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

‘‘(b) AGRICULTURAL MANAGEMENT ASSISTANCE.—

‘‘(1) AUTHORITY.—The Secretary shall provide financial assistance to producers in the States of Connecticut, Delaware, Maryland, Massachusetts,  Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.

‘‘(2) USES.—A producer may use financial assistance provided under this subsection to—

‘‘(A) construct or improve—

‘‘(i) watershed management structures; or

‘‘(ii) irrigation structures;

‘‘(B) plant trees to form windbreaks or to improve water quality;

‘‘(C) mitigate financial risk through production or marketing

diversification or resource conservation practices, including—

‘‘(i) soil erosion control;

‘‘(ii) integrated pest management;

‘‘(iii) organic farming; or

‘‘(iv) to develop and implement a plan to create marketing opportunities for the producer, including through value-added processing;

‘‘(D) enter into futures, hedging, or options contracts in a manner designed to help reduce production, price, or revenue risk;

‘‘(E) enter into agricultural trade options as a hedging transaction to reduce production, price, or revenue risk; or

‘‘(F) conduct any other activity relating to an activity described in subparagraphs (A) through (E), as determined by the Secretary.

 ‘‘(3) PAYMENT LIMITATION.—The total amount of payments made to a person (as defined in section 1001(5) of the Food Security Act (7 U.S.C. 1308(5))) under this subsection for any year may not exceed $50,000.

‘‘(4) COMMODITY CREDIT CORPORATION.—

‘‘(A) IN GENERAL.—The Secretary shall carry out this subsection through the Commodity Credit Corporation.

‘‘(B) FUNDING.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii), the Commodity Credit Corporation shall make available to carry out this subsection not less than $10,000,000 for each fiscal year.

‘‘(ii) EXCEPTION.—For each of fiscal years 2003 through 2007, the Commodity Credit Corporation shall make available to carry out this subsection $20,000,000.’’.