II 

109TH CONGRESS 

1ST SESSION S. 1556 

To amend the Specialty Crops Competitiveness Act of 2004 to increase 

the authorization of appropriations for grants to support the competitiveness of specialty crops, to amend the Agricultural Risk Protection Act 

of 2000 to improve the program of value-added agricultural product 

market development grants by routing funds through State departments 

of agriculture, to amend the Federal Crop Insurance Act to require 

a nationwide expansion of the adjusted gross revenue insurance program, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2005 

Mr. WYDEN introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Specialty Crops Competitiveness Act of 2004 

to increase the authorization of appropriations for grants 

to support the competitiveness of specialty crops, to 

amend the Agricultural Risk Protection Act of 2000 

to improve the program of value-added agricultural product market development grants by routing funds through 

State departments of agriculture, to amend the Federal 

Crop Insurance Act to require a nationwide expansion 

of the adjusted gross revenue insurance program, and 

for other purposes. 
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Specialty Crop and 

5 Value-Added Agriculture Promotion Act’’. 

6 SEC. 2. DEFINITION OF SPECIALTY CROP. 

7 Section 3(1) of the Specialty Crops Competitiveness 

8 Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 note) 

9 is amended— 

10 (1) by inserting ‘‘fish and shellfish whether 

11 farm-raised or harvested in the wild,’’ after ‘‘dried 

12 fruits,’’; and 

13 (2) by adding at the end the following: ‘‘The 

14 term includes specialty crops that are organically 

15 produced (as defined in section 2103 of the Organic 

16 Foods Production Act of 1990 (7 U.S.C. 6502).’’. 

17 SEC. 3. PERMANENT AUTHORIZATION OF APPROPRIATIONS 

18 FOR STATE SPECIALTY CROP BLOCK GRANTS. 

19 Section 101 of the Specialty Crops Competitiveness 

20 Act of 2004 (Public Law 108–465; 7 U.S.C. 1621 note) 

21 is amended by striking subsection (i) and inserting the fol22 lowing: 

23 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—For fis24 cal year 2006 and every fiscal year thereafter, there is au-
3 

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1 thorized to be appropriated to the Secretary of Agriculture 

2 $500,000,000 to make grants under this section.’’. 

3 SEC. 4. BLOCK GRANTS TO STATES FOR VALUE-ADDED AG4 RICULTURAL PRODUCT MARKET DEVELOP5 MENT. 

6 (a) IN GENERAL.—Section 231 of the Agricultural 

7 Risk Protection Act of 2000 (Public Law 106–224; 7 

8 U.S.C. 1621 note) is amended by striking subsection (b) 

9 and inserting the following: 

10 ‘‘(b) GRANT PROGRAM.— 

11 ‘‘(1) STATE DEFINED.—In this subsection, the 

12 term ‘State’ means each of the 50 States, the Dis13 trict of Columbia, the Commonwealth of Puerto 

14 Rico, the United States Virgin Islands, Guam, 

15 American Samoa, and the Commonwealth of the 

16 Northern Mariana Islands. 

17 ‘‘(2) BLOCK GRANTS TO STATES.— 

18 ‘‘(A) AMOUNT OF GRANT TO STATE.— 

19 From the amount made available under para20 graph (7) for a fiscal year, the Secretary shall 

21 provide to each State, subject to subparagraph 

22 (B), a grant in an amount equal to the product 

23 obtained by multiplying the amount made avail24 able for that fiscal year by the result obtained 

25 by dividing— 
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1 ‘‘(i) the total value of the agricultural 

2 commodities and products made in the 

3 State during the preceding fiscal year; by 

4 ‘‘(ii) the total value of the agricultural 

5 commodities and products made in all of 

6 the States during the preceding fiscal year. 

7 ‘‘(B) LIMITATION.—The total grant pro8 vided to a State for a fiscal year under sub9 paragraph (A) shall not exceed $3,000,000. 

10 ‘‘(3) USE OF GRANT FUNDS BY STATES.—A 

11 State shall use the grant funds to award competitive 

12 grants— 

13 ‘‘(A) to an eligible independent producer 

14 (as determined by the State) of a value-added 

15 agricultural product to assist the producer— 

16 ‘‘(i) in developing a business plan for 

17 viable marketing opportunities for the 

18 value-added agricultural product; or 

19 ‘‘(ii) in developing strategies that are 

20 intended to create marketing opportunities 

21 for the producer; and 

22 ‘‘(B) to an eligible agricultural producer 

23 group, farmer or rancher cooperative, or major24 ity-controlled producer-based business venture 
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1 (as determined by the State) to assist the enti2 ty— 

3 ‘‘(i) in developing a business plan for 

4 viable marketing opportunities in emerging 

5 markets for a value-added agricultural 

6 product; or 

7 ‘‘(ii) in developing strategies that are 

8 intended to create marketing opportunities 

9 in emerging markets for the value-added 

10 agricultural product. 

