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insurance industry (including producers and ap-
proved insurance providers and agents, includ-
ing providers and agents with experience selling
discount crop insurance products).
‘‘(D) REVIEW OF STUDY.—The independent
entity selected by Secretary under subparagraph
(A) shall seek comments from interested stake-
holders before finalizing the report of the entity.
‘‘(E) REPORT.—Not later than 18 months
after the date of enactment of the Food and En-
ergy Security Act of 2007, the Secretary shall
submit to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Sen-
ate a report that describes the results and rec-
ommendations of the study.’’.
SEC. 1909. ENTERPRISE AND WHOLE FARM UNITS.
Section 508(e) of Federal Crop Insurance Act (7
U.S.C. 1508(e)) is amended by adding at the end the fol-
lowing:
‘‘(6) ENTERPRISE AND WHOLE FARM UNITS.—
‘‘(A) IN GENERAL.—The Corporation may
carry out a pilot program under which the Cor-
poration pays a portion of the premiums for
plans or policies of insurance for which the in-
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surable unit is defined on a whole farm or enter-
prise unit basis that is higher than would other-
wise be paid in accordance with paragraph (2)
for policyholders that convert from a plan or pol-
icy of insurance for which the insurable unit is
defined on optional or basic unit basis.
‘‘(B) ELIGIBILITY.—To be eligible to par-
ticipate in a pilot program established under
this paragraph, a policyholder shall—
‘‘(i) have purchased additional cov-
erage for the 2005 crop on an optional or
basic unit basis for at least 90 percent of
the acreage to be covered by enterprise or
whole farm unit policy for the current crop;
and
‘‘(ii) purchase the enterprise or whole
farm unit policy at not less than the highest
coverage level that was purchased for the
acreage for the 2005 crop.
‘‘(C) AMOUNT.—
‘‘(i) IN GENERAL.—The amount of the
premium per acre paid by the Corporation
to a policyholder for a policy with an enter-
prise and whole farm unit under this para-
graph shall be, the maximum extent prac-
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ticable, equal to the average dollar amount
of subsidy per acre paid by the Corporation
under paragraph (2) for a basic or optional
unit.
‘‘(ii) LIMITATION.—The amount of the
premium paid by the Corporation under
this paragraph may not exceed the total
premium for the enterprise or whole farm
unit policy.
‘‘(D) CONVERSION OF PILOT TO A PERMA-
NENT
PROGRAM.—Not earlier than 180 days
after the date of enactment of this paragraph, the
Corporation may convert the pilot program de-
scribed in this paragraph to a permanent pro-
gram if the Corporation has—
‘‘(i) carried out the pilot program;
‘‘(ii) analyzed the results of the pilot
program; and
‘‘(iii) submitted to Congress a report
describing the results of the analysis.’’.
SEC. 1910. DENIAL OF CLAIMS.
Section 508(j)(2)(A) of the Federal Crop Insurance Act
(7 U.S.C. 1508(j)(2)(A)) is amended by inserting ‘‘on behalf
of the Corporation’’ after ‘‘approved provider’’.
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SEC. 1911. MEASUREMENT OF FARM-STORED COMMODITIES.
Section 508(j) of the Federal Crop Insurance Act (7
U.S.C. 1508(j)) is amended by adding at the end the fol-
lowing:
‘‘(5) MEASUREMENT OF FARM-STORED COMMOD-
ITIES.—Beginning with the 2009 crop year, for the
purpose of determining the amount of any insured
production loss sustained by a producer and the
amount of any indemnity to be paid under a plan of
insurance—
‘‘(A) a producer may elect, at the expense of
the producer, to have the Farm Service Agency
measure the quantity of the commodity; and
‘‘(B) the results of the measurement shall be
used as the evidence of the quantity of the com-
modity that was produced.’’.
SEC. 1912. REIMBURSEMENT RATE.
Section 508(k)(4) of the Federal Crop Insurance Act
(7 U.S.C. 1508(k)(4)) (as amended by section 1906(2)) is
amended—
(1) in subparagraph (A), by striking ‘‘Except as
provided in subparagraph (B)’’ and inserting ‘‘Ex-
cept as otherwise provided in this paragraph’’; and
(2) by adding at the end the following:
‘‘(E) REIMBURSEMENT RATE REDUCTION.—
For each of the 2009 and subsequent reinsurance
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years, the reimbursement rates for administra-
tive and operating costs shall be 2 percentage
points below the rates in effect as of the date of
enactment of the Food and Energy Security Act
of 2007 for all crop insurance policies used to de-
fine loss ratio, except that the reduction shall not
apply in a reinsurance year to the total pre-
mium written in a State in which the State loss
ratio is greater than 1.2.
