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TheWeekInCongress.com (TM) Week Ending July 27, 2006
H.R.2419 To provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes.
Farm Bill extends and revises agricultural and related programs, most of which require taxpayer dollars to sustain. The bill covers agricultural products including dairy, fruits and nuts and livestock, nutrition, energy and rural development programs and international trade and foreign investment in the US agricultural industry.
Commodities in general What American farmers grow, how those products are priced and whether or not the government can protect farmer profits is interwoven with demand for certain foods, US market prices and consumer willingness to pay those prices, US foreign policy and numerous World Trade Organization and foreign treaty provisions aimed at prohibiting one country or another from regulations that give an unfair opportunity in the marketplace.
The process of establishing farm policy begins with recognizing and limiting or increasing the amount of acreage nationwide that come under those programs and what percentage of those acres can be subsidized and to what extent and what products can be grown or raised on the acreage. The farmer, then, is impacted by those decisions and aims to grow products, when climate and other conditions allow, that yield highest profits. The government restricts some growing but attempts to protect farm profits with programs that provide financial incentives not to grow or to use the acreage for other purposes such as for conservation, environmental protection and grazing. Other government mechanisms include price supports to assure farmers that their profits can remain intact if market prices fall below certain set levels.
Conservation, credit, financial incentives and price supports The bill continues and authorizes new price supports through which the Federal government purchases the products such as cheddar cheese, butter, nonfat dry milk, wheat, barley, oats, oilseeds and soybeans and many other products so to maintain a market price. Another approach to protect farmer's profits from lowering prices is a program that becomes available when market prices drop below a pre-set price. The farmer can then apply for payments from the government that make up the difference between the market price and the price that triggers the payment program. Other programs in the bill pay farmers and farm owners not to grow certain products for the same purpose as well as for conservation and other purposes.
The bill's credit provisions include programs that provide low interest rates for various loans farmers can apply for but also include loan subsidy provisions that pay directly to farmers, on a yearly basis, amounts aimed at providing a safety net against such income- and loan-damaging circumstances as crop failure or a drop in market prices. The program, however, continues to pay farmers even if prices do not drop and even if they rise.
The bill takes a step to reforming what appears to be continued payments to farmers who are doing well. Current law allows for various payments to farmers whose net income is below $2.5 million per year. The bill would drop that trigger amount to net earnings of $1 million per year. Another provision would allow those payments to be made to farmers earning over $500,000 per year if two thirds of their income is from farming alone. The bill does not change direct payments to farmers of primary commodity products such as soybeans and wheat despite whether the farmers are making a profit or not. that program accounts for a large part of subsidy payments to farmers. Some qualifying farm families now receiving a maximum of $40,000 may see and increase in that amount.
The farming industry is stimulated by financial incentives to increase the numbers of new farmers and support socially disadvantaged farmers. Loans with interest rates as low as 1% are available to new farmers. By and large, loan programs to individuals, small farmers and agribusiness corporations for purposes of purchasing a farm, purchasing a home or for rural utilities are made more accessible, better guaranteed, and less expensive for the borrower.
The conservation program pays farmers who are implementing conservation practices on their working lands. It provides annual payments and increasing financial incentives to encourage the continuation of farming practices that benefit soil, water, and air resources. Incentive payments are also made to farmers who agree not to sell land for development. Farmer participants may continue to hold title and farm the land.
Family farms that are now paid $40,000 per husband and wife will see and increase to $60,000 per spouse.
Many believe that the way the payouts are structured, large and successful agribusinesses receive subsidy and other payments that were originally designed to help the less successful farmer survive adverse whether, markets and other farming pitfalls. A last minute provision in the bill would require some foreign companies that have been avoiding taxes on US income through provisions in earlier bills to pay those taxes. The amount expected to be raised is estimated at $4 billion.
Nutrition The products of farms are food so the bill also contains provision for the food stamp program that is renamed the Secure Supplemental Nutrition Assistance Program. Special attention is given to helping states stock homeless shelters, increase availability of nutritious foods for the elderly and vouchers to seniors for purchasing fresh fruits and vegetable at farmer’s markets and provide fresh fruits and vegetables to 50 schools in fifty states. Included is a provision removing combat pay of active military, funds in retirement accounts and funds in education savings accounts when determining a food stamp applicants qualifying net income. The provisions will be implemented if funds are found to offset the cost.
Retailers who are deemed to have taken advantage of food stamp users can face fines up to $100,000.
The bill creates the National Hunger Fellowship Program and the Mickey Leland International Hunger Fellowship Program to encourage careers in humanitarian and public service, to recognize the needs of low-income individuals, and to provide assistance to people in need.
Rural development Rural development is addressed on several levels including increasing fire and medical help, stimulating small business, lowering rates for and expanding broadband access to the Internet and improved telecommunications. Biofuel refineries, for example, would be built close the source of raw biomatter and could receive loan guarantees to get started. The bill provides numerous grants for improving water and wastewater systems and extending medical care to underserved communities.
Forestry Regarding forestry, the bill looks to the states for forest maintenance planning and targets the Hispanic population to be trained for careers in forestry.
Energy The primary provisions under the energy title are authorization for the government to purchase biomass materials and a loan program for the development, construction and retrofitting of biorefineries and biofuel production plants to demonstrate the commercial viability of converting biomass to fuels or chemicals.
Miscellaneous provisions Specialty crop growers may benefit from the Specialty Crop Block Grant Program with funding from $20,000,000 in 2008 to $55,000,000 for 2012. The bill earmarks $190,000,000 in 2008 to $206,000,000 in 2012 to purchase fruits, vegetables and nuts.
Tree nurseries that are damaged by natural disasters can receive up to $75,000 for damages in each year. Haas avocados come under scrutiny with a provision that sets a minimum maturity level for the fruit before it can be brought to market. Fines for violations can rise to $5,000. Peanut farmers are allowed direct payments at $36.00 per ton and the market price threshold for counter-cyclical payments remains at $495 per ton.
Mandatory Country of origin labeling requirements now in place will continue.
Amendments The primary amendment limited subsidy payments to those with incomes of $250,000 or less, would cut profits of crop insurance middlemen and phase out cyclical subsidy payments to replace them with payments when farmers are in need only.
Other amendments can be read here
Sponsor: Rep. Collin Peterson (D-MN-7th) Vote: The bill passed the House 231 to 191 RC 756 July 27, 2007. The Motion to Recommit the bill failed 198 to 223 RC 755. The motion to recommit the bill The motion to recommit required that the bill be be returned to committee with the instructions to remove the provision blocking the tax loophole for some foreign companies (referred to by motion supporters as a tax increase) and then report the bill back 'promptly'. Opposition argued that the bill must be paid for and implied that getting the money from foreigners who are not paying their taxes is suitable, Opposition also held that wording the motion to be reported back 'promptly' is interpreted as a parliamentary procedure that would stop further consideration of the bill. The Motion to Recommit the bill failed 198 to 223 RC 755. Cost to the taxpayers: Estimated at $286 billion over five years. The amount could be reduced by the removal of tax benefits to some foreign countries. That provision is estimated at between $4 and $7 billion Earmark Certification: H.R. 2419 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI of the rules of the House Representatives. ## All Rights Reserved. © 2007 TheWeekInCongress.com(TM) No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)
MORE INFORMATION Sugar—Dairy---Administration---Section By Section Analysis Security---Reserve---Quality Incentives---Other—Funding---Section By Section Analysis Agricultural Trade Development and Assistance Act of 1954---Agricultural Trade Act of 1978---Miscellaneous---- Food Stamps---Commodity Distribution---Miscellaneous---Section By Section Analysis Farm Ownership Loans---Administrative Provisions---Section By Section Analysis Consolidated Farm and Rural Development Act---Rural Electrification Act of 1936---Food, Agriculture, Conservation and Trade Act of 1990---SEARCH Grants for Small Communities---Section By Section Analysis TITLE VII—RESEARCH AND RELATED MATTERS National Agricultural Research, Extension and Teaching Policy Act of 1977---Food, Agriculture, Conservation and Trade Act of 1990---Agricultural Research, Extension and Education Act of 1998---Other Laws---Section By Section Analysis TITLE VIII---FORESTRY---Section By Section Analysis TITLE IX—ENERGY---Section by Section Analysis Specialty Crops and other products
TITLE I—COMMODITY PROGRAMS OVERVIEW Farmers’ Safety net Extends the safety net programs authorized in the 2002 Farm Bill with minor changes Increases target prices for wheat, barley, oats, oilseeds and soybeans, which increases producers’ opportunity to receive counter-cyclical payments when prices are low. Continues support for farmers through direct payments. Loans Rebalances loan rates on wheat, barley, oats, oilseed, small chickpeas and graded wool. Establishes separate loan rates for long grain and medium/short grain rice and for feed and malt barley. Changes the calculation of the adjusted world price of cotton to reflect current market conditions and adjusts the cotton marketing loan program to make American cotton more competitive and move stocks out of storage Crop Insurance Allows producers to purchase supplemental area-based crop insurance in addition to individual yield or revenue policies, which will help farmers to better prepare for poor crop years. Increases USDA’s focus on risk management education for beginning farmers and ranchers Conservation Prevents sod-busting by requiring farmers to build Actual Production History (APH) on newly broken grasslands before becoming eligible for crop insurance on that land.
Sugar Raises the marketing loan rate for sugar (to 18.5 cents for cane sugar and 23.5 cents for beet sugar) and changes overall allotment quota to be a minimum of 85% of domestic consumption (previously was a set amount) Provides continued support for the U.S. sugar producers with the successful marketing allotment program, while ensuring that domestic sugar cane and beet producers provide most of the sugar demanded by U.S. consumers.
Dairy Extends the Milk Income Loss Contract Program until 2012. Supports the price of cheddar cheese, butter, and nonfat dry milk by government purchase of such products. Allows for the Dairy Forward Pricing Program allowing milk producers and cooperatives to voluntarily enter into forward contracts with milk handlers. Expands markets for domestic milk producers by extending the Dairy Export Incentive Program Brings dairy product importers into participation in the efforts of the dairy research and promotion program.
Administration Achieves greater equity among commodities by ending government storage payments for commodities.
Section by Section analysis Commodities PAYMENTS SEC. 1001. DEFINITIONS Section 1001 sets out definitions of various terms used in the bill. “Base acres” means the number of acres established by the 2002 farm bill as in effect one day before enactment of this bill. “Counter-cyclical payment acres” means 85 percent of the base acres for a covered commodity on which counter-cyclical payments are made. “Direct payment acres” means 85 percent of the base acres for a covered commodity on which direct payments are made. Amends definition of “loan commodity” by replacing rice with long grain, short grain, and medium grain rice, and by replacing barley with feed barley and malt barley. Amends definition of “payment yield” to mean the yield established for direct and counter-cyclical payments under the 2002 farm bill as in effect one day before enactment of this bill. Adds definition of “Far East Price” and two definitions dealing with cotton quality and premiums: “United States Premium Factor,” which means the difference between the premiums offered by the U.S. loan schedule for certain grades of cotton in excess of the premiums for comparable international grades delivered cost and freight to the Far East market; and “Comparable United States Quality”, which states a classification standard for upland cotton which contains a slight premium for uniformity and falls within an acceptable range – to avoid a discount – for fiber wall thickness. SEC. 1101. ADJUSTMENTS TO BASE ACRES Although updating of base acres or payment yields is generally NOT allowed under this bill, section 1101(a) continues the 2002 farm bill’s provisions regarding Treatment of Conservation Reserve Contract Acreage. This allows the Secretary to provide base acre adjustments when a conservation reserve contract ends. Section 1101(b) continues the 2002 farm bill’s provisions allowing the Secretary to reduce base acres when the sum of the farm’s base acres and the farm’s other acreage enrolled in certain conservation programs exceeds the actual cropland acreage of a farm. Section 1101(c) continues the 2002 farm bill’s provisions allowing a farmer to permanently reduce the base acres on a farm. SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS Section 1102(a) authorizes direct payments for 2008-2012 crop years in same manner as in 2002 Farm Bill. Section 1102(b) maintains direct payment rates as in 2002 Farm Bill. Section 1102(d) allows advanced direct payments of up to 22 percent for 2008-2012 crop years and requires repayment of direct payments under same conditions as 2002 Farm Bill. SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS Section 1103(a) and (b) authorize counter-cyclical payments and establish the effective prices for covered commodities for 2008-2012 crop years in same manner as in 2002 Farm Bill. Section 1103(c) establishes target prices as follows: Wheat, $4.15 (23 cents above 2002 Farm Bill price) Corn, $2.63 (Same as 2002 Farm Bill price) Grain Sorghum, $2.57 (Same as 2002 Farm Bill price) Barley, $2.32 (8 cents above 2002 Farm Bill price) Oats, $1.50 (6 cents above 2002 Farm Bill price) Upland Cotton, $0.70 (2 cents below 2002 Farm Bill price) Rice, $10.50 (Same as 2002 Farm Bill all rice price) Soybeans, $6.00 (20 cents above 2002 Farm Bill price) Other oilseeds, $0.1150 (1.4 cents above 2002 Farm Bill price) Section 1103(d) and (e) maintain the 2002 Farm Bill formulas for payment rates and amounts but reflect the new target prices in 1103(c). Section 1103(f) allows for partial counter-cyclical payments of up to 40% for 2008-2012 crop years and requires repayments of such under same conditions as 2002 Farm Bill. SEC. 1104. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISON OF DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS Section 1104(a) requires producers receiving direct and counter-cyclical payments to use the land for an agricultural or conserving use, comply with planting flexibility requirements, comply with certain conservation requirements, and to control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices. 2 Section 1104(b) through (e) maintain 2002 farm bill requirements governing transfer of interest, acreage reports, tenants and sharecroppers, and sharing of payments. SEC. 1105. PLANTING FLEXIBILITY Section 1105 maintains 2002 Farm Bill provisions restricting the planting of fruits and vegetables on base acres except that it establishes a pilot Farm Flex project in Indiana, under which tomatoes may be planted on up to 10,000 base acres. SEC. 1106. PERIOD OF EFFECTIVENESS Section 1106 authorizes the previous sections for 2008 through 2012 crop years. SUBTITLE B—MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR LOAN COMMODITIES Section 1201 authorizes nonrecourse loans for loan commodities for 2008-2012 crop years in same manner as 2002 Farm Bill. Includes requirement that producers comply with certain conservation requirements. SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS Section 1202 establishes two loan rates for rice, a long grain rice loan rate and a combined medium and short grain rice loan rate. And two loan rates for barley: a feed barley rate and a malt barley rate. It deletes 2002 Farm Bill provisions requiring that loan rates for dry peas, lentils and small chickpeas be based on feed peas, number 3 lentils, and number 3 small chickpeas. It sets loan rates as follows: Wheat, $2.94 (19 cents above 2002 Farm Bill rate) Corn, $1.93 (2 cents below 2002 Farm Bill rate) Grain Sorghum, $1.93 (2 cents below 2002 Farm Bill rate) Feed Barley, $1.93 (8 cents above 2002 Farm Bill all barley rate) Malt Barley, $2.50 (65 cents above 2002 Farm Bill all barley rate) Oats, $1.39 (6 cents above 2002 Farm Bill rate) Upland Cotton, $0.50 (2 cents below 2002 Farm Bill rate) Extra long staple cotton, $0.7977 (Same as 2002 Farm Bill rate) Long grain rice, $6.53 (3 cents above 2002 Farm Bill all rice rate) Medium/short grain rice, $6.53 (3 cents above 2002 Farm Bill all rice rate) Soybeans, $5.02 (2 cents above 2002 Farm Bill rate) Other oilseeds, $.0.1070 (1.4 cents above 2002 Farm Bill rate) Dry Peas, $5.40 (82 cents below 2002 Farm Bill rate) Lentils, $11.28 (44 cents below 2002 Farm Bill rate) Small Chickpeas, $8.54 ($1.11 above 2002 Farm Bill rate) SEC. 1203. TERMS OF LOANS Section 1203 continues the provisions of the 2002 Farm Bill on the terms of loans: 9 months; no extensions. SEC. 1204. REPAYMENT OF LOANS Section 1204(a) establishes a general rule that loans may be repaid at the lesser of the rate established in section 1202, or a rate determined by the Secretary that will minimize forfeitures, accumulation of stocks, storage costs, market impediments, and discrepancies in benefits across State and county boundaries. It also excludes cotton, rice, and sunflower seeds (other than oil sunflower seeds) from the general rule on repayment of loans. Section 1204(b) sets out repayment rates for upland cotton and rice. Loans may be repaid at the lesser of the rate established in section 1202, or the prevailing world market price for the commodity. Section 1204(c) sets the loan repayment rate for extra long staple cotton at the rate established under section 1202 plus interest (same as 2002 Farm Bill). Section 1204(d) requires the Secretary to issue regulations with formulas to determine the prevailing world market prices for cotton and rice, and requires mechanisms for adjustment and periodic announcements of such prices. Section 1204(d)(1) specifies that USDA use price quotes from Far East market (rather than from Northern Europe, as in current law) to determine the prevailing world market price for upland cotton. “Far East Price” means the three lowest price quotes on the sale of upland cotton in Far East markets based on delivered cost and freight. The term Far East comes from a Cotlook – an independent firm that reports cotton market information – publication. Section 1204(e) provides for adjustments to the prevailing world market prices for upland cotton and rice for quality and location. The Secretary currently makes such adjustments and the new provisions provide direction to the Secretary with regard to some of the adjustments. Under section 1204(e)(2), adjustments to the prevailing world market price for cotton to reflect U.S. quality would include marketing costs (including transportation) and the premiums associated with Comparable United States
