In the Senate of the United States,
March 23, 2000.
Resolved, That the bill from the House of Representa-
tives (H.R. 2559) entitled ‘‘An Act to amend the Federal
Crop Insurance Act to strengthen the safety net for agricul-
tural producers by providing greater access to more afford-
able risk management tools and improved protection from
production and income loss, to improve the efficiency and in-
tegrity of the Federal crop insurance program, and for other
purposes.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Risk Management for the 21st Century Act’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—CROP INSURANCE COVERAGE
Sec. 101. Quality adjustment.
Sec. 102. Prevented planting.
Sec. 103. Payment of portion of premium by Corporation.
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‘‘(A) IN GENERAL.—The Corporation shall
offer coverage that permits a reduction in the
quantity of production of an agricultural com-
modity produced during a crop year, or any
similar adjustment, that results from the agricul-
tural commodity not meeting the quality stand-
ards established in the policy.
‘‘(B) ELECTION
NOT
TO
RECEIVE
COV-
ERAGE.—
‘‘(i) IN
GENERAL.—A producer may
elect not to receive quality adjustment cov-
erage.
‘‘(ii) PREMIUM
REDUCTION.—In the
case of an election described in clause (i),
the Corporation shall provide a reduction in
the premium payable by the producer for a
plan of insurance in an amount equal to
the premium for the quality adjustment cov-
erage, as determined by the Corporation.
‘‘(C) REVIEW
OF
CRITERIA
AND
PROCE-
DURES.—The Corporation shall—
‘‘(i) contract with a qualified person to
analyze the quality loss adjustment proce-
dures of the Corporation; and
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‘‘(ii) based on the analysis, make ad-
justments in the quality loss adjustment
procedures of the Corporation necessary to
more accurately reflect local quality dis-
counts that are applied to agricultural com-
modities insured under this title, taking
into consideration the actuarial soundness
of the adjustment and the prevention of
fraud, waste, and abuse.’’.
SEC. 102. PREVENTED PLANTING.
(a) IN GENERAL.—Section 508(a) of the Federal Crop
Insurance Act (7 U.S.C. 1508(a)) (as amended by section
101) is amended by inserting after paragraph (6) the fol-
lowing:
‘‘(7) PREVENTED PLANTING.—
‘‘(A) ELECTION
NOT
TO
RECEIVE
COV-
ERAGE.—
‘‘(i) IN
GENERAL.—A producer may
elect not to receive coverage for prevented
planting of an agricultural commodity.
‘‘(ii) PREMIUM
REDUCTION.—In the
case of an election described in clause (i),
the Corporation shall provide a reduction in
the premium payable by the producer for a
plan of insurance in an amount equal to
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the premium for the prevented planting cov-
erage, as determined by the Corporation.
‘‘(B) EQUAL COVERAGE.—For each agricul-
tural commodity for which prevented planting
coverage is available, the Corporation shall offer
an equal percentage level of prevented planting
coverage.
‘‘(C) AREA CONDITIONS REQUIRED FOR PAY-
MENT.—The Corporation shall limit prevented
planting payments to producers in the area in
which the farm is located that are generally af-
fected by the conditions that prevent an agricul-
tural commodity from being planted.
‘‘(D) SUBSTITUTE COMMODITY.—
‘‘(i) AUTHORITY TO PLANT.—Subject to
clause (v), a producer that has prevented
planting coverage and is eligible to receive
an indemnity under the coverage may plant
an agricultural commodity, other than the
commodity covered by the prevented plant-
ing coverage, on the acreage originally pre-
vented from being planted.
‘‘(ii) 
NONAVAILABILITY
OF
INSUR-
ANCE.—A 
substitute 
agricultural 
com-
modity planted under clause (i) for harvest
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in the same crop year shall not be eligible
for coverage under a policy or plan of in-
surance under this title or for noninsured
crop disaster assistance under section 196 of
the Agricultural Market Transition Act (7
U.S.C. 7333).
‘‘(iii) RELATIONSHIP
TO
OTHER
RE-
QUIREMENTS.—The producer of a substitute
agricultural commodity under clause (ii)
shall remain eligible for the benefits de-
scribed in subsection (b)(7).
‘‘(iv) EFFECT ON ACTUAL PRODUCTION
HISTORY.—If a producer plants a substitute
agricultural commodity under clause (i) for
a crop year, the Corporation shall assign
the producer a yield, for that crop year for
the commodity that was prevented from
being planted, equal to 60 percent of the
producer’s actual production history for
that commodity for purposes of determining
the producer’s actual production history for
subsequent crop years.
‘‘(v) EFFECT ON PREVENTED PLANTING
PAYMENT.—If a producer plants a sub-
stitute agricultural commodity under clause
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(i) before the latest planting date established
by the Corporation for the agricultural com-
modity prevented from being planted, the
Corporation shall not make a prevented
planting payment with regard to the com-
modity prevented from being planted.
‘‘(E) RELATIONSHIP TO OTHER LAW.—This
paragraph shall supersede subsection (h)(7) to
the extent that this paragraph is inconsistent
with subsection (h)(7).
‘‘(F) CROP YEARS.—This paragraph shall
apply to each of the 2001 through 2004 crop
years.’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall be reflected in the rates for applicable plans
of insurance not later than the 2001 reinsurance year.
SEC. 103. PAYMENT OF PORTION OF PREMIUM BY CORPORA-
TION.
(a) EXPECTED MARKET PRICE.—Section 508(c) of the
Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended
by striking paragraph (5) and inserting the following:
‘‘(5) EXPECTED MARKET PRICE.—
‘‘(A) IN GENERAL.—For the purposes of this
title, the Corporation shall establish or approve
the price level (referred to in this title as the ‘ex-
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pected market price’) of each agricultural com-
modity for which insurance is offered.
‘‘(B) AMOUNT.—The expected market price
of an agricultural commodity—
‘‘(i) except as otherwise provided in
this subparagraph, shall be not less than the
projected market price of the agricultural
commodity, as determined by the Corpora-
tion;
‘‘(ii) may be based on the actual mar-
ket price of the agricultural commodity at
the time of harvest, as determined by the
Corporation;
‘‘(iii) in the case of revenue and other
similar plans of insurance, shall be the ac-
tual market price of the agricultural com-
modity, as determined by the Corporation;
or
‘‘(iv) in the case of cost of production
or similar plans of insurance, shall be the
projected cost of producing the agricultural
commodity, as determined by the Corpora-
tion.’’.
(b) PREMIUM AMOUNTS.—Section 508(d)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is
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amended by striking subparagraph (C) and inserting the
following:
‘‘(C) In the case of additional coverage at
greater than or equal to 65 percent of the re-
corded or appraised average yield indemnified at
100 percent of the expected market price, or a
comparable coverage for a plan of insurance that
is not based on yield, but less than 75 percent
of the recorded or appraised average yield in-
demnified at 100 percent of the expected market
price, or a comparable coverage for a plan of in-
surance that is not based on yield, the amount
of the premium shall—
‘‘(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
‘‘(ii) include an amount for operating
and administrative expenses, as determined
by the Corporation, on an industry-wide
basis as a percentage of the amount of the
premium used to define loss ratio.
‘‘(D) In the case of additional coverage
equal to 75, 80, or 85 percent of the recorded or
appraised average yield indemnified at 100 per-
cent of the expected market price, or a com-
parable coverage for a plan of insurance that is
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not based on yield, the amount of the premium
shall—
‘‘(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
‘‘(ii) include an amount for operating
and administrative expenses, as determined
by the Corporation, on an industry-wide
basis as a percentage of the amount of the
premium used to define loss ratio.’’.
(c) PAYMENT OF PORTION OF PREMIUM BY CORPORA-
TION.—Section 508(e) of the Federal Crop Insurance Act
(7 U.S.C. 1508(e)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) IN GENERAL.—
‘‘(A) MANDATORY PAYMENTS.—For the pur-
pose of encouraging the broadest possible partici-
pation of producers in the crop insurance plans
of insurance described in subsections (b) and (c),
the Corporation shall pay a part of the premium
in the amounts determined under this subsection.
