S. 2228Senate110th Congress (2007-2009)In Committee

Farm, Ranch, Equity, Stewardship, and Health Act of 2007

Introduced October 24, 2007

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

October 24, 2007

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SenateIntro Referral

Introduced in Senate

October 24, 2007

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

October 24, 2007

Floor Debate

24 members

What members said about S. 2228 on the floor

11 Republicans13 Democrats
Lamar Alexander
Sen. Lamar AlexanderR-TN · Dec 11, 2007

Madam President, may I ask that I be notified when I have 5 minutes remaining? First, I would like to congratulate the Senator from New Hampshire for his, as usual, eloquent remarks, but I would like…

Mike Crapo
Sen. Mike CrapoR-ID · Dec 11, 2007

Mr. President, I seek recognition under the unanimous consent agreement. Mr. President, I come today to speak in general about the farm bill, which we are debating, more correctly called the Food and…

Judd Gregg
Sen. Judd GreggR-NH · Dec 11, 2007

Madam President, I have no objection. I want to make sure we are working off the same page on amendments to be offered. I will reserve the right to object to make sure we are on the same page. Madam…

Richard G. Lugar
Sen. Richard G. LugarR-IN · Dec 11, 2007

Madam President, I wish to acknowledge the importance of the arguments that have been forwarded by my colleagues, especially those comments most recently by the distinguished ranking member of the…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Nov 1, 2007

Mr. President, today I am introducing a bill to increase the number of full-time personnel of the Consumer Product U.S. Safety Commission assigned to duty stations at U.S. ports of entry or to…

Show 8 more
Tom Harkin
Sen. Tom HarkinD-IA · Dec 11, 2007

Reserving the right to object. Mr. President, I discussed this with my colleague earlier, but we are also working on a unanimous consent request. There is another amendment we might want to insert.…

Kent Conrad
Sen. Kent ConradD-ND · Dec 11, 2007

Mr. President, how much time remains? I wish to be alerted by the Chair when I have consumed 10 minutes. Mr. President, I want to respond to the proposal by Senator Lugar and Senator Lautenberg to…

Saxby Chambliss
Sen. Saxby ChamblissR-GA · Dec 11, 2007

Mr. President, I wish to propose a unanimous consent request. First, I wish to let everybody know where we are. A vote was originally scheduled for sometime around 3:45 p.m. It is likely to be a…

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Dec 11, 2007

Mr. President, how much time remains? Mr. President, I suggest the absence of a quorum. Mr. President, before I speak to the amendment Senator Lugar and I have offered, I wish to express my thanks to…

John F. Kerry
Sen. John F. KerryD-MA · Nov 1, 2007

Mr. President, I am pleased today to be introducing legislation, the Small Business Contracting Revitalization Act of 2007, designed to protect the interests of small businesses in the Federal…

Amy Klobuchar
Sen. Amy KlobucharD-MN · Dec 11, 2007

Mr. President, as has been previously agreed, I ask unanimous consent to speak as in morning business for 10 minutes. Mr. President, I first again wish to commend Senator Harkin, Senator Chambliss,…

Jeff Sessions
Sen. Jeff SessionsR-AL · Dec 11, 2007

I call up amendment No. 3596. Mr. President, I believe I will have an hour debate on this, 30 minutes on each side. I ask I be recognized for 10 minutes tonight and be notified when that 10 minutes…

Debbie Stabenow
Sen. Debbie StabenowD-MI · Dec 11, 2007

Mr. President, I wish to enter into a unanimous consent agreement in terms of the order of speakers. I ask unanimous consent that after Senator Barrasso speaks for 7 minutes, that I be recognized for…

Show 11 more
Ron Wyden
Sen. Ron WydenD-OR · Dec 11, 2007

Mr. President, I ask unanimous consent to set aside the pending amendment and call up amendment No. 3736. Mr. President, I ask unanimous consent to proceed at this time. Mr. President, it is my…

John Barrasso
Sen. John BarrassoR-WY · Dec 11, 2007

Mr. President, agriculture is one of the most trusted, respected, and revered ways of life in America. It is the farmers and the ranchers who feed this country. Wyoming agriculture is a…

Sherrod Brown
Sen. Sherrod BrownD-OH · Dec 11, 2007

I move to lay that motion on the table. The motion to lay on the table was agreed to. Madam President, on behalf of Senators Sununu, McCaskill, Durbin, and Schumer, I am proud today to offer the…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Nov 1, 2007

Mr. President, today I am very pleased to be joined by Senators Cantwell and Feinstein in introducing legislation to eliminate from the Federal tax code the ``Percentage Depletion Allowance'' for…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Nov 1, 2007

Mr. President, I rise today to introduce the Plain Language in Government Communications Act of 2007. I am pleased that Senators Claire McCaskill, Tom Carper, and Carl Levin have joined me as…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Nov 1, 2007

Mr. President. I rise to introduce the National Bombing Prevention Act of 2007, an important measure to strengthen our domestic defenses against terrorist attacks using explosives. Terror bombings…

Carl Levin
Sen. Carl LevinD-MI · Nov 1, 2007

Mr. President, today, I am introducing the Thunder Bay National Marine Sanctuary and Underwater Preserve Boundary Modification Act to expand the boundaries of the existing sanctuary. Created as a…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Nov 1, 2007

Mr. President, I rise today to join my Ranking Member on the Homeland Security and Governmental Affairs Committee, Senator Collins, in introducing bipartisan legislation to strengthen our Nation's…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · Dec 11, 2007

Reserving the right to object, Madam President---- Madam President, I wanted to ask the Senator for whom the 30 minutes is being reserved, and the managers, if they would grant me 6 minutes before…

Bill Nelson
Sen. Bill NelsonD-FL · Nov 1, 2007

Mr. President, today, joined by Senator Whitehouse, I am introducing the Voter Confidence and Increased Accessibility Act of 2007. As we enter the month of November, next year's national election is…

John E. Sununu
Sen. John E. SununuR-NH · Dec 11, 2007

Mr. President, it was 8 degrees in Manchester this morning. Home heating oil costs $3.27 per gallon. These are the cold, hard facts of winter in New England--8 degrees; $3.27 per gallon. As we…

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued October 24, 2007

II

110th CONGRESS

1st Session

S. 2228

IN THE SENATE OF THE UNITED STATES

October 24, 2007

Mr. Lugar (for himself, Mr. Lautenberg, Mr. Menendez, Mr. Cardin, Mr. Whitehouse, Mr. Reed, Mr. Hatch, and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To extend and improve agricultural programs, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Farm, Ranch, Equity, Stewardship, and Health Act of 2007.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE I—Risk management

Subtitle A—Federal crop insurance program

Sec. 1001. Controlling crop insurance program costs.

Sec. 1002. Supplemental deductible coverage.

Sec. 1003. Revenue-based safety net.

Sec. 1004. Whole farm insurance.

Sec. 1005. Crop insurance education assistance.

Sec. 1006. Agricultural management assistance program.

Subtitle B—Risk management accounts

Sec. 1101. Definitions.

Sec. 1102. Risk management account contracts.

Sec. 1103. Treatment of risk management account accounts on transfer.

Sec. 1104. Administration.

Sec. 1105. Commodity programs.

TITLE II—Conservation

Subtitle A—Conservation reserve

Sec. 2001. Conservation reserve program.

Subtitle B—Wetlands reserve program

Sec. 2101. Wetlands reserve program.

Subtitle C—Conservation security program

Sec. 2201. Conservation security program.

Subtitle D—Environmental quality incentives program

Sec. 2301. Environmental quality incentives program.

Subtitle E—Grassland reserve program

Sec. 2401. Grassland reserve program.

Subtitle F—Cooperative conservation partnership initiative

Sec. 2501. Cooperative conservation partnership initiative.

Sec. 2502. Minimum base allocation to States in funding of certain Department of Agriculture conservation programs.

Subtitle G—Other conservation programs

Sec. 2601. Pilot program for comprehensive conservation planning.

Sec. 2602. Pilot program for nutrient reduction and sediment control in the Chesapeake Bay watershed.

Subtitle H—Funding and administration

Sec. 2701. Funding and administration.

Sec. 2702. Conservation application process.

Sec. 2703. Exclusion of payments under Department of Agriculture conservation programs from adjusted gross income limitation.

TITLE III—Specialty crops

Subtitle A—Marketing

Sec. 3001. Grants to States to enhance competitiveness of specialty crops.

Sec. 3002. Fruit and vegetable nutrition promotion program.

Sec. 3003. Farmers’ market promotion program.

Sec. 3004. National organic certification and transition cost share program.

Subtitle B—Trade

Sec. 3101. Technical assistance for specialty crops.

Subtitle C—Nutrition

Sec. 3201. Expansion of fresh fruit and vegetable program.

Sec. 3202. Authorization level for farm-to-cafeteria activities.

Sec. 3203. WIC farmers' market nutrition program.

Sec. 3204. Seniors farmers’ market nutrition program.

Sec. 3205. Use of

Dietary Guidelines for Americans in special nutrition programs and school lunch programs.

Sec. 3206. Food stamp fruit and vegetable electronic benefit transfer pilot project.

Sec. 3207. Purchases of locally produced foods.

Sec. 3208. Assistance for community food projects.

Sec. 3209. Increased purchases of fruits and vegetables.

Subtitle D—Research

Sec. 3301. National specialty crops development initiative grant program.

Sec. 3302. Organic agriculture research and extension initiative.

Sec. 3303. National Aquaculture Act of 1980.

Sec. 3304. National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985.

Subtitle E—Invasive pest research and disease response

Sec. 3401. Threat identification and mitigation program.

Sec. 3402. Clean plant network.

Sec. 3403. Office of Pest Management Policy.

Sec. 3404. Food safety initiatives.

Subtitle F—Miscellaneous

Sec. 3501. Transportation infrastructure cost reduction grant program.

Sec. 3502. Census of specialty crops.

TITLE IV—Trade

Sec. 4001. McGovern-Dole International Food for Education and Child Nutrition Program.

TITLE V—Nutrition

Subtitle A—Food stamp program

Sec. 5001. Exclusion of combat-related military pay from countable income.

Sec. 5002. Ending benefit erosion.

Sec. 5003. Supporting working families with child care expenses.

Sec. 5004. Retirement and education savings exclusion.

Sec. 5005. Food stamp eligibility for unemployed adults.

Sec. 5006. Availability of commodities for the emergency food assistance program.

Subtitle B—Food service industry job training for low-income adults

Sec. 5101. Short title.

Sec. 5102. Definitions.

Sec. 5103. Food employment empowerment and development program.

Sec. 5104. Hunger-free communities.

Subtitle C—Other programs

Sec. 5201. Summer food service program for children.

Sec. 5202. Joint nutrition monitoring and related research activities.

TITLE VI—Rural development

Sec. 6001. Rural collaborative investment program.

TITLE VII—Forestry

Subtitle A—Cooperative Forestry Assistance Act of 1978

Sec. 7001. Community forest land program.

Subtitle B—Healthy Forests Restoration Act of 2003

Sec. 7101. Healthy forests reserve program.

TITLE VIII—Energy

Sec. 8001. Federal procurement of biobased products.

Sec. 8002. Biorefinery development grants.

Sec. 8003. Rural energy innovation program.

Sec. 8004. Rural Energy for America Program.

Sec. 8005. Biomass research and development.

TITLE IX—Use of savings for deficit reduction

Sec. 9001. Sense of Congress regarding use of savings for deficit reduction.

2.

Definition of Secretary

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

I

Risk management

A

Federal crop insurance program

1001.

Controlling crop insurance program costs

(a)

Administrative fee for catastrophic risk protection

Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended by striking subparagraph (A) and inserting the following:

(A)

Basic fee

(i)

In general

Except as provided in clause (ii), each producer shall pay an administrative fee for catastrophic risk protection in an amount that is, as determined by the Corporation, equal to 25 percent of the premium amount for catastrophic risk protection established under subsection (d)(2)(A) per crop per county.

(ii)

Maximum amount

The total amount of administrative fees for catastrophic risk protection payable by a producer under clause (i) shall not exceed $5,000 for all crops in all counties.

.

(b)

Share of risk

Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(3)) is amended by striking paragraph (3) and inserting the following:

(3)

Share of risk

The reinsurance agreements of the Corporation with a reinsured company shall require the reinsured company to provide to the Corporation 30 percent of the cumulative underwriting gain or loss of the reinsured company.

.

(c)

Reimbursement rate

Section 508(k)(4)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is amended by striking clause (ii) and inserting the following:

(ii)

for each of the 2008 and subsequent reinsurance years, 15 percent of the premium used to define loss ratio.

.

1002.

Supplemental deductible coverage

(a)

In general

Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4) is amended—

(1)

by striking The level of coverage and inserting the following:

(A)

Basic coverage

The level of coverage

; and

(2)

by adding at the end the following:

(B)

Supplemental coverage

(i)

In general

Notwithstanding paragraph (3) and subparagraph (A), the Corporation may offer supplemental coverage, based on an area yield and loss basis, to cover that portion of a crop loss not covered under the individual yield and loss basis plan of insurance of a producer, including any revenue plan of insurance with coverage based in part on individual yield and loss.

(ii)

Limitation

The sum of the indemnity paid to the producer under the individual yield and loss plan of insurance and the supplemental coverage may not exceed 100 percent of the loss incurred by the producer for the crop.”

(iii)

Administrative and operating expense reimbursement

Notwithstanding subsection (k)(4), the reimbursement rate for approved insurance providers for the supplemental coverage shall equal 6 percent of the premium used to define the loss ratio.

(iv)

Direct coverage

If the Corporation determines that it is in the best interests of producers, the Corporation may offer supplemental coverage as a Corporation endorsement to existing plans and policies of crop insurance authorized under this title.

(v)

Payment of portion of premium by Corporation

Notwithstanding subsection (e), the amount of the premium to be paid by the Corporation for supplemental coverage offered pursuant to this subparagraph shall be determined by the Corporation, but may not exceed the sum of—

(I)

50 percent of the amount of premium established under subsection (d)(2)(C)(i); and

(II)

the amount determined under subsection (d)(2)(C)(ii) for the coverage level selected to cover operating and administrative expenses.

.

(b)

Conforming amendments

Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended—

(1)

by striking additional coverage the first place it appears and inserting additional and supplemental coverages; and

(2)

by adding at the end the following:

(C)

Supplemental coverage

In the case of supplemental coverage offered under subsection (c)(4)(B), the amount of the premium shall—

(i)

be sufficient to cover anticipated losses and a reasonable reserve; and

(ii)

include an amount for operating and administrative expenses, as determined by the Corporation on an industry-wide basis as a percentage of the amount of the premium used to define loss ratio.

.

1003.

Revenue-based safety net

(a)

Establishment

Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the end the following:

(11)

Group risk income protection and group risk protection

The Corporation shall offer, at no cost to a producer, revenue and yield coverage plans that allow producers in a county to qualify for an indemnity if the actual revenue or yield per acre in the county in which the producer is located is below 85 percent of the average revenue or yield per acre for the county, for—

(A)

a producer with an average adjusted gross income (as defined in section 1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a))) of less than $250,000; and

(B)

each agricultural commodity for which a futures price is available, to the extent the coverage is actuarially sound.

.

(b)

Premiums

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 a group risk income protection and group risk protection offered under subsection (c)(11) beginning in fiscal year 2009, and the whole farm insurance plan offered under subsection (c)(12) beginning in fiscal year 2010, the entire amount of the premium for the plan shall be paid by the Corporation.

.

1004.

Whole farm insurance

(a)

Establishment

Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) (as amended by section 1003(a)) is amended by adding at the end the following:

(12)

Whole farm insurance plan

The Corporation shall offer, at no cost to a producer described in paragraph (11), a whole farm insurance plan that allows the producer to qualify for an indemnity if actual gross farm revenue is below 80 percent of the average gross farm revenue of the producer.

.

(b)

Adjusted gross revenue insurance pilot program

Section 523(e) of the Federal Crop Insurance Act (7 U.S.C. 1523(e)) is amended—

(1)

in paragraph (1), by striking 2004 and inserting 2014;

(2)

in paragraph (2), by striking subparagraph (A) and inserting the following:

(A)

In general

In addition to counties otherwise included in the pilot program, the Corporation shall include in the pilot program for each of the 2010 through 2014 reinsurance years all States and counties that meet the criteria for selection (pending required rating), as determined by the Corporation.

; and

(3)

by adding at the end the following:

(3)

Eligible producers

The Corporation shall permit the producer of any type of agricultural commodity (including a producer of specialty crops, floricultural, ornamental nursery, and Christmas tree crops, turfgrass sod, seed crops, aquacultural products (including ornamental fish), sea grass and sea oats, and industrial crops) to participate in a pilot program established under this subsection.

.

(c)

Prevention of duplication

Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) (as amended by subsection (a)) is amended by adding at the end the following:

(13)

Prevention of duplication

The Administrator of the Risk Management Agency and Administrator of the Farm Service Agency shall cooperate to ensure, to the maximum extent practicable, that producers on a farm are not compensated through the revenue counter-cyclical payment program and under this title for the same loss, including by reducing crop insurance indemnity payments by the amount of the revenue counter-cyclical payments.

.

1005.

Crop insurance education assistance

(a)

Partnerships for risk management education

Section 524(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)) is amended—

(1)

in subparagraph (B), by striking A grant and inserting Subject to subparagraph (E), a grant; and

(2)

by adding at the end the following:

(E)

Allocation to States

The Secretary shall allocate funds made available to carry out this subsection for each fiscal year in a manner that ensures that grants are provided to eligible entities in States based on the ratio that the value of agricultural production of each State bears to the total value of agricultural production in all States, as determined by the Secretary.

.

(b)

Funding

Section 524(a)(4) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is amended by striking subparagraph (B) and inserting the following:

(B)

for the partnerships for risk management education program established under paragraph (3)—

(i)

$20,000,000 for fiscal year 2008, of which not less than $15,000,000 shall be used to provide educational assistance with respect to whole farm and adjusted gross revenue insurance plans;

(ii)

$15,000,000 for fiscal year 2009, of which not less than $10,000,000 shall be used to provide educational assistance described in clause (i);

(iii)

$10,000,000 for fiscal year 2010, of which not less than $5,000,000 shall be used to provide educational assistance described in clause (i); and

(iv)

$5,000,000 for fiscal year 2011 and each fiscal year thereafter.

.

1006.

