1302 
(D) any other factors the Secretary con-
siders appropriate. 
(3) REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Secretary shall 
submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate a 
report that includes the findings of the study and 
any related policy recommendations. 
SEC. 12015. TIME FOR REIMBURSEMENT. 
Section 508(k)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(4)) is amended by adding at the end 
the following: 
‘‘(D) TIME FOR REIMBURSEMENT.—Effec-
tive beginning with the 2012 reinsurance year, 
the Corporation shall reimburse approved insur-
ance providers and agents for the allowable ad-
ministrative and operating costs of the pro-
viders and agents as soon as practicable after 
October 1 (but not later than October 31) after 
the reinsurance year for which reimbursements 
are earned.’’. 
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SEC. 12016. REIMBURSEMENT RATE. 
Section 508(k)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(4)) (as amended by section 12015) 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
REDUC-
TION.—In the case of a policy of additional cov-
erage that received a rate of reimbursement for 
administrative and operating costs for the 2008 
reinsurance year, for each of the 2009 and sub-
sequent reinsurance years, the reimbursement 
rate for administrative and operating costs shall 
be 2.3 percentage points below the rates in ef-
fect as of the date of enactment of the Food, 
Conservation, and Energy Act of 2008 for all 
crop insurance policies used to define loss ratio, 
except that only 1⁄2 of the reduction shall apply 
in a reinsurance year to the total premium writ-
ten in a State in which the State loss ratio is 
greater than 1.2. 
‘‘(F) REIMBURSEMENT
RATE
FOR
AREA 
POLICIES
AND
PLANS
OF
INSURANCE.—Not-
withstanding subparagraphs (A) through (E), 
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for each of the 2009 and subsequent reinsur-
ance years, the reimbursement rate for area 
policies and plans of insurance widely available 
as of the date of enactment of this subpara-
graph shall be 12 percent of the premium used 
to define loss ratio for that reinsurance year.’’. 
SEC. 12017. 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.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), notwithstanding section 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) to be effective for the 2011 rein-
surance year beginning July 1, 2010; and 
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‘‘(ii) once during each period of 5 re-
insurance years thereafter. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ADVERSE
CIRCUMSTANCES.— 
Subject to clause (ii), subparagraph (A) 
shall not apply in any case in which the 
approved insurance providers, as a whole, 
experience 
unexpected 
adverse 
cir-
cumstances, as determined by the Sec-
retary. 
‘‘(ii) EFFECT
OF
FEDERAL
LAW 
CHANGES.—If Federal law is enacted after 
the date of enactment of this paragraph 
that requires revisions in the financial 
terms of the Standard Reinsurance Agree-
ment, and changes in the Agreement are 
made on a mandatory basis by the Cor-
poration, the changes shall not be consid-
ered to be a renegotiation of the Agree-
ment for purposes of subparagraph (A). 
‘‘(C) NOTIFICATION
REQUIREMENT.—If 
the Corporation renegotiates a Standard Rein-
surance 
Agreement 
under 
subparagraph 
(A)(iii), the Corporation shall notify the Com-
mittee on Agriculture of the House of Rep-
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resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate of the re-
negotiation. 
‘‘(D) CONSULTATION.—The approved in-
surance providers may confer with each other 
and collectively with the Corporation during any 
renegotiation under subparagraph (A). 
‘‘(E) 2011 REINSURANCE YEAR.— 
‘‘(i) IN
GENERAL.—As part of the 
Standard Reinsurance Agreement renegoti-
ation 
authorized 
under 
subparagraph 
(A)(i), the Corporation shall consider alter-
native methods to determine reimburse-
ment rates for administrative and oper-
ating costs. 
‘‘(ii) ALTERNATIVE METHODS.—Alter-
natives considered under clause (i) shall in-
clude— 
‘‘(I) methods that— 
‘‘(aa) are graduated and 
base reimbursement rates in a 
State on changes in premiums in 
that State; 
‘‘(bb) are graduated and 
base reimbursement rates in a 
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State on the loss ratio for crop 
insurance for that State; and 
‘‘(cc) are graduated and 
base reimbursement rates on in-
dividual policies on the level of 
total premium for each policy; 
and 
‘‘(II) any other method that 
takes into account current financial 
conditions of the program and ensures 
continued availability of the program 
to producers on a nationwide basis.’’. 
