To respond to the continuing economic crisis adversely affecting American agricultural producers.

To respond to the continuing economic crisis adversely affecting American agricultural producers.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Emergency Agricultural Assistance Act of 2001'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--MARKET LOSS ASSISTANCE

Sec. 101. Market loss assistance.

Sec. 102. Oilseeds.

Sec. 103. Peanuts.

Sec. 104. Sugar.

Sec. 105. Honey.

Sec. 106. Wool and mohair.

Sec. 107. Cottonseed.

Sec. 108. Commodity purchases.

Sec. 109. Loan deficiency payments.

Sec. 110. Milk.

Sec. 111. Pulse crops.

Sec. 112. Tobacco.

Sec. 113. Apples.

TITLE II--CONSERVATION

Sec. 201. Conservation reserve program.

Sec. 202. Wetlands reserve program.

Sec. 203. Environmental quality incentives program.

Sec. 204. Wildlife Habitat Incentive Program.

Sec. 205. Farmland protection program.

Sec. 206. Risk management conservation assistance.

TITLE III--NUTRITION

Sec. 301. Bonus commodities.

Sec. 302. Information and assistance concerning reimbursement options.

Sec. 303. Distribution of commodities.

Sec. 304. Seniors Farmers' Market Nutrition Pilot Program.

TITLE IV--CREDIT AND RURAL DEVELOPMENT

Subtitle A--Credit

Sec. 401. Farm energy emergency loans.

Sec. 402. Definition of rural area for community programs guaranteed loans.

Subtitle B--Rural Development

Sec. 411. Value-added intermediary relending program.

Sec. 412. Business and industry loans.

Sec. 413. Value-added agricultural product market development grants.

Sec. 414. Regulations; notice of acceptance of applications.

Sec. 415. Funding.

TITLE V--RESEARCH

Sec. 501. Sustainable agriculture technology development and transfer program.

Sec. 502. Senior Scientific Research Service.

TITLE VI--DISASTER ASSISTANCE

Sec. 601. Crop and pasture flood compensation program.

Sec. 602. Purchase of floodplain easements.

Sec. 603. Compensation of producers for forage losses due to army worms.

TITLE VII--MISCELLANEOUS

Sec. 701. National organic certification cost-share program.

Sec. 702. Use of value-added commodities.

TITLE VII--ADMINISTRATION

Sec. 801. Obligation period.

Sec. 802. Commodity Credit Corporation.

Sec. 803. Regulations.

SEC. 101. MARKET LOSS ASSISTANCE.

(a) IN GENERAL- The Secretary of Agriculture (referred to in this Act as the `Secretary') shall use funds of the Commodity Credit Corporation to provide assistance in the form of a market loss assistance payment to owners and producers on a farm that are eligible for a final payment for fiscal year 2001 under a production flexibility contract for the farm under the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.).

(b) AMOUNT AND MANNER- In providing payments under this section, the Secretary shall--

(1) use the same contract payment rates as are used under section 802(b) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C. 1421 note; Public Law 106-78); and

(2) provide the payments in a manner that is consistent with section 802(c) of that Act.

SEC. 102. OILSEEDS.

(a) IN GENERAL- The Secretary shall use $500,000,000 of funds of the Commodity Credit Corporation to make payments to producers of the 2001 crop of oilseeds that are eligible to obtain a marketing assistance loan under section 131 of the Agricultural Market Transition Act (7 U.S.C. 7231).

(b) COMPUTATION- A payment to producers on a farm under this section for an oilseed shall be equal to the product obtained by multiplying--

(1) a payment rate determined by the Secretary;

(2) the acreage of the producers on the farm for the oilseed, as determined under subsection (c); and

(3) the yield of the producers on the farm for the oilseed, as determined under subsection (d).

(c) ACREAGE-

(1) IN GENERAL- Except as provided in paragraph (2), the acreage of the producers on the farm for an oilseed under subsection (b)(2) shall be equal to the number of acres planted to the oilseed by the producers on the farm during the 1998, 1999, or 2000 crop year, whichever is greatest, as reported by the producers on the farm to the Secretary (including any acreage reports that are filed late).

(2) NEW PRODUCERS- In the case of producers on a farm that planted acreage to an oilseed during the 2001 crop year but not the 1998, 1999, or 2000 crop year, the acreage of the producers for the oilseed under subsection (b)(2) shall be equal to the number of acres planted to the oilseed by the producers on the farm during the 2001 crop year, as reported by the producers on the farm to the Secretary (including any acreage reports that are filed late).

(d) YIELD-

(1) SOYBEANS- Except as provided in paragraph (3), in the case of soybeans, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greater of--

(A) the average county yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the greatest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 1998, 1999, or 2000 crop year.

(2) OTHER OILSEEDS- Except as provided in paragraph (3), in the case of oilseeds other than soybeans, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greater of--

(A) the average national yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the greatest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 1998, 1999, or 2000 crop year.

(3) NEW PRODUCERS- In the case of producers on a farm that planted acreage to an oilseed during the 2001 crop year but not the 1998, 1999, or 2000 crop year, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greater of--

(A) the average county yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the greatest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 2001 crop.