Quality and reflect any United States Premium Factor, which are both defined in section 1001. “United States Premium Factor” means the difference between the premiums offered by the U.S. loan schedule for certain grades of cotton in excess of the premiums for comparable international grades delivered cost and freight to the Far East market. “Comparable United States Quality” states a classification standard for upland cotton which contains a slight premium for uniformity and falls within an acceptable range – to avoid a discount – for fiber wall thickness. Section 1204(f) lists a new set of criteria on which USDA may further adjust the prevailing world market price for upland cotton: 1. Minimizing loan forfeitures 2. Minimizing the accumulation of cotton stocks 3. Improving the marketing of upland cotton at home and overseas 4. Ensuring that U.S. upland cotton is competitive in world markets 5. Ensuring a seamless transition of the calculation of AWP from current crop prices to forward-crop prices, with some limitations
Section 1204(g) allows farmers who put their upland cotton in the loan to assign to a marketer of loan cotton the ability to ship the cotton prior to redeeming it from the CCC. The marketer becomes responsible for the loan and must repay the loan no later than 10 months after the date of the loan was issued. The marketer must also provide financial security against the loan. The producer has no further responsibility for the loan. The bill also grants Cooperative Marketing Association this assignment ability. Section 1204(h) sets the repayment rate for sunflower seeds. Section 1204(i) changes the 2002 Farm Bill provisions requiring repayment rates for dry peas, lentils and small chickpeas to be based on feed peas, number 3 lentils, and number 3 small chickpeas. Now they would be based on quality grades for those commodities. SEC. 1205. LOAN DEFICIENCY PAYMENTS Section 1205 authorizes loan deficiency payments for 2008-2012 crop years under same conditions as 2002 Farm Bill. SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED ACREAGE Section 1206 authorizes payments in lieu of LDPs for producers who have grazed acreage for the 2008-2012 crop years under same conditions as 2002 Farm Bill. SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON Section 1207 authorizes the President to issue special import quota for upland cotton if for a consecutive 4-week period the price of American cotton exceeds the price of cotton in the Far East markets. This is a change from current law, which is based on Northern Europe markets. Under current law, another trigger for this special import quota is a decline in the U.S. stock-to-use-ratio to below 16%. That trigger would be removed by this bill. The amount of cotton that can come into the U.S. under the special import quota during any marketing year is limited to the equivalent of 10 weeks consumption of upland cotton by domestic mills. This is a change from 5 weeks in current law. Section 1207(b) continues a limited global import quota for upland cotton, as existed under the 2002 Farm Bill Section 1207(c) authorizes the Secretary to issue marketing certificates or cash payments to domestic users of upland cotton for uses of all cotton regardless of origin. The payments or certificates will equal 4-cents per pound, and these payments can be used for acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery. SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON Section 1208 authorizes through July 31, 2013 special competitive provisions for extra long staple cotton as they operated under the 2002 Farm Bill. SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS AND SEED COTTON Section 1209 authorizes recourse loans for these crops for the 2008-2012 crop years in same manner as under 2002 Farm Bill. SUBTITLE F – ADMINISTRATION SEC. 1601 ADMINISTRATION GENERALLY Section 1601 authorizes the use of the Commodity Credit Corporation in carrying out the provisions of title 1 and generally continues other administrative provisions of the 2002 Farm Bill. SEC. 1602 SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY Section 1602 suspends the permanent price support authority of the Agricultural Adjustment Act of 1938 and Agricultural Act of 1949 for the 2008-2012 crops. SEC. 1603 PAYMENT LIMITS Section 1603 amends the payment limit provisions of the 1985 Farm Bill by requiring direct attribution of benefits. Specifically, the new provisions define “entity” and “individual” and prohibit such individuals and entities from receiving direct payments of more than $40,000 and countercyclical payments of more than $65,000. Current limits of $75,000 limits on marketing loan benefits are terminated after the 2007 crop year. All other provisions remain the same as under 2002 Farm Bill. SEC. 1604. ADJUSTED GROSS INCOME LIMITATION Section 1604 contains continues provisions of the 2002 Farm Bill and adds a provision for a two year or extended denial of program benefits if Secretary determines person or entity is trying to avoid AGI limits. SEC. 1605. ADJUSTMENTS ON LOANS Section 1605 authorizes the Secretary to make adjustments in the loan rate for cotton for differences in quality factors and requires the Secretary to revise the marketing assistance loan program for cotton to better reflect market values for cotton. Required revisions include: 1. Warehouse location differentials would be eliminated or revised to reflect market conditions 2. Changing the way premiums and discounts are calculated by using a 3-year weighted moving average of spot market data weighted by each region’s share of production. The current simple average of spot market data averaged 1-to-1 with the previous loan schedule inflates premiums out of alignment with market conditions. 3. Further caps on premiums based on leaf and color considerations 4. Eliminating gaps between premium and discount differentials based on certain fiber lengths
Section 1605 also provides for discretionary revisions in how USDA adjusts the loan rates schedule using non-spot market price data in addition to spot market data for cotton and eliminating gaps between premium and discount differentials based on certain longer fiber lengths. Section 1605 also encourages USDA consultation with the private cotton industry when making the mandatory and discretionary adjustments. SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES Section 1606 extends an administrative provision of the 1996 Farm B exempting producers from liability for certain deficiencies in collateral.
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING LOANS Section 1607 extends authority for producers to repay marketing loans with commodity certificates. SEC. 1608. ASSIGNMENT OF PAYMENTS Section 1608 continues requirement of the 2002 Farm Bill that assignment must be done in accordance with USDA regulations. SEC. 1609. TRACKING OF BENEFITS Section 1609 continues requirement of the 2002 Farm Bill that the Secretary must track the benefits provided under titles I and II of the Farm Bill. SEC. 1610. COTTON STORAGE PAYMENTS Section 1610 ends the practice of paying for upland cotton storage, handling and other costs associated with cotton going into the loan starting with the 2012 crop. SEC. 1611. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS Section 1611 ends the current prohibition on the publication of cotton price forecasts. SEC. 1612. TREATMENT OF FARMS WITH TOTAL BASE ACRES OF 10 OR LESS Section 1612 makes farms with 10 total base acres or less ineligible for the direct and counter-cyclical payments.
TITLE II---CONSERVATION Extends the Popular Conservation Reserve Program (CRP CRP helps farmers and ranchers comply with Federal, State, and tribal environmental laws and encourages environmental enhancement. It encourages farmers to convert highly erodible cropland and other environmentally sensitive land to vegetative cover. Farmers agree to a multi-year contract and receive an annual rental payment. The program also includes cost sharing to establish the vegetative cover practices Security Collapses the three tiered system and replaces the structure with an annual stewardship enhancement payment to compensate producers for new and ongoing implementation and maintenance of conservation practices and activities. Allows for contract modification of existing contracts for farmers participating under the old CSP program. Program Basics: The current CSP program pays farmers who are implementing conservation practices on their working lands. It provides annual payments and increasing financial incentives to encourage the continuation of farming practices that benefit soil, water, and air resources USDA has not implemented the program nationwide, as the original law required and has restricted CSP participation by limiting program enrollment each year to producers in specified, priority watersheds. This has been controversial and has prevented many eligible farmers from accessing the program.
Reserve Authorizes 39.2 million acres to be enrolled in the program through 2012. Includes a new provision to allow retired landowners participating in CRP to modify their contracts if the land is being transferred to a beginning or socially disadvantaged farmer or rancher. This would allow a beginning or socially disadvantaged farmer or rancher to return some of this land to grazing or crop production. Provides $1.6 billion to reestablish a baseline and extend the program through 2012. Adds 1.5 million acres to the program, bringing the total acres allowed in the program to 3.775 million acres, which will include 10,000 acres of floodplain easements each year. Provides payments for wetlands maintenance activities on up to 1.5 million acres Directs USDA to determine the fair market value when evaluating appraisals that are used for payment offers. Program Basics: WRP is a voluntary, nonregulatory, incentive-based program that helps private landowners, farmers and ranchers protect and restore wetlands on their property and removes marginal croplands from production. Eligible landowners receive financial incentives to restore, protect and enhance wetlands that they agree to retire from agriculture production. In 2006, USDA changed the regulations for WRP, which has resulted in lower WRP payment offers for landowners, and as a result, some landowners are not participating in the program. That is why the 2007 Farm Bill proposal includes language directing USDA to use fair market value when appraising land for WRP Quality Incentives Increases funding for EQIP by $2 billion by 2012. Includes the promotion of forest management and energy conservation in the EQIP program goals, while continuing to allocate 60% of the program funds for livestock production. Expands the activities for which a producer can receive incentive payments to include technical services that will help fruit and vegetable producers access the program. Changes the evaluation process for EQIP applications to give priority to address State, regional or local resource concerns. Allows for applications that address similar agriculture operations to be considered together. Program Basics: EQIP offers financial and technical help to assist farmers and ranchers install or implement conservation practices on eligible agricultural land to protect water, air and soil quality as well as wildlife habitat. EQIP can provide cost-sharing for up to 75% of the costs for certain conservation practices. Beginning or socially disadvantaged farmers and ranchers may be eligible for cost-shares up to 90%. Other Includes $25 million for a Chesapeake Bay pilot program for comprehensive conservation planning to help producers find cost effective strategies to address resource concerns. Includes $150 million for river restoration projects in the Chesapeake Bay to improve water quality, and restore and enhance wildlife in the Chesapeake Bay watershed.
Renews & Funds the Small Watershed Rehabilitation Program (SWRP) : Provides $200 million to create a baseline for program funding and extends the program through 2012. Program Basics: Provides technical and financial assistance from USDA for the rehabilitation of existing small watershed projects that may include upgrading or removing the dams.
Program Basics: WHIP helps landowners develop and improve wildlife habitat primarily on private land, providing technical assistance and up to 75 percent cost-share assistance to establish and improve fish and wildlife habitat. Extends the Grassland Reserve Program (GRP), which offers landowners the opportunity to protect, restore, and enhance grasslands on their property. If costs can be offset, increases enrollment in the program by 5 million acres. Allows for third party ownership, negotiation and enforcement in GRP. Places an emphasis on long-term benefits for grasslands. Program Basics: GRP helps landowners restore and protect grassland, rangeland, pastureland, shrubland and certain other lands and provides assistance for rehabilitating grasslands. The program conserves vulnerable grasslands from conversion to cropland or other uses and conserve valuable grasslands by helping maintain viable ranching operations.
Funding Farm and Ranchland Protection Program Increases funding for FRPP by $300 million by 2012. Includes changes to address numerous concerns that the current program is becoming increasingly bureaucratic and inaccessible by establishing a more user-friendly certification process that will determine eligibility for program funds Program Basics: FRPP provides matching funds (up to 50 percent of the fair market easement value) to help State, tribal, or local governments and non-governmental organizations purchase development rights to keep productive farm and ranchland in agricultural uses. Participating landowners agree not to convert their land to non-agricultural uses and to develop and implement a conservation plan for any highly erodible land. Landowners retain rights to use the property for agriculture uses. FRPP is a very popular program, especially in the Mid-Atlantic and Northeast regions of the United States.
Section by Section Analysis--Conservation SEC. 2102. WETLAND RESERVE PROGRAM The new purposes of WRP are to restore, create, protect or enhance wetlands on eligible lands and for the Secretary to purchase floodplain easements. Increases the maximum enrollment to 3,775,000 acres if the contingent reserve is available. If not maximum enrollment shall not exceed 2,275,000 acres. The goal shall be to enroll 250,000 acres a year; of this amount, 10,000 acres shall be enrolled s floodplain easements; changes the limitation from the calendar year to the fiscal year. • Flood plain lands are eligible if the land has been damaged by flooding at least once in the preceding calendar year or has been damaged by flooding at least twice in the past 10 years or the enrollment of other land within the floodplain would aid in flood storage, flow or erosion control. • Flood plain lands where restoration practices would not be productive or is subject to an existing easement or deed restriction which provides protection or restoration of the flood plain’s functions or values are not eligible. • Returns appraisal process to what was in place on Jan. 1, 2003. • USDA shall share the cost of necessary maintenance activities in addition to other activities in the plan if it’s in the public interest. • When considering easement offers for flood plains, the Secretary may consider whether the purposes of the easement program would be achieved on the land; whether the land has been repeatedly flooded; the extent to which the easement would help restore or manage the land surrounding the flood plain; and other factors. • WRP is authorized through FY 2012.
SEC. 2103. CONSERVATION SECURITY PROGRAM. • No new contracts may be entered into under the previous CSP. However, payments and modifications to existing contracts may be continued to be made until those contracts expire. Modification on old CSP contracts may conform to old or new CSP requirements at the option of the producer. • A new Conservation Security Program shall go into effect for FY 2012 through 2017. • The new program collapses the tier-based payment structure and replaces it with a stewardship base payment structure which allows a producer to graduate to higher levels of more intensive conservation practices and corresponding payments. • The new CSP helps producers comprehensively address priority resources of concern. The Secretary shall ensure that no more than 5 priority resources of concern are identified at the State level which include environmental or wildlife habitat concerns affected by farming. Such priority resources of concern shall be identified as primary, secondary or tertiary. • In order to participate, a producer must already be addressing at least one priority resource of concern to the minimum level of management intensity. The producer must also have a conservation plan that includes a schedule of new practices to increase the management intensity for addressing the priority resource of concern. • There are two types of payments the producer shall be eligible for: the stewardship base payment, which will reflect the degree to which the producer is addressing the priority resources of concern at the time they enter into the contract. This amount must reflect the cost of maintaining the existing level of management intensity of that resource of concern. The new practice payment shall cover no more than 75% of the cost of implementing new practices. • A producer or entity may not receive more than $150,000 in stewardship and new practice payments over the 5 year term of a contract. • Private agricultural land and land owned by Tribes is eligible. Lands enrolled in CRP, WRP, and GRP are not eligible. CSP payments may not be based on land that had not been in production 4 to 6 years prior to Oct. 1, 2011. Lands that had been in production during this period may be the basis of payments if they were enrolled in CRP or were used for long-term crop rotation practices. • Acceptable economic uses of CSP land are those that maintain the agricultural nature of the land and are consistent with the goals of the program. • CSP contracts shall be for 5 year terms. • The producer cannot change their contract to increase stewardship or new practice payments during the term of the contract unless a change is required to achieve the purposes of the program. • The Secretary can allow one, 5-year renewal if the producer complied with the terms of the contract and agrees to implement new practices or to increase the management intensity of existing contracts. • A producer may participate in CSP, CRP and WRP if appropriate reductions in payments and other adjustments are made to the CSP contract. A producer may also shift acres from CSP to CRP or WRP. • A producer may transfer the duties and rights under a CSP to a new landowner if the Secretary is appropriately notified. Otherwise, all CSP duties and rights will be terminated with the transfer.
� If a producer violates a term of the contract, that warrants a termination, the producer must forfeit all rights to receive payments and refund all or a portion of the payments already received. If the violation does not warrant termination, the Secretary can adjust or require a refund of payments received. SEC. 2104. GRASSLAND RESERVE PROGRAM. • Allow additional enrollment of 5,000,000 acres if contingency fund available, no new acres if no contingency fund adopted. • Land may be enrolled in both the CRP and GRP if the Secretary determines it is of high ecological value and under significant threat of conversion. The number of CRP acres enrolled in a calendar year shall not exceed 10 percent of the total number of acres enrolled in GRP for that same year. Land enrolled in GRP shall not be eligible for CRP payments. • Authorizes the Secretary to enter into agreements with States and political subdivisions to advance the purposes of the GRP. • Requires the Secretary to transfer of title of easement ownership to a third party to enforce the easement.
