Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830--3839bb) is amended by inserting after chapter 1 (and the matter added by Sec. 255 of this Act) the following:

"CHAPTER 2—FARMLAND STEWARDSHIP PROGRAM

“SEC. 1238. DEFINITIONS.

"In this chapter:

        "(1) AGREEMENT. — The term ‘agreement’ means a service contract authorized by this chapter.

       “(2) BIOFUEL.—       

         “(A) IN GENERAL.—The term ‘biofuel’ means an energy source derived from living or­ganisms.

        “(B) INCLUSIONS.—The term ‘biofuel’ includes—

            “(i) plant residue that is harvested, dried, and burned, or further processed into a solid, liquid, or gaseous fuel;

            “(ii) agricultural waste (such as cereal straw, seed hulls, corn stalks and cobs);

            “(iii) native shrubs and herbaceous plants (such as some varieties of willows and prairie switchgrass); and

            “(iv) animal waste (including methane gas that is produced as a byproduct of ani­mal waste).               

       “(3) BIOPRODUCT.—The term ‘bioproduct’ means a product that is manufactured or produced—

         “(A) by using plant material and plant by­product (such as glucose, starch, and protein); and

         “(B) to replace a petroleum-based product, additive, or activator used in the production of a solvent, paint, adhesive, chemical, or other product (such as tires or Styrofoam cups).

         “(4) CARBON SEQUESTRATION.—The term ‘carbon sequestration’ means the process of providing plant cover to avoid contributing to the greenhouse effect by—

         “(A) removing carbon dioxide from the air; and

         “(B) developing a ‘carbon sink’ to retain that carbon dioxide.

“(5) CONTRACTING AGENCY.—The term ‘contracting agency’ means a local conservation district, resource conservation and development council, ex­tension service office, state-chartered stewardship entity, nonprofit organization, local office of the Department, or other participating government agency that is authorized by the Secretary to enter into farmland stewardship agreements on behalf of the Secretary.

         “(6) ELIGIBLE AGRICULTURAL LAND.—The term ‘eligible agricultural land’ means private land that is in primarily native or natural condition, or that is classified by the Secretary as cropland, pastureland, grazing land, timberland, or another similar type of land, that—

         “(A) contains wildlife habitat, wetland, or other natural resources; or.

         “(B) provides 1 or more benefits to the public, such as— .

           “(i) conservation of soil, water, and related resources; 

           “(ii) water quality protection or improvement;      

           “(iii) control of invasive and exotic species; 

           “(iv) wetland restoration, development, and protection;

           “(v) wildlife habitat development and protection; 

           “(vi) survival and recovery of listed species or candidate species; 

           “(vii) preservation of open spaces or prime, unique, or other productive farm land;      

           “(viii) increased participation in Federal agricultural or forestry programs in an area or region that has traditional under-representation in those programs;

           “(ix) provision of a structure for interstate cooperation to address ecosystem challenges that affect an area involving 1 or more States;

          “(x) improvements in the ecological integrity of the area, region or corridor; 

          “(xi) carbon sequestration; 

          “(xii) phytoremediation;

          “(xiii) improvements in the economic viability of agriculture; 

          “(xiv) production of biofuels and bio­products;

          “(xv) establishment of experimental or innovative crops;  

          “(xvi) use of existing crops or crop byproducts in experimental or innovative ways; 

          “(xvii) installation of equipment to produce materials that may be used for biofuels or other bioproducts; 

          “(xviii) maintenance of experimental or innovative crops until the earlier of the date on which— 

                     “(I) a viable market is established for those crops; or

             “(II) an agreement terminates; 

          (xix) other similar conservation pur­poses identified by the Secretary.        

        “(7) GERMPLASM.—The term ‘germplasm’ means the genetic material of a germ cell of any life form that is important for food or agricultural production.

        “(8) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

         “(9) PROGRAM.—The term ‘program’ means the farmland stewardship program established by this chapter.

         “(10) PYTOREMEDIATION.—The term ‘pytoremediation’ means the use of green living plant material (including plants that may be har­vested and used to produce biofuel or other bioproducts) to remove contaminants from water and soil.