‘‘(F) REIMBURSEMENT
RATE
FOR
AREA
POLICIES AND PLANS OF INSURANCE.—Notwith-
standing subparagraphs (A) through (E), for
each of the 2009 and subsequent reinsurance
years, the reimbursement rate for area policies
and plans of insurance shall be 17 percent of the
premium used to define loss ratio for that rein-
surance year.’’.
SEC. 1913. RENEGOTIATION OF STANDARD REINSURANCE
AGREEMENT.
Section 508(k) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)) is amended by adding at the end the fol-
lowing:
‘‘(8) RENEGOTIATION
OF
STANDARD
REINSUR-
ANCE AGREEMENT.—
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‘‘(A) IN
GENERAL.—Notwithstanding sec-
tion 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), the
Corporation may renegotiate the financial terms
and conditions of each Standard Reinsurance
Agreement—
‘‘(i) following the reinsurance year
ending June 30, 2012;
‘‘(ii) once during each period of 5 rein-
surance years thereafter; and
‘‘(iii) subject to subparagraph (B), in
any case in which the approved insurance
providers, as a whole, experience unexpected
adverse circumstances, as determined by the
Secretary.
‘‘(B) NOTIFICATION REQUIREMENT.—If the
Corporation renegotiates a Standard Reinsur-
ance Agreement under subparagraph (A)(iii), the
Corporation shall notify the Committee on Agri-
culture of the House of Representatives and the
Committee on Agriculture, Nutrition, and For-
estry of the Senate of the renegotiation.
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‘‘(C) CONSULTATION.—The approved insur-
ance providers may confer with each other and
collectively with the Corporation during any re-
negotiation under subparagraph (A).’’.
SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAY-
MENTS FOR UNDERWRITING GAINS.
Section 508(k) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)) (as amended by section 1912) is amended
by adding at the end the following:
‘‘(9) DUE
DATE
FOR
PAYMENT
OF
UNDER-
WRITING GAINS.—Effective beginning with the 2011
reinsurance year, the Corporation shall make pay-
ments for underwriting gains under this title on—
‘‘(A) for the 2011 reinsurance year, October
1, 2012; and
‘‘(B) for each reinsurance year thereafter,
October 1 of the following calendar year.’’.
SEC. 1915. ACCESS TO DATA MINING INFORMATION.
(a) IN GENERAL.—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.—The Secretary’’; and
(2) by adding at the end the following:
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‘‘(B) ACCESS
TO
DATA
MINING
INFORMA-
TION.—
‘‘(i) IN GENERAL.—The Secretary shall
establish a fee-for-access program under
which approved insurance providers pay to
the Secretary a user fee in exchange for ac-
cess to the data mining system established
under subparagraph (A) for the purpose of
assisting in fraud and abuse detection.
‘‘(ii) PROHIBITION.—
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), the Corpora-
tion shall not impose a requirement on
approved insurance providers to access
the data mining system established
under subparagraph (A).
‘‘(II) ACCESS WITHOUT FEE.—If
the Corporation requires approved in-
surance providers to access the data
mining system established under sub-
paragraph (A), including for quality
assurance purposes under the Standard
Reinsurance Agreement access will be
provided without charge to the extent
necessary to fulfill the requirements.
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‘‘(iii) ACCESS LIMITATION.—In estab-
lishing the program under clause (i), the
Secretary shall ensure that an approved in-
surance provider has access only to infor-
mation relating to the policies or plans of
insurance for which the approved insurance
provider provides insurance coverage, in-
cluding any information relating to—
‘‘(I) information of agents and
adjusters relating to policies for which
the approved insurance provider pro-
vides coverage;
‘‘(II) the other policies or plans of
an insured that are insured through
another approved insurance providers;
and
‘‘(III) the policies or plans of an
insured 
for 
prior 
crop 
insurance
years.’’.
