§ 1505. Management of Corporation

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1938

   Agricultural Adjustment Act of 1938

   Pub. L. 75–30 · 52 Stat. 31

   Enacted · 7 U.S.C. § 1505

   Feb. 16, 1938, ch. 30, title V, § 505, 52 Stat. 72

   Source evidence

   Code source credit
   Feb. 16, 1938, ch. 30, title V, § 505, 52 Stat. 72

2. 1949

   Public Law not identified

   Changed · 7 U.S.C. § 1505(c)

   Subsec. (c). Act Aug. 25, 1949, reduced compensation of members of Board of Directors who are not Government employees from “not to exceed $100 per day” to “not to exceed $50 per day”, and changed from “subsistence expenses” to “transportation expenses and not to exceed $10 per diem”

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Subsec. (c). Act Aug. 25, 1949, reduced compensation of members of Board of Directors who are not Government employees from “not to exceed $100 per day” to “not to exceed $50 per day”, and changed from “subsistence expenses” to “transportation expenses and not to exceed $10 per diem”.

3. 1980

   Federal Crop Insurance Act of 1980

   Pub. L. 96–365 § 102(a) · 94 Stat. 1312

   Substituted · 7 U.S.C. § 1505(a)

   Pub. L. 96–365, § 102(a), increased Board membership to seven from five persons; substituted provisions including on the Board the Under Secretaries or Assistant Secretaries of Agriculture for crop insurance and farm credit programs and one person experienced in crop insurance business for former provisions including on the Board two other Agriculture Department employees and two persons with insurance business experience; authorized appointment of three active farmers not otherwise Federal employees; and required farmer appointees to be policyholders and representative of agricultural interests of different geographic areas

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 96–365, § 102(a), increased Board membership to seven from five persons; substituted provisions including on the Board the Under Secretaries or Assistant Secretaries of Agriculture for crop insurance and farm credit programs and one person experienced in crop insurance business for former provisions including on the Board two other Agriculture Department employees and two persons with insurance business experience; authorized appointment of three active farmers not otherwise Federal employees; and required farmer appointees to be policyholders and representative of agricultural interests of different geographic areas.

   Enacted provision · exact public law section
   (a) Section 505(a) of the Federal Crop Insurance Act is amended by— (1) amending the second sentence to read as follows: “The Board shall consist of the manager of the Corporation, the Under Secretary or Assistant Secretary of Agriculture responsible for the Federal crop insurance program, the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture, one person experienced in the crop insurance business who is not otherwise employed by the Federal Government, and three active farmers who are not otherwise employed by the Federal Government.”; and (2) adding at the end thereof a new sentence as follows: “The Secretary, m appointing the three active farmers who are not otherwise employed by the Federal Government, shall ensure that such members are policyholders and are from different geographic areas of the United States, in order that diverse agricultural interests in the United States are at all times represented on the Board.”.

4. 1980

   Federal Crop Insurance Act of 1980

   Pub. L. 96–365 § 102(b) · 94 Stat. 1312

   Substituted · 7 U.S.C. § 1505(b)

   Pub. L. 96–365, § 102(b), substituted “four” for “three” in two places

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 96–365, § 102(b), substituted “four” for “three” in two places.

   Enacted provision · exact public law section
   (b) Section 505(b) of the Federal Crop Insurance Act is amended by striking out “three” wherever that word appears therein and inserting in lieu thereof “four”.

5. 1980

   Federal Crop Insurance Act of 1980

   Pub. L. 96–365 § 102(c) · 94 Stat. 1312

   Substituted · 7 U.S.C. § 1505(c)

   Pub. L. 96–365, § 102(c), substituted as limitation on compensation of Directors of the Corporation not employed by the Federal Government the daily equivalent of rate prescribed for grade GS–18 under section 5332 of title 5 when actually employed, and actual necessary traveling and subsistence expenses, or the per diem allowance in lieu of subsistence expenses, as authorized by section 5703 of title 5 for persons in Government service employed intermittently, when on the business of the Corporation away from their homes or regular places of business for former limitation of $50 per day when actually employed and transportation expenses plus not to exceed $10 per diem in lieu of subsistence expenses when on business of the Corporation away from their homes or regular places of business

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 96–365, § 102(c), substituted as limitation on compensation of Directors of the Corporation not employed by the Federal Government the daily equivalent of rate prescribed for grade GS–18 under section 5332 of title 5 when actually employed, and actual necessary traveling and subsistence expenses, or the per diem allowance in lieu of subsistence expenses, as authorized by section 5703 of title 5 for persons in Government service employed intermittently, when on the business of the Corporation away from their homes or regular places of business for former limitation of $50 per day when actually employed and transportation expenses plus not to exceed $10 per diem in lieu of subsistence expenses when on business of the Corporation away from their homes or regular places of business.

   Enacted provision · exact public law section
   (c) The second sentence of section 505(c) of the Federal Crop Insurance Act is amended to read as follows: “The Directors of the Corporation who are not employed by the Federal Government shall be paid such compensation for their services as Directors as the Secretary of Agriculture shall determine, but such compensation shall not exceed the daily equivalent of the rate prescribed for grade GS–18 under section 5332 of title 5 of the United States Code when 5 USC 5332 note. actually employed, and actual necessary traveling and subsistence expenses, or a per diem allowance in lieu of subsistence expenses, as authorized by section 5703 of title 5 of the United States Code for persons in Government service employed intermittently, when on the business of the Corporation away from their homes or regular places of business.”.

6. 1994

   Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

   Pub. L. 103–354 § 102(b)(3) · 108 Stat. 3178

   Struck · 7 U.S.C. § 1505(a)

   Pub. L. 103–354, § 102(b)(3), (4)(A), (C), in first sentence struck out “of Directors (hereinafter called the ‘Board’)” after “Board” and “of Agriculture” after “Secretary”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 103–354, § 102(b)(3), (4)(A), (C), in first sentence struck out “of Directors (hereinafter called the ‘Board’)” after “Board” and “of Agriculture” after “Secretary”.

   Enacted provision · exact public law section
   (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is amended by striking “(hereinafter called the ‘Board’)”.

7. 1994

   Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

   Pub. L. 103–354 § 103 · 108 Stat. 3178

   1. Struck · 7 U.S.C. § 1505(a)

      Pub. L. 103–354, § 103, in second sentence struck out “or Assistant Secretary” after “Corporation, the Under Secretary”

   2. Substituted · 7 U.S.C. § 1505(a)

      Pub. L. 103–354, § 103, in second sentence substituted “one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture)” for “the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 103–354, § 103, in second sentence struck out “or Assistant Secretary” after “Corporation, the Under Secretary” and substituted “one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture)” for “the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture”.

   Enacted provision · exact public law section
   SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION. The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended— (1) by striking “or Assistant Secretary” the first place it appears; and (2) by striking “the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture” and inserting “one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture)”.

8. 1994

   Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

   Pub. L. 103–354 § 115(a)(1) · 108 Stat. 3178

   Substituted · 7 U.S.C. § 1505(a)

   Pub. L. 103–354, § 115(a)(1), substituted “The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.” for former third sentence which read as follows: “The Board shall be appointed by, and hold office at the pleasure of the Secretary, who shall not, himself, be a member of the Board.”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 103–354, § 115(a)(1), substituted “The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.” for former third sentence which read as follows: “The Board shall be appointed by, and hold office at the pleasure of the Secretary, who shall not, himself, be a member of the Board.”

   Enacted provision · exact public law section
   (1) in subsection (a), by striking the third sentence and inserting “The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.”; and

9. 1994

   Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

   Pub. L. 103–354 § 102(b)(4)(C) · 108 Stat. 3178

   Struck · 7 U.S.C. § 1505(a)

   Pub. L. 103–354, § 102(b)(4)(C), in third sentence struck out “of Agriculture” before “, who shall not”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 103–354, § 102(b)(4)(C), in third sentence struck out “of Agriculture” before “, who shall not”.

   Enacted provision · exact public law section
   (C) by striking “Secretary of Agriculture” each place it appears and inserting “Secretary”.

10. 1994

    Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

    Pub. L. 103–354 § 102(b)(4)(B) · 108 Stat. 3178

    Struck · 7 U.S.C. § 1505(c)

    Pub. L. 103–354, § 102(b)(4)(B), (C), struck out “of Agriculture” after “Department” in first sentence and after “Secretary” in second sentence

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 103–354, § 102(b)(4)(B), (C), struck out “of Agriculture” after “Department” in first sentence and after “Secretary” in second sentence.

    Enacted provision · exact public law section
    (B) by striking “Department of Agriculture” each place it appears and inserting “Departments”; and

11. 1994

    Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994

    Pub. L. 103–354 title I · 108 Stat. 3178

    1. Substituted · 7 U.S.C. § 1505(d)

       Pub. L. 103–354, §§ 102(b)(4)(C), 115(a)(2), in first sentence struck out “upon him” before “by the Board”, and in second sentence substituted “The manager shall” for “He shall”

    2. Struck · 7 U.S.C. § 1505(d)

       Pub. L. 103–354, §§ 102(b)(4)(C), 115(a)(2), in first sentence struck out “of Agriculture” after “Secretary”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 103–354, §§ 102(b)(4)(C), 115(a)(2), in first sentence struck out “upon him” before “by the Board”, and in second sentence substituted “The manager shall” for “He shall” and struck out “of Agriculture” after “Secretary”.

