H.R. 1947 — what changed

“B Conservation stewardship program

“1238D. Definitions

“In this subchapter:

“(1) Agricultural operation—The term agricultural operation means all eligible land, whether or not contiguous, that is—

“(A) under the effective control of a producer at the time the producer enters into a contract under the program; and

“(B) operated with equipment, labor, management, and production or cultivation practices that are substantially separate from other agricultural operations, as determined by the Secretary.

“(2) Conservation activities

“(A) In general—The term conservation activities means conservation systems, practices, or management measures.

“(B) Inclusions—The term conservation activities includes—

“(i) structural measures, vegetative measures, and land management measures, including agriculture drainage management systems, as determined by the Secretary; and

“(ii) planning needed to address a priority resource concern.

“(3) Conservation stewardship plan—The term conservation stewardship plan means a plan that—

“(A) identifies and inventories priority resource concerns;

“(B) establishes benchmark data and conservation objectives;

“(C) describes conservation activities to be implemented, managed, or improved; and

“(D) includes a schedule and evaluation plan for the planning, installation, and management of the new and existing conservation activities.

“(4) Eligible land

“(A) In general—The term eligible land means—

“(i) private or tribal land on which agricultural commodities, livestock, or forest-related products are produced; and

“(ii) lands associated with the land described in clause (i) on which priority resource concerns could be addressed through a contract under the program.

“(B) Inclusions—The term eligible land includes—

“(i) cropland;

“(ii) grassland;

“(iii) rangeland;

“(iv) pasture land;

“(v) nonindustrial private forest land; and

“(vi) other agricultural areas (including cropped woodland, marshes, and agricultural land used or capable of being used for the production of livestock), as determined by the Secretary.

“(5) Priority resource concern—The term priority resource concern means a natural resource concern or problem, as determined by the Secretary, that—

“(A) is identified at the national, State, or local level as a priority for a particular area of a State;

“(B) represents a significant concern in a State or region; and

“(C) is likely to be addressed successfully through the implementation of conservation activities under this program.

“(6) Program—The term program means the conservation stewardship program established by this subchapter.

“(7) Stewardship threshold—The term stewardship threshold means the level of management required, as determined by the Secretary, to conserve and improve the quality and condition of a natural resource.

“1238E. Conservation stewardship program

“(a) Establishment and purpose—During each of fiscal years 2014 through 2018, the Secretary shall carry out a conservation stewardship program to encourage producers to address priority resource concerns in a comprehensive manner—

“(1) by undertaking additional conservation activities; and

“(2) by improving, maintaining, and managing existing conservation activities.

“(b) Exclusions

“(1) Land enrolled in other conservation programs—Subject to paragraph (2), the following land (even if covered by the definition of eligible land) is not eligible for enrollment in the program:

“(A) Land enrolled in the conservation reserve program, unless—

“(i) the conservation reserve contract will expire at the end of the fiscal year in which the land is to be enrolled in the program; and

“(ii) conservation reserve program payments for land enrolled in the program cease before the first program payment is made to the applicant under this subchapter.

“(B) Land enrolled in a wetland easement through the agricultural conservation easement program.

“(C) Land enrolled in the conservation security program.

“(2) Conversion to cropland—Eligible land used for crop production after October 1, 2013, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years preceding that date shall not be the basis for any payment under the program, unless the land does not meet the requirement because—

“(A) the land had previously been enrolled in the conservation reserve program;

“(B) the land has been maintained using long-term crop rotation practices, as determined by the Secretary; or

“(C) the land is incidental land needed for efficient operation of the farm or ranch, as determined by the Secretary.

“1238F. Stewardship contracts

“(a) Submission of contract offers—To be eligible to participate in the conservation stewardship program, a producer shall submit to the Secretary a contract offer for the agricultural operation that—

“(1) demonstrates to the satisfaction of the Secretary that the producer, at the time of the contract offer, meets or exceeds the stewardship threshold for at least 2 priority resource concerns; and

“(2) would, at a minimum, meet or exceed the stewardship threshold for at least 1 additional priority resource concern by the end of the stewardship contract by—

“(A) installing and adopting additional conservation activities; and

“(B) improving, maintaining, and managing existing conservation activities across the entire agricultural operation in a manner that increases or extends the conservation benefits in place at the time the contract offer is accepted by the Secretary.

“(b) Evaluation of contract offers

“(1) Ranking of applications—In evaluating contract offers submitted under subsection (a), the Secretary shall rank applications based on—

“(A) the level of conservation treatment on all applicable priority resource concerns at the time of application;

“(B) the degree to which the proposed conservation activities effectively increase conservation performance;

“(C) the number of applicable priority resource concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract;

“(D) the extent to which other priority resource concerns will be addressed to meet or exceed the stewardship threshold by the end of the contract period;

“(E) the extent to which the actual and anticipated conservation benefits from the contract are provided at the least cost relative to other similarly beneficial contract offers; and

“(F) the extent to which priority resource concerns will be addressed when transitioning from the conservation reserve program to agricultural production.

“(2) Prohibition—The Secretary may not assign a higher priority to any application because the applicant is willing to accept a lower payment than the applicant would otherwise be eligible to receive.

“(3) Additional criteria—The Secretary may develop and use such additional criteria that the Secretary determines are necessary to ensure that national, State, and local priority resource concerns are effectively addressed.

“(c) Entering into contracts—After a determination that a producer is eligible for the program under subsection (a), and a determination that the contract offer ranks sufficiently high under the evaluation criteria under subsection (b), the Secretary shall enter into a conservation stewardship contract with the producer to enroll the eligible land to be covered by the contract.

“(d) Contract provisions

“(1) Term—A conservation stewardship contract shall be for a term of 5 years.

“(2) Required provisions—The conservation stewardship contract of a producer shall—

“(A) state the amount of the payment the Secretary agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(d);

“(B) require the producer—

“(i) to implement a conservation stewardship plan that describes the program purposes to be achieved through 1 or more conservation activities;

“(ii) to maintain and supply information as required by the Secretary to determine compliance with the conservation stewardship plan and any other requirements of the program; and

“(iii) not to conduct any activities on the agricultural operation that would tend to defeat the purposes of the program;

“(C) permit all economic uses of the eligible land that—

“(i) maintain the agricultural nature of the land; and

“(ii) are consistent with the conservation purposes of the conservation stewardship contract;

“(D) include a provision to ensure that a producer shall not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or related condition, as determined by the Secretary;

“(E) include provisions requiring that upon the violation of a term or condition of the contract at any time the producer has control of the land—

“(i) if the Secretary determines that the violation warrants termination of the contract—

“(I) the producer shall forfeit all rights to receive payments under the contract; and

“(II) the producer shall refund all or a portion of the payments received by the producer under the contract, including any interest on the payments, as determined by the Secretary; or

“(ii) if the Secretary determines that the violation does not warrant termination of the contract, the producer shall refund or accept adjustments to the payments provided to the producer, as the Secretary determines to be appropriate;

“(F) include provisions in accordance with paragraphs (3) and (4) of this section; and

“(G) include any additional provisions the Secretary determines are necessary to carry out the program.

“(3) Change of interest in land subject to a contract

“(A) In general—At the time of application, a producer shall have control of the eligible land to be enrolled in the program. Except as provided in subparagraph (B), a change in the interest of a producer in eligible land covered by a contract under the program shall result in the termination of the contract with regard to that land.

“(B) Transfer of duties and rights—Subparagraph (A) shall not apply if—

“(i) within a reasonable period of time (as determined by the Secretary) after the date of the change in the interest in eligible land covered by a contract under the program, the transferee of the land provides written notice to the Secretary that all duties and rights under the contract have been transferred to, and assumed by, the transferee for the portion of the land transferred;

“(ii) the transferee meets the eligibility requirements of the program; and

“(iii) the Secretary approves the transfer of all duties and rights under the contract.

“(4) Modification and termination of contracts

“(A) Voluntary modification or termination—The Secretary may modify or terminate a contract with a producer if—

“(i) the producer agrees to the modification or termination; and

“(ii) the Secretary determines that the modification or termination is in the public interest.

“(B) Involuntary termination—The Secretary may terminate a contract if the Secretary determines that the producer violated the contract.

“(5) Repayment—If a contract is terminated, the Secretary may, consistent with the purposes of the program—

“(A) allow the producer to retain payments already received under the contract; or

“(B) require repayment, in whole or in part, of payments received and assess liquidated damages.

“(e) Contract renewal—At the end of the initial 5-year contract period, the Secretary may allow the producer to renew the contract for 1 additional 5-year period if the producer—

“(1) demonstrates compliance with the terms of the initial contract;

“(2) agrees to adopt and continue to integrate conservation activities across the entire agricultural operation, as determined by the Secretary; and

“(3) agrees, by the end of the contract period—

“(A) to meet the stewardship threshold of at least two additional priority resource concerns on the agricultural operation; or

“(B) to exceed the stewardship threshold of two existing priority resource concerns that are specified by the Secretary in the initial contract.

“1238G. Duties of the secretary

“(a) In general—To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary shall—

“(1) make the program available to eligible producers on a continuous enrollment basis with 1 or more ranking periods, one of which shall occur in the first quarter of each fiscal year;

“(2) identify not less than 5 priority resource concerns in a particular watershed or other appropriate region or area within a State; and

“(3) establish a science-based stewardship threshold for each priority resource concern identified under paragraph (2).

“(b) Allocation to states—The Secretary shall allocate acres to States for enrollment, based—

“(1) primarily on each State’s proportion of eligible land to the total acreage of eligible land in all States; and

“(2) also on consideration of—

“(A) the extent and magnitude of the conservation needs associated with agricultural production in each State;

“(B) the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and

“(C) other considerations to achieve equitable geographic distribution of funds, as determined by the Secretary.

“(c) Acreage enrollment limitation—During the period beginning on October 1, 2013, and ending on September 30, 2021, the Secretary shall, to the maximum extent practicable—

“(1) enroll in the program an additional 8,695,000 acres for each fiscal year; and

“(2) manage the program to achieve a national average rate of $18 per acre, which shall include the costs of all financial assistance, technical assistance, and any other expenses associated with enrollment or participation in the program.

“(d) Conservation stewardship payments

“(1) Availability of payments—The Secretary shall provide annual payments under the program to compensate the producer for—

“(A) installing and adopting additional conservation activities; and

“(B) improving, maintaining, and managing conservation activities in place at the agricultural operation of the producer at the time the contract offer is accepted by the Secretary.

“(2) Payment amount—The amount of the conservation stewardship annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors:

“(A) Costs incurred by the producer associated with planning, design, materials, installation, labor, management, maintenance, or training.

“(B) Income forgone by the producer.

“(C) Expected conservation benefits.

“(D) The extent to which priority resource concerns will be addressed through the installation and adoption of conservation activities on the agricultural operation.

“(E) The level of stewardship in place at the time of application and maintained over the term of the contract.

“(F) The degree to which the conservation activities will be integrated across the entire agricultural operation for all applicable priority resource concerns over the term of the contract.

“(G) Such other factors as determined appropriate by the Secretary.

“(3) Exclusions—A payment to a producer under this subsection shall not be provided for—

“(A) the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices for animal feeding operations; or

“(B) conservation activities for which there is no cost incurred or income forgone to the producer.

“(4) Delivery of payments—In making payments under this subsection, the Secretary shall, to the extent practicable—

“(A) prorate conservation performance over the term of the contract so as to accommodate, to the extent practicable, producers earning equal annual payments in each fiscal year; and

“(B) make payments as soon as practicable after October 1 of each fiscal year for activities carried out in the previous fiscal year.

“(e) Supplemental payments for resource-conserving crop rotations

“(1) Availability of payments—The Secretary shall provide additional payments to producers that, in participating in the program, agree to adopt or improve resource-conserving crop rotations to achieve beneficial crop rotations as appropriate for the eligible land of the producers.

“(2) Beneficial crop rotations—The Secretary shall determine whether a resource-conserving crop rotation is a beneficial crop rotation eligible for additional payments under paragraph (1) based on whether the resource-conserving crop rotation is designed to provide natural resource conservation and production benefits.

“(3) Eligibility—To be eligible to receive a payment described in paragraph (1), a producer shall agree to adopt and maintain beneficial resource-conserving crop rotations for the term of the contract.

“(4) Resource-conserving crop rotation—In this subsection, the term resource-conserving crop rotation means a crop rotation that—

“(A) includes at least 1 resource conserving crop (as defined by the Secretary);

“(B) reduces erosion;

“(C) improves soil fertility and tilth;

“(D) interrupts pest cycles; and

“(E) in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation.

changed “(f) Payment limitations—A person or legal entity may not receive, directly or indirectly, payments under the program that, in the aggregate, exceed $200,000 under all contracts entered into during fiscal years 2013 2014 through 2017, 2018, excluding funding arrangements with Indian tribes, regardless of the number of contracts entered into under the program by the person or legal entity.

“(g) Specialty crop and organic producers—The Secretary shall ensure that outreach and technical assistance are available, and program specifications are appropriate to enable specialty crop and organic producers to participate in the program.

“(h) Coordination with organic certification—The Secretary shall establish a transparent means by which producers may initiate organic certification under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) while participating in a contract under the program.

