Union Calendar No. 352 

103

D CONGRESS 

2D SESSION H. R. 4217 

[Report No. 103–649] 

A BILL 

To reform the Federal crop insurance program, and 

for other purposes. 

AUGUST 1, 1994 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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Union Calendar No. 352 

103D CONGRESS 

2D SESSION H. R. 4217 

[Report No. 103–649] 

To reform the Federal crop insurance program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 1994 

Mr. DE LA GARZA (for himself, Mr. JOHNSON of South Dakota, and Mr. 

MINGE) (all by request) introduced the following bill; which was referred 

to the Committee on Agriculture 

AUGUST 1, 1994 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 14, 1994] 

A BILL 

To reform the Federal crop insurance program, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE, TABLE OF CONTENTS, AND DEFI2 NITIONS. 

3 (a) SHORT TITLE.—This Act may be cited as the 

4 ‘‘Federal Crop Insurance Reform Act of 1994’’. 

5 (b) TABLE OF CONTENTS.—The table of contents of this 

6 Act is as follows: 

Sec. 1. Short title, table of contents, and definitions. 

Sec. 2. Members of Board of Directors of Federal Crop Insurance Corporation. 

Sec. 3. General powers of Corporation. 

Sec. 4. Personnel. 

Sec. 5. General authority to offer crop insurance. 

Sec. 6. Catastrophic risk protection, buy-up levels, premiums, and yield determinations. 

Sec. 7. Preparation of policies, claims, and reinsurance. 

Sec. 8. Authorization of appropriations and crop insurance fund. 

Sec. 9. Advisory Committee. 

Sec. 10. Noninsured crop disaster assistance. 

Sec. 11. Crop insurance requirements under price support programs. 

Sec. 12. Elimination of gender references. 

Sec. 13. Prevented planting. 

Sec. 14. Effective date. 

7 (c) DEFINITIONS.—Section 502 of the Federal Crop In8 surance Act (7 U.S.C. 1502) is amended— 

9 (1) by striking the section heading and ‘‘SEC. 

10 502.’’ and inserting the following: 

11 ‘‘SEC. 502. PURPOSE AND DEFINITIONS. 

12 ‘‘(a) PURPOSE.—’’; and 

13 (2) by adding at the end the following new sub14 section: 

15 ‘‘(b) DEFINITIONS.—For purposes of this title: 

16 ‘‘(1) SECRETARY.—The term ‘Secretary’ means 

17 the Secretary of Agriculture. 


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1 ‘‘(2) CORPORATION.—The term ‘Corporation’ 

2 means the Federal Crop Insurance Corporation estab3 lished under section 503. 

4 ‘‘(3) BOARD.—The term ‘Board’ means the 

5 Board of Directors of the Corporation established 

6 under section 505(a). 

7 ‘‘(4) LOSS RATIO.—The term ‘loss ratio’ means 

8 the ratio of all sums paid by the Corporation as in9 demnities under all crop insurance policies to that of 

10 the premiums designated for anticipated losses and a 

11 reasonable reserve, not including the portion of the 

12 premiums designated for operating and administra13 tive expenses. 

14 ‘‘(5) TRANSITIONAL YIELD.—The term ‘transi15 tional yield’ means the maximum average production 

16 per acre or equivalent measure that is assigned to 

17 acreage for a crop year by the Corporation in accord18 ance with its regulations whenever the producer 

19 fails— 

20 ‘‘(A) to certify that acceptable documenta21 tion of production and acreage for that crop year 

22 is in the producer’s possession; or 

23 ‘‘(B) to present such acceptable documenta24 tion upon the demand of the Corporation or an 


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1 insurance company reinsured by the Corpora2 tion.’’. 

3 (d) CONFORMING AMENDMENTS.—The Federal Crop 

4 Insurance Act (7 U.S.C. 1501 et seq.) is amended— 

5 (1) in section 503 (7 U.S.C. 1503), by striking 

6 ‘‘(herein called the Corporation)’’; and 

7 (2) in section 505(a) (7 U.S.C. 1505(a)), by 

8 striking ‘‘(hereinafter called the ‘Board’)’’. 

9 SEC. 2. MEMBERS OF BOARD OF DIRECTORS OF FEDERAL 

10 CROP INSURANCE CORPORATION. 

11 Section 505(a) of the Federal Crop Insurance Act (7 

12 U.S.C. 1505(a)) is amended in the second sentence— 

13 (1) by striking ‘‘or Assistant Secretary’’ the first 

14 place it appears; and 

15 (2) by striking ‘‘the Under Secretary or Assist16 ant Secretary of Agriculture responsible for the farm 

17 credit programs of the Department of Agriculture’’ 

18 and inserting ‘‘one additional Under Secretary of Ag19 riculture (as designated by the Secretary of Agri20 culture)’’. 

21 SEC. 3. GENERAL POWERS OF CORPORATION. 

22 (a) CLAIMS SETTLEMENT.—Section 506 of the Federal 

23 Crop Insurance Act (7 U.S.C. 1506) is amended— 


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1 (1) by redesignating subsections (j), (k), (l), (m), 

2 and (n) as subsections (k), (l), (m), (n), and (o), re3 spectively; and 

4 (2) by inserting after subsection (i) the following 

5 new subsection: 

6 ‘‘(j) CLAIMS SETTLEMENT.—The Corporation shall 

7 have the authority to make final and conclusive settlement 

8 and adjustment of any claims made by or against the Cor9 poration or the accounts of its fiscal officers.’’. 

10 (b) REGULATIONS; PREEMPTION.—Subsection (e) of 

11 such section is amended— 

12 (1) by striking ‘‘governing’’ and inserting ‘‘to 

13 carry out this title and to govern’’; and 

14 (2) by adding at the end the following new sen15 tence: ‘‘State and local laws or rules shall not apply 

16 to rules and regulations adopted by the Corporation 

17 to the extent that such rules and regulations so pro18 vide or to the extent that State and local laws or rules 

19 are inconsistent with such rules and regulations.’’. 

20 (c) DEFINITION OF SUBSTANTIAL BENEFICIAL INTER21 EST.—Subsection (m) of such section (as redesignated by 

22 subsection (a)(1)) is amended in paragraph (4) by striking 

23 ‘‘5 percent’’ and inserting ‘‘10 percent’’. 

24 (d) PENALTY FOR FALSE INFORMATION.—Subsection 

25 (n) of such section (as redesignated by subsection (a)(1)) 


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1 is amended in paragraph (1) by striking subparagraph (B) 

2 and inserting the following new subparagraph: 

3 ‘‘(B) disqualify the person— 

4 ‘‘(i) from purchasing catastrophic risk 

5 protection under section 508(b) or partici6 pating in the noninsured assistance pro7 gram under section 519 for a period not to 

8 exceed 2 years; and 

9 ‘‘(ii) from receiving any other benefit 

10 under this title for a period not to exceed 10 

11 years.’’. 

12 (e) ACTUARIAL SOUNDNESS.—Subsection (o) of such 

13 section (as redesignated by subsection (a)(1)) is amended— 

14 (1) in paragraph (1), by striking ‘‘beginning 

15 farmers from obtaining adequate Federal crop insur16 ance, as determined by the Corporation’’ and insert17 ing ‘‘beginning farmers, as determined by the Sec18 retary, from obtaining Federal crop insurance’’; 

19 (2) in paragraph (3), by striking ‘‘and’’ at the 

20 end of the paragraph; 

21 (3) by redesignating paragraph (4) as para22 graph (5); and 

23 (4) by inserting after paragraph (3) the fol24 lowing new paragraph: 


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1 ‘‘(4) establishing a database that contains social 

2 security numbers or employee identification numbers 

3 of insurance agents and adjusters and using the num4 bers to identify agents and adjusters who are high 

5 risk for actuarial purposes, and for other purposes 

6 permitted by law; and’’. 

7 (f) REGULATORY AND PAPERWORK REDUCTION.— 

8 Such section is further amended by adding at the end the 

9 following new subsection: 

10 ‘‘(p) REGULATORY AND PAPERWORK REDUCTION.— 

11 ‘‘(1) CATASTROPHIC RISK PROTECTION.—In de12 veloping and carrying out the policies and procedures 

13 for catastrophic risk protection under section 508(b), 

14 the Corporation shall minimize, to the maximum ex15 tent practicable, the paperwork required and the com16 plexity and costs of procedures governing the applica17 tion for, and the processing and servicing of, cata18 strophic risk protection. 

19 ‘‘(2) OTHER PLANS.—To the extent that the poli20 cies and procedures developed under paragraph (1) 

21 may be applied to other plans of insurance offered 

22 under this title without jeopardizing the actuarial 

23 soundness or integrity of the crop insurance program 

24 under this title, the Corporation shall apply the poli25 cies and procedures to the other plans of insurance 


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1 within a reasonable period of time (as determined by 

2 the Corporation) after the effective date of this para3 graph. 

4 ‘‘(3) SOLICITATION OF COST INFORMATION AND

5 COST-REDUCTION PROPOSALS.— 

6 ‘‘(A) COST INFORMATION.—The Corporation 

7 shall solicit from private insurance providers 

8 and agents information regarding— 

9 ‘‘(i) their average cost per policy of 

10 complying with requirements, regulations, 

11 procedures, and processes under this title; 

12 and 

13 ‘‘(ii) the data upon which such costs 

14 are determined. 

15 ‘‘(B) COST-REDUCTION PROPOSALS.—The 

16 Corporation shall also solicit from private insur17 ance providers and agents proposals for modi18 fying or altering the requirements, regulations, 

19 procedures, and processes under this title to re20 duce their total average cost per policy. 