‘‘(B) DISCRETIONARY PAYMENTS.—For the
purpose of encouraging the broadest possible par-
ticipation of producers, in the case of a plan of
insurance approved by the Corporation under
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subsection (h), the Corporation may pay a part
of the premium as determined under this sub-
section.’’; and
(2) in paragraph (2), by striking subparagraphs
(B) and (C) and inserting the following:
‘‘(B) In the case of additional coverage less
than or equal to 50 percent of the recorded or
appraised average yield indemnified at 100 per-
cent of the expected market price, or a com-
parable coverage for a plan of insurance that is
not based on yield, the amount shall be equal to
the sum of—
‘‘(i) 60 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(B)(ii).
‘‘(C) In the case of additional coverage at
55 percent or 60 percent of the recorded or ap-
praised average yield indemnified at 100 percent
of the expected market price, or a comparable
coverage for a plan of insurance that is not
based on yield, the amount shall be equal to the
sum of—
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‘‘(i) 45 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(B)(ii).
‘‘(D) In the case of additional coverage at
65 percent or 70 percent of the recorded or ap-
praised average yield indemnified at 100 percent
of the expected market price, or a comparable
coverage for a plan of insurance that is not
based on yield, the amount shall be equal to the
sum of—
‘‘(i) 50 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(C)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(C)(ii).
‘‘(E) In the case of additional coverage
equal to 75 percent of the recorded or appraised
average yield indemnified at 100 percent of the
expected market price, or a comparable coverage
for a plan of insurance that is not based on
yield, the amount shall be equal to the sum of—
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‘‘(i) 55 percent of the amount of the
premium established for coverage at 75 per-
cent of the recorded or appraised average
yield indemnified at 100 percent of the ex-
pected 
market 
price 
under 
subsection
(d)(2)(D)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(D)(ii).
‘‘(F) In the case of additional coverage
equal to 80 percent of the recorded or appraised
average yield indemnified at 100 percent of the
expected market price, or a comparable coverage
for a plan of insurance that is not based on
yield, the amount shall be equal to the sum of—
‘‘(i) 38 percent of the amount of the
premium established for coverage at 80 per-
cent of the recorded or appraised average
yield indemnified at 100 percent of the ex-
pected 
market 
price 
under 
subsection
(d)(2)(D)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(D)(ii).
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‘‘(G) In the case of additional coverage
equal to 85 percent of the recorded or appraised
average yield indemnified at 100 percent of the
expected market price, or a comparable coverage
for a plan of insurance that is not based on
yield, the amount shall be equal to the sum of—
‘‘(i) 28 percent of the amount of the
premium established for coverage at 85 per-
cent of the recorded or appraised average
yield indemnified at 100 percent of the ex-
pected 
market 
price 
under 
subsection
(d)(2)(D)(i); and
‘‘(ii) the amount of operating and ad-
ministrative expenses determined under sub-
section (d)(2)(D)(ii).
‘‘(H) Subparagraphs (A) through (G) shall
apply to each of fiscal years 2001 through
2004.’’.
(d) REVENUE COVERAGE
FOR POTATOES.—Section
508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) is amended by striking paragraph (3) and insert-
ing the following:
‘‘(3) EXCLUSIONS.—
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‘‘(A) IN
GENERAL.—Insurance provided
under this subsection shall not cover losses due
to—
‘‘(i) the neglect or malfeasance of the
producer;
‘‘(ii) the failure of the producer to re-
seed to the same crop in such areas and
under such circumstances as it is customary
to reseed; or
‘‘(iii) the failure of the producer to fol-
low good farming practices (as determined
by the Secretary).
‘‘(B) 
REVENUE
COVERAGE
FOR
POTA-
TOES.—No plan of insurance provided under
this title (including a plan of insurance ap-
proved by the Board under subsection (h)) shall
cover losses due to a reduction in revenue for po-
tatoes except as covered under a whole farm plan
of insurance, as determined by the Corpora-
tion.’’.
(e) CONFORMING AMENDMENTS.—Section 508 of the
Federal Crop Insurance Act (7 U.S.C. 1508) is amended—
(1) in subsection (e), by striking paragraph (4);
and
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(2) in subsection (g)(2)(D), by striking ‘‘(as pro-
vided in subsection (e)(4))’’.
SEC. 104. ASSIGNED YIELDS.
Section 508(g)(2)(B) of the Federal Crop Insurance
Act (7 U.S.C. 1508(g)(2)(B)) is amended—
(1) by striking ‘‘assigned a yield’’ and inserting
‘‘assigned—
‘‘(i) a yield’’;
(2) by striking the period at the end and insert-
ing ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(ii) a yield determined by the Cor-
poration, in the case of—
‘‘(I) a producer that has not had
a share of the production of the insured
crop for more than 2 crop years, as de-
termined by the Secretary;
‘‘(II) a producer that produces an
agricultural commodity on land that
has not been farmed by the producer;
and
‘‘(III) a producer that rotates a
crop produced on a farm to a crop that
has not been produced on the farm.’’.
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SEC. 105. MULTIYEAR DISASTER ACTUAL PRODUCTION HIS-
TORY ADJUSTMENT.
Section 508(g) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)) is amended by adding at the end the fol-
lowing:
‘‘(4) TRANSITIONAL
ADJUSTMENT
FOR
DISAS-
TERS.—
‘‘(A) DEFINITION
OF
A
PRODUCER
THAT
HAS
SUFFERED
A
MULTIYEAR
DISASTER.—In
this paragraph, the term ‘a producer that has
suffered a multiyear disaster’ means a producer
(or a successor entity through which the actual
production history of the producer can be traced)
that has suffered a natural disaster during at
least 3 of the immediately preceding 5 crop years
that resulted in a cumulative reduction of at
least 25 percent in the actual production history
of the crop of an agricultural commodity.
‘‘(B) ELIMINATION OF CERTAIN YEARS OF
PRODUCTION
HISTORY.—Notwithstanding para-
graph (2), effective beginning with the 2001 crop
year, for the purpose of calculating the actual
production history for a crop of an agricultural
commodity, a producer that has suffered a
multiyear disaster with respect to the crop may
exclude 1 year of production history for each 5
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years included in the actual production history
calculation of the crop for which the producer
purchased crop insurance.
‘‘(C) CORPORATION’S SHARE OF CHANGED
COSTS.—In the case of an exclusion under sub-
paragraph (B), in addition to any other author-
ity to pay any portion of premium, the Corpora-
tion shall pay—
‘‘(i) the portion of the premium that
represents the increase in premium associ-
ated with the exclusion;
‘‘(ii) all additional indemnities associ-
ated with the exclusion; and
‘‘(iii) any amounts that result from the
difference in the administrative and oper-
ating expenses owed to an approved insur-
ance provider as the result of an exclusion
in actual production history under this
paragraph.
‘‘(D) INCREASE
IN
ACTUAL
PRODUCTION
HISTORY AFTER EXCLUSIONS.—In the case of a
producer that has received an exclusion under
subparagraph (B), the Corporation shall not
limit the increase of the actual production his-
tory based on the producer’s actual production of
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the crop of an agricultural commodity in suc-
ceeding crop years until the actual production
history for the producer reaches the level for the
crop year immediately preceding the first year of
the multiyear disaster.
‘‘(E) TERMINATION OF EXCLUSION AUTHOR-
ITY.—The authority to apply this paragraph to
a producer shall terminate with respect to the
first crop year in which crop insurance is avail-
able to the producer that adequately insures
against natural disasters that occur in multiple
crop years, as determined by the Corporation.
‘‘(F) REINSURANCE
YEARS.—This para-
graph shall apply to each of the 2001 through
2004 reinsurance years.’’.
SEC. 106. NONINSURED CROP DISASTER ASSISTANCE PRO-
GRAM.
(a) OPERATION AND ADMINISTRATION OF PROGRAM.—
Section 196(a)(2) of the Agricultural Market Transition Act
(7 U.S.C. 7333(a)(2)) is amended by adding at the end the
following:
‘‘(C) COMBINATION OF SIMILAR TYPES OR
VARIETIES.—At the option of the Secretary, all
types or varieties of a crop or commodity, de-
scribed in subparagraphs (A) and (B), may be
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considered to be a single eligible crop under this
section.’’.
(b) RECORDS
AND
APPLICATION
DATE.—Section
196(b) of the Agricultural Market Transition Act (7 U.S.C.
