S 1731 PCS
Calendar No. 237
107th CONGRESS
1st Session
S. 1731
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
IN THE SENATE OF THE UNITED
STATES
November 27, 2001
Mr. HARKIN, from the Committee
on Agriculture, Nutrition, and Forestry, reported the following original
bill; which was read twice and placed on the calendar
A BILL
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
Be it enacted by the
Senate and House of Representatives of the United States of America in
Congress assembled,
SECTION 1. SHORT TITLE; TABLE
OF CONTENTS.
(a) SHORT TITLE- This Act
may be cited as the `Agriculture, Conservation, and Rural Enhancement Act
of 2001'.
(b) TABLE OF CONTENTS- The
table of contents of this Act is as follows:
TITLE I--COMMODITY PROGRAMS
Subtitle A--Direct and Counter-Cyclical
Payments
Sec. 111. Direct and counter-cyclical
payments.
Sec. 112. Violations of
contracts.
Sec. 113. Planting flexibility.
Subtitle B--Nonrecourse Marketing
Assistance Loans and Loan Deficiency Payments
Sec. 121. Nonrecourse marketing
assistance loans and loan deficiency payments.
Sec. 122. Eligible production.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency
payments.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 131. Milk price support
program.
Sec. 132. National dairy
program.
Sec. 133. Dairy export incentive
and dairy indemnity programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product
mandatory reporting.
Sec. 136. Funding of dairy
promotion and research program.
Chapter 2--Sugar
Sec. 142. Storage facility
loans.
Sec. 143. Flexible marketing
allotments for sugar.
Chapter 3--Peanuts
Sec. 151. Peanut program.
Sec. 152. Termination of
marketing quotas for peanuts and compensation to peanut quota holders.
Subtitle D--Administration
Sec. 161. Adjustment authority
related to Uruguay Round compliance.
Sec. 162. Suspension of
permanent price support authority.
Sec. 163. Commodity purchases.
Sec. 164. Hard white wheat
incentive payments.
Sec. 165. Payment limitations.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 201. Conservation security
program.
Sec. 203. Partnerships and
cooperation.
Sec. 204. Administrative
requirements for conservation programs.
Sec. 205. Reform and assessment
of conservation programs.
Sec. 206. Conservation security
program regulations.
Sec. 207. Conforming amendments.
Subtitle B--Program Extensions
Sec. 211. Comprehensive
conservation enhancement program.
Sec. 212. Conservation reserve
program.
Sec. 213. Wetlands reserve
program.
Sec. 214. Environmental
quality incentives program.
Sec. 215. Resource conservation
and development program.
Sec. 216. Wildlife habitat
incentive program.
Sec. 217. Farmland protection
program.
Sec. 218. Grassland reserve
program.
Sec. 219. State technical
committees.
Sec. 220. Use of symbols,
slogans, and logos.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
Sec. 301. United States
policy.
Sec. 302. Provision of agricultural
commodities.
Sec. 303. Generation and
use of currencies by private voluntary organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative
Group.
Sec. 306. Maximum level
of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for
stockpiling and rapid transportation, delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient
fortification program.
Sec. 313. Farmer-to-farmer
program.
Subtitle B--Agricultural Trade
Act of 1978
Sec. 321. Export credit
guarantee program.
Sec. 322. Market access
program.
Sec. 323. Export enhancement
program.
Sec. 324. Foreign market
development cooperator program.
Sec. 325. Food for progress
and education programs.
Sec. 326. Exporter assistance
initiative.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
Sec. 331. Bill Emerson Humanitarian
Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology
and agricultural trade program.
Sec. 334. Surplus commodities
for developing or friendly countries.
Sec. 335. Agricultural trade
with Cuba.
Sec. 336. Sense of Congress
concerning agricultural trade.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 411. Encouragement
of payment of child support.
Sec. 412. Simplified definition
of income.
Sec. 413. Increase in benefits
to households with children.
Sec. 414. Simplified determination
of housing costs.
Sec. 415. Simplified utility
allowance.
Sec. 416. Simplified procedure
for determination of earned income.
Sec. 417. Simplified determination
of deductions.
Sec. 418. Simplified definition
of resources.
Sec. 419. Alternative issuance
systems in disasters.
Sec. 420. State option to
reduce reporting requirements.
Sec. 421. Benefits for adults
without dependents.
Sec. 422. Preservation of
access to electronic benefits.
Sec. 423. Cost neutrality
for electronic benefit transfer systems.
Sec. 424. Alternative procedures
for residents of certain group facilities.
Sec. 425. Availability of
food stamp program applications on the Internet.
Sec. 426. Simplified determinations
of continuing eligibility.
Sec. 427. Clearinghouse
for successful nutrition education efforts.
Sec. 428. Transitional food
stamps for families moving from welfare.
Sec. 429. Delivery to retailers
of notices of adverse action.
Sec. 430. Reform of quality
control system.
Sec. 431. Improvement of
calculation of State performance measures.
Sec. 432. Bonuses for States
that demonstrate high performance.
Sec. 433. Employment and
training program.
Sec. 434. Reauthorization
of food stamp program and food distribution program on Indian reservations.
Sec. 435. Coordination of
program information efforts.
Sec. 436. Expanded grant
authority.
Sec. 437. Access and outreach
pilot projects.
Sec. 438. Consolidated block
grants and administrative funds.
Sec. 439. Assistance for
community food projects.
Sec. 440. Availability of
commodities for the emergency food assistance program.
Sec. 441. Innovative programs
for addressing common community problems.
Sec. 442. Report on use
of electronic benefit transfer systems.
Sec. 443. Vitamin and mineral
supplements.
Subtitle B--Miscellaneous Provisions
Sec. 451. Reauthorization
of commodity programs.
Sec. 452. Partial restoration
of benefits to legal immigrants.
Sec. 453. Commodities for
school lunch programs.
Sec. 454. Eligibility for
free and reduced price meals.
Sec. 455. Eligibility for
assistance under the special supplemental nutrition program for women,
infants, and children.
Sec. 456. Seniors farmers'
market nutrition program.
Sec. 457. Fruit and vegetable
pilot program.
Sec. 458. Congressional
Hunger Fellows Program.
Sec. 459. Nutrition information
and awareness pilot program.
Sec. 460. Effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 502. Financing of bridge
loans.
Sec. 503. Limitations on
amount of farm ownership loans.
Sec. 504. Joint financing
arrangements.
Sec. 505. Guarantee percentage
for beginning farmers and ranchers.
Sec. 506. Guarantee of loans
made under State beginning farmer or rancher programs.
Sec. 507. Down payment loan
program.
Sec. 508. Beginning farmer
and rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 512. Amount of guarantee
of loans for tribal farm operations; waiver of limitations for tribal farm
operations and other farm operations.
Subtitle C--Administrative Provisions
Sec. 521. Eligibility of
limited liability companies for farm ownership loans, farm operating loans,
and emergency loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority
to enter into contracts; private collection agencies.
Sec. 524. Interest rate
options for loans in servicing.
Sec. 525. Annual review
of borrowers.
Sec. 526. Simplified loan
applications.
Sec. 527. Inventory property.
Sec. 529. Loan authorization
levels.
Sec. 530. Interest rate
reduction program.
Sec. 531. Options for satisfaction
of obligation to pay recapture amount for shared appreciation agreements.
Sec. 532. Waiver of borrower
training certification requirement.
Sec. 533. Annual review
of borrowers.
Subtitle D--Farm Credit
Sec. 541. Repeal of burdensome
approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation
premiums.
Sec. 544. Board of Directors
of the Federal Agricultural Mortgage Corporation.
Subtitle E--General Provisions
Sec. 551. Inapplicability
of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effective date.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Empowerment of Rural
America
Sec. 601. National Rural
Cooperative and Business Equity Fund.
Sec. 602. Rural business
investment program.
Sec. 603. Full funding of
pending rural development loan and grant applications.
Sec. 604. Rural Endowment
Program.
Sec. 605. Enhancement of
access to broadband service in rural areas.
Sec. 606. Value-added agricultural
product market development grants.
Sec. 607. National Rural
Development Information Clearinghouse.
Subtitle B--National Rural Development
Partnership
Sec. 612. National Rural
Development Partnership.
Subtitle C--Consolidated Farm
and Rural Development Act
Sec. 621. Water or waste
disposal grants.
Sec. 622. Rural business
opportunity grants.
Sec. 623. Rural water and
wastewater circuit rider program.
Sec. 624. Multijurisdictional
regional planning organizations.
Sec. 625. Certified nonprofit
organizations sharing expertise.
Sec. 626. Loan guarantees
for certain rural development loans.
Sec. 627. Rural firefighters
and emergency personnel grant program.
Sec. 628. Emergency community
water assistance grant program.
Sec. 629. Water and waste
facility grants for Native American tribes.
Sec. 630. Water systems
for rural and native villages in Alaska.
Sec. 631. Rural cooperative
development grants.
Sec. 632. Grants to broadcasting
systems.
Sec. 633. Business and industry
loan modifications.
Sec. 634. Value-added intermediary
relending program.
Sec. 635. Use of rural development
loans and grants for other purposes.
Sec. 636. Simplified application
forms for loan guarantees.
Sec. 637. Definition of
rural and rural area.
Sec. 638. Rural entrepreneurs
and microenterprise assistance program.
Sec. 640. Children's day
care facilities.
Sec. 641. Rural telework.
Sec. 642. Historic barn
preservation.
Sec. 643. Grants for emergency
weather radio transmitters.
Sec. 644. Bioenergy and
biochemical projects.
Sec. 645. Delta Regional
Authority.
Sec. 646. SEARCH grants
for small communities.
Sec. 647. Northern Great
Plains Regional Authority.
Subtitle D--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 651. Alternative Agricultural
Research and Commercialization Corporation.
Sec. 652. Telemedicine and
distance learning services in rural areas.
Subtitle E--Rural Electrification
Act of 1936
Sec. 661. Bioenergy and
biochemical projects.
Sec. 662. Guarantees for
bonds and notes issued for electrification or telephone purposes.
Sec. 663. Expansion of 911
access.
TITLE VII--AGRICULTURAL RESEARCH,
EDUCATION, AND EXTENSION AND RELATED MATTERS
Subtitle A--National Agricultural
Research, Extension, and Teaching Policy Act of 1977
Sec. 702. National Agricultural
Research, Extension, Education, and Economics Advisory Board.
Sec. 703. Grants and fellowships
for food and agricultural sciences education.
Sec. 704. Competitive research
facilities grant program.
Sec. 705. Grants for research
on the production and marketing of alcohols and industrial hydrocarbons
from agricultural commodities and forest products.
Sec. 706. Policy research
centers.
Sec. 707. Human nutrition
intervention and health promotion research program.
Sec. 708. Pilot research
program to combine medical and agricultural research.
Sec. 709. Nutrition education
program.
Sec. 710. Animal health
and disease research programs.
Sec. 711. Research on national
or regional problems.
Sec. 712. Education grants
programs for Hispanic-serving institutions.
Sec. 713. Competitive grants
for international agricultural science and education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment
grants.
Sec. 716. Agricultural research
programs.
Sec. 717. Extension education.
Sec. 718. Availability of
competitive grant funds.
Sec. 719. Joint requests
for proposals.
Sec. 720. Supplemental and
alternative crops.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning
and response programs.
Subtitle B--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 731. National genetic
resources program.
Sec. 732. Biotechnology
risk assessment research.
Sec. 733. High-priority
research and extension initiatives.
Sec. 734. Nutrient management
research and extension initiative.
Sec. 735. Organic agriculture
research and extension initiative.
Sec. 736. Agricultural telecommunications
program.
Sec. 737. Assistive technology
program for farmers with disabilities.
Subtitle C--Agricultural Research,
Extension, and Education Reform Act of 1998
Sec. 741. Initiative for
Future Agriculture and Food Systems.
Sec. 742. Partnerships for
high-value agricultural product quality research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson
Initiative for Crop Diversification.
Sec. 746. Integrated research,
education, and extension competitive grants program.
Sec. 747. Support for research
regarding diseases of wheat and barley caused by fusarium graminearum.
Sec. 748. Office of Pest
Management Policy.
Sec. 749. Senior Scientific
Research Service.
Subtitle D--Land-Grant Funding
Chapter 1--1862 Institutions
Sec. 752. Reporting of technology
transfer activities.
Sec. 753. Compliance with
multistate and integration requirements.
Chapter 2--1994 Institutions
Sec. 754. Extension at 1994
institutions.
Sec. 755. Equity in Educational
Land-Grant Status Act of 1994.
Sec. 756. Eligibility for
integrated grants program.
Chapter 3--1890 Institutions
Sec. 757. Authorization
percentages for research and extension formula funds.
Sec. 759. Reporting of technology
transfer activities.
Sec. 760. Grants to upgrade
agricultural and food sciences facilities at 1890 land-grant colleges,
including Tuskegee University.
Sec. 761. National research
and training centennial centers.
Sec. 762. Matching funds
requirement for research and extension activities.
Chapter 4--Land-grant Institutions
SUBCHAPTER A--GENERAL
Sec. 771. Priority-setting
process.
Sec. 772. Termination of
certain schedule A appointments.
SUBCHAPTER B--LAND-GRANT INSTITUTIONS
IN INSULAR AREAS
Sec. 775. Distance education
grants program for insular area land-grant institutions.
Sec. 776. Matching requirements
for research and extension formula funds for insular area land-grant institutions.
Subtitle E--Other Laws
Sec. 781. Critical agricultural
materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural
research facilities.
Sec. 784. Competitive, special,
and facilities research grants.
Sec. 785. Risk management
education for beginning farmers and ranchers.
Subtitle F--New Authorities
Sec. 792. Regulatory and
inspection research.
Sec. 793. Emergency research
transfer authority.
Sec. 794. Review of Agricultural
Research Service.
Sec. 795. Technology transfer
for rural development.
Sec. 796. Beginning farmer
and rancher development program.
Sec. 797. Sense of Congress
regarding doubling of funding for agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for
farmers and ranchers participating in conservation programs.
Sec. 798B. Organic production
and market data initiatives.
Sec. 798C. Organically produced
product research and education.
Sec. 798D. International
organic research collaboration.
TITLE VIII--FORESTRY
Sec. 801. Office of International
Forestry.
Sec. 802. McIntire-Stennis
cooperative forestry research program.
Sec. 803. Sustainable forestry
outreach initiative; renewable resources extension activities.
Sec. 804. Forestry incentives
program.
Sec. 805. Sustainable forestry
cooperative program.
Sec. 806. Sustainable forest
management program.
Sec. 807. Forest fire research
centers.
Sec. 808. Wildfire prevention
and hazardous fuel purchase program.
Sec. 809. Enhanced community
fire protection.
Sec. 810. Watershed forestry
assistance program.
Sec. 811. General provisions.
Sec. 812. State forest stewardship
coordinating committees.
TITLE IX--ENERGY
Sec. 902. Consolidated Farm
and Rural Development Act.
Sec. 903. Biomass Research
and Development Act of 2000.
Sec. 904. Rural Electrification
Act of 1936.
Sec. 905. Carbon sequestration
demonstration program.
Sec. 906. Sense of Congress
concerning national renewable fuels standard.
Sec. 907. Sense of Congress
concerning the bioenergy program of the Department of Agriculture.
TITLE X--MISCELLANEOUS
Subtitle A--Country of Origin
and Quality Grade Labeling
Sec. 1001. Country of origin
labeling.
Sec. 1002. Quality grade
labeling of imported meat and meat food products.
Subtitle B--Crop Insurance
Sec. 1011. Continuous coverage.
Sec. 1012. Quality loss
adjustment procedures.
Sec. 1013. Conservation
requirements.
Subtitle C--General Provisions
Sec. 1021. Unlawful stockyard
practices involving nonambulatory livestock.
Sec. 1022. Cotton classification
services.
Sec. 1023. Protection for
purchasers of farm products.
Sec. 1024. Penalties and
foreign commerce provisions of the Animal Welfare Act.
Sec. 1025. Prohibition on
interstate movement of animals for animal fighting.
Sec. 1026. Outreach and
assistance for socially disadvantaged farmers and ranchers.
Sec. 1027. Public disclosure
requirements for county committee elections.
Sec. 1028. Pseudorabies
eradication program.
Sec. 1029. Tree assistance
program.
Sec. 1030. National organic
certification cost-share program.
Sec. 1031. Food Safety Commission.
Sec. 1032. Humane methods
of animal slaughter.
Subtitle D--Administration
Sec. 1042. Effect of amendments.
TITLE I--COMMODITY PROGRAMS
SEC. 101. DEFINITIONS.
Section 102 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202) is amended
to read as follows:
`SEC. 102. DEFINITIONS.
`(1) AGRICULTURAL ACT OF
1949- Except in section 171, the term `Agricultural Act of 1949' means
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as in effect prior
to the suspensions under section 171(b)(1).
`(2) CONSIDERED PLANTED-
The term `considered planted' means any acreage on the farm that--
`(A) producers on a farm
were prevented from planting to a crop because of drought, flood, or other
natural disaster, or other condition beyond the control of the eligible
owners and producers on the farm, as determined by the Secretary; and
`(B) was not planted to
another contract commodity (other than a contract commodity produced under
an established practice of double cropping).
`(3) CONTRACT- The term
`contract' means a contract entered into under subtitle B.
`(4) CONTRACT ACREAGE- The
term `contract acreage' means the contract acreage determined under section
111(f).
`(5) CONTRACT COMMODITY-
The term `contract commodity' means wheat, corn, grain sorghum, barley,
oats, upland cotton, rice, and oilseeds.
`(6) CONTRACT PAYMENT- The
term `contract payment' means a payment made under subtitle B pursuant
to a contract.
`(7) DEPARTMENT- The term
`Department' means the Department of Agriculture.
`(8) EXTRA LONG STAPLE COTTON-
The term `extra long staple cotton' means cotton that--
`(A) is produced from pure
strain varieties of the Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated by the Secretary,
having characteristics needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated cotton-growing regions
of the United States designated by the Secretary or other areas designated
by the Secretary as suitable for the production of the varieties or types;
and
`(B) is ginned on a roller-type
gin or, if authorized by the Secretary, ginned on another type gin for
experimental purposes.
`(9) LOAN COMMODITY- The
term `loan commodity' means wheat, corn, grain sorghum, barley, oats, upland
cotton, extra long staple cotton, rice, oilseeds, wool, mohair, honey,
dry peas, lentils, and chickpeas.
`(10) OILSEED- The term
`oilseed' means a crop of soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, and, if designated by the Secretary, other oilseeds.
`(11) PAYMENT YIELD- The
term `payment yield' means a payment yield determined under section 111(g).
`(A) IN GENERAL- The term
`producer' means an owner, operator, landlord, tenant, or sharecropper
that--
`(i) shares in the risk
of producing a crop; and
`(ii) is entitled to share
in the crop available for marketing from the farm, or would have shared
had the crop been produced.
`(B) HYBRID SEED- In determining
whether a grower of hybrid seed is a producer, the Secretary shall not
take into consideration the existence of a hybrid seed contract.
`(13) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(14) STATE- The term `State'
means--
`(B) the District of Columbia;
`(C) the Commonwealth of
Puerto Rico; and
`(D) any other territory
or possession of the United States.
`(15) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.'.
Subtitle A--Direct and Counter-Cyclical
Payments
SEC. 111. DIRECT AND COUNTER-CYCLICAL
PAYMENTS.
Sections 111 through 114
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7211 through 7214) are amended to read as follows:
`SEC. 111. AUTHORIZATION FOR
CONTRACTS.
`(a) IN GENERAL- The Secretary
shall offer to enter into a contract with an eligible owner or producer
described in subsection (b) on a farm containing eligible cropland under
which the eligible owner or producer will receive direct payments and counter-cyclical
payments under sections 113 and 114, respectively.
`(b) ELIGIBLE OWNERS AND
PRODUCERS-
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), an owner or producer on a farm shall be eligible
to enter into a contract.
`(A) SHARE-RENT TENANTS-
A producer on eligible cropland that is a tenant with a share-rent lease
of the eligible cropland, regardless of the length of the lease, shall
be eligible to enter into a contract, if the owner of the eligible cropland
enters into the same contract.
`(i) CONTRACTS WITH LONG-TERM
LEASES- A producer on eligible cropland that cash rents the eligible cropland
under a lease expiring on or after the termination of the contract shall
be eligible to enter into a contract.
`(ii) CONTRACTS WITH SHORT-TERM
LEASES-
`(I) IN GENERAL- A producer
that cash rents the eligible cropland under a lease expiring before the
termination of the contract shall be eligible to enter into a contract.
`(II) OWNER'S CONTRACT INTEREST-
The owner of the eligible cropland may also enter into the same contract.
`(III) CONSENT OF OWNER-
If the producer elects to enroll less than 100 percent of the eligible
cropland in the contract, the consent of the owner shall be required for
a valid contract.
`(A) IN GENERAL- An owner
of eligible cropland that cash rents the eligible cropland under a lease
term that expires before the end of 2006 crop year shall be eligible to
enter into a contract if the tenant declines to enter into the contract.
`(B) CONTRACT PAYMENTS-
In the case of an owner covered by subparagraph (A), the Secretary shall
not make contract payments to the owner under the contract until the lease
held by the tenant terminates.
`(c) COMPLIANCE WITH CERTAIN
REQUIREMENTS- Under the terms of a contract, the owner or producer shall
agree, in exchange for annual contract payments--
`(1) to comply with 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.);
`(2) to comply with applicable
wetland conservation requirements under subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);
`(3) to comply with the
planting flexibility requirements of section 118; and
`(4) to use a quantity of
land on the farm equal to the contract acreage, for an agricultural or
conserving use or related activity, and not for a nonagricultural commercial
or industrial use, as determined by the Secretary.
`(d) PROTECTION OF INTERESTS
OF CERTAIN PRODUCERS-
`(1) TENANTS AND SHARECROPPERS-
In carrying out this subtitle, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
`(2) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of contract payments among
the eligible producers on a farm on a fair and equitable basis.
`(1) IN GENERAL- Land shall
be considered to be cropland eligible for coverage under a contract only
if the land--
`(A) has with respect to
a contract commodity--
`(i) contract acreage attributable
to the land; and
`(ii) a payment yield; or
`(B) was subject to a conservation
reserve contract under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with a term that expired, or was voluntarily terminated, on
or after the date of enactment of this paragraph.
`(2) QUANTITY OF ELIGIBLE
CROPLAND COVERED BY CONTRACT- An eligible owner or producer may enroll
as contract acreage under this subtitle all or a portion of the eligible
cropland on the farm.
`(3) VOLUNTARY REDUCTION
IN CONTRACT ACREAGE- An eligible owner or producer that enters into a contract
may subsequently reduce the quantity of contract acreage covered by the
contract.
`(1) IN GENERAL- Subject
to subsection (h), for the purpose of making direct payments and counter-cyclical
payments to eligible owners and producers on a farm, the Secretary shall
provide the eligible owners and producers on the farm with an opportunity
to elect 1 of the following methods as the method by which the contract
acreages for the 2002 through 2006 crops of all contract commodities for
a farm are determined:
`(A) The 4-year average
of acreage planted or considered planted to a contract commodity for harvest,
grazing, haying, silage, or other similar purposes during each of the 1998
through 2001 crop years.
`(i) the contract acreage
(as defined in section 102 (as in effect before the amendment made by section
101 of the Agriculture, Conservation, and Rural Enhancement Act of 2001))
that would have been used by the Secretary to calculate the payment for
fiscal year 2002 under such section 102 for the contract commodity on the
farm; and
`(ii) the 4-year average
determined under subparagraph (A) for each oilseed produced on the farm.
`(C) In the case of land
described in section 112(a)(3), land with eligible base, as determined
by the Secretary.
`(2) PREVENTION OF EXCESS
CONTRACT ACREAGES-
`(A) REQUIRED REDUCTION-
If the total of the contract acreages for a farm, together with the acreage
described in subparagraph (C), exceeds the actual cropland acreage of the
farm, the Secretary shall reduce the quantity of contract acreages for
1 or more contract commodities for the farm or peanut acres as necessary
so that the total of the contract acreages and acreage described in subparagraph
(C) does not exceed the actual cropland acreage of the farm.
`(B) SELECTION OF ACRES-
The Secretary shall give the eligible owners and producers on the farm
the opportunity to select the contract acreages or peanut acres against
which the reduction will be made.
`(C) OTHER ACREAGE- For
purposes of subparagraph (A), the Secretary shall include--
`(i) any peanut acres for
the farm under chapter 3 of subtitle D;
`(ii) any acreage on the
farm enrolled in the conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.); and
`(iii) any other acreage
on the farm enrolled in a voluntary Federal conservation program under
which production of any agricultural commodity is prohibited.
`(D) DOUBLE-CROPPED ACREAGE-
In applying subparagraph (A), the Secretary shall take into account additional
acreage as a result of an established double-cropping history on a farm,
as determined by the Secretary.
`(1) IN GENERAL- Subject
to paragraph (2) and subsection (h), an eligible owner or producer that
has entered into a contract under this subtitle may make a 1-time election
to have the payment yield for a payment for each of the 2002 through 2006
crops of all contract commodities for a farm be equal to--
`(A) an amount that is the
greater of--
`(i) the average of the
yield per harvested acre for the crop of the contract commodity for the
farm for the 1998 through 2001 crop years, excluding--
`(I) any crop year for which
the producers on the farm did not plant the contract commodity; and
`(II) at the option of the
producers on the farm, 1 additional crop year; or
`(ii) the farm program payment
yield described in subparagraph (B); or
`(B) the farm program payment
yield established for the 1995 crop of a contract commodity under section
505 of the Agricultural Act of 1949 (7 U.S.C. 1465), as adjusted by the
Secretary to account for any additional yield payments made with respect
to that crop under section 505(b)(2) of that Act.
`(2) ASSIGNED YIELDS- In
the case of a farm for which yield records are unavailable for a contract
commodity (including land of a farm that is devoted to an oilseed under
a former conservation reserve contract described in section 112(a)(3)),
the Secretary shall establish an appropriate payment yield for the contract
commodity on the farm taking in consideration the payment yields applicable
to the contract commodity under paragraph (1) for similar farms in the
area, taking into consideration the yield election for the farm under subsection
(h).
`(h) ELIGIBLE OWNER AND
PRODUCER ELECTION OPTIONS-
`(1) IN GENERAL- In making
elections under subsections (f) and (g), eligible owners and producers
on a farm shall elect to have--
`(A)(i) contract acreage
for the farm determined under subsection (f)(1)(A); and
`(ii) payment yields determined
under subsection (g)(1)(A); or
`(B)(i) contract acreage
for the farm determined under subsection (f)(1)(B); and
`(ii) payment yields determined
under--
`(I) in the case of contract
commodities other than oilseeds, subsection (g)(1)(B); and
`(II) in the case of oilseeds,
subsection (g)(1)(A).
`(2) SINGLE ELECTION; TIME
FOR ELECTION-
`(A) SINGLE ELECTION- The
eligible owners and producers on a farm shall have 1 opportunity to make
the election described in paragraph (1).
`(B) TIME FOR ELECTION-
Subject to section 112(a)(3), not later than 180 days after the date of
enactment of this subsection, the eligible owners and producers on a farm
shall notify the Secretary of the election made by the eligible owners
and producers on the farm under paragraph (1).
`(3) EFFECT OF FAILURE TO
MAKE ELECTION- If the producers on a farm fail to make the election under
paragraph (1), or fail to timely notify the Secretary of the selected option
as required by paragraph (2), the eligible owners and producers on the
farm shall be deemed to have made the election described in paragraph (1)(B)
for the purpose of determining the contract acreages for all contract commodities
on the farm.
`(4) APPLICATION OF ELECTION
TO ALL CONTRACT COMMODITIES- The election made under paragraph (1) or deemed
to be made under paragraph (3) with respect to a farm shall apply to all
of the contract commodities produced on the farm.
`SEC. 112. ELEMENTS OF CONTRACTS.
`(a) TIME FOR CONTRACTING-
`(1) COMMENCEMENT- To the
extent practicable, the Secretary shall commence entering into contracts
not later than 45 days after the date of enactment of the Agriculture,
Conservation, and Rural Enhancement Act of 2001.
`(2) DEADLINE- Except as
provided in paragraph (3), the Secretary may not enter into a contract
after the date that is 180 days after the date of enactment of that Act.
`(3) CONSERVATION RESERVE
LAND-
`(A) IN GENERAL- At the
beginning of each fiscal year, the Secretary shall allow an eligible owner
or producer on a farm covered by a conservation reserve contract entered
into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
that terminated after the date specified in paragraph (2) to enter into
or expand a contract to cover the eligible cropland of the farm that was
subject to the former conservation reserve contract.
`(B) ELECTION- For the fiscal
year and crop year for which a contract acreage adjustment under subparagraph
(A) is first made, the eligible owners and producers on the farm shall
elect to receive--
`(i) direct payments and
counter-cyclical payments under sections 113 and 114, respectively, with
respect to the acreage added to the farm under this paragraph; or
`(ii) a prorated payment
under the conservation reserve contract.
`(b) DURATION OF CONTRACT-
`(1) BEGINNING DATE- The
term of a contract shall begin with--
`(A) the 2002 crop of a
contract commodity; or
`(B) in the case of acreage
that was subject to a conservation reserve contract described in subsection
(a)(3), the date the contract was entered into or expanded to cover the
acreage.
`(2) ENDING DATE- Subject
to sections 116 and 117, the term of a contract shall extend through the
2006 crop, unless earlier terminated by the eligible owners or producers
on a farm.
`SEC. 113. DIRECT PAYMENTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 fiscal years, the Secretary shall make direct
payments available to eligible owners and producers on a farm that have
entered into a contract to receive payments under this section.
`(b) PAYMENT AMOUNT- The
amount of a direct payment to be paid to the eligible owners and producers
on a farm for a contract commodity for a fiscal year under this section
shall be obtained by multiplying--
`(1) the payment rate for
the contract commodity specified in subsection (c);
`(2) the contract acreage
attributable to the contract commodity for the farm; and
`(3) the payment yield for
the contract commodity for the farm.
`(c) PAYMENT RATE- The payment
rates used to make direct payments with respect to contract commodities
for a fiscal year under this section are as follows:
`(1) WHEAT- In the case
of wheat:
`(A) For each of fiscal
years 2002 and 2003, $0.450 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.225 per bushel.
`(C) For fiscal year 2006,
$0.113 per bushel.
`(2) CORN- In the case of
corn:
`(A) For each of fiscal
years 2002 and 2003, $0.270 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.135 per bushel.
`(C) For fiscal year 2006,
$0.068 per bushel.
`(3) GRAIN SORGHUM- In the
case of grain sorghum:
`(A) For the 2002 fiscal
year, $0.310 per bushel.
`(B) For the 2003 fiscal
year, $0.270 per bushel.
