146 
for the twelve months ending the preceding 
June 30.’’. 
SEC. 603. CHILD CARE DEDUCTION. 
Section 5(e)(3)(A) of the Food Stamp Act of 1977 
(7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, the 
maximum allowable level of which shall be $200 per month 
for each dependent child under 2 years of age and $175 
per month for each other dependent,’’. 
SEC. 604. EXCLUSION OF COMBAT-RELATED MILITARY PAY 
FROM COUNTABLE INCOME. 
Section 5(d) of the Food Stamp Act of 2007 (7 
U.S.C. 2014(d)) is amended— 
(1) by striking ‘‘and (18)’’ and inserting 
‘‘(18)’’; and 
(2) by inserting before the period at the end the 
following: 
‘‘(19) any additional payment received under chapter 
5 of title 37, United States Code, by a member of the 
United States Armed Forces deployed to a designated 
combat zone for the duration of the member’s deployment 
if the additional pay is the result of deployment to or while 
serving in a combat zone, and it was not received imme-
diately prior to serving in the combat zone’’. 
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147 
SEC. 605. EXCLUSION OF RETIREMENT ACCOUNTS FROM 
COUNTABLE FINANCIAL RESOURCES. 
(a) RETIREMENT ACCOUNTS.—Section 5(g)(2)(B)(v) 
of 
the 
Food 
Stamp 
Act 
of 
1977 
(7 
U.S.C. 
2014(g)(2)(B)(v)), as amended by section 604, is amend-
ed by striking ‘‘or retirement account (including an indi-
vidual account)’’ and inserting ‘‘account’’. 
(b) MANDATORY
AND
DISCRETIONARY
EXCLU-
SIONS.—Section 5(g) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(g)) is amended by adding at the end the fol-
lowing: 
‘‘(8) EXCLUSION
OF
RETIREMENT
ACCOUNTS 
FROM COUNTABLE FINANCIAL RESOURCES.— 
‘‘(A) MANDATORY EXCLUSIONS.—The Sec-
retary shall exclude from financial resources 
under this subsection the value of any funds in 
a plan, contract, or account, described in sec-
tion 401(a), 403(a), 403(b), 408, 408A, 457(b), 
or 501(c)(18) of the Internal Revenue Code of 
1986 and the value of funds in a Federal Thrift 
Savings Plan account as provided in section 
8439 of title 5 of the United States Code. 
‘‘(B) DISCRETIONARY
EXCLUSIONS.—The 
Secretary may exclude from financial resources 
under this subsection the value of any other re-
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148 
tirement plans, contracts, or accounts (as deter-
mined by the Secretary by regulation).’’. 
SEC. 606. ALLOWABLE COUNTABLE RESOURCES. 
Section 5(g) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(g)) is amended— 
(1) by striking ‘‘(g)(1) The Secretary’’ and in-
serting the following: 
‘‘(g) ALLOWABLE FINANCIAL RESOURCES.— 
‘‘(1) TOTAL AMOUNT.— 
‘‘(A) IN GENERAL.—The Secretary’’. 
(2) in subparagraph (A) (as so designated by 
paragraph (1))— 
(A) by inserting ‘‘(as adjusted in accord-
ance with subparagraph (B))’’ after ‘‘$2,000’’; 
and 
(B) by inserting ‘‘(as adjusted in accord-
ance with subparagraph (B))’’ after ‘‘$3,000’’; 
and 
(3) by adding at the end the following: 
‘‘(B) ADJUSTMENT FOR INFLATION.— 
‘‘(i) IN GENERAL.—Beginning on Oc-
tober 1, 2007, and each October 1 there-
after, the amounts in subparagraph (A) 
shall be adjusted to the nearest $100 in-
crement to reflect changes for the 12- 
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149 
month period ending the preceding June in 
the Consumer Price Index for All Urban 
Consumers published by the Bureau of 
Labor Statistics of the Department of 
Labor. 
‘‘(ii) REQUIREMENT.—Each adjust-
ment under clause (i) shall be based on the 
unrounded amount for the prior 12-month 
period.’’. 
SEC. 607. FACILITATING SIMPLIFIED REPORTING. 