SEC. 12018. 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 12017) is amend-
ed 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, Octo-
ber 1, 2012; and 
‘‘(B) for each reinsurance year thereafter, 
October 1 of the following calendar year.’’. 
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SEC. 12019. MALTING BARLEY. 
Section 508(m) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(m)) is amended by adding at the end the 
following: 
‘‘(5) SPECIAL PROVISIONS FOR MALTING BAR-
LEY.—The Corporation shall promulgate special pro-
visions under this subsection specific to malting bar-
ley, taking into consideration any changes in quality 
factors, as required by applicable market condi-
tions.’’. 
SEC. 12020. CROP PRODUCTION ON NATIVE SOD. 
(a) FEDERAL CROP INSURANCE.—Section 508 of the 
Federal Crop Insurance Act (7 U.S.C. 1508) is amended 
by adding at the end the following: 
‘‘(o) CROP PRODUCTION ON NATIVE SOD.— 
‘‘(1) DEFINITION OF NATIVE SOD.—In this sub-
section, the term ‘native sod’ means land— 
‘‘(A) on which the plant cover is composed 
principally of native grasses, grasslike plants, 
forbs, or shrubs suitable for grazing and brows-
ing; and 
‘‘(B) that has never been tilled for the pro-
duction of an annual crop as of the date of en-
actment of this subsection. 
‘‘(2) INELIGIBILITY FOR BENEFITS.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and paragraph (3), native sod acre-
age that has been tilled for the production of an 
annual crop after the date of enactment of this 
subsection shall be ineligible during the first 5 
crop years of planting, as determined by the 
Secretary, for benefits under— 
‘‘(i) this title; and 
‘‘(ii) section 196 of the Federal Agri-
culture Improvement and Reform Act of 
1996 (7 U.S.C. 7333). 
‘‘(B) DE MINIMIS ACREAGE EXEMPTION.— 
The Secretary shall exempt areas of 5 acres or 
less from subparagraph (A). 
‘‘(3) APPLICATION.—Paragraph (2) may apply 
to native sod acreage in the Prairie Pothole National 
Priority Area at the election of the Governor of the 
respective State.’’. 
(b) NONINSURED CROP DISASTER ASSISTANCE.— 
Section 196(a) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333(a)) is amended 
by adding at the end the following: 
‘‘(4) PROGRAM
INELIGIBILITY
RELATING
TO 
CROP PRODUCTION ON NATIVE SOD.— 
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‘‘(A) DEFINITION
OF
NATIVE
SOD.—In 
this paragraph, the term ‘native sod’ means 
land— 
‘‘(i) on which the plant cover is com-
posed principally of native grasses, grass-
like plants, forbs, or shrubs suitable for 
grazing and browsing; and 
‘‘(ii) that has never been tilled for the 
production of an annual crop as of the 
date of enactment of this paragraph. 
‘‘(B) INELIGIBILITY FOR BENEFITS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii) and subparagraph (C), native sod acre-
age that has been tilled for the production 
of an annual crop after the date of enact-
ment of this paragraph shall be ineligible 
during the first 5 crop years of planting, 
as determined by the Secretary, for bene-
fits under— 
‘‘(I) this section; and 
‘‘(II) the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.). 
‘‘(ii) DE
MINIMIS
ACREAGE
EXEMP-
TION.—The Secretary shall exempt areas 
of 5 acres or less from clause (i). 
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‘‘(C) APPLICATION.—Subparagraph (B) 
may apply to native sod acreage in the Prairie 
Pothole National Priority Area at the election 
of the Governor of the respective State.’’. 
SEC. 12021. INFORMATION MANAGEMENT. 
Section 515 of the Federal Crop Insurance Act (7 
U.S.C. 1515) is amended— 
(a) in subsection (j)(3), by adding before the period 
at the end the following: ‘‘, which shall be subject to com-
petition on a periodic basis, as determined by the Sec-
retary’’; and 
(b) by striking subsection (k) and inserting the fol-
lowing: 
‘‘(k) FUNDING.— 
‘‘(1) INFORMATION
TECHNOLOGY.—To carry 
out subsection (j)(1), the Corporation may use, from 
amounts made available from the insurance fund es-
tablished under section 516(c), not more than 
$15,000,000 for each of fiscal years 2008 through 
2011. 
