraged to improve overall program effectiveness. With
the recognition that multiple institutions and organizations
participate in projects of similar interest, the Managers have
sought to incentivize the formation of formal partnerships and
other organizational structures as Centers of Excellence. The
conference substitute directs that such centers that meet
established criteria be granted priority in receipt of
competitive research and extension grants.
The Managers would recommend that USDA establish
procedures to implement this provision in accordance with
appropriate regulatory procedures in order to allow interested
stakeholders to gain a firm understanding of USDA's
implementation of the provision.
(27) Red Meat Safety Research Center
The House bill repeals section 1676. (Section 7215)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7215)
(28) Assistive Technology Program for Farmers with Disabilities
The House bill authorizes appropriations of $6,000,000
for fiscal year 2013 and $3,000,000 for each fiscal year 2014
through 2018. (Section 7216)
The Senate amendment authorizes appropriations of
$6,000,000 for fiscal year 2013 and $5,000,000 for each fiscal
year 2014 through 2018. (Section 7212)
The Conference substitute adopts the Senate provision.
(Section 7216)
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
(29) Coordinated program to improve visibility of small and medium size
dairy, livestock and poultry operations
The House bill repeals section 407. (Section 7303)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(30) Fusarium Graminearum
The House bill authorizes appropriations of such sums as
necessary through fiscal year 2013 and $7,500,000 for each
fiscal year 2014 through 2018. (Section 7304)
The Senate amendment authorizes appropriations of
$10,000,000 for each fiscal year 2014 through 2018. (Section
7303)
The Conference substitute adopts the Senate provision.
(Section 7303)
(31) Bovine Johne's Disease Control Program
The House bill repeals section 409. (Section 7305)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7304)
(32) Specialty Crop Research Initiative
The House bill authorizes research in plant breeding,
genetics and genomics to include other methods and also
authorizes handling and processing. It authorizes the Secretary
to award competitive grants on the basis of an initial
scientific peer review and a final funding determination made
by the Secretary based on a review and ranking for merit,
relevance and impact conducted by a panel of specialty crop
industry representatives for the specific crop. $50,000,000 of
mandatory monies is authorized for fiscal years 2014 and 2015,
$55,000,000 for fiscal years 2016 and 2017, and $65,000,000 for
fiscal year 2018 and each fiscal year thereafter and the
authorization of appropriations is reauthorized for 2014
through 2018. Section 6128 provides a universal match policy
that applies to this provision. (Section 7307)
The Senate amendment authorizes the Secretary to consult
with the Specialty Crops Committee during the peer and merit
review process. $25,000,000 of mandatory monies is authorized
for fiscal year 2014, $30,000,000 for fiscal years 2015 and
2016, $65,000,000 for fiscal year 2017 and $50,000,000 fiscal
year 2018 and each fiscal year thereafter. The amendment also
eliminates the non-federal funds limitation on the match
requirement. (Section 7305)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes the initiative to
address research in genomics and other methods as well as
efforts to improve handling and processing. The Secretary is
directed to award competitive grants on the basis of a
scientific peer review and a review and ranking for merit,
relevance and impact and to consult each fiscal year with the
Specialty Crops Committee and report to Congress the results of
the consultation and the committee's review of the grants
awarded in the previous year, including the Citrus Disease
subcommittee's consultation and grant review in Section 1408(g)
of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977. The amendment also authorizes $80,000,000
of Commodity Credit Corporation funds for fiscal year 2014 and
each fiscal year thereafter and reauthorizes the authorization
of appropriations for each year 2014 through 2018.
The amendment also adopts the Senate amendment, Section
12212, with an amendment, authorizing an Emergency Citrus
Disease Research and Extension Program with a reservation of
Commodity Credit Corporation funds authorized for SCRI of
$25,000,000 for fiscal year 2014 through 2018, available and
reserved until expended, and an authorization of appropriations
of $25,000,000 for each fiscal year 2014 through 2018. (Section
7306)
The Managers are aware of concerns that the current merit
review process for competitive research grants generally and
the Specialty Crops Research Initiative can provide a
significantly better approach to evaluating the relevancy of
the proposed research projects through industry participation.
The conference substitute incorporates amendments to strengthen
the merit review process to address these shortcomings.
As the Secretary implements the amendments to sections
103 and 412 of the Agricultural Research, Extension, and
Education Reform Act of 1998; and section 1408A of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977, the Managers intend the Secretary to institute a grant
review process that will consist of a scientific peer review
and a merit/relevance review of proposals to be conducted by
panels of industry representatives for the specific crop or
livestock species being evaluated to assess industry relevance.
While the Managers do not specify the order of review
between scientific peer review and merit/relevance review, it
is understood that there exists an initial preference among
industry, academia and the Department that merit/relevance
review should be sequenced first. If the Secretary chooses to
sequence merit/relevance review prior to scientific peer
review, the Managers expect future modifications to the overall
process to be guided by an ongoing evaluation to be conducted
by the National Agricultural Research, Extension, Education,
and Economics Advisory Board, and the Specialty Crop Committee
(for merit/relevance review related to the Specialty Crop
Research Initiative). The advisory committee review of this
process should occur before and after each annual funding
cycle. The results of these reviews should be made publicly
available and forwarded to the House Committee on Agriculture,
the Senate Committee on Agriculture, Nutrition and Forestry,
and the Appropriations Subcommittees on Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
in the House and Senate.
The Managers further understand that the Department is
considering a pre-proposal process to conduct an enhanced
merit/relevance review. While a pre-proposal process is neither
authorized nor prohibited, the Managers expect that if the
Secretary uses his discretion to pursue this process, this too
would be evaluated as part of the ongoing review of program
effectiveness.
In order to sufficiently evaluate the pre-proposals for
merit/relevance, the Managers expect the submission must
include: the process used to obtain stakeholder input to
identify the industry need and proposed project objectives; the
problem, rationale, significance, and hypotheses; how the
proposed research approach will address each objective; the
process to be used for continued stakeholder engagement to
achieve project objectives; how the project will translate
results into delivery of usable information to the entire
stakeholder community in a timely fashion; and documentation of
the relevance of the Principal Investigator(s) scientific
background to project objectives.
Applicants submitting project pre-proposals that are
found to rank high on merit/relevance review would then be
invited to submit full proposals for scientific peer review
conducted by a panel of subject matter experts from Federal
agencies, non-Federal entities, and the industry. Among those
project proposals that pass scientific peer review, final
awards determinations should, to the maximum extent
practicable, emphasize the results of the merit/relevance
review process.
The Managers encourage the Secretary to prioritize
competitive grants to address imminent threats which may impact
the future of specialty crop production in this country.
The Conference substitute provides additional funding for
the Initiative. One of the primary activities necessary to
encourage continued market growth, improved food safety, and
risk management is adequate dedicated research support. The
Managers recognize that research is one of the primary means by
which the Farm Bill provides assistance to specialty crop
producers, so the reported bill significantly increases funding
beyond the levels in the 2008 Farm Bill, consistent with
increased market needs.
The U.S. citrus industry has been devastated by
huanglongbing, an invasive disease also known as citrus
greening disease, which has been spread by a foreign pest known
as the Asian Citrus Psyllid. Citrus greening poses an imminent
threat to the viability of this multibillion dollar industry in
several states and promises to ravage the rest of the U.S.
citrus producing sector if a cure or effective treatment is not
found expeditiously. USDA has already affirmed this emergency
with the citrus quarantine for Florida, Alabama, Georgia,
Hawaii, Louisiana, and Mississippi as well as parts of
California, South Carolina, and Arizona in October 2012. Citrus
greening spreads quickly, and because of its dormancy period,
surrounding groves are often already destroyed by the time the
disease has been discovered.
The conference substitute establishes a research program
dedicated to discovering or developing a cure or effective
treatment for citrus greening and any other diseases and pests,
domestic or invasive, that emerge to threaten the U.S. citrus
producing and processing industry. The Managers recognize the
need to target research toward citrus greening in a sustained
and adequately funded manner. The urgent need to find a cure or
effective treatments for citrus greening that will be useful in
all of the major citrus-producing states of Arizona,
California, Florida, and Texas is paramount. This urgency
should guide the Department's operation of this program.
The Managers also recognize the importance of ensuring
close collaboration between the Department, the industry
stakeholders described in this section, and the relevant
entities engaged in scientific research under this program. The
Managers intend that the Department will consult closely and
regularly with the industry stakeholders in the formulation,
consideration, and approval of research projects performed
under this program and will give great weight to input from
these stakeholders. Those persons selected to serve as industry
stakeholders should be chosen in a manner that reflects the
views and interests of the commercial citrus-producing sectors
in the major citrus-producing states.
(33) National Swine Research Center
The House bill repeals section 612. (Section 7309)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7308)
(34) Studies of agricultural research, extension and education
The House bill repeals Subtitle C of title VI. (Section
7311)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7311)
Subtitle D--Other Laws
(35) Equity in Educational Land-Grant Status Act of 1994
The House bill adds Aaniih Nakota College, College of the
Muscogee Nation, Keweenaw Bay Ojibwa Community College, and
Navajo Technical College and removes Crownpoint Institute of
Technology, Fort Belknap College, and Si Tanka/Huron University
to the authority and updates the names of Chief Dull Knife
College and Sisseton Wahpeton College. The bill reauthorizes
appropriations through fiscal year 2018 and requires
certification that research will be performed under a
cooperative agreement with ARS or at least one other land grant
college or university (exclusive of another 1994 Institution),
at least one non-land grant college of agriculture or at least
one cooperating forestry school. (Section 7402)
The Senate amendment adds the same institutions as the
House bill and updates the name of the Sisseton Wahpeton
College, reauthorizes appropriations through fiscal year 2018
and requires the same certification as the House provision.
Amends subsection (a)(2)(A)(ii) to except 1994
Institutions as provided under section 3(b)(3) of Smith-Lever,
and for programs for children, youth and families at risk and
for Federally recognized tribes implemented under section 3(d)
of that Act (subsection (b)). (Section 7402)
The Conference substitute adopts the House provision.
(Section 7402)
The Managers remain concerned about the agency's
operation of FRTEP as if it were a 3(d) program. The
Reservation Extension Agent Program was not authorized under
Section 3(d) of the Smith-Lever Act. While this may have made
administration of grants easier for the agency, it has led to
confusion and unintended consequences. The Managers encourage
the agency to follow congressional intent when implementing
programs, old and new.
(36) Carbon cycle research
The House bill repeals section 221. (Section 7404)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
The Managers encourage the Agricultural Research Service
to continue their field studies around the country to assess
how biochar affects crop productivity and soil quality.
Preliminary studies show promising results of how hardwood
biochar can improve soil structure and the ability of sandy
soils to retain water.
(37) Competitive, Special, and Facilities Research Grant Act
The House bill reauthorizes appropriations through fiscal
year 2018. The provision authorizes priority areas on plant-
based foods that are major sources of nutrients of concern, the
research and development of surveillance methods, vaccines,
vaccination delivery systems or diagnostic test for pests and
diseases in wildlife reservoirs, the identification of animal
drug needs, conservation practices and technologies addressing
nutrient loss and improving water quality, and the economic
costs of adopting conservation practices and technologies to
improve water quality. The bill requires the Secretary to
establish procedures under which State or Federal commodity
promotion entities may directly submit proposals for requests
for applications to address issues related to established
priorities and award grants to eligible entities that submit
proposals. Eligible entities are amended to include
foundations. The Inter-regional research project number 4 is
amended to include pesticides for use on specialty crops.
Subsection (k) is repealed. (Section 7405)
The Senate amendment reauthorizes appropriations through
fiscal year 2018. Section 7208(6) authorizes the Pulse Health
Initiative, including an authorization of appropriations of
$25,000,000 for fiscal years 2014 through 2018. Sec. 12101
amends Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 to establish a wildlife reservoir
zoonotic disease initiative to provide grants for research and
development of surveillance methods, vaccines, vaccination
delivery systems, or diagnostic tests for covered diseases.
Sec. 7308 authorizes four regional integrated pest management
centers to provide research and extension programs, outreach,
and response to information needs, among other purposes. The
amendment also requires that not less than 30 percent of
funding be made available for integrated research, extension
and education activities and requires the Secretary to submit a
report to Congress regarding streamlining the AFRI grant
application process. (Section 7404)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes appropriations through
2018, and adds priority areas to the competitive grant program
and foundations to the list of eligible entities. The amendment
also directs the Secretary to establish procedures under which
a commodity promotion board or a State commodity board (or its
equivalent) may submit to the Secretary for consideration
proposals for requests for applications that address issues
related to the priority areas of this grant program. Grants
will not be funded under this authority unless the grant is
matched with an equal contribution of funds from the entities
submitting proposals for requests for applications. The Inter-
regional research project number 4 is amended to include
specialty crops. (Section 7404)
The Agriculture and Food Research Initiative (AFRI) is
the premier competitive research and extension grants program
within the USDA. The AFRI program was established in 2008 as a
successor program to the National Research Initiative
Competitive Grants Program and the Initiative for Future
Agriculture and Food Systems. The statutory priorities for the
AFRI program are purposefully broad. In developing these
priorities, the Congress was aware that as science evolves, a
balance needed to be achieved between the need for flexibility
to respond to new and emerging threats and opportunities, and
the need for transparency and accountability in the expenditure
of taxpayer funds.
Concerns are periodically raised regarding the annual
allocations among the various statutory programmatic priorities
and sub priorities. The Managers were aware of these
qualitative concerns but lacked quantitative information on
which to base any policy modifications. As a continuation of
the programmatic audit carried out by the House Committee on
Agriculture in preparation for developing the FARRM Act, USDA
was requested to provide a listing of recent awards under the
AFRI program sorted according to the corresponding statutory
priorities and sub priorities. That data revealed a dramatic
shift in awards funding away from traditional areas of
production agriculture. For instance, awards for research in
plant systems dropped from 38.7 percent of available funds in
fiscal year 2007, the final full year under the predecessor
programs, to 18.4 percent in 2011. Awards for research in
animal systems fell from 22.4 percent to 9.4 percent over the
same time period.
Following receipt of a final report in February 2013,
there remained concern that the allocation of research and
extension awards under the AFRI program was inconsistent with
national priorities. As a result of the analysis, commitments
were made by senior leadership of the National Institutes of
Food and Agriculture (NIFA) to address these concerns. Efforts
undertaken by the Director of NIFA to incorporate enhancements
in the fiscal year 2014 budget submission, while still lacking
in certain respects, demonstrate the seriousness to which these
commitments are being upheld.
While the Managers are encouraged by the progress being
made, there remains a desire to codify the transparency and
accountability measures contained within this budget submission
language (section 7513).
The Managers recognize the importance of basic animal
health research. The Conference substitute includes a priority
for the research and development of surveillance methods,
vaccines, vaccination delivery systems and diagnostic tests for
pests and diseases that cause epizootic diseases in domestic
livestock (including deer, elk, bison, and other cervidae) and
zoonotic diseases (including bovine brucellosis and bovine
tuberculosis) in domestic livestock or wildlife reservoirs that
present a potential concern to public health.
The Managers recognize the growing importance of and need
for comprehensive and practical scientific and economic
assessments of agricultural practices and technologies intended
to improve agriculture's water quality and quantity
performance. This is particularly the case as states work with
producers on high priority or high profile water quality
challenges. Such scientific and economic assessments are needed
for the major crop producing regions of the country, taking
into account soils, climate, crops grown, and the technologies
and agricultural practices in use. The goal of such assessments
should be to develop information and continue to build on the
tools already in place. The assessments should continue to
develop new and innovative approaches to help producers and
policy makers in states understand what is affordable,
achievable and sustainable for producers. The assessment can
then be used to consider how different water quality policy
choices relate to other important societal objectives involving
agriculture. The Managers encourage the Secretary to initiate a
multi-year effort to help the states and USDA continue to
develop this base of science and knowledge through the funding
of proposals from qualified institutions capable of supporting
interdisciplinary teams of researchers and experts to carry out
such efforts.
The Managers recognize the success of the Conservation
Effects Assessment Project (CEAP) and the cross collaborative
approach between multiple agencies at USDA, and strongly
encourages USDA to continue and expand on those efforts. The
Managers do not intend for this provision to be a replacement
for or duplication of CEAP, but rather as a source of sound,
complementary economic and technical information that could be
used in conjunction with CEAP to create more accurate
assessments of the effects of prospective conservation measures
on agricultural land.
The Managers recognize that maintaining and enhancing
wild rice, a uniquely American specialty crop, depends on
continued use of traditional breeding methods, along with the
application of new genetic tools to make conventional breeding
more efficient. Genetic analysis of shattering, disease
resistance, reduced plant height, and other traits require not
only development of new genetic markers for wild rice, but also
new methods for gathering accurate phenotypic information on
the plants. The use of these improved genetic resources in the
future depends on their continued availability through reliable
seed storage methods. Some research has been done on
maintaining viability of stored seeds, but these need to be
translated into reliable and useful methods at the local level
to ensure breeding progress.
The Managers would hope that the Secretary would consider
the following research objectives regarding wild rice genetic
resources: preserving and enhancing wild rice breeding lines
for testing and release as future varieties; developing
phenotyping methods and genotypic markers for various traits;
using genotypic and phenotypic information to identify superior
genetic resources for breeding and to develop more efficient
breeding methods; evaluating and maintaining the genetic
distinctiveness of wild rice breeding lines and populations;
and developing improved methods for short- and medium-term
storage of wild rice breeding lines and populations.
The Managers are concerned about the spread of tick-borne
illnesses, particularly Lyme Disease in humans. The disease is
heavily concentrated in the Northeast and upper Midwest. Lyme
Disease, along with other tick-borne illnesses which affect
livestock, presents a public health concern, particularly in
the Agriculture community. Recognizing the impact of pests such
as ticks, the Managers have reauthorized important research and
development priorities and urge NIFA, in conjunction with other
agencies, to build upon its existing efforts and pest
management resources to protect humans and livestock from tick-
borne illnesses.
The Managers recognize that eligible applicants with
limited institutional capacity may face unique challenges in
successfully competing for funding administered by NIFA. The
Managers encourage the Secretary to assess these challenges and
to consider appropriate methods of streamlining the competitive
grants application process.
(38) Remote sensing data
The House bill repeals section 892. (Section 7408)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7407)
(39) Reports under Farm Security and Rural Investment Act of 2002
The House bill repeals Sections 7409, 7410 and 7411.
(Section 7409)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7408)
(40) Beginning Farmer and Rancher Development Program
The House bill amends the authorized areas for programs
and services and includes school-based agricultural educational
organizations as a priority recipient. The bill requires that
not less than 5 percent of the funds in a fiscal year used to
make grants be used to support programs and services that
address the needs of military veteran beginning farmers and
ranchers and authorizes the Secretary to coordinate between a
recipient of a grant used for this purpose and a recipient of a
grant under section 1680 of the Food, Agriculture, Conservation
and Trade Act of 1990 in addressing the needs of military
veteran beginning farmers and ranchers with disabilities. The
provision prohibits a recipient of a grant from using more than
10 percent of grant funds for the indirect costs of carrying
out an authorized grant initiatives. Of the funds of the
Commodity Credit Corporation, $20,000,000 for each fiscal year
2014 through 2018 is authorized and the authorization of
appropriations is extended for fiscal years 2014 through 2018.
(Section 7410)
The Senate amendment includes beginning farmers and
ranchers who are veterans in the current set-aside of funding
and authorizes competitive grants to States to establish and
improve farm safety program at the local level. Of the funds of
the Commodity Credit Corporation, $17,000,000 for each fiscal
year 2014 through 2018 is authorized and the authorization of
appropriations is extended for fiscal years 2014 through 2018.
(Section 7408)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes grant purposes including
farm safety and awareness and a priority for school-based
agricultural educational organizations. It also specifies that
an eligible entity may be a community-based or nongovernmental
organization and provides at least a 5 percent set-aside for
those programs and services already qualified for the set-aside
in current law as well as another 5 percent set-aside for
veteran farmers and ranchers. The amendment limits indirect
costs and permits coordination with recipients of an assistive
technology program for farmers with disabilities grant.
$20,000,000 of Commodity Credit Corporation funds for each
fiscal year 2014 through 2018, to remain available until
expended, is authorized and the authorization of appropriations
is extended through 2018. (Section 7409)
The Conference substitute reauthorizes and provides
mandatory funding to the Beginning Farmer and Rancher
Development Program, which develops and offers education,
training, outreach and mentoring programs to ensure the success
of the next generation of farmers. The conference substitute
expands eligibility to include military veterans who wish to
begin a career in agriculture.
(41) McIntire-Stennis Cooperative Forestry Act
The House bill amends the definition of state to include
American Samoa, the Federated States of Micronesia and the
Commonwealth of the Northern Mariana Islands. (Section 7411)
The Senate amendment amends the definition of state to
include the Federated States of Micronesia, American Samoa, the
Northern Mariana Islands and the District of Columbia and
exempts eligible 1890 Institutions from the matching funds
requirement if the allocation is below $200,000. (Section 8301)
The Conference substitute adopts neither the House nor
the Senate provision. Both the House bill and Senate amendment
included amendments to the McIntire-Stennis cooperative
forestry program to extend eligibility to the 1862 land grant
colleges in insular areas not currently specified in the Act.
USDA has since provided the Managers with technical assistance
clarifying that those institutions were already eligible to
participate by virtue of other law, specifically section
1361(a) of P.L. 96-374, thus negating the need for this
provision.
The National Association of University Forest Resources
Programs (NAUFRP), (formerly the National Association of
Professional Forestry Schools and Colleges) represents 69 of
our nation's universities and their respective scientists,
educators and extension specialists. NAUFRP's purpose is to
advance the health, productivity, and sustainability of
America's forests by providing university-based natural
resource education, research, science, extension and
international programs. The Managers would encourage USDA to
engage in discussions with NAUFRP to ensure that their
proposals for resource management are appropriately addressed.
