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SA 3754. Mr. BROWN (for himself, Mr. SUNUNU, Mrs. MCCASKILL, Mr. DURBIN, Mr. SCHUMER, Mr. MCCAIN, and Mr. FEINGOLD) 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:
Beginning on page 268, strike line 8 and all that follows through page 293, line 2, and insert the following:
SEC. 1908. PREMIUM REDUCTION PLAN.
Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following:
``(6) DISCOUNT STUDY.--
``(A) IN GENERAL.--The Secretary shall commission an entity independent of the crop insurance industry (with expertise that includes traditional crop insurance) to study the feasibility of permitting approved insurance providers to provide discounts to producers purchasing crop insurance coverage without undermining the viability of the Federal crop insurance program.
``(B) COMPONENTS.--The study should include--
``(i) an evaluation of the operation of a premium reduction plan that examines--
``(I) the clarity, efficiency, and effectiveness of the statutory language and related regulations;
``(II) whether the regulations frustrated the goal of offering producers upfront, predictable, and reliable premium discount payments; and
``(III) whether the regulations provided for reasonable, cost-effective oversight by the Corporation of premium discounts offered by approved insurance providers, including--
``(aa) whether the savings were generated from verifiable cost efficiencies adequate to offset the cost of discounts paid; and
``(bb) whether appropriate control was exercised to prevent approved insurance providers from preferentially offering the discount to producers of certain agricultural commodities, in certain regions, or in specific size categories;
``(ii) examination of the impact on producers, the crop insurance industry, and profitability from offering discounted crop insurance to producers;
``(iii) examination of implications for industry concentration from offering discounted crop insurance to producers;
``(iv) an examination of the desirability and feasibility of allowing other forms of price competition in the Federal crop insurance program;
``(v) a review of the history of commissions paid by crop insurance providers; and
``(vi) recommendations on--
``(I) potential changes to this title that would address the deficiencies in past efforts to provide discounted crop insurance to producers,
``(II) whether approved insurance providers should be allowed to draw on both administrative and operating reimbursement and underwriting gains to provide discounted crop insurance to producers; and
``(III) any other action that could increase competition in the crop insurance industry that will benefit producers but not undermine the viability of the Federal crop insurance program.
``(C) REQUEST FOR PROPOSALS.--In developing the request for proposals for the study, the Secretary shall consult with parties in the crop insurance industry (including producers and approved insurance providers and agents, including 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 stakeholders before finalizing the report of the entity.
``(E) REPORT.--Not later than 18 months after the date of enactment of the Food and Energy 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 Senate a report that describes the results and recommendations of the study.''.
SEC. 1909. 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''.
SEC. 1910. 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 following:
``(5) MEASUREMENT OF FARM-STORED COMMODITIES.--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 commodity that was produced.''.
SEC. 1911. SHARE OF RISK.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by striking paragraph (3) and inserting the following:
``(3) SHARE OF RISK.--The reinsurance agreements of the Corporation with the reinsured companies shall require 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 30 percent.''.
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 ``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 5 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 .
``(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.''.
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 following:
``(8) RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.--
``(A) IN GENERAL.--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) following the reinsurance year ending June 30, 2010;
``(ii) once during each period of 3 reinsurance 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 Reinsurance Agreement under subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the renegotiation.''.
SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS 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 UNDERWRITING GAINS.--Effective beginning with the 2011 reinsurance year, the Corporation shall make payments 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:
``(B) ACCESS TO DATA MINING INFORMATION.--
``(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 access 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 provided in subclause (II), the Corporation 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 insurance providers to access the data mining system established under subparagraph (A), access will be provided without charge to the extent necessary to fulfill the requirements.
``(iii) ACCESS LIMITATION.--In establishing the program under clause (i), the Secretary shall ensure that an approved insurance provider has access only to information relating to the policies or plans of insurance for which the approved insurance provider provides insurance coverage, including any information relating to--
``(I) information of agents and adjusters relating to policies for which the approved insurance provider provides 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 established 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 covered 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 paragraph (14); and
(2) by inserting after paragraph (9) the following:
``(10) 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--
``(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 development regarding a policy to insure dedicated energy crops.
