Section 3839aa · Establishment and administration

(a) Establishment During each of the 2002 through 2031 fiscal years, the Secretary shall provide payments to producers that enter into contracts with the Secretary under the program.

(d) Payments (1) Availability of payments Payments are provided to a producer to implement one or more practices under the program. (2) Limitation on payment amounts A payment to a producer for performing a practice may not exceed, as determined by the Secretary— (A) 75 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training; (B) 100 percent of income foregone by the producer; or (C) in the case of a practice consisting of elements covered under subparagraphs (A) and (B)— (i) 75 percent of the costs incurred for those elements covered under subparagraph (A); and (ii) 100 percent of income foregone for those elements covered under subparagraph (B). (3) Special rule involving payments for foregone income In determining the amount and rate of payments under paragraph (2)(B), the Secretary may accord great significance to a practice that, as determined by the Secretary, promotes— (A) soil health; (B) water quality and quantity improvement; (C) nutrient management; (D) pest management; (E) air quality improvement; (F) wildlife habitat development, including pollinator habitat; or (G) invasive species management. (4) Increased payments for certain producers (A) In general Notwithstanding paragraph (2), in the case of a producer that is a limited resource, socially disadvantaged farmer or rancher, a veteran farmer or rancher (as defined in section 2279(e) 1 of title 7), or a beginning farmer or rancher, the Secretary shall increase the amount that would otherwise be provided to a producer under this subsection— (i) to not more than 90 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training; and (ii) to not less than 25 percent above the otherwise applicable rate. (B) Advance payments (i) In general On an election by a producer described in subparagraph (A), the Secretary shall provide at least 50 percent of the amount determined under subparagraph (A) in advance for all costs related to purchasing materials or contracting. (ii) Return of funds If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds shall be returned within a reasonable timeframe, as determined by the Secretary. (iii) Notification and documentation The Secretary shall— (I) notify each producer described in subparagraph (A), at the time of enrollment in the program, of the option to receive advance payments under clause (i); and (II) document the election of each producer described in subparagraph (A) to receive advance payments under clause (i) with respect to each practice that has costs described in that clause. (5) Financial assistance from other sources Except as provided in paragraph (6), any payments received by a producer from a State or private organization or person for the implementation of one or more practices on eligible land of the producer shall be in addition to the payments provided to the producer under this subsection. (6) Other payments A producer shall not be eligible for payments for practices on eligible land under the program if the producer receives payments or other benefits for the same practice on the same land under another program under this subchapter. (7) Increased payments for high-priority practices (A) State determination Each State, in consultation with the State technical committee established under section 3861(a) of this title for the State, may designate not more than 10 practices to be eligible for increased payments under subparagraph (B), on the condition that the practice, as determined by the Secretary— (i) addresses specific causes of impairment relating to excessive nutrients in groundwater or surface water; (ii) addresses the conservation of water to advance drought mitigation and declining aquifers; (iii) meets other environmental priorities and other priority resource concerns identified in habitat or other area restoration plans; or (iv) is geographically targeted to address a natural resource concern in a specific watershed. (B) Increased payments Notwithstanding paragraph (2), in the case of a practice designated under subparagraph (A), the Secretary may increase the amount that would otherwise be provided for a practice under this subsection to not more than 90 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training.

(f) Allocation of funding (1) Livestock For each of fiscal years 2019 through 2023, at least 50 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production, including grazing management practices. (2) Wildlife habitat (A) Fiscal years 2014 through 2018 For each of fiscal years 2014 through 2018, at least 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat under subsection (g). (B) Fiscal years 2019 through 2031 For each of fiscal years 2019 through 2031, at least 10 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat under subsection (g).

