SA 3720. Mr. SCHUMER submitted an amendment intended to be proposed to amendment SA 3500 proposed by Mr. HARKIN (for himself, Mr. CHAMBLISS, Mr. BAUCUS, and Mr. GRASSLEY) to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:

On page 272, after line 24, add the following:
SEC. 19__ SHARE OF RISK; REIMBURSEMENT RATE; FUNDING AND ADMINISTRATION.
(a) Share of Risk.--
(1) IN GENERAL.--Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(3)) is amended--
(A) by striking ``require the reinsured'' and inserting the following: ``require--
``(A) the reinsured'';
(B) by striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(B)(i) the cumulative underwriting gain or loss, and the associated premium and losses with such amount, calculated under any reinsurance agreement (except livestock) ceded to the Corporation by each approved insurance provider to be not less than 12.5 percent; and
``(ii) the Corporation to pay a ceding commission to reinsured companies of 2 percent of the premium used to define the loss ratio for the book of business of the approved insurance provider that is described in clause (i).''.
(2) CONFORMING AMENDMENTS.--Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended by adding at the end the following:
``(E) Costs associated with the ceding commissions described in section 508(k)(3)(B)(ii).''.
(3) EFFECTIVE DATE.--The amendments made by this section take effect on June 30, 2008.
(b) Reimbursement Rate.--Notwithstanding section 1911, 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 ``Except 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 years, the reimbursement rates for administrative and operating costs shall be 4.0 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 define loss ratio, except that the reduction shall not apply in a reinsurance year to the total premium 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.--Notwithstanding 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 reinsurance year.''.
(c) Funding and Administration.--Notwithstanding section 2401, section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--
(1) in the matter preceding paragraph (1), by striking ``2007'' and inserting ``2012''; and
(2) by striking paragraphs (3) through (7) and inserting the following:
``(3) The conservation security program under subchapter A of chapter 2, using $2,317,000,000 to administer contracts entered into as of the day before the date of enactment of the Food and Energy Security Act of 2007, to remain available until expended.
``(4) The conservation stewardship program under subchapter B of chapter 6.
``(5) The farmland protection program under subchapter B of chapter 2, using, to the maximum extent practicable, $110,000,000 for each of fiscal years 2008 through 2012.
``(6) The grassland reserve program under chapter C of chapter 2, using, to the maximum extent practicable, $300,000,000 for the period of fiscal years 2008 through 2012.
``(7) The environmental quality incentives program under chapter 4, using, to the maximum extent practicable--
``(A) $1,345,000,000 for fiscal year 2008;
``(B) $1,350,000,000 for fiscal year 2009;
``(C) $1,385,000,000 for fiscal year 2010; and
``(D) $1,420,000,000 for each of fiscal years 2011 and 2012.''.


(As printed in the Congressional Record for the Senate on Nov 15, 2007.)