21 ‘‘(C) REPORT.—By June 1, 1995, the Cor22 poration shall submit a report to Congress con23 taining the information received under subpara24 graph (A) and an evaluation of the cost-reduc25 tion proposals received under subparagraph (B). 


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1 ‘‘(4) COST REDUCTION PLAN.— 

2 ‘‘(A) PLAN REQUIRED.—Subject to the con3 dition that the Corporation maintain the integ4 rity of the crop insurance program under this 

5 title, the Corporation shall include in the report 

6 required under paragraph (3) a plan to reduce 

7 the average cost per policy incurred by private 

8 insurance providers and agents to comply with 

9 requirements, regulations, procedures, and proc10 esses under this title. To the extent practicable, 

11 the Corporation shall set a target percentage by 

12 which such costs should be reduced. 

13 ‘‘(B) IMPLEMENTATION OF PLAN.—Not later 

14 than 60 days after submitting the report re15 quired under paragraph (3), and in accordance 

16 with the plan contained in the report, the Cor17 poration shall adopt such measures consistent 

18 with maintaining the integrity of the crop insur19 ance program under this title as the Corporation 

20 determines are appropriate— 

21 ‘‘(i) to improve Corporation liaison 

22 with policyholders and private insurance 

23 providers; and 


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1 ‘‘(ii) to reduce the average cost per pol2 icy to meet the target percentage set by the 

3 Corporation.’’. 

4 (g) IMPROVED PROGRAM COMPLIANCE.—Such section 

5 is further amended by inserting after subsection (p) (as 

6 added by subsection (f)) the following new subsection: 

7 ‘‘(q) PROGRAM COMPLIANCE.— 

8 ‘‘(1) TIMELINESS.—The Corporation shall work 

9 actively with private insurance providers to address 

10 program compliance and integrity issues as such 

11 issues develop. 

12 ‘‘(2) NOTIFICATION OF COMPLIANCE PROB13 LEMS.—The Corporation shall notify in writing any 

14 private insurance provider with whom the Corpora15 tion has an agreement under this title of any error, 

16 omission, or failure to follow Corporation regulations 

17 or procedures for which the private insurance pro18 vider may be responsible and which may result in a 

19 debt owed the Corporation. Such notice shall be given 

20 within 3 years of the end of the insurance period dur21 ing which the error, omission, or failure is alleged to 

22 have occurred, except that such time limit shall not 

23 apply with respect to errors, omissions, or procedural 

24 violations that are willful or intentional. The failure 

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1 section shall relieve the private insurance provider 

2 from the debt owed the Corporation.’’. 

3 SEC. 4. PERSONNEL. 

4 Section 507 of the Federal Crop Insurance Act (7 

5 U.S.C. 1507) is amended— 

6 (1) in subsection (a), by striking ‘‘, and county 

7 crop insurance committeemen’’; 

8 (2) in subsection (c), by striking ‘‘, in which case 

9 the agent or broker’’ in the first sentence and all that 

10 follows through the period at the end of the second 

11 sentence and inserting a period; 

12 (3) in subsection (d), by striking ‘‘, except that’’ 

13 and all that follows through the period at the end of 

14 the subsection and inserting a period; and 

15 (4) by adding at the end the following new sub16 section: 

17 ‘‘(g) SPECIALTY CROPS COORDINATOR.—The Corpora18 tion shall establish a senior-level position to be known as 

19 the Specialty Crops Coordinator. The Specialty Crops Coor20 dinator shall have primary responsibility for addressing the 

21 needs of specialty crop producers and for providing infor22 mation and advice in connection with the Corporation’s ac23 tivities to improve and expand the insurance program for 

24 specialty crops. In carrying out such responsibility, the 

25 Specialty Crops Coordinator shall act as the Corporation’s 


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1 liaison with representatives of specialty crop producers and 

2 provide the Corporation with the producers’ knowledge, ex3 pertise, and familiarity with risk management and produc4 tion issues pertaining to specialty crops. The Specialty 

5 Crops Coordinator shall also use information collected from 

6 Corporation field office directors in States in which spe7 cialty crops have a significant economic effect and from 

8 other sources, including the extension service and colleges 

9 and universities.’’. 

10 SEC. 5. GENERAL AUTHORITY TO OFFER CROP INSURANCE. 

11 (a) GENERAL AUTHORITY TO OFFER INSURANCE.— 

12 Subsection (a) of section 508 of the Federal Crop Insurance 

13 Act (7 U.S.C. 1508) is amended to read as follows: 

14 ‘‘(a) AUTHORITY TO OFFER INSURANCE.— 

15 ‘‘(1) GENERAL AUTHORITY AND LOSSES COV16 ERED.—If sufficient actuarial data are available, as 

17 determined by the Board, the Corporation may insure 

18 (or provide reinsurance for insurers of) producers of 

19 agricultural commodities grown in the United States 

20 under any plan or plans of insurance determined by 

21 the Board to be adapted to the agricultural com22 modity involved. To qualify for coverage under these 

23 plans of insurance, the losses of the insured com24 modity shall be due to drought, flood, or other natural 

25 disaster, as determined by the Secretary. 


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1 ‘‘(2) PERIOD OF COVERAGE.—Except in the case 

2 of tobacco, insurance shall not extend beyond the pe3 riod the insured commodity is in the field. For the 

4 purpose of the foregoing sentence, in the case of 

5 aquacultural species, the term ‘field’ means the envi6 ronment in which the commodity is produced. 

7 ‘‘(3) EXCLUSIONS.—Insurance provided under 

8 this section shall not cover losses— 

9 ‘‘(A) due to the neglect or malfeasance of the 

10 producer; 

11 ‘‘(B) due to the failure of the producer to re12 seed to the same crop in those areas and under 

13 such circumstances where it is customary to re14 seed; or 

15 ‘‘(C) due to the failure of the producer to 

16 follow good farming practices, as determined by 

17 the Corporation. 

18 ‘‘(4) EXPANSION TO OTHER AREAS OR SINGLE

19 PRODUCERS.— 

20 ‘‘(A) AREA EXPANSION.—The Corporation 

21 may offer plans of insurance or reinsurance for 

22 production of agricultural commodities in the 

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1 iana Islands, and the Trust Territory of the Pa2 cific Islands in the same manner as provided in 

3 this section for production of agricultural com4 modities in the United States. 

5 ‘‘(B) PRODUCER EXPANSION.—In areas in 

6 the United States or specified in subparagraph 

7 (A) where crop insurance is not available for a 

8 particular agricultural commodity, the Corpora9 tion may offer to enter into a written agreement 

10 with an individual producer operating in that 

11 area for insurance coverage under this title if the 

12 producer has actuarially sound data relating to 

13 the producer’s production of that commodity and 

14 such data is acceptable to the Corporation. 

15 ‘‘(5) DISSEMINATION OF CROP INSURANCE IN16 FORMATION.—The Corporation shall make available 

17 to producers through local offices of the Department 

18 of Agriculture— 

19 ‘‘(A) current and complete information on 

20 all aspects of Federal crop insurance; and 

21 ‘‘(B) a listing of insurance agents and com22 panies offering to sell crop insurance in their 

23 area. 

24 ‘‘(6) ADDITION OF NEW AND SPECIALTY

25 CROPS.— 


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1 ‘‘(A) DATA COLLECTION.—Not later than 6 

2 months after the date of the enactment of this 

3 paragraph, the Secretary shall issue guidelines 

4 for publication in the Federal Register for data 

5 collection to assist the Corporation in formu6 lating crop insurance policies for new and spe7 cialty crops. 

8 ‘‘(B) ADDITION OF NEW CROPS.—Not later 

9 than 1 year after the date of the enactment of 

10 this paragraph, and annually thereafter, the 

11 Corporation shall report to Congress on the 

12 progress and expected timetable for expanding 

13 crop insurance coverage under this title to new 

14 and specialty crops. 

15 ‘‘(C) ADDITION OF DIRECT SALE PERISH16 ABLE CROPS.—Not later than 1 year after the 

17 date of the enactment of this paragraph, the Cor18 poration shall report to Congress on the feasi19 bility of offering a crop insurance program de20 signed to meet the needs of specialized producers 

21 of vegetables and other perishable crops who 

22 market through direct marketing channels.’’. 

23 (b) REPORT ON IMPROVING DISSEMINATION OF CROP

24 INSURANCE INFORMATION.—Not later than 6 months after 

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1 surance Corporation shall submit a report to Congress con2 taining a plan to implement a sound program for producer 

3 education regarding the crop insurance program and for 

4 the dissemination of crop insurance information to pro5 ducers, as required by section 508(a)(5) of the Federal Crop 

6 Insurance Act. Subsequent reports on the progress of the 

7 implementation of the program shall be submitted to Con8 gress in 1996 and 1997. 

9 SEC. 6. CATASTROPHIC RISK PROTECTION, BUY-UP COV10 ERAGE, PREMIUMS, AND YIELD DETERMINA11 TIONS. 

12 (a) IN GENERAL.—Section 508 of the Federal Crop In13 surance Act (7 U.S.C. 1508) is amended— 

14 (1) by striking subsections (c), (e), (f), (g), (h), 

15 (i), (l), (m), and (n); 

16 (2) by redesignating subsections (b) and (d) as 

17 subsections (h) and (i), respectively; and 

18 (3) by inserting after subsection (a) the following 

19 new subsections: 

20 ‘‘(b) CATASTROPHIC RISK PROTECTION.— 

21 ‘‘(1) CATASTROPHIC RISK PROTECTION RE22 QUIRED.—The Corporation shall offer to producers of 

23 agricultural commodities grown in the United States 

24 a catastrophic risk protection plan to indemnify a 

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1 vented planting resulting from drought, flood, or other 

2 natural disaster, as determined by the Secretary, if 

3 the producer is unable to plant other crops for harvest 

4 on that acreage for that crop year. 