Agricultural management assistance program

Section 524(b)(4)(B)) of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended—

(1)

in clause (ii), by striking fiscal years 2003 through 2007 and inserting fiscal years 2008 through 2014; and

(2)

in clause (iii)—

(A)

by striking fiscal years 2004 through 2007 and inserting fiscal years 2008 through 2014;

(B)

in subclause (I), by striking $14,000,000 and inserting $9,500,000; and

(C)

in subclause (III), by striking $5,000,000 and inserting $9,500,000.

B

Risk management accounts

1101.

Definitions

In this subtitle:

(1)

Adjusted gross revenue

The term adjusted gross revenue, with respect to a farm of an operator or producer, means the adjusted gross income of the farm, as determined by the Secretary, from the sale or transfer of eligible commodities of the farm, as calculated—

(A)

taking into consideration the gross receipts (including insurance indemnities) from each sale;

(B)

including all farm payments received by the operator or producer from any Federal, State, or local government agency relating to the eligible commodities;

(C)

by deducting the cost or basis of any eligible livestock or other item purchased for resale, such as feeder livestock, by the farm;

(D)

excluding any revenue that does not arise from the sale of eligible commodities of the farm, such as revenue associated with the packaging, merchandising, marketing, or reprocessing beyond what is typically carried out by a producer of the eligible commodity, as determined by the Secretary; and

(E)

using such adjustments, additions, and additional documentation as the Secretary determines to be appropriate, as presented on—

(i)

a schedule F form of the Federal income tax returns of the operator or producer; or

(ii)

a comparable tax form relating to the farm, as approved by the Secretary.

(2)

Applicable year

The term applicable year means a fiscal year covered by a risk management account contract.

(3)

Average adjusted gross revenue

The term average adjusted gross revenue means—

(A)

the rolling average of the adjusted gross revenue of an operator or producer for each of the 5 preceding taxable years; or

(B)

in the case of a beginning farmer or rancher, or another agricultural operation that does not have adjusted gross revenue for each of the 5 preceding taxable years, the estimated income of the operation for the applicable year, as determined by the Secretary.

(4)

Eligible commodity

The term eligible commodity means any annual or perennial crop raised or produced by an operator or producer.

(5)

Farm

(A)

In general

The term farm means any parcel of land used for the raising or production of an eligible commodity that is considered to be a separate operation, as determined by the Secretary.

(B)

Inclusions

The term farm includes—

(i)

any parcel of land and related agricultural production facilities on which an operator or producer has more than de minimis operational control; and

(ii)

any parcel of land subject to more than de minimis common ownership, as determined by the Secretary, unless the common owners of the parcel—

(I)

except with respect to a conservation condition established in an applicable rental agreement, do not have operational control regarding any portion of the parcel; and

(II)

do not share in the proceeds of the parcel, other than cash rent.

(C)

Exclusion

The term farm does not include a parcel that is not a portion of a farm subject to a risk management account contract.

(D)

Applicability of CFR

Except as otherwise provided in this subtitle or by the Secretary, by regulation, part 718 of title 7, Code of Federal Regulations (or successor regulations), shall apply to the definition, constitution, and reconstitution of a farm for purposes of this paragraph.

(6)

Operator

The term operator means a producer who controls an agricultural operation on a farm, as determined by the Secretary.

(7)

Producer

The term producer means a person that, as determined by the Secretary, for an applicable year—

(A)

shares in the risk of producing, or provides a material contribution in producing, an eligible commodity;

(B)

has a substantial beneficial interest in the farm on which the eligible commodity is produced;

(C)
(i)

for each of the 5 preceding taxable years, has filed—

(I)

a schedule F form of the Federal income tax return relating to the eligible commodity; or

(II)

a comparable tax form related to the eligible commodity, as approved by the Secretary; or

(ii)

is a beginning farmer or rancher, or another producer that does not have adjusted gross revenue for each of the 5 preceding taxable years, as determined by the Secretary; and

(D)
(i)

during the 5 preceding taxable years, has earned at least $10,000 in average adjusted gross revenue;

(ii)

is a limited resource farmer or rancher, as determined by the Secretary; or

(iii)

in the case of a beginning farmer or rancher, or another producer that does not have adjusted gross revenue for each of the 5 preceding taxable years, has at least $10,000 in estimated income from all farms for the applicable year, as determined by the Secretary.

(8)

Risk management account

The term risk management account means a farm income stabilization assistance account maintained at a qualified financial institution in accordance with such terms as the Secretary may establish.

1102.

Risk management account contracts

(a)

Establishment of program

The Secretary shall establish and carry out a program under which the Secretary shall offer to enter into contracts with eligible operators and producers in accordance with this section—

(1)

to provide to the operators and producers a reserve to assist in the stabilization of farm income during low-revenue years;

(2)

to assist operators and producers to invest in value-added farms; and

(3)

to recognize high levels of environmental stewardship.

(b)

Eligibility

(1)

In general

Any operator that has participated in a commodity program under title I of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.), and that otherwise meets each eligibility requirement under this subtitle, shall be eligible to enter into a risk management account contract for agricultural production during each of fiscal years 2008 through 2014.

(2)

Other producers

A producer that is not an operator described in paragraph (1) shall be eligible to enter into a risk management account contract for agricultural production during each of fiscal years 2008 through 2014.

(3)

Limitations

(A)

In general

No farm or portion of a farm shall be subject to more than 1 risk management account contract during any fiscal year.

(B)

Multiple risk management account contracts

(i)

In general

Except as provided in clause (ii), no operator or producer shall participate or have a beneficial interest in more than 1 risk management account contract during any fiscal year.

(ii)

Exception

Notwithstanding clause (i), an operator that is eligible to receive a transition payment during a fiscal year, and that participates or has a beneficial interest in a risk management account contract during that fiscal year, may enter into an additional risk management account contract during the fiscal year if—

(I)

the additional risk management account contract is entered into solely for the purpose of receiving the transition payment; and

(II)

the operator is not otherwise eligible to participate or have a beneficial interest in the additional risk management account contract.

(c)

Risk management accounts

(1)

In general

Each risk management account contract entered into under this section shall establish, in the name of the farm of the operator or producer, as applicable, in an appropriate financial institution and subject to such investment rules and other procedures as the Secretary, on approval of the Secretary of the Treasury, determines to be necessary to provide reasonable assurance of the viability and stability of the account, a risk management account, to consist of—

(A)

such amounts as are transferred to the risk management account by the Secretary during an applicable year in accordance with paragraph (2) (including the amendments made by that paragraph); and

(B)

such amounts as are voluntarily contributed by the operator or producer during the applicable year in accordance with paragraph (6).

(2)

Transfers

Section 1103 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7913) is amended by adding at the end the following:

(e)

Risk management accounts

Of the total amount of direct payments made to producers, payments in excess of $10,000 for a crop year shall be deposited into risk management accounts established under section 1102 of the Farm, Ranch, Equity, Stewardship, and Health Act of 2007.

.

(3)

Operator and producer contributions

During any applicable year, an operator or producer may voluntarily contribute to the risk management account of the operator or producer.

(4)

Withdrawals

(A)

In general

An operator or producer may withdraw amounts in the risk management account of the operator or producer only—

(i)

for an applicable year during which the adjusted gross revenue of the operator or producer is equal to less than 95 percent of the average adjusted gross revenue of the operator or producer, in an amount that is equal to the lesser of—

(I)

the difference between—

(aa)

the average adjusted gross revenue of the operator or producer; and

(bb)

the adjusted gross revenue of the operator or producer; and

(II)

the amount of coverage that could be purchased under an adjusted gross revenue product available to the operator or producer through the Federal crop insurance program;

(ii)

for investment in a value-added agricultural operation that contributes to the agricultural economy, as determined by the Secretary, and is not farmland or equipment used to produce raw agricultural products, an amount equal to the product obtained by multiplying—

(I)

the total amount in the risk management account of the operator or producer on September 30 of the preceding applicable year; and

(II)

10 percent;

(iii)

as the Secretary determines to be necessary to protect the solvency of a farm of the operator or producer; or

(iv)

to purchase revenue insurance or crop insurance.

(B)

Transfer to IRA account

In any calendar year, an individual operator or producer aged 65 years or older who is the holder of a risk management account in existence for at least 5 years may elect to rollover not more than 15 percent of the balance of the risk management account into an individual retirement account pursuant to section 408 of the Internal Revenue Code of 1986.

(5)

Limitations

(A)

Attribution requirement

The Secretary shall ensure that each payment transferred to a risk management account under this subsection is attributed to an individual operator or producer that is a party to the applicable risk management account contract.

(B)

No individual benefit

(i)

In general

The Secretary shall ensure that no individual operator or producer receives a direct benefit from more than 1 risk management account.

(ii)

Proportional reduction

The Secretary shall reduce the amount of a standard payment under this subsection in an amount equal to the proportion that—

(I)

the amount of each direct or indirect benefit received by the applicable individual operator or producer under the applicable risk management account contract; bears to

(II)

the amount of any direct or indirect benefit received by the individual operator or producer under any other risk management account contract under which a standard payment is transferred to a risk management account.

(6)

Conservation compliance

Each operator, and each holder of a beneficial interest in a farm subject to a risk management account contract, shall comply with—

(A)

applicable highly erodible land conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); and

(B)

applicable wetland conservation requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).

(7)

Regulations

The Secretary shall promulgate such regulations as the Secretary determines to be necessary to carry out this subsection.

1103.

Treatment of risk management account accounts on transfer

(a)

In general

In transferring, by sale or other means, any interest in a farm subject to a risk management account, an operator or producer may elect—

(1)

to transfer the risk management account to another farm in which the operator or producer—

(A)

has a controlling ownership interest; or

(B)

not later than 2 years after the date of the transfer, will acquire a controlling ownership interest;

(2)

to transfer the risk management account to the purchaser of the interest in the farm, if the purchaser is not already a holder of a risk management account; or

(3)
(A)

if the operator or producer is an individual, to rollover amounts in the risk management account into an individual retirement account of the operator or producer pursuant to section 408 of the Internal Revenue Code of 1986; or

(B)

if the operator or producer is not an individual, to transfer amounts in the risk management account into an account of any individual who has a substantial beneficial interest in the farm (including a substantial beneficiary of a trust that holds at least a 50 percent ownership interest in the farm).

(b)

Transfer or acquisition of land or portion of operation

The Secretary shall promulgate such regulations as the Secretary determines to be appropriate to require reformulation, reaffirmation, or abandonment of a risk management account contract—

(1)

on transfer of all or part of a farm under this section; or

(2)

on any other major change to the farm, as determined by the Secretary.

1104.

Administration

(a)

Implementation

The Secretary shall carry out this subtitle through the Farm Service Agency.

(b)

Compliance

The Secretary shall conduct random audits of operators and producers subject to risk management account contracts under this subtitle as the Secretary determines to be necessary to ensure compliance with the risk management account contracts.

(c)

Violations

If the Secretary determines that an operator or producer is in violation of the terms of an applicable risk management account contract—

(1)

the operator or producer shall refund to the Secretary an amount equal to the amount transferred by the Secretary under section 1103(e) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7913(e)) to the affected risk management account during the applicable year in which the violation occurred; and

(2)

for a serious or deliberate violation, as determined by the Secretary—

(A)

the risk management account contract shall be terminated; and

(B)

amounts remaining in each applicable risk management account as the result of a transfer by the Secretary under section 1103(e) of that Act shall be refunded to the Secretary.

(d)

Regulations

The Secretary shall promulgate such regulations as the Secretary determines to be necessary to carry out this subtitle.

(e)

Adjusted gross income limitation

The adjusted gross income limitation under section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall apply to participation in the farm income stabilization assistance program under this subtitle.

(f)

Commodity Credit Corporation

The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this subtitle.

1105.

Commodity programs

(a)

Repeals

Subtitles A through C of title I of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) (other than sections 1001, 1101, 1102, 1103, 1104, and 1106) are repealed.

(b)

Base acres and payment acres

Section 1101 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911) is amended—

(1)

in subsections (a)(1) and (e)(2), by striking and counter-cyclical payments each place it appears; and

(2)

by adding at the end the following:

(i)

Production of fruits or vegetables for processing

(1)

In general

Subject to paragraphs (2) and (3), the producers on a farm, with the consent of the owner of and any other producers on the farm, may reduce the base acres for a covered commodity for the farm if the reduced acres are used for the planting and production of fruits or vegetables for processing.

(2)

Reversion to base acres for covered commodity

Any reduced acres on a farm devoted to the planting and production of fruits or vegetables during a crop year under paragraph (1) shall be included in base acres for the covered commodity for the subsequent crop year, unless the producers on the farm make the election described in paragraph (1) for the subsequent crop year.

(3)

Recalculation of base acres

(A)

In general

Subject to subparagraph (B), if the Secretary recalculates base acres for a farm, the planting and production of fruits or vegetables for processing under paragraph (1) shall be considered to be the same as the planting, prevented planting, or production of the covered commodity.

(B)

Authority

Nothing in this subsection provides authority for the Secretary to recalculate base acres for a farm.

.

(c)

Payment yields

Section 1102 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912) is amended—

(1)

in subsection (a), by striking and counter-cyclical payments;

(2)

in subsection (b), by striking 2007 and inserting 2014;

(3)

in subsection (c), by striking , but before and all that follows through subsection (e); and

(4)

by striking subsection (e).

(d)

Sugar

Section 156(j) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(j)) is amended by striking 2007 and inserting 2014.

(e)

Recourse loan program

Subtitle F of title I of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991 et seq.) is amended by adding at the end the following:

1619.

Recourse loan program

For each of the 2008 through 2014 crop years, the Secretary shall establish a recourse loan program for each loan commodity at a rate of interest to be determined by the Secretary.

.

(f)

Administration

(1)

Suspension of permanent price support authority

Section 1602 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7992) is amended by striking 2007 each place it appears and inserting 2014.

(2)

Adjusted gross income limitation

Section 1001D(e) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(e)) is amended by striking 2007 and inserting 2014.

(g)

Availability of counter-cyclical payments

Section 1104 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7914) is amended—

(1)

by striking 2007 each place it appears (other than paragraphs (3)(B) and (4)(B) of subsection (f)) and inserting 2008; and

(2)

in subsection (f)—

(A)

in paragraph (3)(B)—

(i)

in the subparagraph heading, by striking 2007 crop year and inserting 2007 and 2008 crop years; and

(ii)

by striking the 2007 crop year and inserting each of the 2007 and 2008 crop years; and

(B)

in paragraph (4)(B)—

(i)

in the subparagraph heading, by striking 2007 crop year and inserting 2007 and 2008 crop years; and

(ii)

by striking the 2007 crop year each place it appears and inserting each of the 2007 and 2008 crop years.

(h)

Availability of direct payments

Section 1103 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7913) is amended—

(1)

in subsection (a), by striking For each of the 2002 through 2007 and inserting For each of the 2008 through 2014; and

(2)

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

(4)
(A)

In each of crop years 2008 through 2011, 25 percent.

(B)

In each of crop years 2012 and 2013, 20 percent.

(C)

In crop year 2014, 0 percent.

.

II

Conservation

A

Conservation reserve

2001.

Conservation reserve program

(a)

In general

Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 2007 and inserting 2014.

(b)

Maximum enrollment

Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended—

(1)

by striking The Secretary and inserting the following:

(1)

In general

The Secretary

;

(2)

in paragraph (1) (as designated by paragraph (1)), by striking 2007 and inserting 2014; and

(3)

by adding at the end the following:

(2)

Enrollment goals

For the period beginning on the date of enactment of this paragraph and ending on December 31, 2014, the Secretary shall establish a goal to enroll not less than 7,000,000 acres of eligible land through the continuous enrollment program and the conservation reserve enhancement program.

.

(c)

Pilot Program for Enrollment of Wetland and Buffer Acreage in Conservation Reserve

Section 1231(h)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking 2007 and inserting 2014.

B

Wetlands reserve program

2101.

Wetlands reserve program

(a)

In general

Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is amended by striking 2007 and inserting 2014.

(b)

Maximum enrollment

Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking 2,275,000 acres and inserting 3,605,000 acres.

(c)

Wetland easement conservation plan

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

(d)

Cost-share and management assistance

Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is amended—

(1)

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

(2)

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

(4)

Management costs

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

.

C

Conservation security program

2201.

Conservation security program

(a)

In general

Section 1238A(a) of the Food Security Act of 1985 (16 U.S.C. 3838a(a)) is amended by striking 2011 and inserting 2012.

(b)

Technical assistance

Section 1238C(g) of the Food Security Act of 1985 (16 U.S.C. 3838c(g)) is amended by striking 2007 and inserting 2012.

D

Environmental quality incentives program

2301.

Environmental quality incentives program

(a)

Purposes

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

(1)

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

(2)

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

(b)

Extension

Section 1240B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)(1)) is amended by striking 2010 and inserting 2014.

(c)

Bidding down

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

(c)

Bidding down

(1)

In general

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

(2)

Cost-effectiveness

Nothing in this subsection relieves the Secretary of the obligation, when evaluating applications for cost-share payments and incentive payments—

(A)

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

(B)

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

.

(d)

Cost-share payment exception

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

(A)

Limited resource and beginning farmers

(i)

In general

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

(ii)

Limitation

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

.

(e)

Allocation of funding

Section 1240B(g) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) is amended by striking 2007 and inserting 2014.

(f)

Evaluation of applications for cost-share payments and incentive payments

Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa–3) is amended to read as follows:

1240C.

Evaluation of applications for cost-share payments and incentive payments

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

(1)

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

(2)

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

(3)

reward higher levels of environmental performance, such as advanced levels of management within land management practices;

(4)

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

(5)

prioritize applications that will improve environmental performance on existing operations.

.

(g)

Conservation innovation grants

(1)

In general

Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa–8) is amended by striking subsection (a) and inserting the following:

(a)

In general

The Secretary may pay the cost of competitive grants that leverage Federal investment in environmental enhancement and protection through the program by stimulating the development of innovative technologies and transferring those technologies to agricultural and nonindustrial private forest land in production.

.

(2)

Use

Section 1240H(b) of the Food Security Act of 1985 (16 U.S.C. 3839aa–8(b)) is amended by striking paragraph (2) and inserting the following:

(2)
(A)

implement innovative conservation technologies, such as market systems for pollution reduction and practices for the storing of carbon in the soil; and

(B)

provide a mechanism for transferring those technologies to agricultural and nonindustrial private forest land in production; and

.

(h)

Ground and surface water conservation

Section 1240I(c)(1)(C) of the Food Security Act of 1985 (16 U.S.C. 3839aa–9(c)(1)(C)) is amended by striking 2007 and inserting 2014.