‘‘(2) DATA MINING.—To carry out subsection 
(j)(2), the Corporation may use, from amounts made 
available from the insurance fund established under 
section 516(c), not more than $4,000,000 for fiscal 
year 2009 and each subsequent fiscal year.’’. 
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SEC. 12022. RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—Section 522(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1522(b)) is amended by 
striking paragraphs (1) and (2) and inserting the fol-
lowing: 
‘‘(1) RESEARCH
AND
DEVELOPMENT
PAY-
MENT.— 
‘‘(A) IN GENERAL.—The Corporation shall 
provide a payment to an applicant for research 
and development costs in accordance with this 
subsection. 
‘‘(B) 
REIMBURSEMENT.—An 
applicant 
who submits a policy under section 508(h) shall 
be eligible for the reimbursement of reasonable 
research and development costs directly related 
to the policy if the policy is approved by the 
Board for sale to producers. 
‘‘(2) ADVANCE PAYMENTS.— 
‘‘(A) IN GENERAL.—Subject to the other 
provisions of this paragraph, the Board may 
approve the request of an applicant for advance 
payment of a portion of reasonable research 
and development costs prior to submission and 
approval of the policy by the Board under sec-
tion 508(h). 
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‘‘(B) PROCEDURES.—The Board shall es-
tablish procedures for approving advance pay-
ment of reasonable research and development 
costs to applicants. 
‘‘(C) CONCEPT PROPOSAL.—As a condition 
of eligibility for advance payments, an applicant 
shall submit a concept proposal for the policy 
that the applicant plans to submit to the Board 
under section 508(h), consistent with proce-
dures established by the Board for submissions 
under subparagraph (B), including— 
‘‘(i) a summary of the qualifications 
of the applicant, including any prior con-
cept proposals and submissions to the 
Board under section 508(h) and, if appli-
cable, any work conducted under this sec-
tion; 
‘‘(ii) a projection of total research and 
development costs that the applicant ex-
pects to incur; 
‘‘(iii) a description of the need for the 
policy, the marketability of and expected 
demand for the policy among affected pro-
ducers, and the potential impact of the pol-
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icy on producers and the crop insurance 
delivery system; 
‘‘(iv) a summary of data sources avail-
able to demonstrate that the policy can 
reasonably be developed and actuarially ap-
propriate rates established; and 
‘‘(v) an identification of the risks the 
proposed policy will cover and an expla-
nation of how the identified risks are in-
surable under this title. 
‘‘(D) REVIEW.— 
‘‘(i) EXPERTS.—If the requirements 
of subparagraph (B) and (C) are met, the 
Board may submit a concept proposal de-
scribed in subparagraph (C) to not less 
than 2 independent expert reviewers, 
whose services are appropriate for the type 
of concept proposal submitted, to assess 
the likelihood that the proposed policy 
being developed will result in a viable and 
marketable policy, as determined by the 
Board. 
‘‘(ii) TIMING.—The time frames de-
scribed in subparagraphs (C) and (D) of 
section 508(h)(4) shall apply to the review 
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of concept proposals under this subpara-
graph. 
‘‘(E) APPROVAL.—The Board may approve 
up to 50 percent of the projected total research 
and development costs to be paid in advance to 
an applicant, in accordance with the procedures 
developed by the Board for the making of such 
payments, if, after consideration of the reviewer 
reports described in subparagraph (D) and such 
other information as the Board determines ap-
propriate, the Board determines that— 
‘‘(i) the concept, in good faith, will 
likely result in a viable and marketable pol-
icy consistent with section 508(h); 
‘‘(ii) in the sole opinion of the Board, 
the concept, if developed into a policy and 
approved by the Board, would provide crop 
insurance coverage— 
‘‘(I) in a significantly improved 
form; 
‘‘(II) to a crop or region not tra-
ditionally served by the Federal crop 
insurance program; or 
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‘‘(III) in a form that addresses a 
recognized flaw or problem in the pro-
gram; 
‘‘(iii) the applicant agrees to provide 
such reports as the Corporation determines 
are necessary to monitor the development 
effort; 
‘‘(iv) the proposed budget and time-
table are reasonable; and 
‘‘(v) the concept proposal meets any 
other requirements that the Board deter-
mines appropriate. 