(b) INSURANCE FUND.—Section 516 of the Federal
Crop Insurance Act (7 U.S.C. 1516) is amended—
(1) in subsection (b), by adding at the end the
following:
‘‘(3) DATA
MINING
SYSTEM.—The Corporation
shall use amounts deposited in the insurance fund es-
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tablished under subsection (c) from fees collected
under section 515(j)(2)(B) to administer and carry
out improvements to the data mining system under
that section.’’; and
(2) in subsection (c)(1)—
(A) by striking ‘‘and civil’’ and inserting
‘‘civil’’; and
(B) by inserting ‘‘and fees collected under
section 515(j)(2)(B)(i),’’ after ‘‘section 515(h),’’.
SEC. 1916. PRODUCER ELIGIBILITY.
Section 520(2) of the Federal Crop Insurance Act (7
U.S.C. 1520(2)) is amended by inserting ‘‘or is a person
who raises livestock owned by other persons (that is not cov-
ered by insurance under this title by another person)’’ after
‘‘sharecropper’’.
SEC. 1917. CONTRACTS FOR ADDITIONAL CROP POLICIES.
Section 522(c) of the Federal Crop Insurance Act (7
U.S.C. 1522) is amended—
(1) by redesignating paragraph (10) as para-
graph (14); and
(2) by inserting after paragraph (9) the fol-
lowing:
‘‘(10) ENERGY CROP INSURANCE POLICY.—
‘‘(A) DEFINITION
OF
DEDICATED
ENERGY
CROP.—In this subsection, the term ‘dedicated
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energy crop’ means an annual or perennial crop
that—
‘‘(i) is grown expressly for the purpose
of producing a feedstock for renewable
biofuel, renewable electricity, or bio-based
products; and
‘‘(ii) is not typically used for food,
feed, or fiber.
‘‘(B) AUTHORITY.—The Corporation shall
offer to enter into 1 or more contracts with
qualified entities to carry out research and devel-
opment regarding a policy to insure dedicated
energy crops.
‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of risk
management tools for the production of dedicated
energy crops, including policies and plans of in-
surance that—
‘‘(i) are based on market prices and
yields;
‘‘(ii) to the extent that insufficient
data exist to develop a policy based on mar-
ket prices and yields, evaluate the policies
and plans of insurance based on the use of
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weather or rainfall indices to protect the in-
terests of crop producers; and
‘‘(iii) provide protection for production
or revenue losses, or both.
‘‘(11) AQUACULTURE INSURANCE POLICY.—
‘‘(A) DEFINITION
OF
AQUACULTURE.—In
this subsection:
‘‘(i) IN
GENERAL.—The term ‘aqua-
culture’ means the propagation and rearing
of aquatic species in controlled or selected
environments, including shellfish cultivation
on grants or leased bottom and ocean
ranching.
‘‘(ii) EXCLUSION.—The term ‘aqua-
culture’ does not include the private ocean
ranching of Pacific salmon for profit in
any State in which private ocean ranching
of Pacific salmon is prohibited by any law
(including regulations).
‘‘(B) AUTHORITY.—The Corporation shall
offer to enter into 1 or more contracts with
qualified entities to carry out research and devel-
opment regarding a policy to insure aquaculture
operations.
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‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of risk
management tools for the production of fish and
other seafood in aquaculture operations, includ-
ing policies and plans of insurance that—
‘‘(i) are based on market prices and
yields;
‘‘(ii) to the extent that insufficient
data exist to develop a policy based on mar-
ket prices and yields, evaluate how best to
incorporate insuring of aquaculture oper-
ations into existing policies covering ad-
justed gross revenue; and
‘‘(iii) provide protection for production
or revenue losses, or both.
‘‘(12) ORGANIC CROP PRODUCTION COVERAGE IM-
PROVEMENTS.—
‘‘(A) IN
GENERAL.—Not later than 180
days after the date of enactment of this para-
graph, the Corporation shall offer to enter into
1 or more contracts with qualified entities for the
development of improvements in Federal crop in-
surance policies covering organic crops.
‘‘(B) PRICE ELECTION.—
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‘‘(i) 
IN
GENERAL.—The 
contracts
under subparagraph (A) shall include the
development of procedures (including any
associated changes in policy terms or mate-
rials required for implementation of the
procedures) to offer producers of organic
crops a price election that would reflect the
actual retail or wholesale prices, as appro-
priate, received by producers for organic
crops, as established using data collected
and maintained by the Agricultural Mar-
keting Service.
‘‘(ii) DEADLINE.—The development of
the procedures required under clause (i)
shall be completed not later than the date
necessary to allow the Corporation to offer
the price election—
‘‘(I) beginning in the 2009 rein-
surance year for organic crops with
adequate data available; and
‘‘(II) subsequently for additional
organic crops as data collection for
those organic crops is sufficient, as de-
termined by the Corporation.
