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Title 7 — Agriculture

Chapter 36 — Crop Insurance

§ 1516. Funding

Statutory text

(a)

Authorization of appropriations

(1)

Discretionary expenses

There are authorized to be appropriated for fiscal year 1999 and each subsequent fiscal year such sums as are necessary to cover the salaries and expenses of the Corporation.

(2)

Mandatory expenses

There are authorized to be appropriated such sums as are necessary to cover for each of the 1999 and subsequent reinsurance years the following:

(A)

The administrative and operating expenses of the Corporation for the sales commissions of agents.

(B)

Premium subsidies, including the administrative and operating expenses of an approved insurance provider for the delivery of policies with additional coverage.

(C)

Costs associated with the conduct of livestock and wild salmon pilot programs carried out under section 1523 of this title, subject to the limitations in subsection (a)(3)(E)(ii) of that section.

(D)

Costs associated with the reimbursement, contracting, and partnerships for research and development under section 1522 of this title.

(b)

Payment of Corporation expenses from insurance fund

(1)

Expenses generally

For each of the 1999 and subsequent reinsurance years, the Corporation may pay from the insurance fund established under subsection (c) all expenses of the Corporation (other than expenses covered by subsection (a)(1) and expenses covered by paragraph (2)(A)), including the following:

(A)

Premium subsidies and indemnities.

(B)

Administrative and operating expenses of the Corporation necessary to pay the sales commissions of agents.

(C)

All administrative and operating expense reimbursements due under a reinsurance agreement with an approved insurance provider.

(D)

Costs associated with the conduct of livestock and wild salmon pilot programs carried out under section 1523 of this title, subject to the limitations in subsection (a)(3)(E)(ii) of that section.

(E)

Costs associated with the reimbursement, contracting, and partnerships for research and development under section 1522 of this title.

(2)

Policy consideration and implementation

(A)

In general

For each of the 1999 and subsequent reinsurance years, the Corporation may use the insurance fund established under subsection (c), but not to exceed $3,500,000 for each fiscal year, to pay the following:

(i)

Costs associated with the consideration and implementation of policies, plans of insurance, and related materials submitted under section 1508(h) of this title or developed under section 1522 or 1523 of this title.

(ii)

Costs to contract for the review of policies, plans of insurance, and related materials under section 1505(e) of this title and to contract for other assistance in considering policies, plans of insurance, and related materials.

(B)

Dairy options pilot program

Amounts necessary to carry out the dairy options pilot program shall not be counted toward the limitation on expenses specified in subparagraph (A).

(C)

Reviews, compliance, and integrity

(i)

In general

For each of the 2014 and subsequent reinsurance years, the Corporation may use the insurance fund established under subsection (c), but not to exceed $7,000,000 for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter, to pay costs—

(I)

to reimburse expenses incurred for the operations and review of policies, plans of insurance, and related materials (including actuarial and related information); and

(II)

to assist the Corporation in maintaining program actuarial soundness and financial integrity.

(ii)

Secretarial action

For the purposes described in clause (i), the Secretary may, without further appropriation—

(I)

merge some or all of the funds made available under this subparagraph into the accounts of the Risk Management Agency; and

(II)

obligate those funds.

(iii)

Maintenance of funding

Funds made available under this subparagraph shall be in addition to other funds made available for costs incurred by the Corporation or the Risk Management Agency.

(c)

Insurance fund

(1)

In general

There is established an insurance fund, for the deposit of premium income, amounts made available under subsection (a)(2), and civil fines collected under section 1515(h) of this title, 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).

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. Agricultural Adjustment Act of 1938

    Pub. L. 75–30 · 52 Stat. 31

    Enacted · 7 U.S.C. § 1516

    Feb. 16, 1938, ch. 30, title V, § 516, 52 Stat. 77

    Source evidence

    Code source credit
    Feb. 16, 1938, ch. 30, title V, § 516, 52 Stat. 77

  2. Public Law not identified

    1. Substituted · 7 U.S.C. § 1516(a)

      Subsec. (a). Act June 21, 1941, substituted “the agricultural commodity” for “wheat”

    2. Substituted · 7 U.S.C. § 1516(a)

      Subsec. (a). Act June 21, 1941, substituted “$12,000,000” for “$6,000,000”

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

    Source evidence

    Code amendment note
    Subsec. (a). Act June 21, 1941, substituted “the agricultural commodity” for “wheat”, and “$12,000,000” for “$6,000,000”.

  3. Public Law not identified

    Added · 7 U.S.C. § 1516(a)

    Subsec. (a). Act Aug. 3, 1956, added to list of costs which may be considered as nonadministrative or nonoperating, the direct cost of loss adjusters for crop inspections and loss adjustment, and authorized use of premium income for administrative and operating costs within limits prescribed by applicable appropriation

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

    Source evidence

    Code amendment note
    Subsec. (a). Act Aug. 3, 1956, added to list of costs which may be considered as nonadministrative or nonoperating, the direct cost of loss adjusters for crop inspections and loss adjustment, and authorized use of premium income for administrative and operating costs within limits prescribed by applicable appropriation.