(4) DATA SOURCE- To the maximum extent available, the Secretary shall use data provided by the National Agricultural Statistics Service to carry out this subsection.

SEC. 103. PEANUTS.

The Secretary shall use $55,210,000 of funds of the Commodity Credit Corporation to provide a supplemental payment under section 204(a) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1421 note; Public Law 106-224) to producers of quota peanuts or additional peanuts for the 2000 crop year that received a payment under that section.

SEC. 104. SUGAR.

(a) MARKETING ASSESSMENT- Section 156(f) of the Agricultural Market Transition Act (7 U.S.C. 7272(f)) shall not apply with respect to the 2001 crop of sugarcane and sugar beets.

(b) EMERGENCY FINANCIAL ASSISTANCE FOR 2000 CROP OF SUGAR BEETS- Notwithstanding section 815(d)(1) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (114 Stat. 1549, 1549A-56), in making payments under that section for quality losses for the 2000 crop of sugar beets of producers on a farm in an area covered by Manager's Bulletin MGR-01-010 issued by the Federal Crop Insurance Corporation on March 2, 2001--

(1) the Secretary shall calculate the amount of a quality loss, regardless of whether the sugar beets are processed, on an aggregate basis by cooperative;

(2) the Secretary shall make the quality loss payments to a cooperative for distribution to cooperative members; and

(3) the amount of a quality loss, regardless of whether the sugar beets are processed, shall be equal to the difference between--

(A) the per unit payment that the producers on the farm would have received for the crop from the cooperative if the crop had not suffered a quality loss; and

(B) the average per unit payment that the producers on the farm received from the cooperative for the affected sugar beets.

SEC. 105. HONEY.

(a) IN GENERAL- The Secretary shall use funds of the Commodity Credit Corporation to make nonrecourse loans available to producers of the 2001 crop of honey on fair and reasonable terms and conditions, as determined by the Secretary.

(b) LOAN RATE- The loan rate for a loan under subsection (a) for honey shall be equal to 85 percent of the simple average price received by producers of honey, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of honey, excluding the year in which the average price was the highest and the year in which the average price was the lowest.

SEC. 106. WOOL AND MOHAIR.

(a) IN GENERAL- The Secretary shall use $16,940,000 of funds of the Commodity Credit Corporation to provide a supplemental payment under section 814 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (114 Stat. 1549, 1549A-55), to producers of wool, and producers of mohair, for the 2000 marketing year that received a payment under that section.

(b) PAYMENT RATE- The Secretary shall adjust the payment rate specified in that section to reflect the amount made available for payments under this section.

SEC. 107. COTTONSEED.

(a) FISCAL YEAR 2001- The Secretary shall use $34,000,000 of funds of the Commodity Credit Corporation for fiscal year 2001 to provide assistance to producers and first handlers of the 2000 crop of cottonseed.

(b) FISCAL YEAR 2002- The Secretary shall use $66,000,000 of funds of the Commodity Credit Corporation for fiscal year 2002 to provide assistance to producers and first handlers of the 2001 crop of cottonseed.

SEC. 108. COMMODITY PURCHASES.

(a) IN GENERAL- The Secretary shall use $220,000,000 of funds of the Commodity Credit Corporation to purchase agricultural commodities, especially agricultural commodities that have experienced low prices during the 2000 or 2001 crop years, such as apples, apricots, asparagus, bell peppers, bison meat, black beans, black-eyed peas, blueberries (wild and cultivated), cabbage, cantaloupe, cauliflower, chickpeas, cranberries, cucumbers, dried plums, dry peas, eggplants, lemons, lentils, melons, onions, peaches (including freestone), pears, potatoes (summer and fall), pumpkins, raisins, raspberries, red tart cherries, snap beans, spinach, strawberries, sweet corn, tomatoes, and watermelons.

(b) GEOGRAPHIC DIVERSITY- The Secretary is encouraged to purchase agricultural commodities under this section in a manner that reflects the geographic diversity of agricultural production in the United States, particularly agricultural production in the Northeast and Mid-Atlantic States.

(c) OTHER PURCHASES- The Secretary shall ensure that purchases of agricultural commodities under this section are in addition to purchases by the Secretary under any other law.

(d) TRANSPORTATION AND DISTRIBUTION COSTS- The Secretary may use not more than $20,000,000 of the funds made available under subsection (a) to provide assistance to States to cover costs incurred by the States in transporting and distributing agricultural commodities purchased under this section.

(e) PURCHASES FOR SCHOOL NUTRITION PROGRAMS- The Secretary shall use not less than $55,000,000 of the funds made available under subsection (a) to purchase agricultural commodities of the type distributed under section 6(a) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755(a)) for distribution to schools and service institutions in accordance with section 6(a) of that Act.

SEC. 109. LOAN DEFICIENCY PAYMENTS.

Section 135(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7235(a)(2)) is amended by striking `2000 crop year' and inserting `each of the 2000 and 2001 crop years'.

SEC. 110. MILK.