(i)

Performance incentives for States

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

1240J.

Performance incentives for States

(a)

High level of performance bonus

For each of fiscal years 2008 through 2014, 10 percent of the funds made available to carry out this chapter shall be reserved by the Secretary for bonus allocations to States that demonstrate a high level of performance in implementing the environmental quality incentives program, as determined by the Secretary in accordance with subsection (b).

(b)

Special considerations

In evaluating State performance under subsection (a), the Secretary shall reward States that—

(1)

consistently meet the requirements of section 1240C in evaluating offers and payments;

(2)

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

(3)

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

(4)

demonstrate effective and efficient program delivery, including the provision of adequate technical assistance to all program participants through—

(A)

appropriate staffing; and

(B)

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

(5)

support and encourage innovative approaches to addressing resource concerns;

(6)

effectively leverage Federal funding with local and State matching funds; and

(7)

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

.

E

Grassland reserve program

2401.

Grassland reserve program

Section 1238N(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3838N(b)(1)) is amended by striking 2,000,000 acres and inserting 3,340,000 acres.

F

Cooperative conservation partnership initiative

2501.

Cooperative conservation partnership initiative

(a)

In general

Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:

6

Cooperative conservation partnership initiative

1240S.

Cooperative conservation partnership initiative

(a)

Definitions

In this section:

(1)

Eligible conservation program

The term eligible conservation program means—

(A)

the continuous signup portion of the conservation reserve program established under subchapter B of chapter 1;

(B)

a special conservation reserve enhancement program described in section 1234(f)(4);

(C)

the environmental quality incentives program established under chapter 4, including the ground and surface water conservation program under section 1240I;

(D)

the farmland protection program established under subchapter B of chapter 2;

(E)

the grassland reserve program established under subchapter C of chapter 2;

(F)

the wetlands reserve program established under subchapter C of chapter 1; and

(G)

the wildlife habitat incentive program established under section 1240N.

(2)

Eligible entity

The term eligible entity means—

(A)

a State, including an agency of a State;

(B)

a political subdivision of a State, including a State-sponsored conservation district;

(C)

an Indian tribe; and

(D)

a nongovernmental organization or association, including—

(i)

a producer association;

(ii)

a farmer cooperative;

(iii)

an extension association; and

(iv)

a conservation organization with a history of working cooperatively with producers to effectively address resource concerns related to agricultural production, as determined by the Secretary.

(b)

Grants and agreements

(1)

In general

The Secretary shall make grants and enter into agreements with eligible entities to preferentially enroll producers in 1 or more of eligible conservation programs to carry out special projects and initiatives through which multiple producers and other interested persons cooperate to address specific resources of concern relating to agricultural production on a local, State, or regional scale.

(2)

Term

Grants and agreements described in paragraph (1) shall have a term of—

(A)

not less than 2 years; and

(B)

not more than 5 years.

(c)

Applications

(1)

Competitive process

The Secretary shall establish a competitive process for considering applications for grants or agreements under this section consistent with the evaluation criteria described in subsection (d).

(2)

Program allocation

An application for a grant or agreement under this section shall include—

(A)

specification of the amount of funding or quantity of acres, or both, of 1 or more eligible conservation programs proposed to be allocated to carry out the special project or initiative; and

(B)

a schedule for use of funding or acres over the life of the proposed project or initiative.

(d)

Evaluation criteria

In evaluating applications for grants or agreements under this section, the Secretary shall consider the extent to which—

(1)

preferential enrollment in the eligible conservation program specified in the application will effectively address the environmental objectives established for the special project or initiative; and

(2)

the special project or initiative covered by the application—

(A)

enjoys broad local and regional support from producers and other interested persons, including governmental and nongovernmental organizations with appropriate expertise on the issues the project or initiative seeks to address;

(B)

includes clear environmental objectives and a high likelihood of success;

(C)

includes a well-defined project or initiative plan that identifies sensitive areas requiring treatment and prioritizes conservation systems, practices, and activities needed to achieve environmental objectives;

(D)

promises adequate and coordinated participation to achieve the objectives of the project or initiative;

(E)

coordinates integration of Federal, State, and local efforts to make the best use of available resources and maximize cost-effective investments;

(F)

leverages financial and technical resources from sources other than the conservation programs authorized by this subtitle, including financial and technical resources provided by Federal and State agencies, local governments, nongovernmental organizations and associations, and other private sector entities;

(G)

describes how all necessary technical assistance will be provided to each producer participating in the project or initiative, including cost estimates for technical assistance and whether such assistance will be provided by technical service providers;

(H)

describes how the administrative costs of the project or initiative will be minimized;

(I)

addresses 1 or more local, State, regional, or national environmental priorities, with particular emphasis on any priority for which there is an existing State or federally-approved plan in place for addressing that priority;

(J)

includes a plan to evaluate progress and measure results; and

(K)

clearly demonstrates that enrollment of producers in eligible conservation programs will be consistent with the purposes and policies of each eligible conservation program, as established in law (including rules, regulations, and program guidance promulgated by implementing agencies).

(e)

Priorities

To the maximum extent practicable, consistent with subsections (c) and (d), the Secretary shall ensure that, for each fiscal year, grants are awarded and agreements are entered into under this section to support projects and initiatives that collectively address the resource concerns facing producers, ranchers, and small private forest landowners, specifically including projects and initiatives that are designed—

(1)

to achieve improvements in water quality in watersheds impacted by agriculture, particularly by increasing the participation of producers in implementing best management practices in a watershed or developing environmentally and economically viable alternative uses for manure and litter;

(2)

to achieve improvements in air quality in a geographical area in which agricultural operations impact air quality, especially an area that, as determined by the Administrator of the Environmental Protection Agency, is a nonattainment area with respect to any of the national primary and secondary ambient air quality standards promulgated by the Administrator under section 109 of the Clean Air Act (42 U.S.C. 7409);

(3)

to conserve water for environmental purposes, such as enhanced stream flows or aquifer recharge in regions, States, or local areas in which water quantity is a concern;

(4)

to assist in the recovery of Federal or State-listed endangered species or species of special concern or to further the goals and objectives of the comprehensive wildlife conservation plan of a State through the cooperative efforts of multiple producers;

(5)

to control invasive species on rangeland or other agricultural land through the cooperative efforts of multiple producers in a geographical area;

(6)

to address 1 or more specific resources of concern on private, non-industrial forest land;

(7)

to reduce losses of pesticides to the environment by engaging multiple producers in a geographic area in adoption of integrated pest management practices and approaches; and

(8)

to keep in production farms and ranches facing development pressures in agricultural use.

(f)

Cost share

(1)

In general

Except as provided in paragraph (2), the Secretary shall not require more than 25 percent of the cost of a project or initiative supported under a grant or agreement entered into under this section to be derived from non-Federal sources.

(2)

Exception

The Secretary may give greater priority to projects or initiatives that offer to provide a higher percentage of the cost of the project or initiative from non-Federal sources.

(3)

In-kind contributions

If the Secretary establishes a cost-share requirement for a project or initiative, the Secretary shall allow the use of in-kind contributions to fulfill that requirement.

(g)

Funding

(1)

In general

Of the funds made available for each fiscal year to carry out the eligible conservation programs, to provide funding for grants and agreements entered into under this section, the Secretary shall reserve—

(A)

5 percent for fiscal year 2008;

(B)

10 percent for fiscal year 2009;

(C)

15 percent for fiscal year 2010; and

(D)

20 percent for each of fiscal years 2011 through 2014.

(2)

Allocation to States

Using the method of allocation for States under each eligible conservation program, the Secretary shall allocate to States 75 percent of the funds reserved under paragraph (1) for each fiscal year to allow State Conservationists of the Natural Resources Conservation Service, with the advice of State technical committees, to select projects and initiatives for funding under this section at the State level.

.

(b)

Conforming amendment

Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is amended by striking subsection (f).

2502.

Minimum base allocation to States in funding of certain Department of Agriculture conservation programs

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking subsection (d) and inserting the following:

(d)

Minimum base allocation to States for certain conservation programs

(1)

In general

In allocating funds to States to implement the conservation programs under subtitle D (excluding the conservation reserve program under subchapter B of chapter 1, the wetlands reserve program under subchapter C of chapter 1, the conservation security program under subchapter A of chapter 2, and the grassland reserve program under subchapter C of chapter 2), the Secretary shall ensure that each State receives, at a minimum, $18,000,000 for each of fiscal years 2007 through 2014.

(2)

Exception

The Secretary shall ensure that any funds made available under chapter 6 of subtitle D to carry out a project in or adjacent to a State are over and above the minimum base allocation in paragraph (1).

.

G

Other conservation programs

2601.

Pilot program for comprehensive conservation planning

Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the following:

1240Q.

Pilot program for comprehensive conservation planning

(a)

Pilot program required

The Secretary shall establish a pilot program to evaluate the feasibility of assisting producers, before a producer applies for assistance under any conservation program under this subtitle D, by making a comprehensive assessment of the resource concerns, needs, and alternative solutions for the entire operation of the producer, as determined by the Secretary, following the procedures in the conservation planning manual of the Natural Resources Conservation Service.

(b)

Locations

The pilot program shall be undertaken in the following locations:

(1)

The Chesapeake Bay watershed.

(2)

The Great Lakes Basin.

(3)

The Connecticut River watershed.

(4)

The Highlands Region, as defined in section 3 of the Highlands Conservation Act (Public Law 108–421; 118 Stat. 2375).

(5)

The Upper Mississippi River Basin.

(c)

Provision of assistance

(1)

In general

The assistance to producers shall be provided—

(A)

by the Secretary directly or through third-party providers certified by the Secretary; and

(B)

without charge to the producer.

(2)

Results

The results of the comprehensive conservation planning shall be provided to the producer to enable informed choices on the type of financial assistance available through conservation programs administered by the Secretary that would most effectively address the resource needs of the operation of the producer consistent with the environmental goals for the area in which the operation is located.

(d)

Assessment and report

During the second and fifth years of the pilot program, the Secretary shall—

(1)

conduct an assessment of the effectiveness of the pilot program established under this section; and

(2)

publish a report, to be available to the public, of the results of the assessment.

(e)

Funding

(1)

In general

There is authorized to be appropriated to carry out this section $40,000,000 for each of fiscal years 2008 through 2014.

(2)

Allocation

The Secretary shall, to the maximum extent practicable, equally allocate the amount of funds made available under paragraph (1) for each fiscal year between each of the 5 pilot program locations established under subsection (b).

.

2602.

Pilot program for nutrient reduction and sediment control in the Chesapeake Bay watershed

Chapter 5 of subtitle D of title XII of the Food Security Act of 1985 (as amended by section 2601) is amended by inserting after section 1240Q the following:

1240R.

Pilot program for nutrient reduction and sediment control in the Chesapeake Bay watershed

(a)

Definitions

In this section:

(1)

Chesapeake Bay watershed

The term Chesapeake Bay watershed means the tributaries, backwaters, and side channels that drain into the Chesapeake Bay, including associated watersheds.

(2)

Chesapeake 2000 agreement

The term Chesapeake 2000 agreement means the voluntary comprehensive restoration agreement signed in June 2000 by the members of the Chesapeake Executive Council.

(b)

Restoration enhancement and preservation projects

(1)

In general

The Secretary shall use funds made available under this section to pay the Federal share of carrying out agricultural restoration enhancement and preservation projects for the Chesapeake Bay watershed.

(2)

Administration

The Secretary shall carry out the projects—

(A)

in cooperation with appropriate Federal and State agencies; and

(B)

in a manner consistent with the tributary strategies developed pursuant to the Chesapeake 2000 agreement.

(c)

Water quality

In carrying out projects and activities under this section, the Secretary shall take into account the protection of water quality by considering applicable State water quality standards.

(d)

Coordination

The Secretary shall integrate and coordinate projects and activities carried out under this section with other Federal and State programs, projects, and activities.

(e)

Cost sharing

(1)

Federal share

The Federal share of the cost of carrying out any individual project under this section shall not exceed $5,000,000.

(2)

Non-Federal share

Subject to paragraph (1), the non-Federal share of the cost of projects and activities carried out under this section shall be not less than 25 percent.

(3)

Non-Federal responsibilities

The operation, maintenance, rehabilitation, and replacement of projects carried out under this section shall be a non-Federal responsibility.

(f)

Funding

(1)

In general

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out projects under this section $50,000,000 for each of fiscal years 2008 through 2012.

(2)

Additional funding

Funds made available under this section shall be in addition to any other funds that are provided under this title.

.

H

Funding and administration

2701.

Funding and administration

(a)

In general

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1) by striking 2007 and inserting 2014.

(b)

Conservation security program

Section 1241(a)(3) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) is amended—

(1)

in subparagraph (A), by striking $1,954,000,000 and inserting $2,194,000,000; and

(2)

in subparagraph (B) by striking $5,650,000,000 and inserting $6,050,000,000.

(c)

Farm and ranchland protection program

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (4) and inserting the following:

(4)

The farm and ranchland protection program under subchapter B of chapter 2, using, to the maximum extent practicable—

(A)

$125,000,000 in fiscal year 2008;

(B)

$150,000,000 in fiscal year 2009;

(C)

$200,000,000 in fiscal year 2010;

(D)

$240,000,000 in fiscal year 2011; and

(E)

$280,000,000 in each of fiscal years 2012 through 2014.

.

(d)

Grassland reserve program

Section 1241(a)(5) of the Food Security Act of 1986 (16 U.S.C. 3841(a)(5)) is amended by striking 2007 and inserting 2014.

(e)

Environmental quality incentives program

Section 1241(a) of the Food Security Act of 1986 (16 U.S.C. 3841(a)) is amended by striking paragraph (6) and inserting the following:

(6)

The environmental quality incentives program under chapter 4, using, to the maximum extent practicable—

(A)

$1,250,000,000 in fiscal year 2008;

(B)

$1,600,000,000 in fiscal year 2009;

(C)

$1,700,000,000 in fiscal year 2010;

(D)

$1,800,000,000 in fiscal year 2011; and

(E)

$2,000,000,000 in each of fiscal years 2012 through 2014.

.

(f)

Wildlife habitat incentives program

Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (7) and inserting the following:

(7)

The wildlife habitat incentives program under section 1240N, using, to the maximum extent practicable—

(A)

$85,000,000 in fiscal year 2008;

(B)

$100,000,000 in fiscal year 2009;

(C)

$140,000,000 in fiscal year 2010; and

(D)

$150,000,000 in each of fiscal years 2011 through 2014.

.

2702.

Conservation application process

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is amended by adding at the end the following:

(c)

Conservation application process

(1)

Initial application

(A)

In general

Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a single, simplified application for eligible entities to use in initially requesting assistance under any conservation program administered by the Natural Resources Conservation Service (referred to in this subsection as the initial application).

(B)

Requirements

To the maximum extent practicable, the Secretary shall ensure that—

(i)

a conservation program applicant is not required to provide information that is duplicative of information or resources already available to the Secretary for that applicant and the specific operation of the applicant; and

(ii)

the initial application process is streamlined to minimize complexity and redundancy.

(2)

Review of application process

(A)

In general

Not later than 1 year after the date of enactment of this subsection, the Secretary shall review the application process for each conservation program administered by the Natural Resources Conservation Service, including the forms and processes used to receive assistance requests from eligible program participants.

(B)

Requirements

In carrying out the review, the Secretary shall determine what information the participant is required to submit during the application process, including—

(i)

identification information for the applicant;

(ii)

identification and location information for the land parcel or tract of concern;

(iii)

a general statement of the need or resource concern of the applicant for the land parcel or tract; and

(iv)

the minimum amount of other information the Secretary considers to be essential for the applicant to provide personally.

(3)

Revision and streamline

(A)

In general

Not later than 1 year after the date of enactment of this subsection, the Secretary shall carry out a revision of the application forms and processes for each conservation program administered by the Natural Resources Conservation Service to enable use of information technology to incorporate appropriate data and information concerning the conservation needs and solutions appropriate for the land area identified by the applicant.

(B)

Goal

The goal of the revision shall be to streamline the application process to minimize the burden placed on applicants.

(4)

Conservation program application

(A)

In general

Once the needs of an applicant have been adequately assessed by the Secretary, or a third party provider under section 1242, based on the initial application, in order to determine the 1 or more programs under this title that best match the needs of the applicant, with the approval of the applicant, the Secretary may convert the initial application into the specific application for assistance for the relevant conservation program.

(B)

Secretarial burden

To the maximum extent practicable, the Secretary shall—

(i)

complete the specific application for conservation program assistance for each applicant; and

(ii)

request only that specific further information from the applicant that is not already available to the Secretary.

(5)

Implementation and notification

Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate written notification that the Secretary has fulfilled the requirements of this subsection.

.

2703.

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

(a)

Exclusion

Section 1001D(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)) is amended by striking subparagraph (C).

(b)

Effective period

Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended by striking subsection (e).

III

Specialty crops

A

Marketing

3001.

Grants to States to enhance competitiveness of specialty crops

(a)

Definition of specialty crop

In this section, the term specialty crop includes aquacultural product (including ornamental fish), sea grass, and sea oats.

(b)

Availability and purpose of grants

(1)

In general

For each of fiscal years 2008 through 2014, the Secretary shall make a grant under this section to each State that submits an application for a grant for that fiscal year in accordance with the terms and conditions established under paragraph (4).

(2)

Use of grant funds

The grant funds shall be used by the State department of agriculture solely to enhance the competitiveness of United States specialty crops.

(3)

Maintenance of effort

The State shall provide assurances to the Secretary that funds provided to the State under this section will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended in support of specialty crops and specialty crop producers in the State.

(4)

Terms and conditions

Not later than 180 days after the date of enactment of this Act for fiscal year 2007 and before commencement of each of fiscal years 2008 through 2014, the Secretary shall establish terms and conditions for the submission of grant applications for that fiscal year.

(c)

Amount

(1)

In general

Subject to paragraph (2), the amount of the grant for a fiscal year to a State under this section shall bear the same ratio to the total amount made available under subsection (e) for that fiscal year as—

(A)

the value of specialty crop production in the State during the preceding calendar year; bears to

(B)

the value of specialty crop production during that calendar year in all those States submitting applications for a grant for that fiscal year.

(2)

Minimum grant amount

At a minimum, each eligible State shall receive $3,000,000 per fiscal year as a grant under this section.

(3)

Availability of funds

(A)

In general

Any funds remaining after allocations are made under paragraph (2) shall be available on a competitive basis to any State department of agriculture that submits an application to the Secretary.