``(C) RESEARCH AND DEVELOPMENT.--Research and development described in subparagraph (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 policies and plans of insurance based on the use of weather or rainfall indices to protect the interests 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 `aquaculture' 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 `aquaculture' 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 development regarding a policy to insure aquaculture operations.
``(C) RESEARCH AND DEVELOPMENT.--Research and development described in subparagraph (B) shall evaluate the effectiveness of risk management tools for the production of fish and other seafood in aquaculture operations, 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 how best to incorporate insuring of aquaculture operations into existing policies covering adjusted gross revenue; and
``(iii) provide protection for production or revenue losses, or both.
``(12) ORGANIC CROP PRODUCTION COVERAGE IMPROVEMENTS.--
``(A) IN GENERAL.--Not later than 180 days after the date of enactment of this paragraph, the Corporation shall offer to enter into 1 or more contracts with qualified entities for the development of improvements in Federal crop insurance policies covering organic crops.
``(B) PRICE ELECTION.--
``(i) IN GENERAL.--The contracts under subparagraph (A) shall include the development of procedures (including any associated changes in policy terms or materials 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 appropriate, received by producers for organic crops, as established using data collected and maintained by the Agricultural Marketing 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 reinsurance 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 determined by the Corporation.
``(13) 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 modifications of policies to insure corn and sorghum produced in the Central Great Plains (as determined 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 production 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 determination of acreage planted in skiprow patterns; and
``(II) whether policies for crops produced through skiprow cropping practices reflect actual production capabilities.''.
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 following:
``(1) RESEARCH AND DEVELOPMENT REIMBURSEMENT.--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 approved 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 Corporation shall provide FCIC reimbursement grants to persons (referred to in this paragraph as `submitters') proposing to prepare for submission to 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 paragraph.
``(B) SUBMISSION OF APPLICATION.--
``(i) IN GENERAL.--The Board shall receive 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 describes 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 product, including an assessment of marketability and expected demand among affected producers;
``(bb) support from producers, producer organizations, lenders, or other interested parties; and
``(cc) the impact the product would have on producers and on the crop insurance delivery system; and
``(III) a statement that no products 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.
``(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 insurance program;
``(bb) provides crop insurance coverage in a significantly improved form;
``(cc) addresses a recognized flaw or problem in the Federal crop insurance program or an existing product;
``(dd) introduces a significant new concept or innovation to the Federal crop insurance program; or
``(ee) provides coverage or benefits not available from the private sector;
``(II) the submitter demonstrates the necessary qualifications to complete the project successfully in a timely manner with high quality;
``(III) the proposal is in the interests of producers and can reasonably be expected to be actuarially appropriate and function as intended;
``(IV) the Board determines that the Corporation has sufficient available funding to award the FCIC reimbursement grant; and
``(V) the proposed budget and timetable are reasonable.
``(D) PARTICIPATION.--
``(i) IN GENERAL.--In reviewing proposals under this paragraph, the Board may use the services of persons that the Board determines appropriate to carry out expert review in accordance with section 508(h).
``(ii) CONFIDENTIALITY.--All proposals submitted under this paragraph shall be treated as confidential in accordance with section 508(h)(4).
``(E) ENTERING INTO AGREEMENT.--Upon approval of an application, the Board shall offer to enter into an agreement with the submitter for the development of a formal submission that meets the requirements for a complete submission established by the Board under section 508(h).
``(F) FEASIBILITY STUDIES.--
``(i) IN GENERAL.--In appropriate cases, the Corporation may structure the FCIC reimbursement grant to require, as an initial step within the overall process, the submitter to complete a feasibility study, and report the results of the study to the Corporation, prior to proceeding with further development.
``(ii) MONITORING.--The Corporation may require such other reports as the Corporation determines necessary to monitor the development efforts.