“(i) Regulations—The Secretary shall promulgate regulations that—

“(1) prescribe such other rules as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations established under subsection (f); and

“(2) otherwise enable the Secretary to carry out the program.”

Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended—

“(2) Term—A contract under the program shall have a term that does not exceed 10 years.”

“(B) Advance payments

“(i) In general—Not more than 50 percent of the amount determined under subparagraph (A) may be provided in advance for the purpose of purchasing materials or contracting.

“(ii) Return of funds—If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds shall be returned within a reasonable time frame, as determined by the Secretary.”

“(f) Allocation of funding

“(1) Livestock—For each of fiscal years 2014 through 2018, at least 60 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production.

“(2) Wildlife habitat—For each of fiscal years 2014 through 2018, 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat.”

changed “(j) Wildlife habitat incentive practice—The Secretary shall provide payments to producers under the program for conservation practices, including recurring practices for the term of the contract, that support the restoration, development, protection, and improvement of wildlife habitat on eligible land, including—

“(1) upland wildlife habitat;

“(2) wetland wildlife habitat;

“(3) habitat for threatened and endangered species;

“(4) fish habitat;

“(5) habitat on pivot corners and other irregular areas of a field; and

“(6) other types of wildlife habitat, as determined appropriate by the Secretary.”

“H Agricultural Conservation Easement Program

“1265. Establishment and purposes

“(a) Establishment—The Secretary shall establish an agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in land.

“(b) Purposes—The purposes of the program are to—

“(1) combine the purposes and coordinate the functions of the wetlands reserve program established under section 1237, the grassland reserve program established under section 1238N, and the farmland protection program established under section 1238I, as such sections were in effect on September 30, 2013;

“(2) restore, protect, and enhance wetlands on eligible land;

“(3) protect the agricultural use and related conservation values of eligible land by limiting nonagricultural uses of that land; and

“(4) protect grazing uses and related conservation values by restoring and conserving eligible land.

“1265A. Definitions

“In this subtitle:

“(1) Agricultural land easement—The term agricultural land easement means an easement or other interest in eligible land that—

“(A) is conveyed for the purpose of protecting natural resources and the agricultural nature of the land; and

“(B) permits the landowner the right to continue agricultural production and related uses subject to an agricultural land easement plan, as approved by the Secretary.

“(2) Eligible entity—The term eligible entity means—

“(A) an agency of State or local government or an Indian tribe (including a farmland protection board or land resource council established under State law); or

“(B) an organization that is—

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

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

“(iii) described in—

“(I) paragraph (1) or (2) of section 509(a) of that Code; or

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

“(3) Eligible land—The term eligible land means private or tribal land that is—

“(A) in the case of an agricultural land easement, agricultural land, including land on a farm or ranch—

“(i) that is subject to a pending offer for purchase of an agricultural land easement from an eligible entity;

“(ii) that—

“(I) has prime, unique, or other productive soil;

“(II) contains historical or archaeological resources; or

“(III) the protection of which will further a State or local policy consistent with the purposes of the program; and

“(iii) that is—

“(I) cropland;

“(II) rangeland;

“(III) grassland or land that contains forbs, or shrubland for which grazing is the predominate use;

“(IV) pastureland; or

“(V) nonindustrial private forest land that contributes to the economic viability of an offered parcel or serves as a buffer to protect such land from development;

“(B) in the case of a wetland easement, a wetland or related area, including—

“(i) farmed or converted wetlands, together with adjacent land that is functionally dependent on that land, if the Secretary determines it—

“(I) is likely to be successfully restored in a cost effective manner; and

“(II) will maximize the wildlife benefits and wetland functions and values, as determined by the Secretary in consultation with the Secretary of the Interior at the local level;

“(ii) cropland or grassland that was used for agricultural production prior to flooding from the natural overflow of—

“(I) a closed basin lake and adjacent land that is functionally dependent upon it, if the State or other entity is willing to provide 50 percent share of the cost of an easement;

“(II) a pothole and adjacent land that is functionally dependent on it;

“(iii) farmed wetlands and adjoining lands that—

“(I) are enrolled in the conservation reserve program;

“(II) have the highest wetland functions and values, as determined by the Secretary; and

“(III) are likely to return to production after they leave the conservation reserve program;

“(iv) riparian areas that link wetlands that are protected by easements or some other device that achieves the same purpose as an easement; or

“(v) other wetlands of an owner that would not otherwise be eligible, if the Secretary determines that the inclusion of such wetlands in a wetland easement would significantly add to the functional value of the easement; or

“(C) in the case of either an agricultural land easement or wetland easement, other land that is incidental to land described in subparagraph (A) or (B), if the Secretary determines that it is necessary for the efficient administration of the easements under this program.

“(4) Program—The term program means the agricultural conservation easement program established by this subtitle.

“(5) Wetland easement—The term wetland easement means a reserved interest in eligible land that—

“(A) is defined and delineated in a deed; and

“(B) stipulates—

“(i) the rights, title, and interests in land conveyed to the Secretary; and

“(ii) the rights, title, and interests in land that are reserved to the landowner.

“1265B. Agricultural land easements

“(a) Availability of assistance—The Secretary shall facilitate and provide funding for—

“(1) the purchase by eligible entities of agricultural land easements and other interests in eligible land; and

“(2) technical assistance to provide for the conservation of natural resources pursuant to an agricultural land easement plan.

“(b) Cost-share assistance

“(1) In general—The Secretary shall protect the agricultural use, including grazing, and related conservation values of eligible land through cost-share assistance to eligible entities for purchasing agricultural land easements.

“(2) Scope of assistance available

“(A) Federal share—An agreement described in paragraph (4) shall provide for a Federal share determined by the Secretary of an amount not to exceed 50 percent of the fair market value of the agricultural land easement or other interest in land, as determined by the Secretary using—

“(i) the Uniform Standards of Professional Appraisal Practice;

“(ii) an area-wide market analysis or survey; or

“(iii) another industry-approved method.

“(B) Non-federal share

“(i) In general—Under the agreement, the eligible entity shall provide a share that is at least equivalent to that provided by the Secretary.

“(ii) Source of contribution—An eligible entity may include as part of its share a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner if the eligible entity contributes its own cash resources in an amount that is at least 50 percent of the amount contributed by the Secretary.

“(C) Exception—In the case of grassland of special environmental significance, as determined by the Secretary, the Secretary may provide an amount not to exceed 75 percent of the fair market value of the agricultural land easement.

“(3) Evaluation and ranking of applications

“(A) Criteria—The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

“(B) Considerations—In establishing the criteria, the Secretary shall emphasize support for—

“(i) protecting agricultural uses and related conservation values of the land; and

“(ii) maximizing the protection of areas devoted to agricultural use.

“(C) Bidding down—If the Secretary determines that 2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any of those applications solely on the basis of lesser cost to the program.

“(4) Agreements with eligible entities

“(A) In general—The Secretary shall enter into agreements with eligible entities to stipulate the terms and conditions under which the eligible entity is permitted to use cost-share assistance provided under this section.

“(B) Length of agreements—An agreement shall be for a term that is—

“(i) in the case of an eligible entity certified under the process described in paragraph (5), a minimum of five years; and

“(ii) for all other eligible entities, at least three, but not more than five years.

“(C) Minimum terms and conditions—An eligible entity shall be authorized to use its own terms and conditions for agricultural land easements so long as the Secretary determines such terms and conditions—

“(i) are consistent with the purposes of the program;

“(ii) permit effective enforcement of the conservation purposes of such easements;

“(iii) include a right of enforcement for the Secretary, that may be used only if the terms of the easement are not enforced by the holder of the easement;

“(iv) subject the land in which an interest is purchased to an agricultural land easement plan that—

“(I) describes the activities which promote the long-term viability of the land to meet the purposes for which the easement was acquired;

“(II) requires the management of grasslands according to a grasslands management plan; and

“(III) includes a conservation plan, where appropriate, and requires, at the option of the Secretary, the conversion of highly erodible cropland to less intensive uses; and

“(v) include a limit on the impervious surfaces to be allowed that is consistent with the agricultural activities to be conducted.

“(D) Substitution of qualified projects—An agreement shall allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at the time of the proposed substitution.

“(E) Effect of violation—If a violation occurs of a term or condition of an agreement under this subsection—

“(i) the Secretary may terminate the agreement; and

“(ii) the Secretary may require the eligible entity to refund all or part of any payments received by the entity under the program, with interest on the payments as determined appropriate by the Secretary.

“(5) Certification of eligible entities

“(A) Certification process—The Secretary shall establish a process under which the Secretary may—

“(i) directly certify eligible entities that meet established criteria;

“(ii) enter into long-term agreements with certified eligible entities; and

“(iii) accept proposals for cost-share assistance for the purchase of agricultural land easements throughout the duration of such agreements.

“(B) Certification criteria—In order to be certified, an eligible entity shall demonstrate to the Secretary that the entity will maintain, at a minimum, for the duration of the agreement—

“(i) a plan for administering easements that is consistent with the purpose of this subtitle;

“(ii) the capacity and resources to monitor and enforce agricultural land easements; and

“(iii) policies and procedures to ensure—

“(I) the long-term integrity of agricultural land easements on eligible land;

“(II) timely completion of acquisitions of such easements; and

“(III) timely and complete evaluation and reporting to the Secretary on the use of funds provided under the program.

“(C) Review and revision

“(i) Review—The Secretary shall conduct a review of eligible entities certified under subparagraph (A) every three years to ensure that such entities are meeting the criteria established under subparagraph (B).

“(ii) Revocation—If the Secretary finds that the certified eligible entity no longer meets the criteria established under subparagraph (B), the Secretary may—

“(I) allow the certified eligible entity a specified period of time, at a minimum 180 days, in which to take such actions as may be necessary to meet the criteria; and

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

“(c) Method of enrollment—The Secretary shall enroll eligible land under this section through the use of—

“(1) permanent easements; or

“(2) easements for the maximum duration allowed under applicable State laws.

“(d) Technical assistance—The Secretary may provide technical assistance, if requested, to assist in—

“(1) compliance with the terms and conditions of easements; and

“(2) implementation of an agricultural land easement plan.

“1265C. Wetland easements

“(a) Availability of assistance—The Secretary shall provide assistance to owners of eligible land to restore, protect, and enhance wetlands through—

“(1) wetland easements and related wetland easement plans; and

“(2) technical assistance.

“(b) Easements

“(1) Method of enrollment—The Secretary shall enroll eligible land under this section through the use of—

“(A) 30-year easements;

“(B) permanent easements;

“(C) easements for the maximum duration allowed under applicable State laws; or

“(D) as an option for Indian tribes only, 30-year contracts (which shall be considered to be 30-year easements for the purposes of this subtitle).

“(2) Limitations

“(A) Ineligible land—The Secretary may not acquire easements on—

“(i) land established to trees under the conservation reserve program, except in cases where the Secretary determines it would further the purposes of the program; and

“(ii) farmed wetlands or converted wetlands where the conversion was not commenced prior to December 23, 1985.

“(B) Changes in ownership—No wetland easement shall be created on land that has changed ownership during the preceding 24-month period unless—

“(i) the new ownership was acquired by will or succession as a result of the death of the previous owner;

“(ii)

“(I) the ownership change occurred because of foreclosure on the land; and

“(II) immediately before the foreclosure, the owner of the land exercises a right of redemption from the mortgage holder in accordance with State law; or

“(iii) the Secretary determines that the land was acquired under circumstances that give adequate assurances that such land was not acquired for the purposes of placing it in the program.

“(3) Evaluation and ranking of offers

“(A) Criteria—The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program.

“(B) Considerations—When evaluating offers from landowners, the Secretary may consider—

“(i) the conservation benefits of obtaining a wetland easement, including the potential environmental benefits if the land was removed from agricultural production;

“(ii) the cost-effectiveness of each wetland easement, so as to maximize the environmental benefits per dollar expended;

“(iii) whether the landowner or another person is offering to contribute financially to the cost of the wetland easement to leverage Federal funds; and

“(iv) such other factors as the Secretary determines are necessary to carry out the purposes of the program.

“(C) Priority—The Secretary shall place priority on acquiring wetland easements based on the value of the wetland easement for protecting and enhancing habitat for migratory birds and other wildlife.

“(4) Agreement—To be eligible to place eligible land into the program through a wetland easement, the owner of such land shall enter into an agreement with the Secretary to—

“(A) grant an easement on such land to the Secretary;

“(B) authorize the implementation of a wetland easement plan developed for the eligible land under subsection (f);

“(C) create and record an appropriate deed restriction in accordance with applicable State law to reflect the easement agreed to;

“(D) provide a written statement of consent to such easement signed by those holding a security interest in the land;

“(E) comply with the terms and conditions of the easement and any related agreements; and

“(F) permanently retire any existing base history for the land on which the easement has been obtained.