         “(11) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture, acting—

         “(A) through the Natural Resources Conservation Service; and 

        “(B) in cooperation with any applicable agricultural or other agencies of a State.

         “(12) SERVICE CONTRACT.—The term ‘service contract’ means a legally binding agreement between 2 parties under which—

         “(A) 1 party agrees to render 1 or more services in accordance with the terms of the contract; and

         “(B) the second party agrees to pay the first party for the each service rendered.

_SEC. 1238A. ESTABLISHMENT AND PURPOSE OF PROGRAM.

      “(a) ESTABLISHMENT.—

         “(1) IN GENERAL.—The Secretary shall establish within the Department a program to be known as the ‘farmland stewardship program’.

         “(2) PURPOSE.—The purpose of the program shall be to modify and more effectively target conservation programs administered by the Secretary to the specific conservation needs of, and opportunities presented by, individual parcels of eligible agricultural land.

         “(b) RELATION TO OTHER CONSERVATION PROGRAMS.—Under the program, the Secretary may implement, alone or in combination, the features of—

            “(1) any conservation program administered by the Secretary; or

            “(2) any conservation program administered by another Federal agency or a State or local government, if implementation by the Secretary—

      “(A) is feasible; and

      “(B) is carried out with the consent of the applicable administering agency or government.

            “(3) CONSERVATION ENHANCEMENT  PROGRAMS.—

      “(A) IN GENERAL.—States, local governments, Indian tribes, or any combination of those entities may submit, and the Secretary may approve, a conservation enhancement program that integrates 1 or more Federal agriculture and forestry conservation programs and 1 or more State, local, or private efforts to address, in critical areas and corridors, in a manner that enhances the conservation benefits of the individual programs and modifies programs to more effectively address State and local needs—

      “(i) water quality;

      “(ii) wildlife;

      “(iii) farm preservation; and

      “(iv) any other conservation need.

         “(B) REQUIREMENT.—

     “(i) IN GENERAL.—A conservation enhancement program submitted under subparagraph (A) shall be designed to provide benefits greater than benefits that, by reason of any factor described in clause (ii), would be provided through the individual application of a conservation program administered by the Secretary.

         “(I) conservation commitments of greater duration;

         “(II) more intensive conservation benefits;

         “(III) integrated treatment of special natural resource problems (such as preservation and enhancement of natural resource corridors); and

         “(IV) improved economic viability for agriculture.

         “(C) APPROVAL.—

      “(i) DEFINITION OF RESOURCES.—In this subparagraph, the term ‘resources’ means, with respect to any conservation program administered by the Secretary—

         “(I) acreage enrolled under the conservation program; and

         “(II) funding made available to the Secretary to carry out the conservation program with respect to acreage described in subclause (I).

      “(ii) DETERMINATION.—If the Secretary determines that a plan submitted under subparagraph (A) meets the requirements of subparagraph (B), the Secretary, in accordance with an agreement, may use not more than 20 percent of the resources of any conservation program administered by the Secretary to implement the plan.

         “(D) CRP ACREAGE .—Acreage enrolled under an approved conservation reserve enhancement program shall be considered acreage of conservation reserve program that is committed to conservation reserve enhancement  program.

         “(c) FUNDING.—

         “(1) IN GENERAL.—The program and agreements shall he funded by the Secretary using—

         "(A) the funding authorities of the conservation programs that are implemented through the use of Farmland Stewardship Agreements for the conservation purposes listed in Sec. 1238(4)(A) and (B)(i through x);

         “(B) technical assistance in accordance with Sec. 1243(d); and  

         “(C) such other funds as are appropriated to carry out the Farmland Stewardship Program.

         “(2) COST SHARING.—It shall be a requirement of the Farmland Stewardship Program that the majority of the funds to carry out the Program must come from existing conservation programs, which may be Federal, State, regional, local, or private, that are combined into and made a part of an agreement, with the balance made up from matching funding contributions made by State, regional, or local agencies and divisions of government or from private funding sources. Funds from existing programs may be used only to carry out the purposes and intents of those programs to the degree that those programs are made a part of a Farmland Stewardship Agreement. Funding for other purposes or intents must come from the funds provided under paragraphs (1)(B) and (1)(C) of subsection (c) or from the matching funding contributions made by State, regional, or local agencies and divisions of government or from private funding sources.