Sec. 2105. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. • The purpose of EQIP is amended to include the promotion of forest management and energy conservation as compatible goals with environmental quality. • The definition of land management practice is changed to include forest management and silvicultural practices. • Forest management practices are defined as activities that may be needed to improve water quality, increase in-stream flows, restore forest biodiversity, or control invasive species. • Alpaca is added to the definition of livestock. • “Producer” is defined as someone who earns income from the production or management of a commodity or livestock regardless of ownership or who bears the economic risk of loss. • Reauthorizes cost-share and incentive payments through 2012. • Expands the activities for which a producer can receive incentive payments to include technical services from an approved third party provider, energy efficiency improvements and the implementation of renewable energy systems. • The Secretary shall set incentive payments in an amount and rate necessary to encourage producers to perform one or more practices, receive technical services, develop a comprehensive nutrient management plan, or implement energy efficiency improvements or renewable energy systems. • Changes existing law to increase the amount of cost-share payments to include socially disadvantaged farmer or ranchers, and changes the amount from not more than 90 percent of the cost of the practice to the lesser of 90% of the cost or 15% more than the rates offered to other farmers and ranchers. • Extends 60% allocation of cost-share and incentive payments for livestock production practices through FY 2012. • Changes the evaluation of applications for cost-share and incentive payments. The Secretary is directed to prioritize applications based on: overall cost-effectiveness and the effectiveness and comprehensiveness of the project in addressing designated resource concerns. The Secretary shall develop evaluation criteria to ensure that national, State and local priorities are addressed. The Secretary shall evaluate applications with those which address conservation activities for similar agriculture operations. • The evaluation process must be as streamlined as possible for applications that involve operations with substantial and sound management systems and seek a single or limited number of practices to improve the performance of that system. • Duties of producers: Practices prohibiting the receipt of payments are extended to forest land. • Plan requirements: The program plan requirements are changed to include program practices, terms and conditions to implement the program, a description of purposes, a comprehensive nutrient management in the case of CAFOs, or a forest management plan or other plan approved by the forester in the case of forest lands. • To avoid duplication, the Secretary may consider a water or air quality permit as the equivalent of a plan of operations. • Special rules for water conservation: the Secretary may only provide assistance for water conservation or irrigation only if the assistance will yield a net savings on ground or surface water and increase flows consistent with the law of the farm’s State. • Conservation Innovation Grants: forest management is added as an eligible grant activity. • Eligible projects include those which ensure the efficient and effective transfer of technologies and provide benefits through increased participation of specialty crop producers. • A new pilot program for the Chesapeake Bay watershed is established to assist producers in comprehensive planning before they submit applications for any of the conservation programs. Assistance may be provided through certified third party providers. Assistance under this pilot is intended to help the producer choose the appropriate type of financial assistance that would address the resource needs of their farm consistent with the goals of the area where the farm is located. A report on the effectiveness of the pilot shall be published. • Conservation Innovation grants shall be funded with $20,000,000,000 from EQIP for each of FY 2008-2012. Of this amount, $5,000,000 each fiscal year shall be used for outreach for organic and specialty crop producers, and $5,000,000 for each fiscal year shall be available for the comprehensive c onservation planning pilot program.
SEC. 2106. REGIONAL GROUND AND SURFACE WATER ENHANCEMENT PROGRAM. • Changes the purpose of the existing ground and surface water conservation program to allow cooperative agreements between the Secretary, producers, government entities and Tribes in achieving regional water quality and quantity goals in water quality priority areas. • $100,000,000 is available for each of fiscal years 2008 through 2012, contingent upon availability of the reserve fund. Otherwise, $60,000,000 will be available for each fiscal year 2008-2012.
Sec. 2107. GRASSROOTS SOURCE WATER PROTECTION PROGRAM. • Increases appropriations authorization from $5,000,000 each fiscal year to $20,000,000 each fiscal year through 2012.
Sec. 2108. CONSERVATION OF PRIVATE GRAZING LAND. • Extended through 2012.
SEC. 2109. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT CONTROL. • Extended through 2012.
SEC. 2110. FARM AND RANCHLAND PROTECTION PROGRAM. • Adds forest land that is incidental to a farm as eligible land. Changes the definition of eligible land to no longer specifically include land that has prime, unique or other productive soil; historic or archaeological resources; or is subject to a pending offer for purchase from an eligible entity. • A State or local entity is “qualified” under the terms of the program if it has provided funds to purchase perpetual easements or other interests in land on at least 10 properties over a period of at least 3 calendar or fiscal years; the entity is authorized under State law and has the capacity to monitor and enforce easements or other interests in land in perpetuity; and the entity has control policies to assure that the average purchase of easements and other interests in land do not exceed fair market value. • While the program previously allowed the Secretary to purchase easements and other interests in land, the new program allows the Secretary to facilitate such purchases by eligible entities. Such purchases shall protect the agricultural production capacity of the lands by limiting non-agricultural uses and shall give highest priority to protecting lands with prime, unique or other productive soils that are at risk of non-farm development. • Grants to qualified entities shall be distributed among States based on demonstrated need for farm and ranchland protection and on the contribution of funds by State and local entities. Any funds not granted to qualified State or local entities may be made available to other eligible entities as matching funds for easement purchases. • The Secretary shall establish a process to certify eligible entities. Certification requirements must at a minimum include strategic planning and clear objectives, demonstrated long-term commitment and viability, a track record of funds management and accountability, a history of successfully completing agricultural conservation projects, and the use of a conservation plan for any highly erodible cropland for which a conservation easement or interest is purchased. Certification shall be reviewed every three years and may be revoked if it fails to meet the qualifications. • Under the agreement between the qualified entity and the Secretary, the entity may use a combination of its own funds and funds provided by the Secretary to purchase easements. The agreement may stipulate how the entity uses funds provided by the Secretary. However, the agreement must allow the qualified entity to determine its own criteria and priorities in purchasing easements and use its own terms and conditions for easement purchases. The terms and conditions must be adequate under State law to allow effective enforcement of the easements and include a requirement consistent with agricultural activities regarding impervious surfaces. • There is no federal contingent right of enforcement or reversionary interest in the purchase of the easement or interest in land. • A conservation plan is required for any cropland for which an easement or other interest is purchased. If the easement or interest is perpetual, the Secretary may not require the conversion of the cropland to less intensive uses if soil erosion can be reduced to a “T” or below under the plan. • The Secretary cannot assign a higher priority to an application solely because it costs less the program less. • Fair market value shall be determined under the method used by the Secretary as of Jan. 1, 2003
SEC. 2111. FARM VIABILITY PROGRAM. • Reauthorized through 2012.
SEC. 2112. REAUTHORIZATION OF THE WILDLIFE HABITAT INCENTIVE PROGRAM • Under previous law, WHIP received a $5,000,000 per year authorization of Approps, and additionally received CCC funds. Title II allows the authorization for appropriations to expire, and continues CCC funding at the 2007 level of $85,000,000 each fiscal year through 2012.
SUBTITLE B – CONSERVATION PROGRAMS UNDER OTHER LAWS. SEC. 2201. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM. • Adds Virginia as an eligible State. • Provides for an additional $20,000,000 million in funding should the contingency reserve become available. Otherwise keeps current funding at $20,000,00. • 50% of available funds shall be used for construction or improvement of watershed management or irrigation structures, planting trees for windbreaks or improving water quality, and mitigating risk through diversification or various conservation practices; 40% may be used for any activity relating to the previously mentioned activities, including entering ag trade options, futures, or hedging; and 10% shall be used for organic certification cost share assistance.
SEC. 2202. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM. • Clarifies that an area plan must be developed through a locally led process, and that the planning process must be conducted by a local council. • Changes technical assistance services from providing assistance for long-term implementation to providing assistance for area plans and projects; also changes to providing services of USDA programs in a local community. • The Secretary shall designate a coordinator to provide technical assistance to councils. • The program evaluation requirement is repealed.
SEC. 2203. SMALL WATERSHED REHABILITATION PROGRAM. • Provides $65,000,000 in CCC funds for FY 2008; and $65,000,000 per fiscal year for 2009 through 2012, pending contingency fund availability. • Authorizes appropriations for fiscal years 2007 through 2012 at current funding level of $85,000,000 per year.
SUBTITLE C – ADDITIONAL CONSERVATION PROGRAMS SEC 2301. CHESAPEAKE BAY PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT CONTROL. • Defines the Chesapeake Bay watershed as all tributaries, backwaters side channels and their watersheds which drain in to the Chesapeake Bay. • Requires the Secretary to develop a comprehensive plan to restore and protect the bay watershed. • The plan will provide for proven technologies and innovative approaches to improve water quality and quantity; restore, enhance and preserve wildlife habitat; and increase economic opportunity for rural communities and producers. • The plan must be developed in consultation with relevant federal agencies, and must be provided to Congress two years after this bill’s enactment. • A total of $100,000,000 is authorized to be appropriated over fiscal years 2008 through 2012. The federal share for any individual project shall not exceed $5,000,000, and the non-federal share shall be at least 35%.
� It is the sense of Congress that USDA is authorized and should be a member of the Chesapeake Bay Executive Council. Section by Section Analysis SUBTITLE D – ADMINISTRATION AND FUNDING. SEC. 2401. FUNDING OF PROGRAMS UNDER THE FOOD SECURITY ACT OF 1985. • CSP: CSP contracts entered into before Oct. 1, 2007 shall be funded in the amount of $1,454,000,000 for FY 2007 through 2012 and $1,927,000,000 for FY 2007 through 2017. CSP contracts entered into on or after Oct. 1, 2011, shall be funded in the amount of ___ for FY 2012, and ___ for the period of FY 2013 through 2017. • Farm and Ranchland Protection Program: $300,000,000 each FY 2008 through 2012, if contingent reserve available. If not, $150,000,000 in FY ’08, $200,000,000 in FY ’09, $240,000,000 in FY ’10, $280,000,000 in FY ’11, and $300,000,000 in FY ’12. • EQIP: $2,000,000,000 for each FY 2008 through 2012, if contingent reserve is available. If not, $1,550,000,000 in FY ’08, $1,700,000,000 in FY ’09, $1,800,000,000 in FY ’10, $1,900,000,000 in FY ’11 and $2,000,000,000 in FY ’12. • WHIP is funding is continued through 2012 at $85,000,000 each FY.
SEC. 2402. IMPROVED PROVISION OF TECHNICAL ASSISTANCE UNDER CONSERVATION PROGRAMS. • The Secretary is to direct each State to review and make sure that technical assistance specifications are complete and relevant. In its assessment, the State must consult with specialty crop producers, crop consultants, cooperative extension and land grant universities, NGO’s and other qualified entities. If revisions to the specifications are necessary, the State must set up an expedited process for making those changes. • In order to address concerns of specialty crop growers, the technical assistance specifications must allow the range of conservation practices and mitigation measures available to specialty crop growers. • To provide adequate technical assistance to specialty crop growers, the Secretary must develop programs that meet the needs of specialty crop growers using cooperative agreements with other federal agencies and NGOs, and include program specifications that allow the use of local resources in providing technical assistance.
SEC. 2403. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE. • The paragraphs under “Administration of CCEP” Sec. 1243 of the ’85 Actregarding acreage limitations for CRP and WRP, tenant protections, and t echnical assistance provided by other sources are moved to the end of the next section, Sec. 1244 “Administrative Requirements for Conservation Programs.” • “Administration of CCEP” is renamed “Cooperative Conservation Partnership Initiative.” • The Secretary will enter into 2 to 5 year agreements with eligible entities to preferentially enroll producers in specified conservation programs. This will allow multiple producers and others to cooperate on improving specific resources of concern related to farming on a local, State or regional scale. These agreements are also intended to increase participation of specialty crop growers in conservation programs. • CSP, EQIP, FRPP, RWEP, and WHIP are all programs covered by this section. • Eligible partners are States, State agencies, State subdivisions including counties and conservation districts, Tribes, NGOs and associations with histories of working with farmers on agriculture conservation issues. • Grants and agreements will be awarded under a competitive process. Not more than 25% of the cost share shall come from non-federal sources. However, a project that offers to cover a higher percentage of the costs may be given a higher priority. • Of the funds provided for CSP, EQIP, FRPP, RWEP, WHIP, 10% shall go towards grants and agreements. 90% of these funds shall be allow for State Conservationists, with the advice of State Technical Committees, to select projects at the State level.
SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY. • Raises the base amount of conservation funds that a State must receive in order to receive priority funding for conservation programs from $12,000,000 to $15,000,000.
SEC. 2405. SINGLE, SIMPLIFIED APPLICATION PROCESS FOR CONSERVATION PROGRAMS. • As additional administrative requirements (1244), the Secretary must establish a single, simplified application process for initial requests of assistance. Applicants should not be required to provide information that is already available to the Secretary, and the process itself must minimize complexity and redundancy.
SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP PRODUCERS IN CONSERVATION PROGRAMS. • The Secretary must a submit a report to the House and Senate Agriculture Committees regarding specialty crop producer participation in conservation programs that tracks participation by crop and livestock type, includes a plan to improve access of specialty crop producers to conservation programs, and the describes the results of this plan.
SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES TO CONSERVATION. • The Secretary may research, analyze and enter into contracts and agreements to promote the development of uniform standards for quantifying environmental benefits, promoting the establishment of credit registries and third party verification, and facilitating private sector market based approaches for agriculture and forest conservation activities. • The Environmental Services Standards Board is established to develop uniform standards for quantifying environmental services in order to help develop credit markets agriculture and forest conservation activities. • Board members will be: The Secretaries of Agriculture, Interior, Energy, Commerce, Transportation, the Administrator of EPA, the Commander of the Army Corp of Engineers, and anyone selected by the President. • Performance standards set by the Board may be adopted by Federal agencies to quantify environmental services or establish environmental and conservation credits. • $50,000,000 is authorized to be appropriated for this section.
SEC. 2408. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES. • Changes the existing composition of State technical committees to include NRCS, FSA, and at least 12 producers representing a variety of crops, livestock or poultry grown in the State. Removes the Soil Conservation Service, the Ag Stabilization and Conservation Service, the
Farmers Home Administration, other agency personnel with relevant expertise, and persons knowledgeable about conservation as representatives who may serve on the Committee. • The State technical committees shall convene subcommittees to provide technical guidance and implementation recommendations.
Agricultural Trade Development and Assistance Act of 1954--Agricultural Trade Act of 1978 --- Miscellaneous Increases the availability and viability of American products in foreign markets. Increases funding for the Market Access Program by $125 million over 5 years. Extends the Foreign Market Development Program which works to expand US export opportunities. Increases the Technical Assistance for Specialty Crops Program, which helps US organizations address sanitary, phytosanitary and technical barriers that keep them from exporting to certain other countries.
Reforms the Export Credit Guarantee Programs to bring them into compliance with World Trade Organization agreements Lifts the fee cap of 1% on the GSM-102 program. Eliminates long term export credit (the GSM-103 program).
Helps fight child hunger and improve education around the world. Reauthorizes the McGovern-Dole International Food for Education and Child Nutrition Program. If costs can be offset, the 2007 Farm Bill will increase funding for the McGovern-Dole program. Increases ability of the Agency for International Development to pre-position food around the world to get food aid to people faster. Increases oversight and monitoring of food aid programs to increase efficiency and ensure effectiveness
Section by Section Analysis-Trade
TITLE IV---NUTRITION PROGRAMS The 2007 Farm Bill supports programs that combat food insecurity The Emergency Food Assistance Program (TEFAP), which provides commodities and other assistance to states and helps stock food banks and homeless shelters. The Puerto Rico and American Samoa Block Grant Program, and the Food Distribution Program on Indian Reservations (FDPIR), each of which operate in lieu of the Food Stamp Program in territories and on reservations.