7333(b)) is amended—
(1) in the second sentence of paragraph (1), by
striking ‘‘at such time as the Secretary may require.’’
and inserting ‘‘not later than March 15.’’;
(2) by striking paragraph (2) and inserting the
following:
‘‘(2) RECORDS.—To be eligible for assistance
under this section, a producer shall provide annually
to the Secretary records of crop acreage, acreage
yields, and production for each crop, as required by
the Secretary.’’; and
(3) in paragraph (3), by inserting ‘‘annual’’
after ‘‘shall provide’’.
(c) LOSS REQUIREMENTS.—Section 196 of the Agri-
cultural Market Transition Act (7 U.S.C. 7333) is amended
by striking subsection (c) and inserting the following:
‘‘(c) LOSS REQUIREMENTS.—
‘‘(1) CAUSE.—To be eligible for assistance under
this section, a producer of an eligible crop shall have
suffered a loss of a noninsured commodity as the re-
sult of a cause described in subsection (a)(3).
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‘‘(2) ASSISTANCE.—On making a determination
described in subsection (a)(3), the Secretary shall pro-
vide assistance under this section to producers of an
eligible crop that have suffered a loss as a result of
the cause described in subsection (a)(3).
‘‘(3) PREVENTED
PLANTING.—The Secretary
shall make a prevented planting noninsured crop dis-
aster assistance payment to a producer if the pro-
ducer is prevented from planting more than 15 per-
cent of the acreage intended for the eligible crop be-
cause of a cause described in subsection (a)(3), as de-
termined by the Secretary.
‘‘(4) AREA TRIGGER.—The Secretary may pro-
vide assistance to individual producers without any
requirement of an area loss.’’.
(d) NEW ELIGIBLE CROPS.—Section 196 of the Agri-
cultural Market Transition Act (7 U.S.C. 7333) is
amended—
(1) in subsection (d)(1)—
(A) by inserting ‘‘(except as provided in
subsection (j))’’ after ‘‘percent’’; and
(B) by inserting ‘‘determined under sub-
section (e)’’ after ‘‘for the crop’’;
(2) by redesignating subsection (j) as subsection
(l); and
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(3) by inserting after subsection (i) the following:
‘‘(j) NEW ELIGIBLE CROPS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), if
a producer produces an eligible crop that is new to
an area (as determined by the Secretary), a payment
for the producer shall be computed by substituting the
following percentages of yields for the percentages of
yields specified in subsection (d)(1):
‘‘(A) In the case of the first crop year of the
eligible crop produced by the producer, 35 per-
cent of the established yield for the crop deter-
mined under subsection (e).
‘‘(B) In the case of each of the second
through fourth years of the eligible crop produced
by the producer—
‘‘(i) 45 percent of the established yield
for the crop determined under subsection
(e); or
‘‘(ii) if the producer received a pay-
ment under this section for the first crop
year of the eligible crop produced by the
producer, 35 percent of the established yield
for the crop determined under subsection
(e).
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‘‘(2) TEMPORARY INELIGIBILITY.—If a producer
of an eligible crop described in paragraph (1) receives
a payment under this section in both the first and
second crop years of the eligible crop, the producer
shall be ineligible for a payment under this section
until the producer has successfully produced the crop
for at least 3 consecutive crop years with no loss re-
ported, as determined by the Secretary.’’.
(e) SERVICE FEE.—Section 196 of the Agricultural
Market Transition Act (7 U.S.C. 7333) (as amended by sub-
section (d)) is amended by inserting after subsection (j) the
following:
‘‘(k) SERVICE FEE.—
‘‘(1) IN GENERAL.—To be eligible to receive as-
sistance for an eligible crop for a crop year under this
section, a producer shall pay to the Secretary (at the
time at which the producer provides reports under
subsection (b)(3)) a service fee for the eligible crop in
an amount that is equal to the lesser of—
‘‘(A) the equivalent of the per policy fee for
catastrophic risk protection available under sec-
tion 508(b)(5) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)(5)); or
‘‘(B) $200 per producer per county, but not
to exceed a total of $600 per producer.
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‘‘(2) WAIVER.—The Secretary shall waive the
service fee required under paragraph (1) in the case
of a limited resource farmer, as defined by the Sec-
retary.
‘‘(3) USE.—The Secretary shall deposit service
fees collected under this subsection in the Commodity
Credit Corporation Fund.’’.
(f) CROP YEARS.—This section and the amendments
made by this section shall apply to each of the 2001 through
2004 crop years.
SEC. 107. CROP INSURANCE COVERAGE FOR RICE.
Section 508(a) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)) (as amended by section 102(a)) is amended
by adding at the end the following:
‘‘(8) SPECIAL PROVISIONS FOR RICE.—Notwith-
standing any other provision of this title, beginning
with the 2001 crop of rice, the Corporation shall offer
plans of insurance, including prevented planting cov-
erage and replanting coverage, under this title that
cover losses of rice resulting from failure of irrigation
water supplies due to drought and saltwater intru-
sion.’’.
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TITLE II—RESEARCH AND PILOT
PROGRAMS
SEC. 201. RESEARCH AND PILOT PROGRAMS.
The Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.) is amended by adding at the end the following:
‘‘SEC. 522. RESEARCH AND PILOT PROGRAMS.
‘‘(a) GENERAL PROVISIONS.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, the Corporation may conduct re-
search, surveys, pilot programs, and investigations re-
lating to crop insurance and agriculture-related risks
and losses based on proposals developed by the Cor-
poration or by an approved insurance provider to
evaluate whether the proposal or new risk manage-
ment tool is suitable for the marketplace and address-
es the needs of producers of agricultural commodities.
‘‘(2) PRIVATE COVERAGE.—Under this section,
the Corporation shall not conduct any activity that
provides insurance protection against a risk if insur-
ance protection against the risk is generally available
from private companies.
‘‘(3) COVERED
ACTIVITIES.—The activities de-
scribed in paragraph (1) include insurance on losses
involving—
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‘‘(A) reduced forage on rangeland caused by
drought or insect infestation;
‘‘(B) livestock poisoning and disease;
‘‘(C) destruction of bees due to the use of
pesticides;
‘‘(D) unique special risks related to fruits,
nuts, vegetables, and specialty crops in general,
aquacultural species, and forest industry needs
(including appreciation);
‘‘(E) loss of timber due to drought, flood,
fire, or other natural disaster;
‘‘(F) other agricultural products as deter-
mined by the Board;
‘‘(G) after October 1, 2000, insurance cov-
erage for livestock and livestock products;
‘‘(H) subject to paragraph (7), after October
1, 2000, wild salmon; and
‘‘(I) subject to paragraph (7), after October
1, 2000, loss of or damage to trees or fruit af-
fected by plum pox virus (commonly known as
‘sharka’), including quarantined trees or fruit.
‘‘(4) SCOPE OF PILOT PROGRAMS.—The Corpora-
tion may—
‘‘(A) offer a pilot program authorized under
this title on a regional, State, or national basis
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after considering the interests of affected pro-
ducers and the interests of, and risks to, the Cor-
poration;
‘‘(B) operate the pilot program, including
any modifications of the pilot program, for a pe-
riod of up to 4 years;
‘‘(C) extend the time period for the pilot
program for additional periods, as determined
appropriate by the Corporation; and
‘‘(D) provide pilot programs that would
allow producers—
‘‘(i) to receive premium discounts for
using whole farm units or single crop units
of insurance; and
‘‘(ii) to cross State and county bound-
aries to form insurable units.
‘‘(5) EVALUATION.—After the completion of any
pilot program under this section, the Corporation
shall evaluate the pilot program and submit to the
Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, a report on the operations
of the pilot program, including the evaluation by the
Corporation of the pilot program and the rec-
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ommendations of the Corporation with respect to im-
plementing the program on a national basis.
‘‘(6) FUNDING.—The amount of funds used to
carry out research and pilot programs that are estab-
lished after the date of enactment of this section (other
than subsection (b)(2)) shall not exceed—
‘‘(A) in the case of fiscal year 2001,
$10,000,000;
‘‘(B) in the case of fiscal year 2002,
$30,000,000;
‘‘(C) in the case of fiscal year 2003,
$50,000,000; and
‘‘(D) in the case of fiscal year 2004,
$60,000,000.
‘‘(7) FISCAL YEARS.—Paragraphs (3)(E), (3)(G),
(3)(H), (4), and (6) shall apply to each of fiscal years
2001 through 2004.
