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•HR 2419 EH1S 
(b) PROGRAM.—Section 6 of the Farmer-to-Con-
sumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘Farmers’ Market Pro-
motion Program’’ and inserting ‘‘Farmer Mar-
keting Assistance Program’’; and 
(B) by striking ‘‘promote farmers’ mar-
kets’’ and inserting ‘‘direct producer to con-
sumer marketing’’; 
(2) in subsection (b)(1)— 
(A) in subparagraph (A), by striking ‘‘, do-
mestic farmers’ markets, roadside stands, com-
munity-supported agriculture programs, and 
other’’; and 
(B) in subparagraph (B), by striking 
‘‘farmers’ markets, roadside stands, commu-
nity-supported agriculture programs, and other 
direct 
producer-to-consumer 
infrastructure’’ 
and inserting ‘‘direct producer-to-consumer 
marketing and infrastructure opportunities’’; 
(3) in subsection (c)— 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (7) as paragraphs (2) through (8), re-
spectively;
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•HR 2419 EH1S 
(B) by inserting before paragraph (2) the 
following new paragraph: 
‘‘(1) two or more farmers or farm vendors who 
sell products through a common channel of distribu-
tion;’’; and 
(C) in paragraph (2) (as so redesignated) 
by striking ‘‘an agricultural cooperative’’ and 
inserting ‘‘an agricultural cooperative or pro-
ducer network or association’’; 
(4) by striking subsection (e) and inserting the 
following new subsections: 
‘‘(e) ELIGIBLE ACTIVITIES.—A recipient of a grant 
under this section may use the funds for the following ac-
tivities: 
‘‘(1) Farmers markets. 
‘‘(2) Roadside stands. 
‘‘(3) Community supported agriculture oper-
ations, through which a farmer agrees to deliver a 
certain quantity of agricultural products to con-
sumers at a set price. 
‘‘(4) The purchase of equipment or other activi-
ties supporting the use of electronic benefit transfer 
systems at farmers markets. 
‘‘(5) Agritourism activities facilitating the di-
rect sale of agricultural products, including oper-
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•HR 2419 EH1S 
ations where the consumer picks their own agricul-
tural products. 
‘‘(6) Other activities as determined appropriate 
by the Secretary. 
‘‘(f) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary of Agri-
culture shall use to carry out this section— 
‘‘(A) $5,000,000 in each of fiscal year 
2008, 2009, and 2010; and 
‘‘(B) $10,000,000 in each of fiscal years 
2011 and 2012. 
‘‘(2) USE OF FUNDS.—Not less than 10 percent 
of the funds used to carry out this section in a fiscal 
year under paragraph (1) shall be used to support 
the use of electronic benefits transfers at farmers’ 
markets.’’. 
SEC. 10404. NATIONAL CLEAN PLANT NETWORK. 
(a) ESTABLISHMENT.—There is established in the 
Department of Agriculture a program to be known as the 
‘‘National Clean Plant Network’’. 
(b) NETWORK.—The Secretary of Agriculture shall 
use the network— 
(1) to develop a sustainable national funding 
source for clean planting stock programs for horti-
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•HR 2419 EH1S 
cultural crops determined by the Secretary to be of 
priority for the United States; and 
(2) to enter into cooperative agreements to enti-
ties that have the expertise, facilities, and climate 
necessary to efficiently produce, maintain, and dis-
tribute healthy planting stock for specialty crops. 
(c) FUNDING.— 
(1) COMMODITY CREDIT CORPORATION.—Of the 
funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this sec-
tion $20,000,000 for fiscal years 2008 through 
2012. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary for each of fiscal years 2008 
through 2012 to carry out this section. 
SEC. 10405. HEALTHY FOOD URBAN ENTERPRISE DEVELOP-
MENT PROGRAM. 
(a) PURPOSE.—The purpose of this section is to sup-
port farm and ranch income by significantly enhancing a 
producer’s share of the final retail product price through 
improved access to competitive processing and distribution 
systems which deliver affordable, locally and regionally 
produced foods to consumers, and improve food access in 
underserved communities.
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•HR 2419 EH1S 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ includes— 
(A) a small or midsized processor, dis-
tributor, wholesaler, or retail food outlet; 
(B) a group of producers operating as a le-
gally recognized marketing alliance; 
(C) a producer-owned cooperative; 
(D) a nonprofit organization; 
(E) an economic development or commu-
nity development corporation; 
(F) a unit of State or local government; 
and 
(G) an academic institution. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(4) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘‘socially disadvantaged farm-
er or rancher’’ has the meaning given the term in 
section 355(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2003(e)).