Food Stamps Renames the Food Stamp Program the “Secure Supplemental Nutrition Assistance Program.” De-obligates Food Stamp Coupons and requires the use of Electronic Benefit Transfer (EBT) cards to increase efficiency for users and decrease fraud and abuse in the program. Strengthens the ability of USDA to punish violators
Commodity Distribution Extends the Commodity Supplemental Food Program (CSFP) which helps many low-income elderly individuals that need additional assistance or are reluctant to apply for food stamps. Expands the authority of the Senior Farmer’s Market Nutrition Program which provides senior citizens with vouchers to buy fresh produce at markets and roadside stands. Extends the Department of Defense Fresh Fruit and Vegetable Program (DOD Fresh) which provides a greater variety of fresh produce to schools. Continues the USDA Snack Program, which helps schools provide healthy snacks to students during after-school activities and expands the program to all 50 states
Miscellaneous Reforms benefit rules to adequately cover food expenses and sustain participants for the entire month If the costs can be offset, the 2007 Farm Bill would: End Benefit Erosion and increase the minimum benefit. Raise and Index the Minimum Standard Deduction. Index Asset Limits and exclude Retirement and Education Accounts as assets. Lift Dependent Care Cap Exclude Special Combat Pay as Income
Section by Section Analysis-Nutrition SEC.4001.RENAMING THE FOOD STAMP PROGRAM. Amends the Food Stamp Act by renaming the Food Stamp Program the “Secure Nutrition Access Program”. SEC.4002.CONTINGENT FUNDS RELATING TO STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME AMERICANS. • If offsetting funding is available, amends Section 5(e)(1) of the Food Stamp Act, by increasing the standard deduction for food stamp households and indexing it for inflation. • Raises the standard deduction to not less than $156 (the 48 contiguous States and the District of Columbia), $267 (Alaska), $220 (Hawaii), $137 (Virgin Islands), and $313 (Guam). [Note: Under current law the standard deduction is not less than $134 (the 48 contiguous States and the District of Columbia), $229 (Alaska), $189 (Hawaii), $118 (Virgin Islands), and $269 (Guam)].
SEC.4003.CONTINGENT FUNDS RELATING TO CHILD CARE EXPENSES. If offsetting funding is available, amends Section 5(e)(3)(A) of the Food Stamp Act by lifting the cap on dependent care. [Note: Under current law the maximum deduction allowable is $200 for each child under two years of age, and $175 for each child over two]. SEC.4004.CONTINGENT FUNDS RELATING TO EXCLUSION OF COMBAT-RELATED MILITARY PAY FROM COUNTABLE INCOME. If offsetting funding is available, amends Section 5(d) of the Food Stamp Act by excluding combat-related military pay from countable income, with respect to the Food Stamp program. SEC.4005.CONTINGENT FUNDS RELATING TO EXCLUSION OF EDUCATION ACCOUNTS FROM COUNTABLE FINANCIAL RESOURCES. If offsetting funding is available, amends Section 5(g) of the Food Stamp Act by excluding qualified tuition programs and Coverdell Education Savings Accounts from countable financial resources, with respect to the Food Stamp program. SEC.4006.CONTINGENT FUNDING RELATING TO ALLOWABLE COUNTABLE RESOURCES. If offsetting funding is available, amends Section 5(g) of the Food Stamp Act by indexing for inflation the asset limits for food stamp households. [Note: current law sets the allowable amounts of financial resources (liquid and nonliquid assets) that an eligible food stamp household may own at $2,000; in the case of an eligible food stamp household that consists of or includes an elderly or disabled member the amount is $3,000.
SEC.4007.CONTINGENT FUNDS RELATING TO EXCLUSION OF RETIREMENT ACCOUNTS FROM COUNTABLE FINANCIAL RESOURCES. If offsetting funding is available, amends Section 5(g) of the Food Stamp Act by excluding retirement accounts from countable financial resources, with respect to the Food Stamp program. SEC.4008.DEOBLIGATE FOOD STAMP COUPONS. • Amends the Food Stamp Act to prohibit States from issuing coupons, stamps, certificates or authorization cards, effective upon enactment of the 2007 farm bill. • Provides that effective one year after enactment of the 2007 farm bill, only EBT cards will be eligible for exchange at retail food stores, and further provides that coupons will no longer be an obligation of the Federal government effective one year after enactment of the farm bill, thereby requiring that coupons be redeemed within that one-year period.
SEC.4009. ALLOW FOR THE ACCRUAL OF BENEFITS. Amends the Food Stamp Act by authorizing State agencies to establish procedures for recovering electronic benefits from a household due to inactivity in the account. Under the provision, a State agency may recover such benefits if an account has been inactive for three months during which it continuously had a balance greater than $1,000, or if the account has been inactive for twelve months, whichever is less. SEC.4010.STATE OPTION FOR TELEPHONIC SIGNATURE. • Authorizes State agencies to establish a system for applicant households to sign an application by providing a recorded, verbal assent over the telephone. • The provision sets requirements for such a system, including that a system records the verbal assent, as well as the information to which the assent was given. • The State system must include safeguards against impersonation and identity theft; does not preclude the right of a household to apply in writing; if there any errors, applicants return a written copy of the signed application with instructions correcting them; and applicants must satisfy all requirements associated with a written signature on an application to ensure that the verbal assent triggers the effective date of the submission of the application.
SEC.4011. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN. Amends the Food Stamp Act to specify the State agency employees that are authorized to represent the State in any communications with prospective food stamp applicants, food stamp applicants, or recipient households; participate in making determinations regarding a household’s compliance with the Food Stamp Act; or make any other determinations required under this subsection. SEC.4012.GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEMS AND IMPROVED ACCESS TO BENEFITS. • Extends, through 2012, the authority of the Secretary to make grants available to pay the costs for eligible entities to develop and implement: o simple food stamp application and eligibility determinations; or o measures to improve access to benefits by eligible households.
SEC.4013.CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS. • Increases the civil money penalty for retail stores and wholesale food concerns to $100,000 for violations that the Secretary determines would cause hardship to food stamp households. • Changes the period of a disqualification for a first violation to a period that is “not to exceed five years”. [Note: Current law sets the period for a first violation as “no less than six months nor more than five years”]. • Changes the period of a disqualification for a second violation to a period that is “not to exceed ten years”. [Note: Current law sets the period for a second violation as “no less than twelve months nor more than ten years”]. • Requires the Secretary, in consultation with USDA’s Inspector General, to establish procedures whereby retail food stores and wholesale food concerns may be immediately suspended – pending an administrative appeal – from participating in the food stamp program.
SEC.4014. PREVENTING MAJOR SYSTEMS FAILURES. Amends the disposition of claims under the Food Stamp Program, providing the Secretary with the discretion to determine that a State agency over issued benefits to a substantial number of households as the result of a systemic error by the State. Upon making such a determination, the Secretary may prohibit the State from collecting the overissuances from the households and require the State to reimburse the Secretary for the overissuances. SEC.4015.FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS. Amends the Food Stamp Act by extending to 2012 funds provided to States for employment and training programs for food stamp recipients. SEC.4016.REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS. Extends through 2012, Section 16(k)(3) of the Food Stamp Act, which provides that the Secretary of Agriculture reduce payments to States for administrative costs associated with the food stamp program, in the amount which States are reimbursed under the Social Security Act for administering such program. SEC.4017. RESEARCH PROJECTS. Extends through October 1, 2012, pilot projects that improve the delivery of food stamp benefits, which have been operating since October 1981 and involve cash payments to households whose members are 65 years or over or entitled to supplemental security income benefits. Reauthorizes appropriations to carry out the Food Stamp Act through 2012. SEC.4019.CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN SAMOA. Amends the Food Stamp Act by extending to 2012 block grants to Puerto Rico and American Samoa to administer their nutrition assistance programs. SEC.4020.STUDY ON COMPARABLE ACCESS TO FOOD STAMP BENEFITS FOR PUERTO RICO. Amends the Food Stamp Act by requiring the Secretary to conduct a study on the feasibility of including Puerto Rico in the Food Stamp Program. [Note: In 1982 Puerto Rico replaced the Food Stamp Program with a block grant program, called the Nutrition Assistance Program]. SEC.4021. REAUTHORIZATION OF AND INCREASED FUNDING FOR COMMUNITY FOOD PROJECT COMPETITIVE GRANTS. • Amends the Food Stamp Act to limit grants under the community food project to be no more than $30 million for each of fiscal years 2008 through 2012. • Increases the Federal share of the cost of the grants from not greater than 50 percent to not greater than 75 percent of the cost of the project, and extends the maximum term of a grant from three to five years. • The Section expands the list of preferences for selecting community food projects to include those projects that serve special needs in transportation and processing for emergency food service, access to underserved markets, integration of urban and metro-area food production, and technical assistance for youth, socially disadvantaged individuals, and groups with limited resources.
SEC.4201.AUTHORIZATION OF APPROPRIATIONS. Amends section 204(a)(1) of the Emergency Assistance Act, by increasing the authorization of appropriations to $100 million for the direct and indirect costs to States related to the processing, storage, transporting, and distribution of commodities. SEC.4202.CONTINGENT FUNDS RELATING TO COMMODITIES FOR THE EMERGENCY ASSISTANCE FOOD PROGRAM. If offsetting funding is available, amends Section 27(a) of the Food Stamp Act increasing to $250 million and indexing the mandatory funding for commodities made available for the Emergency Assistance Food Program (TEFAP). SEC.4203.DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION PROJECTS. Amends section 1141(a)(2)(A) of the Agriculture and Food Act, by extending through 2012 the availability of surplus commodities, to be made available without charge or credit, to nutrition projects under the authority of the Older Americans Act, to child nutrition programs providing food service, and to food banks participating in special nutrition projects.
SEC.4204.COMMODITY DISTRIBUTION PROGRAM. • Extends, through 2012, the Secretary’s authority to purchase and distribute agricultural commodities for food assistance programs, including but not limited to institutions (including hospitals and facilities caring for needs of infants and children), supplemental feeding programs serving women, infants, and children or elderly persons, or both. • Extends, through, 2012, the Commodity Supplemental Food Program (CSFP), which provides commodity packages to low-income pregnant and breastfeeding women, other new mothers up to one year postpartum, infants, children up to six years of age, and elderly people who are at least 60 years old.
SEC.4301.EXPANSION OF DOD FRESH PROGRAM. Provides that the Secretary shall not spend less than $50 million in fiscal year 2008, $75 million for both fiscal years 2009 and 2010, $100 million for fiscal year 2011, and $125 million for fiscal year 2012 for purchasing fresh fruits and vegetables as part of the Richard B. Russell National School Lunch Program. SEC.4302.EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM. • If offsetting funding is available, amends the Richard B. Russell National School Lunch Act to increase funding for the fresh fruit and vegetable program to $100 million in each of fiscal years 2008 through 2012. • The Section expands the program from 50 schools in each of eight States to 50 schools in each State, plus additional schools in each State in proportion to the student population of the State.
SEC.4401.SENIORS FARMERS’ MARKET NUTRITION PROGRAM. • Extends the senior farmers’ market nutrition program at the current level of $15 million annually, but authorizes the Secretary to use funds up to $20 million for fiscal year 2008, $30 million for fiscal year 2009, $45 million for fiscal year 2010, $60 million for fiscal year 2011, and $75 million for fiscal year 2012, subject to availability. • Provides that honey, in addition to fruits, vegetables and herbs, be included in the program.
SEC.4402.CONGRESSIONAL HUNGER CENTER. • Establishes the Bill Emerson National Hunger Fellowship Program and the Mickey Leland International Hunger Fellowship Program in order to encourage future leaders of the United States to pursue careers in humanitarian and public service, to recognize the needs of low-income individuals, and to provide assistance to people in need. The Fellowship programs will seek public policy solutions to the challenges of hunger and poverty, and provide training and development opportunities for future leader. • Authorizes the Secretary to contract with the Congressional Hunger Center to administer the Fellowship Programs to make Fellowships available. • Authorizes appropriations in the amount of $3 million for each of the fiscal years 2008 through 2012.
TITLE V—CREDIT Expands Credit Availability for Farmers and Ranchers
Farm Ownership Loans Increases the farm ownership loan limit and the operating loan limit to $300,000 Program Basics: Currently, the FSA limits maximum direct loans to $200,000 per borrower. Establishes a loan guarantee program to help farmers carry out conservation programs Creates a program that allows USDA to provide loans to farmers and ranchers to carry out conservation projects Requires the Secretary, when making or guaranteeing loans for soil and water conservation and protection to give priority to: 1) Qualified beginning farmers or ranchers; 2) Socially disadvantaged farmers or ranchers; Producers who use the loans to build conservation structures or establish conservation practices Prioritizes Socially Disadvantaged and Beginning Farmers and Ranchers in Credit Programs Increases the amount of direct farm ownership loans, guaranteed farm ownership loans, direct farm ownership loans reserved for down payment and direct operating loans for beginning farmers and ranchers. Makes adjustments to the Beginning Farmer and Rancher Down Payment Loan Program, including fixing the interest rate at 4% below the regular direct farm ownership loan interest rates or 1%, whichever is greater; maximum allowable sales price is increased from $250,000 to $500,000; the borrower down payment requirement is reduced to not less than 5%; the FSA portion is increased to 45%; and the term of the loan is changed from 15 years to 20 years; and Socially Disadvantaged farmers and ranchers are also made eligible for the program Restores priority given to socially disadvantaged farmers and ranchers whenever the Secretary of Agriculture sells or leases property. Extends the right of first refusal to reacquire a homestead property to members for the immediate family member of borrower-owners who are socially disadvantaged farmers or ranchers. Administrative Provisions Expands the Land Contract Pilot Program Extends the current 2-year limit on payment guarantees to 3 years. Provides land sellers the option of choosing either the 3 year guarantee or a standard 90% guarantee Makes Socially Disadvantaged Farmers and Ranchers eligible for the program
Section-by-Section Analysis SEC.501. SOIL AND WATER CONSERVATION AND PROTECTION Amends section 304 of the Consolidated Farm and Rural Development Act (Con Act ) by updating the priorities for loans made or insured for soil and waster conservation and protection to include, beginning farmers or ranchers, socially disadvantaged farmers or ranchers, and organic farmers. SEC.502. CONSERVATION LOAN GUARANTEE PROGRAM Amends Sec 304 of the Con Act by adding a new section “304A” that would create a conservation loan guarantee program. This program would allow the Secretary to provide loans and interest subsidies, or both, to farmers, ranchers, and other entities primarily and directly engaged in agricultural production to carry out conservation projects. SEC.503. LIMITATIONS ON AMOUNT OF OWNERSHIP LOANS Amends Sec 305(a)(2) of the Con Act, by increasing the farm ownership loan limit from $200,000 to $300,000; requires the Secretary to establish a plan to encourage borrowers to graduate to private commercial or other sources of credit. SEC.511. LIMITATIONS ON AMOUNT OF DIRECT OPERATING LOANS Amends Sec 313(a)(1) of the Con Act, by increasing the operating loan limit from $200,000 to $300,000 for a loan other than one guaranteed by the Secretary. SEC.521. INVENTORY SALES PREFERENCES Amends Section 335(c) of the Con Act by restoring priority to socially disadvantaged farmers and ranchers whenever the Secretary sells or leases property; requires the Secretary, whenever selling or leasing property, to ensure that socially disadvantaged farmers and ranchers are included in the process. SEC.522. LOAN FUND SET-ASIDES Amends Section 346(b) of the Con Act by increasing from 70 to 75 percent for the amount of direct farm ownership loans that the Secretary is to reserve for beginning farmers and ranchers; includes, participation loans along with down payment loans, as the type of loans that the Secretary is to reserve for beginning farmers and ranchers; changes from 60 percent to 66 percent for the amount of direct farm ownership loans that are to be reserved for down payment and participation loans for beginning farmers and ranchers; increases from 35 to 40 percent for the amount of direct operating loans that are to be made available to beginning farmers and ranchers; increases from 25 to 40 percent for the amount of guaranteed farm ownership loans to be reserved for beginning farmers and ranchers. SEC.523. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT Amends section 344 of the Con Act by creating a new section, Section 345, which requires the Secretary, when making or insuring a real estate or operating loans, to establish regulations that have as their goal, the transitioning of borrowers to sources of credit, including private commercial credit, in the shortest practicable period of time. SEC.524. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE HOMESTEAD PROPERTY TO IMMEDIATE FAMILY MEMBER OF BORROWER-OWNER Amends Section352(c)(4)(B) of the Con Act by extending the right of first refusal to reacquire a homestead property to members of the immediate family of the borrower-owner; allows for an independent appraisal of the property by an appraiser selected by the immediate family member of the borrower-owner. SEC.531. AGRIBUSINESS LOAN ELIGIBILITY Amends Section 1.9 of the Farm Credit Act (FCA) to authorize Farm Credit banks to provide credit and financial services to agribusinesses; that is, persons primarily engaged in processing, preparing for market, handling, purchasing, testing, grading, distributing, or marketing farm or aquatic products; or primarily engaged in furnishing farm or aquatic business services, or farm and or aquatic supplies, including inputs such as feed, fertilizer, equipment, and other capital goods to farmers, ranchers, or producers or harvesters of aquatic products only to the extent that the activities are related to renewable energy. • Amends Section 1.11(a)(1) of the FCA to allow Farm Credit banks to make loans for agricultural or aquatic purposes to agribusinesses; that is, persons who are primarily engaged in processing, preparing for market, handling, purchasing, testing, grading, distributing, or marketing farm or aquatic products; or primarily engaged in furnishing farm or aquatic business services, or farm or aquatic supplies, including inputs such as feed or fertilizer, equipment and other capital goods to farmers, ranchers, or producers or harvesters of aquatic products for necessary capital structures and equipments and initial working capital for activities only to the extent that the activities are related to renewable energy.
