643 
(1) IN GENERAL.—The Secretary shall enter into 
contracts with eligible producers referred to in para-
graph (2) to provide cost-share and incentive pay-
ments to assist in the transition to organic produc-
tion systems. 
(2) ELIGIBLE PRODUCERS.—A producer is an el-
igible producer under this paragraph if such producer 
agrees to— 
(A) develop and carry out environmental 
and conservation activities consistent with an 
organic plan that protect soil, water, wildlife, 
air, and other natural resources as defined by 
the Secretary; 
(B) receive technical and education assist-
ance from the Secretary, or from organizations, 
institutions, and consultants with cooperative 
agreements with the Secretary, relating to— 
(i) the development and implementa-
tion of conservation practices and activities 
that are part of an organic plan; or 
(ii) other aspects of transition to or-
ganic production, including marketing, 
credit, business, and risk management 
plans; 
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(C) submit to annual verification by a cer-
tifying agent accredited by the Department of 
Agriculture under section 2115 of the Organic 
Foods Production Act of 1990 (7 U.S.C. 6514) to 
determine compliance of the producer with or-
ganic certification requirements; and 
(D) develop marketing, credit, business, and 
risk management plans, as appropriate. 
(3) CONTRACT.—A contract entered into under 
paragraph (1) shall provide that— 
(A) payments provided to a producer under 
the contract shall only be used for— 
(i) conservation management and vege-
tative and structural practices and activi-
ties during transition to certified organic 
production that— 
(I) are consistent with an organic 
plan; and 
(II) protect soil, water, wildlife, 
air, and other natural resources, as re-
quired under the Organic Foods Pro-
duction Act of 1990 (7 U.S.C. 6501 et 
seq.); 
(ii) animal production measures con-
sistent with an organic plan; and 
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(iii) such other measures as the Sec-
retary determines are appropriate and con-
sistent with an organic plan; 
(B) subject to subparagraph (C), the con-
tract shall terminate after a period of not more 
than three years; 
(C) the Secretary may terminate the con-
tract if the Secretary determines the eligible pro-
ducer is not pursuing organic certification under 
the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.); and 
(D) the Secretary may require repayment 
in whole of payments already received if the Sec-
retary determines the eligible producer is not 
pursuing organic certification under the Organic 
Foods Production Act of 1990 (7 U.S.C. 6501 et. 
seq). 
(4) LIMITATIONS
ON
PAYMENTS.—An eligible 
producer may not receive payments under paragraph 
(1)— 
(A) for a total period of more than three 
years; 
(B) an amount not to exceed $50 per acre 
for crop land, or $25 per acre for grazing land; 
and 
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(C) in an amount more than $10,000 in a 
fiscal year. 
(c) TECHNICAL AND EDUCATIONAL ASSISTANCE.—The 
Secretary shall provide producers with technical and edu-
cational assistance, including through the use of competitive 
cooperative agreements with non-profit organizations, non- 
governmental organizations, institutes of higher education, 
or consultants with expertise in advisory services for or-
ganic producers on organic production systems, and the 
planning for and marketing of organic products. 
(d) USE OF FUNDS.—The Secretary shall use 50 per-
cent of the funds made available pursuant to the authoriza-
tion of appropriations under subsection (f) to provide tech-
nical and educational assistance under subsection (c). 
(e) DEFINITIONS.—In this section: 
(1) ORGANIC PLAN.—The term ‘‘organic plan’’ 
means an organic plan submitted under section 
2114(a) of the Organic Foods Production Act of 1990 
(7 U.S.C. 6513(a)) and agreed to by the producer and 
handler of a product and a certifying agent under 
such section. 
(2) TECHNICAL
AND
EDUCATIONAL
ASSIST-
ANCE.—The term ‘‘technical and educational assist-
ance’’ means the conveyance of information and coun-
sel regarding economic and business planning, mar-
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keting, and organic practices, such as entomological 
practices and pest and weed control and prevention 
that satisfy organic practices. 
(f) FUNDING.—There is authorized to be appropriated 
to carry out this section $50,000,000, which shall remain 
available until expended. 