        “(d) PERSONNEL COSTS.—The Secretary shall use Natural Resources Conservation Service to carry out Farmland Stewardship Program in cooperation with the state department of agriculture or other designated agency within the state. The role of the Natural Resources Conservation Service shall be limited to federal oversight the program. The Natural Resources Conservation Service shall perform its normal functions with respect to conservation programs that it administers. However, it shall play no role in the assembly of programs administered by other federal agencies into Farmland Stewardship Agreements.  

        “(e) STATE LEVEL ADMINISTRATION.—The state departments of agriculture shall have primary responsibility for operating the Farmland Stewardship Program. A state department of agriculture may choose to operate the program on its own, may collaborate with another local, state or federal agency, conservation district or tribe in operating the program, or may delegate responsibility to another state agency, such as the state department of natural resources or the state conservation district agency.  The state department of agriculture or designated state agency shall consult with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.      

      “(1)  A state department of agriculture shall submit an application to the Secretary requesting designation as the ‘designated state agency’ to operate the Farmland Stewardship Program.  If the state department of agriculture chooses to delegate responsibility to another state agency, the department of agriculture shall ask the governor to designate another agency for this purpose and that agency shall submit application to the Secretary. 

      “(2) The Secretary shall approve the request for designation as the ‘designated state agency’ if the agency demonstrates that it has the capability to implement the Farmland Stewardship Program and attests that it shall conform with the confidentiality requirements in Sec. 1238B(g).  Upon approval of the request, the Secretary shall enter into a memorandum of understanding with the designated state agency specifying the state’s responsibilities in carrying out the program and the amount of technical assistance funds that shall be provided to the state on an annual basis to operate the program, in accordance with paragraphs (1)(C), (1)(E) and (1)(F) of subsection (g)

            ‘(f) ANNUAL REPORTS.—The designated state agency shall annually submit to the Secretary and make publicly available a report that describes.—

      ‘(1) The progress achieved, the funds expended, the purposes for which funds were expended and monitoring and evaluating  results obtained by local contracting agencies, and

      ‘(2) The plans and objectives of the State for future activities under the program.

            "(g) TECHNICAL ASSISTANCE.—

      "(1) Of the funds used from other programs and of funds made available to carry out the Farmland Stewardship Program for a fiscal year, the Secretary shall reserve not more than twenty-five percent for the provision of technical assistance under the Program. Of the funds made available–

      "(A) not more than 1.5% shall be reserved for administration, coordination and oversight through the Natural Resources Conservation Service headquarters office;

      "(B) not more than 1.5% shall be reserved for the Farmland Stewardship Council to carry out its duties in cooperation with the State Technical Committees, as provided under section 1238E;

      "(C) not more than 2.0% shall be reserved for administration and coordination through the designated state agency in the state where the property is located;

      "(D) not more than 1.0% shall be reserved for administration and coordination through the Natural Resources Conservation Service state office, in the state where property is located;

      "(E) not more than 1.0% shall be reserved for administration and coordination through the state conservation district agency, unless such agency is the designated state agency for administering this program, in which case these funds shall be added to the funds in the next paragraph; and

      "(F) not less than 18% shall be reserved for local technical assistance, carried out through a designated 'contracting agency' and subcontractors chosen by and working with the contracting agency for preparing and executing agreements and monitoring, evaluating and administering agreements for their full term.

      "(2) An owner or operator who is receiving a benefit under this chapter shall be eligible to receive technical assistance in accordance with section 1243(d) to assist the owner or operator in carrying out a contract entered into under this chapter.

            "(h) ENSURING AVAILABILITY OF FUNDS.— All amounts required for preparing, executing, carrying out, monitoring, evaluating and administering an agreement for its entire term shall be made available by the Federal, State, and local agencies and private sector entities involved in funding the agreement upon execution of the agreement.