(B)

Criteria

The Secretary shall—

(i)

establish criteria for review of applications submitted under subparagraph (A); and

(ii)

award funds to applicants that best fulfill the criteria.

(d)

Grant Expenditure Priorities

(1)

In general

It is the intent of Congress that specialty crop producers, organizations, and commissions should benefit from the disposition of grant funds under this section.

(2)

Eligibility

To be eligible to receive a grant under this section, a State department of agriculture shall conduct at least 1 public hearing, or provide some other method for public comment, to obtain the advice and opinion of specialty crop producers, organizations, and commissions in the State regarding the use of grant funds.

(3)

Consideration

The Secretary shall ensure that a State department of agriculture considers the advice and opinions received under paragraph (2) when making decisions about the use of grant funds.

(e)

Use of Commodity Credit Corporation

Of funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $100,000,000 for each of fiscal years 2008 through 2014.

3002.

Fruit and vegetable nutrition promotion program

(a)

In general

The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall establish and carry out a program to provide assistance to eligible trade organizations described in subsection (c) to increase the consumption of fruits and vegetables in the United States to meet Federal health guidelines.

(b)

Requirements for participation

To be eligible for assistance under this section, an organization shall—

(1)

be an eligible trade organization;

(2)

prepare and submit a plan to increase the consumption of fruits and vegetables in the United States to the Administrator of the Agricultural Marketing Service that meets any guidelines governing such plans established by the Administrator; and

(3)

meet any other requirements established by the Administrator.

(c)

Eligible trade organizations

An eligible trade organization under this section shall be—

(1)

a nonprofit fruit and vegetable trade organizations in the United States;

(2)

a nonprofit State or regional fruit and vegetable organization;

(3)

a fruit and vegetable agricultural cooperative in the United States;

(4)

a commodity board or commission in the United States; or

(5)

a small business engaged in the fruit and vegetable industry in the United States.

(d)

Matching funds

Assistance provided under this section shall not exceed—

(1)

in the case of an organization described in paragraphs (1) through (4) of subsection (c), 90 percent of the cost of the plan to increase the consumption of fruits and vegetables in the United States submitted under subsection (b)(2); and

(2)

in the case of an organization described in subsection (c)(5), 50 percent of the cost of the plan to increase the consumption of fruits and vegetables in the United States submitted under subsection (b)(2).

(e)

Funding

Of the funds available to the Commodity Credit Corporation, the Administrator of the Agricultural Marketing Service shall use $15,000,000 in each of fiscal years 2008 through 2014 to carry out this section.

3003.

Farmers’ market promotion program

Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended by striking subsections (d) and (e) and inserting the following:

(d)

Criteria and Guidelines

(1)

In general

The Secretary shall establish criteria and guidelines for the submission, evaluation, and funding of proposed projects under the Program.

(2)

Priority

The Secretary shall prioritize for funding projects that will support, encourage, or promote the transition to organic and other environmentally beneficial forms of agricultural production.

(e)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $20,000,000 for each of fiscal years 2008 through 2014, of which not less than $5,000,000 shall be used for each fiscal year to support the use of electronic benefit transfers at farmers’ markets.

.

3004.

National organic certification and transition cost share program

Section 10606 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523) is amended to read as follows:

10606.

National organic certification and transition cost share program

(a)

In general

Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture (acting through the Natural Resources Conservation Service) shall use $10,000,000 for each of fiscal years 2008 through 2014 to establish a national organic certification and transition cost-share program to assist producers and handlers of agricultural products in obtaining certification under the national organic production program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) and to assist producers and handlers in making the transition to organic production under the such program.

(b)

Certification costs

(1)

In general

The Secretary shall pay under this section up to 75 percent of the costs incurred by a producer or handler in obtaining certification under the national organic production program, as certified to and approved by the Secretary.

(2)

Maximum amount

The maximum amount of a payment made to a producer or handler for certification under this section shall be $750 per year.

(c)

Accreditation and enforcement costs

Of the funds made available under subsection (a), the Secretary (acting through the Agricultural Marketing Service) shall fund the accreditation and enforcement programs operated by the National Organic Program to implement the accreditation and enforcement provisions of the Organic Foods Production Act of 1990.

(d)

Reimbursements for infrastructure necessary To implement organic practice standards

(1)

Establishment

Not later than 180 days after the date of the enactment of this Act, the Secretary shall establish a program to reimburse producers and handlers for the costs of transition to organic production.

(2)

Program

Under the program established under paragraph (1), the Secretary (acting through the Natural Resources Conservation Service) shall assist producers and handlers developing and implementing infrastructure and practices necessary to transition land and animals to meet the requirements of the Organic Food Production Act of 1990.

(3)

Plan submission

The Secretary may only reimburse a producer or handler under this section if the producer or handler submits to the Secretary an organic transition plan that provides—

(A)

the expected costs for infrastructure and practices;

(B)

the environmental and economic benefits derived from the infrastructure or implementing organic practice standards; and

(C)

a demonstration of the existence of a market or the reasonable expectation of a future market for the products to be produced or handled.

(4)

Appropriate infrastructure and practice standards

The Secretary shall only reimburse producers and handlers under this subsection for the costs of the following:

(A)

Organic practices and activities during transition to certified organic production consistent with an approved plan to transition to certified organic production.

(B)

Farm infrastructure necessary to implement organic practice standards, including livestock watering facilities and fencing, so long as such infrastructure is consistent with an approved plan to transition to certified organic production.

(C)

Organic livestock welfare measures, so long as such infrastructure or practices and activities are necessary to implement an organic practice standard and are consistent with an approved plan to transition to certified organic production.

(D)

Advanced organic practices consistent with approved certified organic production.

(E)

Technical assistance, including the costs of developing an approved transition plan under this section.

(F)

Other measures the Secretary, after consultation with the National Organic Standards Board, determines are appropriate.

(5)

Organic transition technical advice

The Secretary shall consult with the National Organic Standards Board regarding the elements of an approved organic transition plan and to identify and recommend ways that the Secretary may generally use the resources provided for programs under subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) to facilitate transition to organic production, including the resources provided by the environmental quality incentives program and the conservation security program.

(6)

Maximum amount for transition reimbursement

(A)

In general

Except as provided in subparagraphs (B) and (C), the maximum amount of reimbursement paid to a producer or handler for transition to organic production under this section shall be $10,000 per fiscal year.

(B)

Specialty Crops

In the case of an individual or entity who annually produces 3 or more types of specialty crops, the individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section that, in the aggregate, exceed $20,000 per year, for a period not to exceed 4 years.

(C)

Dairy

In the case of an individual or entity whose principal farming enterprise is dairy, the individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section that, in the aggregate, exceed $20,000 per year, for a period not to exceed 4 years.

(7)

Eligible fiscal years

A producer or handler may only receive payments—

(A)

for 4 fiscal years; and

(B)

after the first payment, for the fiscal year during which the payment is made and the 3 subsequent fiscal years.

(8)

Transition reimbursements

A certified organic producer or handler under the national organic production program shall be eligible for reimbursements to make the transition to organic production for new lands and livestock.

(9)

Suspension authority

To ensure orderly and continued growth in organic farming—

(A)

prior to each fiscal year and not later than October 1st of each year, the Secretary shall publish organic commodity specific assessments analyzing the domestic production and consumption, and the import and export organic market demand and growth potential, for each organic commodity and the anticipated number and total amount of new reimbursements for the following year affecting each commodity; and

(B)

the Secretary shall not enroll new producers under this subsection if, for any particular agricultural commodity, any new producers would produce an increased amount of that agricultural commodity that the Secretary finds is reasonably anticipated to affect the continuing economic viability of agricultural producers currently certified under the national organic production program or would create unreasonable geographic disparities in the distribution of reimbursements provided under this section.

(10)

Appeals

An applicant seeking transition assistance under this section has the right to appeal an adverse decision by Secretary with regard to an application for assistance, as provided in section 275 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6995).

(e)

Technical and educational assistance

Of the funds made available under subsection (a) for a fiscal year, the Secretary shall provide technical and educational assistance to producers and handlers to carry out this section, including entering into cooperative agreements with qualified entities to implement the transition to organic production.

(f)

Reporting

Not later than March 1 of each year, the Secretary shall submit to Congress and the National Organic Standards Board a report detailing State-by-State expenditures on certification, including the number of producers and handlers served by the program, and State-by-State expenditures on transition assistance, including the number of producers and handlers served by the program, the practices implemented, an assessment of the impacts of the program on organic production, and recommended reforms, if any.

.

B

Trade

3101.

Technical assistance for specialty crops

Section 3205 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5680) is amended by striking subsection (d) and inserting the following:

(d)

Petition

A participant in the program may petition the Secretary for an extension of a project carried out under this section that exceeds, or will exceed, applicable time restrictions.

(e)

Funding

(1)

In general

The Secretary shall make available of funds of, or an equal value of commodities owned by, the Commodity Credit Corporation—

(A)

$4,000,000 for fiscal year 2008;

(B)

$6,000,000 for fiscal year 2009;

(C)

$8,000,000 for fiscal year 2010; and

(D)

$10,000,000 for each of fiscal years 2011 through 2014.

(2)

Carryover of unobligated funds

In a case in which the total amount of funds or commodities made available under paragraph (1) for a fiscal year is not obligated in that fiscal year, the Secretary shall make available in the subsequent fiscal year an amount equal to—

(A)

the amount made available for the fiscal year under paragraph (1); plus

(B)

the amount not obligated in the previous fiscal year.

.

C

Nutrition

3201.

Expansion of fresh fruit and vegetable program

Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended—

(1)

in subsection (g)—

(A)

in paragraph (1)—

(i)

in the matter preceding subparagraph (A), by striking July 2004 and inserting July 2007; and

(ii)

by striking subparagraphs (A) and (B) and inserting the following:

(A)

100 elementary schools or secondary schools in each State;

(B)

additional elementary schools or secondary schools in each State, in accordance with the proportion that—

(i)

the total student population of the State; bears to

(ii)

the total student population of all States; and

;

(B)

in paragraph (3)(A), by striking paragraph (1)(B) and inserting paragraph (1);

(C)

in subparagraphs (A) and (B) of paragraph (5) by striking 2008 each place it appears and inserting 2014; and

(D)

in paragraph (6)(B)—

(i)

in clause (i)—

(I)

by striking October 1, 2004 and inserting October 1, 2007; and

(II)

by striking $9,000,000 and inserting $200,000,000; and

(ii)

by adding at the end the following:

(iii)

Administrative expenses

For fiscal year 2008 and each fiscal year thereafter, of amounts made available to carry out this subsection, the Secretary may use not more than 1 percent for administrative expenses of carrying out this subsection.

(iv)

State administrative costs

(I)

In general

Subject to subclause (II), for fiscal year 2008 and each fiscal year thereafter, of amounts made available to a State to carry out this subsection, the State may use not more than 5 percent for administrative expenses of carrying out this subsection.

(II)

Requirement

To be eligible to use funds under subclause (I), a State shall submit to the Secretary a plan indicating the manner in which the State intends to use the funds.

(v)

Federal requirements

Not later than 1 year after the date of enactment of this clause, and periodically thereafter as the Secretary determines to be appropriate, the Secretary shall establish requirements for States in administering this subsection.

; and

(2)

in subsection (i)(2), by striking such sums as are necessary and all that follows through the period at the end and inserting to carry out this subsection $20,000,000 for each of fiscal years 2008 through 2014..

3202.

Authorization level for farm-to-cafeteria activities

Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended in subsection (i)(2) by striking such sums as are necessary and all that follows through the period at the end and inserting to carry out this subsection $20,000,000 for each of fiscal years 2008 through 2014..

3203.

WIC farmers' market nutrition program

Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended—

(1)

in clause (i), by striking 2009 and inserting 2014; and

(2)

by striking clause (ii) and inserting the following:

(ii)

Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this subsection, to remain available until expended—

(I)

$20,000,000 for fiscal year 2008;

(II)

$30,000,000 for fiscal year 2009;

(III)

$45,000,000 for fiscal year 2010;

(IV)

$60,000,000 for fiscal year 2011; and

(V)

not less than $75,000,000 for fiscal year 2012 and each fiscal year thereafter.

.

3204.

Seniors farmers’ market nutrition program

Section 4402 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007) is amended—

(1)

by striking subsection (a) and inserting the following:

(a)

Establishment

Of funds available to the Commodity Credit Corporation, the Secretary of Agriculture (referred to in this section as the Secretary) shall use to carry out and expand a seniors farmers' market nutrition program—

(1)

$20,000,000 for fiscal year 2008;

(2)

$30,000,000 for fiscal year 2009;

(3)

$45,000,000 for fiscal year 2010;

(4)

$60,000,000 for fiscal year 2011; and

(5)

not less than $75,000,000 for fiscal year 2012 and each fiscal year thereafter.

;

(2)

in subsection (b)—

(A)

in paragraph (2), by striking and at the end;

(B)

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

(C)

by adding at the end the following:

(4)

to promote the transition to organic and other environmentally beneficial food production systems.

;

(3)

by redesignating subsection (c) as subsection (d); and

(4)

by inserting after subsection (b) the following:

(c)

Eligible participants; benefits levels

Regulations issued pursuant to subsection (d)—

(1)

shall allow for participation by participants in farmers' markets, roadside stands, and community supported agriculture programs; and

(2)

shall not limit the ability of any State or regional program to set benefit levels for individual seniors.

.

3205.

Use of Dietary Guidelines for Americans in special nutrition programs and school lunch programs

Section 9(a) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(a)) is amended by adding at the end the following:

(5)

Allocations to be based on dietary guidelines

For the school year beginning in July 2007 and each school year thereafter, the Secretary shall ensure that allocations of food and food ingredients offered in school nutrition programs under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) are based on the most recent Dietary Guidelines for Americans.

.

3206.

Food stamp fruit and vegetable electronic benefit transfer pilot project

(a)

Finding

Congress finds that increased consumption of fruits and vegetables by participants in the food stamp program will significantly improve the overall dietary habits of the participants.

(b)

Pilot Project

The Secretary shall establish and carry out a pilot project that will provide to each participant in the food stamp program who receives benefits in the form of an electronic benefit transfer, financial incentives for each dollar of those benefits expended by the recipient to facilitate the purchase of fresh fruits and vegetables.

(c)

Authorization of Appropriations

There is authorized to be appropriated $10,000,000 for each of fiscal years 2008 through 2014 to carry out this section.

3207.

Purchases of locally produced foods

(a)

Findings

Congress finds that—

(1)

locally produced agricultural products, as compared to products transported from distant sources—

(A)
(i)

are often harvested closer to full ripeness; and

(ii)

can provide higher nutritional quality;

(B)

can provide improved ripeness, taste, and selection, which can increase rates of consumption of agricultural products; and

(C)

are more efficient to store, distribute, and package; and

(2)

use of local produce to carry out nutrition programs—

(A)

reduces dependence on foreign oil by reducing fuel consumption rates associated with the production or transportation of agricultural products;

(B)

can improve the ability of users of the procurement system to provide education relating to nutrition, farming, sustainability, energy efficiency, and the importance of local purchases to the local economy;

(C)

helps to maintain a robust logistics network for agricultural product procurement; and

(D)

promotes farm, business, and economic development by accessing local markets.

(b)

Program improvements

Section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) is amended—

(1)

in paragraph (1)—

(A)

by striking In general and inserting Purchases; and

(B)

by striking subparagraph (A) and inserting the following:

(A)

allow institutions described in paragraph (3)(A)—

(i)

to purchase, in addition to other food purchases, locally produced foods for school meal programs, to the maximum extent practicable and appropriate; and

(ii)

to establish, in compliance with Federal and State procurement laws (including regulations), preapproved suppliers and product lists that require a comprehensive competitive evaluation before a supplier or product is included on the list;

;

(2)

by redesignating paragraph (2) as paragraph (6);

(3)

by inserting after paragraph (1) the following:

(2)

Department of Defense

Notwithstanding any other provision of law, the Secretary of Defense may elect to use a geographic preference to purchase locally produced agricultural products for—

(A)

the Defense Supply Center Philadelphia;

(B)

the Department of Defense Farm to School Program;

(C)

the Department of Defense Fresh Fruit and Vegetable Program;

(D)

the service academies of the Department of Defense;

(E)

Department of Defense domestic dependent schools;

(F)

other Department of Defense schools under chapter 108 of title 10, United States Code;

(G)

commissary and exchange stores of the Department of Defense; and

(H)

morale, welfare, and recreation facilities operated by the Department of Defense.

(3)

Department of Agriculture and related entities

(A)

In general

Notwithstanding any other provision of law, the Secretary or the head of any school, local educational agency, or other entity, as applicable, may elect to use a geographic preference to purchase locally produced agricultural products for—

(i)

the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773);

(ii)

the school lunch program established under this Act;

(iii)

the summer food service program for children established under section 13; and

(iv)

the child and adult care food program established under section 17.

(B)

Report

The head of any school, local educational agency, or other entity participating in a program described in subparagraph (A) that makes an election under that subparagraph shall submit to the Secretary a report describing any case in which the school, local educational agency, or other entity pays an amount in excess of an amount equal to 10 percent more than the lowest applicable bid to purchase locally produced agricultural products.

(4)

Treatment of certain bids

(A)

In general

On making an election under paragraph (2) or (3), the Secretary, the Secretary of Defense, or the head of any school, local educational agency, or other entity participating in a program described in paragraph (3)(A) may—

(i)

include in the text of any bid a description of the election;

(ii)

select any bid involving a locally produced agricultural product, regardless of whether the bid is the lowest bid relating to the agricultural product; and

(iii)

subject to subparagraph (B), acquire agricultural products from preapproved local and regional vendors and distributors authorized by the Secretary that have agreed to supply eligible products to the above referenced schools and service institutions.

(B)

Requirements

To be eligible to be preapproved by the Secretary a vendor or distributor described in subparagraph (A)(iii) shall—

(i)

demonstrate an ability to supply agricultural products from local growers and processors;

(ii)

comply with food safety standards developed by the Secretary; and

(iii)

consistently provide agricultural products that meet standards of grade, size, freshness, and quality as required by the Secretary or local procurement officer.

(C)

Relation to State procurement laws

Nothing in this paragraph precludes a school or service institution described in subparagraph (A) from purchasing agricultural products from potential local farmers in compliance with applicable State procurement laws.