5 ‘‘(2) AMOUNT OF COVERAGE.— 

6 ‘‘(A) IN GENERAL.—Subject to subpara7 graph (B), under catastrophic risk protection, 

8 the Corporation shall offer producers— 

9 ‘‘(i) coverage equal to 50 percent loss 

10 in yield (determined on an area or indi11 vidual yield basis as described in subsection 

12 (g)) indemnified at 60 percent of the ex13 pected market price of the commodity (as 

14 determined by the Corporation); or 

15 ‘‘(ii) other coverage established by the 

16 Corporation that is comparable to the cov17 erage described in clause (i). 

18 ‘‘(B) REDUCTION IN ACTUAL PAYMENT.— 

19 The amount paid to a producer on a claim 

20 under catastrophic risk protection may reflect a 

21 reduction that is proportional to the out-of22 pocket expenses that are not incurred by the pro23 ducer as a result of not planting, growing, or 

24 harvesting the crop for which the claim is made, 

25 as determined by the Corporation. 


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1 ‘‘(3) YIELD AND LOSS BASIS.—Producers shall 

2 have the option of purchasing catastrophic risk pro3 tection based on either an individual yield and loss 

4 basis or on an area yield and loss basis, as described 

5 in subsection (g), when both options are offered by the 

6 Corporation. 

7 ‘‘(4) SALE OF CATASTROPHIC RISK PROTEC8 TION.— 

9 ‘‘(A) APPLICATION.—Except as provided in 

10 subparagraph (B), producers shall submit an ap11 plication at the local office of the Department of 

12 Agriculture or to a private insurance provider 

13 approved by the Corporation to participate in 

14 catastrophic risk protection. To the extent sales 

15 of catastrophic risk protection are made through 

16 local offices of the Department of Agriculture, the 

17 Secretary may require the local office to contract 

18 with private insurance providers to service the 

19 insurance contracts. 

20 ‘‘(B) RESTRICTION OF SALES TO PRIVATE

21 INSURANCE PROVIDERS.—If the Secretary deter22 mines that the number or capacity of private in23 surance providers in a county is sufficient to 

24 adequately provide catastrophic risk protection 

25 to producers in that county for a particular crop 


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1 year, the Secretary may discontinue the sale for 

2 that crop year of catastrophic risk protection at 

3 local offices of the Department of Agriculture 

4 serving that county. A determination of the Sec5 retary under this subparagraph to discontinue 

6 the sale of catastrophic risk protection at local 

7 offices of the Department of Agriculture, and the 

8 process by which the determination is made, 

9 shall not be subject to judicial review under the 

10 Administrative Procedure Act or any other pro11 vision of law. 

12 ‘‘(C) CONSIDERATIONS.—In making a de13 termination under subparagraph (B) with re14 spect to discontinuing the sale of catastrophic 

15 risk protection at local offices of the Department 

16 of Agriculture, the Secretary shall consider 

17 equally the following factors: 

18 ‘‘(i) Whether the use of Department 

19 personnel and offices to provide catastrophic 

20 risk protection is the most efficient and 

21 cost-effective use of Department resources. 

22 ‘‘(ii) The availability and training of 

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1 ‘‘(iii) The needs of, and fairness to, 

2 local producers. 

3 ‘‘(D) COMPARISON OF PRIVATE AND PUBLIC

4 DELIVERY SYSTEMS.—To evaluate the appro5 priateness of determinations under subparagraph 

6 (B), the Secretary shall require each local office 

7 of the Department of Agriculture at which pro8 ducers apply for catastrophic risk protection to 

9 annually provide to the Secretary information 

10 regarding the number of catastrophic risk protec11 tion policies sold, the training and personnel 

12 costs incurred to provide and service the policies, 

13 the average cost per policy to provide and service 

14 the policies directly, and (if applicable) the cost 

15 of contracting with private insurance providers 

16 to service the policies. For comparison purposes, 

17 the Secretary may also request comparable infor18 mation from private insurance providers selling 

19 catastrophic risk protection. 

20 ‘‘(E) REPORT.—Not later than 18 months 

21 after the date of the enactment of the Federal 

22 Crop Insurance Reform Act of 1994 (and annu23 ally thereafter), the Secretary shall submit to 

24 Congress a report— 


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1 ‘‘(i) listing the counties at which pro2 ducers were permitted to apply for cata3 strophic risk protection during the period 

4 covered by the report; and 

5 ‘‘(ii) containing and evaluating the in6 formation collected under subparagraph (D) 

7 for that period. 

8 ‘‘(5) ADMINISTRATIVE FEE.— 

9 ‘‘(A) FEE REQUIRED.—Producers shall pay 

10 an administrative fee for catastrophic risk pro11 tection. The administrative fee for each producer 

12 shall be $50 per crop per county, but not to ex13 ceed $100 per producer per county. The adminis14 trative fee shall be paid by the producer at the 

15 time the producer applies for catastrophic risk 

16 protection. 

17 ‘‘(B) WAIVER OF FEE.—The Corporation 

18 shall waive the administrative fee for limited re19 source farmers, as defined by the Corporation. 

20 ‘‘(C) USE OF FEES.—Administrative fees 

21 collected by an office of the Department of Agri22 culture or by a private insurance provider shall 

23 be retained as payment for operating and ad24 ministrative expenses incurred for the delivery of 

25 catastrophic risk protection. 


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1 ‘‘(6) COVERAGE OF ALL CROPS.—To be eligible 

2 for benefits under any commodity price support, pro3 duction adjustment, or conservation program admin4 istered by the Department of Agriculture, or for the 

5 farmer loan programs of the Farmers Home Adminis6 tration or any successor of that agency, a producer 

7 must obtain at least catastrophic risk protection for 

8 each crop of economic significance produced on each 

9 farm in any county in which the producer has an in10 terest, if insurance is available in the county for those 

11 crops. For purposes of this paragraph, the term ‘crop 

12 of economic significance’ means a crop that has con13 tributed, or is expected to contribute, 10 percent or 

14 more of the total expected value of all crops grown by 

15 the producer. 

16 ‘‘(7) COVERAGE UNDER ONE POLICY.—If a pro17 ducer applies for catastrophic risk protection for a 

18 crop produced by the producer in a county, the pro19 ducer shall be required to secure such protection 

20 under a single policy. 

21 ‘‘(8) AUTHORITY TO LIMIT CATASTROPHIC RISK

22 PROTECTION.—The Board may limit the availability 

23 of catastrophic risk protection in any county or area, 

24 or on any farm, on the basis of the insurance risk in25 volved. 


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1 ‘‘(9) TRANSITIONAL COVERAGE FOR 1995 

2 CROPS.—Effective only for the 1995 crops and for 

3 which the sales period for crop insurance expires be4 fore the date of the enactment of the Federal Crop In5 surance Reform Act of 1994, the Corporation shall 

6 allow producers of such crops until at least the end 

7 of the 6-month period beginning on such date to ob8 tain catastrophic risk protection for such crops. Upon 

9 the enactment of such Act, producers who made time10 ly purchases of a crop insurance policy before the date 

11 of the enactment of such Act, under the provisions 

12 then in effect, shall be eligible for the same benefits to 

13 which a producer would be entitled under comparable 

14 buy-up coverage under subsection (c). 

15 ‘‘(c) COVERAGE LEVELS GREATER THAN CATA16 STROPHIC RISK PROTECTION.— 

17 ‘‘(1) BUY-UP COVERAGE GENERALLY.—The Cor18 poration shall offer to producers of agricultural com19 modities grown in the United States plans of crop in20 surance providing levels of coverage greater than that 

21 available under catastrophic risk protection under 

22 subsection (b). Plans of insurance under this sub23 section shall be known as ‘buy-up coverage’. Producers 

24 shall apply to private insurance providers approved 

25 by the Corporation for purchase of buy-up coverage if 


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1 such coverage is available from private insurance pro2 viders. If buy-up coverage is unavailable privately, 

3 the Corporation may offer buy-up coverage plans of 

4 insurance directly to producers. If a producer applies 

5 for catastrophic risk protection at an office of the De6 partment of Agriculture but then elects to purchase 

7 buy-up coverage under this subsection, the insurance 

8 file for that producer shall be transferred to the ap9 proved private insurance provider servicing the buy10 up coverage policy. 

11 ‘‘(2) ADMINISTRATIVE FEE.— 

12 ‘‘(A) FEE REQUIRED.—If a producer elects 

13 to purchase buy-up coverage for a crop at a level 

14 less than 65 percent of the recorded or appraised 

15 average yield indemnified at 100 percent of the 

16 expected market price, or an equivalent coverage, 

17 the producer shall pay an administrative fee for 

18 such buy-up coverage. Subsection (b)(5) shall 

19 apply in determining the amount and use of the 

20 administrative fee or in determining whether to 

21 waive the administrative fee. 

22 ‘‘(B) EXCEPTION.—If a producer elects to 

23 purchase buy-up coverage for a crop equal to 65 

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1 pected market price, or an equivalent coverage, 

2 the producer shall not be subject to the adminis3 trative fee required by this paragraph or sub4 section (b)(5). If the producer has already paid 

5 the administrative fee for a lower level of cov6 erage for that crop, the administrative fee shall 

7 be refunded to the producer unless the refund 

8 would reduce to less than $100 the total amount 

9 of the administrative fee paid by the producer 

10 for more than 2 crops in the same county for 

11 which a lower level of coverage is obtained. 

12 ‘‘(3) YIELD AND LOSS BASIS.—Producers shall 

13 have the option of purchasing buy-up coverage based 

14 on either an individual yield and loss basis or on an 

15 area yield and loss basis, as described in subsection 

16 (g), when both options are offered by the Corporation. 