`(C) For each of fiscal
years 2004 and 2005, $0.135 per bushel.
`(D) For fiscal year 2006,
$0.068 per bushel.
`(4) BARLEY- In the case
of barley:
`(A) For each of fiscal
years 2002 and 2003, $0.200 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.100 per bushel.
`(C) For fiscal year 2006,
$0.050 per bushel.
`(5) OATS- In the case of
oats:
`(A) For each of fiscal
years 2002 and 2003, $0.050 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.025 per bushel.
`(C) For fiscal year 2006,
$0.013 per bushel.
`(6) UPLAND COTTON- In the
case of upland cotton:
`(A) For each of fiscal
years 2002 and 2003, $0.130 per pound.
`(B) For each of fiscal
years 2004 and 2005, $0.065 per pound.
`(C) For fiscal year 2006,
$0.0325 per pound.
`(7) RICE- In the case of
rice:
`(A) For each of fiscal
years 2002 and 2003, $2.450 per hundredweight.
`(B) For each of fiscal
years 2004 and 2005, $1.225 per hundredweight.
`(C) For fiscal year 2006,
$0.6125 per hundredweight.
`(8) SOYBEANS- In the case
of soybeans:
`(A) For each of fiscal
years 2002 and 2003, $0.550 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.275 per bushel.
`(C) For fiscal year 2006,
$0.138 per bushel.
`(9) OILSEEDS (OTHER THAN
SOYBEANS)- In the case of oilseeds (other than soybeans):
`(A) For each of fiscal
years 2002 and 2003, $0.010 per pound.
`(B) For each of fiscal
years 2004 and 2005, $0.005 per pound.
`(C) For fiscal year 2006,
$0.0025 per pound.
`(1) INITIAL PAYMENT- At
the option of the eligible owners and producers on a farm, the Secretary
shall pay 50 percent of the direct payment for a crop of a contract commodity
for the eligible owners and producers on the farm on or after December
1 of the fiscal year, as determined by the Secretary.
`(2) FINAL PAYMENT- The
Secretary shall pay the final amount of the direct payment that is payable
to the eligible owners and producers on a farm for a contract commodity
under subsection (a) (less the amount of any initial payment made to the
producers on the farm of the contract commodity under paragraph (1)) not
later than September 30 of the fiscal year, as determined by the Secretary.
`SEC. 114. COUNTER-CYCLICAL
PAYMENTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 crop years, the Secretary shall make counter-cyclical
payments to eligible owners and producers on a farm of each contract commodity
that have entered into a contract to receive payments under this section.
`(b) PAYMENT AMOUNT- The
amount of the payments made to eligible owners and producers on a farm
for a crop of a contract commodity under this section shall equal the amount
obtained by multiplying--
`(1) the payment rate for
the contract commodity specified in subsection (c);
`(2) the contract acreage
attributable to the contract commodity for the farm; and
`(3) the payment yield for
the contract commodity for the farm.
`(1) IN GENERAL- The payment
rate for a crop of a contract commodity under subsection (b)(1) shall equal
the difference between--
`(A) the income protection
price for the contract commodity established under paragraph (2); and
`(I) the average price of
the contract commodity during the first 5 months of the marketing year
of the contract commodity, as determined by the Secretary; and
`(II) the loan rate for
the crop of the contract commodity under section 132; and
`(ii) the direct payment
for the contract commodity under section 113 for the fiscal year that precedes
the date of a payment under this section.
`(2) INCOME PROTECTION PRICES-
The income protection prices for contract commodities under paragraph (1)(A)
are as follows:
`(A) Wheat, $3.45 per bushel.
`(B) Corn, $2.35 per bushel.
`(C) Grain sorghum, $2.35
per bushel.
`(D) Barley, $2.20 per bushel.
`(E) Oats, $1.55 per bushel.
`(F) Upland cotton, $0.680
per pound.
`(G) Rice, $9.30 per hundredweight.
`(H) Soybeans, $5.75 per
bushel.
`(I) Oilseeds (other than
soybeans), $0.105 per pound.
`(d) TIME FOR PAYMENT- The
Secretary shall make counter-cyclical payments for each of the 2002 through
2006 crop years not later than 190 days after the beginning of marketing
year for the crop of the contract commodity.'.
SEC. 112. VIOLATIONS OF CONTRACTS.
Section 116 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7216) is amended--
(1) in the first sentence
of subsection (a)--
(A) by striking `subsection
(b)' and inserting `subsections (b) and (e)'; and
(B) by striking `section
111(a)' and inserting `this subtitle';
(2) in subsection (b), by
striking `If' and inserting `Except as provided in subsection (e), if';
and
(3) by adding at the end
the following:
`(e) PLANTING FLEXIBILITY-
In the case of a first violation of section 118(b) by an eligible owner
or producer that has entered into a contract and that acted in good faith,
in lieu of terminating the contract under subsection (a), the Secretary
shall require a refund or reduce a future contract payment under subsection
(b) in an amount that does not exceed twice the amount otherwise payable
under the contract on the number of acres involved in the violation.'.
SEC. 113. PLANTING FLEXIBILITY.
Section 118(b) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7218(b)) is amended--
(1) by striking paragraph
(1) and inserting the following:
`(1) LIMITATIONS- The planting
of the following agricultural commodities shall be prohibited on contract
acreage:
`(B) Vegetables (other than
lentils, mung beans, dry peas, and chickpeas).
`(C) In the case of the
2003 and subsequent crops of an agricultural commodity, wild rice.'; and
(2) in paragraph (2)(C),
by striking `1991 through 1995' and inserting `1996 through 2001'.
Subtitle B--Nonrecourse Marketing
Assistance Loans and Loan Deficiency Payments
SEC. 121. NONRECOURSE MARKETING
ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS.
(a) IN GENERAL- Sections
131(a) and 137 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7231(a), 7237) are amended by striking `2002' each place
it appears and inserting `2006'.
(b) UPLAND COTTON- Sections
134(e)(1), 136, and 136A(a) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7234(e)(1), 7236, 7236a(a)) are amended by
striking `2003' each place it appears and inserting `2007'.
SEC. 122. ELIGIBLE PRODUCTION.
Section 131 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231) is amended
by striking subsection (b) and inserting the following:
`(b) ELIGIBLE PRODUCTION-
The producers on a farm shall be eligible for a marketing loan under subsection
(a) for any quantity of a loan commodity produced on the farm.'.
SEC. 123. LOAN RATES.
(a) IN GENERAL- Section
132 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7232) is amended to read as follows:
`SEC. 132. LOAN RATES.
`(a) IN GENERAL- Subject
to subsection (b), the loan rate for a marketing assistance loan under
section 131 for a loan commodity shall be--
`(1) in the case of wheat,
$3.00 per bushel;
`(2) in the case of corn,
$2.08 per bushel;
`(3) in the case of grain
sorghum, $2.08 per bushel;
`(4) in the case of barley,
$2.00 per bushel;
`(5) in the case of oats,
$1.50 per bushel;
`(6) in the case of upland
cotton, $0.55 per pound;
`(7) in the case of extra
long staple cotton, $0.7965 per pound;
`(8) in the case of rice,
$6.85 per hundredweight;
`(9) in the case of soybeans,
$5.20 per bushel;
`(10) in the case of oilseeds
(other than soybeans), $0.095 per pound;
`(11) in the case of graded
wool, $1.00 per pound;
`(12) in the case of nongraded
wool, $.40 per pound;
`(13) in the case of mohair,
$2.00 per pound;
`(14) in the case of honey,
$.60 per pound;
`(15) in the case of dry
peas, $6.78 per hundredweight;
`(16) in the case of lentils,
$12.79 per hundredweight;
`(17) in the case of large
chickpeas, $17.44 per hundredweight; and
`(18) in the case of small
chickpeas, $8.10 per hundredweight.
`(1) IN GENERAL- The Secretary
may make appropriate adjustments in the loan rates for any loan commodity
for differences in grade, type, quality, location, and other factors.
`(2) MANNER- The adjustments
under this subsection shall, to the maximum extent practicable, be made
in such manner that the average loan rate for the loan commodity will,
on the basis of the anticipated incidence of the factors described in paragraph
(1), be equal to the loan rate provided under this section.'.
(b) CONFORMING AMENDMENT-
Section 162 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7282) is repealed.
SEC. 124. TERM OF LOANS.
Section 133 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7233) is amended
to read as follows:
`SEC. 133. TERM OF LOANS.
`In the case of each loan
commodity, a marketing loan under section 131 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.'.
SEC. 125. REPAYMENT OF LOANS.
Section 134(a) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7234(a)) is amended--
(1) by striking `wheat,
corn, grain sorghum, barley, oats, and oilseeds' and inserting `a loan
commodity (other than upland cotton, rice, and extra long staple cotton)';
and
(A) in subparagraph (C),
by striking `and' at the end;
(B) in subparagraph (D),
by striking the period and inserting `; and'; and
(C) by adding at the end
the following:
`(E) minimize discrepancies
in marketing loan benefits across State boundaries and across county boundaries.'.
SEC. 126. LOAN DEFICIENCY PAYMENTS.
Section 135 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7235) is amended--
(1) by striking subsection
(a) and inserting the following:
`(a) IN GENERAL- The Secretary
may make loan deficiency payments available to producers on a farm that,
although eligible to obtain a marketing assistance loan under section 131
with respect to a loan commodity, agree to forgo obtaining the loan for
the loan commodity in return for payments under this section.'; and
(2) by striking subsections
(e) and (f) and inserting the following:
`(e) BENEFICIAL INTEREST-
`(1) IN GENERAL- A producer
shall be eligible for a payment for a loan commodity under this section
only if the producer has a beneficial interest in the loan commodity, as
determined by the Secretary.
`(2) APPLICATION- The Secretary
shall make a payment under this section to the producers on a farm with
respect to a quantity of a loan commodity as of the earlier of--
`(A) the date on which the
producers on the farm marketed or otherwise lost beneficial interest in
the loan commodity, as determined by the Secretary; or
`(B) the date the producers
on the farm request the payment.'.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 131. MILK PRICE SUPPORT
PROGRAM.
(a) IN GENERAL- Section
141 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7251) is amended--
(1) in subsections (b)(4)
and (h), by striking `2001' each place it appears and inserting `2006';
and
(2) in the first sentence
of subsection (d)(1), by striking `may' and inserting `shall'.
(b) EFFECTIVE DATE- The
amendments made by subsection (a) take effect on January 1, 2002.
SEC. 132. NATIONAL DAIRY PROGRAM.
Section 142 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7252) is amended
to read as follows:
`SEC. 142. NATIONAL DAIRY PROGRAM.
`(a) PURPOSE- The purpose
of this section is to establish a program that will stabilize the production,
price, and marketing of milk and other dairy products in the United States
which is critical to the welfare of the United States.
`(b) DEFINITIONS- In this
section:
`(1) CLASS I, II, III, AND
IV MILK- The terms `Class I milk', `Class II milk', `Class III milk', and
`Class IV milk' mean milk (including milk components) classified as Class
I, II, III, or IV milk, respectively, under a Federal milk marketing order.
`(2) ELIGIBLE PRODUCTION-
The term `eligible production' means, with respect to each producer that
operates a dairy farming operation, the lesser of--
`(A) the quantity of milk
sold by the dairy farming operation under any Federal milk marketing order
during the applicable month; or
`(B) 500,000 pounds of milk
per month.
`(3) FEDERAL MILK MARKETING
ORDER- The term `Federal milk marketing order' means an order issued under
section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act of 1937.
`(4) MARKETING AREA- The
term `marketing area' means a marketing area defined under a Federal milk
marketing order.
`(5) PRODUCER- The term
`producer' means an individual or entity that directly or indirectly (as
determined by the Secretary)--
`(A) shares in the risk
of producing milk; and
`(B) makes contributions
(including land, labor, management, equipment, or capital) to the dairy
farming operation of the individual or entity that are at least commensurate
with the individual or entity's share of the proceeds of the operation.
`(6) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(c) MINIMUM PRICE- Effective
beginning January 1, 2002, the Secretary shall amend Federal milk marketing
orders to establish a minimum price per hundredweight for Class I milk
that is not less than the sum of--
`(1) the adjusted Class
I milk differential specified in section 1000.52 of title 7, Code of Federal
Regulations (or a successor regulation); and
`(A) the advanced Class
III milk price (as determined under section 1000.50(q)(4)(i) of title 7,
Code of Federal Regulations (or a successor regulation));
`(B) the advanced Class
IV milk price (as determined under section 1000.50(q)(4)(ii) of title 7,
Code of Federal Regulations (or a successor regulation)); or
`(d) NATIONAL POOLING- Notwithstanding
any other provision of law, the Secretary--
`(1) shall provide for the
uniform national pooling among producers of milk under all Federal milk
marketing orders of all funds that are equal to the difference between--
`(A) the price of Class
I milk as determined under this section; and
`(B) the price of Class
I milk that would be determined if this section were not in effect;
`(2) subject to subsection
(e), shall provide for the distribution of amounts described in paragraph
(1) to all producers covered by Federal milk marketing orders, based on
eligible production under Federal milk marketing orders, at a uniform rate
per hundredweight; and
`(3) may make such modifications
in the operation of Federal milk marketing orders as are necessary to carry
out this section.
`(e) ADMINISTRATIVE AND
FOOD ASSISTANCE COSTS- The Secretary shall use amounts described in subsection
(d)(1) to provide compensation to--
`(A) administrative costs
incurred by the Secretary in carrying out subsections (c) and (d); and
`(B) the increased costs
incurred by the Secretary of any milk and milk products provided under
any food assistance program administered by the Secretary that results
from carrying out subsections (c) and (d);
`(2) each State for the
increased costs incurred by the State of any milk and milk products provided
under the special supplemental nutrition program for women, infants, and
children established by section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786) that results from carrying out subsections (c) and (d); and
`(3) the Commodity Credit
Corporation for any additional costs for a fiscal year to carry out section
141 as a result of increased production of milk in a marketing area that
results from carrying out subsections (c) and (d).
`(f) COUNTER-CYCLICAL PAYMENTS
FROM SECRETARY TO PRODUCERS-
`(1) IN GENERAL- Subject
to paragraph (3), if the average price for Class III milk during a month
is less than $14.25 per hundredweight, the Secretary shall use the funds
of the Commodity Credit Corporation in such amounts as may be necessary
to make a payment to each producer for eligible production of milk in an
amount determined by multiplying--
`(A) the payment rate determined
under paragraph (2); by
`(B) the quantity of Class
II, Class III, and Class IV milk produced by the producer during the month,
as determined by the Secretary.
`(2) PAYMENT RATE- The payment
rate for a payment made to a producer for a month under paragraph (1)(A)
shall equal 25 percent of the difference between--
`(A) $14.25 per hundredweight;
and
`(B) the average price for
Class III milk during the month, as determined by the Secretary.
`(3) MAXIMUM AMOUNT OF PAYMENTS-
The total amount of payments made to producers for a fiscal year under
this subsection shall not exceed $300,000,000.'.
SEC. 133. DAIRY EXPORT INCENTIVE
AND DAIRY INDEMNITY PROGRAMS.
(a) DAIRY EXPORT INCENTIVE
PROGRAM- Section 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a-14(a))
is amended by striking `2002' and inserting `2006'.
(b) DAIRY INDEMNITY PROGRAM-
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking
`1995' and inserting `2006'.
SEC. 134. FLUID MILK PROMOTION.
(a) DEFINITION OF FLUID
MILK PRODUCT- Section 1999C of the Fluid Milk Promotion Act of 1990 (7
U.S.C. 6402) is amended by striking paragraph (3) and inserting the following:
`(3) FLUID MILK PRODUCT-
The term `fluid milk product' has the meaning given the term in--
`(A) section 1000.15 of
title 7, Code of Federal Regulations, subject to such amendments as may
be made by the Secretary; or
`(B) any successor regulation.'.
(b) DEFINITION OF FLUID
MILK PROCESSOR- Section 1999C(4) of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6402(4)) is amended by striking `500,000' and inserting `3,000,000'.
(c) ELIMINATION OF ORDER
TERMINATION DATE- Section 1999O of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6414) is amended--
(1) by striking subsection
(a); and
(2) by redesignating subsections
(b) and (c) as subsections (a) and (b), respectively.
SEC. 135. DAIRY PRODUCT MANDATORY
REPORTING.
Section 272(1) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637a(1)) is amended--
(1) by striking `means manufactured
dairy products' and inserting `means--
`(A) manufactured dairy
products';
(2) by striking the period
at the end and inserting `; and'; and
(3) by adding at the end
the following:
`(B) substantially identical
products designated by the Secretary.'.
SEC. 136. FUNDING OF DAIRY PROMOTION
AND RESEARCH PROGRAM.
(a) DEFINITIONS- Section
111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
amended--
(1) in subsection (k), by
striking `and' at the end;
(2) in subsection (l), by
striking the period at the end and inserting a semicolon; and
(3) by adding at the end
the following:
`(m) the term `imported
dairy product' means any dairy product that is imported into the United
States, including a dairy product imported into the United States in the
form of--
`(1) milk, cream, and fresh
and dried dairy products;
`(2) butter and butterfat
mixtures;
`(4) casein and mixtures;
`(n) the term `importer'
means a person that imports an imported dairy product into the United States;
and
`(o) the term `Customs'
means the United States Customs Service.'.
(b) REPRESENTATION OF IMPORTERS
ON BOARD- Section 113(b) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(b)) is amended--
(1) by inserting `NATIONAL
DAIRY PROMOTION AND RESEARCH BOARD- ' after `(b)';
(2) by designating the first
through ninth sentences as paragraphs (1) through (5) and paragraphs (7)
through (10), respectively, and indenting the paragraphs appropriately;
(3) in paragraph (2) (as
so designated), by striking `Members' and inserting `Except as provided
in paragraph (6), the members'; and
(4) by inserting after paragraph
(5) (as so designated) the following:
`(A) REPRESENTATION- The
Secretary shall appoint not more than 2 members who represent importers
of dairy products and are subject to assessments under the order, to reflect
the proportion of domestic production and imports supplying the United
States market, as determined by the Secretary on the basis of the average
volume of domestic production of dairy products in proportion to the average
volume of imports of dairy products in the United States during the immediately
preceding 3 years.
`(B) ADDITIONAL MEMBERS;
NOMINATIONS- The members appointed under this paragraph--
`(i) shall be in addition
to the total number of members appointed under paragraph (2); and
`(ii) shall be appointed
from nominations submitted by importers under such procedures as the Secretary
determines to be appropriate.'.
(c) IMPORTER ASSESSMENT-
Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)) is amended--
(1) by inserting `ASSESSMENTS-
' after `(g)';
(2) by designating the first
through fifth sentences as paragraphs (1) through (5), respectively, and
indenting appropriately; and
(3) by adding at the end
the following:
`(A) IN GENERAL- The order
shall provide that each importer of imported dairy products shall pay an
assessment to the Board in the manner prescribed by the order.
`(i) IN GENERAL- The assessment
on imported dairy products shall be--
`(I) paid by the importer
to Customs at the time of the entry of the products into the United States;
and
`(II) remitted by Customs
to the Board.
`(ii) TIME OF ENTRY- For
purposes of this subparagraph, entry of the products into the United States
shall be considered to have occurred when a dairy product is released from
custody of Customs and introduced into the stream of commerce within the
United States.
`(iii) IMPORTERS- For purposes
of this subparagraph, an importer includes--
`(I) a person that holds
title to a dairy product produced outside the United States immediately
on release by Customs; and
`(II) a person that acts
on behalf of other persons, as an agent, broker, or consignee, to secure
the release of a dairy product from Customs and introduce the released
dairy product into the stream of commerce.
`(C) RATE- The rate of assessment
on imported dairy products shall be determined in the same manner as the
rate of assessment per hundredweight or the equivalent of milk.
`(D) VALUE OF PRODUCTS-
For the purpose of determining the assessment on imported dairy products
under subparagraph (C), the value to be placed on imported dairy products
shall be established by the Secretary in a fair and equitable manner.
`(E) USE OF ASSESSMENTS
ON IMPORTED DAIRY PRODUCTS- Assessments collected on imported dairy products
shall not be used for foreign market promotion of United States dairy products.'.
(d) RECORDS- Section 113(k)
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is
amended in the first sentence by striking `person receiving' and inserting
`importer of imported dairy products, each person receiving'.
(e) IMPORTER ELIGIBILITY
TO VOTE IN REFERENDUM- Section 116(b) of the Dairy Promotion Stabilization
Act of 1983 (7 U.S.C. 4507(b)) is amended--
(1) in the first sentence,
by inserting `and importers' after `producers' each place it appears; and
(2) in the second sentence,
by inserting after `commercial use' the following: `and importers voting
in the referendum (that have been engaged in the importation of dairy products
into the United States during the applicable period, as determined by the
Secretary)'.
(f) CONFORMING AMENDMENTS-
Section 110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4501(b)) is amended--
(1) in the first sentence--
(A) by inserting after `commercial
use' the following: `and on imported dairy products'; and
(B) by striking `products
produced in the United States.' and inserting `products.'; and
(2) in the second sentence,
by inserting after `produce milk' the following: `or the right of any person
to import dairy products'.
CHAPTER 2--SUGAR
SEC. 141. SUGAR PROGRAM.
(a) LOAN RATE ADJUSTMENTS-
Section 156(c) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272(c)) is amended--
(1) by striking `REDUCTION
IN LOAN RATES' and inserting `LOAN RATE ADJUSTMENTS'; and
(A) by striking `REDUCTION
REQUIRED' and inserting `IN GENERAL'; and
(B) by striking `shall'
and inserting `may'.
(b) LOAN TYPE; PROCESSOR
ASSURANCES- Section 156(e) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272(e)) is amended--
(1) by striking paragraph
(2) and inserting the following:
`(2) PROCESSOR ASSURANCES-
`(A) IN GENERAL- The Secretary
shall obtain from each processor that receives a loan under this section
such assurances as the Secretary considers adequate to ensure that the
processor will provide payments to producers that are proportional to the
value of the loan received by the processor for the sugar beets and sugarcane
delivered by producers to the processor.
`(i) IN GENERAL- Subject
to clause (ii), the Secretary may establish appropriate minimum payments
for purposes of this paragraph.
`(ii) LIMITATION- In the
case of sugar beets, the minimum payment established under clause (i) shall
not exceed the rate of payment provided for under the applicable contract
between a sugar beet producer and a sugar beet processor.
`(C) BANKRUPTCY OR INSOLVENCY
OF PROCESSORS-
`(i) IN GENERAL- The Secretary
shall use funds of the Commodity Credit Corporation to pay a producer of
sugar beets or sugarcane loan benefits described in clause (ii) if--
`(I) a processor that has
entered into a contract with the producer has filed for bankruptcy protection
or is otherwise insolvent;
`(II) the assurances under
subparagraph (A) are not adequate to ensure compliance with subparagraph
(A), as determined by the Secretary;
`(III) the producer demands
payments of loan benefits required under this section from the processor;
and
`(IV) the Secretary determines
that the processor is unable to provide the loan benefits required under
this section.
`(ii) AMOUNT- The amount
of loan benefits provided to a producer under clause (i) shall be equal
to--
`(I) the maximum amount
of loan benefits the producer would have been entitled to receive under
this section during the 30-day period beginning on the final settlement
date provided for in the contract between the producer and processor; less
`(II) any such benefits
received by the producer from the processor.
`(iii) ADMINISTRATION- On
payment to a producer under clause (i), the Secretary shall--
`(I) be subrogated to all
claims of the producer against the processor and other persons responsible
for nonpayment; and
`(II) have authority to
pursue such claims as are necessary to recover the benefits not paid to
the producer by the processor.'; and
(2) by adding at the end
the following:
`(3) ADMINISTRATION- The
Secretary may not impose or enforce any prenotification or similar administrative
requirement that has the effect of preventing a processor from electing
to forfeit the loan collateral on the maturity of the loan.'.
(c) TERMINATION OF MARKETING
ASSESSMENT- Effective October 1, 2001, section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking
subsection (f).
(d) TERMINATION OF FORFEITURE
PENALTY- Section 156 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272) is amended by striking subsection (g).
(e) IN-PROCESS SUGAR- Section
156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272) (as amended by subsections (c) and (d)) is amended by inserting after
subsection (e) the following:
`(f) LOANS FOR IN-PROCESS
SUGAR-
`(1) DEFINITION OF IN-PROCESS
SUGARS AND SYRUPS- In this subsection, the term `in-process sugars and
syrups' does not include raw sugar, liquid sugar, invert sugar, invert
syrup, or other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
`(2) AVAILABILITY- The Secretary
shall make nonrecourse loans available to processors of a crop of domestically
grown sugarcane and sugar beets for in-process sugars and syrups derived
from the crop.
`(3) LOAN RATE- The loan
rate shall be equal to 80 percent of the loan rate applicable to raw cane
sugar or refined beet sugar, as determined by the Secretary on the basis
of the source material for the in-process sugars and syrups.
`(4) FURTHER PROCESSING
ON FORFEITURE-
`(A) IN GENERAL- As a condition
of the forfeiture of in-process sugars and syrups serving as collateral
for a loan under paragraph (2), the processor shall, within such reasonable
time period as the Secretary may prescribe and at no cost to the Commodity
Credit Corporation, convert the in-process sugars and syrups into raw cane
sugar or refined beet sugar of acceptable grade and quality for sugars
eligible for loans under subsection (a) or (b).
`(B) TRANSFER TO CORPORATION-
Once the in-process sugars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall transfer the sugar to
the Commodity Credit Corporation.
`(C) PAYMENT TO PROCESSOR-
On transfer of the sugar, the Secretary shall make a payment to the processor
in an amount equal to the amount obtained by multiplying--
`(i) the difference between--
`(I) the loan rate for raw
cane sugar or refined beet sugar, as appropriate; and
`(II) the loan rate the
processor received under paragraph (3); by
`(ii) the quantity of sugar
transferred to the Secretary.
`(5) LOAN CONVERSION- If
the processor does not forfeit the collateral as described in paragraph
(4), but instead further processes the in-process sugars and syrups into
raw cane sugar or refined beet sugar and repays the loan on the in-process
sugars and syrups, the processor may obtain a loan under subsection (a)
or (b) for the raw cane sugar or refined beet sugar, as appropriate.'.
(f) ADMINISTRATION OF PROGRAM-
Section 156 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7272) (as amended by subsection (e)) is amended by inserting
after subsection (f) the following:
`(g) AVOIDING FORFEITURES;
CORPORATION INVENTORY DISPOSITION-
`(1) IN GENERAL- Subject
to subsection (e)(3), to the maximum extent practicable, the Secretary
shall operate the program established under this section at no cost to
the Federal Government by avoiding the forfeiture of sugar to the Commodity
Credit Corporation.
`(2) INVENTORY DISPOSITION-
`(A) IN GENERAL- To carry
out paragraph (1), the Commodity Credit Corporation may accept bids to
obtain raw cane sugar or refined beet sugar in the inventory of the Commodity
Credit Corporation from (or otherwise make available such commodities,
on appropriate terms and conditions, to) processors of sugarcane and processors
of sugar beets (acting in conjunction with the producers of the sugarcane
or sugar beets processed by the processors) in return for the reduction
of production of raw cane sugar or refined beet sugar, as appropriate.
`(B) ADDITIONAL AUTHORITY-
The authority provided under this paragraph is in addition to any authority
of the Commodity Credit Corporation under any other law.'.
(g) INFORMATION REPORTING-
Section 156(h) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272(h)) is amended--
(1) by redesignating paragraphs
(2) and (3) as paragraphs (4) and (5), respectively;
(2) by inserting after paragraph
(1) the following:
`(2) DUTY OF PRODUCERS TO
REPORT-
`(A) PROPORTIONATE SHARE
STATES- As a condition of a loan made to a processor for the benefit of
a producer, the Secretary shall require each producer of sugarcane located
in a State (other than the Commonwealth of Puerto Rico) in which there
are in excess of 250 producers of sugarcane to report, in the manner prescribed
by the Secretary, the sugarcane yields and acres planted to sugarcane of
the producer.
`(B) OTHER STATES- The Secretary
may require each producer of sugarcane or sugar beets not covered by paragraph
(1) to report, in a manner prescribed by the Secretary, the yields of,
and acres planted to, sugarcane or sugar beets, respectively, of the producer.
`(3) DUTY OF IMPORTERS TO
REPORT-
`(A) IN GENERAL- Except
as provided in subparagraph (B), the Secretary shall require an importer
of sugars, syrups, or molasses to be used for human consumption or to be
used for the extraction of sugar for human consumption to report, in the
manner prescribed by the Secretary, the quantities of the products imported
by the importer and the sugar content or equivalent of the products.
`(B) TARIFF-RATE QUOTAS-
Subparagraph (A) shall not apply to sugars, syrups, or molasses that are
within the quantities of tariff-rate quotas that are subject to the lower
rate of duties.'; and
(3) in paragraph (5) (as
redesignated by paragraph (1)), by striking `paragraph (1)' and inserting
`this subsection'.
(h) CROPS- Section 156(i)
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7251(i)) is amended--
(1) by striking `(other
than subsection (f))'; and
(2) by striking `2002' and
inserting `2006'.
(i) INTEREST RATE- Section
163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283) is amended--
(1) by inserting `(a) IN
GENERAL- ' before `Notwithstanding'; and
(2) by adding at the end
the following:
`(b) SUGAR- For purposes
of this section, raw cane sugar, refined beet sugar, and in-process sugar
eligible for a loan under section 156 shall not be considered an agricultural
commodity.'.
SEC. 142. STORAGE FACILITY LOANS.
Chapter 2 of subtitle D
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7271 et seq.) is amended by adding at the end the following:
`SEC. 157. STORAGE FACILITY
LOANS.
`(a) IN GENERAL- Notwithstanding
any other provision of law and as soon as practicable after the date of
enactment of this section, the Commodity Credit Corporation shall amend
part 1436 of title 7, Code of Federal Regulations, to establish a sugar
storage facility loan program to provide financing for processors of domestically-produced
sugarcane and sugar beets to construct or upgrade storage and handling
facilities for raw sugars and refined sugars.
`(b) ELIGIBLE PROCESSORS-
A storage facility loan shall be made available to any processor of domestically
produced sugarcane or sugar beets that (as determined by the Secretary)--
`(1) has a satisfactory
credit history;
`(2) has a need for increased
storage capacity, taking into account the effects of marketing allotments;
and
`(3) demonstrates an ability
to repay the loan.
`(c) TERM OF LOANS- A storage
facility loan shall--
`(1) have a minimum term
of 7 years; and
`(2) be in such amounts
and on such terms and conditions (including terms and conditions relating
to downpayments, collateral, and eligible facilities) as are normal, customary,
and appropriate for the size and commercial nature of the borrower.'.
SEC. 143. FLEXIBLE MARKETING
ALLOTMENTS FOR SUGAR.