• Amends Section 2.4 of the FCA by allowing Production Credit associations, under standards prescribed by the board of directors of the Farm Credit banks, to make, guarantee or participate with other lenders in short- and immediate-term loans to agribusinesses; that is, persons who are primarily engaged in agribusiness; that is, processing, preparing for market, handling, purchasing, testing, grading, distributing, or marketing farm or aquatic products; or primarily engaged in furnishing farm or aquatic business services, or farm or aquatic supplies, including inputs such as feed or fertilizer, equipment, and other capital goods to farmers, ranchers, or producers or harvesters of aquatic products only to the extent that the activities are related to renewable energy.
• Amends Section 3.8(b)(1) of the FCA to allow persons who are primarily engaged in processing, preparing for market, handling, purchasing, testing, grading, distributing, or marketing farm or aquatic products; or primarily engaged in furnishing farm or aquatic business services, or farm or aquatic supplies, including inputs such as feed or fertilizer, equipment, and other capital goods to farmers, ranchers, or producers or harvesters of aquatic products, only to the extent that their activities are related to renewable energy, to be eligible to borrow from a bank for cooperatives. SEC.532. POPULATION LIMIT FOR SINGLE-FAMILY HOUSING LOANS Amends Section 1.11(b)(3) of the FCA, with respect to extensions of credit, by changing the definition of rural area for rural housing purposes to a city or town that has population “of greater than 6,000 inhabitants and the urbanized area contiguous and adjacent to such a city or town” – current law restricts the definition to exclude “any city or village having a population in excess of 2,500 inhabitants.” • Amends Section 2.4(b)(3) of the FCA, with respect to short- and immediate-term loans, by changing the definition of “rural area” for rural housing purposes to a city or town that has population “of greater than 6,000 inhabitants and the urbanized area contiguous and adjacent to such a city or town” – current law restricts the definition to exclude “any city of village having a population in excess of 2,500 inhabitants.”
SEC.533. BANK FOR COOPERATIVES VOTING STOCK Amends Section 3.3(c) of the FCA by authorizing the issuance and transfer of voting stock in the bank to, and the holding of such stock by, banks for cooperatives and associations. • Amends Section 4.3A(c)(1)(D) of the FCA, with respect to the requirements of the bylaws regarding the capitalization of Farm Credit institutions, by adding to the list of eligible borrowers of Farm Credit System stock, person and entities eligible to borrow from banks for cooperatives and associations.
SEC.534. BORROWER STOCK REQUIEMENT Amends Section 4.3A(c)(1)(E)(i) of the FCA by changing the requirement, as a condition of borrowing from a Farm Credit institution, that a borrower, at the time the loan is made is to acquire $1,000 or 2 percent of the amount of the loan, whichever is less to an amount that is to be “determined by the institution.” SEC.535. RURAL UTILITY LOANS Amends Section 8.0(9) of the FCA to allow rural utility loans (loans, or interest in a loan, for electric and telephone facilities) to be considered as “qualified loans.” 3 SEC.536. FARM CREDIT SYSTEM INSURANCE CORPORATION Amends Section 1.12(b) of the FCA to change the method that each Farm Credit System bank must use to assess associations and other financing institutions to cover the costs of making Farm Credit System Insurance Corporation (FCSIC) premium payments under Part E of Title V of the FCA. This section would change current law to no longer specify how Farm Credit System Banks are to assess lenders, but would allow the assessments to be computed in an “equitable manner.” • Amends Section 5.55(a) of the FCA to reduce the total insured debt obligations on which premiums are assessed by 90 percent of federal government-guaranteed loans and investments, and 80 percent of state government-guaranteed loans and investments. Current law only applies to federal government-guaranteed loans and state government-guaranteed loans.
• Amends Section 5.55(b) of the FCA by striking the word “annual,” which would allow FCSIC to collect premiums more frequently than annually.
• Amends Section 5.55(c) of the FCA to allow Farm Credit System banks to deduct a percentage of federal government-guaranteed investments and a percentage of state government-guaranteed investments when calculating the “secure base amount.” Current law allows Farm Credit System banks to deduct a percentage of federal government-guaranteed loans and a percentage of state government-guaranteed loans when calculating the “secure base amount.”
• Amends Section 5.55(d) of the FCA to determine the principal outstanding on all loans made by an insured Farm Credit System bank or the amount outstanding on all investments made by an insured system bank for purposes of premium calculations and “secure base amount” calculations. Current law only pertains only to loans and not to investments.
• Amends Section 5.55(e) of the FCA to require FCSIC to use year end numbers, rather than the “average daily balance” in calculating excess funds; simplifies the formula, contained in current law, concerning payments from the Farm Credit Insurance Fund Allocated Insurance Reserve Accounts – which is where excess funds are placed according to current law.
• Amends Section 5.56(a) of the FCA, by allowing Farm Credit System banks to file certified statements quarterly rather than annually, as current law mandates.
• Amends Section 5.58(10) of the FCA to clarify that FCSIC has the authority to adopt rules and regulations concerning section 1.12(b) of Title I of the FCA, “Authority to Pass Along Cost of Insurance Premiums.”
TITLE VI---RURAL DEVELOPMENT Makes critical investments in our rural communities Renews successful programs that provide vital healthcare, emergency and communications needs to underserved areas.
Adds innovative projects to promote economic development in the technology-driven 21st Century Requires the Secretary to assess the varying definitions of rural used by the U.S. Department of Agriculture and to make recommendations to Congress to better target funds through rural development programs. Authorizes the Rural Firefighters and Emergency Medical Service Assistance Program to provide improved emergency medical services in rural areas. Creates a new grant program to assist rural health facilities in the key areas of health information technology and quality improvement. Expands 9-1-1 access in rural areas by making telephone loans to public entities for facilities and equipment. Provides grants for weather radio transmitters to increase coverage of rural areas by the emergency weather broadcast system. Improves access to broadband telecommunications services in rural areas with a greater focus on the rural communities of greatest need. Authorizes the Community Connect Grant Program to provide grants to finance broadband transmission in rural areas to currently unserved rural communities. The bill extends and makes significant changes to the existing broadband program to ensure a greater focus on rural areas and reduce the level of loans going to areas already sufficiently served by existing broadband providers. Ensures the nation has a comprehensive rural broadband strategy. · Advances Economic Development in Rural America by Attracting New Businesses, Improving Access to Technology, and Capturing New Markets: Authorizes a technology transfer program that provides technical information and resources for farmers practicing or transitioning to sustainable and organic farming practices. Creates a new Rural Entrepreneur and Microenterprise Assistance Program to provide technical and financial assistance to micro-enterprises and small businesses in rural areas with less than 10 employees. Extends the Value-Added Agricultural Product Market Development Grant program and establishes a 10% set-aside for beginning farmers and ranchers. Extends Rural Business Opportunity Grants for job training in rural areas. Extends Rural Cooperative Development Grants, a competitive program that establishes and operates centers for rural cooperative development. Extends the Agriculture Innovation Center Demonstration Program, which provides technical assistance, outreach, and business and marketing planning to increase the viability, growth, and sustainability of value-added agricultural businesses. Renews Water and Waste Disposal Grants and Rural Water and Wastewater Circuit Rider Programs to help reduce water and waste disposal operating costs for rural areas and towns. Renews the Emergency and Imminent Community Water Assistance Grant Program to provide technical assistance to communities that have had a significant decline in quantity or quality of drinking water. Provides grants to qualified non-profit organizations for the construction of household water well systems in low-income areas Extends the Delta Regional Authority, a federal-state partnership that has funded 334 projects in its first five years and led to the investment of more than $750 million in the region. Extends and enhances the Northern Great Plains Regional Authority by enhancing flexibility for the Authority as well as including renewable energy projects among the target funding areas. Establishes a National Board on Rural America that is to make planning and innovation grants to certified Regional Investment Boards. Amends Consolidated Farm and Rural Development Act---Rural Electrification Act of 1936---Food, Agriculture, Conservation and Trade Act of 1990---SEARCH Grants for Small Communities---
Section by Section Analysis-Rural Development Sec.601.Definition of Rural. Requires the Secretary to assesses the varying definitions of rural used by the U.S. Department of Agriculture (USDA),describe what effect the varying definitions have on the programs USDA administers, and make recommendations Congress to better target funds through rural development programs. Sec. 602.Water or Waste Disposal Grants. Reauthorizes section 306(a)(2)(A) of the Consolidated Farm and Rural Development Act (Con Act), which allows the Secretary to make grants available to finance projects for the development, storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas; authorizes an appropriation of $30 million for each of the fiscal years 2008 through 2012. Sec.603.Rural Business Opportunity Grants. Reauthorizes section306(a)(11) of the Con Act, which allows the Secretary to make grants available for business development or labor training in rural areas; authorizes an appropriation of $15 million for each of the fiscal years 2008 through 2012. Sec.604.Rural Water and Wastewater Circuit Rider Program. Reauthorizes section 306(a)(22) of the Con Act, which requires the Secretary to establish a national rural water and wastewater rider program to provide technical assistance to help bring small public water systems into compliance with state and national environmental regulations. The program is modeled on the rural water circuit rider program of the National Rural Water Association; increases funding for the program to $25 million for each of the fiscal years 2008 through 2012. Sec.605.Tribal College and University Essential Community Facilities. Reauthorizes section 306(a)(25) of the Con Act, which allows the Secretary to provide cost-share grants to tribal colleges and universities (as defined in Section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059(c)) for developing essential community facilities in rural areas; authorizes an appropriation of $10 million for each of the fiscal years 2008 through 2012. Sec.606.Emergency Imminent Community Water Assistance Grant Program. Reauthorizes section 306A of the Con Act, which requires the Secretary to provide grants to assist residents in rural areas and small communities comply with the Water Pollution Control Act or the Safe Drinking Water Act; authorizes an appropriation of $35 million for each of the fiscal years 2008 trough 2012. 2 Sec.607.Water Systems for Rural and Native Villages in Alaska. Reauthorizes section 306D of the Con Act, which authorizes the Secretary to make grants to Alaska for the benefit of rural and native villages in that state to provide for the development and construction of water and waste water systems to improve the health and sanitation conditions in those villages; authorizes the appropriation of $30 million for each of the fiscal years 2008 through 2012. Sec.608.Grants to Nonprofit Organizations to Finance the Construction, Refurbishing, and Servicing of Individually-Owned Household Water Well Systems in Rural Areas for Individuals with Low or Moderate Incomes. Reauthorizes section 306E of the Con Act, which authorizes the Secretary to make grants to private nonprofit organizations for loans to eligible low-income individuals for the construction, refurbishing, and servicing of individual household water well systems in rural areas; authorizes an appropriation of $10 million for each of the fiscal years 2008 through 2012. Sec.609.Rural Cooperative Development Grants. Amends section 310B(e) of the Con Act to allow the Secretary to award multi-year Rural Cooperative Development Grants, which are competitive grants to establish and opera te centers for rural cooperative development: • awards one-year grants to centers that have received no prior funding; • requires the Secretary to evaluate programs receiving assistance under the program, and if the Secretary determines that it is in the best interest of the program, the Secretary is authorized to award one to three year grants. Authorizes an appropriation of $50 million for each of the fiscal years 1996 to 2012. Sec.610.Grants to Promote Technical Infrastructure of Rural Healthcare Facilities. Amends subtitle D of the Con Act by adding a new section that authorizes the Secretary to award grants to rural health facilities for the purpose of assisting the facilities in: 1) purchasing health information technology to improve quality health care and patient safety; or 2) improving health care quality and patient safety, including the development of— • quality improvement support structures to assist rural health systems and professionals; and • innovative approaches to financing and delivery of health services to achieve rural health quality goals. Authorizes appropriations of $30 million for each of fiscal years 2008-2012. Sec.611.Rural Entrepreneur and Microenterprise Assistance Program. Amends subtitle D of the Con Act by adding a new Section that authorizes the Secretary to establish rural entrepreneurship and microenterprise grant and loan programs. • The goal of the grant program is to provide training, operations support, or a rural capacity-building service to a qualified organization to assist the organization in developing microenterprise training, technical assistance, market development assistance, and other related services – the program is primarily for businesses with 10 or full-time-equivalent employees. • The goal of the rural microloan and technical assistance program is to provide technical and financial assistance through qualified organizations to sole proprietorships and small businesses located in rural areas with a particular focus on business with 10 or fewer full-time-equivalent employees. Authorizes an appropriation of not more than $20 million for each of fiscal years 2008 through 2012. Sec.612.National Sheep Industry Improvement Center. Amends section 375 of the Con Act by eliminating the requirement that the National Sheep Industry Improvement Center be required to privatize its revolving fund. Provides for a reauthorization of $10 million for each of the fiscal years 2008 through 2012. Sec.613.National Rural Development Partnership. Reauthorizes section 378 of the Con Act, which establishes the National Rural Development Partnership, which is composed of the National Rural Development Coordinating Committee (NRDCC) – the NRDCC is established by the Con Act. Included among the partnership’s purposes are the following: 1) the enhancement of state and local rural development capacities; and 2) the engagement of federal, state, local, tribal, and private and private and nonprofit sectors in such efforts. Authorizes an appropriation of $10 million for each of the fiscal years 2008 through 2012. Sec.614.Historic Barn Preservation. Reauthorizes section 379A of the Con Act, which allows the Secretary to make grants, or enter into contracts with state departments of agriculture or certain nonprofit organizations for historic barn preservation; authorizes an appropriation of “such sums as necessary” for each of the fiscal years 2008 through 2012 to carry out the grant program. Sec.615.Grants for NOAA Weather Transmitters. Reauthorizes section 379B of the Con Act, which allows the Secretary to make grants to public and nonprofit entities, and to borrowers of loans made by the Rural Utilities Service, for the federal share of the cost of acquiring radio transmitters to increase rural coverage by the all hazards weather radio broadcast system of the National Oceanic and Atmospheric Administration(NOAA); authorizes an appropriation of “such sums as necessary” for each of the fiscal years 2008 through 2012 to carry out the grant program. Sec.616.Delta Regional Authority. Reauthorizes Section 382 of the Con Act, which provides federal and state funding for 240 distressed counties across eight states in the Mississippi Delta. Authorizes an appropriation of $30 million for each of the fiscal years 2008 through 2012. Extends the Delta Regional Authority to October 1, 2012. Sec.617.Northern Great Plains Regional Authority. Amends section 383B of the Con Act, by continuing the formula for the federal share of authority’s administrative expenses – the formula is for fiscal year(FY) 2007 100 percent; for FY2008 75 percent; and for FY2009 50 percent; broadens the Authority’s support for resource conservation districts. • Eliminates the order of priority with respect to funding for economic and community development projects[Section 383C(b)(2)]; • Eliminates the “isolated area of distress” designation, which are defined as areas located in “nondistressed counties” – (nondistressed counties are counties that are not the most severely and persistently distressed and underdeveloped and do not have high rates of poverty, unemployment, and outmigration) – that have high rates of poverty, unemployment or outmigration [Section 383F]; • Reduces from 75 to 50 percent the minimum amount of funds that the authority is to allocate to “distressed counties,” which are defined as counties that are the most severely and persistently distressed and underdeveloped and have high rates of poverty, unemployment, or outmigration [Section 383F]; • Eliminates the prohibition of providing funds to “nondistressed counties” [Section 383F]; • Reduces from 50 to 25 percent, the minimum amount of funds that the authority is to allocate to transportation, telecommunication, and public infrastructure projects [Section 383F]; • Includes “renewable energy projects” among the those projects [Section 383F]. Authorizes an appropriation of $30 million for each of the fiscal years 2008 through 2012. Sec.618.Rural Strategic Investment Program Amends section 385E of the Con Act to appropriate $25 million for the Rural Strategic Investment Program, which establishes a National Board on Rural America that is to make planning grants and innovation grants to certified Regional Investment Boards. Sec.619.Expansion of 911 Access. Amends Section 315 of the REA to reauthorize (from 2008 to 2012) the Secretary to make telephone loans to state or local governments, Indian tribes, or other public entities for the expansion of rural 911 access and integrated emergency communication in rural areas. Sec.620.Access to Broadband Telecommunications Services in Rural Areas. Amends Section 601 of the Rural Electrification Act (REA) by: • Changing the definition of an “eligible rural community” to include any area in the United States that is not: o 1) included within the boundaries of any city, town, borough, or village, whether incorporated or unincorporated, with a population of more than 20,000 inhabitants; and o 2) the urbanized area contiguous and adjacent to such a city or town; • [The current definition of an “eligible rural community” in section 601 is “any area of the United States that is not contained in an unincorporated city or town with a population in excess of 20,000 inhabitants.”] • Adding a definition for the term “incumbent service provider”; • Requiring the Secretary when making loans or loan guarantees under this section to give priority to eligible rural communities based on the number of incumbent service providers located in those communities; • Prohibits the Secretary from making a loan to any community where there are more than 3 incumbent service providers; Increasing the percentage of subscriber lines that an eligible entity is allowed to serve from 2 percent to 10 percent; • Requiring that not more than 25 percent of loans be made available, in a single fiscal year, to entities that serve more than 2 percent of the telephone subscriber lines in the United States; • Requiring the Secretary to ensure that the type, amount, and method of security used to secure a loan or loan guarantee is commensurate to the risk involved with the loan or loan guarantee; • Requiring the Secretary to annually report to Congress on the rural broadband loan and loan guarantee program; • Establishing a “National Center for Rural Telecommunications Assessment”: o The Center’s duties include: assessing the effectiveness of rural broad band loan and loan guarantee programs, increasing broadband penetration and purchase in rural areas; and developing assessments of broadband availability in rural areas. o The Center must report annually to the Secretary on its activities and the results of its research. o Authorizes an appropriation of $1 million for each of the fiscal years 2008 through 2012. • Authorizes an appropriation of “such sums as necessary” for each of the fiscal years 2008 through 2012 to carry out the rural broadband loan and loan guarantee program: o Requires the Secretary to set aside 10 percent of the appropriated funds for eligible tribal communities; o Allows the Secretary to use amounts in the reserve that are not obligated by June 30 to make loans and loan guarantees to eligible entities as determined by the Secretary. • Extends the authority to issue loans until 2012.