‘‘(8) RELATION TO OTHER LAWS.—
‘‘(A) IN GENERAL.—The terms and condi-
tions of any policy or plan of insurance offered
under this section that is reinsured by the Cor-
poration shall not—
‘‘(i) be subject to the jurisdiction of the
Commodity Futures Trading Commission
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or the Securities and Exchange Commis-
sion; or
‘‘(ii) be considered to be accounts,
agreements (including any transaction that
is of the character of, or is commonly
known to the trade as, an ‘option’, ‘privi-
lege’, ‘indemnity’, ‘bid’, ‘offer’, ‘put’, ‘call’,
‘advance guaranty’, or ‘decline guaranty’),
or transactions involving contracts of sale of
a commodity for future delivery, traded or
executed on a contract market for the pur-
poses of the Commodity Exchange Act (7
U.S.C. 1 et seq.).
‘‘(B) EFFECT ON CFTC AND COMMODITY EX-
CHANGE ACT.—Nothing in this paragraph affects
the jurisdiction of the Commodity Futures Trad-
ing Commission or the applicability of the Com-
modity Exchange Act (7 U.S.C. 1 et seq.) to any
transaction conducted on a contract market
under that Act by an approved insurance pro-
vider to offset the approved insurance provider’s
risk under a plan or policy of insurance under
this section.’’.
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SEC. 202. RESEARCH AND DEVELOPMENT CONTRACTING
AUTHORITY.
Section 522 of the Federal Crop Insurance Act (as
added by section 201) is amended by adding at the end
the following:
‘‘(b) RESEARCH
AND DEVELOPMENT CONTRACTING
AUTHORITY.—
‘‘(1) IN GENERAL.—Subject to section 523(a), to
obtain the best research and analysis concerning any
significant issue pertaining to crop insurance, includ-
ing outreach and education, pilot programs, or the
development of a new plan of insurance, the Corpora-
tion may use only the authority provided by this sec-
tion and funds made available under section
516(b)(2)(A) to—
‘‘(A) contract on a competitive basis with
qualified persons;
‘‘(B) reimburse research costs associated
with product development; and
‘‘(C) reimburse costs associated with the re-
assessment and modification of plans of insur-
ance.
‘‘(2) ALTERNATIVE RATING METHODOLOGIES.—
‘‘(A) IN GENERAL.—The Corporation shall
enter into contracts with qualified persons to
study and develop alternative methodologies for
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rating plans of insurance for catastrophic risk
protection and higher levels of additional cov-
erage under subsections (b) and (c), respectively,
of section 508, and rates for the plans of insur-
ance, that take into account—
‘‘(i) producers that elect not to partici-
pate in the Federal crop insurance pro-
gram; and
‘‘(ii) producers that elect to obtain only
catastrophic risk protection.
‘‘(B) PRIORITY.—The studies conducted
under this paragraph shall provide priority to
agricultural commodities with—
‘‘(i) the largest average acreage nation-
wide; and
‘‘(ii) the lowest percentage of producers
that purchase additional coverage.
‘‘(C) FUNDING.—
‘‘(i) IN
GENERAL.—The Corporation
shall fund the studies conducted under this
paragraph from funds in the insurance
fund available under section 516(b)(2)(A).
‘‘(ii) AMOUNT.—There are authorized
for 
the 
studies 
conducted 
under 
this
paragraph—
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‘‘(I) in the case of each of fiscal
years 2001 and 2002, $1,000,0000; and
‘‘(II) in the case of each of fiscal
years 2003 and 2004, $250,000.
‘‘(D) FISCAL YEARS.—This paragraph shall
apply to each of fiscal years 2001 through 2004.
‘‘(3) RESEARCH
AND
DEVELOPMENT
PRIOR-
ITIES.—The Corporation shall establish, as 1 of the
highest research and development priorities of the
Corporation, the development of a pasture, range, and
forage program to promote land stewardship.
‘‘(4) STUDY OF MULTIYEAR COVERAGE.—
‘‘(A) IN GENERAL.—The Corporation shall
contract with a qualified person to conduct a
study to determine whether offering plans of in-
surance that provide coverage for multiple years
would reduce fraud and abuse by persons that
participate in the Federal crop insurance pro-
gram.
‘‘(B) REPORT.—Not later than 1 year after
the date of enactment of this section, the Cor-
poration shall submit to the Committee on Agri-
culture of the House of Representatives and the
Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that describes the re-
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sults of the study conducted under subparagraph
(A).’’.
SEC. 203. CHOICE OF RISK MANAGEMENT OPTIONS.
(a) IN GENERAL.—Section 522 of the Federal Crop In-
surance Act (as amended by section 202) is amended by
adding at the end the following:
‘‘(c) CHOICE OF RISK MANAGEMENT OPTIONS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) 
AGRICULTURAL
COMMODITY.—The
term ‘agricultural commodity’ means each agri-
cultural commodity specified in section 518—
‘‘(i) for which catastrophic risk protec-
tion or additional coverage is available
under this title, other than solely this sec-
tion; and
‘‘(ii) that is selected by the Secretary
in a manner that—
‘‘(I) encourages the maximum
number of participants in the program
under this subsection;
‘‘(II) provides a mixture of pro-
gram, specialty, and regional crops;
‘‘(III) gives consideration to agri-
cultural commodities with low crop in-
surance participation rates; and
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‘‘(IV) results in not less than 15
percent of payments being made to
producers in States in which—
‘‘(aa) there is traditionally,
and continues to be, a low level of
Federal crop insurance participa-
tion and availability; and
‘‘(bb) the Secretary of Agri-
culture determines that the State
is underserved by Federal crop in-
surance.
‘‘(B) APPLICABLE CROP.—The term ‘appli-
cable crop’ means each of the 2002 through 2004
crops of an agricultural commodity produced by
a producer.
‘‘(C) APPLICABLE YEAR.—The term ‘appli-
cable year’ means the year in which—
‘‘(i) the applicable crop is produced on
the farm of a producer; and
‘‘(ii) the producer elects to receive a
risk management payment or crop insur-
ance premium subsidy under this sub-
section.
‘‘(D) REGULATED
EXCHANGE.—The term
‘regulated exchange’ means a board of trade (as
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defined in section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a)) that is designated as
a contract market under section 2(a)(1)(B) of
that Act (7 U.S.C. 2a).
‘‘(2) RISK MANAGEMENT PAYMENTS.—
‘‘(A) OFFER.—The Corporation shall offer
either to make either risk management payments
or to provide crop insurance premium subsidies
for each of the 2002 through 2004 crops of an ag-
ricultural commodity in accordance with sub-
paragraph (B).
‘‘(B) TERMS.—Not later than the sales clos-
ing date for obtaining coverage for an agricul-
tural commodity for each applicable year, an eli-
gible producer may elect to receive, with respect
to the agricultural commodity—
‘‘(i) a risk management payment
under this subsection; or
‘‘(ii) a crop insurance premium sub-
sidy, including a catastrophic risk protec-
tion subsidy, under this subsection.
‘‘(3) RISK MANAGEMENT PAYMENT.—
‘‘(A) IN GENERAL.—In the case of a pro-
ducer that elects to receive a risk management
payment for an applicable crop of an agricul-
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regulated exchange that is (as determined
by the Corporation)—
‘‘(I)(aa) in the case of a future, at
least 1 regulated futures contract (as
defined in section 1256(g) of the Inter-
nal Revenue Code of 1986); and
‘‘(bb) in the case of an option, at
least 1 listed option (as defined in sec-
tion 1256(g) of that Code); and
‘‘(II) a hedging transaction (as
defined in section 1256(e)(2) of that
Code) involving an agricultural com-
modity that is used to reduce produc-
tion, price, or revenue risk.
‘‘(ii) AGRICULTURAL TRADE OPTION.—
A producer may purchase, on other than a
regulated exchange, an agricultural trade
option for the applicable crop of an agricul-
tural commodity produced on the farm of
the producer that (as determined by the
Corporation)—
‘‘(I) provides coverage for at least
10 percent of the estimated monetary
value of the agricultural commodity;
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‘‘(II) is an equity option (as de-
fined in section 1256(g) of the Internal
Revenue Code of 1986); and
‘‘(III) is a hedging transaction
(as defined in section 1256(e)(2) of
that Code) involving an agricultural
commodity that is used to reduce pro-
duction, price, or revenue risk.