  4. Federal Crop Insurance Act of 1980

    Pub. L. 96–365 § 109 · 94 Stat. 1312

    Substituted · 7 U.S.C. § 1516(a)

    Pub. L. 96–365, § 109, substituted appropriations authorization of necessary sums for former limitation of $12,000,000 for each fiscal year beginning after June 30, 1938; included as costs agents’ and brokers’ commissions, interest on Treasury notes and other obligations, partial premium payments by the Corporation, and the direct cost of loss adjusters for crop inspections and loss adjustments and authorized payment of these costs from premium income and other Corporation funds and restoration of such payments through subsequent year appropriations; prescribed limitation on employment of additional personnel except during emergencies; and deleted provisions for for consideration as being nonadministrative or nonoperating expenses such expenses as related to purchase, transportation, handling, or sale of the agricultural commodity and the direct cost of loss adjusters for crop inspections and loss adjustments and provision for use of premium income for administrative and operating costs within limits prescribed in applicable appropriations

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 96–365, § 109, substituted appropriations authorization of necessary sums for former limitation of $12,000,000 for each fiscal year beginning after June 30, 1938; included as costs agents’ and brokers’ commissions, interest on Treasury notes and other obligations, partial premium payments by the Corporation, and the direct cost of loss adjusters for crop inspections and loss adjustments and authorized payment of these costs from premium income and other Corporation funds and restoration of such payments through subsequent year appropriations; prescribed limitation on employment of additional personnel except during emergencies; and deleted provisions for for consideration as being nonadministrative or nonoperating expenses such expenses as related to purchase, transportation, handling, or sale of the agricultural commodity and the direct cost of loss adjusters for crop inspections and loss adjustments and provision for use of premium income for administrative and operating costs within limits prescribed in applicable appropriations.

    Enacted provision · exact public law section
    Sec. 109. appropriations for operating and administrative expenses Effective October 1, 1980, section 516(a) of the Federal Crop Insurance Act is amended to read as follows: 7 USC 1516. “Sec. 516. (a) There are hereby authorized to be appropriated such sums as may be necessary to cover the operating and administrative costs of the Corporation, including agents’ and brokers’ commissions, interest on Treasury notes and other obligations, partial premium payments by the Corporation, and the direct cost of loss adjusters for crop inspections and loss adjustments, which shall be allotted to the Corporation in such amounts and at such time or times as the Secretary of Agriculture may determine. Expenses in connection with agents’ and brokers’ commissions, interest on Treasury notes and other obligations, partial premium payments by the Corporation, and the direct cost or loss adjusters for crop inspections and loss adjustments may be paid from premium income and other Corporation funds, and any such payments may be restored by appropriations Additional employees. in subsequent years. The Corporation may not employ more than two hundred additional permanent full-time employees, in excess of the number of full-time employees employed by the Corporation on the Ante, p. 1312. effective date of the Federal Crop Insurance Act of 1980, to implement the provisions of this title, except in the case of, and only during, emergencies.”.

  5. Federal Crop Insurance Act of 1980

    Pub. L. 96–365 § 110 · 94 Stat. 1312

    Added · 7 U.S.C. § 1516(c); 7 U.S.C. § 1516(d)

    Pub. L. 96–365, § 110, added subsecs. (c) and (d)

    Source evidence

    Code amendment note
    Subsecs. (c), (d). Pub. L. 96–365, § 110, added subsecs. (c) and (d).

    Enacted provision · exact public law section
    Sec. 110. emergency funding in case of insufficiency Effective October 1, 1980, section 516 of the Federal Crop 7 USC 1516. Insurance Act is amended by adding new subsections (c) and (d) as follows: “(c) (1) If at any time the moneys available to the Federal Crop Insurance Corporation are insufficient to enable the Corporation to discharge its responsibility of indemnifying producers for losses under this title, the Corporation may, upon majority vote of its Board of Directors, request the Secretary of Agriculture to use the funds of the Commodity Credit Corporation to make timely payment of indemnities to producers. Upon receiving such a request, the Secretary of Agriculture may use the funds of the Commodity Credit Corporation to meet obligations to indemnify producers for losses under this title. The Secretary’s authority to use the funds of the Commodity Credit Corporation for the purposes of this subsection shall expire one year after the date on which the authority is first used. “(2) The authority to make commitments under this subsection, in excess of funds available to the Commodity Credit Corporation under 15 USC 714b. section 4 of the Commodity Credit Corporation Charter Act and the Act of October 11, 1978 (92 Stat. 1073), snail be effective for any fiscal year only to the extent provided by appropriation Acts. “(d) Except as provided in subsection (c), if at any time the moneys available to the Federal Crop Insurance Corporation are insufficient to enable the Corporation to discharge its responsibility of indemnifying producers for losses under this title, the Corporation may issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary of the Redemption. Treasury. Redemption of such notes or obligations shall be made by the Corporation from moneys available from premiums or the issuance Ante, p. 1312. Interest rate determination. of capital stock under section 504 of this title. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, which shall be not less than a rate determined by taking into consideration the average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes or other obligations issued hereunder and for that purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act and 31 USC 774. the purposes for which securities may be issued under that Act are extended to include any purchase of such notes or obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by the Secretary of the Treasury under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. The borrowing authority provided for in this subsection may be exercised by the Corporation only to such extent or in such amounts as are provided in appropriation Acts.”.