Sec.621.Community Connect Program. Amends Title VI of the REA to add a new section which authorizes the Secretary to provide financial assistance to eligible applicants to provide broadband transmission service that fosters economic growth, and delivers enhanced educational, health care, and public safety services. • Authorizes the Secretary to prioritize grants that will enhance community access to telemedicine and distance learning. • Requires grant applicants to provide a matching contribution of at least 15 percent of the grant amount requested. Authorizes an appropriation of $25 million for fiscal years 2008 through 2012. Sec.622. Agriculture Innovation Center Demonstration Program. Reauthorizes the Agriculture Innovation Center Demonstration Program, which directs the Secretary to provide grants to eligible entities for assistance to agricultural producers in order to establish and enhance businesses to produce value-added agricultural commodities or products. The program also provides technical assistance and planning to assist producers in establishing value-added businesses. Sec.623.Rural Firefighters and Emergency Medical Service Assistance Program. Amends section 6405 of the Farm Security and Rural Investment Act to make grants available to local governments, Indian tribes, and other entities to train rural firefighters and emergency medical personnel in firefighting, emergency medical practices, and hazardous material and bioagent response and to provide improved emergency medical services in rural areas. • Requires eligible entities, in order to receive a grant, to provide matching funds. Authorizes an appropriation of not more than $30 million for each of the fiscal years 2008 through 2012. Sec.624.Reservation of 10 Percent of Value-Added Agricultural Product Market Development Grant Funding for Projects to Benefit Beginning Farmers and Ranchers or Socially Disadvantaged Farmers or Ranchers. Amends section 231(b) of the Agricultural Risk Protection Act (ARPA) to require the Secretary to set aside 10 percent of the funds for value-added agricultural market development grants for projects benefiting beginning farmers and ranchers or socially disadvantaged farmers and ranchers. • Allows the Secretary to use amounts in the reserve that are not obligated to beginning farmers and ranchers or socially disadvantaged farmers and ranchers by June 30 to make grants to eligible entities as determined by the Secretary. Changes mandatory funding of $40 million to an authorization of appropriations of the same amount for each of the fiscal years 2008 through 2012. Sec.625.Telemedicine and Distance Learning Services in Rural Areas. Amends section 2335A of the Food, Agriculture, Conservation and Trade Act to authorize the Secretary to award loans and grants to schools and medical facilities for acquiring advanced telecommunications technologies to support medical and educational functions in rural areas.
TITLE VII—RESEARCH AND RELATED MATTERS Amends--National Agricultural Research, Extension and Teaching Policy Act of 1977---Food, Agriculture, Conservation and Trade Act of 1990---Agricultural Research, Extension and Education Act of 1998---Other Laws---
Creates a National Agriculture Research Program Office (National Program Office This new office will coordinate the programs and activities of USDA’s research agencies in an effort to minimize duplication and maximize coordination at all levels
Creates 6 Program Offices within the National Program Office. Each Program Office will have a Director to help formulate programs, develop planning and priorities for agriculture research, and help coordinate and track research activities related to agriculture research. Six Program Offices: § Renewable Energy, Natural Resources, and Environment § Food Safety, Nutrition, and Health § Plant Health and Production Protection § Animal Health and Production Protection § Agriculture Systems and Technology § Agriculture Economics and Rural Communities § Requires the President to submit to Congress a single line item reflecting the total amount requested for agriculture research programs Currently, funding is spread among various agencies, making it a challenge to track the total amount of federal investment in agriculture research activities
Preserves Authority for Core Formula Programs for State Level Research and Extension Continues programs established under the Hatch Act of 1887 and the Smith-Lever Act of 1914. Encourages additional funding for Historically Black Colleges (the 1890 institutions), Native American Colleges (the 1994 institutions), and small land grant universities
Establishes an Office to administer competitive grants Promotes the importance of competitive grant programs Reinforces the significance of funding such programs
Expands access to funding, authority and eligibility for research and extension dollars for Hispanic Serving Agricultural Colleges Creates an endowment fund, institutional capacity building program to promote agriculture and sciences, and competitive grant proposal for Hispanic Serving Agricultural Colleges Expands extension capabilities for Hispanic Serving Institutions Amends existing authorities to ensure that Hispanic Serving Institutions are eligible for such programs as the International Ag Research and Extension Program
Creates high priority research initiatives for research related to specialty crop production, bioenergy and biobased products
Section by Section Analysis-Research
Subtitle A – General Provisions SEC. 7101. SINGLE BUDGET SUBMISSION. • Requires the President to submit with the annual budget request a single, combined line item reflecting the total funding request for agriculture research, extension and related activities for the fiscal year and the previous five fiscal years.
SEC. 7102. ADDITIONAL PURPOSES OF AGRICULTURAL RESEARCH AND EXTENSION. • Adds additional purposes of agricultural research and extension to include: • Integrating and organizing agricultural research, extension, education and related programs to respond to 21st century challenges, and to continue to meet the needs of society from a local, Tribal, State, National and international perspective; • Minimize duplication and maximize coordination of the program at all levels; • Position the research, extension, education and related programs system in order to expand the portfolio to increase its contribution to society.
SEC. 7103. THE AGRICULTURAL RESEARCH INSTITUTE. • Establishes six research institutes, collectively known as the “Agricultural Research Institute,” within the office of the Under Secretary of Agriculture for Research, Education, and Economics. The Agricultural Research Institute will coordinate the programs and activities of the research agencies within the mission area to the maximum extent practicable. • The Agricultural Research Institute will include the following institutes: • Renewable energy, resources, and environment; • Food safety, nutrition, and health; • Plant health and production; • Animal health and production; • Agriculture systems and technology; and • Agriculture economics and rural communities. • Each research institute will have a Director appointed by the Under Secretary, and will formulate programs, develop strategic planning and priorities for department-wide research, education, extension and related activities. • The Under Secretary, along with the Directors and in consultation with the National Agricultural Research, Education and Economics Advisory Board, will direct research, education, extension, and related programs for relevant departmental agencies, and ensure that strategies and funds are coordinated throughout. • The Under Secretary will fund each research institute with funds available appropriated to the agencies within the mission area. • Requires the Under Secretary to develop and implement specialty crop research activities; facilitate information delivery; and ensure coordination among research initiatives related to specialty crops.
SEC. 7104. ESTABLISHMENT OF COMPETITIVE GRANT PROGRAMS UNDER THE NATIONAL INSTITUTE FOR FOOD AND AGRICULTURE. • Establishes the National Institute for Food and Agriculture within the Cooperative State Research, Education, and Extension Service to administer all competitive grants.
SEC. 7105. FUNDING FOR THE INSTITUTE FOR FUTURE FOOD AND AGRICULTURAL SYSTEMS. • Requires the Secretary to use 30 percent of funding for competitive grants provided to the National Research Initiative to carry out a competitive grants program, and to transfer $200,000,000 from the Initiative for Future Agriculture and Food Systems account.
SEC. 7106. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS RESEARCH INITIATIVE. • Amends the Agricultural Research, Extension, and Education Reform Act of 1998 to establish a bioenergy and biobased products research initiative to enhance the production, sustainability and conversion of biomass to renewable fuels and related products. • The research initiative will be supported by a bioenergy and biobased product laboratory network that will focus research on improving biomass production and sustainability, and improving biomass conversion in biorefineries. • The Director of the research institute established under Sec. 7103 will coordinate projects and activities under the Biomass Research and Development Act of 2000 to coordinate and maximize the strengths of the Department of Agriculture and Department of Energy. • The Secretary may carry out research and award grants on a competitive basis. • $50,000,000 is authorized to be appropriated for each of fiscal years 2008 through 2012 to carry out this section.
SEC. 7107. ADVISORY BOARD. • Increases the maximum annual limitation on expenses for the National Agricultural Research, Extension, Education, and Economics Advisory Board to $500,000.
SEC. 7108. RENEWABLE ENERGY COMMITTEE. • Requires the National Agricultural Research, Extension, Education, and Economics Advisory Board to establish and appoint initial members to a permanent renewable energy committee, responsible for studying the research, extension, and economics programs affecting the renewable energy industry. The renewable energy committee will submit annual reports to the Advisory Board with the committee’s findings and recommendations. • The Renewable Energy Committee shall coordinate with the Biomass Research and Development Act Committee. • When preparing the annual budget recommendations for the Department, the Secretary shall take into account the recommendations made by the committee and adopted by the Advisory Board. SEC. 7109. SPECIALTY CROP RESEARCH INITIATIVE. • Establishes the Specialty Crop Research Initiative to develop and disseminate science-based tools to address the needs of specific crops and their regions, including work in plant breeding and genetics, safety, quality, and yield; efforts to identify and address threats posed by invasive species; and efforts to improve production. • The Secretary may carry out research and award grants on a competitive basis. • $100,000,000 is authorized to be appropriated for each of fiscal years 2008 through 2012 to carry out this section.
SEC. 7110. SPECIALTY CROP COMMITTEE REPORT. • Expands the list of recommendations the specialty crops committee must make annually to the National Agricultural Research, Extension, Education, and Economics Advisory Board to include economic analyses of the specialty crop sector and data that provide applied information useful to specialty crop growers.
SEC. 7111. ESTABLISHMENT OF RESEARCH LABORATORIES FOR ANIMAL DISEASES. • Authorizes the Secretary to establish animal disease research laboratories, and to the extent that an animal disease constitutes a threat to the livestock industry, authorizes the Secretary to conduct research, diagnostics, and other activities. • Prohibits a person, State or Federal agency from importing, transporting or storing at a research facility a live virus that the Secretary determines to be a threat to livestock, such as foot-and-mouth disease. The Secretary may, however, import, transport or store such a live virus, and may also allow for a person, State or Federal agency to do the same, if it is in the public interest.
Subtitle B—National Agricultural Research, Extension, and Teaching Policy Act of 1977 This subtitle reauthorizes various grants, programs, centers, appropriations, facilities, institutions under NARETPA. SEC. 7201. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES EDUCATION. • Authorizes appropriations of $60,000,000 for grants and fellowships for food and agricultural sciences education for each of the fiscal years through 2012.
SEC. 7202. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST PRODUCTS. • Authorizes appropriations of $20,000,000 for each of the fiscal years through 2012 for grants to colleges, universities, and Federal laboratories to conduct research related to alcohol and other forms of biomass fuels, and the development of the most economical and commercially feasible means of producing, collecting, and transporting agricultural crops, wastes, residues, and byproducts for use as feedstocks for the production of alcohol and other forms of biomass energy.
SEC. 7203. POLICY RESEARCH CENTERS. • Authorizes funds to be appropriated as necessary in each of the fiscal years through 2012, for grants and cooperative agreements with policy research centers to conduct research and education programs concerning the effect of policies on the farm and agricultural sectors; the environment; rural families and economies; and consumers, food and nutrition.
SEC. 7204. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH PROGRAM. • Authorizes funds to be appropriated as necessary in each of the fiscal years through 2012, for grants for a multi-year research initiative on human nutrition intervention and health promotion.
SEC. 7205. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL RESEARCH. • Authorizes appropriations of $10,000,000 for each of the fiscal years through 2012, for the Secretary to conduct a pilot research program to link major cancer and heart disease research efforts with agricultural research efforts to identify compounds in vegetables and fruits that prevent these diseases.
SEC. 7206. NUTRITION EDUCATION PROGRAM. • Authorizes appropriations of $83,000,000 for each of the fiscal years through 2012, to carry out the food and nutrition education program.
SEC. 7207. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS. • Authorizes funds to be appropriated as necessary up to $25,000,000 for each of the fiscal years through 2012, to support continuing animal health and disease research programs.
SEC. 7208. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS. • Authorizes funds to be appropriated as necessary up to $35,000,000 for each of the fiscal years through 2012, to support research on specific national or regional animal health or disease problems, or national or regional problems relating to pre-harvest, on-farm food safety.
SEC. 7209. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY. • Authorizes appropriations of $25,000,000 for each of the fiscal years through 2012, for grants to 1890 land-grant institutions to acquire and improve agricultural and food sciences facilities and equipment.
SEC. 7210. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS. • Authorizes appropriations of $2,000,000 for each of the fiscal years through 2012, to make a competitive grant to five national research and training virtual centers located at 1890 land-grant institutions.
SEC. 7211. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION ACTIVITIES OF 1890 INSTITUTIONS. • Establishes a formula for States to provide matching funds to be provided to 1890 land-grant institutions for agricultural research, extension, and education activities, through fiscal year 2012.
SEC. 7212. HISPANIC-SERVING INSTITUTIONS. • Authorizes appropriations of $20,000,000 for each of the fiscal years through 2012, to make competitive grants to Hispanic-serving institutions to promote and strengthen the institutions’ abilities to carry out education, applied research, and related community development programs.
SEC. 7213. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND EDUCATION PROGRAMS. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make competitive grants directed to agricultural research, extension, and teaching activities to colleges and universities to strengthen U.S. economic competitiveness and promote international market development.
SEC. 7214. RESEARCH EQUIPMENT GRANTS. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make competitive grants for the acquisition of special purpose scientific research equipment for use in the food and agricultural science programs of eligible institutions.
SEC. 7215. UNIVERSITY RESEARCH. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for certain existing and new agriculture research programs.
SEC. 7216. EXTENSION SERVICE. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to carry out the extension programs of the Department of Agriculture.
SEC. 7217. SUPPLEMENTAL AND ALTERNATIVE CROPS. • Requires the Secretary to develop and implement a research project for the development of supplemental and alternative crops.
SEC. 7218. AQUACULTURE RESEARCH FACILITIES. • Authorizes appropriations of $20,000,000 for each of the fiscal years through 2012, to make competitive grants to Hispanic-serving institutions to promote and strengthen the institutions’ abilities to carry out education, applied research, and related community development programs.
SEC. 7219. RANGELAND RESEARCH. • Authorizes funds to be appropriated not to exceed $10,000,000 for each of the fiscal years through 2012, to make grants to land-grant colleges and universities, State agricultural experiment stations, and other institutions to conduct rangeland research.
SEC. 7220. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for biosecurity planning and response.
SEC. 7221. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the Secretary to make competitive or non-competitive grants to eligible institution in insular areas to strengthen the capacity of such institutions to carry out distance food and agricultural education programs using digital network technologies. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for competitive grants to insular area institutions to strengthen educational capacities in the food and agricultural sciences.
Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990 This subtitle reauthorizes various programs, initiatives, and a clearinghouse under FACTA. SEC. 7301. NATIONAL GENETICS RESOURCES PROGRAM. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the national genetics resources program.
SEC. 7302. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVE. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for competitive grants for specified high-priority research and extension initiatives.
SEC. 7303. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for competitive grants for the nutrient management research and extension initiative.