“(5) Terms and conditions of easement

“(A) In general—A wetland easement shall include terms and conditions that—

“(i) permit—

“(I) repairs, improvements, and inspections on the land that are necessary to maintain existing public drainage systems; and

“(II) owners to control public access on the easement areas while identifying access routes to be used for restoration activities and management and easement monitoring;

“(ii) prohibit—

“(I) the alteration of wildlife habitat and other natural features of such land, unless specifically authorized by the Secretary;

“(II) the spraying of such land with chemicals or the mowing of such land, except where such spraying or mowing is authorized by the Secretary or is necessary—

“(aa) to comply with Federal or State noxious weed control laws;

“(bb) to comply with a Federal or State emergency pest treatment program; or

“(cc) to meet habitat needs of specific wildlife species;

“(III) any activities to be carried out on the owner’s or successor’s land that is immediately adjacent to, and functionally related to, the land that is subject to the easement if such activities will alter, degrade, or otherwise diminish the functional value of the eligible land; and

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

“(iii) provide for the efficient and effective establishment of wildlife functions and values; and

“(iv) include such additional provisions as the Secretary determines are desirable to carry out the program or facilitate the practical administration thereof.

“(B) Violation—On the violation of the terms or conditions of a wetland easement, the wetland easement shall remain in force and the Secretary may require the owner to refund all or part of any payments received by the owner under the program, together with interest thereon as determined appropriate by the Secretary.

“(C) Compatible uses—Land subject to a wetland easement may be used for compatible economic uses, including such activities as hunting and fishing, managed timber harvest, or periodic haying or grazing, if such use is specifically permitted by the wetland easement plan developed for the land under subsection (f) and is consistent with the long-term protection and enhancement of the wetland resources for which the easement was established.

“(D) Reservation of grazing rights—The Secretary may include in the terms and conditions of a wetland easement a provision under which the owner reserves grazing rights if—

“(i) the Secretary determines that the reservation and use of the grazing rights—

“(I) is compatible with the land subject to the easement;

“(II) is consistent with the historical natural uses of the land and the long-term protection and enhancement goals for which the easement was established; and

“(III) complies with the wetland easement plan developed for the land under subsection (f); and

“(ii) the agreement provides for a commensurate reduction in the easement payment to account for the grazing value, as determined by the Secretary.

“(6) Compensation

“(A) Determination

“(i) Permanent easements—The Secretary shall pay as compensation for a permanent wetland easement acquired under the program an amount necessary to encourage enrollment in the program, based on the lowest of—

“(I) the fair market value of the land, as determined by the Secretary, using the Uniform Standards of Professional Appraisal Practice or an area-wide market analysis or survey;

“(II) the amount corresponding to a geographical cap, as determined by the Secretary in regulations; or

“(III) the offer made by the landowner.

“(ii) 30-year easements—Compensation for a 30-year wetland easement shall be not less than 50 percent, but not more than 75 percent, of the compensation that would be paid for a permanent wetland easement.

“(B) Form of payment—Compensation for a wetland easement shall be provided by the Secretary in the form of a cash payment, in an amount determined under subparagraph (A).

“(C) Payment schedule

“(i) Easements valued at $500,000 or less—For wetland easements valued at $500,000 or less, the Secretary may provide easement payments in not more than 10 annual payments.

“(ii) Easements valued at more than $500,000—For wetland easements valued at more than $500,000, the Secretary may provide easement payments in at least 5, but not more than 10 annual payments, except that, if the Secretary determines it would further the purposes of the program, the Secretary may make a lump sum payment for such an easement.

“(c) Easement restoration

“(1) In general—The Secretary shall provide financial assistance to owners of eligible land to carry out the establishment of conservation measures and practices and protect wetland functions and values, including necessary maintenance activities, as set forth in a wetland easement plan developed for the eligible land under subsection (f).

“(2) Payments—The Secretary shall—

“(A) in the case of a permanent wetland easement, pay an amount that is not less than 75 percent, but not more than 100 percent, of the eligible costs, as determined by the Secretary; and

“(B) in the case of a 30-year wetland easement, pay an amount that is not less than 50 percent, but not more than 75 percent, of the eligible costs, as determined by the Secretary.

“(d) Technical assistance

“(1) In general—The Secretary shall assist owners in complying with the terms and conditions of wetland easements.

“(2) Contracts or agreements—The Secretary may enter into 1 or more contracts with private entities or agreements with a State, non-governmental organization, or Indian tribe to carry out necessary restoration, enhancement, or maintenance of a wetland easement if the Secretary determines that the contract or agreement will advance the purposes of the program.

“(e) Wetland enhancement option—The Secretary may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetland enhancement option that the Secretary determines would advance the purposes of program.

“(f) Administration

“(1) Wetland easement plan—The Secretary shall develop a wetland easement plan for eligible lands subject to a wetland easement, which shall include practices and activities necessary to restore, protect, enhance, and maintain the enrolled lands.

“(2) Delegation of easement administration—The Secretary may delegate—

“(A) any of the easement management, monitoring, and enforcement responsibilities of the Secretary to other Federal or State agencies that have the appropriate authority, expertise, and resources necessary to carry out such delegated responsibilities; and

“(B) any of the easement management responsibilities of the Secretary to other conservation organizations if the Secretary determines the organization has the appropriate expertise and resources.

“(3) Payments

“(A) Timing of payments—The Secretary shall provide payment for obligations incurred by the Secretary under this section—

“(i) with respect to any easement restoration obligation under subsection (c), as soon as possible after the obligation is incurred; and

“(ii) with respect to any annual easement payment obligation incurred by the Secretary, as soon as possible after October 1 of each calendar year.

“(B) Payments to others—If an owner who is entitled to a payment under this section dies, becomes incompetent, is otherwise unable to receive such payment, or is succeeded by another person or entity who renders or completes the required performance, the Secretary shall make such payment, in accordance with regulations prescribed by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all of the circumstances.

“1265D. Administration

“(a) Ineligible land—The Secretary may not use program funds for the purposes of acquiring an easement on—

“(1) lands owned by an agency of the United States, other than land held in trust for Indian tribes;

“(2) lands owned in fee title by a State, including an agency or a subdivision of a State, or a unit of local government;

“(3) land subject to an easement or deed restriction which, as determined by the Secretary, provides similar protection as would be provided by enrollment in the program; or

“(4) lands where the purposes of the program would be undermined due to on-site or off-site conditions, such as risk of hazardous substances, proposed or existing rights of way, infrastructure development, or adjacent land uses.

“(b) Priority—In evaluating applications under the program, the Secretary may give priority to land that is currently enrolled in the conservation reserve program in a contract that is set to expire within 1 year and—

“(1) in the case of an agricultural land easement, is grassland that would benefit from protection under a long-term easement; and

“(2) in the case of a wetland easement, is a wetland or related area with the highest functions and value and is likely to return to production after the land leaves the conservation reserve program.

“(c) Subordination, exchange, modification, and termination

“(1) In general—The Secretary may subordinate, exchange, modify, or terminate any interest in land, or portion of such interest, administered by the Secretary, either directly or on behalf of the Commodity Credit Corporation under the program if the Secretary determines that—

“(A) it is in the Federal Government’s interest to subordinate, exchange, modify, or terminate the interest in land;

“(B) the subordination, exchange, modification, or termination action—

“(i) will address a compelling public need for which there is no practicable alternative; or

“(ii) such action will further the practical administration of the program; and

“(C) the subordination, exchange, modification, or termination action will result in comparable conservation value and equivalent or greater economic value to the United States.

“(2) Consultation—The Secretary shall work with the owner, and eligible entity if applicable, to address any subordination, exchange, modification, or termination of the interest, or portion of such interest, in land.

“(3) Notice—At least 90 days before taking any termination action described in paragraph (1), the Secretary shall provide written notice of such action to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

“(d) Land enrolled in conservation reserve program—The Secretary may terminate or modify a contract entered into under section 1231(a) if eligible land that is subject to such contract is transferred into the program.

“(e) Allocation of funds for agricultural land easements—Of the funds made available under section 1241 to carry out the program for a fiscal year, the Secretary shall, to the extent practicable, use for agricultural land easements—

“(1) no less than 40 percent in each of fiscal years 2014 through 2017; and

“(2) no less than 50 percent in fiscal year 2018.”

“(2) the agricultural conservation easement program established under subtitle H; and”

“(5) Calculation—In calculating the percentages described in paragraph (1), the Secretary shall include any acreage that was included in calculations of percentages made under such paragraph, as in effect on September 30, 2013, and that remains enrolled when the calculation is made after that date under paragraph (1).”

“(a) Annual funding—For each of fiscal years 2014 through 2018, the Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out the following programs under this title (including the provision of technical assistance):

“(1) The conservation reserve program under subchapter B of chapter 1 of subtitle D, including, to the maximum extent practicable, $25,000,000 for the period of fiscal years 2014 through 2018 to carry out section 1235(f) to facilitate the transfer of land subject to contracts from retired or retiring owners and operators to beginning farmers or ranchers and socially disadvantaged farmers or ranchers.

“(2) The agriculture conservation easement program under subtitle H, using, to the maximum extent practicable—

“(A) $425,000,000 in fiscal year 2014;

“(B) $450,000,000 in fiscal year 2015;

“(C) $475,000,000 in fiscal year 2016;

“(D) $500,000,000 in fiscal year 2017; and

“(E) $200,000,000 in fiscal year 2018.

“(3) The conservation security program under subchapter A of chapter 2 of subtitle D, using such sums as are necessary to administer contracts entered into before September 30, 2008.

“(4) The conservation stewardship program under subchapter B of chapter 2 of subtitle D.

“(5) The environmental quality incentives program under chapter 4 of subtitle D, using, to the maximum extent practicable, $1,750,000,000 for each of fiscal years 2014 through 2018.”

“(b) Availability of funds—Amounts made available by subsection (a) shall be used by the Secretary to carry out the programs specified in such subsection for fiscal years 2014 through 2018 and shall remain available until expended. Amounts made available for the programs specified in such subsection during a fiscal year through modifications, cancellations, terminations, and other related administrative actions and not obligated in that fiscal year shall remain available for obligation during subsequent fiscal years, but shall reduce the amount of additional funds made available in the subsequent fiscal year by an amount equal to the amount remaining unobligated.”

“(c) Technical assistance

“(1) Availability of funds—Commodity Credit Corporation funds made available for a fiscal year for each of the programs specified in subsection (a)—

“(A) shall be available for the provision of technical assistance for the programs for which funds are made available as necessary to implement the programs effectively; and

“(B) shall not be available for the provision of technical assistance for conservation programs specified in subsection (a) other than the program for which the funds were made available.

“(2) Report—Not later than December 31, 2013, the Secretary shall submit (and update as necessary in subsequent years) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report—

“(A) detailing the amount of technical assistance funds requested and apportioned in each program specified in subsection (a) during the preceding fiscal year; and

“(B) any other data relating to this subsection that would be helpful to such Committees.”

Section 3(k)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)(1)) is amended—

“(2) Imposition of costs

“(A) In general—Except as provided in subparagraph (B), the Secretary shall require participating retailers (including restaurants participating in a State option restaurant program intended to serve the elderly, disabled, and homeless) to pay 100 percent of the costs of acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies.

“(B) Exemptions—The Secretary may exempt from subparagraph (A)—

changed “(i) farmers’ markets and other direct-to-consumer markets, military commissaries, nonprofit food buying cooperatives, and establishments, organizations, programs, or group living arrangements described in paragraphs (5), (7), and (8) of section 3(k); and

“(ii) establishments described in paragraphs (3), (4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program.”

“(4) Termination of manual vouchers

“(A) In general—Effective beginning on the effective date of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a household that receives supplemental nutrition assistance under this Act or allow retailers to accept manual vouchers as payment, unless the Secretary determines that the manual vouchers are necessary, such as in the event of an electronic benefit transfer system failure or a disaster situation.

“(B) Exemptions—The Secretary may exempt categories of retailers or individual retailers from subparagraph (A) based on criteria established by the Secretary.

changed “(5) Unique identification number required—In an effort to enhance the antifraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide for and maintain a unique business identification and a unique terminal identification number information through the supplemental nutrition assistance program electronic benefit transfer transaction routing system. In developing the regulations implementing this paragraph, the Secretary shall consider existing commercial practices for other point-of-sale debit transactions. The Secretary shall issue proposed regulations implementing this paragraph not earlier than 2 years after the date of enactment of this paragraph.”

“(g) EBT service requirement—An approved retail food store shall provide adequate EBT service as described in section 7(h)(3)(B).”

“(5) a governmental or private nonprofit food purchasing and delivery service that—

“(A) purchases food for, and delivers such food to, individuals who are—

“(i) unable to shop for food; and

“(ii)

“(I) not less than 60 years of age; or

“(II) physically or mentally handicapped or otherwise disabled;

“(B) clearly notifies the participating household at the time such household places a food order—

“(i) of any delivery fee associated with the food purchase and delivery provided to such household by such service; and

“(ii) that a delivery fee cannot be paid with benefits provided under supplemental nutrition assistance program; and

“(C) sells food purchased for such household at the price paid by such service for such food and without any additional cost markup.”