  6. Pub. L. 97–11 · 95 Stat. 13

    1. Amended · 7 U.S.C. § 1516(a)

      Pub. L. 97–11 designated existing provisions as par. (1)

    2. Added · 7 U.S.C. § 1516(a)

      Pub. L. 97–11 added par. (2)

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 97–11 designated existing provisions as par. (1) and added par. (2).

  7. Food Security Act of 1985

    Pub. L. 99–198 title X § 1021 · 99 Stat. 1354

    Struck · 7 U.S.C. § 1516(c)(1)

    Pub. L. 99–198 struck out provision that Secretary’s authority to use the funds of Commodity Credit Corporation for purposes of this subsection would expire one year after date on which that authority was first used

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 99–198 struck out provision that Secretary’s authority to use the funds of Commodity Credit Corporation for purposes of this subsection would expire one year after date on which that authority was first used.

    Enacted provision · exact public law section
    Sec. 1021. federal crop insurance corporation emergency funding authority Section 516(c)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended by striking out the last sentence.

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

    Pub. L. 103–354 title I § 110 · 108 Stat. 3178

    1. Amended · 7 U.S.C. § 1516

      Pub. L. 103–354 amended section generally

    2. Substituted · 7 U.S.C. § 1516

      Pub. L. 103–354 substituting subsecs. (a) to (c) for former subsecs. (a) to (d) relating to authorization of appropriations to cover operating and administrative costs of Corporation, issuance of regulations, emergency funding, and borrowing authority

    Source evidence

    Code amendment note
    Pub. L. 103–354 amended section generally, substituting subsecs. (a) to (c) for former subsecs. (a) to (d) relating to authorization of appropriations to cover operating and administrative costs of Corporation, issuance of regulations, emergency funding, and borrowing authority.

    Enacted provision · exact public law section
    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).”.

  9. Agricultural Market Transition Act

    Pub. L. 104–127 § 193(e)(1) · 110 Stat. 888

    Struck · 7 U.S.C. § 1516(a)(2)(C)

    Pub. L. 104–127, § 193(e)(1), struck out subpar. (C) which read as follows: “payments for noninsured assistance losses under section 1519 of this title.”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(C). Pub. L. 104–127, § 193(e)(1), struck out subpar. (C) which read as follows: “payments for noninsured assistance losses under section 1519 of this title.”

    Enacted provision · exact public law section
    (1) Mandatory expenses.— Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended— (A) by inserting “and” at the end of subparagraph (A); (B) by striking “; and” at the end of subparagraph (B) and inserting a period; and (C) by striking subparagraph (C).

  10. Agricultural Market Transition Act

    Pub. L. 104–127 § 193(e)(2)(A) · 110 Stat. 888

    1. Struck · 7 U.S.C. § 1516(b)(1)

      Pub. L. 104–127, § 193(e)(2)(A), struck out subpar. (A) designation and heading “In general”

    2. Substituted · 7 U.S.C. § 1516(b)(1)

      Pub. L. 104–127, § 193(e)(2)(A), substituted “In the case of each” for “Except as provided in subparagraph (B), in the case of each”

    3. Struck · 7 U.S.C. § 1516(b)(1)

      Pub. L. 104–127, § 193(e)(2)(A), struck out heading and text of subpar. (B). Prior to amendment, text read as follows: “In the case of the 1997 reinsurance year, the amount of the payments from the insurance fund established under subsection (c) of this section 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.”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 104–127, § 193(e)(2)(A), struck out subpar. (A) designation and heading “In general”, substituted “In the case of each” for “Except as provided in subparagraph (B), in the case of each”, and struck out heading and text of subpar. (B). Prior to amendment, text read as follows: “In the case of the 1997 reinsurance year, the amount of the payments from the insurance fund established under subsection (c) of this section 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.”

    Enacted provision · exact public law section
    (A) in paragraph (1)— (i) by striking “(A) In general” and all that follows through “subparagraph (B), in” and inserting “In”; and (ii) by striking subparagraph (B); and

  11. Agricultural Market Transition Act

    Pub. L. 104–127 § 193(e)(3) · 110 Stat. 888

    Struck · 7 U.S.C. § 1516(b)(2)(A)

    Pub. L. 104–127, § 193(e)(3), struck out “, noninsured assistance benefits,” after “all premium subsidies”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(A). Pub. L. 104–127, § 193(e)(3), struck out “, noninsured assistance benefits,” after “all premium subsidies”.

    Enacted provision · exact public law section
    (3) Other expenses.— Section 516(b)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by striking “, noninsured assistance benefits,”.