(a) EXTENSION OF MILK PRICE SUPPORT PROGRAM- Section 141 of the Agricultural Market Transition Act (7 U.S.C. 7251) is amended by striking `2001' each place it appears in subsections (b)(4) and (h) and inserting `2002'.

(b) REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS- Section 142 of the Agricultural Market Transition Act (7 U.S.C. 7252) is repealed.

SEC. 111. PULSE CROPS.

(a) IN GENERAL- The Secretary shall use $20,000,000 of funds of the Commodity Credit Corporation to provide assistance in the form of a market loss assistance payment to owners and producers on a farm that grow dry peas, lentils, or chickpeas (collectively referred to in this section as a `pulse crop').

(b) COMPUTATION- A payment to owners and producers on a farm under this section for a pulse crop shall be equal to the product obtained by multiplying--

(1) a payment rate determined by the Secretary; by

(2) the acreage of the producers on the farm for the pulse crop determined under subsection (c).

(c) ACREAGE-

(1) IN GENERAL- The acreage of the producers on the farm for a pulse crop under subsection (b)(2) shall be equal to the number of acres planted to the pulse crop by the owners and producers on the farm during the 1998, 1999, or 2000 crop year, whichever is greatest.

(2) BASIS- For the purpose of paragraph (1), the number of acres planted to a pulse crop by the owners and producers on the farm for a crop year shall be based on (as determined by the Secretary)--

(A) the number of acres planted to the pulse crop for the crop year, as reported to the Secretary by the owners and producers on the farm, including any acreage that is included in reports that are filed late; or

(B) the number of acres planted to the pulse crop for the crop year for the purpose of the Federal crop insurance program established under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

SEC. 112. TOBACCO.

(a) TOBACCO PAYMENTS-

(1) DEFINITIONS- In this subsection:

(A) ELIGIBLE PERSON- The term `eligible person' means a person that--

(i) owns a farm for which, regardless of temporary transfers or undermarketings, a basic quota or allotment for eligible tobacco is established for the 2001 crop year under part I of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.);

(ii) controls the farm from which, under the quota or allotment for the relevant period, eligible tobacco is marketed, could have been marketed, or can be marketed, taking into account temporary transfers; or

(iii) grows, could have grown, or can grow eligible tobacco that is marketed, could have been marketed, or can be marketed under the quota or allotment for the 2001 crop year, taking into account temporary transfers.

(B) ELIGIBLE TOBACCO- The term `eligible tobacco' means each of the following kinds of tobacco:

(i) Flue-cured tobacco, comprising types 11, 12, 13, and 14.

(ii) Fire-cured tobacco, comprising types 21, 22, and 23.

(iii) Dark air-cured tobacco, comprising types 35 and 36.

(iv) Virginia sun-cured tobacco, comprising type 37.

(v) Burley tobacco, comprising type 31.

(vi) Cigar-filler and cigar-binder tobacco, comprising types 42, 43, 44, 54, and 55.

(2) PAYMENTS- Not later than September 30, 2002, the Secretary shall use funds of the Commodity Credit Corporation to make payments under this subsection.

(3) POUNDAGE PAYMENT QUANTITIES- For the purposes of this subsection, individual tobacco quotas and allotments shall be converted to poundage payment quantities as follows:

(A) FLUE-CURED AND BURLEY TOBACCO- In the case of Flue-cured tobacco (types 11, 12, 13, and 14) and Burley tobacco (type 31), the poundage payment quantity shall equal the number of pounds of the basic poundage quota of the kind of tobacco, irrespective of temporary transfers or undermarketings, under part I of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) for the 2001 crop year.

(B) OTHER KINDS OF ELIGIBLE TOBACCO- In the case of each other kind of eligible tobacco, individual allotments shall be converted to poundage payment quantities by multiplying--

(i) the number of acres that may, irrespective of temporary transfers or undermarketings, be devoted, without penalty, to the production of the kind of tobacco under the allotment under part I of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et seq.) for the 2001 crop year; by

(ii)(I) in the case of fire-cured tobacco (type 21), 1,630 pounds per acre;

(II) in the case of fire-cured tobacco (types 22 and 23), 2,601 pounds per acre;

(III) in the case of dark air-cured tobacco (types 35 and 36), 2,337 pounds per acre;

(IV) in the case of Virginia sun-cured tobacco (type 37), 1,512 pounds per acre; and

(V) in the case of cigar-filler and cigar-binder tobacco (types 42, 43, 44, 54, and 55), 2,165 pounds per acre.

(4) AVAILABLE PAYMENT AMOUNTS- The available payment amount for pounds of a payment quantity under paragraph (2) shall be equal to--

(A) in the case of fire-cured tobacco (types 21, 22, and 23) and dark air-cured tobacco (types 35 and 36), 16.12 cents per pound; and

(B) in the case of each other kind of eligible tobacco not covered by subparagraph (A), 8.06 cents per pound.

(5) DIVISION OF PAYMENTS AMONG ELIGIBLE PERSONS-

(A) IN GENERAL- Payments available with respect to a pound of payment quantity, as determined under paragraph (4), shall be made available to eligible persons in accordance with this paragraph.