Section 6(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2015(c)(1)(A)) is amended— 
(1) in paragraph (1)(a) by— 
(A) striking ‘‘reporting by’’ and inserting 
‘‘reporting’’; 
(B) inserting ‘‘for periods shorter than 
four months by’’ after the clause designations 
in clauses (I) and (ii); and 
(C) inserting ‘‘by’’ after the clause des-
ignation in clause (iii); and 
(2) in paragraph (3) by— 
(A) striking ‘‘Reports required to be filed 
monthly under paragraph (1)’’ and inserting 
‘‘Except as provided in paragraph (1)(D)(ii), 
periodic reports filed under paragraph (1)’’; 
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150 
(B) striking ‘‘required to be filed month-
ly’’; 
(C) striking ‘‘subject matter included in 
such reports’’ and inserting ‘‘such households’’; 
and 
(D) inserting after the third sentence the 
following: ‘‘The State agency shall not be re-
quired to act on information about such house-
hold received from any source between such 
periodic reports unless the information clearly 
indicates that the household is not eligible, sub-
ject to standards established by the Secretary, 
or the household requests an increase in bene-
fits.’’. 
SEC. 608. SIMPLIFYING WORK REQUIREMENT. 
(a) Section 6 of the Food Stamp Act of 1977 (7 
U.S.C. 2015) is amending by striking subsection (o). 
(b) Section 16(h)(1) of the food stamp act of 1977 
(7 U.S.C. 2025(h)(1)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (vi)(II) by striking ‘‘and’’; 
(B) in clause (vii) by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following 
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151 
‘‘(viii) for each of fiscal years 2008 
through 2012, $110,000,000.’’; and 
(2) by striking subparagraph (E). 
SEC. 609. MINIMUM BENEFIT. 
Section 8(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2017(a)) is amended by striking ‘‘$10 per month.’’ 
and inserting ‘‘20 percent of the thrifty food plan for a 
household containing one member, as determined by the 
Secretary under section 3(o).’’. 
SEC. 610. REAUTHORIZATION OF FOOD STAMP PROGRAM 
AND FOOD DISTRIBUTION PROGRAM ON IN-
DIAN RESERVATIONS. 
(a) GRANTS FOR SIMPLE APPLICATION AND ELIGI-
BILITY DETERMINATION SYSTEMS AND IMPROVED AC-
CESS TO BENEFITS.—Section 11(t)(1) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(t)(1)) is amended by striking 
‘‘2007’’ and inserting ‘‘2012’’. 
(b) FOOD STAMP EMPLOYMENT AND TRAINING.— 
Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(h)(1)) is amended— 
(1) in subparagraph (A)(vii) by striking ‘‘2002 
through 2007’’ and inserting ‘‘2008 through 2012’’; 
and 
(2) in subparagraph (E)(i) by striking ‘‘2002 
through 2007’’ and inserting ‘‘2008 through 2012’’. 
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152 
(c) REDUCTIONS IN PAYMENTS FOR ADMINISTRA-
TIVE COSTS.—Section 16(k)(3) of the Food Stamp Act 
of 1977 (7 U.S.C. 2025(k)(3)) is amended— 
(1) in the first sentence of subparagraph (A), 
by striking ‘‘2007’’ and inserting ‘‘2012’’; and 
(2) in subparagraph (B)(ii) by striking ‘‘2007’’ 
and inserting ‘‘2012’’. 
(d) CASH
PAYMENT
PILOT
PROJECTS.—Section 
17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(B(vi)) is amended by striking ‘‘2007’’ and in-
serting ‘‘2012’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(a)(1)) is amended in the 1st sentence by striking 
‘‘2003 through 2007’’ and inserting ‘‘2008 through 
2012’’. 
(f) CONSOLIDATED BLOCK GRANTS
FOR PUERTO 
RICO AND AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of 
the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(2)(A)(ii)) 
is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 611. ACCOUNTABILITY FOR PAPERWORK REQUIRE-
MENTS. 
Section 11(e)(3) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)(3)) is amended by inserting ‘‘, Provided, 
That no application shall be denied for lack of verification 
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153 
unless the State agency determines that the household re-
fused to comply with a request for verification made by 
an individual designated under paragraph (6)(B)’’ after 
‘‘of an application,’’. 
SEC. 612. PERFORMANCE STANDARDS FOR BIOMETRIC 
TECHNOLOGY. 
Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 
2016) is amended by adding at the end the following: 
‘‘(k) LIMITATION.—No State agency shall establish 
any additional requirements or conditions on households 
to receive benefits, other than those specified in this sec-
tion.’’. 
SEC. 613. PREVENTING CONFLICTS OF INTEREST. 
Section 16(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(a)) is amended by inserting ‘‘directly or indi-
rectly’’ before ‘‘receive or benefit’’ in the final sentence. 
SEC. 614. LIMITATION ON CONTRACTING. 