"SEC. 1238B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

            "(a) AGREEMENTS AUTHORIZED .—The Secretary shall carry out the Farmland Stewardship Program by entering into service contracts as determined by the Secretary, to be known as farmland stewardship agreements, with the owners or operators of eligible agricultural land to maintain and protect the natural and agricultural resources on the land.

            "(b) LEGAL BASIS.—An agreement shall operate in all respects as a service contract and, as such, provides the Secretary with the opportunity to hire the owner or operator of eligible agricultural land as a vendor to perform one or more specific services for an equitable fee for each service rendered. Any agency participating in the Farmland Stewardship Program that has the authority to enter into service contracts and to expend public funds under such contracts may enter into or participate in the funding of an agreement.

            "(c) BASIC PURPOSES.—An agreement with the owner or operator of eligible agricultural land shall be used—

      "(1) to negotiate a mutually agreeable set of guidelines, practices, and procedures under which conservation practices will be provided by the owner or operator to protect, maintain, and, where possible, improve, the natural resources on the land covered by the agreement in return for annual payments to the owner or operator;

      "(2) to enable an owner or operator to participate in one or more of the conservation programs offered through agencies at all levels of government and the private sector and, where possible and feasible, comply with permit requirements and regulations, through a one-stop, one-application process.

      "(3) to implement a conservation program or series of programs where there is no such program or to implement conservation management activities where there is no such activity;

      "(4) to expand or maintain conservation practices and resource management activities to a property where it is not possible at the present time to negotiate or reach agreement on a public purchase of a fee-simple or less-than-fee interest in the property for conservation purposes; and

      "(5) to negotiate and develop agreements with private owners and operators to expand or maintain their participation in conservation activities and programs; to enable them to install or maintain best management practices (BMPs) and other recommended practices to improve the compatibility of agriculture, horticulture, silviculture, aquaculture and equine activities with the environment; and improve compliance with public health, safety and environmental regulations.

            "(d) MODIFICATION OF OTHER CONSERVATION PROGRAM ELEMENTS.—If most, but not all, of the limitations, conditions, policies and requirements of a conservation program that is implemented in whole, or in part, through the Farmland Stewardship Program are met with respect to a parcel of eligible agricultural land, and the purposes to be achieved by the agreement to be entered into for such land are consistent with the purposes of the conservation program, then the Secretary may waive any remaining limitations, conditions, policies or requirements of the conservation program that would otherwise prohibit or limit the agreement.  The Secretary may also grant requests to —

      “(1) establish different or automatic enrollment criteria than otherwise established by regulation or policy;

      “(2) establish different compensation rates to the extent the parties to the agreement consider justified;

      “(3) establish different conservation practice criteria if doing so will achieve greater conservation benefits;

      “(4) provide more streamlined and integrated paperwork requirements;

      “(5) provide for the transfer of conservation program funds to states with flexible incentives accounts; and 

      “(6) provide funds for an adaptive management process to monitor the effectiveness of the Program for wildlife, the protection of natural resources, economic effectiveness and sustaining the agricultural economy.

      “(7)  For a waiver or exception to be considered, a contracting agency or the designated state agency must —

      “(A) Submit a request for a waiver to the Secretary or Administrator who has responsibility for the program for which a waiver or exception is being requested.  Requests for waivers or exceptions in programs administered by the U.S. Department of Agriculture shall be submitted to the Secretary of Agriculture, while requests for waivers or exceptions in programs administered by the U.S. Department of Interior shall be submitted to the Secretary of Interior and requests for waivers or exceptions in programs administered by the U.S. Environmental Protection Agency shall be submitted to the Administrator of that Agency, and so forth.

      “(B) The request shall–

      “(i) explain why the property qualifies for participation in the program;

      “(ii) explain why it is necessary or desirable to make an exception to or waive one or more program limitations, conditions, policies or requirements;

      “(iii) if possible, suggest alternative methods or approaches to satisfying these limitations, conditions, policies or requirements that are appropriate for the property in question;

      “(iv) request that the Secretary or Administrator grant the exception or waiver, based on the documentation submitted.