17 ‘‘(4) YIELD ELECTIONS.—Yield coverage shall be 

18 made available to the producer on the basis of any 

19 yield election that equals or is less than 85 percent of 

20 the individual yield or 95 percent of the area yield, 

21 as determined by the Corporation. 

22 ‘‘(5) PRICE LEVELS.— 

23 ‘‘(A) IN GENERAL.—The Corporation shall 

24 establish a price level for each commodity on 

25 which buy-up coverage is offered that— 


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1 ‘‘(i) shall not be less than the expected 

2 market price for the commodity, as deter3 mined by the Corporation; or 

4 ‘‘(ii) at the discretion of the Corpora5 tion, may be based on the actual market 

6 price at the time of harvest, as determined 

7 by the Corporation. 

8 ‘‘(B) SPECIAL RULE FOR MALTING BAR9 LEY.—For malting barley covered by a contract 

10 between a producer and a processor, the Cor11 poration may offer a plan of insurance that al12 lows the producer to select the contract price as 

13 the price election if— 

14 ‘‘(i) the contract is definite as to the 

15 quantity and the price; 

16 ‘‘(ii) the producer submits a copy of 

17 the contract with the application for insur18 ance prior to the sales closing date for the 

19 crop; 

20 ‘‘(iii) coverage does not exceed the 

21 quantity contained in the contract; 

22 ‘‘(iv) the contracted quantity does not 

23 exceed the production guarantee; 

24 ‘‘(v) the contract is usual and cus25 tomary in form and content for the area; 


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1 ‘‘(vi) the processor is completely inde2 pendent from the producer; and 

3 ‘‘(vii) the processor does not have an 

4 insurable interest in the crop. 

5 ‘‘(6) PRICE ELECTIONS.—Subject to paragraph 

6 (10), insurance coverage shall be made available to 

7 the producer on the basis of any price election that 

8 equals or is less than that established by the Board. 

9 ‘‘(7) LEVEL OF COVERAGE.—Not later than the 

10 beginning of the 1996 crop year, the level of coverage 

11 shall be quoted in terms of dollars per acre. 

12 ‘‘(8) REDUCTION IN ACTUAL PAYMENT.—The 

13 amount paid to a producer on a claim under buy-up 

14 coverage may reflect a reduction that is proportional 

15 to the out-of-pocket expenses that are not incurred by 

16 the producer as a result of not planting, growing, or 

17 harvesting the crop for which the claim is made, as 

18 determined by the Corporation. 

19 ‘‘(9) FIRE AND HAIL COVERAGE.—For levels of 

20 buy-up coverage equal to 65 percent or more of the re21 corded or appraised average yield indemnified at 100 

22 percent of the expected market price, or an equivalent 

23 coverage, the producer may elect to delete from the 

24 buy-up coverage any coverage against damage caused 

25 by fire and hail if the producer obtains an equivalent 


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1 or greater dollar amount of coverage for damage 

2 caused by fire and hail from a private insurance pro3 vider. Upon written notice of such election to the com4 pany issuing the policy providing buy-up coverage 

5 and submission of evidence of substitute coverage on 

6 the commodity insured, the producer’s premium shall 

7 be reduced by an amount determined by the Corpora8 tion to be actuarially appropriate, taking into ac9 count the actuarial value of the remaining coverage 

10 provided by the Corporation. In no event shall the 

11 producer be given credit for an amount of premium 

12 determined to be greater than the actuarial value of 

13 the protection against losses caused by fire and hail 

14 that is included in the buy-up coverage for the crop. 

15 ‘‘(10) LIMITATIONS ON BUY-UP COVERAGE.—The 

16 Board may limit the availability of buy-up coverage 

17 under this subsection in any county or area, or on 

18 any farm, on the basis of the insurance risk involved. 

19 The Board shall not offer buy-up coverage equal to 

20 less than 50 percent of the recorded or appraised aver21 age yield indemnified at 100 percent of the expected 

22 market price, or an equivalent coverage. 

23 ‘‘(d) PREMIUMS.— 

24 ‘‘(1) PREMIUMS REQUIRED.—The Corporation 

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1 ance at such rates as the Board deems actuarially 

2 sufficient to attain an expected loss ratio of not great3 er than 1.1. 

4 ‘‘(2) PREMIUM AMOUNTS.—The premium 

5 amounts for catastrophic risk protection under sub6 section (b) and buy-up coverage under subsection (c) 

7 shall be fixed as follows: 

8 ‘‘(A) In the case of catastrophic risk protec9 tion, the amount of the premium shall be suffi10 cient to cover anticipated losses and a reasonable 

11 reserve. 

12 ‘‘(B) In the case of buy-up coverage below 

13 65 percent of the recorded or appraised average 

14 yield indemnified at 100 percent of the expected 

15 market price, or an equivalent coverage, but 

16 greater than 50 percent of the recorded or ap17 praised average yield indemnified at 100 percent 

18 of the expected market price, or an equivalent 

19 coverage, the amount of the premium shall— 

20 ‘‘(i) be sufficient to cover anticipated 

21 losses and a reasonable reserve; and 

22 ‘‘(ii) include an amount for operating 

23 and administrative expenses, as determined 

24 by the Corporation, that is less than the 

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1 cent of the recorded or appraised average 

2 yield indemnified at 100 percent of the ex3 pected market price, or an equivalent cov4 erage. 

5 ‘‘(C) In the case of buy-up coverage equal to 

6 or greater than 65 percent of the recorded or ap7 praised average yield indemnified at 100 percent 

8 of the expected market price, or an equivalent 

9 coverage, the amount of the premium shall— 

10 ‘‘(i) be sufficient to cover anticipated 

11 losses and a reasonable reserve; and 

12 ‘‘(ii) include an amount for operating 

13 and administrative expenses, as determined 

14 by the Corporation, on an industry-wide 

15 basis as a percent of the amount of the pre16 mium used to define loss ratio under section 

17 502. 

18 ‘‘(3) PREMIUM REDUCTION.—If a private insur19 ance provider determines that it may provide insur20 ance more efficiently than the expense reimbursement 

21 amount established by the Corporation, the private 

22 insurance provider may reduce, subject to the ap23 proval of the Corporation, the premium charged the 

24 insured by an amount corresponding to such effi25 ciency. The private insurance provider shall apply to 


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1 the Corporation for authority to reduce the premium 

2 before making such a reduction, and the reduction 

3 shall be subject to the rules, limitations, and proce4 dures established by the Corporation. 

5 ‘‘(e) PAYMENT OF PORTION OF PREMIUM BY CORPORA6 TION.— 

7 ‘‘(1) IN GENERAL.—For the purpose of encour8 aging the broadest possible participation of producers 

9 in the catastrophic risk protection provided under 

10 subsection (b) and the buy-up coverage provided 

11 under subsection (c), the Corporation shall pay a part 

12 of the premium in the amounts provided in this sub13 section. 

14 ‘‘(2) AMOUNT OF PAYMENT.—The amount of the 

15 premium to be paid by the Corporation shall be as 

16 follows: 

17 ‘‘(A) In the case of catastrophic risk protec18 tion, the amount shall be equivalent to the pre19 mium established for catastrophic risk protection 

20 under subsection (d)(2)(A). 

21 ‘‘(B) In the case of coverage below 65 per22 cent of the recorded or appraised average yield 

23 indemnified at 100 percent of the expected mar24 ket price, or an equivalent coverage, but greater 

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1 erage yield indemnified at 100 percent of the ex2 pected market price, or an equivalent coverage, 

3 the amount shall be equivalent to the amount of 

4 premium established for catastrophic risk protec5 tion coverage and the amount of operating and 

6 administrative expenses established under sub7 section (d)(2)(B). 

8 ‘‘(C) In the case of coverage equal to or 

9 greater than 65 percent of the recorded or ap10 praised average yield indemnified at 100 percent 

11 of the expected market price, or an equivalent 

12 coverage, on an individual or area basis, the 

13 amount shall be equivalent to an amount equal 

14 to the premium established for 50 percent loss in 

15 yield indemnified at 75 percent of the expected 

16 market price and the amount of operating and 

17 administrative expenses established under sub18 section (d)(2)(C). 

19 ‘‘(3) STATE SUBSIDY AUTHORIZED.—The Board 

20 may enter into agreements with any State or agency 

21 of a State under which the State or agency may pay 

22 to the approved insurance provider an additional pre23 mium subsidy to further reduce the portion of the pre24 mium paid by producers in the State. 

25 ‘‘(f) ELIGIBILITY REQUIREMENTS.— 


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1 ‘‘(1) PERSONS ELIGIBLE.—Except as otherwise 

2 provided in this title, no producer may be denied in3 surance under this section if the producer meets the 

4 definition of person, as defined by the Secretary. In 

5 the case of plans of insurance under this title other 

6 than catastrophic risk protection, the definition of 

7 person shall include a producer who is over 18 years 

8 of age or older and has a bona fide insurable interest 

9 in a crop as an owner, owner-operator, landlord, ten10 ant, or sharecropper. 

11 ‘‘(2) SALES CLOSING DATE.—A producer who de12 sires to obtain catastrophic risk protection under sub13 section (b) or buy-up coverage under subsection (c) for 

14 a crop shall submit an application by the sales clos15 ing date for the crop. The Corporation shall establish 

16 sales closing dates to maximize convenience to pro17 ducers in obtaining benefits under commodity price 

18 support and production adjustment programs of the 

19 Department whenever feasible; except that, in estab20 lishing such dates, the Corporation shall ensure that 

21 the goal of actuarial soundness for the crop insurance 

22 program under this title is met. 