Subtitle E--Food, Conservation, and Energy Act of 2008
(42) Enhanced Use Lease Authority Pilot Program
The House bill states that section 308 is amended to
terminate 10 years after the date of enactment of section 308
and reports are required not later than 6, 8, and 10 years
after enactment. (Section 7511)
The Senate amendment states that subparagraph (b)(6)(A)
is amended to extend the authority of this section on September
30, 2018. (Section 7405)
The Conference substitute adopts the House provision.
(Section 7511)
(43) Grazinglands Research Laboratory
The House bill amends section 7502 to extend the
authority for 10 years beginning on the date of enactment of
the Act. (Section 7512)
The Senate amendment amends section 7502 to extend the
authority until September 30, 2018. (Section 7511)
The Conference substitute adopts the House provision.
(Section 7512)
(44) Budget submission and funding
The House bill requires information regarding each
research program carried out by the ARS or ERS for which annual
appropriations are requested in the annual budget submission of
the President and each competitive program carried out by the
NIFA for which annual appropriations are requested in the
annual budget submission of the President, requires additional
information for each funding request for a covered program to
be submitted to Congress each year together with the annual
budget submission of the President, prohibits the President
from carrying out any program under certain authorities during
the fiscal year unless the President submits the information
required and described for a fiscal year and requires an annual
report to Congress. (Section 7512)
The Senate amendment requires information regarding each
research program carried out by the ARS or ERS for which annual
appropriations are requested in the annual budget submission of
the President and each competitive program carried out by the
NIFA for which annual appropriations are requested in the
annual budget submission of the President, requires additional
information for each funding request for a covered program to
be submitted to Congress each year together with the annual
budget submission of the President, and requires an annual
report to Congress. (Section 7512)
The Conference substitute adopts the House provision.
(Section 7513)
The Managers are aware of the need for the statutory
priorities for the various agricultural research, education and
extension programs to be written with sufficient flexibility so
that the Administrators of the USDA research agencies can
respond quickly and efficiently to emerging problems and
opportunities. Further, recent changes in Congressional
appropriations procedures have only enhanced USDA's flexibility
in administering these programs. The Managers are nevertheless
cognizant of the need for taxpayer funds to be used in a
transparent and accountable manner.
Given the spending discretion that USDA has gained in
recent years, it is incumbent upon the Department to manage the
research, education and extension programs in a most
transparent manner. This transparency assures Congress and
stakeholders of the integrity of these programs.
In the past year, the Managers have expressed concerns
about funding allocations under various research, education,
and extension programs to the senior leadership of the National
Institute of Food and Agriculture (NIFA). These fruitful
discussions with NIFA leadership resulted in several
commitments to address the underlying concerns of the Managers
as well as to enhance the information available in future
budget submissions.
In order to increase the ability of Congress to
appropriately oversee funding allocations, the conference
substitute seeks to codify the commitments that have been made
by NIFA leadership in order to provide transparency and
accountability with regard to the research, extension and
education budget. It is the intent of the Managers that USDA
provide increasingly detailed spending plans to Congress in
advance of the development of annual appropriations measures so
that Congress and interested constituencies can weigh the
merits of these allocations against evolving priorities, and as
a representative body, Congress can approve or disapprove of
the proposed allocations.
The Managers believe that receipt of the information
requested in this section will be beneficial to the long-term
goal of expanding resources available for agricultural
research, extension and education. The Managers believe that
enhanced transparency in the budgeting process can only
increase awareness and broad-based support for these critical
programs.
It is likewise the intent of the Managers that the
process of submitting information concerning the budget outline
would be an iterative process and that the research agencies
would consult with the Congressional authorizing committees and
appropriating subcommittees to ensure clarity of the budget
request. To this end, the conference substitute specifically
authorizes the research agencies to submit corrections and
clarifications in a reasonable period of time to fulfill the
requirements of this section.
The Managers are aware that the ARS is shifting its
funding priorities from core work in areas impacting crop
protection and livestock production to environmental
stewardship. The Managers are concerned that this action is
short-sighted, especially in light of the fact that many plant
disease issues may be magnified under varying weather
conditions, and this is especially the case in the work on
fusarium head blight in wheat and barley.
The Managers are aware of budgetary constraints
throughout the Department; nevertheless, the Managers question
the priority setting process on how funds are allocated with
regard to aquaculture. In particular, the Managers are aware of
the continuing threat of predators to aquaculture operations
and encourage the Secretary to continue to fund these important
livestock protection programs.
The Managers recognize that historical funding levels for
equine sciences have been limited and encourage the Secretary
to consider increasing resources allocated to research
priorities for equine health in the Department's annual budget
submission.
The Mangers recognize that historical funding levels for
rangeland and prairie grass research has been limited and
encourage the Secretary to consider increasing resources
allocated to research priorities for rangeland and prairie
grass research, including tall-grass and other native
vegetation.
The Managers recognize the importance of nationally
coordinated, regionally managed canola research and education
programs. In awarding grants for these activities, the Managers
encourage the Secretary to seek input from stakeholders and
give priority consideration to proposals that address research
needs in production areas with the greatest potential to expand
as well as those where canola production is established and
needs to be maintained.
The Managers would like to encourage the Secretary to
fund competitive research into the fundamental issues of
stabilizing food prices to enhance food security in the U.S.
and globally. One area of interest is an examination of the
economic factors leading to increased food security in the U.S.
The Managers are also interested in how financial markets and
the expansion of the bioenergy industry globally has impacted
global food prices.
(45) Research and education grants for the study of antibiotic-
resistant bacteria
The House bill reauthorizes appropriations through 2018.
(Section 7514)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(46) Farm and Ranch Stress Assistance Network
The House bill repeals Section 7522. (Section 7515)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(47) Seed distribution
The House bill repeals Section 7523. (Section 7516)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7514)
(48) Sun Grant Program
The House bill authorizes the Secretary to coordinate
among appropriate Federal agencies, authorizes grants to be
used towards integrated, multistate research, extension and
education programs on technology development and
implementation, repeals Funding allocations for specific
programs, amends requirements for the plan for research
activities to be funded to address bioproducts and priorities
of appropriate Federal agencies and reauthorizes the program.
(Section 7518)
The Senate amendment authorizes the Secretary to
coordinate among appropriate Federal agencies, authorizes
grants to be used towards integrated, multistate research,
extension and education programs on technology development and
implementation, repeals Funding allocations for specific
programs, amends requirements for the plan for research
activities to be funded to address bioproducts and priorities
of appropriate Federal agencies, reauthorizes the program, and
authorizes grants to a Sun Grant Center for each region.
(Section 7514)
The Conference substitute adopts the Senate provision.
(Section 7516)
The Conference substitute directs the Secretary to
utilize and leverage the investment, resources, and capacities
of the current regional Sun Grant Program Centers and Sub-
center to continue their leadership and management of the
regional Sun Grant competitive grants program.
The Conference substitute reauthorizes, consolidates, and
amends the Sun Grant Program to expand input from other
appropriate federal agencies, authorize bio products, eliminate
authorization for gasification research and make the program
competitive. The Managers recognize the leadership and work of
the Sun Grant Centers in each region and intends that the
revisions to the program to make it competitive do not reduce
the effectiveness of the overall program. The Managers also
recognize the importance of the collaborative nature of the Sun
Grant Centers and is requiring that applicants represent
consortia of universities with prior experience working
collaboratively to pursue the intent of the program. The
Managers recognize the importance of demonstrated experience in
working with multiple federal agencies and in awarding and
managing funding provided through competitive grants to land
grant institutions and institutions partnering with land grant
institutions. Accordingly, the Secretary is encouraged to
competitively select a single association of universities that
will implement the Sun Grant Program for the duration of this
farm bill authorization. This association of universities
should be made up of a university from each of the sun grant
regions and sub region that will serve as the Sun Grant Center
or Sub center for that region or sub region. In making the
competitive selection, the Secretary should consider giving
preference to an association of universities that has
demonstrated experience in managing regional competitive grant
programs for research and education programs that support the
development of bioenergy, biomass feedstocks, and biobased
products. Finally, the Managers recognize the value and
importance of committed use of peer review principles and other
research best practices in the selection, management, and
dissemination of research projects.
(49) Study and report on food deserts
The House bill repeals Section 7527. (Section 7519)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7517)
(50) Agricultural and rural transportation research and education
The House bill repeals Section 7529. (Section 7520)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7518)
Subtitle F--Miscellaneous Provisions
(51) Agreements with nonprofit organizations for National Arboretum
The House bill authorizes the Secretary to negotiate
agreements with nonprofit organizations that support the
purpose of the National Arboretum and use the proceeds of the
organizations towards operation and maintenance of the
facilities. In addition, a nonprofit organization that entered
into such agreement may recognize donors if such recognition is
approved by the Secretary. (Section 7601)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes the Secretary to
negotiate concessions and agreements for the National Arboretum
with nonprofit scientific or educational organizations and
nonprofit organizations that entered into a concession or
agreement to recognize donors. (Section 7602)
(52) Cotton Disease Research Report
The House bill requires the Secretary to submit to
Congress a Cotton Disease Research Report. (Section 7602)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7604)
(53) Acceptance of facility for Agricultural Research Service
The House bill authorizes the Secretary to allow a non-
Federal entity to construct a facility for use and on land
owned by the Agricultural Research Service under certain
conditions. (Section 7603)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(54) Technical Corrections
The House bill makes miscellaneous technical corrections.
(Section 7604)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 7605)
(55) Legitimacy of industrial hemp research
The House bill authorizes research using industrial hemp
at an institution of higher education if the growing or
cultivating of industrial hemp is allowed under the laws of the
State where the institution of higher education is located and
the research occurs. Industrial hemp is defined. (Section 7605)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes an institution of higher
education or State department of agriculture to grow or
cultivate industrial hemp for research purposes if the laws of
the State permit its growth and cultivation. (Section 7606)
(56) Foundation for food and agriculture research
The Senate amendment authorizes a foundation for food and
agriculture research, a new nonprofit corporation designed to
supplement USDA's basic and applied research activities. On
Oct. 1, 2013, of the funds of the Commodity Credit Corporation,
the Secretary shall transfer to the Foundation $200,000,000 to
remain available until expended. (Section 7601)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment authorizes a foundation for
food and agricultural research designed to supplement USDA's
basic and applied research activities and $200,000,000 of
Commodity Credit Corporation funding to the Foundation to
remain available until expended. (Section 7601)
The Managers recognize the significant need for
agricultural research and the challenge to find funding in the
current fiscal environment. As such the conference substitute
creates a new non-profit foundation, the Foundation for Food
and Agriculture Research, to leverage private funding, matched
with federal dollars, to support public agricultural research.
This approach will foster continued innovation in agricultural
research.
The increased productivity and boost in crop yields
experienced by American farmers can be attributed to research
investments made 30 to 50 years ago. Federal investment in
public agricultural research has been trending downward at a
time when the demands of a growing population require that
American agriculture research again take a leading role in
pushing forward food production. USDA, the National Academy of
Sciences, the National Science Foundation and agricultural
research stakeholders will play an integral role in
establishing the Foundation.
The Managers do not intend for the Foundation to be
duplicative of current funding or research efforts, but rather
to foster public-private partnerships among the agricultural
research community, including federal agencies, academia, non-
profit organizations, corporations and individual donors to
identify and prioritize the most pressing needs facing
agriculture. It is the Managers view that the Foundation will
complement the work of USDA basic and applied research
activities and further advance USDA's research mission.
Furthermore, the Managers do not intend in any way for the
Foundation's funding to offset or allow for a reduction in the
appropriated dollars that go to agricultural research.
(57) Agricultural and food law research, legal tools and information
The Senate amendment authorizes the Secretary, acting
through the National Agricultural Library, to support the
dissemination of agricultural and food law research, legal
tools and information by entering into cooperative agreements
with institutions of higher education. The Secretary may not
use more than $5,000,000 of the amounts made available to the
national Agricultural Library. (Section 7602)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment directs the Secretary, through
the National Agricultural Library, to support the dissemination
of agricultural and food law research, legal tools and
information by entering into cooperative agreements with
institutions of higher education and authorizes $5,000,000 in
appropriations for fiscal year 2014 and each year thereafter.
(Section 7603)
The Managers recognize that farms, ranches, and forests
in the United States are impacted by a complex and rapidly
evolving web of competition and international, Federal, State,
and local laws, including regulations. The 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 objective, scholarly, and neutral
sources.
Title VIII--Forestry
Subtitle A--Repeal of Certain Forestry Programs
(1) Watershed Forestry Assistance Program
The House bill repeals the Watershed Forestry Assistance
Program in the Cooperative Forestry Assistance Act of 1978,
effective on October 1, 2013. (Section 8002)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment eliminates the effective date.
(Section 8002)
(2) Expired Cooperative National Forest Products Marketing Program
The House bill repeals the Cooperative National Forest
Products Marketing Program in the Cooperative Forestry
Assistance Act of 1978 which has been expired. (Section 8003)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8003)
(3) Separate forest service decision making and appeals process
The House bill repeals Section 322 of the Department of
the Interior and Related Agencies Appropriations Act, 1993. It
prohibits application of Section 428 of the Consolidated
Appropriations Act, 2012 to any project or activity
implementing a land and resource management plan that is
categorically excluded from an EA or EIS under NEPA. (Section
8006)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8006)
This provision clarifies the intent of Congress regarding
administrative review of projects and activities implementing
land and resource management plants. This language came as a
result of a federal court decision in March 2012 that the
Forest Service must engage in this process for
noncontroversial, common sense actions that provide jobs,
public safety, community fire protection, and clean water. This
is not required of the Department of the Interior or any other
federal agency. This provision would return the agency to the
procedures that were in place prior to the 2012 court decision.
Subtitle B--Reauthorization of Cooperative Forestry Assistance Act of
1978 Programs
(4) State-wide assessment and strategies for forest resources
The House bill requires the State Forester or equivalent
State official in developing or updating the State-wide
assessment and strategy for forest resources to coordinate
with, when feasible, appropriate military installations.
(Section 8101)
The Senate amendment extends the authorization of
appropriations for the state-wide assessment and strategies for
forest resources through 2018.
The Conference substitute adopts the House provision with
an amendment. The amendment provides for the extension of the
authorization of appropriations for state-wide assessment and
strategies for forest resources that was in the Senate
amendment. (Section 8101)
The 2008 farm bill conference report included language
directing state foresters to perform statewide assessments of
forest lands within their borders to better understand how to
properly manage these resources. The first reports came back in
2010. The Managers considered these reports a success and
adopted the House provision that directs state foresters to
coordinate with military facilities within their borders when
developing future plans.
(5) Forest Legacy Program
The House bill eliminates the authorization for the
Forest Legacy Program of such sums as necessary and replaces it
with an authorization of appropriations of $55,000,000 for
fiscal years 2014 through 2018. (Section 8102)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(6) Community Forest and Open Space Conservation Program
The House bill eliminates the authorization for the
Community Forest and Open Space Conservation Program of such
sums as necessary and replaces it with an authorization of
appropriations of $1,500,000 for fiscal years 2014 through
2018. (Section 8103)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Subtitle C--Reauthorization of Other Forestry-Related Laws
(7) Office of International Forestry
The House bill authorizes appropriations of $6,000,000
for fiscal years 2014 through 2018 for the Office of
International Forestry. (Section 8202)
The Senate amendment extends authorization of
appropriations through fiscal year 2018. (Section 8202)
The Conference substitute adopts the Senate provision.
(Section 8202)
(8) Change in funding source for Healthy Forests Reserve Program
The House bill authorizes appropriations of $9,750,000
for fiscal years 2014 through 2018. Appropriated funds may be
used to carry out the Soil Conservation and Domestic Allotment
Act for land enrolled in the program. (Section 8203)
The Senate amendment is the same as the House. It defines
the term ``Acreage Owned by Indian Tribes'' for the purposes of
Section 502(e)(3). (Section 8205)
The Conference substitute adopts the Senate provision
with an amendment. The amendment increases the authorization
levels from $9,750,000 to $12,000,000. (Section 8203)
The Managers intend to clarify the definition of Indian-
owned acreage for the program managed by NCRS. Further, as a
result of the potential increase in participation in the
program, the Managers increased the authorization level.
(9) Stewardship end result contracting project authority
The House bill states that section 347 of the Department
of the Interior and Related Agencies Appropriations Act, 1999
is reauthorized through fiscal year 2018. It authorizes the
Secretary to consider a Stewardship Contract as a contract for
the sale of property. Further, it requires the Chief of the
Forest Service and the Director of Bureau of Land Management to
issue fire liability provisions for use in all contracts and
agreements under section 347. (Section 8204)
The Senate amendment repeals Section 347 of the
Department of the Interior and Related Agencies Appropriations
Act, 1999. It authorizes the Secretary to consider a
Stewardship Contract as a contract for the sale of property. It
further adds Stewardship End Result Contracting Projects to the
Healthy Forests Restoration Act of 2003, authorizing the Forest
Service and Bureau of Land Management to enter into stewardship
end-result contracting projects (Stewardship Contracts) for
services that achieve land management goals. The authorization
is permanent. (Section 8204)
The Conference substitute adopts the Senate provision
with an amendment. The amendment includes the House language
that requires the Chief of the Forest Service and the Director
of the Bureau of Land Management to issue fire liability
provisions for use in all contracts and agreements under
section 347. (Section 8205)
The Managers provide the Forest Service with a permanent
extension of stewardship contracting authority. This approach
to land management has proved to be effective nationwide since
it was first authorized in 1999 and extended in 2003.
Stewardship Contracting allows the Forest Service to conduct
important forest restoration work by allowing the value of wood
removed to help offset the cost of needed restoration
treatments, like forest thinning, introduction of prescribed
fire, and habitat improvements for a variety of species. The
Managers include in this extension, provisions that allow for
designation by prescription for the marking of timber under
this program. The Conference substitute also includes language
which provides the same fire liability provisions utilized
under the current timber sales program to be available for
Stewardship Contracts. The Managers do not intend for
Stewardship Contracting to replace, diminish, or adversely
impact the U.S. Forest Service's timber sales program.
The Managers expect the Chief to work with purchasers of
Forest Service timber to address concerns they have raised
about methods of selecting the winning bidders on Stewardship
Contracts, and to provide feedback to losing bidders to help
increase their understanding of the process to become more
effective in the future.
(10) Insect and disease infestation
The Senate amendment authorizes the designation of
treatment areas, as part of an insect and disease treatment
program, one or more subwatersheds in at least one National
Forest in each State that is experiencing an insect or disease
epidemic within 60 days after the date of enactment of this
Act. Additional areas may be designated as needed after the
initial 60 day period. The Secretary may carry out priority
projects on Federal land in designated subwatersheds to reduce
the risk or extent of, or increase the resilience to, insect or
disease infestation. Priority projects shall maximize the
retention of old-growth and large trees, as appropriate and to
the extent the trees promote stands resilient to insects and
disease. The Senate amendment authorizes appropriations of
$200,000,000 for fiscal years 2014 through 2018. (Section 8203)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment replaces the subwatershed size
treatment area with a landscape scale and includes a limited
categorical exclusion for projects smaller than 3,000 acres.
The program is authorized for 10 years through 2024. (Section
8204)
The outbreak of the pine bark beetle afflicting states
across the nation is a great concern to the Managers. To date,
an estimated 41 million acres have been affected across the
United States, creating potentially hazardous fuel loads in
several western states. The Managers agreement includes
provisions to provide the Forest Service with increased
flexibility to address this issue and work with partners to
mitigate the potential damage.
The Conference substitute recognizes that the current
system for managing national forests affected by historic
insect infestations has not been responsive to the speed and
widespread impact of the infestations. The final language
builds on current law familiar to all stakeholders, the Healthy
Forests Restoration Act, by targeting the law's application for
a ten-year period to insect- and disease-affected forests. It
appropriately focuses on landscape-scale restoration work and
protects old-growth and large trees to the extent their
retention promotes resilient stands in a given type of forest.
The final language also includes a Categorical Exclusion (CE)
under the National Environmental Policy Act that is subject to
several critical sideboards.
The most important limitation is that any projects
subject to a CE must be developed and implemented through a
collaborative process that is transparent, nonexclusive, and
includes multiple and diverse stakeholders. Collaborative
forest restoration partnerships have a proven record of
fostering the social license that is crucial to managing our
public lands appropriately. The Conference substitute
recognizes the success of forest collaboratives and encourages
their continued work across the country. Additional limitations
to use of the CE include that projects may be no larger than
3,000 acres; projects may only take place in the wildland-urban
interface or in forests facing a risk of fire greater than
their historical norm; no permanent roads may be constructed
and any temporary roads must be decommissioned within three
years; and the Forest Service must report to Congress each year
about its use of the CE.
The Mountain Pine Beetle Response Project (MPBR) in the
Black Hills National Forest can be used as a model for the type
and scale of projects that are to be conducted with these
provisions to keep pace with expanding insect infestations. The
MPBR Project encompasses approximately 248,000 acres of
National Forest System lands and includes approximately 122,000
acres of thinning or other measures aimed at reducing stand
density and hazardous fuels. The Managers expect that acres
covered by the projects are tailored to the local circumstances
depending on the size of the forest and scope of the
infestation. The authority in these provisions provides the
Forest Service with additional tools to replicate these types
of landscape scale projects across the country in coordination
with local stakeholders.
Subtitle D--National Forest Critical Area Response
(11) Definitions
The House bill defines the terms ``Critical Area'',
``National Forest System'', and ``Secretary'' for the purposes
of this title. (Section 8301)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(12) Designation of critical areas
The House bill provides for the designation of critical
areas within the National Forest System to address
deteriorating forest health conditions due to insect
infestation, drought, disease or storm damage and the future
risk of insect infestations or disease outbreaks through
preventative treatments. (Section 8302)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(13) Application of expedited procedures and activities of the Healthy
Forests Restoration Act of 2003 to critical areas
The House bill authorizes the application of Title I of
the Healthy Forests Restoration Act of 2003 to all Forest
Service projects and activities carried out in a critical area
and requires the same projects and activities be consistent
with the applicable land and resource management plan. However,
Sec. 322 of P.L. 102-381 will not apply to projects conducted
in accordance with this section, and in applying Title I, the
authority shall apply to the entire critical area and all
projects and activities of the Forest Service shall be
considered as authorized hazardous fuel reduction projects.
