**MISCELLANEOUS**

**Subtitle A-Crop Insurance**

Sec.10101.Expected loss ratio.

Sec.10102.Increase in crop insurance participation while controlling
program costs.

Sec.10103.Renegotiation of standard reinsurance agreement.

Sec.10104.Access to data mining information.

Sec.10105.Research and development.

Sec.10106.Expanded use of funding to strengthen program compliance.

Sec.10107.Supplemental deductible coverage.

**Subtitle B-Livestock**

Sec.10201.Pseudorabies eradication program.

**Subtitle C-Specialty Crops**

Sec.10301.Farmers' market promotion program.

Sec.10302.Purchase of fruits and vegetables for domestic nutrition
benefits programs.

**Subtitle D-Administration**

Sec.10401.Outreach and assistance for socially disadvantaged farmers and
ranchers.

**Subtitle E-General Provisions**

Sec.10501.Cotton classification services.

Sec.10502.Organic farming initiatives.

**Subtitle F-Dairy**

Sec.10601.Dairy promotion and research program.

Sec.10602.Dairy research and promotion assessments.

**MISCELLANEOUS**

**Subtitle A-Crop Insurance**

**SEC. 10101. EXPECTED LOSS RATIO**.

\(a\) [Projected Loss Ratio]{.smallcaps}.---Section 506(o)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1506(o)(2)) is amended---

CONGRESSDOC

\(1\) in the paragraph heading, by striking "[1998]{.smallcaps}" and
inserting "[2007]{.smallcaps}";

> \(2\) by striking "1998" and inserting "2007"; and
>
> \(3\) by striking "1.075" and inserting "1.00".

\(b\) [Premiums Required]{.smallcaps}.---Section 508(d)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking
"1.1" and all that follows through "October 1, 1998" and inserting "1.00
on and after October 1, 2007".

\(c\) [Effective Date]{.smallcaps}.-This section shall take effect on
September 30, 2007.

\(d\) ANNUAL REPORTING REQUIREMENT.- The Risk Management Agency will
report annually, by March 1^st^, in the Federal Register-

> \(1\) the projected loss ratio upon which premiums are based for the
> coming reinsurance year; and
>
> \(2\) the projected loss ratio of the Corporation for the coming
> reinsurance year that excludes the portion of the premium paid by the
> Corporation.

**SEC. 10102. INCREASE IN CROP INSURANCE PARTICIPATION WHILE CONTROLLING
PROGRAM COSTS.**

\(a\) [Administrative Fee for Catastrophic Risk
Protection]{.smallcaps}.---Section 508(b)(5) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(5)) is amended by striking subparagraph
(A) and inserting the following:

> "(A) [Basic fee]{.smallcaps}.---
>
> "(i) [In general]{.smallcaps}.---Except as provided in clause (ii),
> each producer shall pay an administrative fee for catastrophic risk
> protection in an amount which is, as determined by the Corporation,
> the greater of-
>
> "(I) 25 percent of the premium amount for catastrophic risk protection
> established under paragraphs (2)(A) and (4) of subsection (d) per crop
> per county; or
>
> "(II) \$100 per crop per county.
>
> "(ii) [Maximum amount]{.smallcaps}.---The total amount of
> administrative fees for catastrophic risk protection payable by a
> producer under clause (i) shall not exceed \$5,000 for all crops in
> all counties.".

\(b\) [Eligibility for Department Programs]{.smallcaps}.---

> \(1\) IN GENERAL,-Section 508(b)(7)(A) of the Federal Crop Insurance
> Act (7 U.S.C. 1508(b)(7)(A)) is amended to read as follows:
>
> "(A) In General.-
>
> "(i) [requirement to purchase crop insurance]{.smallcaps}.-Effective
> for the spring-planted 2008 and subsequent crops (and fall-planted
> 2008 crops at the option of the Secretary), to be eligible for any
> benefit listed in clause (ii), a person shall obtain additional
> coverage under subsection (c) for each crop of economic significance
> that-
>
> "(I) covers at least 50 percent of loss in yield, on an individual or
> area yield basis, and that indemnifies at 100 percent of the expected
> market price; or
>
> "(II) provides a level of coverage that is comparable to the coverage
> described in subclause (I), as determined by the Secretary.
>
> "(ii) [covered benefits]{.smallcaps}.-The benefits covered by the
> provisions of clause (i) are-
>
> "(I) any type of price and income support payment or loan under-
>
> "(aa) title I of the Farm Security and Rural Investment Act of 2002 (7
> U.S.C. 7901 et seq.);
>
> "(bb) the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et
> seq.); or
>
> "(cc) any similar Act, as determined by the Secretary;
>
> "(II) any payment under the conservation reserve program; or
>
> "(III) any benefit described under section 371 of the Consolidated
> Farm and Rural Development Act (7 U.S.C. 2008f).".