  12. Agricultural Market Transition Act

    Pub. L. 104–127 § 193(e)(2)(B) · 110 Stat. 888

    Struck · 7 U.S.C. § 1516(b)(2)(B)

    Pub. L. 104–127, § 193(e)(2)(B), struck out “subject to paragraph (1)(B),” before “in the case of each”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B). Pub. L. 104–127, § 193(e)(2)(B), struck out “subject to paragraph (1)(B),” before “in the case of each”.

    Enacted provision · exact public law section
    (B) in paragraph (2)(B), by striking “subject to paragraph (1)(B)”.

  13. Agricultural Research, Extension, and Education Reform Act of 1998

    Pub. L. 105–185 § 531(1)(A) · 112 Stat. 523

    1. Added · 7 U.S.C. § 1516(a)(1)

      Pub. L. 105–185, § 531(1)(A), added par. (1)

    2. Struck · 7 U.S.C. § 1516(a)(1)

      Pub. L. 105–185, § 531(1)(A), struck out heading and text of former par. (1). Text read as follows: “There are authorized to be appropriated for each of fiscal years 1995 through 2001 such sums as are necessary to cover—

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 105–185, § 531(1)(A), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “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.”

    Enacted provision · exact public law section
    (A) by striking paragraph (1) and inserting the following: “(1) Discretionary expenses.— There are authorized to be appropriated for fiscal year 1999 and each subsequent fiscal year such sums as are necessary to cover the salaries and expenses of the Corporation.”; and

    Effective date note
    Amendment by Pub. L. 105–185 effective July 1, 1998, see section 537 of Pub. L. 105–185, set out as a note under section 1506 of this title.

  14. Agricultural Research, Extension, and Education Reform Act of 1998

    Pub. L. 105–185 § 531(1)(B)(i) · 112 Stat. 523

    Inserted · 7 U.S.C. § 1516(a)(2)

    Pub. L. 105–185, § 531(1)(B)(i), inserted “for each of the 1999 and subsequent reinsurance years” after “are necessary to cover” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 105–185, § 531(1)(B)(i), inserted “for each of the 1999 and subsequent reinsurance years” after “are necessary to cover” in introductory provisions.

    Enacted provision · exact public law section
    (i) by inserting after “are necessary to cover” the following: “for each of the 1999 and subsequent reinsurance years”; and

    Effective date note
    Amendment by Pub. L. 105–185 effective July 1, 1998, see section 537 of Pub. L. 105–185, set out as a note under section 1506 of this title.

  15. Agricultural Research, Extension, and Education Reform Act of 1998

    Pub. L. 105–185 § 531(1)(B)(ii) · 112 Stat. 523

    1. Added · 7 U.S.C. § 1516(a)(2)(A)

      Pub. L. 105–185, § 531(1)(B)(ii), added subpar. (A)

    2. Struck · 7 U.S.C. § 1516(a)(2)(A)

      Pub. L. 105–185, § 531(1)(B)(ii), struck out former subpar. (A) which read as follows: “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) of this section; and”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(A). Pub. L. 105–185, § 531(1)(B)(ii), added subpar. (A) and struck out former subpar. (A) which read as follows: “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) of this section; and”.

    Enacted provision · exact public law section
    (ii) by striking subparagraph (A) and inserting the following: “(A) the administrative and operating expenses of the Corporation for the sales commissions of agents; and”; and

    Effective date note
    Amendment by Pub. L. 105–185 effective July 1, 1998, see section 537 of Pub. L. 105–185, set out as a note under section 1506 of this title.

  16. Agricultural Research, Extension, and Education Reform Act of 1998

    Pub. L. 105–185 § 531(2) · 112 Stat. 523

    1. Added · 7 U.S.C. § 1516(b)

      Pub. L. 105–185, § 531(2), added subsec. (b)

    2. Struck · 7 U.S.C. § 1516(b)

      Pub. L. 105–185, § 531(2), struck out heading and text of former subsec. (b). Text read as follows:

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 105–185, § 531(2), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows:

    “(1) Administrative and operating expenses.—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) of this section, the administrative and operating expenses of an approved insurance provider, including expenses covered by subsection (a)(1)(B) of this section. “(2) Other expenses.—The Corporation is authorized to pay from the insurance fund established under subsection (c) of this section— “(A) all other expenses of the Corporation (other than expenses covered by subsection (a)(1) of this section), including all premium subsidies and indemnities; “(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.”

    Enacted provision · exact public law section
    (2) by striking subsection (b) and inserting the following: “(b) Payment of Corporation Expenses From Insurance Fund.— “(1) Expenses generally.— For each of the 1999 and subsequent reinsurance years, the Corporation may pay from the insurance fund established under subsection (c) all expenses of the Corporation (other than expenses covered by subsection (a)(1) and expenses covered by paragraph (2)(A)), including— “(A) premium subsidies and indemnities; “(B) administrative and operating expenses of the Corporation necessary to pay the sales commissions of agents; and “(C) all administrative and operating expense reimbursements due under a reinsurance agreement with an approved insurance provider. “(2) Research and development expenses.— “(A) In general.— For each of the 1999 and subsequent reinsurance years, the Corporation may pay from the insurance fund established under subsection (c) research and development expenses of the Corporation, but not to exceed $3,500,000 for each fiscal year. “(B) Dairy options pilot program.— Amounts necessary to carry out the dairy options pilot program shall not be counted toward the limitation on research and development expenses specified in subparagraph (A).”.