    Enacted provision · exact public law
    TITLE I— FEDERAL CROP INSURANCE REFORM SEC. 101. SHORT TITLE; REFERENCES. (a) Short Title.— This title may be cited as the “Federal 7 USC 1501 note. Crop Insurance Reform Act of 1994”. (b) References to Federal Crop Insurance Act.— Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of. a section or other provision, the reference shall be considered to be made to a section or other provision of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). SEC. 102. DEFINITIONS. (a) In General.— Section 502 (7 U.S.C. 1502) is amended— (1) by striking the section heading and “Sec. 502.” and inserting the following: “SEC. 502. PURPOSE AND DEFINITIONS. “(a) Purpose.— and (2) by adding at the end the following new subsection: “(b) Definitions.— As used in this title: “(1) Additional coverage.— The term ‘additional coverage’ means a plan of crop insurance coverage providing a level of coverage greater than the level available under catastrophic risk protection. “(2) Approved insurance provider.— The term ‘approved insurance provider’ means a private insurance provider that has been approved by the Corporation to provide insurance coverage to producers participating in the Federal crop insurance program established under this title. “(3) Board.— The term “Board’ means the Board of Directors of the Corporation established under section 505(a). “(4) Corporation.— The term ‘Corporation’ means the Federal Crop Insurance Corporation established under section 503. “(5) Department.— The term ‘Department’ means the United States Department of Agriculture. “(6) Loss ratio.— The term ‘loss ratio’ means the ratio of all sums paid by the Corporation as indemnities under any eligible crop insurance policy to that portion of the premium designated for anticipated losses and a reasonable reserve, other than that portion of the premium designated for operating and administrative expenses. “(7) Secretary.— -The term ‘Secretary’ means the Secretary of Agriculture. “(8) Transitional yield.— The term ‘transitional yield’ means the maximum average production per acre or equivalent measure that is assigned to acreage for a crop year by the Corporation in accordance with the regulations of the Corporation whenever the producer fails— “(A) to certify that acceptable documentation of production and acreage for the crop year is in the possession of the producer, or “(B) to present the acceptable documentation on the demand of the Corporation or an insurance company reinsured by the Corporation.”. (b) Conforming Amendments.— (1) The first sentence of section 503 (7 U.S.C. 1503) is amended by striking “(herein called the Corporation)”. (2) Section 504 (7 U.S.C. 1504) is amended— (A) in subsection (a), by striking “Board of Directors of the Corporation” and inserting “Board”; and (B) in subsection (d), by striking “Federal Crop Insurance Corporation” and inserting “Corporation”. (3) The first sentence of section 505(a) (7 U.S.C. 1505(a)) is amended by striking “(hereinafter called the ‘Board’)”. (4) Except in section 502, the Act is amended— 7 USC 1501 et seq. (A) by striking “Board of Directors” each place it appears and inserting “Board”; (B) by striking “Department of Agriculture” each place it appears and inserting “Departments”; and (C) by striking “Secretary of Agriculture” each place it appears and inserting “Secretary”. SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION. The second sentence of section 505(a) (7 U.S.C. 1505(a)) is amended— (1) by striking “or Assistant Secretary” the first place it appears; and (2) by striking “the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture” and inserting “one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture)”. SEC. 104. GENERAL POWERS. Section 506 (7 U.S.C. 1506) is amended— (1) by redesignating subsections (j) through (n) as subsections (k) through (o), respectively; (2) by inserting after subsection (i) the following new subsection: “(j) Settling Claims.— The Corporation shall have the authority to make final and conclusive settlement and adjustment of any claim by or against the Corporation or a fiscal officer of the Corporation.”; (3) in subsection (1) (as so redesignated)— (A) in the first sentence, by inserting “, and issue regulations,” after “agreements”; and (B) in the second sentence, by striking “contracts or agreements” each place it appears and inserting “contracts, agreements, or regulations”; (4) in subsection (n)(1) (as so redesignated), by striking subparagraph (B) and inserting the following new subparagraph: “(B) disqualify the person from purchasing catastrophic risk protection or receiving noninsured assistance for a period of not to exceed 2 years, or from receiving any other benefit under this title for a period of not to exceed 10 years.”; (5) in subsection (o) (as so redesignated)— (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D) and aligning the margins of each subparagraph with the margins of subparagraph (A) of subsection (n)(1) (as redesignated by paragraph (1)); (B) by striking “(o) Actuarial Soundness.—The Corporation” and inserting the following: “(o) Actuarial Soundness.— “(1) Projected loss ratio as of October 1, 1995.— The Corporation”; (C) in subparagraph (A) (as redesignated by subparagraph (A)), by striking “from obtaining adequate Federal crop insurance, as determined by the Corporation” and inserting “(as defined by the Secretary) from obtaining Federal crop insurance”; (D) in subparagraph (C) (as so redesignated)— (i) by inserting “, agents, and loss adjusters” after “participating producers”; and (ii) by inserting “, agents, and loss adjusters” after “identify insured producers”; and (E) by adding at the end the following new paragraphs: “(2) Projected loss ratio as of October 1, 1998.— The Corporation shall take such actions, including the establishment of adequate premiums, as are necessary to improve the actuarial soundness of Federal multiperil crop insurance made available under this title to achieve, on and after October 1, 1998, an overall projected loss ratio of not greater than 1.075. “(3) Nonstandard classification system.— To the extent that the Corporation uses the nonstandard classification system, the Corporation shall apply the system to all insured producers in a fair and consistent manner.”; and (6) by adding at the end the following new subsections: “(p) Regulations.— The Secretary and the Corporation are each authorized to issue such regulations as are necessary to carry out this title. “(q) Program Compliance.— “(1) Timeliness.— The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as the issues develop. “(2) Notification of compliance problems.— The Corporation shall notify in writing any approved insurance provider with whom the Corporation has an agreement under this title of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. The notice shall be given within 3 years of the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limit shall not apply with respect to errors, omissions, or procedural violations that are willful or intentional. The failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation. “(r) Purchase of American-Made Equipment and Products.— “(1) Sense of congress.— It is the sense of Congress that, to the greatest extent practicable, all equipment and products purchased by the Corporation using funds made available to the Corporation should be American-made. “(2) Notice requirement.— In providing financial assistance to, or entering into any contract with, any entity for the purchase of equipment and products to carry out this title, the Corporation, to the greatest extent practicable, shall provide to the entity a notice describing the statement made in paragraph (1).”. SEC. 105. PERSONNEL. Section 507 (7 U.S.C. 1507) is amended— (1) in subsection (a), by striking “, and county crop insurance committeemen”; (2) in subsection (d), by striking “of this Act,” and all that follows through “agency”; and (3) by adding at the end the following new subsection: “(g) (1) The Corporation shall establish a management-level position to be known as the Specialty Crops Coordinator. “(2) The Specialty Crops Coordinator shall have primary responsibility for addressing the needs of specialty crop producers, and for providing information and advice, m connection with the activities of the Corporation to improve and expand the insurance program for specialty crops. In carrying out this paragraph, the Specialty Crops Coordinator shall act as the liaison of the Corporation with representatives of specialty crop producers and assist the Corporation with the knowledge, expertise, and familiarity of the producers with risk management and production issues pertaining to specialty crops. “(3) The Specialty Crops Coordinator shall use information collected from Corporation field office directors in States in which specialty crops have a significant economic effect and from other sources, including the extension service and colleges and universities.”. SEC. 106. CROP INSURANCE. Section 508 (7 U.S.C. 1508) is amended to read as follows: “SEC. 508. CROP INSURANCE. “(a) Authority to Offer Insurance.— “(1) In general..— If sufficient actuarial data are available (as determined by the Corporation), the Corporation may insure, or provide reinsurance for insurers of, producers of agricultural commodities grown in the United States under 1 or more plans of insurance determined by the Corporation to be adapted to the agricultural commodity concerned. To qualify for coverage under a plan of insurance, the losses of the insured commodity must be due to drought, flood, or other natural disaster (as determined by the Secretary). “(2) Period.— Except in the cases of tobacco and potatoes, insurance shall not extend beyond the period during which the insured commodity is in the field. As used in the preceding sentence, in the case of an aquacultural species, the term ‘field’ means the environment in which the commodity is produced. “(3) Exclusions.— Insurance provided under this subsection shall not cover losses due to— “(A) the neglect or malfeasance of the producer; “(B) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or “(C) the failure of the producer to follow good farming practices (as determined by the Secretary). “(4) Expansion to other areas or single producers.— “(A) Area expansion.— The Corporation may offer plans of insurance or reinsurance for production of agricultural commodities in the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Common-wealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau in the same manner as provided in this section for production of agricultural commodities in the United States. “(B) Producer expansion.— In an area in the United States or specified in subparagraph (A) where crop insurance is not available for a particular agricultural commodity, the Corporation may offer to enter into a written agreement with an individual producer operating in the area for insurance coverage under this title if the producer has actuarially sound data relating to the production by the producer of the commodity and the data is acceptable to the Corporation. “(5) Dissemination of crop insurance information.— The Corporation shall make available to producers through local offices of the Department— “(A) current and complete information on all aspects of Federal crop insurance; and “(B) a listing of insurance agents and companies offering to sell crop insurance in the area of the producers. “(6) Addition of new and specialty crops.— “(A) Data collection.— Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines for publication in the Federal Register for data collection to assist the Corporation in formulating crop insurance policies for new and specialty crops. “(B) Addition of new crops.— Not later than 1 year after the date of enactment of this paragraph, and annually thereafter, the Corporation shall report to Congress on the progress and expected timetable for expanding crop insurance coverage under this title to new and specialty crops. “(C) Addition of direct sale perishable crops.— Not later than 1year after the date of enactment of this paragraph, the Corporation shall report to Congress on the feasibility of offering a crop insurance program designed to meet the needs of specialized producers of vegetables and other perishable crops who market through direct marketing channels. “(b) Catastrophic Risk Protection.— “(1) In general.— The Corporation shall offer a catastrophic risk protection plan to indemnify producers for crop loss due to loss of yield or prevented planting, if provided by the Corporation, when the producer is unable, because of drought, flood, or other natural disaster (as determined by the Secretary), to plant other crops for harvest on the acreage for the crop year. “(2) Amount of coverage.— “(A) In general.