“(I) In general—Subject to subclause (II), if a State agency elects to use a standard utility allowance that reflects heating and cooling costs, the standard utility allowance shall be made available to households that received a payment, or on behalf of which a payment was made, under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if in the current month or in the immediately preceding 12 months, the household either received such payment, or such payment was made on behalf of the household, that was greater than $20 annually, as determined by the Secretary.”

changed Section 6(e)(3)(B) of Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(3)(B)) is amended by striking “section;” and inserting the following:following: “section, subject to the condition that the course or program of study—”

“(i) is part of a program of career and technical education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)) that may be completed in not more than 4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)); or

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

added Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended by adding at the end the following:

added “(i) Pilot projects to improve Federal-State cooperation in identifying and reducing fraud in the supplemental nutrition assistance program

added “(1) In general—The Secretary shall carry out, under such terms and conditions as determined by the Secretary, pilot projects to test innovative Federal-State partnerships to identify, investigate, and reduce retailer fraud in the supplemental nutrition assistance program, including allowing States to operate retail Food Store investigation programs.

added “(2) Selection criteria—Pilot projects shall be selected based on criteria the Secretary establishes, which shall include—

added “(A) enhancing existing efforts by the Secretary to reduce retailer fraud;

added “(B) requiring participant States to maintain their overall level of effort at addressing recipient fraud, as determined by the Secretary, prior to participation in the pilot project;

added “(C) collaborating with other law enforcement authorities as necessary to carry out an effective pilot project;

added “(D) commitment of the participant State agency to follow Federal rules and procedures with respect to retailer investigations; and

added “(E) the extent to which a State has committed resources to recipient fraud and the relative success of those efforts.

added “(3) Evaluation

added “(A) The Secretary shall evaluate the projects selected under this subsection to measure the impact of the pilot projects.

added “(B) Such evaluation shall include—

added “(i) each pilot project’s impact on increasing the Secretary’s capacity to address retailer fraud;

added “(ii) the effectiveness of the pilot projects in identifying, preventing and reducing retailer fraud; and

added “(iii) the cost effectiveness of such pilot projects.

added “(4) Report to congress—Not later than September 30, 2017, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition and Forestry of the Senate, a report that includes a description of the results of each pilot project, including an evaluation of the impact of the project on retailer fraud and the costs associated with each pilot project.

added “(5) Funding—Any costs incurred by the State to operate the pilot projects in excess of the amount expended under this Act for retailer fraud in the respective State in the previous fiscal year shall not be eligible for Federal reimbursement under this Act.”

removed “(g)

removed “(1) Except as provided in paragraph (2), no funds authorized to be appropriated under this Act shall be used by the Secretary for—

removed “(A) recruitment activities designed to persuade an individual to apply for supplemental nutrition assistance program benefits;

removed “(B) television, radio, or billboard advertisements that are designed to promote supplemental nutrition assistance program benefits and enrollment; or

removed “(C) any agreements with foreign governments designed to promote supplemental nutrition assistance program benefits and enrollment.

removed “(2) Paragraph (1)(B) shall not apply to programmatic activities undertaken with respect to benefits made available in response to a natural disaster.”

added “(g) Ban on recruitment and promotion activities

added “(1) Except as provided in paragraph (2), no funds authorized to be appropriated under this Act shall be used by the Secretary for—

added “(A) recruitment activities designed to persuade an individual to apply for supplemental nutrition assistance program benefits;

added “(B) television, radio, or billboard advertisements that are designed to promote supplemental nutrition assistance program benefits and enrollment; or

added “(C) any agreements with foreign governments designed to promote supplemental nutrition assistance program benefits and enrollment.

added “(2) Paragraph (1)(B) shall not apply to programmatic activities undertaken with respect to benefits made available in response to a natural disaster.”

added “(h) Ban on recruitment by entities that receive funds—The Secretary shall issue regulations that forbid entities that receive funds under this Act to compensate any person for conducting outreach activities relating to participation in, or for recruiting individuals to apply to receive benefits under, the supplemental nutrition assistance program if the amount of such compensation would be based on the number of individuals who apply to receive such benefits.”

removed Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(d)) is repealed.

changed Section 16(h)(1)(A) 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) 2025(d)) is amended by striking “$90,000,000” and all that follows through “$79,000,000”, and inserting “$79,000,000 for each fiscal year”.repealed.

added Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) is amended by striking “$90,000,000” and all that follows through “$79,000,000”, and inserting “$79,000,000 for each fiscal year”.

removed “(5)

removed “(A) In general—The Secretary shall monitor the employment and training programs carried out by State agencies under section 6(d)(4) and assess their effectiveness in—

removed “(i) preparing members of households participating in the supplemental nutrition assistance program for employment, including the acquisition of basic skills necessary for employment; and

removed “(ii) increasing the numbers of household members who obtain and retain employment subsequent to their participation in such employment and training programs.

removed “(B) Reporting measures—The Secretary, in consultation with the Secretary of Labor, shall develop reporting measures that identify improvements in the skills, training education or work experience of members of households participating in the supplemental nutrition assistance program. Measures shall be based on common measures of performance for federal workforce training programs, so long as they reflect the challenges facing the types of members of households participating in the supplemental nutrition assistance program who participate in a specific employment and training component. The Secretary shall require that each State employment and training plan submitted under section 11(3)(19) identify appropriate reporting measures for each of their proposed components that serve at least 100 people. Such measures may include:

removed “(i) the percentage and number of program participants who received employment and training services and are in unsubsidized employment subsequent to the receipt of those services;

removed “(ii) the percentage and number of program participants who obtain a recognized postsecondary credential, including a registered apprenticeship, or a regular secondary school diploma or its recognized equivalent, while participating in or within 1 year after receiving employment and training services;

removed “(iii) the percentage and number of program participants who are in an education or training program that is intended to lead to a recognized postsecondary credential, including a registered apprenticeship or on-the-job training program, a regular secondary school diploma or its recognized equivalent, or unsubsidized employment;

removed “(iv) subject to the terms and conditions set by the Secretary, measures developed by each State agency to assess the skills acquisition of employment and training program participants that reflect the goals of their specific employment and training program components, which may include, but are not limited to—

removed “(I) the percentage and number of program participants who are meeting program requirements in each component of the State’s education and training program; and

removed “(II) the percentage and number of program participants who are gaining skills likely to lead to employment as measured through testing, quantitative or qualitative assessment or other method; and

removed “(v) other indicators as approved by the Secretary.

removed “(C) State report—Each State agency shall annually prepare and submit to the Secretary a report on the State’s employment and training program that includes the numbers of supplemental nutrition assistance program participants who have gained skills, training, work or experience that will increase their ability to obtain regular employment using measures identified in subparagraph (B).

removed “(D) Modifications to the state employment and training plan—Subject to the terms and conditions established by the Secretary, if the Secretary determines that the state agency’s performance with respect to employment and training outcomes is inadequate, the Secretary may require the State agency to make modifications to their employment and training plan to improve such outcomes.

removed “(E) Periodic evaluation

removed “(i) In general—Subject to terms and conditions established by the Secretary, not later than October 1, 2016, and not less frequently than once every 5 years thereafter, the Secretary shall conduct a study to review existing practice and research to identify employment and training program components and practices that—

removed “(I) effectively assist members of households participating in the supplemental nutrition assistance program in gaining skills, training, work, or experience that will increase their ability to obtain regular employment, and

removed “(II) are best integrated with statewide workforce development systems.

removed “(ii) Report to congress—The Secretary shall submit a report that describes the results of the study under clause (i) to the Committee on Agriculture in the House of Representatives, and the Committee on Agriculture, Nutrition and Forestry in the Senate.”

added “(5)

added “(A) In general—The Secretary shall monitor the employment and training programs carried out by State agencies under section 6(d)(4) and assess their effectiveness in—

added “(i) preparing members of households participating in the supplemental nutrition assistance program for employment, including the acquisition of basic skills necessary for employment; and

added “(ii) increasing the numbers of household members who obtain and retain employment subsequent to their participation in such employment and training programs.

added “(B) Reporting measures—The Secretary, in consultation with the Secretary of Labor, shall develop reporting measures that identify improvements in the skills, training education or work experience of members of households participating in the supplemental nutrition assistance program. Measures shall be based on common measures of performance for federal workforce training programs, so long as they reflect the challenges facing the types of members of households participating in the supplemental nutrition assistance program who participate in a specific employment and training component. The Secretary shall require that each State employment and training plan submitted under section 11(3)(19) identify appropriate reporting measures for each of their proposed components that serve at least 100 people. Such measures may include:

added “(i) the percentage and number of program participants who received employment and training services and are in unsubsidized employment subsequent to the receipt of those services;

added “(ii) the percentage and number of program participants who obtain a recognized postsecondary credential, including a registered apprenticeship, or a regular secondary school diploma or its recognized equivalent, while participating in or within 1 year after receiving employment and training services;

added “(iii) the percentage and number of program participants who are in an education or training program that is intended to lead to a recognized postsecondary credential, including a registered apprenticeship or on-the-job training program, a regular secondary school diploma or its recognized equivalent, or unsubsidized employment;

added “(iv) subject to the terms and conditions set by the Secretary, measures developed by each State agency to assess the skills acquisition of employment and training program participants that reflect the goals of their specific employment and training program components, which may include, but are not limited to—

added “(I) the percentage and number of program participants who are meeting program requirements in each component of the State’s education and training program; and

added “(II) the percentage and number of program participants who are gaining skills likely to lead to employment as measured through testing, quantitative or qualitative assessment or other method; and

added “(v) other indicators as approved by the Secretary.

added “(C) State report—Each State agency shall annually prepare and submit to the Secretary a report on the State’s employment and training program that includes the numbers of supplemental nutrition assistance program participants who have gained skills, training, work or experience that will increase their ability to obtain regular employment using measures identified in subparagraph (B).

added “(D) Modifications to the state employment and training plan—Subject to the terms and conditions established by the Secretary, if the Secretary determines that the state agency’s performance with respect to employment and training outcomes is inadequate, the Secretary may require the State agency to make modifications to their employment and training plan to improve such outcomes.

added “(E) Periodic evaluation

added “(i) In general—Subject to terms and conditions established by the Secretary, not later than October 1, 2016, and not less frequently than once every 5 years thereafter, the Secretary shall conduct a study to review existing practice and research to identify employment and training program components and practices that—

added “(I) effectively assist members of households participating in the supplemental nutrition assistance program in gaining skills, training, work, or experience that will increase their ability to obtain regular employment, and

added “(II) are best integrated with statewide workforce development systems.

added “(ii) Report to congress—The Secretary shall submit a report that describes the results of the study under clause (i) to the Committee on Agriculture in the House of Representatives, and the Committee on Agriculture, Nutrition and Forestry in the Senate.”

removed Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is amended by adding at the end the following:

removed “(l) Cooperation with program research and evaluation—States, State agencies, local agencies, institutions, facilities such as data consortiums, and contractors participating in programs authorized under this Act shall cooperate with officials and contractors acting on behalf of the Secretary in the conduct of evaluations and studies under this Act and shall submit information at such time and in such manner as the Secretary may require.”

changed Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026), as amended by section 4020, 2026) is amended by adding at the end the following:

changed “(m) Pilot projects to reduce dependency “(l) Cooperation with program research and increase work effort evaluation—States, State agencies, local agencies, institutions, facilities such as data consortiums, and contractors participating in programs authorized under this Act shall cooperate with officials and contractors acting on behalf of the supplemental nutrition assistance programSecretary in the conduct of evaluations and studies under this Act and shall submit information at such time and in such manner as the Secretary may require.”

removed “(1) In general—The Secretary shall carry out, under such terms and conditions as the Secretary considers to be appropriate, pilot projects to identify best practices for employment and training programs under this Act to raise the number of work registrants who obtain unsubsidized employment, increase their earned income, and reduce their reliance on public assistance, including but not limited to the supplemental nutrition assistance program.

removed “(2) Selection criteria—Pilot projects shall be selected based on criteria the Secretary establishes, that shall include—

removed “(A) enhancing existing employment and training programs in the State;

removed “(B) agreeing to participate in the evaluation described in paragraph (3), including making available data on participants’ employment activities and post-participation employment, earnings, and public benefit receipt;

removed “(C) collaborating with the State workforce board and other job training programs in the State and local area;

removed “(D) the extent to which the pilot project’s components can be easily replicated by other States or political subdivisions; and

removed “(E) such additional criteria that ensure that the pilot projects—

removed “(i) target a variety of populations of work registrants, including childless adults, parents, and individuals with low skills or limited work experience;

removed “(ii) are selected from a range of existing employment and training programs including programs that provide—

removed “(I) section 20 workfare;

removed “(II) skills development for work registrants with limited employment history;

removed “(III) post-employment support services necessary for maintaining employment; and

removed “(IV) education leading to a recognized postsecondary credential, registered apprenticeship, or secondary school diploma or its equivalent;

removed “(iii) are located in a range of geographic areas, including rural, urban, and Indian reservations;

removed “(iv) include participants who are exempt and not exempt under section (6)(d)(2).

removed “(3) Evaluation—The Secretary shall provide for an independent evaluation of projects selected under this subsection to measure the impact of the pilot projects on the ability of each pilot project target population to find and retain employment that leads to increased household income and reduced dependency, compared to what would have occurred in the absence of the pilot project.