Section 16(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2025(a)) is amended by inserting at the end: ‘‘The 
Secretary shall not make any payments for administrative 
costs under this or any other section of law relating to 
a contract that a State agency concluded in violation of 
this Act or the Secretary’s regulations, whether or not the 
Secretary may approve the contract subsequent to its let-
ting, or for any personnel costs to carry out functions 
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154 
specified under section 11(e)(3) except by persons de-
scribed under section 11(e)(6)(B).’’. 
SEC. 615. FAIRNESS FOR LEGAL IMMIGRANTS. 
Notwithstanding sections 401(a), 402(a), and 403(a) 
of the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1611(a), 1612(a), 
1613(a)) and section 6(f) of the Food Stamp Act of 1977 
(7 U.S.C. 2015(f)), persons who are lawfully residing in 
the United States shall be not be ineligible for food stamps 
on the basis of their immigration status or date of entry 
into the United States. 
SEC. 616. CLARIFYING ELIGIBILITY. 
Section 421 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 
1631(d)(3)) is amended— 
(1) by striking ‘‘to the extent that a qualified 
alien is eligible under section 1612(a)(2)(J) of this 
title’’; and 
(2) inserting ‘‘to the extent that a child is a 
member of the food stamp household’’. 
SEC. 617. ENSURING PROPER SCREENING. 
Section 11(e)(2)(B) of the Food Stamp Act of 1977 
(7 U.S.C. 2020(e)(2)(B)) is amended— 
(1) by redesignating clauses (vi) and (viii) as 
clauses (vii) and (viii); and 
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155 
(2) by inserting the following after clause (v): 
‘‘(vi) shall provide a method for imple-
menting 8 U.S.C. 1631 that does not re-
quire any unnecessary information from 
persons
who may be
exempt from that
provision;’’. 
SEC. 618. CLARIFICATION OF SIMPLIFIED ADMINISTRATIVE 
REPORTING REQUIREMENT. 
Section 11(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(a)) is amended by adding the following at 
the end— 
‘‘The administrative reporting requirement under 8 
U.S.C. 1631(e)(2) shall be satisfied by the submission of 
an aggregate report on the numbers of such exceptions 
granted each year.’’. 
Subtitle B—Other Nutrition 
Programs 
SEC. 631. COMMODITIES FOR THE EMERGENCY FOOD AS-
SISTANCE PROGRAM. 
Section 27(a) of the Food Stamp Act of 1977 (7 
U.S.C. 2036(a)) is amended— 
(1) by striking ‘‘(a) purchase of commodities’’ 
and all that follows through ‘‘through 2007’’ and in-
serting the following: 
‘‘(a) PURCHASE OF COMMODITIES.— 
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156 
‘‘(1) IN GENERAL.—As provided in paragraph 
(2), for each of fiscal years 2008 through 2012’’; 
(2) by striking ‘‘$140,000,000 of’’; and 
(3) by inserting at the end: 
‘‘(2) AMOUNTS.—The following amounts are 
made available to carry out this subsection: 
‘‘(A) for fiscal year 2008, $250,000,000; 
‘‘(B) for each of fiscal years 2009 through 
2012, the dollar amount of commodities avail-
able in the immediately preceding fiscal year 
adjusted by the percentage by which the thrifty 
food plan has been adjusted under section 
3(o)(4) between June 30, 2007 and June 30 of 
the immediately preceding fiscal year.’’. 
SEC. 632. REAUTHORIZE THE COMMODITY SUPPLEMENTAL 
FOOD PROGRAM (CSFP). 
Section 4(a) of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note; Public Law 93– 
86) is amended in the first sentence by striking ‘‘2007’’ 
and inserting ‘‘2012’’. 
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157 
SEC. 633. REAUTHORIZATION OF AND INCREASED FUNDING 
FOR COMMUNITY FOOD PROJECT COMPETI-
TIVE GRANTS. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.—Section 
25(b) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)) 
is amended— 
(1) in paragraph (1) by striking ‘‘From 
amounts made available to carry out this Act, the 
Secretary may’’ and inserting ‘‘The Secretary shall’’; 
and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) 
FUNDING
AMOUNTS.—From 
amounts 
made available to carry out this Act, the Secretary 
shall use for fiscal year 2008 $30,000,000 and for 
each fiscal year thereafter the amount available in 
the preceding year adjusted to reflect changes in the 
in Consumer Price Index for all Urban Consumers 
published by the Bureau of Labor Statistics for the 
twelve months ending the preceding June 30.’’. 