      “(C) The Secretary or Administrator may request additional documentation, or may suggest alternative methods of overcoming program limitations or obstacles on the property in question, prior to deciding whether or not to grant a request for an exception or waiver.

      “(D) Waivers and exceptions may be granted by a Secretary or Administrator to allow additional flexibility in tailoring conservation programs to the specific needs, opportunities and challenges offered by individual parcels of land, and to remove administrative and regulatory obstacles that previously may have limited the use of these programs on eligible agricultural land, or would prevent these programs from being combined together through a Farmland Stewardship Agreement.  Waivers and exceptions may be granted only if the purposes to be achieved by the program after the waiver or exception is granted remain consistent with the purposes for which the program was established.

      “(E) The Secretaries and Administrators who receive requests for waivers or exceptions under this chapter shall respond to these requests within sixty (60) days of receipt.  Decisions on whether to grant a request shall be rendered within one hundred eighty (180) days of receipt.

            "(e) PROVISIONAL CONTRACTS.—Provisional contracts shall be used to provide payments to private landowners or operators, and to the organization or agency that will oversee the agreement, while baseline data is gathered, documents are prepared and the formal agreement is being negotiated. Provisional contracts shall pay for all technical services required to establish an agreement. Provisional contracts may be used to establish a Farmland Stewardship Agreement, or any other type of conservation program, permit or agreement on private land. Provisional contracts shall be used during a two-year planning period, which may be extended for up to two additional periods of six months each by mutual agreement between the Secretary, the contracting agency and the owner or operator.

            “(f) PAYMENTS.–– Payments to owners and operators shall be made as provided in the programs that are combined as part of a Farmland Stewardship Agreement.  At the election of the owner or operator, payments may be collected and combined together by the designated state agency and issued to the owner or operator in equal annual payments over the term of the agreement.  Payments for other services rendered by the owner or operator shall be made as follows– 

      “(1) IN GENERAL.––  Programs that contain term or permanent easements may be combined into a Farmland Stewardship Agreement.  Except for portions of a property affected by easements, Farmland Stewardship Agreements shall provide no interest in property and shall be solely contracts for specific services. The fees paid shall be based on the services provided. Compensation shall include–– 

      “(A) ANNUAL BASE PAYMENT.–– All owners or operators enrolled in a Farmland Stewardship Agreement shall receive an annual base payment, at a rate to be determined by the Secretary.  The annual base payment shall be considered by the Secretary to be satisfied if the owner or operator receives annual payments from another conservation program that has been incorporated into the Farmland Stewardship Agreement.  In addition, owners and operators shall receive––

      “(B) DIRECT FEES FOR SERVICES.–These fees shall be based on the cost of providing each service. These fees may be set by adopting private sector market prices for the performance of similar services or by competitive bidding. Or, alternatively––

      “(C) ANNUAL PER-ACRE STEWARDSHIP FEES.–– These fees shall be based on the services provided, or the quantity of benefits provided, with higher fees for greater benefits that can be quantified. Such values shall be determined and set by the Secretary. Or, alternatively––  

      “(D) OTHER INCENTIVES.–– Other forms of compensation acceptable to an owner or operator also may be considered. These other forms of compensation may include federal, state or local tax waivers, credits, reductions or exclusions; priority processing of permits from state and local agencies; consolidation of permits from state and local agencies into a single operating plan; extended-duration permits from state and local agencies; enhanced eligibility and priority listing for participation in cost-share programs, loan programs, conservation programs and permanent conservation easement or public purchase programs; and priority access to technical assistance services provided by federal and, where possible, local, regional and state agencies.    

            "(g) CONFIDENTIALITY OF DATA.–– All information or data provided to, obtained by or developed by the Secretary, or any contractor to the Secretary or the designated state agency, for the purpose of providing technical or financial assistance to owners or operators in connection with the U.S. Department of Agriculture’s conservation programs, or in connection with the Farmland Stewardship Program, shall be—

      "(1) Kept confidential by all officers and employees of the Department and the designated state agency;

      "(2) Not released, disclosed, made public or in any manner communicated to any agency, state or person outside the Department and the designated state agency; and

      "(3) Not subject to any other law that would require the information or data to be released, disclosed, made public or in any way communicated to any agency, state or person outside the Department and designated state agency.