    Effective date note
    Amendment by Pub. L. 105–185 effective July 1, 1998, see section 537 of Pub. L. 105–185, set out as a note under section 1506 of this title.

  17. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(a) · 114 Stat. 358

    1. Substituted · 7 U.S.C. § 1516(a)(2)

      Pub. L. 106–224, § 147(a), in introductory provisions, substituted “years the following:” for “years—”, in subpar. (A)

    2. Substituted · 7 U.S.C. § 1516(a)(2)

      Pub. L. 106–224, § 147(a), in introductory provisions, substituted “The” for “the” and a period for “; and” at end, in subpar. (B)

    3. Substituted · 7 U.S.C. § 1516(a)(2)

      Pub. L. 106–224, § 147(a), in introductory provisions, substituted “Premium” for “premium”

    4. Added · 7 U.S.C. § 1516(a)(2)

      Pub. L. 106–224, § 147(a), in introductory provisions, added subpars. (C) and (D)

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 106–224, § 147(a), in introductory provisions, substituted “years the following:” for “years—”, in subpar. (A), substituted “The” for “the” and a period for “; and” at end, in subpar. (B), substituted “Premium” for “premium”, and added subpars. (C) and (D).

    Enacted provision · exact public law section
    (a) Authorization of Appropriations.— Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended— (1) by striking “years—” and inserting “years the following:”; (2) by capitalizing the first letter of the first word of each subparagraph; (3) by striking “; and” at the end of subparagraph (A) and inserting a period; and (4) by adding at the end the following: “(C) Costs associated with the conduct of livestock and wild salmon pilot programs carried out under section 523, subject to the limitations in subsections (a)(3)(E)(ii) and (b)(10) of section 523. “(D) Costs associated with the reimbursement, contracting, and partnerships for research and development under section 522.”.

  18. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(b) · 114 Stat. 358

    1. Substituted · 7 U.S.C. § 1516(b)(1)

      Pub. L. 106–224, § 147(b), in introductory provisions, substituted “including the following:” for “including—”, in subpar. (A)

    2. Substituted · 7 U.S.C. § 1516(b)(1)

      Pub. L. 106–224, § 147(b), in introductory provisions, substituted “Premium” for “premium” and a period for the semicolon at end, in subpar. (B)

    3. Substituted · 7 U.S.C. § 1516(b)(1)

      Pub. L. 106–224, § 147(b), in introductory provisions, substituted “Administrative” for “administrative” and a period for “; and” at end, in subpar. (C)

    4. Substituted · 7 U.S.C. § 1516(b)(1)

      Pub. L. 106–224, § 147(b), in introductory provisions, substituted “All” for “all”

    5. Added · 7 U.S.C. § 1516(b)(1)

      Pub. L. 106–224, § 147(b), in introductory provisions, added subpars. (D) and (E)

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 106–224, § 147(b), in introductory provisions, substituted “including the following:” for “including—”, in subpar. (A), substituted “Premium” for “premium” and a period for the semicolon at end, in subpar. (B), substituted “Administrative” for “administrative” and a period for “; and” at end, in subpar. (C), substituted “All” for “all”, and added subpars. (D) and (E).

    Enacted provision · exact public law section
    (b) Payment of General Corporation Expenses From Insurance Fund.— Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) is amended— (1) by striking “including—” and inserting “including the following:”; (2) by capitalizing the first letter of the first word of each subparagraph; (3) by striking the semicolon at the end of subparagraph (A) and inserting a period; (4) by striking “; and” at the end of subparagraph (B) and inserting a period; and (5) by adding at the end the following: “(D) Costs associated with the conduct of livestock and wild salmon pilot programs carried out under section 523, subject to the limitations in subsections (a)(3)(E)(ii) and (b)(10) of section 523. “(E) Costs associated with the reimbursement, contracting, and partnerships for research and development under section 522.”.

  19. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(c)(1) · 114 Stat. 358

    Substituted · 7 U.S.C. § 1516(b)(2)

    Pub. L. 106–224, § 147(c)(1), substituted “Policy consideration and implementation” for “Research and development expenses” in heading

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 106–224, § 147(c)(1), substituted “Policy consideration and implementation” for “Research and development expenses” in heading.

    Enacted provision · exact public law section
    (1) by striking “Research and development expenses.—” and inserting “policy consideration and implementation.—”;

  20. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(c)(2) · 114 Stat. 358

    1. Substituted · 7 U.S.C. § 1516(b)(2)(A)

      Pub. L. 106–224, § 147(c)(2), substituted “may use” for “may pay from”

    2. Struck · 7 U.S.C. § 1516(b)(2)(A)

      Pub. L. 106–224, § 147(c)(2), struck out “research and development expenses of the Corporation” before “, but not to exceed”

    3. Substituted · 7 U.S.C. § 1516(b)(2)(A)

      Pub. L. 106–224, § 147(c)(2), substituted “, to pay the following:” for period at end

    4. Added · 7 U.S.C. § 1516(b)(2)(A)

      Pub. L. 106–224, § 147(c)(2), added cls. (i) and (ii)

    Source evidence

    Code amendment note
    Subsec. (b)(2)(A). Pub. L. 106–224, § 147(c)(2), substituted “may use” for “may pay from”, struck out “research and development expenses of the Corporation” before “, but not to exceed”, substituted “, to pay the following:” for period at end, and added cls. (i) and (ii).