\(2\) CONFORMING AMENDMENT.-Section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f) is amended by striking "at least
catastrophic" to the end of the sentence and inserting "insurance
coverage pursuant to section 508(b)(7) of the Federal Crop Insurance Act
(7 U.S.C.1508(b)(7)).".

\(c\) [Payment of Portion of Premium by
Corporation]{.smallcaps}.---Section 508(e)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)) is amended---

> \(1\) in subparagraph (A), by striking "subsection (d)(2)(A)" and
> inserting "paragraphs (2)(A) and (4) of subsection (d)";
>
> \(2\) in subparagraph (B)(i), by striking "67 percent" and inserting
> "62 percent";

\(3\) in subparagraph (C)(i), by striking "64 percent" and inserting "59
percent";

> \(4\) in subparagraph (D)(i), by striking "59 percent" and inserting
> "54 percent";
>
> \(5\) in subparagraph (E)(i), by striking "55 percent" and inserting
> "53 percent";
>
> \(6\) in subparagraph (F)(i), by striking "48 percent" and inserting
> "46 percent"; and
>
> \(7\) in subparagraph (G)(i), by striking "38 percent" and inserting
> "36 percent".

\(d\) [Cat Rate Adjustments]{.smallcaps}.-Section 508(d) of the Federal
Crop Insurance Act (7 U.S.C. 1508(d)) is amended to add at the end the
following:

"(4) [Rate Adjustment]{.smallcaps}.---The Corporation shall review the
premium rates for catastrophic risk protection coverage and, in any
county where the loss ratio for such coverage has been equal to or less
than .90 for at least three of the previous five crop years, adjust the
premium rate to create an expected loss ratio that is equal to the
actual loss ratio described in section 10101(d)(1) of *farm bill 2007*.

\(e\) [Share of Risk]{.smallcaps}.---

> \(1\) [In General]{.smallcaps}.-Section 508(k)(3) of the Federal Crop
> Insurance Act (7 U.S.C. 1508(k)(3)) is amended---
>
> \(A\) by striking "require the" and inserting "require---
>
> "(A) the";
>
> \(B\) by striking the period at the end and inserting "; and"; and
>
> \(C\) by adding at the end the following:
>
> "(B)(i) the cumulative underwriting gain or loss, and the associated
> premium and losses with such amount, calculated under any reinsurance
> agreement (except livestock) ceded to the Corporation by each approved
> insurance provider to be not less than 22 percent; and
>
> "(ii) the Corporation to pay a ceding commission to reinsured
> companies of 2 percent of the premium used to define the loss ratio
> for the approved insurance provider's book of business that is
> described in clause (i)."; and

\(2\) [Conforming Amendments]{.smallcaps}.-Section 516 of the Federal
Crop Insurance Act (7 U.S.C. 1516) is amended-

> \(A\) in subsection (a)(2), by adding at the end the following:
>
> "(E) Costs associated with the ceding commissions described in section
> 508(k)(3)(B)(ii)."; and

\(4\) [Effective Date]{.smallcaps}.-This section shall take effect on
the first June 30^th^ after date of enactment of this Act.

\(f\) [Reimbursement Rate]{.smallcaps}.---Section 508(k)(4)(A) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is amended by
striking clause (ii) and inserting the following:

> "(ii)(I) for each of the 1999 through 2007 reinsurance years, 24.5
> percent of the premium used to define loss ratio; and
>
> "(II) for each of the 2008 and subsequent reinsurance years, 22.5
> percent of the premium used to define loss ratio.".

**SEC. 10103. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT**.

\(a\) [In General]{.smallcaps}.-Section 508(k) of the Federal Crop
Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the
following:

"(8) [Renegotiation of standard reinsurance
agreement]{.smallcaps}.---The Corporation may renegotiate the financial
terms and conditions of each Standard Reinsurance Agreement not more
frequently than once every 3 years.".

\(b\) [Conforming Amendments]{.smallcaps}.-Sections 536 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 1506 note; Public Law 105-185) and section 148 of the
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1506 note; Public Law
106-224) are repealed.