(B) FLUE-CURED AND CIGAR TOBACCO- In the case of payments made available in a State under paragraph (2) for Flue-cured tobacco (types 11, 12, 13, and 14) and cigar-filler and cigar-binder tobacco (types 42, 43, 44, 54, and 55), the Secretary shall distribute (as determined by the Secretary)--

(i) 50 percent of the payments to eligible persons that are owners described in paragraph (1)(A)(i); and

(ii) 50 percent of the payments to eligible persons that are growers described in paragraph (1)(A)(iii).

(C) OTHER KINDS OF ELIGIBLE TOBACCO- In the case of payments made available in a State under paragraph (2) for each other kind of eligible tobacco not covered by subparagraph (A), the Secretary shall distribute (as determined by the Secretary)--

(i) 33 1/3 percent of the payments to eligible persons that are owners described in paragraph (1)(A)(i);

(ii) 33 1/3 percent of the payments to eligible persons that are controllers described in paragraph (1)(A)(ii); and

(iii) 33 1/3 percent of the payments to eligible persons that are growers described in paragraph (1)(A)(iii).

(6) STANDARDS- In carrying out this subsection, the Secretary shall use, to the maximum extent practicable, the same standards for payments that were used for making payments under section 204(b) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1421 note; Public Law 106-224).

(7) JUDICIAL REVIEW- A determination by the Secretary under this subsection shall not be subject to judicial review.

(b) GRADING OF PRICE-SUPPORT TOBACCO-

(1) IN GENERAL- Not later than November 30, 2001, the Secretary shall conduct a referendum among producers of each kind of tobacco that is eligible for price support under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) to determine whether the producers favor the mandatory grading of the tobacco by the Secretary.

(2) MANDATORY GRADING- If the Secretary determines that mandatory grading of each kind of tobacco described in paragraph (1) is favored by a majority of the producers voting in the referendum, effective for the 2002 and subsequent marketing years, the Secretary shall ensure that all kinds of the tobacco are graded at the time of sale.

(3) JUDICIAL REVIEW- A determination by the Secretary under this subsection shall not be subject to judicial review.

SEC. 113. APPLES.

(a) IN GENERAL- The Secretary shall use $150,000,000 of funds of the Commodity Credit Corporation to make payments to apple producers to provide relief for the loss of markets during the 2000 crop year.

(b) PAYMENT QUANTITY-

(1) IN GENERAL- Subject to paragraph (2), the payment quantity of apples for which the producers on a farm are eligible for payments under this section shall be equal to the quantity of the 2000 crop of apples produced by the producers on the farm.

(2) MAXIMUM QUANTITY- The payment quantity of apples for which the producers on a farm are eligible for payments under this section shall not exceed 5,000,000 pounds of apples produced on the farm.

(c) LIMITATIONS- Subject to subsection (b)(2), the Secretary shall not establish a payment limitation, or gross income eligibility limitation, with respect to payments made under this section.

(d) APPLICABILITY- This section applies only with respect to the 2000 crop of apples and producers of that crop.

SEC. 201. CONSERVATION RESERVE PROGRAM.

(a) TECHNICAL ASSISTANCE- Notwithstanding section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i), in addition to amounts made available under section 801 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (114 Stat. 1549, 1549A-49), the Secretary shall use $44,000,000 of funds of the Commodity Credit Corporation to provide technical assistance under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

(b) EXTENSION OF CONTRACTS- Notwithstanding section 1231(e)(1) of the Food Security Act of 1985 (16 U.S.C. 3831(e)(1)), an owner or operator that has entered into a contract under the conservation reserve program that would otherwise expire during calendar year 2001 may extend the contract for 1 year.

(c) PAYMENTS-

(1) IN GENERAL- Subject to paragraph (2), during the 2001 and 2002 calendar years, the Secretary shall include among practices that are eligible for payments under the conservation reserve program--

(A) the preservation of shallow water areas for wildlife;

(B) the establishment of permanent vegetative cover, such as contour grass strips and cross-wind trap strips; and

(C) the preservation of wellhead protection areas.

(2) OTHER PRACTICES- The Secretary shall administer paragraph (1) in a manner that does not reduce the amount of payments made by the Secretary for other practices under the conservation reserve program.

(d) PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER ACREAGE IN CONSERVATION RESERVE-

(1) IN GENERAL- Section 1231(h)(4)(B) of the Food Security Act of 1985 (16 U.S.C. 3831(h)(4)(B)) is amended by inserting `(which may include emerging vegetation in water)' after `vegetative cover'.

(2) CONFORMING AMENDMENT- Section 1232(a)(4) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(4)) is amended by inserting `(which may include emerging vegetation in water)' after `vegetative cover'.

SEC. 202. WETLANDS RESERVE PROGRAM.

(a) MAXIMUM ENROLLMENT- Notwithstanding section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) and section 808 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (114 Stat. 1549, 1549A-52), subject to subsection (b), the Secretary shall use $200,000,000 of funds of the Commodity Credit Corporation for enrollment of additional acres beginning in fiscal year 2002 in the wetlands reserve program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.).