23 ‘‘(3) RECORDS AND REPORTING.—To obtain cat24 astrophic risk protection under subsection (b) or buy25 up coverage under subsection (c), a producer shall— 


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1 ‘‘(A) provide, to the extent required by the 

2 Corporation, records acceptable to the Corpora3 tion of historical acreage and production of the 

4 crops for which the insurance is sought or accept 

5 a yield determined by the Corporation; and 

6 ‘‘(B) report acreage planted and prevented 

7 from planting by the designated acreage report8 ing date for that crop and location as established 

9 by the Corporation. 

10 ‘‘(4) LIMITATION ON MULTIPLE BENEFITS FOR

11 SAME LOSS.—If a producer who is eligible to receive 

12 benefits under catastrophic risk protection under sub13 section (b) or noninsured crop disaster assistance 

14 under section 519 is also eligible to receive assistance 

15 for the same loss under any other program adminis16 tered by the Secretary, the producer shall be required 

17 to elect whether to receive benefits under this title or 

18 under such other program, but not both. A producer 

19 who purchases buy-up coverage under subsection (c) 

20 may also receive assistance for the same loss under 

21 other programs administered by the Secretary, except 

22 that the amount received for the loss under the buy23 up coverage together with the amount received under 

24 such other programs may not exceed the amount of 

25 the producer’s actual loss. 


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1 ‘‘(g) YIELD COVERAGE DETERMINATIONS.— 

2 ‘‘(1) IN GENERAL.—The Corporation shall imple3 ment crop insurance underwriting rules that ensure 

4 that yield coverage, as specified in this subsection, is 

5 provided to eligible producers obtaining catastrophic 

6 risk protection under subsection (b) or buy-up cov7 erage under subsection (c). 

8 ‘‘(2) INDIVIDUAL YIELD BASIS.— 

9 ‘‘(A) ACTUAL PRODUCTION HISTORY.—The 

10 Corporation shall determine yield coverage using 

11 the producer’s actual production history over a 

12 period of not less than the 4 previous consecutive 

13 crop years and not more than 10 consecutive 

14 crop years. Subject to subparagraph (B), the 

15 yield for insurance purposes for the year for 

16 which insurance is sought shall be equal to the 

17 average of the producer’s actual production his18 tory during the period considered. 

19 ‘‘(B) ASSIGNMENT OF YIELD.—Except as 

20 provided in subparagraphs (C) and (D), if a 

21 producer does not submit adequate documenta22 tion of production history to determine crop 

23 yield under subparagraph (A), the Corporation 

24 shall assign to the producer a yield equal to not 

25 less than 65 percent of the transitional yield of 


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1 the producer (adjusted to reflect actual produc2 tion reflected in the records acceptable to the 

3 Corporation for continuous years), as specified 

4 in regulations issued by the Corporation based 

5 on production history requirements. 

6 ‘‘(C) PILOT PROGRAM OF ASSIGNED YIELDS

7 FOR NEW PRODUCERS.— 

8 ‘‘(i) PROGRAM REQUIRED.—For each 

9 of the 1995 and 1996 crop years, the Cor10 poration shall carry out a pilot program to 

11 assign to eligible new producers higher as12 signed yields than would otherwise be as13 signed to such producers under subpara14 graph (B). The Corporation shall include in 

15 the pilot program 30 counties that are de16 termined by the Corporation to be adequate 

17 to provide a comprehensive evaluation of the 

18 feasibility, effectiveness, and demand among 

19 new producers for increased assigned yields. 

20 ‘‘(ii) INCREASED ASSIGNED YIELDS.— 

21 In the case of an eligible new producer par22 ticipating in the pilot program, the Cor23 poration shall assign to the new producer a 

24 yield equal to not less than 110 percent of 


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1 the transitional yield otherwise established 

2 by the Corporation. 

3 ‘‘(iii) ELIGIBLE NEW PRODUCER.—The 

4 Secretary shall establish a definition of new 

5 producer for purposes of determining eligi6 bility to participate in the pilot program. 

7 ‘‘(D) ALTERNATIVE ASSIGNED YIELDS FOR

8 PRODUCERS OF FEED OR FORAGE.— 

9 ‘‘(i) FEED OR FORAGE YIELDS.—For 

10 the first crop year for which an eligible pro11 ducer described in clause (ii) obtains cata12 strophic risk protection under subsection (b) 

13 or buy-up coverage under subsection (c) for 

14 a feed or forage crop, the Corporation shall 

15 assign to the producer a yield equal to not 

16 less than 80 percent of the transitional yield 

17 established by the Corporation (adjusted to 

18 reflect the actual production history of the 

19 producer) if the producer does not provide 

20 satisfactory evidence of the yield under sub21 paragraph (A). For not more than three ad22 ditional years, the Corporation shall pro23 vide the producer with a yield based on the 

24 greater of— 


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1 ‘‘(I) the producer’s actual produc2 tion history for the preceding year (or 

3 years if available); and 

4 ‘‘(II) the assigned yield deter5 mined under this clause. 

6 ‘‘(ii) ELIGIBLE PRODUCERS.—An eligi7 ble producer referred to in clause (i) is a 

8 producer that, as determined by the Sec9 retary— 

10 ‘‘(I) grows the insured feed or for11 age crop primarily for on-farm use in 

12 a livestock, dairy, or poultry operation; 

13 and 

14 ‘‘(II) derives over 50 percent of 

15 the producer’s gross farm income from 

16 the livestock, dairy, or poultry oper17 ation. 

18 ‘‘(iii) TERMINATION OF AUTHORITY.— 

19 The authority provided by this subpara20 graph shall apply only during the 1995 

21 through 1998 crop years. 

22 ‘‘(3) AREA YIELD BASIS.—The Corporation may 

23 offer a crop insurance plan based on an area yield 

24 that allows an insured producer to qualify for an in25 demnity if a loss occurs in an area, as specified by 


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1 the Corporation, in which the farm of the producer is 

2 located. Under an area yield plan, an insured pro3 ducer shall be allowed to select the level of area pro4 duction at which an indemnity will be paid con5 sistent with the terms and conditions established by 

6 the Corporation. 

7 ‘‘(4) COMMODITY-BY-COMMODITY BASIS.—A pro8 ducer may choose between either individual yield or 

9 area yield coverage, where available, on a commodity10 by-commodity basis.’’. 

11 (b) CONFORMING AMENDMENTS.— 

12 (1) REPEAL OF EXISTING CROP INSURANCE

13 YIELD COVERAGE.—Section 508A of the Federal Crop 

14 Insurance Act (7 U.S.C. 1508A) is repealed. 

15 (2) TAX EXEMPTION.—Section 511 of such Act (7 

16 U.S.C. 1511) is amended by inserting ‘‘its contracts 

17 of insurance and premium thereon, whether insured 

18 directly or reinsured by the Corporation,’’ after ‘‘The 

19 Corporation, including’’. 

20 (3) PERSONS UNDER 21 YEARS OF AGE.—Sec21 tion 520 of such Act (7 U.S.C. 1520) is repealed. 


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1 SEC. 7. PREPARATION OF POLICIES, CLAIMS, AND REINSUR2 ANCE. 

3 (a) SUBMISSION OF POLICIES.—Subsection (h) of sec4 tion 508 of the Federal Crop Insurance Act (7 U.S.C. 1508), 

5 as redesignated by section 6(a)(2), is amended— 

6 (1) in paragraph (1), by striking ‘‘subsection 

7 (a)’’ and inserting ‘‘subsection (c)’’; and 

8 (2) by striking paragraphs (2), (3), and (4) and 

9 inserting the following new paragraphs: 

10 ‘‘(2) SUBMISSION OF POLICIES.—A policy or 

11 other material submitted to the Board under this sub12 section may be prepared without regard to the limita13 tions contained in this title, including the require14 ments concerning the levels of coverage and rates and 

15 the requirement that a price level for each commodity 

16 insured must equal the expected market price for the 

17 commodity as established by the Board. In the case of 

18 such a policy, the payment by the Corporation of a 

19 portion of the premium of the policy may not exceed 

20 the amount that would otherwise be authorized under 

21 subsection (e). 

22 ‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— 

23 A policy or other material submitted to the Board 

24 under this subsection shall be reviewed by the Board 

25 and, if the Board finds that the interests of producers 

26 are adequately protected and that any premiums 


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1 charged to such producers are actuarially appro2 priate, shall be approved by the Board for reinsur3 ance and for sale to producers as an additional choice 

4 at actuarially appropriate rates and under appro5 priate terms and conditions. The Corporation may 

6 enter into more than one reinsurance agreement with 

7 the private insurance provider simultaneously to fa8 cilitate the offering of such new policies. 

9 ‘‘(4) GUIDELINES FOR SUBMISSION AND RE10 VIEW.—The Corporation shall issue regulations to es11 tablish guidelines for the submission and Board re12 view of policies or other material submitted to the 

13 Board under this subsection. At a minimum, the 

14 guidelines shall ensure the following: 

15 ‘‘(A) Proposals submitted to the Board 

16 under this subsection shall be considered as con17 fidential commercial or financial information 

18 for purposes of section 552(b)(4) of title 5, 

19 United States Code, until approved by the 

20 Board. Proposals disapproved by the Board shall 

21 remain confidential commercial or financial in22 formation. 

23 ‘‘(B) The Board shall provide an applicant 

24 with the opportunity to present the proposal to 

25 the Board in person if the applicant so desires. 


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1 ‘‘(C) The Board shall provide an applicant 

2 with notification of intent to disapprove a pro3 posal not later than 30 days prior to taking such 

4 action. An applicant that receives such notifica5 tion may modify such application, and such 

6 modification shall be considered an original ap7 plication for purposes of this paragraph. 