Certain smaller projects shall be considered an action
categorically excluded from the requirements of an
environmental assessment or an environmental impact statement
and exempt from section 105 of the Healthy Forests Restoration
Act of 2003. (Section 8303)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(14) Good neighbor authority
The House bill authorizes the Secretary to enter into
cooperative agreements or contracts with a state forester to
provide forest, rangeland, and watershed restoration,
management and protection services on National Forest System
land. (Section 8304)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. (Section 8206)
The Conference substitute includes language that allows
for the Secretary to enter into cooperative agreements with
state foresters nationwide to engage in management activity,
otherwise known as Good Neighbor Authority. This practice
allows for better coordination between federal and state
officials in promoting healthy state forests. The Managers note
the successful implementation of this program in Colorado and
Utah and recognize the benefit to extending this authority
nationwide. The Managers expect the Secretary to seek projects
which utilize the full range of contracting tools available to
accomplish the objectives of Good Neighbor Authority.
Subtitle E--Miscellaneous Provisions
(15) Forest service participation in ACES program
The House bill authorizes the Secretary to use funds from
conservation-related programs on National Forest lands to
utilize the Agriculture Conservation Experienced Services
Program to provide technical service on conservation-related
programs. (Section 8402)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8302)
The Managers are concerned about the increasing number of
retirements among Forest Service employees in recent years and
the loss of institutional knowledge as a result. The Conference
substitute includes language to allow the Forest Service to
hire retired employees under the Agriculture Conservation
Experienced Services (ACES) program. The Forest Service will
continue to see a large number of retirements in the coming
years. Allowing the Forest Service to participate in the ACES
program allows the agency to retain the institutional knowledge
acquired through the years by these senior employees.
(16) Green Science and Technology Transfer Research under Forest and
Rangeland Renewable Resources Research Act of 1978
The House bill includes as a priority science and
technology transfer through the Forest Products Lab to
demonstrate the beneficial characteristics of wood as a green
building material. It requires the Secretary to submit an
annual report describing the research conducted in furtherance
of the priority added above, the number of buildings the Forest
Service has built with wood and the investments made by the
Forest Service in green building wood promotion. (Section 8403)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(17) Extension of stewardship contract authority
The House bill authorizes designation by description and
designation by prescription as valid methods of designation for
timber sales. Both methods may be supervised by use of post-
harvest cruise, sample weight scaling or other methods.
(Section 8404)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8303)
(18) Reimbursement of fire funds
The House bill requires that the State seeking
reimbursement and the State providing reimbursement must each
have a mutual assistance agreement with the Forest Service or
an agency of the Department of the Interior. (Section 8405)
The Senate amendment requires that the State seeking
reimbursement and the State providing reimbursement must each
have a mutual assistance agreement with the Forest Service or
another Federal agency. (Section 8303)
The Conference substitute adopts the Senate provision.
(Section 8304)
(19) Ability of National Forest System lands to meet needs of local
wood producing facilities for raw materials
The House bill requires the Secretary to submit to
Congress a report regarding raw material needs of wood
producing facilities within the boundaries of each National
Forest System unit or within 100 miles of such boundaries and
the ability of each unit to meet the needs of such facilities,
including information on the volume of timber available, sold
and harvested from each unit. (Section 8406)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Although the Managers did not adopt the House provision
directing the Secretary to issue a report to Congress on its
ability to provide raw material to facilities within 100 miles
of a national forest, the Managers enourage the Forest Service
to engage with the sawmill owners who utilize material
harvested from National Forest System land. The Managers are
concerned that certain regions within the National Forest
System are not meeting the timber production target laid out in
their management plans. The Managers note that many wood
producing facilities are dependent on material produced on
National Forest land and that all 10 regions of the National
Forest System should strive to meet their target where
appropriate.
(20) Report on the National Forest System roads
The House bill requires the Secretary to submit to
Congress a report regarding National Forest System roads and
trails. (Section 8407)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Although the Managers did not adopt the House provision
which required the Secretary to issue a report to Congress on
the state of the National Forest System roads, the Managers
believe this is an important issue and encourage the Forest
Service to prioritize the maintenance of currently used roads.
(21) Forest Service Large Airtanker and Aerial Asset Firefighting
Recapitalization Pilot Program
The House bill authorizes the Secretary to establish a
large airtanker and aerial asset lease program. (Section 8408)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8305)
The 2012 and 2013 wildfire seasons have been some of the
worst on record. The devastating wildfires are important
reminders that the Forest Service's current available large
airtanker fleet is vastly inadequate to meet our expected
firefighting needs now or in the coming years. The U.S. Forest
Service's Large Airtanker Modernization Strategy, released in
2012, recommended a ``next generation'' aerial solution and
specifically stated that ``[airtankers] are important to the
Federal, state, and local wild land firefighting missions of
protecting communities and natural resources from wildfires and
to successfully managing wildfires in this country.'' The
report also stated that ``the current fleet of large airtankers
is old, with an average of age of more than 50 years. . . With
rising age, the cost of maintaining large airtankers is rapidly
increasing, as are the risks associated with using them.''
Support for implementing the modernization strategy is urgently
needed before the Forest Service is unable to adequately
respond to future fires. The Managers strongly support the
establishment of a large airtanker and aerial asset lease
program to support the Forest Service's vital modernization
strategy for its firefighting large airtanker fleet.
(22) Land conveyance, Jefferson National Forest in Wise County,
Virginia
The House bill authorizes the Secretary to convey upon
payment all right, title and interest of the U.S. in and to a
parcel of National Forest System land in the Jefferson National
Forest in Wise County, Virginia. (Section 8409)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 8306)
(23) Categorical exclusion for forest projects in response to
emergencies
The House bill states that any forest project carried out
to clean up or restore damaged National Forest System land
during a two-year period following the date of a presidential
disaster or emergency declaration shall be categorically
excluded from an environmental assessment or environmental
impact statement. (Section 8410)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Title IX--Energy
(1) Definitions
The House bill modifies the definition of ``biobased
product'' to explicitly include forestry materials and forest
products that meet biobased content requirements,
notwithstanding the market share the product holds, the age of
the product, or whether the market for the product is new or
emerging. (Section 9001(1)) The bill also defines ``forest
product'' to ensure that mature forest products are treated in
the same manner as other biobased products. (Section 9001(3))
Additionally, the bill defines ``renewable energy system'' to
limit the eligible projects in the Rural Energy for America
Program. (Section 9001(4))
The Senate amendment defines ``renewable chemical'' as a
monomer, polymer, plastic, formulated product, or chemical
substance produced from renewable biomass. (Section 9002(3))
The Conference substitute adopts the House provision with
an amendment. The amendment includes the Senate definition of
``renewable chemical''. The modification of the definition of
``biobased product'' is moved to Section 9002. (Section 9001)
(2) Biobased Markets
The House bill extends current law through FY2018. No
mandatory funding is authorized. The bill authorizes to be
appropriated $2 million annually for FY2014-FY2018. (Section
9002(h))
The Senate amendment establishes a targeted biobased-only
procurement requirement for federal agencies. The amendment
limits reporting on the availability, relative price,
performance and environmental and public health benefits of
biobased materials subject to the availability of data. It adds
reporting requirements of quantities and types of biobased
products purchased by procuring federal agencies and a focus on
biobased content requirements (explicitly including forest
products). The amendment mandates (within one year of
enactment) designation of intermediate ingredients or
feedstocks and assembled and finished biobased products
according to guidelines. (Section 9002(a)(1)) Additionally, the
amendment adds auditing and compliance activities to ensure
proper use of biobased labeling. (Section 9002(a)(2)) It adds
an outreach, education, and promotion component (with annual
reports) to increase awareness of biobased products. (Section
9002(a)(4)) It also mandates a study (and report) by USDA to
assess the economic impact of the biobased product industry,
due 180 days after enactment. It encourages coordination,
review and approval (with appropriate technical assistance) of
forest-related biobased products. (Section 9002(a)(5)) The
amendment also authorizes mandatory funding of $3 million
annually for FY2014-FY2018. Lastly, it authorizes to be
appropriated $2 million annually for FY2014-FY2018. (Section
9002(a)(7))
The Conference substitute adopts the Senate provision
with an amendment. The amendment removes the outreach,
education and promotion component and provides that the
economic impact study be completed within one year of
enactment. (Section 9002)
The Conference substitute reauthorizes the BioPreferred
Program and the Federal Government Procurement Preference
Program with modifications to include reporting of biobased
purchases by the federal agencies, as well as providing for
auditing and enforcement of biobased purchasing activities. The
Conference substitute also clarifies that all forest products
are eligible for inclusion in the BioPreferred Program and the
Federal Government Procurement Program if they meet biobased
content requirements and the innovation standards for the
program as outlined in Section 9002(a)(1)(B)(i)(III)(vi).
Finally, the Conference substitute provides $3 million in
mandatory funding each fiscal year.
The Managers are cognizant of concerns that the USDA
Biobased Markets Program has excluded most forest products.
This exclusion, created in USDA rulemaking, has effectively
made many forest products ineligible for the program.
Therefore, Sections 9001(2) and 9002(a)(1)(B)(i)(III) are
intended to clarify that all forest products, regardless of the
market share the product holds, the age of the product, or
whether the product's market is new or emerging, are eligible
for the procurement and labeling program as long as the product
meets biobased content requirements and the innovation
standards for the program as outlined in Section
9002(a)(1)(B)(i)(III). It is the Managers' intention that all
products in the program use innovative approaches in the
growing, harvesting, sourcing, procuring, processing,
manufacturing, or application of the biobased product.
The Managers believe that most forest products, including
products with recovered fiber content, apply innovative
approaches in the growing, harvesting, sourcing, procuring, and
manufacturing of the product. Innovative approaches for forest
products include, but are not limited to, sourcing fiber from
non-controversial, responsible or certified sources identified
in the ASTM 7612-10 standard; using an environmental product
declaration that meets the ISO 14025:2006 standard; improving
wood, recovered fiber and virgin fiber processing technologies;
or modifying manufacturing facilities to make them more energy
efficient and enhance their ability to use renewable energy
sources. The Managers also believe innovative approaches should
capture any innovation in the application of the forest
product. Such innovative approaches should include the use of
raw forestry materials, processed forestry materials, as well
as recovered fiber. The Managers direct USDA to work through
the USDA Forest Products Laboratory to provide technical
assistance as necessary to forest product applicants to ensure
that forest products are included in the program.
Finally, the Managers recognize the tremendous
opportunity that exists for Biobased products to be used in
food packaging and the food service industry. Products made
from wheat straw can play an important role in this effort, and
the Managers expect USDA to continue to work with companies
bringing these types of products to market under the
BioPreferred label.
(3) Biorefinery Assistance
The House bill eliminates grant funding to ensure that
program funds are spent more efficiently through loan
guarantees. (Section 9003(a)) Additionally, no mandatory
funding is authorized. The bill authorizes to be appropriated
$75 million annually for FY2014-FY2018. (Section 9003(b))
The Senate amendment renames the program as the
Biorefinery, Renewable Chemical, and Biobased Product
Manufacturing Assistance Program. It extends and expands the
program to include renewable chemical and biobased product
manufacturing (defined as development, construction, and
retrofitting of technologically new commercial-scale processing
and manufacturing equipment and required facilities used to
convert renewable chemicals and other biobased outputs into
commercial-scale end products). It extends grant and loan
guarantee availability to the development and construction of
renewable chemical and biobased product manufacturing
facilities. (Section 9003(a)) The amendment authorizes
mandatory funding of $100 million for FY2014 and $58 million
each for FY2015-FY2016, but not more than $25 million of
FY2014-FY2015 may be used to promote biobased product
manufacturing. It authorizes to be appropriated $150 million
annually for FY2014-FY2018. (Section 9003(b))
The Conference substitute adopts the Senate provision
with an amendment. The amendment eliminates grant funding,
directs the Secretary to ensure that there is diversity in the
types of projects approved, and caps the amount of funds used
for loan guarantees to promote biobased product manufacturing
at 15% of the total available mandatory funds. Mandatory
funding of $100,000,000 is provided for FY2014, $50,000,000 for
each of FY2015 and FY2016 and an authorization of $75,000,000
is provided for each of fiscal years 2014 through 2018.
(Section 9003)
(4) Repowering Assistance Program
The House bill extends current law through FY2018.
Additionally, no mandatory funding is authorized. It authorizes
to be appropriated $10 million annually for FY2014-FY2018.
(Section 9004)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment provides mandatory funding of
$12,000,000 in fiscal year 2014, available until expended.
(Section 9004)
(5) Bioenergy Program for Advanced Biofuels
The House bill extends the program through FY2018.
Additionally, no mandatory funding is authorized. The bill
authorizes to be appropriated $50 million annually for FY2014-
FY2018. (Section 9005)
The Senate amendment extends the program through FY2018.
Additionally, no mandatory funding is authorized. It authorizes
to be appropriated $20 million annually for FY2014-FY2018.
(Section 9004)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides mandatory funding of
$15,000,000 for each of fiscal years 2014 through 2018.
(Section 9005)
(6) Biodiesel Fuel Education Program
The House bill extends the Biodiesel Fuel Education
Program through FY2018. Additionally, no mandatory funding is
authorized. The bill authorizes to be appropriated $2 million
annually for FY2014-FY2018.
The Senate amendment extends the Biodiesel Fuel Education
Program through FY2018. The amendment authorizes mandatory
funding of $1 million annually for FY2014-FY2018. It authorizes
to be appropriated $1 million annually for FY2014-FY2018.
The Conference substitute adopts the Senate provision.
(Section 9006)
(7) Rural Energy for America Program
The House bill creates a three-tiered application process
for loan guarantees and grants. (Section 9007(a)) Additionally,
no mandatory funding is authorized. The bill authorizes to be
appropriated $45 million annually for FY 2014-FY2018. (Section
9007(b))
The Senate amendment creates a three-tiered application
process with language similar to the House provision. The
amendment adds a council (as defined in section 1528 of the
Agriculture and Food Act of 1981) as an eligible entity, and
adds ``such as for agricultural and associated residential
purposes'' to clarify the type of renewable energy systems that
may be purchased. It repeals the use of REAP funds for
feasibility studies and limits grants to the lesser of $500,000
or 25% of the cost of the RES or EEI activity. (Section
9006(a)) The amendment authorizes mandatory funding of $68.2
million annually for FY2014-FY2018. It authorizes to be
appropriated $20 million annually for FY2014-FY2018. (Section
9006(b))
The Conference substitute adopts the Senate provision
with an amendment. The amendment strikes the provision
clarifying the type of renewable energy systems that may be
purchased and strikes the $500,000 cap on grants for renewable
energy systems and energy efficiency improvements. Mandatory
funding of $50,000,000 is provided for fiscal year 2014 and
each fiscal year thereafter. (Section 9007)
The Managers encourage the Department to continue to
support renewable and energy efficiency projects to help
farmers and rural small businesses cut costs. The Managers also
encourage the Department to consider and fund a diverse range
of projects.
The Managers clarify that the intent of the program has
been to promote energy efficiency and the production of
renewable energy, rather than energy delivery. Therefore,
renewable fuel blender pumps or other mechanisms to dispense
fuel are not a use of the program consistent with this purpose.
(8) Biomass Research and Development
The House bill extends BRDI through FY2018. Additionally,
no mandatory funding is authorized. The bill authorizes to be
appropriated $20 million annually for FY2014-FY2018. (Section
9008)
The Senate amendment extends BRDI through FY2018. The
amendment authorizes mandatory funding of $26 million annually
for FY2014-FY2018. It authorizes to be appropriated $30 million
annually for FY2014-FY2018. (Section 9007)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides mandatory funding of
$3,000,000 for each of fiscal years 2014 through 2017 and
discretionary funding of $20,000,000 for each of fiscal years
2014 through 2018. (Section 9008)
The purpose of the Biomass Research and Development
Initiative (BRDI) is to promote research and development
regarding the production of biofuels and biobased products. The
Managers encourage the Department to support research,
development and demonstration efforts focused on reducing the
costs of producing sugars from cellulosic biomass. The Managers
also encourage the Department to prioritize and focus
investment in projects that use pre-commercialization processes
and methods to advance product development.
The Managers are aware of a number of advanced
manufacturing facilities around the country that can play an
active part in the development phase of biofuels and biobased
products and urge the Secretary to encourage their involvement
in BRDI projects.
(9) Biomass Crop Assistance Program
The House bill eliminates collection, harvest, storage,
and transportation payments. The bill adds ``existing project
areas that have received funding'' to the factors the Secretary
shall consider when selecting project areas. Additionally, no
mandatory funding is authorized. The bill authorizes to be
appropriated $75 million annually for FY2014-FY2018. (Section
9010)
The Senate amendment rewrites Sec. 9011 of Farm Security
and Rural Investment Act of 2002 including the following
revisions: changes enrolled land eligibility; includes residue
from crops receiving Title I payments as eligible material, but
extends exclusion to any whole grain from a Title I crop, as
well as bagasse and algae. One-time establishment payments are
limited to no more than 50% of cost of establishment, not to
exceed $500 per acre ($750/acre for socially disadvantaged
farmers or ranchers). CHST matching payments may not exceed $20
per dry ton but are available for a four year period. Not later
than four years after enactment, USDA shall submit a report on
best practice data and information gathered from participants.
It authorizes mandatory funding of $38.6 million annually for
FY2014-FY2018. Not less than 10% or more than 50% of funding
may be used for CHST. (Section 9011)
The Conference substitute adopts the Senate provision
with an amendment. The amendment provides that CHST payments
are available for a period of two years and provides that
funding under the subsection shall be available for technical
assistance. The amendment provides mandatory funding of
$25,000,000 for each of fiscal years 2014 through 2018.
(Section 9010)
(10) Forest Biomass for Energy
The Senate amendment repeals the program. (Section 9010)
The House bill has no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 9011)
(11) Community Wood Energy Program
The House bill extends the Community Wood Energy Program
through FY2018. The bill authorizes to be appropriated $2
million annually for FY2014-FY2018. (Section 9011)
The Senate amendment defines ``Biomass Consumer
Cooperative''. The amendment authorizes grants of up to $50,000
to be made to establish or expand biomass consumer cooperatives
that will provide consumers with services or discounts relating
to the purchase of biomass heating systems or products
(including their delivery and storage). Any biomass consumer
cooperative that receives a grant must match at least the
equivalent of 50% of the funds toward the establishment or
expansion of a biomass consumer cooperative. (Section 9011(a)-
(c)) It authorizes to be appropriated $5 million annually for
FY2014-FY2018. (Section 9011(d))
The Conference substitute adopts the Senate provision.
(Section 9012)
(12) Biofuels Infrastructure Study
The House bill repeals the study. (Section 9012)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision.
(Section 9013)
(13) Renewable Fertilizer Study
The House bill repeals the study. (Section 9013)
The Senate amendment repeals the study. (Section 9012)
The Conference substitute adopts the House provision.
(Section 9014)
(14) Energy Efficiency Report for USDA Facilities
The House bill requires USDA to submit a report to the
House and Senate Agriculture Committees on energy use and
energy efficiency projects at USDA facilities within 180 days.
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision
(Section 9015)
Title X--Horticulture
(1) Farmers' Market and Local Food Promotion Program
The House bill amends section 6 of the Farmer-to-Consumer
Direct Marketing Act of 1976 to authorize local food promotion
and assist in the development of local food business
enterprises. Program purposes are amended to include the
increase of domestic consumption and consumer access to locally
and regionally produced agricultural products. The purposes are
further amended to include local and regional food business
enterprises that process, distribute, aggregate, and store
locally or regionally produced food products. Eligible entities
receiving a grant from this program must provide a 25 percent
match and may not use the grant towards a building or
structure. The section authorizes $30,000,000 of Commodity
Credit Corporation funds for fiscal years 2014 through 2018 and
$10,000,000 in appropriated funds for fiscal years 2014 through
2018. It requires 50 percent of the funds made available to
carry out the program in a fiscal year be used towards domestic
farmers' markets, roadside stands, community-supported
agriculture programs, agritourism activities and other direct
producer-to-consumer market opportunities and the other 50
percent to be used towards local and regional food business
enterprises. The section further limits administrative expenses
to not more than 3 percent. (Section 10003)
The Senate amendment amends section 6 of the Farmer-to-
Consumer Direct marketing Act of 1976 is amended to authorize
local food promotion and local food capacity development. The
program purposes are amended to include the increase of
domestic consumption and consumer access to locally and
regionally produced agricultural products. This purpose is
authorized to be accomplished by developing, improving,
expanding and providing outreach, training and technical
assistance. Program purposes are further amended to include
local and regional food enterprises that are not direct
producer-to-consumer markets but process, distribute,
aggregate, store and market locally or regionally produced food
products. The section authorizes $20,000,000 of Commodity
Credit Corporation funds for fiscal years 2014 through 2018 and
$20,000,000 of appropriated funds for fiscal years 2014 through
2018. It limits administrative expenses to not more than 10
percent. The section further authorizes priorities for grant
applications that benefit underserved communities, develop
market opportunities for small and mid-sized farm and ranch
operations and include a strategic plan to maximize the use of
fund to build capacity for local and regional food systems in a
community. (Section 10003)
The Conference substitute adopts the House provision with
amendment. The amendment includes the Senate language on the
purposes of the program as well as food enterprises that are
not direct-to-consumer markets. The amendment sets the
limitation of administrative expenses at 4 percent. It further
includes the Senate language on giving priority to applications
that include projects that benefit underserved communities.
(Section 10003)
The Managers do not intend for this language to restrict
resources for other key uses such as cold storage or equipment
including mobile processing units or shelf stable packing
activities.
