FSA and RMA will work together to insure information database is done correctly and they are required to reconcile the data to make sure producers and agents are reporting the same information to both agencies. However the bill also allows producers to select an alternative CAT coverage based on area yields and losses that provides a higher combination of yield and price protection than the standard CAT coverage. This provision will be implemented in time for the 2001 crop year. It also requires the agency to contract out many of its rate setting functions. The bill establishes new procedures for insuring multiple crops on the same land, with provisions for traditional double-cropping areas.
Producers also have more flexibility with regard to prevented planting coverage.
If producer collects an indemnity on the second crop, producer will receive a zero for APH for that year. The bill changes the area loss requirements of the NAP program and replaces it with an individual loss trigger allowing producers of crops for which there is not an insurance policy to have risk protection similar to CAT coverage, with an equal fee. The bill cracks down on fraud, waste and abuse to build a stronger crop insurance program and lower producer costs. The FSA will also assist the FCIC with investigating claims of waste, fraud or abuse and FSA State committees will review insurance policies for program vulnerabilities to reduce waste and abuse. The legislation also directs the FCIC to establish methods to identify producers, agents and loss adjusters who may be abusing the program.