(a) ''Eligible partnership'' defined

In this section, the term ''eligible partnership'' means a partnership consisting of a land-grant college or university and other entities specified in subsection (c)(1) of this section that satisfies the eligibility criteria specified in subsection (c) of this section.

(b) Establishment of partnerships by grant

The Secretary of Agriculture may make competitive grants to an eligible partnership to coordinate and manage research and extension activities to enhance the quality of high-value agricultural products.

(c) Criteria for an eligible partnership

(1) Primary institutions in partnership

The primary institution involved in an eligible partnership shall be a land-grant college or university, acting in partnership with other colleges or universities, nonprofit research and development entities, and Federal laboratories.

(2) Prioritization of research activities

An eligible partnership shall prioritize research and extension activities in order to -

(A)

enhance the competitiveness of United States agricultural products;

(B)

increase exports of such products; and

(C)

substitute such products for imported products.

(3) Coordination

An eligible partnership shall coordinate among the entities comprising the partnership the activities supported by the eligible partnership, including the provision of mechanisms for sharing resources between institutions and laboratories and the coordination of public and private sector partners to maximize cost-effectiveness.

(d) Types of research and extension activities

Research or extension supported by an eligible partnership may address the full spectrum of production, processing, packaging, transportation, and marketing issues related to a high-value agricultural product. Such issues include -

(1)

environmentally responsible -

(A)

pest management alternatives and biotechnology;

(B)

sustainable farming methods; and

(C)

soil conservation and enhanced resource management;

(2)

genetic research to develop improved agricultural-based products;

(3)

refinement of field production practices and technology to improve quality, yield, and production efficiencies;

(4)

processing and package technology to improve product quality, stability, or flavor intensity;

(5)

marketing research regarding consumer perceptions and preferences;

(6)

economic research, including industry characteristics, growth, and competitive analysis; and

(7)

research to facilitate diversified, value-added enterprises in rural areas.

(e) Elements of grant making process

(1) Period of grant

The Secretary may award a grant under this section for a period not to exceed 5 years.

(2) Preferences

In making grants under this section, the Secretary shall provide a preference to proposals that -

(A)

demonstrate linkages with -

(i)

agencies of the Department;

(ii)

other related Federal research laboratories and agencies;

(iii)

colleges and universities; and

(iv)

private industry; and

(B)

guarantee matching funds in excess of the amounts required by paragraph (3).

(3) Matching funds

An eligible partnership shall contribute an amount of non-Federal funds for the operation of the partnership that is at least equal to the amount of grant funds received by the partnership under this section.

(f) Limitation on use of grant funds

Funds provided under this section may not be used for the planning, repair, rehabilitation, acquisition, or construction of a building or facility.

(g) Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 1999 through 2002