‘‘(iii) CASH FORWARD OR OTHER MAR-
KETING CONTRACT.—A producer may enter
into a cash forward or other type of mar-
keting contract for at least 20 percent of the
monetary value of an agricultural com-
modity produced on the farm of the pro-
ducer for the applicable crop, as determined
by the Secretary.
‘‘(iv) MARKETING THROUGH COOPERA-
TIVES.—A producer may market at least 25
percent of an agricultural commodity pro-
duced by the producer through a cooperative
that is owned by agricultural producers.
‘‘(C) FINANCIAL RISK CATEGORY.—
‘‘(i) TRUST.—A producer may make a
deposit of an amount equal to at least 10
percent of the payments of the producer for
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the applicable year under the Agricultural
Market Transition Act (7 U.S.C. 7201 et
seq.) into a trust authorized by statute for
eligible farming businesses that may be es-
tablished to accept tax deductible contribu-
tions.
‘‘(ii) AGRICULTURAL MARKETING AND
RISK
MANAGEMENT
EDUCATION.—A pro-
ducer may attend and complete in the ap-
plicable year an agricultural marketing or
risk management class or seminar approved
by the Corporation.
‘‘(iii) FINANCIAL RISK REDUCTION.—A
producer may reduce farm financial risk by
reducing debt in an amount that reduces le-
verage or by increasing liquidity, as deter-
mined by the Secretary.
‘‘(iv) DIVERSIFICATION.—A producer
may address production or financial risk
by—
‘‘(I) diversifying production on
the farm of the producer by producing
at least 1 additional commodity on the
farm;
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‘‘(II) 
significantly 
increasing
farm enterprise diversification in the
applicable year, as determined by the
Secretary;
‘‘(III) maintaining an integrated
farming system with a substantial de-
gree of diversification, as determined
by the Secretary; or
‘‘(IV) implementing a transition
to organic farming.
‘‘(D) FARM RESOURCES RISK CATEGORY.—
‘‘(i) 
CONSERVATION
PRACTICES.—A
producer may implement new or existing
conservation practices consisting of—
‘‘(I) nutrient management;
‘‘(II) integrated pest management;
‘‘(III) conservation tillage;
‘‘(IV) conservation buffers; or
‘‘(V) other conservation practices
that are appropriate for the farm, as
determined by the Secretary.
‘‘(ii) AGRICULTURAL
CONSERVATION
MANAGEMENT PLAN.—A producer may de-
velop a plan to mitigate financial risk asso-
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ciated with resource conservation through
practices consisting of—
‘‘(I) nutrient management;
‘‘(II) integrated pest management;
‘‘(III) soil erosion control;
‘‘(IV) conservation buffers;
‘‘(V) soil residue management;
‘‘(VI) water quantity or quality
management; or
‘‘(VII) other conservation prac-
tices that are appropriate for the farm,
as determined by the Secretary.
‘‘(iii) AGRICULTURAL
RESOURCE
IM-
PROVEMENTS.—A producer may invest in
the improvement or development of 1 or
more of the following capital land improve-
ments on the farm of the producer to reduce
production risk:
‘‘(I) Irrigation management.
‘‘(II) 
Watershed 
management
structures.
‘‘(III) 
Planting 
trees 
for
windbreaks or water quality.
‘‘(IV) Soil quality management
options.
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‘‘(V) Animal waste management
structures.
‘‘(VI) Other land improvements,
as determined by the Secretary.
‘‘(E) OTHER CATEGORY.—A producer may
engage in any other risk management practice
approved by the Secretary.
‘‘(5) DETERMINATION
OF
RISK
MANAGEMENT
PAYMENT.—
‘‘(A) IN GENERAL.—The Secretary shall de-
termine the amount of a risk management pay-
ment for an agricultural commodity produced on
the farm of a producer for an applicable crop
taking into consideration the expenditure by the
producer on the risk management practices ob-
tained or used by the producer.
‘‘(B) MAXIMUM
PAYMENT.—No payment
shall be made in excess of an amount equal to
the national average of the previous year’s liabil-
ity for all catastrophic risk protection policies.
‘‘(C) FUNDING.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), there are authorized to be expended to
carry out this subsection from the insurance
fund under section 516(a)(2)(C) not more
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than $500,000,000 for the period of fiscal
years 2002 through 2004.
‘‘(ii) ANNUAL LIMITATION.—Not more
than $200,000,000 may be expended in any
fiscal year to carry out this subsection.
‘‘(6) ADMINISTRATIVE PROVISIONS.—
‘‘(A) CERTIFICATION.—A producer shall
submit to the crop insurance agent or approved
insurance provider a risk management practices
form that certifies, in accordance with standards
prescribed by the Secretary, the qualifying risk
management practices and associated costs that
were obtained or used by the producer during the
applicable year.
‘‘(B) COMPLIANCE.—The Corporation may
perform random audits of producers that obtain
a risk management payment to ensure that the
producers obtained or used the qualifying risk
management practices described in the form.
‘‘(C) VIOLATION OF TERMS OF RISK MAN-
AGEMENT PAYMENT.—If a producer has accepted
a risk management payment or crop insurance
premium subsidy for an applicable year and the
producer fails to comply with subparagraph (A),
or to carry out a qualifying risk management
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option elected by the producer under paragraph
(4), with respect to the applicable year, the
producer—
‘‘(i) shall refund to the Corporation an
amount equal to the risk management pay-
ment; and
‘‘(ii) may be subject to debarment from
loans and payments for a period of not to
exceed 5 years, as provided in section
506(n)(3)(B).
‘‘(D) ASSIGNMENT AND SHARING OF BENE-
FITS.—
‘‘(i) ASSIGNMENT OF BENEFITS.—As-
signment of a benefit provided under this
subsection shall be carried out as provided
in section 8(g) of the Soil Conservation and
Domestic 
Allotment 
Act 
(16 
U.S.C.
590h(g)).
‘‘(ii) NOTICE.—The producer making
the assignment, or the assignee, shall pro-
vide the Corporation with notice, in such
manner as the Corporation may require, of
any assignment.
‘‘(iii) SHARING
OF
BENEFITS.—The
Corporation shall provide for the sharing of
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benefits under this subsection among all
producers that are at risk in the production
of an applicable crop on a fair and equi-
table basis.
‘‘(7) FISCAL YEARS.—This subsection shall apply
to each of fiscal years 2002 through 2004.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
516(a) of the Federal Crop Insurance Act (7 U.S.C.
1516(a)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) DISCRETIONARY EXPENSES.—There are au-
thorized to be appropriated for fiscal year 1999 and
each subsequent fiscal year such sums as are nec-
essary to cover—
‘‘(A) the salaries and expenses of the Cor-
poration; and
‘‘(B) the expenses of approved insurance
providers incurred in carrying out section
522(c).’’; and
(2) in paragraph (2)—
(A) in subparagraph (A), by striking ‘‘and’’
at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; and’’; and
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(C) by adding at the end the following:
‘‘(C) risk management payments authorized
under section 522(c) in an amount not to exceed
$500,000,000 for the period of fiscal years 2002
through 
2004, 
of 
which 
not 
more 
than
$200,000,000 may be expended for any 1 fiscal
year.’’.
SEC. 204. OPTIONS PILOT PROGRAM.
(a) IN GENERAL.—Section 191 of the Agricultural
Market Transition Act (7 U.S.C. 7331) is amended—
(1) in the first sentence of subsection (a), by
striking ‘‘2002’’ and inserting ‘‘2004’’;
(2) in subsection (b)—
(A) in the first sentence, by striking ‘‘100
counties, except that not more than 6’’ and in-
serting ‘‘300 counties, except that not more than
25’’; and
(B) in the second sentence, by striking
‘‘2002’’ and inserting ‘‘2004’’; and
(3) in subsection (c)(2), by inserting before the
semicolon the following: ‘‘during any calendar year in
which a county in which the farm of the producer is
located is authorized to operate the pilot program’’.
(b) FUNDING.—From amounts made available under
section 516(a)(2)(C) of the Federal Crop Insurance Act (7
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U.S.C. 1516(a)(2)(C)) (as added by section 203(b)(2)(C))
for the choice of risk management options pilot program,
the Federal Crop Insurance Corporation shall transfer to
the Secretary of Agriculture to carry out the amendments
made by subsection (a) $27,000,000 for each of fiscal years
2002 through 2004.