— Subject to subparagraph (B)— “(i) in the case of each of the 1995 through 1998 crop years, catastrophic risk protection shall offer a producer coverage for a 50 percent loss in yield, on an individual yield or area yield basis, indemnified at 60 percent of the expected market price, or a comparable coverage (as determined by the Corporation); and “(ii) in the case of each of the 1999 and subsequent crop years, catastrophic risk protection shall offer a producer coverage for a 50 percent loss in yield, on an individual yield or area yield basis, indemnified at 55 percent of the expected market price, or a comparable coverage (as determined by the Corporation). “(B) Reduction in actual payment.— The amount paid to a producer on a claim under catastrophic risk protection may reflect a reduction that is proportional to the out-of-pocket expenses that are not incurred by the producer as a result of not planting, growing, or harvesting the crop for which the claim is made, as determined by the Corporation. “(3) Yield and loss basis.— A producer shall have the option of basing the catastrophic coverage of the producer on an individual yield and loss basis or on an area yield and loss basis, if both options are offered by the Corporation. “(4) Sale of catastrophic risk coverage.— “(A) In general.— Catastrophic risk coverage may be offered by— “(i) approved insurance providers, if available in an area; and “(ii) at the option of the Secretary that is based on considerations of need, local offices of the Department “(B) Need.— For purposes of considering need under subparagraph (A)(ii), the Secretary may take into account the most efficient and cost-effective use of resources, the availability of personnel, fairness to local producers, the needs and convenience of local producers, and the availability of private insurance carriers. “(5) Administrative fee.— “(A) Fee required.— Producers shall pay an administrative fee for catastrophic risk protection. The administrative fee for each producer shall be $50 per crop per county, but not to exceed $200 per producer per county up to a maximum of $600 per producer for all counties in which a producer has insured crops. The administrative fee shall be paid by the producer at the time the producer applies for catastrophic risk protection. “(B) Use of fees.— “(i) Fees up to $100.— “(I) Fees collected by usda offices.— Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an office of the Department shall be credited to the appropriations account providing funds for the payment or operating and administrative expenses incurred for the delivery of catastrophic risk protection under this section. The fees shall be collected in accordance with appropriation Acts and shall be available until expended without fiscal year limitation for the payment of the expenses. “(II) Fees collected by approved insurance pro3s.— Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an approved insurance provider shall be retained by the pro-vider as payment for operating and administrative expenses incurred for the delivery of catastrophic risk protection. “(ii) Fees in excess of $100—Notwithstanding the authority granted to the Secretary under the Federal Crop Insurance Corporation account provisions of the Agricultural, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1995, all fees collected under this subsection in excess of $100 per producer per county shall be deposited in the crop insurance fund established under section 516(c), to be available for the programs and activities of the Corporation. “(C) Waiver of fee.— The Corporation shall waive the administrative fee for limited resource farmers, as defined by the Corporation. “(6) Participation requirement.— A producer may obtain catastrophic risk coverage for a crop of the producer on land in the county only if the producer obtains the coverage for the crop on all insurable land of the producer in the county. “(7) Eligibility for department programs.— “(A) In general.— To be eligible for any price support or production adjustment program, the conservation reserve program, or any benefit described in section 371 of the Consolidated Farm and Rural Development Act, the producer must obtain at least the catastrophic level of insurance for each crop of economic significance grown on each farm in the county in which the producer has an interest, if insurance is available in the county for the crop. “(B) Definition of crop of economic significance.— As used in this paragraph, the term ‘crop of economic significance’ means a crop that has contributed, or is expected to contribute, 10 percent or more of the total expected value of all crops grown by the producer. “(8) Limitation due to risk.— The Corporation may limit catastrophic risk coverage in any county or area, or on any farm, on the basis of the insurance risk concerned. “(9) Transitional coverage for 1995 crops.— Effective only for a 1995 crop planted or for which insurance attached prior to January 1, 1995, the Corporation shall allow producers of the crops until not later than the end of the 180-day period beginning on the date of enactment of the Federal Crop Insurance Reform Act of 1994 to obtain catastrophic risk protection for the crop. On enactment of such Act, a producer who made timely purchases of a crop insurance policy before the date of enactment of such Act, under the provisions of this title then in effect, shall be eligible for the same benefits to which a producer would be entitled under comparable additional coverage under subsection (c). “(10) Simplification.— “(A) Catastrophic risk protection plans.— In developing and carrying out the policies and procedures for a catastrophic risk protection plan under this title, the Corporation shall, to the maximum extent practicable, minimize the paperwork required and the complexity and costs of procedures governing applications for, processing, and servicing of the plan for all parties involved. “(B) Other plans.— To the extent that the policies and procedures developed under subparagraph (A) may be applied to other plans of insurance offered under this title without jeopardizing the actuarial soundness or integrity of the crop insurance program, the Corporation shall apply the policies and procedures to the other plans of insurance within a reasonable period of time (as determined by the Corporation) after the effective date of this paragraph. “(c) General Coverage Levels.— “(1) Additional coverage generally.— “(A) In general.— The Corporation shall offer to producers of agricultural commodities grown in the United States plans of crop insurance that provide additional coverage. “(B) Purchase.— To be eligible for additional coverage, a producer must apply to an approved insurance provider for purchase of additional coverage if the coverage is available from an approved insurance provider. If additional coverage is unavailable privately, the Corporation may offer additional coverage plans of insurance directly to producers. “(2) Transfer of relevant information.— If a producer has already applied for catastrophic risk protection at the local office of the Department and elects to purchase additional coverage, the relevant information for the crop of the producer shall be transferred to the approved insurance provider servicing the additional coverage crop policy. “(3) Yield and loss basis.— A producer shall have the option of purchasing additional coverage based on an individual ' 1 and loss basis or on an area yield and loss basis, if options are offered by the Corporation. “(4) Level of coverage.— The level of coverage shall be dollar denominated and may be purchased at any level not to exceed 85 percent of the individual yield or 95 percent of the area yield (as determined by the Corporation). Not later than the beginning of the 1996 crop year, the Corporation shall provide producers with information on catastrophic risk and additional coverage in terms of dollar coverage (within the allowable limits of coverage provided in this paragraph). “(5) Price level.— The Corporation shall establish a price level for each commodity on which insurance is offered that— “(A) shall not be less than the projected market price for the commodity (as determined by the Corporation); or “(B) at the discretion of the Corporation, may be based on the actual market price at the time of harvest (as determined by the Corporation). “(6) Price elections.— “(A) In general.— Subject to subparagraph (B), insurance coverage shall be made available to a producer on the basis of any price election that equals or is less than the price election established by the Corporation. The coverage shall be quoted in terms of dollars per acre. “(B) Minimum price elections.— The Corporation may establish minimum price elections below winch levels of insurance shall not be offered. “(C) Wheat classes and malting barley.— The Corporation shall, as the Corporation determines practicable, offer producers different price elections for classes of wheat and malting barley (including contract prices in the case of malting barley), in addition to the standard price election, that reflect different market prices, as determined by the Corporation. The Corporation shall, as the Corporation determines practicable, offer additional coverage for each class determined under this subparagraph and charge a premium for each class that is actuarially sound. “(7) Fire and hail coverage.— For levels of additional coverage equal to 65 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, a producer may elect to delete from the additional coverage any coverage against damage caused by fire and hail if the producer obtains an equivalent or greater dollar amount of coverage for damage caused by fire and hail from an approved insurance provider. On written notice of the election to the company issuing the policy providing additional coverage and submission of evidence of substitute coverage on the commodity insured, the premium of the producer shall be reduced by an amount determined by the Corporation to be actuarially appropriate, taking into account the actuarial value of the remaining coverage provided by the Corporation. In no event shall the producer be given credit for an amount of premium determined to be greater than the actuarial value of the protection against losses caused by fire and hail that is included in the additional coverage for the crop. “(8) State premium subsidies.— The Corporation may enter into an agreement with any State or agency of a State under which the State or agency may pay to the approved insurance provider an additional premium subsidy to farther reduce the portion of the premium paid by producers in the State. “(9) Limitations on additional coverage.— The Board may limit the availability of additional coverage under this subsection in any county or area, or on any farm, on the basis of the insurance risk involved. The Board shall not offer additional coverage equal to less than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage. “(10) Administrative fee.— “(A) Fee required.— Except as otherwise provided in this paragraph, if a producer elects to purchase additional coverage for a crop at a level that is less than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the producer shall pay an administrative fee for the additional coverage. Subsection (b)(5) shall apply in determining the amount and use of the administrative fee or in determining whether to waive the administrative fee. “(B) Exception.— If a producer elects to purchase additional coverage for a crop equal to 65 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the producer shall not be subject to the administrative fee required by this paragraph or subsection (b)(5). If the producer has already paid the administrative fee for a lower level of coverage for the crop, the administrative fee shall be refunded to the producer unless the refund would reduce to less than $200 the total amount of the administrative fees paid by the producer for 2 or more crops in the same county for which a lower level of coverage is obtained. “(C) Additional fee.— If a producer elects to purchase additional coverage for a crop equal to or exceeding 65 percent of the recorded or appraised average yield and 100 percent of the expected market price or an equivalent coverage, the producer shall pay an administrative fee of $10 for the coverage. If a producer has already paid an administrative fee for lesser coverage for the crop, the fee for lesser coverage shall be refunded to the producer unless the producer has paid the maximum fee for lesser coverage and refund of the fee will not reduce the amount to be paid below the maximum amount “(D) Deposit of fees.— Notwithstanding the authority granted to the Secretary under the Federal Crop Insurance Corporation account provisions of the Agricultural, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act 1995, administrative fees collected under subparagraph (B) in excess of $100 per producer per county and under subparagraph (C) shall be deposited in the insurance fund established under section 516(c) to be available for the programs and activities of the Corporation. “(d) “(1) Premiums required.— The Corporation shall fix adequate premiums for all the plans of insurance of the Corporation at such rates as the Board determines are actuarially sufficient to attain an expected loss ratio of not greater than 1.1 through September 30, 1998, and not greater than 1.075 after October 1, 1998. “(2) Premium amounts.