    Enacted provision · exact public law section
    (2) in subparagraph (A)— (A) by striking “may pay from” and inserting “may use”; (B) by striking “research and development expenses of the Corporation”; and (C) by striking the period at the end and inserting the following: “, to pay the following: “(i) Costs associated with the consideration and implementation of policies, plans of insurance, and related materials submitted under section 508(h) or developed under section 522 or 523. “(ii) Costs to contract for the review of policies, plans of insurance, and related materials under section 505(e) and to contract for other assistance in considering policies, plans of insurance, and related materials.”; and

  21. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(c)(3) · 114 Stat. 358

    Struck · 7 U.S.C. § 1516(b)(2)(B)

    Pub. L. 106–224, § 147(c)(3), struck out “research and development” after “the limitation on”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B). Pub. L. 106–224, § 147(c)(3), struck out “research and development” after “the limitation on”.

    Enacted provision · exact public law section
    (3) in subparagraph (B), by striking “research and development”.

  22. Agricultural Risk Protection Act of 2000

    Pub. L. 106–224 § 147(d) · 114 Stat. 358

    1. Substituted · 7 U.S.C. § 1516(c)(1)

      Pub. L. 106–224, § 147(d), substituted “income,” for “income and”

    2. Inserted · 7 U.S.C. § 1516(c)(1)

      Pub. L. 106–224, § 147(d), inserted “, and civil fines collected under section 1515(h) of this title” before “, to be available”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 106–224, § 147(d), substituted “income,” for “income and” and inserted “, and civil fines collected under section 1515(h) of this title” before “, to be available”.

    Enacted provision · exact public law section
    (d) Deposits to Insurance Fund.— Section 516(c)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended— (1) by striking “income and” and inserting “income,”; and (2) by inserting “, and civil fines collected under section 515(h)” after “(a)(2)”.

  23. Agricultural Act of 2014

    Pub. L. 113–79 title XI § 11021 · 128 Stat. 649

    Added · 7 U.S.C. § 1516(b)(2)(C)

    Pub. L. 113–79 added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (b)(2)(C). Pub. L. 113–79 added subpar. (C).

    Enacted provision · exact public law section
    SEC. 11021. CROP INSURANCE FRAUD.   Section 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)) is amended by adding at the end the following: “(C) Reviews, compliance, and integrity.— “(i) In general.— For each of the 2014 and subsequent reinsurance years, the Corporation may use the insurance fund established under subsection (c), but not to exceed $9,000,000 for each fiscal year, to pay costs— “(I) to reimburse expenses incurred for the operations and review of policies, plans of insurance, and related materials (including actuarial and related information); and “(II) to assist the Corporation in maintaining program actuarial soundness and financial integrity. “(ii) Secretarial action.— For the purposes described in clause (i), the Secretary may, without further appropriation— “(I) merge some or all of the funds made available under this subparagraph into the accounts of the Risk Management Agency; and “(II) obligate those funds. “(iii) Maintenance of funding.— Funds made available under this subparagraph shall be in addition to other funds made available for costs incurred by the Corporation or the Risk Management Agency.” .

  24. Improvements to Agriculture Programs Act of 2018

    Pub. L. 115–123 div. F § 60101(c)(2) · 132 Stat. 64

    Substituted · 7 U.S.C. § 1516(a)(2)(C); 7 U.S.C. § 1516(b)(1)(D)

    Pub. L. 115–123 substituted “subsection (a)(3)(E)(ii) of that section” for “subsections (a)(3)(E)(ii) and (b)(10) of section 1523 of this title”

    Source evidence

    Code amendment note
    Subsecs. (a)(2)(C), (b)(1)(D). Pub. L. 115–123 substituted “subsection (a)(3)(E)(ii) of that section” for “subsections (a)(3)(E)(ii) and (b)(10) of section 1523 of this title”.

    Enacted provision · exact public law section
    (2) Conforming amendments.— Section 516 of the Federal Crop Insurance Act (7 U.S.C. 1516) is amended in subsections (a)(2)(C) and (b)(1)(D) by striking “subsections (a)(3)(E)(ii) and (b)(10) of section 523” each place it appears and inserting “subsection (a)(3)(E)(ii) of that section”.

  25. Agriculture Improvement Act of 2018

    Pub. L. 115–334 title XI § 11118 · 132 Stat. 4490

    Substituted · 7 U.S.C. § 1516(b)(2)(C)(i)

    Pub. L. 115–334 substituted “$7,000,000” for “$9,000,000” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (b)(2)(C)(i). Pub. L. 115–334 substituted “$7,000,000” for “$9,000,000” in introductory provisions.