Subtitle E—Miscellaneous 
Provisions 
SEC. 10401. RESTORATION OF IMPORT AND ENTRY AGRI-
CULTURAL INSPECTION FUNCTIONS TO THE 
DEPARTMENT OF AGRICULTURE. 
(a) REPEAL OF TRANSFER OF FUNCTIONS.—Section 
421 of the Homeland Security Act of 2002 (6 U.S.C. 231) 
is repealed. 
(b) CONFORMING AMENDMENT TO FUNCTIONS OF SEC-
RETARY OF HOMELAND SECURITY.—Section 402 of the 
Homeland Security Act of 2002 (6 U.S.C. 202) is amend-
ed— 
(1) by striking paragraph (7); and 
(2) by redesignating paragraph (8) as para-
graph (7). 
(c) TRANSFER AGREEMENT.— 
(1) IN GENERAL.—Not later than the effective 
date specified in subsection (g), the Secretary of Agri-
culture and the Secretary of Homeland Security shall 
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enter into an agreement to effectuate the return of 
functions required by the amendments made by this 
section. 
(2) USE OF CERTAIN EMPLOYEES.—The agree-
ment may include authority for the Secretary of Agri-
culture to use employees of the Department of Home-
land Security to carry out authorities delegated to the 
Animal and Plant Health Inspection Service regard-
ing the protection of domestic livestock and plants. 
(d) RESTORATION OF DEPARTMENT OF AGRICULTURE 
EMPLOYEES.—Not later than the effective date specified in 
subsection (g), all full-time equivalent positions of the De-
partment of Agriculture transferred to the Department of 
Homeland Security under section 421(g) of the Homeland 
Security Act of 2002 (6 U.S.C. 231(g)) (as in effect on the 
day before such effective date) shall be restored to the De-
partment of Agriculture. 
(e) AUTHORITY OF APHIS.— 
(1) ESTABLISHMENT
OF
PROGRAM.—The Sec-
retary of Agriculture shall establish within the Ani-
mal and Plant Health Inspection Service a program, 
to be known as the ‘‘International Agricultural In-
spection Program’’, under which the Administrator of 
the Animal and Plant Health Inspection Service (re-
ferred to in this subsection as the ‘‘Administrator’’) 
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shall carry out import and entry agricultural inspec-
tions. 
(2) INFORMATION
GATHERING
AND
INSPEC-
TIONS.—In carrying out the program under para-
graph (1), the Administrator shall have full access 
to— 
(A) each secure area of any terminal for 
screening passengers or cargo under the control 
of the Department of Homeland Security on the 
day before the date of enactment of this Act for 
purposes of carrying out inspections and gath-
ering information; and 
(B) each database (including any database 
relating to cargo manifests or employee and 
business records) under the control of the Depart-
ment of Homeland Security on the day before the 
date of enactment of this Act for purposes of 
gathering information. 
(3) INSPECTION
ALERTS.—The Administrator 
may issue inspection alerts, including by indicating 
cargo to be held for immediate inspection. 
(4) INSPECTION USER FEES.—The Administrator 
may, as applicable— 
(A) continue to collect any agricultural 
quarantine inspection user fee; and 
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(B) administer any reserve account for the 
fees. 
(5) CAREER TRACK PROGRAM.— 
(A) IN GENERAL.—The Administrator shall 
establish a program, to be known as the ‘‘import 
and entry agriculture inspector career track pro-
gram’’, to support the development of long-term 
career professionals with expertise in import and 
entry agriculture inspection. 
(B) STRATEGIC
PLAN
AND
TRAINING.—In 
carrying out the program under this paragraph, 
the Administrator, in coordination with the Sec-
retary of Agriculture, shall— 
(i) develop a strategic plan to incor-
porate import and entry agricultural in-
spectors into the infrastructure protecting 
food, fiber, forests, bioenergy, and the envi-
ronment of the United States from animal 
and plant pests, diseases, and noxious 
weeds; and 
(ii) as part of the plan under clause 
(i), provide training for import and entry 
agricultural inspectors participating in the 
program not less frequently than once each 
year to improve inspection skills. 