removed “(4) Report to congress—By September 30, 2017, the Secretary shall submit, to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that includes a description of—

removed “(A) the results of each pilot project, including an evaluation of the impact of the project on the employment, income, and public benefit receipt of the targeted population of work registrants;

removed “(B) the Federal, State, and other costs of each pilot project;

removed “(D) the planned dissemination of the reports’ findings with State agencies; and

removed “(E) the steps and funding necessary to incorporate components of pilot projects that demonstrate increased employment and earnings into State employment and training programs.

removed “(5) Funding—From amounts made available to under section 18(a)(1), the Secretary shall make $10,000,000 availalable for each of the fiscal years 2014, 2015, and 2016 to carry out this subsection. Such amounts shall remain available until expended.

removed “(6) Use of funds

removed “(A) Funds provided under this subsection for pilot projects shall be used only for—

removed “(i) pilot projects that comply with the provisions of this Act;

removed “(ii) the costs and administration of the pilot projects;

removed “(iii) the costs incurred in providing information and data to the independent evaluation under paragraph (3); and

removed “(iv) the costs of the evaluation under paragraph (3).

removed “(B) Funds made available under this subsection may not be used to supplant non-Federal funds used for existing employment and training activities.”

changed Section 18(a)(1) 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) 2026), as amended by section 4021, is amended in the 1st sentence by striking “2012” and inserting “2018”.adding at the end the following:

added “(m) Pilot projects to reduce dependency and increase work effort in the supplemental nutrition assistance program

added “(1) In general—The Secretary shall carry out, under such terms and conditions as the Secretary considers to be appropriate, pilot projects to identify best practices for employment and training programs under this Act to raise the number of work registrants who obtain unsubsidized employment, increase their earned income, and reduce their reliance on public assistance, including but not limited to the supplemental nutrition assistance program.

added “(2) Selection criteria—Pilot projects shall be selected based on criteria the Secretary establishes, that shall include—

added “(A) enhancing existing employment and training programs in the State;

added “(B) agreeing to participate in the evaluation described in paragraph (3), including making available data on participants’ employment activities and post-participation employment, earnings, and public benefit receipt;

added “(C) collaborating with the State workforce board and other job training programs in the State and local area;

added “(D) the extent to which the pilot project’s components can be easily replicated by other States or political subdivisions; and

added “(E) such additional criteria that ensure that the pilot projects—

added “(i) target a variety of populations of work registrants, including childless adults, parents, and individuals with low skills or limited work experience;

added “(ii) are selected from a range of existing employment and training programs including programs that provide—

added “(I) section 20 workfare;

added “(II) skills development for work registrants with limited employment history;

added “(III) post-employment support services necessary for maintaining employment; and

added “(IV) education leading to a recognized postsecondary credential, registered apprenticeship, or secondary school diploma or its equivalent;

added “(iii) are located in a range of geographic areas, including rural, urban, and Indian reservations; and

added “(iv) include participants who are exempt and not exempt under section (6)(d)(2).

added “(3) Evaluation—The Secretary shall provide for an independent evaluation of projects selected under this subsection to measure the impact of the pilot projects on the ability of each pilot project target population to find and retain employment that leads to increased household income and reduced dependency, compared to what would have occurred in the absence of the pilot project.

added “(4) Report to congress—By September 30, 2017, the Secretary shall submit, to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that includes a description of—

added “(A) the results of each pilot project, including an evaluation of the impact of the project on the employment, income, and public benefit receipt of the targeted population of work registrants;

added “(B) the Federal, State, and other costs of each pilot project;

added “(C) the planned dissemination of the reports’ findings with State agencies; and

added “(D) the steps and funding necessary to incorporate components of pilot projects that demonstrate increased employment and earnings into State employment and training programs.

added “(5) Funding—From amounts made available to under section 18(a)(1), the Secretary shall make $10,000,000 available for each of the fiscal years 2014, 2015, and 2016 to carry out this subsection. Such amounts shall remain available until expended.

added “(6) Use of funds

added “(A) Funds provided under this subsection for pilot projects shall be used only for—

added “(i) pilot projects that comply with the provisions of this Act;

added “(ii) the costs and administration of the pilot projects;

added “(iii) the costs incurred in providing information and data to the independent evaluation under paragraph (3); and

added “(iv) the costs of the evaluation under paragraph (3).

added “(B) Funds made available under this subsection may not be used to supplant non-Federal funds used for existing employment and training activities.”

changed Section 19(a)(2)(B) 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(B)) 2027(a)(1)) is amended by adding at the end in the following:1st sentence by striking “2012” and inserting “2018”.

removed “(iii) Limitation on use of funds—None of the funds made available to the Commonwealth of Puerto Rico under this subparagraph may be used to provide nutrition assistance in the form of cash benefits.”

added Section 19(a)(2)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 2028(a)(2)(B)) is amended by adding at the end the following:

added “(iii) Limitation on use of funds—None of the funds made available to the Commonwealth of Puerto Rico under this subparagraph may be used to provide nutrition assistance in the form of cash benefits.”

removed “(IV) to provide incentives for the consumption of fruits and vegetables among low-income individuals; or”

removed “(3) Funding

removed “(A) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $10,000,000 for fiscal year 2014 and each fiscal year thereafter. Of the amount made available under this subparagraph for each such fiscal year, $5,000,000 shall be available to carry out subsection (a)(1)(B)(I)(IV).

removed “(B) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section, the funds transferred under subparagraph (A) without further appropriation.

removed “(C) Maintenance of funding—The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding made available to the Secretary to carry out this section.”

removed “(A) for fiscal year 2013, $265,750,000;

removed “(B) for fiscal year 2014 the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2012 and June 30, 2013, and subsequently increased by $20,000,000;”

changed “(3) Funds availability—For purposes of the funds described in this subsection, “(IV) to provide incentives for the Secretary shall—consumption of fruits and vegetables among low-income individuals; or”

removed “(A) make the funds available for 2 fiscal years; and

removed “(B) allow States to carry over unexpended balances to the next fiscal year pursuant to such terms and conditions as are determined by the Secretary.”

added “(3) Funding

added “(A) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $10,000,000 for fiscal year 2014 and each fiscal year thereafter. Of the amount made available under this subparagraph for each such fiscal year, $5,000,000 shall be available to carry out subsection (a)(1)(B)(I)(IV).

added “(B) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section, the funds transferred under subparagraph (A) without further appropriation.

added “(C) Maintenance of funding—The funding provided under subparagraph (A) shall supplement (and not supplant) other Federal funding made available to the Secretary to carry out this section.”

added “(A) for fiscal year 2013, $265,750,000;

added “(B) for fiscal year 2014 the dollar amount of commodities specified in subparagraph (A) adjusted by the percentage by which the thrifty food plan has been adjusted under section 3(u)(4) between June 30, 2012 and June 30, 2013, and subsequently increased by $20,000,000;”

added “(3) Funds availability—For purposes of the funds described in this subsection, the Secretary shall—

added “(A) make the funds available for 2 fiscal years; and

added “(B) allow States to carry over unexpended balances to the next fiscal year pursuant to such terms and conditions as are determined by the Secretary.”

removed Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2036a) is amended—

changed The Section 28 of the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 2036a) is amended by adding at the end the following:amended—

removed “29. Retailer trafficking

removed “(a) Purpose—The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retailer program integrity. Additional funds are provided to supplement the Department’s payment accuracy, and retailer and recipient integrity activities.

removed “(b) Funding

removed “(1) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2014 and each fiscal year thereafter.

removed “(2) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1) without further appropriation.

removed “(3) Maintenance of funding—The funding provided under paragraph (1) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.”

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

added “29. Retailer trafficking

added “(a) Purpose—The purpose of this section is to provide the Department of Agriculture with additional resources to prevent trafficking in violation of this Act by strengthening recipient and retailer program integrity. Additional funds are provided to supplement the Department’s payment accuracy, and retailer and recipient integrity activities.

added “(b) Funding

added “(1) In general—Out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this section not less than $5,000,000 for fiscal year 2014 and each fiscal year thereafter.

added “(2) Receipt and acceptance—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1) without further appropriation.

added “(3) Maintenance of funding—The funding provided under paragraph (1) shall supplement (and not supplant) other Federal funding for programs carried out under this Act.”

removed “(t) “Supplemental nutritional assistance program” means the program operated pursuant to this Act.”

added “(t) “Supplemental nutritional assistance program” means the program operated pursuant to this Act.”

removed The Secretary shall set the tolerance level for excluding small errors for the purposes of section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c))—

added The Secretary shall set the tolerance level for excluding small errors for the purposes of section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c))—

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

“(c) Pilot grant program for purchase of fresh fruits and vegetables

“(1) In general—Using amounts made available to carry out subsection (b), the Secretary of Agriculture shall conduct a pilot program under which the Secretary will give not more than five participating States the option of receiving a grant in an amount equal to the value of the commodities that the participating State would otherwise receive under this section for each of fiscal years 2014 through 2018.

“(2) Use of grant funds—A participating State receiving a grant under this subsection may use the grant funds solely to purchase fresh fruits and vegetables for distribution to schools and service institutions in the State that participate in the food service programs under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

“(3) Selection of participating States—The Secretary shall select participating States from applications submitted by the States.

“(4) Reporting requirements

“(A) School and service institution requirement—Schools and service institutions in a participating State shall keep records of purchases of fresh fruits and vegetables made using the grant funds and report such records to the State.

“(B) State requirement—Each participating State shall submit to the Secretary a report on the success of the pilot program in the State, including information on—

“(i) the amount and value of each type of fresh fruit and vegetable purchased by the State; and

“(ii) the benefit provided by such purchases in conducting the school food service in the State, including meeting school meal requirements.”

changed Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking “$30,000,000 for each of fiscal years 2008 “2008 through 2012” and inserting “$15,000,000 for each of fiscal years 2014 “2014 through 2018”.

changed Section 306A(i)(2) 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a(i)(2)) 1926(a)(19)) is amended by striking “$35,000,000 for each of fiscal years 2008 through 2012” and inserting “$27,000,000 for each of fiscal years 2014 through 2018”.adding at the end the following new paragraph:

added “(26) Essential community facilities technical assistance and training

added “(A) In general—The Secretary may make grants to public bodies and private nonprofit corporations, such as States, counties, cities, townships, and incorporated towns and villages, boroughs, authorities, districts and Indian tribes on Federal and State reservations which will serve rural areas for the purpose of enabling them to provide to associations described in this subsection technical assistance and training, with respect to essential community facilities programs authorized under this subsection, to—

added “(i) assist communities in identifying and planning for community facility needs;

added “(ii) identify public and private resources to finance community facilities needs;

added “(iii) prepare reports and surveys necessary to request financial assistance to develop community facilities;

added “(iv) prepare applications for financial assistance;

added “(v) improve the management, including financial management, related to the operation of community facilities; or

added “(vi) assist with other areas of need identified by the Secretary.

added “(B) Selection priority—In selecting recipients of grants under this paragraph, the Secretary shall give priority to private, nonprofit, or public organizations that have experience in providing technical assistance and training to rural entities.

added “(C) Funding—Not less than 3 nor more than 5 percent of any funds appropriated to carry out each of the essential community facilities grant, loan and loan guarantee programs as authorized under this subsection for any fiscal year shall be reserved for grants under this paragraph.”

changed Section 306E(d) 306A(i)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d)) 1926a(i)(2)) is amended by striking “$10,000,000 “$35,000,000 for each of fiscal years 2008 through 2012” and inserting “$5,000,000 “$27,000,000 for each of fiscal years 2014 through 2018”.

added Section 306E(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d)) is amended by striking “$10,000,000 for each of fiscal years 2008 through 2012” and inserting “$5,000,000 for each of fiscal years 2014 through 2018”.

removed Section 310B(e)(12) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)(12)) is amended by striking “$50,000,000 for each of fiscal years 2008 through 2012” and inserting “$40,000,000 for each of fiscal years 2014 through 2018”.

changed Section 310B(g)(9)(B)(v)(I) 310B(e)(12) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) 1932(e)(12)) is amended—amended by striking “$50,000,000 for each of fiscal years 2008 through 2012” and inserting “$40,000,000 for each of fiscal years 2014 through 2018”.

added Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) is amended—

removed “310H. Intermediary relending program

removed “(a) In general—The Secretary shall make loans to the entities, for the purposes, and subject to the terms and conditions specified in the 1st, 2nd, and last sentences of section 623(a) of the Community Economic Development Act of 1981 (42 U.S.C. 9812(a)).

removed “(b) Limitations on authorization of appropriations—For loans under subsection (a), there are authorized to be appropriated to the Secretary not more than $10,000,000 for each of fiscal years 2014 through 2018.”

added “310H. Intermediary relending program

added “(a) In general—The Secretary shall make loans to the entities, for the purposes, and subject to the terms and conditions specified in the 1st, 2nd, and last sentences of section 623(a) of the Community Economic Development Act of 1981 (42 U.S.C. 9812(a)).

added “(b) Limitations on authorization of appropriations—For loans under subsection (a), there are authorized to be appropriated to the Secretary not more than $10,000,000 for each of fiscal years 2014 through 2018.”