SEC. 205. RISK MANAGEMENT INNOVATION AND COMPETI-
TION PILOT PROGRAM.
Section 522 of the Federal Crop Insurance Act (as
amended by section 203(a)) is amended by adding at the
end the following:
‘‘(d) RISK MANAGEMENT INNOVATION AND COMPETI-
TION.—
‘‘(1) PURPOSE.—The purpose of the pilot pro-
gram established under this subsection is to determine
what incentives are necessary to encourage approved
insurance providers to—
‘‘(A) develop and offer innovative risk man-
agement products to producers;
‘‘(B) rate premiums for risk management
products; and
‘‘(C) competitively market the risk manage-
ment products.
‘‘(2) ESTABLISHMENT.—
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‘‘(A) IN GENERAL.—The Corporation shall
establish a pilot program under which approved
insurance providers may propose for approval
by 
the 
Board 
risk 
management 
products
involving—
‘‘(i) loss of yield or revenue insurance
coverage for 1 or more commodities (includ-
ing commodities that are not insurable
under this title as of the date of enactment
of this section, but excluding livestock);
‘‘(ii) rates of premium for the risk
management product; or
‘‘(iii) underwriting systems for the risk
management product.
‘‘(B) SUBMISSION TO BOARD.—The Board
shall review and approve a risk management
product before the risk management product may
be marketed under this subsection.
‘‘(C) DETERMINATION
BY
BOARD.—The
Board may approve a risk management product
for subsidy and reinsurance under this title if
the Board determines that—
‘‘(i) the interests of producers of com-
modities are adequately protected by the
risk management product;
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‘‘(ii) premium rates charged to pro-
ducers are actuarially appropriate (within
the meaning of section 508(h)(3)(E));
‘‘(iii) the underwriting system of the
risk management product is appropriate
and adequate;
‘‘(iv) the proposed risk management
product is reinsured under this title, is re-
insured through private reinsurance, or is
self-insured;
‘‘(v) the size of the proposed pilot area
is adequate;
‘‘(vi) insurance protection against the
risk covered by the proposed risk manage-
ment product is not generally available
from private plans of insurance that are not
covered by this title; and
‘‘(vii) such other requirements of this
title as the Board determines should apply
to the risk management product are met.
‘‘(D) CONFIDENTIALITY.—
‘‘(i) IN
GENERAL.—All information
concerning a risk management product
shall be considered to be confidential com-
mercial or financial information for the
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purposes of section 552(b)(4) of title 5,
United States Code.
‘‘(ii) STANDARD.—If information con-
cerning a risk management product of an
approved insurance provider could be with-
held by the Secretary under the standard
for privileged or confidential information
pertaining to trade secrets and commercial
or financial information under section
552(b)(4) of title 5, United States Code, the
information shall not be released to the pub-
lic.
‘‘(3) MARKETING OF RISK MANAGEMENT PROD-
UCTS.—
‘‘(A) DEFINITION OF ORIGINAL PROVIDER.—
In this paragraph, the term ‘original provider’
means an approved insurance provider that sub-
mits a risk management product to the Board
for approval under paragraph (2).
‘‘(B) AUTHORITY
TO
MARKET.—If the
Board approves a risk management product
under paragraph (2), subject to subparagraph
(C), only the original provider may market the
risk management product.
‘‘(C) FEE.—
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‘‘(i) IN GENERAL.—An approved insur-
ance provider (other than the original pro-
vider) that desires to market a risk manage-
ment product shall pay a fee to the original
provider for the right to market the risk
management product.
‘‘(ii) AMOUNT.—The original provider
shall determine the amount of the fee under
clause (i).’’.
SEC. 206. EDUCATION AND RESEARCH.
Section 522 of the Federal Crop Insurance Act (as
amended by section 205) is amended by adding at the end
the following:
‘‘(e) EDUCATION AND RESEARCH.—
‘‘(1) IN GENERAL.—The Corporation shall estab-
lish the programs described in paragraphs (2) and
(3), respectively, for the 2001–2004 fiscal years, not
to exceed the funding limitations established in para-
graph (4).
‘‘(2) EDUCATION AND INFORMATION.—The Cor-
poration shall establish a program of education and
information for States in which—
‘‘(A) there is traditionally, and continues to
be, a low level of Federal crop insurance partici-
pation and availability; and
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‘‘(B) the Secretary of Agriculture deter-
mines that the State is underserved by Federal
crop insurance.
‘‘(3) RESEARCH AND DEVELOPMENT.—The Cor-
poration shall establish a program of research and de-
velopment to develop new approaches to increasing
participation in States in which—
‘‘(A) there is traditionally, and continues to
be, a low level of Federal crop insurance partici-
pation and availability; and
‘‘(B) the Secretary of Agriculture deter-
mines that the State is underserved by Federal
crop insurance.
‘‘(4) FUNDING.—The following amounts shall be
transferred from funds made available in section
516(a)(2)(C) for the Choice of Risk Management Op-
tions pilot program—
‘‘(A) for the Education, Information and
Insurance Provider Recruitmant program in
paragraph (2), $10,000,000 for each of fiscal
years 2001 through 2004.
‘‘(B) for the Research and Development pro-
gram in paragraph (3), $5,000,000 for each of
fiscal years 2001 through 2004.’’.
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SEC. 207. CONFORMING AMENDMENTS.
(a) Section 508 of the Federal Crop Insurance Act (7
U.S.C. 1508) is amended—
(1) by striking subsection (m); and
(2) by redesignating subsection (n) as subsection
(m).
(b) Section 516(b)(2)(A) of the Federal Crop Insurance
Act (7 U.S.C. 1516(b)(2)(A)) is amended by striking ‘‘ex-
ceed $3,500,000 for each fiscal year.’’ and inserting
‘‘exceed—
‘‘(i) in the case of each of fiscal years
2001 and 2002, $4,500,000;
‘‘(ii) in the case of each of fiscal years
2003 and 2004, $3,750,000; and
‘‘(iii) in the case of each subsequent fis-
cal year, $3,500,000.’’.
(c) Section 518 of the Federal Crop Insurance Act (7
U.S.C. 1518) is amended by striking ‘‘subsection (a) or (m)
of section 508 of this title’’ and inserting ‘‘section 508(a),
522, or 523’’.
TITLE III—ADMINISTRATION
SEC. 301. BOARD OF DIRECTORS OF CORPORATION.
(a) IN GENERAL.—Section 505 of the Federal Crop In-
surance Act (7 U.S.C. 1505) is amended by striking sub-
section (a) and inserting the following:
‘‘(a) BOARD OF DIRECTORS.—
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‘‘(1) IN GENERAL.—The management of the Cor-
poration shall be vested in a Board of Directors, sub-
ject to the general supervision of the Secretary.
‘‘(2) COMPOSITION.—The Board shall consist
of—
‘‘(A) 4 members who are active agricultural
producers with or without crop insurance, with
1 member appointed from each of the 4 regions
of the United States (as determined by the Sec-
retary);
‘‘(B) 1 member who is active in the crop in-
surance business;
‘‘(C) 1 member who is active in the reinsur-
ance business;
‘‘(D) the Under Secretary for Farm and
Foreign Agricultural Services;
‘‘(E) the Under Secretary for Rural Devel-
opment; and
‘‘(F) the Chief Economist of the Department
of Agriculture.
‘‘(3) APPOINTMENT AND TERMS OF PRIVATE SEC-
TOR MEMBERS.—The members of the Board described
in subparagraphs (A), (B), and (C) of paragraph
(2)—
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‘‘(A) shall be appointed by, and hold office
at the pleasure of, the Secretary;
‘‘(B) shall not be otherwise employed by the
Federal Government;
‘‘(C) shall be appointed to staggered 4-year
terms, as determined by the Secretary; and
‘‘(D) shall serve not more than 2 consecutive
terms.
‘‘(4) CHAIRPERSON.—The Board shall select a
member of the Board described in subparagraph (A),
(B), or (C) of paragraph (2) to serve as Chairperson
of the Board.