— The premium amounts for catastrophic risk protection under subsection (b) and additional coverage under subsection (c) shall be fixed as follows: “(A) In the case of catastrophic risk protection, the amount of the premium shall be sufficient to cover anticipated losses and a reasonable reserve. “(B) In the case of additional coverage below 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, but greater than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, 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 by the Corporation. “(C) In the case of additional coverage equal to or greater than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, 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 by the Corporation, on an industry-wide basis as a percentage of the amount of the premium used to define loss ratio. “(e) Payment of Portion of Premium by Corporation.— “(1) In general.— For the purpose of encouraging the broadest possible participation of producers in the catastrophic risk protection provided under subsection (b) and the additional coverage provided under subsection (c), the Corporation shall pay a part of the premium in the amounts provided in accordance with this subsection. “(2) Amount of payment.— The amount of the premium to be paid by the Corporation shall be as follows: “(A) In the case of catastrophic risk protection, the amount shall be equivalent to the premium established for catastrophic risk protection under subsection (d)(2)(A). “(B) In the case of coverage below 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, but greater than 50 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, the amount shall be equivalent to the amount of premium established for catastrophic risk protection coverage and the amount of operating and administrative expenses established under subsection (d)(2)(B). “(C) In the case of coverage equal to or greater than 65 percent of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage, on an individual or area basis, the amount shall be equivalent to an amount equal to the premium established for 50 percent loss in yield indemnified at 75 percent of the expected market price and the amount of operating and administrative expenses established under subsection (d)(2)(C). “(3) Premium reduction.— If an approved insurance provider determines that the provider may provide insurance more efficiently than the expense reimbursement amount established by the Corporation, the approved insurance provider may reduce, subject to the approval of the Corporation, the premium charged the insured by an amount corresponding to the efficiency. The approved insurance provider shall apply to the Corporation for authority to reduce the premium before making such a reduction, and the reduction shall be subject to the rules, limitations, and procedures established by the Corporation. “(4) Individual and area crop insurance coverage.— The Corporation shall allow approved insurance providers to offer a plan of insurance to producers that combines both individual yield coverage and area yield coverage at a premium rate determined by the provider under the following conditions: “(A) The individual yield coverage shall he equal to or greater than catastrophic risk protection as described in subsection (b). “(B) The combined policy shall include area yield coverage that is offered by the Corporation or similar area coverage, as determined by the Corporation. “(C) The Corporation shall provide reinsurance on th— area yield portion of the combined policy at the request of the provider, except that the provider shall agree to pay to the producer any portion of the area yield and loss indemnity payment received from the Corporation or a commercial reinsurer that exceeds the individual indemnity payment made by the provider to the producer. “(D) The Corporation shall pay a part of the premium equivalent to— “(i) the amount authorized under paragraph (2) (except provisions regarding operating and administrative expenses); and “(ii) the amount of operating and administrative expenses authorized by the Corporation for the area yield coverage portion of the combined policy. “(E) The provider shall provide all underwriting services for the combined policy, including the determination of individual yield coverage premium rates, the terms and conditions of the policy, and the acceptance and classification of applicants into risk categories, subject to subparagraph (F). “(F) The Corporation shall approve the combined policy unless the Corporation determines that the policy is not actuarially sound or that the interests of producers are not adequately protected. “(f) “(1) In general.— To participate in catastrophic risk protection coverage under this section, a producer shall submit an application at the local office of the Department or to an approved insurance provider. “(2) Sales closing date.— For coverage under this title, each producer shall purchase crop insurance on or before the sales closing date for the crop by providing the required information and executing the required documents. Subject to the goal of ensuring actuarial soundness for the crop insurance program, the sales closing date shall be established by the Corporation to maximize convenience to producers in obtaining benefits under price and production adjustment programs of the Department Beginning with the 1995 crop year, the Corporation shall establish, for an insurance policy for each insurable crop that is planted in the spring, a sales closing date that is 30 days earlier than the corresponding sales closing date that was established for the 1994 crop year. “(3) Records and reporting.— To obtain catastrophic risk protection under subsection (b) or additional coverage under subsection (c), a producer shall— “(A) provide, to the extent required by the Corporation, records acceptable to the Corporation of historical acreage and production of the crops for which the insurance is sought or accept a yield determined by the Corporation; and “(B) report acreage planted and prevented from planting by the designated acreage reporting date for the crop and location as established by the Corporation. “(g) Yield Determinations.— “(1) In general.— Subject to paragraph (2), the Corporation shall establish crop insurance underwriting rules that ensure that yield coverage, as specified in this subsection, is provided to eligible producers obtaining catastrophic risk protection under subsection (b) or additional coverage under subsection (c). “(2) Yield coverage plans.— “(A) Actual production history.— Subject to subparagraph (B), the yield for a crop shall be based on the actual production history for the crop, if the crop was produced on the farm without penalty during each of the 4 crop years immediately preceding the crop year for which actual production history is being established, building up to a production data base for each of the 10 consecutive crop years preceding the crop year for which actual production history is being established. “(B) Assigned yield.— If the producer does not provide satisfactory evidence of the yield of a commodity under subparagraph (A), the producer shall be assigned a yield that is not less than 65 percent of the transitional yield of the producer (adjusted to reflect actual production reflected in the records acceptable to the Corporation for continuous years), as specified in regulations issued by the Corporation based on production history requirements. “(C) Area yield.— The Corporation may offer a crop insurance plan based on an area yield that allows an insured producer to qualify for an indemnity if a loss has occurred in an area (as specified by the Corporation) in which the farm of the producer is located. Under an area yield plan, an insured producer shall be allowed to select the level of area production at which an indemnity will be paid consistent with such terms and conditions as are established by the Corporation. “(D) Commodity-by-commodity basis.— A producer may choose between individual yield or area yield coverage or combined coverage (as provided in subsection (e)(4)), if available, on a commodity-by-commodity basis. “(3) Transitional yields for producers of feed or FORAGE.— “(A) In general.— If a producer does not provide satisfactory evidence of a yield under paragraph (2)(A), the producer shall be assigned a yield that is at least 80 percent of the transitional yield established by the Corporation (adjusted to reflect the actual production history of the producer) if the Secretary determines that— “(i) the producer grows feed or forage primarily for on-farm use in a livestock, dairy, or poultry operation; and “(ii) over 50 percent of the net farm income of the producer is derived from the operation. “(B) Yield calculation.— The Corporation shall— “(i) for the first year of participation of a producer, provide the assigned yield under this paragraph to the producer of feed or forage; and “(ii) for the second year of participation of the producer, apply the actual production history or assigned yield requirement, as provided in this subsection. “(C) Termination of authority.— The authority provided by this paragraph shall terminate on the date that is 3 years after the effective date of this paragraph. “(h) Submission of Policies and Materials to Board.— “(1) In general.— In addition to any standard forms or policies that the Board may require be made available to producers under subsection (c), a person may prepare for submission or propose to the Board— “(A) other crop insurance policies and provisions of policies; and “(B) rates of premiums for multiple peril crop insurance pertaining to wheat, soybeans, field corn, and any other crops determined by the Secretary. “(2) Submission of policies.— A policy or other material submitted to the Board under this subsection may be prepared without regard to the limitations contained in this title, including the requirements concerning the levels of coverage and rates and the requirement that a price level for each commodity insured must equal the expected market price for the commodity as established by the Board. In the case of such a policy, the payment by the Corporation of a portion of the premium of the policy may not exceed the amount that would otherwise be authorized under subsection (e). “(3) Review and approval by the board.— A policy or other material submitted to the Board under this subsection shall be reviewed by the Board and, if the Board finds that the interests of producers are adequately protected and that any premiums charged to the producers are actuarially appropriate, shall be approved by the Board for reinsurance and for sale to producers as an additional choice at actuarially appropriate rates and under appropriate terms and conditions. The Corporation may enter into more than 1 reinsurance agreement with the approved insurance provider simultaneously to facilitate the offering of the new policies. “(4) Guidelines for submission and review.— The Corporation Regulations. shall issue regulations to establish guidelines for the submission, and Board review, of policies or other material submitted to the Board under this subsection. At a minimum, the guidelines shall ensure the following: “(A) A proposal submitted to the Board under this subsection snail be considered as confidential commercial or financial information for purposes of section 552(b)(4) of title 5, United States Code, until approved by the Board. A proposal disapproved by the Board shall remain confidential commercial or financial information. “(B) The Board shall provide an applicant with the opportunity to present the proposal to the Board in person it the applicant so desires. “(C) The Board shall provide an applicant with notification of intent to disapprove a proposal not later than 30 days prior to making the disapproval. An applicant that receives the notification may modify the application of the applicant. Any modification shall be considered an original application for purposes of this paragraph. “(D) Specific guidelines shall prescribe the timing of submission of proposals under this subsection and timely consideration by the Board so that any approved proposal may be made available to all persons reinsured by the Corporation in a manner permitting the persons to participate, if the persons so desire, in offering such a proposal m the first crop year in which the proposal is approved by the Board for reinsurance, premium subsidy, or other support offered by this title. “(5) Required publication.— Any policy, provision of a policy, or rate approved under this subsection shall be published as a notice in the Federal Register and made available to all persons contracting with or reinsured by the Corporation under the terms and conditions of the contract between the Corporation and the person originally submitting the policy or other material. “(6) Pilot cost of production risk protection plan.— “(A) In general.