``(G) RATES.--Payment for work performed by the submitter under this paragraph shall be based on rates determined by the Corporation for products--
``(i) submitted under section 508(h); or
``(ii) contracted by the Corporation under subsection (c).
``(H) TERMINATION.--
``(i) IN GENERAL.--The Corporation or the submitter may terminate any FCIC reimbursement grant at any time for just cause.
``(ii) REIMBURSEMENT.--If the Corporation or the submitter terminates the FCIC reimbursement grant before final approval of the product covered by the grant, the submitter shall be entitled to--
``(I) reimbursement of all eligible costs incurred to that point; or
``(II) in the case of a fixed rate agreement, payment of an appropriate percentage, as determined by the Corporation.
``(iii) DENIAL.--If the submitter terminates development without just cause, the Corporation may deny reimbursement or recover any reimbursement already made.
``(I) CONSIDERATION OF PRODUCTS.--The Board shall consider any product developed under this paragraph and submitted to the Board under the rules the Board has established for products submitted under section 508(h).''.
(c) Conforming Amendment.--Section 523(b)(10) of the Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is amended by striking ``(other than research and development costs covered by section 522)''.
SEC. 1919. 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 fiscal year 2008 and each subsequent fiscal year''; and
(2) by striking paragraph (2) and inserting the following:
``(2) CONTRACTING, DATA MINING, AND COMPREHENSIVE INFORMATION MANAGEMENT SYSTEM.--Of the amounts made available from the insurance fund established under section 516(c), the Corporation may use not more than $12,500,000 for fiscal year 2008 and each subsequent fiscal year to carry out, in addition to other available funds--
``(A) contracting and partnerships under subsections (c) and (d);
``(B) data mining and data warehousing under section 515(j)(2);
``(C) the comprehensive information management system under section 10706 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8002);
``(D) compliance activities, including costs for additional personnel; and
``(E) development, modernization, and enhancement of the information technology systems used to manage and deliver the crop insurance program.''.
SEC. 1920. INCREASED FUNDING FOR CERTAIN PROGRAMS.
In addition to the amounts made available under other provisions of this Act and amendments made by this Act, of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out--
(1) the farmland protection program established under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) (commonly known as the ``Farm and Ranch Lands Protection Program''), an additional $10,000,000 for each of fiscal years 2008 through 2012;
(2) the grassland reserve program established under subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.), an additional $50,000,000 for the period of fiscal years 2008 through 2012;
(3) the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.), an additional $30,000,000 for each of fiscal years 2008 through 2012;
(4) the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1), an additional $100,000,000 for each of fiscal years 2009 and 2010; and
(5) the improvements to the food and nutrition program made by section 4109 (and the amendments made by that sections) without regard to section 4908(b)(7).
SEC. 1921. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME AMERICANS.
(a) In General.--Section 5(e)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less than $134'' and all that follows through the end of the clause and inserting the following: ``not less than--
``(I) for fiscal year 2008, $141, $241, $199, and $124, respectively;
``(II) for each of fiscal years 2009 through 2012, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food;
``(III) for fiscal year 2013, $134, $229, $189, and $118, respectively; and
``(IV) for fiscal year 2014 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.'';
(2) in subparagraph (B)(ii), by striking ``not less than $269.'' and inserting the following: ``not less than--
``(I) for fiscal year 2008, $283;
``(II) for each of fiscal years 2009 through 2012, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food;
``(III) for fiscal year 2013, $269; and
``(IV) for fiscal year 2014 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.''; and
(3) by adding at the end the following:
``(C) REQUIREMENT.--Each adjustment under subclauses (II) and (IV) of subparagraph (A)(ii) and subclauses (II) and (IV) of subparagraph (B)(ii) shall be based on the unrounded amount for the prior 12-month period.''.
(b) Effect of Other Provision.--The amendments made by section 4102 shall have no force or effect.
(As printed in the Congressional Record for the Senate on Nov 15, 2007.)
table; as follows:
Beginning on page 268, strike line 8 and all that follows through page 293, line 2, and insert the following:
SEC. 1908. PREMIUM REDUCTION PLAN.
Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following:
``(6) DISCOUNT STUDY.--
``(A) IN GENERAL.--The Secretary shall commission an entity independent of the crop insurance industry (with expertise that includes traditional crop insurance) to study the feasibility of permitting approved insurance providers to provide discounts to producers purchasing crop insurance coverage without undermining the viability of the Federal crop insurance program.
``(B) COMPONENTS.--The study should include--
``(i) an evaluation of the operation of a premium reduction plan that examines--
``(I) the clarity, efficiency, and effectiveness of the statutory language and related regulations;
``(II) whether the regulations frustrated the goal of offering producers upfront, predictable, and reliable premium discount payments; and
``(III) whether the regulations provided for reasonable, cost-effective oversight by the Corporation of premium discounts offered by approved insurance providers, including--
``(aa) whether the savings were generated from verifiable cost efficiencies adequate to offset the cost of discounts paid; and
``(bb) whether appropriate control was exercised to prevent approved insurance providers from preferentially offering the discount to producers of certain agricultural commodities, in certain regions, or in specific size categories;
``(ii) examination of the impact on producers, the crop insurance industry, and profitability from offering discounted crop insurance to producers;
``(iii) examination of implications for industry concentration from offering discounted crop insurance to producers;
``(iv) an examination of the desirability and feasibility of allowing other forms of price competition in the Federal crop insurance program;
``(v) a review of the history of commissions paid by crop insurance providers; and
``(vi) recommendations on--
``(I) potential changes to this title that would address the deficiencies in past efforts to provide discounted crop insurance to producers,
``(II) whether approved insurance providers should be allowed to draw on both administrative and operating reimbursement and underwriting gains to provide discounted crop insurance to producers; and
``(III) any other action that could increase competition in the crop insurance industry that will benefit producers but not undermine the viability of the Federal crop insurance program.
``(C) REQUEST FOR PROPOSALS.--In developing the request for proposals for the study, the Secretary shall consult with parties in the crop insurance industry (including producers and approved insurance providers and agents, including 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 stakeholders before finalizing the report of the entity.
``(E) REPORT.--Not later than 18 months after the date of enactment of the Food and Energy 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 Senate a report that describes the results and recommendations of the study.''.
SEC. 1909. 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''.
SEC. 1910. 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 following:
``(5) MEASUREMENT OF FARM-STORED COMMODITIES.--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 commodity that was produced.''.
SEC. 1911. SHARE OF RISK.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by striking paragraph (3) and inserting the following:
``(3) SHARE OF RISK.--The reinsurance agreements of the Corporation with the reinsured companies shall require 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 30 percent.''.
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 ``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 5 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 .
``(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.''.
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 following:
``(8) RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.--
``(A) IN GENERAL.--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) following the reinsurance year ending June 30, 2010;
``(ii) once during each period of 3 reinsurance 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 Reinsurance Agreement under subparagraph (A)(iii), the Corporation shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the renegotiation.''.
SEC. 1914. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS 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 UNDERWRITING GAINS.--Effective beginning with the 2011 reinsurance year, the Corporation shall make payments 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:
``(B) ACCESS TO DATA MINING INFORMATION.--
``(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 access 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 provided in subclause (II), the Corporation 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 insurance providers to access the data mining system established under subparagraph (A), access will be provided without charge to the extent necessary to fulfill the requirements.
``(iii) ACCESS LIMITATION.--In establishing the program under clause (i), the Secretary shall ensure that an approved insurance provider has access only to information relating to the policies or plans of insurance for which the approved insurance provider provides insurance coverage, including any information relating to--
``(I) information of agents and adjusters relating to policies for which the approved insurance provider provides 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 established 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 covered 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 paragraph (14); and
(2) by inserting after paragraph (9) the following:
``(10) 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--
``(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 development regarding a policy to insure dedicated energy crops.