(a) INFORMATION REPORTING-
Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa)
is repealed.
(b) ESTIMATES- Section 359b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended--
(1) in the section heading--
(A) by inserting `flexible'
before `marketing'; and
(B) by striking `and crystalline
fructose';
(i) by striking `Before'
and inserting `Not later than August 1 before';
(ii) by striking `1992 through
1998' and inserting `2002 through 2006';
(iii) in subparagraph (A),
by striking `(other than sugar' and all that follows through `stocks';
(iv) by redesignating subparagraphs
(B) and (C) as subparagraphs (C) and (E), respectively;
(v) by inserting after subparagraph
(A) the following:
`(B) the quantity of sugar
that would provide for reasonable carryover stocks;';
(vi) in subparagraph (C)
(as so redesignated)--
(I) by striking `or' and
all that follows through `beets'; and
(II) by striking `and' following
the semicolon;
(vii) by inserting after
subparagraph (C) (as so redesignated) the following:
`(D) the quantity of sugar
that will be available from the domestic processing of sugarcane and sugar
beets; and'; and
(viii) in subparagraph (E)
(as so redesignated)--
(I) by striking `quantity
of sugar' and inserting `quantity of sugars, syrups, and molasses';
(II) by inserting `human'
after `imported for' the first place it appears;
(III) by inserting after
`consumption' the first place it appears the following: `or to be used
for the extraction of sugar for human consumption';
(IV) by striking `year'
and inserting `year, whether such articles are under a tariff-rate quota
or are in excess or outside of a tariff-rate quota'; and
(V) by striking `(other
than sugar' and all that follows through `carry-in stocks';
(B) by redesignating paragraph
(2) as paragraph (3);
(C) by inserting after paragraph
(1) the following:
`(2) EXCLUSION- The estimates
under this subsection shall not apply to sugar imported for the production
of polyhydric alcohol or to any sugar refined and reexported in refined
form or in products containing sugar.'; and
(D) in paragraph (3) (as
so redesignated)--
(i) in the paragraph heading,
by striking `QUARTERLY REESTIMATES' and inserting `REESTIMATES'; and
(ii) by inserting `as necessary,
but' after `a fiscal year';
(A) by striking paragraph
(1) and inserting the following:
`(1) IN GENERAL- By the
beginning of each fiscal year, the Secretary shall establish for that fiscal
year appropriate allotments under section 359c for the marketing by processors
of sugar processed from sugar beets and from domestically-produced sugarcane
at a level that the Secretary estimates will result in no forfeitures of
sugar to the Commodity Credit Corporation under the loan program for sugar
established under section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7251).'; and
(B) in paragraph (2), by
striking `or crystalline fructose';
(4) by striking subsection
(c);
(5) by redesignating subsection
(d) as subsection (c); and
(6) in subsection (c) (as
so redesignated)--
(A) by striking paragraph
(2);
(B) by redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively; and
(C) in paragraph (2) (as
so redesignated)--
(i) by striking `or manufacturer'
and all that follows through `(2)'; and
(ii) by striking `or crystalline
fructose'.
(c) ESTABLISHMENT- Section
359c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
(1) in the section heading,
by inserting `flexible' after `of';
(2) in subsection (a), by
inserting `flexible' after `establish';
(A) in paragraph (1)(A),
by striking `1,250,000' and inserting `1,532,000'; and
(B) in paragraph (2), by
striking `to the maximum extent practicable';
(4) by striking subsection
(c) and inserting the following:
`(c) MARKETING ALLOTMENT
FOR SUGAR DERIVED FROM SUGAR BEETS AND SUGAR DERIVED FROM SUGARCANE- The
overall allotment quantity for the fiscal year shall be allotted between--
`(1) sugar derived from
sugar beets by establishing a marketing allotment for a fiscal year at
a quantity equal to the product of multiplying the overall allotment quantity
for the fiscal year by 54.35 percent; and
`(2) sugar derived from
sugarcane by establishing a marketing allotment for a fiscal year at a
quantity equal to the product of multiplying the overall allotment quantity
for the fiscal year by 45.65 percent.';
(5) by striking subsection
(d) and inserting the following:
`(d) FILLING CANE SUGAR
AND BEET SUGAR ALLOTMENTS-
`(1) CANE SUGAR- Each marketing
allotment for cane sugar established under this section may only be filled
with sugar processed from domestically grown sugarcane.
`(2) BEET SUGAR- Each marketing
allotment for beet sugar established under this section may only be filled
with sugar domestically processed from sugar beets.';
(6) by striking subsection
(e);
(7) by redesignating subsection
(f) as subsection (e);
(8) in subsection (e) (as
so redesignated)--
(A) by striking `The allotment'
and inserting the following:
`(1) IN GENERAL- The allotment';
(B) in paragraph (1) (as
so redesignated)--
(i) by striking `the 5'
and inserting `the';
(ii) by inserting after
`sugarcane is produced,' the following: `after a hearing (if requested
by the affected sugarcane processors and growers) and on such notice as
the Secretary by regulation may prescribe,'; and
(iii) by striking `on the
basis of past marketings' and all that follows through `allotments' and
inserting `as provided in this subsection and section 359d(a)(2)(A)(iv)';
and
(C) by inserting after paragraph
(1) (as so designated) the following:
`(A) COLLECTIVELY- Prior
to the allotment of sugar derived from sugarcane to any other State, 325,000
short tons, raw value shall be allotted to the offshore States.
`(B) INDIVIDUALLY- The collective
offshore State allotment provided for under subparagraph (A) shall be further
allotted among the offshore States in which sugarcane is produced, after
a hearing (if requested by the affected sugarcane processors and growers)
and on such notice as the Secretary by regulation may prescribe, in a fair
and equitable manner on the basis of--
`(i) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from the 1996 through 2000 crops;
`(ii) the ability of processors
to market the sugar covered under the allotments for the crop year; and
`(iii) past processings
of sugar from sugarcane based on the 3-year average of the 1998 through
2000 crop years.
`(3) MAINLAND ALLOTMENT-
The allotment for sugar derived from sugarcane, less the amount provided
for under paragraph (2), shall be allotted among the mainland States in
the United States in which sugarcane is produced, after a hearing (if requested
by the affected sugarcane processors and growers) and on such notice as
the Secretary by regulation may prescribe, in a fair and equitable manner
on the basis of--
`(A) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from the 1996 through 2000 crops;
`(B) the ability of processors
to market the sugar covered under the allotments for the crop year; and
`(C) past processings of
sugar from sugarcane, based on the 3 crop years with the greatest processings
(in the mainland States collectively) during the 1991 through 2000 crop
years.';
(9) by inserting after subsection
(e) (as so redesignated) the following:
`(f) FILLING CANE SUGAR
ALLOTMENTS- Except as provided in section 359e, a State cane sugar allotment
established under subsection (e) for a fiscal year may be filled only with
sugar processed from sugarcane grown in the State covered by the allotment.';
(A) in paragraph (1), by
striking `359b(a)(2)--' and all that follows through the comma at the end
of subparagraph (C) and inserting `359b(a)(3), adjust upward or downward
marketing allotments in a fair and equitable manner';
(B) in paragraph (2), by
striking `359f(b)' and inserting `359f(c)'; and
(i) in the paragraph heading,
by striking `REDUCTIONS' and inserting `CARRY-OVER OF REDUCTIONS';
(ii) by inserting after
`this subsection, if' the following: `at the time of the reduction';
(iii) by striking `price
support' and inserting `nonrecourse';
(iv) by striking `206' and
all that follows through `the allotment' and inserting `156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7251),'; and
(v) by striking `, if any,';
and
(11) by striking subsection
(h) and inserting the following:
`(h) SUSPENSION OF ALLOTMENTS-
Whenever the Secretary estimates or reestimates under section 359b(a),
or has reason to believe, that imports of sugars, syrups or molasses for
human consumption or to be used for the extraction of sugar for human consumption,
whether under a tariff-rate quota or in excess or outside of a tariff-rate
quota, will exceed 1,532,000 short tons (raw value equivalent), and that
the imports would lead to a reduction of the overall allotment quantity,
the Secretary shall suspend the marketing allotments established under
this section until such time as the imports have been restricted, eliminated,
or reduced to or below the level of 1,532,000 short tons (raw value equivalent).'.
(d) ALLOCATION- Section
359d(a)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(a)(2))
is amended--
(1) in subparagraph (A)--
(A) by striking `The Secretary'
and inserting the following:
`(i) IN GENERAL- The Secretary';
(B) in the first sentence
of clause (i) (as so designated)--
(i) by striking `interested
parties' and inserting `the affected sugarcane processors and growers';
and
(ii) by striking `by taking'
and all that follows through `allotment allocated.' and inserting `under
this subparagraph.'; and
(C) by inserting after clause
(i) the following:
`(ii) MULTIPLE PROCESSOR
STATES- Except as provided in clauses (iii) and (iv), the Secretary shall
allocate the allotment for cane sugar among multiple cane sugar processors
in a single State based on--
`(I) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from among the 1996 through 2000 crops;
`(II) the ability of processors
to market sugar covered by that portion of the allotment allocated for
the crop year; and
`(III) past processings
of sugar from sugarcane, based on the average of the 3 highest years of
production during the 1996 through 2000 crop years.
`(iii) TALISMAN PROCESSING
FACILITY- In the case of allotments under clause (ii) attributable to the
operations of the Talisman processing facility before the date of enactment
of this clause, the Secretary shall allocate the allotment among processors
in the State under clause (i) in accordance with the agreements of March
25 and 26, 1999, between the affected processors and the Secretary of the
Interior.
`(iv) PROPORTIONATE SHARE
STATES- In the case of States subject to section 359f(c), the Secretary
shall allocate the allotment for cane sugar among multiple cane sugar processors
in a single state based on--
`(I) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from among the 1997 through 2001 crop years;
`(II) the ability of processors
to market sugar covered by that portion of the allotments allocated for
the crop year; and
`(III) past processings
of sugar from sugarcane, based on the average of the 2 highest crop years
of crop production during the 1997 through 2001 crop years.
`(I) IN GENERAL- Notwithstanding
clauses (ii) and (iv), the Secretary, on application of any processor that
begins processing sugarcane on or after the date of enactment of this clause,
and after a hearing (if requested by the affected sugarcane processors
and growers) and on such notice as the Secretary by regulation may prescribe,
may provide the processor with an allocation that provides a fair, efficient
and equitable distribution of the allocations from the allotment for the
State in which the processor is located.
`(II) PROPORTIONATE SHARE
STATES- In the case of proportionate share States, the Secretary shall
establish proportionate shares in a quantity sufficient to produce the
sugarcane required to satisfy the allocations.
`(III) LIMITATION- The allotment
for a new processor under this clause shall not exceed 50,000 short tons
(raw value).
`(vi) TRANSFER OF OWNERSHIP-
Except as otherwise provided in section 359f(c)(8), if a sugarcane processor
is sold or otherwise transferred to another owner or closed as part of
an affiliated corporate group processing consolidation, the Secretary shall
transfer the allotment allocation for the processor to the purchaser, new
owner, or successor in interest, as applicable, of the processor.'; and
(2) in subparagraph (B)--
(A) in the first sentence,
by striking `The Secretary' and inserting the following:
`(i) IN GENERAL- The Secretary';
(B) in clause (i) (as so
designated)--
(i) by striking `interested
parties' and inserting `the affected sugar beet processors and growers';
and
(ii) by striking `processing
capacity' and all that follows through `allotment allocated.' and inserting
the following: `the marketings of sugar processed from sugar beets of any
or all of the 1996 through 2000 crops, and such other factors as the Secretary
may consider appropriate after consultation with the affected sugar beet
processors and growers.'; and
(C) by adding at the end
the following:
`(ii) NEW PROCESSORS- In
the case of any processor that has started processing sugar beets after
January 1, 1996, the Secretary shall provide the processor with an allocation
that provides a fair, efficient and equitable distribution of the allocations.'.
(e) REASSIGNMENT- Section
359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b))
is amended--
(A) in subparagraph (B),
by striking the `and' after the semicolon;
(B) by redesignating subparagraph
(C) as subparagraph (D);
(C) by inserting after subparagraph
(B) the following:
`(C) if after the reassignments,
the deficit cannot be completely eliminated, the Secretary shall reassign
the estimated quantity of the deficit to the sale of any inventories of
sugar held by the Commodity Credit Corporation; and'; and
(D) in subparagraph (D)
(as so redesignated), by inserting `and sales' after `reassignments'; and
(A) in subparagraph (A),
by striking the `and' after the semicolon;
(B) in subparagraph (B),
by striking `reassign the remainder to imports.' and inserting `use the
estimated quantity of the deficit for the sale of any inventories of sugar
held by the Commodity Credit Corporation; and'; and
(C) by inserting after subparagraph
(B) the following:
`(C) if after the reassignments
and sales, the deficit cannot be completely eliminated, the Secretary shall
reassign the remainder to imports.'.
(f) PRODUCER PROVISIONS-
Section 359f of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff)
is amended--
(A) by striking `Whenever'
and inserting the following:
(B) in the second sentence,
by striking `processor's allocation' and inserting `allocation to the processor';
(C) by striking `Any dispute'
and inserting the following:
`(A) IN GENERAL- Any dispute';
and
(D) by adding at the end
the following:
`(B) PERIOD- The arbitration
shall, to the maximum extent practicable, be--
`(i) commenced not more
than 45 days after the request; and
`(ii) completed not more
than 60 days after the request.';
(2) by redesignating subsection
(b) as subsection (c);
(3) by inserting after subsection
(a) the following:
`(b) SUGAR BEET PROCESSING
FACILITY CLOSURES-
`(1) IN GENERAL- If a sugar
beet processing facility is closed and the sugar beet growers that previously
delivered beets to the facility elect to deliver their beets to another
processing company, the growers may petition the Secretary to modify allocations
under this part to allow the delivery.
`(2) INCREASED ALLOCATION
FOR PROCESSING COMPANY- The Secretary may increase the allocation to the
processing company to which the growers elect to deliver their sugar beets,
with the approval of the processing company, to a level that does not exceed
the processing capacity of the processing company, to accommodate the change
in deliveries.
`(3) DECREASED ALLOCATION
FOR CLOSED COMPANY- The increased allocation shall be deducted from the
allocation to the company that owned the processing facility that has been
closed and the remaining allocation shall be unaffected.
`(4) TIMING- The determinations
of the Secretary on the issues raised by the petition shall be made within
60 days after the filing of the petition.'; and
(4) in subsection (c) (as
so redesignated)--
(A) in paragraph (3)(A),
by striking `the preceding 5 years' and inserting `the 2 highest years
from among the 1999, 2000, and 2001 crop years';
(B) in paragraph (4)(A),
by striking `each' and all that follows through `in effect' and inserting
`the 2 highest of the 1999, 2000, and 2001 crop years'; and
(C) by inserting after paragraph
(7) the following:
`(8) PROCESSING FACILITY
CLOSURES-
`(A) IN GENERAL- If a sugarcane
processing facility subject to this subsection is closed and the sugarcane
growers that delivered sugarcane to the facility prior to closure elect
to deliver their sugarcane to another processing company, the growers may
petition the Secretary to modify allocations under this part to allow the
delivery.
`(B) INCREASED ALLOCATION
FOR PROCESSING COMPANY- The Secretary may increase the allocation to the
processing company to which the growers elect to deliver the sugarcane,
with the approval of the processing company, to a level that does not exceed
the processing capacity of the processing company, to accommodate the change
in deliveries.
`(C) DECREASED ALLOCATION
FOR CLOSED COMPANY- The increased allocation shall be deducted from the
allocation to the company that owned the processing facility that has been
closed and the remaining allocation shall be unaffected.
`(D) TIMING- The determinations
of the Secretary on the issues raised by the petition shall be made within
60 days after the filing of the petition.'.
(g) CONFORMING AMENDMENTS-
(1) Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 359aa
et seq.) is amended by striking the part heading and inserting the following:
`PART VII--FLEXIBLE MARKETING
ALLOTMENTS FOR SUGAR'.
(2) Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938 is amended by
inserting before section 359a (7 U.S.C. 1359aa) the following:
`SEC. 359. DEFINITIONS.
`(1) MAINLAND STATE- The
term `mainland State' means a State other than an offshore State.
`(2) OFFSHORE STATE- The
term `offshore State' means a sugarcane producing State located outside
of the continental United States.
`(3) STATE- Notwithstanding
section 301, the term `State' means--
`(B) the District of Columbia;
and
`(C) the Commonwealth of
Puerto Rico.
`(4) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.'.
(3) Section 359g of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
(A) by striking `359f' each
place it appears and inserting `359f(c)';
(B) in the first sentence
of subsection (b), by striking `3 consecutive' and inserting `5 consecutive';
and
(C) in subsection (c), by
inserting `or adjusted' after `share established'.
(4) Section 359j of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359jj) is amended by striking
subsection (c).
CHAPTER 3--PEANUTS
SEC. 151. PEANUT PROGRAM.
(a) IN GENERAL- Subtitle
D of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7251 et seq.) is amended by adding at the end the following:
`CHAPTER 3--PEANUTS
`SEC. 158A. DEFINITIONS.
`(1) COUNTER-CYCLICAL PAYMENT-
The term `counter-cyclical payment' means a payment made to peanut producers
on a farm under section 158D.
`(2) DIRECT PAYMENT- The
term `direct payment' means a payment made to peanut producers on a farm
under section 158C.
`(3) EFFECTIVE PRICE- The
term `effective price' means the price calculated by the Secretary under
section 158D for peanuts to determine whether counter-cyclical payments
are required to be made under section 158D for a crop year.
`(4) HISTORICAL PEANUT PRODUCERS
ON A FARM- The term `historical peanut producers on a farm' means the peanut
producers on a farm in the United States that produced or were prevented
from planting peanuts during any of the 1998 through 2001 crop years.
`(5) INCOME PROTECTION PRICE-
The term `income protection price' means the price per ton of peanuts used
to determine the payment rate for counter-cyclical payments.
`(6) PAYMENT ACRES- The
term `payment acres' means 85 percent of the peanut acres on a farm, as
established under section 158B, on which direct payments and counter-cyclical
payments are made.
`(7) PEANUT ACRES- The term
`peanut acres' means the number of acres assigned to a particular farm
for historical peanut producers on a farm pursuant to section 158B(b).
`(8) PAYMENT YIELD- The
term `payment yield' means the yield assigned to a farm by historical peanut
producers on the farm pursuant to section 158B(b).
`(9) PEANUT PRODUCER- The
term `peanut producer' means an owner, operator, landlord, tenant, or sharecropper
that--
`(A) shares in the risk
of producing a crop of peanuts in the United States; and
`(B) is entitled to share
in the crop available for marketing from the farm or would have shared
in the crop had the crop been produced.
`SEC. 158B. PAYMENT YIELDS,
PEANUT ACRES, AND PAYMENT ACRES FOR FARMS.
`(a) PAYMENT YIELDS AND
PAYMENT ACRES-
`(A) IN GENERAL- The Secretary
shall determine, for each historical peanut producer, the average yield
for peanuts on all farms of the historical peanut producer for the 1998
through 2001 crop years, excluding any crop year during which the producers
did not produce peanuts.
`(B) ASSIGNED YIELDS- If,
for any of the crop years referred to in subparagraph (A) in which peanuts
were planted on a farm by the historical peanut producer, the historical
peanut producer has satisfied the eligibility criteria established to carry
out section 1102 of the Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public
Law 105-277), the Secretary shall assign to the historical peanut producer
a yield for the farm for the crop year equal to 65 percent of the average
yield for peanuts for the previous 5 crop years.
`(2) ACREAGE AVERAGE- Except
as provided in paragraph (3), the Secretary shall determine, for the historical
peanut producer, the 4-year average of--
`(A) acreage planted to
peanuts on all farms for harvest during the 1998 through 2001 crop years;
and
`(B) any acreage that was
prevented from being planting to peanuts during the crop years because
of drought, flood, or other natural disaster, or other condition beyond
the control of the historical peanut producer, as determined by the Secretary.
`(3) SELECTION BY PRODUCER-
If a county in which a historical peanut producer described in paragraph
(2) is located is declared a disaster area during 1 or more of the 4 crop
years described in paragraph (2), for purposes of determining the 4-year
average acreage for the historical peanut producer, the historical peanut
producer may elect to substitute, for not more than 1 of the crop years
during which a disaster is declared--
`(A) the State average of
acreage actually planted to peanuts; or
`(B) the average of acreage
for the historical peanut producer determined by the Secretary under paragraph
(2).
`(4) TIME FOR DETERMINATIONS;
FACTORS-
`(A) TIMING- The Secretary
shall make the determinations required by this subsection not later than
90 days after the date of enactment of this section.
`(B) FACTORS- In making
the determinations, the Secretary shall take into account changes in the
number and identity of historical peanut producers sharing in the risk
of producing a peanut crop since the 1998 crop year, including providing
a method for the assignment of average acres and average yield to a farm
when a historical peanut producer is no longer living or an entity composed
of historical peanut producers has been dissolved.
`(b) ASSIGNMENT OF YIELD
AND ACRES TO FARMS-
`(1) ASSIGNMENT BY HISTORICAL
PEANUT PRODUCERS- The Secretary shall provide each historical peanut producer
with an opportunity to assign the average peanut yield and average acreage
determined under subsection (a) for the historical peanut producer to cropland
on a farm.
`(2) PAYMENT YIELD- The
average of all of the yields assigned by historical peanut producers to
a farm shall be considered to be the payment yield for the farm for the
purpose of making direct payments and counter-cyclical payments under this
chapter.
`(3) PEANUT ACRES- Subject
to subsection (e), the total number of acres assigned by historical peanut
producers to a farm shall be considered to be the peanut acres for the
farm for the purpose of making direct payments and counter-cyclical payments
under this chapter.
`(c) ELECTION- Not later
than 180 days after the date of enactment of this section, a historical
peanut producer shall notify the Secretary of the assignments described
in subsection (b).
`(d) PAYMENT ACRES- The
payment acres for peanuts on a farm shall be equal to 85 percent of the
peanut acres assigned to the farm.
`(e) PREVENTION OF EXCESS
PEANUT ACRES-
`(1) REQUIRED REDUCTION-
If the total of the peanut acres for a farm, together with the acreage
described in paragraph (3), exceeds the actual cropland acreage of the
farm, the Secretary shall reduce the quantity of peanut acres for the farm
or contract acreage for 1 or more covered commodities for the farm as necessary
so that the total of the peanut acres and acreage described in paragraph
(3) does not exceed the actual cropland acreage of the farm.
`(2) SELECTION OF ACRES-
The Secretary shall give the peanut producers on the farm the opportunity
to select the peanut acres or contract acreage against which the reduction
will be made.
`(3) OTHER ACREAGE- For
purposes of paragraph (1), the Secretary shall include--
`(A) any contract acreage
for the farm under subtitle B;
`(B) any acreage on the
farm enrolled in the conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.); and
`(C) any other acreage on
the farm enrolled in a conservation program for which payments are made
in exchange for not producing an agricultural commodity on the acreage.
`(3) DOUBLE-CROPPED ACREAGE-
In applying paragraph (1), the Secretary shall take into account additional
acreage as a result of an established double-cropping history on a farm,
as determined by the Secretary.
`SEC. 158C. DIRECT PAYMENTS
FOR PEANUTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 fiscal years, the Secretary shall make direct
payments to peanut producers on a farm with peanut acres under section
158B and a payment yield for peanuts under section 158B.
`(b) PAYMENT RATE- The payment
rate used to make direct payments with respect to peanuts for a fiscal
year shall be equal to $0.018 per pound.
`(c) PAYMENT AMOUNT- The
amount of the direct payment to be paid to the peanut producers on a farm
for peanuts for a fiscal year shall be equal to the product obtained by
multiplying--
`(1) the payment rate specified
in subsection (b);
`(2) the payment acres on
the farm; by
`(3) the payment yield for
the farm.
`(1) IN GENERAL- The Secretary
shall make direct payments--
`(A) in the case of the
2002 fiscal year, during the period beginning December 1, 2001, and ending
September 30, 2002; and
`(B) in the case of each
of the 2003 through 2006 fiscal years, not later than September 30 of the
fiscal year.
`(A) IN GENERAL- At the
option of the peanut producers on a farm, the Secretary shall pay 50 percent
of the direct payment for a fiscal year for the producers on the farm on
a date selected by the peanut producers on the farm.
`(B) SELECTED DATE- The
selected date for a fiscal year shall be on or after December 1 of the
fiscal year.
`(C) SUBSEQUENT FISCAL YEARS-
The peanut producers on a farm may change the selected date for a subsequent
fiscal year by providing advance notice to the Secretary.
`(3) REPAYMENT OF ADVANCE
PAYMENTS- If any peanut producer on a farm that receives an advance direct
payment for a fiscal year ceases to be eligible for a direct payment before
the date the direct payment would have been made by the Secretary under
paragraph (1), the peanut producer shall be responsible for repaying the
Secretary the full amount of the advance payment.
`SEC. 158D. COUNTER-CYCLICAL
PAYMENTS FOR PEANUTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 crops of peanuts, the Secretary shall make counter-cyclical
payments with respect to peanuts if the Secretary determines that the effective
price for peanuts is less than the income protection price for peanuts.
`(b) EFFECTIVE PRICE- For
purposes of subsection (a), the effective price for peanuts is equal to
the total of--
`(A) the national average
market price received by peanut producers during the 12-month marketing
year for peanuts, as determined by the Secretary; or
`(B) the national average
loan rate for a marketing assistance loan for peanuts under section 158G
in effect for the 12-month marketing year for peanuts under this chapter;
and
`(2) the payment rate in
effect for peanuts under section 158C for the purpose of making direct
payments with respect to peanuts.
`(c) INCOME PROTECTION PRICE-
For purposes of subsection (a), the income protection price for peanuts
shall be equal to $520 per ton.
`(d) PAYMENT AMOUNT- The
amount of the counter-cyclical payment to be paid to the peanut producers
on a farm for a crop year shall be equal to the product obtained by multiplying--
`(1) the payment rate specified
in subsection (e);
`(2) the payment acres on
the farm; by
`(3) the payment yield for
the farm.
`(e) PAYMENT RATE- The payment
rate used to make counter-cyclical payments with respect to peanuts for
a crop year shall be equal to the difference between--
`(1) the income protection
price for peanuts; and
`(2) the effective price
determined under subsection (b) for peanuts.
`(1) IN GENERAL- The Secretary
shall make counter-cyclical payments to peanut producers on a farm under
this section for a crop of peanuts as soon as practicable after determining
under subsection (a) that the payments are required for the crop year.
`(A) IN GENERAL- At the
option of the Secretary, the peanut producers on a farm may elect to receive
up to 40 percent of the projected counter-cyclical payment to be made under
this section for a crop of peanuts on completion of the first 6 months
of the marketing year for the crop, as determined by the Secretary.
`(B) REPAYMENT- The peanut
producers on a farm shall repay to the Secretary the amount, if any, by
which the payment received by producers on the farm (including any partial
payments) exceeds the counter-cyclical payment the producers on the farm
are eligible for under this section.
`SEC. 158E. PRODUCER AGREEMENTS.
`(a) COMPLIANCE WITH CERTAIN
REQUIREMENTS-
`(1) REQUIREMENTS- Before
the peanut producers on a farm may receive direct payments or counter-cyclical
payments with respect to the farm, the peanut producers on the farm shall
agree during the fiscal year or crop year, respectively, for which the
payments are received, in exchange for the payments--
`(A) to comply with 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.);
`(B) to comply with applicable
wetland conservation requirements under subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);
`(C) to comply with the
planting flexibility requirements of section 158F; and
`(D) to use a quantity of
the land on the farm equal to the peanut acres, for an agricultural or
conserving use, and not for a nonagricultural commercial or industrial
use, as determined by the Secretary.
`(2) COMPLIANCE- The Secretary
may promulgate such regulations as the Secretary considers necessary to
ensure peanut producer compliance with paragraph (1).
`(1) IN GENERAL- The Secretary
shall not require the peanut producers on a farm to repay a direct payment
or counter-cyclical payment if a foreclosure has occurred with respect
to the farm and the Secretary determines that forgiving the repayment is
appropriate to provide fair and equitable treatment.
`(2) COMPLIANCE WITH REQUIREMENTS-
`(A) IN GENERAL- This subsection
shall not void the responsibilities of the peanut producers on a farm under
subsection (a) if the peanut producers on the farm continue or resume operation,
or control, of the farm.
`(B) APPLICABLE REQUIREMENTS-
On the resumption of operation or control over the farm by the peanut producers
on the farm, the requirements of subsection (a) in effect on the date of
the foreclosure shall apply.
`(c) TRANSFER OR CHANGE
OF INTEREST IN FARM-
`(1) TERMINATION- Except
as provided in paragraph (5), a transfer of (or change in) the interest
of the peanut producers on a farm in peanut acres for which direct payments
or counter-cyclical payments are made shall result in the termination of
the payments with respect to the peanut acres, unless the transferee or
owner of the acreage agrees to assume all obligations under subsection
(a).
`(2) EFFECTIVE DATE- The
termination takes effect on the date of the transfer or change.
`(3) TRANSFER OF PAYMENT
BASE AND YIELD- The Secretary shall not impose any restriction on the transfer
of the peanut acres or payment yield of a farm as part of a transfer or
change described in paragraph (1).
`(4) MODIFICATION- At the
request of the transferee or owner, the Secretary may modify the requirements
of subsection (a) if the modifications are consistent with the purposes
of subsection (a), as determined by the Secretary.
`(5) EXCEPTION- If a peanut
producer entitled to a direct payment or counter-cyclical payment dies,
becomes incompetent, or is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with regulations promulgated
by the Secretary.
`(d) ACREAGE REPORTS- As
a condition on the receipt of any benefits under this chapter, the Secretary
shall require the peanut producers on a farm to submit to the Secretary
acreage reports for the farm.
`(e) TENANTS AND SHARECROPPERS-
In carrying out this chapter, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
`(f) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of direct payments and counter-cyclical
payments among the peanut producers on a farm on a fair and equitable basis.
`SEC. 158F. PLANTING FLEXIBILITY.
`(a) PERMITTED CROPS- Subject
to subsection (b), any commodity or crop may be planted on peanut acres
on a farm.
`(b) LIMITATIONS AND EXCEPTIONS
REGARDING CERTAIN COMMODITIES-
`(1) LIMITATIONS- The planting
of the following agricultural commodities shall be prohibited on peanut
acres:
`(B) Vegetables (other than
lentils, mung beans, and dry peas).
`(C) In the case of the
2003 and subsequent crops of an agricultural commodity, wild rice.