removed Section 333 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983) is amended—

removed “(6) with respect to water and waste disposal direct and guaranteed loans provided under section 306, encourage, to the maximum extent practicable, private or cooperative lenders to finance rural water and waste disposal facilities by—

removed “(A) maximizing the use of loan guarantees to finance eligible projects in rural communities where the population exceeds 5,500;

removed “(B) maximizing the use of direct loans to finance eligible projects in rural communities where the impact on rate payers will be material when compared to financing with a loan guarantee;

removed “(C) establishing and applying a materiality standard when determining the difference in impact on rate payers between a direct loan and a loan guarantee;

removed “(D) in the case of projects that require interim financing in excess of $500,000, requiring that such projects initially seek such financing from private or cooperative lenders; and

removed “(E) determining if an existing direct loan borrower can refinance with a private or cooperative lender, including with a loan guarantee, prior to providing a new direct loan.”

added Section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981) is amended by adding at the end the following:

added “(d) Rural college coordinated strategy—The Secretary shall develop a coordinated strategy across the relevant programs within the Rural Development mission areas to serve the specific, local needs of rural communities when making investments in rural community colleges and technical colleges through other current authorities. During the development of a coordinated strategy, the Secretary shall consult with groups representing rural-serving community colleges and technical colleges to coordinate critical investments in rural community colleges and technical colleges involved in workforce training. Nothing in this subsection shall be construed to provide a priority for funding within current authorities. The Secretary shall use the coordinated strategy and information developed for the strategy to more effectively serve rural communities with respect to investments in community colleges and technical colleges.”

removed “(h) Simplified application forms—Except as provided in subsection (g)(2) of this section, the Secretary shall, to the maximum extent practicable, develop a simplified application process, including a single page application where possible, for grants and relending authorized under sections 306, 306C, 306D, 306E, 310B(b), 310B(c), 310B(e), 310B(f), 310H, 379B, and 379E.”

changed Section 379B(d) 333 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008p(d)) 1983) is amended to read as follows:amended—

added “(6) with respect to water and waste disposal direct and guaranteed loans provided under section 306, encourage, to the maximum extent practicable, private or cooperative lenders to finance rural water and waste disposal facilities by—

added “(A) maximizing the use of loan guarantees to finance eligible projects in rural communities where the population exceeds 5,500;

added “(B) maximizing the use of direct loans to finance eligible projects in rural communities where the impact on rate payers will be material when compared to financing with a loan guarantee;

added “(C) establishing and applying a materiality standard when determining the difference in impact on rate payers between a direct loan and a loan guarantee;

added “(D) in the case of projects that require interim financing in excess of $500,000, requiring that such projects initially seek such financing from private or cooperative lenders; and

added “(E) determining if an existing direct loan borrower can refinance with a private or cooperative lender, including with a loan guarantee, prior to providing a new direct loan.”

removed “(d) Authorization of appropriations—There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2014 through 2018.”

added “(h) Simplified application forms—Except as provided in subsection (g)(2) of this section, the Secretary shall, to the maximum extent practicable, develop a simplified application process, including a single page application where possible, for grants and relending authorized under sections 306, 306C, 306D, 306E, 310B(b), 310B(c), 310B(e), 310B(f), 310H, 379B, and 379E.”

removed Section 379E(d)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s(d)(2)) is amended by striking “$40,000,000 for each of fiscal years 2009 through 2012” and inserting “$20,000,000 for each of fiscal years 2014 through 2018”.

added Section 379B(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008p(d)) is amended to read as follows:

added “(d) Authorization of appropriations—There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2014 through 2018.”

added Section 379E(d)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s(d)(2)) is amended by striking “$40,000,000 for each of fiscal years 2009 through 2012” and inserting “$20,000,000 for each of fiscal years 2014 through 2018”.

removed Section 384S of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc–18) is amended by striking “$50,000,000 for the period of fiscal years 2008 through 2012” and inserting “$20,000,000 for each of fiscal years 2014 through 2018”.

added “(5) the sufficiency of infrastructure along waterways in the United States and the impact of such infrastructure on the movement of agricultural goods in terms of safety, efficiency and speed, as well as the benefits derived through upgrades and repairs to locks and dams.”

Section 1408A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended—

Section 1419A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended—

“(c) Preference—In awarding grants under this section, the Secretary shall give a preference to policy research centers that have extensive databases, models, and demonstrated experience in providing Congress with agricultural market projections, rural development analysis, agricultural policy analysis, and baseline projections at the farm, multiregional, national, and international levels.”

“(e) Authorization of appropriations—There are authorized to be appropriated to carry out this section—

“(1) such sums as are necessary for each of fiscal years 1996 through 2013; and

“(2) $5,000,000 for each of fiscal years 2014 through 2018.”

changed Effective October 1, 2013, section1424A section 1424A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a) is repealed.

Section 1469 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3315) is amended—

“(b) Administrative expenses

“(1) In general—Except as provided in paragraph (2) and notwithstanding any other provision of law, the Secretary may retain not more than 4 percent of amounts made available for agricultural research, extension, and teaching assistance programs for the administration of those programs authorized under this Act or any other Act.

“(2) Exceptions—The limitation on administrative expenses under paragraph (1) shall not apply to peer panel expenses under subsection (d) or any other provision of law related to the administration of agricultural research, extension, and teaching assistance programs that contains a limitation on administrative expenses that is less than the limitation under paragraph (1).

“(c) Agreements with non-Federal entities

“(1) Former agricultural research facilities of the Department—To the maximum extent practicable, the Secretary, for purposes of supporting ongoing research and information dissemination activities, including supporting research and those activities through co-locating scientists and other technical personnel, sharing of laboratory and field equipment, and providing financial support, shall enter into grants, contracts, cooperative agreements, or other legal instruments with former Department of Agriculture agricultural research facilities.

changed “(2) Agreements with agricultural research organizations—The Secretary, for purposes of receiving from a non-Federal agricultural research organization support for agricultural research, including staffing, laboratory and field equipment, or direct financial assistance, may enter into grants, contracts, cooperative agreements, or other legal instruments with an a non-Federal agricultural research organization, the operation of which is consistent with the research mission and programs of an agricultural research facility of the Department of Agriculture.”

Section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) is amended—

“(e) Farm business management encouraged—Following the completion of a peer review process for grant proposals received under this section, the Secretary shall give a priority to grant proposals found in the review process to be scientifically meritorious using the same criteria the Secretary uses to give priority to grants under section 1672D(b).”

“(C) $20,000,000 for each of fiscal years 2014 through 2018.”

Section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632) is amended—

“(d) Research projects—In carrying out this section, the Secretary shall award competitive grants on the basis of—

“(1) an initial scientific peer review conducted by a panel of subject matter experts from Federal agencies, non-Federal entities, and the specialty crop industry; and

“(2) a final funding determination made by the Secretary based on a review and ranking for merit, relevance, and impact conducted by a panel of specialty crop industry representatives for the specific specialty crop.”

“(1) Mandatory funding

“(A) Fiscal years 2008 through 2012—Of the funds”

“(B) Subsequent funding—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section—

“(i) $50,000,000 for fiscal years 2014 and 2015;

“(ii) $55,000,000 for fiscal years 2016 and 2017; and

“(iii) $65,000,000 for fiscal year 2018 and each fiscal year thereafter.”

Section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f) is amended—

“(A) basic livestock, forest management, and crop farming practices;

“(B) innovative farm, ranch, and private, nonindustrial forest land transfer strategies;

“(C) entrepreneurship and business training;

“(D) financial and risk management training (including the acquisition and management of agricultural credit);

“(E) natural resource management and planning;

“(F) diversification and marketing strategies;

“(G) curriculum development;

“(H) mentoring, apprenticeships, and internships;

“(I) resources and referral;

“(J) farm financial benchmarking;

“(K) assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers;

“(L) agricultural rehabilitation and vocational training for veterans; and

“(M) other similar subject areas of use to beginning farmers or ranchers.”

“(8) Military veteran beginning farmers and ranchers

“(A) In general—Not less than 5 percent of the funds used to carry out this subsection for a fiscal year shall be used to support programs and services that address the needs of military veteran beginning farmers and ranchers.

“(B) Coordination permitted—A recipient of a grant under this section using the grant as described in subparagraph (A) may coordinate with a recipient of a grant under section 1680 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933) in addressing the needs of military veteran beginning farmers and ranchers with disabilities.”

“(11) Limitation on indirect costs—A recipient of a grant under this section may not use more than 10 percent of the funds provided by the grant for the indirect costs of carrying out the initiatives described in paragraph (1).”

“(C) $20,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.”

Section 14113 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8913) is amended—

changed “(1) “(A) such sums as are necessary for each of fiscal years 2008 through 2013; and

changed “(2) “(B) $15,000,000 for each of fiscal years 2014 through 2018.”

changed “(1) “(A) $25,000,000 for each of fiscal years 2008 through 2013; and

changed “(2) “(B) $15,000,000 for each of fiscal years 2014 through 2018.”

“(2) Tiered application process—In carrying out this subsection, the Secretary shall establish a three-tiered application, evaluation, and oversight process that varies based on the cost of the proposed project with the process most simplified for projects referred to in subparagraph (A), more comprehensive for projects referred to in subparagraph (B), and most comprehensive for projects referred to in subparagraph (C). The three tiers for such process shall be as follows:

“(A) Tier 1—Projects for which the cost of the project funded under this subsection is not more than $80,000.

“(B) Tier 2—Projects for which the cost of the project funded under this subsection is more than $80,000 but less than $200,000.

“(C) Tier 3—Projects for which the cost of the project funded under this subsection is $200,000 or more.”

“(2) Fiscal years 2014 through 2018—There are authorized to be appropriated to carry out this section $45,000,000 for each of fiscal years 2014 through 2018.”

“(c) Modernization and technology upgrade for national organic program—The Secretary shall modernize database and technology systems of the national organic program.”

“(6) $11,000,000 for each of fiscal years 2014 through 2018.”

added “(e) Exemption of certified organic products from promotion order assessments

added “(1) In general—Notwithstanding any provision of a commodity promotion law, a person that produces, handles, markets, or imports organic products may be exempt from the payment of an assessment under a commodity promotion law with respect to any agricultural commodity that is certified as “organic” or “100 percent organic” (as defined in part 205 of title 7, Code of Federal Regulations or a successor regulation).

added “(2) Split operations—The exemption described in paragraph (1) shall apply to the certified “organic” or ‘100 percent organic’ (as defined in part 205 of title 7 of the Code of Federal Regulations (or a successor regulation) products of a producer, handler, or marketer regardless of whether the agricultural commodity subject to the exemption is produced, handled, or marketed by a person that also produces, handles, or markets conventional or nonorganic agricultural products, including conventional or nonorganic agricultural products of the same agricultural commodity as that for which the exemption is claimed.

added “(3) Approval—The Secretary shall approve the exemption of a person under this subsection if the person maintains a valid organic certificate issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

added “(4) Termination of effectiveness—This subsection shall be effective until the date on which the Secretary issues an organic commodity promotion order in accordance with subsection (f).

added “(5) Regulations—The Secretary shall promulgate regulations concerning eligibility and compliance for an exemption under paragraph (1).”

added “(f) Organic commodity promotion order

added “(1) Definitions—In this subsection:

added “(A) Certified organic farm—The term “certified organic farm” has the meaning given the term in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502).

added “(B) Covered person—The term “covered person” means a producer, handler, marketer, or importer of an organic agricultural commodity.

added “(C) Dual-covered agricultural commodity—The term “dual-covered agricultural commodity” means an agricultural commodity that—

added “(i) is produced on a certified organic farm; and

added “(ii) is covered under both—

added “(I) an organic commodity promotion order issued pursuant to paragraph (2); and

added “(II) any other agricultural commodity promotion order issued under section 514.

added “(2) Authorization—The Secretary may issue an organic commodity promotion order under section 514 that includes any agricultural commodity that—

added “(A) is produced or handled (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)) and that is certified to be sold or labeled as “organic” or “100 percent organic” (as defined in part 205 of title 7, Code of Federal Regulations or a successor regulation)); or

added “(B) is imported with a valid organic certificate (as defined in such part).

added “(3) Election—If the Secretary issues an organic commodity promotion order described in paragraph (2), a covered person may elect, for applicable dual-covered agricultural commodities and in the sole discretion of the covered person, whether to be assessed under the organic commodity promotion order or another applicable agricultural commodity promotion order.

added “(4) Regulations—The Secretary shall promulgate regulations concerning eligibility and compliance for an exemption under paragraph (1).”

added “(E) products, as a class, that are produced on a certified organic farm (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)) and that are certified to be sold or labeled as “organic” or “100 percent organic” (as defined in part 205 of title 7, Code of Federal Regulations or a successor regulation));”

The Organic Foods Production Act of 1990 is amended by inserting after section 2122 (7 U.S.C. 6521) the following new section:

“2122A. Investigation and enforcement

“(a) Expedited administrative hearing—The Secretary shall establish an expedited administrative hearing procedure under which the Secretary may suspend or revoke the organic certification of a producer or handler or the accreditation of a certifying agent in accordance with subsection (d). Such a hearing may be conducted in addition to a hearing conducted pursuant to section 2120.

