CONTRACT REQUIREMENTS.

SEC. 2006. CONTRACT REQUIREMENTS. (a) Early Termination by Owner or Operator.—Section 1235(e) of the Food Security Act of 1985 (16 U.S.C. 3835(e)) is amended— (1) in paragraph (1)(A)— (A) by striking “The Secretary” and inserting “During fiscal year 2015, the Secretary”; and (B) by striking “before January 1, 1995,”; (2) in paragraph (2), by striking subparagraph (C) and inserting the following: “(C) Land devoted to hardwood trees. “(D) Wildlife habitat, duck nesting habitat, pollinator habitat, upland bird habitat buffer, wildlife food plots, State acres for wildlife enhancement, shallow water areas for wildlife, and rare and declining habitat. “(E) Farmable wetland and restored wetland. “(F) Land that contains diversions, erosion control structures, flood control structures, contour grass strips, living snow fences, salinity reducing vegetation, cross wind trap strips, and sediment retention structures. “(G) Land located within a federally designated wellhead protection area. “(H) Land that is covered by an easement under the conservation reserve program. “(I) Land located within an average width, according to the applicable Natural Resources Conservation Service field office technical guide, of a perennial stream or permanent water body. “(J) Land enrolled under the conservation reserve enhancement program.” ; and (3) in paragraph (3), by striking “60 days after the date on which the owner or operator submits the notice required under paragraph (1)(C)” and inserting “upon approval by the Secretary”. (b) Transition Option for Certain Farmers or Ranchers.—Section 1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is amended— (1) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking “Duties” and all that follows through “a beginning farmer or rancher or” and inserting “Transition to covered farmer or rancher.—In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a retired farmer or rancher to a beginning farmer or rancher, a veteran farmer or rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))), or a”; (B) in subparagraph (A)(i), by inserting “, including preparing to plant an agricultural crop” after “improvements”; (C) in subparagraph (D), by striking “the farmer or rancher” and inserting “the covered farmer or rancher”; and (D) in subparagraph (E), by striking “section 1001A(b)(3)(B)” and inserting “section 1001”; and (2) in paragraph (2), by striking “requirement of section 1231(h)(4)(B)” and inserting “option pursuant to section 1234(d)(2)(A)(ii)”. (c) Final Year Contract.—Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended by adding at the end the following new subsections: “(g) Final Year of Contract. The Secretary shall not consider an owner or operator to be in violation of a term or condition of the conservation reserve contract if— “(1) during the year prior to expiration of the contract, the land is enrolled in the conservation stewardship program; and “(2) the activity required under the conservation stewardship program pursuant to such enrollment is consistent with this subchapter. “(h) Land Enrolled in Agricultural Conservation Easement Program. The Secretary may terminate or modify a contract entered into under this subchapter if eligible land that is subject to such contract is transferred into the agricultural conservation easement program under subtitle H.” .