(5)

Review

The Secretary and the Secretary of Defense shall periodically review each election to use a geographic preference under this subsection to prevent fraud or abuse.

; and

(4)

in paragraph (6)(A) (as redesignated by paragraph (2)), by striking 2009 and inserting 2014.

3208.

Assistance for community food projects

Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is amended—

(1)

in subsection (b)—

(A)

in paragraph (1), by striking From amounts made available to carry out this Act, the Secretary may and inserting The Secretary shall; and

(B)

by striking paragraph (2) and inserting the following:

(2)

Funding amounts

From amounts made available to carry out this Act, the Secretary shall use $30,000,000 for each of fiscal years 2008 through 2014 to make grants under this section, adjusted to reflect changes for the 12-month period ending the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

;

(2)

in subsection (d)—

(A)

in paragraph (3), by striking or 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)

serve special project needs in areas of—

(A)

transportation and processing for expanding institutional and emergency food service demand for local food;

(B)

retail access to healthy foods in underserved markets;

(C)

integration of urban and metro-area food production in food projects; and

(D)

technical assistance for youth, socially disadvantaged individuals, and limited resource groups.

;

(3)

in subsection (e)(1), by striking 50 and inserting 75;

(4)

in subsection (f)(2), by striking 3 and inserting 5; and

(5)

in subsection (h)(4)—

(A)

by striking 2007 and inserting 2014; and

(B)

by striking $200,000 and inserting $500,000.

3209.

Increased purchases of fruits and vegetables

Section 10603 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4) is amended—

(1)

in subsection (a)—

(A)

by striking Of the funds and inserting the following:

(1)

In general

Of the funds

;

(B)

in paragraph (1) (as designated by paragraph (1)), by striking shall use not and inserting shall use, in addition to an amount equal to the amount used for fiscal year 2001, not; and

(C)

by adding at the end the following:

(2)

No effect on other purchases

The purchase of additional fruits, vegetables, and other specialty food crops under paragraph (1) shall not decrease, displace, or otherwise affect any purchase by the Secretary.

(3)

Surplus removal waiver

Notwithstanding any other provision of law, the Secretary may waive the application of any provision of section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), in order to comply with this subsection.

; and

(2)

by striking subsection (b) and inserting the following:

(b)

Expansion of DoD fresh fruit and vegetable distribution program

Of the funds set aside under subsection (a)(1), the Secretary shall use to purchase fresh fruits and vegetables for distribution to schools and service institutions in accordance with section 6(a) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755(a)), not less than—

(1)

$50,000,000 for fiscal year 2008;

(2)

$70,000,000 for the period of fiscal years 2009 through 2010;

(3)

$100,000,000 for fiscal year 2011; and

(4)

$125,000,000 for each of fiscal years 2012 through 2014.

.

D

Research

3301.

National specialty crops development initiative grant program

(a)

Establishment

The Secretary shall establish a program to award grants to eligible entities to improve the efficiency and competitiveness of United States specialty crop producers.

(b)

Eligible entities

(1)

In general

Subject to paragraph (2), the Secretary shall determine eligibility standards for grants under this section.

(2)

Inclusions

Eligible entities shall include—

(A)

nonprofit United States specialty crop trade organizations and foundations;

(B)

nonprofit State and regional specialty crop organizations;

(C)

Federal agencies;

(D)

United States specialty crop agricultural cooperatives;

(E)

agricultural commodity boards and commissions; and

(F)

research and extension programs of institutions of higher education focusing on the specialty crop industry.

(c)

Use of Funds

As a condition of receiving a grant under this section, an eligible entity shall agree to use funds from grants for—

(1)

research that addresses the short-term, intermediate, and long-term needs of the United States specialty crop industry, including production technology (such as plant breeding, pest and disease management, production, physiology, food science), mechanization, marketing, product development, health and nutrition, food security, and food safety to improve the competitiveness of the United States specialty crop industry; or

(2)

development and implementation of industry-specific strategic plans to prioritize research and develop United States specialty crop industry and research collaboration.

(d)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section—

(1)

$50,000,000 for each of fiscal years 2008 and 2009;

(2)

$75,000,000 for each of fiscal years 2010 through 2012; and

(3)

$100,000,000 for each of fiscal years 2013 and 2014.

3302.

Organic agriculture research and extension initiative

Section 1672B(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(e)) is amended to read as follows:

(e)

Funding

Of the funds available to the Commodity Credit Corporation, the Secretary shall use $15,000,000 for each of fiscal years 2008 through 2014 to carry out this section.

.

3303.

National Aquaculture Act of 1980

Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) is amended by striking 2007 each place it appears and inserting 2014.

3304.

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 2007 and inserting 2014.

E

Invasive pest research and disease response

3401.

Threat identification and mitigation program

(a)

Establishment

The Secretary, acting through the Administrator of the Animal and Plant Health Inspection Service, shall establish a program to determine and prioritize foreign threats to domestic production of specialty crops, including threats of bioterrorism.

(b)

Program

In conducting the program established under subsection (a), the Secretary shall—

(1)

consult with the Director of the Center for Plant Health Science and Technology;

(2)

conduct in partnership with States, early pest detection and surveillance activities associated with the Cooperative Agricultural Pest Survey;

(3)

develop risk assessments of the potential threat to the specialty crop industry in the United States from foreign threats;

(4)

collaborate with the National Plant Board—

(A)

to prioritize foreign threats to the specialty crop industry; and

(B)

in consultation with State departments of agriculture and other State or regional resource partnerships, develop action plans that effectively address the foreign threats, including pathway analysis, offshore mitigation measures, and comprehensive exclusion measures at ports of entry and other key distribution centers in addition to strategies to employ if the foreign pest or disease is introduced;

(5)

implement action plans developed under paragraph (4)(B) as soon as the action plans developed to test the effectiveness of the action plans and help prevent new foreign and domestic pest and disease threats from being introduced or widely disseminated in the United States;

(6)

as appropriate, consult with the Administrator of the Agricultural Research Service and use the expertise of the Agricultural Research Service in the development of pest and disease detection and control or eradication strategies; and

(7)

after prioritizing foreign threats and developing action plans under paragraph (4), consult with the United States Trade Representative to ensure that future trade agreements include measures to mitigate the threats.

(c)

Reports

Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary shall update and submit to Congress the priority list and action plans described in subsection (b)(4), including an accounting of funds expended on the action plans.

(d)

Funding

(1)

In general

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $40,000,000 for each of fiscal years 2008 through 2014.

(2)

Prohibition

The Secretary may not use funds made available under paragraph (1) to carry out eradication efforts that enhance import opportunities into the United States.

3402.

Clean plant network

(a)

In general

The Secretary shall establish a program to be known as the National Clean Plant Network (referred to in this section as the Program).

(b)

Requirements

Under the Program, the Secretary shall establish a network of clean plant centers for diagnostic and pathogen elimination services to—

(1)

produce clean propagative plant material; and

(2)

maintain blocks of pathogen-tested plant material in sites located throughout the United States.

(c)

Availability of clean plant source material

Clean plant source material may be made available to—

(1)

a State for a certified plant program of the State; and

(2)

private nurseries and growers.

(d)

Consultation and collaboration

In carrying out the Program, the Secretary shall—

(1)

consult with State departments of agriculture and land grant universities; and

(2)

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.

(e)

Funding

The Secretary shall use $5,000,000 each year of funds of the Commodity Credit Corporation to carry out the Program.

3403.

Office of Pest Management Policy

(a)

Purpose

The purpose of this section is to establish an Office of Pest Management Policy in the Department to provide for the effective coordination of agricultural policies and activities related to pesticides and the development and use of pest management tools, taking into account the effects of regulatory actions of government agencies.

(b)

Establishment of Office

(1)

In general

The Secretary shall establish in the Department an Office of Pest Management Policy (referred to in this section as the Office).

(2)

Director

The head of the Office shall be a Director (referred to in this section as the Director) who shall—

(A)

be appointed by the Secretary; and

(B)

report directly to the Secretary or a designee of the Secretary.

(c)

Duties

The Director shall—

(1)

develop and coordinate Department policy on pest management and pesticides;

(2)

coordinate activities and services of the Department (including research, extension, and education activities) regarding the development, availability, and use of economically- and environmentally-sound pest management tools and practices;

(3)

assist other agencies of the Department in fulfilling the responsibilities of the agencies related to pest management or pesticides under—

(A)

the Food Quality Protection Act of 1996 (7 U.S.C. 136 note; Public Law 104–170);

(B)

the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.);

(C)

the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); and

(D)

other applicable laws; and

(4)

carry out such other functions as may be required by law or prescribed by the Secretary.

(d)

Interagency coordination

In carrying out the responsibilities of the Office, the Director shall provide leadership, to the maximum extent practicable, to ensure coordination of interagency activities with—

(1)

the Environmental Protection Agency;

(2)

the Food and Drug Administration; and

(3)

other applicable Federal and State agencies.

(e)

Outreach

As necessary to carry out the responsibilities of the Office, the Director shall consult with agricultural producers that may be affected by pest management or pesticide-related activities or actions of the Department or other agencies.

(f)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2008 through 2014.

3404.

Food safety initiatives

(a)

Initiative Authorized

The Secretary may carry out a food safety education program to educate the public and persons in the fresh produce industry about—

(1)

scientifically proven practices for reducing microbial pathogens on fresh produce; and

(2)

methods of reducing the threat of cross-contamination of fresh produce through unsanitary handling practices.

(b)

Cooperation

The Secretary may carry out the education program in cooperation with public and private partners.

(c)

Authorization of Appropriations

There is authorized to be appropriated to the Secretary to carry out this section $1,000,000.

F

Miscellaneous

3501.

Transportation infrastructure cost reduction grant program

(a)

In general

The Secretary, acting through the Transportation Services Branch of the Agricultural Marketing Service, may make grants under this section to an eligible entity described in subsection (b)—

(1)

to expand and improve transportation infrastructure to improve the cost-effective movement of specialty crops to markets inside or outside the United States; and

(2)

to address regional intermodal transportation deficiencies that adversely affect the movement of specialty crops to markets inside or outside the United States.

(b)

Eligible grant recipients

Grants may be made under this section to—

(1)

State and local governments;

(2)

grower cooperatives;

(3)

individual specialty crop producers or groups of producers;

(4)

individual shippers; and

(5)

State and regional producer and shipper organizations.

(c)

Matching funds

To be eligible for a grant under this section, the recipient of a grant under this section shall contribute an amount of non-Federal funds to carry out the project for which the grant is provided that is at least equal to the amount of grant funds received by the recipient under this section.

(d)

Funding

For each of fiscal years 2008 through 2014, the Secretary shall use $75,000,000 of funds of the Commodity Credit Corporation to make grants under this section.

3502.

Census of specialty crops

(a)

Establishment

Not later than September 30, 2008, and each 5 years thereafter, the Secretary shall conduct a census of specialty crops to assist in the regular development and dissemination of information relative to specialty crops.

(b)

Relation to other census

The Secretary may include the census of speciality crops in the census on agriculture.

IV

Trade

4001.

McGovern-Dole International Food for Education and Child Nutrition Program

(a)

Administration

Section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1) is amended—

(1)

in subsections (b), (c)(2)(B), (f)(1), (h), and (i), by striking President each place it appears and inserting Secretary;

(2)

in subsection (d), in the matter preceding paragraph (1), by striking The President shall designate 1 or more Federal agencies to and inserting The Secretary shall; and

(3)

in subsection (f)(2), in the matter preceding subparagraph (A), by striking implementing agency and inserting Secretary.

(b)

Funding

Section 3107(l) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)) is amended—

(1)

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

(1)

Use of Commodity Credit Corporation funds

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section not less than, to remain available until expended—

(A)

$140,000,000 for fiscal year 2008;

(B)

$180,000,000 for fiscal year 2009;

(C)

$220,000,000 for fiscal year 2010;

(D)

$260,000,000 for fiscal year 2011; and

(E)

$300,000,000 for each of fiscal years 2012 through 2014.

;

(2)

by redesignating paragraph (3) as paragraph (2); and

(3)

in paragraph (2) (as redesignated by paragraph (2)), by striking any Federal agency implementing or assisting and inserting the Department of Agriculture or any other Federal agency assisting.

V

Nutrition

A

Food stamp program

5001.

Exclusion of combat-related military pay from countable income

Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended—

(1)

by striking and 18 and inserting (18); and

(2)

by inserting before the period at the end the following: , and (19) any additional payment received under chapter 5 of title 37, United States Code, by (or as an allotment to or transfer from) a member of the United States Armed Forces deployed to a designated combat zone for the duration of the deployment to or service in a combat zone of the member if the additional pay was not received immediately prior to serving in that or another combat zone.

5002.

Ending benefit erosion

Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amended—

(1)

in subparagraph (A)(ii), by striking not less than $134 and all that follows through the period at the end and inserting “not less than—

(I)

$147, $251, $207, and $129, respectively; and

(II)

for fiscal year 2009 and each fiscal year thereafter, an amount that is equal to the amount that applies to the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

; and

(2)

in subparagraph (B)(ii), by striking not less than $269 and all that follows through the period at the end and inserting “not less than—

(I)

$295; and

(II)

for fiscal year 2009 and each fiscal year thereafter, an amount that is equal to the amount that applies to the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.

.

5003.

Supporting working families with child care expenses

Section 5(e)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(3)(A)) is amended by striking , the maximum allowable level of which shall be $200 per month for each dependent child under 2 years of age and $175 per month for each other dependent,.

5004.

Retirement and education savings exclusion

(a)

Allowable financial resources

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended—

(1)

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

(g)

Allowable financial resources

(1)

Total amount

(A)

In general

The Secretary

;

(2)

in subparagraph (A) (as designated by paragraph (1)—

(A)

by inserting (as adjusted in accordance with subparagraph (B)) after $2,000; and

(B)

by inserting (as adjusted in accordance with subparagraph (B)) after $3,000; and

(3)

by adding at the end the following:

(B)

Adjustment for inflation

(i)

In general

Beginning on October 1, 2007, and each October 1 thereafter, the amounts in subparagraph (A) shall be adjusted to the nearest $100 increment to reflect changes for the 12-month period ending the preceding June in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(ii)

Requirement

Each adjustment under clause (i) shall be based on the unrounded amount for the prior 12-month period.

.

(b)

Exclusion of retirement accounts from countable financial resources

(1)

In general

Section 5(g)(2)(B)(v) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking or retirement account (including an individual account) and inserting account.

(2)

Mandatory and discretionary exclusions

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the end the following:

(7)

Exclusion of retirement accounts from countable financial resources

(A)

Mandatory exclusions

The Secretary shall exclude from financial resources under this subsection the value of any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of title 5, United States Code.

(B)

Discretionary exclusions

The Secretary may exclude from financial resources under this subsection the value of any other retirement plans, contracts, or accounts (as determined by the Secretary, by regulation).

.

(c)

Exclusion of education accounts from countable financial resources

Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at the end the following:

(8)

Exclusion of education accounts from countable financial resources

(A)

Mandatory exclusions

The Secretary shall exclude from financial resources under this subsection the value of any funds in a qualified tuition program described in section 529 of the Internal Revenue Code of 1986 or in a Coverdell education savings account under section 530 of that Code.

(B)

Discretionary exclusions

The Secretary may exclude from financial resources under this subsection the value of any other education programs, contracts, or accounts (as determined by the Secretary through regulation).

.

5005.

Food stamp eligibility for unemployed adults

Section 6(o)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2015(o)(2)) is amended in the matter preceding subparagraph (A)—

(1)

by striking 36-month and replacing it with 24-month; and

(2)

by striking 3 and replacing it with 6.

5006.

Availability of commodities for the emergency food assistance program

Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is amended—

(1)

by striking (a) Purchase of commodities.— and all that follows through through 2007 and inserting the following:

(a)

Purchase of commodities

(1)

In general

Subject to paragraph (2), for each of fiscal years 2008 through 2012

; and

(2)

by striking $140,000,000 of; and

(3)

by adding at the end the following:

(2)

Amounts

The Secretary shall use to carry out this subsection $250,000,000 for fiscal year 2008.

.

B

Food service industry job training for low-income adults

5101.

Short title

This subtitle may be cited as the Food Employment Empowerment and Development Program Act of 2007 or the FEED Act of 2007.

5102.

Definitions

In this subtitle:

(1)

Eligible entity

The term eligible entity means an entity that meets the requirements of section 4013(b).

(2)

Vulnerable subpopulation

(A)

In general

The term vulnerable subpopulation means low-income individuals, unemployed individuals, and other subpopulations identified by the Secretary as being likely to experience special risks from hunger or a special need for job training.

(B)

Inclusions

The term vulnerable subpopulation includes—

(i)

addicts (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802));

(ii)

at-risk youths (as defined in section 1432 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6472));

(iii)

individuals that are basic skills deficient (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801));

(iv)

homeless individuals (as defined in section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b));

(v)

homeless youths (as defined in section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a));

(vi)

individuals with disabilities (as defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102));

(vii)

low-income individuals (as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801)); and

(viii)

older individuals (as defined in section 102 of the Older Americans Act of 1965 (42 U.S.C. 3002)).

5103.

Food employment empowerment and development program

(a)

Establishment

The Secretary shall establish a food employment empowerment and development program under which the Secretary shall make grants to eligible entities to encourage the effective use of community resources to combat hunger and the root causes of hunger by creating opportunity through food recovery and job training.

(b)

Eligible Entities

To be eligible to receive a grant under this section, an entity shall be a public agency, or private nonprofit institution, that conducts, or will conduct, 2 or more of the following activities as an integral part of the normal operation of the entity:

(1)

Recovery of donated food from area restaurants, caterers, hotels, cafeterias, farms, or other food service businesses.

(2)

Distribution of meals or recovered food to—

(A)

nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code of 1986;

(B)

entities that feed vulnerable subpopulations; and

(C)

other agencies considered appropriate by the Secretary.

(3)

Training of unemployed and underemployed adults for careers in the food service industry.

(4)

Carrying out of a welfare-to-work job training program in combination with—

(A)

production of school meals, such as school meals served under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or

(B)

support for after-school programs, such as programs conducted by community learning centers (as defined in section 4201(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7171(b))).

(c)

Use of funds

An eligible entity may use a grant awarded under this section for—

(1)

capital investments related to the operation of the eligible entity;

(2)

support services for clients, including staff, of the eligible entity and individuals enrolled in job training programs;

(3)

purchase of equipment and supplies related to the operation of the eligible entity or that improve or directly affect service delivery;

(4)

building and kitchen renovations that improve or directly affect service delivery;

(5)

educational material and services;

(6)

administrative costs, in accordance with guidelines established by the Secretary; and

(7)

additional activities determined appropriate by the Secretary.