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•HR 2419 EH1S 
(5) UNDERSERVED
COMMUNITY.—The term 
‘‘underserved community’’ includes any community 
that may have, as determined by the Secretary— 
(A) limited access to affordable, healthy 
foods, including fresh fruits and vegetables, in 
grocery retail stores or farmer-to-consumer di-
rect markets; 
(B) high incidences of diet-related diseases, 
including obesity; 
(C) high rates of hunger or food insecurity; 
or 
(D) severe or persistent poverty in urban 
or rural communities, including Indian tribal 
communities. 
(c) GRANT PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary, acting 
through the head of the market services branch of 
the Agricultural Marketing Service, shall establish a 
program under which the Secretary shall provide 
grants, on a competitive basis, to eligible entities to 
conduct enterprise feasibility studies (including stud-
ies of consumer preference), in accordance with the 
purpose of this section. 
(2) APPLICATION.—To be eligible to receive a 
grant under this subsection, an eligible entity shall
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•HR 2419 EH1S 
submit to the Secretary an application at such time, 
in such manner, and containing such information as 
the Secretary may require. 
(3) COORDINATION WITH OTHER AGENCIES.— 
In carrying out the program under this subsection, 
the Secretary shall coordinate, with respect to the 
development of the program and reviews of grant 
applications, with— 
(A) the Cooperative State Research, Edu-
cation, and Extension Service; and 
(B) the Rural Business Cooperative Serv-
ice. 
(4) PRIORITY.—In providing grants under this 
subsection, the Secretary shall give priority to appli-
cations with proposed projects that— 
(A) include features effectively targeting 
participation by socially disadvantaged farmers 
or ranchers or beginning farmers or ranchers; 
(B) increase employment opportunities in 
underserved communities; 
(C) support small and mid-sized farm via-
bility and increase farming opportunities; or 
(D) establish and maintain satisfactory en-
vironmental and labor standards, including 
worker protection.
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•HR 2419 EH1S 
(5) MAXIMUM
AMOUNT.—The amount of a 
grant provided under this subsection shall not exceed 
$250,000. 
(6) TERM.—A grant provided under this sub-
section shall have a term of not more than 3 years. 
(7) REPORTS.— 
(A) IN
GENERAL.—Each eligible entity 
that receives a grant under this subsection shall 
submit to the Secretary an annual report de-
scribing the results and progress of each feasi-
bility study to ensure sufficient progress is 
achieved with respect to the goals of the 
projects carried out by the eligible entity. 
(B) PUBLIC AVAILABILITY.—The Secretary 
shall ensure that any information contained in 
a report under subparagraph (A) relating to 
consumer preference or producer availability is 
made available to the public. 
(8) FUNDING.—There are authorized to be ap-
propriated such sums as are necessary for each of 
fiscal years 2008 through 2012 to carry out this sec-
tion. 
(d) GRANT PROGRAM REQUIREMENTS.— 
(1) TECHNICAL ASSISTANCE AND OUTREACH.— 
(A) IN GENERAL.—The Secretary shall—
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•HR 2419 EH1S 
(i) provide to the public information 
relating to the grant programs under this 
section; and 
(ii) provide technical assistance to— 
(I) socially disadvantaged farm-
ers or ranchers; 
(II) Indian tribal organizations; 
(III) low-income populations; and 
(IV) other underserved commu-
nities and producers. 
(B) SERVICE PROVIDERS.—In carrying out 
subparagraph (A), the Secretary may enter into 
contracts, on a competitive basis, with entities 
that, as determined by the Secretary— 
(i) demonstrate experience in serving 
socially disadvantaged farmers or ranchers 
and other underserved communities and 
producers; 
(ii) include, in the governance struc-
ture of the entity, 2 or more members rep-
resenting the targeted communities served 
by the entity; and 
(iii) will share information developed 
or used by the entity with— 
(I) researchers;
721 
•HR 2419 EH1S 
(II) practitioners; and 
(III) other interested parties. 
(2) LIMITATIONS.—For purposes of the pro-
grams under this section, the Secretary— 
(A) shall not give preference to any entity 
based on an agricultural commodity produced 
or supported by the entity; and 
(B) shall encourage, to the maximum ex-
tent practicable, projects that use infrastructure 
efficiently for more than 1 agricultural product. 