8 ‘‘(D) Specific guidelines shall deal with the 

9 timing of submission of proposals under this sub10 section and timely consideration by the Board so 

11 that any approved proposal may be made avail12 able to all persons reinsured by the Corporation 

13 in a manner permitting them to participate, if 

14 they so desire, in offering such a proposal in the 

15 first crop year in which it is approved by the 

16 Board for reinsurance, premium subsidy, or 

17 other support offered by this title. 

18 ‘‘(5) REQUIRED PUBLICATION.—Any policies, 

19 provisions of policies, and rates approved under this 

20 subsection shall be published as a notice in the Fed21 eral Register and made available to all persons con22 tracting with or reinsured by the Corporation under 

23 the same terms and conditions as between the Cor24 poration and the person originally submitting the 

25 policy or other material.’’. 


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1 (b) CLAIMS FOR LOSSES AND REINSURANCE.—Section 

2 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 

3 further amended— 

4 (1) by redesignating subsections (j) and (k) as 

5 subsections (l) and (m), respectively; and 

6 (2) inserting after subsection (i), as redesignated 

7 by section 6(a)(2), the following new subsections: 

8 ‘‘(j) CLAIMS FOR LOSSES.— 

9 ‘‘(1) IN GENERAL.—Under rules prescribed by 

10 the Corporation, the Corporation may provide for ad11 justment and payment of claims for losses. The rules 

12 prescribed by the Corporation shall establish stand13 ards to ensure that all claims for losses are adjusted, 

14 to the extent practicable, in a uniform and timely 

15 manner. 

16 ‘‘(2) DENIAL OF CLAIMS.— 

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), if a claim for indemnity is denied by 

19 the Corporation or by the private insurance pro20 vider, an action on the claim may be brought 

21 against the Corporation or Secretary or the in22 surance provider only in the United States dis23 trict court for the district in which the insured 

24 farm is located. 


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1 ‘‘(B) STATUTE OF LIMITATIONS.—A suit on 

2 the claim may be brought not later than 1 year 

3 after the date on which written notice of denial 

4 of the claim is provided to the claimant. 

5 ‘‘(3) INDEMNIFICATION.—The Corporation shall 

6 provide private insurance providers with indem7 nification, including costs and reasonable attorney 

8 fees incurred by the private insurance provider, due 

9 to errors or omissions on the part of the Corporation. 

10 ‘‘(k) REINSURANCE.—Notwithstanding any other pro11 vision of this title, the Corporation shall, to the maximum 

12 extent practicable, provide reinsurance to insurers approved 

13 by the Corporation that insure producers of any agricul14 tural commodity under a plan or plans acceptable to the 

15 Corporation. Such reinsurance shall be provided upon such 

16 terms and conditions as the Board may determine to be 

17 consistent with subsections (b) and (c) and sound reinsur18 ance principles. The Corporation’s reinsurance agreements 

19 with the reinsured companies shall require the reinsured 

20 companies to bear a sufficient share of any potential loss 

21 under such agreement so as to ensure that the reinsured 

22 company will sell and service policies of insurance in a 

23 sound and prudent manner, taking into consideration the 

24 financial condition of the reinsured companies and the 

25 availability of private reinsurance.’’. 


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1 (c) CROSS REFERENCES.— 

2 (1) CLAIMS FOR LOSSES.—Section 506(d) of the 

3 Federal Crop Insurance Act (7 U.S.C. 1506(d)) is 

4 amended in the first sentence by striking ‘‘section 

5 508(f)’’ and inserting ‘‘section 508(j)’’. 

6 (2) SUBMISSION OF MATERIALS TO BOARD.—Sec7 tion 507(c) of such Act (7 U.S.C. 1507(c)) is amended 

8 in the last sentence by striking ‘‘section 508(b)’’ and 

9 inserting ‘‘section 508(h)’’. 

10 (3) DEFINITION OF AGRICULTURAL COM11 MODITY.—Section 518 of such Act (7 U.S.C. 1518) is 

12 amended by striking ‘‘or (k)’’ and inserting ‘‘or (m)’’. 

13 SEC. 8. AUTHORIZATION OF APPROPRIATIONS AND CROP 

14 INSURANCE FUND. 

15 Section 516 of the Federal Crop Insurance Act (7 

16 U.S.C. 1516) is amended to read as follows: 

17 ‘‘SEC. 516. FUNDING. 

18 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS FOR COR19 PORATION SALARIES AND AGENT COMMISSIONS.—There are 

20 hereby authorized to be appropriated such sums as are nec21 essary to cover the salaries and administrative expenses of 

22 the Corporation and the administrative and operating ex23 penses of the Corporation for the sales commissions of 

24 agents. 

25 ‘‘(b) CROP INSURANCE FUND.— 


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1 ‘‘(1) ESTABLISHMENT.—There is hereby estab2 lished an insurance fund for deposit of premiums col3 lected under section 508(d), income from reinsurance 

4 operations, and appropriations made available under 

5 paragraph (2). 

6 ‘‘(2) APPROPRIATION.—There are hereby appro7 priated, without fiscal year limitation, such sums as 

8 may be necessary to carry out the purposes of the in9 surance fund. 

10 ‘‘(c) PURPOSES OF INSURANCE FUND.—The Corpora11 tion may use amounts in the insurance fund to pay the 

12 following: 

13 ‘‘(1) Beginning with the 1996 crop year, the ad14 ministrative and operating expenses of approved in15 surance providers, other than expenses for which 

16 funds are authorized to be appropriated under sub17 section (a). 

18 ‘‘(2) All other expenses of the Corporation (other 

19 than expenses for which funds are authorized to be 

20 appropriated under subsection (a)), including all pre21 mium subsidies and indemnities. 

22 ‘‘(3) For the 1995 crop year, all administrative 

23 and expense reimbursements due under a reinsurance 

24 agreement with an approved private insurance pro25 vider. 


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1 ‘‘(4) Expenses incurred by the Corporation to 

2 carry out research and development. 

3 ‘‘(5) For the 1996 crop year, the administrative 

4 and operating expenses of the Corporation for the 

5 sales commissions of agents, but not to exceed an 

6 amount equal to 10.5 percent of the total amount of 

7 premiums paid by producers for insurance policies 

8 for the 1996 crop year.’’. 

9 SEC. 9. ADVISORY COMMITTEE. 

10 The Federal Crop Insurance Act is amended by insert11 ing after section 514 (7 U.S.C. 1514) the following new sec12 tion: 

13 ‘‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP IN14 SURANCE. 

15 ‘‘(a) ESTABLISHMENT AND TERMINATION.—The Sec16 retary may establish within the Department of Agriculture 

17 an advisory committee to be known as the Advisory Com18 mittee for Federal Crop Insurance. If established, the Advi19 sory Committee shall remain in existence until September 

20 30, 1998. 

21 ‘‘(b) PRIMARY RESPONSIBILITY.—The primary re22 sponsibility of the Advisory Committee shall be to advise 

23 the Secretary on the implementation of this title and on 

24 other issues related to crop insurance, as determined by the 

25 Manager. 


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1 ‘‘(c) MEMBERSHIP.—The Advisory Committee shall be 

2 composed of the Manager of the Corporation, the Secretary 

3 (or a designee of the Secretary), and not less than 12 mem4 bers representing organizations and agencies involved in the 

5 provision of crop insurance under this title. Not less than 

6 3 of the members of the Advisory Committee shall be rep7 resentatives of the specialty crops industry. The organiza8 tions or agencies represented by members on the Advisory 

9 Committee may include insurance companies, insurance 

10 agents, farm producer organizations, experts on agronomic 

11 practices, and banking and lending institutions. 

12 ‘‘(d) ADMINISTRATIVE PROVISIONS.— 

13 ‘‘(1) TERMS.—Members of the Advisory Com14 mittee shall be appointed by the Secretary for a term 

15 of up to 2 years from nominations made by the orga16 nizations and agencies specified in subsection (c). The 

17 terms of the members shall be staggered. 

18 ‘‘(2) CHAIRPERSON.—The Advisory Committee 

19 shall be chaired by the Manager of the Corporation. 

20 ‘‘(3) MEETINGS.—The Advisory Committee shall 

21 meet at least annually. The meetings of the Advisory 

22 Committee shall be publicly announced in advance 

23 and shall be open to the public. Appropriate records 

24 of the activities of the Advisory Committee shall be 

25 kept and made available to the public on request. 


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1 ‘‘(e) REPORTS.—Not later than June 30 of each year, 

2 the Advisory Committee shall submit to the Secretary a re3 port specifying its conclusions and recommendations re4 garding— 

5 ‘‘(1) the progress toward implementation of the 

6 provisions of this title; 

7 ‘‘(2) the actuarial soundness of the Federal crop 

8 insurance program; 

9 ‘‘(3) the rate of producer participation in both 

10 catastrophic risk protection under section 508(b) and 

11 buy-up coverage under section 508(c); and 

12 ‘‘(4) the progress toward improved crop insur13 ance coverage for new and specialty crops.’’. 

14 SEC. 10. NONINSURED CROP DISASTER ASSISTANCE. 

15 (a) IN GENERAL.—Section 519 of the Federal Crop In16 surance Act (7 U.S.C. 1519) is amended to read as follows: 

17 ‘‘SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PRO18 GRAM. 

19 ‘‘(a) ESTABLISHMENT OF PROGRAM.— 

20 ‘‘(1) ESTABLISHMENT.—In the case of an eligible 

21 crop described in paragraph (2), the Corporation 

22 shall establish a noninsured crop disaster assistance 

23 program to provide coverage equivalent to the cata24 strophic risk protection otherwise available under sec25 tion 508(b). 