      "(4) Any information or data related to an individual farm owner or operator may be reported only in an anonymous, aggregated form as currently provided under the Department’s National Agricultural Statistic Services.

            "(h) STATE AND LOCAL CONSERVATION PRIORITIES.—To the maximum extent practicable, agreements shall address the conservation priorities established by the State and locality in which the eligible agricultural land is located.  The Secretary may adopt for this purpose a pre-existing state or regional conservation plan or strategy that maps economically and ecologically important lands, including a plan developed pursuant to planning requirements under Title VIII of the 2001 Interior Appropriations Act and Title IX of the 2001 Commerce, Justice, State Appropriations Act.

            "(i) WATERSHED ENHANCEMENT.—To the extent practicable, the Secretary shall encourage the development of Farmland Stewardship Program applications on a watershed basis.

"SEC. 1238C. PARTNERSHIP APPROACH TO PROGRAM.

            "(a) AUTHORITY OF SECRETARY EXERCISED THROUGH PARTNERSHIPS.— The Secretary may administer agreements under the Farmland Stewardship Program in partnership with other Federal, State, and local agencies whose programs are incorporated into the Program under section 1238A, and in partnership with state departments of agriculture or other designated state agencies.

            "(b) DESIGNATION AND USE OF CONTRACTING AGENCIES.—Subject to subsection (c), the Secretary may authorize a local conservation district, resource conservation and development council, extension service office, state-chartered stewardship entity, nonprofit organization, local office of the Department of Agriculture, or other participating government agency to enter into and administer agreements under the Program as a contracting agency on behalf of the Secretary.

            "(c) CONDITIONS OF DESIGNATION .—The Secretary may designate an eligible district or office as a contracting agency under subsection (b) only if the district or office—

      "(1) submits a written request for such designation to the Secretary;

      "(2) affirms that it is willing to follow all guidelines for executing and administering an agreement, as promulgated by the Secretary;

      "(3) demonstrates to the satisfaction of the Secretary that it has established working relationships with owners and operators of eligible agricultural land, and based on the history of these working relationships, demonstrates that it has the ability to work with owners and operators of eligible agricultural land in a cooperative manner;

      "(4) affirms its responsibility for preparing all documentation for the agreement, negotiating its terms with an owner or operator, monitoring compliance, making annual reports to the Secretary, and administering the agreement throughout its full term; and

      "(5) demonstrates to the satisfaction of the Secretary that it has or will have the necessary staff resources and expertise to carry out its responsibilities under paragraphs (3) and (4).

            “(d) DELEGATION OF RESPONSIBILITY.—The Secretary may delegate responsibility for reviewing and approving applications from local contracting agencies to the state department of agriculture or other designated state agency in the state in which the property is located, provided that the designated agency follows the criteria for reviewing and approving applications as established by the Secretary and consults with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.

"SEC. 1238D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE AGRICULTURAL LAND.

            "(a) APPLICATION AND APPROVAL PROCESS.—To participate in the Farmland Stewardship Program, an owner or operator of eligible agricultural land shall—

      "(1) submit to the Secretary an application indicating interest in the Program and describing the owner’s or operator’s property, its resources, and their ecological and agricultural values;

      "(2) submit to the Secretary the purpose and objectives of the proposed agreement and a list of services to be provided,  or a management plan to be implemented, or both, under the proposed agreement;

      "(3) if the application and list are accepted by the Secretary, enter into an agreement that details the purpose and objectives of the agreement and the services to be provided, or management plan to be implemented, or both, and requires compliance with the other terms of the agreement.

            "(b) APPLICATION ON BEHALF OF AN OWNER OR OPERATOR.—A designated contracting agency may submit the application required by subsection (a) on behalf of an owner or operator if the contracting agency has secured the consent of the owner or operator to enter into an agreement.