(3) REPORT.—Not less frequently than once 
each year, the Secretary shall submit to Congress a 
report that describes the programs (including the 
level of participation in each program) under this 
section, including information relating to— 
(A) projects carried out under this section; 
(B) characteristics of the agricultural pro-
ducers and communities served by the projects; 
(C) the benefits of the projects; 
(D) data necessary to comply with— 
(i) section 2501A of the Food, Agri-
culture, Conservation, and Trade Act of 
1990 (7 U.S.C. 2279–1); or
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•HR 2419 EH1S 
(ii) section 8(b)(5)(B) of the Soil Con-
servation and Domestic Allotment Act (16 
U.S.C. 590h(b)(5)); and 
(E) outreach and technical assistance ac-
tivities carried out by the Secretary under para-
graph (1). 
TITLE XI—MISCELLANEOUS 
PROVISIONS 
Subtitle A—Federal Crop Insurance 
Sec. 11001. Premiums and reinsurance requirements. 
Sec. 11002. Catastrophic risk protection administrative fee. 
Sec. 11003. Funding for reimbursements, contracting, risk management edu-
cation, and information technology. 
Sec. 11004. Reimbursement of research and development costs related to new 
crop insurance products. 
Sec. 11005. Research and development contracts for organic production cov-
erage improvements. 
Sec. 11006. Targeting risk management education for beginning farmers and 
ranchers and certain other farmers and ranchers. 
Sec. 11007. Crop insurance ineligibility related to crop production on noncrop-
land. 
Sec. 11008. Funds for data mining. 
Sec. 11009. Noninsured crop assistance program. 
Sec. 11010. Change in due date for Corporation payments for underwriting 
gains. 
Sec. 11011. Sesame insurance pilot program. 
Sec. 11012. National Drought Council and drought preparedness plans. 
Sec. 11013. Payment of portion of premium for area revenue plans. 
Sec. 11014. Share of risk. 
Sec. 11015. Livestock Assistance. 
Sec. 11016. Determination of certain sweet potato production. 
Subtitle B—Livestock and Poultry 
Sec. 11101. Sense of Congress regarding pseudorabies eradication program. 
Sec. 11102. Arbitration of livestock and poultry contracts. 
Sec. 11103. State-inspected meat and poultry. 
Sec. 11104. Country of origin labeling. 
Sec. 11105. Sense of Congress regarding the voluntary control program for low 
pathogenic avian influenza. 
Sec. 11106. Sense of Congress regarding the cattle fever tick eradication pro-
gram. 
Subtitle C—Socially Disadvantaged Producers and Limited Resource 
Producers
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•HR 2419 EH1S 
Sec. 11201. Outreach and technical assistance for socially disadvantaged farm-
ers and ranchers and limited resource farmers and ranchers. 
Sec. 11202. Improved program delivery by Department of Agriculture on In-
dian reservations. 
Sec. 11203. Transparency and accountability for socially disadvantaged farmers 
and ranchers. 
Sec. 11204. Beginning farmer and rancher development program. 
Sec. 11205. Provision of receipt for service or denial of service. 
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and lim-
ited resource farmers and ranchers in Census of Agriculture 
and certain studies. 
Sec. 11207. Farmworker coordinator. 
Sec. 11208. Office of Outreach relocation. 
Sec. 11209. Minority farmer advisory committee. 
Sec. 11210. Coordinator for chronically underserved rural areas. 
Subtitle D—Other Miscellaneous Provisions 
Sec. 11301. Designation of separate cotton-producing States under Cotton Re-
search and Promotion Act. 
Sec. 11302. Cotton classification services. 
Sec. 11303. Availability of excess and surplus computers in rural areas. 
Sec. 11304. Permanent debarment from participation in Department of Agri-
culture programs for fraud. 
Sec. 11305. No discrimination against use of registered pesticide products or 
classes of pesticide products. 
Sec. 11306. Prohibition on closure or relocation of county offices for the Farm 
Service Agency, Rural Development Agency, and Natural Re-
sources Conservation Service. 
Sec. 11307. Regulation of exports of plants, plant products, biological control 
organisms, and noxious weeds. 
Sec. 11308. Grants to reduce production of methamphetamines from anhydrous 
ammonia. 
Sec. 11309. USDA Graduate School. 
Sec. 11310. Prevention and investigation of payment and fraud and error. 
Sec. 11311. Sense of Congress regarding food deserts, geographically isolated 
neighborhoods and communities with limited or no access to 
major chain grocery stores. 