(2) Organic Agriculture
The House bill reauthorizes the organic production and
market data initiative authorization of appropriations for
fiscal years 2014 through 2018, amends the Organic Foods
Production Act to authorize the Secretary to modernize database
and technology systems of the National Organic Program (NOP)
and authorizes appropriations of $11,000,000 for fiscal years
2014 through 2018 for the same. The House bill also repeals the
National Organic Certification Cost-Share Program. In addition,
section 501 of the Federal Agriculture Improvement and Reform
Act of 1996 is amended to exempt certified organic products
from promotion order assessments regardless of whether a person
also handles conventional products and authorize an organic
commodity promotion order and section 513(1) of the Commodity
Promotion, Research, and Information Act of 1996 is amended to
add organic products as a class to the definition of
``agricultural commodity''. (Section 10004)
The Senate amendment reauthorizes the organic production
and market data initiative authorization of appropriations for
fiscal years 2014 through 2018, and authorizes $5,000,000 in
mandatory monies to remain available until expended and an
annual report to Congress regarding implementation of the
program and additional data needs as well as a description of
how data collection agencies are coordinating with data user
agencies to ensure data collected can be used by data users,
including RMA to offer price elections for all organic crops.
The amendment also authorizes the Secretary to modernize
database and technology systems of the NOP, provides an
authorization of appropriations of $15,000,000 for fiscal years
2014 through 2018 as well as $5,000,000 in mandatory monies
towards modernization. Section 11034(b)(1)(A) of Senate
Amendment requires 50 percent of the funds to go to organic
certification. In addition, section 501 of the Federal
Agriculture Improvement and Reform Act of 1996 is amended to
exempt certified organic products from promotion order
assessments regardless of whether a person also handles
conventional products and authorize an organic commodity
promotion order and section 513(1) of the Commodity Promotion,
Research, and Information Act of 1996 is amended to add organic
products as a class to the definition of ``agricultural
commodity''. (Section 10005)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes an Organic Production
and Market Data Initiative annual report to Congress, including
a description how data collection and user agencies are
coordinating to ensure data can be utilized, and reauthorizes
$5,000,000 of Commodity Credit Corporation funds for this
initiative and the authorization of appropriations through
fiscal year 2018. The amendment authorizes annual
appropriations of $15,000,000 for fiscal years 2014 through
2018 for the National Organic Program and $5,000,000 of
Commodity Credit Corporation funds for modernization and
technology upgrades. The National Organic Certification Cost
Share Program is reauthorized with $11,500,000 of Commodity
Credit Corporation funds for each fiscal year 2014 through
2018, to remain available until expended. The amendment also
authorizes an exemption of certified organic products from
promotion order assessments and an organic commodity promotion
order. (Section 10004)
In the Conference substitute, research and promotion
programs or ``checkoffs'' occupy a unique place within the
broad range of programs overseen by USDA's Agricultural
Marketing Service (AMS). One distinctive attribute of these
programs is their structure, under which the message of the
promotional campaign undertaken is effectively controlled by
the Federal Government itself. Johanns v. Livestock Marketing
Ass'n, 544 U.S. 550 (2005).
The organic checkoff program as agreed to by the Managers
would differ from existing checkoffs, which are specific to a
particular commodity. For the first time, a checkoff program is
not solely commodity-specific, but could be established on the
basis of a specific set of production and processing practices.
The Commodity Promotion, Research and Information Act of
1996, under which this provision is established, prohibits any
advertising that may be disparaging to another commodity. As
with any time a new checkoff is formed, a new potential for
disparagement of all types of products arises. As with all
checkoff programs, the Managers remain concerned about the
potential for disparagement of other commodities, production
and processing methods for the same commodity, competitors,
processes, and products under this new authority.
Should an organic checkoff program be developed and
approved, the Managers strongly encourage USDA AMS to review
and revise, as appropriate, the November 4, 2010, ``Guidelines
for AMS Oversight of Commodity Research and Promotion
Programs'' to ensure these guidelines address potential
disparagement in both commodity and process based checkoff
programs.
(3) Organic Enforcement
The House bill authorizes recordkeeping requirements and
investigative powers to the Secretary as well as suspension and
revocation of an organic certification of a producer, handler
or the accreditation of a certifying agent. (Section 10005)
The Senate amendment authorizes recordkeeping
requirements and investigative powers to the Secretary as well
as the stop sale of an agricultural product and revocation of
an organic certification of a producer, handler or the
accreditation of a certifying agent. (Section 10005)
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes investigative powers to
the Secretary and recordkeeping requirements for persons who
sell, label or represent agricultural products as produced or
handled using organic methods. Refusal to provide accurate
information is made unlawful and a violation of the Organic
Foods Production Act. Information shall be made public in a
manner that ensures confidentiality. (Section 10005)
(4) Food Safety Education Initiatives
The House bill amends Section 10105 of the Food,
Conservation and Energy Act of 2008 to authorize the education
of farm workers and education regarding additional food safety
practices and contamination. It reauthorizes appropriations for
fiscal years through 2018. (Section 10006)
The Senate amendment reauthorizes appropriations for
fiscal years through 2018. (Section 10006)
The Conference substitute adopts the Senate provision.
(Section10006)
(5) Specialty Crop Block Grants
The House bill reauthorizes section 101 of the Specialty
Crops Competitiveness Act of 2004 through fiscal year 2018. The
section provides that the amount of grants to the States be
based on value production and acreage. It further amends
eligibility requirements to include an application that
contains an assurance that any grant funds for equipment or
capital-related research costs will be supplemented by State
funds at not less than 50 percent during the fiscal year and
completely replaced by State funds after the fiscal year is
over. The House section requires the Secretary to issue
guidance for the purpose of making grants for projects
involving food safety, plant pests and disease, research and
crop-specific projects. It makes certain administrative
requirements including an authorization of multistate projects.
Of the funds of the Commodity Credit Corporation, $72,500,000
for fiscal years 2014 through 2017 and $85,000,000 for fiscal
year 2018 is authorized. (Section 10007)
The Senate amendment is similar to the House language.
However, it requires the Secretary to issue guidance for the
purpose of making grants for projects involving food safety,
plant pests and disease and crop-specific projects. Of the
funds of the Commodity Credit Corporation, $70,000,000 for
fiscal year 2014 and each fiscal year thereafter is authorized.
(Section 10008)
The Conference substitute adopts the House provision with
amendment. The amendment eliminates the House language on the
State supplement for equipment or capital-related research
costs. The amendment further established the mandatory funding
level for fiscal year 2018 and each of the fiscal years
thereafter. (Section 10010)
The Managers recognize the difficulty in coordinating and
funding multi-state projects within the block grant program,
and the Managers expect the USDA to issue guidance and work
with states in making grants available for such projects. These
multi-state projects may include food safety, research, plant
pest and disease, and crop specific projects. These projects
have the ability to link growers across state lines and promote
much needed collaborative research. The Managers also encourage
the Department to work with states to allow for funding for
priority research objectives that are supported by the states
and that comply with the purposes of the Specialty Crops
Competitiveness Act.
The Managers believe that many specialty crop growers
benefit from the programs dedicated to the production and
marketing of specialty crops and products derived from them.
Throughout this legislation, the Managers have sought to
bolster support for the specialty crop sector, but recognize
that some specialty crop products continue to have production
and marketing concerns outside of the policies specifically
addressed in this legislation. One such specialty crop product
is olive oil. In addition to the challenges associated with the
production of an agriculture commodity, olive growers and olive
oil processors face additional concerns related to trade and
product standards of identity. With reference to international
trade, tariff disparities pose a significant barrier to our
export potential.
Regarding standards, the International Olive Council, an
intergovernmental organization under the auspices of the United
Nations, has traditionally set standards for olive oil
throughout the world. USDA standards for olive oil closely
match those of the IOC, even though the United States is not an
IOC member.
However, testing standards continue to be an area of
dispute due to differences in naturally occurring compounds,
rapid chemical decomposition in olive oil, challenges related
to sensory testing, and disagreement over what constitutes
adulteration. Because of the difficulty in establishing an
enforceable national standard of identity, there is potential
for consumer confusion in cases where blending of oils and
lesser quality oils into extra virgin olive oil is alleged to
have occurred. In fact, Connecticut, New York, and Oregon have
recently enacted olive oil grade standards to address consumer
concerns.
A recent U.S. International Trade Commission report,
``Olive Oil: Conditions of Competition between U.S. and Major
Foreign Supplier Industries (Investigation No. 332-537),''
issued September 12, 2013, at the behest of the U.S. House of
Representatives Committee on Ways and Means documents some of
these concerns.
The Commission's staff interviewed U.S. olive oil
importers, European olive oil producers and exporters, U.S.
olive growers and processors, government officials and others
involved in the world olive oil industry. In the U.S. the total
value of domestic and imported olive oil exceeds $1 billion and
at the retail level the value is in excess of $5 billion. The
report provided evidence of different olive oil standards in
the U.S. and in foreign markets, which adds to the confusion.
Highlights from the report point indicate that:
Current international standards for extra virgin
olive oil allow a wide range of oil qualities to be
marketed as extra virgin. In addition, the standards
are widely unenforced. Mandatory testing with penalties
for noncompliance exists only in Canada and the
European Union. However, testing in the EU is only
mandatory for a very small share of production (0.1
percent). Broad and unforced standards lead to
adulterated and mislabeled products, weakening the
competitiveness of high-quality producers, such as
those in the United States, who try to differentiate
their product based on quality.
Olive oil consumption has risen due to a recent focus on
the benefits of a healthy diet, and as a result, the olive oil
industry has great potential for our nation's farmers. However,
barriers remain for domestic production. Many consumers also
make purchasing decisions based on price. The Managers
acknowledge that additional testing procedures could have an
effect on olive oil importers and consumers.
The Managers urge the U.S. Department of Agriculture,
U.S. Trade Representative and the U.S. Food and Drug
Administration to study the U.S. International Trade Commission
report and take action to remove the obstacles that are
preventing the U.S. olive oil industry from reaching its
potential. The Managers encourage USDA to collaborate with
industry officials to determine if a marketing order for olive
oil would effectively address concerns, benefit the U.S.
consumer, and protect domestic growers and importers.
The Managers expect the Secretary to enforce the
regulations contained in 7 CFR Part 46.44, Good Delivery
Standards for Lettuce. The Managers are particularly concerned
about contracts and invoices that use disclaimers to exempt
product from the condition standards for damages due to
bruising and discoloration following bruising. The Managers
expect the Secretary to investigate any contracts or invoices
that violate standards and leave perishable product receivers
no recourse for damages beyond the Good Delivery Standards for
Lettuce.
Another important issue to the specialty crop industry is
the challenges surrounding a federal standard of identity for
honey.
The conference substitute requires the Secretary to
consult with honey industry stakeholders, including the
American Honey Producers Association, the American Beekeeping
Federation, the National Honey Packers and Dealers Association,
the Sioux Honey Association, and the Western States Honey
Packers and Dealers Association, on a report describing the
contents of a new federal standard of identity for honey. The
honey industry is currently faced with a number of major
challenges, including the dilution of honey with increased
quantities of other substances as well as the addition or
substitution of substances in order to mask dilution. The
subsection requires that this report be submitted to the
Commissioner of the Food and Drug Administration (FDA) within
180 days of enactment.
A citizens' petition was filed with the FDA in March
2006, which represents the honey industry's previous effort to
develop a federal honey standard of identity. Since 2006, a
number of states have enacted differing honey standards raising
concerns about inconsistencies, the flow of commerce within the
honey industry, confusion in the market place and unanticipated
legal challenges. The honey industry is now undertaking efforts
to develop a consensus federal standard of identity for
consideration in the Secretary's report to the FDA.
(6) Department of Agriculture Consultation Regarding Enforcement of
Certain Labor Law Provisions
The House bill Requires the Secretary of Agriculture to
consult with the Secretary of Labor regarding the restraining
of shipments of agriculture commodities or the confiscation of
such commodities by the Department of Labor for actual or
suspected labor law violations to consider the perishable
nature of such commodities, impact on economic viability of
farming operations and the competitiveness of specialty crops
through the Specialty Crop Block Grant Program. (Section 10008)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment requires the consultation between
the Secretaries of Agriculture and Labor regarding the
restraining of shipments or confiscation of agriculture
commodities by the DoL for labor law violations as well as a
report to Congress describing the number of instances that the
DoL has contacted a purchaser of perishable agricultural
commodities to notify them of an investigation or pending
enforcement action against a producer from whom the purchaser
bought such commodities. (Sec. 10011)
(7) Bulk Shipment of Apples to Canada
The House bill amends Section 4 of the Export Apple Act
to allow apples shipped to Canada in bulk bins without
complying with the Act. It requires the Secretary to issue
regulations to carry out this provision. (Section 10010)
The Senate amendment provides that the Secretary of
Agriculture has no authority to inspect apples in bulk bins
prior to export in Canada. (Section 10011)
The Conference substitute adopts the House provision with
amendment. The amendment clarifies that the section applies to
apples shipped in any bulk container and is not limited to bulk
bins. (Section 10009)
(8) Consolidation of Plant Pest and Disease Management and Disaster
Prevention Programs
The House bill relocates legislative language authorizing
the National Clean Plant Network to the Plant Protection Act,
authorizes funds of the Commodity Credit Corporation,
$62,500,000 for fiscal years 2014 through 2017 and $75,000,000
for fiscal year 2018, including $5,000,000 of those funds for
the Clean Plant Network, and provides technical assistance
shall not be considered an allotment or fund transfer from the
CCC for purposes of the limit on expenditures for technical
assistance. (Section 10011)
The Senate amendment provides relocates legislative
language authorizing the National Clean Plant Network,
authorizes funds of the Commodity Credit Corporation,
$60,000,000 for fiscal years 2014 through 2017 and $65,000,000
for fiscal year 2018, and provides technical assistance shall
not be considered an allotment or fund transfer from the CCC
for purposes of the limit on expenditures for technical
assistance. (Section 10007)
The Conference substitute adopts the House provision with
an amendment. The amendment relocates the authorization of the
National Clean Plant Network, authorizes $62,500,000 for fiscal
years 2014 through 2017 and $75,000,000 for fiscal year 2018
and each fiscal year thereafter of Commodity Credit Corporation
funds for Plant Pest and Disease Management and Disaster
Prevention, including $5,000,000 of such funds for the National
Clean Plant Network, and limits indirect costs for cooperative
agreements. The amendment also prohibits CCC funds used for
technical assistance under this title to be considered an
allotment or fund transfer from the CCC for the purpose of the
limit on expenditures for technical assistance. (Sections 10007
and 10017)
The Managers have combined this program with the Pest and
Disease program and increased baseline funding for both to
ensure the continued availability of funding for the important
work of the National Clean Plant Network. The Conference
substitute sets a funding floor of $5 million per year to the
National Clean Plant Networks but further encourages the
Secretary to provide from within the overall allocation under
this section additional funds if deemed necessary. These funds
may be provided to the Network without regard to the process
for distributing funds to address the other provisions of
Section 420 of the Plant Protection Act. The Managers recognize
that Disease Management and Disaster Prevention Programs as
previously authorized in the Food, Conservation, and Energy Act
of 2008 includes imminent pressing and persistent threats from
pests and disease, such as Citrus Greening, to agriculture
production.
The Managers recognize the importance of the Federal
government, specifically the USDA, developing and maintaining
the highest technological capability of identifying plant pests
and invasive species. Further, the Managers believe that the
advanced technological capabilities acquired through
development of plant pest and disease detection technologies
should facilitate the development of a coordinated, interagency
response plan for the federal government to effectively
mitigate plant pests and disease. The Managers encourage USDA
to take the appropriate steps to facilitate information and
technology sharing with other appropriate agencies of the
Federal government involved in managing invasive pests such as
Department of the Interior, Environmental Protection Agency,
U.S. Customs and Border Protection, U.S. Coast Guard and the
U.S. Army Corps of Engineers.
(9) Modification Cancellation, or Suspension on Basis of a Biological
Opinion
The House bill provides that except in the case of a
voluntary request from a registrant under section 3 of the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136a), a registration may be modified, canceled or suspended on
the basis of the implementation of a Biological Opinion issued
by the NMFS or the USFWS prior to the completion of the
National Academy of Sciences study commissioned by the
Administrator of the EPA or Jan. 1, 2015, whichever is earlier,
only if the action is taken pursuant to section 6 of the Act
and the Biological Opinion complies with the recommendations
contained in the study. The study shall include at minimum: (1)
a formal, independent, and external peer review, consistent
with OMB policies of each Biological Opinion, (2) an assessment
of economic impacts of measures or alternatives recommended in
each Biological Opinion, (3) an examination of specific
scientific and procedural questions and issues pertaining to
economic feasibility contained in a June 23, 2011 letter sent
to the Administrator and other Federal officials from Members
of Congress. (Section 10012)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes two reports to Congress
that describe approaches and actions taken by the EPA, the US
Fish and Wildlife Service, and the National Marine Fisheries
Service to implement recommendations of the report, ``Assessing
Risks to Endangered and Threatened Species from Pesticides'',
to ensure public participation and transparency during such
implementation and to minimize delays in integrating applicable
pesticide registration and registration review requirements and
the species and habitat protection processes described in
sections 7 and 10 of the Endangered Species Act (ESA). The
final report to Congress shall include an evaluation to
establish that approaches utilize the best available science,
reasonable and prudent alternatives (RPA) are technologically
and economically feasible, reasonable and prudent measures
(RPM) are necessary and appropriate and the agencies ensure
public participation and transparency in the development of
RPA's and RPM's. The amendment also authorizes an update of a
study to identify reasonable and prudent measures to implement
the endangered species pesticides labeling program which would
comply with the ESA and allow the continued production of food
and fiber and the report to Congress regarding the results of
the study. (Section 10013)
Overall Purpose of Provision
This provision addresses the activities of the
Environmental Protection Agency (EPA) and the Fish and Wildlife
Service and National Marine Fisheries Service (collectively,
the Services) in addressing the integration of the consultation
requirements of the Endangered Species Act (ESA) and the
pesticides registration requirements of the Federal
Insecticide, Fungicide and Rodenticide Act (FIFRA).
A longstanding and well-documented inability to resolve
fundamental scientific issues central to the integration of
these statutory requirements led the EPA Administrator and the
Secretaries of the United States Department of Agriculture
(USDA), Department of Interior and Department of Commerce to
ask the National Research Council (NRC) of the National Academy
of Sciences (NAS) to provide guidance on certain scientific
issues.
The final report from the NRC, Assessing Risks to
Endangered and Threatened Species from Pesticides, was
completed on April 30, 2013 (NAS Report). For the following
five months EPA, the Services, and USDA worked together and
produced an ``interim'' implementation plan (the ``Interim
Plan'') that was shared with stakeholders in mid-November of
2013. However, the Managers believe that further work needs to
be done to adequately address the concerns regarding the
``Interim Plan.''
It is the Managers intent through routine oversight to
keep all involved government entities focused on promptly
building the ``Interim Plan'' into a final set of processes and
procedures that will maximize the efficient use of limited
governmental resources, minimize delays in registration actions
under Sections 3 and 33 of FIFRA, make it possible for EPA to
comply with the FIFRA requirement that all registrations be
reviewed every fifteen years, and ensure meaningful public
participation. Additionally, the Managers through this
provision reemphasize Congress's intention that all reasonable
and prudent alternatives to address ESA concerns are
economically and technologically feasible.
Intent of Specific Subsections
Subsection (a) requires that two reports be provided to
the Committees on Agriculture and Natural Resources of the
House of Representatives and the Committees on Agriculture,
Nutrition, and Forestry and Environment and Public Works of the
Senate jointly by the Administrator of the Environmental
Protection Agency and the Secretaries of Commerce, Agriculture
and the Interior, the first to be delivered 180 days after
enactment of the legislation, and the second six months later.
Both reports are to describe the actions taken and approaches
underway to implement the NAS Report's recommendations and
otherwise minimize delays in integrating FIFRA's pesticide
registration and registration review requirements and the ESA's
species and habitat protection processes. The Managers expect
that each report should include an explanation of how any
remaining delays in this integration are expected to be
overcome, and a schedule for doing so.
The provision references both Section 3 and 33 of FIFRA
because both require timely EPA registration and registration
review actions, including specific deadlines for action. It is
the view of the Managers that the need for ESA compliance does
not override these deadlines. It is important that the
integration processes and procedures developed by EPA and the
Services assure EPA can meet its statutory deadlines.
Similarly, the Services should be exploring how habitat
conservation plans as part of an Incidental Take Permit under
Section 10 could be employed to simplify the consultation
process under Section 7 when processing a permit application.
The provision underlines the importance of meaningful
public participation and transparency. In addition to
describing approaches and actions to ensure public
participation and transparency, the Managers specifically
expect the report to address experience with the process
described in EPA's March 2013 paper, Enhancing Stakeholder
Input in the Pesticide Registration Review and ESA Consultation
Processes and Development of Economically and Technologically
Feasible Reasonable and Prudent Alternatives and any
modifications of that process that have been adopted or are
anticipated.
The conference report requires that the second report to
Congress address, in addition to an update of the matters
discussed in the first report, a number of other matters.
First, in identifying specific actions yet to be undertaken,
the report should provide a schedule for the initiation and
completion of each, which should be realistic and allow for
public participation.
Second, the processes adopted both before and after
completion of the two reports should recognize EPA's
obligations to meet the requirements for timely action set
forth in FIFRA Sections 3 and 33 and the resources available to
the Services to address pesticide-related consultations.
Third, the report should comprehensively explain why the
approaches and actions that have been or will be taken to
address Congress's concerns in enacting this provision utilize
the best available science, assure that reasonable and prudent
alternatives presented in biological opinions are
technologically and economically feasible and that reasonable
and prudent measures are necessary and appropriate. Among other
matters, this explanation should explain how the substantive
and procedural concerns that resulted in the vacating of
certain portions of the regulation appearing in Subpart D of
Part 402 of the Code of Federal Regulations in Washington
Toxics Coalition v. USEPA, 457 F.Supp. 2d 1158 (W.D. Wash.