— The Corporation shall offer, to the extent practicable, a cost of production risk protection plan of insurance that indemnifies producers (including new producers) for insurable losses as provided in this paragraph. “(B) Pilot basis.— The cost of production risk protection plan shall— “(i) be established as a pilot project for each of the 1996 and 1997 crop years; and “(ii) be carried out in a number of counties that is determined by the Corporation to be adequate to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers for the plan. “(C) Insurable loss.— An insurable loss shall be incurred by a producer if the gross income of the producer (as determined by the Corporation) is less than an amount determined by the Corporation, as a result of a reduction in yield or price resulting from an insured cause. “(D) Definition of new producer.— As used in this paragraph, the term ‘new producer’ means a person that has not been actively engaged in farming for a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary. “(7) Additional prevented planting policy coverage.— “(A) In general.— Beginning with the 1995 crop year, the Corporation shall oner to producers additional prevented planting coverage that insures producers against losses in accordance with this paragraph. “(B) Approved insurance providers.— Additional prevented planting coverage shall be offered by the Corporation through approved insurance providers. “(C) Timing of loss.— A crop loss shall be covered by the additional prevented planting coverage if— “(i) crop insurance policies were obtained for— “(I) the crop year the loss was experienced; and “(II) the crop year immediately preceding the year of the prevented planting loss; and “(ii) the cause of the loss occurred— “(I) after the sales closing date for the crop in the crop year immediately preceding the loss; and “(II) before the sales closing date for the crop in the year in which the loss is experienced. “(8) Pilot program of assigned yields for new PRODUCERS.— “(A) Program required.— For each of the 1995 and 1996 crop years, the Corporation shall carry out a pilot program to assign to eligible new producers higher assigned yields than would otherwise be assigned to the producers under subsection (g). The Corporation shall include in the pilot program 30 counties that are determined by the Corporation to be adequate to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among new producers for increased assigned yields. “(B) Increased assigned yields.— In the case of an eligible new producer participating in the pilot program, the Corporation shall assign to the new producer a yield that is equal to not less than 110 percent of the transitional yield otherwise established by the Corporation. “(C) Eligible new producer.— The Secretary shall establish a definition of new producer for purposes of determining eligibility to participate in the pilot program. “(i) Adoption of Rates and Coverages.— The Corporation shall adopt, as soon as practicable, rates and coverages that will improve the actuarial soundness of the insurance operations of the Corporation for those crops that are determined to be insured at rates that are not actuarially sound, except that no rate may be increased by an amount of more than 20 percent over the comparable rate of the preceding crop year. “(j) Claims for Losses.— “(1) In general.— Under rules prescribed by the Corporation, Regulations. the Corporation may provide for adjustment and payment of claims for losses. The rules prescribed by the Corporation shall establish standards to ensure that all claims for losses are adjusted, to the extent practicable, in a uniform and timely manner. “(2) Denial of claims.— “(A) In general.— Subject to subparagraph (B), if a claim for indemnity is denied by the Corporation or an approved provider, an action on the claim may be brought against the Corporation or Secretary only in the United States district court for the district in which the insured farm is located. “(B) Statute of limitations.— A suit on the claim may be brought not later than 1 year after the date on which final notice of denial of the claim is provided to the claimant “(3) Indemnification.— The Corporation shall provide approved insurance providers with indemnification, including costs and reasonable attorney fees incurred by the approved insurance provider, due to errors or omissions on the part of the Corporation. “(k) Reinsurance.— “(1) In general.— Notwithstanding any other provision of this title, the Corporation shall, to the maximum extent practicable, provide reinsurance to insurers approved by the Corporation that insure producers of any agricultural commodity under 1 or more plans acceptable to the Corporation. “(2) Terms and conditions.— The reinsurance shall be provided on such terms and conditions as the Board may determine to be consistent with subsections (b) and (c) and sound reinsurance principles. “(3) Share of risk.— The reinsurance agreements of the Corporation with the reinsured companies shall require the reinsured companies to bear a sufficient share of any potential loss under the agreement so as to ensure that the reinsured company will sell and service policies of insurance in a sound and prudent manner, taking into consideration the financial condition of the reinsured companies and the availability of private reinsurance. “(4) Rate.— The rate established by the Board to reimburse approved insurance providers and agents for the administrative and operating costs of the providers and agents shall not exceed— “(A) for the 1997 reinsurance year, 29 percent of the premium used to define loss ratio; “(B) for the 1998 reinsurance year, 28 percent of the premium used to define loss ratio; and “(C) for the 1999 reinsurance year, 27.5 percent of the premium used to define loss ratio. “(5) Cost and regulatory reduction.— Consistent with section 118 of the Federal Crop Insurance Reform Act of 1994, and consistent with maintenance of program integrity, prevention of fraud and abuse, the need for program expansion, and improvement of quality of service to customers, the Board shall alter program procedures and administrative requirements in order to reduce the administrative and operating costs of approved insurance providers and agents in an amount that corresponds to any reduction in the reimbursement rate required under paragraph (4) during the 5-year period beginning on the date of enactment of this paragraph. “(6) Agency discretion.— The determination of whether the Corporation is achieving, or has achieved, corresponding administrative cost savings shall not be subject to administrative review, and is wholly committed to agency discretion within the meaning of section 701(a)(2) of title 5, United States Code. “(7) Plan.— The Corporation shall submit to Congress a plan outlining the measures that will be used to achieve the reduction required under paragraph (5). If the Corporation can identify additional cost reduction measures, the Corporation shall describe the measures in the plan. “(l) Optional Coverages.— The Corporation may offer specific risk protection programs, including protection against prevented planting, wildlife depredation, tree damage and disease, and insect infestation, under such terms and conditions as the Board may determine, except that no program may be undertaken if insurance for the specific risk involved is generally available from private companies. “(m) Research.— “(1) In general.— Except as provided in paragraph (2), the Corporation may conduct research, surveys, pilot programs, and investigations relating to crop insurance and agriculture- related risks and losses including insurance on losses involving reduced forage on rangeland caused by drought and by insect infestation, livestock poisoning and disease, destruction of bees due to the use of pesticides, and other unique special risks related to fruits, nuts, vegetables, aquacultural species, forest industry needs (including appreciation), and other agricultural products as determined by the Board. “(2) Exception.— No action may be undertaken with respect to a risk under paragraph (1) if insurance protection against the risk is generally available from private companies. “(3) Evaluation.— After the completion of any pilot program under this subsection, the Corporation shall evaluate the pilot program and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report of the operations of the pilot program, including the evaluation by the Corporation of the pilot program and the recommendations of the Corporation with respect to implementing the program on a national basis”. SEC. 107. CROP INSURANCE YIELD COVERAGE. Section 508A (7 U.S.C. 1508a) is repealed. SEC. 108. PREEMPTION. Section 511 (7 U.S.C. 1511) is amended by adding at the end the following sentence: “A contract of insurance of the Corporation, and a contract of insurance reinsured by the Corporation, shall be exempt from taxation imposed by any State, municipality, or local taxing authority”. SEC. 109. ADVISORY COMMITTEE. The Act is amended by inserting after section 514 (7 U.S.C. 1514) the following new section: “SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE. “(a) Establishment.— The Secretary may establish within the Department an advisory committee to be known as the ‘Advisory Committee for Federal Crop Insurance”. “(b) Primary Responsibility.— The primary responsibility of the Advisory Committee shall be to advise the Secretary on the implementation of this title and on other issues related to crop insurance, as determined by the Manager of the Corporation. “(c) Membership.— The Advisory Committee shall be composed of the Manager of the Corporation, the Secretary (or a designee of the Secretary), and not fewer than 12 members representing organizations and agencies involved in the provision of crop insurance under this tine. Not fewer than 3 of the members of the Advisory Committee shall be representatives of the specialty crops industry. The organizations or agencies represented by members on the Advisory Committee may include insurance companies, insurance agents, farm producer organizations, experts on agronomic practices, and banking and lending institutions. “(d) Administrative Provisions.— “(1) Terms.— Members of the Advisory Committee (other than the Manager of the Corporation and the Secretary) shall be appointed by the Secretary for a term of up to 2 years from nominations made by the organizations and agencies specified in subsection (c). The terms of the members (other than the Manager of the Corporation and the Secretary) shall be staggered. “(2) Chairperson.— The Advisory Committee shall be chaired by the Manager of the Corporation. “(3) Meetings.— The Advisory Committee shall meet at least annually. The meetings of the Advisory Committee shall be publicly announced in advance and shall be open to the public. Appropriate records of the activities of the Advisory Committee shall be kept and made available to the public on request. “(e) Reports.— Not later than June 30 of each year, the Advisory Committee shall submit to the Secretary a report specifying the conclusions and recommendations of the Advisory Committee regarding— “(1) the progress toward implementation of this title; “(2) the actuarial soundness of the Federal crop insurance program; “(3) the rate of producer participation in both catastrophic risk protection under section 508(b) and additional coverage under section 508(c); and “(4) the progress toward improved crop insurance coverage for new and specialty crops. “(f) Termination of Authority.— The authority provided by this section shall terminate on September 30, 1998.”. SEC. 110. FUNDING. Section 516 (7 U.S.C. 1516) is amended to read as follows: “SEC. 516. FUNDING. “(a) Authorization of Appropriations.— “(1) Discretionary expenses.— There are authorized to be appropriated for each of fiscal years 1995 through 2001 such sums as are necessary to cover— “(A) the salaries and expenses of the Corporation; and “(B) the administrative and operating expenses of the Corporation for the sales commissions of agents. “(2) Mandatory expenses.— There are authorized to be appropriated such sums as are necessary to cover— “(A) in the case of each of the 1995 through 1997 reinsurance years, the administrative and operating expenses of the Corporation for the sales commissions of agents, consistent with subsection (b)(1); “(B) premium subsidies, including the administrative and operating expenses of an approved insurance provider for the delivery of policies with additional coverage; and “(C) payments for noninsured assistance losses under section 519. “(b) Payment of Expenses.— “(1) Administrative and operating expenses.— “(A) In general.— Except as provided in subparagraph (B), in the case of each of the 1995 through 1997 reinsurance years, the Corporation is authorized to pay from the insurance fund established under subsection (c), the administrative and operating expenses of an approved insurance provider, including expenses covered by subsection (a)(1)(B). “(B) Sales commissions for 1997 reinsurance year.