Sec. 11312. Pigford claims. 
Sec. 11313. Comptroller general study of wastewater infrastructure near 
United States-Mexico border. 
Sec. 11314. Elimination of statute of limitations applicable to collection of debt 
by administrative offset. 
Sec. 11315. Pollinator protection. 
Sec. 11316. Prohibition on use of live animals for marketing medical devices; 
fines under the Animal Welfare Act. 
Sec. 11317. Protection of pets.
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•HR 2419 EH1S 
Subtitle A—Federal Crop 
Insurance 
SEC. 11001. PREMIUMS AND REINSURANCE REQUIRE-
MENTS. 
(a) PREMIUM ADJUSTMENTS.—Section 508(a) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amend-
ed by adding at the end the following new paragraph: 
‘‘(9) PREMIUM ADJUSTMENTS.— 
‘‘(A) PROHIBITION.—Except as provided 
in subparagraph (B), the paying, allowing, or 
giving, or offering to pay, allow, or give, directly 
or indirectly, either as an inducement to pro-
cure insurance or after insurance has been pro-
cured, any rebate, discount, abatement, credit, 
or reduction of the premium named in an insur-
ance policy or any other valuable consideration 
or inducement whatsoever not specified in the 
policy, is strictly prohibited under this title. 
‘‘(B) 
EXCEPTIONS.—Subparagraph 
(A) 
does not apply with respect to the following: 
‘‘(i) A rebate authorized under sub-
section (b)(5)(B). 
‘‘(ii) A performance-based discount 
authorized under subsection (d)(3).’’.
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•HR 2419 EH1S 
(b) PAYMENT OF CATASTROPHIC RISK PROTECTION 
FEE ON BEHALF OF PRODUCERS.—Section 508(b)(5)(B) 
of 
the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1508(b)(5)(B)) is amended— 
(1) in the subparagraph heading, by inserting 
‘‘OF CATASTROPHIC RISK PROTECTION FEE’’ after 
‘‘PAYMENT’’; 
(2) in clause (i)— 
(A) by striking ‘‘or other payment’’; and 
(B) by striking ‘‘with catastrophic risk 
protection or additional coverage’’; and insert-
ing ‘‘through the payment of all or a portion of 
catastrophic 
risk 
protection 
administrative 
fees’’; 
(3) in clause (ii)— 
(A) by striking ‘‘or other payment made by 
an insurance provider’’ and inserting ‘‘payment 
made pursuant to clause (i) by an insurance 
provider’’; 
(B) by striking ‘‘issuance of catastrophic 
risk protection or additional coverage to’’ and 
inserting ‘‘payment of catastrophic risk protec-
tion administrative fees on behalf of’’; and 
(C) by striking ‘‘or other payment’’ the 
second place it appears;
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•HR 2419 EH1S 
(4) in clause (iv), by striking ‘‘A policy or plan 
of insurance’’ and inserting ‘‘Catastrophic risk pro-
tection coverage’’; 
(5) in clause (v)— 
(A) by striking ‘‘licensing fee or other ar-
rangement under this subparagraph’’ and in-
serting ‘‘licensing fee arrangement’’; and 
(B) by striking ‘‘levels of additional cov-
erage’’ and inserting ‘‘levels of coverage’’; and 
(6) by striking clause (vi). 
(c) CHANGE IN DUE DATE FOR POLICYHOLDER PRE-
MIUMS.—Section 508 of the Federal Crop Insurance Act 
(7 U.S.C. 1508) is amended— 
(1) in subsection (b)(5)(C), by striking ‘‘the 
date that premium’’ and inserting ‘‘the same date on 
which the premium’’; 
(2) in subsection (c)(10)(B)— 
(A) by inserting ‘‘; TIME FOR PAYMENT’’ 
after ‘‘WAIVER’’; and 
(B) by adding at the end the following new 
sentence: ‘‘Subparagraph (C) of such subsection 
shall apply with respect to the collection date 
for policy premiums.’’; and 
(3) in subsection (d), by adding at the end the 
following new paragraph:
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•HR 2419 EH1S 
‘‘(4) BILLING
DATE
FOR
PREMIUMS.—Begin-
ning with the 2012 reinsurance year, the Corpora-
tion shall establish August 1 as the billing date for 
premiums.’’. 
