I 
109TH CONGRESS 
1ST SESSION H. R. 3562 
To amend the Specialty Crops Competitiveness Act of 2004 to increase 
the authorization of appropriations for grants to support the competitive-
ness 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 HOUSE OF REPRESENTATIVES 
JULY 28, 2005 
Ms. HOOLEY introduced the following bill; which was referred to the Com-
mittee on Agriculture, and in addition to the Committees on Ways and 
Means and Education and the Workforce, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
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 prod-
uct 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Specialty Crop and 
Value-Added Agriculture Promotion Act’’. 
SEC. 2. DEFINITION OF SPECIALTY CROP. 
Section 3(1) of the Specialty Crops Competitiveness 
Act of 2004 (Public 108–465; 7 U.S.C. 1621 note) is 
amended— 
(1) by inserting ‘‘fish and shellfish whether 
farm-raised or harvested in the wild,’’ after ‘‘dried 
fruits,’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘The term includes specialty crops that are 
organically produced (as defined in section 2103 of 
the Organic Foods Production Act of 1990 (7 
U.S.C. 6502).’’. 
SEC. 3. PERMANENT AUTHORIZATION OF APPROPRIATIONS 
FOR STATE SPECIALTY CROP BLOCK GRANTS. 
Subsection (i) of section 101 of the Specialty Crops 
Competitiveness Act of 2004 (Public 108–465; 7 U.S.C. 
1621 note) is amended to read as follows: 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—For fis-
cal year 2006 and every fiscal year thereafter, there is au-
thorized to be appropriated to the Secretary of Agriculture 
$500,000,000 to make grants under this section.’’. 
SEC. 4. BLOCK GRANTS TO STATES FOR VALUE-ADDED AG-
RICULTURAL PRODUCT MARKET DEVELOP-
MENT. 
(a) IN GENERAL.—Subsection (b) of section 231 of 
the Agricultural Risk Protection Act of 2000 (Public Law 
106–224; 7 U.S.C. 1621 note) is amended to read as fol-
lows: 
‘‘(b) GRANT PROGRAM.— 
‘‘(1) BLOCK GRANTS TO STATES.— 
‘‘(A) AMOUNT
OF
GRANT
TO
STATE.— 
From the amount made available under para-
graph (6) for a fiscal year, the Secretary shall 
provide to each State, subject to subparagraph 
(B), a grant in an amount equal to the product 
obtained by multiplying the amount made avail-
able for that fiscal year by the result obtained 
by dividing— 
‘‘(i) the total value of the agricultural 
commodities and products made in the 
State during the preceding fiscal year; by 
‘‘(ii) the total value of the agricultural 
commodities and products made in all of 
the States during the preceding fiscal year.
‘‘(B) LIMITATION.—The total grant pro-
vided to a State for a fiscal year under sub-
paragraph (A) shall not exceed $3,000,000. 
‘‘(2) USE
OF
GRANT
FUNDS
BY
STATES.—A 
State shall use the grant funds to award competitive 
grants— 
‘‘(A) to an eligible independent producer 
(as determined by the State) of a value-added 
agricultural product to assist the producer— 
‘‘(i) in developing a business plan for 
viable marketing opportunities for the 
value-added agricultural product; or 
‘‘(ii) in developing strategies that are 
intended to create marketing opportunities 
for the producer; and 
‘‘(B) to an eligible agricultural producer 
group, farmer or rancher cooperative, or major-
ity-controlled producer-based business venture 
(as determined by the State) to assist the enti-
ty— 
‘‘(i) in developing a business plan for 
viable marketing opportunities in emerging 
markets for a value-added agricultural 
product; or
‘‘(ii) in developing strategies that are 
intended to create marketing opportunities 
in emerging markets for the value-added 
agricultural product. 
‘‘(3) AMOUNT OF COMPETITIVE GRANT.—
‘‘(A) IN GENERAL.—The total amount pro-
vided under paragraph (2) to a grant recipient 
shall not exceed $500,000. 
‘‘(B) MAJORITY-CONTROLLED PRODUCER-
BASED BUSINESS VENTURES.—The amount of 
grants provided by a State to majority-con-
trolled producer-based business ventures under 
paragraph (2)(B) for a fiscal year may not ex-
ceed 10 percent of the amount of funds that are 
used by the State to make grants for the fiscal 
year under paragraph (2). 
‘‘(4) GRANTEE STRATEGIES.—A recipient of a 
grant under paragraph (2) shall use the grant 
funds—
‘‘(A) to develop a business plan or perform 
a feasibility study to establish a viable mar-
keting opportunity for a value-added agricul-
tural product; or 
‘‘(B) to provide capital to establish alli-
ances or business ventures that allow the pro-
ducer of the value-added agricultural product to 
better compete in domestic or international 
markets. 
‘‘(5) REPORTS.—Within 90 days after the end 
of a fiscal year for which funds are provided to a 
State under paragraph (1), the State shall submit to 
the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate a report describ-
ing how the funds were used. 
‘‘(6) FUNDING.—On October 1 of each fiscal 
year, of the funds of the Commodity Credit Corpora-
tion, the Secretary shall make available to carry out 
this subsection $100,000,000, to remain available 
until expended. 
‘‘(7) STATE DEFINED.—In this subsection, the 
term ‘State’ means each of the 50 States, the Dis-
trict of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the 
Northern Mariana Islands.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2005.