(b) TECHNICAL ASSISTANCE; MONITORING AND MAINTENANCE EXPENSES- Notwithstanding section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i), of the funds made available under subsection (a), the Secretary shall use--

(1) not less than $12,000,000, but not more than $15,000,000, to provide technical assistance under the wetlands reserve program; and

(2) not less than $8,000,000, but not more than $10,000,000, for monitoring and maintenance expenses incurred by the Secretary for land enrolled in the wetlands reserve program as of the date of enactment of this Act.

SEC. 203. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

In addition to amounts made available under section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841), the Secretary shall use $250,000,000 of funds of the Commodity Credit Corporation to carry out the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.).

SEC. 204. WILDLIFE HABITAT INCENTIVE PROGRAM.

In addition to amounts made available under section 387(c) of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a(c)), the Secretary shall use $7,000,000 of funds of the Commodity Credit Corporation to carry out the Wildlife Habitat Incentive Program established under section 387 of that Act.

SEC. 205. FARMLAND PROTECTION PROGRAM.

(a) IN GENERAL- In addition to amounts made available under section 388(c) of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note; Public Law 104-127) and section 211(a) of the Agricultural Risk Protection Act of 2000 (16 U.S.C. 3830 note; Public Law 106-224), the Secretary shall use $40,000,000 of funds of the Commodity Credit Corporation to make payments under the farmland protection program established under section 388 of the Federal Agriculture Improvement and Reform Act of 1996 to--

(1) any agency of any State or local government, or federally recognized Indian tribe, including farmland protection boards and land resource councils established under State law; and

(2) any organization that--

(A) is organized for, and at all times since the formation of the organization has been operated principally for, 1 or more of the conservation purposes specified in clauses (i), (ii), and (iii) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;

(B) is an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code;

(C) is described in section 509(a)(2) of that Code; or

(D) is described in section 509(a)(3) of that Code and is controlled by an organization described in section 509(a)(2) of that Code.

(b) TECHNICAL ASSISTANCE- Notwithstanding section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i), of the funds made available under subsection (a), the Secretary may use not more than $3,000,000 to provide technical assistance under the farmland protection program.

SEC. 206. RISK MANAGEMENT CONSERVATION ASSISTANCE.

(a) IN GENERAL- Notwithstanding sections 201 through 205, subject to subsection (d), of the amount of funds made available under this title (other than section 201(a)), the Secretary shall use $100,000,000 to address critical risk management needs (including such needs under programs specified in subsection (b)) in States that are described in section 522(c)(1)(A) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(1)(A)).

(b) MINIMUM AMOUNT- Subject to subsection (d), the minimum amount each State described in subsection (a) shall receive under subsection (a) shall be $5,000,000.

(c) PROGRAMS- For the purpose of subsection (a), the programs specified in this subsection are--

(1) the wetlands reserve program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.);

(2) the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.);

(3) the Wildlife Habitat Incentive Program established under section 387 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3836a); and

(4) the farmland protection program established under section 388 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 3830 note; Public Law 104-127).

(d) OTHER STATES- The Secretary shall use any funds made available under subsection (a) that have not been obligated by June 1, 2002, to provide assistance under the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) in States that are not described in section 522(c)(1)(A) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(1)(A)).

SEC. 301. BONUS COMMODITIES.

Section 6(e)(1)(B) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended by striking `2001' and inserting `2002'.

SEC. 302. INFORMATION AND ASSISTANCE CONCERNING REIMBURSEMENT OPTIONS.

Section 11(f) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(f)) is amended--

(1) in paragraph (1)(E), by striking `2001' and inserting `2003'; and

(2) in paragraph (2)--

(A) by striking subparagraph (A) and inserting the following:

`(A) IN GENERAL- The Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition and Forestry of the Senate--

`(i) not later than January 1, 2003, an interim report on the activities of the State agencies receiving grants under this subsection; and

`(ii) not later than January 1, 2004, a final report on the activities of the State agencies receiving grants under this subsection.'; and

(B) in subparagraph (B), by striking `report' and inserting `reports'.

SEC. 303. DISTRIBUTION OF COMMODITIES.

(a) IN GENERAL- The Secretary shall use $10,000,000 of funds of the Commodity Credit Corporation to cover direct and indirect costs related to the processing, transportation, and distribution of commodities to eligible recipient agencies under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.).

(b) ALLOCATION- Funds made available under subsection (a) shall be allocated to States in accordance with section 204(a) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)).

SEC. 304. SENIORS FARMERS' MARKET NUTRITION PILOT PROGRAM.

The Secretary shall use $20,000,000 of funds of the Commodity Credit Corporation to carry out the Seniors Farmers' Market Nutrition Pilot Program announced on November 2, 2000 (65 Fed. Reg. 65825).

SEC. 401. FARM ENERGY EMERGENCY LOANS.