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(f) DUTIES OF SECRETARY OF AGRICULTURE.— 
(1) OPERATING
PROCEDURES
AND
TRACKING 
SYSTEM.—The Secretary of Agriculture shall— 
(A) develop standard operating procedures 
for inspection, monitoring, and auditing relating 
to import and entry agricultural inspections, in 
accordance with recommendations from the 
Comptroller General of the United States and re-
ports of interagency advisory groups, as applica-
ble; and 
(B) ensure that the Animal and Plant 
Health Inspection Service has a national elec-
tronic system with real-time tracking capability 
for monitoring, tracking, and reporting inspec-
tion activities of the Service. 
(2) FEDERAL AND STATE COOPERATION.— 
(A) COMMUNICATION
SYSTEM.—The Sec-
retary of Agriculture shall develop and maintain 
an integrated, real-time communication system 
with respect to import and entry agricultural in-
spections to alert State departments of agri-
culture of significant inspection findings of the 
Animal and Plant Health Inspection Service. 
(3) FUNDING.—The Secretary of Agriculture 
shall pay the costs of each import and entry agricul-
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tural inspector employed by the Animal and Plant 
Health Inspection Service from amounts made avail-
able to the Department of Agriculture for the applica-
ble fiscal year. 
(g) EFFECTIVE DATE.—The amendments made by this 
section take effect on the date that is 180 days after the 
date of enactment of this Act. 
SEC. 10402. GRANT PROGRAM TO IMPROVE MOVEMENT OF 
SPECIALTY CROPS. 
(a) GRANTS AUTHORIZED.—The Secretary of Agri-
culture may make grants under this section to an eligible 
entity described in subsection (b)— 
(1) to improve the cost-effective movement of spe-
cialty crops to local, regional, national, and inter-
national markets; and 
(2) to address regional intermodal transpor-
tation deficiencies that adversely affect the movement 
of specialty crops to markets inside or outside the 
United States. 
(b) ELIGIBLE GRANT RECIPIENTS.—Grants may be 
made under this section to any of the following (or a com-
bination thereof): 
(1) State and local governments. 
(2) Grower cooperatives. 
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(3) State or regional producer and shipper orga-
nizations. 
(4) Other entities as determined to be appro-
priate by the Secretary. 
(c) MATCHING FUNDS.—The recipient of a grant 
under this section shall contribute an amount of non-Fed-
eral funds toward the project for which the grant is pro-
vided that is at least equal to the amount of grant funds 
received by the recipient under this section. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as may be nec-
essary for each of fiscal years 2008 through 2012 to carry 
out this section. 
SEC. 10403. AUTHORIZATION OF APPROPRIATIONS FOR 
MARKET NEWS ACTIVITIES REGARDING SPE-
CIALTY CROPS. 
There are authorized to be appropriated to the Sec-
retary of Agriculture such sums as may be necessary for 
each of the fiscal years 2008 through 2012 to support the 
market news activities regarding specialty crops (as such 
term is defined in section 3(1) of the Specialty Crops Com-
petitiveness Act of 2004 (Public Law 108-465; 118 Stat. 
3883)). 
SEC. 10404. FARMERS’ MARKET PROMOTION PROGRAM. 
(a) FINDINGS.—Congress finds that— 
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(1) agricultural direct farmer-to-consumer mar-
keting activities, including farmers’ markets, roadside 
stands, community supported agriculture, internet, 
mail-order, and other similar direct order marketing 
activities, significantly enhance the ability of agricul-
tural producers to retain a greater share of their 
products’ retail value; 
(2) direct farmer-to-consumer marketing activi-
ties are a crucial component of the current and future 
viability of small and mid-sized farms and ranches 
and beginning and socially disadvantaged farmers 
and ranchers; and 
(3) agricultural direct marketing activities con-
tribute to the health and well-being of consumers in 
rural, urban, and tribal communities by providing 
access to healthy, fresh, and affordable food. 