`(2) EXCEPTIONS- Paragraph
(1) shall not limit the planting of an agricultural commodity specified
in paragraph (1)--
`(A) in any region in which
there is a history of double-cropping of peanuts with agricultural commodities
specified in paragraph (1), as determined by the Secretary, in which case
the double-cropping shall be permitted;
`(B) on a farm that the
Secretary determines has a history of planting agricultural commodities
specified in paragraph (1) on peanut acres, except that direct payments
and counter-cyclical payments shall be reduced by an acre for each acre
planted to the agricultural commodity; or
`(C) by the peanut producers
on a farm that the Secretary determines has an established planting history
of a specific agricultural commodity specified in paragraph (1), except
that--
`(i) the quantity planted
may not exceed the average annual planting history of the agricultural
commodity by the peanut producers on the farm during the 1996 through 2001
crop years (excluding any crop year in which no plantings were made), as
determined by the Secretary; and
`(ii) direct payments and
counter-cyclical payments shall be reduced by an acre for each acre planted
to the agricultural commodity.
`SEC. 158G. MARKETING ASSISTANCE
LOANS AND LOAN DEFICIENCY PAYMENTS FOR PEANUTS.
`(a) NONRECOURSE LOANS AVAILABLE-
`(1) AVAILABILITY- For each
of the 2002 through 2006 crops of peanuts, the Secretary shall make available
to peanut producers on a farm nonrecourse marketing assistance loans for
peanuts produced on the farm.
`(2) TERMS AND CONDITIONS-
The loans shall be made under terms and conditions that are prescribed
by the Secretary and at the loan rate established under subsection (b).
`(3) ELIGIBLE PRODUCTION-
The producers on a farm shall be eligible for a marketing assistance loan
under this section for any quantity of peanuts produced on the farm.
`(4) TREATMENT OF CERTAIN
COMMINGLED COMMODITIES- In carrying out this section, the Secretary shall
make loans to peanut producers on a farm that would be eligible to obtain
a marketing assistance loan but for the fact the peanuts owned by the peanut
producers on the farm are commingled with other peanuts of other producers
in facilities unlicensed for the storage of agricultural commodities by
the Secretary or a State licensing authority, if the peanut producers on
a farm obtaining the loan agree to immediately redeem the loan collateral
in accordance with section 158E.
`(5) OPTIONS FOR OBTAINING
LOAN- A marketing assistance loan under this subsection, and loan deficiency
payments under subsection (e), may be obtained at the option of the peanut
producers on a farm through--
`(A) a designated marketing
association of peanut producers that is approved by the Secretary;
`(B) the Farm Service Agency;
or
`(C) a loan servicing agent
approved by the Secretary.
`(b) LOAN RATE- The loan
rate for a marketing assistance loan for peanuts under subsection (a) shall
be equal to $400 per ton.
`(1) IN GENERAL- A marketing
assistance loan for peanuts under subsection (a) shall have a term of 9
months beginning on the first day of the first month after the month in
which the loan is made.
`(2) EXTENSIONS PROHIBITED-
The Secretary may not extend the term of a marketing assistance loan for
peanuts under subsection (a).
`(d) REPAYMENT RATE- The
Secretary shall permit peanut producers on a farm to repay a marketing
assistance loan for peanuts under subsection (a) at a rate that is the
lesser of--
`(1) the loan rate established
for peanuts under subsection (b), plus interest (as determined by the Secretary);
or
`(2) a rate that the Secretary
determines will--
`(A) minimize potential
loan forfeitures;
`(B) minimize the accumulation
of stocks of peanuts by the Federal Government;
`(C) minimize the cost incurred
by the Federal Government in storing peanuts; and
`(D) allow peanuts produced
in the United States to be marketed freely and competitively, both domestically
and internationally.
`(e) LOAN DEFICIENCY PAYMENTS-
`(1) AVAILABILITY- The Secretary
may make loan deficiency payments available to the peanut producers on
a farm that, although eligible to obtain a marketing assistance loan for
peanuts under subsection (a), agree to forgo obtaining the loan for the
peanuts in return for payments under this subsection.
`(2) AMOUNT- A loan deficiency
payment under this subsection shall be obtained by multiplying--
`(A) the loan payment rate
determined under paragraph (3) for peanuts; by
`(B) the quantity of the
peanuts produced by the peanut producers on the farm, excluding any quantity
for which the producers on the farm obtain a loan under subsection (a).
`(3) LOAN PAYMENT RATE-
For purposes of this subsection, the loan payment rate shall be the amount
by which--
`(A) the loan rate established
under subsection (b); exceeds
`(B) the rate at which a
loan may be repaid under subsection (d).
`(4) TIME FOR PAYMENT- The
Secretary shall make a payment under this subsection to the peanut producers
on a farm with respect to a quantity of peanuts as of the earlier of--
`(A) the date on which the
peanut producers on the farm marketed or otherwise lost beneficial interest
in the peanuts, as determined by the Secretary; or
`(B) the date the peanut
producers on the farm request the payment.
`(f) COMPLIANCE WITH CONSERVATION
REQUIREMENTS- As a condition of the receipt of a marketing assistance loan
under subsection (a), the peanut producers on a farm shall comply during
the term of the loan with--
`(1) 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
`(2) applicable wetland
conservation requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.).
`(g) REIMBURSABLE AGREEMENTS
AND PAYMENT OF EXPENSES- To the maximum extent practicable, the Secretary
shall implement any reimbursable agreements or provide for the payment
of expenses under this chapter in a manner that is consistent with the
implementation of the agreements or payment of the expenses for other commodities.
`SEC. 158H. QUALITY IMPROVEMENT.
`(a) OFFICIAL INSPECTION-
`(1) MANDATORY INSPECTION-
All peanuts placed under a marketing assistance loan under section 158G
shall be officially inspected and graded by a Federal or State inspector.
`(2) OPTIONAL INSPECTION-
Peanuts not placed under a marketing assistance loan may be graded at the
option of the peanut producers on a farm.
`(b) TERMINATION OF PEANUT
ADMINISTRATIVE COMMITTEE- The Peanut Administrative Committee established
under Marketing Agreement No. 1436, which regulates the quality of domestically
produced peanuts under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural Marketing Agreement
Act of 1937, is terminated.
`(c) ESTABLISHMENT OF PEANUT
STANDARDS BOARD-
`(1) IN GENERAL- The Secretary
shall establish a Peanut Standards Board for the purpose of assisting in
the establishment of quality standards with respect to peanuts.
`(2) COMPOSITION- The Secretary
shall appoint members to the Board that, to the maximum extent practicable,
reflect all regions and segments of the peanut industry.
`(3) DUTIES- The Board shall
assist the Secretary in establishing quality standards for peanuts.
`(d) CROPS- This section
shall apply beginning with the 2002 crop of peanuts.'.
(b) CONFORMING AMENDMENTS-
(1) The chapter heading
of chapter 2 of subtitle D of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. prec. 7271) is amended by striking `PEANUTS AND'.
(2) Section 155 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7271) is repealed.
SEC. 152. TERMINATION OF MARKETING
QUOTAS FOR PEANUTS AND COMPENSATION TO PEANUT QUOTA HOLDERS.
(a) REPEAL OF MARKETING
QUOTAS FOR PEANUTS- Effective beginning with the 2002 crop of peanuts,
part VI of subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1357 et seq.) is repealed.
(b) COMPENSATION OF QUOTA
HOLDERS-
(1) DEFINITIONS- In this
subsection:
(i) IN GENERAL- The term
`peanut quota holder' means a person or entity that owns a farm that--
(I) held a peanut quota
established for the farm for the 2001 crop of peanuts under part VI of
subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1357 et seq.) (as in effect before the amendment made by subsection (a));
(II) if there was not such
a quota established for the farm for the 2001 crop of peanuts, would be
eligible to have such a quota established for the farm for the 2002 crop
of peanuts, in the absence of the amendment made by subsection (a); or
(III) is otherwise a farm
that was eligible for such a quota as of the effective date of the amendments
made by this section.
(ii) SEED OR EXPERIMENTAL
PURPOSES- The Secretary shall apply the definition of `peanut quota holder'
without regard to temporary leases, transfers, or quotas for seed or experimental
purposes.
(B) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
(2) CONTRACTS- The Secretary
shall offer to enter into a contract with peanut quota holders for the
purpose of providing compensation for the lost value of quota as a result
of the repeal of the marketing quota program for peanuts under the amendment
made by subsection (a).
(3) PAYMENT PERIOD- Under
a contract, the Secretary shall make payments to an eligible peanut quota
holder for each of fiscal years 2002 through 2006.
(4) TIME FOR PAYMENT- The
payments required under the contracts shall be provided in 5 equal installments
not later than September 30 of each of fiscal years 2002 through 2006.
(5) PAYMENT AMOUNT- The
amount of the payment for a fiscal year to a peanut quota holder under
a contract shall be equal to the product obtained by multiplying--
(B) the actual farm poundage
quota (excluding any quantity for seed and experimental peanuts) established
for the farm of a peanut quota holder under section 358-1(b) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) (as in effect prior to the
amendment made by subsection (a)) for the 2001 marketing year.
(6) ASSIGNMENT OF PAYMENTS-
(A) IN GENERAL- The provisions
of section 8(g) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(g)), relating to assignment of payments, shall apply to the
payments made to peanut quota holders under the contracts.
(B) NOTICE- The peanut quota
holder making the assignment, or the assignee, shall provide the Secretary
with notice, in such manner as the Secretary may require, of any assignment
made under this subsection.
(c) CONFORMING AMENDMENTS-
(1) ADMINISTRATIVE PROVISIONS-
Section 361 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1361)
is amended by striking `peanuts,'.
(2) ADJUSTMENT OF QUOTAS-
Section 371 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1371)
is amended--
(A) in the first sentence
of subsection (a), by striking `peanuts,'; and
(B) in the first sentence
of subsection (b), by striking `peanuts'.
(3) REPORTS AND RECORDS-
Section 373 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373)
is amended--
(A) in the first sentence
of subsection (a)--
(i) by striking `peanuts,'
each place it appears;
(ii) by inserting `and'
after `from producers,'; and
(iii) by striking `for producers,
all' and all that follows through the period at the end of the sentence
and inserting `for producers.'; and
(B) in subsection (b), by
striking `peanuts,'.
(4) EMINENT DOMAIN- Section
378(c) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1378(c)) is
amended in the first sentence--
(A) by striking `cotton,'
and inserting `cotton and'; and
(B) by striking `and peanuts,'.
(d) CROPS- This section
and the amendments made by this section apply beginning with the 2002 crop
of peanuts.
Subtitle D--Administration
SEC. 161. ADJUSTMENT AUTHORITY
RELATED TO URUGUAY ROUND COMPLIANCE.
Section 161 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7281) is amended
by adding at the end the following:
`(e) ADJUSTMENT AUTHORITY
RELATED TO URUGUAY ROUND COMPLIANCE- If the Secretary determines that expenditures
under subtitles A through D that are subject to the total allowable domestic
support levels under the Uruguay Round Agreements (as defined in section
2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)), as in effect on
the date of enactment of this subsection, will exceed the allowable levels
for any applicable reporting period, the Secretary may make adjustments
in the amount of the expenditures to ensure that the expenditures do not
exceed, but are not less than, the allowable levels.'.
SEC. 162. SUSPENSION OF PERMANENT
PRICE SUPPORT AUTHORITY.
Section 171 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301) is amended--
(1) by striking `2002' each
place it appears and inserting `2006'; and
(2) in subsection (a)(1)--
(A) by striking subparagraph
(E); and
(B) by redesignating subparagraphs
(F) through (I) as subparagraphs (E) through (H), respectively.
SEC. 163. COMMODITY PURCHASES.
Section 191 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7331 et seq.)
is amended to read as follows:
`SEC. 191. COMMODITY PURCHASES.
`(a) IN GENERAL- To purchase
agricultural commodities under this section, the Secretary shall use funds
of the Commodity Credit Corporation in an amount equal to--
`(1) for each of fiscal
years 2002 and 2003, $130,000,000, of which not less than $100,000,000
shall be used for the purchase of specialty crops;
`(2) for fiscal year 2004,
$150,000,000, of which not less than $120,000,000 shall be used for the
purchase of specialty crops;
`(3) for fiscal year 2005,
$170,000,000, of which not less than $140,000,000 shall be used for the
purchase of specialty crops;
`(4) for fiscal year 2006,
$200,000,000, of which not less than $170,000,000 shall be used for the
purchase of specialty crops; and
`(5) for fiscal year 2007,
$0.
`(b) 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.
`(c) PURCHASES BY DEPARTMENT
OF DEFENSE FOR SCHOOL LUNCH PROGRAM- The Secretary shall provide not less
than $50,000,000 for each fiscal year of the funds made available under
subsection (a) to the Secretary of Defense 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)) in a manner prescribed by the Secretary of Agriculture.
`(d) PURCHASES FOR EMERGENCY
FOOD ASSISTANCE PROGRAM- The Secretary shall use not less than $40,000,000
for each fiscal year of the funds made available under subsection (a) to
purchase agricultural commodities for distribution under the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.).'.
SEC. 164. HARD WHITE WHEAT INCENTIVE
PAYMENTS.
Section 193 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 1508) is amended
to read as follows:
`SEC. 193. HARD WHITE WHEAT
INCENTIVE PAYMENTS.
`(a) IN GENERAL- For the
period of crop years 2003 through 2005, the Secretary shall use $40,000,000
of funds of the Commodity Credit Corporation to provide incentive payments
to producers of hard white wheat to ensure that hard white wheat, produced
on a total of not more than 2,000,000 acres, meets minimum quality standards
established by the Secretary.
`(b) APPLICATION- The amounts
payable to producers in the form of payments under this section shall be
determined through the submission of bids by producers in such manner as
the Secretary may prescribe.
`(c) DEMAND FOR WHEAT- To
be eligible to obtain a payment under this section, a producer shall demonstrate
to the Secretary the availability of buyers and end-users for the wheat
that is the covered by the payment.'.
SEC. 165. PAYMENT LIMITATIONS.
Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking paragraphs
(1) through (4) and inserting the following:
`(1) LIMITATION ON DIRECT
AND COUNTER-CYCLICAL PAYMENTS- The total amount of direct payments and
counter-cyclical payments to a person during any fiscal year may not exceed
$100,000, with a separate limitation for--
`(A) all contract commodities;
and
`(2) LIMITATION ON MARKETING
LOAN GAINS AND LOAN DEFICIENCY PAYMENTS- The total amount of the payments
specified in paragraph (3) that a person shall be entitled to receive under
title I of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7201 et seq.) for 1 or more loan commodities during any crop year
may not exceed $150,000, with a separate limitation for--
`(A) all contract commodities;
`(3) DESCRIPTION OF PAYMENTS
SUBJECT TO LIMITATION- The payments referred to in paragraph (2) are the
following:
`(A) Any gain realized by
a producer from repaying a marketing assistance loan under section 131
or 158G(a) of the Federal Agriculture Improvement and Reform Act of 1996
for a crop of any loan commodity or peanuts, respectively, at a lower level
than the original loan rate established for the loan commodity or peanuts
under section 132 or 158G(d) of that Act, respectively.
`(B) Any loan deficiency
payment received for a loan commodity or peanuts under section 135 or 158G(e)
of that Act, respectively.
`(4) DEFINITIONS- In paragraphs
(1) through (3):
`(A) CONTRACT COMMODITY-
The term `contract commodity' has the meaning given the term in section
102 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7202).
`(B) COUNTER-CYCLICAL PAYMENT-
The term `counter-cyclical payment' means a payment made under section
114 or 158D of that Act.
`(C) DIRECT PAYMENT- The
term `direct payment' means a payment made under section 113 or 158C of
that Act.
`(D) LOAN COMMODITY- The
term `loan commodity' has the meaning given the term in section 102 of
that Act.'.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
SEC. 201. CONSERVATION SECURITY
PROGRAM.
Subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by
inserting after chapter 1 the following:
`CHAPTER 2--CONSERVATION
SECURITY AND FARMLAND PROTECTION
`Subchapter A--Conservation
Security Program
`SEC. 1238. DEFINITIONS.
`(1) BASE PAYMENT- The term
`base payment' means the amount paid to an producer under a conservation
security contract that is equal to the total of the amounts described in
clauses (i) and (ii) of subparagraphs (C), (D), or (E) of section 1238C(b)(1),
as appropriate.
`(2) BEGINNING FARMER OR
RANCHER- The term `beginning farmer or rancher' has the meaning provided
under section 343(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1999(a)).
`(3) BONUS AMOUNT- The term
`bonus amount' means the amount paid to a producer under a conservation
security contract that is equal to the total of the amounts described in
clauses (iii) and (iv) of subparagraph (C), and of clause (iii) of subparagraph
(D) or (E), of section 1238C(b)(1), as appropriate.
`(4) CONSERVATION PRACTICE-
The term `conservation practice' means a land-based farming technique that--
`(A) requires planning,
implementation, management, and maintenance; and
`(B) promotes 1 or more
of the purposes described in section 1238A(a).
`(5) CONSERVATION SECURITY
CONTRACT- The term `conservation security contract' means a contract described
in section 1238A(e).
`(6) CONSERVATION SECURITY
PLAN- The term `conservation security plan' means a plan described in section
1238A(c).
`(7) CONSERVATION SECURITY
PROGRAM- The term `conservation security program' means the program established
under section 1238A(a).
`(8) CONTINUOUS SIGNUP-
The term `continuous signup', with respect to land, means land enrolled
in a program described in section 1231(b)(6)(A) on which conservation practices
are carried out.
`(9) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b).
`(10) NUTRIENT MANAGEMENT-
The term `nutrient management' means management of the quantity, source,
placement, form, and timing of the land application of nutrients and other
additions to soil on land enrolled in the conservation security program--
`(A) to achieve or maintain
adequate soil fertility for agricultural production;
`(B) to minimize the potential
for loss of environmental quality, including soil, water, fish and wildlife
habitat, and air and water quality; or
`(C) to reduce energy consumption.
`(11) PRODUCER- The term
`producer' has the meaning given the term in section 102 of the Agricultural
Market Transition Act (7 U.S.C. 7202).
`(12) RESOURCE OF CONCERN-
The term `resource of concern' means a conservation priority of a State
and locality under section 1238A(c)(3).
`(13) RESOURCE-CONSERVING
CROP- The term `resource-conserving crop' means--
`(B) a legume grown for
use as--
`(ii) seed for planting;
or
`(C) a legume-grass mixture;
`(D) a small grain grown
in combination with a grass or legume, whether interseeded or planted in
succession; and
`(E) such other plantings,
including trees and annual grasses, as the Secretary considers appropriate
for a particular area.
`(14) RESOURCE-CONSERVING
CROP ROTATION- The term `resource-conserving crop rotation' means a crop
rotation that--
`(A) includes at least 1
resource-conserving crop;
`(C) improves soil fertility
and tilth; and
`(D) interrupts pest cycles.
`(15) RESOURCE MANAGEMENT
SYSTEM- The term `resource management system' means a system of conservation
practices and management relating to land or water use that is designed
to prevent resource degradation and permit sustained use of land and water,
as defined in accordance with the technical guide of the Natural Resources
Conservation Service.
`(16) SECRETARY- The term
`Secretary' means the Secretary of Agriculture, acting through the Natural
Resources Conservation Service.
`(17) TIER I CONSERVATION
PRACTICE- The term `Tier I conservation practice' means a conservation
practice described in section 1238A(d)(4)(A)(ii).
`(18) TIER I CONSERVATION
SECURITY CONTRACT- The term `Tier I conservation security contract' means
a contract described in section 1238A(d)(4)(A).
`(19) TIER II CONSERVATION
PRACTICE- The term `Tier II conservation practice' means a conservation
practice described in section 1238A(d)(4)(B)(ii).
`(20) TIER II CONSERVATION
SECURITY CONTRACT- The term `Tier II conservation security contract' means
a contract described in section 1238A(d)(4)(B).
`(21) TIER III CONSERVATION
PRACTICE- The term `Tier III conservation practice' means a conservation
practice described in section 1238A(d)(4)(C)(ii).
`(22) TIER III CONSERVATION
SECURITY CONTRACT- The term `Tier III conservation security contract' means
a contract described in section 1238A(d)(4)(C).
`SEC. 1238A. CONSERVATION SECURITY
PROGRAM.
`(a) IN GENERAL- For each
of fiscal years 2003 through 2006, the Secretary shall establish a conservation
security program to assist owners and operators of agricultural operations
to promote, as is applicable for each operation--
`(1) conservation of soil,
water, energy, and other related resources;
`(2) soil quality protection
and improvement;
`(3) water quality protection
and improvement;
`(4) air quality protection
and improvement;
`(5) soil, plant, or animal
health and well-being;
`(6) diversity of flora
and fauna;
`(7) on-farm conservation
and regeneration of biological resources, including plant and animal germplasm;
`(8) wetland restoration,
conservation, and enhancement;
`(9) wildlife habitat management,
with special emphasis on species identified by any natural heritage program
of the applicable State;
`(10) reduction of greenhouse
gas emissions and enhancement of carbon sequestration;
`(11) environmentally sound
management of invasive species;
`(12) enhancement of conservation
technology and resource management practices approved by the Secretary;
or
`(13) any similar conservation
purpose (as determined by the Secretary).
`(1) ELIGIBLE OWNERS AND
OPERATORS- To be eligible to participate in the conservation security program
(other than to receive technical assistance under section 1238C(g) for
the development of conservation security contracts), a producer shall--
`(A) develop and submit
to the Secretary, and obtain the approval of the Secretary of, a conservation
security plan that meets the requirements of subsection (c)(1); and
`(B) enter into a conservation
security contract with the Secretary to carry out the conservation security
plan.
`(A) IN GENERAL- Except
as provided in subparagraph (C)(iii), private agricultural land (including
cropland, grassland, prairie land, pasture land, and rangeland) and land
under the jurisdiction of an Indian tribe shall be eligible for enrollment
in the conservation security program.
`(B) FORESTED LAND- Private
forested land shall be eligible for enrollment in the conservation security
program if the forested land is part of the agricultural land described
in subparagraph (A), including land that is used for--
`(v) silvopasture systems;
and
`(vi) such other integrated
agroforestry uses as the Secretary may determine to be appropriate.
`(i) CONSERVATION RESERVE
PROGRAM- Land enrolled in the conservation reserve program under subchapter
B of chapter 1 shall not be eligible for enrollment in the conservation
security program except for land described in section 1231(b)(6).
`(ii) WETLANDS RESERVE PROGRAM-
Land enrolled in the wetlands reserve program established under subchapter
C of chapter 1 shall not be eligible for enrollment in the conservation
security program.
`(iii) CONVERSION TO CROPLAND-
Land that is used for crop production after the date of enactment of this
subchapter that had not been in crop production for at least 3 of the 10
years preceding that date (except for land enrolled in the conservation
reserve program under subchapter B of chapter 1) shall not be eligible
for enrollment in the conservation security program.
`(3) SUSTAINABLE ECONOMIC
USES- The Secretary shall permit a producer to implement, with respect
to eligible land covered by a conservation security plan, sustainable economic
uses (including Tier II conservation practices) that--
`(A) maintain the agricultural
nature of the land; and
`(B) are consistent with
the natural resource and environmental benefits of the conservation security
plan.
`(c) CONSERVATION SECURITY
PLANS-
`(1) IN GENERAL- A conservation
security plan shall--
`(A) identify the resources
and designated land to be conserved under the conservation security plan;
`(i) the tier of conservation
security contracts, and the particular conservation practices, to be implemented,
maintained, or improved, in accordance with subsection (d) on the land
covered by the conservation security contract for the specified term; and
`(ii) as appropriate for
the land covered by the conservation security contract, at least, the minimum
number and scope of conservation practices described in clause (i) that
are required to be carried out on the land before the producer is eligible
to receive--
`(C) contain a schedule
for the implementation, maintenance, or improvement of the conservation
practices described in the conservation security plan during the term of
the conservation security contract;
`(D) meet the highly erodible
land and wetland conservation requirements of subtitles B and C; and
`(E) identify, and authorize
the implementation of, sustainable economic uses described in subsection
(b)(3).
`(2) COMPREHENSIVE PLANNING-
The Secretary shall encourage owners and operators that enter into conservation
security contracts--
`(A) to undertake a comprehensive
examination of the opportunities for conserving natural resources and improving
the profitability, environmental health, and quality of life in relation
to their entire agricultural operation;
`(B) to develop a long-term
strategy for implementing, monitoring, and evaluating conservation practices
and environmental results in the entire agricultural operation;
`(C) to participate in other
Federal, State, local, or private conservation programs;
`(D) to maintain the agricultural
integrity of the land; and
`(E) to adopt innovative
conservation technologies and management practices.
`(3) STATE AND LOCAL CONSERVATION
PRIORITIES-
`(A) IN GENERAL- To the
maximum extent practicable and in a manner consistent with the conservation
security program, each conservation security plan shall address, at least,
the conservation priorities of the State and locality in which the agricultural
operation is located.
`(B) ADMINISTRATION- The
conservation priorities of the State and locality in which the agricultural
operation is located shall be--
`(i) determined by the State
conservationist, in consultation with the State technical committee established
under subtitle G and the local subcommittee of the State technical committee;
and
`(ii) approved by the Secretary.
`(A) IN GENERAL- During
the development of a conservation security plan by a producer, at the request
of the producer, the Secretary shall supply to the producer a statement
of the minimum number, type, and scope of conservation practices described
in paragraph (1)(B)(ii).
`(B) APPROVAL FOR BASE PAYMENTS-
If a conservation security plan submitted to the Secretary contains, at
least, the conservation practices referred to in paragraph (1)(B)(ii)--
`(i) the Secretary shall
approve the conservation security plan; and
`(ii) the producer of the
conservation security plan, on approval of and compliance with the plan,
as determined by the Secretary, shall be eligible to receive a base payment.
`(C) APPROVAL FOR BONUS
AMOUNTS- If a conservation security plan submitted to the Secretary contains
a proposal for the implementation, maintenance, or improvement of a conservation
practice that qualifies for a bonus amount under section 1238C(b)(1)(C)(iii),
the Secretary may increase the base payment of the producer by such bonus
amount as the Secretary determines is appropriate.
`(d) CONSERVATION CONTRACTS
AND PRACTICES-
`(A) ESTABLISHMENT OF TIERS-
The Secretary shall establish 3 tiers of conservation contracts under which
a payment under this subchapter may be received.
`(B) ELIGIBLE CONSERVATION
PRACTICES-
`(i) IN GENERAL- The Secretary
shall make eligible for payment under a conservation security contract
land management, vegetative, and structural practices that--
`(I) are necessary to achieve
the purposes of the conservation security plan; and
`(II) primarily provide
for, and have as a primary purpose, resource protection and environmental
improvement.
`(I) IN GENERAL- Subject
to subclause (II), in determining the eligibility of a practice described
in clause (i), the Secretary shall require, to the maximum extent practicable,
the lowest cost alternatives be used to fulfill the purposes of the conservation
security plan, as determined by the Secretary.
`(II) INNOVATIVE TECHNOLOGIES-
Subclause (I) shall not apply, to the maximum extent practicable, to the
adoption of innovative technologies.
`(2) ON-FARM RESEARCH AND
DEMONSTRATION- With respect to land enrolled in the conservation security
program that will be maintained using a Tier II conservation practice or
a Tier III conservation practice, the Secretary may approve a conservation
security plan that includes on-farm conservation research and demonstration
activities, including--
`(A) total farm planning;
`(B) total resource management;
`(C) integrated farming
systems;
`(D) germplasm conservation
and regeneration;
`(E) greenhouse gas reduction
and carbon sequestration;
`(F) agroecological restoration
and wildlife habitat restoration;
`(H) invasive species control;
`(I) energy conservation
and management;
`(J) farm and environmental
results monitoring and evaluation; or
`(K) participation in research
projects relating to water conservation and management through--
`(i) recycling or reuse
of water; or
`(ii) more efficient irrigation
of farmland.
`(3) USE OF HANDBOOK AND
GUIDES-
`(A) IN GENERAL- In determining
eligible conservation practices under the conservation security program,
the Secretary shall use the National Handbook of Conservation Practices
of the Natural Resources Conservation Service.
`(B) CONSERVATION PRACTICE
STANDARDS- To the maximum extent practicable, the Secretary shall establish
guidance standards for implementation of eligible conservation practices
that shall include measurable goals for enhancing and preventing degradation
of resources.
`(i) IN GENERAL- After providing
notice and an opportunity for public participation, the Secretary shall
make such adjustments to the National Handbook of Conservation Practices,
and the field office technical guides, of the Natural Resources Conservation
Service as are necessary to carry out this chapter.
`(ii) EFFECT ON PLAN- If
the Secretary makes an adjustment to a practice under clause (i), the Secretary
may require an adjustment to a conservation security plan in effect as
of the date of the adjustment if the Secretary determines that the plan,
without the adjustment, would significantly interfere with achieving the
purposes of the conservation security program.
`(i) IN GENERAL- Under any
of the 3 tiers of conservation practices established under paragraph (4),
the Secretary may approve requests by a producer for pilot testing of new
technologies and innovative conservation practices and systems.
`(ii) INCORPORATION INTO
STANDARDS-
`(I) IN GENERAL- After evaluation
by the Secretary and provision of notice and an opportunity for public
participation, the Secretary may, as expeditiously as practicable, approve
new technologies and innovative conservation practices and systems.
`(II) INCORPORATION- If
the Secretary approves a new technology or innovative conservation practice
under subclause (I), the Secretary shall, as expeditiously as practicable,
incorporate the technology or practice into the standards for implementation
of conservation practices established under paragraph (3).
`(4) TIERS- Subject to paragraph
(5), to carry out this subsection, the Secretary shall establish the following
3 tiers of conservation contracts:
`(A) TIER I CONSERVATION
CONTRACTS-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program under
a Tier I conservation security contract shall be maintained using Tier
I conservation practices and shall, at a minimum--
`(I) if applicable, address
at least 1 resource of concern to the particular agricultural operation;
`(II) apply to the total
agricultural operation or to a particular unit of the agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are implemented after the date on which the conservation
security contract is entered into; and
`(IV) meet applicable standards
for implementation of conservation practices established under paragraph
(3).
`(ii) CONSERVATION PRACTICES-
Tier I conservation practices shall consist of, as appropriate for the
agricultural operation of a producer, 1 or more of the following basic
conservation activities:
`(I) Soil conservation,
quality, and residue management.
`(II) Invasive species management.
`(III) Fish and wildlife
habitat management, with special emphasis on species identified by any
natural heritage program of the applicable State or the appropriate State
agency.
`(IV) Fish and wildlife
conservation and enhancement.
`(V) Air quality management.
`(VI) Energy conservation
measures.
`(VII) Biological resource
conservation and regeneration.
`(VIII) Animal health management.
`(IX) Plant and animal germplasm
conservation, evaluation, and development.
`(XIV) Nutrient management.
`(XV) Integrated pest management.
`(XVI) Irrigation, water
conservation, and water quality management.
`(XVII) Grazing pasture
and rangeland management.