11 ‘‘(4) AMOUNT OF COMPETITIVE GRANT.— 

12 ‘‘(A) IN GENERAL.—The total amount pro13 vided under paragraph (3) to a grant recipient 

14 shall not exceed $500,000. 

15 ‘‘(B) MAJORITY-CONTROLLED PRODUCER16 BASED BUSINESS VENTURES.—The amount of 

17 grants provided by a State to majority-con18 trolled producer-based business ventures under 

19 paragraph (3)(B) for a fiscal year may not ex20 ceed 10 percent of the amount of funds that are 

21 used by the State to make grants for the fiscal 

22 year under paragraph (3). 

23 ‘‘(5) GRANTEE STRATEGIES.—A recipient of a 

24 grant under paragraph (3) shall use the grant 

25 funds— 
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1 ‘‘(A) to develop a business plan or perform 

2 a feasibility study to establish a viable mar3 keting opportunity for a value-added agricul4 tural product; or 

5 ‘‘(B) to provide capital to establish alli6 ances or business ventures that allow the pro7 ducer of the value-added agricultural product to 

8 better compete in domestic or international 

9 markets. 

10 ‘‘(6) REPORTS.—Not later than 90 days after 

11 the end of a fiscal year for which funds are provided 

12 to a State under paragraph (2), the State shall sub13 mit to the Committee on Agriculture of the House 

14 of Representatives and the Committee on Agri15 culture, Nutrition, and Forestry of the Senate a re16 port describing how the funds were used. 

17 ‘‘(7) FUNDING.—On October 1 of each fiscal 

18 year, of the funds of the Commodity Credit Corpora19 tion, the Secretary shall make available to carry out 

20 this subsection $100,000,000, to remain available 

21 until expended.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 subsection (a) shall take effect on October 1, 2005. 

24 SEC. 5. REIMBURSEMENT OF CERTIFICATION COSTS. 

25 (a) INCENTIVE PROGRAM.— 
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1 (1) IN GENERAL.—The Secretary of Agriculture 

2 shall establish an incentive program to encourage 

3 the independent third-party certification of agricul4 tural producers and processors for product qualities, 

5 production practices, or other product or process at6 tributes that increase marketability or value of an 

7 agricultural commodity. 

8 (2) INCLUSIONS.—The Secretary shall include 

9 independent third-party certification systems, includ10 ing programs such as Good Agricultural Practices, 

11 Good Handling Practices, and Good Manufacturing 

12 Practices programs, that the Secretary finds will 

13 provide 1 or more measurable social, environmental, 

14 or marketing advantages. 

15 (b) STANDARDS.—The Secretary shall set standards 

16 regarding the types of certifications, and the types of cer17 tification-related expenses, that will qualify for reimburse18 ment under the program. 

19 (c) LIMITATION ON AMOUNT OF REIMBURSEMENT.— 

20 An agricultural producer or processor may not receive re21 imbursement for more than 50 percent of the qualified ex22 penses incurred by the producer or processor related to 

23 accepted certifications. 
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1 SEC. 6. NATIONWIDE EXPANSION OF RISK MANAGEMENT 

2 AGENCY ADJUSTED GROSS REVENUE INSUR3 ANCE PROGRAM. 

4 (a) EXPANSION.—Section 523(e) of the Federal Crop 

5 Insurance Act (7 U.S.C. 1523(e)) is amended by adding 

6 at the end the following: 

7 ‘‘(3) PERMANENT NATIONWIDE OPERATION.— 

8 ‘‘(A) IN GENERAL.—Effective beginning 

9 with the 2006 reinsurance year, the Corpora10 tion shall carry out the adjusted gross revenue 

11 insurance pilot program as a permanent pro12 gram under this title and may expand the pro13 gram to cover any county in which crops are 

14 produced. 

15 ‘‘(B) TEMPORARY PREMIUM SUBSIDIES.— 

16 To facilitate the expansion of the program na17 tionwide, the Corporation may grant temporary 

18 premium subsidies for the purchase of a policy 

19 under the program to producers whose farm op20 erations are located in a county that has a high 

21 level of specialty crop production and has not 

22 had a high-level of participation in the purchase 

23 of crop insurance coverage.’’. 

24 (b) COMPTROLLER GENERAL STUDY.—The Comp25 troller General shall conduct a study of the Federal crop 

26 insurance program— 
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1 (1) to determine how well the program under 

2 section 523(e)(3) of the Federal Crop Insurance Act 

3 (as added by subsection (a)) serves specialty crop 

4 producers; and 

5 (2) to recommend such changes as the Comp6 troller General considers appropriate to improve the 

7 program for specialty crop producers. 