— In the case of the 1997 reinsurance year, the amount of the payments from the insurance fund established under subsection (c) for the expenses of the Corporation for the sales commissions of agents may not exceed 8.5 percent of the total amount of premiums paid for additional coverage for the 1997 reinsurance year. “(2) Other expenses.— The Corporation is authorized to pay from the insurance fund established under subsection (c)— “(A) all other expenses of the Corporation (other than expenses covered by subsection (a)(1)), including all premium subsidies, noninsured assistance benefits, and indemnities; “(B) subject to paragraph (1)(B), in the case of each of the 1995 through 1997 reinsurance years, all administrative and expense reimbursements due under a reinsurance agreement with an approved insurance provider, and “(C) to the extent necessary, expenses incurred by the Corporation to carry out research and development. “(c) Insurance Fund.— “(1) In general..— There is established an insurance fund, for the deposit of premium income and amounts made available under subsection (a)(2), to be available without fiscal year limitation. “(2) Commodity credit corporation funds.— If at any time the amounts in the insurance fund are insufficient to enable the Corporation to carry out subsection (b), to the extent the funds of the Commodity Credit Corporation are available— “(A) the Corporation may request the Secretary to use the funds of the Commodity Credit Corporation to carry out subsection (b); and “(B) the Secretary may use the funds of the Commodity Credit Corporation to carry out subsection (b).”. SEC. 111. NONINSURED CROP DISASTER ASSISTANCE. Section 519 (7 U.S.C. 1519) is amended to read as follows: “SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. “(a) Establishment of Program.— “(1) Establishment.— In the case of an eligible crop described in paragraph (2), the Corporation shall establish a noninsured crop disaster assistance program to provide coverage equivalent to the catastrophic risk protection otherwise available under section 508(b). “(2) Eligible crops.— “(A) In general.— As used in this section, the term ‘eligible crop’ means each commercial crop or other agricultural commodity (except livestock)— “(i) for which catastrophic risk protection under section 508(b) is not available; and “(ii) that is produced for food or fiber. “(B) Crops specifically included.— The term ‘eligible crop’ shall include floricultural, ornamental nursery, and Christmas tree crops, turfgrass sod, and industrial crops. “(3) Cause of loss.— To qualify for assistance under this section, the losses of the noninsured commodity shall be due to drought, flood, or other natural disaster, as determined by the Secretary. “(b) Application for Noninsured Crop Disaster Assistance.— “(1) Timely application.— To be eligible for assistance under this section, a producer shall submit an application for noninsured crop disaster assistance at a local office of the Department The application shall be in such form, contain such information, and be submitted at such time as the Corporation may require. “(2) Records.— A producer shall annually provide records, as required by the Corporation, of previous crop acreage, acreage yields, and production, or the producer shall accept a yield under subsection (e)(3) determined by the Corporation. “(3) Acreage reports.— A producer shall provide reports on acreage planted or prevented from being planted, as required by the Corporation, by the designated acreage reporting date for the crop and location as established by the Corporation. “(c) Loss Requirements.— “(1) Required area loss.— A producer of an eligible crop shall not receive noninsured crop disaster assistance unless the average yield for that crop, or an equivalent measure in the event yield data are not available, in an area falls below 65 percent of the expected area yield, as established by the Corporation. “(2) Prevented planting.— Subject to paragraph (1), the Corporation shall make a prevented planting noninsured crop disaster assistance payment if the producer is prevented from planting more than 35 percent of the acreage intended for the eligible crop because of drought, flood, or other natural disaster, as determined by the Secretary. “(3) Reduced yields.— Subject to paragraph (1), the Corporation shall make a reduced yield noninsured crop disaster assistance payment to a producer if the total quantity of the eligible crop that the producer is able to harvest on any farm is, because of drought, flood, or other natural disaster as determined by the Secretary, less than 50 percent of the expected individual yield for the crop, as determined by the Corporation, factored for the interest of the producer for the crop. “(d) Payment.— The Corporation shall make available to a producer eligible for noninsured assistance under this section a payment computed by multiplying— “(1) the quantify that is less than 50 percent of the established yield for the crop; by “(2) (A) in the case of each of the 1995 through 1998 crop years, 60 percent of the average market price for the crop (or any comparable coverage determined by the Corporation); or “(B) in the case of each of the 1999 and subsequent crop years, 55 percent of the average market price for the crop (or any comparable coverage determined by the Corporation); by “(3) a payment rate for the type of crop (as determined by the Corporation) that— “(A) in the case of a crop that is produced with a significant and variable harvesting expense, reflects the decreasing cost incurred in the production cycle for the crop that is— “(i) harvested; “(ii) planted but not harvested; and “(iii) prevented from being planted because of drought, flood, or other natural disaster (as determined by the Secretary); and “(B) in the case of a crop that is not produced with a significant and variable harvesting expense, is determined by the Corporation. “(e) Yield Determinations.— “(1) Establishment.— The Corporation shall establish farm yields for purposes of providing noninsured crop disaster assistance under this section. “(2) Actual production history.— The Corporation shall determine yield coverage using the actual production history of the producer over a period of not less than the 4 previous consecutive crop years and not more than 10 consecutive crop years. Subject to paragraph (3), the yield for the year in which noninsured crop disaster assistance is sought snail be equal to the average of the actual production history of the producer during the period considered. “(3) Assignment of yield.— If a producer does not submit adequate documentation of production history to determine a crop yield under paragraph (2), the Corporation shall assign to the producer a yield equal to not less than 65 percent of the transitional yield of the producer (adjusted to reflect actual production reflected in the records acceptable to the Corporation for continuous years), as specified in regulations issued by the Corporation based on production history requirements. “(4) Prohibition on assigned yields in certain counties.— “(A) In general.— “(i) Documentation.— If sufficient data are available to demonstrate that the acreage of a crop in a county for the crop year has increased by more than 100 percent over any year in the preceding 7 crop years or, if data are not available, if the acreage of the crop in the county has increased significantly from the previous crop years, a producer must provide such detailed documentation of production costs, acres planted, and yield for the crop year for which benefits are being claimed as is required by the Corporation. If the Corporation determines that the documentation provided is not sufficient, the Corporation may require documenting proof that the crop, had the crop been harvested, could have been marketed at a reasonable price. “(ii) Prohibition.— Except as provided in subparagraph (B), a producer who produces a crop on a farm located in a county described in clause (i) may not obtain an assigned yield. “(B) Exception.— A crop or a producer shall not be subject to this subsection if— “(i) the planted acreage of the producer for the crop has been inspected by a third party acceptable to the Secretary; or “(ii) (I) the County Executive Director and the State Executive Director recommend an exemption from the requirement to the Deputy Administrator for State and County Operations of the Agricultural Stabilization and Conservation Service; and “(II) the Deputy Administrator approves the recommendation. “(5) Limitation on receipt of subsequent assigned yield.— A producer who receives an assigned yield for the current year of a natural disaster because required production records were not submitted to the local office of the Department shall not be eligible for an assigned yield for the year of the next natural disaster unless the required production records of the previous 1 or more years (as applicable) are provided to the local office. “(6) Yield variations due to different farming practices.— The Corporation shall ensure that noninsured crop disaster assistance accurately reflects significant yield variations due to different farming practices, such as between irrigated and nonirrigated acreage. “(f) Contract Payments.— A producer who has received a guaranteed payment for production, as opposed to delivery, of a crop pursuant to a contract shall have the production of the producer adjusted upward by the amount of the production equal to the amount of the contract payment received. “(g) Payment of Losses.— Payments for noninsured crop disaster assistance losses under this section shall be made from the insurance fund established under section 516. The losses shall not be included in calculating the premiums charged to producers for insurance under section 508. “(h) Exclusions.— Noninsured crop disaster assistance under this section shall not cover losses due to— “(1) the neglect or malfeasance of the producer, “(2) the failure of the producer to reseed to the same crop in those areas and under such circumstances where it is customary to reseed; or “(3) the failure of the producer to follow good farming practices, as determined by the Corporation.”. SEC. 112. PAYMENT AND INCOME LIMITATIONS. Section 519 (7 U.S.C. 1519) (as amended by section 111) is further amended by adding at the end the following new subsection: “(h) Payment and Income Limitations.— “(1) Definitions.— As used in this subsection: “(A) Person.— The term “person’ has the meaning provided the term in regulations issued by the Secretary. The regulations shall conform, to the extent practicable, to the regulations defining the term “person’ issued under section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308). “(B) Qualifying gross revenues.— The term ‘qualifying gross revenues’ means— “(i) if a majority of the gross revenue of the person is received from farming, ranching, and forestry oper-ations, the gross revenue from the farming, ranching, and forestry operations of the person; and “(ii) if less than a majority of the gross revenue of the person is received from farming, ranching, and forestry operations, the gross revenue of the person from all sources. “(2) Payment limitation.— The total amount of payments that a person shall be entitled to receive annually under this title may not exceed $100,000. “(3) Limitation on multiple benefits for same loss.— If a producer who is eligible to receive benefits under catastrophic risk protection under section 508(b) or noninsured crop disaster assistance under this section is also eligible to receive assistance for the same loss under any other program administered by the Secretary, the producer shall be required to elect whether to receive benefits under this title or under the other program, but not both. A producer who purchases additional coverage under section 508(c) may also receive assistance for the same loss under other programs administered by the Secretary, except that the amount received for the loss under the additional coverage together with the amount received under the other programs may not exceed the amount of the actual loss of the producer. “(4) Income limitation.— A person who has qualifying gross revenues in excess of the amount specified in section 2266(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) (as in effect on November 28, 1990) during the taxable year (as determined by the Secretary) shall not be eligible to receive any noninsured assistance payment under this section. “(5) Regulations.— The Secretary shall issue regulations prescribing such rules as the Secretary determines necessary to ensure a fair and equitable application of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), the general payment limitation regulations of the Secretary, and the limitations established under this subsection.”. SEC. 113. PRODUCER ELIGIBILITY. Section 520 (7 U.S.C. 1520) is amended to read as follows: “SEC. 520. PRODUCER ELIGIBILITY. “Except as otherwise provided in this title, a producer shall not be denied insurance under this title if— “(1) for purposes of catastrophic risk protection coverage, the producer is a ‘person’ (as defined by the Secretary); and “(2) for purposes of any other plan of insurance, the producer is 18 years of age and has a bona fide insurable interest in a crop as an owner-operator, landlord, tenant, or share-cropper.”