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1 ‘‘(2) ELIGIBLE CROPS.— 

2 ‘‘(A) IN GENERAL.—For purposes of this 

3 section, the term ‘eligible crop’ means each com4 mercial crop or other agricultural commodity 

5 (except livestock)— 

6 ‘‘(i) for which catastrophic risk protec7 tion under section 508(b) is not available; 

8 and 

9 ‘‘(ii) which is produced for food, fiber, 

10 or as an industrial crop (as defined by the 

11 Corporation). 

12 ‘‘(B) CROPS SPECIFICALLY INCLUDED.—The 

13 term ‘eligible crop’ shall include floricultural, or14 namental nursery, and Christmas tree crops and 

15 turfgrass sod. 

16 ‘‘(3) CAUSE OF LOSS.—To qualify for assistance 

17 under this section, the losses of the noninsured com18 modity shall be due to drought, flood, or other natural 

19 disaster, as determined by the Secretary. 

20 ‘‘(b) APPLICATION FOR NONINSURED CROP DISASTER

21 ASSISTANCE.— 

22 ‘‘(1) TIMELY APPLICATION.—To be eligible for 

23 assistance under this section, producers shall submit 

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1 culture. The application shall be in such form, con2 tain such information, and be submitted at such time 

3 as the Corporation may require. 

4 ‘‘(2) RECORDS AND REPORTS.—To obtain non5 insured crop disaster assistance, a producer shall— 

6 ‘‘(A) provide records acceptable to the Cor7 poration of historical acreage and production of 

8 the eligible crops for which assistance is sought 

9 or accept a yield determined by the Corporation; 

10 and 

11 ‘‘(B) report acreage planted and prevented 

12 from planting by the designated acreage report13 ing date for that crop and location as established 

14 by the Corporation. 

15 ‘‘(3) EXCLUSIONS.—Noninsured crop disaster as16 sistance under this section shall not cover losses due 

17 to— 

18 ‘‘(A) the neglect or malfeasance of the pro19 ducer; 

20 ‘‘(B) the failure of the producer to reseed to 

21 the same crop in those areas and under such cir22 cumstances where it is customary to reseed; or 

23 ‘‘(C) the failure of the producer to follow 

24 good farming practices, as determined by the 

25 Corporation. 


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1 ‘‘(4) REVENUE LIMITATION.—A person who has 

2 qualifying gross revenues in excess of $2,000,000 an3 nually, as determined by the Secretary, shall not be 

4 eligible to receive any noninsured crop disaster assist5 ance payments. For purposes of this section, the term 

6 ‘qualifying gross revenues’ means— 

7 ‘‘(A) if a majority of the person’s gross rev8 enue is received from farming, ranching, and 

9 forestry operations, the gross revenue from the 

10 person’s farming, ranching, and forestry oper11 ations; and 

12 ‘‘(B) if less than a majority of the person’s 

13 gross revenue is received from farming, ranching, 

14 and forestry operations, the person’s gross rev15 enue from all sources. 

16 ‘‘(c) LOSS REQUIREMENTS.— 

17 ‘‘(1) REQUIRED AREA LOSS.—A producer of an 

18 eligible crop shall not receive noninsured crop disaster 

19 assistance unless the average yield for that crop, or an 

20 equivalent measure in the event yield data are not 

21 available, in an area falls below 65 percent of the ex22 pected area yield, as established by the Corporation. 

23 ‘‘(2) PREVENTED PLANTING.—Subject to para24 graph (1), the Corporation shall make a prevented 

25 planting noninsured crop disaster assistance payment 


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1 if the producer is prevented from planting more than 

2 35 percent of the acreage intended for the eligible crop 

3 because of drought, flood, or other natural disaster, as 

4 determined by the Secretary. 

5 ‘‘(3) REDUCED YIELDS.—Subject to paragraph 

6 (1), the Corporation shall make a reduced yield non7 insured crop disaster assistance payment if the total 

8 quantity of the eligible crop that a producer is able 

9 to harvest on any farm is, because of drought, flood, 

10 or other natural disaster as determined by the Sec11 retary, less than 50 percent of the expected individual 

12 yield for the crop, as determined by the Corporation, 

13 factored for the producer’s interest for the crop. 

14 ‘‘(d) PAYMENTS.— 

15 ‘‘(1) REDUCED YIELDS.—If the producer is eligi16 ble for reduced yield noninsured crop disaster assist17 ance, payments shall be made for farm losses in excess 

18 of 50 percent of the established farm yield for the eli19 gible crop indemnified at 60 percent of the average 

20 market price for that crop, or a comparable coverage 

21 as determined by the Corporation. Any eligible crop 

22 that is produced with significant and variable, post23 planting expenses, the payment shall be reduced to re24 flect reduced production costs and harvesting costs if 

25 the crop is not harvested. 


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1 ‘‘(2) PREVENTED PLANTING.—If the producer is 

2 eligible for a prevented planting payment under this 

3 section, the amount paid to the producer on a claim 

4 under this section may reflect a reduction that is pro5 portional to the out-of-pocket expenses that are not in6 curred by the producer as a result of not planting, 

7 growing, or harvesting the crop for which the claim 

8 is made, as determined by the Corporation. 

9 ‘‘(e) YIELD DETERMINATIONS.— 

10 ‘‘(1) ESTABLISHMENT.—The Corporation shall 

11 establish farm yields for purposes of providing non12 insured crop disaster assistance under this section. 

13 ‘‘(2) ACTUAL PRODUCTION HISTORY.—The Cor14 poration shall determine yield coverage using the pro15 ducer’s actual production history over a period of not 

16 less than the 4 previous consecutive crop years and 

17 not more than 10 consecutive crop years. Subject to 

18 paragraph (3), the yield for the year in which non19 insured crop disaster assistance is sought shall be 

20 equal to the average of the producer’s actual produc21 tion history during the period considered. 

22 ‘‘(3) ASSIGNMENT OF YIELD.—If a producer does 

23 not submit adequate documentation of production his24 tory to determine a crop yield under paragraph (2), 

25 the Corporation shall assign to the producer a yield 


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1 equal to not less than 65 percent of the transitional 

2 yield of the producer (adjusted to reflect actual pro3 duction reflected in the records acceptable to the Cor4 poration for continuous years), as specified in regula5 tions issued by the Corporation based on production 

6 history requirements. 

7 ‘‘(f) PAYMENT OF LOSSES.—Payments for noninsured 

8 crop disaster assistance losses under this section shall be 

9 made from the insurance fund established under section 

10 516. Such losses shall not be included in calculating the 

11 premiums charged to producers for insurance under section 

12 508. 

13 ‘‘(g) PAYMENT LIMITATIONS.—The total amount of 

14 payments that a person shall be entitled to receive annually 

15 under this section may not exceed $100,000. For purposes 

16 of applying this limitation, the Secretary shall issue regula17 tions defining the term ‘person’ that shall conform, to the 

18 extent practicable, to the regulations defining ‘person’ 

19 issued under section 1001 of the Food Security Act of 1985 

20 (7 U.S.C. 1308).’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) EXISTING EMERGENCY CROP LOSS ASSIST23 ANCE PROGRAM.—Effective July 1, 1995, chapter 3 of 

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1 servation, and Trade Act of 1990 (7 U.S.C. 1421 

2 note) is amended by striking subchapter A. 

3 (2) EMERGENCY APPROPRIATIONS.—Effective 

4 July 1, 1995, the Balanced Budget and Emergency 

5 Deficit Control Act of 1985 is amended— 

6 (A) in section 251(b)(2)(D)(i) (2 U.S.C. 

7 901(b)(2)(D)(i)), by adding at the end the fol8 lowing new sentence: ‘‘The preceding sentence 

9 shall not apply to appropriations to cover agri10 cultural crop disaster assistance.’’; and 

11 (B) in section 252(e) (2 U.S.C. 902(e)), by 

12 adding at the end the following new sentence: 

13 ‘‘The preceding sentence shall not apply to direct 

14 spending provisions to cover agricultural crop 

15 disaster assistance.’’. 

16 SEC. 11. CROP INSURANCE REQUIREMENTS UNDER PRICE 

17 SUPPORT PROGRAMS. 

18 (a) RICE.—Section 101B(c) of the Agricultural Act of 

19 1949 (7 U.S.C. 1441–2(c)) is amended— 

20 (1) by striking paragraph (1)(F); and 

21 (2) by striking paragraph (2) and inserting in 

22 lieu thereof the following: 

23 ‘‘(2) CROP INSURANCE REQUIREMENT.—As a 

24 condition of receiving any benefit (including pay25 ments) under this section, a producer must obtain at 


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1 least catastrophic risk protection insurance coverage 

2 under section 508(b) of the Federal Crop Insurance 

3 Act for the crop and crop year in which the benefit 

4 is sought, if such coverage is offered by the Federal 

5 Crop Insurance Corporation.’’. 

6 (b) EXTRA LONG STAPLE COTTON.—Section 103(h) of 

7 the Agricultural Act of 1949 (7 U.S.C. 1444(h)) is amend8 ed— 

9 (1) by redesignating paragraph (16) as para10 graph (17) and moving the margin 2 ems to the left; 

11 and 

12 (2) by inserting after paragraph (15) the fol13 lowing new paragraph: 

14 ‘‘(16) CROP INSURANCE REQUIREMENT.—As a condi15 tion of receiving any benefit (including payments) under 

16 this section, a producer must obtain at least catastrophic 

17 risk protection insurance coverage under section 508(b) of 

18 the Federal Crop Insurance Act for the crop and crop year 

19 in which the benefit is sought, if such coverage is offered 

20 by the Federal Crop Insurance Corporation.’’. 