    Enacted provision · exact public law section
    SEC. 11118. PROGRAM ADMINISTRATION.   Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended by striking “$9,000,000” and inserting “$7,000,000”.

  26. Pub. L. 119–21 title I § 10506 · 139 Stat. 106

    Substituted · 7 U.S.C. § 1516(b)(2)(C)(i)

    Pub. L. 119–21 substituted “for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter” for “for each fiscal year” in introductory provisions

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (b)(2)(C)(i). Pub. L. 119–21 substituted “for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter” for “for each fiscal year” in introductory provisions.

38 of 45 references resolved to an enrolled provision · 3 partial · 4 unresolved

Editorial Notes

Amendments1941–2025 · 12 rounds

2025

Subsec. (b)(2)(C)(i). Pub. L. 119–21 substituted “for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter” for “for each fiscal year” in introductory provisions.

2018

Subsecs. (a)(2)(C), (b)(1)(D). Pub. L. 115–123 substituted “subsection (a)(3)(E)(ii) of that section” for “subsections (a)(3)(E)(ii) and (b)(10) of section 1523 of this title”.

Subsec. (b)(2)(C)(i). Pub. L. 115–334 substituted “$7,000,000” for “$9,000,000” in introductory provisions.

2014

Subsec. (b)(2)(C). Pub. L. 113–79 added subpar. (C).

2000

Subsec. (a)(2). Pub. L. 106–224, § 147(a), in introductory provisions, substituted “years the following:” for “years—”, in subpar. (A), substituted “The” for “the” and a period for “; and” at end, in subpar. (B), substituted “Premium” for “premium”, and added subpars. (C) and (D).

Subsec. (b)(1). Pub. L. 106–224, § 147(b), in introductory provisions, substituted “including the following:” for “including—”, in subpar. (A), substituted “Premium” for “premium” and a period for the semicolon at end, in subpar. (B), substituted “Administrative” for “administrative” and a period for “; and” at end, in subpar. (C), substituted “All” for “all”, and added subpars. (D) and (E).

Subsec. (b)(2). Pub. L. 106–224, § 147(c)(1), substituted “Policy consideration and implementation” for “Research and development expenses” in heading.

Subsec. (b)(2)(A). Pub. L. 106–224, § 147(c)(2), substituted “may use” for “may pay from”, struck out “research and development expenses of the Corporation” before “, but not to exceed”, substituted “, to pay the following:” for period at end, and added cls. (i) and (ii).

Subsec. (b)(2)(B). Pub. L. 106–224, § 147(c)(3), struck out “research and development” after “the limitation on”.

Subsec. (c)(1). Pub. L. 106–224, § 147(d), substituted “income,” for “income and” and inserted “, and civil fines collected under section 1515(h) of this title” before “, to be available”.

1998

Subsec. (a)(1). Pub. L. 105–185, § 531(1)(A), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “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.”

Subsec. (a)(2). Pub. L. 105–185, § 531(1)(B)(i), inserted “for each of the 1999 and subsequent reinsurance years” after “are necessary to cover” in introductory provisions.

Subsec. (a)(2)(A). Pub. L. 105–185, § 531(1)(B)(ii), added subpar. (A) and struck out former subpar. (A) which read as follows: “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) of this section; and”.

Subsec. (b). Pub. L. 105–185, § 531(2), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows:

“(1) Administrative and operating expenses.—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) of this section, the administrative and operating expenses of an approved insurance provider, including expenses covered by subsection (a)(1)(B) of this section.

“(2) Other expenses.—The Corporation is authorized to pay from the insurance fund established under subsection (c) of this section—

“(A) all other expenses of the Corporation (other than expenses covered by subsection (a)(1) of this section), including all premium subsidies and indemnities;

“(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.”

1996

Subsec. (a)(2)(C). Pub. L. 104–127, § 193(e)(1), struck out subpar. (C) which read as follows: “payments for noninsured assistance losses under section 1519 of this title.”

Subsec. (b)(1). Pub. L. 104–127, § 193(e)(2)(A), struck out subpar. (A) designation and heading “In general”, substituted “In the case of each” for “Except as provided in subparagraph (B), in the case of each”, and struck out heading and text of subpar. (B). Prior to amendment, text read as follows: “In the case of the 1997 reinsurance year, the amount of the payments from the insurance fund established under subsection (c) of this section 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.”

Subsec. (b)(2)(A). Pub. L. 104–127, § 193(e)(3), struck out “, noninsured assistance benefits,” after “all premium subsidies”.

Subsec. (b)(2)(B). Pub. L. 104–127, § 193(e)(2)(B), struck out “subject to paragraph (1)(B),” before “in the case of each”.

1994

Pub. L. 103–354 amended section generally, substituting subsecs. (a) to (c) for former subsecs. (a) to (d) relating to authorization of appropriations to cover operating and administrative costs of Corporation, issuance of regulations, emergency funding, and borrowing authority.

1985

Subsec. (c)(1). Pub. L. 99–198 struck out provision that Secretary’s authority to use the funds of Commodity Credit Corporation for purposes of this subsection would expire one year after date on which that authority was first used.