            “(c) DELEGATION OF RESPONSIBILITY.—The Secretary may delegate responsibility for reviewing and approving applications from or on behalf of an owner or operator to the state department of agriculture or other designated agency in the state in which the property is located, provided that the designated agency follows the criteria for reviewing and approving applications as established by the Secretary and consults with the agencies with management authority and responsibility for the resources affected on properties on which Farmland Stewardship Agreements are negotiated and assembled.

"SEC. 1238E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL REGARDING PROGRAM.

            "(a) APPOINTMENT .—The Secretary shall appoint a advisory committee to assist the Secretary in carrying out the Farmland Stewardship Program.

            “(b) IN GENERAL.—The Committee shall be known as the Farmland Stewardship Council and shall operate on the federal level in the same manner, with the same roles and responsibilities and the same membership requirements as provided in the policies and guidelines governing State Technical Committees in Subpart B of Part 501 of the U.S. Department of Agriculture’s directives to the Natural Resources Conservation Service regarding Conservation Program Delivery.

            "(c) DUTIES.—The Farmland Stewardship Council shall cooperate in all respects with the State Technical Committees and Resource Advisory Committees in each state.  In addition to the roles and responsibilities set forth for these committees, the Farmland Stewardship Council shall assist the Secretary in —

      "(1) drafting such regulations as are necessary to carry out the Program;

      "(2) developing the documents necessary for executing farmland stewardship agreements;

      "(3) developing procedures and guidelines to facilitate partnerships with other levels of government and nonprofit organizations and assist contracting agencies in gathering data and negotiating agreements;

      "(4) designing criteria to consider applications submitted under sections 1238C and 1238D;

      "(5) providing assistance and training to designated state agencies, project partners and contracting agencies;

      "(6) assisting designated state agencies, project partners and contracting agencies in combining together other conservation programs into agreements;

      "(7) tailoring the agreements to each individual property;

      "(8) developing agreements that are highly flexible and can be used to respond to and fit in with the conservation needs and opportunities on any property in the United States;

      "(9) developing a methodology for determining a fair market price in each state for each service rendered by a private owner or operator under a Farmland Stewardship Agreement;

      "(10) developing guidelines for administering the Farmland Stewardship Program on a national basis that respond to the conservation needs and opportunities in each state and in each rural community in which Farmland Stewardship Agreements may be implemented;

      "(11) monitoring progress under the agreements; and

      "(12) reviewing and recommending possible modifications, additions, adaptations, improvements, enhancements, or other changes to the Program to improve the way in which the program operates.

            "(d) MEMBERSHIP.—The Farmland Stewardship Council shall have the same membership requirements as the State Technical Committees, except that —

      “(1) All participating members must have offices located in the Washington, D.C. metropolitan area;

      “(2) The list of members representing “Federal Agencies and Other Groups Required by Law” shall be expanded to include all federal agencies whose programs might be included in Farmland Stewardship Program;

      “(3) State agency representation shall be provided by the organizations located in the Washington, D.C. metropolitan area representing state agencies and shall include individuals from organizations representing wetland managers, environmental councils, fish and wildlife agencies, counties, resource and conservation development councils, state conservation agencies, state departments of agriculture, state foresters, and governors; and

      “(4) Private Interest Membership shall be comprised of 21 members representing the principal agricultural commodity groups, farm organizations, national forestry associations, woodland owners, conservation districts, rural stewardship organizations, and up to a maximum of six (6) conservation and environment organizations, including organizations with an emphasis on wildlife, rangeland management and soil and water conservation.

      “(5) The Secretary shall appoint one of the Private Interest Members to serve as chair. The Private Interest Members shall appoint another member to serve as co-chair.

      “(6) The Secretary shall follow equal opportunity practices in making appointments to the Farmland Stewardship Council.  To ensure that recommendations of the Council take into account the needs of the diverse groups served by the U.S. Department of Agriculture, membership will include, to the extent practicable, individuals with demonstrated ability to represent minorities, women, and persons with disabilities.