`(XVIII) Any other conservation
practice that the Secretary determines to be appropriate and comparable
to other conservation practices described in this clause.
`(iii) TIER II CONSERVATION
CONTRACTS- A conservation security plan for land enrolled in the conservation
security program that will be maintained using Tier I conservation contracts
may include Tier II conservation practices.
`(B) TIER II CONSERVATION
PRACTICES-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program under
a Tier II conservation security contract shall be maintained using Tier
II conservation practices and shall, at a minimum--
`(I) address at least 1
resource of concern, as specified in the conservation security plan covering
the total agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are implemented after the date on which the conservation
security contract is entered into; and
`(III) meet applicable resource
management system criteria for 1 or more resources of concern of the agricultural
operation, as specified in the conservation security contract.
`(ii) CONSERVATION PRACTICES-
Tier II conservation practices shall consist of, as appropriate for the
agricultural operation of a producer, any of the Tier I conservation practices
and 1 or more of the following land use adjustment or protection practices:
`(I) Resource-conserving
crop rotations.
`(II) Controlled, rotational
grazing.
`(III) Conversion of portions
of cropland from a soil-depleting use to a soil-conserving use, including
production of cover crops.
`(IV) Partial field conservation
practices (including windbreaks, grass waterways, shelter belts, filter
strips, riparian buffers, wetland buffers, contour buffer strips, living
snow fences, crosswind trap strips, field borders, grass terraces, wildlife
corridors, and critical area planting appropriate to the agricultural operation).
`(V) Fish and wildlife habitat
conservation and restoration.
`(VI) Native grassland and
prairie protection and restoration.
`(VII) Wetland protection
and restoration.
`(VIII) Agroforestry practices
and systems.
`(IX) Any other conservation
practice involving modification of the use of land that the Secretary determines
to be appropriate and comparable to other conservation practices described
in this clause.
`(C) TIER III CONSERVATION
CONTRACTS-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program under
a Tier III conservation security contract shall be maintained using Tier
III conservation contracts and shall, at a minimum--
`(I) address all applicable
resources of concern in the total agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are implemented after the date on which the conservation
security contract is entered into; and
`(III) meet applicable resource
management system criteria for 1 or more resources of concern of the agricultural
operation, as specified in the conservation security contract.
`(ii) CONSERVATION PRACTICES-
Tier III conservation practices shall consist of, as appropriate for the
agricultural operation of a producer (in addition to appropriate Tier I
conservation practices and Tier II conservation practices), development,
implementation, and maintenance of a conservation security plan that, over
the term of the conservation security contract--
`(I) integrates all necessary
conservation practices to foster environmental enhancement and the long-term
sustainability of the natural resource base of an agricultural operation;
and
`(II) improves profitability
and sustainability associated with the agricultural operation.
`(5) MINIMUM REQUIREMENTS-
The minimum requirements for each tier of conservation practices described
in paragraph (4) shall be--
`(i) determined by the State
conservationist, in consultation with the State technical committee established
under subtitle G and the local subcommittee of the State technical committee;
and
`(ii) approved by the Secretary.
`(e) CONSERVATION SECURITY
CONTRACTS-
`(A) IN GENERAL- On approval
of a conservation security plan of a producer, the Secretary shall enter
into a conservation security contract with the producer to enroll the land
covered by the conservation security plan in the conservation security
program.
`(B) REQUIRED COMPONENTS-
A conservation security contract shall specifically describe the practices
that are required under subsection (c)(1)(B).
`(2) TERM- Subject to paragraphs
(3) and (4)--
`(A) a conservation security
contract for land enrolled in the conservation security program of a producer
that will be maintained using 1 or more Tier I conservation contracts shall
have a term of 5 years; and
`(B) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using a Tier II conservation contract or Tier III conservation
contract shall have a 5-year to 10-year term, as determined by the producer.
`(A) OPTIONAL MODIFICATIONS-
`(i) IN GENERAL- An owner
or operator may apply to the Secretary to modify the conservation security
plan to effectuate the purposes of the conservation security program.
`(ii) APPROVAL BY THE SECRETARY-
To be effective, any modification under clause (i)--
`(I) shall be approved by
the Secretary; and
`(II) shall authorize the
Secretary to redetermine, if necessary, the amount and timing of the payments
under the conservation security contract and subsections (a) and (b) of
section 1238C.
`(B) OTHER MODIFICATIONS-
`(i) IN GENERAL- The Secretary
may, in writing, require a producer to modify a conservation security contract
before the expiration of the conservation security contract if--
`(I) the Secretary determines
that a change made to the type, size, management, or other aspect of the
agricultural operation of the producer would, without the modification
of the contract, significantly interfere with achieving the purposes of
the conservation security program; or
`(II) the Secretary makes
a change to the National Handbook of Conservation Practices of the Natural
Resource Conservation Service under subsection (d)(3)(C).
`(ii) PAYMENTS- The Secretary
may adjust the amount and timing of the payment schedule under the conservation
security contract to reflect any modifications made under this subparagraph.
`(iii) DEADLINE- The Secretary
may terminate a conservation security contract if a modification required
under this subparagraph is not submitted to the Secretary in the form of
an amended conservation security contract by the date that is 90 days after
the date on which the Secretary issues a written request for the modification.
`(iv) TERMINATION- a producer
that is required to modify a conservation security contract under this
subparagraph may, in lieu of modifying the contract--
`(I) terminate the conservation
security contract; and
`(II) retain payments received
under the conservation security contract, if the producer fully complied
with the terms and conditions of the conservation security contract before
termination of the contract.
`(A) IN GENERAL- At the
option of a producer, the conservation security contract of the producer
may be renewed, for a term described in subparagraph (B), if--
`(i) the producer agrees
to any modification of the applicable conservation security contract that
the Secretary determines to be necessary to achieve the purposes of the
conservation security program;
`(ii) the Secretary determines
that the producer has complied with the terms and conditions of the conservation
security contract, including the conservation security plan; and
`(iii) in the case of a
Tier I conservation security contract, the producer agrees to increase
the conservation practices on land enrolled in the conservation security
program by--
`(I) adopting new conservation
practices; or
`(II) expanding existing
practices to meet the resource management systems criteria.
`(B) TERMS OF RENEWAL- Under
subparagraph (A)--
`(i) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using Tier I conservation contracts may be renewed for 5-year
terms;
`(ii) in the case of a Tier
II conservation security contract or a Tier III conservation security contract,
the contract shall be renewed for 5-year to 10-year terms, at the option
of the producer; and
`(iii) participation in
the conservation security program prior to the renewal of the conservation
security contract shall not bar renewal more than once.
`(f) NONCOMPLIANCE DUE TO
CIRCUMSTANCES BEYOND THE CONTROL OF PRODUCERS- The Secretary shall include
in the conservation security contract a provision, and may modify a conservation
security contract under subsection (e)(3)(B), to ensure that a producer
shall not be considered in violation of a conservation security contract
for failure to comply with the conservation security contract due to circumstances
beyond the control of the producer, including a disaster or related condition,
as determined by the Secretary.
`SEC. 1238B. DUTIES OF PRODUCERS.
`Under a conservation security
contract, a producer shall agree, during the term of the conservation security
contract--
`(1) to implement the applicable
conservation security plan approved by the Secretary;
`(2) to maintain, and make
available to the Secretary at such times as the Secretary may request,
appropriate records showing the effective and timely implementation of
the conservation security plan;
`(3) not to engage in any
activity that would interfere with the purposes of the conservation security
plan; and
`(4) on the violation of
a term or condition of the conservation security contract--
`(A) if the Secretary determines
that the violation warrants termination of the conservation security contract--
`(i) to forfeit all rights
to receive payments under the conservation security contract; and
`(ii) to refund to the Secretary
all or a portion of the payments received by the producer under the conservation
security contract, including any advance payment and interest on the payments,
as determined by the Secretary; or
`(B) if the Secretary determines
that the violation does not warrant termination of the conservation security
contract, to refund to the Secretary, or accept adjustments to, the payments
provided to the producer, as the Secretary determines to be appropriate.
`SEC. 1238C. DUTIES OF THE SECRETARY.
`(a) ADVANCE PAYMENT- At
the time at which a producer enters into a conservation security contract,
the Secretary shall, at the option of the producer, make an advance payment
to the producer in an amount not to exceed--
`(1) in the case of a Tier
I conservation security contract, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary;
`(2) in the case of a Tier
II conservation security contract, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary;
and
`(3) in the case of a Tier
III conservation security contract, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary.
`(1) CRITERIA FOR DETERMINING
AMOUNT OF PAYMENTS-
`(A) BASE RATE- In this
paragraph, the term `base rate' means the average county rental rate for
the specific land use during the 2001 crop year, or another appropriate
average county rate for the 2001 crop year, that ensures regional equity,
as determined by the Secretary.
`(B) PAYMENTS- A payment
for a conservation practice under this paragraph shall be determined in
accordance with subparagraphs (C) through (F).
`(C) TIER I CONSERVATION
CONTRACTS- The payment for a Tier I conservation security contract shall
be comprised of the total of the following amounts:
`(i) An amount equal to
6 percent of the base rate for land covered by the contract.
`(ii) An amount equal to
the following costs of practices covered by the conservation security contract,
based on the average county costs for such practices for the 2001 crop
year, as determined by the Secretary:
`(I) 100 percent of the
cost of--
`(aa) the adoption of
new management practices; and
`(bb) the maintenance
of new and existing management practices.
`(II) 100 percent of the
cost of maintenance of existing land-based structural practices approved
by the Secretary.
`(III)(aa) 75 percent (or,
in the case of a limited resource producer (as determined by the Secretary)
or a beginning farmer or rancher, 90 percent) of the cost of adoption of
new land-based structural practices; or
`(bb) 75 percent (or, in
the case of a limited resource producer (as determined by the Secretary)
or a beginning farmer or rancher, 90 percent) of the cost of the adoption
of a structural practice for which a similar structural practice under
the environmental quality incentives program established under chapter
4 would require maintenance, if the producer agrees to provide, without
reimbursement, substantially equivalent maintenance.
`(iii) A bonus amount determined
by the Secretary for implementing or adopting 1 or more of the following
practices:
`(I) A practice adopted
or maintained that maximizes the purposes of the conservation security
program beyond the minimum requirements of the practices adopted or maintained.
`(II) A practice adopted
or maintained to address eligible resource and conservation concerns beyond
those identified as State or local conservation priorities.
`(III) A practice adopted
or maintained to address national priority concerns, as determined by the
Secretary.
`(IV) Participation by the
producer in a conservation research, demonstration, or pilot project.
`(V) Participation by the
producer in a watershed or regional resource conservation plan that involves
at least 75 percent of producers in a targeted area.
`(VI) Recordkeeping, monitoring,
and evaluation carried out by the producer that furthers the purposes of
the conservation security program.
`(iv) A bonus amount determined
by the Secretary that reflects the status of a producer as a beginning
farmer or rancher.
`(D) TIER II CONSERVATION
CONTRACTS- The payment for a Tier II conservation security contract shall
be comprised of the total of the following amounts:
`(i) An amount equal to
11 percent of the base rate for land covered by the conservation security
contract.
`(ii) An amount equal to
the cost of practices covered by the conservation security contract, based
on the average county costs for practices for the 2001 crop year, described
in subparagraph (C)(ii).
`(iii) A bonus amount determined
by the Secretary in accordance with clauses (iii) and (iv) of subparagraph
(C), except that the bonus amount under this clause may include any amount
for the adoption or maintenance by the producer of any practice that exceeds
resource management system standards.
`(E) TIER III CONSERVATION
CONTRACTS- The payment for a Tier III conservation security contract shall
be comprised of the total of the following amounts:
`(i) An amount equal to
20 percent of the base rate for land covered by the conservation security
contract.
`(ii) An amount equal to
the cost of practices covered by the conservation security contract, based
on the average county costs for practices for the 2001 crop year, described
in subparagraph (C)(ii).
`(iii) A bonus amount determined
by the Secretary in accordance with subparagraph (D)(iii).
`(F) EXCLUSION OF COSTS
FOR PURCHASE OR MAINTENANCE OF EQUIPMENT OR NON-LAND BASED STRUCTURES-
A payment under this subchapter shall not include any amount for the purchase
or maintenance of equipment or a non-land based structure.
`(2) TIME OF PAYMENT- The
Secretary shall provide payments under a conservation security contract
as soon as practicable after October 1 of each fiscal year.
`(3) LIMITATION ON PAYMENTS-
`(A) IN GENERAL- Subject
to paragraphs (1), (2), (4), and (5), the Secretary shall, in amounts and
for a term specified in a conservation security contract and taking into
account any advance payments, make an annual payment, directly or indirectly,
to the individual or entity covered by the conservation security contract
in an amount not to exceed--
`(i) in the case of a Tier
I conservation security contract, $20,000;
`(ii) in the case of a Tier
II conservation security contract, $35,000; or
`(iii) in the case of a
Tier III conservation security contract, $50,000.
`(B) LIMITATION ON NONBONUS
PAYMENTS- In applying the payment limitation under each of clauses (i),
(ii), and (iii) of subparagraph (A), an individual or entity may not receive,
directly or indirectly, payments described in clauses (i) and (ii) of paragraph
(1)(C), (1)(D), or (1)(E), as appropriate, in an amount that exceeds 75
percent of the applicable payment limitation.
`(C) OTHER USDA PAYMENTS-
If a producer has the same practices on the same land enrolled in the conservation
security program and 1 or more other conservation programs administered
by the Secretary, the Secretary shall include all payments from the conservation
security program and the other conservation programs, other than payments
for conservation easements, in applying the annual payment limitations
under this paragraph.
`(i) IN GENERAL- A payment
described in clause (ii) shall not be considered an annual payment for
purposes of the annual payment limitations under this paragraph.
`(ii) PAYMENT- A payment
referred to in clause (i) is a payment that--
`(I) is for the same practice
on the same land enrolled in the conservation security program; and
`(II) is received from a
Federal program that is not administered by the Secretary, or that is administered
by any State, local, or private agricultural agency or organization.
`(E) COMMENSURATE SHARE-
To be eligible to receive a payment under this chapter, an individual or
entity shall make contributions (including contributions of land, labor,
management, equipment, or capital) to the operation of the farm that are
at least commensurate with the share of the proceeds of the operation of
the individual or entity.
`(4) LAND ENROLLED IN OTHER
CONSERVATION PROGRAMS- Notwithstanding any other provision of law, if a
producer has land enrolled in another conservation program administered
by the Secretary and has applied to enroll the same land in the conservation
security program, the producer may elect to--
`(A) convert the contract
under the other conservation program to a conservation security contract,
without penalty, except that this subparagraph shall not apply to a contract
entered into under--
`(i) the conservation reserve
program under subchapter B of chapter 1; or
`(ii) the wetlands reserve
program under subchapter C of chapter 1; or
`(B) have each annual payment
to the producer under this subsection reduced to reflect payment for practices
the producer receives under the other conservation program, except that
the annual payment under this subsection shall not be reduced by the amount
of any incentive received under a program referred to in section 1231(b)(6)
for qualified practices that enhance or extend the conservation benefit
achieved under the other conservation program.
`(5) WASTE STORAGE OR TREATMENT
FACILITIES- A payment to a producer under this subchapter shall not be
provided for the purpose of construction or maintenance of animal waste
storage or treatment facilities or associated waste transport or transfer
devices for animal feeding operations.
`(c) MINIMUM PRACTICE REQUIREMENT-
In determining a payment under subsection (a) or (b) for an owner, operator,
or producer that receives a payment under another program administered
by the Secretary that is contingent on complying with requirements under
subtitle B or C of title XII of the Food Security Act of 1985 (16 U.S.C.
3811 et seq.) relating to the use of highly erodible land or wetland, a
payment under this chapter for 1 or more practices on land subject to those
requirements shall be for practices that exceed minimum requirements for
the owner, operator, or producer under those subtitles, as determined by
the Secretary.
`(1) IN GENERAL- The Secretary
shall promulgate regulations that--
`(A) provide for adequate
safeguards to protect the interests of tenants and sharecroppers, including
provision for sharing payments, on a fair and equitable basis; and
`(B) prescribe such other
rules as the Secretary determines to be necessary to ensure a fair and
reasonable application of the limitations established under subsections
(a) and (b).
`(2) PENALTIES FOR SCHEMES
OR DEVICES-
`(A) IN GENERAL- If the
Secretary determines that an individual or entity has adopted a scheme
or device to evade, or that has the purpose of evading, the regulations
promulgated under paragraph (1), the individual or entity shall be ineligible
to participate in the conservation security program for--
`(i) the year for which
the scheme or device was adopted; and
`(ii) each of the following
5 years.
`(B) FRAUD- If the Secretary
determines that fraud was committed in connection with the scheme or device,
the individual or entity shall be ineligible to participate in the conservation
security program for--
`(i) the year for which
the scheme or device was adopted; and
`(ii) each of the following
10 years.
`(1) IN GENERAL- Subject
to section 1238B, the Secretary shall allow a producer to terminate the
conservation security contract.
`(2) PAYMENTS- the producer
may retain any or all payments received under a terminated conservation
security contract if--
`(A) the producer is in
full compliance with the terms and conditions (including any maintenance
requirements) of the conservation security contract as of the date of the
termination; and
`(B) the Secretary determines
that termination of the contract will not defeat the purposes of the conservation
security plan of the producer.
`(f) TRANSFER OR CHANGE
OF INTEREST IN LAND SUBJECT TO CONSERVATION SECURITY CONTRACT-
`(1) IN GENERAL- Except
as provided in paragraph (2), the transfer, or change in the interest,
of a producer in land subject to a conservation security contract shall
result in the termination of the conservation security contract.
`(2) TRANSFER OF DUTIES
AND RIGHTS- Paragraph (1) shall not apply if, not later than 60 days after
the date of the transfer or change in the interest in land, the transferee
of the land provides written notice to the Secretary that all duties and
rights under the conservation security contract have been transferred to
the transferee.
`(g) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- For each
of fiscal years 2003 through 2006, the Secretary shall provide technical
assistance to producers for the development and implementation of conservation
security contracts, in an amount not to exceed 20 percent of amounts expended
for the fiscal year.
`(2) COORDINATION BY THE
SECRETARY- The Secretary shall provide overall technical coordination and
leadership for the conservation security program, including final approval
of all conservation security plans.
`(h) CONSERVATION SECURITY
PILOT PROGRAM-
`(1) IN GENERAL- Effective
October 1, 2004, the Secretary, in cooperation with appropriate State agencies,
may establish a pilot program to demonstrate and evaluate the implementation
of a conservation security program by a State described in paragraph (2).
`(2) ELIGIBLE STATE- The
State referred to in paragraph (1) shall be a State selected by the Secretary--
`(A) in consultation with--
`(i) the Committee on Agriculture
of the House of Representatives; and
`(ii) the Committee on Agriculture,
Nutrition, and Forestry of the Senate; and
`(B) after taking into consideration--
`(i) the percentage of private
land in agricultural production in the State; and
`(ii) infrastructure in
the State that is available to implement the pilot program under paragraph
(1).'.
SEC. 202. FUNDING.
Section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) is amended by adding at the end the
following:
`(c) CONSERVATION SECURITY
PROGRAM- Of the funds of the Commodity Credit Corporation, the Corporation
shall make available for each of fiscal years 2002 through 2006 such sums
as are necessary to carry out subchapter A of chapter 2 (including the
provision of technical assistance).'.
SEC. 203. PARTNERSHIPS AND COOPERATION.
Section 1243 of the Food
Security Act of 1985 (16 U.S.C. 3843) is amended by adding at the end the
following:
`(f) PARTNERSHIPS AND COOPERATION-
`(1) IN GENERAL- In carrying
out any program under subtitle D, the Secretary may designate special projects,
as recommended by the State Conservationist, after consultation with the
State technical committee, to enhance technical and financial assistance
provided to owners, operators, and producers to address environmental issues
affected by agricultural production with respect to--
`(A) meeting the purposes
of--
`(i) the Federal Water Pollution
Control Act (33 U.S.C. 1251 et seq.) or comparable State laws in impaired
or threatened watersheds;
`(ii) the Safe Drinking
Water Act (42 U.S.C. 300f et seq.) or comparable State laws in watersheds
providing water for drinking water supplies; or
`(iii) the Clean Air Act
(42 U.S.C. 7401 et seq.) or comparable State laws; or
`(B) watersheds of special
significance or other geographic areas of environmental sensitivity, such
as wetland, including State or multi-State projects--
`(i) to facilitate surface
and ground water conservation;
`(ii) to protect water quality;
`(iii) to protect endangered
or threatened species or habitat, such as conservation corridors;
`(iv) to improve methods
of irrigation;
`(v) to convert acreage
from irrigated production; or
`(vi) to reduce nutrient
loads of watersheds.'.
`(2) INCENTIVES- To realize
the purposes of the special projects under paragraph (1), the Secretary
may provide incentives to owners, operators, and producers participating
in the special projects to encourage partnerships and sharing of technical
and financial resources among owners, operators, and producers and among
owners, operators, and producers and governmental and nongovernmental organizations.
`(A) IN GENERAL- The Secretary
may enter into agreements with States (including State agencies and units
of local government) and nongovernmental organizations to allow greater
flexibility to adjust the application of eligibility criteria, approved
practices, innovative conservation practices, and other elements of the
programs under this title to better reflect unique local circumstances
and purposes in a manner that is consistent with--
`(i) environmental enhancement
and long-term sustainability of the natural resource base; and
`(ii) the purposes of this
title.
`(B) PLAN- Each party to
an agreement under subparagraph (A) shall submit to the Secretary, for
approval by the Secretary, a special project area or priority area program
plan for each program to be carried out by the party that includes--
`(i) a description of the
proposed adjustments to program implementation (including a description
of how those adjustments will accelerate the achievement of environmental
benefits);
`(ii) an analysis of the
contribution those adjustments will make to the effectiveness of programs
in achieving the purposes of the special project or priority area program;
`(iii) a timetable for reevaluating
the need for or performance of the proposed adjustments;
`(iv) a description of non-Federal
programs and resources that will contribute to achieving the purposes of
the special project or priority area program; and
`(v) a plan for regular
monitoring, evaluation, and reporting of progress toward the purposes of
the special project or priority area program.
`(4) FUNDING FOR SPECIAL
PROJECTS- The Secretary may carry out special projects, the purposes of
which are to encourage--
`(A) producers to cooperate
in the installation and maintenance of conservation systems that affect
multiple agricultural operations;
`(B) the sharing of information
and technical and financial resources;
`(C) cumulative environmental
benefits across operations of producers; and
`(D) the development and
demonstration of innovative conservation methods.
`(A) IN GENERAL- Subject
to subparagraph (B), the Secretary shall use 5 percent of the funds made
available for each fiscal year under section 1241(b) to carry out activities
that are authorized under the environmental quality incentives program
established under chapter 4 of subtitle D.
`(B) UNUSED FUNDING- Any
funds made available for a fiscal year under subparagraph (A) that are
not obligated by June 1 of the fiscal year may be used to carry out other
activities under the environmental quality incentives program during the
fiscal year in which the funding becomes available.'.
SEC. 204. ADMINISTRATIVE REQUIREMENTS
FOR CONSERVATION PROGRAMS.
Subtitle E of title XII
of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended by
adding at the end the following:
`SEC. 1244. ADMINISTRATIVE REQUIREMENTS
FOR CONSERVATION PROGRAMS.
`(a) GOOD FAITH RELIANCE-
`(1) IN GENERAL- Notwithstanding
any other provision of law, except as provided in paragraph (4), the Secretary
shall provide equitable relief to an owner, operator, or producer that
has entered into a contract under a conservation program administered by
the Secretary, and that is subsequently determined to be in violation of
the contract, if the owner, operator, or producer, in attempting to comply
with the terms of the contract and enrollment requirements--
`(A) took actions in good
faith reliance on the action or advice of an employee of the Secretary;
and
`(B) had no knowledge that
the actions taken were in violation of the contract.
`(2) TYPES OF RELIEF- The
Secretary shall--
`(A) to the extent the Secretary
determines that an owner, operator, or producer has been injured by good
faith reliance described in paragraph (1), allow the owner, operator, or
producer--
`(i) to retain payments
received under the contract;
`(ii) to continue to receive
payments under the contract;
`(iii) to keep all or part
of the land covered by the contract enrolled in the applicable program;
`(iv) to reenroll all or
part of the land covered by the contract in the applicable program; or
`(v) to receive any other
equitable relief the Secretary considers appropriate; and
`(B) require the owner,
operator, or producer to take such actions as are necessary to remedy any
failure to comply with the contract.
`(3) RELATIONSHIP TO OTHER
LAW- The authority to provide relief under this subsection shall be in
addition to any other authority provided in this or any other Act.
`(4) EXCEPTIONS- This section
shall not apply to--
`(A) any pattern of conduct
in which an employee of the Secretary takes actions or provides advice
with respect to an owner, operator, or producer that the employee and the
owner, operator, or producer know are inconsistent with applicable law
(including regulations); or
`(B) an owner, operator,
or producer takes any action, independent of any advice or authorization
provided by an employee of the Secretary, that the owner, operator, or
producer knows or should have known to be inconsistent with applicable
law (including regulations).
`(5) APPLICABILITY OF RELIEF-
Relief under this section shall be available for contracts in effect on
or after the date of enactment of this section.
`(b) EDUCATION, OUTREACH,
MONITORING, AND EVALUATION- In carrying out any conservation program administered
by the Secretary, the Secretary--
`(1) shall provide education,
outreach, training, monitoring, evaluation, technical assistance, and related
services to agricultural producers (socially disadvantaged agricultural
producers, beginning farmers and ranchers, Indian tribes (as those terms
are defined in section 1238), and limited resource agricultural producers);
`(2) may enter into contracts
with States (including State agencies and units of local government), private
nonprofit, community-based organizations, and educational institutions
with demonstrated experience in providing the services described in paragraph
(1), to provide those services; and
`(3) shall use such sums
as are necessary from funds of the Commodity Credit Corporation to carry
out activities described in paragraphs (1) and (2).
`(c) BEGINNING FARMERS AND
RANCHERS AND INDIAN TRIBES- In carrying out any conservation program administered
by the Secretary, the Secretary may provide to beginning farmers and ranchers
and Indian tribes (as those terms are defined in section 1238) and limited
resource agricultural producers incentives to participate in the conservation
program to--
`(1) foster new farming
opportunities; and
`(2) enhance environmental
stewardship over the long term.
`(d) PROGRAM EVALUATION-
The Secretary shall maintain data concerning conservation security plans,
conservation practices planned or implemented, environmental outcomes,
economic costs, and related matters under conservation programs administered
by the Secretary.
`(e) MEDIATION AND INFORMAL
HEARINGS- If the Secretary makes a decision under a conservation program
administered by the Secretary that is adverse to an owner, operator, or
producer, at the request of the owner, operator, or producer, the Secretary
shall provide the owner, operator, or producer with mediation services
or an informal hearing on the decision.
`(f) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- Under any
conservation program administered by the Secretary, subject to paragraph
(2), technical assistance provided by persons certified under paragraph
(3) (including farmers and ranchers) may include--
`(A) conservation planning;
`(B) design, installation,
and certification of conservation practices;
`(C) conservation training
for producers; and
`(D) such other conservation
activities as the Secretary determines to be appropriate.
`(A) IN GENERAL- The Secretary
may contract directly with qualified persons not employed by the Department
to provide conservation technical assistance.
`(B) PAYMENT BY SECRETARY-
Subject to subparagraph (C), the Secretary may provide a payment to an
owner, operator, or producer enrolled in a conservation program administered
by the Secretary if the owner, operator, or producer elects to obtain technical
assistance from a person certified to provide technical assistance under
this subsection.
`(C) NONPRIVATE PROVIDERS-
In determining whether to provide a payment under subparagraph (B) to a
nonprivate provider, the Secretary shall provide a payment if the provision
of the payment would result in an increase in the total amount of technical
assistance available to producers, as determined by the Secretary.
`(3) CERTIFICATION OF PROVIDERS
OF TECHNICAL ASSISTANCE-
`(i) IN GENERAL- The Secretary
shall establish procedures for certifying persons not employed by the Department
to provide technical assistance in planning, designing, or certifying activities
to participate in any conservation program administered by the Secretary
to agricultural producers and landowners participating, or seeking to participate,
in conservation programs administered by the Secretary.
`(ii) NON-FEDERAL ASSISTANCE-
The Secretary may request the services of, and enter into a cooperative
agreement with, a State water quality agency, State fish and wildlife agency,
State forestry agency, or any other governmental or nongovernmental organization
or person considered appropriate to assist in providing the technical assistance
necessary to develop and implement conservation plans under this title.
`(B) STANDARDS- The Secretary
shall establish standards for the conduct of--
`(i) the certification process
conducted by the Secretary; and
`(ii) periodic recertification
by the Secretary of providers.
`(C) CERTIFICATION REQUIRED-
`(i) IN GENERAL- A provider
may not provide to any producer technical assistance described in paragraph
(3)(A)(i) unless the provider is certified by the Secretary.
`(ii) WAIVER- The Secretary
may exempt a provider from any requirement of this subparagraph if the
Secretary determines that the provider has been certified or recertified
to provide technical assistance through a program the standards of which
meet or exceed standards established by the Secretary under subparagraph
(B).
`(i) IN GENERAL- In exchange
for certification or recertification, a provider shall pay a fee to the
Secretary in an amount determined by the Secretary.
`(ii) ACCOUNT- A fee paid
to the Secretary under clause (i) shall be--
`(I) credited to the account
in the Treasury that incurs costs relating to implementing this subsection;
and
`(II) made available to
the Secretary for use for conservation programs administered by the Secretary,
without further appropriation, until expended.
`(iii) WAIVER- The Secretary
may waive any requirement of any provider to pay a fee under this subparagraph
if the provider qualifies for a waiver under subparagraph (C)(ii).
`(E) OTHER REQUIREMENTS-
The Secretary may establish such other requirements as the Secretary determines
are necessary to carry out this subsection.
`(g) PRIVACY OF PERSONAL
INFORMATION RELATING TO NATURAL RESOURCES CONSERVATION PROGRAMS-
`(1) INFORMATION RECEIVED
FOR TECHNICAL AND FINANCIAL ASSISTANCE-
`(A) IN GENERAL- In accordance
with section 1770 and section 552(b)(3) of title 5, United States Code,
except as provided in subparagraph (C) and paragraph (3), information described
in subparagraph (B)--
`(i) shall not be considered
to be public information; and
`(ii) shall not be released
to any person or Federal, State, local agency or Indian tribe (as defined
in section 1238) outside the Department of Agriculture.