(d) REINSURANCE.— 
(1) 
REIMBURSEMENT
RATE.—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 new clause: 
‘‘(ii) for the 2009 and subsequent re-
insurance years, 2.9 percentage points 
below the rates, in effect as of the date of 
the enactment of this Act of the Farm, 
Nutrition, and Bioenergy Act of 2007, for 
all crop insurance policies used to define 
loss ratio.’’. 
(2) RENEGOTIATION OF STANDARD REINSUR-
ANCE AGREEMENT.—Section 508(k) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(k)) is amended 
by adding at the end the following new paragraph: 
‘‘(8) RENEGOTIATION OF STANDARD REINSUR-
ANCE AGREEMENT.— 
‘‘(A) 
PERIODIC
RENEGOTIATION.—Fol-
lowing the reinsurance year ending June 30, 
2012, the Corporation may renegotiate the fi-
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•HR 2419 EH1S 
nancial terms of the standard reinsurance 
agreement during the next reinsurance year and 
once during each period of five reinsurance 
years thereafter. 
‘‘(B) 
EFFECT
OF
FEDERAL
LAW 
CHANGES.—If changes in Federal law are en-
acted that require revisions in the financial 
terms of the standard reinsurance agreement, 
and such changes in the agreement are made 
on a mandatory basis by the Corporation, such 
changes will not be deemed to be a renegoti-
ation of the agreement for purposes of subpara-
graph (A). 
‘‘(C) 
CONSULTATION.—Approved 
insur-
ance providers and their representatives may 
confer with each other, and collectively with the 
Corporation, during the renegotiation process 
under subparagraph (A).’’. 
(3) 
TREATMENT
OF
2008
REINSURANCE 
YEAR.—Clause (ii) of section 508(k)(4)(A) of the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1508(k)(4)(A)), as in effect on the day before the 
date of the enactment of this Act, shall continue to 
apply with respect to the 2008 reinsurance year.
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•HR 2419 EH1S 
(e) CHANGE IN DUE DATE FOR ADMINISTRATIVE 
AND OPERATING EXPENSE PAYMENT.—Section 516(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1516(b)) is 
amended by adding at the end the following new para-
graph: 
‘‘(3) DUE DATE FOR ADMINISTRATIVE AND OP-
ERATING EXPENSE PAYMENT.—Beginning with the 
2012 reinsurance year, the Corporation shall make 
payments pursuant to paragraph (1)(B) during Oc-
tober 2012, and for subsequent reinsurance years, 
every October thereafter.’’. 
(f) CONFORMING AMENDMENTS.— 
(1) PREMIUM
REDUCTION
AUTHORITY.—Sub-
section 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) is amended— 
(A) in paragraph (2) by striking ‘‘para-
graph (4)’’ and inserting ‘‘paragraph (3)’’; 
(B) by striking paragraph (3); and 
(C) by redesignating paragraphs (4) and 
(5) as paragraphs (3) and (4), respectively. 
(2) PREMIUM
RATE
REDUCTION
PILOT
PRO-
GRAM.—Section 523 of the Federal Crop Insurance 
Act (7 U.S.C. 1523) is amended— 
(A) by striking subsection (d); and
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•HR 2419 EH1S 
(B) by redesignating subsection (e) as sub-
section (d). 
(3) SUBMISSION
OF
POLICIES
AND
MATE-
RIALS.—Section 508(h)(1)(A) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)(1)(A)) is amended 
by striking ‘‘; and’’ and inserting ‘‘; or’’. 
SEC. 11002. CATASTROPHIC RISK PROTECTION ADMINIS-
TRATIVE FEE. 
Section 508(b)(5)(A) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(b)(5)(A)) is amended by striking 
‘‘$100 per crop per county’’ and inserting in its place 
‘‘$200 per crop per county’’. 
SEC. 
11003. 
FUNDING 
FOR 
REIMBURSEMENTS, 
CON-
TRACTING, RISK MANAGEMENT EDUCATION, 
AND INFORMATION TECHNOLOGY. 
(a) FUNDING.—Section 516 of the Federal Crop In-
surance Act (7 U.S.C. 1516) is amended by adding at the 
end the following new subsections: 
‘‘(d) 
FUNDING
FOR
REIMBURSEMENTS, 
CON-
TRACTING, RISK MANAGEMENT EDUCATION, AND INFOR-
MATION TECHNOLOGY.—Of the amounts made available 
from the insurance fund established under subsection (c), 
the Corporation shall use not more than $30,000,000 in 
each fiscal year to carry out the following:
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•HR 2419 EH1S 
‘‘(1) Reimbursement of research and develop-
ment and maintenance costs described under section 
522(b). 