(b) PROGRAM.—Section 6 of the Farmer-to-Consumer 
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’ markets’’ 
and inserting ‘‘direct producer to consumer mar-
keting’’; 
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(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, community- 
supported agriculture programs, and other direct 
producer-to-consumer infrastructure’’ and insert-
ing ‘‘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; 
(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’’; 
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(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 direct 
sale of agricultural products, including operations 
where the consumer picks their own agricultural 
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 use to carry out this section— 
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‘‘(A) $5,000,000 in each of fiscals 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’ mar-
kets.’’. 
SEC. 10405. NATIONAL CLEAN PLANT NETWORK. 
(a) ESTABLISHMENT.—There is established in the De-
partment of Agriculture a program to be known as the ‘‘Na-
tional 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-
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.— 
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(1) COMMODITY CREDIT CORPORATION.—Of the 
funds of the Commodity Credit Corporation, the Sec-
retary shall make available to carry out this section 
$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. 
TITLE XI—MISCELLANEOUS 
PROVISIONS 
Subtitle A—Federal Crop Insurance 
Sec. 11001. Availability of supplemental crop insurance based on area yield and 
loss plan of insurance or area revenue plan of insurance. 
Sec. 11002. Premiums and reinsurance requirements. 
Sec. 11003. Catastrophic risk protection administrative fee. 
Sec. 11004. Funding for reimbursements, contracting, risk management edu-
cation, and information technology. 
Sec. 11005. Reimbursement of research and development costs related to new crop 
insurance products. 
Sec. 11006. Research and development contracts for organic production coverage 
improvements. 
Sec. 11007. Targeting risk management education for beginning farmers and 
ranchers and certain other farmers and ranchers. 
Sec. 11008. Crop insurance ineligibility related to crop production on noncrop-
land. 
Sec. 11009. Funds for data mining. 
Sec. 11010. Noninsured crop assistance program. 
Sec. 11011. Change in due date for Corporation payments for underwriting 
gains. 
Sec. 11012. Sesame insurance pilot program. 
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 State inspected meat and poultry prod-
ucts. 
Sec. 11106. Sense of Congress regarding the voluntary control program for low 
pathogenic avian influenza. 
Sec. 11107. Sense of Congress regarding the cattle fever tick eradication program. 
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Subtitle C—Socially Disadvantaged Producers and Limited Resource Producers 
Sec. 11201. Outreach and technical assistance for socially disadvantaged farmers 
and ranchers and limited resource farmers and ranchers. 
Sec. 11202. Improved program delivery by Department of Agriculture on Indian 
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 limited 
resource farmers and ranchers in Census of Agriculture and cer-
tain 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. 11308. Regulation of exports of plants, plant products, biological control or-
ganisms, and noxious weeds. 
Sec. 11309. Grants to reduce production of methamphetamines from anhydrous 
ammonia. 
Sec. 11310. USDA Graduate School. 
Subtitle A—Federal Crop Insurance 
SEC. 11001. AVAILABILITY OF SUPPLEMENTAL CROP INSUR-
ANCE BASED ON AREA YIELD AND LOSS PLAN 
OF INSURANCE OR AREA REVENUE PLAN OF 
INSURANCE. 
(a) IN GENERAL.—Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) is amended by adding 
at the end the following new paragraph: 
‘‘(11) SUPPLEMENTAL AREA COVERAGE.— 
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‘‘(A) AVAILABILITY
OF
COVERAGE.—Not-
withstanding paragraph (4), if area coverage is 
available in an area (as determined by the Cor-
poration under paragraph (3)), the Corporation 
shall provide eligible producers in that area with 
the option to purchase supplemental insurance 
coverage based on— 
‘‘(i) an area yield and loss plan of in-
surance; or 
‘‘(ii) an area revenue plan of insur-
ance that includes coverage for a loss in 
yield. 