`(B) INFORMATION- The information
referred to in subparagraph (A) is information--
`(i) provided to, or developed
by, the Secretary (including a contractor of the Secretary) for the purpose
of providing technical or financial assistance to an owner, operator, or
producer with respect to any natural resources conservation program administered
by the Natural Resources Conservation Service or the Farm Service Agency;
and
`(ii) that is proprietary
to the agricultural operation or land that is a part of an agricultural
operation of the owner, operator, or producer.
`(C) EXCEPTION- Information
compiled by the Secretary, such as a list of owners, operators, or producers
that have received payments from the Secretary and the amounts received,
shall be--
`(i) considered to be public
information; and
`(ii) may be released to
any--
`(II) Indian tribe (as defined
in section 1238); or
`(III) Federal, State, local
agency outside the Department of Agriculture.
`(2) INVENTORY, MONITORING,
AND SITE SPECIFIC INFORMATION- Except as provided in paragraph (3) and
notwithstanding any other provision of law, in order to maintain the personal
privacy, confidentiality, and cooperation of owners, operators, and producers,
and to maintain the integrity of sample sites, the specific geographic
locations of data gathering sites of the National Resources Inventory of
the Department of Agriculture, and the information generated by those sites--
`(A) shall not be considered
to be public information; and
`(B) shall not be released
to any person or Federal, State, local, or tribal agency outside the Department.
`(A) RELEASE AND DISCLOSURE
FOR ENFORCEMENT- The Secretary may release or disclose to the Attorney
General information covered by paragraph (1) or (2) to the extent necessary
to enforce the natural resources conservation programs referred to in paragraph
(1).
`(B) DISCLOSURE TO COOPERATING
PERSONS AND AGENCIES-
`(i) IN GENERAL- The Secretary
may release or disclose information covered by paragraph (1) or (2) to
a person or Federal, State, local, or tribal agency working in cooperation
with the Secretary in providing technical and financial assistance described
in paragraph (1) or collecting information from National Resources Inventory
data gathering sites.
`(ii) USE OF INFORMATION-
The person or Federal, State, local, or tribal agency that receives information
described in clause (i) may release the information only for the purpose
of assisting the Secretary--
`(I) in providing the requested
technical or financial assistance; or
`(II) in collecting information
from National Resources Inventory data gathering sites.
`(C) STATISTICAL AND AGGREGATE
INFORMATION- Information covered by paragraph (1) or (2) may be disclosed
to the public if the information has been transformed into a statistical
or aggregate form that does not allow the identification of any--
`(i) individual owner, operator,
or producer; or
`(ii) specific data gathering
site.
`(D) CONSENT OF OWNER, OPERATOR,
OR PRODUCER-
`(i) IN GENERAL- An owner,
operator, or producer may consent to the disclosure of information described
in paragraph (1) or (2).
`(ii) CONDITION OF OTHER
PROGRAMS- The participation of the owner, operator, or producer in, and
the receipt of any benefit by the owner, operator, or producer under, this
title or any other program administered by the Secretary may not be conditioned
on the owner, operator, or producer providing consent under this paragraph.
`(4) VIOLATIONS; PENALTIES-
Section 1770(c) shall apply with respect to the release of information
collected in any manner or for any purpose prohibited by this subsection.
`(h) INDIAN TRIBES- In carrying
out any conservation program administered by the Secretary on land under
the jurisdiction of an Indian tribe (as defined in section 1238), the Secretary
shall cooperate with the tribal government of the Indian tribe to ensure,
to the maximum extent practicable, that the program is administered in
a fair and equitable manner.'.
SEC. 205. REFORM AND ASSESSMENT
OF CONSERVATION PROGRAMS.
(a) IN GENERAL- The Secretary
of Agriculture shall develop a plan for--
(1) coordinating conservation
programs administered by the Secretary that are targeted at agricultural
land to--
(A) eliminate redundancy;
and
(2) to the maximum extent
practicable--
(A) designing forms that
are applicable to all conservation programs administered by the Secretary;
(B) reducing and consolidating
paperwork requirements for the programs;
(C) developing universal
classification systems for all information obtained on the forms that can
be used by other agencies of the Department of Agriculture;
(D) ensuring that the information
and classification systems developed under this paragraph can be shared
with other agencies of the Department through computer technologies used
by agencies; and
(E) developing 1 format
for a conservation plan that can be applied to all conservation programs
targeted at agricultural land; and
(3) to the maximum extent
practicable, improving the delivery of conservation programs to Indian
tribes (as defined in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)), including programs for the delivery of
conservation programs to Indian tribes under plans carried out in conjunction
with the Secretary of the Interior.
(b) REPORT- Not later than
180 days after the date of enactment of this Act, the Secretary of Agriculture
shall submit to the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes the plan developed under subsection (a), including
any recommendations for implementation of the plan.
(c) NATIONAL CONSERVATION
PLAN-
(1) IN GENERAL- Not later
than 180 days after the date of enactment of this Act, the Secretary of
Agriculture shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a plan and estimated budget for implementing the appraisal
of the soil, water, and related resources of the United States contained
in the national conservation program under sections 5 and 6 of the Soil
and Water Resources Conservation Act of 1977 (16 U.S.C. 2004, 2005) as
the primary vehicle for managing conservation on agricultural land in the
United States.
(2) REPORT ON IMPLEMENTATION-
Not later than April 30, 2005, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that--
(A) describes the status
of the implementation of the plan described in paragraph (1);
(B) contains an evaluation
of the scope, quality, and outcomes of the conservation practices carried
out under the plan; and
(C) makes recommendations
for achieving specific and quantifiable improvements for the purposes of
programs covered by the plan.
SEC. 206. CONSERVATION SECURITY
PROGRAM REGULATIONS.
Beginning on the date of
enactment of this Act, the Secretary of Agriculture may promulgate regulations
and carry out other actions relating to the implementation of the conservation
security program under subchapter A of chapter 2 of subtitle D of title
XII of the Food Security Act of 1985 (as added by section 201).
SEC. 207. CONFORMING AMENDMENTS.
(a) Chapter 1 of subtitle
D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.)
is amended in the chapter heading by striking `ENVIRONMENTAL CONSERVATION
ACREAGE RESERVE PROGRAM' and inserting `COMPREHENSIVE CONSERVATION
ENHANCEMENT PROGRAM'.
(b) Section 1230 of the
Food Security Act of 1985 (16 U.S.C. 3830) is amended--
(1) in the section heading,
by striking `environmental conservation acreage reserve program' and inserting
`comprehensive conservation enhancement program';
(2) in subsection (a)(1),
by striking `an environmental conservation acreage reserve program' and
inserting `a comprehensive conservation enhancement program'; and
(3) by striking `ECARP'
each place it appears and inserting `CCEP'.
(c) Section 1230A of the
Food Security Act of 1985 (16 U.S.C. 3830a) is repealed.
(d) Section 1243 of the
Food Security Act of 1985 (16 U.S.C. 3843) is amended by striking the section
heading and inserting the following:
`SEC. 1243. ADMINISTRATION OF
CCEP.'.
Subtitle B--Program Extensions
SEC. 211. COMPREHENSIVE CONSERVATION
ENHANCEMENT PROGRAM.
(a) IN GENERAL- Section
1230(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3830(a)(1)) is amended
by striking `2002' and inserting `2006'.
(b) PRIORITY- Section 1230(c)
of the Food Security Act of 1985 (16 U.S.C. 3830(c)) is amended by adding
at the end the following:
`(4) PRIORITY- In designating
conservation priority areas under paragraph (1), the Secretary shall give
priority to areas in which designated land would facilitate the most rapid
completion of projects that--
`(A) are ongoing as of the
date of the application; and
`(B) meet the purposes of
a program established under this title.'.
(c) FUNDING- Section 1241(a)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--
(1) by striking `2002' and
inserting `2006';
(2) by inserting `(including
the provision of technical assistance)' after `the programs'; and
(3) in paragraph (2), by
striking `subchapter C' and inserting `subchapters C and D'.
SEC. 212. CONSERVATION RESERVE
PROGRAM.
(1) IN GENERAL- Section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended in subsections
(a), (b)(3), and (d), by striking `2002' each place it appears and inserting
`2006'.
(2) DUTIES OF OWNERS AND
OPERATORS- Section 1232(c) of the Food Security Act of 1985 (16 U.S.C.
3832(c)) is amended by striking `2002' and inserting `2006'.
(b) CONSERVATION PRIORITY
AREAS-
(1) ELIGIBILITY- Section
1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended--
(A) by striking paragraph
(1) and inserting the following:
`(1) highly erodible cropland
that--
`(A)(i) if permitted to
remain untreated could substantially reduce the production capability for
future generations; or
`(ii) cannot be farmed in
accordance with a conservation plan that complies with the requirements
of subtitle B; and
`(B) the Secretary determines
had a cropping history or was considered to be planted for 3 of the 6 years
preceding the date of enactment of the Agriculture, Conservation, and Rural
Enhancement Act of 2001 (except for land enrolled in the conservation reserve
program as of that date);'; and
(B) by adding at the end
the following:
`(5) the portion of land
in a field not enrolled in the conservation reserve in a case in which
more than 50 percent of the land in the field is enrolled as a buffer under
a program described in section 1234(i)(1), if the land is enrolled as part
of the buffer; and
`(6) land (including land
that is not cropland) enrolled through continuous signup--
`(A) to establish conservation
buffers as part of the program described in a notice issued on March 24,
1998 (63 Fed. Reg. 14109) or a successor program; or
`(B) into the conservation
reserve enhancement program described in a notice issued on May 27, 1998
(63 Fed. Reg. 28965) or a successor program.'.
(2) CRP PRIORITY AREAS-
Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is
amended by adding at the end the following:
`(5) PRIORITY- In designating
conservation priority areas under paragraph (1), the Secretary shall give
priority to areas in which designated land would facilitate the most rapid
completion of projects that--
`(A) are ongoing as of the
date of the application; and
`(B) meet the purposes of
the program established under this subchapter.'.
(c) MAXIMUM ENROLLMENT-
Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is
amended by striking `36,400,000' and inserting `40,000,000'.
(d) DURATION OF CONTRACTS;
HARDWOOD TREES- Section 1231(e)(2) of the Food Security Act of 1985 (16
U.S.C. 3831(e)(2)) is amended--
(1) by striking `In the'
and inserting the following:
`(A) IN GENERAL- In the';
(2) by striking `The Secretary'
and inserting the following:
`(B) EXISTING HARDWOOD TREE
CONTRACTS- The Secretary'; and
`(3) by adding at the end
the following:
`(C) EXTENSION OF HARDWOOD
TREE CONTRACTS-
`(i) IN GENERAL- In the
case of land devoted to hardwood trees under a contract entered into under
this subchapter before the date of enactment of this subparagraph, the
Secretary may extend the contract for a term of not more than 15 years.
`(ii) RENTAL PAYMENTS- The
amount of a rental payment for a contract extended under clause (i)--
`(I) shall be determined
by the Secretary; but
`(II) shall not exceed 50
percent of the rental payment that was applicable to the contract before
the contract was extended.'.
(e) PILOT PROGRAM FOR ENROLLMENT
OF WETLAND AND BUFFER ACREAGE IN CONSERVATION RESERVE- Section 1231(h)
of the Food Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
(1) in the subsection heading,
by striking `PILOT';
(2) in paragraph (1), by
striking `During the 2001 and 2002 calendar years, the Secretary shall
carry out a pilot program' and inserting `During the 2002 through 2006
calendar years, the Secretary shall carry out a program';
(3) in paragraph (2), by
striking `pilot'; and
(4) in paragraph (3)(D)(i),
by striking `5 contiguous acres.' and inserting `10 contiguous acres, of
which--
`(I) not more than 5 acres
shall be eligible for payment; and
`(II) all acres (including
acres that are ineligible for payment) shall be covered by the conservation
contract.'.
(f) VEGETATIVE COVER; HAYING
AND GRAZING; WIND TURBINES- Section 1232(a) of the Food Security Act of
1985 (16 U.S.C. 3832(a)) is amended--
(A) in subparagraph (A),
by striking `and' at the end;
(B) in subparagraph (B),
by inserting `and' after the semicolon at the end; and
(C) by adding at the end
the following:
`(C) in the case of marginal
pasture land, an owner or operator shall not be required to plant trees
if native prairie grass may be retained or restored;';
(A) by striking `except
that the Secretary--' and inserting `except that--';
(B) in subparagraph (A)--
(i) by striking `(A) may'
and inserting `(A) the Secretary may'; and
(ii) by striking `and' at
the end;
(C) in subparagraph (B)--
(i) by striking `(B) shall'
and inserting `(B) the Secretary shall'; and
(ii) by striking the period
at the end and inserting a semicolon;
(D) in subparagraph (C),
by striking the period at the end and inserting `; and'; and
(E) by adding at the end
the following:
`(D) for maintenance purposes,
the Secretary shall permit harvesting or grazing or other commercial uses
of forage, in a manner that is consistent with the purposes of this subchapter
and a conservation plan approved by the Secretary, on acres enrolled--
`(i) to establish conservation
buffers as part of the program described in a notice issued on March 24,
1998 (63 Fed. Reg. 14109) or a successor program; and
`(ii) into the conservation
reserve enhancement program described in a notice issued on May 27, 1998
(63 Fed. Reg. 28965) or a successor program.';
(3) in paragraph (9), by
striking `and' at the end;
(4) by redesignating paragraph
(10) as paragraph (11); and
(5) by inserting after paragraph
(9) the following:
`(10) with respect to any
contract entered into after the date of enactment of the Agriculture, Conservation,
and Rural Enhancement Act of 2001--
`(A) not to produce a crop
for the duration of the contract on any other highly erodible land that
the owner or operator owns unless the highly erodible land--
`(i) has a history of being
used to produce a crop other than a forage crop, as determined by the Secretary;
or
`(ii) is being used as a
homestead or building site at the time of purchase; and
`(B) on a violation of a
contract described in subparagraph (A), to be subject to the requirements
of paragraph (5); and'.
(g) WIND TURBINES- Section
1232 of the Food Security Act of 1985 (8906 U.S.C. 3832) is amended by
adding at the end the following:
`(1) IN GENERAL- Subject
to paragraph (2), the Secretary may permit an owner or operator of land
that is enrolled in the conservation reserve program, but that is not enrolled
under continuous signup (as described in section 1231(b)(6)), to install
wind turbines on the land.
`(2) NUMBER; LOCATION- The
Secretary shall determine the number and location of wind turbines that
may be installed on a tract of land under paragraph (1), taking into account--
`(A) the location, size,
and other physical characteristics of the land;
`(B) the extent to which
the land contains wildlife and wildlife habitat; and
`(C) the purposes of the
conservation reserve program.
`(3) PAYMENT LIMITATION-
Notwithstanding the amount of a rental payment limited by section 1234(c)(2)
and specified in a contract entered into under this chapter, the Secretary
shall reduce the amount of the rental payment paid to an owner or operator
of land on which 1 or more wind turbines are installed under this subsection
by an amount determined by the Secretary to be commensurate with the value
of the reduction of benefit gained by enrollment of the land in the conservation
reserve program.'.
(h) ADDITIONAL ELIGIBLE
PRACTICES- Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834)
is amended by adding at the end the following:
`(1) IN GENERAL- Subject
to paragraph (2), the Secretary shall provide signing and practice incentive
payments under the conservation reserve program to owners and operators
that implement a practice under--
`(A) the program to establish
conservation buffers described in a notice issued on March 24, 1998 (63
Fed. Reg. 14109) or a successor program; or
`(B) the conservation reserve
enhancement program described in a notice issued on May 27, 1998 (63 Fed.
Reg. 28965) or a successor program.
`(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.'.
(i) COUNTY PARTICIPATION-
Section 1243(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(1))
is amended by striking `The Secretary' and inserting `Except for land enrolled
under continuous signup (as described in section 1231(b)(6)), the Secretary'.
(j) STUDY ON ECONOMIC EFFECTS-
Not later than 270 days after the date of enactment of this Act, the Secretary
of Agriculture shall submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that describes the economic effects on rural communities
resulting from 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.).
SEC. 213. WETLANDS RESERVE PROGRAM.
(a) TECHNICAL ASSISTANCE-
Section 1237(a) of the Food Security Act of 1985 (16 U.S.C. 3837(a)) is
amended by inserting `(including the provision of technical assistance)'
before the period at the end.
(b) MAXIMUM ENROLLMENT-
Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 3837(b)) is
amended by striking paragraph (1) and inserting the following:
`(A) IN GENERAL- The total
number of acres enrolled in the wetlands reserve program shall not exceed
2,225,000 acres, of which, to the maximum extent practicable subject to
subparagraph (B), the Secretary shall enroll 250,000 acres in each calendar
year.
`(B) WETLANDS RESERVE ENHANCEMENT
ACREAGE- Of the acreage enrolled under subparagraph (A) for a calendar
year, not more than 25,000 acres may be enrolled in the wetlands reserve
enhancement program described in subsection (h).'.
(c) REAUTHORIZATION- Section
1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is amended
by striking `2002' and inserting `2006'.
(d) WETLANDS RESERVE ENHANCEMENT
PROGRAM- Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837)
is amended by adding at the end the following:
`(h) WETLANDS RESERVE ENHANCEMENT
PROGRAM-
`(1) IN GENERAL- The Secretary
may enter into cooperative agreements with State or local governments,
and with private organizations, to develop, on land that is enrolled, or
is eligible to be enrolled, in the wetland reserve established under this
subchapter, wetland restoration activities in watershed areas.
`(2) PURPOSE- The purpose
of the agreements shall be to address critical environmental issues.'.
(e) MONITORING AND MAINTENANCE-
Section 1237C(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3837c(a)(2))
is amended by striking `assistance' and inserting `assistance (including
monitoring and maintenance)'.
SEC. 214. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
(a) IN GENERAL- Chapter
4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3839aa et seq.) is amended to read as follows:
`SEC. 1240. PURPOSES.
`The purposes of the environmental
quality incentives program established by this chapter are to promote agricultural
production and environmental quality as compatible national goals, and
to maximize environmental benefits per dollar expended, by--
`(1) assisting producers
in complying with--
`(B) the Federal Water Pollution
Control Act (33 U.S.C. 1251 et seq.);
`(C) the Safe Drinking Water
Act (42 U.S.C. 300f et seq.);
`(D) the Clean Air Act (42
U.S.C. 7401 et seq.); and
`(E) other Federal, State,
and local environmental laws (including regulations);
`(2) avoiding, to the maximum
extent practicable, the need for resource and regulatory programs by assisting
producers in protecting soil, water, air, and related natural resources
and meeting environmental quality criteria established by Federal, State,
and local agencies;
`(3) providing flexible
technical and financial assistance to producers to install and maintain
conservation systems that enhance soil, water, related natural resources
(including grazing land and wetland), and wildlife while sustaining production
of food and fiber;
`(4) assisting producers
to make beneficial, cost effective changes to cropping systems, grazing
management, nutrient management associated with livestock, pest or irrigation
management, or other practices on agricultural land;
`(5) facilitating partnerships
and joint efforts among producers and governmental and nongovernmental
organizations; and
`(6) consolidating and streamlining
conservation planning and regulatory compliance processes to reduce administrative
burdens on producers and the cost of achieving environmental goals.
`SEC. 1240A. DEFINITIONS.
`(1) BEGINNING FARMER OR
RANCHER- The term `beginning farmer or rancher' has the meaning provided
under section 343(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1999(a)).
`(2) COMPREHENSIVE NUTRIENT
MANAGEMENT-
`(A) IN GENERAL- The term
`comprehensive nutrient management' means any combination of structural
practices, land management practices, and management activities associated
with crop or livestock production described in subparagraph (B) that collectively
ensure that the purposes of crop or livestock production and preservation
of natural resources (especially the preservation and enhancement of water
quality) are compatible.
`(B) ELEMENTS- For the purpose
of subparagraph (A), structural practices, land management practices, and
management activities associated with livestock production are--
`(i) manure and wastewater
handling and storage;
`(ii) manure processing,
composting, or digestion for purposes of capturing emissions, concentrating
nutrients for transport, destroying pathogens or otherwise improving the
environmental safety and beneficial uses of manure;
`(iii) land treatment practices;
`(iv) nutrient management;
`(vi) feed management; and
`(vii) other waste utilization
options.
`(i) PLANNING- The development
of a comprehensive nutrient management plan shall be a practice that is
eligible for incentive payments and technical assistance under this chapter.
`(ii) IMPLEMENTATION- The
implementation of a comprehensive nutrient plan shall be accomplished through
structural and land management practices identified in the plan.
`(3) ELIGIBLE LAND- The
term `eligible land' means agricultural land (including cropland, grassland,
rangeland, pasture, private nonindustrial forest land, and other land on
which crops or livestock are produced), including agricultural land that
the Secretary determines poses a serious threat to soil, water, or related
resources by reason of the soil types, terrain, climatic, soil, topographic,
flood, or saline characteristics, or other factors or natural hazards.
`(4) INNOVATIVE TECHNOLOGY-
The term `innovative technology' means a new conservation technology that,
as determined by the Secretary--
`(A) maximizes environmental
benefits;
`(B) complements agricultural
production; and
`(C) may be adopted in a
practical manner.
`(5) LAND MANAGEMENT PRACTICE-
The term `land management practice' means a site-specific nutrient or manure
management, integrated pest management, irrigation management, tillage
or residue management, grazing management, air quality management, or other
land management practice carried out on eligible land that the Secretary
determines is needed to protect from degradation, in the most cost-effective
manner, water, soil, or related resources.
`(6) LIVESTOCK- The term
`livestock' means dairy cattle, beef cattle, laying hens, broilers, turkeys,
swine, sheep, and such other animals as are determined by the Secretary.
`(7) MAXIMIZE ENVIRONMENTAL
BENEFITS PER DOLLAR EXPENDED-
`(A) IN GENERAL- The term
`maximize environmental benefits per dollar expended' means to maximize
environmental benefits to the extent the Secretary determines is practicable
and appropriate, taking into account the amount of funding made available
to carry out this chapter.
`(B) LIMITATION- The term
`maximize environmental benefits per dollar expended' does not require
the Secretary--
`(i) to require the adoption
of the least cost practice or technical assistance; or
`(ii) to require the development
of a plan under section 1240E as part of an application for payments or
technical assistance.
`(8) PRACTICE- The term
`practice' means 1 or more structural practices, land management practices,
and comprehensive nutrient management planning practices.
`(9) PRODUCER- The term
`producer' has the meaning given the term in section 102 of the Agricultural
Market Transition Act (7 U.S.C. 7202).
`(10) STRUCTURAL PRACTICE-
The term `structural practice' means--
`(A) the establishment on
eligible land of a site-specific animal waste management facility, terrace,
grassed waterway, contour grass strip, filterstrip, tailwater pit, permanent
wildlife habitat, constructed wetland, or other structural practice that
the Secretary determines is needed to protect, in the most cost-effective
manner, water, soil, or related resources from degradation; and
`(B) the capping of abandoned
wells on eligible land.
`SEC. 1240B. ESTABLISHMENT AND
ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
`(1) IN GENERAL- During
each of the 2002 through 2006 fiscal years, the Secretary shall provide
technical assistance, cost-share payments, and incentive payments to producers,
that enter into contracts with the Secretary, through an environmental
quality incentives program in accordance with this chapter.
`(A) STRUCTURAL PRACTICES-
A producer that implements a structural practice shall be eligible for
any combination of technical assistance, cost-share payments, and education.
`(B) LAND MANAGEMENT PRACTICES-
A producer that performs a land management practice shall be eligible for
any combination of technical assistance, incentive payments, and education.
`(C) COMPREHENSIVE NUTRIENT
MANAGEMENT PLANNING- A producer that develops a comprehensive nutrient
management plan shall be eligible for any combination of technical assistance,
incentive payments, and education.
`(3) EDUCATION- The Secretary
may provide conservation education at national, State, and local levels
consistent with the purposes of the environmental quality incentives program
to--
`(A) any producer that is
eligible for assistance under this chapter; or
`(B) any producer that is
engaged in the production of an agricultural commodity.
`(b) APPLICATION AND TERM-
With respect to practices implemented under this chapter--
`(1) a contract between
a producer and the Secretary may--
`(A) apply to 1 or more
structural practices, land management practices, and comprehensive nutrient
management planning practices; and
`(B) have a term of not
less than 3, nor more than 10, years, as determined appropriate by the
Secretary, depending on the practice or practices that are the basis of
the contract; and
`(2) a producer may not
enter into more than 1 contract for structural practices involving livestock
nutrient management during the period of fiscal years 2002 through 2006.
`(c) APPLICATION AND EVALUATION-
`(1) IN GENERAL- The Secretary
shall establish an application and evaluation process for awarding technical
assistance, cost-share payments, and incentive payments to a producer in
exchange for the performance of 1 or more practices that maximizes environmental
benefits per dollar expended.
`(2) COMPARABLE ENVIRONMENTAL
VALUE-
`(A) IN GENERAL- The Secretary
shall establish a process for selecting applications for technical assistance,
cost-share payments, and incentive payments when there are numerous applications
for assistance for practices that would provide substantially the same
level of environmental benefits.
`(B) CRITERIA- The process
under subparagraph (A) shall be based on--
`(i) a reasonable estimate
of the projected cost of the proposals described in the applications; and
`(ii) the priorities established
under this chapter and other factors that maximize environmental benefits
per dollar expended.
`(3) CONSENT OF OWNER- If
the producer making an offer to implement a structural practice is a tenant
of the land involved in agricultural production, for the offer to be acceptable,
the producer shall obtain the consent of the owner of the land with respect
to the offer.
`(4) BIDDING DOWN- If the
Secretary determines that the environmental values of 2 or more applications
for technical assistance, cost-share payments, or incentive payments are
comparable, the Secretary shall not assign a higher priority to the application
only because it would present the least cost to the program established
under this chapter.
`(d) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Except
as provided in paragraph (2), the cost-share payments provided to a producer
proposing to implement 1 or more practices under the program shall be not
more than 75 percent of the cost of the practice, as determined by the
Secretary.
`(A) LIMITED RESOURCE AND
BEGINNING FARMERS- 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.
`(B) COST-SHARE ASSISTANCE
FROM OTHER SOURCES- Any cost-share payments received by a producer from
a State or private organization or person for the implementation of 1 or
more practices shall be in addition to the payments provided to the producer
under paragraph (1).
`(3) OTHER PAYMENTS- A producer
shall not be eligible for cost-share payments for practices on eligible
land under this chapter if the producer receives cost-share payments or
other benefits for the same practice on the same land under chapter 1 and
this chapter.
`(e) INCENTIVE PAYMENTS-
The Secretary shall make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to encourage a producer to
perform 1 or more practices.
`(f) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- The Secretary
shall allocate funding under this chapter for the provision of technical
assistance according to the purpose and projected cost for which the technical
assistance is provided for a fiscal year.
`(2) AMOUNT- The allocated
amount may vary according to--
`(A) the type of expertise
required;
`(B) the quantity of time
involved; and
`(C) other factors as determined
appropriate by the Secretary.
`(3) LIMITATION- Funding
for technical assistance under this chapter shall not exceed the projected
cost to the Secretary of the technical assistance provided for a fiscal
year.
`(4) OTHER AUTHORITIES-
The receipt of technical assistance under this chapter shall not affect
the eligibility of the producer to receive technical assistance under other
authorities of law available to the Secretary.
`(5) INCENTIVE PAYMENTS
FOR TECHNICAL ASSISTANCE-
`(A) IN GENERAL- A producer
that is eligible to receive technical assistance for a practice involving
the development of a comprehensive nutrient management plan may obtain
an incentive payment that can be used to obtain technical assistance associated
with the development of any component of the comprehensive nutrient management
plan.
`(B) PURPOSE- The purpose
of the payment shall be to provide a producer the option of obtaining technical
assistance for developing any component of a comprehensive nutrient management
plan from a private person.
`(C) PAYMENT- The incentive
payment shall be--
`(i) in addition to cost-share
or incentive payments that a producer would otherwise receive for structural
practices and land management practices;
`(ii) used only to procure
technical assistance from a private person that is necessary to develop
any component of a comprehensive nutrient management plan; and
`(iii) in an amount determined
appropriate by the Secretary, taking into account--
`(I) the extent and complexity
of the technical assistance provided;
`(II) the costs that the
Secretary would have incurred in providing the technical assistance; and
`(III) the costs incurred
by the private provider in providing the technical assistance.
`(D) ELIGIBLE PRACTICES-
The Secretary may determine, on a case by case basis, whether the development
of a comprehensive nutrient management plan is eligible for an incentive
payment under this paragraph.
`(E) CERTIFICATION BY SECRETARY-
`(i) IN GENERAL- Only private
persons that have been certified by the Secretary under section 1244(f)(3)
shall be eligible to provide technical assistance under this subsection.
`(ii) QUALITY ASSURANCE-
The Secretary shall ensure that certified private providers are capable
of providing technical assistance regarding comprehensive nutrient management
in a manner that meets the specifications and guidelines of the Secretary
and that meets the needs of producers under the environmental quality incentives
program.
`(F) ADVANCE PAYMENT- On
the determination of the Secretary that the proposed comprehensive nutrient
management of a producer is eligible for an incentive payment, the producer
may receive a partial advance of the incentive payment in order to procure
the services of a certified private provider.
`(G) FINAL PAYMENT- The
final installment of the incentive payment shall be payable to a producer
on presentation to the Secretary of documentation that is satisfactory
to the Secretary and that demonstrates--
`(i) completion of the technical
assistance; and
`(ii) the actual cost of
the technical assistance.
`(g) MODIFICATION OR TERMINATION
OF CONTRACTS-
`(1) VOLUNTARY MODIFICATION
OR TERMINATION- The Secretary may modify or terminate a contract entered
into with a producer under this chapter if--
`(A) the producer agrees
to the modification or termination; and
`(B) the Secretary determines
that the modification or termination is in the public interest.
`(2) INVOLUNTARY TERMINATION-
The Secretary may terminate a contract under this chapter if the Secretary
determines that the producer violated the contract.
`SEC. 1240C. EVALUATION OF OFFERS
AND PAYMENTS.
`(a) IN GENERAL- In evaluating
applications for technical assistance, cost-share payments, and incentive
payments, the Secretary shall accord a higher priority to assistance and
payments that--
`(1) maximize environmental
benefits per dollar expended; and
`(2)(A) address national
conservation priorities, including--
`(i) meeting Federal, State,
and local environmental purposes focused on protecting air and water quality;
`(ii) comprehensive nutrient
management;
`(iii) water quality, particularly
in impaired watersheds;
`(B) are provided in conservation
priority areas established under section 1230(c);
`(C) are provided in special
projects under section 1243(f)(4) with respect to which State or local
governments have provided, or will provide, financial or technical assistance
to producers for the same conservation or environmental purposes; or
`(D) an innovative technology
in connection with a structural practice or land management practice.
`SEC. 1240D. DUTIES OF PRODUCERS.