2006), have been overcome; how the January 4, 2004 letter from
the Director of the U.S. Fish and Wildlife Service and
Assistant Administrator of the National Marine Fisheries
Service to the Principal Deputy Assistant Administrator of the
Office of Prevention, Pesticides and Toxic Substances of the
Environmental Protection Agency has been updated and revised;
and how the Alternative Consultation Agreement entered into in
August, 2004 by the Acting Assistant Administrator of the
Office of Prevention, Pesticides and Toxic Substances of the
Environmental Protection Agency, the Director of the U.S. Fish
and Wildlife Service, and the Assistant Administrator for
Fisheries, National Oceanic and Atmospheric Administration has
been revised or whether it is scheduled to be revised.
Fourth, the report should include an update of the study
and report on how ESA implementation is being undertaken while
minimizing the impacts on persons engaged in the production of
agricultural food and fiber commodities and other affected
pesticide users and applicators.
(10) Use and Discharge of Authorized Pesticides
The House bill amends section 3(f) of the Federal
Insecticide, Fungicide, and Rodenticide Act prohibiting the
Administrator or a State from requiring a permit under the
Federal Water Pollution Control Act for pesticide applications
authorized under the Federal Insecticide, Fungicide and
Rodenticide Act, except in certain instances and amends section
402 of the Federal Water Pollution Control Act prohibiting the
Administrator or a State from requiring a permit under section
402 for the application into navigable waters of a pesticide
applications authorized under the Federal Insecticide,
Fungicide, and Rodenticide Act. Subsection (s)(2) provides
exceptions for certain instances. (Section 10013)
The Senate amendment has no comparable provision.
The Conference substitute adopts the Senate provision.
(11) Seed not Pesticide or Device for Purposes of Importation
The House bill amends the Federal Insecticide, Fungicide,
and Rodenticide Act to eliminate the requirement to notify the
Administrator for seeds, including treated seeds, of the
arrival of pesticides and devices. (Section 10014)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment prohibits the requirement of
notification to the Administrator of the EPA of the arrival of
a plant-incorporated protectant (PIP) contained in a seed. The
Secretary, if requested, shall provide to the Administrator a
list of seeds containing PIPs. The amendment does not limit the
Secretary's other authorities regarding the movement of seeds.
(Section 10008)
(12) Stay on Regulations Related to Christmas Tree Promotion, Research
and Information Order
The House bill requires the Secretary, within 60 days of
the enactment of this Act, to lift the administrative stay
imposed by the rule establishing an industry-funded promotion,
research and information program for fresh cut Christmas trees.
(Section 10015)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision.
(Section 10014)
(13) Study on Proposed Order Pertaining to Sulfuryl Flouride
The House bill authorizes a report to Congress regarding
the potential economic and public health effects that would
result from finalization of the proposed order pertaining to
sulfuryl fluoride. (Section 10016)
The Senate amendment has no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment directs the Administrator of the
EPA to exclude nonpesticidal sources of fluoride from aggregate
exposure assessments required under section 408 of the FFDCA
when assessing tolerances associated with residues from the
pesticide. (Section 10015)
(14) Study on Local and Regional Food Production and Program Evaluation
The House bill requires the Secretary to collect data on
the production and marketing of locally or regionally produced
agricultural food products, facilitate data sharing, and
monitor programs designed to aid local and regional food
systems. The bill further provides a sunset date of September
30, 2018 for the annual report. (Section 10017)
The Senate amendment is similar to the House bill but
does not include the sunset date.
The Conference substitute adopts the Senate provision
with an amendment. The amendment adds further requirements for
the Secretary to collect data on regulatory compliance costs,
monitor regulatory barriers, and evaluate local food systems.
(Sec. 10016)
(15) Annual Report
The House bill authorizes a report and annual update to
Congress regarding invasive species including a list of each
invasive species that is in the U.S. as of the date of the
report and information regarding each invasive species listed,
including the means in which the species entered the U.S., cost
estimates of the species to the public and private sectors and
a description of any legal recourse available to people
affected by the species. (Section 10018)
The Senate amendment has no comparable provision.
The Conference substitute adopts the Senate provision.
(16) Effective Date
The Senate amendment provides an effective date of this
title as October 1, 2013. (Section 10013)
The House bill has no comparable provision.
The Conference substitute adopts the House provision.
Title XI--Crop Insurance
(1) Information sharing
The House bill, in section 11001(a), requires the Farm
Service Agency (FSA), when authorized by the producer, to
provide in a timely manner information to an agent or an
approved insurance provider (AIP) that may assist the agent or
AIP in insuring the producer, providing for privacy protection
and limited sharing. Section 11001(b) requires disclosure (by
name) of the amount of crop insurance assistance received by
Members of Congress, Cabinet Secretaries, and members of their
immediate families. (Section 11001)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment deleting the disclosure requirements under section
11001(b). (Section 11001)
The Managers intend that the information sharing required
under this section be effective upon enactment of the Farm
Bill. The Managers view the requirement of this section as an
important measure to ensure the timely correction and
prevention of errors. The Managers intend that the Farm Service
Agency provide agents or AIPs with information in a timely
fashion to fully effectuate the intent of this section.
(2) Publication of information on violations of prohibition on premium
adjustments
The House bill requires the Federal Crop Insurance
Corporation (the Corporation) to publish information regarding
each violation of the prohibition on rebates or premium
adjustments, including any sanctions imposed, in sufficient
detail so that the information may serve as effective guidance
to AIPs, agents, and producers. (Section 11002)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 11002)
The Managers stress the importance of timely enforcement
and publication of violations, especially in the heavy sales
period prior to the sales closing date. The Managers also
intend for the Risk Management Agency to investigate reports of
violations made to the Risk Management Agency by agents or AIPs
in the field. The Managers observe that the prohibition on
rebating under the Federal Crop Insurance Act (FCIA) has not
been construed to limit customary client relations, including
but not limited to providing risk management education, maps,
or help explaining coverage to lenders; promotional materials
such as pens, caps, notepads; or engagement of clients in a
social or civic setting. The Managers view these services and
activities as ordinary business expenses common to the
industry.
(3) Supplemental coverage option
The House bill, in section 11003(a), amends section
508(c)(3) of the Federal Crop Insurance Act to establish the
Supplemental Coverage Option (SCO). Section 508(c)(3)(A) and
(B) (as amended by section 11003(a) of the House bill) offers
producer the option of purchasing additional coverage based on:
(1) an individual yield and loss basis; (2) an area yield and
loss basis; or (3) an individual yield and loss basis
supplemented with coverage based on an area yield and loss
basis to cover part of the deductible under the individual
yield and loss policy. Section 508(c)(3)(C) (as amended by
section 11003(a) of the House bill) establishes coverage on a
margin basis alone or in combination with coverage on an
individual yield and loss basis or on an area yield and loss
basis, or an individual yield and loss basis supplemented with
coverage based on an area yield and loss basis. Subsection (b)
amends section 508(c)(4) of the Federal Crop Insurance Act to
establish the level of coverage available under SCO. Section
508(c)(4)(C)(i) (as amended by section 11003(b) of the House
bill) requires SCO to be available at a county-wide level to
the fullest extent practicable or, in counties that lack
sufficient data, on the basis of a larger area that the
Corporation determines will provide sufficient data. Section
508(c)(4)(C)(ii) (as amended by section 11003(b) of the House
bill) stipulates that indemnities will be triggered only if
losses in the area exceed 10 percent of normal levels. Section
508(c)(4)(C)(iii) (as amended by section 11003(b) of the House
bill) establishes coverage in an amount that does not exceed
the difference between 90 percent and the coverage level
selected by the producer for the underlying policy or plan of
insurance. Section 508(c)(4)(C)(iv) (as amended by section
11003(b) of the House bill) stipulates that crops enrolled in
Revenue Loss Coverage or acres enrolled in stacked income
protection for producers of upland cotton (STAX) are not
eligible for SCO. Section 508(c)(4)(C)(v) (as amended by
section 11003(b) of the House bill) establishes the premium for
SCO at an amount that is sufficient to cover anticipated losses
and a reasonable reserve and include an amount for operating
and administrative expenses. Subsection (c) amends section
508(e)(2) of the Federal Crop Insurance Act to establish
premium support for SCO at 65 percent of the additional premium
associated with the coverage and A&O at 12 percent of the
premium used to define loss ratio. Subsection (d) requires the
provision of SCO beginning with the 2014 crop year. (Section
11003)
The Senate amendment amends section 508(c)(3) of the
Federal Crop Insurance Act to establish SCO in the same manner
as the House provision. Section 11001(a) amends section
508(c)(3) of the Federal Crop Insurance Act to establish SCO.
Section 11001(b) amends section 508(c)(4) of the Federal Crop
Insurance Act to establish the level of coverage available
under the SCO. Section 508(c)(4)(C)(i) (as amended by section
11001(b) of the Senate amendment) requires SCO to be available
if sufficient data is available (as determined by the
Corporation). Section 508(c)(4)(C)(ii)) (as amended by section
11001(b) of the Senate amendment) makes coverage under this
section subject to a deductible. If a producer selects
Agriculture Risk Coverage (ARC), the amount of the deductible
is equal to 22 percent of the expected value of the crop. For
all other producers, the deductible is established at 10
percent. Section 508(c)(4)(C)(iii) (as amended by section
11001(b) of the Senate amendment) establishes coverage in an
amount that does not exceed the difference between 100 percent
and the coverage level selected by the producer for the
underlying policy or plan of insurance. Section
508(c)(4)(C)(iv) establishes the premium for A&O in the same
manner as the House provisions. Subsection (c) establishes
premium support and A&O in the same manner as the House
provision. Subsection (d) provides for a conforming amendment.
Section 11013, which establishes a new section 508B of the
Federal Crop Insurance Act, provides that acres enrolled in
STAX are ineligible for supplemental coverage. (Sections 11001,
11013)
The Conference substitute adopts the House provision with
amendments dropping the establishment of margin coverage
provided in the House provision from the SCO section,
establishing that SCO coverage will only be triggered if losses
in the area exceed 14 percent of normal levels, limiting SCO
coverage to not exceed the difference between 86 percent and
the coverage level selected by the producer under the
underlying policy, disallowing SCO coverage for crops enrolled
in ARC (as well as acreage when enrolled in STAX), and
requiring SCO to be made available beginning with the 2015 crop
year. (Section 11003)
The Managers intend the Supplemental Coverage Option to
be made available by the Corporation for sale by agents and
AIPs in time for the 2015 crop year. This is essential given
crop insurance is assuming a larger role in the risk management
of producers in the wake of reduced support under the Commodity
Title. The Managers particularly note that a producer may
purchase a STAX policy and SCO coverage on the same cotton crop
in the same county provided that they are purchased for
separate acreage. The language in this section is clear on this
point, precluding SCO coverage and ARC on the same crop but
precluding SCO and STAX on the same acres. The Managers intend
that producers of hybrid seed, including but not limited to
hybrid seed corn, hybrid popcorn seed, hybrid sweet corn seed,
hybrid sorghum seed, and hybrid rice seed, may supplement their
coverage with either a revenue or yield SCO coverage option, at
the producer's election. The Managers intend that cotton
producers may supplement their cottonseed coverage with SCO
yield coverage.
The Managers strongly urge the Corporation to allow
popcorn producers to be covered under area risk protection
insurance under written agreement until applicable policy
provisions are amended to allow for such coverage.
Margin Coverage Option
The House bill, in section 11003(a), authorizes margin
coverage for producers to elect alone, or in combination with
individual yield and loss coverage or area yield and loss
coverage, or in combination with both individual yield and loss
coverage and area yield and loss coverage. (Section 11003)
The Senate amendment authorizes margin coverage to be
made available alone or in combination with either individual
yield and loss coverage or area yield and loss coverage.
(Section 11002)
The Conference substitute adopts the House provision but
authorizes margin coverage under a separate section in the Farm
Bill from SCO. (Section 11004)
The Managers intend that margin coverage be approved and
made available by the Corporation for sale by agents and AIPs
in time for the 2015 crop year. Timely approval and
availability is important to wheat, rice, and interested
producers of other commodities.
(4) Premium amounts for catastrophic risk protection
The House bill requires the CAT premium to be reduced by
the percentage equal to the difference between the average loss
ratio for the crop and 100 percent, plus a reasonable reserve.
(Section 11004)
The Senate amendment is the same as the House, except the
reasonable reserve is ``as determined by the Corporation.''
(Section 11003)
The Conference substitute adopts the Senate provision.
(Section 11005)
(5) Repeal of performance-based discount
The House bill repeals the performance-based discount.
(Section 11005)
The Senate amendment contains no comparable provision.
The Conference substitute deletes the House provision.
(6) Permanent enterprise unit subsidy
The House bill makes permanent the Corporation's
authority to pay a higher portion of the premiums for policies
that insure on an enterprise unit basis. (Section 11006)
The Senate amendment is the same as the House. (Section
11004)
The Conference substitute adopts the House provision.
(Section 11006)
(7) Enterprise units for irrigated and non-irrigated crops
The House bill requires the Corporation to make available
separate enterprise units for acreages of irrigated and non-
irrigated crops beginning with the 2014 crop year. (Section
11007)
The Senate amendment is the same as the House except that
separate enterprise units are to be made available beginning
with the 2013 crop year. (Section 11005)
The Conference substitute adopts the House provision but
makes separate enterprise units available beginning with the
2015 crop year. (Section 11007)
The Managers intend for Enterprise Units by practice to
be made available by the Corporation in time for the 2015 crop
year.
(8) Data collection
The House bill provides authority for the use of data
collected by the Risk Management Agency (RMA), the National
Agricultural Statistics Service (NASS), or both, to determine
yields. Where sufficient county data is not available, the
Secretary is authorized to use data from other sources.
(Section 11008)
The Senate amendment is the same as the House. (Section
11006)
The Conference substitute adopts the House provision.
(Section 11008)
The Managers would note that the effectiveness of the
improvements made by this Act to the Federal Crop Insurance Act
hinges considerably on ensuring that necessary data is
available for implementation of improvements in a manner that
benefits all producers. The Managers intend that the
Corporation will use this authority effectively to fully
accomplish the objectives of the crop insurance title of the
Farm Bill.
(9) Adjustment in actual production history to establish insurable
yields
The House bill strikes the 60 percent yield plug in
current law and replaces it with a 70 percent yield plug.
(Section 11009)
The Senate amendment provides for a yield plug at 65
percent but only with respect to yields for the 2014 and
subsequent crop years. (Section 11007)
The Conference substitute adopts the House provision with
an amendment that drops the proposed replacement of the yield
plug in current law and authorizes producers to exclude certain
yield history from their APH database. The provision amends
section 508(g) (as amended by section 11009 of the Farm Bill)
by subjecting actual production history requirements under
section 508(g)(2)(A) to the new yield exclusion authority and,
under section 508(g)(4), by requiring an appropriate adjustment
in premium when a producer elects to exclude yields pursuant to
the authorities provided by this provision. The new section
508(g)(4)(C)(i) authorizes a producer to exclude any recorded
or appraised yield for any crop year in which the per planted
acre yield of the agricultural commodity in the county of the
producer was at least 50 percent below the simple average of
the per planted acre yield of the agricultural commodity in the
county during the previous 10 consecutive crop years. Section
508(g)(4)(C)(ii) provides that for any crop year in which a
producer is able to make an election to exclude a yield under
clause (i), a producer in a contiguous county may also elect to
exclude a yield under the authority granted by this provision.
Section 508(g)(4)(C)(iii) requires this provision to be
implemented by irrigation practice. (Section 11009)
The Managers intend that when a producer elects to
exclude a yield under this section that the Corporation would
also exclude a year for purposes of calculating the producer's
average actual production history. For example, if a producer
has 10 years of history and elects to exclude one year pursuant
to this section, the conferees intend that the Corporation will
add the yields from the 9 remaining years in the database and
divide the total by 9, not 10. The amendment to the Act
specifically declares that a producer may make an election to
exclude one or more yields notwithstanding section 508(g)(2)(A)
which requires a data base building up to 10 consecutive crop
years. Since the statute does not drill down further as to how
the producer's average Actual Production History is to be
calculated by the Corporation, the Managers intend that the
more general directive in this section along with this
clarifying report language is sufficient to ensure proper
implementation as intended by the Managers without the need to
amend Corporation regulations. The Managers note that this
provision is effective upon the date of enactment of the Farm
Bill. To the extent that it is not feasible to implement for
the 2014 crop year due to the reinsurance year already having
begun, the Managers intend that the provision will be
implemented in time for the 2015 crop year. The Managers would
observe that this provision applies to any yield in a
producer's actual production database, including any yield that
predates the enactment of this section.
The Managers strongly urge the Corporation to discontinue
use of downward trending with respect to databases of perennial
crops of 5 years or less due to the hardship this inflicts on
specialty crop producers, including peach producers, who, under
the current rules, are not allowed to use their own proven APH
despite the requirements of section 508(g)(2)(A). The Managers
also strongly urge that vertically integrated producers be
permitted to use adjusters' appraisals to settle claims and
that transition yields for peaches be updated to account for
technology and innovation.
(10) Submission and review of policies
The House bill, in section 11010(a), requires the
Corporation to review and submit to the Federal Crop Insurance
Corporation Board of Directors (Board) any policy developed
under research and development contracting authority or pilot
program authority if the Corporation, at its sole discretion,
finds the policy will likely result in a viable and marketable
policy, would provide crop insurance coverage in a
significantly improved form, and adequately protects producer
interests. The provision also establishes priorities for
consideration and approval under section 508(h) of the Federal
Crop Insurance Act, including a revenue policy for peanuts, a
margin policy for rice producers, and separate enterprise units
by risk rating in time for the 2014 crop year. Section 11010(b)
allows for up to 75 percent of research and development cost to
be paid in advance. (Section 11010)
The Senate amendment, in section 11008, is substantially
similar to the House provision except that the Senate amendment
does not include the House priorities. Section 11009 also
proposes new policy review and approval criteria, requiring the
Board to approve a new policy, plan of insurance, or other
material for reinsurance and for sale by approved insurance
providers to producers at actuarially appropriate rates and
under appropriate terms and conditions if the Board determines,
at its sole discretion, that the interests of producers are
adequately protected; the rates of premium and price election
methodology are actuarially appropriate; the terms and
conditions are appropriate and would not unfairly discriminate
among producers; the proposed policy or plan of insurance will,
at the Board's sole discretion, result in viable and marketable
policy, will provide crop insurance in a significantly improved
form or in a manner that addresses a recognized flaw or
problem, and will provide an improved kind of coverage for
crops without insurance or experiencing low participation in
crop insurance; the proposed policy or plan of insurance would
not, in the sole discretion of the Board, have a significant
adverse impact on the crop insurance delivery system; and the
policy or plan meets other requirements determined appropriate
by the Board. Section 11009 also provides that the Board, at
its sole discretion, may establish annual priorities which
would be made available on the Corporation website as well as a
process where priority submissions would be considered and
approved first. The Board is to consider making the highest
priority those submissions designed to serve underserved
commodities, including commodities for which there is no
insurance, and those designed to address existing policies
where there is inadequate coverage or low participation levels.
Section 11018 of the Senate provision modifies the approval of
costs for research and development, including the allowance of
a waiver on the 50 percent limit on advance costs, permitting
the Board to approve an additional 25 percent advance payment
to a submitter of a policy intended to provide coverage for a
region or crop that is underserved by federal crop insurance,
including specialty crops. (Sections 11008, 11009, 11018)
The Conference substitute adopts the Senate provisions,
combining them into one section with the following amendments.
The Board is required to review and approve for reinsurance and
for sale by approved insurance providers to producers at
actuarially appropriate rates and under appropriate terms and
conditions any policy, plan of insurance, or other material
where the Board determines that the interests of producers are
protected. In addition, the Board must determine that the
proposed policy or plan of insurance will provide a new kind of
coverage that is likely to be viable and marketable, provide
insurance coverage in a manner that addresses a clear and
identifiable flaw or problem in an existing policy, or provide
a new kind of coverage for a commodity that previously had no
crop insurance or has demonstrated a low level of participation
or coverage level under existing coverage. The Board must also
determine that the policy or plan of insurance will not have a
significant adverse impact on the crop insurance delivery
system. The Board is required, in a timely manner, to first
consider policies or plans of insurance that address
underserved commodities, including commodities for which there
is no insurance; secondly, to consider modifications to
existing policies or plans of insurance for which there is
inadequate coverage or there exists low participation levels
for a crop; and finally to consider other submissions under
section 508(h). The Board is required to make a priority the
approval of a revenue policy for peanuts and a margin coverage
policy for rice in time for the 2015 crop year; and the Board
is authorized to approve another priority in time for the 2015
crop year, a submission that allows separate Enterprise Units
by risk rating. With respect to approval of costs for research
and development, the requirement that a policy address ``a
unique need of agricultural producers'' is dropped as part of
the qualifying criteria for the 50 percent advance, and the
submitter not having sufficient financial resources to complete
the development of the submission into a viable or marketable
policy is dropped as part of the criteria for an additional 25
percent advance. (Section 11010)
The Managers observe the importance of a section 508(h)
submission process that is highly conducive to the development,
approval, and availability of new risk management products for
producers. The Managers intend that, provided that largely
objective standards are met by a submission under section
508(h), the Board must approve the policy. The Managers intend
that the Board will honor the general priorities as required
under the amendments made to section 508(h) under this section
but in a manner that also provides for the timely consideration
of other policies. The Managers specifically intend for the
Board to approve a peanut revenue policy and a margin policy
for rice producers in time for the 2015 crop year, as required
under this section, and intend for the Board to use the
authority granted under this section to consider and approve a
submission providing for separate Enterprise Units by risk
rating also in time for the 2015 crop year. The Managers would
also strongly urge the Board to place a high priority on the
approval of a specialized irrigated grain sorghum policy that
establishes improved rates and t-yields based on a certain high
level of crop management.
