[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1556 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1556

 To amend the Specialty Crops Competitiveness Act of 2004 to increase 
     the authorization of appropriations for grants to support the 
  competitiveness of specialty crops, to amend the Agricultural Risk 
     Protection Act of 2000 to improve the program of value-added 
agricultural product market development grants by routing funds through 
 State departments of agriculture, to amend the Federal Crop Insurance 
  Act to require a nationwide expansion of the adjusted gross revenue 
               insurance program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 29, 2005

   Mr. Wyden introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Specialty Crops Competitiveness Act of 2004 to increase 
     the authorization of appropriations for grants to support the 
  competitiveness of specialty crops, to amend the Agricultural Risk 
     Protection Act of 2000 to improve the program of value-added 
agricultural product market development grants by routing funds through 
 State departments of agriculture, to amend the Federal Crop Insurance 
  Act to require a nationwide expansion of the adjusted gross revenue 
               insurance program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Specialty Crop and Value-Added 
Agriculture Promotion Act''.

SEC. 2. DEFINITION OF SPECIALTY CROP.

    Section 3(1) of the Specialty Crops Competitiveness Act of 2004 
(Public Law 108-465; 7 U.S.C. 1621 note) is amended--
            (1) by inserting ``fish and shellfish whether farm-raised 
        or harvested in the wild,'' after ``dried fruits,''; and
            (2) by adding at the end the following: ``The term includes 
        specialty crops that are organically produced (as defined in 
        section 2103 of the Organic Foods Production Act of 1990 (7 
        U.S.C. 6502).''.

SEC. 3. PERMANENT AUTHORIZATION OF APPROPRIATIONS FOR STATE SPECIALTY 
              CROP BLOCK GRANTS.

    Section 101 of the Specialty Crops Competitiveness Act of 2004 
(Public Law 108-465; 7 U.S.C. 1621 note) is amended by striking 
subsection (i) and inserting the following:
    ``(i) Authorization of Appropriations.--For fiscal year 2006 and 
every fiscal year thereafter, there is authorized to be appropriated to 
the Secretary of Agriculture $500,000,000 to make grants under this 
section.''.

SEC. 4. BLOCK GRANTS TO STATES FOR VALUE-ADDED AGRICULTURAL PRODUCT 
              MARKET DEVELOPMENT.

    (a) In General.--Section 231 of the Agricultural Risk Protection 
Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note) is amended by 
striking subsection (b) and inserting the following:
    ``(b) Grant Program.--
            ``(1) State defined.--In this subsection, the term `State' 
        means each of the 50 States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(2) Block grants to states.--
                    ``(A) Amount of grant to state.--From the amount 
                made available under paragraph (7) for a fiscal year, 
                the Secretary shall provide to each State, subject to 
                subparagraph (B), a grant in an amount equal to the 
                product obtained by multiplying the amount made 
                available for that fiscal year by the result obtained 
                by dividing--
                            ``(i) the total value of the agricultural 
                        commodities and products made in the State 
                        during the preceding fiscal year; by
                            ``(ii) the total value of the agricultural 
                        commodities and products made in all of the 
                        States during the preceding fiscal year.
                    ``(B) Limitation.--The total grant provided to a 
                State for a fiscal year under subparagraph (A) shall 
                not exceed $3,000,000.
            ``(3) Use of grant funds by states.--A State shall use the 
        grant funds to award competitive grants--
                    ``(A) to an eligible independent producer (as 
                determined by the State) of a value-added agricultural 
                product to assist the producer--
                            ``(i) in developing a business plan for 
                        viable marketing opportunities for the value-
                        added agricultural product; or
                            ``(ii) in developing strategies that are 
                        intended to create marketing opportunities for 
                        the producer; and
                    ``(B) to an eligible agricultural producer group, 
                farmer or rancher cooperative, or majority-controlled 
                producer-based business venture (as determined by the 
                State) to assist the entity--
                            ``(i) in developing a business plan for 
                        viable marketing opportunities in emerging 
                        markets for a value-added agricultural product; 
                        or
                            ``(ii) in developing strategies that are 
                        intended to create marketing opportunities in 
                        emerging markets for the value-added 
                        agricultural product.
            ``(4) Amount of competitive grant.--
                    ``(A) In general.--The total amount provided under 
                paragraph (3) to a grant recipient shall not exceed 
                $500,000.
                    ``(B) Majority-controlled producer-based business 
                ventures.--The amount of grants provided by a State to 
                majority-controlled producer-based business ventures 
                under paragraph (3)(B) for a fiscal year may not exceed 
                10 percent of the amount of funds that are used by the 
                State to make grants for the fiscal year under 
                paragraph (3).
            ``(5) Grantee strategies.--A recipient of a grant under 
        paragraph (3) shall use the grant funds--
                    ``(A) to develop a business plan or perform a 
                feasibility study to establish a viable marketing 
                opportunity for a value-added agricultural product; or
                    ``(B) to provide capital to establish alliances or 
                business ventures that allow the producer of the value-
                added agricultural product to better compete in 
                domestic or international markets.
            ``(6) Reports.--Not later than 90 days after the end of a 
        fiscal year for which funds are provided to a State under 
        paragraph (2), the State 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 
        describing how the funds were used.
            ``(7) Funding.--On October 1 of each fiscal year, of the 
        funds of the Commodity Credit Corporation, the Secretary shall 
        make available to carry out this subsection $100,000,000, to 
        remain available until expended.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2005.

SEC. 5. REIMBURSEMENT OF CERTIFICATION COSTS.