‘‘(5) OFFICE OF RISK MANAGEMENT.—The Office
of Risk Management shall provide assistance to the
Board in developing, reviewing, and recommending—
‘‘(A) new plans of insurance and pilot
projects under this title that are proposed by the
Office or by a private insurance provider;
‘‘(B) terms of the Standard Reinsurance
Agreement;
‘‘(C) rates for plans of insurance under this
title; and
‘‘(D) other issues involved in the adminis-
tration of Federal crop insurance, as requested
by the Board.
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‘‘(6) EXECUTIVE DIRECTOR; STAFF.—
‘‘(A) EXECUTIVE DIRECTOR.—An executive
director appointed by the Secretary, with the
concurrence of the Board, shall—
‘‘(i) assist the Board, as provided in
subparagraph (C); and
‘‘(ii) report to the Secretary.
‘‘(B) STAFF.—
‘‘(i) IN GENERAL.—A staff of 4 indi-
viduals appointed by the Executive Director
shall report to the Executive Director.
‘‘(ii) QUALIFICATIONS.—An individual
described in clause (i) (except the Executive
Director) shall be knowledgeable and experi-
enced in quantitative mathematics and ac-
tuarial rating.
‘‘(C) FUNCTIONS.—The Executive Director
and staff appointed under this paragraph
shall—
‘‘(i) assist the Board in reviewing and
approving policies and materials with re-
spect to plans of insurance or other mate-
rials authorized or submitted under section
508, 522, or 523;
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‘‘(vi) review and make recommenda-
tions to the Board with respect to meth-
odologies for rating plans of insurance
under this title; and
‘‘(vii) perform such other functions as
the Board considers appropriate.
‘‘(D) FUNDING.—
‘‘(i) 
INSURANCE
FUND.—From
amounts in the insurance fund under sec-
tion 516(c)(1), effective for fiscal year 2001,
$500,000 shall be available to pay the sala-
ries and expenses of the Executive Director
and staff appointed under this paragraph.
‘‘(ii) SALARIES AND EXPENSES.—Sub-
ject to the availability of appropriations,
the Risk Management Agency shall transfer
$500,000 
for 
fiscal 
year 
2001, 
and
$1,000,000 for each subsequent fiscal year,
at the beginning of the fiscal year to the Ex-
ecutive Director for the salaries and ex-
penses of the Executive Director and staff
appointed under this paragraph.’’.
(b) SUBMISSION
OF POLICIES
AND MATERIALS
TO
BOARD.—Section 508(h) of the Federal Crop Insurance Act
(7 U.S.C. 1508(h)) is amended—
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(1) by striking paragraphs (1) through (4) and
inserting the following:
‘‘(1) IN GENERAL.—In addition to any standard
forms or policies that the Board may require be made
available to producers under subsection (c), a person
may propose to the Board—
‘‘(A) loss of yield or revenue insurance cov-
erage on an individual, area, or a combination
of individual and area basis, for 1 or more agri-
cultural commodities;
‘‘(B) rates of premium for a proposed or ex-
isting policy; and
‘‘(C) underwriting systems for a proposed
or existing policy.
‘‘(2) SUBMISSION OF PROPOSALS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and paragraph (3), a proposal sub-
mitted to the Board under this subsection may
be prepared without regard to the limitations of
this title, including limitations—
‘‘(i) concerning actuarial soundness;
‘‘(ii) concerning levels of coverage;
‘‘(iii) concerning rates of premium;
‘‘(iv) that the price level for coverage
for each insured commodity must equal the
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expected market price for the commodity as
established by the Board; and
‘‘(v) that an approved insurance pro-
vider shall provide coverage under a policy
throughout a State for all commodities if
the approved insurance provider elects to
provide any coverage in the State.
‘‘(B) MAXIMUM ALLOWABLE SUBSIDY.—The
payment by the Corporation of a portion of the
premium of the policy approved by the Board
under this subsection may not exceed the amount
that would otherwise be authorized under sub-
section (e).
‘‘(3) STANDARDS.—
‘‘(A) IN
GENERAL.—The Board shall ap-
prove a proposal under this subsection for sub-
sidy and reinsurance if the Board finds that the
proposal adequately ensures that—
‘‘(i) the interests of producers of com-
modities are adequately protected;
‘‘(ii) premiums charged to producers
are actuarially appropriate;
‘‘(iii) the underwriting system in-
cluded in the proposal is appropriate and
adequate; and
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‘‘(iv) the proposal is reinsured under
this title, is reinsured through private rein-
surance, or is self-insured;
‘‘(B) RATES OF PREMIUM.—A proposed rate
of premium (including the part of premium paid
by the Corporation) shall be considered to be ac-
tuarially appropriate if the rate is sufficient to
cover projected losses and expenses, a reasonable
reserve, and the amount of operating and admin-
istrative expenses of the approved insurance pro-
vider determined under subsection (d)(2).
‘‘(C) PROPOSED UNDERWRITING PLANS.—A
proposed underwriting plan—
‘‘(i) may be on an area or individual
farm basis; and
‘‘(ii) shall, at a minimum, specify fac-
tors such as yield history for the farm or re-
gion, soils and resource quality for the
farm, and farm production practices.
‘‘(D) REINSURANCE.—
‘‘(i) 
FEDERAL
REINSURANCE.—The
Corporation shall, to the maximum extent
practicable, make reinsurance available to
an approved insurance provider under this
subsection.
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‘‘(ii) PRIVATE OR FEDERAL REINSUR-
ANCE.—An approved insurance provider
may—
‘‘(I) obtain private reinsurance
for the proposal;
‘‘(II) obtain reinsurance for the
proposal under this title; or
‘‘(III) self-insure the proposal.
‘‘(E) 
ACTUARIALLY
APPROPRIATE.—The
Board shall prescribe standards for determining
whether premium rates are actuarially appro-
priate considering the risk inherent in the pro-
posed product.
‘‘(4) REVIEW AND APPROVAL BY BOARD.—With
respect to any policy or other material submitted to
the Board after October 1, 2000, under this sub-
section, the following guidelines shall apply:
‘‘(A) IN GENERAL.—The policy or other ma-
terial shall be reviewed by the Board in accord-
ance with subparagraphs (C) and (D).
‘‘(B) 
MULTIPLE
INSURANCE
AGREE-
MENTS.—The Corporation may enter into more
than 1 reinsurance agreement simultaneously
with the approved insurance provider to facili-
tate the offering of the new policy.
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‘‘(C) PROCEDURES
FOR
SUBMISSION
AND
REVIEW.—The Corporation shall promulgate reg-
ulations that establish procedures for the submis-
sion and review by the Board of proposals sub-
mitted to the Board under this subsection,
including—
‘‘(i) the standards applicable to a pro-
posal under paragraph (3) (including docu-
mentation required to establish that a pro-
posal satisfies the standards);
‘‘(ii) procedures concerning the time
limitations provided under this paragraph;
and
‘‘(iii) procedures that provide an ap-
plicant the opportunity to present the pro-
posal to the Board in person.
‘‘(D) REVIEW BY THE BOARD.—
‘‘(i) PERIOD
FOR
APPROVAL.—Not-
withstanding any other provision of law, a
proposal submitted to the Board shall be
considered to be approved unless the Board
disapproves the proposal by the date that is
60 business days after the later of—
‘‘(I) the date of submission of the
completed proposal to the Board; or
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‘‘(II) the date on which the appli-
cant provides to the Board notice of in-
tent to modify the proposal under
clause (ii)(IV).
‘‘(ii) NOTICE OF DISAPPROVAL.—
‘‘(I) IN GENERAL.—Not later than
15 days before the date on which the
Board 
intends 
to 
announce 
dis-
approval of a proposal, the Board shall
provide the applicant, by registered
mail, with notice of intent to dis-
approve the proposal.
‘‘(II) RIGHT TO MODIFY.—An ap-
plicant that is notified under subclause
(I) may modify the proposal.
‘‘(III) ORIGINAL
APPLICATION.—
For the purposes of this clause, any
modified proposal shall be considered
to be an original proposal.
‘‘(IV) NOTICE OF INTENT TO MOD-
IFY.—Not later than 5 business days
after receipt of a notice under sub-
clause (I), an applicant that intends to
modify the proposal shall so notify the
Board.
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‘‘(E) TIMING.—In establishing procedures
under this subsection, the Board shall prescribe
a reasonable deadline for the submission of pro-
posals that approved insurance providers expect
to market during the reinsurance year.