``(C) RESEARCH AND DEVELOPMENT.--Research and development described in subparagraph (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 policies and plans of insurance based on the use of weather or rainfall indices to protect the interests 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 `aquaculture' 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 `aquaculture' 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 development regarding a policy to insure aquaculture operations.
``(C) RESEARCH AND DEVELOPMENT.--Research and development described in subparagraph (B) shall evaluate the effectiveness of risk management tools for the production of fish and other seafood in aquaculture operations, 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 how best to incorporate insuring of aquaculture operations into existing policies covering adjusted gross revenue; and
``(iii) provide protection for production or revenue losses, or both.
``(12) ORGANIC CROP PRODUCTION COVERAGE IMPROVEMENTS.--
``(A) IN GENERAL.--Not later than 180 days after the date of enactment of this paragraph, the Corporation shall offer to enter into 1 or more contracts with qualified entities for the development of improvements in Federal crop insurance policies covering organic crops.
``(B) PRICE ELECTION.--
``(i) IN GENERAL.--The contracts under subparagraph (A) shall include the development of procedures (including any associated changes in policy terms or materials 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 appropriate, received by producers for organic crops, as established using data collected and maintained by the Agricultural Marketing 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 reinsurance 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 determined by the Corporation.
``(13) 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 modifications of policies to insure corn and sorghum produced in the Central Great Plains (as determined 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 production 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 determination of acreage planted in skiprow patterns; and
``(II) whether policies for crops produced through skiprow cropping practices reflect actual production capabilities.''.
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 following:
``(1) RESEARCH AND DEVELOPMENT REIMBURSEMENT.--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 approved 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 Corporation shall provide FCIC reimbursement grants to persons (referred to in this paragraph as `submitters') proposing to prepare for submission to 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 paragraph.
``(B) SUBMISSION OF APPLICATION.--
``(i) IN GENERAL.--The Board shall receive 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 describes 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 product, including an assessment of marketability and expected demand among affected producers;
``(bb) support from producers, producer organizations, lenders, or other interested parties; and
``(cc) the impact the product would have on producers and on the crop insurance delivery system; and
``(III) a statement that no products 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.
``(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 insurance program;
``(bb) provides crop insurance coverage in a significantly improved form;
``(cc) addresses a recognized flaw or problem in the Federal crop insurance program or an existing product;
``(dd) introduces a significant new concept or innovation to the Federal crop insurance program; or
``(ee) provides coverage or benefits not available from the private sector;
``(II) the submitter demonstrates the necessary qualifications to complete the project successfully in a timely manner with high quality;
``(III) the proposal is in the interests of producers and can reasonably be expected to be actuarially appropriate and function as intended;
``(IV) the Board determines that the Corporation has sufficient available funding to award the FCIC reimbursement grant; and
``(V) the proposed budget and timetable are reasonable.
``(D) PARTICIPATION.--
``(i) IN GENERAL.--In reviewing proposals under this paragraph, the Board may use the services of persons that the Board determines appropriate to carry out expert review in accordance with section 508(h).
``(ii) CONFIDENTIALITY.--All proposals submitted under this paragraph shall be treated as confidential in accordance with section 508(h)(4).
``(E) ENTERING INTO AGREEMENT.--Upon approval of an application, the Board shall offer to enter into an agreement with the submitter for the development of a formal submission that meets the requirements for a complete submission established by the Board under section 508(h).
``(F) FEASIBILITY STUDIES.--
``(i) IN GENERAL.--In appropriate cases, the Corporation may structure the FCIC reimbursement grant to require, as an initial step within the overall process, the submitter to complete a feasibility study, and report the results of the study to the Corporation, prior to proceeding with further development.
``(ii) MONITORING.--The Corporation may require such other reports as the Corporation determines necessary to monitor the development efforts.
``(G) RATES.--Payment for work performed by the submitter under this paragraph shall be based on rates determined by the Corporation for products--
``(i) submitted under section 508(h); or
``(ii) contracted by the Corporation under subsection (c).
``(H) TERMINATION.--
``(i) IN GENERAL.--The Corporation or the submitter may terminate any FCIC reimbursement grant at any time for just cause.