    (a) Incentive Program.--
            (1) In general.--The Secretary of Agriculture shall 
        establish an incentive program to encourage the independent 
        third-party certification of agricultural producers and 
        processors for product qualities, production practices, or 
        other product or process attributes that increase marketability 
        or value of an agricultural commodity.
            (2) Inclusions.--The Secretary shall include independent 
        third-party certification systems, including programs such as 
        Good Agricultural Practices, Good Handling Practices, and Good 
        Manufacturing Practices programs, that the Secretary finds will 
        provide 1 or more measurable social, environmental, or 
        marketing advantages.
    (b) Standards.--The Secretary shall set standards regarding the 
types of certifications, and the types of certification-related 
expenses, that will qualify for reimbursement under the program.
    (c) Limitation on Amount of Reimbursement.--An agricultural 
producer or processor may not receive reimbursement for more than 50 
percent of the qualified expenses incurred by the producer or processor 
related to accepted certifications.

SEC. 6. NATIONWIDE EXPANSION OF RISK MANAGEMENT AGENCY ADJUSTED GROSS 
              REVENUE INSURANCE PROGRAM.

    (a) Expansion.--Section 523(e) of the Federal Crop Insurance Act (7 
U.S.C. 1523(e)) is amended by adding at the end the following:
            ``(3) Permanent nationwide operation.--
                    ``(A) In general.--Effective beginning with the 
                2006 reinsurance year, the Corporation shall carry out 
                the adjusted gross revenue insurance pilot program as a 
                permanent program under this title and may expand the 
                program to cover any county in which crops are 
                produced.
                    ``(B) Temporary premium subsidies.--To facilitate 
                the expansion of the program nationwide, the 
                Corporation may grant temporary premium subsidies for 
                the purchase of a policy under the program to producers 
                whose farm operations are located in a county that has 
                a high level of specialty crop production and has not 
                had a high-level of participation in the purchase of 
                crop insurance coverage.''.
    (b) Comptroller General Study.--The Comptroller General shall 
conduct a study of the Federal crop insurance program--
            (1) to determine how well the program under section 
        523(e)(3) of the Federal Crop Insurance Act (as added by 
        subsection (a)) serves specialty crop producers; and
            (2) to recommend such changes as the Comptroller General 
        considers appropriate to improve the program for specialty crop 
        producers.

SEC. 7. EXPANSION OF FRUIT AND VEGETABLE PROGRAM IN SCHOOL LUNCH 
              PROGRAMS.

    The Richard B. Russell National School Lunch Act is amended--
            (1) in section 18 (42 U.S.C. 1769), by striking subsection 
        (g); and
            (2) by inserting after section 18 the following:

``SEC. 19. FRUIT AND VEGETABLE PROGRAM.

    ``(a) In General.--The Secretary shall make available in not more 
than 100 schools in each State, and in elementary and secondary schools 
on 1 Indian reservation, free fresh and dried fruits and vegetables and 
frozen berries to be served to school children throughout the school 
day in 1 or more areas designated by the school.
    ``(b) Priority in Allocation.--In selecting States to participate 
in the program, the Secretary shall give priority to States that 
produce large quantities of specialty crops.
    ``(c) Publicity.--A school participating in the program authorized 
by this section shall publicize in the school the availability of free 
fruits and vegetables under the program.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2006 and 2007.''.

SEC. 8. INCREASE IN LIMIT ON DIRECT OPERATING LOANS; INDEXATION TO 
              INFLATION.

    Section 313 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1943) is amended--
            (1) in subsection (a)(1), by striking ``$200,000'' and 
        inserting ``$500,000 (increased, beginning with fiscal year 
        2007, by the inflation percentage applicable to the fiscal year 
        in which the loan is made)''; and
            (2) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) the average of such index (as so defined) for the 12-
        month period ending on--
                    ``(A) in the case of a loan other than a loan 
                guaranteed by the Secretary, August 31, 2005; or
                    ``(B) in the case of a loan guaranteed by the 
                Secretary, August 31, 1996.''.

SEC. 9. TRADE OF SPECIALTY CROPS.

    (a) Assistant USTR for Specialty Crops.--Section 141(c) of the 
Trade Act of 1974 (19 U.S.C. 2171(c)) is amended by adding at the end 
the following:
            ``(6) Assistant ustr for specialty crops.--
                    ``(A) Establishment.--There is established in the 
                Office the position of Assistant United States Trade 
                Representative for Specialty Crops.
                    ``(B) Appointment.--The Assistant United States 
                Trade Representative for Specialty Crops shall be 
                appointed by the United States Trade Representative.
                    ``(C) Primary function.--The primary function of 
                the Assistant United States Trade Representative for 
                Specialty Crops shall be--
                            ``(i) to promote the trade interests of 
                        specialty crop businesses;
                            ``(ii) to remove foreign trade barriers 
                        that impede specialty crop businesses; and
                            ``(iii) to enforce existing trade 
                        agreements beneficial to specialty crop 
                        businesses.
                    ``(D) Pay.--The Assistant United States Trade 
                Representative for Specialty Crops shall be paid at the 
                level of a member of the Senior Executive Service with 
                equivalent time and service.''.
    (b) Study of Uruguay Round Table Agreement Benefits.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on the benefits of the agreements 
        approved by Congress under section 101(a)(1) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3511(a)(1)) to specialty crop 
        businesses.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report describing the results of the study conducted 
        under paragraph (1).
    (c) Foreign Market Access Strategy.--Not later than 1 year after 
the date of the enactment of this Act, the Secretary of Agriculture 
shall develop and implement a foreign market access strategy to 
increase exports of specialty crops to foreign markets.

SEC. 10. INCREASED AUTHORIZATION FOR TECHNICAL ASSISTANCE FOR SPECIALTY 
              CROPS.

    Section 3205(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 5680(d)) is amended by striking ``$2,000,000'' and 
inserting ``$10,000,000''.
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