(d)

Preferences

In awarding grants under this section, the Secretary shall give preference to eligible entities that perform, or will perform, any of the following activities:

(1)

Carrying out food recovery programs that are integrated with—

(A)

culinary worker training programs, such as programs conducted by a food service management institute under section 21 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769b–1);

(B)

school education programs; or

(C)

programs of service-learning (as defined in section 101 of the National and Community Service Act of 1990 (42 U.S.C. 12511)).

(2)

Providing job skills training, life skills training, and case management support to vulnerable subpopulations.

(3)

Integrating recovery and distribution of food with a job training program.

(4)

Maximizing the use of an established school, community, or private food service facility or resource in meal preparation and culinary skills training.

(5)

Providing job skills training, life skills training, and case management support to vulnerable subpopulations.

(e)

Eligibility for Job Training

To be eligible to receive job training assistance from an eligible entity using a grant made available under this section, an individual shall be a member of a vulnerable subpopulation.

(f)

Performance Indicators

The Secretary shall establish, for each year of the program, performance indicators and expected levels of performance for meal and food distribution and job training for eligible entities to continue to receive and use grants under this section.

(g)

Technical Assistance

(1)

In general

The Secretary shall provide technical assistance to eligible entities that receive grants under this section to assist the eligible entities in carrying out programs under this section using the grants.

(2)

Form

Technical assistance for a program provided under this subsection includes—

(A)

maintenance of a website, newsletters, email communications, and other tools to promote shared communications, expertise, and best practices;

(B)

hosting of an annual meeting or other forums to provide education and outreach to all programs participants;

(C)

collection of data for each program to ensure that the performance indicators and purposes of the program are met or exceeded;

(D)

intervention (if necessary) to assist an eligible entity to carry out the program in a manner that meets or exceeds the performance indicators and purposes of the program;

(E)

consultation and assistance to an eligible entity to assist the eligible entity in providing the best services practicable to the community served by the eligible entity, including consultation and assistance related to—

(i)

strategic plans;

(ii)

board development;

(iii)

fund development;

(iv)

mission development; and

(v)

other activities considered appropriate by the Secretary;

(F)

assistance considered appropriate by the Secretary regarding—

(i)

the status of program participants;

(ii)

the demographic characteristics of program participants that affect program services;

(iii)

any new idea that could be integrated into the program; and

(iv)

the review of grant proposals; and

(G)

any other forms of technical assistance the Secretary considers appropriate.

(h)

Relationship to Other Law

(1)

Bill emerson good samaritan food donation act

An action taken by an eligible entity using a grant provided under this section shall be covered by the Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. 1791).

(2)

Food handling guidelines

In using a grant provided under this section, an eligible entity shall comply with any applicable food handling guideline established by a State or local authority.

(3)

Inspections

An eligible entity using a grant provided under this section shall be exempt from inspection under sections 303.1(d)(2)(iii) and 381.10(d)(2)(iii) of volume 9, Code of Federal Regulations (or a successor regulation), if the eligible entity—

(A)

has a hazard analysis and critical control point (HACCP) plan;

(B)

has a sanitation standard operating procedure (SSOP); and

(C)

otherwise complies with the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the Poultry Products Inspection Act (21 U.S.C. 451 et seq.).

(i)

Maximum Amount of Grant

The amount of a grant provided to an eligible entity for a fiscal year under this section shall not exceed $200,000.

(j)

Authorization of Appropriations

(1)

In general

There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2008 through 2014.

(2)

Technical assistance

Of the amount of funds that are made available for a fiscal year under paragraph (1), the Secretary shall use to provide technical assistance under subsection (g) not more than the greater of—

(A)

5 percent of the amount of funds that are made available for the fiscal year under paragraph (1); or

(B)

$1,000,000.

5104.

Hunger-free communities

(a)

Definitions

In this section:

(1)

Domestic hunger goal

The term domestic hunger goal means—

(A)

the goal of reducing hunger in the United States to at or below 2 percent by calendar year 2010; or

(B)

the goal of reducing food insecurity in the United States to at or below 6 percent by calendar year 2010.

(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)

Food security

The term food security means the state in which an individual has access to enough food for an active, healthy life.

(4)

Hunger-free community goal

The term hunger-free community goal means any of the 14 goals described in the H. Con. Res. 302 (102nd Congress), including a goal of a community of—

(A)

having a community-based emergency food delivery network that coordinates the services of programs such as food pantries, food banks, and congregate meals facilities;

(B)

assessing food insecurity problems and evaluating existing services in the community to determine necessary strategies for responding to unmet needs;

(C)

establishing a group of individuals, including low-income participants, to develop and implement policies and programs to combat food insecurity, monitor responsiveness of existing services, and address underlying causes and factors relating to hunger;

(D)

participating in federally-assisted nutrition programs that should be easily accessible to targeted populations, such as Federal programs that provide school breakfast, school lunch, summer food, child care food, and food for homeless and older individuals;

(E)

effectively integrating public and private resources, including local businesses, to alleviate food insecurity;

(F)

having an education program concerning food needs of the community and the need for increased local citizen participation in activities to alleviate food insecurity;

(G)

having available information and referral services for accessing both public and private programs and services;

(H)

having initiatives for alleviating food shopping constraints through the development of creative food resources such as community gardens, buying clubs, food cooperatives, community-owned and operated grocery stores, and farmers’ markets;

(I)

carrying out activities to identify and target food services to high-risk populations;

(J)

having adequate transport and distribution of food from all resources;

(K)

coordinating food services with park and recreation programs and other community-based outlets to which residents of the area would have easy access;

(L)

improving public transportation, human service agencies, and food resources;

(M)

having nutrition education programs for low-income citizens to enhance good food-purchasing and food-preparation skills and to heighten awareness of the connection between diet and health; and

(N)

having a program for collecting and distributing nutritious food, either agricultural commodities in the fields of agricultural producers or foods that have already been prepared, that would otherwise be wasted.

(b)

Hunger reports

(1)

Study

(A)

Timeline

(i)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study of major matters relating to the problem of hunger in the United States, as determined by the Secretary.

(ii)

Update

Not later than 5 years after the date on which the study under clause (i) is conducted, the Secretary shall update the study.

(B)

Matters to be assessed

The matters to be assessed by the Secretary in the study and update under this paragraph shall include—

(i)

data on hunger and food insecurity in the United States;

(ii)

measures carried out during the previous year by Federal, State, and local governments to achieve domestic hunger goals and hunger-free community goals;

(iii)

measures that could be carried out by the Federal Government and State and local governments to achieve domestic hunger goals and hunger-free community goals; and

(iv)

the impact of hunger and household food insecurity on obesity, in the context of poverty and food assistance programs.

(2)

Recommendations

The Secretary shall develop recommendations on—

(A)

removing obstacles to achieving domestic hunger goals and hunger-free community goals; and

(B)

otherwise reducing domestic hunger.

(3)

Report

The Secretary shall submit to the President and Congress—

(A)

not later than 1 year after the date of enactment of this Act, a report that contains—

(i)

a detailed statement of the results of the study, or the most recent update to the study, conducted under paragraph (1)(A); and

(ii)

the most recent recommendations of the Secretary under paragraph (2); and

(B)

not later than 5 years after the date of submission of the report under subparagraph (A), an update of the report.

(c)

Hunger-free community collaborative grants

(1)

Definition of eligible entity

In this subsection, the term eligible entity means a public food program service provider or a nonprofit organization (including an emergency feeding organization) that demonstrates the organization has collaborated, or will collaborate, with 1 or more local partner organizations to achieve at least 1 hunger-free community goal.

(2)

Program authorized

(A)

In general

The Secretary shall use not more than 55 percent of any funds made available for a fiscal year under subsection (f) to make grants to eligible entities to pay the Federal share of the costs of carrying out an activity described in paragraph (4).

(B)

Federal share

The Federal share of the cost of carrying out an activity under this subsection shall not exceed 80 percent, as determined by the Secretary.

(C)

Non-Federal share

(i)

Calculation

The non-Federal share of the cost of an activity under this subsection may be provided in cash or in kind, fairly evaluated, including facilities, equipment, or services.

(ii)

Sources

Any entity may provide the non-Federal share of the cost of an activity under this subsection through a State government, local government, or private source.

(3)

Application

(A)

In general

To receive a grant under this subsection, an eligible entity shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

(B)

Contents

Each application submitted under subparagraph (A) shall—

(i)

identify any activity described in paragraph (4) that the grant will be used to fund;

(ii)

describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity;

(iii)

list any partner organizations of the eligible entity that will participate in an activity funded by the grant;

(iv)

describe any agreement between a partner organization and the eligible entity necessary to carry out an activity funded by the grant; and

(v)

if an assessment described in paragraph (4)(A) has been performed, include—

(I)

a summary of that assessment; and

(II)

information regarding the means by which the grant will help reduce hunger in the community of the eligible entity.

(C)

Priority

In making grants under this subsection, the Secretary shall give priority to eligible entities that—

(i)

demonstrate in the application of the eligible entity that the eligible entity is making collaborative efforts to reduce hunger in the community of the eligible entity; and

(ii)
(I)

serve a predominantly rural and geographically underserved area;

(II)

serve communities in which the rates of food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates;

(III)

provide evidence of long-term efforts to reduce hunger in the community;

(IV)

provide evidence of public support for the efforts of the eligible entity; or

(V)

demonstrate in the application of the eligible entity a commitment to achieving more than 1 hunger-free community goal.

(4)

Use of funds

(A)

Assessment of hunger in the community

(i)

In general

An eligible entity in a community that has not performed an assessment described in clause (ii) may use a grant received under this subsection to perform the assessment for the community.

(ii)

Assessment

The assessment referred to in clause (ii) shall include—

(I)

an analysis of the problem of hunger in the community served by the eligible entity;

(II)

an evaluation of any facility and any equipment used to achieve a hunger-free community goal in the community;

(III)

an analysis of the effectiveness and extent of service of existing nutrition programs and emergency feeding organizations; and

(IV)

a plan to achieve any other hunger-free community goal in the community.

(B)

Activities

An eligible entity in a community that has submitted an assessment described in subparagraph (A) to the Secretary shall use a grant received under this subsection for any fiscal year to carry out activities of the eligible entity, including—

(i)

meeting the immediate needs of people in the community served by the eligible entity who experience hunger by—

(I)

distributing food;

(II)

providing community outreach; or

(III)

improving access to food as part of a comprehensive service;

(ii)

developing new resources and strategies to help reduce hunger in the community;

(iii)

establishing a program to achieve a hunger-free community goal in the community, including—

(I)

a program to prevent, monitor, and treat children in the community experiencing hunger or poor nutrition; or

(II)

a program to provide information to people in the community on hunger, domestic hunger goals, and hunger-free community goals; and

(iv)

establishing a program to provide food and nutrition services as part of a coordinated community-based comprehensive service.

(d)

Hunger-free community infrastructure grants

(1)

Definition of eligible entity

In this subsection, the term eligible entity means an emergency feeding organization (as defined in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501)).

(2)

Program authorized

(A)

In general

The Secretary shall use not more than 45 percent of any funds made available for a fiscal year under subsection (f) to make grants to eligible entities to pay the Federal share of the costs of an activity described in paragraph (4).

(B)

Federal share

The Federal share of the cost of carrying out an activity under this subsection shall not exceed 80 percent, as determined by the Secretary.

(3)

Application

(A)

In general

To receive a grant under this subsection, an eligible entity shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

(B)

Contents

Each application submitted under subparagraph (A) shall—

(i)

identify any activity described in paragraph (4) that the grant will be used to fund; and

(ii)

describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity.

(C)

Priority

In making grants under this subsection, the Secretary shall give priority to eligible entities the applications of which demonstrate 2 or more of the following:

(i)

The eligible entity serves a predominantly rural and geographically underserved area.

(ii)

The eligible entity serves a community in which the rates of food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates.

(iii)

The eligible entity serves a community that has carried out long-term efforts to reduce hunger in the community.

(iv)

The eligible entity serves a community that provides public support for the efforts of the eligible entity.

(v)

The eligible entity is committed to achieving more than 1 hunger-free community goal.

(4)

Use of funds

An eligible entity shall use a grant received under this subsection for any fiscal year to carry out activities of the eligible entity, including—

(A)

constructing, expanding, or repairing a facility or equipment to support hunger relief agencies in the community;

(B)

assisting an emergency feeding organization in the community in obtaining locally-produced produce and protein products; and

(C)

assisting an emergency feeding organization in the community to process and serve wild game.

(e)

Report

Not later than September 30, 2013, the Secretary shall submit to Congress a report describing—

(1)

each grant made under this section, including—

(A)

a description of any activity funded by such a grant; and

(B)

the degree of success of each activity funded by such a grant in achieving hunger-free community goals; and

(2)

the degree of success of all activities funded by grants under this section in achieving domestic hunger goals.

(f)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2013.

C

Other programs

5201.

Summer food service program for children

(a)

Payments to service institutions

Section 13(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1761(b)) is amended—

(1)

in paragraph (1)—

(A)

by striking subparagraph (A);

(B)

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

(C)

in subparagraph (A) (as redesignated by subparagraph (B)), by striking (A) and all that follows through shall not exceed— and inserting the following:

(A)

In general

Subject to subparagraph (B), in addition to amounts made available under paragraph (3), payments to service institutions shall be—

;

(D)

in subparagraph (B) (as redesignated by subparagraph (B)), by striking subparagraph (B) and inserting subparagraph (A); and

(E)

in subparagraph (C) (as redesignated by subparagraph (B)), by striking (A), (B), and (C) and inserting (A) and (B); and

(2)

in the second sentence of paragraph (3), by striking full amount of State approved and all that follows through maximum allowable.

(b)

Conforming amendments

Section 18 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is amended—

(1)

by striking subsection (f); and

(2)

by redesignating subsection (g) through (k) as subsections (f) through (j), respectively.

(c)

Effective date

The amendments made by this section take effect on January 1 of the first full calendar year following the date of enactment of this Act.

5202.

Joint nutrition monitoring and related research activities

The Secretary and the Secretary of Health and Human Services shall continue to provide jointly for national nutrition monitoring and related research activities carried out as of the date of enactment of this Act—

(1)

to collect continuous data relating to diet, health, physical activity, and knowledge about diet and health, using a nationally-representative sample;

(2)

to periodically collect data described in paragraph (1) on special at-risk populations, as identified by the Secretaries;

(3)

to distribute information on health, nutrition, the environment, and physical activity to the public in a timely manner;

(4)

to analyze new data as the data becomes available;

(5)

to continuously update food composition tables; and

(6)

to research and develop data collection methods and standards.

VI

Rural development

6001.

Rural collaborative investment program

Subtitle I of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:

I

Rural collaborative investment program

385A.

Purpose

The purpose of this subtitle is to establish a regional rural collaborative investment program—

(1)

to provide rural regions with a flexible investment vehicle, allowing for local control with Federal oversight, assistance and accountability;

(2)

to provide rural regions with incentives and resources to develop and implement comprehensive strategies for achieving regional competitiveness, innovation, and prosperity;

(3)

to foster multi-sector community and economic development collaborations that will optimize the asset-based competitive advantages of rural regions, with particular emphasis on innovation and entrepreneurship;

(4)

to foster collaborations necessary to provide the professional technical expertise, institutional capacity, infrastructure, financing, and economies of scale that are essential for the long-term competitiveness of rural regions; and

(5)

to better use Department of Agriculture and other Federal, State, and local governmental resources, and to leverage those resources with private, nonprofit, and philanthropic investments, to achieve measurable community and economic prosperity, growth, and sustainability.

385B.

Definitions

In this subtitle:

(1)

Benchmark

The term benchmark means an annual set of goals and performance measures established for the purpose of assessing performance of a regional investment strategy of a Regional Board.

(2)

Competitive advantage

The term competitive advantage means a combination of socioeconomic, demographic, geopolitical, environmental, and organizational conditions in a region, including unique assets and industry or industrial sets, that can be exploited by businesses in the region to emerge and grow more successfully than in alternative locations in order to secure an edge in global markets.

(3)

National Board

The term National Board means the National Rural Investment Board established under section 385C(c).

(4)

Regional board

The term Regional Board means a Regional Rural Investment Board described in section 385D(b).

(5)

Regional competitiveness

The term regional competitiveness means the ability of the businesses, governments, and communities in a region to use all available assets to build critical mass at a regional level, to exploit the inherent economic strengths of the region, and to spur ongoing innovation in the region, in order to achieve sustained improvements in prosperity and quality of life, through successful engagement in the global economy.

(6)

Regional innovation grant

The term regional innovation grant means a grant made by the Secretary to a certified Regional Board under section 385G.

(7)

Regional investment strategy grant

The term regional investment strategy grant means a grant made by the Secretary to a certified Regional Board under section 385F.

(8)

Small-area collaborative partnership

The term small-area collaborative partnership means a partnership that, as determined by the Secretary—

(A)

consists of 5 or more municipalities and other units of government;

(B)

is involved in activities that serve a combined population of at least 5,000 individuals but not more than 25,000 individuals;

(C)

collaborates—

(i)

to generate and retain wealth through entrepreneurship and microenterprise development;

(ii)

to engage youths;

(iii)

to develop strong leadership;

(iv)

to create genuine economic opportunity; and

(v)

to attract and retain residents; and

(D)

serves an economically distressed area.

(9)

Urban area

The term urban area means an urbanized area (as that term is used in section 343(a)(13)(A)).

385C.

Establishment and administration of Rural Collaborative Investment Program

(a)

Establishment

The Secretary shall establish a Rural Collaborative Investment Program to support comprehensive regional investment strategies for achieving rural regional competitiveness.

(b)

Duties of the Secretary

In carrying out this subtitle, the Secretary shall—

(1)

appoint and provide administrative and program support to the National Board;

(2)

work with the National Board to develop a national rural investment plan; and

(3)

encourage the organization of Regional Boards.

(c)

National Rural Investment Board

The Secretary shall establish within the Department of Agriculture an advisory board to be known as the National Rural Investment Board to develop and execute the Rural Collaborative Investment Program in consultation with the Secretary.

