(a) Treasury account

There is established in the Treasury of the United States an account to be known as the Initiative for Future Agriculture and Food Systems (referred to in this section as the ''Account'') to provide funds for activities authorized under this section.

(b) Funding

(1) In general

On October 1, 1998, and each October 1 thereafter through October 1, 2002, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer $120,000,000 to the Account.

(2) Entitlement

The Secretary of Agriculture -

(A)

shall be entitled to receive the funds transferred to the Account under paragraph (1);

(B)

shall accept the funds; and

(C)

shall use the funds to carry out this section.

(c) Purposes

(1) Critical emerging issues

The Secretary shall use the funds in the Account -

(A)

subject to paragraph (2), for research, extension, and education grants (referred to in this section as ''grants'') to address critical emerging agricultural issues related to -

(i)

future food production;

(ii)

environmental quality and natural resource management; or

(iii)

farm income; and

(B)

for activities carried out under the Alternative Agricultural Research and Commercialization Act of 1990 (7 U.S.C. 5901 et seq.).

(2) Priority mission areas

In making grants under this section, the Secretary, in consultation with the Advisory Board, shall address priority mission areas related to -

(A)

agricultural genome;

(B)

food safety, food technology, and human nutrition;

(C)

new and alternative uses and production of agricultural commodities and products;

(D)

agricultural biotechnology;

(E)

natural resource management, including precision agriculture; and

(F)

farm efficiency and profitability, including the viability and competitiveness of small- and medium-sized dairy, livestock, crop, and other commodity operations.

(d) Eligible grantees

The Secretary may make a grant under this section to -

(1)

a Federal research agency;

(2)

a national laboratory;

(3)

a college or university or a research foundation maintained by a college or university;

(4)

a private research organization with an established and demonstrated capacity to perform research or technology transfer; or

(5)

a State agricultural experiment station.

(e) Special considerations

(1) Smaller institutions

The Secretary may award grants under this section in a manner that ensures that the faculty of small and mid-sized institutions that have not previously been successful in obtaining competitive grants under subsection (b) of section 450i of this title receive a portion of the grants under this section.

(2) Priorities

In making grants under this section, the Secretary shall provide a higher priority to -

(A)

a project that is multistate, multi-institutional, or multidisciplinary; or

(B)

a project that integrates agricultural research, extension, and education.

(f) Administration

(1) In general

In making grants under this section, the Secretary shall -

(A)

seek and accept proposals for grants;

(B)

determine the relevance and merit of proposals through a system of peer review in accordance with section 7613 of this title;

(C)

award grants on the basis of merit, quality, and relevance to advancing the purposes and priority mission areas established under subsection (c) of this section; and

(D)

solicit and consider input from persons who conduct or use agricultural research, extension, or education in accordance with section 7612(b) of this title.

(2) Competitive basis

A grant under this section shall be awarded on a competitive basis.

(3) Term

A grant under this section shall have a term that does not exceed 5 years.

(4) Matching funds

As a condition of making a grant under this section, the Secretary shall require the funding of the grant be matched with equal matching funds from a non-Federal source if the grant is -

(A)

for applied research that is commodity-specific; and

(B)

not of national scope.

(5) Delegation

The Secretary shall administer this section through the Cooperative State Research, Education, and Extension Service of the Department. The Secretary may establish 1 or more institutes to carry out all or part of the activities authorized under this section.

(6) Availability of funds

Funds for grants under this section shall be available to the Secretary for obligation for a 2-year period.

(7) Administrative costs

The Secretary may use not more than 4 percent of the funds made available for grants under this section for administrative costs incurred by the Secretary in carrying out this section.

(8) Buildings and facilities

Funds made available for grants under this section shall not be used for the construction of a new building or facility or the acquisition, expansion, remodeling, or alteration of an existing building or facility (including site grading and improvement and architect fees)