`To receive technical assistance,
cost-share payments, or incentive payments under this chapter, a producer
shall agree--
`(1) to implement an environmental
quality incentives program plan that describes conservation and environmental
purposes to be achieved through 1 or more practices that are approved by
the Secretary;
`(2) not to conduct any
practices on the farm or ranch that would tend to defeat the purposes of
this chapter;
`(3) on the violation of
a term or condition of the contract at any time the producer has control
of the land--
`(A) if the Secretary determines
that the violation warrants termination of the contract--
`(i) to forfeit all rights
to receive payments under the contract; and
`(ii) to refund to the Secretary
all or a portion of the payments received by the owner or operator under
the contract, including any interest on the payments, as determined by
the Secretary; or
`(B) if the Secretary determines
that the violation does not warrant termination of the contract, to refund
to the Secretary, or accept adjustments to, the payments provided to the
owner or operator, as the Secretary determines to be appropriate;
`(4) on the transfer of
the right and interest of the producer in land subject to the contract,
unless the transferee of the right and interest agrees with the Secretary
to assume all obligations of the contract, to refund all cost-share payments
and incentive payments received under this chapter, as determined by the
Secretary;
`(5) to supply information
as required by the Secretary to determine compliance with the environmental
quality incentives program plan and requirements of the program; and
`(6) to comply with such
additional provisions as the Secretary determines are necessary to carry
out the environmental quality incentives program plan.
`SEC. 1240E. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM PLAN.
`(a) IN GENERAL- To be eligible
to receive technical assistance, cost-share payments, or incentive payments
under the environmental quality incentives program, a producer of a livestock
or agricultural operation shall submit to the Secretary for approval a
plan of operations that specifies practices covered under this chapter,
and is based on such terms and conditions, as the Secretary considers necessary
to carry out the program, including a description of the practices to be
implemented and the purposes to be met by the implementation of the plan.
`(b) AVOIDANCE OF DUPLICATION-
The Secretary shall, to the maximum extent practicable, eliminate duplication
of planning activities under the environmental quality incentives program
and comparable conservation programs.
`SEC. 1240F. DUTIES OF THE SECRETARY.
`To the extent appropriate,
the Secretary shall assist a producer in achieving the conservation and
environmental goals of an environmental quality incentives program plan
by--
`(1) providing technical
assistance in developing and implementing the plan;
`(2) providing technical
assistance, cost-share payments, or incentive payments for developing and
implementing 1 or more practices, as appropriate;
`(3) providing the producer
with information, education, and training to aid in implementation of the
plan; and
`(4) encouraging the producer
to obtain technical assistance, cost-share payments, or grants from other
Federal, State, local, or private sources.
`SEC. 1240G. LIMITATION ON PAYMENTS.
`(a) IN GENERAL- An individual
or entity may not receive, directly or indirectly, payments under this
chapter that exceed--
`(1) $50,000 for any fiscal
year; or
`(2) $150,000 for any multiyear
contract.
`(b) VERIFICATION- The Secretary
shall identify individuals and entities that are eligible for a payment
under this chapter using social security numbers and taxpayer identification
numbers, respectively.
`SEC. 1240H. CONSERVATION INNOVATION
GRANTS.
`(a) IN GENERAL- From funds
made available to carry out this chapter, for each of the 2003 through
2006 fiscal years, the Secretary shall use not more than $100,000,000 for
each fiscal year to pay the cost of competitive grants that are intended
to stimulate innovative approaches to leveraging Federal investment in
environmental enhancement and protection, in conjunction with agricultural
production, through the environmental quality incentives program.
`(b) USE- The Secretary
may award grants under this section to governmental and nongovernmental
organizations and persons, on a competitive basis, to carry out projects
that--
`(1) involve producers that
are eligible for payments or technical assistance under this chapter;
`(2) implement innovative
projects, such as--
`(A) market systems for
pollution reduction;
`(B) promoting agricultural
best management practices, including the storing of carbon in the soil;
and
`(C) protection of source
water for human consumption; and
`(3) leverage funds made
available to carry out this chapter with matching funds provided by State
and local governments and private organizations to promote environmental
enhancement and protection in conjunction with agricultural production.
`(c) COST SHARE- The amount
of a grant made under this section to carry out a project shall not exceed
50 percent of the cost of the project.
`(d) UNUSED FUNDING- Any
funds made available for a fiscal year under this section that are not
obligated by June 1 of the fiscal year may be used to carry out other activities
under this chapter during the fiscal year in which the funding becomes
available.'.
(b) FUNDING- Section 1241
of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking
subsection (b) and inserting the following:
`(b) ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM-
`(1) IN GENERAL- Of the
funds of the Commodity Credit Corporation, the Secretary shall make available
to provide technical assistance, cost-share payments, incentive payments,
bonus payments, grants, and education under the environmental quality incentives
program under chapter 4 of subtitle D--
`(A) $500,000,000 for fiscal
year 2002;
`(B) $1,050,000,000 for
fiscal year 2003;
`(C) $1,200,000,000 for
fiscal year 2004;
`(D) $1,200,000,000 for
fiscal year 2005; and
`(E) $1,250,000,000 for
fiscal year 2006.
`(2) OBLIGATION OF FUNDS-
`(A) IN GENERAL- If a contract
under the environmental quality incentives program under chapter 4 of subtitle
D is terminated, or work under the contract is completed, prior to the
end of the term of the contract and funds obligated for the contract have
not been expended, the unexpended funds may be used to carry out any other
contract under the program during the same fiscal year in which the original
contract was terminated.
`(B) ADDITIONAL USES OF
FUNDS- Funding for contracts that terminate under the program administered
under subchapter B of chapter 1 may be transferred to, and used to carry
out, the program under chapter 4 of subtitle D.'.
(c) REIMBURSEMENTS- Section
11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i) is
amended in the last sentence by inserting `but excluding transfers and
allotments for conservation technical assistance' after `activities'.
SEC. 215. RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM.
Subtitle H of title XV of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451 et seq.) is amended
to read as follows:
`Subtitle H--Resource Conservation
and Development Program
`SEC. 1528. DEFINITIONS.
`(1) AREA PLAN- The term
`area plan' means a resource conservation and use plan that is developed
by a council for a designated area of a State or States through a planning
process and that includes 1 or more of the following elements:
`(A) A land conservation
element, the purpose of which is to control erosion and sedimentation.
`(B) A water management
element that provides 1 or more clear environmental or conservation benefits,
the purpose of which is to provide for--
`(i) the conservation, use,
and quality of water, including irrigation and rural water supplies;
`(ii) the mitigation of
floods and high water tables;
`(iii) the repair and improvement
of reservoirs;
`(iv) the improvement of
agricultural water management; and
`(v) the improvement of
water quality.
`(C) A community development
element, the purpose of which is to improve--
`(i) the development of
resources-based industries;
`(ii) the protection of
rural industries from natural resource hazards;
`(iii) the development of
adequate rural water and waste disposal systems;
`(iv) the improvement of
recreation facilities;
`(v) the improvement in
the quality of rural housing;
`(vi) the provision of adequate
health and education facilities;
`(vii) the satisfaction
of essential transportation and communication needs; and
`(viii) the promotion of
food security, economic development, and education.
`(D) A land management element,
the purpose of which is--
`(i) energy conservation;
`(ii) the protection of
agricultural land, as appropriate, from conversion to other uses;
`(iii) farmland protection;
and
`(iv) the protection of
fish and wildlife habitats.
`(2) BOARD- The term `Board'
means the Resource Conservation and Development Policy Advisory Board established
under section 1533(a).
`(3) COUNCIL- The term `council'
means a nonprofit entity (including an affiliate of the entity) operating
in a State that is--
`(A) established by volunteers
or representatives of States, local units of government, Indian tribes,
or local nonprofit organizations to carry out an area plan in a designated
area; and
`(B) designated by the chief
executive officer or legislature of the State to receive technical assistance
and financial assistance under this subtitle.
`(4) DESIGNATED AREA- The
term `designated area' means a geographic area designated by the Secretary
to receive technical assistance and financial assistance under this subtitle.
`(5) FINANCIAL ASSISTANCE-
The term `financial assistance' means a grant or loan provided by the Secretary
(or the Secretary and other Federal agencies) to, or a cooperative agreement
entered into by the Secretary (or the Secretary and other Federal agencies)
with, a council, or association of councils, to carry out an area plan
in a designated area, including assistance provided for planning, analysis,
feasibility studies, training, education, and other activities necessary
to carry out the area plan.
`(6) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term by section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b).
`(7) LOCAL UNIT OF GOVERNMENT-
The term `local unit of government' means--
`(A) any county, city, town,
township, parish, village, or other general-purpose subdivision of a State;
and
`(B) any local or regional
special district or other limited political subdivision of a State, including
any soil conservation district, school district, park authority, and water
or sanitary district.
`(8) NONPROFIT ORGANIZATION-
The term `nonprofit organization' means any organization that is--
`(A) described in section
501(c) of the Internal Revenue Code of 1986; and
`(B) exempt from taxation
under section 501(a) of the Internal Revenue Code of 1986.
`(9) PLANNING PROCESS- The
term `planning process' means actions taken by a council to develop and
carry out an effective area plan in a designated area, including development
of the area plan, goals, purposes, policies, implementation activities,
evaluations and reviews, and the opportunity for public participation in
the actions.
`(10) PROJECT- The term
`project' means a project that is carried out by a council to achieve any
of the elements of an area plan.
`(11) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(12) STATE- The term `State'
means--
`(B) the District of Columbia;
or
`(C) any territory or possession
of the United States.
`(13) TECHNICAL ASSISTANCE-
The term `technical assistance' means any service provided by the Secretary
or agent of the Secretary, including--
`(A) inventorying, evaluating,
planning, designing, supervising, laying out, and inspecting projects;
`(B) providing maps, reports,
and other documents associated with the services provided;
`(C) providing assistance
for the long-term implementation of area plans; and
`(D) providing services
of an agency of the Department of Agriculture to assist councils in developing
and carrying out area plans.
`SEC. 1529. RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM.
`The Secretary shall establish
a resource conservation and development program under which the Secretary
shall provide technical assistance and financial assistance to councils
to develop and carry out area plans and projects in designated areas--
`(1) to conserve and improve
the use of land, develop natural resources, and improve and enhance the
social, economic, and environmental conditions in primarily rural areas
of the United States; and
`(2) to encourage and improve
the capability of State, units of government, Indian tribes, nonprofit
organizations, and councils to carry out the purposes described in paragraph
(1).
`SEC. 1530. SELECTION OF DESIGNATED
AREAS.
`The Secretary shall select
designated areas for assistance under this subtitle on the basis of the
elements of area plans.
`SEC. 1531. POWERS OF THE SECRETARY.
`In carrying out this subtitle,
the Secretary may--
`(1) provide technical assistance
to any council to assist in developing and implementing an area plan for
a designated area;
`(2) cooperate with other
departments and agencies of the Federal Government, States, local units
of government, local Indian tribes, and local nonprofit organizations in
conducting surveys and inventories, disseminating information, and developing
area plans;
`(3) assist in carrying
out an area plan approved by the Secretary for any designated area by providing
technical assistance and financial assistance to any council; and
`(4) enter into agreements
with councils in accordance with section 1532.
`SEC. 1532. ELIGIBILITY; TERMS
AND CONDITIONS.
`(a) ELIGIBILITY- Technical
assistance and financial assistance may be provided by the Secretary under
this subtitle to any council to assist in carrying out a project specified
in an area plan approved by the Secretary only if--
`(1) the council agrees
in writing--
`(A) to carry out the project;
and
`(B) to finance or arrange
for financing of any portion of the cost of carrying out the project for
which financial assistance is not provided by the Secretary under this
subtitle;
`(2) the project is included
in an area plan and is approved by the council;
`(3) the Secretary determines
that assistance is necessary to carry out the area plan;
`(4) the project provided
for in the area plan is consistent with any comprehensive plan for the
area;
`(5) the cost of the land
or an interest in the land acquired or to be acquired under the plan by
any State, local unit of government, Indian tribe, or local nonprofit organization
is borne by the State, local unit of government, Indian tribe, or local
nonprofit organization, respectively; and
`(6) the State, local unit
of government, Indian tribe, or local nonprofit organization participating
in the area plan agrees to maintain and operate the project.
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), a loan made under this subtitle shall be made
on such terms and conditions as the Secretary may prescribe.
`(2) TERM- A loan for a
project made under this subtitle shall have a term of not more than 30
years after the date of completion of the project.
`(3) INTEREST RATE- A loan
made under this subtitle shall bear interest at the average rate of interest
paid by the United States on obligations of a comparable term, as determined
by the Secretary of the Treasury.
`(c) APPROVAL BY SECRETARY-
Technical assistance and financial assistance under this subtitle may not
be made available to a council to carry out an area plan unless the area
plan has been submitted to and approved by the Secretary.
`(d) WITHDRAWAL- The Secretary
may withdraw technical assistance and financial assistance with respect
to any area plan if the Secretary determines that the assistance is no
longer necessary or that sufficient progress has not been made toward developing
or implementing the elements of the area plan.
`(e) USE OF OTHER ENTITIES
AND PERSONS- A council may use another person or entity to assist in developing
and implementing an area plan and otherwise carrying out this subtitle.
`SEC. 1533. RESOURCE CONSERVATION
AND DEVELOPMENT POLICY ADVISORY BOARD.
`(a) ESTABLISHMENT- The
Secretary shall establish within the Department of Agriculture a Resource
Conservation and Development Policy Advisory Board.
`(1) IN GENERAL- The Board
shall be composed of at least 7 employees of the Department of Agriculture
selected by the Secretary.
`(2) CHAIRPERSON- A member
of the Board shall be designated by the Secretary to serve as chairperson
of the Board.
`(c) DUTIES- The Board shall
advise the Secretary regarding the administration of this subtitle, including
the formulation of policies for carrying out this subtitle.
`SEC. 1534. EVALUATION OF PROGRAM.
`(a) IN GENERAL- The Secretary,
in consultation with councils, shall evaluate the program established under
this subtitle to determine whether the program is effectively meeting the
needs of, and the purposes identified by, States, units of government,
Indian tribes, nonprofit organizations, and councils participating in,
or served by, the program.
`(b) REPORT- Not later than
June 30, 2005, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the results of the evaluation,
together with any recommendations of the Secretary for continuing, terminating,
or modifying the program.
`SEC. 1535. LIMITATION ON ASSISTANCE.
`In carrying out this subtitle,
the Secretary shall provide technical assistance and financial assistance
with respect to not more than 450 active designated areas.
`SEC. 1536. SUPPLEMENTAL AUTHORITY
OF THE SECRETARY.
`The authority of the Secretary
under this subtitle to assist councils in the development and implementation
of area plans shall be supplemental to, and not in lieu of, any authority
of the Secretary under any other provision of law.
`SEC. 1537. AUTHORIZATION OF
APPROPRIATIONS.
`(a) IN GENERAL- There are
authorized to be such sums as are necessary to carry out this subtitle.
`(b) LOANS- The Secretary
shall not use more than $15,000,000 of any funds made available for a fiscal
year to make loans under this subtitle.
`(c) AVAILABILITY- Funds
appropriated to carry out this subtitle shall remain available until expended.'.
SEC. 216. WILDLIFE HABITAT INCENTIVE
PROGRAM.
(a) IN GENERAL- Chapter
5 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3839bb et seq.) is amended to read as follows:
`CHAPTER 5--OTHER CONSERVATION
PROGRAMS
`SEC. 1240M. WILDLIFE HABITAT
INCENTIVE PROGRAM.
`(a) DEFINITIONS- In this
section:
`(1) ENDANGERED SPECIES-
The term `endangered species' has the meaning given the term in section
3 of the Endangered Species Act of 1973 (16 U.S.C. 1532).
`(2) PROGRAM- The term `program'
means the wildlife habitat incentive program established under subsection
(b).
`(3) THREATENED SPECIES-
The term `threatened species' has the meaning given the term in section
3 of the Endangered Species Act of 1973 (16 U.S.C. 1532).
`(b) ESTABLISHMENT- In consultation
with the State technical committees established under section 1261 of the
Food Security Act of 1985 (16 U.S.C. 3861), the Secretary shall establish
the wildlife habitat incentive program.
`(c) COST-SHARE PAYMENTS-
`(1) IN GENERAL- Under the
program, the Secretary shall make cost-share payments to owners of eligible
land to develop wildlife habitat approved by the Secretary.
`(2) ENDANGERED AND THREATENED
SPECIES- Of the funds made available to carry out this subsection, the
Secretary shall use at least 15 percent to make cost-share payments to
carry out projects and activities relating to endangered species and threatened
species.
`(d) PILOT PROGRAM FOR ESSENTIAL
PLANT AND ANIMAL HABITAT- Under the program, the Secretary may establish
procedures to use not more than 15 percent of funds made available to acquire
and enroll eligible land for periods of at least 15 years to protect essential
(as determined by the Secretary) plant and animal habitat.
`(e) FUNDING- Of the funds
of the Commodity Credit Corporation, the Secretary shall use to carry out
this section (including the provision of technical assistance)--
`(1) $50,000,000 for fiscal
year 2002;
`(2) $100,000,000 for each
of fiscal years 2003 and 2004; and
`(3) $125,000,000 for each
of fiscal years 2005 and 2006.
`SEC. 1240N. WATERSHED RISK
REDUCTION.
`(a) IN GENERAL- The Secretary,
acting through the Natural Resources Conservation Service (referred to
in this section as the `Secretary'), in cooperation with landowners and
land users, may carry out such projects and activities (including the purchase
of floodplain easements for runoff retardation and soil erosion prevention)
as the Secretary determines to be necessary to safeguard lives and property
from floods, drought, and the products of erosion on any watershed in any
case in which fire, flood, or any other natural occurrence has caused,
is causing, or may cause a sudden impairment of that watershed.
`(b) PRIORITY- In carrying
out this section, the Secretary shall give priority to any project or activity
described in subsection (a) that is carried out on a floodplain adjacent
to a major river, as determined by the Secretary.
`(c) PROHIBITION ON DUPLICATIVE
FUNDS- No project or activity under subsection (a) that is carried out
using funds made available under this section may be carried out using
funds made available under any Federal disaster relief program administered
by the Secretary relating to floods.
`(d) FUNDING- There is authorized
to be appropriated to carry out this section $15,000,000 for each of fiscal
years 2002 through 2006.
`SEC. 1240O. GREAT LAKES BASIN
PROGRAM FOR SOIL EROSION AND SEDIMENT CONTROL.
`(a) IN GENERAL- The Secretary,
in consultation with the Great Lakes Commission created by Article IV of
the Great Lakes Basin Compact (82 Stat. 415) and in cooperation with the
Administrator of the Environmental Protection Agency and the Secretary
of the Army, may carry out the Great Lakes basin program for soil erosion
and sediment control (referred to in this section as the `program').
`(b) ASSISTANCE- In carrying
out the program, the Secretary may--
`(1) provide project demonstration
grants, provide technical assistance, and carry out information and education
programs to improve water quality in the Great Lakes basin by reducing
soil erosion and improving sediment control; and
`(2) provide a priority
for projects and activities that directly reduce soil erosion or improve
sediment control.
`(c) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this section $5,000,000
for each of fiscal years 2002 through 2006.
`SEC. 1240P. CONSERVATION OF
PRIVATE GRAZING LAND.
`(a) FINDINGS- Congress
finds that--
`(1) private grazing land
constitutes nearly 1/2 of the non-Federal land of the United States and
is basic to the environmental, social, and economic stability of rural
communities;
`(2) private grazing land
contains a complex set of interactions among soil, water, air, plants,
and animals;
`(3) grazing land constitutes
the single largest watershed cover type in the United States and contributes
significantly to the quality and quantity of water available for all of
the many uses of the land;
`(4) private grazing land
constitutes the most extensive wildlife habitat in the United States;
`(5) private grazing land
can provide opportunities for improved nutrient management from land application
of animal manures and other by-product nutrient resources;
`(6) owners and managers
of private grazing land need to continue to recognize conservation problems
when the problems arise and receive sound technical assistance to improve
or conserve grazing land resources to meet ecological and economic demands;
`(7) new science and technology
must continually be made available in a practical manner so owners and
managers of private grazing land may make informed decisions concerning
vital grazing land resources;
`(8) agencies of the Department
with private grazing land responsibilities are the agencies that have the
expertise and experience to provide technical assistance, education, and
research to owners and managers of private grazing land for the long-term
productivity and ecological health of grazing land;
`(9) although competing
demands on private grazing land resources are greater than ever before,
assistance to private owners and managers of private grazing land is limited
and does not meet the demand and basic need for adequately sustaining or
enhancing the private grazing land resources; and
`(10) private grazing land
can be enhanced to provide many benefits to all citizens of the United
States through voluntary cooperation among owners and managers of the land,
local conservation districts, and the agencies of the Department responsible
for providing assistance to owners and managers of land and to conservation
districts.
`(b) PURPOSE- The purpose
of this section is to authorize the Secretary to provide a coordinated
technical, educational, and related assistance program to conserve and
enhance private grazing land resources and provide related benefits to
all citizens of the United States by--
`(1) establishing a coordinated
and cooperative Federal, State, and local grazing conservation program
for management of private grazing land;
`(2) strengthening technical,
educational, and related assistance programs that provide assistance to
owners and managers of private grazing land;
`(3) conserving and improving
wildlife habitat on private grazing land;
`(4) conserving and improving
fish habitat and aquatic systems through grazing land conservation treatment;
`(5) protecting and improving
water quality;
`(6) improving the dependability
and consistency of water supplies;
`(7) identifying and managing
weed, noxious weed, and brush encroachment problems on private grazing
land; and
`(8) integrating conservation
planning and management decisions by owners and managers of private grazing
land, on a voluntary basis.
`(c) DEFINITION OF PRIVATE
GRAZING LAND- In this section, the term `private grazing land land' means
rangeland, pastureland, grazed forest land, hay land, and any other non-federally
owned land that is--
`(2) owned by a State; or
`(3) under the jurisdiction
of an Indian tribe .
`(d) PRIVATE GRAZING LAND
CONSERVATION ASSISTANCE-
`(1) IN GENERAL- Subject
to the availability of appropriations for this section, the Secretary shall
establish a voluntary program to provide technical, educational, and related
assistance to owners and managers of private grazing land and public agencies,
through local conservation districts, to enable the landowners, managers,
and public agencies to voluntarily carry out activities that are consistent
with this section, including--
`(A) maintaining and improving
private grazing land and the multiple values and uses that depend on private
grazing land;
`(B) implementing grazing
land management technologies;
`(C) managing resources
on private grazing land, including--
`(i) planning, managing,
and treating private grazing land resources;
`(ii) ensuring the long-term
sustainability of private grazing land resources;
`(iii) harvesting, processing,
and marketing private grazing land resources; and
`(iv) identifying and managing
weed, noxious weed, and brush encroachment problems;
`(D) protecting and improving
the quality and quantity of water yields from private grazing land;
`(E) maintaining and improving
wildlife and fish habitat on private grazing land;
`(F) enhancing recreational
opportunities on private grazing land;
`(G) maintaining and improving
the aesthetic character of private grazing land; and
`(H) identifying the opportunities
and encouraging the diversification of private grazing land enterprises.
`(A) FUNDING- Funds may
be used to carry out this section only if the funds are provided through
a specific line-item in the annual appropriations for the Natural Resources
Conservation Service.
`(B) TECHNICAL ASSISTANCE
AND EDUCATION- Personnel of the Department of Agriculture trained in pasture
and range management shall be made available under the program to deliver
and coordinate technical assistance and education to owners and managers
of private grazing land, at the request of the owners and managers.
`(e) GRAZING TECHNICAL ASSISTANCE
SELF-HELP-
`(1) FINDINGS- Congress
finds that--
`(A) there is a severe lack
of technical assistance for farmers and ranchers that graze livestock;
`(B) Federal budgetary constraints
preclude any significant expansion, and may force a reduction of, levels
of technical support; and
`(C) farmers and ranchers
have a history of cooperatively working together to address common needs
in the promotion of their products and in the drainage of wet areas through
drainage districts.
`(2) ESTABLISHMENT OF GRAZING
DEMONSTRATION DISTRICTS- In accordance with paragraph (2), the Secretary
may establish 2 grazing management demonstration districts on the recommendation
of the grazing land conservation initiative steering committee.
`(A) PROPOSAL- Within a
reasonable time after the submission of a proposal of an organization of
farmers or ranchers engaged in grazing in a district, subject to subparagraphs
(B) through (F), the Secretary establish a grazing management district
in accordance with the proposal.
`(B) FUNDING- The terms
and conditions of the funding and operation of the grazing management district
shall be proposed by the farmers and ranchers engaged in grazing in the
district.
`(C) APPROVAL- The Secretary
shall approve the proposal if the Secretary determines that the proposal--
`(ii) will promote sound
grazing practices; and
`(iii) contains provisions
similar to the provisions contained in the beef promotion and research
order issued under section 4 of the Beef Research and Information Act (7
U.S.C. 2903) in effect on April 4, 1996.
`(D) AREA INCLUDED- The
area proposed to be included in a grazing management district shall be
determined by the Secretary on the basis of the proposal submitted by farmers
or ranchers under subparagraph (A).
`(E) AUTHORIZATION- The
Secretary may use authority under the Agricultural Adjustment Act (7 U.S.C.
601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement
Act of 1937, to operate, on a demonstration basis, a grazing management
district.
`(F) ACTIVITIES- The activities
of a grazing management district shall be scientifically sound activities,
as determined by the Secretary in consultation with a technical advisory
committee composed of farmers, ranchers, and technical experts.
`(f) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this section $60,000,000
for each of fiscal years 2002 through 2006.'.
(b) CONFORMING AMENDMENT-
Section 386 of the Federal Agriculture Improvement and Reform Act of 1996
(16 U.S.C. 2005b) is repealed.
SEC. 217. FARMLAND PROTECTION
PROGRAM.
(a) IN GENERAL- Chapter
2 of the Food Security Act of 1985 (as added by section 201) is amended
by adding at the end the following:
`Subchapter B--Farmland Protection
Program
`SEC. 1238H. DEFINITIONS.
`(A) IN GENERAL- The term
`eligible land' means land on a farm or ranch that--
`(i)(I) has prime, unique,
or other productive soil; or
`(II) contains historical
or archaeological resources; and
`(ii) is subject to a pending
offer for purchase from--
`(I) any agency of any State
or local government or an Indian tribe (including a farmland protection
board or land resource council established under State law); or
`(II) any organization that--
`(aa) 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 clause
(i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue Code
of 1986;
`(bb) is an organization
described in section 501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code; or
`(cc) is described
in section 509(a)(3), and is controlled by an organization described in
section 509(a)(2), of that Code.
`(B) INCLUSIONS- The term
`eligible land' includes--
`(iii) forest land that
is part of an agricultural operation, as determined by the Secretary.
`(2) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b).
`(3) PROGRAM- The term `program'
means the farmland protection program established under section 1238I(a).
`SEC. 1238I. FARMLAND PROTECTION.
`(a) IN GENERAL- The Secretary
shall establish and carry out a farmland protection program under which
the Secretary shall purchase conservation easements or other interests
in eligible land for the purpose of protecting topsoil by limiting nonagricultural
uses of the land.
`(b) CONSERVATION PLAN-
Any highly erodible cropland for which a conservation easement or other
interest is purchased under this subchapter shall be subject to the requirements
of a conservation plan that requires, at the option of the Secretary, the
conversion of the cropland to less intensive uses.
`SEC. 1238J. MARKET VIABILITY
PROGRAM.
`For each year for which
funds are made available to carry out this subchapter, the Secretary may
use not more than $10,000,000 to provide matching market viability grants
and technical assistance to farm and ranch operators that participate in
the program.'.
(b) FUNDING- Section 1241
of the Food Security Act of 1985 (16 U.S.C. 3841) (as amended by section
202) is amended by adding at the end the following:
`(d) FARMLAND PROTECTION
PROGRAM-
`(1) IN GENERAL- Of the
funds of the Commodity Credit Corporation, the Secretary shall use to carry
out subchapter B of chapter 2 (including the provision of technical assistance)--
`(A) $150,000,000 for fiscal
year 2002;
`(B) $200,000,000 for each
of fiscal years 2003 and 2004;
`(C) $225,000,000 for fiscal
year 2005; and
`(D) $250,000,000 for fiscal
year 2006.
`(A) FARMLAND PROTECTION-
`(i) IN GENERAL- The share
of the cost of purchasing a conservation easement or other interest described
in section 1238I(a) provided under this subsection shall not exceed 50
percent.
`(ii) STATE AND LOCAL CONTRIBUTIONS-
In a case in which a State or local government purchases an easement under
section 1238I(a), not more than 25 percent of the share of the cost of
the easement contributed by the State or local government may be provided--
`(I) by a private landowner;
or
`(II) in the form of in-kind
goods or services.
`(B) MARKET VIABILITY CONTRIBUTIONS-
As a condition of receiving a grant under section 1238J(a), a grantee shall
provide funds in an amount equal to the amount of the grant.'.
(c) CONFORMING AMENDMENT-
(1) IN GENERAL- Section
388 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
3830 note) is repealed.
(2) EFFECT ON CONTRACTS-
The amendment made by paragraph (1) shall have no effect on any contract
entered into under section 388 of the Federal Agriculture Improvement and
Reform Act of 1996 (16 U.S.C. 3830 note) that is in effect as of the date
of enactment of this Act.
SEC. 218. GRASSLAND RESERVE
PROGRAM.
Chapter 2 of the Food Security
Act of 1985 (as amended by section 218) is amended by adding at the end
the following:
`Subchapter D--Grassland
Reserve Program
`SEC. 1238N. GRASSLAND RESERVE
PROGRAM.
`(a) ESTABLISHMENT- The
Secretary, acting through the Natural Resource Conservation Service, shall
establish a grassland reserve program (referred to in this subchapter as
the `program') to assist owners in restoring and protecting eligible land
described in subsection (c).
`(b) ENROLLMENT CONDITIONS-
`(1) IN GENERAL- The Secretary
shall enroll in the program, from willing owners, not less than--
`(A) 100 contiguous acres
of land west of the 98th meridian; or
`(B) 40 contiguous acres
of land east of the 98th meridian.
`(2) MAXIMUM ENROLLMENT-
The total number of acres enrolled in the program shall not exceed 2,000,000
acres, of which not more than 500,000 acres shall be reserved for enrollment
of tracts of native grassland of 40 acres or less.
`(3) METHODS OF ENROLLMENT-
The Secretary shall enroll land in the program through--
`(A) permanent easements
or 30-year easements;
`(B) in a State that imposes
a maximum duration for such an easement, an easement for the maximum duration
allowed under State law; or
`(C) a 30-year rental agreement.