(d)

Duties of the National Board

The National Board shall—

(1)

not later than 180 days after the date of the establishment of the National Board, develop rules relating to the operation of the National Board, the provisions of grants, and other appropriate matters to recommend to the Secretary;

(2)

certify a Regional Board seeking to apply for a regional investment strategy grant or regional innovation grant if the Regional Board has sufficient organizational capacity and expertise—

(A)

to fulfill the fiduciary responsibility of managing Federal funds; and

(B)

to execute a regional investment strategy to fulfill the purposes of the Rural Collaborative Investment Program;

(3)

provide grants for Regional Boards to develop and implement regional investment strategies;

(4)

provide technical assistance to Regional Boards on issues, best practices, and emerging trends relating to rural development;

(5)

establish a national institute to provide technical assistance to the Secretary and National Board regarding regional competitiveness and rural entrepreneurship, including—

(A)

development of rigorous analytic programs to assist Regional Boards in determining the challenges and opportunities that need to be addressed to receive the greatest regional competitive advantage;

(B)

oversight and coordination of any technical assistance centers established to assist in supporting Regional Boards;

(C)

providing assistance with development of the national rural investment plan, and other consultations requested by the Secretary or National Board;

(D)

providing support for best practices developed by the Regional Boards;

(E)

establishment of programs to support the development of appropriate governance and leadership skills in the applicable regions; and

(F)

providing assistance to the Secretary and National Board in submission of an annual report on the performance of Regional Boards and the Rural Collaborative Investment Program to—

(i)

the Committee on Agriculture of the House of Representatives;

(ii)

the Committee on Agriculture, Nutrition, and Forestry of the Senate; and

(iii)

the Secretary; and

(6)

evaluate the progress of each Regional Board funded in achieving benchmarks set in a regional investment strategy.

(e)

Membership

(1)

In general

The National Board shall consist of 14 members appointed by the Secretary not later than 180 days after the date of enactment of the Farm, Ranch, Equity, Stewardship, and Health Act of 2007.

(2)

Supervision

The National Board shall be subject to the general supervision and direction of the Secretary.

(3)

Sectors represented

The National Board shall consist of representatives from each of—

(A)

nationally recognized entrepreneurship organizations;

(B)

regional strategy and development organizations;

(C)

community-based organizations;

(D)

elected members of county and municipal governments;

(E)

elected members of State legislatures;

(F)

primary, secondary, and higher education, job skills training, and workforce development institutions;

(G)

the rural philanthropic community;

(H)

financial, lending, venture capital, entrepreneurship, and other related institutions;

(I)

private sector business organizations, including chambers of commerce and other for-profit business interests;

(J)

Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)); and

(K)

cooperative organizations.

(4)

Selection of members

(A)

In general

In selecting members of the National Board, the Secretary shall consider recommendations made by—

(i)

the chairman and ranking member of each of the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate;

(ii)

the majority and minority leaders of the Senate; and

(iii)

the Speaker and minority leader of the House of Representatives.

(B)

Ex-officio members

In consultation with the chairman and ranking member of each of the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may appoint not more than 3 other officers or employees of the Executive Branch to serve as ex-officio, non-voting members of the National Board.

(5)

Term of office

(A)

In general

Subject to subparagraph (B), the term of office of a member of the National Board appointed under paragraph (1) shall be not more than 4 years.

(B)

Staggered terms

The members of the National Board shall be appointed to serve staggered terms.

(6)

Initial appointments

Not later than 90 days after the date of enactment of the Farm, Ranch, Equity, Stewardship, and Health Act of 2007, the Secretary shall appoint the initial members of the National Board under paragraph (1).

(7)

Vacancies

A vacancy on the National Board shall be filled in the same manner as the original appointment.

(8)

Compensation

A member of the National Board shall receive no compensation for service on the National Board, but shall be reimbursed for related travel and other expenses incurred in carrying out the duties of the member of the National Board in accordance with sections 5702 and 5703 of title 5, United States Code.

(9)

Chairperson

The National Board shall select a chairperson from among the members of the National Board.

(10)

Meetings

(A)

Time and place

The National Board shall meet at the call of the chairperson.

(B)

Quorum

A quorum of the National Board shall consist of a majority of the members.

(C)

Majority vote

A decision of the National Board shall be made by majority vote.

(11)

Federal status

For purposes of Federal law, a member of the National Board shall be considered a special Government employee (as defined in section 202(a) of title 18, United States Code).

(12)

Conflict of interest

(A)

In general

No member of the National Board shall vote on any matter respecting any application for a grant or other particular matter pending before the National Board in which, to the knowledge of the member, the member, spouse, or child of the member, partner, or organization in which the member is serving as officer, director, trustee, partner, or employee, or any person or organization with whom the member is negotiating or has any arrangement concerning prospective employment, has a financial interest.

(B)

Violations

A violation of subparagraph (A) by a member of the National Board shall be cause for removal of the member, but shall not impair or otherwise affect the validity of any otherwise lawful action by the National Board in which the member participated.

(f)

Administrative support

The Secretary, on a reimbursable basis from funds made available under section 385E(b)(3), may provide such administrative support to the National Board as the Secretary determines is necessary to carry out the duties of the National Board.

385D.

Regional rural investment boards

(a)

In general

The National Board may provide to Regional Boards regional investment strategy grants and regional innovation grants for use in promoting investment in rural areas.

(b)

Regional Board requirements

(1)

In general

A Regional Rural Investment Board is a multijurisdictional and multisectoral group that represents the long-term economic, community, and cultural interests of a region and that—

(A)

is certified by the Secretary to establish a rural investment strategy and compete for regional innovation grants;

(B)

is composed of residents of a region that is broadly representative of diverse public, nonprofit, and private sector interests in investment in the region, including (to the maximum extent practicable) representatives of—

(i)

units of local government (including multijurisdictional units of local government);

(ii)

nonprofit community-based development organizations, including community development financial institutions and community development corporations;

(iii)

agricultural, natural resource, and other asset-based related industries;

(iv)

in the case of regions with Indian populations, Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b));

(v)

regional development organizations;

(vi)

private business organizations, including chambers of commerce;

(vii)
(I)

institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)));

(II)

tribally controlled colleges or universities (as defined in section 2(a) of Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801(a))); and

(III)

tribal technical institutions;

(viii)

workforce and job training organizations;

(ix)

cooperatives;

(x)

other entities and organizations, as determined by the Regional Board; and

(xi)

consortia of entities and organizations described in clauses (i) through (x);

(C)

represents a region inhabited by—

(i)
(I)

more than 25,000 individuals, as determined in the latest available decennial census conducted under section 141(a) of title 13, United States Code; or

(II)

in the case of a region with a population density of less than 2 individuals per square mile, at least 10,000 individuals, as determined in that latest available decennial census;

(D)

has a membership of which not less than 25 percent, nor more than 40 percent, represents—

(i)

units of local government and Indian tribes described in clauses (i) and (iv) of subparagraph (B);

(ii)

nonprofit community and economic development organizations and institutions of higher education described in clauses (ii) and (vii) of subparagraph (B); or

(iii)

private business (including chambers of commerce and cooperatives) and agricultural, natural resource, and other asset-based related industries described in clauses (iii) and (vi) of subparagraph (B);

(E)

has a membership that may include an officer or employee of a Federal or State agency, serving as an ex-officio, non-voting member of the Regional Board to represent the agency; and

(F)

has organizational documents that demonstrate that the Regional Board shall—

(i)

create a collaborative, inclusive public-private strategy process;

(ii)

develop, and submit to the National Board for approval, a regional investment strategy that meets the requirements of section 385F, with benchmarks—

(I)

to promote investment in rural areas through the use of grants made available under this subtitle; and

(II)

to provide financial and technical assistance to promote a broad-based community development program aimed at increasing and diversifying economic growth, improved community facilities, and improved quality of life;

(iii)

implement the approved regional investment strategy;

(iv)

provide annual reports to the Secretary and the National Board on progress made in achieving the benchmarks of the regional investment strategy, including an annual financial statement; and

(v)

select a non-Federal organization (such as a regional development organization) in the local area served by the Regional Board that has previous experience in the management of Federal funds to serve as fiscal manager of any funds of the Regional Board.

(2)

Urban areas

A resident of an urban area may serve as an ex-officio member of a Regional Board.

(c)

Duties

A Regional Board shall—

(1)

create a collaborative and inclusive planning process for public-private investment within a region;

(2)

develop, and submit to the Secretary for approval, a regional investment strategy;

(3)

develop approaches that will create stable resources for philanthropic donations in the region, to the maximum extent practicable;

(4)

implement an approved regional investment strategy; and

(5)

provide annual reports to the Secretary and the National Board on progress made in achieving the benchmarks of the regional investment strategy, including an annual financial statement.

385E.

Rural Collaborative Investment Program Funding

(a)

In general

If the Secretary approves a national strategy submitted by the National Board, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the National Board $100,000,000, to remain available until expended, for the Board to use to make strategy grants and innovation grants to Regional Boards and to otherwise carry out this subtitle.

(b)

Use by National Board

Of the amount transferred by the Secretary to the National Board under subsection (a), the National Board shall use—

(1)

not more than $10,000,000 to provide strategy grants to Regional Boards under section 385F;

(2)

not less than $72,000,000 to provide innovation grants to Regional Boards under section 385G and long-term loans under section 385I;

(3)

not more than $2,000,000 for each fiscal year to administer the duties of the National Board; and

(4)

not more than $2,000,000 for each fiscal year to administer the national institute on regional rural competitiveness established under section 385C(d)(5).

(c)

Authorization of appropriations

In addition to funds otherwise made available to carry out this subtitle, there are authorized to be appropriated to the National Board such sums as are necessary to carry out this subtitle.

385F.

Regional investment strategy grants

(a)

In general

Using such criteria for approval of grants as shall be established by the National Board, the National Board shall use amounts made available under section 385E(b)(1) to make strategy grant awards to Regional Boards for use in developing, maintaining, evaluating, implementing, and reporting progress on regional investment strategies in accordance with section 385D and this section.

(b)

Regional investment strategy

A regional investment strategy of a Regional Board shall—

(1)

be maintained and updated every 3 years; and

(2)

provide—

(A)

an assessment of the competitive advantages of the region, including—

(i)

an analysis of the economic conditions of the region;

(ii)

an assessment of the current economic performance of the region;

(iii)

a background overview of the population, geography, workforce, transportation system, resources, environment and infrastructure needs of the region; and

(iv)

such other pertinent information as the Secretary or National Board may request;

(B)

an analysis of regional economic and community development challenges and opportunities, including—

(i)

incorporation of relevant material from other government-sponsored or supported strategies and consistency with applicable State, regional, and local workforce investment strategies and other comprehensive economic development strategies; and

(ii)

an identification of past, present, and projected Federal and State economic and community development investments in the region;

(C)

a section describing goals and objectives necessary to solve regional competitiveness challenges, and meet the potential, of the region;

(D)

an overview for use in—

(i)

establishing regional goals and objectives;

(ii)

developing and implementing a regional action strategy;

(iii)

identifying investment priorities and funding sources; and

(iv)

identifying lead organizations to execute portions of the strategy;

(E)

a discussion of the current state of collaborative public, private, and nonprofit participation and investment, and of the strategic roles of public, private, and nonprofit entities, in the development and implementation of the regional investment strategy;

(F)

a section identifying and prioritizing vital projects, programs, and activities for consideration by the National Board and other potential funders and partners, including—

(i)

the identification of sources of funding; and

(ii)

recommendations for leveraging past and potential investments;

(G)

a plan of action to implement the goals and objectives of the regional investment strategy (including promoting public, private, and nonprofit participation and investment) to the maximum extent practicable, which may include—

(i)

the number and quality of jobs, including self-employment, to be created during implementation of the regional investment strategy;

(ii)

the number and types of investments to be made in the region;

(iii)

the growth in public, private, and nonprofit investment in the human, community, and economic assets of the region;

(iv)

changes in per capita income and the rate of unemployment; and

(v)

other projected changes in the economic environment of the region;

(H)

a plan of action to implement the goals and objectives of the regional investment strategy;

(I)

a list of performance measures to be used to evaluate the implementation of the regional investment strategy, including—

(i)

the number and quality of jobs (including self-employed positions) created after implementation of the regional investment strategy;

(ii)

the number and types of investments undertaken in the region;

(iii)

the growth in public, private, and nonprofit investment in the human, community, and economic assets of the region;

(iv)

changes in per capita income; and

(v)

changes in the economic environment of the region;

(J)

a section outlining the methodology for use in cooperating with, and integrating the regional investment strategy with the economic priorities of, the State;

(K)

recommendations for enhancing and protecting the environment and balancing resources through sound management of physical development; and

(L)

such other information as the National Board and the Secretary determine to be appropriate.

(c)

Acceptability of certain strategies

In determining whether a regional investment strategy prepared without the use of funds from a grant provided by the National Board is acceptable, the National Board may determine that the regional investment strategy is acceptable regardless of whether the regional investment strategy meets all requirements in accordance with standards established by the National Board under this section.

(d)

Public participation

In applying for and using any strategy grant under this section, a Regional Board shall actively seek to receive a broad range of opinion from a wide variety of constituencies within a region.

(e)

Maximum amount of grant

The Federal share of a grant award provided to a Regional Board under this section shall not exceed $200,000.

(f)

Cost sharing

(1)

In general

Subject to paragraph (2), of the share of the costs of developing, maintaining, evaluating, implementing, and reporting with respect to a regional investment strategy funded by a grant under this section—

(A)

not more than 25 percent may be paid using funds from the grant; and

(B)

the remaining share shall be provided by the applicable Regional Board or other eligible grantee.

(2)

Form

A Regional Board or other eligible grantee shall pay the share described in paragraph (1)(B) in the form of cash, services, materials, or other in-kind contributions, on the condition that not more than 50 percent of that share is provided in the form of services, materials, and other in-kind contributions.

385G.

Regional innovation grants

(a)

Grants

(1)

In general

The National Board shall provide, on a competitive basis, regional innovation grants to Regional Boards for use in implementing projects and initiatives that are identified in a regional investment strategy approved under section 385F.

(2)

Timing

Beginning 18 months after the date of enactment of the Farm, Ranch, Equity, Stewardship, and Health Act of 2007, the National Board shall provide awards under this section on a quarterly funding cycle.

(b)

Eligibility

For a Regional Board to receive an innovation grant, the National Board shall determine that—

(1)

the regional investment strategy of a Regional Board is approved by the National Board;

(2)

the management and organizational structure of the Regional Board is sufficient to oversee grant projects, including management of Federal funds; and

(3)

the Regional Board has outlined a strategy to achieve, to the maximum extent practicable, the performance-based benchmarks of the project in the regional investment strategy of the Regional Board.

(c)

Selection

Subject to subsection (d), in providing innovation grants under this section, the National Board shall, to the maximum extent practicable, ensure that not more than 10 percent of funds made available to carry out this section for a fiscal year is provided to eligible Regional Boards any 1 State.

(d)

Preferences

In providing innovation grants under this section, the National Board shall give—

(1)

a high priority to strategies that demonstrate significant leverage of capital and quality job creation; and

(2)

a preference to an application proposing projects and initiatives that would—

(A)

advance the overall regional competitiveness of a region;

(B)

address the priorities of a regional rural investment strategy, including priorities that—

(i)

promote cross-sector collaboration, public-private partnerships, or provision of collaborative gap financing or seed capital for program implementation;

(ii)

exhibit collaborative innovation and entrepreneurship, particularly within a public-private partnership; and

(iii)

represent a broad coalition of interests described in section 385D(b)(1)(A);

(C)

include a strategy to leverage public non-Federal and private funds and existing assets, including agricultural assets, natural assets, and public infrastructure, with substantial emphasis placed on the existence of real financial commitments to leverage the available funds;

(D)

create quality jobs;

(E)

enhance the role, relevance, and leveraging potential of community and regional foundations in support of regional investment strategies;

(F)

demonstrate a history, or involve organizations with a history, of successful leveraging of capital for economic development and public purposes;

(G)

address gaps in existing basic services, including technology, within a region;

(H)

address economic diversification, including agricultural and non-agriculturally based economies, within a regional framework;

(I)

improve the overall quality of life in the region (including with respect to education, health care, housing, recreation, and arts and culture);

(J)

achieve or facilitate the achievement of multijurisdictional regional investment strategy and development;

(K)

enhance the potential to expand economic development successes across diverse stakeholder groups within the region;

(L)

include an effective working relationship with 1 or more institutions of higher education, tribally controlled colleges or universities, or tribal technical institutions; and

(M)

help to meet the other regional competitiveness needs identified by a Regional Board.

(e)

Uses

(1)

Leverage

A Regional Board shall prioritize projects and initiatives carried out using funds from an innovation grant provided under this section, based in part on the degree to which members of the Regional Board are able to leverage additional funds for the implementation of the projects.

(2)

Purposes

A Regional Board may use an innovation grant—

(A)

to support the development of critical infrastructure (including technology deployment and services) necessary to facilitate the competitiveness of a region;

(B)

to provide assistance to entities within the region that provide essential public and community services;

(C)

to enhance the value-added production, marketing, and use of agricultural and natural resources within the region, including activities relating to renewable and alternative energy production and usage;

(D)

to assist with entrepreneurship, job training, workforce development, housing, educational, or other quality of life services or needs, relating to the development and maintenance of strong local and regional economies;

(E)

to assist in the development of unique new collaborations that link public, private, and philanthropic resources, including community foundations;

(F)

to provide support for business and entrepreneurial investment, strategy, expansion, and development, including feasibility strategies, technical assistance, peer networks, and business development funds;

(G)

to carry out other broad activities relating to strengthening the economic competitiveness of the region; and

(H)

to provide matching funds to enable community foundations located within the region to build endowments that provide stable philanthropic resources to implement a regional investment strategy.

(3)

Availability of funds

The funds made available to a Regional Board or any other eligible grantee through an innovation grant shall remain available for the 7-year period beginning on the date on which the award is provided, on the condition that the Regional Board or other grantee continues to be certified by the National Board as making adequate progress toward achieving established benchmarks.

(f)

Cost sharing

(1)

In general

Subject to paragraph (2), of the costs of a project funded by an innovation grant under this section—

(A)

not more than 50 percent may be paid using funds from the award, as determined by the Regional Board, by regulation; and

(B)

the remaining share shall be provided by the project applicant in the form of cash (including loans that will be repaid) or services, materials, or other in-kind contributions.

(2)

Waiver of grantee share

The National Board may waive the remaining share required to be paid under paragraph (1)(B) if the National Board determines that such a waiver is appropriate, including with respect to special circumstances within tribal regions, in the event an area experiences—

(A)

a sudden or severe economic dislocation;

(B)

significant chronic unemployment or poverty;

(C)

a natural disaster; or

(D)

other severe economic, social, or cultural duress.