. SEC. 114. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE PAYMENTS. The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the following new section: “SEC. 521. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE PAYMENTS. “If the Secretary determines that a person has knowingly adopted a material scheme or device to obtain catastrophic risk, additional coverage, or noninsured assistance benefits under this title to which the person is not entitled, has evaded this title, or has acted with the purposes of evading this title, the person shall be ineligible to receive all benefits applicable to the crop year for which the scheme or device was adopted. The authority provided by this section shall be in addition to, and shall not supplant, the authority provided by section 506(n).”. SEC. 115. ELIMINATION OF GENDER REFERENCES. (a) Management of Corporation.— Section 505 (7 U.S.C. 1505) is amended— (1) in subsection (a), by striking the third sentence and inserting “The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.”; and (2) in subsection (d)— (A) by striking “upon him”; and (B) by striking “He shall be appointed by,” and inserting “The manager shall be appointed by,”. (b) Personnel.— Section 507 (7 U.S.C. 1507) is amended— (1) in subsection (a), by striking “as he may determine: Provided, That— and inserting “as the Secretary may determine appropriate. However,”; and (2) in subsection (d), by striking “as he may request” and inserting “that the Secretary requests”. (c) Indemnities Exempt From Levy.— Section 509 (7 U.S.C. 1509) is amended by striking “or his estate” and inserting “or the estate of the insured”. SEC. 116. PREVENTED PLANTING. (a) In General.— Effective for the 1994 crop year, a producer described in subsection (b) shall receive compensation under the prevented planting coverage policy provision described in subsection (b)(1)by— (1) obtaining from the Secretary of Agriculture the applicable amount that is payable under the conserving use program described in subsection (b)(4); and (2) obtaining from the Federal Crop Insurance Corporation the amount that is equal to the difference between— (A) the amount that is payable under the conserving use program; and (B) the amount that is payable under the prevented planting coverage policy. (b) Eligible Producers.— Subsection (a) shall apply to a producer who— (1) purchased a prevented planting policy for the 1994 crop year from the Federal Crop Insurance Corporation prior to the spring sales closing date for the 1994 crop year; (2) is unable to plant a crop due to major, widespread flooding in the Midwest, or excessive ground moisture, that occurred prior to the spring sales closing date for the 1994 crop year, (3) had a reasonable expectation of planting a crop on the prevented planting acreage for the 1994 crop year; and (4) participates in a conserving use program established for the 1994 crop of wheat, feed grains, upland cotton, or rice established under section 107B(c)(1)(E), 1O5B(c)(1)(E), 103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the Agricultural Act of 1949 (7 U.S.C. 1445b–3a(c)(1)(E), 1444fc)(1)(E), 1444–2(c)(1)(D), or 1441–2(c)(1)(D)). (c) Oilseed Prevented Planting Payments.— (1) In general.— Effective for the 1994 crop year, a producer of a crop of oilseeds (as defined in section 205(a) of the Agricultural Act of 1949 (7 U.S.C. 1446f(a))) shall receive a prevented planting payment for the crop if the requirements of paragraphs (1), (2), and (3) of subsection (b) are satisfied. (2) Source of payment.— The total amount of payments required under this subsection shall be made by the Federal Crop Insurance Corporation. (d) Payment.— A payment under this section may not be made before October 1, 1994. SEC. 117. REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION. Not later than 180 days after the date of enactment of this Act and at the end of each of the 2 1-year periods thereafter, the Federal Crop Insurance Corporation shall submit a report to Congress containing a plan to implement a sound program for producer education regaining the crop insurance program and for the dissemination of crop insurance information to producers, as required by section 508(a)(5) of the Federal Crop Insurance Act (as amended by section 106). SEC. 118. CROP INSURANCE PROVIDER EVALUATION. (a) In General.— The Comptroller General of the United States and the Federal Crop Insurance Corporation (referred to in this section as the “Corporation”) shall jointly evaluate the financial arrangement between the Corporation and approved insurance providers to determine the quality, costs, and efficiencies of providing the benefits of multiple peril crop insurance to producers of agricultural commodities covered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). (b) Collection of Information and Proposals.— The Corporation shall require private insurance providers and agents to supply, and the private insurance providers and agents shall supply, records and information necessary to make the determinations and evaluations required under this section. The Corporation shall solicit from the approved insurance providers and agents proposals for modifying or altering the requirements, regulations, procedures, and processes related to implementing the Federal Crop Insurance Act to reduce the operating and administrative costs of the providers and agents. (c) Initial Report.— Not later than 180 days after receipt of information and cost-reduction proposals under subsection (b), the Corporation shall evaluate the information and proposals obtained and report the results of the evaluation to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. (d) Final Report.— Not later than 2 years after the date of enactment of this Act, the Comptroller General and the Corporation shall submit a final report that provides the evaluation required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. In making the evaluation, the Comptroller General and the Corporation shall— (1) consider the changes made by the Corporation in response to increased program participation resulting from the enactment of this Act; (2) include an evaluation and opinion of the accuracy and reasonableness of— (A) the average actual costs for approved insurance providers to deliver multiple peril crop insurance; (B) the cost per policy of complying with the requirements, regulations, procedures, and processes of the Federal Crop Insurance Act; (C) the cost differences for various provider firm sizes and any business delivered by the Federal Government; (D) the adequacy of the standard reimbursement for potential new providers; and (E) the identification of any new costs related to the enactment of this Act not previously identified in the information reported by the providers; (3) compare delivery costs of multiple peril crop insurance to other insurance coverages that the provider may sell and determine the extent, if any, to which any funds provided to carry out the Federal Crop Insurance Act are being used to fund any other business enterprise operated by the provider; (4) (A) assess alternative methods for reimbursing providers for reasonable and necessary expenses associated with delivery of multiple peril crop insurance; (B) recommend changes under this paragraph that reasonably demonstrate the need to achieve the greatest operating efficiencies on the part of the provider and the Corporation has been recognized; and (C) identify areas for improved operating efficiencies, if any, in the requirements made by the Corporation for compliance and program integrity; (5) assess the potential for alternative forms of reinsurance arrangements for providers of different firm sizes, taking into consideration— (A) the need to achieve a reasonable return on the capital of the provider compared to other lines of insurance; (B) the relative risk borne by the provider for the different lines of insurance; (C) the availability and price of commercial reinsurance; and (D) any additional costs that may be incurred by the Federal Government in carrying out the Federal Crop Insurance Act; and (6) include an analysis of the effect of the current or proposed reinsurance arrangements on providers having different business levels. (e) Information.— (1) Privacy.— In conducting the evaluation required by this section, the Comptroller General and the Corporation shall maintain the privacy of proprietary information. (2) Subpoenas.— The Comptroller General shall have the power to subpoena information relevant to the evaluation required by this section from any private insurance provider. The Comptroller General shall allow the Corporation access to the information subpoenaed taking into consideration the necessity of preserving the privacy of proprietary information. SEC. 119. CONFORMING AMENDMENTS. (a) Price Support Programs.— (1) In general.— Title IV of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is amended by adding at the end the following new section: “SEC. 427. CROP INSURANCE REQUIREMENT. “As a condition of receiving any benefit (including payments) under title I or II for each of the 1995 and subsequent crops of tobacco, rice, extra long staple cotton, upland cotton, feed grains, wheat, peanuts, oilseeds, and sugar, a producer must obtain at least catastrophic risk protection insurance coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Corporation.”. (2) Rice.— Section 101B(c) of such Act (7 U.S.C. 1441–2(c)) is amended— (A) in paragraph (1), by striking subparagraph (F); and (B) by striking paragraph (2) and inserting the following new paragraph: “(2) Crop insurance requirement.— A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.”. (3) Upland cotton.— Section 103B(c) of such Act (7 U.S.C. 1444–2(c)) is amended— (A) in paragraph (1), by striking subparagraph (F); and (B) by striking paragraph (2) and inserting the following new paragraph: “(2) Crop insurance requirement.— A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.”. (4) Feed grains.— Section 105B(c) of such Act (7 U.S.C. 1444f(c)) is amended— (A) in paragraph (1), by striking subparagraph (G); and (B) by striking paragraph (2) and inserting the following new paragraph: “(2) Crop insurance requirement.— A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.”. (5) Wheat.— Section 107B(c) of such Act (7 U.S.C. 1445b–3a(c)) is amended— (A) in paragraph (1), by striking subparagraph (G); and (B) by striking paragraph (2) and inserting the following new paragraph: “(2) Crop insurance requirement.— A producer shall obtain catastrophic risk protection insurance coverage in accordance with section 427.”. (6) Disaster payments.— Section 208 of such Act (7 U.S.C. 1446i) is repealed. (b) Farmers Home Administration Programs.— The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following new section: “SEC. 371. CROP INSURANCE REQUIREMENT. “(a) In General.— As a condition of obtaining any benefit (including a direct loan, loan guarantee, or payment) described in subsection (b), a borrower must obtain at least catastrophic risk protection insurance coverage under section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the benefit is sought, if the coverage is offered by the Corporation. “(b) Applicable Benefits.— Subsection (a) shall apply to— “(1) a farm ownership loan (FO) under section 303; “(2) an operating loan (OL) under section 312; and “(3) an emergency loan (EM) under section 321.”. (c) Disaster Assistance.— Subtitle B of title XXII of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) is amended by striking chapter 3. (d) Emergency Appropriations.— (1) In general.— Effective January 1, 1995, section 251(b)(2)(1)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(1)(i)) is amended by adding at the end the following new sentence: “This subparagraph shall not apply to appropriations to cover agricultural crop disaster assistance”. (2) Emergency legislation.— Effective January 1, 1995, section 252(e) of such Act (2 U.S.C. 902(e)) is amended by adding at the end the following new sentence: “This subsection shall not apply to direct spending provisions to cover agricultural crop disaster assistance.”. (e) False Statements.— Section 1014 of title 18, United States Code, is amended by inserting “or a company the Corporation reinsures” after “Federal Crop Insurance Corporation”. (f) Technical Amendments.— (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) is amended by striking “508(f)” and inserting “508(j)”. (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) is amended by striking “508(b)” and inserting “508(h)”. (3) Section 518 (7 U.S.C. 1518) is amended by striking “(k)” and inserting “(m)”. SEC. 120. EFFECTIVE DATE. Except as otherwise provided in this title, this title and the amendments made by this title shall become effective on the date of enactment of this Act and shall apply to the provision of crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on the day before the date of enactment of this Act) shall continue to apply.

