S1224-118

1. Short title This Act may be cited as the Conservation Reserve Enhancement Program Improvement Act of 2023.

2. Conservation reserve enhancement program Section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) is amended— in subsection (a)(4), in the matter preceding subparagraph (A), by inserting (other than an agreement described in subsection (e)) after this subchapter; in subsection (b)(2)(A)(vi), by inserting or other appropriate practices, such as dryland agricultural uses and grazing, after conservation practices; in subsection (c), by adding at the end the following: An owner or operator may elect to determine the amounts of annual payments under this section allocated to each year of the agreement under subsection (b)(1). In the case of an agreement described in subsection (e) that includes a permanent retirement of water rights, the payment rates for annual payments shall be equal to the irrigated acre payment rates determined by the Secretary. In the case of an agreement described in subsection (e) that permits dryland agricultural uses pursuant to paragraph (2) of that subsection, the payment rates for annual payments shall be equal to the difference between— the irrigated acre payment rates determined by the Secretary; and the dryland acre payment rates determined by the Secretary. In the case of an agreement covered by clause (i) entered into before the date of enactment of this paragraph under which the payment rate is lower than the payment rate that would be calculated for the agreement under that clause, the Secretary shall modify the agreement by calculating the payment rate in accordance with that clause. in subsection (e)— in the matter preceding paragraph (1), by striking may— and inserting shall—; in paragraph (1), by inserting (including agricultural land on which a continuous crop or crop rotation is maintained) after agricultural land; in paragraph (2), by striking with the adoption of best management practices on and inserting in accordance with a conservation plan adopted with respect to; and in paragraph (3), by inserting subject to subsection (c)(6), before calculate. Section 1234(g) of the Food Security Act of 1985 (16 U.S.C. 3834(g)) is amended— in paragraph (1), by striking paragraph (2) and inserting paragraphs (2) and (3); and by adding at the end the following: Paragraph (1) shall not apply to rental payments received under agreements entered into under section 1231A. (5)Variable allocationAn owner or operator may elect to determine the amounts of annual payments under this section allocated to each year of the agreement under subsection (b)(1).(6)Drought and water conservation agreements(A)Retirement of water rightsIn the case of an agreement described in subsection (e) that includes a permanent retirement of water rights, the payment rates for annual payments shall be equal to the irrigated acre payment rates determined by the Secretary.(B)Dryland agricultural uses(i)In generalIn the case of an agreement described in subsection (e) that permits dryland agricultural uses pursuant to paragraph (2) of that subsection, the payment rates for annual payments shall be equal to the difference between—(I)the irrigated acre payment rates determined by the Secretary; and(II)the dryland acre payment rates determined by the Secretary. (ii)Retroactive applicationIn the case of an agreement covered by clause (i) entered into before the date of enactment of this paragraph under which the payment rate is lower than the payment rate that would be calculated for the agreement under that clause, the Secretary shall modify the agreement by calculating the payment rate in accordance with that clause.; and (3)Conservation reserve enhancement programParagraph (1) shall not apply to rental payments received under agreements entered into under section 1231A..