SEC. 7304. AGRICULTURAL TELECOMMUNICATIONS PROGRAM. • Authorizes funds to be appropriated not to exceed $12,000,000 for each of the fiscal years through 2012, to encourage the development and utilization of an agricultural communications network to strengthen agricultural extension, resident education and research, and marketing of agricultural commodities. SEC. 7305. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES. • Authorizes appropriations of $6,000,000 for each of the fiscal years through 2012, to make demonstration grants to support cooperative programs between State Cooperative Extension Service agencies and private nonprofit disability organizations to provide on-
the-farm agricultural education and assistance for individuals with disabilities who are engaged in farming. SEC. 7306. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE. • Authorizes appropriations of $500,000 for each of the fiscal years through 2012, National Rural Information Center Clearinghouse to provide and distribute information and data to any industry, organization, or Federal, State, or local government entity about programs and services provided in rural areas.
Subtitle D—Agricultural Research, Extension, and Education Reform Act of 1998 This subtitle reauthorizes various partnerships, initiatives, grants, and offices under AREERA. SEC. 7401. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY RESEARCH. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make competitive grants to eligible partnerships to coordinate and manage research and extension activities to enhance the quality of high-value agricultural products.
SEC. 7402. PRECISION AGRICULTURE. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make competitive grants to conduct research, education, or information dissemination projects for the development and advancement of precision agriculture.
SEC. 7403. BIOBASED PRODUCTS. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to develop, commercialize, and promote the use of biobased products.
SEC. 7404. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to fund the Thomas Jefferson Initiative for Crop Diversification, which supports research and development on the production, marketing and efficient use of new and nontraditional crops needed to strengthen and diversify the agricultural production base of the U.S.
SEC. 7405. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE GRANTS PROGRAM. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for an integrated research, education, and extension competitive grant program.
SEC. 7406. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA INDICA. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make grants to consortia of land-grant colleges and universities to enhance the ability of the consortia to conduct multi-State research projects aimed at understanding and combating diseases of wheat, triticale, and barley caused by Fusarium graminearum and related fungi.
SEC. 7407. BOVINE JOHNE’S DISEASE CONTROL PROGRAM. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to conduct research, testing and evaluation for the control and management of Johne’s disease in livestock.
SEC. 7408. GRANTS FOR YOUTH ORGANIZATIONS. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make grants to specified youth organizations to establish pilot projects to expand the programs carried out by the organizations in rural areas.
SEC. 7409. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR DEVELOPING COUNTRIES. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make competitive grants to institutions or nonprofit organizations to develop agricultural biotechnology for developing countries.
SEC. 7410. OFFICE OF PEST MANAGEMENT POLICY. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the Office of Pest Management Policy to provide for the effective coordination of agricultural policies related to pesticides and pest management tools.
SEC. 7411. FUSARIUM GRAMINEARUM GRANTS. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to make grants to consortia of land-grant colleges and universities to enhance the ability of the consortia to conduct multi-State research projects aimed at understanding and combating diseases of wheat, triticale, and barley caused by Fusarium graminearum and related fungi.
Subtitle E—Other Laws SEC. 7501. CRITICAL AGRICULTURAL MATERIALS ACT. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to carry out the Critical Agricultural Materials Act.
SEC. 7502. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for specified institutions to be considered land grant colleges. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the Secretary to provide grants to an institution named in the Equity in Educational Land-Grant Status Act of 1994.
SEC. 7503. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the study, plan, design, structure, and related costs of agricultural research facilities under the Research Facilities Act.
SEC. 7504. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT AMENDMENTS OF 1985. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the cost of planning, construction, and other public improvements for Federal agricultural research facilities.
SEC. 7505. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT (NATIONAL RESEARCH INITIATIVE). • Authorizes appropriations of $500,000,000 for each of the fiscal years through 2012, to provide competitive research grants for high priority research.
SEC. 7506. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM. • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, for the farmer and rancher development program to provide training, education, outreach, and technical assistance initiatives for beginning farmers or ranchers.
SEC. 7507. AGRICULTURAL RISK PROTECTION ACT OF 2000 (CARBON CYCLE RESEARCH). • Authorizes funds to be appropriated as necessary for each of the fiscal years through 2012, to provide a grant to the Consortium for Agricultural Soils Mitigation of Greenhouse Gasses.
SEC. 7508. RENEWABLE RESOURCES EXTENSION ACT OF 1978. • Authorizes appropriations of $30,000,000 for each of the fiscal years through 2012, for funding to eligible States with forests yielding renewable resources.
SEC. 7509. NATIONAL AQUACULTURE ACT OF 1980. • Authorizes appropriations of $1,000,000 for the Department of Agriculture, Department of Commerce, and the Department of Interior, respectively, for each of the fiscal years through 2012, for funding for the National Aquaculture Act of 1980.
SEC. 7510. ORGANIC RESEARCH. • Extends the Organic Research and Extension Initiative to examine optimal conservation and environmental outcomes for organically produced agricultural products, and to develop new and improved seed varieties that are particularly suited for organic agriculture. • Authorizes appropriations of $25,000,000 for each of fiscal years through 2012 for the Organic Research and Extension Initiative. TITLE VIII---FORESTRY Sets national private forest conservation priorities
Directs states to conduct assessments of current forest resources. Requires states to develop a long-term strategy for forest resource management Improves cooperation between the government, private landowners and the conservation community in the newly renamed Forest Resource Coordinating Committee.
Reauthorizes the Office of International Forestry
Extends the successful Healthy Forest Reserve Program. Continues the Emergency Forestry Conservation Program for non-industrial forest lands. Reauthorizes Rural Revitalization Technologies to address the use of forest biomass in energy production
Establishes a grant program to recruit and train Hispanics and underserved groups for careers in forestry and related fields
Section by Section Analysis-Forestry SEC.8001.NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION. Amends Section 2 of the Cooperative Forestry Assistance Act (CFAA) by requiring the Secretary to focus on a set of three national private forest conservation priorities when allocating appropriated CFAA funds. The national priorities are: • Conserving and managing working forest landscapes; • Protecting forests from threats to forest health and restoring forests in response to threats to forest health; and • Enhancing public benefits from private forests, including air and water quality, forest products, forestry-related jobs, production of renewable energy, wildlife and wildlife habitat, and recreation.
SEC.8002.STATE-WIDE ASSESSMENTS AND STRATEGIES FOR FOREST RESOURCES. Amends Section 2 of the CFAA by creating a new section that requires, for a State to be eligible to receive funds under the CFFA, the State forester or equivalent State official, develop and submit a plan that includes: a state-wide assessment of forest resource conditions; and a state-wide forest resource strategy. • Requires the State forester – or equivalent State official – to submit the state-wide forest resource strategy on an annual basis. • Allows for the state-wide assessment of forest resource conditions to be updated as the Secretary or State forester – or equivalent State official – determines to be necessary. • Requires the State forester –or equivalent State official – in developing the state wide assessment and annual strategy, to coordinate with the State Forest Stewardship Committee established for the State.
Authorizes the Secretary, for fiscal years 2008 and 2009, to use not more than $10 million in CFAA funds to assist State foresters to develop the plan; for fiscal years 2010 through 2012, the Secretary is authorized to use not more than $3 million in CFAA funding. Requires the Secretary, not later than September 30, 2011, to submit to a report to Congress that describes how the allocated funds were used to address three national priorities. SEC.8003.CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE. Amends Section 16 of the CFAA by changing the name of the “State Forest Stewardship Coordinating Committee” to the “Forest Resource Coordinating Committee”; changes the Chairperson of the committee from the State Forester, or equivalent State official, to the Chief of the Forest Service; requires the Coordinating Committee to be composed of the following: • The Chief of the Natural Resources Conservation Service; The Administrator of the Farm Service Agency; the Administrator of the Cooperative State Research, Education, and Extension Service; the following non-Federal representatives—State foresters, a private non-industrial forest land owner, a forestry industry representative, a conservation organization representative, a land-grant university or college representative, a private forestry consultant, and such other persons that the Secretary determines are appropriate.
and the private sector to address the national priorities; clarifies individual agency responsibilities for each agency represented on the Coordinating Committee regarding the national priorities; and provides advice on the allocation of funds. Limits funding for staffing and expenses of the Committee to $1 million annually. SEC.8004.CHANGES TO STATE FOREST STEWARDSHIP COORDINATING COMMITTEES. Amends Section 19 of the CFAA by making, as one of the duties of the State Coordinating Committee, that it make recommendations to the State forester – or equivalent State official – concerning the development of plan that includes a state-wide assessment of forest resource conditions and a state-wide forest resource strategy. SEC.8005.COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978. Authorizes the Secretary to competitively allocate a portion of CFAA funds to State foresters or equivalent State officials; requires the Secretary to consult with the Forest Resource Coordinating Committee when determining the allocation of funds; requires the Secretary to give priority for funding to States in which the strategies listed in the State-wide assessments best promote the national priorities. SEC.8006.INNOVATIVE EDUCATION, OUTREACH, AND TECHNOLOGY TRANSFER PROJECTS. Authorizes the Secretary to competitively allocate not more than five percent of CFAA funds to support innovative national, regional, or local education, outreach, or technology projects that the Secretary determines would increase the ability of USDA to address the national priorities. Allows any State or local government, Indian tribe, land-grant college or university, or private entity to compete for the funds. Requires that the Secretary not cover more than 50 percent of the total cost of a project. SEC.8011.HEALTHY FOREST RESERVE PROGRAM. Amends Sec. 508(2) of the Healthy Forests Restoration Act by extending the Healthy Reserves Program to 2012. The purpose of the program is to: promote the recovery of threatened and endangered species; improve biodiversity; and enhance carbon sequestration. SEC.8012.EMERGENCY FORESTRY CONSERVATION PROGRAM. Amends Title VI of the Agricultural Credit Act to authorize the Secretary provide financial and technical assistance to owners of non-industrial private forest lands to assist with the development and implementation of plan that: • Provides for restoration and rehabilitation for non-industrial private forest land; • Restores the land and related natural resources; • Uses best management practices on the forest land; and • Incorporates good stewardship and conservation practices on the land.
SEC.8013.OFFICE OF INTERNATIONAL FORESTRY. Amends Section 2450(d) of the Global Climate Change Prevention Act by reauthorizing the Office of International Forestry within the U.S. Forest Services through 2012. SEC.8014.RURAL REVILTILIZATION TECHNOLOGIES. Reauthorizes Section 2371(d) of the Food, Agriculture, Conservation, and Trade Act, which authorizes Secretary, acting through the Chief of the Forest Service, in consultation with the state and private Forestry Technology Marketing Unit at the Forest Products Laboratory, and in collaboration with eligible institutions, to carry out a program that provides funds to address the use biomass and small diameter materials. SEC. 8031. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL RESOURCES LEADERSHIP PROGRAM. Authorizes the Secretary to establish a competitive grant program to assist Hispanic-serving institutions to assist in the retention, recruitment, and training of Hispanics and other under-represented groups in forestry and related fields. Authorizes an appropriation of “such sums as necessary” for fiscal years 2008 through 2012 to carry out the grant program.
TITLE IX—ENERGY
Section by Section Analysis-Energy Sec. 1. Federal procurement of biobased products. Provides for the inclusion of biobased products composed of at least five percent intermediate ingredients and feedstocks in the procurement preference program established under section 9002 of the 2002 Farm Bill. Requires the Secretary to consult with business, academia, and other Federal agencies and to issue criteria for determining which products, intermediate ingredients, and feedstocks will qualify for the USDA Certified Biobased Product label. Doubles current mandatory funding to $2 million annually and expands the purposes for which the funding may be used to include support for ongoing operations of the biobased product designation program, the voluntary labeling program, procurement program models, procurement research, promotion, education, and awareness of the Bio-Preferred Program. Sec. 2. Loan guarantees for biorefineries and biofuel production plants. Provides for loan guarantees of up to ninety percent of loans used to help pay for development, construction and retrofitting of biorefineries and biofuel production plants to demonstrate the commercial viability of converting biomass to fuels or chemicals. Loan guarantees may cover up to $2 billion in loans, split evenly between relatively small plants (up to $100 million) and larger plants ($100 - $250 million). The Secretary determines the maximum loan term. Selection criteria for the loans follow those for the existing grants program in section 9003 of the 2002 Farm Bill. Sec. 3. Biodiesel fuel education program. Reauthorizes program and maintains funding at $2 million annually. Sec. 4. Renewable energy systems and energy efficiency improvements. Reauthorizes and increases funding from the current $3 million to $50 million in 2008, ramping up to $150 million in 2012. Also reserves 15% of funds for projects costing $50,000 or less.
Sec. 5. Adjustments to the bioenergy program. Defines the term “agricultural cellulosic biomass”. Clarifies that the term “bioenergy” includes (a) the production of heat and power from agricultural cellulosic biomass materials at a biofuels plant, (b) biomass gasification, and (c) hydrogen made from cellulosic commodities for fuel cells. (The term “bioenergy” also includes biodiesel and fuel grade ethanol.) Amends the list of eligible commodities under the program by adding agricultural cellulosic biomass and excluding corn starch. Increases current funding level of $0 for 2007 to $1.5 billion for the 2008-2012 period. Sec. 6. Research, extension, and educational programs on biobased energy technologies and products. Reauthorizes Sun Grants to promote research, extension, and education related to biobased energy and product technologies. Sec. 7. Biomass energy transition reserve. Sec. 8. Forest Bioenergy Research Program. Authorizes the Secretary of Agriculture to work with other Federal agencies and universities to conduct a competitive research and development program (including grants, and cooperative agreements) to encourage new forest to energy technologies. Funded at $15 million annually. Sec. 9. Energy Council of the Department of Agriculture. Creates an Energy Council in the Office of the Secretary at USDA to promote the Department’s role in renewable energy production. (Replaces USDA Office of Energy Policy and New Uses.) Sec. 10. Dedicated ethanol pipeline feasibility studies. Provides $1 million for feasibility studies for the construction of a dedicated ethanol pipeline and requires a report to Congress on the results of such studies. (Authorization of appropriations only.) Sec. 11. Biomass research and Development Act of 2000. Modifies findings to include biodiesel, and amends technical study areas to clarify that research areas include sugar processing and refining plants. Extends the Act through 2012. Increases funding from current level of $14 million to $50 million in 2008, ramping up to $150 million in 2012.
(Also does not change current law provision that authorizes an additional annual appropriation of $200 million through 2015.)
TITLE X---MISCELLANEOUS
Livestock---Specialty Crops---Administration---General Provisions
Sugar section by section analysis Section 1401. SUGAR PROGRAM. Extends the non-recourse loan program for sugar. Loan rates remain at 18¢/lb. for raw cane sugar and 22.9¢/lb. for refined beet sugar. The other provisions of the current loan program would remain in effect, including the requirement that the Secretary operate the program at no cost to the Federal government, to the extent practicable, by avoiding forfeitures of sugar. SEC. 1402. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR. Extends the authority for marketing allotments. USDA would continue to be required to establish marketing allotments for sugar each year at a level that the Secretary estimates will result in no forfeitures of sugar to the Commodity Credit Corporation. The Secretary will continue to be required to suspend the marketing allotments if the Secretary estimates that sugar imports will exceed 1.532 million short tons, and that such imports would lead to a reduction in the overall allotment quantity.
Peanuts section by section analysis SEC. 1301. REAUTHORIZATION OF PEANUT PROGRAMS. • Extends the direct payment, counter-cyclical payment, and marketing loan peanut programs contained in the 2002 farm bill. • Amends the definition of “payment acres” for the 2008 through 2012 crops of peanuts as meaning 74 percent of the base acres assigned to a farm. Under current law, payment acres are 85 percent of base acres.
Direct Payment Program • Extends the direct payment program for producers on farms that raised peanuts from the 1998 through 2001 crop years. Under the direct payment program, producers on farms that historically produce peanuts receive annual, fixed payments in an amount that is the product of a farm’s payment acres, the farm’s payment yield, and the direct payment rate, which remains at $36 per ton.
Counter-cyclical Payment Program • Extends counter-cyclical payments for producers on farms that raised peanuts from the 1998 through 2001 crop years. Such producers receive counter-cyclical payments when the effective price of peanuts is less than the target price, which is established statutorily at $495 per ton. The effective price is calculated by adding the higher of the marketing loan rate or the national average price to the direct payment rate. The difference between the target price and the effective price results in the counter-cyclical payment rate. • The amount of the counter-cyclical payment is the product of a farm’s payment acres, the farm’s payment yield, and the counter-cyclical payment rate. The counter-cyclical payment is not tied to actual production, and varies year-to-year, based on the market price of peanuts. • Extends the requirement that historic peanut producers agree to certain conservation, wetland protection, and other protections in order to receive direct and counter-cyclical payments.
Marketing Assistance Loans and Loan Deficiency Payments • Extends non-recourse marketing assistance loans and loan deficiency payments for all peanut farmers based on actual peanuts produced in a given crop year. • Amends the marketing loan rate for peanuts by raising the loan rate to $375 per ton, from $355 in the 2002 farm bill. • Marketing loans and loan deficiency payments will continue to be calculated by comparing the market price against the loan rate for all peanuts produced.