‘‘(B) ELIGIBLE PRODUCERS.—To be eligible 
to obtain supplemental coverage under this para-
graph, a producer must purchase either an indi-
vidual yield and loss plan of insurance or a rev-
enue plan of insurance that includes coverage for 
a loss in yield at an additional coverage level for 
the same crop to be covered by the supplemental 
coverage. 
‘‘(C) LIMITATION.—In providing supple-
mental coverage to a producer under this para-
graph, the sum of the following shall not exceed 
100 percent: 
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‘‘(i) The coverage level expressed in 
percentage terms for the individual yield 
and loss plan of insurance or the revenue 
plan of insurance that includes coverage for 
a loss in yield that is purchased by the pro-
ducer for the same crop covered by the sup-
plemental coverage, as required by subpara-
graph (B). 
‘‘(ii) The share expressed in percentage 
terms of the area yield and loss plan of in-
surance or the area revenue plan of insur-
ance (at whatever coverage level is selected) 
that is used to determine the level of supple-
mental insurance coverage provided the pro-
ducer under this paragraph. 
‘‘(D) PAYMENT OF PORTION OF PREMIUM.— 
As provided in subsection (e), the Corporation 
shall pay a portion of the premium for supple-
mental coverage under this paragraph and the 
associated individual area yield and loss plan of 
insurance or revenue plan of insurance that in-
cludes coverage for a loss in yield. 
‘‘(E) AMOUNT OF INDEMNITY PAID UNDER 
SUPPLEMENTAL
COVERAGE.—The 
indemnity 
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payable under supplemental coverage provided 
under this paragraph shall be calculated as— 
‘‘(i) the total indemnity for the area 
yield and loss plan of insurance or area 
revenue plan of insurance, at the coverage 
level chosen by the producer; multiplied by 
‘‘(ii) the share of the coverage of the 
area yield and loss plan of insurance or 
area revenue plan of insurance selected by 
the producer. 
‘‘(F) SPECIAL RULE RELATING TO QUALI-
FYING LOSSES.—In the case of a qualifying loss 
in an area (as determined by the Corporation) 
under supplemental coverage provided under this 
paragraph, subject to the applicable coverage 
limits, the total amount of the indemnity shall 
be available to the producer regardless of the loss 
incurred under the individual yield and loss 
plan of insurance or the revenue plan of insur-
ance that includes coverage for a loss in yield of 
the producer. 
‘‘(G) REINSURANCE YEAR.—Subject to the 
availability of area yield and loss or revenue 
coverage for an insurable crop in an area (as de-
termined by the Corporation), the Corporation 
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shall provide supplemental coverage under this 
paragraph not later than the 2008 reinsurance 
year.’’. 
(b) CONFORMING AMENDMENTS.—Section 508(d)(2) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is 
amended— 
(1) by striking ‘‘additional coverage’’ in the mat-
ter preceding subparagraph (A) and inserting ‘‘addi-
tional and supplemental coverages’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) In the case of supplemental coverage 
provided under subsection (c)(11) that, in com-
bination with either the individual yield and 
loss coverage, or a comparable coverage for a pol-
icy or plan of insurance that is not based on in-
dividual yield and does not insure more than 
100 percent of the recorded or appraised average 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount of 
the premium shall— 
‘‘(i) be sufficient to cover anticipated 
losses and a reasonable reserve; and 
‘‘(ii) include an amount for operating 
and administrative expenses, as determined 
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by the Corporation, on an industry-wide 
basis as a percentage of the amount of the 
premium used to define loss ratio.’’. 
(c) OFFSET.—The Federal Crop Insurance Corpora-
tion shall take such actions, including the establishment of 
adequate premiums, as are necessary to improve the actu-
arial soundness of Federal multiperil crop insurance to 
achieve, on and after October 1, 2008, an overall projected 
loss ratio of not greater than 1.00. 
SEC. 11002. PREMIUMS AND REINSURANCE REQUIREMENTS. 