‘‘(2) Research and development contracting de-
scribed under section 522(c). 
‘‘(3) Partnerships for risk management and im-
plementation described under section 522(d). 
‘‘(4) Education and information programs de-
scribed in section 524(a)(2). 
‘‘(5) Partnerships for risk management edu-
cation program described in section 524(a)(3). 
‘‘(6) Information technology, as determined by 
the Corporation. 
‘‘(e) UNDERSERVED STATES.—Of the amount made 
available under subsection (d), the Corporation shall use 
not more than $5,000,000 in each fiscal year to carry out 
contracting for research and development described in sec-
tion 522(c)(1)(A).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) FORMER
FUNDING
PROVISION.—Section 
522 of the Federal Crop Insurance Act (7 U.S.C. 
1522) is amended by striking subsection (e) and in-
serting the following new subsection: 
‘‘(e) PROHIBITED RESEARCH AND DEVELOPMENT BY 
CORPORATION.—
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•HR 2419 EH1S 
‘‘(1) NEW
POLICIES.—Notwithstanding sub-
section (d), the Corporation shall not conduct re-
search and development for any new policy for an 
agricultural commodity offered under this title. 
‘‘(2) EXISTING
POLICIES.—Any policy devel-
oped by the Corporation under this title before Octo-
ber 1, 2000, may continue to be offered for sale to 
producers.’’. 
(2) CROSS REFERENCE.—Section 523(c)(1) of 
the 
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C. 
1523(c)(1)) 
is 
amended 
by 
striking 
‘‘section 
522(e)(4)’’ and inserting ‘‘section 522(e)’’. 
(3) EDUCATION
ASSISTANCE
FUNDING.—Sec-
tion 524(a) of the Federal Crop Insurance Act (7 
U.S.C. 1524(a)) is amended as follows: 
(A) in paragraph (1), by striking ‘‘para-
graph (4)’’ and inserting ‘‘section 516(d)’’; and 
(B) by striking paragraph (4). 
SEC. 11004. REIMBURSEMENT OF RESEARCH AND DEVEL-
OPMENT COSTS RELATED TO NEW CROP IN-
SURANCE PRODUCTS. 
(a) REIMBURSEMENT AUTHORIZED.—Paragraph (1) 
of section 522(b) of the Federal Crop Insurance Act (7 
U.S.C. 1522(b)) is amended to read as follows:
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•HR 2419 EH1S 
‘‘(1) RESEARCH
AND
DEVELOPMENT
REIM-
BURSEMENT.—The Corporation shall provide a pay-
ment to reimburse an applicant for research and de-
velopment costs directly related to a policy that— 
‘‘(A) is submitted to the Board pursuant 
to an FCIC Reimbursement Grant under para-
graph (7); or 
‘‘(B) is submitted to the Board and ap-
proved by the Board under section 508(h) for 
reinsurance and, if applicable, offered for sale 
to producers.’’. 
(b) 
FCIC 
REIMBURSEMENT
GRANTS.—Section 
522(b) of the Federal Crop Insurance Act (7 U.S.C. 
1522(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) FCIC REIMBURSEMENT GRANTS.— 
‘‘(A) GRANTS
AUTHORIZED.—The Cor-
poration shall provide FCIC Reimbursement 
Grants to persons proposing to prepare for sub-
mission to the Board crop insurance policies 
and provisions under subparagraphs (A) and 
(B) of section 508(h)(1), who apply and are ap-
proved for such FCIC Reimbursement Grants 
under the terms and conditions of this para-
graph.
734 
•HR 2419 EH1S 
‘‘(B) SUBMISSION OF APPLICATION.—The 
Board shall receive and consider applications 
for FCIC Reimbursement Grants at least once 
annually. An application to receive an FCIC 
Reimbursement Grant from the Corporation 
shall consist of such materials as the Board 
may require, including— 
‘‘(i) a concept paper that describes the 
proposal in sufficient detail for the Board 
to determine whether it satisfies the re-
quirements of subparagraph (C); 
‘‘(ii) a summary of — 
‘‘(I) the need for the product, in-
cluding an assessment of market-
ability and expected demand among 
affected producers; 
‘‘(II) support from producers, 
producer organizations, lenders, or 
other interested parties; 
‘‘(III) the impact the product 
would have on producers and on the 
crop insurance delivery system; and 
‘‘(IV) that no products are of-
fered by the private sector providing
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•HR 2419 EH1S 
the same benefits and risk manage-
ment services as the proposal. 