(a) IN GENERAL- Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended--

(1) in the first sentence--

(A) by striking `aquaculture operations have' and inserting `aquaculture operations (i) have'; and

(B) by striking `the Disaster Relief and Emergency Assistance Act:' and inserting `the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), or (ii) have suffered or are likely to suffer substantial economic injury on or after June 1, 2000, as the result of a sharp and significant increase in energy costs or input costs from energy sources occurring on or after June 1, 2000, in connection with an energy emergency declared by the President or the Secretary:';

(2) in the third sentence, by striking `the Disaster Relief and Emergency Assistance Act' and inserting `the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or by an energy emergency declared by the President or the Secretary'; and

(3) in the fourth sentence--

(A) by inserting `or energy emergency' after `natural disaster' each place it appears; and

(B) by inserting `or declaration' after `emergency designation'.

(b) FUNDING- Funds available for emergency loans under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) to meet the needs resulting from natural disasters shall be available to carry out the amendments made by subsection (a).

(c) GUIDELINES- Not later than 30 days after the date of enactment of this Act, the Secretary shall issue such guidelines as the Secretary determines to be necessary to carry out the amendments made by subsection (a).

(d) REPORT- Not later than 18 months after the date of final publication by the Secretary of the guidelines issued under subsection (c), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the effectiveness of loans made available as a result of the amendments made by subsection (a), together with recommendations for improvements to the loans, if any.

SEC. 402. DEFINITION OF RURAL AREA FOR COMMUNITY PROGRAMS GUARANTEED LOANS.

(a) IN GENERAL- Section 730 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2000 (Public Law 106-78; 113 Stat. 1164; 7 U.S.C. 2009 note), is amended by inserting `(other than the Community Programs Guaranteed Loans program)' after `Housing Service'.

(b) CONFORMING AMENDMENT- Section 735 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681-29), is repealed.

SEC. 411. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at the end the following:

`(h) VALUE-ADDED INTERMEDIARY RELENDING PROGRAM-

`(1) IN GENERAL- In accordance with this subsection, the Secretary shall make loans under the intermediary relending program established under section 1323(b)(2)(C) of the Food Security Act of 1985 (7 U.S.C. 1932 note; Public Law 99-198).

`(2) LOANS- Using funds made available to carry out this subsection, the Secretary shall make loans to eligible intermediaries to make loans to ultimate recipients, under the terms and conditions of

`(3) ELIGIBLE INTERMEDIARIES- Intermediaries that shall be eligible to receive loans under paragraph (2) shall include State agencies.

`(4) PREFERENCE FOR BIOENERGY PROJECTS- In making loans using loan funds made available under paragraph (2), an eligible intermediary shall give preference to bioenergy projects in accordance with regulations promulgated by the Secretary.

`(5) COMPOSITION OF CAPITAL- The capital for a project carried out by an ultimate recipient and assisted with loan funds made available under paragraph (2) shall be comprised of--

`(A) not more than 15 percent of the total cost of a project; and

`(B) not less than 50 percent of the equity funds provided by agricultural producers.

`(6) LOAN CONDITIONS-

`(A) TERMS OF LOANS- A loan made to an intermediary using loan funds made available under paragraph (2) shall have a term of not exceed 30 years.

`(B) INTEREST- The interest rate on such a loan shall be--

`(i) in the case of each of the first 2 years of the loan period, 0 percent; and

`(ii) in the case of each of the remaining years of the loan period, 2 percent.

`(7) LIMITATIONS ON AMOUNT OF LOAN FUNDS PROVIDED-

`(A) IN GENERAL- Except as provided in subparagraph (B), an intermediary or ultimate recipient shall be eligible to receive not more than $2,000,000 of the loan funds made available under paragraph (2).

`(B) STATE AGENCIES- Subparagraph (A) shall not apply in the case of a State agency with respect to loan funds provided to the State agency as an intermediary.'.

SEC. 412. BUSINESS AND INDUSTRY LOANS.

(a) IN GENERAL- The Secretary shall use funds made available under section 415(a)(2) to pay the cost of business and industry guaranteed loans under section 310B(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)(1)).

(b) USE OF FUNDS- To the maximum extent practicable, loan funds made available under subsection (a) shall be used in conjunction with value-added intermediary relending program loan funds made available by section 310B(h) of the Consolidated Farm and Rural Development Act (as added by section 411), except that the aggregate of all such loan funds (including the amount of guaranteed loans) made available for a project shall comprise not more than 65 percent of the cost of a project.

(c) FEES- Section 310B(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is amended by adding at the end the following: `The amount of a fee paid by a borrower to the Secretary for a business and industry direct or guaranteed loan under paragraph (1) shall not exceed 2 percent of the amount of the loan.'.

SEC. 413. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

The Secretary shall use funds made available under section 415(a)(3) to award grants for projects under the terms and conditions provided in section 231(a) of the Agricultural Risk Protection Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note), except that the Secretary shall give preference to bioenergy projects.

SEC. 414. REGULATIONS; NOTICE OF ACCEPTANCE OF APPLICATIONS.