(11) Equitable relief for specialty crop policies
The House bill provides that for each of the 2011 through
2015 reinsurance years, the Corporation must provide $41
million in reimbursement (in addition to the total amount of
funding for A&O reimbursement) with respect to eligible
insurance contracts for any agricultural commodity that is not
eligible for a benefit under subtitles A, B, or C of Title I of
this Act. (Section 11011)
The Senate amendment contains no comparable provision.
The Conference substitute deletes the House provision.
(12) Consultation
The Senate amendment requires the submitter of a proposed
policy to, as part of the 508(h) review process, consult with
groups representing producers of agricultural commodities in
all major producing areas for the commodities to be served or
potentially impacted, either directly or indirectly. Any
submission to the Board must include a summary assessment of
the consultation and the Board must use the assessment to
determine if the submission will create adverse market
distortions. (Section 11010)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision but
confines the scope of the new consultation requirements to
fruits, vegetables, tree nuts, dried fruits, horticulture,
nursery crops, and floriculture. (Section 11011)
(13) Budget limitations on renegotiation of the Standard Reinsurance
Agreement
The House bill requires that, to the maximum extent
practicable, any new SRA negotiated under section
508(k)(8)(A)(ii) shall be budget neutral as compared to the
previous SRA, that in no event may a new SRA significantly
depart from budget neutrality, and that any incidental savings
realized from the renegotiation of the Standard Reinsurance
Agreement be used to increase premium subsidies, A&O
reimbursements, or fund pilot programs. (Section 11012)
The Senate amendment is similar except that the provision
requires any savings realized from the renegotiation of the
Standard Reinsurance Agreement ``be used for programs
administered or managed by the Risk Management Agency.''
(Section 11011)
The Conference substitute adopts the House provision with
an amendment to clarify that, to the maximum extent
practicable, estimated underwriting gains under any new SRA
must be budget neutral as compared to estimated underwriting
gains under the immediately preceding SRA were the preceding
SRA extended over the same period of time (Subparagraph
(F)(i)(I)). The substitute also clarifies that any future SRA
must comply with provisions of the Federal Crop Insurance Act
governing A&O rates but that this requirement is subject to the
requirement that, to the maximum extent practicable, the
estimated total amount of A&O under any new SRA shall not be
less than the estimated total amount of A&O under the
immediately preceding SRA were the preceding SRA extended over
the same period of time, as estimated on the date of enactment
of the Farm Bill (Subparagraph (F)(i)(II)). The substitute
requires in the same clause that in no event shall a new SRA
significantly depart from the budget neutrality as defined in
each of subclauses (I) and (II) unless otherwise required by
the Federal Crop Insurance Act (Subparagraph (F)(i)(III)). The
substitute further requires that to the extent there are any
budget savings from a future SRA and they do not result in a
significant departure from the budget neutrality required under
each of subparagraphs (F)(i)(I) and (F)(i)(II), the savings
must be used to increase A&O or underwriting gains
(Subparagraph (F)(ii)). (Section 11012)
The Managers note that Federal Crop Insurance has been
reduced by about $17 billion over the past six years, including
directly in the 2008 Farm Bill, in the context of the 2011
Standard Reinsurance Agreement negotiated in 2010 pursuant to
section 508(k)(8)(A)(i), and in the subsequent premium rerating
of policies. The Managers intend that, in compliance with this
section, any SRA negotiated pursuant to section
508(k)(8)(A)(ii) shall not be used as a means of achieving
further cuts to Federal Crop Insurance. To this end, this
provision of law requires forbearance from further cuts in any
future SRA negotiations to the maximum extent practicable. The
Managers observe that this provision imposes a clear duty on
the FCIC to fulfill the statutory command to the extent that it
is feasible or possible to do so while still fulfilling the
purposes of the statute, namely the provision of crop insurance
to farmers and ranchers through approved insurance providers
and private sector agents. Absent clear directive under a
future Act of Congress, the Managers expect that forbearance
from budget reductions under any future SRA is, in fact, both
feasible and possible. In requiring budget neutrality, it is
the intent of the Managers that the authority of the
Corporation to carry out its authorities under this subtitle to
establish or revise premium rates shall not be affected by this
amendment.
The Managers note that this provision of law establishes
an effective floor for estimated underwriting gains (UWGs) and
A&O amounts under any future SRA that is based on estimates
under the current SRA. Subject to the prescribed minimum amount
of A&O, the Managers also note that the provision requires the
FCIC to comply with applicable provisions of the FCIA when
establishing A&O rates. In contrast to UWGs where there is no
statutory instruction, there is significant statutory
instruction and history with respect to A&O rates. For
instance, section 508(k)(4)(A)(ii) established a maximum A&O
rate of 24.5 percent of premium used to define loss ratio
beginning with the 1999 reinsurance year. Section 508(k)(4)(E)
subsequently fixed the rate of A&O at 2.3 percentage points
below the rate in effect on the date of enactment of the 2008
Farm Bill with respect to the 2009 and subsequent reinsurance
years. And section 508(k)(8)(E) authorized alternative methods
to determine A&O rates for covered reinsurance years under the
SRA that took effect beginning with the 2011 reinsurance year.
The Managers would observe that the applicable statutory A&O
rates are made subject to the estimated minimum amount of A&O
required under this provision of law as well as to any
additional A&O required in the event of incidental savings from
a future SRA negotiated under section 508(k)(8)(A)(ii). The
Managers note that Subparagraph (F)(i)(III) enforces the
overarching purpose of this provision of law which is to avoid
future spending reductions by maintaining budget neutrality.
The Managers do not intend that this provision be construed to
require that funding be increased or decreased with respect to
either A&O or UWGs in a manner that would increase or decrease
such funding relative to a future SRA negotiated under section
508(k)(8)(A)(ii) unless an increase or decrease is otherwise
required by the operation of law.
Subparagraph (F)(i)(III) generally restates the
overarching purpose of this provision of law which is to
maintain budget neutrality unless the statute requires
otherwise. The Managers note that budget neutrality
requirements as defined in each of subclauses (I) and (II) and
each enforced by subclause (III) may not be construed to
require a reduction to another program. Subparagraph (F)(ii)
holds that any savings from an SRA negotiated under section
508(k)(8)(A)(ii) shall be purely incidental and any such
savings must be redirected back into A&O and UWGs. Thus, the
Managers intend that any savings under a future SRA be, in
fact, purely incidental and that these savings be used to
increase A&O and UWGs in a manner that is not discriminatory or
prejudicial to any approved insurance provider or agent. The
Managers further intend that incidental savings from UWGs
should be redirected to UWGs and, likewise, incidental savings
from A&O should be redirected to A&O.
(14) Test weight for corn
The Senate amendment requires the Corporation to
establish procedures to allow insured producers not more than
120 days to settle claims, in accordance with procedures
established by the Secretary, involving corn that is determined
to have low test weight. As soon as practicable after the date
of enactment of this provision, the Corporation is required to
implement this provision on a regional basis based on market
conditions and the interests of producers. The authority under
this section terminates 5 years from implementation. (Section
11012)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 11013)
(15) Crop production on native sod
The House bill amends Section 508(o) of the Federal Crop
Insurance Act. The provision amends the definition of native
sod to include land that a producer cannot substantiate has
ever been tilled. With respect to native sod, the provision
requires a reduction in crop insurance premium support, and is
denied NAP payments or Commodity Title payments. The provision
requires that during the first 4 years of planting a crop on
native sod, the premium support for crop insurance will be
reduced by 50 percentage points. The provision also provides
that the required reduction in benefits will apply to 65
percent of the transitional yield of the producer and that a
producer may not substitute yields on native sod ground. The
provision is limited in application to the Prairie Pothole
National Priority Area. The provision amends the Non-Insured
Crop Disaster Assistance Program (NAP) program in the same
fashion. Section 10013(c) requires a cropland report to the
House and Senate Agriculture Committees and annual updates.
(Section 11013)
The Senate amendment requires the same reduction in
benefits as the House provision except that the Senate
provision makes the reduction in benefits for planting on
native sod nationwide. It further requires a cropland report
and annual updates. (Section 11035)
The Conference substitute provides for a reduction in
benefits for a producer that has tilled native sod for the
production of an annual crop under both the Federal Crop
Insurance Act and NAP. Under the Federal Crop Insurance Act, a
producer is subject to a reduction in benefits during the first
four crop years of planting. The crop insurance insured yield
would be determined using a yield of 65 percent of the
transitional yield of the producer. The reduced subsidy would
be 50 percentage points less than the premium subsidy that
would otherwise apply. The reduction in benefits does not apply
to catastrophic level coverage.
In the case of benefits under NAP, a producer planting on
native sod during the first four years is subject to a
reduction in benefits. The reduced approved yield is determined
by a yield that is 65 percent of the T yield of the producer.
The service fees or premiums would be equal to 200% of the
service fee or premium.
The conference substitute provides that the reduction in
benefits for both federal crop insurance and NAP apply only on
native sod in the states of Minnesota, Iowa, North Dakota,
South Dakota, Montana, and Nebraska.
The conference substitute adopts the Senate provision on
the requirement for a crop land report and annual updates.
(Section 11014)
The Managers do not intend for approved insurance
providers (AIP) or agents to be responsible for making any
determinations relative to this section, nor for AIPs or agents
to undertake any liability for changes in eligibility
determinations.
(16) Coverage levels by practice
The House bill allows a producer that produces an
agricultural commodity on both dry land and irrigated land to
elect a different coverage level for each production practice
beginning with the 2015 crop year. (Section 11014)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 11015)
The Managers intend that this provision will be
implemented in time for the 2015 crop year. The Managers would
observe that the risks relative to producing crops on dry land
acreage versus irrigated acreage are considerably different and
that many producers seek different coverage levels that are
tailored to those differing risks.
(17) Beginning farmers and rancher provisions
The House bill, in section 11015, defines a beginning
farmer or rancher as one who has not actively operated and
managed a farm or ranch with a bona fide interest in a crop or
livestock as an owner-operator, landlord, tenant, or
sharecropper for more than 5 crop years. Except in the case of
CAT coverage, beginning farmers and ranchers receive premium
assistance that is 10 percentage points higher than premium
assistance otherwise provided. The section requires that a
beginning farmer or rancher previously involved in a farming or
ranching operation, including in decision making or physical
involvement, be assigned a yield that is the higher of the APH
of the previous producer of the crop or livestock on the
acreage or the yield of the producer as otherwise provided by
statute. The section further provides beginning farmers and
ranchers with a higher yield plug of 80 percent of the
applicable transitional yield. (Section 11015)
The Senate amendment is similar to the House. (Section
11032)
The Conference substitute adopts the House provision.
(Section 11016)
The Managers intend this section to be implemented in a
manner that does not discriminate against producers who grew up
on a farm or ranch, left for post-secondary education or
military service, and returned to the farm or ranch. When
calculating the 5 crop years in this section, the Managers
intend that any year when a producer was under the age of 18,
in post-secondary studies, or serving in the U.S. military
should not be counted.
(18) Stacked income protection plan for producers of upland cotton
The House bill, in section 11016(a), requires the
Corporation to make available to upland cotton producers,
beginning with the 2014 crop year, a new additional policy
which is to provide coverage consistent with the Group Risk
Income Protection (GRIP) Plan along with the Harvest Revenue
Option Endorsement offered in the 2011 crop year. The section
authorizes the Corporation to modify the policy on a program-
wide basis provided the plan complies with certain
requirements. The section requires coverage for revenue loss of
not less than 10 percent and not more than 30 percent of
expected county revenue, offered in increments of 5 percent.
The section establishes a deductible under the policy of 10
percent of revenue loss in a county. The section requires that
the policy be made available to all upland cotton producers in
all counties of production at a county-wide level to the
fullest extent practicable, or in counties that lack sufficient
data, on the basis of a larger geographical area as determined
by the Corporation. The section provides that this coverage may
be purchased alone or in addition to any other individual or
area coverage on the same acreage except that in the latter
case the coverage may not exceed the deductible of the other
policy. The section requires that coverage be based on the
expected price established under existing GRIP or area wide
policy offered by the Corporation for the county or area and
crop year and an expected county yield. The section requires
that the expected county yield be the higher of the expected
county yield for existing area wide plans for the applicable
county (or area) and crop year (or in geographic areas where
area-wide plans are not offered, an expected yield determined
in a consistent manner with an area wide plan) or the average
of the applicable yield data for the county (or area) for the
most recent 5 years, excluding the high and low, as observed by
RMA, NASS, or both, or other data determined appropriate by the
Secretary if sufficient county data is not available. The
section requires use of a multiplier factor of not less than
the higher of the level established on a program wide basis or
120 percent. The section requires an indemnity to be paid based
on the amount that expected county revenue exceeds actual
county revenue as applied to the individual coverage of the
producer, except that indemnities may not include or overlap
the producer's selected deductible. The section requires the
availability of this coverage by irrigation practice in all
counties where data is available. The section establishes the
amount of premium and premium support and specifies the amount
of A&O required for the policy. The section clarifies that the
policy is in addition to all other coverage available to
producers of upland cotton. Finally, section 11016(b) provides
for a conforming amendment.
The Senate amendment: Section 11013 is similar to the
House bill except that the Senate requires the stacked income
protection plan to be made available beginning with the 2014
crop year if practicable and requires such protection to be
made available by irrigation practice to the maximum extent
practicable. (Section 11013)
The Conference substitute adopts the House provision
except that stacked income protection for upland cotton
producers is required to be made available beginning not later
than the 2015 crop year. (Section 11017)
The Managers intend that the Stacked Income Protection
Plan for Producers of Upland Cotton be implemented in a manner
that if a producer participates in both the Stacked Income
Protection Plan and an area-wide policy, the total
indemnification under both policies combined does not exceed
the total insured value of the crop. The Managers intend that
the Stacked Income Protection Plan for Producers of Upland
Cotton be implemented in a manner that includes the features of
existing area-wide crop insurance products, including allowing
for producers to select or decline the Harvest Price Option.
The Managers further intend that the Stacked Income Protection
Plan be fully implemented by the Corporation as expeditiously
as possible.
(19) Peanut revenue crop insurance
The House bill, in Section 11017, requires the
Corporation to make available revenue insurance for peanut
producers beginning with the 2014 crop year. The section
establishes an effective price for revenue and multiple peril
insurance at a price equal to the Rotterdam price index for
peanuts, adjusted to reflect the farmer stock price of peanuts
in the U.S. The section authorizes RMA to adjust the effective
price to correct distortions in an open and transparent manner
with a report to the Agriculture Committees on the reasons for
the adjustment. (Section 11017)
The Senate amendment is similar to the House provision.
(Section 11014)
The Conference substitute adopts the House provision
except that peanut revenue coverage is required beginning with
the 2015 crop year and the effective price must be either the
Rotterdam price or other appropriate price as determined by the
Secretary. (Section 11018)
The Managers note that peanut revenue coverage is
required to be made available to peanut producers in time for
the 2015 crop year and that a separate section within the crop
insurance title of this Act requires that the approval of a
peanut revenue policy be made a priority.
(20) Authority to correct errors
The House bill amends section 515(c) of the Federal Crop
Insurance Act to allow an agent or an AIP to correct
unintentional errors in information that are provided by a
producer. Section 515(c)(3)(A) (as amended by section 11018 of
the House bill) specifies that the authority granted by section
10018 shall be in addition to any corrections already permitted
and in place on the date of enactment of this Act. Section
515(c)(3)(A)(i) provides agents and AIPs authority to correct
unintentional errors in information provided by the producer to
obtain insurance within a reasonable period following the sales
closing date. Section 515(c)(3)(A)(ii)(I) also provides that,
within a reasonable time following the acreage reporting date,
agents and AIPs may correct unintentional errors in factual
information that are provided by a producer after the sales
closing date to reconcile the information with the information
reported by the producer to FSA. Section 515(c)(3)(A)(ii)(II)
provides that agents and AIPs may make corresponding
corrections within a reasonable amount of time following the
date of any subsequent correction of data by the FSA made as a
result of the verification of information. Section
503(c)(3)(A)(iii) provides that AIPs and agents may at any time
correct unintentional errors made by FSA, agents, or AIPs in
transmitting the information provided by the producer to the
approved insurance provider or the Corporation. Section
515(c)(3)(B) provides that in accordance with Corporation
procedures, the corrections permitted under clauses (i) and
(ii) may only be made if the corrections do not allow the
producer to avoid ineligibility requirements; to obtain,
enhance or increase an insurance guarantee or avoid a premium
owed if a cause of loss exists or has occurred before any
correction has been made; or to avoid an obligation or
requirement under federal or state law. Section 515(c)(3)(C)
exempts errors corrected pursuant to this section from any late
filing sanctions. (Section 11018)
The Senate amendment amends section 515(c) of the Federal
Crop Insurance Act to require the Corporation to establish
procedures to allow an agent or an AIP to, within a reasonable
amount of time after the sales closing date, correct errors in
specified information that is provided by a producer to ensure
the information is consistent with information reported to FSA.
The section limits the ability to correct errors if allowance
would allow the producer to obtain a disproportionate benefit
under crop insurance or other USDA program, avoid ineligibility
requirements for crop insurance, or avoid an obligation under
federal or state law. (Section 11015)
The Conference substitute adopts the House provision but
requires the Corporation to establish procedures to implement
the authority to correct errors that are in addition to
authorities to correct errors in place as of the day before the
date of enactment of this Act. The substitute also clarifies
that the authority granted under Section 508(c)(3)(A)(i) is
also to ensure that the information is consistent with
information reported by the producer for other programs
administered by the Secretary. The substitute allows an agent
or approved insurance provider to make corresponding
corrections within a reasonable amount of time following the
date of any correction by the FSA made as a result of the
verification of information. The substitute also clarifies that
at any time an agent or an approved insurance provider may
correct their electronic transmission errors, or the electronic
transmission errors of FSA or other USDA agencies to the extent
that the agent or AIP relied on that information. The
substitute also provides authority to allow a producer to make
late payment for crop insurance under certain conditions.
(Section 11019)
The Managers would note that the authority to correct
errors is in addition to any authorities to correct errors in
existence on the day before the date of enactment of this Act,
and that the additional authority provided under this section
does not preclude the agency from administratively providing
other additional authorities to correct errors.
(21) Implementation
Section 11020 requires the Secretary to maintain and
upgrade information management systems used in the
administration and enforcement of the FCIA. The section
requires the Secretary to ensure that new hardware and software
are compatible with the same used by other USDA agencies. The
section requires the Secretary to develop and implement an
acreage report streamlining initiative project. Mandatory funds
are authorized by the section for systems upgrades ($25 million
for FY2014 and $10 million for each fiscal year from FY2015
through FY2018) with additional funding (an additional $5
million for each fiscal year from FY2015 through FY2018) made
available upon completion of the Acreage Crop Reporting
Streamlining Initiative (ACRSI). The section requires a report
to the Agriculture Committees upon the substantial completion
of ACRSI. (Section 11019)
The Senate amendment is similar to the House provision
and the funding levels are the same, except the expected
completion date for ACRSI and the submission date of the report
to the Agriculture Committees of Congress are different.
(Section 11016)
The Conference substitute adopts the House provision
except with reduced funding levels, with $14 million in FY2014
and $9 million in each fiscal year from FY2015 through FY2018
with an additional $5 million for each fiscal year from FY2015
through FY2018 if the specified conditions are met. (Section
11020)
(22) Crop insurance fraud
The Senate amendment amends section 516(b)(2) to require
that beginning with the 2014 reinsurance year and for each
reinsurance year thereafter, the Corporation may use up to $5
million from the insurance fund to pay costs to reimburse
expenses incurred for the review of policies, plans of
insurance, and related materials and assist the Corporation in
maintaining program integrity and, in addition to other amounts
for this purpose, costs incurred by RMA for compliance
operations. (Section 11017)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with modifications. The substitute provides that the
Corporation may use from the insurance fund not more than $9
million for each of the 2014 and subsequent reinsurance years
to reimburse expenses incurred for the operations and review of
policies, plans of insurance, and related materials, and to
assist the Corporation in maintaining program actuarial
soundness and financial integrity. The substitute further
provides that Secretary may, without further appropriation
merge some or all of the funds made available under this
subparagraph into the accounts of the Risk Management Agency
and obligate those funds. The substitute also provides that the
funds made available under this subparagraph are in addition to
other funds made available for costs incurred by the
Corporation. (Section 11021)
(23), (24), (26) Research and development priorities, Additional
Research and Development Contracting Requirements, Alfalfa Crop
Insurance Policy
The House bill authorizes the Corporation to conduct
research and development in addition to current authority to
enter into contracts for research and development. The section
also makes underserved agricultural commodities, including
sweet sorghum, biomass sorghum, rice, peanuts, sugarcane,
alfalfa, pennycress, and specialty crops research and
development priorities. (Section 11020)
The Senate amendment is similar to the House provision
but excludes rice, peanuts, alfalfa, and pennycress while
adding dedicated energy crops. The section also requires the
Corporation to follow consultation requirements before
conducting research and development or entering into a
contract. (Section 11028)
The Conference substitute adopts the House provision and,
within the same section, incorporates specific research and
development requirements from section 10021 of the House bill
and sections 11019, 11020, 11021, 11022, 11023, 11026 of the
Senate bill, including House section 11021's margin coverage
for catfish (which is the same as Senate section 11022); House
section 11021's biomass and sweet sorghum energy crop insurance
policies, which is similar to Senate section 11025; the House
study on swine catastrophic disease program, which is similar
to the study in Senate section 11021 except that under the
Substitute the Corporation is required to contract with 1 or
more qualified entities; the House whole farm diversified risk
management insurance plan, which is similar to Senate section
11019, except that the Corporation is given up to two years to
reach resolution before having to follow the directive of the
section under the Substitute; the House section 11021 study on
poultry catastrophic disease program; the House section 11021
poultry business interruption insurance policy which is similar
to Senate section 11023 except that under the Substitute any
coverage is limited to a portion of losses; the House section
11021 study of food safety insurance which is similar to Senate
section 11020; and Senate section 11026 regarding alfalfa crop
insurance policy. (Section 11022)
The Managers would note that sweet sorghum and biomass
sorghum are listed as underserved commodities and intend that
the Corporation give proper priority to the development and
ultimate availability of coverage for these crops. The listing
of rice and peanuts as underserved commodities also prioritizes
development and availability of new policies serving these
crops, including margin coverage for rice and revenue coverage
for peanuts.