21 (c) UPLAND COTTON.—Section 103B(c) of the Agricul22 tural Act of 1949 (7 U.S.C. 1444–2(c)) is amended— 

23 (1) by striking paragraph (1)(F); and 

24 (2) by striking paragraph (2) and inserting in 

25 lieu thereof the following: 


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1 ‘‘(2) CROP INSURANCE REQUIREMENT.—As a 

2 condition of receiving any benefit (including pay3 ments) under this section, a producer must obtain at 

4 least catastrophic risk protection insurance coverage 

5 under section 508(b) of the Federal Crop Insurance 

6 Act for the crop and crop year in which the benefit 

7 is sought, if such coverage is offered by the Federal 

8 Crop Insurance Corporation.’’. 

9 (d) FEED GRAINS.—Section 105B(c) of the Agricul10 tural Act of 1949 (7 U.S.C. 1444f(c)) is amended— 

11 (1) by striking paragraph (1)(G); and 

12 (2) by striking paragraph (2) and inserting in 

13 lieu thereof the following: 

14 ‘‘(2) CROP INSURANCE REQUIREMENT.—As a 

15 condition of receiving any benefit (including pay16 ments) under this section, a producer must obtain at 

17 least catastrophic risk protection insurance coverage 

18 under section 508(b) of the Federal Crop Insurance 

19 Act for the crop and crop year in which the benefit 

20 is sought, if such coverage is offered by the Federal 

21 Crop Insurance Corporation.’’. 

22 (e) TOBACCO.—Section 106 of the Agricultural Act of 

23 1949 (7 U.S.C. 1445) is amended by striking subsection (e) 

24 and inserting in lieu thereof the following: 


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1 ‘‘(e) CROP INSURANCE REQUIREMENT.—As a condi2 tion of receiving any benefit (including payments) under 

3 this section, a producer must obtain at least catastrophic 

4 risk protection insurance coverage under section 508(b) of 

5 the Federal Crop Insurance Act for the crop and crop year 

6 in which the benefit is sought, if such coverage is offered 

7 by the Federal Crop Insurance Corporation.’’. 

8 (f) WHEAT.—Section 107B(c) of the Agricultural Act 

9 of 1949 (7 U.S.C. 1444b–3a(c)) is amended— 

10 (1) by striking paragraph (1)(G); and 

11 (2) by striking paragraph (2) and inserting in 

12 lieu thereof the following: 

13 ‘‘(2) CROP INSURANCE REQUIREMENT.—As a 

14 condition of receiving any benefit (including pay15 ments) under this section, a producer must obtain at 

16 least catastrophic risk protection insurance coverage 

17 under section 508(b) of the Federal Crop Insurance 

18 Act for the crop and crop year in which the benefit 

19 is sought, if such coverage is offered by the Federal 

20 Crop Insurance Corporation.’’. 

21 (g) PEANUTS.—Section 108B of the Agricultural Act 

22 of 1949 (7 U.S.C. 1445c–3) is amended— 

23 (1) by redesignating subsection (h) as subsection 

24 (i); and 


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1 (2) by inserting after subsection (g) the following 

2 new subsection: 

3 ‘‘(h) CROP INSURANCE REQUIREMENT.—As a condi4 tion of receiving any benefit (including payments) under 

5 this section, a producer must obtain at least catastrophic 

6 risk protection insurance coverage under section 508(b) of 

7 the Federal Crop Insurance Act for the crop and crop year 

8 in which the benefit is sought, if such coverage is offered 

9 by the Federal Crop Insurance Corporation.’’. 

10 (h) OILSEEDS.—Section 205 of the Agricultural Act 

11 of 1949 (7 U.S.C. 1446f) is amended— 

12 (1) by redesignating subsection (n) as subsection 

13 (o); and 

14 (2) by inserting after subsection (m) the fol15 lowing new subsection: 

16 ‘‘(n) CROP INSURANCE REQUIREMENT.—As a condi17 tion of receiving any benefit (including payments) under 

18 this section, a producer must obtain at least catastrophic 

19 risk protection insurance coverage under section 508(b) of 

20 the Federal Crop Insurance Act for the crop and crop year 

21 in which the benefit is sought, if such coverage is offered 

22 by the Federal Crop Insurance Corporation.’’. 

23 (i) SUGAR.—Section 206 of the Agricultural Act of 

24 1949 (7 U.S.C. 1446g) is amended— 


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1 (1) by redesignating subsection (j) as subsection 

2 (k); and 

3 (2) by inserting after subsection (i) the following 

4 new subsection: 

5 ‘‘(j) CROP INSURANCE REQUIREMENT.—As a condi6 tion of receiving any benefit (including payments) under 

7 this section, a producer must obtain at least catastrophic 

8 risk protection insurance coverage under section 508(b) of 

9 the Federal Crop Insurance Act for the crop and crop year 

10 in which the benefit is sought, if such coverage is offered 

11 by the Federal Crop Insurance Corporation.’’. 

12 (j) HONEY.—Section 207 of the Agricultural Act of 

13 1949 (7 U.S.C. 1446h) is amended— 

14 (1) by redesignating subsection (j) as subsection 

15 (k); and 

16 (2) by inserting after subsection (i) the following 

17 new subsection: 

18 ‘‘(j) CROP INSURANCE REQUIREMENT.—As a condi19 tion of receiving any benefit (including payments) under 

20 this section, a producer must obtain at least catastrophic 

21 risk protection insurance coverage under section 508(b) of 

22 the Federal Crop Insurance Act for the crop and crop year 

23 in which the benefit is sought, if such coverage is offered 

24 by the Federal Crop Insurance Corporation.’’. 


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1 (k) DISASTER PAYMENTS.—Section 208 of the Agricul2 tural Act of 1949 (7 U.S.C. 1446i) is repealed. 

3 SEC. 12. ELIMINATION OF GENDER REFERENCES. 

4 (a) MANAGEMENT OF CORPORATION.—Section 505 of 

5 the Federal Crop Insurance Act (7 U.S.C. 1505) is amend6 ed— 

7 (1) in subsection (a), by striking the third sen8 tence and inserting ‘‘The Board shall be appointed 

9 by, and hold office at the pleasure of, the Secretary. 

10 The Secretary shall not be a member of the Board.’’; 

11 and 

12 (2) in subsection (d)— 

13 (A) by striking ‘‘upon him’’; and 

14 (B) by striking ‘‘He shall be appointed by,’’ 

15 and inserting ‘‘The manager shall be appointed 

16 by,’’. 

17 (b) PERSONNEL.—Section 507 of such Act (7 U.S.C. 

18 1507) is amended— 

19 (1) in subsection (a), by striking ‘‘as he may de20 termine: Provided, That’’ and inserting ‘‘as the Sec21 retary may determine appropriate. However,’’; and 

22 (2) in subsection (d), by striking ‘‘as he may re23 quest’’ and inserting ‘‘that the Secretary requests’’. 


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1 (c) INDEMNITIES EXEMPT FROM LEVY.—Section 509 

2 of such Act (7 U.S.C. 1509) is amended by striking ‘‘or 

3 his estate’’ and inserting ‘‘or the estate of the insured’’. 

4 SEC. 13. PREVENTED PLANTING. 

5 (a) IN GENERAL.—Effective for the 1994 crop year, 

6 a producer described in subsection (b) shall receive com7 pensation under the prevented planting coverage policy pro8 vision described in subsection (b)(1) by— 

9 (1) obtaining from the Secretary of Agriculture 

10 the applicable amount that is payable under the con11 servation use program described in subsection (b)(4); 

12 and 

13 (2) obtaining from the Federal Crop Insurance 

14 Corporation the amount that is equal to the difference 

15 between— 

16 (A) the amount that is payable under the 

17 conservation use program; and 

18 (B) the amount that is payable under the 

19 prevented planting coverage policy. 

20 (b) ELIGIBLE PRODUCERS.—Subsection (a) shall 

21 apply to a producer who— 

22 (1) purchased a prevented planting policy for the 

23 1994 crop year from the Federal Crop Insurance Cor24 poration prior to the spring sales closing date for the 

25 1994 crop year; 


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1 (2) is unable to plant a crop due to major, wide2 spread flooding in the Midwest, or excessive ground 

3 moisture, that occurred prior to the spring sales clos4 ing date for the 1994 crop year; 

5 (3) had a reasonable expectation of planting a 

6 crop on the prevented planting acreage for the 1994 

7 crop year; and 

8 (4) participates in a conservation use program 

9 established for the 1994 crop of wheat, feed grains, 

10 upland cotton, or rice established under section 

11 107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), or 

12 101B(c)(1)(D), respectively, of the Agricultural Act of 

13 1949 (7 U.S.C. 1445b–3a(c)(1)(E), 1444f(c)(1)(E), 

14 1444–2(c)(1)(D), or 1441–2(c)(1)(D)). 

15 (c) OILSEED PREVENTED PLANTING PAYMENTS.— 

16 (1) IN GENERAL.—Effective for the 1994 crop 

17 year, a producer of a crop of oilseeds (as defined in 

18 section 205(a) of the Agricultural Act of 1949 (7 

19 U.S.C. 1446f(a))) shall receive a prevented planting 

20 payment for the crop if the requirements of para21 graphs (1), (2), and (3) of subsection (b) are satisfied. 

22 (2) SOURCE OF PAYMENT.—The total amount of 

23 payments required under this subsection shall be 

24 made by the Federal Crop Insurance Corporation. 


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1 (d) PAYMENT.—A payment under this section may not 

2 be made before October 1, 1994. 

3 SEC. 14. EFFECTIVE DATE. 

4 Except as provided in section 10(b) and section 13, 

5 this Act and the amendments made by this Act shall take 

6 effect on the date of the enactment of this Act and shall 

7 apply to the provision of crop insurance under the Federal 

8 Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with 

9 the 1995 crop year. With respect to the 1994 crop year, the 

10 Federal Crop Insurance Act (as in effect on the day before 

11 the date of the enactment of this Act) shall continue to 

12 apply. 

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