(3)

Other Federal programs

For the purpose of determining cost-sharing requirements for any other Federal program, funds provided as an innovation grant under this section shall be considered to be non-Federal funds.

(g)

Negotiation

The National Board may—

(1)

negotiate with a Regional Board with respect to the substance, size, and scope of a regional investment strategy; and

(2)

approve an innovation grant in an amount that is lower than the amount requested by a Regional Board.

(h)

Noncompliance

If a Regional Board or other eligible grantee fails to comply with any requirement relating to the use of funds provided under this section, the National Board may—

(1)

take such actions as are necessary to obtain reimbursement of unused grant funds; and

(2)

reprogram the recaptured funds for purposes relating to implementation of this subtitle.

(i)

Amount of award

(1)

Maximum amount

During any 5-year period, a regional rural collaborative investment council may receive not more than $2,500,000 in innovation grants under this section.

(2)

Determination of amount

The National Board shall determine the amount of an innovation grant based on—

(A)

the needs of the region being addressed by the applicable regional investment strategy; and

(B)

the size of the geographical area of the region.

(j)

Priority to areas with awards and approved strategies

(1)

In general

Subject to paragraph (3), in providing rural development assistance under other Federal programs, the Secretary shall give a high priority to areas that receive innovation grants under this section.

(2)

Consultation

The Secretary shall consult with the heads of other Federal agencies to promote the development of priorities similar to those described in paragraph (1).

(3)

Exclusion of certain programs

Paragraph (1) shall not apply to the provision of rural development assistance under any Federal program relating to basic health, safety, or infrastructure, including broadband deployment or minimum environmental needs.

(k)

Acceptability of certain strategies

(1)

In general

In determining whether a regional investment strategy prepared without the use of funds from a grant provided under this subtitle is acceptable, the National Board may determine the strategy is acceptable regardless of whether the strategy meets all requirements under this section.

(2)

Considerations

In making a determination under paragraph (1), the National Board shall consider the circumstances surrounding any application for an innovation grant under section 385G relating to any project or initiative under the strategy, including emergencies and natural disasters.

(3)

Consistency and coordination

To the maximum extent practicable, a regional investment strategy shall be consistent and coordinated with any existing comprehensive regional economic development strategy for the region.

385H.

Small-area collaborative partnership grants

(a)

Grants

Using such criteria for the approval of grants as the National Board shall establish based on the criteria for innovation grants, the National Board shall use not more than 5 percent of the amounts made available for each fiscal year under section 385E(a) to provide, on a competitive basis, small-area collaborative partnership grants to small-area collaborative partnerships.

(b)

Use of funds

A small-area collaborative partnership that receives a grant under this section shall use the grant—

(1)

to provide educational and technical assistance to energize microenterprise and small business development and entrepreneurship that create quality jobs and opportunities for self-employment;

(2)

to provide technical assistance to facilitate small business transfer from retiring to new owners;

(3)

to facilitate collaborative initiatives to enable microenterprises to jointly access and secure non-local markets for products and services;

(4)

to develop the leadership abilities of community members (including youths) to enhance the capacity of the community for development;

(5)

to attract and retain residents;

(6)

to undertake initiatives to use access to natural space, and other natural resource-based strategies—

(A)

to attract residents; and

(B)

to provide the basis for tourism-related businesses;

(7)

to build community endowments to support programs—

(A)

to generate and retain wealth;

(B)

to energize microenterprise and small business development;

(C)

to develop leadership capacity; and

(D)

to engage youths and attract and retain residents;

(8)

to foster revitalization of historical, cultural, and heritage assets to enhance community revitalization; and

(9)

to achieve such other purposes as the National Board determines to be consistent with the purposes of this section.

(c)

Availability and maximum amount of grants

A grant provided to a small-area collaborative partnership under this section—

(1)

shall not exceed $150,000; and

(2)

shall be available for not more the 3-year period beginning on the date on which the grant is provided.

(d)

Matching funds

A small-area collaborative partnership that receives a grant under this section shall provide a matching share equal to at least 25 percent of the amount of the grant.

(e)

Administration

In carrying out this section, the National Board—

(1)

shall provide grants to small-area collaborative partnerships that the National Board determines would best assist in achieving the purposes of this section (other than areas for which an innovation grant is received under section 385G);

(2)

shall ensure, to the maximum extent practicable, that the recipients of those grants include small-area collaborative partnerships representing communities composed of racially- and ethnically-diverse populations; and

(3)

may use not more than 5 percent of the amounts made available to carry out this section to provide assistance to nonprofit organizations, educational institutions, and units of government for use in—

(A)

conducting outreach to communities participating in the grant program under this section; and

(B)

providing technical assistance in developing proposals for the use of grant funds.

385I.

Rural endowment grants program

(a)

In general

The Secretary or National Board, as appropriate, may provide long-term loans to eligible community foundations to assist in the implementation of regional investment strategies.

(b)

Eligible community foundations

To be eligible to receive a loan under this section, a community foundation shall—

(1)

be located in an area that is covered by a regional investment strategy;

(2)

match the amount of the loan with an amount that is at least 250 percent of the amount of the loan; and

(3)

use the loan and the matching amount to carry out the regional investment strategy, including through the development of a community endowment through a community foundation targeted to community economic development.

(c)

Terms

A loan made under this section shall—

(1)

have a term of not less than 10, nor more than 20, years;

(2)

bear an interest rate of 1 percent per annum; and

(3)

be subject to such other terms and conditions as are determined appropriate by the Secretary.

(d)

Funding

(1)

In general

The National Board shall use not more than 5 percent of the amounts received from the Secretary under section 385E(b) to make loans under this section.

(2)

Authorization of appropriations

There are authorized to be appropriated to the Secretary to carry out this section such sums as are necessary for each of fiscal years 2008 through 2013.

.

VII

Forestry

A

Cooperative Forestry Assistance Act of 1978

7001.

Community forest land program

Section 7 of the Cooperative Forestry Assistance Act of 1978 (7 U.S.C. 2103c) is amended—

(1)

in subsection (l)(2)(A), by striking subsection (m) and inserting subsection (n);

(2)

by redesignating subsection (m) as subsection (n); and

(3)

by inserting after subsection (l) the following:

(m)

Community forest land program

(1)

Definitions

In this subsection:

(A)

Community forest land

The term community forest land means any parcel of land that is—

(i)

forested; and

(ii)

located, as determined by the Secretary, within, or in close proximity to a population center.

(B)

Unit of local government

The term unit of local government means—

(i)

a town or city government entity; and

(ii)

any other local government entity.

(2)

Purposes

The purposes of this subsection are—

(A)

to protect environmentally important community forest land;

(B)

to facilitate land use planning by units of local government; and

(C)

to facilitate the donation, acceptance, and enforcement of conservation easements on community forest land.

(3)

Establishment

The Secretary, in coordination with the States, shall offer to units of local government in priority areas (as determined by the Secretary)—

(A)

financial assistance to purchase, and to facilitate the donation, acceptance, and enforcement of, conservation easements on, or to otherwise acquire, community forest land; and

(B)

technical assistance to facilitate—

(i)

improved conservation and management of community forest land;

(ii)

training activities relating to that conservation and management; and

(iii)

other appropriate forest conservation activities, as determined by the Secretary.

(4)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $65,000,000 for each of fiscal years 2008 through 2012.

.

B

Healthy Forests Restoration Act of 2003

7101.

Healthy forests reserve program

(a)

Enrollment of land in program

Section 502 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6572) is amended—

(1)

by striking subsection (e);

(2)

in subsection (f)(1), by striking subparagraph (C) and inserting the following:

(C)

a permanent easement.

; and

(3)

by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

(b)

Funding

Section 508 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6578) is amended to read as follows:

508.

Funding for healthy forests reserve program

(a)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this title $25,000,000 for each of fiscal years 2008 through 2014, to remain available until expended.

(b)

Section 11 cap

The use of Commodity Credit Corporation funds under subsection (a) to provide technical assistance under the healthy forests reserve program shall not be considered an allotment or fund transfer from the Commodity Credit Corporation for purposes of the limitation on expenditures for technical assistance imposed by section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).

.

VIII

Energy

8001.

Federal procurement of biobased products

Section 9002(k)(2)(A) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(k)(2)(A)) is amended by striking 2007 and inserting 2014.

8002.

Biorefinery development grants

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 striking grants;

(2)

by striking subsection (c) and inserting the following:

(c)

Assistance

The Secretary shall award grants and make loans and loan guarantees to eligible entities to assist in covering the cost of development and construction of biorefineries, or the cost of construction or deployment of methane digesters used to capture the methane gas from livestock manure for use as a fuel source for biofuel production, to carry out projects to demonstrate the commercial viability of 1 or more processes for converting biomass to fuels or chemicals.

;

(3)

in subsection (d), by striking a grant and inserting assistance;

(4)

in subsection (e)—

(A)

by striking grants each place it appears and inserting assistance; and

(B)

in paragraph (2)(A)—

(i)

in clause (i), by striking and at the end;

(ii)

by redesignating clause (ii) as clause (iii); and

(iii)

by inserting after clause (i) the following:

(ii)

shall select projects based on the extent to which the projects meet environmental goals for feedstocks and biorefineries, including goals relating to reductions in greenhouse gas emissions and improvement in water quality and wildlife habitat, developed by the Secretary, in consultation with the Secretary of the Interior, the Secretary of Energy, and the National Academy of Sciences; and

; and

(5)

by striking subsection (h) and inserting the following:

(h)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—

(1)

$50,000,000 for each of fiscal years 2008 and 2009; and

(2)

$75,000,000 for each of fiscal years 2010 through 2014.

.

8003.

Rural energy innovation program

Section 9005 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8105) is amended—

(1)

by striking the section heading and inserting Rural energy innovation program.;

(2)

in subsection (a), by striking a program and inserting an energy technical assistance program;

(3)

in subsection (b), by striking paragraphs (5) and (6) and inserting the following:

(5)

a nonprofit organization (including an agricultural trade association, resource conservation and development district, and energy service provider);

(6)

a State environmental quality department; and

(7)

any other entity, as determined by the Secretary.

;

(4)

in subsection (c), by striking paragraph (2) and inserting the following:

(2)

Selection criteria

In reviewing applications of eligible entities to receive grants under subsection (a), the Secretary shall consider—

(A)

the ability and expertise of the eligible entity in providing professional energy efficiency audits, renewable energy assessments, environmental management system plans, and assessments of fertilizer, pesticide, or diesel use efficiency;

(B)

the geographical scope of the program proposed by the eligible entity;

(C)

the percentage of farmers, ranchers, and rural small businesses to be assisted by the program in the service territory covered by the eligible entity;

(D)

the potential for energy savings and environmental and public health benefits resulting from the program;

(E)

the plan of the eligible entity for providing information to farmers, ranchers, and rural small businesses on the benefits of energy efficiency and renewable energy development;

(F)

demonstration of multistakeholder collaborations;

(G)

demonstration of matching funds; and

(H)

clear performance metrics.

;

(5)

by striking subsection (d) and inserting the following:

(d)

Use of grant funds

(1)

Required uses

A recipient of a grant under subsection (a) shall use the grant funds—

(A)

to conduct and promote—

(i)

energy audits;

(ii)

assessments of fertilizer, pesticide, or diesel use efficiency;

(iii)

renewable energy assessments; or

(iv)

environmental management system planning;

(B)

to make farmers, ranchers, and rural small businesses aware of and able to apply for and ensure access to—

(i)

financial assistance under section 9006; and

(ii)

other Federal, State, and local financial assistance programs for which farmers, ranchers, and rural small businesses may be eligible; or

(C)

to employ staff that—

(i)

serve as central points of contact for farmers, ranchers and rural businesses seeking to evaluate energy practices and technologies; and

(ii)

are properly trained to collect data for audits and renewable energy assessments.

(2)

Permitted uses

A recipient of a grant may use funds to finance—

(A)

in partnership with the private sector, agricultural demonstrations to demonstrate cost-effective high efficiency equipment and energy management practices such as precision agriculture, proper tire tractor inflation, and conservation tillage; and

(B)

educational workshops on different clean energy technologies and techniques.

;

(6)

in subsection (e)—

(A)

by striking an energy audit and inserting energy technical assistance;

(B)

by striking the energy audit and inserting the energy technical assistance; and

(C)

by striking the audit and inserting the technical assistance;

(7)

in subsection (h), by striking this Act and inserting Farm, Ranch, Equity, Stewardship, and Health Act of 2007; and

(8)

by striking subsection (i) and inserting the following:

(i)

Limitation

A recipient of a grant under subsection (a) may receive no more than $250,000 in any 1 grant cycle.

(j)

Authorization of appropriations

(1)

In general

There are authorized to be appropriated to carry out this section—

(A)

$5,000,000 for fiscal year 2008;

(B)

$10,000,000 for fiscal year 2009;

(C)

$15,000,000 for fiscal year 2010;

(D)

$20,000,000 for fiscal year 2011; and

(E)

$25,000,000 for each of fiscal years 2012 through 2014.

(2)

Use of certain funds

The Secretary may use not more than 10 percent of amounts made available under paragraph (1) to—

(A)

increase or modify energy technical assistance programs funded under this section; or

(B)

develop training programs that enable administrators of existing technical assistance programs to help other eligible entities establish technical assistance programs.

.

8004.

Rural Energy for America Program

Section 9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106)) is amended—

(1)

by striking the section enumerator and heading and inserting the following:

9006.

Rural Energy for America Program

;

(2)

in subsection (a)—

(A)

by inserting , and issue rebates, after grants; and

(B)

by inserting rural school districts, after ranchers,;

(3)

by striking subsection (f);

(4)

by redesignating subsection (e) as subsection (h);

(5)

by inserting after subsection (d) the following:

(e)

Production-based incentive in lieu of grant

(1)

In general

In addition to the authority under subsection (a), to encourage the production of electricity from renewable energy systems, the Secretary shall, on the request of an eligible applicant under this section, make production-based payments to the applicant in lieu of a grant.

(2)

Contingency

Payments under paragraph (1) shall be contingent on documented energy production and sales from the renewable energy system to a third party.

(3)

Limitation

The total net present value of a production-based incentive may not exceed the lower of—

(A)

25 percent of the eligible project costs; and

(B)

any other limits that the Secretary establishes by rule or guidance.

(f)

Feasibility studies

(1)

In general

The Secretary may provide assistance to eligible applicants to conduct feasibility studies of projects for which assistance may be provided under this section.

(2)

Limitation

The Secretary shall use not more than 10 percent of funds made available to carry out this section to provide assistance described in paragraph (1).

(3)

Criteria

The Secretary shall, by regulation, establish criteria for the receipt of assistance under this subsection.

(4)

Avoidance of duplicative assistance

An applicant that receives assistance to carry out a feasibility study for a project under this subsection shall not be eligible for assistance to carry out a feasibility study for the project under any other provision of Federal law.

(5)

Matching funds

To be eligible for assistance under this subsection, a recipient of funds under this subsection shall contribute an amount of non-Federal funds that is equal to at least 75 percent of the amount of Federal funds received.

(g)

Rebate program

(1)

In general

The Secretary shall make competitive grants to eligible entities to provide rebates for farmers, ranchers, rural school districts, and rural small businesses to purchase renewable energy systems and make energy efficiency improvements.

(2)

Eligible entities

To be eligible to receive a grant under paragraph (1), an entity shall be—

(A)

a State energy or agricultural office;

(B)

a nonprofit State-based energy efficiency or renewable energy organization that uses public funds provided directly or under contract with a State agency;

(C)

any other nonprofit organization with a demonstrated ability to administer a State-wide energy efficiency or renewable energy rebate program; or

(D)

a consortium of entities described in subparagraphs (A) through (C).

(3)

Merit review

(A)

In general

The Secretary shall establish a merit review process to review applications for grants under paragraph (1) that uses the expertise of the Department of Agriculture, other Federal and State agencies, and nongovernmental organizations.

(B)

Requirements

In reviewing the application of an eligible entity to receive a grant under paragraph (1), the Secretary shall consider—

(i)

the experience and expertise of the entity in establishing and administering a statewide clean energy rebate program;

(ii)

the annual projected energy savings or production increases resulting from the proposed program;

(iii)

the environmental benefits resulting from the proposed program; and

(iv)

other appropriate factors, as determined by the Secretary.

(4)

Maintenance of effort

An entity that receives a grant under paragraph (1) shall provide assurances to the Secretary that funds provided to the entity under this subsection will be used to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for rebate programs.

(5)

Rebate amount

The amount of a rebate provided from a grant under this subsection shall not exceed the lower of—

(A)

$10,000; or

(B)

50 percent of the cost incurred to purchase a renewable energy system or an energy efficiency improvement, as determined by the Secretary.

; and

(6)

by adding at the end the following:

(i)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section, to remain available until expended—

(1)

$60,000,000 for fiscal year 2008, of which not more than $12,000,000 shall be used to carry out subsection (g);

(2)

$90,000,000 for fiscal year 2009, of which not more than $18,000,000 shall be used to carry out subsection (g);

(3)

$130,000,000 for fiscal year 2010, of which not more than $26,000,000 shall be used to carry out subsection (g);

(4)

$180,000,000 for fiscal year 2011, of which not more than $36,000,000 shall be used to carry out subsection (g); and

(5)

$200,000,000 for each of fiscal years 2012 through 2014, of which not more than $50,000,000 shall be used to carry out subsection (g).

.

8005.

Biomass research and development

(a)

Distribution of funding by and within each technical area

Section 307(g) of the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(g)) is amended in paragraphs (2) and (3) by striking 2010 each place it appears and inserting 2014.

(b)

Funding

Section 310 of the Biomass Research and Development Act of 2000 (7 U.S.C. 8609) is amended to read as follows:

310.

Funding

(a)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—

(1)

$100,000,000 for each of fiscal years 2008 through 2012; and

(2)

$200,000,000 for each of fiscal years 2013 through 2014.

(b)

Authorization of appropriations

In addition to amounts transferred under subsection (a), there is authorized to be appropriated to carry out this title $200,000,000 for each of fiscal years 2006 through 2015, to remain available until expended.

.

IX

Use of savings for deficit reduction

9001.

Sense of Congress regarding use of savings for deficit reduction

It is the sense of Congress that any budgetary savings created through the implementation of this Act should be used to reduce the Federal budget deficit and not be used to offset other Federal spending.