Assistance to producers

(a) Payments to certain producers (1) In general Section 1271C(c) of the Food Security Act of 1985 (16 U.S.C. 3871c(c)) is amended— (A) by redesignating paragraph (3) as paragraph (5); and (B) by inserting after paragraph (2) the following: (3) Advance payments to producers (A) In general On an election by a producer, the Secretary may provide an advance payment for costs related to purchasing materials or contracting associated with implementing an eligible activity. (B) Return of funds If the funds provided under subparagraph (A) are not expended within 90 days, the Secretary may— (i) determine that the producer is in violation of the program contract; and (ii) require the funds to be returned within a reasonable period, as determined by the Secretary. (4) Advance payments to eligible partners (A) In general On an election by an eligible partner, the Secretary may provide an advance payment to the eligible partner related to project implementation, as provided in the partnership agreement, including an alternative funding arrangement under subsection (d)(1). (B) Timeframe If the funds provided under subparagraph (A) are not expended within the period specified in the partnership agreement, but not more than 120 days, the Secretary shall not provide any additional advance payment under that paragraph until the eligible partner demonstrates the ability to expend the funds within the applicable period. (C) Return of funds The Secretary may determine that an eligible partner is in violation of the partnership agreement and require the funds to be returned within a reasonable period, as determined by the Secretary, if the eligible partner— (i) fails to expend the funds within the applicable period; or (ii) otherwise fails to manage any funds in accordance with the terms of the partnership agreement.. (2) Conforming amendment Section 1241(i)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 3841(i)(2)(B)) is amended by striking 1271C(c)(3) and inserting 1271C(c)(5). (b) Funding through alternative funding arrangements Section 1271C(d) of the Food Security Act of 1985 (16 U.S.C. 3871c(d)) is amended— (1) in the subsection heading, by striking or Grant agreements; (2) in paragraph (1), by striking or grant; (3) in paragraph (2)(B), by striking or grant agreements; and (4) in paragraph (3)(A)(iii)— (A) in subclause (I), by striking and at the end; (B) in subclause (II), by striking or at the end and inserting and; and (C) by adding at the end the following: (III) agricultural equipment and processing that can help scale conservation benefits; and.