**SEC. 10104. ACCESS TO DATA MINING INFORMATION.**

Section 515(j)(2) of the Federal Crop Insurance Act (7 U.S.C.
1515(j)(2)) is amended---

> \(1\) by striking "The Secretary" and inserting the following:
>
> "(A) [In general]{.smallcaps}.---The Secretary"; and

\(2\) by adding at the end the following:

> "(B) [Access to data mining information]{.smallcaps}.---
>
> "(i) [In general]{.smallcaps}.-The Secretary shall establish a
> fee-for-access program under which approved insurance providers pay to
> the Secretary a user fee in exchange for access to the data mining
> system established under subparagraph (A) for the purpose of assisting
> in fraud and abuse detection.
>
> "(ii) [Access limitation]{.smallcaps}.-In establishing the program
> under clause (i), the Secretary shall ensure that an approved
> insurance provider has access only to information relating to the
> producers for which the approved insurance provider provides insurance
> coverage.
>
> "(iii) [Use of fees]{.smallcaps}.-
>
> "(I) [Account]{.smallcaps}.-There is established a Data Mining Account
> in the Treasury of the United States.
>
> "(II) [Deposits.]{.smallcaps}-Fees collected under this subparagraph,
> and associated late payment penalties and interest collected pursuant
> to section 3717 of title 31, United States Code, shall be deposited
> into the Account established in subclause (I).
>
> "(III) [Availability of Funds]{.smallcaps}.-In addition to any other
> available funds, amounts in the Account are authorized to be expended
> without further appropriation and to remain available until expended
> by the Secretary.
>
> "(IV) [Purpose of Funds]{.smallcaps}.-The funds deposited in the Data
> Mining Account shall be used to maintain and improve the data mining
> system or similar data mining activities by the Corporation.".

**SEC. 10105. RESEARCH AND DEVELOPMENT**.

\(a\) [Research and Development Contracting
Authority]{.smallcaps}.-Section 522(c)(1) of the Federal Crop Insurance
Act (7 U.S.C. 1522(c)(1)) is amended---

\(1\) in subparagraph (B), by striking "and" at the end;

> \(2\) in subparagraph (C), by striking the period at the end and
> inserting "; and"; and
>
> \(3\) by adding at the end the following:
>
> "(D) maintain and improve existing policies, such as reviewing,
> evaluating, and improving coverage to take into account---
>
> "(i) alternative crop uses;
>
> "(ii) new crop varieties;
>
> "(iii) genetically-modified crops;
>
> "(iv) new technologies; and
>
> "(v) changing agricultural practices; and
>
> "(E) provide improved coverage for value-added commodities and food
> grade quality crop production.".

\(b\) Prohibited Research and Development by the Corporation.- Section
522(e)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)(4)(B))
is amended to read as follows:

> "(B) [Existing Policies]{.smallcaps}.-The Corporation may conduct such
> research and development as necessary to maintain and improve any
> policy that has been offered for sale to producers for at least 2 crop
> years and was developed-
>
> "(i) by the Corporation;
>
> "(ii) under subsection (c); or
>
> "(iii) under section 508(h) that has been transferred to the
> Corporation for maintenance.".

**SEC. 10106. EXPANDED USE OF FUNDING TO STRENGTHEN PROGRAM
COMPLIANCE.**

Section 522(e)(3) of the Federal Crop Insurance Act (7 U.S.C.
1522(e)(3)) is amended by striking everything "the Corporation may use"
through the end of the paragraph and inserting the following: "the
Corporation may use---

> "(A) not more than \$10,000,000 for each fiscal year to improve
> program integrity, such as
>
> "(i) increasing the number of compliance personnel;
>
> "(ii) increasing compliance related training;
>
> "(iii) improving analysis tools and technology related to compliance;
>
> "(iv) identifying, utilizing, and expanding innovative compliance
> strategies and technology; and
>
> "(v) developing and maintaining the information management system
> developed pursuant to section 10706(b) of the Farm Security and Rural
> Investment Act of 2002 (7 U.S.C. 8002(b)); and
>
> "(B) any excess amounts to carry out other activities authorized under
> this section.".