12. 2000

    Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 142(a)(1) · 114 Stat. 358

    Inserted · 7 U.S.C. § 1505

    Pub. L. 106–224, § 142(a)(1), inserted section catchline

    Source evidence

    Code amendment note
    Pub. L. 106–224, § 142(a)(1), inserted section catchline.

    Enacted provision · exact public law section
    (1) Change in composition.— Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505) is amended by striking the section heading, “Sec. 505.”, and subsection (a) and inserting the following: “SEC. 505. MANAGEMENT OF CORPORATION. “(a) Board of Directors.— “(1) Establishment.— The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary. “(2) Composition.— The Board shall consist of only the following members: “(A) The manager of the Corporation, who shall serve as a nonvoting ex officio member. “(B) The Under Secretary of Agriculture responsible for the Federal crop insurance program. “(C) One additional Under Secretary of Agriculture (as designated by the Secretary). “(D) The Chief Economist of the Department of Agriculture. “(E) One person experienced in the crop insurance business. “(F) One person experienced in reinsurance or the regulation of insurance. “(G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a cross-section of agricultural commodities grown in the United States, including at least one specialty crop producer. “(3) Appointment of private sector members.— The members of the Board described in subparagraphs (E), (F), and (G) of paragraph (2)— “(A) shall be appointed by, and hold office at the pleasure of, the Secretary; “(B) shall not be otherwise employed by the Federal Government; “(C) shall be appointed to staggered 4-year terms, as determined by the Secretary; and “(D) shall serve not more than two consecutive terms. “(4) Chairperson.— The Board shall select a member of the Board to serve as Chairperson.”.

13. 2000

    Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 142(a)(1) · 114 Stat. 358

    1. Added · 7 U.S.C. § 1505(a)

       Pub. L. 106–224, § 142(a)(1), added heading and text of subsec. (a)

    2. Struck · 7 U.S.C. § 1505(a)

       Pub. L. 106–224, § 142(a)(1), struck out former subsec. (a) which read as follows: “The management of the Corporation shall be vested in a Board subject to the general supervision of the Secretary. The Board shall consist of the manager of the Corporation, the Under Secretary of Agriculture responsible for the Federal crop insurance program, one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture), one person experienced in the crop insurance business who is not otherwise employed by the Federal Government, and three active farmers who are not otherwise employed by the Federal Government. The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board. The Secretary, in appointing the three active farmers who are not otherwise employed by the Federal Government, shall ensure that such members are policyholders and are from different geographic areas of the United States, in order that diverse agricultural interests in the United States are at all times represented on the Board.”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 106–224, § 142(a)(1), added heading and text of subsec. (a) and struck out former subsec. (a) which read as follows: “The management of the Corporation shall be vested in a Board subject to the general supervision of the Secretary. The Board shall consist of the manager of the Corporation, the Under Secretary of Agriculture responsible for the Federal crop insurance program, one additional Under Secretary of Agriculture (as designated by the Secretary of Agriculture), one person experienced in the crop insurance business who is not otherwise employed by the Federal Government, and three active farmers who are not otherwise employed by the Federal Government. The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board. The Secretary, in appointing the three active farmers who are not otherwise employed by the Federal Government, shall ensure that such members are policyholders and are from different geographic areas of the United States, in order that diverse agricultural interests in the United States are at all times represented on the Board.”

    Enacted provision · exact public law section
    (1) Change in composition.— Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505) is amended by striking the section heading, “Sec. 505.”, and subsection (a) and inserting the following: “SEC. 505. MANAGEMENT OF CORPORATION. “(a) Board of Directors.— “(1) Establishment.— The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary. “(2) Composition.— The Board shall consist of only the following members: “(A) The manager of the Corporation, who shall serve as a nonvoting ex officio member. “(B) The Under Secretary of Agriculture responsible for the Federal crop insurance program. “(C) One additional Under Secretary of Agriculture (as designated by the Secretary). “(D) The Chief Economist of the Department of Agriculture. “(E) One person experienced in the crop insurance business. “(F) One person experienced in reinsurance or the regulation of insurance. “(G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a cross-section of agricultural commodities grown in the United States, including at least one specialty crop producer. “(3) Appointment of private sector members.— The members of the Board described in subparagraphs (E), (F), and (G) of paragraph (2)— “(A) shall be appointed by, and hold office at the pleasure of, the Secretary; “(B) shall not be otherwise employed by the Federal Government; “(C) shall be appointed to staggered 4-year terms, as determined by the Secretary; and “(D) shall serve not more than two consecutive terms. “(4) Chairperson.— The Board shall select a member of the Board to serve as Chairperson.”.

14. 2000

    Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 142(b) · 114 Stat. 358

    Added · 7 U.S.C. § 1505(e)

    Pub. L. 106–224, § 142(b), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 106–224, § 142(b), added subsec. (e).

    Enacted provision · exact public law section
    (b) Expert Review of Policies, Plans of Insurance, and Related Material.— Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505) is amended by adding at the end the following: “(e) Expert Review of Policies, Plans of Insurance, and Related Material.— “(1) Review by experts.— The Board shall establish procedures under which any policy or plan of insurance, as well as any related material or modification of such a policy or plan of insurance, to be offered under this title shall be subject to independent reviews by persons experienced as actuaries and in underwriting, as determined by the Board. “(2) Review of corporation policies and plans.— Except as provided in paragraph (3), the Board shall contract with at least five persons to each conduct a review of the policy or plan of insurance, of whom— “(A) not more than one person may be employed by the Federal Government; and “(B) at least one person must be designated by approved insurance providers pursuant to procedures determined by the Board.

15. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 12033(c)(2)(B) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1505(e)(1); 7 U.S.C. § 1505(e)(4)

    Pub. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter”

    Source evidence

    Code amendment note
    Subsec. (e)(1), (4). Pub. L. 110–246, § 12033(c)(2)(B), substituted “this subchapter” for “this chapter”.

    Enacted provision · exact public law section
    (B) by striking “this title” each place it appears and inserting “this subtitle”.

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

14 of 18 references resolved to an enrolled provision · 3 partial · 1 unresolved