(a) IN GENERAL- Not later than 75 days after the date of enactment of this Act, the Secretary shall promulgate final regulations to carry out this subtitle and the amendments made by this subtitle.

(b) NOTICE OF ACCEPTANCE OF APPLICATIONS- Not later than 20 days after the date of promulgation of regulations under subsection (a), the Secretary shall publish in the Federal Register a notice that the Secretary is accepting applications for grants and loans for which funds are made available under this subtitle and the amendments made by this subtitle.

SEC. 415. FUNDING.

(a) IN GENERAL- On October 1, 2001, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary--

(1) $18,000,000 for the cost of loans to carry out section 310B(h) of the Consolidated Farm and Rural Development Act (as added by section 411);

(2) $5,000,000 for the cost of loans to carry out section 412; and

(3) $20,000,000 to carry out section 413.

(b) ENTITLEMENT- The Secretary shall be entitled to receive the funds transferred under subsection (a) and shall accept the funds.

(c) AVAILABILITY OF NEW BUDGET AUTHORITY- For the purposes of section 504(b)(1) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)(1)), this section shall be considered to be an appropriations Act.

SEC. 501. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT AND TRANSFER PROGRAM.

In addition to funds made available under section 1629(i) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5832(i)), the Secretary shall use $3,000,000 of funds of the Commodity Credit Corporation for fiscal year 2002 to make producer grants under chapter 3 of subtitle B of title XVI of that Act (7 U.S.C. 5831 et seq.).

SEC. 502. SENIOR SCIENTIFIC RESEARCH SERVICE.

Subtitle B of title VI of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by adding at the end the following:

`SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.

`(a) IN GENERAL- There is established in the Department of Agriculture the Senior Scientific Research Service (referred to in this section as the `Service').

`(b) MEMBERS-

`(1) IN GENERAL- Subject to paragraphs (2) through (4), the Secretary shall appoint the members of the Service.

`(2) QUALIFICATIONS- To be eligible for appointment to the Service, an individual shall--

`(A) have conducted outstanding research in the field of agriculture or forestry;

`(B) have earned a doctoral level degree at an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)); and

`(C) meet qualification standards prescribed by the Director of the Office of Personnel Management for appointment to a position at level GS-15 of the General Schedule.

`(3) NUMBER- The Secretary shall appoint not more than 100 individuals to serve as members of the Service at any time.

`(4) OTHER REQUIREMENTS- Subject to subsection (d)(2), the Secretary may appoint and employ a member of the Service without regard to--

`(A) the provisions of title 5, United States Code, governing appointments in the competitive service;

`(B) the provisions of subchapter I of chapter 35 of title 5, United States Code, relating to retention preference;

`(C) the provisions of chapter 43 of title 5, United States Code, relating to performance appraisal and performance actions;

`(D) the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification and General Schedule pay rates; and

`(E) the provisions of chapter 75 of title 5, United States Code, relating to adverse actions.

`(c) PERFORMANCE APPRAISAL SYSTEM- The Secretary shall develop a performance appraisal system for members of the Service that is designed to--

`(1) provide for the systematic appraisal of the employment performance of the members; and

`(2) encourage excellence in employment performance by the members.

`(d) COMPENSATION-

`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall determine the compensation of members of the Service.

`(2) LIMITATIONS- The rate of pay for a member of the Service shall--

`(A) not be less than the minimum rate payable for a position at level GS-15 of the General Schedule; and

`(B) not be more than the rate payable for a position at level I of the Executive Schedule, unless the rate is approved by the President under section 5377(d)(2) of title 5, United States Code.

`(e) RETIREMENT CONTRIBUTIONS-

`(1) IN GENERAL- On the request of a member of the Service who was an employee of an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) immediately prior to appointment as a member of the Service and who retains the right to continue to make contributions to the retirement system of the institution, the Secretary may contribute an amount not to exceed 10 percent of the basic pay of the member to the retirement system of the institution on behalf of the member.

`(2) FEDERAL RETIREMENT SYSTEM-

`(A) IN GENERAL- Subject to subparagraph (B), a member for whom a contribution is made under paragraph (1) shall not, as a result of serving as a member of the Service, be covered by, or earn service credit under, chapter 83 or 84 of title 5, United States Code.

`(B) ANNUAL LEAVE- Service of a member of the Service described in subparagraph (A) shall be creditable for determining years of service under section 6303(a) of title 5, United States Code.

`(f) INVOLUNTARY SEPARATION-

`(1) IN GENERAL- Subject to paragraph (2) and notwithstanding the provisions of title 5, United States Code, governing appointment in the competitive service, in the case of an individual who is separated from the Service involuntarily and without cause--

`(A) the Secretary may appoint the individual to a position in the competitive civil service at level GS-15 of the General Schedule; and

`(B) the appointment shall be a career appointment.

`(2) EXCEPTED CIVIL SERVICE- In the case of an individual described in paragraph (1) who immediately prior to appointment as a member of the Service was not a career appointee in the civil service or the Senior Executive Service, the appointment of the individual under paragraph (1)--

`(A) shall be to the excepted civil service; and

`(B) may not exceed a period of 2 years.'.