**SEC. 10107.SUPPLEMENTAL DEDUCTIBLE COVERAGE**.

\(a\) [Gap Coverage]{.smallcaps}.-

> \(1\) I[n General]{.smallcaps}.-Section 508(c)(4) of the Federal Crop
> Insurance Act (7 U.S.C. 1508(c)(4) is amended-

\(A\) by striking "The level of coverage" and inserting the following:

"(A) [Basic Coverage]{.smallcaps}.-The level of coverage"; and

\(B\) by adding at the end the following:

"(B) [Supplemental Coverage]{.smallcaps}.---

> "(i) [In General]{.smallcaps}.-Notwithstanding paragraph (3) and
> subparagraph (A), the Corporation may offer supplemental coverage,
> based on an area yield and loss basis, to cover that portion of a crop
> loss not covered under the producer's individual yield and loss basis
> plan of insurance, including any revenue plan of insurance with
> coverage based in part on individual yield and loss.
>
> "(ii) [Limitation]{.smallcaps}.-The sum of the indemnity paid to the
> producer under the individual yield and loss plan of insurance and the
> supplemental coverage may not exceed 100 percent of the loss incurred
> by the producer for the crop."
>
> "(iii) [Administrative and Operating Expense
> Reimbursement]{.smallcaps}.- Notwithstanding subsection (k)(4), the
> reimbursement rate for approved insurance providers for the
> supplemental coverage shall equal 6 percent of the premium used to
> define the loss ratio.
>
> "(iv) [Direct Coverage]{.smallcaps}.-If the Corporation determines
> that it is in the best interests of producers, the Corporation may
> offer supplemental coverage as a Corporation endorsement to existing
> plans and policies of crop insurance authorized under this Act.
>
> "(v) PAYMENT OF PORTION OF PREMIUM BY CORPORATION.-Notwithstanding
> subsection (e), the amount of the premium to be paid by the
> Corporation for supplemental coverage offered pursuant to this
> subparagraph shall be determined by the Corporation, but may not
> exceed the sum of-
>
> "(I) 50 percent of the amount of premium established under subsection
> (d)(2)(C)(i); and
>
> "(II) the amount determined under subsection (d)(2)(C)(ii) for the
> coverage level selected to cover operating and administrative
> expenses.".
>
> \(2\) [Conforming Amendments]{.smallcaps}.-Section 508(d)(2) of the
> Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended-
>
> \(A\) by striking "additional coverage" the first time it occurs and
> inserting "additional and supplemental coverages"; and
>
> \(B\) by adding at the end the following:
>
> "(C) [Supplemental Coverage]{.smallcaps}.-In the case of supplemental
> coverage offered under subsection (c)(4)(B), the amount of the premium
> shall-
>
> "(i) be sufficient to cover anticipated losses and a reasonable
> reserve; and
>
> "(ii) include an amount for operating and administrative expenses, as
> determined by the Corporation on an industry-wide basis as a
> percentage of the amount of the premium used to define loss ratio .".

**Subtitle B-Livestock**

**SEC. 10201. PSEUDORABIES ERADICATION PROGRAM**.

Section 2506(d) of the Food, Agriculture, Conservation, and Trade Act of
1990 (21 U.S.C. 114i(d)) is amended by striking "2007" and inserting
"2012".

**Subtitle C-Specialty Crops**

**SEC. 10301. FARMERS' MARKET PROMOTION PROGRAM**.

Section 6(e) of the Farmer-to-Consumer Direct Marketing Act of 1976 (7
U.S.C. 3005(e)) is amended by striking "2007" and inserting "2012".

**SEC. 10302. PURCHASE OF FRUITS AND VEGETABLES FOR DOMESTIC NUTRITION
BENEFITS PROGRAMS.**

\(a\) [transfer to the food and nutrition service.--]{.smallcaps}
Amounts made available to carry out Section 32 of the Act of August 24,
1935 (7 U.S.C. 612c) in excess of the amounts specified in paragraphs
(1) and (2) shall be transferred to the Food and Nutrition Service for
necessary expenses to carry out the National School Lunch Act (42 U.S.C.
1751 et seq.).

(1)\$1,169,000,000 in fiscal year 2008, \$1,173,000,000 in fiscal year
2009, \$1,199,000,000 in fiscal year 2010, \$1,215,000,000 in fiscal
year 2011, \$1,231,000,000 in fiscal year 2012, \$1,248,000,000 in
fiscal year 2013, \$1,266,000,000 in fiscal year 2014, \$1,284,000,000
in fiscal year 2015, \$1,303,000,000 in fiscal year 2016,
\$1,322,000,000 in fiscal year 2017; plus

\(2\) transfers to the Department of Commerce as authorized by the Fish
and Wildlife Act of August 8, 1956.