‘‘(F) SUBMISSION
OF
POLICY.—If the 
Board approves an advanced payment under 
subparagraph (E), the Board shall establish a 
date by which the applicant shall present a sub-
mission in compliance with section 508(h) (in-
cluding the procedures implemented under that 
section) to the Board for approval. 
‘‘(G) FINAL PAYMENT.— 
‘‘(i) APPROVED POLICIES.—If a policy 
is submitted under subparagraph (F) and 
approved by the Board under section 
508(h) and the procedures established by 
the Board (including procedures estab-
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lished under subparagraph (B)), the appli-
cant shall be eligible for a payment of rea-
sonable research and development costs in 
the same manner as policies reimbursed 
under paragraph (1)(B), less any pay-
ments made pursuant to subparagraph 
(E). 
‘‘(ii) POLICIES NOT APPROVED.—If a 
policy is submitted under subparagraph 
(F) and is not approved by the Board 
under section 508(h), the Corporation 
shall— 
‘‘(I) not seek a refund of any 
payments made in accordance with 
this paragraph; and 
‘‘(II) not make any further re-
search and development cost pay-
ments associated with the submission 
of the policy under this paragraph. 
‘‘(H) POLICY NOT SUBMITTED.—If an ap-
plicant receives an advance payment and fails 
to fulfill the obligation of the applicant to the 
Board by not submitting a completed submis-
sion without just cause and in accordance with 
the procedures established under subparagraph 
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(B)), including notice and reasonable oppor-
tunity to respond, as determined by the Board, 
the applicant shall return to the Board the 
amount of the advance plus interest. 
‘‘(I) REPEATED SUBMISSIONS.—The Board 
may prohibit advance payments to applicants 
who have submitted— 
‘‘(i) a concept proposal or submission 
that did not result in a marketable prod-
uct; or 
‘‘(ii) a concept proposal or submission 
of poor quality. 
‘‘(J) CONTINUED
ELIGIBILITY.—A deter-
mination that an applicant is not eligible for 
advance payments under this paragraph shall 
not prevent an applicant from reimbursement 
under paragraph (1)(B).’’. 
(b) CONFORMING AMENDMENTS.—Section 522(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is 
amended— 
(1) in paragraph (3), by striking ‘‘or (2)’’; and 
(2) in paragraph (4)(A), by striking ‘‘and 
(2)’’.’’ 
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SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND 
STUDIES. 
Section 522(c) of the Federal Crop Insurance Act (7 
U.S.C. 1522) is amended— 
(1) by redesignating paragraph (10) as para-
graph (17); and 
(2) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION 
COVERAGE IMPROVEMENTS.— 
‘‘(A) CONTRACTS
REQUIRED.—Not later 
than 180 days after the date of enactment of 
the Food, Conservation, and Energy Act of 
2008, the Corporation shall enter into 1 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 established 
under the Organic Foods Production Act of 
1990 (7 U.S.C. 6501 et seq.). 
‘‘(B) REVIEW
OF
UNDERWRITING
RISK 
AND LOSS EXPERIENCE.— 
‘‘(i) REVIEW REQUIRED.— 
‘‘(I) IN
GENERAL.—A contract 
under subparagraph (A) shall include 
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a review of the underwriting, risk, and 
loss experience of organic crops cov-
ered by the Corporation, as compared 
with the same crops produced in the 
same counties and during the same 
crop years using nonorganic methods. 
‘‘(II) REQUIREMENTS.—The re-
view shall— 
‘‘(aa) to the maximum ex-
tent practicable, be designed to 
allow the Corporation to deter-
mine whether significant, con-
sistent, or systemic variations in 
loss history exist between organic 
and nonorganic production; 
‘‘(bb) include the widest 
available range of data collected 
by the Secretary and other out-
side sources of information; and 
‘‘(cc) not be limited to loss 
history under existing crop insur-
ance policies. 
‘‘(ii) EFFECT
ON
PREMIUM
SUR-
CHARGE.—Unless the review under this 
subparagraph documents the existence of 
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significant, consistent, and systemic vari-
ations in loss history between organic and 
nonorganic crops, either collectively or on 
an individual crop basis, the Corporation 
shall eliminate or reduce the premium sur-
charge that the Corporation charges for 
coverage for organic crops, as determined 
in accordance with the results. 