The Managers recognize alfalfa to be an important
domestic forage crop valued for nitrogen fixation, soil
conservation, crop rotation, and as a natural habitat. The
Managers view alfalfa as having great potential for the
national cash hay market and as an affordable means of
supporting the forage and intensive grazing needs of the horse,
cattle, and dairy sectors. However, from 2002 through 2011,
alfalfa acreage has declined 15.7 percent, and in 2012 alone
acreage declined an additional 10 percent. The Managers stress
the importance of an alfalfa crop insurance policy to ensure
that producers have the risk management protection that they
need to produce this important crop. The Managers urge the
Secretary to include information regarding regional differences
in cultivation in the alfalfa crop insurance study.
In developing the whole farm diversified risk management
insurance policy, the Managers recognize that the Corporation
may include coverage for the value of any packing, packaging,
or any other similar on-farm activity the Corporation
determines to be the minimum required in order to remove the
commodity from the field. Making a crop market-ready may
require incidental on-farm processing that could occur either
in-field or off-field. This activity includes packing,
packaging, washing, labeling, trimming, and other similar
activities that occur after harvest in order to ensure a
marketable commodity. It is the Managers' view that the
production cost of such activities does not add value to the
product beyond making it a saleable commodity.
In conducting the study on food safety insurance, the
Managers do not intend to delay RMA's on-going efforts on these
issues. The Managers are aware of existing RMA pilots on
quarantine and encourages additional on-the-ground exploration
into how risk management might work for quarantine in a
specialty crop setting in both perennial and annual crops. The
Managers acknowledge that naturally occurring food safety
pathogens (a natural peril) could be insurable as cause of
loss, but in light of the historical challenges of insuring
these perils urges the agency to make examination of data
collection into the extent and severity of these perils a
priority for this report. The Managers likewise encourage RMA
to continue to refine how crop insurance might protect against
the risks associated by naturally occurring food safety
pathogens. These risks could be associated with either revenue
or yield and RMA's on-the-ground product development should not
be slowed by this study. This study is designed to help
specialty crop producers and Congress understand how these
risks are already being, or could be, addressed by the crop
insurance system. Special emphasis should be placed on the
types of practical challenges that RMA believes are present
that need to be overcome in order to create actuarially sound
products as is required by statute, including, for example,
data collection challenges that may be different or unique to
specialty crops vis-a-vis row crops and the implementation of
new insurance products on a pilot basis is encouraged as a part
of an insurance-relevant data collection effort.
In establishing appropriate maintenance payments under
Section 522(b)(4)(D)(ii) of the Federal Crop Insurance Act, the
Managers urge the Corporation to consider whether it is
appropriate to establish such payments at an amount totaling
not less than the greater of $10 per policy (as adjusted
periodically for inflation); one half of one percent of the
total risk premium applicable to the policy; or, if applicable,
the fee per policy approved by the Board under this paragraph
that was in effect for crop year 2013.
(25) Study of crop insurance for seafood harvesters
The Senate amendment requires the Corporation to conduct
a feasibility study of insuring seafood harvesters and report
to Congress on the results of the study. (Section 11024)
The House bill contains no comparable provision.
The Conference substitute deletes the Senate provision.
(27) Crop insurance for organic crops
The Senate amendment requires as soon as possible but not
later than for the 2015 reinsurance year, the Corporation shall
offer producers of organic crops price elections for all
organic crops, produced in compliance with USDA standards, that
reflect the retail or wholesale price, as appropriate. The
provision requires the Corporation to then report to Congress
on progress made in developing and improving crop insurance for
organic crops. (Section 11027)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 11023)
(28) Program compliance partnerships
The House bill provides that the purpose of subsection
522(d) of the Federal Crop Insurance Act is to authorize the
Corporation to enter into partnerships with private and public
entities for the purpose of either increasing availability of
loss mitigation, financial, and other risk management tools for
producers, with a priority given to risk management tools for
producers covered by the Non-Insured Assistance program (NAP),
specialty crops, and underserved commodities or improving
analysis tools and technology regarding compliance or
identifying and using innovative compliance strategies.
(Section 11022)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment that rewrites the purposes of section 522(d), as
proposed in the House provision, and adds to the objectives
provided under section 522(d)(3) the improvement of analysis
tools and technology regarding compliance or identifying and
using innovative compliance strategies. (Section 11024)
In expanding the Partnerships for Risk Management
Development and Implementation to include both improving
analytical tools and technology and using innovative strategies
for compliance with the federal crop insurance program, the
Managers urge the Corporation to utilize this new authority to
provide the government and industry with additional options
with regard to ensuring program compliance.
(29) Index-based weather insurance pilot programs
The Senate amendment authorizes $10 million in each of
fiscal years 2014 through 2018 for the Corporation to conduct a
pilot program to provide financial assistance for producers of
underserved crops and livestock (including specialty crops) to
purchase an index-based weather insurance product from a
private insurance company. The Corporation may pay a portion of
the premium but not in excess of 60 percent. The provision also
provides certain eligibility requirements for providers, as
well as procedures for administration of the pilot program.
(Section 11030)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with modifications. The substitute defines livestock to include
cattle, sheep, swine, goats, poultry, and pasture, rangeland,
and forage as a source of a feed for livestock. The substitute
authorizes the Corporation to conduct two or more pilot
programs to provide producers of underserved specialty crops
and livestock with index-based weather insurance. The
substitute requires the Board of the FCIC to approve two or
more policies or plans of insurance of AIPs if the Board
determines the pilot programs meet the requirements above and
additional requirements that the AIPs must: have adequate
experience underwriting and administering the kinds of policies
proposed under the pilot; have sufficient assets or reinsurance
and have sufficient credit rating; and have applicable
authority and approval from each state in which the policy will
be offered. Pilot program applications submitted pursuant to
this section are required to be reviewed in a manner consistent
with section 508(h) as well as the actuarial soundness
requirements applied to other policies or plans of insurance.
The substitute provides priority to pilot program policies that
provide a new kind of coverage for specialty crops and
livestock that have no available crop insurance or demonstrate
low participation under available coverage. The substitute
requires the Corporation to pay a percentage of premium, except
that the premium support may not exceed 60 percent of total
premium. The substitute prescribes the calculation of premium
support and requires that the Corporation pay the premium
support in the same manner and under the same terms and
conditions as premium support for other policies. The
Substitute authorizes A&O unless such costs are included in the
premium but prohibits federal reinsurance, research and
development cost reimbursement, or other reimbursements or
maintenance fees. The substitute provides that the AIP that
submitted the pilot program may offer the policy exclusively
unless, in an exception to the prohibitions on fees, another
AIP agrees to pay agreed upon maintenance fees that are
reasonable and appropriate and the other AIP meets other
eligibility requirements. The substitute requires the
requirements of paragraph (4) to be met notwithstanding
confidentiality requirements in paragraph (6). The substitute
establishes oversight requirements, provides for
confidentiality, and prohibits any policy or plan of insurance
to be approved if it is substantially similar to privately
available hail insurance. The substitute provides $12.5 million
for each fiscal year 2015 through 2018 with such amounts to be
made available until expended. The substitute clarifies that
these amounts for the pilot program are in addition to amounts
made available under other provisions in the Act. (Section
11026)
The Managers note that many producers of specialty crops
and livestock are not adequately served by the existing suite
of crop insurance products and that alternative approaches,
such as this provision, may be appropriate to extend insurance
coverage to those producers. Further, the Managers would urge
the Corporation to use this pilot authority to develop new
expertise and collect as much information as possible about the
future development and use the weather-based index insurance as
a method for covering producers who are currently underserved
by existing crop insurance products. Consistent with the
requirements of this section, the Managers intend for RMA to
look at states or regions where the level of crop insurance
coverage for a particular commodity is significantly below the
national average.
(30) Enhancing producer self-help through farm financial benchmarking
The Senate amendment adds ``farm financial benchmarking''
to the list of objectives under the partnerships authorized
under section 522(d) and the education and risk management
assistance authorized under section 524(a). (Section 11031)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 11027)
(31) Limitation on premium subsidy based on average adjusted gross
income
The Senate amendment requires that, beginning with the
2014 reinsurance year, the total amount of premium subsidy for
additional coverage for any person or entity that has an
average adjusted gross income in excess of $750,000 be 15
percentage points less than the premium subsidy that would
otherwise be available for the applicable policy. This section
would only take effect if the Secretary, in consultation with
the Government Accountability Office, finds that the limitation
would not: (1) significantly increase the amount of premium
paid by producers with a lower AGI; (2) result in a decline in
coverage available; and (3) increase the total cost of the
federal crop insurance program. (Section 11033)
The House bill contains no comparable provision.
The Conference substitute deletes the Senate provision.
(32) Agricultural management assistance, risk management education, and
organic certification cost share assistance
The House bill eliminates tree plantings and soil erosion
control from the list of approved uses, and permanently
authorizes the Agricultural Management Assistance Program at
$10 million in mandatory money each fiscal year. It sets aside
30 percent to NRCS for conservation, 10 percent to the
Agricultural Marketing Service for organic certification, and
60 percent to the Risk Management Agency for risk management.
(Section 2506)
The Senate amendment eliminates the list of states
eligible for agricultural management assistance and specified
uses for such assistance and authorizes Agricultural Management
Assistance, Risk Management Education, and Organic
Certification Cost Share Assistance. The provision applies a
payment limit of $50,000. The provision provides $23 million in
mandatory funding for each of fiscal years 2014 through 2018.
(Section 11034)
The Conference substitute deletes both the House and
Senate provisions.
(33) Technical amendments
The House bill strikes the crop insurance coverage
requirement to receive certain benefits. The provision also
eliminates the exclusion from assistance for losses due to
drought conditions under the Livestock Forage Disaster Program.
(Section 11024)
The Senate amendment strikes the crop insurance coverage
requirement to receive certain benefits. (Section 11036)
The Conference substitute adopts the House provision with
amendments to clarify that premium subsidy for area revenue and
area yield plans are separately provided for, and that the
Corporation must provide notice to Congress if it elects to
renegotiate an SRA pursuant to section 508(k)(8)(A)(ii).
(Section 11029)
(34) Advance public notice of crop insurance policy and plan changes
The House bill requires any changes to the terms and
conditions of a policy to be published in the Federal Register
at least 60 days before June 30 for fall planted crops and at
least 60 days before November 30 for spring planted crops.
(Section 11025)
The Senate amendment contains no comparable provision.
The Conference substitute deletes the House provision.
(35) Greater accessibility for crop insurance
The Senate amendment requires that when issuing
regulations and guidance relating to plans and policies of crop
insurance, RMA and the Corporation use plain language, to the
greatest extent practicable, as required under Executive Orders
12866 and 12988. The provision requires the Secretary to
improve the website on which crop insurance information is
disseminated and to report to Congress on efforts to accelerate
compliance. (Section 11037)
The House bill contains no comparable provision.
The Conference substitute deletes the Senate provision.
(36) GAO crop insurance fraud report
The Senate amendment requires the Comptroller General of
the United States, as soon as practicable after the date of
enactment of this paragraph, to conduct and submit to Congress
a report describing the results of a study regarding fraudulent
claims filed and benefits provided under this subtitle.
(Section 11038)
The House bill contains no comparable provision.
The Conference substitute deletes the Senate provision.
Title XII--Miscellaneous
Subtitle A--Livestock
(1) Repeal of the National Sheep Industry Improvement Center
The House bill repeals the National Sheep Industry
Improvement Center. (Section 12101)
The Senate amendment moves the Sheep Center from the
Consolidated Farm and Rural Development Act to the Agricultural
Marketing Act of 1946. It establishes a competitive grant
program in the Agricultural Marketing Service to improve the
sheep industry. It also provides $1,500,000 in Commodity Credit
Corporation funds for fiscal year 2014, to remain available
until expended. Additionally, the amendment increases the
amount of funds that can be used for administration from 3
percent to 10 percent, and it eliminates the authorization of
appropriations. (Section 12104)
The Conference substitute adopts the Senate provision.
(Section 12102)
(2) Repeal of certain regulations under the Packers and Stockyards Act,
1921
The House bill repeals the requirement to promulgate
regulations with respect to the Packers and Stockyards Act;
repeals the definition of additional capital investment; and
prohibits enforcement of certain already promulgated
regulations. (Section 12102)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(3) Country of origin labeling
The House bill requires the Secretary to conduct an
economic analysis of USDA's March 12, 2013, proposed rule on
country of origin labeling for beef, pork, and chicken.
(Section 12105)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment to clarify that the analysis should be conducted
on USDA's final version of the rule. (Section 12104)
(4) Repeal of duplicative catfish inspection program
The House bill repeals section 11016 of the 2008 Farm
Bill, thus no longer specifying catfish as amenable species and
eliminating the grading program. (Section 12107)
The Senate amendment contains no comparable provision.
The Conference substitute amends section 11016 of the
2008 Farm Bill by clarifying the definition of ``catfish.'' It
also requires the Food Safety and Inspection Service (FSIS) and
the Food and Drug Administration (FDA) to enter into a
memorandum of understanding to ensure that inspections of dual
jurisdiction facilities by the FSIS satisfy the requirements of
the FDA, thereby preventing duplicative inspection oversight.
(Section 12106)
It is the intent of the Managers to ensure the safety of
the American food supply from food containing dangerous
contaminants and banned substances. The Conference substitute
amends section 11016 of the 2008 Farm Bill to address perceived
concerns regarding duplication; to provide direction to the
Secretary regarding covered species; and to otherwise expedite
implementation. The Managers are aware that the inappropriate
and unregulated use of chemicals and veterinary drugs in
aquaculture in some countries raises questions regarding health
effects. There exists scientific evidence that demonstrates
that the use of substances such as malachite green,
nitrofurans, fluoroquinolones, and gentian violet during the
stages of production can result in continued presence in edible
Siluriforme products. The Managers believe that continuous
inspection of farm-raised fish species is a legitimate tool to
address these concerns. The Managers believe that the catfish
inspection program authorized in the 2008 farm bill is
consistent with the principles of most-favored-nation and
national treatment, in that U.S. and foreign producers,
processors, and products would be treated equally. Therefore,
implementation of the program should proceed, as it upholds
World Trade Organization responsibilities.
The Managers are aware of claims that implementation of
the 2008 mandate has been delayed due to confusion related to
the definition of catfish to be utilized by the FSIS. The
Conference substitute clarifies this definition in a manner
that achieves consistency in the application of the program and
avoids arbitrary or unjustifiable distinctions in the level of
inspection.
While the Managers fundamentally disagree with claims
that a transfer of responsibility from one Federal agency to
another somehow duplicates government oversight, the Managers
are nevertheless sensitive to historical examples of
bureaucratic jurisdictional conflict and have taken steps to
address this concern. Specifically, the conference substitute
directs the FSIS and FDA to exercise their existing authority
to enter into a memorandum of understanding to improve
interagency cooperation and to ensure that inspections of dual
jurisdiction facilities by the FSIS satisfy the requirements of
the FDA, thereby negating any requirement (real or perceived)
for duplicative inspection oversight. Moreover, FSIS should
work in collaboration with FDA to improve analysis and share
information with regard to risk. The Managers are dissatisfied
that the implementation process has already exceeded 5 years
and see no barrier to FSIS completing this MOU and fully
implementing the underlying inspection mandate within 60 days
from the date of enactment of this Act. (Section 12106)
(5) National Poultry Improvement Program
The House bill requires the Secretary to administer the
surveillance program for low pathogenic avian influenza for
commercial poultry without amending the regulations for the
governance of the General Conference Committee. Requires that
the funding levels stay at FY 2013 levels. (Section 12108)
The Senate amendment requires the Secretary to continue
to administer the avian influenza surveillance program in
commercial poultry through NPIP. Requires the Secretary to
ensure it meets any relevant standards established by WTO.
(Section 12107)
The Conference substitute adopts the House provision with
an amendment changing ``Program'' to ``Plan'' in the Section
heading. (Section 12107)
(6) Report on bovine tuberculosis in Texas
The House bill requires the Secretary to submit a report
on the incidence of bovine tuberculosis in Texas from January
1, 1997 to December 31, 2013. (Section 12109)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(7) Economic fraud in wild and farm-raised seafood
The House bill requires the Secretary to submit a report
to Congress on the economic implications for consumers,
fishermen, and aquaculturists of fraud and mislabeling of wild
and farm-raised seafood. The report must be submitted within
180 days. (Section 12110)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(8) Feral swine eradication pilot program
The Senate amendment establishes a pilot program to study
the extent of damage caused by feral swine and to develop
methods to eradicate or control and to restore damage cause by
feral swine. The amendment includes a 75 percent Federal cost-
share, and it authorizes $2 million in appropriated funds for
each of fiscal years 2014 through 2018. (Section 12105)
The House bill contains no comparable provision,
authority expires.
The Conference substitute adopts the Senate provision
with an amendment. The amendment revises the language as a
Sense of Congress urging the Secretary of Agriculture to
recognize the threat feral swine pose to the agricultural
industry and to prioritize eradication of feral swine. (Section
12108)
Subtitle B--Socially Disadvantaged Producers and Limited Resource
Producers
(9) Socially Disadvantaged Farmers and Ranchers Policy Research Center
The House bill requires the Secretary to establish a
center for developing policy recommendations for the protection
and promotion of the interests of socially disadvantaged
farmers and ranchers. (Section 12203)
The Senate amendment is similar to the House, but uses a
competitive grant program. (Section 12002)
The Conference substitute adopts the House provision.
(Section 12203)
(10) Receipt for or denial of service from certain Department of
Agriculture agencies
The House bill requires USDA to provide a receipt for
service to all persons requesting a benefit offered by the
Department. (Section 12204)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 12204)
Subtitle C--Other Misc. Provisions
(11) Program benefit eligibility status for participants in high plains
water study
The House bill amends Section 2901 to prohibit
ineligibility for program benefits under the Federal
Agriculture Reform and Risk Management Act of 2013 or an
amendment made by that Act. (Section 12302)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 12302)
The Managers recognize that the ongoing depletion of the
Ogallala Aquifer is an acute concern for the eight States that
depend on it for agricultural, domestic, industrial uses, and
other uses. This provision will allow agricultural producers to
participate in a one-time study of aquifer recharge potential
that will help inform State and local water conservation
investment and policy to aid in managing this critical aquifer.
The study is narrowly focused on a small number of playa lakes
situated on agricultural land over the Ogallala Aquifer.
Playas are temporary wetlands unique to the High Plains
of North America, numbering more than 60,000. Playas not only
serve as the primary source of recharge for the Ogallala
Aquifer, they are the most important wetland type for wildlife
in this region. The Managers encourage the Department to
further recognize the importance of playas through increased
communication to landowners of the benefits of playas and
conservation programs available. The Managers also encourage
the Department to work with the Playa Lakes Joint Venture to
enhance the use of such programs like CRP to help ensure the
protection of playas.
(12) Military Veterans Agricultural Liaison
The House bill authorizes the position and duties of a
Military Veterans Agricultural Liaison at the Department of
Agriculture. (Section 12304)
The Senate amendment provides the Liaison the additional
authority to enter into contracts or cooperative agreements
with the research centers of the Agricultural Research Service,
institutions of higher education or nonprofit organizations for
specific purposes. (Section 12201)
The Conference substitute adopts the Senate provision.
(Section 12304)
(13) Prohibition on keeping GSA leased cars overnight
The House bill prohibits Farm Service Agency employees
that are issued government cars from taking the cars home
overnight unless they are on official travel involving per
diem. (Section 12305)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(14) Noninsured Crop Assistance Program
The House bill allows producers to obtain NAP coverage
that is equivalent to additional coverage provided under
subsections (c) and (h) of the Federal Crop Insurance Act
except the coverage level may not exceed 65 percent. The
provision expands availability of NAP coverage for crops for
which coverage under subsections (c) and (h) of the Federal
Crop Insurance Act are not available and specifically includes
sweet sorghum and biomass sorghum. The provision establishes a
premium payment and application deadline date and requires the
changes to NAP to become effective beginning with the 2015
crop. (Section 12306)
The Senate amendment is similar to the House provision
except the provision excludes crops and grasses used for
grazing, as well as ferns and tropical fish. The provision
increases NAP fees per crop per county, per producer per
county, and the maximum fee amount. The provision provides
additional availability of NAP with respect to producers
suffering losses to their 2012 annual fruit crop grown on a
bush or tree and producers suffering losses in a county covered
by a Secretarial disaster declaration due to freeze and frost.
The provision is repealed effective October 1, 2018 upon which
date the provision shall be construed to have never been
enacted, except the exclusions from coverage provided under the
provision are made permanent. (Section 12204)
The Conference substitute adopts the Senate provision
except that crops and grasses for grazing may receive NAP
coverage equivalent to CAT coverage but not additional
coverage; sweet sorghum and biomass sorghum, including that
which is grown for biofuels, renewable electricity, or biobased
products is covered under NAP; the Secretary may waive the fees
with respect to CAT equivalent NAP for beginning, limited
resource, and socially disadvantaged farmers and these
producers pay 50 percent less than otherwise required for
additional coverage NAP; the applicable pay limit is included
in the calculation of premium; the effective period for the
provision is for the 2014 through 2018 crop years; and the
Federal Crop Insurance Act is amended to exclude CAT coverage
for crops and grasses uses for grazing. (Section 12305)
The Managers would observe that NAP is made available
with respect to crops for which crop insurance has not yet been
made available. The Managers stress that it is the objective of
Congress that all crops, to the maximum extent practicable and
unless otherwise provided for in law, should ultimately be
covered by crop insurance, rather than NAP, where producers pay
actuarially sound premiums in consideration for coverage and
where private sector delivery has proven very effective. The
Managers intend that the additional financial resources and the
adjustments to the policy submission process under section
508(h), the research and development process, and the pilot
program process will achieve this goal.