(a) PREMIUM ADJUSTMENTS.—Section 508(a) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended 
by adding at the end the following new paragraph: 
‘‘(9) PREMIUM ADJUSTMENTS.— 
‘‘(A) PROHIBITION.—Except as provided in 
subparagraph (B), the paying, allowing, or giv-
ing, or offering to pay, allow, or give, directly or 
indirectly, either as an inducement to procure 
insurance or after insurance has been procured, 
any rebate, discount, abatement, credit, or reduc-
tion of the premium named in an insurance pol-
icy or any other valuable consideration or in-
ducement whatsoever not specified in the policy, 
is strictly prohibited under this title. 
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‘‘(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 au-
thorized under subsection (d)(3).’’. 
(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 pro-
tection or additional coverage’’; and inserting 
‘‘through the payment of all or a portion of cata-
strophic 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’’; 
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(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 sec-
ond place it appears; 
(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 insert-
ing ‘‘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 
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(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: 
‘‘(4) BILLING DATE FOR PREMIUMS.—Beginning 
with the 2012 reinsurance year, the Corporation 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 rein-
surance years, 2 percentage points below the 
rates, in effect as of the date of the enact-
ment of this Act of the Farm, Nutrition, 
and Bioenergy Act of 2007, for all crop in-
surance policies used to define loss ratio.’’. 
(2) RENEGOTIATION OF STANDARD REINSURANCE 
AGREEMENT.—Section 508(k) of the Federal Crop In-
surance Act (7 U.S.C. 1508(k)) is amended by adding 
at the end the following new paragraph: 
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‘‘(8) RENEGOTIATION
OF
STANDARD
REINSUR-
ANCE AGREEMENT.— 
‘‘(A) 
PERIODIC
RENEGOTIATION.—Fol-
lowing the reinsurance year ending June 30, 
2012, the Corporation may renegotiate the finan-
cial terms of the standard reinsurance agreement 
during the next reinsurance year and once dur-
ing each period of five reinsurance years there-
after. 
‘‘(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 renegotiation 
of the agreement for purposes of subparagraph 
(A). 
‘‘(C) CONSULTATION.—Approved insurance 
providers and their representatives may confer 
with each other, and collectively with the Cor-
poration, 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 
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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. 
(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 paragraph: 
‘‘(3) DUE DATE FOR ADMINISTRATIVE AND OPER-
ATING EXPENSE PAYMENT.—Beginning with the 2012 
reinsurance year, the Corporation shall make pay-
ments pursuant to paragraph (1)(B) during October 
2012, and for subsequent reinsurance years, every Oc-
tober 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. 
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(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 
(B) by redesignating subsection (e) as sub-
section (d). 
(3) SUBMISSION OF POLICIES AND MATERIALS.— 
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. 11003. 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. 
11004. 
FUNDING 
FOR 
REIMBURSEMENTS, 
CON-
TRACTING, RISK MANAGEMENT EDUCATION, 
AND INFORMATION TECHNOLOGY. 
(a) FUNDING.—Section 516 of the Federal Crop Insur-
ance Act (7 U.S.C. 1516) is amended by adding at the end 
the following new subsections: 
‘‘(d) FUNDING FOR REIMBURSEMENTS, CONTRACTING, 
RISK MANAGEMENT EDUCATION, AND INFORMATION TECH-
NOLOGY.—Of the amounts made available from the insur-
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ance fund established under subsection (c), the Corporation 
shall use not more than $30,000,000 in each fiscal year to 
carry out the following: 
‘‘(1) Reimbursement of research and development 
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 con-
tracting for research and development described in section 
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 inserting the 
following new subsection: 
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‘‘(e) PROHIBITED RESEARCH AND DEVELOPMENT BY 
CORPORATION.— 
‘‘(1) 
NEW
POLICIES.—Notwithstanding 
sub-
section (d), the Corporation shall not conduct research 
and development for any new policy for an agricul-
tural commodity offered under this title. 
‘‘(2) EXISTING POLICIES.—Any policy developed 
by the Corporation under this title before October 1, 
2000, may continue to be offered for sale to pro-
ducers.’’ 
(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 insert-
ing ‘‘section 522(e)’’. 
(3) EDUCATION ASSISTANCE FUNDING.—Section 
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). 
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