(b) PREFERENCE FOR CERTAIN PROJECTS.—Section 
25(d) of the Food Stamp Act of 1977 (7 U.S.C. 2034(d)) 
is amended— 
(1) in paragraph (3) by striking ‘‘or’’ at the 
end; 
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158 
(2) in paragraph (4) by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(5) serve special project needs in areas of— 
‘‘(A) transportation and processing for ex-
panding institutional and emergency food serv-
ice demand for local food; 
‘‘(B) retail access to healthy foods in un-
derserved markets; 
‘‘(C) integration of urban and metro-area 
food production in food projects; and 
‘‘(D) technical assistance for youth, so-
cially disadvantaged individuals, and limited re-
source groups.’’. 
(c) MATCHING
FUNDS
REQUIREMENTS.—Section 
25(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2034(e)(1)) is amended by striking ‘‘50’’ and inserting 
‘‘75’’. 
(d) TERM OF GRANT.—Section 25(f)(2) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(f)(2)) is amended by 
striking ‘‘3’’ and inserting ‘‘5’’. 
(e) FUNDING.—Section 25(h)(4) of the Food Stamp 
Act of 1977 (7 U.S.C. 2034(h)(4)) is amended— 
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159 
(1) by striking ‘‘fiscal years 2003 through 
2007’’ and inserting ‘‘fiscal years 2008 through 
2013’’; and 
(2) by striking ‘‘$200,000’’ and inserting 
‘‘$500,000’’. 
TITLE VII—CROP INSURANCE 
SEC. 701. REAUTHORIZATION OF AND ADDITIONAL FUND-
ING FOR AGRICULTURAL MANAGEMENT AS-
SISTANCE PROGRAM. 
(a) REAUTHORIZATION.—Subsection (b)(4)(B) of 
section 524 of the Federal Crop Insurance Act (7 U.S.C. 
1524) is amended— 
(2) in clause (ii), by striking ‘‘fiscal years 2003 
through 2007’’ and inserting ‘‘fiscal years 2008 
through 2013’’; and 
(3) in clause (iii), by striking ‘‘fiscal years 2004 
through 2007’’ and inserting ‘‘fiscal years 2008 
through 2013’’. 
(b) FUNDING LEVELS.—Such subsection is further 
amended— 
(1) in clause (ii), by striking ‘‘$20,000,000’’ 
and inserting ‘‘$40,000,000’’; and 
(2) in clause (iii)— 
(A) 
in 
subclause 
(I), 
by 
striking 
‘‘$14,000,000’’ and inserting ‘‘$19,000,000’’; 
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(B) 
in 
subclause 
(II), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’; and 
(C) 
in 
subclause 
(III), 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$19,000,000’’. 
SEC. 702. REAUTHORIZATION, EXPANSION, AND IMPROVE-
MENT OF ADJUSTED GROSS REVENUE (AGR) 
INSURANCE PILOT PROGRAM. 
(a) REAUTHORIZATION.—Subsection (e)(1) of section 
523 of the Federal Crop Insurance Act (7 U.S.C. 1524) 
is amended by striking ‘‘2004 reinsurance year’’ and in-
serting ‘‘2013 reinsurance year’’. 
(b) EXPANSION.—Subsection (e)(2)(a) of section 523 
of the Federal Crop Insurance Act (7 U.S.C. 1524) is 
amended by striking ‘‘the Corporation shall include in the 
pilot program for the 2003 reinsurance year at least 8 
counties in the State of California and at least 8 counties 
in the State of Pennsylvania’’ and inserting ‘‘the Corpora-
tion shall include in the adjusted gross revenue insurance 
pilot programs (AGR and AGR–Lite) for the 2008 
through 2013 reinsurance years all counties and States 
which meet the criteria for selection, pending required rat-
ing.’’. 
(c) SPECIFIC POLICY IMPROVEMENTS.—Subsection 
(e) of section 523 of the Federal Crop Insurance Act (7 
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161 
U.S.C. 1524) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(3) COVERAGE
LEVELS.—The Corporation 
shall, to the maximum extent possible, provide high-
er coverage levels for the adjusted gross revenue in-
surance pilot program including an 85 percent cov-
erage level with a 100 percent payment rate. 
‘‘(4) ACCURATE
REFLECTION
OF
RISK.—The 
Corporation shall, to the maximum extent possible, 
provide coverage levels for AGR and AGR–Lite that 
accurately reflect a producers’ risk under conditions 
of increasing intended revenue. 