‘‘(iii) ANNUAL UPDATES.—Beginning 
with the 2009 crop year, the review under 
this subparagraph shall be updated on an 
annual basis as data is accumulated by the 
Secretary and other sources, so that the 
Corporation may make determinations re-
garding adjustments to the surcharge in a 
timely manner as quickly as evolving prac-
tices and data trends allow. 
‘‘(C) ADDITIONAL PRICE ELECTION.— 
‘‘(i) IN GENERAL.—A contract under 
subparagraph (A) shall include the devel-
opment of a procedure, including any asso-
ciated changes in policy terms or materials 
required for implementation of the proce-
dure, to offer producers of organic crops 
an additional price election that reflects ac-
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tual prices received by organic producers 
for crops from the field (including appro-
priate retail and wholesale prices), as es-
tablished using data collected and main-
tained by the Secretary or from other 
sources. 
‘‘(ii) TIMING.—The development of 
the procedure shall be completed in a time-
ly manner to allow the Corporation to 
begin offering the additional price election 
for organic crops with sufficient data for 
the 2010 crop year. 
‘‘(iii) 
EXPANSION.—The 
procedure 
shall be expanded as quickly as practicable 
as additional data on prices of organic 
crops collected by the Secretary and other 
sources of information becomes available, 
with a goal of applying this procedure to 
all organic crops not later than the fifth 
full crop year that begins after the date of 
enactment of Food, Conservation, and En-
ergy Act of 2008. 
‘‘(D) REPORTING REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—The Corporation 
shall submit to the Committee on Agri-
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culture of the House of Representatives 
and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate an annual 
report on progress made in developing and 
improving Federal crop insurance for or-
ganic crops, including— 
‘‘(I) the numbers and varieties of 
organic crops insured; 
‘‘(II) the development of new in-
surance approaches; and 
‘‘(III) the progress of imple-
menting the initiatives required under 
this paragraph, including the rate at 
which additional price elections are 
adopted for organic crops. 
‘‘(ii) RECOMMENDATIONS.—The re-
port shall include such recommendations 
as the Corporation considers appropriate 
to improve Federal crop insurance cov-
erage for organic crops. 
‘‘(11) ENERGY CROP INSURANCE POLICY.— 
‘‘(A) DEFINITION OF DEDICATED ENERGY 
CROP.—In this subsection, the term ‘dedicated 
energy crop’ means an annual or perennial crop 
that— 
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‘‘(i) is grown expressly for the purpose 
of producing a feedstock for renewable 
biofuel, renewable electricity, or biobased 
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 de-
velopment regarding a policy to insure dedi-
cated 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 insurance that— 
‘‘(i) are based on market prices and 
yields; 
‘‘(ii) to the extent that insufficient 
data exist to develop a policy based on 
market prices and yields, evaluate the poli-
cies and plans of insurance based on the 
use of weather or rainfall indices to protect 
the interests of crop producers; and 
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‘‘(iii) provide protection for production 
or revenue losses, or both. 
‘‘(12) 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.— 
‘‘(i) IN GENERAL.—As soon as prac-
ticable after the date of enactment of the 
Food, Conservation, and Energy Act of 
2008, the Corporation shall offer to enter 
into 3 or more contracts with qualified en-
tities to carry out research and develop-
ment regarding a policy to insure the pro-
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duction of aquacultural species in aqua-
culture operations. 
‘‘(ii) BIVALVE SPECIES.—At least 1 of 
the contracts described in clause (i) shall 
address insurance of bivalve species, in-
cluding— 
‘‘(I) 
American 
oysters 
(crassostrea virginica); 
‘‘(II) hard clams (mercenaria 
mercenaria); 
‘‘(III) Pacific oysters (crassostrea 
gigas); 
‘‘(IV) 
Manila 
clams 
(tapes 
phillipinnarium); or 
‘‘(V) 
blue 
mussels 
(mytilus 
edulis). 
‘‘(iii) 
FRESHWATER
SPECIES.—At 
least 1 of the contracts described in clause 
(i) shall address insurance of freshwater 
species, including— 
‘‘(I) catfish (icataluridae); 
‘‘(II) 
rainbow 
trout 
(oncorhynchus mykiss); 
‘‘(III) 
largemouth 
bass 
(micropterus salmoides); 
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‘‘(IV) 
striped 
bass 
(morone 
saxatilis); 
‘‘(V) bream (abramis brama); 
‘‘(VI) shrimp (penaeus); or 
‘‘(VII) 
tilapia 
(oreochromis 
niloticus). 