            “(e) PERSONNEL COSTS.—The technical assistance funds designated in  Sec. 1238A(g)(1)(B) may be used to provide staff positions and support for the Farmland Stewardship Council to–

      “(1) carry out its duties as provided in subsection (c);

      “(2) ensure communication and coordination with all federal agencies, state organizations and Private Interest Members on the council, and the constituencies represented by these agencies, organizations and members;

      “(3) ensure communication and coordination with the State Technical Committees and Resource Advisory Committees in each state;

      “(4) solicit input from agricultural producers and owners and operators of private forestry operations and woodlands through the organizations represented on the council and other organizations, as necessary; and

      “(5) take into consideration the needs and interests of producers of different agricultural commodities and forest products in different regions of the nation.

      “(6) Representatives of federal agencies and state organizations shall serve without additional compensation, except for reimbursement of travel expenses and per diem costs which are incurred as a result of their Council responsibilities and service.

      “(7) Payments may be made to the organizations serving as Private Interest Members for the purposes of providing staff and support to carry out paragraphs (1) through (5).  The amounts and duration of these payments and the number of staff positions to be created within Private Interest Member organizations to carry out these duties shall be determined by the Secretary.

            “(f) REPORTS.—The Farmland Stewardship Council shall annually submit to the Secretary and make publicly available a report that describes—

      “(1)  The progress achieved, the funds expended, the purposes for which funds were expended and results obtained by the council; and

      “(2)  The plans and objectives for future activities.

            “(g) TERMINATION.—The Farmland Stewardship Council shall remain in force for as long as the Secretary administers the Farmland Stewardship Program, except that the council will terminate in 2011 unless renewed by Congress in the next Farm Bill.

"SEC. 1238F.  STATE BLOCK GRANT PROGRAM.

            “(a)  IN GENERAL.—The Secretary of Agriculture may provide agricultural stewardship block grants on an annual basis to state departments of agriculture as a means of providing assistance and support, cost-share payments, incentive payments, technical assistance or education to agricultural producers and owners and operators of agriculture, silviculture, aquaculture, horticulture or equine operations for environmental enhancements, best management practices, or air and water quality improvements addressing resource concerns.  Under the block grant program, states shall have maximum flexibility to—

      “(1)  Address threats to soil, air, water and related natural resources including grazing lands, wetlands and wildlife habitats;

      “(2)  Comply with state and federal environmental laws;

      “(3)  Make beneficial, cost-effective changes to cropping systems; grazing management; nutrient, pest, or irrigation management; land uses; or other measures needed to conserve and improve soil, water, and related natural resources; and

      “(4)  Implement other practices or obtain other services to benefit the public through Farmland Stewardship Agreements.

            “(b) PROGRAM APPLICATION.—A state department of agriculture, in collaboration with other state and local agencies, conservation districts, tribes, partners or organizations, may submit an application to the Secretary requesting approval for an agricultural stewardship block grant program.  The Secretary shall approve the grant request if the program proposed by the state maintains or improves the state’s natural resources, and the state has the capability to implement the agricultural stewardship program.  Upon approval of a stewardship program submitted by a state department of agriculture, the Secretary shall—

      “(1)  Allocate funds to the state for administration of the program, and

      “(2)  Enter into a memorandum of understanding with the state department of agriculture specifying the state’s responsibilities in carrying out the program and the amount of the block grant that shall be provided to the state on an annual basis.

            “(c)  PARTICIPATION.—A state department of agriculture may choose to operate the block grant program, may collaborate with another local, state or federal agency, conservation district or tribe in operating the program, or may delegate responsibility for the program to another local, state or federal agency, such as the state office of the U.S. Department of Agriculture, Natural Resources Conservation Service, or the state conservation district agency.

            “(d)  COORDINATION.—A state department of agriculture may establish an agricultural stewardship planning committee, or other advisory body, or expand the authority of an existing body, to design, develop and implement the state’s agricultural stewardship block grant program.  Such planning committee or advisory committee shall cooperate fully with the Farmland Stewardship Council established in Sec. 1238E and the State Technical Committee and Resource Advisory Committee in the state.

            “(e)  DELIVERY.—The state department of agriculture, or other designated agency, shall administer the stewardship block grants through existing delivery systems, infrastructure or processes, including contracts, cooperative agreements, and grants with local, state and federal agencies that address resource concerns and were prioritized and developed in cooperation w