‘‘(5) INCOME
FLOOR.—In order to maintain 
adequate coverage levels during low income years, 
the Corporation shall, to the maximum extent pos-
sible, provide a 10 percent floor to declines in a pro-
ducers’ 5-year income history, which is used in de-
termining coverage levels. 
‘‘(6) INCLUSION OF PAYMENTS.—The Corpora-
tion shall, to the maximum extent possible, include 
crop insurance payments and Noninsured Crop Dis-
aster Assistance as allowable income in producers’ 5- 
year income history, which is used to determine pre-
mium rates. 
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162 
‘‘(7) LIVESTOCK
RISK
ANALYSIS.—The Cor-
poration shall conduct additional analysis to more 
accurately reflect dairy and livestock commodities. 
‘‘(8) CARRYOVER COMMODITIES.—The Corpora-
tion shall, to the maximum extent possible, provide 
clarity and direction regarding the coverage and in-
ventory rules for commodities with carryover inven-
tory, including but not limited to, Christmas trees, 
shellfish, nursery, and livestock. 
‘‘(9) QUARANTINE AND BIO-TERRORISM.—The 
Corporation shall, to the maximum extent possible, 
include the peril of quarantine and bio-terrorism as 
insurable causes of loss. 
‘‘(10) LOCAL MARKET VALUE.— 
‘‘(A) The Corporation shall, to the max-
imum extent possible, establish local market 
value for direct marketers by using the best 
available estimate from direct marketers rather 
than commercial buyers. 
‘‘(B) The Corporation shall, to the max-
imum extent possible, require that the value for 
estimating the revenue for the producer’s inten-
tion report for the current year be determined 
at the time the intentions report is filed. 
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163 
‘‘(11) EXCLUSION
FROM
INCOME
REQUIRE-
MENT.—The Corporation shall remove the single 
crop income requirement, currently at 83.35 percent, 
that excludes potatoes from the Adjusted Gross Rev-
enue insurance program. 
‘‘(12) DEFINITION OF ANIMALS.—The Corpora-
tion shall revise the definition of ‘animals’ eligible 
for coverage under the adjusted gross revenue insur-
ance pilot program to ensure that it is inclusive of 
production agriculture, specifically adding fryers and 
shellfish which are licensed commercial producers 
under the local approving authority in a certified 
growing area. For purposes of this section, a pro-
ducer who can document an insurable interest in 
livestock shall be eligible for inclusion in AGR and 
AGR–Lite policies. 
‘‘(13) BEGINNING FARMERS.—The Corporation 
shall develop a pilot program that provides opportu-
nities for beginning farmers to utilize the adjusted 
gross revenue insurance program, such as, providing 
special consideration for premium rates to be estab-
lished based on similar farms historical information. 
‘‘(14) SMALL FARMERS.—The Corporation shall 
develop a pilot program that provides opportunities 
for small farmers to utilize the adjusted gross rev-
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164 
enue insurance program, such as, providing stream-
lined, reasonably priced coverage. 
‘‘(15) LATE
FISCAL
YEAR
INCOME
TAX
FIL-
ERS.—The Corporation shall, to the maximum ex-
tent possible, revise program requirements to ensure 
that producers that file income taxes in a fiscal year 
that does not match the calendar year are treated 
equitably to calendar year tax filers, such as, pay-
ment of premiums during or after the insurance year 
and requirements for multiple years of a producer’s 
intention report. 
‘‘(16) COMMODITIES PRODUCED FOR FEED.— 
The Corporation shall, to the maximum extent pos-
sible, revise program requirements to include com-
modities produced for on-farm feed as an intended 
commodity.’’. 
SEC. 703. CROP INSURANCE INCENTIVES FOR BEGINNING 
FARMERS. 
Subsection (e)(2) of section 508 of the Federal Crop 
Insurance Act (7 U.S.C. 1524) is amended— 
(1) by inserting after paragraph (G) the fol-
lowing new paragraph: 
‘‘(H) The portion of the premium paid by 
the Corporation, in subparagraphs (B), (C), 
(D), (E), (F), and (G) shall be increased by 50 
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165 
percent for beginning farmers, as defined by 
USDA, in their first year of farming and de-
creasing by 10 percentage points each year for 
5 years thereafter.’’. 
SEC. 704. CROP INSURANCE APPEALS. 
Subsection (j)(2) of section 508 of the Federal Crop 
Insurance Act (7 U.S.C. 1524) is amended— 
(1) in subparagraph (A) by striking ‘‘only’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(C) The Secretary shall establish alter-
native claims procedures under which the Cor-
poration, or an approved provider, can settle 
appeals for denied claims which utilizes the 
State committee of the Farm Service Agency as 
a third-party arbiter.’’. 