‘‘(13) SKIPROW CROPPING PRACTICES.—
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‘‘(A) IN GENERAL.—The Corporation shall
offer to enter into a contract with a qualified en-
tity to carry out research into needed modifica-
tions of policies to insure corn and sorghum pro-
duced in the Central Great Plains (as deter-
mined by the Agricultural Research Service)
through use of skiprow cropping practices.
‘‘(B) RESEARCH.—Research described in
subparagraph (A) shall—
‘‘(i) 
review 
existing 
research 
on
skiprow cropping practices and actual pro-
duction history of producers using skiprow
cropping practices; and
‘‘(ii) evaluate the effectiveness of risk
management tools for producers using
skiprow cropping practices, including—
‘‘(I) the appropriateness of rules
in existence as of the date of enactment
of this paragraph relating to the deter-
mination 
of 
acreage 
planted 
in
skiprow patterns; and
‘‘(II) whether policies for crops
produced through skiprow cropping
practices reflect actual production ca-
pabilities.’’.
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SEC. 1918. RESEARCH AND DEVELOPMENT.
(a) REIMBURSEMENT AUTHORIZED.—Section 522(b)
of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is
amended by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) RESEARCH AND DEVELOPMENT REIMBURSE-
MENT.—The Corporation shall provide a payment to
reimburse an applicant for research and development
costs directly related to a policy that—
‘‘(A) is submitted to, and approved by, the
Board pursuant to a FCIC reimbursement grant
under paragraph (7); or
‘‘(B) is—
‘‘(i) submitted to the Board and ap-
proved by the Board under section 508(h)
for reinsurance; and
‘‘(ii) 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:
‘‘(7) FCIC REIMBURSEMENT GRANTS.—
‘‘(A) GRANTS AUTHORIZED.—The Corpora-
tion shall provide FCIC reimbursement grants to
persons (referred to in this paragraph as ‘sub-
mitters’) proposing to prepare for submission to
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the Board crop insurance policies and provisions
under subparagraphs (A) and (B) of section
508(h)(1), that apply and are approved for the
FCIC reimbursement grants under this para-
graph.
‘‘(B) SUBMISSION OF APPLICATION.—
‘‘(i) IN GENERAL.—The Board shall re-
ceive and consider applications for FCIC
reimbursement grants at least once each
year.
‘‘(ii) REQUIREMENTS.—An application
to receive a FCIC reimbursement grant
from the Corporation shall consist of such
materials as the Board may require,
including—
‘‘(I) a concept paper that de-
scribes the proposal in sufficient detail
for the Board to determine whether the
proposal satisfies the requirements of
subparagraph (C); and
‘‘(II) a description of—
‘‘(aa) the need for the prod-
uct, including an assessment of
marketability and expected de-
mand among affected producers;
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‘‘(bb) 
support 
from 
pro-
ducers, producer organizations,
lenders, or other interested par-
ties; and
‘‘(cc) the impact the product
would have on producers and on
the crop insurance delivery sys-
tem; and
‘‘(III) a statement that no prod-
ucts are offered by the private sector
that provide the same benefits and risk
management services as the proposal;
‘‘(IV) a summary of data sources
available that demonstrate that the
product can reasonably be developed
and properly rated; and
‘‘(V) an identification of the risks
the proposed product will cover and an
explanation of how the identified risks
are insurable under this title.
‘‘(C) APPROVAL CONDITIONS.—
‘‘(i) IN GENERAL.—A majority vote of
the Board shall be required to approve an
application for a FCIC reimbursement
grant.
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‘‘(ii) 
REQUIRED
FINDINGS.—The
Board shall approve the application if the
Board finds that—
‘‘(I) the proposal contained in the
application—
‘‘(aa) provides coverage to a
crop or region not traditionally
served by the Federal crop insur-
ance program;
‘‘(bb) provides crop insur-
ance coverage in a significantly
improved form;
‘‘(cc) addresses a recognized
flaw or problem in the Federal
crop insurance program or an ex-
isting product;
‘‘(dd) introduces a signifi-
cant new concept or innovation to
the Federal crop insurance pro-
gram; or
‘‘(ee) provides coverage or
benefits not available from the
private sector;
‘‘(II) the submitter demonstrates
the necessary qualifications to complete