coding:  blue text denotes language that is derived directly from the Farmland Stewardship Program; bold text has been added for emphasis.

SEC. 2003. PARTNERSHIPS AND COOPERATION.

            Section 1243 of the Food Security Act of 1985 (16 U. S.C. 3843) is amended by adding at the end the following:

            “(f)PARTNERSHIPS AND COOPERATION.—

            “(1) IN GENERAL—In carrying out any program under subtitle D, the Secretary may use resources provided under that subtitle to enter into stewardship agreements with State and local agencies, Indian tribes, and nongovernmental organizations and to designate special projects, as recommended by the State Conservationist, after consultation with the State technical committee, to enhance technical and financial assistance provided to owners, operators, and producers to address natural resource issues related to agricultural production.

            “(2) CRITERIA FOR SPECIAL PROJECTS.—The purposes of special projects carried out under this subsection shall be to encourage—

            “(A) producers to cooperate in the installation and maintenance of conservation practices that affect multiple agricultural operations;

            “(B) the sharing of information and technical and financial resources among producers;

            “(C) cumulative conservation benefits in geographic areas; and                                   

            “(D) the development and demonstration of innovative conservation methods.

            “(3) INCENTIVES.—To realize the purposes of the special projects under paragraph (1), the Secretary may provide special incentives to owners, operators, and producers participating in the special projects to encourage partnerships and enrollments of optimal conservation value.

                        “(4) FLEXIBILITY.—

            “(A) IN GENERAL.—The Secretary may enter into stewardship agreements with States (including State agencies and units of local government), Indian tribes, and non governmental organizations that have a history of working with agricultural producers to allow greater flexibility to adjust the application of eligibility criteria, approved practices, innovative conservation practices, and other elements of the programs under this title to better reflect unique local circumstances and purposes in a manner that is consistent with—

            “(i) conservation enhancement and long-term productivity of the natural resource base; and

            “(ii) the purposes and requirements of this title.

            “(B) PLAN.—Each party to a stewardship agreement under subparagraph (A) shall submit to the Secretary, for approval by the Secretary, a special project area plan for each program to be carried out by the party that includes—

            “(i) a description of the requested resources and adjustments to program implementation (including a description of how those adjustments will accelerate the achievement of conservation benefits);

            (ii) an analysis of the contribution those adjustments will make to the effectiveness of programs in achieving the purposes of the special project;

            “(iii) a timetable for reevaluating the need for or performance of the proposed adjustments;

            “(iv) a description of non-Federal programs and resources that will contribute to achieving the purposes of the special project; and

            “(v) a plan for the evaluation of progress toward the purposes of the special project.

            “(5) FUNDING.—

            “(A) IN GENERAL—In addition to resources from programs under subtitle D, subject to subparagraph (B), the Secretary shall use not more than 5 percent of the funds made available for each fiscal year under section 1241(a) to carry out activities that are authorized under conservation programs under subtitle D.

            “(B) UNUSED FUNDING.—Any funds made available for a fiscal year under subparagraph (A) that are not obligated by April 1 of the fiscal year may be used to carry out other activities under conservation programs under subtitle D during the fiscal year in which the funding becomes avail able.”        

SEC. 2005. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

            (a)  IN GENERAL.—The Secretary of Agriculture shall develop a plan to coordinate land retirement and agricultural working land conservation programs that are administered by the Secretary to achieve the goals of—

            (1)  eliminating redundancy;

            (2)  streamlining program delivery; and

            (3)  improving services provided to agricultural producers (including the reevaluation of the provision of technical assistance).

            (b)  REPORT.—Not later than December 31, 2005, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that describes—

            (1)  the plan developed under subsection (a); and

            (2)  the means by which the Secretary intends to achieve the goals described in subsection (a).