(15) Ensuring high standards for agency use of scientific information
The House bill requires federal agencies, by January 1,
2014, to have in effect guidelines to ensure and to maximize
the quality, objectivity, utility, and integrity of the
scientific information upon which the agencies rely. It
prohibits any policy decision issued by an agency after January
1, 2014, from taking effect unless such agency has in effect
guidelines for use of scientific information that have been
approved by the Director of the White House Office of Science
and Technology Policy. (Section 12307)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(16) Evaluation required for purposes of prohibition on closure or
relocation of county office for the FSA
The House bill requires a workload assessment before any
Farm Service Agency county office closures take place. (Section
12308)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(17) Acer Access and Development Program
The House bill authorizes grants to state and tribal
governments and research institutions for the purpose of
promoting the domestic maple syrup industry. It authorizes $20
million in appropriated funds for each of fiscal years 2014
through 2018. (Section 12309)
The Senate amendment does not specify that the grants are
run on a competitive basis and does not include research
institutions as eligible for receiving grants. It authorizes
appropriations for fiscal years 2014 and 2015. (Section 12208)
The Conference substitute adopts the House provision.
(Section 12306)
(18) Regulatory review by the Secretary of Agriculture
The House bill requires the Secretary of Agriculture to
review publications that provide notice of Environmental
Protection Agency guidance, policy, memorandums, regulations or
statements, for significant impacts on agricultural entities
and then take certain, specified action. (Section 12310)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment authorizes a standing agriculture-
related committee to provide scientific and technical advice to
the science advisory committee and a report to Congress
regarding the activities of the committee. (Section 12307)
The Managers expect the Administrator to consider
requests received from the House Committee on Agriculture or
the Senate Committee on Agriculture, Nutrition and Forestry in
regard to issues or questions that the Committees believe merit
action by the agriculture-related standing committee.
(19) Animal fighting venture
The House bill amends Section 26(a)(1) of the Animal
Welfare Act to prohibit knowingly attending an animal fighting
venture or causing a minor to attend an animal fighting
venture. Penalties are covered by existing authorities in 18
U.S.C. 49. (Section 12311)
The Senate amendment is the same as the House. It
confirms that penalties for violations are prescribed and
enforced. The amendment sets the penalty for each violation for
attending an animal fighting venture. It also sets the penalty
for causing a minor to attend an animal fighting venture.
(Section 12209)
The Conference substitute adopts the Senate provision
with an amendment. The amendment changes the age of a minor
from a person under the age of 18 years old to a person under
the age of 16 years old. (Section 12308)
The Conference substitute amends the Animal Welfare Act
by providing ``that a dealer or exhibitor shall not be required
to obtain a license as a dealer or exhibitor under this Act if
the size of business is determined by the Secretary to be de
minimus.'' By limiting the scope of dealers and exhibitors who
are required to obtain a license, the conference substitute
allows the Secretary of Agriculture to focus the U.S.
Department of Agriculture Animal and Plant Health Inspection
Service's limited budget and inspection and enforcement staff
on entities that pose the greatest risks to animal welfare and
public safety. USDA has found that no license is required for
small-scale breeders of certain animals (i.e., those that
maintain four or fewer breeding cats and dogs and who sell only
the offspring of those animals which were born and raised on
the premises for pets or exhibition) and the Conference
substitute codifies this exemption, allowing USDA to determine
that animal breeders who raise animals on their own premises
need not obtain a license if the number of animals they breed
or sell, or the gross annual dollar amounts earned from such
activities, are so minor as to merit disregard. The Managers
continue to recognize the importance of ensuring that all
animals bred, transported, and sold in (or substantially
affecting) interstate commerce are humanely treated. The
Conference substitute also allows USDA to determine that
certain exhibition businesses are de minimus. An exhibitor's
business must not be considered de minimus merely because the
facility operates as a non-profit corporation, nor is the
exhibition of a small number of dangerous animals (including,
but not limited to, big cats, bears, wolves, nonhuman primates,
or elephants) de minimus.
The Managers expect APHIS to complete this rulemaking
expeditiously and would suggest a timeframe not to exceed one
year from the date of enactment in order that the agency begin
receiving the benefit the policy provides related to resource
allocation. Furthermore, by freeing up resources and more
effectively focusing its regulatory program, the Managers
observe that this policy eliminates a direct obstacle to
lifting the stay on the agency's contingency rule and issuance
of the proposed rule to regulate bird dealers and exhibitors,
and expect action to be taken on these rules without delay.
The Animal Welfare Act (AWA or the Act, 7 U.S.C. 2131 et
seq.) seeks to ensure the humane handling, care, treatment, and
transportation of certain animals that are sold at wholesale
and retail for use in research facilities, for exhibition
purposes, or for use as pets by means of federal licensing and
inspection. A revised definition of retail pet store included
in the Final Rule published by USDA on September 10, 2013, and
effective November 18, 2013, restored and amended the exemption
in Sec. 2.1(a)(3)(vii) so that any person including, but not
limited to, purebred dog or cat fanciers, who maintains a total
of four or fewer breeding female dogs, cats, and/or small
exotic or wild mammals, and who sells, at retail, only the
offspring of these dogs, cats, and/or small exotic or wild
mammals, which were born and raised on his or her premises, for
pets or exhibition, and is not otherwise required to obtain a
license, is also considered a retail pet store for regulatory
purposes.
The Managers are aware of confusion among the regulated
industry and request clarification of two principles pertaining
to the sale of pets: (1) Current regulatory language uses the
term ``breeding female'' which does not appear in statute and
thus lacks statutory direction. The Managers urge APHIS to
clarify that only those female animals capable of reproduction
and actively being used in a breeding program qualify as
breeding females. (2) The Managers also recommend clarifying
that USDA oversight of such sales pertains to those
transactions in interstate commerce as provided for under the
Commerce Clause (U.S. Const. amend. I, Sec. 8.)] [and as
referenced in Sec. 2132(c) of the Animal Welfare Act and
regulated under authority of the United States Department of
Agriculture].
(20) Prohibition against interference by state and local governments
with production or manufacture of items in other states
The House bill prohibits any state or local government
from setting standards or conditions on the production or
manufacture of agricultural products and preventing interstate
sales of such agricultural products. The term ``agricultural
product'' is as defined in the Agricultural Marketing Act of
1946. (Section 12312)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(21) Increased protection for agricultural interests in the Missouri
River basin
The House bill directs the Secretary to take action to
promote immediate increased flood protection to agricultural
interests in the Missouri River basin. (Section 12313)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(22) Increased protection for agricultural interests in the Black Dirt
region
The House bill directs the Secretary to take action to
promote immediate increased flood protection for agricultural
interest around the Wallkill River and the Black Dirt region.
(Section 12314)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(23) Protection of honey bees and other pollinators
The House bill requires the Secretary to carry out
activities to protect and ensure the long-term viability of
populations of honey bees, wild bees, and other beneficial
insects of agricultural crops, horticultural plants, wild
plants, and other plants. The bill directs the Secretary to
establish a task force to coordinate Federal efforts addressing
the decline in bee health and assess Federal efforts to
mitigate pollinator loss. It requires the Secretary to report
to Congress within 180 days from the date of enactment. The
Secretary may conduct feasibility studies to consider
relocating and modernizing pollinator research labs. (Section
12315)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(24) Produce represented as grown in the US when it is not in fact
grown in the US
The House bill requires the Secretary to provide
technical assistance to U.S. Customs and Border Protection for
identifying produce that is falsely represented as grown in the
United States. Requires the Secretary to submit to the
Agriculture Committees a report on produce represented as grown
in the U.S. (Section 12316)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision.
(Section 12309)
(25) Urban agricultural coordination
The House bill requires the Secretary to compile a list
of programs for which urban farmers can apply, to adjust
programs to enable urban farmers to participate, and to
streamline the process for urban farmer participation. (Section
12317)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Urban agriculture may include the use of backyard, roof-
top, and balcony gardening, community gardening in vacant lots
and parks, roadside urban fringe agriculture and livestock
grazing in open space.
The Managers are aware of the importance of urban
agriculture to many urban residents, and its potential for
increased entrepreneurship, work opportunities, access to
nutritious food, and improved quality of life.
The Managers are also aware that USDA has a number of
resources and tools available that are applicable to urban
farmers. The Managers encourage the Secretary to ensure that
relevant USDA employees are knowledgeable regarding ways in
which urban farmers can participate in their programs and
include urban farmers in their ongoing outreach efforts to
build awareness of the assistance and services that USDA can
offer.
The Managers also encourage USDA to consider additional
ways to expand its support of urban agriculture, which may take
the form of economic analysis, statistical reports,
dissemination of best practices, in addition to the vast
quantity of knowledge and assistance already available through
USDA's research, education and extension programs.
(26) Sense of Congress on increased business opportunities for black
farmers, women, minorities, and small business
The House bill includes the sense of Congress that the
Federal Government should increase the number of contracts
awarded to black farmers, businesses owned and controlled by
women, businesses owned and controlled by minorities, and small
business concerns. (Section 12318)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
The Managers expect the Secretary to continue efforts to
ensure that women and minority owned and controlled businesses
and small businesses have the opportunity to do business with
the Department of Agriculture. The Conference Substitute
continues efforts to ensure that socially-disadvantaged,
beginning, and limited resource farmers and ranchers are aware
of the programs and services available to them through USDA
offices and initiatives.
(27) Sense of Congress on agricultural security problems
The House bill includes the sense of Congress that
nutrients and chemicals play an important role in agricultural
production. The Secretary should coordinate with the Department
of Homeland Security to develop regulations and procedures to
handle these agricultural chemicals. (Section 12319)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
Federal agencies have recently proposed a number of
regulations in an effort to secure potentially dangerous
amounts of chemical ingredients without hampering legitimate
use in commercial grade fertilizers. While the Managers support
regulations to properly secure, store and handle such
ingredients, there are valid concerns that proposed regulations
could unnecessarily impede American farmers' access to
essential crop input products.
The Managers remind the Office of Homeland Security and
Emergency Coordination within the Department of Agriculture's
Office of the Secretary to actively work with the Federal
departments and agencies responsible for the development and
implementation of security programs that affect the
availability, storage, transportation and use of a variety of
chemicals and products used in agriculture.
The Managers recommend that the Office regularly engage
with the Federal agencies responsible for establishing security
programs to ensure they have the information necessary from
manufacturers, retailers of crop input products, and the
general farm community to develop procedures for effective
security administration and enforcement while minimizing the
potential for adverse impact on domestic agricultural
productivity.
(28) Report on water sharing
The House bill requires the Secretary of State to submit
a report to Congress on Mexico's Rio Grande water deliveries to
the U.S., and the benefits to the U.S. of cooperation with
Mexico on reservoir conservation in the Colorado River basin.
The report is due 120 days from the date of enactment. (Section
12320)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment to strike from the report the paragraph relating
to the benefits to the U.S. (Section 12310)
(29) Scientific and economic analysis of the FDA Food Safety
Modernization Act
The House bill requires the Secretary of Health and Human
Services to provide a scientific economic analysis for the Food
Safety Modernization Act (FSMA) before enforcing final
regulations and to report to the Agriculture Committees on the
impact of implementation of FSMA one year after date of
enactment of the Farm Bill. (Section 12321)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the House provision with
an amendment. The amendment eliminates the prohibition of
enforcement of the regulations and instead simply requires the
Secretary, when publishing the final rule on Standards for the
Growing, Harvesting, Packing, and Holding of Produce for Human
Consumption, to include analysis of the information used in
promulgating the final rule; an analysis on the economic impact
of the rule; and a plan to evaluate any impacts and respond to
producer concerns. The amendment further limits the reporting
requirement from an annual report on the FDA Food Safety
Modernization Act to two reports on the plan to evaluate the
impact of the produce provisions and the evaluation and
response to concerns, specifically. (Section 12311)
(30) Improved Department of Agriculture consideration of economic
impact of regulation on small business
The House bill requires the Secretary to complete the
procedures consistent with 5 U.S.C. 609(b) when it promulgates
any rule that will have a significant economic impact on small
entities. (Section 12322)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(31) Silvicultural activities
The House bill restores the specified silvicultural
activities to nonpoint source status by exempting the listed
activities from permits and the discretionary authority of the
Environmental Protection Agency (EPA) under section 402(p)(6)
of the Clean Water Act (CWA). (Section 12323)
The Senate bill contains no comparable provisions.
The Conference substitute adopts the House provision with
an amendment. The amendment clarifies that the exemption
applies to permits but does not extend to other authorities,
including CWA section 402(p)(6). It further provides that the
specific silvicultural activities are excluded from citizen
enforcement actions under section 505(a) of the CWA (Section
12313)
The managers believe that that substitute will help
resolve legal and economic uncertainty, and also help ensure
that forests continue to provide important public benefits,
like good paying jobs, renewable consumer products, and outdoor
recreational opportunities.
The Conference substitute provides legal and economic
certainty by codifying the EPA's long-standing policy that the
specified silvicultural activities do not require a National
Pollutant Discharge Elimination System (NPDES) permit. The
amendment explicitly excludes the specified activities from the
NPDES permit requirement. The substitute also recognizes that
these activities are standard industry practice, which refers
to normal silviculture as practiced in each state.
The substitute leaves EPA authority to take measures
regarding these activities if future circumstances demonstrate
the need to address adverse impacts to water quality caused by
point source discharges of stormwater from silvicultural
activities. The Managers expect the Agency to exercise this
authority based on identified threats to water quality.
The Conference substitute amends the savings provisions.
The House bill reiterated clarification provided in the EPA
Silviculture Rule that the amendment does not affect the
regulation of dredged and fill discharges under CWA section
404. The Managers clarify that nothing in the provision should
be construed to affect any existing NPDES permit requirement,
nor should it be construed to affect any other application of
Federal law to these activities.
By defining these silvicultural activities as nonpoint
sources in 1976, EPA effectively excluded them from citizen
enforcement actions under CWA section 505. The Conference
substitute recognizes this by excluding any program adopted by
EPA under section 402(p)(6) for the specified silvicultural
activities from citizen enforcement actions under CWA section
505. The Managers ensure that no EPA measure adopted to address
runoff associated with the specified silvicultural activities
as expressly described in this section will be considered an
effluent limitation subject to citizen enforcement actions
under CWA section 505.
(32) Applicability of spill prevention, control, and countermeasure
rule
The House bill amends the volume threshold that would
require a Professional Engineer to certify a Spill Prevention,
Control, and Countermeasure (SPCC) plan to farms with
individual aboveground storage tanks larger than 10,000
gallons, aggregate aboveground storage of greater than 42,000
gallons, or a history of spills. Farms with aggregate
aboveground storage of more than 10,000 gallons, but less than
42,000 gallons, and no spill history may self-certify. Farms
with less than 10,000 gallons and no spill history are exempt
from all SPCC requirements. For calculating aboveground storage
capacity, containers on separate parcels of less than 1,320
gallons and containers approved by FDA for livestock feed are
exempt. (Section 12324)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(33) Agricultural producer information disclosure
The House bill prohibits the Environmental Protection
Agency (EPA) from publicly disclosing names, telephone numbers,
email addresses, physical addresses, GPS coordinates, or other
identifying information of any owner, operator, or employee of
an agricultural or livestock operation. The prohibition does
not apply when: (1) information is in a statistical or
aggregated form at the county or higher level; (2) the producer
consents; or (3) a state agency has the authority to collect
data. EPA is prohibited from requiring information disclosure
for the purposes of the approval of a permit, practice, or
program administered by the agency. (Section 12325)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(34) Report on National Ocean Policy
The House bill requires that the Inspector General of
USDA submit to the Agriculture Committees, within 90 days after
enactment, a report on the activities and resources expended on
Executive Order 13547 since July 19, 2010. The report shall
include any budget requests for FY2014 for the implementation
of the executive order. (Section 12326)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(35) Sunsetting of programs
The House bill sunsets all discretionary programs in the
Farm Bill upon expiration of the five-year authorization.
(Section 12327)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
(36) Information gathering
The Senate amendment requires the disclosure of
information to state and local agencies or subdivisions as
needed to implement state programs. Information can only be
used by the state and is not subject to citizen request.
(Section 12202)
The House bill contains no comparable provision.
The Conference substitute adopts the House provision.
(37) Bioenergy coverage in noninsured crop assistance program
The Senate amendment adds industrial crops grown
expressly for the purpose of producing a feedstock for
renewable biofuel, renewable electricity, or biobased products
to the list of included crops under the Noninsured Crop
Assistance Program. (Section 12205)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision.
(Section 12305)
(38) Pima Cotton Trust Fund
The Senate amendment establishes a trust fund in the
Treasury, funded through appropriations, for the Secretary to
make payments to nationally recognized associations that
promote pima cotton use, yarn spinners who produced ring spun
cotton from January 1, 1998 to December 21, 2003, and
manufacturers who cut and sew cotton shirts and used imported
cotton fabric from January 1, 1998 through July 1, 2003.
Payments to spinners and manufacturers are based on a
production ratio and must be certified through affidavit.
(Section 12210)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment alters the funding mechanism
for the Trust Fund to use funds from the Commodity Credit
Corporation. (Section 12314)
(39) Agricultural Wool Apparel Manufacturers Trust Fund
The Senate amendment establishes a trust fund in the
Treasury, funded through appropriations, for the Secretary to
make payments to eligible manufacturers under paragraphs (3)
and (6) of section 4002(c) of the Wool Suit and Textile Trade
Extension Act of 2004. Payments are to be made to eligible
manufacturers for years 2010-2013, no later than 30 days after
funds are transferred to the trust fund. For years 2014-2019,
payments are to be made no later than April 15 of the year of
payment. (Section 12211)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision
with an amendment. The amendment alters the funding mechanism
for the Trust Fund to use funds from the Commodity Credit
Corporation. (Section 12315)
(40) Citrus Disease Research and Development Trust Fund
The Senate amendment establishes a trust fund in the
Treasury, funded through appropriations, for the Secretary to
make payments to entities engaged in 1) scientific research on
diseases and pests; 2) the dissemination and commercialization
of relevant information, techniques, or technology to solve
citrus production disease or pest problems; and 3) the Citrus
Disease Research and Development Trust Fund Advisory Board, if
established. The Citrus Advisory Board would have five members
from Florida, three from Arizona or California, and one from
Texas. Not more than 5 percent of the Citrus Trust Fund may be
used for the operations of the advisory board. The Secretary
shall give strong deference to funding research projects on the
proximity of citrus producers and the effects of such diseases
as huanglongbing (citrus greening). (Section 12212)
The House bill contains no comparable provision.
The Conference substitute amends and moves this provision
to Title VII. (Sections 7103 & 7306)
Subtitle D--Chesapeake Bay Accountability and Recovery
(41) Chesapeake Bay Accountability Act of 2013
The House bill requires the Director of OMB to submit to
Congress a crosscut budget on federal and state restoration
activities in the Chesapeake Bay. It requires the Administrator
of the Environmental Protection Agency (EPA) to develop a plan
to provide assistance to Chesapeake Bay States to employ
adaptive management in carrying out restoration activities. The
Administrator shall update the plan every two years and report
annually to Congress on the implementation of the plan. The
amendment also requires the Administrator to appoint an
Independent Evaluator to review and report on restoration
activities and the use of adaptive management in the Chesapeake
Bay watershed. (Section 12401)
The Senate amendment contains no comparable provision.
The Conference substitute adopts the Senate provision.
The Managers continue to support the efforts of farmers
in the Chesapeake Bay watershed to reduce nutrient and sediment
runoff. The Managers made significant investments in Title II
programs aimed at providing financial and technical assistance
to producers within the watershed. The Managers note the newly-
created Regional Conservation Partnership Program which will
provide USDA additional authorities to promote conservation
practices within the watershed.
COMPLIANCE WITH RULES OF THE HOUSE OF REPRESENTATIVES AND SENATE
REGARDING EARMARKS AND CONGRESSIONAL DIRECTED SPENDING ITEMS
Pursuant to clause 9 of rule XXI of the Rules of the
House of Representatives and Rule XLIV of the Standing Rules of
the Senate, neither this conference report nor the accompanying
joint statement of managers contains any congressional
earmarks, congressionally directed spending items, limited tax
benefits, or limited tariff benefits, as defined in such rules.
From the Committee on Agriculture, for
consideration of the House amendment and the
Senate amendment, and modifications committed
to conference:
Frank D. Lucas,
Randy Neugebauer,
Mike Rogers of Alabama,
Michael K. Conaway,
Glenn Thompson of Pennsylvania,
Austin Scott,
Eric A. ``Rick'' Crawford,
Martha Roby,
Kristi L. Noem,
Jeff Denham,
Rodney Davis of Illinois,
Collin C. Peterson,
Mike McIntyre,
Jim Costa,
Timothy J. Walz,
Kurt Schrader,
Suzan K. DelBene,
Gloria Negrete McLeod,
Filemon Vela,
From the Committee on Foreign Affairs, for
consideration of title III of the House
amendment, and title III of the Senate
amendment, and modifications committed to
conference:
Edward R. Royce,
Tom Marino,
Eliot L. Engel,
From the Committee on Ways and Means, for
consideration of secs. 1207 and 1301 of the
House amendment, and secs. 1301, 1412, 1435,
and 4204 of the Senate amendment, and
modifications committed to conference:
Dave Camp,
Sam Johnson of Texas,
For consideration of the House amendment and
the Senate amendment, and modifications
committed to conference:
Steve Southerland II,
Marcia L. Fudge,
Managers on the Part of the House.
Debbie Stabenow,
Patrick J. Leahy,
Tom Harkin,
Max Baucus,
Sherrod Brown,
Amy Klobuchar,
Michael F. Bennet,
Thad Cochran,
Saxby Chambliss,
John Boozman,
John Hoeven,
Managers on the Part of the Senate.