SEC. 601. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.

(a) DEFINITION OF COVERED LAND- In this section:

(1) IN GENERAL- The term `covered land' means land that--

(A) was unusable for agricultural production during the 2001 crop year as the result of flooding;

(B) was used for agricultural production during at least 1 of the 1992 through 2000 crop years; and

(C) is a contiguous parcel of land of at least 1 acre.

(2) EXCLUSIONS- The term `covered land' excludes any land for which a producer is insured, enrolled, or assisted during the 2001 crop year under--

(A) a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);

(B) the noninsured crop assistance program operated under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333);

(C) any crop disaster program established for the 2001 crop year;

(D) the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.);

(E) the wetlands reserve program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.);

(F) any emergency watershed protection program or Federal easement program that prohibits crop production or grazing; or

(G) any other Federal or State water storage program, as determined by the Secretary.

(b) COMPENSATION- The Secretary shall use not more than $24,000,000 of funds of the Commodity Credit Corporation to compensate producers with covered land for losses from long-term flooding.

(c) PAYMENT RATE- The payment rate for compensation provided to a producer under this section shall be equal to the average county cash rental rate per acre established by the National Agricultural Statistics Service for the 2001 crop year.

(d) PAYMENT LIMITATION- The total amount of payments made to a person (as defined in section 1001(5) of the Food Security Act of 1985 (7 U.S.C. 1308(5))) under this section may not exceed $40,000.

SEC. 602. PURCHASE OF FLOODPLAIN EASEMENTS.

(a) IN GENERAL- The Secretary shall use $10,000,000 of funds of the Commodity Credit Corporation for fiscal year 2002 to purchase permanent easements under the emergency watershed protection program.

(b) PRIORITY- In carrying out this section, the Secretary shall provide a higher priority to the purchase of easements on floodplains of the Mississippi River and the Missouri River.

SEC. 603. COMPENSATION OF PRODUCERS FOR FORAGE LOSSES DUE TO ARMY WORMS.

(a) IN GENERAL- The Secretary shall use not more than $25,000,000 of funds of the Commodity Credit Corporation to provide payments to producers of forage crops for losses due to army worms.

(b) AMOUNT-

(1) IN GENERAL- The amount of a payment made to a producer under this section shall be equal to 65 percent of the average price received by producers of a forage crop in the crop year (as determined under paragraph (2)) for any deficiency in production greater than 35 percent of the established yield for the crop for the crop year, as determined by the Secretary.

(2) AVERAGE PRICE- For the purpose of paragraph (1), the average price received by producers of a forage crop shall be equal to the simple average price received by producers of the crop, as determined by the Secretary, during the immediately preceding 5 crop years, excluding the year in which the average price was the highest and the year in which the average price was the lowest.

(3) ADMINISTRATION- Except as provided in paragraph (1), the amount of a payment made to a producer under this section shall be made in accordance with the terms and conditions specified in section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333).

SEC. 701. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

(a) IN GENERAL- The Secretary (acting through the Agricultural Marketing Service) shall use $3,500,000 of funds of the Commodity Credit Corporation for fiscal year 2002 to establish a national organic certification 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.).

(b) FEDERAL SHARE-

(1) IN GENERAL- Subject to paragraph (2), the Secretary shall pay under this section not more than 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 under this section shall be $500.

SEC. 702. USE OF VALUE-ADDED COMMODITIES.

Section 204(b)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(b)(1)) is amended by inserting `(including crude degummed soybean oil and soybean meal)' after `processed, fortified, or bagged commodities'.

SEC. 801. OBLIGATION PERIOD.

(a) FISCAL YEAR 2001- Except as otherwise provided in this Act, the Secretary and the Commodity Credit Corporation shall obligate and expend funds only during fiscal year 2001 to carry out the following:

(1) Section 101.

(2) Section 107(a).

(b) FISCAL YEAR 2002-

(1) IN GENERAL- Except as otherwise provided in this Act, the Secretary and the Commodity Credit Corporation shall obligate and, to the maximum extent practicable, expend funds during fiscal year 2002 to carry out the following:

(A) Title I (other than sections 101 and 107(a)).

(B) Title II.

(C) Sections 303 and 304.

(D) Subtitle B of title IV.

(E) Section 501.

(F) Title VI.

(G) Section 701.

(2) AVAILABILITY- Funds described in paragraph (1) shall remain available until expended.

SEC. 802. COMMODITY CREDIT CORPORATION.

Except as otherwise provided in this Act, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this Act.

SEC. 803. REGULATIONS.

(a) IN GENERAL- The Secretary may promulgate such regulations as are necessary to implement this Act and the amendments made by this Act.

(b) PROCEDURE- The promulgation of the regulations and administration of the amendments made by this Act shall be made without regard to--

(1) the notice and comment provisions of section 553 of title 5, United States Code;

(2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and

(3) chapter 35 of title 44, United States Code (commonly known as the `Paperwork Reduction Act').

(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

To respond to the continuing economic crisis adversely affecting American agricultural producers.

END