1981

Subsec. (a). Pub. L. 97–11 designated existing provisions as par. (1) and added par. (2).

1980

Subsec. (a). Pub. L. 96–365, § 109, substituted appropriations authorization of necessary sums for former limitation of $12,000,000 for each fiscal year beginning after ; included as costs agents’ and brokers’ commissions, interest on Treasury notes and other obligations, partial premium payments by the Corporation, and the direct cost of loss adjusters for crop inspections and loss adjustments and authorized payment of these costs from premium income and other Corporation funds and restoration of such payments through subsequent year appropriations; prescribed limitation on employment of additional personnel except during emergencies; and deleted provisions for for consideration as being nonadministrative or nonoperating expenses such expenses as related to purchase, transportation, handling, or sale of the agricultural commodity and the direct cost of loss adjusters for crop inspections and loss adjustments and provision for use of premium income for administrative and operating costs within limits prescribed in applicable appropriations.

Subsecs. (c), (d). Pub. L. 96–365, § 110, added subsecs. (c) and (d).

1956

Subsec. (a). Act , added to list of costs which may be considered as nonadministrative or nonoperating, the direct cost of loss adjusters for crop inspections and loss adjustment, and authorized use of premium income for administrative and operating costs within limits prescribed by applicable appropriation.

1941

Subsec. (a). Act , substituted “the agricultural commodity” for “wheat”, and “$12,000,000” for “$6,000,000”.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–185 effective , see section 537 of Pub. L. 105–185, set out as a note under section 1506 of this title.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–354 effective , and applicable to provision of crop insurance under Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with 1995 crop year, with such Act, as in effect on the day before , to continue to apply with respect to 1994 crop year, see section 120 of Pub. L. 103–354, set out as a note under section 1502 of this title.

Effective Date of 1980 Amendment

Pub. L. 96–365, title I, § 109, , 94 Stat. 1317, provided that the amendment made by that section is effective .

Pub. L. 96–365, title I, § 110, , 94 Stat. 1318, provided that the amendment made by that section is effective .

Additional Appropriation

Act Dec. 23, 1944, ch. 713, § 6, 58 Stat. 920, provided an additional appropriation not to exceed $3,000,000 to be available for the fiscal year 1945 to carry out the provisions of this chapter for the fiscal years 1943 and 1944.

Executive Documents

Transfer of Functions

Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 501, eff. , 11 F.R. 7877, 60 Stat. 1100. See note set out under section 1503 of this title.

Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Adjustment Administration, see note set out under section 1503 of this title.

Credits

1938–2025 · 14 acts
  1. 1938Feb. 16, 1938, ch. 30, title V, § 516, 52 Stat. 77
  2. 1941June 21, 1941, ch. 214, §§ 6, 8, 55 Stat. 255, 256
  3. 1956Aug. 3, 1956, ch. 950, § 10, 70 Stat. 1034
  4. 1980Pub. L. 96–365, title I, §§ 109, 110, , 94 Stat. 1317, 1318
  5. 1981Pub. L. 97–11, , 95 Stat. 13
  6. 1985Pub. L. 99–198, title X, § 1021, , 99 Stat. 1459
  7. 1994Pub. L. 103–354, title I, § 110, , 108 Stat. 3198
  8. 1996Pub. L. 104–127, title I, § 193(e), , 110 Stat. 945
  9. 1998Pub. L. 105–185, title V, § 531, , 112 Stat. 580
  10. 2000Pub. L. 106–224, title I, § 147, , 114 Stat. 393
  11. 2014Pub. L. 113–79, title XI, § 11021, , 128 Stat. 968
  12. 2018Pub. L. 115–123, div. F, § 60101(c)(2), , 132 Stat. 312
  13. 2018Pub. L. 115–334, title XI, § 11118, , 132 Stat. 4926
  14. 2025Pub. L. 119–21, title I, § 10506, , 139 Stat. 106.
Show as published

(Feb. 16, 1938, ch. 30, title V, § 516, 52 Stat. 77; June 21, 1941, ch. 214, §§ 6, 8, 55 Stat. 255, 256; Aug. 3, 1956, ch. 950, § 10, 70 Stat. 1034; Pub. L. 96–365, title I, §§ 109, 110, , 94 Stat. 1317, 1318; Pub. L. 97–11, , 95 Stat. 13; Pub. L. 99–198, title X, § 1021, , 99 Stat. 1459; Pub. L. 103–354, title I, § 110, , 108 Stat. 3198; Pub. L. 104–127, title I, § 193(e), , 110 Stat. 945; Pub. L. 105–185, title V, § 531, , 112 Stat. 580; Pub. L. 106–224, title I, § 147, , 114 Stat. 393; Pub. L. 113–79, title XI, § 11021, , 128 Stat. 968; Pub. L. 115–123, div. F, § 60101(c)(2), , 132 Stat. 312; Pub. L. 115–334, title XI, § 11118, , 132 Stat. 4926; Pub. L. 119–21, title I, § 10506, , 139 Stat. 106.)

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