8 SEC. 7. EXPANSION OF FRUIT AND VEGETABLE PROGRAM 

9 IN SCHOOL LUNCH PROGRAMS. 

10 The Richard B. Russell National School Lunch Act 

11 is amended— 

12 (1) in section 18 (42 U.S.C. 1769), by striking 

13 subsection (g); and 

14 (2) by inserting after section 18 the following: 

15 ‘‘SEC. 19. FRUIT AND VEGETABLE PROGRAM. 

16 ‘‘(a) IN GENERAL.—The Secretary shall make avail17 able in not more than 100 schools in each State, and in 

18 elementary and secondary schools on 1 Indian reservation, 

19 free fresh and dried fruits and vegetables and frozen ber20 ries to be served to school children throughout the school 

21 day in 1 or more areas designated by the school. 

22 ‘‘(b) PRIORITY IN ALLOCATION.—In selecting States 

23 to participate in the program, the Secretary shall give pri24 ority to States that produce large quantities of specialty 

25 crops. 
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1 ‘‘(c) PUBLICITY.—A school participating in the pro2 gram authorized by this section shall publicize in the 

3 school the availability of free fruits and vegetables under 

4 the program. 

5 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

6 is authorized to be appropriated to carry out this section 

7 $20,000,000 for each of fiscal years 2006 and 2007.’’. 

8 SEC. 8. INCREASE IN LIMIT ON DIRECT OPERATING LOANS; 

9 INDEXATION TO INFLATION. 

10 Section 313 of the Consolidated Farm and Rural De11 velopment Act (7 U.S.C. 1943) is amended— 

12 (1) in subsection (a)(1), by striking ‘‘$200,000’’ 

13 and inserting ‘‘$500,000 (increased, beginning with 

14 fiscal year 2007, by the inflation percentage applica15 ble to the fiscal year in which the loan is made)’’; 

16 and 

17 (2) in subsection (b), by striking paragraph (2) 

18 and inserting the following: 

19 ‘‘(2) the average of such index (as so defined) 

20 for the 12-month period ending on— 

21 ‘‘(A) in the case of a loan other than a 

22 loan guaranteed by the Secretary, August 31, 

23 2005; or 

24 ‘‘(B) in the case of a loan guaranteed by 

25 the Secretary, August 31, 1996.’’. 
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1 SEC. 9. TRADE OF SPECIALTY CROPS. 

2 (a) ASSISTANT USTR FOR SPECIALTY CROPS.—Sec3 tion 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) 

4 is amended by adding at the end the following: 

5 ‘‘(6) ASSISTANT USTR FOR SPECIALTY

6 CROPS.— 

7 ‘‘(A) ESTABLISHMENT.—There is estab8 lished in the Office the position of Assistant 

9 United States Trade Representative for Spe10 cialty Crops. 

11 ‘‘(B) APPOINTMENT.—The Assistant 

12 United States Trade Representative for Spe13 cialty Crops shall be appointed by the United 

14 States Trade Representative. 

15 ‘‘(C) PRIMARY FUNCTION.—The primary 

16 function of the Assistant United States Trade 

17 Representative for Specialty Crops shall be— 

18 ‘‘(i) to promote the trade interests of 

19 specialty crop businesses; 

20 ‘‘(ii) to remove foreign trade barriers 

21 that impede specialty crop businesses; and 

22 ‘‘(iii) to enforce existing trade agree23 ments beneficial to specialty crop busi24 nesses. 

25 ‘‘(D) PAY.—The Assistant United States 

26 Trade Representative for Specialty Crops shall 
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1 be paid at the level of a member of the Senior 

2 Executive Service with equivalent time and 

3 service.’’. 

4 (b) STUDY OF URUGUAY ROUND TABLE AGREEMENT

5 BENEFITS.— 

6 (1) STUDY.—The Comptroller General of the 

7 United States shall conduct a study on the benefits 

8 of the agreements approved by Congress under sec9 tion 101(a)(1) of the Uruguay Round Agreements 

10 Act (19 U.S.C. 3511(a)(1)) to specialty crop busi11 nesses. 

12 (2) REPORT.—Not later than 1 year after the 

13 date of the enactment of this Act, the Comptroller 

14 General shall submit to Congress a report describing 

15 the results of the study conducted under paragraph 

16 (1). 

17 (c) FOREIGN MARKET ACCESS STRATEGY.—Not 

18 later than 1 year after the date of the enactment of this 

19 Act, the Secretary of Agriculture shall develop and imple20 ment a foreign market access strategy to increase exports 

21 of specialty crops to foreign markets. 
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1 SEC. 10. INCREASED AUTHORIZATION FOR TECHNICAL AS2 SISTANCE FOR SPECIALTY CROPS. 

3 Section 3205(d) of the Farm Security and Rural In4 vestment Act of 2002 (7 U.S.C. 5680(d)) is amended by 

5 striking ‘‘$2,000,000’’ and inserting ‘‘$10,000,000’’. 

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