``(ii) REIMBURSEMENT.--If the Corporation or the submitter terminates the FCIC reimbursement grant before final approval of the product covered by the grant, the submitter shall be entitled to--
``(I) reimbursement of all eligible costs incurred to that point; or
``(II) in the case of a fixed rate agreement, payment of an appropriate percentage, as determined by the Corporation.
``(iii) DENIAL.--If the submitter terminates development without just cause, the Corporation may deny reimbursement or recover any reimbursement already made.
``(I) CONSIDERATION OF PRODUCTS.--The Board shall consider any product developed under this paragraph and submitted to the Board under the rules the Board has established for products submitted under section 508(h).''.
(c) Conforming Amendment.--Section 523(b)(10) of the Federal Crop Insurance Act (7 U.S.C. 1523(b)(10)) is amended by striking ``(other than research and development costs covered by section 522)''.
SEC. 1919. 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 fiscal year 2008 and each subsequent fiscal year''; and
(2) by striking paragraph (2) and inserting the following:
``(2) CONTRACTING, DATA MINING, AND COMPREHENSIVE INFORMATION MANAGEMENT SYSTEM.--Of the amounts made available from the insurance fund established under section 516(c), the Corporation may use not more than $12,500,000 for fiscal year 2008 and each subsequent fiscal year to carry out, in addition to other available funds--
``(A) contracting and partnerships under subsections (c) and (d);
``(B) data mining and data warehousing under section 515(j)(2);
``(C) the comprehensive information management system under section 10706 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8002);
``(D) compliance activities, including costs for additional personnel; and
``(E) development, modernization, and enhancement of the information technology systems used to manage and deliver the crop insurance program.''.
SEC. 1920. INCREASED FUNDING FOR CERTAIN PROGRAMS.
In addition to the amounts made available under other provisions of this Act and amendments made by this Act, of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out--
(1) the farmland protection program established under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) (commonly known as the ``Farm and Ranch Lands Protection Program''), an additional $10,000,000 for each of fiscal years 2008 through 2012;
(2) the grassland reserve program established under subchapter C of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.), an additional $50,000,000 for the period of fiscal years 2008 through 2012;
(3) the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.), an additional $30,000,000 for each of fiscal years 2008 through 2012;
(4) the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1), an additional $100,000,000 for each of fiscal years 2009 and 2010; and
(5) the improvements to the food and nutrition program made by section 4109 (and the amendments made by that sections) without regard to section 4908(b)(7).
SEC. 1921. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME AMERICANS.
(a) In General.--Section 5(e)(1) of the Food and Nutrition Act of 2007 (7 U.S.C. 2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less than $134'' and all that follows through the end of the clause and inserting the following: ``not less than--
``(I) for fiscal year 2008, $141, $241, $199, and $124, respectively;
``(II) for each of fiscal years 2009 through 2012, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food;
``(III) for fiscal year 2013, $134, $229, $189, and $118, respectively; and
``(IV) for fiscal year 2014 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.'';
(2) in subparagraph (B)(ii), by striking ``not less than $269.'' and inserting the following: ``not less than--
``(I) for fiscal year 2008, $283;
``(II) for each of fiscal years 2009 through 2012, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food;
``(III) for fiscal year 2013, $269; and
``(IV) for fiscal year 2014 and each fiscal year thereafter, an amount that is equal to the amount from the previous fiscal year adjusted to the nearest lower dollar increment to reflect changes for the 12-month period ending on the preceding June 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than food.''; and
(3) by adding at the end the following:
``(C) REQUIREMENT.--Each adjustment under subclauses (II) and (IV) of subparagraph (A)(ii) and subclauses (II) and (IV) of subparagraph (B)(ii) shall be based on the unrounded amount for the prior 12-month period.''.
(b) Effect of Other Provision.--The amendments made by section 4102 shall have no force or effect.
(As printed in the Congressional Record for the Senate on Nov 15, 2007.)