‘‘(iii) a summary of data sources 
available demonstrating that the product 
can reasonably be developed and properly 
rated; and 
‘‘(iv) identification of the risks the 
proposed product will cover and that the 
risks are insurable under the Act. 
‘‘(C) APPROVAL CONDITIONS.—Approval of 
an application for a FCIC Reimbursement 
Grant shall be by majority vote of the Board. 
The Board shall approve the application only if 
the Board finds that— 
‘‘(i) the proposal contained in the ap-
plication— 
‘‘(I) provides coverage to a crop 
or region not traditionally served by 
the Federal crop insurance program; 
‘‘(II) provides crop insurance 
coverage in a significantly improved 
form; 
‘‘(III) addresses a recognized 
flaw or problem in the program;
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•HR 2419 EH1S 
‘‘(IV) introduces a significant 
new concept or innovation to the pro-
gram; or 
‘‘(V) provides coverage, benefits, 
or risk management services not avail-
able from the private sector; 
‘‘(ii) the applicant demonstrates the 
necessary qualifications to complete the 
project successfully in a timely manner 
with high quality; 
‘‘(iii) the proposal is in the interests 
of producers and can reasonably be ex-
pected to be actuarially appropriate; 
‘‘(iv) the Board determines that the 
Corporation has sufficient available fund-
ing to award the FCIC Reimbursement 
Grant; and 
‘‘(v) the proposed budget and time-
table are reasonable. 
‘‘(D) PARTICIPATION.—In reviewing pro-
posals under this paragraph, the Board may 
use the services of persons it deems appropriate 
for expert review. All proposals submitted under 
this paragraph will be treated as confidential in 
accordance with section 508(h)(4).
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•HR 2419 EH1S 
‘‘(E) ENTERING INTO AGREEMENT.—Upon 
approval of the application, the Board shall 
enter into an agreement with the person for the 
development of a formal submission meeting the 
requirements for a complete submission estab-
lished by the Board under section 508(h). 
‘‘(F) FEASIBILITY
STUDIES.—In appro-
priate cases, the Corporation may structure the 
FCIC Reimbursement Grant to require, as an 
initial step within the overall process, the sub-
mitter to complete a feasibility study and report 
the results of such study to the Corporation 
prior to proceeding with further development. 
The Corporation may require such other reports 
as necessary to monitor the development ef-
forts. 
‘‘(G) RATES.—Payment for work per-
formed under this paragraph shall be based on 
rates determined by the Corporation for prod-
ucts submitted under section 508(h) of the Act 
or for those contracted by the Corporation 
under section 522(c) of the Act. 
‘‘(H) TERMINATION.—The Corporation or 
the submitter may terminate any FCIC Reim-
bursement Grant to reimburse expenses at any
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•HR 2419 EH1S 
time for just cause. If the Corporation or the 
submitter terminates the FCIC Reimbursement 
Grant before final approval of the product cov-
ered thereby, the submitter shall be entitled to 
reimbursement of all costs incurred to that 
point, or, in the case of a fixed rate agreement, 
to payment of an appropriate percentage. If the 
submitter terminates development without just 
cause, the Corporation may deny reimburse-
ment. 
‘‘(I) CONSIDERATION OF PRODUCTS.—The 
Board shall consider any product submitted to 
it developed under this paragraph under the 
rules it has established for products submitted 
under section 508(h) of this Act.’’. 
SEC. 11005. RESEARCH AND DEVELOPMENT CONTRACTS 
FOR ORGANIC PRODUCTION COVERAGE IM-
PROVEMENTS. 
Section 522(c) of the Federal Crop Insurance Act (7 
U.S.C. 1522(c)) is amended— 
(1) by redesignating paragraph (10) as para-
graph (11); and 
(2) by inserting after paragraph (9) the fol-
lowing new paragraph:
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•HR 2419 EH1S 
‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION 
COVERAGE IMPROVEMENTS.— 
‘‘(A) CONTRACT
REQUIRED.—Not later 
than 180 days after the date of the enactment 
of the Farm, Nutrition, and Bioenergy Act of 
2007, the Corporation shall enter into one or 
more contracts for the development of improve-
ments in Federal crop insurance policies cov-
ering crops produced in compliance with stand-
ards issued by the Department of Agriculture 
under the National Organic Program. 