\(b\) [purchase of fruits and vegetables]{.smallcaps}.-The Secretary
shall expend, from amounts made available to carry out section 32 of the
Act of August 24, 1935 (7 U.S.C. 612c), \$491,000,000 for fiscal year
2008, \$516,000,000 for fiscal year 2009, \$541,000,000 for fiscal year
2010, \$566,000,000 for fiscal year 2011, and \$591,000,000 for fiscal
year 2012 and each subsequent fiscal year, to purchase fruits and
vegetables for the purpose of providing nutritious foods for use in
domestic nutrition assistance programs.

\(c\) [form of purchases]{.smallcaps}.-

\(1\) [in general]{.smallcaps}.-Fruits and vegetables may be purchased
in the form of fresh, frozen, dried, or canned fruits and vegetables.

\(2\) [survey.]{.smallcaps}-At intervals determined by the Secretary,
the Secretary may survey entities that receive commodities under this
paragraph to determine the preferences of the entities for the types of
fruits and vegetables that are most in demand.

\(3\) [value added products]{.smallcaps}.-The Secretary may consider
offering value-added fruit and vegetable products, taking into account-

> \(A\) whether demand exists for the value-added product; and
>
> \(B\) the interests of recipients.

**Subtitle D-Administration**

**SEC. 10401. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS.**

Section 2501(a)(4)(A) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279(a)(4)(A)) is amended by striking "2007" and
inserting "2012".

**Subtitle E-General Provisions**

**SEC. 10501. COTTON CLASSIFICATION SERVICES.**

The first sentence of section 3a of the Act of March 3, 1927 (commonly
known as the "Cotton Statistics and Estimates Act"; 7 U.S.C. 473a), is
amended by striking "2007" and inserting "2012".

**SEC. 10502. ORGANIC FARMING INITIATIVES**.

\(a\) Section 6523 of the Organic Foods Production Act of 1990 (7 U.S.C.
6501 et seq.) is amended to read as follows:

"**SEC. 6523. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM**.

"(a) [in general]{.smallcaps}.-Of funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent practicable,
\$5,000,000 for each of fiscal years 2008 through 2012 to provide
cost-share assistance to help producers and handlers of agricultural
products in obtaining certification under the national organic program
established under this Act.

> "(b) [federal share.-]{.smallcaps}
>
> "(1) [in general]{.smallcaps}.-Subject to paragraph (2), the Secretary
> shall provide as cost share under this section not more than 75
> percent of the costs incurred by a producer or handler in obtaining
> certification under the national organic program established under
> this Act.
>
> "(2) [maximum amount.-]{.smallcaps}The maximum amount of a payment
> made to a producer or handler under this section shall be \$750.

"(c) [administration.]{.smallcaps}-The Secretary, to the extent
practicable, shall attempt to enroll every State as a cooperator in the
administration of this cost share program for producers and handlers
producing and handling within each cooperator's State."

\(b\) [organic production and marketing data]{.smallcaps}.-

Section 7407 of the Food Security and Rural Investment Act of 2002 (7
U.S.C. 5925c) is amended to read as follows:

"(a) [organic data collection]{.smallcaps}.-To assist organic farmers in
making informed production and marketing decisions, the Secretary of
Agriculture shall collect and publish segregated data and survey
information about the price, production, and marketing of major
organically produced commodities, as determined by the Secretary.

> "(b) [funding]{.smallcaps}.\--The Secretary of Agriculture shall use,
> to the maximum extent practicable, \$1,000,000 of the funds of the
> Commodity Credit Corporation to carry out this section, to remain
> available until expended.".

**SUBTITLE F- DAIRY**

**SEC. 10601.-DAIRY PROMOTION AND RESEARCH PROGRAM.**

Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(e)(2)) is amended by striking "2007" and inserting "2012".

**SEC. 10602.-DAIRY RESEARCH AND PROMOTION ASSESSMENTS**

> \(a\) [dairy promotion program]{.smallcaps}.-Section 111(l) of the
> Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502(l)) is
> amended to read as follows:
>
> "(l) the term 'United States', when used in a geographical sense,
> means---
>
> "(1) all of the States;
>
> "(2) the District of Columbia; and
>
> "(3) the Commonwealth of Puerto Rico.".

\(b\) [dairy research program]{.smallcaps}.\--Section 130(12) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531(12) is amended
to read as follows:

> "(l2) the term 'United States', when used in a geographical sense,
> means---
>
> "(1) all of the States;
>
> "(2) the District of Columbia; and
>
> "(3) the Commonwealth of Puerto Rico.".