(g) Wildlife habitat incentive program (1) In general The Secretary shall provide payments under the environmental quality incentives program for conservation practices that support the restoration, development, protection, and improvement of wildlife habitat on eligible land, including— (A) upland wildlife habitat; (B) wetland wildlife habitat; (C) habitat for threatened and endangered species; (D) fish habitat; (E) habitat on pivot corners and other irregular areas of a field; and (F) other types of wildlife habitat, as determined by the Secretary. (2) State technical committee In determining the practices eligible for payment under paragraph (1) and targeted for funding under subsection (f), the Secretary shall consult with the relevant State technical committee not less often than once each year. (3) Maximum term In the case of a contract under the program entered into solely for the establishment of 1 or more annual management practices for the benefit of wildlife as described in paragraph (1), notwithstanding any maximum contract term established by the Secretary, the contract shall have a term that does not exceed 10 years. (4) Included practices For the purpose of providing seasonal wetland habitat for waterfowl and migratory birds, a practice that is eligible for payment under paragraph (1) and targeted for funding under subsection (f) may include— (A) a practice to carry out postharvest flooding; or (B) a practice to maintain the hydrology of temporary and seasonal wetlands of not more than 2 acres to maintain waterfowl and migratory bird habitat on working cropland.

(h) Water conservation or irrigation efficiency practice (1) Availability of payments The Secretary may provide water conservation and system efficiency payments under this subsection to an entity described in paragraph (2) or a producer for— (A) water conservation scheduling, water distribution efficiency, soil moisture monitoring, or an appropriate combination thereof; (B) irrigation-related structural or other measures that conserve surface water or groundwater, including managed aquifer recovery practices; or (C) a transition to water-conserving crops, water-conserving crop rotations, or deficit irrigation. (2) Eligibility of certain entities (A) In general Notwithstanding section 1308(f)(6) of title 7 , the Secretary may enter into a contract under this subsection with a State, irrigation district, groundwater management district, acequia, land-grant mercedes, or similar entity under a streamlined contracting process to implement water conservation or irrigation practices under a watershed-wide project that will effectively conserve water, provide fish and wildlife habitat, or provide for drought-related environmental mitigation, as determined by the Secretary. (B) Implementation Water conservation or irrigation practices that are the subject of a contract entered into under subparagraph (A) shall be implemented on— (i) eligible land of a producer; or (ii) land that is— (I) under the control of an irrigation district, groundwater management district, acequia, land-grant mercedes, or similar entity; and (II) adjacent to eligible land described in clause (i), as determined by the Secretary. (C) Waiver authority The Secretary may waive the applicability of the limitations in section 1308–3a(b) of title 7 or section 3839aa–7 of this title for a payment made under a contract entered into under this paragraph if the Secretary determines that the waiver is necessary to fulfill the objectives of the project. (D) Contract limitations If the Secretary grants a waiver under subparagraph (C), the Secretary may impose a separate payment limitation for the contract with respect to which the waiver applies. (3) Priority In providing payments under this subsection for a water conservation or irrigation practice, the Secretary shall give priority to applications in which— (A) consistent with the law of the State in which the land on which the practices will be implemented is located, there is a reduction in water use in the operation on that land; or (B) except in the case of an application under paragraph (2), the producer agrees not to use any associated water savings to bring new land, other than incidental land needed for efficient operations, under irrigated production, unless the producer is participating in a watershed-wide project that will effectively conserve water, as determined by the Secretary. (4) Effect Nothing in this subsection authorizes the Secretary to modify the process for determining the annual allocation of funding to States under the program.

(i) Payments for conservation practices related to organic production (1) Payments authorized The Secretary shall provide payments under this subsection for conservation practices, on some or all of the operations of a producer, related— (A) to organic production; and (B) to the transition to organic production. (2) Eligibility requirements As a condition for receiving payments under this subsection, a producer shall agree— (A) to develop and carry out an organic system plan; or (B) to develop and implement conservation practices for certified organic production that are consistent with an organic system plan and the purposes of this subpart. (3) Payment limitations (A) In general Payments under this subsection to a person or legal entity, directly or indirectly, may not exceed, in the aggregate— (i) through fiscal year 2018— (I) $20,000 per year; or (II) $80,000 during any 6-year period; and (ii) during the period of fiscal years 2019 through 2023, $140,000. (B) Technical assistance In applying the limitations under subparagraph (A), the Secretary shall not take into account payments received for technical assistance. (4) Exclusion of certain organic certification costs Payments may not be made under this subsection to cover the costs associated with organic certification that are eligible for cost-share payments under section 6523 of title 7 . (5) Termination of contracts The Secretary may cancel or otherwise nullify a contract to provide payments under this subsection if the Secretary determines that the producer— (A) is not pursuing organic certification; or (B) is not in compliance with the Organic Foods Production Act of 1990 ( 7 U.S.C. 6501 et seq).