SEC. 705. EXPANDED COVERAGE BASED ON HISTORICAL 
DATA. 
Subsection (d)(3) of section 522 of the Federal Crop 
Insurance Act (7 U.S.C. 1524) is amended by inserting 
after paragraph (G) the following new paragraph: 
‘‘(H) to develop policies or other risk man-
agement tools that provide protection for all 
crops and/or commodities produced commer-
cially within each county, utilizing the pro-
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166 
ducers historical production as the basis for 
protection.’’. 
SEC. 706. COVERAGE AREA FLEXIBILITY. 
Subsection (a) of section 508 of the Federal Crop In-
surance Act (7 U.S.C. 1524) is amended by inserting after 
paragraph (8) the following new paragraph: 
‘‘(9) COVERAGE AREA FLEXIBILITY.—Notwith-
standing any other provisions of this title, the Cor-
poration shall provide flexibility to producers to sep-
arate insurance units for each FSA tract or to use 
section equivalents where mile-square section surveys 
are not in effect.’’. 
SEC. 707. PROVISION OF ORGANIC INSURANCE PROGRAMS. 
(a) IN GENERAL.—Section 508(d) of the Federal 
Crop Insurance Act (7 U.S.C. 1508) is amended by insert-
ing after paragraph (c) the following: 
‘‘(d) SURCHARGE PROHIBITION.—The Corporation 
may not require producers to pay a premium surcharge 
for using scientifically sound sustainable and organic 
farming practices and systems.’’. 
(b) ORGANIC COMMODITIES.—Section 508(c) of the 
Federal Crop Insurance Act (7 U.S.C. 1508) is amended 
by adding a new (5)(C)(v) as follows: 
‘‘(v) in the case of organic commod-
ities, shall be, no later than October 1, 
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2009, the expected or the actual organic 
market price of the agricultural com-
modity, as determined by the Corpora-
tion.’’. 
SEC. 708. EDUCATION AND RISK MANAGEMENT ASSIST-
ANCE. 
Section 524(a)(3) of the Federal Crop Insurance Act 
(7 U.S.C. 1524) is amended in subparagraph (C) by strik-
ing ‘‘2’’ and inserting ‘‘3’’. 
TITLE VIII—DAIRY 
SEC. 801. CONTINUATION OF THE MILK INCOME LOSS CON-
TRACT PROGRAM. 
(a) CONTINUATION OF PROGRAM; PAYMENT PER-
CENTAGE RATE.—Section 1502(c)(3)(C) of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
7982(c)(3)(C)) is amended by striking ‘‘0 percent’’ and 
inserting ‘‘and ending on September 30, 2013, 45 per-
cent’’. 
(b) 
MAXIMUM
PAYMENT
QUANTITY.—Section 
1502(d)(2)) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7982(d)(2)) is amended in the first 
sentence by striking ‘‘2,400,000 pounds’’ and inserting 
‘‘4,800,000 pounds’’. 
(c) CONTRACT SIGNUP
AND DURATION.—Section 
1502 of the Farm Security and Rural Investment Act of 
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168 
2002 (7 U.S.C. 7982) is amended in subsections (f) and 
(g)(1) by striking ‘‘September 30, 2007’’ each place it ap-
pears and inserting ‘‘September 30, 2013’’. 
SEC. 802. MINIMUM PRICE FOR CLASS I MILK UNDER FED-
ERAL MILK MARKETING ORDERS. 
Section 8c(5) of the Agricultural Adjustment Act (7 
U.S.C. 608c(5)), reenacted with amendments by the Agri-
cultural Marketing Agreement Act of 1937, is amended 
by adding at the end the following: 
‘‘(P) CLASS I MILK PRICING.— 
‘‘(i) 
MINIMUM
PRICE.—Notwith-
standing any other provision of law, begin-
ning on October 1, 2007, the minimum 
price for Class I milk under each Federal 
milk marketing order issued under this 
subsection shall be $15.58 per hundred-
weight. 
‘‘(ii) ADJUSTMENT FOR INFLATION.— 
‘‘(I) IN GENERAL.—Beginning on 
October 1, 2008, and each October 1 
thereafter, the amount in clause (i) 
shall be adjusted by the percent that 
equals the total percentage change for 
the 12-month period ending the pre-
ceding June 30 in the Consumer Price 
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