`(c) ELIGIBLE LAND- Land
shall be eligible to be enrolled in the program if the Secretary determines
that the land is private land that is--
`(1) natural grassland (including
prairie and land that contains shrubs or forb) that is indigenous to the
locality;
`(A) is located in an area
that has been historically dominated by natural grassland; and
`(B) has potential to serve
as habitat for animal or plant populations of significant ecological value
if the land is restored to a natural condition; or
`(3) land that is incidental
to land described in paragraph (1) or (2), if the incidental land is determined
by the Secretary to be necessary for the efficient administration of an
easement.
`SEC. 1238O. EASEMENTS AND AGREEMENTS.
`(a) IN GENERAL- To be eligible
to enroll land in the program, the owner of the land shall enter into an
agreement with the Secretary--
`(1) to grant an easement
that applies to the land to the Secretary;
`(2) to create and record
an appropriate deed restriction in accordance with applicable State law
to reflect the easement;
`(3) to provide a written
statement of consent to the easement signed by persons holding a security
interest or any vested interest in the land;
`(4) to provide proof of
unencumbered title to the underlying fee interest in the land that is the
subject of the easement; and
`(5) to comply with the
terms of the easement and restoration agreement.
`(b) TERMS OF EASEMENT-
An easement under subsection (a) shall--
`(A) grazing on the land
in a manner that is consistent with maintaining the viability of natural
grass, shrub, forb, and wildlife species indigenous to that locality;
`(B) haying (including haying
for seed production) or mowing, except during the nesting and brood-rearing
seasons for birds in the area that are in significant decline, as determined
by the Natural Resources Conservation Service State conservationist, or
are protected Federal or State law; and
`(C) fire rehabilitation,
construction of fire breaks, and fences (including placement of the posts
necessary for fences);
`(A) the production of row
crops, fruit trees, vineyards, or any other agricultural commodity that
requires breaking the soil surface; and
`(B) except as permitted
under paragraph (1)(C), the conduct of any other activities that would
disturb the surface of the land covered by the easement, including--
`(3) include such additional
provisions as the Secretary determines are appropriate to carry out this
subchapter or to facilitate the administration of this subchapter.
`(c) EVALUATION AND RANKING
OF EASEMENT APPLICATIONS-
`(1) IN GENERAL- The Secretary,
in conjunction with State technical committees, shall establish criteria
to evaluate and rank applications for easements under this subchapter.
`(2) CRITERIA- In establishing
the criteria, the Secretary shall emphasize support for grazing operations,
plant and animal biodiversity, and grassland and land containing shrubs
or forb under the greatest threat of conversion.
`(d) RESTORATION AGREEMENTS-
`(1) IN GENERAL- The Secretary
shall prescribe the terms by which grassland and shrubland subject to an
easement under an agreement entered into under the program shall be restored.
`(2) REQUIREMENTS- The restoration
agreement shall describe the respective duties of the owner and the Secretary
(including paying the share of the cost of restoration provided by the
Secretary and the provision of technical assistance).
`(1) IN GENERAL- On the
violation of the terms or conditions of an easement or restoration agreement
entered into under this section--
`(A) the easement shall
remain in force; and
`(B) the Secretary may require
the owner to refund all or part of any payments received by the owner under
this subchapter, with interest on the payments as determined appropriate
by the Secretary.
`(2) PERIODIC INSPECTIONS-
`(A) IN GENERAL- After providing
notice to the owner, the Secretary shall conduct periodic inspections of
land subject to easements under this subchapter to ensure compliance with
the terms of the easement and restoration agreement.
`(B) LIMITATION- The Secretary
may not prohibit the owner, or a representative of the owner, from being
present during a periodic inspection.
`SEC. 1238P. DUTIES OF SECRETARY.
`(a) IN GENERAL- In return
for the granting of an easement by an owner under this subchapter, the
Secretary shall, in accordance with this section--
`(1) make easement payments;
`(2) pay a share of the
cost of restoration; and
`(3) provide technical assistance
to the owner.
`(A) AMOUNT- In return for
the granting of an easement by an owner under this subchapter, the Secretary
shall make easement payments to the owner in an amount equal to--
`(i) in the case of a permanent
easement, the fair market value of the land less the grazing value of the
land encumbered by the easement; and
`(ii) in the case of a 30-year
easement or an easement for the maximum duration allowed under applicable
State law, 30 percent of the fair market value of the land less the grazing
value of the land for the period during which the land is encumbered by
the easement.
`(B) SCHEDULE- Easement
payments may be provided in not less than 1 payment nor more than 10 annual
payments of equal or unequal amount, as agreed to by the Secretary and
the owner.
`(2) RENTAL AGREEMENT PAYMENTS-
`(A) AMOUNT- If an owner
enters into a 30-year rental agreement authorized under section 1238N(b)(3)(C),
the Secretary shall make 30 annual rental payments to the owner in an amount
that equals, to the maximum extent practicable, the 30-year easement payment
amount under paragraph (1)(A)(ii).
`(B) ASSESSMENT- Not less
than once every 5 years throughout the 30-year rental period, the Secretary
shall assess whether the value of the rental payments under subparagraph
(A) equals, to the maximum extent practicable, the total amount of 30-year
easement payments as of the date of the assessment.
`(C) ADJUSTMENT- If on completion
of the assessment under subparagraph (B), the Secretary determines that
the rental payments do not equal, to the maximum extent practicable, the
value of payments under a 30-year easement, the Secretary shall adjust
the amount of the remaining payments to equal, to the maximum extent practicable,
the value of a 30-year easement over the entire 30-year rental period.
`(c) COST OF RESTORATION-
The Secretary shall make payments to the owner of not more than 75 percent
of the cost of carrying out measures and practices necessary to restore
grassland and shrubland functions and values.
`(d) TECHNICAL ASSISTANCE-
The Secretary shall provide owners with technical assistance to execute
easement documents and restore the grassland and shrubland.
`(e) PAYMENTS TO OTHERS-
If an owner that is entitled to a payment under this subchapter dies, becomes
incompetent, is otherwise unable to receive the payment, or is succeeded
by another person who renders or completes the required performance, the
Secretary shall make the payment, in accordance with regulations promulgated
by the Secretary and without regard to any other provision of law, in such
manner as the Secretary determines is fair and reasonable in light of all
the circumstances.
`(f) OTHER PAYMENTS- Easement
payments received by an owner under this subchapter shall be in addition
to, and not affect, the total amount of payments that the owner is otherwise
eligible to receive under other Federal laws.
`(g) REGULATIONS- Not later
than 180 days after the date of enactment of this subchapter, the Secretary
shall promulgate such regulations as are necessary to carry out this subchapter.'.
(b) FUNDING- Section 1241
of the Food Security Act of 1985 (16 U.S.C. 3841) (as amended by section
217(b)) is amended by adding at the end the following:
`(e) GRASSLAND RESERVE PROGRAM-
The Secretary shall use such sums of the Commodity Credit Corporation as
are necessary to carry out subchapter D of chapter 2 (including the provision
of technical assistance).'.
SEC. 219. STATE TECHNICAL COMMITTEES.
Subtitle G of title XII
of the Food Security Act of 1985 (16 U.S.C. 3861 et seq.) is amended to
read as follows:
`Subtitle G--State Technical
Committees
`SEC. 1261. ESTABLISHMENT.
`(a) IN GENERAL- The Secretary
shall establish in each State a technical committee to assist the Secretary
in the technical considerations relating to implementation of any private
land conservation program administered by the Secretary.
`(b) STANDARDS- Not later
than 180 days after the date of enactment of the Agriculture, Conservation,
and Rural Enhancement Act of 2001, the Secretary shall develop standards
to be used by each State technical committee in the development of technical
guidelines under section 1262(b) for the implementation of the conservation
programs under this title.
`(c) COMPOSITION- Each State
technical committee established under subsection (a) shall be composed
of professional resource managers that represent a variety of disciplines
in the soil, water, wetland, forest, and wildlife sciences, including representatives
from among--
`(1) the Natural Resources
Conservation Service (a representative of which shall serve as Chair of
the Committee);
`(2) the Farm Service Agency;
`(4) the Extension Service;
`(5) the Fish and Wildlife
Service;
`(6) such State departments
and agencies as the Secretary determines to be appropriate, including--
`(A) a State fish and wildlife
agency;
`(B) a State forester or
equivalent State official;
`(C) a State water resources
agency;
`(D) a State department
of agriculture;
`(E) a State soil conservation
agency;
`(F) a State association
of soil and water conservation districts; and
`(G) land grant colleges
and universities;
`(7) other individuals or
agency personnel with expertise in soil, water, wetland, and wildlife or
forest management as the Secretary determines to be appropriate;
`(8) agricultural producers
with demonstrable conservation expertise;
`(9) nonprofit organizations
with demonstrable conservation or forestry expertise;
`(10) persons knowledgeable
about conservation or forestry techniques; and
`SEC. 1262. RESPONSIBILITIES.
`(A) IN GENERAL- Each State
technical committee established under section 1261 shall meet regularly
to provide information, analyses, and recommendations to the Secretary.
`(B) MANNER; FORM- Information,
analyses, and recommendations described in subparagraph (A) shall--
`(i) be provided in writing,
in a manner that assists the Secretary in determining matters of fact,
technical merit, or scientific question; and
`(ii) reflect the best professional
information and judgment of the committee.
`(2) COORDINATION- The Secretary
shall coordinate activities conducted under this section with activities
conducted under section 1628 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5831).
`(3) PUBLIC PARTICIPATION-
Each State technical committee shall--
`(A) provide public notice
of, and permit public attendance at, meetings considering issues of concern
related to any program under this title; and
`(B) distribute meeting
minutes to each person attending a meeting described in subparagraph (A).
`(4) COMMUNICATION- Each
State conservationist shall communicate regularly with members of the State
technical committee concerning status of action on recommendations of the
committee.
`(b) OTHER DUTIES- Each
State technical committee shall provide assistance and offer recommendations
with respect to the technical aspects of--
`(1) wetland protection,
restoration, and mitigation requirements;
`(2) criteria to be used
in evaluating bids for enrollment of environmentally-sensitive land in
the conservation reserve program established under subchapter B of chapter
1;
`(3) guidelines for haying
or grazing and the control of weeds to protect nesting wildlife on designated
acreage relating to--
`(A) highly erodible land
conservation under subtitle B;
`(B) wetland conservation
under subtitle C; or
`(C) other conservation
requirements
`(4) addressing common weed
and pest problems and programs to control weeds and pests found on acreage
enrolled in the conservation reserve program;
`(5) guidelines for planting
perennial cover for water quality and wildlife habitat improvement on designated
land;
`(6) establishing criteria
and priorities for State initiatives under the environmental quality incentives
program under chapter 4 of subtitle D;
`(7) establishing State
and local conservation priorities under the conservation security program
under subchapter A of chapter 2 of subtitle D;
`(8) establishing and maintaining
natural resource indicators and conservation program monitoring and evaluation
systems;
`(9) developing conservation
program education and outreach activities;
`(10) evaluating innovative
practices and systems under consideration for inclusion in the field office
technical guides; and
`(11) other matters, as
determined to be appropriate by the Secretary.
`(1) IN GENERAL- Each State
technical committee established under section 1261 shall--
`(A) serve in an advisory
capacity; and
`(B) have no implementation
or enforcement authority.
`(2) CONSIDERATION BY SECRETARY-
In carrying out any program under this title, the Secretary shall give
strong consideration to the recommendations of a State technical committee
(including factual, technical, or scientific findings and recommendations
relating to areas in which the State technical committee bears responsibility).
`(d) FACA REQUIREMENTS-
A State technical committee established under section 1261 shall be exempt
from the Federal Advisory Committee Act (5 U.S.C. App.).
`(e) ADVISORY SUBCOMMITTEES-
`(1) IN GENERAL- Any State
or local work group, task force, or other advisory body authorized by any
Federal law (including a regulation) to advise the Secretary on issues
that are within the areas of responsibility of a State technical committee
established under section 1261 shall be considered to be a subcommittee
of the State technical committee.
`(2) COMPOSITION- A person
eligible to serve on a State technical committee under section 1261(c)
shall also be eligible to serve on 1 or more subcommittees of a State technical
committee.
`(3) LOCAL WORKING GROUPS-
A local working group shall be considered to be a subcommittee of a State
technical committee established under section 1261.'.
SEC. 220. USE OF SYMBOLS, SLOGANS,
AND LOGOS.
Section 356 of the Federal
Agriculture Improvement Act of 1996 (16 U.S.C. 5801 et seq.) is amended--
(A) by redesignating paragraphs
(4) through (7) as paragraphs (5) through (8), respectively; and
(B) by inserting after paragraph
(3) the following:
`(4) on the written approval
of the Secretary, to use, license, or transfer symbols, slogans, and logos
of the Department;'; and
(2) in subsection (d), by
adding at the end the following:
`(3) USE OF SYMBOLS, SLOGANS,
AND LOGOS-
`(A) IN GENERAL- The Secretary
may authorize the Foundation to use, license, or transfer symbols, slogans,
and logos of the Department.
`(i) IN GENERAL- All revenue
received by the Foundation from the use, licensing, or transfer of symbols,
slogans, and logos of the Department shall be transferred to the Secretary.
`(ii) CONSERVATION OPERATIONS-
The Secretary shall transfer all revenue received under clause (i) to the
account within the Natural Resources Conservation Service that is used
to carry out conservation operations.'.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
SEC. 301. UNITED STATES POLICY.
Section 2(2) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691(2)) is amended
by inserting before the semicolon at the end the following: `and conflict
prevention'.
SEC. 302. PROVISION OF AGRICULTURAL
COMMODITIES.
Section 202 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) in subsection (b), by
adding at the end the following:
`(3) PROGRAM DIVERSITY-
The Administrator shall--
`(A) encourage eligible
organizations to propose and implement program plans to address 1 or more
aspects of the program under section 201; and
`(B) consider proposals
that incorporate a variety of program objectives and strategic plans based
on the identification by eligible organizations of appropriate activities
to assist development in foreign countries.';
(2) in subsection (e)(1),
by striking `not less than $10,000,000, and not more than $28,000,000,'
and inserting `not less than 5 percent nor more than 10 percent of the
funds'; and
(3) by adding at the end
the following:
`(h) CERTIFIED INSTITUTIONAL
PARTNERS-
`(1) IN GENERAL- The Administrator
or the Secretary, as applicable, shall promulgate regulations and issue
guidelines to permit private voluntary organizations and cooperatives to
be certified as institutional partners.
`(2) REQUIREMENTS- To become
a certified institutional partner, a private voluntary organization or
cooperative shall submit to the Administrator a certification of organizational
capacity that describes--
`(A) the financial, programmatic,
commodity management, and auditing abilities and practices of the organization
or cooperative; and
`(B) the capacity of the
organization or cooperative to carry out projects in particular countries.
`(3) MULTI-COUNTRY PROPOSALS-
A certified institutional partner shall be eligible to--
`(A) submit a single proposal
for 1 or more countries that are the same as, or similar to, those countries
in which the certified institutional partner has already demonstrated organizational
capacity;
`(B) receive expedited review
and approval of the proposal; and
`(C) receive commodities
and assistance under this section for use in 1 or more countries.'.
SEC. 303. GENERATION AND USE
OF CURRENCIES BY PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES.
Section 203 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) is amended--
(1) in the section heading,
by striking `foreign';
(2) in subsection (a), by
striking `the recipient country, or in a country' and inserting `1 or more
recipient countries, or 1 or more countries';
(A) by striking `in recipient
countries, or in countries' and inserting `1 or more recipient countries,
or in 1 or more countries'; and
(B) by striking `foreign
currency';
(A) by striking `foreign
currency'; and
(B) by striking `the recipient
country, or in a country' and inserting `1 or more recipient countries,
or in 1 or more countries'; and
(A) by striking `Foreign
currencies' and inserting `Proceeds';
(i) by striking `income
generating' and inserting `income-generating'; and
(ii) by striking `the recipient
country or within a country' and inserting `1 or more recipient countries
or within 1 or more countries'; and
(i) by inserting a comma
after `invested'; and
(ii) by inserting a comma
after `used'.
SEC. 304. LEVELS OF ASSISTANCE.
Section 204 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1724) is amended--
(A) in paragraph (1), by
striking `that for each of fiscal years 1996 through 2002 is not less than
2,025,000 metric tons.' and inserting `that is not less than--
`(A) 2,100,000 metric tons
for fiscal year 2002;
`(B) 2,200,000 metric tons
for fiscal year 2003;
`(C) 2,300,000 metric tons
for fiscal year 2004;
`(D) 2,400,000 metric tons
for fiscal year 2005; and
`(E) 2,500,000 metric tons
for fiscal year 2006.'; and
(B) in paragraph (2), by
striking `1996 through 2002' and inserting `2002 through 2006'; and
(2) in subsection (b)(1),
by inserting `(including crude degummed soybean oil)' after `bagged commodities'.
SEC. 305. FOOD AID CONSULTATIVE
GROUP.
Section 205 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by
inserting `, policies, guidelines,' after `regulations';
(2) in subsection (d), by
inserting `policies,' after `regulations,' each place it appears; and
(3) in subsection (f), by
striking `2002' and inserting `2006'.
SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.
Section 206(a) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726(a)) is amended
by striking `$1,000,000,000' and inserting `$2,000,000,000'.
SEC. 307. ADMINISTRATION.
Section 207 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
(A) by redesignating paragraph
(2) as paragraph (3); and
(B) by striking paragraph
(1) and inserting the following:
`(1) RECIPIENT COUNTRIES-
A proposal to enter into a nonemergency food assistance agreement under
this title shall identify the recipient country or countries that are the
subject of the agreement.
`(2) TIMING- Not later than
120 days after the date of submission to the Administrator of a proposal
submitted by an eligible organization under this title, the Administrator
shall determine whether to accept the proposal.';
(2) in subsection (b), by
striking `guideline' each place it appears and inserting `guideline or
policy determination';
(3) in subsection (d), by
striking `a United States field mission' and inserting `an eligible organization
with an approved program under this title'; and
(4) by adding at the end
the following:
`(1) IN GENERAL- The Administrator
shall finalize program agreements and resource requests for programs under
this section before the beginning of each fiscal year.
`(2) REPORT- Not later than
December 1 of each year, the Administrator shall submit to the Committee
on Agriculture and the Committee on International Relations of the House
of Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that contains--
`(A) a list of programs,
countries, and commodities approved to date for assistance under this section;
and
`(B) a statement of the
total amount of funds approved to date for transportation and administrative
costs under this section.
`(f) DIRECT DELIVERY- In
addition to practices in effect on the date of enactment of this subsection,
the Secretary may approve an agreement that provides for direct delivery
of agricultural commodities to milling or processing facilities more than
50 percent of the interest in which is owned by United States citizens
in foreign countries, with the proceeds of transactions transferred in
cash to eligible organizations described in section 202(d) to carry out
approved projects.'.
SEC. 308. ASSISTANCE FOR STOCKPILING
AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended
by striking `and 2002' and inserting `through 2006'.
SEC. 309. SALE PROCEDURE.
Section 403 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1733) is amended
by adding at the end the following:
`(1) IN GENERAL- Subsection
(b) shall apply to sales of commodities in recipient countries to generate
proceeds to carry out projects under--
`(A) section 416(b) of the
Agricultural Act of 1949 (7 U.S.C. 1431(b)); and
`(B) title VIII of the Agricultural
Trade Act of 1978.
`(2) CURRENCIES- Sales of
commodities described in paragraph (1) may be in United States dollars
or in a different currency.
`(3) SALE PRICE- Sales of
commodities described in paragraph (1) shall be made at a reasonable market
price in the economy where the commodity is to be sold, as determined by
the Secretary or the Administrator, as appropriate.'.
SEC. 310. PREPOSITIONING.
Section 407(c)(4) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4))
is amended by striking `and 2002' and inserting `through 2006'.
SEC. 311. EXPIRATION DATE.
Section 408 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking `2002' and inserting `2006'.
SEC. 312. MICRONUTRIENT FORTIFICATION
PROGRAM.
Section 415 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended--
(A) in the first sentence,
by striking `a micronutrient fortification pilot program' and inserting
`micronutrient fortification programs'; and
(B) in the second sentence--
(i) by striking `the program'
and inserting `a program';
(ii) in paragraph (1), by
striking `and' at the end;
(I) by striking `whole';
and
(II) by striking the period
at the end and inserting `; and'; and
(iv) by adding at the end
the following:
`(3) encourage technologies
and systems for the improved quality and safety of fortified grains and
other commodities that are readily transferable to developing countries.';
(2) in the first sentence
of subsection (c)--
(A) by striking `the pilot
program, whole' and inserting `a program,';
(B) by striking `the pilot
program may' and inserting `a program may'; and
(C) by striking `including'
and inserting `such as'; and
(3) in subsection (d), by
striking `2002' and inserting `2006'.
SEC. 313. FARMER-TO-FARMER PROGRAM.
Section 501(c) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--
(1) by striking `0.4' and
inserting `0.5,'; and
(2) by striking `2002' and
inserting `2006'.
Subtitle B--Agricultural Trade
Act of 1978
SEC. 321. EXPORT CREDIT GUARANTEE
PROGRAM.
(a) TERM OF SUPPLIER CREDIT
PROGRAM- Section 202(a)(2) of the Agricultural Trade Act of 1978 (7 U.S.C.
5622(a)(2)) is amended by striking `180' and inserting `360'.
(b) PROCESSED AND HIGH-VALUE
PRODUCTS- Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5622(k)(1)) is amended by striking `, 2001, and 2002' and inserting `through
2006'.
(c) REPORT- Section 202
of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended by adding
at the end the following:
`(l) REPORT ON AGRICULTURAL
EXPORT CREDIT PROGRAMS-
`(1) IN GENERAL- Not later
than 1 year after the date of enactment of this subsection, and annually
thereafter, the Secretary shall submit to the Committee on Agriculture
and the Committee on International Relations of the House of Representatives
and the Committee on Agriculture, Nutrition and Forestry of the Senate
a report on the status of multilateral negotiations regarding agricultural
export credit programs at the World Trade Organization and the Organization
of Economic Cooperation and Development in fulfillment of Article 10.2
of the Agreement on Agriculture (as described in section 101(d)(2) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2))).
`(2) CLASSIFIED INFORMATION-
The report under paragraph (1) shall be submitted in unclassified form,
but may contain a classified annex.'.
(d) REAUTHORIZATION- Section
211(b)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is
amended by striking `2002' and inserting `2006'.
SEC. 322. MARKET ACCESS PROGRAM.
(a) IN GENERAL- Section
211(c) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)) is amended--
(1) by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;
(2) by striking `The Commodity'
and inserting the following:
`(1) IN GENERAL- The Commodity';
(3) by striking subparagraph
(A) (as so redesignated) and inserting the following:
`(A) in addition to any
funds that may be specifically appropriated to implement a market access
program, not more than $100,000,000 for fiscal year 2002, $120,000,000
for fiscal year 2003, $140,000,000 for fiscal year 2004, $160,000,000 for
fiscal year 2005, and $190,000,000 for fiscal year 2006, of the funds of,
or an equal value of commodities owned by, the Commodity Credit Corporation,
except that this paragraph shall not apply to section 203(h); and'; and
(4) by adding at the end
the following:
`(2) PROGRAM PRIORITIES-
Of funds made available under paragraph (1)(A) in excess of $90,000,000
for any fiscal year, priority shall be given to proposals--
`(A) made by eligible trade
organizations that have never participated in the market access program
under this title; or
`(B) for market access programs
in emerging markets.'.
(b) UNITED STATES QUALITY
EXPORT INITIATIVE-
(1) FINDINGS- Congress finds
that--
(A) the market access program
established under section 203 of the Agricultural Trade Act of 1978 (7
U.S.C. 5623) and foreign market development cooperator program established
under title VII of that Act (7 U.S.C. 7251 et seq.) target generic and
value-added agricultural products, with little emphasis on the high quality
of United States agricultural products; and
(B) new promotional tools
are needed to enable United States agricultural products to compete in
higher margin, international markets on the basis of quality.
(2) INITIATIVE- Section
203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) is amended by
adding at the end the following:
`(h) UNITED STATES QUALITY
EXPORT INITIATIVE-
`(1) IN GENERAL- Subject
to the availability of appropriations, using the authorities under this
section, the Secretary shall establish a program under which, on a competitive
basis, using practical and objective criteria, several agricultural products
are selected to carry the `U.S. Quality' seal.
`(2) PROMOTIONAL ACTIVITIES-
Agricultural products selected under paragraph (1) shall be promoted using
the `U.S. Quality' seal at trade fairs in key markets through electronic
and print media.
`(3) AUTHORIZATION OF APPROPRIATIONS-
There are authorized to be appropriated such sums as are necessary to carry
out this subsection.'.
SEC. 323. EXPORT ENHANCEMENT
PROGRAM.
(a) IN GENERAL- Section
301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G))
is amended by striking `fiscal year 2002' and inserting `each of fiscal
years 2002 through 2006'.
(b) UNFAIR TRADE PRACTICES-
Section 102(5)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A))
is amended--
(1) in clause (i), by striking
`or' at the end;
(2) in clause (ii), by striking
the period at the end and inserting `, including, in the case of a state
trading enterprise engaged in the export of an agricultural commodity,
pricing practices that are not consistent with sound commercial practices
conducted in the ordinary course of trade; or'; and
(3) by adding at the end
the following:
`(iii) changes United States
export terms of trade through a deliberate change in the dollar exchange
rate of a competing exporter.'.
SEC. 324. FOREIGN MARKET DEVELOPMENT
COOPERATOR PROGRAM.
Section 703 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5723) is amended to read as follows:
`SEC. 703. FUNDING.
`(a) IN GENERAL- To carry
out this title, the Secretary shall use funds of the Commodity Credit Corporation,
or commodities of the Commodity Credit Corporation of a comparable value,
in the following amounts:
`(1) For fiscal year 2002,
$37,500,000.
`(2) For fiscal year 2003,
$40,000,000.
`(3) For fiscal year 2004
and each subsequent fiscal year, $42,500,000.
`(b) PROGRAM PRIORITIES-
Of funds or commodities provided under subsection (a) in excess of $35,000,000
for any fiscal year, priority shall be given to proposals--
`(1) made by eligible trade
organizations that have never participated in the program established under
this title; or
`(2) for programs established
under this title in emerging markets.'.
SEC. 325. FOOD FOR PROGRESS
AND EDUCATION PROGRAMS.
(a) IN GENERAL- The Agricultural
Trade Act of 1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end
the following:
`TITLE VIII--FOOD FOR PROGRESS
AND EDUCATION PROGRAMS
`SEC. 801. DEFINITIONS.
`(1) COOPERATIVE- The term
`cooperative' means a private sector organization the members of which--
`(A) own and control the
organization;
`(B) share in the profits
of the organization; and
`(C) are provided services
(such as business services and outreach in cooperative development) by
the organization.
`(2) CORPORATION- The term
`Corporation' means the Commodity Credit Corporation.
`(3) DEVELOPING COUNTRY-
The term `developing country' means a foreign country that has--
`(A) a shortage of foreign
exchange earnings; and
`(B) difficulty meeting
all of the food needs of the country through commercial channels and domestic
production.
`(4) ELIGIBLE COMMODITY-
The term `eligible commodity' means an agricultural commodity (including
vitamins and minerals) acquired by the Secretary or the Corporation for
disposition in a program authorized under this title through--
`(A) commercial purchases;
or
`(B) inventories of the
Corporation.
`(5) ELIGIBLE ORGANIZATION-
The term `eligible organization' means a private voluntary organization,
cooperative, nongovernmental organization, or foreign country, as determined
by the Secretary.
`(6) EMERGING AGRICULTURAL
COUNTRY- The term `emerging agricultural country' means a foreign country
that--
`(A) is an emerging democracy;
and
`(B) has made a commitment
to introduce or expand free enterprise elements in the agricultural economy
of the country.
`(7) FOOD SECURITY- The
term `food security' means access by all people at all times to sufficient
food and nutrition for a healthy and productive life.
`(8) NONGOVERNMENTAL ORGANIZATION-
`(A) IN GENERAL- The term
`nongovernmental organization' means an organization that operates on a
local level to solve development problems in a foreign country in which
the organization is located.
`(B) EXCLUSION- The term
`nongovernmental organization' does not include an organization that is
primarily an agency or instrumentality of the government of a foreign country.
`(9) PRIVATE VOLUNTARY ORGANIZATION-
The term `private voluntary organization' means a nonprofit, nongovernmental
organization that--
`(i) funds from private
sources; and
`(ii) voluntary contributions
of funds, staff time, or in-kind support from the public;
`(B) is engaged in or is
planning to engage in nonreligious voluntary, charitable, or development
assistance activities; and
`(C) in the case of an organization
that is organized under the laws of the United States or a State, is an
organization described in section 501(c)(3) of the Internal Revenue Code
of 1986 that is exempt from taxation under section 501(a) of that Code.
`(10) PROGRAM- The term
`program' means a food or nutrition assistance or development initiative
proposed by an eligible organization and approved by the Secretary under
this title.
`(11) RECIPIENT COUNTRY-
The term `recipient country' means an emerging agricultural country that
receives assistance under a program.
`SEC. 802. FOOD FOR PROGRESS
AND EDUCATION PROGRAMS.
`(a) IN GENERAL- To provide
agricultural commodities to support the introduction or expansion of free
trade enterprises in national economies in recipient countries, and to
provide food or nutrition assistance in recipient countries, the Secretary
shall establish food for progress and education programs under which the
Secretary may enter into agreements (including multiyear agreements and
for programs in more than 1 country) with--
`(1) the governments of
emerging agricultural countries;
`(2) private voluntary organizations;
`(3) nonprofit agricultural
organizations and cooperatives;
`(4) nongovernmental organizations;
and
`(5) other private entities.
`(b) CONSIDERATIONS- In
determining whether to enter into an agreement to establish a program under
subsection (a), the Secretary shall take into consideration whether an
emerging agricultural country is committed to carrying out, or is carrying
out, policies that promote--
`(2) private production
of food commodities for domestic consumption; and
`(3) the creation and expansion
of efficient domestic markets for the purchase and sale of those commodities.
`(c) INTERNATIONAL FOOD
FOR EDUCATION AND NUTRITION PROGRAM-
`(1) IN GENERAL- In cooperation
with other countries, the Secretary shall establish an initiative within
the food for progress and education programs under this title to be known
as the `International Food for Education and Nutrition Program', through
which the Secretary may provide to eligible organizations agricultural
commodities and technical and nutritional assistance in connection with
education programs to improve food security and enhance educational opportunities
for preschool age and primary school age children in recipient countries.
`(2) AGREEMENTS- In carrying
out this subsection, the Secretary--
`(A) shall administer the
programs under this subsection in manner that is consistent with this title;
and
`(B) may enter into agreements
with eligible organizations--
`(i) to purchase, acquire,
and donate eligible commodities to eligible organizations to carry out
agreements in recipient countries; and
`(ii) to provide technical
and nutritional assistance to carry out agreements in recipient countries.