Other Provisions • Extends the planting flexibility provision of the 2002 farm bill, under which farmers are permitted to plant any commodity or crop, with limitations, on base acres for peanuts.
Livestock section by section analysis SEC. 121. REPEAL OF PROHIBITION ON MANDATORY IDENTIFICATION SYSTEM FOR COUNTRY OF ORIGIN LABELING. • The Secretary may use already existing certification systems as a model for a system to certify the country-of-origin of a covered commodity.
SEC. 122. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION. • Expresses the sense of Congress that the eradication of pseudorabies is a high priority that should be carried out under the authorities of the Animal Health Protection Act.
SEC. 123. EFFECT OF USDA INSPECTION AND DETERMINATION OF NON-REGULATED STATUS. • Prevents a State or locality from prohibiting an article the Secretary of Agriculture has inspected and passed, or an article the Secretary has determined to be of non-regulated status.
Dairy section by section analysis SEC. 101. DAIRY PRODUCT PRICE SUPPORT PROGRAM. • Requires the Secretary of Agriculture to support the price of cheddar cheese, butter, and nonfat dry milk by purchasing such products. • Specifies the Secretary’s purchase price of cheddar cheese in blocks, cheddar cheese in barrels, butter, and nonfat dry milk. • If net removals of cheese, butter or nonfat dry milk exceed specific limits for 12 consecutive months, the Secretary may reduce the purchase prices of that commodity during the month that immediately follows. • The prices that the Secretary pays under this section for cheese, butter and nonfat dry milk, respectively, must be uniform across the country. • The Secretary may sell cheese, butter, or nonfat dry milk for unrestricted use from inventories of the Commodity Credit Corporation at prevailing market prices, but not less than 110 percent of the prices specified in the Purchase Price subsection.
SEC. 102. PERMANENT DAIRY FORWARD PRICING PROGRAM. • Makes permanent the dairy forward pricing program, which was a pilot program under the Agricultural Adjustment Act. • Authorizes milk producers and cooperatives to voluntarily enter into forward price contracts with milk handlers. • Prices received by milk producers and cooperatives under the forward contracts will be deemed to satisfy all regulated minimum milk price requirements.
SEC. 103. DAIRY EXPORT INCENTIVE PROGRAM. • Extends the dairy export incentive program until December 31, 2012. The dairy export incentive program encourages trade and expands markets for domestic producers. • Authorizes the Secretary of Agriculture to issue rules to ensure that each year the maximum volume of dairy product exports allowable within the United States’ obligations under the Uruguay Round Agreements is exported.
SEC. 104. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES. • Requires that the Secretary, upon receiving a written request for a hearing to amend a milk marketing order, issue a denial of the request or issue a notice of the hearing, and stipulates the timeframe for a hearing. Notice for a hearing on a proposed amendment to a marketing order must be provided not less than 3 days before the date of the hearing. • Requires the Secretary to issue a recommended decision on a proposed amendment to a milk marketing order no more than 90 days after the date set for the submission of post-hearing findings, conclusions and written arguments.
Further requires the final decision to be issued no more than 60 days after the recommended decision was issued. • Provides that if the Secretary receives a request for a hearing on a proposed amendment to a milk marketing order within 90 days after announcing a decision on a previously proposed amendment to the same order, and the two proposed amendments are essentially the same, the Secretary is not required to call a hearing.
SEC. 105. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR NONFAT DRY MILK. • Requires the Secretary to submit a report to Congress within 90 days regarding the Department of Agriculture’s reporting procedures for nonfat dry milk and the impact of those procedures on Federal milk marketing order minimum prices.
Subtitle B – Miscellaneous Provisions SEC. 121. REPEAL OF PROHIBITION ON MANDATORY IDENTIFICATION SYSTEM FOR COUNTRY OF ORIGIN LABELING. • The Secretary may use already existing certification systems as a model for a system to certify the country-of-origin of a covered commodity.
SEC. 122. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION. • Expresses the sense of Congress that the eradication of pseudorabies is a high priority that should be carried out under the authorities of the Animal Health Protection Act.
SEC. 123. EFFECT OF USDA INSPECTION AND DETERMINATION OF NON-REGULATED STATUS. • Prevents a State or locality from prohibiting an article the Secretary of Agriculture has inspected and passed, or an article the Secretary has determined to be of non-regulated status.
Specialty Crops and other products section by section analysis Subtitle A – Honey and Bees Sec. 1. CONTINUATIONOF CURRENT LOAN RATE FOR NONRECOURSE MARKETING ASSISTANCE LOANS FOR HONEY. • Extends the current loan rate at $0.60 per pound through 2012.
Sec. 2. ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY COLLAPSE DISORDER. • Requires the Secretary to submit a report to Congress on the investigation of honey bee colony collapse and strategies to reduce colony loss.
Subtitle B – Horticulture Provisions Sec. 11. TREE ASSISTANCE PROGRAM. • Makes nursery tree growers eligible under the Tree Assistance Program and future disaster assistance programs for which assistance is provided under that program. • Clarifies that the $75,000 limitation on assistance is per year.
Sec. 12. SPECIALTY CROP BLOCK GRANTS. • Continues the Specialty Crop Block Grant Program through 2012, and increases the levels of funding from $20,000,000 in FY ’08 to $55,000,000 for FY ’12 from the contingency reserve.
Sec. 13. INCREASED SECTION 32 FUNDS FOR PURCHASE OF FRUITS AND VEGETABLES TO SUPPORT DOMESTIC NUTRITION ASSISTANCE PROGRAMS. • Increases the additional amounts of Section 32 funds dedicated to fruit, vegetable and nut purchases from $190,000,000 in FY ’08 to $206,000,000 beginning in 2012. • Expands the Secretary’s purchase discretion to include value-added fruit, vegetable and nut products.
SEC. 14. QUALITY REQUIREMENTS FOR CLEMENTINES. • Requires imports of clementines to comply with quality standards set by the domestic marketing order for clementines.
SEC. 15. IMPLEMENTATION OF FOOD SAFETY PROGRAMS UNDER MARKETING ORDERS. • Authorizes the implementation of quality-related food safety programs under specialty crop marketing orders.
SEC. 16. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE. • Includes a census of specialty crops as part of the general census of agriculture.
SEC. 17. MATURITY REQUIREMENTS FOR HASS AVOCADOES. • Requires the Secretary to issue regulations requiring all Hass avocados sold in the U.S. to meet a minimum maturity requirement. • Allows for exceptions from this requirement for avocadoes intended for charities, relief agencies or processing. • Uses existing inspectors that already inspect avocadoes under other orders. Also allows the Secretary to collect fees to pay for inspection activities. • Imposes civil penalties of between $5 and $5,000 for each violation. • Allows for the diversion of avocados that don’t meet the maturity requirements. • Authorizes appropriations for necessary sums.
SEC. 18. MUSHROOM PROMOTION, RESEARCH AND CONSUMER INFORMATION. • Reflects the changed geographic distribution of mushroom growers and their productivity by combining the regions that are represented on the Board, and increasing the number of pounds required for representation in the region. • Allows the development of good agricultural practices and good handling practices under the mushroom research and promotion order.
Subtitle C – Pest and Disease Management. SEC. 21. THREAT IDENTIFICATION AND MITIGATION PROGRAM. • Establishes a new program to determine and prioritize pest and disease threats to the domestic production of specialty crops. • In conducting the program, the Secretary is directed to develop risk assessments, prioritize pest and disease threats, develop action plans, and implementing the action plans. • The priority list and action plans shall be provided to Congress in an annual report. • Authorizes appropriations for necessary sums.
SEC. 22. MULTI-SPECIES FRUIT FLY RESEARCH AND STERILE FLY PRODUCTION. • Authorizes the construction of a warehouse and irradiation containment facility for fruit fly rearing and sterilization in Waimanalo, Hawaii. • $15,000,000 is authorized to be appropriated for construction and $1,000,000 for each fiscal year is authorized to appropriated for facility maintenance.
SEC. 23. AUDIT-BASED APPROACH TO SPECIALTY CROP PHYTOSANITARY CERTIFICATION. • Establishes a program for the distribution of funds through cooperative agreements with specialty crop growers, their representative organizations, and State and local agencies to develop audit-based certification procedures to protect against the spread of plant pests and diseases and to ease the interstate movement of plant and plant products.
• Authorizes appropriations for necessary sums.
SEC. 24. EARLY PEST DETECTION AND SURVEILLANCE IMPROVEMENT PROGRAM. • Authorizes the Secretary to enter into cooperative agreements with State Departments of Agriculture that conduct early pest detection and surveillance activities. • Provides for auditing and reporting on the use of funds under the agreements. • When allocating funds, the Secretary is permitted to consider certain factors which might increase that State’s risk of pest and disease threats. • States may enter into subagreements with political subdivisions that have legal authority to conduct pest and disease surveillance. • The federal cost-share of carrying out activities under this section is not to exceed 50%, except where an increased federal share is necessary to assist an underserved area or to address a critical need. • The funding of this program increases from $5,000,000 for FY ’08 to $50,000,000 through FY ’12 out of the contingent reserve.
Subtitle D – Organic Agriculture. SEC. 31. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM. • Provides $25,000,000 until expended for the national organic certification cost-share program. • The federal share may not exceed 75% of the cost of certification, and the maximum amount a producer may receive is raised from $500 to $750.
SEC. 32. ORGANIC PRODUCTION AND MARKET DATA. • Adds pricing of organic products as new data to be included in the ongoing collection of data on agriculture production and marketing. • The data on organics under this section shall be collected to analyze crop loss risk of organic methods of production.
Subtitle E - Miscellaneous Provisions. SEC. 41. RESTORATION OF IMPORT AND ENTRY AGRICULTURAL INSPECTION FUNCTIONS TO THE DEPARTMENT OF AGRICULTURE. • Repeals the transfer of APHIS import and inspection functions to the Department of Homeland Security made under the Department of Homeland Security Act of 2002 and requires the return of those functions to USDA.
SEC. 42. GRANT PROGRAM TO IMPROVE THE MOVEMENT OF SPECIALTY CROPS. • The Secretary is authorized to make grants to State and local governments, grower cooperatives, and producer and shipper organizations to improve the cost-effective movement of specialty crops. • The grant recipient must match the amount of funds received under this program.
� Authorizes appropriations for necessary sums. SEC. 43. AUTHORIZATION OF APPROPRIATIONS FOR MARKET NEWS ACTIVITIES REGARDING SPECIALTY CROPS. • Authorizes necessary funds through 2012 for specialty crop market news activities.
SEC. 44. CONTINGENT AVAILABILITY OF FUNDS FOR THE FARMER’S MARKET PROMOTION PROGRAM. • Provides funds for the Farmer’s Market Promotion Program from the contingent reserve in the amounts of $5,000,000 for FY ’08-’10; and $10,000,000 for FY ’11-12.
AMENDMENTS Amendments For H.R.%2024191.
H.AMDT.700 to
H.R.2419 An amendment numbered 1 printed in Part B of House Report
110-261 to reform the farmer safety net to work better for small farmers
at lower cost, reallocate funding to nutrition, conservation, specialty
crops and healthy foods, rural development, and programs that benefit
socially disadvantaged farmers. 2.
H.AMDT.701 to
H.R.2419 An amendment comprised of the following amendments offered En
Bloc: Amendment Nos. 4, 8, 9, 10, 14, 17, 22, 23 as modified, 24, 26, 28,
30 and 31. 3.
H.AMDT.702 to
H.R.2419 An amendment numbered 2 printed in Part B of House Report
110-261 to strike 5 sections from Title V of the bill which expand the
lending authority of the Farm Credit System. The Farm Credit Agency was
created to lend to farmers and has begun lending to commercial entities
unrelated to farming. This amendment requires that loans be made only to
farm-related borrowers. Goodlatte (R-VA-6th) Amendment offered by Mr. Goodlatte. An amendment numbered 3 printed in Part B of House Report 110-261 to streamline and adopt one set of terms and conditions of easements for the Wetlands Reserve Program (WRP), Grasslands Reserve Program (GRP, Farmland and Ranchland Protection Program (FRPP), and Healthy Forest Reserve Program (HFRP). Withdrawn 5. Cardoza (D-CA-18th) Requires performance standards be set fro USDA personnel assigned to Homeland Security and related requirements. Amendment offered by Mr. Cardoza. An amendment numbered 5 printed in Part B of House Report 110-261 to require USDA to transition Animal and Plant Health Inspection Service (APHIS) employees responsible for plant pest inspection duties back to USDA from the Department of Homeland Security in order to better serve the needs of American agriculture. Withdrawn 6. Boustany (R-LA-7th) Amendment offered by Mr. Boustany. An amendment numbered 6 printed in Part B of House Report 110-261 to state that in the case of sweet potatoes, Risk Management Agency Pilot Program data shall not be considered for purposes of determining production for the 2005-2006 Farm Service Agency Crop Disaster Program. Agreed to by voice vote 7. Jackson-Lee (D-TX) Amendment offered by Ms. Jackson-Lee (TX). An amendment numbered 7 printed in Part B of House Report 110-261 to express the sense of Congress that the food available to schoolchildren under the school breakfast and lunch program should be selected so as to reduce the incidence of juvenile obesity and to maximize nutritional value. Passed 422 to 3 RC 748 Amendment offered by Mr. Rangel. (D-NY) An amendment numbered 12 printed in Part B of House Report 110-261 to remove certain banking restrictions related to Cuba's payment for agricultural purchases from U.S. producers. It also authorizes direct transfers between Cuban banks and U.S. banks and allows visas to be issued to conduct activities related to purchasing U.S. agricultural goods. Failed 182 to 245 RC 749 Amendment offered by Mr. Boehner. R-Minority Leader) An amendment numbered 13 printed in Part B of House Report 110-261 to replace the current daily posted county prices (PCPs) used for determing loan deficiency payment rates and repayment rates for marketing assistance loans with a monthly PCP for each crop. It would revise requirements for establishing a producer's loan deficiency payment (LDP) and loan repayment rate to be based on the month that beneficial interest is lost. The amendment aims to address farmers taking advantage of short-term market events to lock in artificially high loan deficiency payments, while actually selling the commodity later at prices well above loan rate. Failed 153 to 271 RC 750 Manzullo amendment modified by unanimous consent. Amendment offered by Mr. Manzullo. An amendment numbered 15 printed in Part B of House Report 110-261 to exempt the Environmental Quality Incentives Program (EQIP) from the $60,000 and $125,000 payment limitations, resetting it to the $450,000 limitation that is in the current law. Failed by voice vote Amendment offered by Mr. Welch (VT). An amendment numbered 10 printed in Part B of House Report 110-261 to encourage schools to submit plans for implementation to the Secretary that include locally grown foods, in areas where geographically available. Withdrawn Amendment offered by Mr. Blumenauer. An amendmend numbered 16 printed in Part B of House Report 110-261 to make conservation easements purchased through a transferable development rights program eligible for grants under the Farm and Ranchland Protection Program. Withdrawn Amendment offered by Mr. Arcuri. An amendment numbered 9 printed in House Report 110-261 to express the Sense of Congress that the Secretary of Agriculture should use existing authority when determining the Class I milk price mover to take into account the increased cost of production, including energy and feed. Withdrawn Amendment offered by Mr. Davis (IL). An amendment numbered 19 printed in Part B of House Report 110-261 to strike the sugar sections in the commodity title as well as the feedstock flexibility program for bioenergy producers, extending current programs until 2012.
Amendments offered by Mr. Peterson (MN). An amendment comprised of the following amendments offered En Bloc in Part B of House Report 110-261: Amendment Nos. 20 and 29. Agreed to by voice vote Amendment offered by Mr. Udall (CO). An amendment numbered 21 printed in Part B of House Report 110-261 to reduce the direct payment rate for cotton by 2/3 of a cent in order to fund enrollment of 224,000 additional acres in the Grasslands Reserve Program. Failed 175 to 251 RC 752 Amendment offered by Mr. Putnam. An amendment numbered 25 printed in Part B of House Report 110-261 to prohibit individuals from receiving farm conservation payments if their income exceeds $1 million, unless 75% of the income comes from farm income. Failed 175 to 252 RC 753 Amendment offered by Mr. Cooper. An amendment numbered 27 printed in Part B of House Report 110-261 to comprehensively reform the federal crop insurance program, including the Administration's farm bill crop insurance proposals. The amendment saves approximately $4 billion while adding resources to the Grassland Reserve Program. Failed 175 to 250 with 1 voting 'Present' RC 754
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