‘‘(B) REVIEW
OF
UNDERWRITING, RISK, 
AND LOSS EXPERIENCE.— 
‘‘(i) REVIEW REQUIRED.—A contract 
under subparagraph (A) shall include a re-
view of the underwriting, risk, and loss ex-
perience of organic crops covered by the 
Corporation, as compared with the same 
crops produced in the same counties and 
during the same time periods using non-or-
ganic methods. The review should be de-
signed to allow the Corporation to deter-
mine whether significant, consistent, or 
systemic variations in loss history exist be-
tween organic and non-organic production,
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•HR 2419 EH1S 
and shall include the widest available range 
of data, including loss history under exist-
ing crop insurance policies, collected by the 
National Agricultural Statistics Service, 
and other sources of information. 
‘‘(ii) EFFECT
ON
PREMIUM
SUR-
CHARGE.—Unless the review under this 
subparagraph documents the existence of 
such significant, consistent, and systemic 
variations in loss history between organic 
and non-organic crops, either collectively or 
on an individual basis, the Corporation 
shall eliminate or reduce the premium sur-
charge that the Corporation charges for 
coverage for organic crops. 
‘‘(C) ADDITIONAL
PRICE
ELECTION.—A 
contract under subparagraph (A) shall include 
the development of a procedure, including any 
associated changes in policy terms or materials 
required for implementation of the procedure, 
to offer producers of organic crops an addi-
tional price election that would reflect the ac-
tual retail or wholesale prices, as appropriate, 
received by organic producers for their crops, as 
established using data collected and maintained
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•HR 2419 EH1S 
by the Agricultural Marketing Service or other 
sources. The development of the procedure shall 
be completed in a timely manner to allow the 
Corporation to begin offering the additional 
price election for organic crops with sufficient 
data for the 2009 crop year, and expand it 
thereafter as the Agricultural Marketing Service 
expands its data collection and availability for 
prices of organic crops. 
‘‘(D) REPORTING
REQUIREMENTS.—The 
Corporation shall submit to the Committee on 
Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate an annual report on 
the progress made in developing and improving 
Federal crop insurance for organic crops, in-
cluding the numbers and varieties of organic 
crops insured, the development of new insur-
ance approaches, and the progress of the initia-
tives mandated under this paragraph. The re-
port shall also include such recommendations as 
the Corporation considers appropriate regarding 
additional opportunities to improve Federal 
crop insurance coverage for such crops.’’.
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•HR 2419 EH1S 
SEC. 11006. TARGETING RISK MANAGEMENT EDUCATION 
FOR BEGINNING FARMERS AND RANCHERS 
AND CERTAIN OTHER FARMERS AND RANCH-
ERS. 
Section 524(a) of the Federal Crop Insurance Act (7 
U.S.C. 1524(a)) is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) TARGETING
RISK
MANAGEMENT
EDU-
CATION FOR CERTAIN FARMERS AND RANCHERS.— 
‘‘(A) IN GENERAL.—In carrying out the 
education and information program established 
under paragraph (2) and the partnerships for 
risk management education program under 
paragraph (3), the Secretary shall include a 
special emphasis on risk management strategies 
and education and outreach specifically targeted 
at farmers and ranchers described in subpara-
graph (B). 
‘‘(B) COVERED
FARMERS
AND
RANCH-
ERS.—Subparagraph (A) applies with respect to 
the following: 
‘‘(i) Beginning farmers and ranchers.
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•HR 2419 EH1S 
‘‘(ii) Immigrant farmers and ranchers 
who are attempting to become established 
producers in the United States. 
‘‘(iii) Socially disadvantaged farmers 
and ranchers. 
‘‘(iv) Farmers and ranchers who are 
preparing to retire and are using transition 
strategies to help new farmers and ranch-
ers get started. 
‘‘(v) Farmers and ranchers who are 
converting their current production and 
marketing systems to pursue new mar-
kets.’’. 
SEC. 11007. CROP INSURANCE INELIGIBILITY RELATED TO 
CROP PRODUCTION ON NONCROPLAND. 
Section 502 of the Federal Crop Insurance Act (7 
U.S.C. 1502) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) CROP INSURANCE INELIGIBILITY RELATED TO 
CROP PRODUCTION ON NONCROPLAND.— 
‘‘(1) NONCROPLAND
DEFINED.—In this sub-
section, the term ‘noncropland’ means native grass-
land and pasture the Secretary determines has never 
been used for crop production.