‘‘(iv) SALTWATER SPECIES.—At least 
1 of the contracts described in clause (i) 
shall address insurance of saltwater spe-
cies, including— 
‘‘(I) 
Atlantic 
salmon 
(salmo 
salar); or 
‘‘(II) shrimp (penaeus). 
‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of 
policies and plans of insurance for the produc-
tion of aquacultural species in aquaculture op-
erations, including policies and plans of insur-
ance that— 
‘‘(i) are based on market prices and 
yields; 
‘‘(ii) to the extent that insufficient 
data exist to develop a policy based on 
market prices and yields, evaluate how best 
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to incorporate insuring of production of 
aquacultural species in aquaculture oper-
ations into existing policies covering ad-
justed gross revenue; and 
‘‘(iii) provide protection for production 
or revenue losses, or both. 
‘‘(13) POULTRY INSURANCE POLICY.— 
‘‘(A) DEFINITION OF POULTRY.—In this 
paragraph, the term ‘poultry’ has the meaning 
given the term in section 2(a) of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 182(a)). 
‘‘(B) AUTHORITY.—The Corporation shall 
offer to enter into 1 or more contracts with 
qualified entities to carry out research and de-
velopment regarding a policy to insure commer-
cial poultry production. 
‘‘(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 
poultry, including policies and plans of insur-
ance that provide protection for production or 
revenue losses, or both, while the poultry is in 
production. 
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‘‘(14) APIARY
POLICIES.—The Corporation 
shall offer to enter into a contract with a qualified 
entity to carry out research and development regard-
ing insurance policies that cover loss of bees. 
‘‘(15) ADJUSTED
GROSS
REVENUE
POLICIES 
FOR
BEGINNING
PRODUCERS.—The Corporation 
shall offer to enter into a contract with a qualified 
entity to carry out research and development into 
needed modifications of adjusted gross revenue in-
surance policies, consistent with principles of actu-
arial sufficiency, to permit coverage for beginning 
producers with no previous production history, in-
cluding permitting those producers to have produc-
tion and premium rates based on information with 
similar farming operations. 
‘‘(16) SKIPROW CROPPING PRACTICES.— 
‘‘(A) IN GENERAL.—The Corporation shall 
offer to enter into a contract with a qualified 
entity to carry out research into needed modi-
fications of policies to insure corn and sorghum 
produced 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— 
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‘‘(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 enact-
ment of this paragraph relating to the 
determination of acreage planted in 
skiprow patterns; and 
‘‘(II) whether policies for crops 
produced through skiprow cropping 
practices reflect actual production ca-
pabilities.’’. 
SEC. 12024. FUNDING FROM INSURANCE FUND. 
Section 522(e) of the Federal Crop Insurance Act (7 
U.S.C. 1522(e)) is amended— 
(1) 
in 
paragraph 
(1), 
by 
striking 
‘‘$10,000,000’’ and all that follows through the end 
of the paragraph and inserting ‘‘$7,500,000 for fis-
cal year 2008 and each subsequent fiscal year’’; 
(2) 
in 
paragraph 
(2)(A), 
by 
striking 
‘‘$20,000,000 for’’ and all that follows through 
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‘‘year 2004’’ and inserting ‘‘$12,500,000 for fiscal 
year 2008’’; and 
(3) in paragraph (3), by striking ‘‘the Corpora-
tion may use’’ and all that follows through the end 
of the paragraph and inserting ‘‘the Corporation 
may use— 
‘‘(A) not more than $5,000,000 for each 
fiscal year to improve program integrity, includ-
ing by— 
‘‘(i) 
increasing 
compliance-related 
training; 
‘‘(ii) improving analysis tools and 
technology regarding compliance; 
‘‘(iii) use of information technology, 
as determined by the Corporation; and 
‘‘(iv) identifying and using innovative 
compliance strategies; and 
‘‘(B) any excess amounts to carry out 
other activities authorized under this section.’’. 
SEC. 12025. PILOT PROGRAMS. 
(a) IN GENERAL.—Section 523 of the Federal Crop 
Insurance Act (7 U.S.C. 1523) is amended by adding at 
the end the following: 
‘‘(f) CAMELINA PILOT PROGRAM.— 
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