“(b) Investigation

“(1) In general—The Secretary may take such investigative actions as the Secretary considers to be necessary to carry out this title—

“(A) to verify the accuracy of any information reported or made available under this title; and

“(B) to determine, with regard to actions, practices, or information required under this title, whether a person covered by this title has committed a violation of this title.

“(2) Investigative powers—The Secretary may administer oaths and affirmations, subpoena witnesses, compel attendance of witnesses, take evidence, and require the production of any records required to be maintained under section 2112(d) or 2116(c) that are relevant to the investigation.

“(c) Unlawful Act—It shall be unlawful and a violation of this title for any person covered by this title—

“(1) to refuse to provide information required by the Secretary under this title; or

“(2) to violate—

“(A) a suspension or revocation of the organic certification of a producer or handler; or

“(B) a suspension or revocation of the accreditation of a certifying agent.

“(d) Enforcement

“(1) Suspension

“(A) In general—The Secretary may, after notice and opportunity for an expedited administrative hearing, suspend the organic certification of a producer, handler or the accreditation of a certifying agent if—

“(i) the Secretary, during such expedited administrative hearing, proved that—

“(I) in the case of a producer or handler, the producer or handler—

“(aa) has recklessly committed a violation of a term, condition, or requirement of the organic plan to which the producer or handler is subject; or

“(bb) has recklessly committed, or is recklessly committing, a violation of this title; or

“(II) in the case of a certifying agent, the agent has recklessly committed, or is recklessly committing, a violation of this title; or

“(ii) the producer, handler, or certifying agent has waived such expedited administrative hearing.

“(B) Issuance of suspension—A suspension issued under this paragraph shall be issued not later than five days after the date on which—

“(i) the expedited administrative hearing referred to in clause (i) of subparagraph (A) concludes; or

“(ii) the Secretary receives notice of the waiver referred to in clause (ii) of such subparagraph.

“(C) Duration of suspension—The period of a suspension issued under this paragraph shall be not more than 90 days, beginning on the date on which the Secretary issues the suspension.

“(D) Curing of violations

“(i) In general—The Secretary may not issue a suspension of a certification or accreditation under this paragraph if the producer, handler, or certifying agent subject to such suspension—

“(I) before the date on which the suspension would otherwise have been issued, cures, or corrects the deficiency giving rise to, the violation for which the certification or accreditation would have been suspended; or

“(II) within a reasonable timeframe (as determined by the Secretary), enters into a settlement with the Secretary regarding a deficiency referred to in subclause (I).

changed “(ii) During suspension—The Secretary shall terminate the suspension of an organic certification or accreditation issued under this paragraph if the producer, handler, or certifying agent subject to such suspension cures the violation for which the certification or accreditation was suspended under such subparagraph this paragraph before the date on which the period of the suspension ends.

“(2) Revocation

“(A) In general—The Secretary may, after notice and opportunity for an expedited administrative hearing under this section and an expedited administrative appeal under section 2121, revoke the organic certification of a producer or handler, or the accreditation of a certifying agent if—

“(i) the Secretary, during such hearing, proved that—

“(I) in the case of a producer or handler, the producer or handler—

“(aa) has knowingly committed an egregious violation of a term, condition, or requirement of the organic plan to which the producer or handler is subject; or

“(bb) has knowingly committed, or is knowingly committing, an egregious violation of this title; or

“(II) in the case of a certifying agent, the agent has knowingly committed, or is knowingly committing, an egregious violation of this title; or

“(ii) the producer, handler, or certifying agent has waived such expedited administrative hearing and such an expedited administrative appeal.

“(B) Initiation of revocation proceedings

“(i) In general—If the Secretary finds, during an investigation or during the period of a suspension under paragraph (1), that a producer, handler, or certifying agent has knowingly committed an egregious violation of this title, the Secretary shall initiate revocation proceedings with respect to such violation not later than 30 days after the date on which the producer, handler, or certifying agent receives notice of such finding in accordance with clause (ii). The Secretary may not initiate revocation proceedings with respect to such violation after the date on which that 30-day period ends.

“(ii) Notice—Not later than five days after the date on which the Secretary makes the finding described in clause (i), the Secretary shall provide to the producer, handler, or certifying agent notice of such finding.

“(e) Appeal

“(1) Suspensions

“(A) In general—The suspension of a certification or accreditation under subsection (d)(1) by the Secretary may be appealed to a United States district court in accordance with section 2121(b) not later than 30 business days after the date on which the person subject to such suspension receives notice of the suspension.

“(B) Suspension final and conclusive—A suspension of a certification or accreditation under subsection (d)(1) by the Secretary shall be final and conclusive—

“(i) in the case of a suspension that is appealed under subparagraph (A) within the 30-day period specified in such subparagraph, on the date on which judicial review of such suspension is complete; or

“(ii) in the case of a suspension that is not so appealed, the date on which such 30-day period ends.

“(2) Revocations

“(A) In general—The revocation of a certification or an accreditation under subsection (d)(2) by the Secretary may be appealed to a United States district court in accordance with section 2121(b) not later than 30 business days after the date on which the person subject to such revocation receives notice of the revocation.

“(B) Revocation final and conclusive—A revocation of a certification or an accreditation under subsection (d)(2) by the Secretary shall be final and conclusive—

“(i) in the case of a revocation that is appealed under subparagraph (A) within the 30-day period specified in such subparagraph, on the date on which judicial review of such revocation is complete; or

“(ii) in the case of a revocation that is not so appealed, the date on which such 30-day period ends.

“(3) Standards for review of suspensions and revocations—A suspension or revocation of a certification or an accreditation under subsection (d) shall be reviewed in accordance with the standards of review specified in section 706(2) of title 5, United States Code.

“(f) Noncompliance

“(1) In general—If a person covered by this title fails to obey a revocation of a certification or an accreditation under subsection (d)(2) after such revocation has become final and conclusive or after the appropriate United States district court has entered a final judgment in favor of the Secretary, the United States may apply to the appropriate United States district court for enforcement of such revocation.

“(2) Enforcement—If the court determines that the revocation was lawfully made and duly served and that the person violated the revocation, the court shall enforce the revocation.

“(3) Civil penalty—If the court finds that the person violated the revocation of a certification or an accreditation under subsection (d)(2), the person shall be subject to one or more of the penalties provided in subsections (a) and (b) of section 2120.

“(g) Violation of this title defined—In this section, the term “violation of this title” means a violation specified in section 2120.”

Section 101 of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465) is amended—

“(b) Grants based on value and acreage—Subject to subsection (c), for each State whose application for a grant for a fiscal year that is accepted by the Secretary under subsection (f), the amount of the grant for such fiscal year to the State under this section shall bear the same ratio to the total amount made available under subsection (l)(1) for such fiscal year as—

“(1) the average of the most recent available value of specialty crop production in the State and the acreage of specialty crop production in the State, as demonstrated in the most recent Census of Agriculture data; bears to

“(2) the average of the most recent available value of specialty crop production in all States and the acreage of specialty crop production in all States, as demonstrated in the most recent Census of Agriculture data.”

added “(4) an assurance that any grant funds received under this section that are used for equipment or capital-related research costs determined to enhance the competitiveness of specialty crops—

added “(A) shall be supplemented by the expenditure of State funds in an amount that is not less than 50 percent of such costs during the fiscal year in which such costs were incurred; and

added “(B) shall be completely replaced by State funds on the day after the date on which such fiscal year ends.”

“(j) Multistate projects—Not later than 180 days after the effective date of the Federal Agriculture Reform and Risk Management Act of 2013, the Secretary of Agriculture shall issue guidance for the purpose of making grants to multistate projects under this section for projects involving—

“(1) food safety;

“(2) plant pests and disease;

“(3) research;

“(4) crop-specific projects addressing common issues; and

“(5) any other area that furthers the purposes of this section, as determined by the Secretary.

“(k) Administration

“(1) Department—The Secretary of Agriculture may not use more than 3 percent of the funds made available to carry out this section for a fiscal year for administrative expenses.

“(2) States—A State receiving a grant under this section may not use more than 8 percent of the funds received under the grant for a fiscal year for administrative expenses.”

“(1) In general—Of the funds”

“(D) $72,500,000 for fiscal years 2014 through 2017; and

“(E) $85,000,000 for fiscal year 2018.”

“(2) Multistate projects—Of the funds made available under paragraph (1), the Secretary may use to carry out subsection (j), to remain available until expended—

“(A) $1,000,000 for fiscal year 2014;

“(B) $2,000,000 for fiscal year 2015;

“(C) $3,000,000 for fiscal year 2016;

“(D) $4,000,000 for fiscal year 2017; and

“(E) $5,000,000 for fiscal year 2018.”

“(e) National clean plant network

“(1) In general—The Secretary shall establish a program to be known as the “National Clean Plant Network” (referred to in this subsection as the “Program”).

“(2) Requirements—Under the Program, the Secretary shall establish a network of clean plant centers for diagnostic and pathogen elimination services—

“(A) to produce clean propagative plant material; and

“(B) to maintain blocks of pathogen-tested plant material in sites located throughout the United States.

changed “(3) Availability of clean plant source material—Clean plant source material produced or maintained under the Program may be made available to—

“(A) a State for a certified plant program of the State; and

“(B) private nurseries and producers.

“(4) Consultation and collaboration—In carrying out the Program, the Secretary shall—

“(A) consult with—

“(i) State departments of agriculture; and

“(ii) land-grant colleges and universities and NLGCA Institutions (as those terms are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and

“(B) to the extent practicable and with input from the appropriate State officials and industry representatives, use existing Federal or State facilities to serve as clean plant centers.

“(5) Funding for fiscal year 2013—There is authorized to be appropriated to carry out the Program $5,000,000 for fiscal year 2013.”

“(5) $62,500,000 for fiscal years 2014 through 2017; and

“(6) $75,000,000 for fiscal year 2018.”

“(g) Relationship to other law—The use of Commodity Credit Corporation funds under this section to provide technical assistance shall not be considered an allotment or fund transfer from the Commodity Credit Corporation for purposes of the limit on expenditures for technical assistance imposed by section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).”

added “(h) Use of funds for clean plant network—Of the funds made available under subsection (f) to carry out this section for a fiscal year, not less than $5,000,000 shall be available to carry out the national clean plant network under subsection (e).”

Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended—

“(17) Margin coverage for catfish

“(A) In general—The Corporation shall offer to enter into a contract with a qualified entity to conduct research and development regarding a policy to insure producers against reduction in the margin between the market value of catfish and selected costs incurred in the production of catfish.

“(B) Eligibility—Eligibility for the policy described in subparagraph (A) shall be limited to freshwater species of catfish that are propagated and reared in controlled or selected environments.

“(C) Implementation—The Board shall review the policy described in subparagraph (B) under subsection 508(h) and approve the policy if the Board finds that the policy—

“(i) will likely result in a viable and marketable policy consistent with this subsection;

“(ii) would provide crop insurance coverage in a significantly improved form;

“(iii) adequately protects the interests of producers; and

“(iv) the proposed policy meets other requirements of this subtitle determined appropriate by the Board.

“(18) Biomass and sweet sorghum energy crop insurance policies

“(A) Authority—The Corporation shall offer to enter into 1 or more contracts with qualified entities to carry out research and development regarding—

“(i) a policy to insure biomass sorghum that is grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased products; and

“(ii) a policy to insure sweet sorghum that is grown for a purpose described in clause (i).

“(B) Research and development—Research and development with respect to each of the policies required in subparagraph (A) shall evaluate the effectiveness of risk management tools for the production of biomass sorghum or sweet sorghum, including policies and plans of insurance that—

“(i) are based on market prices and yields;

“(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, evaluate the policies and plans of insurance based on the use of weather indices, including excessive or inadequate rainfall, to protect the interest of crop producers; and

“(iii) provide protection for production or revenue losses, or both.

“(19) Study on swine catastrophic disease program

“(A) In general—The Corporation shall contract with a qualified person to conduct a study to determine the feasibility of insuring swine producers for a catastrophic event.

“(B) Report—Not later than 1 year after the date of the enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).

“(20) Whole farm diversified risk management insurance plan

changed “(A) In general—The Corporation shall conduct activities or enter into contracts to carry out research and development to develop a whole farm risk management insurance plan, with a liability limitation of $1,000,000, $1,250,000, that allows a diversified crop or livestock producer the option to qualify for an indemnity if actual gross farm revenue is below 85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected of the producer, as determined by the Corporation.

“(B) Eligible producers—The Corporation shall permit producers (including direct-to-consumer marketers and producers servicing local and regional and farm identity-preserved markets) who produce multiple agricultural commodities, including specialty crops, industrial crops, livestock, and aquaculture products, to participate in the plan in lieu of any other plan under this subtitle.

“(C) Diversification—The Corporation may provide diversification-based additional coverage payment rates, premium discounts, or other enhanced benefits in recognition of the risk management benefits of crop and livestock diversification strategies for producers that grow multiple crops or that may have income from the production of livestock that uses a crop grown on the farm.

“(D) Market readiness—The Corporation may include coverage for the value of any packing, packaging, or any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the commodity from the field.

“(E) Report—Not later than 2 years after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results and feasibility of the research and development conducted under this paragraph, including an analysis of potential adverse market distortions.

“(21) Study on poultry catastrophic disease program

“(A) In general—The Corporation shall contract with a qualified person to conduct a study to determine the feasibility of insuring poultry producers for a catastrophic event.

“(B) Report—Not later than 1 year after the date of the enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).

“(22) Poultry business interruption insurance policy

“(A) Authority—The Corporation shall offer to enter into a contract or cooperative agreement with a university or other legal entity to carry out research and development regarding a policy to insure the commercial production of poultry against business interruptions caused by integrator bankruptcy.

“(B) Research and development—As part of the research and development conducted pursuant to a contract or cooperative agreement entered into under subparagraph (A), the entity shall—

“(i) evaluate the market place for business interruption insurance that is available to poultry growers;

“(ii) determine what statutory authority would be necessary to implement a business interruption insurance through the Corporation;

“(iii) assess the feasibility of a policy or plan of insurance offered under this subtitle to insure against losses due to the bankruptcy of an business integrator; and

“(iv) analyze the costs to the Federal Government of a Federal business interruption insurance program for poultry growers.

“(C) Definitions—In this paragraph, the terms “poultry” and “poultry grower” have the meanings given those terms in section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).

“(D) Deadline for contract or cooperative agreement—Not later than six months after the date of the enactment of this paragraph, the Corporation shall enter into the contract or cooperative agreement required by subparagraph (A).

changed “(E) Deadline for completion of research and development—Not later than one year after the date of the enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the research and development conducted pursuant to the contract or cooperative agreement entered into under subparagraph (A).”(A).

added “(23) Study of food safety insurance

added “(A) In general—The Corporation shall offer to enter into a contract with 1 or more qualified entities to conduct a study to determine whether offering policies that provide coverage for specialty crops from food safety and contamination issues would benefit agricultural producers.

added “(B) Subject—The study described in subparagraph (A) shall evaluate policies and plans of insurance coverage that provide protection for production or revenue impacted by food safety concerns including, at a minimum, government, retail, or national consumer group announcements of a health advisory, removal, or recall related to a contamination concern.

added “(C) Report—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).”

removed Section 11013(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8322(d)) is amended by striking “2012” and inserting “2018”.

added Section 11013(d) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8322(d)) is amended by striking “2012” and inserting “2018”.

removed Subtitle E of title X of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8301 et seq.) is amended by inserting after section 10409 the following new section:

removed “10409A. National animal health laboratory network

removed “(a) In general—The Secretary shall enter into contracts, grants, cooperative agreements, or other legal instruments with eligible laboratories for any of the following purposes:

removed “(1) To enhance the capability of the Secretary to detect, and respond in a timely manner to, emerging or existing threats to animal health and to support the protection of public health, the environment, and the agricultural economy of the United States.

removed “(2) To provide the capacity and capability for standardized—

removed “(A) test procedures, reference materials, and equipment;

removed “(B) laboratory biosafety and biosecurity levels;

removed “(C) quality management system requirements;

removed “(D) interconnected electronic reporting and transmission of data; and

removed “(E) evaluation for emergency preparedness.

removed “(3) To coordinate the development, implementation, and enhancement of national veterinary diagnostic laboratory capabilities, with special emphasis on surveillance planning and vulnerability analysis, technology development and validation, training, and outreach.

removed “(b) Eligibility—An eligible laboratory under this section is a diagnostic laboratory meeting specific criteria developed by the Secretary, in consultation with State animal health officials and State and university veterinary diagnostic laboratories.

removed “(c) Priority—To the extent practicable and to the extent capacity and specialized expertise may be necessary, the Secretary shall give priority to existing Federal, State, and university facilities.

removed “(d) Authorization of appropriations—There are authorized to be appropriated to carry out this section $15,000,000 for each of fiscal years 2014 through 2018.”

“(iii) $10,000,000 for each of fiscal years 2014 through 2018.”

“(E) Authorization of appropriations—There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2014 through 2018.”

“(7) Veteran farmer or rancher—The term “veteran farmer or rancher” means a farmer or rancher who served in the active military, naval, or air service, and who was discharged or released from the service under conditions other than dishonorable.”

changed Section 2901 Subsection (d) of section 14204 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1818) (7 U.S.C. 2008q–1) is amended by striking “this Act or an amendment made by this Act” and inserting “this Act, an amendment made by this Act, the Federal Agriculture Reform and Risk Management Act of 2013, or an amendment made by the Federal Agriculture Reform and Risk Management Act of 2013”.to read as follows:

added “(d) Authorization of appropriations—There are authorized to be appropriated to carry out this section—

added “(1) such sums as are necessary for each of fiscal years 2008 through 2013; and

added “(2) $10,000,000 for each of fiscal years 2014 through 2018.”

added Section 2901 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1818) is amended by striking “this Act or an amendment made by this Act” and inserting “this Act, an amendment made by this Act, the Federal Agriculture Reform and Risk Management Act of 2013, or an amendment made by the Federal Agriculture Reform and Risk Management Act of 2013”.

removed “309. Office of Tribal Relations

removed “The Secretary shall establish in the Office of the Secretary an Office of Tribal Relations to advise the Secretary on policies related to Indian tribes.”

removed “(9) the authority of the Secretary to establish in the Office of the Secretary the Office of Tribal Relations in accordance with section 309; and”

changed “219. Military Veterans Agricultural Liaison“309. Office of Tribal Relations

changed “(a) Authorization—The “The Secretary shall establish in the Department Office of the position Secretary an Office of Military Veterans Agricultural Liaison.Tribal Relations to advise the Secretary on policies related to Indian tribes.”

removed “(b) Duties—The Military Veterans Agricultural Liaison shall—

removed “(1) provide information to returning veterans about, and connect returning veterans with, beginning farmer training and agricultural vocational and rehabilitation programs appropriate to the needs and interests of returning veterans, including assisting veterans in using Federal veterans educational benefits for purposes relating to beginning a farming or ranching career;

removed “(2) provide information to veterans concerning the availability of and eligibility requirements for participation in agricultural programs, with particular emphasis on beginning farmer and rancher programs;

removed “(3) serve as a resource for assisting veteran farmers and ranchers, and potential farmers and ranchers, in applying for participation in agricultural programs; and

removed “(4) advocate on behalf of veterans in interactions with employees of the Department.”

changed “(10) the authority of the Secretary to establish in the Department Office of the position Secretary the Office of Military Veterans Agricultural Liaison Tribal Relations in accordance with section 219.”309; and”

added “219. Military Veterans Agricultural Liaison

added “(a) Authorization—The Secretary shall establish in the Department the position of Military Veterans Agricultural Liaison.

added “(b) Duties—The Military Veterans Agricultural Liaison shall—

added “(1) provide information to returning veterans about, and connect returning veterans with, beginning farmer training and agricultural vocational and rehabilitation programs appropriate to the needs and interests of returning veterans, including assisting veterans in using Federal veterans educational benefits for purposes relating to beginning a farming or ranching career;

added “(2) provide information to veterans concerning the availability of and eligibility requirements for participation in agricultural programs, with particular emphasis on beginning farmer and rancher programs;

added “(3) serve as a resource for assisting veteran farmers and ranchers, and potential farmers and ranchers, in applying for participation in agricultural programs; and

added “(4) advocate on behalf of veterans in interactions with employees of the Department.”

added “(11) the authority of the Secretary to establish in the Department the position of Military Veterans Agricultural Liaison in accordance with section 219.”

removed A Federal employee of a State office of the Farm Service Agency in the field and non-Federal employees of county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) shall keep leased interagency motor pool vehicles at a location listed on the General Services Administration inventory of owned and leased properties or a location owned or leased by the Department of Agriculture overnight unless the employee assigned the vehicle is on overnight, approved travel status involving per diem.

changed Section 196 Effective immediately, a Federal employee of a State office of the Federal Agriculture Improvement Farm Service Agency in the field and Reform Act non-Federal employees of 1996 (7 county and area committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 7333), as amended 590h(b)(5)) shall keep leased interagency motor pool vehicles at a location listed on the General Services Administration inventory of owned and leased properties or a location owned or leased by section 11013(b), the Department of Agriculture overnight unless the employee assigned the vehicle is further amended—on overnight, approved travel status involving per diem.

removed “(1) In general

removed “(A) Coverages—In the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall operate a noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to—

removed “(i) catastrophic risk protection available under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)); or

removed “(ii) additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) that does not exceed 65 percent.

removed “(B) Administration—The Secretary shall carry out this section through the Farm Service Agency (referred to in this section as the “Agency”).”

removed “(ii) for which additional coverage under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) is not available; and”

removed “(l) Payment equivalent to additional coverage

removed “(1) In general—The Secretary shall make available to a producer eligible for noninsured assistance under this section a payment equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 percent of the established yield for the eligible crop on the farm, computed by multiplying—

removed “(A) the quantity that is not greater than 65 percent of the established yield for the crop, as determined by the Secretary, specified in increments of 5 percent;

removed “(B) 100 percent of the average market price for the crop, as determined by the Secretary; and

removed “(C) a payment rate for the type of crop, as determined by the Secretary, that reflects—

removed “(i) in the case of a crop that is produced with a significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the crop that is, as applicable—

removed “(I) harvested;

removed “(II) planted but not harvested; or

removed “(III) prevented from being planted because of drought, flood, or other natural disaster, as determined by the Secretary; or

removed “(ii) in the case of a crop that is produced without a significant and variable harvesting expense, such rate as shall be determined by the Secretary.

removed “(2) Premium—To be eligible to receive a payment under this subsection, a producer shall pay—

removed “(A) the service fee required by subsection (k); and

removed “(B) a premium for the applicable crop year that is equal to the product obtained by multiplying—

removed “(i) the number of acres devoted to the eligible crop;

removed “(ii) the established yield for the eligible crop, as determined by the Secretary under subsection (e);

removed “(iii) the coverage level elected by the producer;

removed “(iv) the average market price, as determined by the Secretary; and

removed “(v) .0525.

removed “(3) Limited resource, beginning, and socially disadvantaged farmers—The additional coverage made available under this subsection shall be available to limited resource, beginning, and socially disadvantaged producers, as determined by the Secretary, in exchange for a premium that is 50 percent of the premium determined for a producer under paragraph (2).

removed “(4) Premium Payment and Application Deadline

removed “(A) Premium payment—A producer electing additional coverage under this subsection shall pay the premium amount owed for the additional coverage by September 30 of the crop year for which the additional coverage is purchased.

removed “(B) Application Deadline—The latest date on which additional coverage under this subsection may be elected shall be the application closing date described in subsection (b)(1).

removed “(5) Effective date—Additional coverage under this subsection shall be available beginning with the 2015 crop.”

added Section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333), as amended by section 11013(b), is further amended—

added “(1) In general

added “(A) Coverages—In the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall operate a noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to—

added “(i) catastrophic risk protection available under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)); or

added “(ii) additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) that does not exceed 65 percent.

added “(B) Administration—The Secretary shall carry out this section through the Farm Service Agency (referred to in this section as the “Agency”).”

added “(ii) for which additional coverage under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) is not available; and”

added “(l) Payment equivalent to additional coverage

added “(1) In general—The Secretary shall make available to a producer eligible for noninsured assistance under this section a payment equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 percent of the established yield for the eligible crop on the farm, computed by multiplying—

added “(A) the quantity that is not greater than 65 percent of the established yield for the crop, as determined by the Secretary, specified in increments of 5 percent;

added “(B) 100 percent of the average market price for the crop, as determined by the Secretary; and

added “(C) a payment rate for the type of crop, as determined by the Secretary, that reflects—

added “(i) in the case of a crop that is produced with a significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the crop that is, as applicable—

added “(I) harvested;

added “(II) planted but not harvested; or

added “(III) prevented from being planted because of drought, flood, or other natural disaster, as determined by the Secretary; or

added “(ii) in the case of a crop that is produced without a significant and variable harvesting expense, such rate as shall be determined by the Secretary.

added “(2) Premium—To be eligible to receive a payment under this subsection, a producer shall pay—

added “(A) the service fee required by subsection (k); and

added “(B) a premium for the applicable crop year that is equal to the product obtained by multiplying—

added “(i) the number of acres devoted to the eligible crop;

added “(ii) the established yield for the eligible crop, as determined by the Secretary under subsection (e);

added “(iii) the coverage level elected by the producer;

added “(iv) the average market price, as determined by the Secretary; and

added “(v) .0525.

added “(3) Limited resource, beginning, and socially disadvantaged farmers—The additional coverage made available under this subsection shall be available to limited resource, beginning, and socially disadvantaged producers, as determined by the Secretary, in exchange for a premium that is 50 percent of the premium determined for a producer under paragraph (2).

added “(4) Premium Payment and Application Deadline

added “(A) Premium payment—A producer electing additional coverage under this subsection shall pay the premium amount owed for the additional coverage by September 30 of the crop year for which the additional coverage is purchased.

added “(B) Application Deadline—The latest date on which additional coverage under this subsection may be elected shall be the application closing date described in subsection (b)(1).

added “(5) Effective date—Additional coverage under this subsection shall be available beginning with the 2015 crop.”