‘‘(F) CONFIDENTIALITY.—
‘‘(i) IN
GENERAL.—A proposal sub-
mitted to the Board under this subsection
(including any information generated from
the proposal) shall be considered to be con-
fidential commercial or financial informa-
tion for the purposes of section 552(b)(4) of
title 5, United States Code.
‘‘(ii) 
STANDARD
OF
CONFIDEN-
TIALITY.—Except as provided in clauses
(iii) and (iv), if information concerning a
proposal could be withheld by the Secretary
under the standard for privileged or con-
fidential information pertaining to trade se-
crets and commercial or financial informa-
tion under section 552(b)(4) of title 5,
United States Code, the information shall
not be released to the public.
‘‘(iii) EXCEPTION FOR PURCHASERS OF
PLANS
OF
INSURANCE.—Clause (ii) shall
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not apply in the case of an approved insur-
ance provider that elects to pay a fee to sell
a plan of insurance developed by another
provider under paragraph (5).
‘‘(iv) APPROVED PROPOSALS.—In lieu
of publication in the Federal Register, a
general summary of the content of the pro-
posal shall be made available to other ap-
proved insurance providers at the time at
which the proposal is approved by the
Board, consisting of a description of—
‘‘(I) the identity of the approved
insurance provider;
‘‘(II) the coverage provided; and
‘‘(III) the area to be covered by
the approved proposal.’’;
(2) by striking paragraphs (6), (8), and (10);
and
(3) by redesignating paragraphs (7) and (9) as
paragraphs (6) and (7), respectively.
(c) CONFORMING AMENDMENTS.—Section 516(b)(1) of
the Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) is
amended—
(1) in subparagraph (B), by striking ‘‘; and’’
and inserting a semicolon;
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(2) in subparagraph (C), by striking the period
at the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(D) the salaries and expenses of the Execu-
tive Director and staff appointed under section
505(a)(6) for fiscal year 2001, but not to exceed
$500,000 for the fiscal year; and’’.
SEC. 302. GOOD FARMING PRACTICES.
Section 508(a)(3) of the Federal Crop Insurance Act
(7 U.S.C. 1508(a)(3)) (as amended by section 103(d)) is
amended in subparagraph (A)(iii) by inserting after ‘‘good
farming practices’’ the following: ‘‘, including scientifically
sound sustainable and organic farming practices’’.
SEC. 303. SANCTIONS FOR PROGRAM NONCOMPLIANCE AND
FRAUD.
(a) IN GENERAL.—Section 506 of the Federal Crop In-
surance Act (7 U.S.C. 1506) is amended by striking sub-
section (n) and inserting the following:
‘‘(n) SANCTIONS FOR PROGRAM NONCOMPLIANCE AND
FRAUD.—
‘‘(1) FALSE INFORMATION.—A producer, agent,
loss adjuster, approved insurance provider, or other
person that willfully and intentionally provides any
false or inaccurate information to the Corporation or
to an approved insurance provider with respect to a
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policy or plan of insurance under this title may, after
notice and an opportunity for a hearing on the
record, be subject to 1 or more of the sanctions de-
scribed in paragraph (3).
‘‘(2) COMPLIANCE.—A person may, after notice
and an opportunity for a hearing on the record, be
subject to 1 or more of the sanctions described in
paragraph (3) if the person is—
‘‘(A) a producer, agent, loss adjuster, ap-
proved insurance provider, or other person that
willfully and intentionally fails to comply with
a requirement of the Corporation; or
‘‘(B) an agent, loss adjuster, approved in-
surance provider, or other person (other than a
producer) that willfully and intentionally fails
to comply with a requirement of the Standard
Reinsurance Agreement.
‘‘(3) AUTHORIZED SANCTIONS.—If the Secretary
determines that a person covered by this subsection
has committed a material violation under paragraph
(1) or (2), the following sanctions may be imposed:
‘‘(A) CIVIL FINES.—A civil fine may be im-
posed for each violation in an amount not to ex-
ceed the greater of—
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‘‘(i) the amount of the pecuniary gain
obtained as a result of the false or inac-
curate information provided or the non-
compliance with a requirement of this title;
or
‘‘(ii) $10,000.
‘‘(B) DEBARMENT.—
‘‘(i) PRODUCERS.—In the case of a
violation committed by a producer, the pro-
ducer may be disqualified for a period of up
to 5 years from receiving any monetary or
nonmonetary benefit provided under—
‘‘(I) this title;
‘‘(II) the Agricultural Market
Transition Act (7 U.S.C. 7201 et seq.),
including the noninsured crop disaster
assistance program under section 196
of that Act (7 U.S.C. 7333);
‘‘(III) the Agricultural Act of
1949 (7 U.S.C. 1421 et seq.);
‘‘(IV) the Commodity Credit Cor-
poration Charter Act (15 U.S.C. 714 et
seq.);
‘‘(V) the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1281 et seq.);
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‘‘(VI) title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3801 et
seq.);
‘‘(VII) the Consolidated Farm and
Rural Development Act (7 U.S.C. 1921
et seq.); and
‘‘(VIII) any law that provides as-
sistance to a producer of an agricul-
tural commodity affected by a crop loss
or a decline in the prices of agricul-
tural commodities.
‘‘(ii) OTHER PERSONS.—In the case of
a violation committed by an agent, loss ad-
juster, approved insurance provider, or
other person (other than a producer), the vi-
olator may be disqualified for a period of
up to 5 years from participating in any
program, or receiving any benefit, under
this title.
‘‘(4) ASSESSMENT OF SANCTION.—The Secretary
shall consider the gravity of the violation of the per-
son covered by this subsection in determining—
‘‘(A) whether to impose a sanction under
this subsection; and
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‘‘(B) the amount of the sanction to be im-
posed.
‘‘(5) DISCLOSURE OF SANCTIONS.—Each policy
or plan of insurance under this title shall provide no-
tice about the sanctions prescribed under paragraph
(3) for willfully and intentionally—
‘‘(A) providing false or inaccurate informa-
tion to the Corporation or to an approved insur-
ance provider; or
‘‘(B) failing to comply with a requirement
of the Corporation or the Standard Reinsurance
Agreement.
‘‘(6) INSURANCE
FUND.—Any funds collected
under this subsection shall be deposited into the in-
surance fund under section 516(c)(1).’’.
(b) CONFORMING AMENDMENTS.—Section 516(c) of the
Federal Crop Insurance Act (7 U.S.C. 1516(c)) is amended
by striking paragraph (1) and inserting the following:
‘‘(1) IN GENERAL.—There is established the in-
surance fund, which shall include (to remain avail-
able without fiscal year limitation)—
‘‘(A) premium income;
‘‘(B) amounts made available under sub-
section (a)(2); and
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‘‘(C) civil fines collected under section
506(n)(3)(A).’’.
SEC. 304. OVERSIGHT OF AGENTS AND LOSS ADJUSTERS.
Section 506(q) of the Federal Crop Insurance Act (7
U.S.C. 1506(q)) is amended by adding at the end the fol-
lowing:
‘‘(3) OVERSIGHT OF AGENTS AND LOSS ADJUST-
ERS.—The Corporation shall—
‘‘(A) develop procedures for an annual re-
view by an approved insurance provider of the
performance of each agent and loss adjuster used
by the approved insurance provider;
‘‘(B) oversee the annual review conducted by
each approved insurance provider; and
‘‘(C) consult with each approved insurance
provider regarding any remedial action that is
determined necessary as a result of the annual
review of an agent or loss adjuster.
‘‘(4) COMPLIANCE REPORTS.—Not later than the
end of each fiscal year, the Corporation shall submit,
to the Committee on Agriculture of the House of Rep-
resentatives, the Committee on Agriculture, Nutrition,
and Forestry of the Senate, and the Board, a report
concerning compliance by approved insurance pro-
viders, agents, and loss adjusters with this title, in-
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cluding any recommendations for legislative or ad-
ministrative changes that could further improve com-
pliance.’’.
SEC. 305. ADEQUATE COVERAGE FOR STATES.
Section 508(a) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)) (as amended by section 107) is amended
by adding at the end the following:
‘‘(9) ADEQUATE COVERAGE FOR STATES.—
‘‘(A) 
DEFINITION
OF
ADEQUATELY
SERVED.—In this paragraph, the term ‘ade-
quately served’ means having a participation
rate that is at least 50 percent of the national
average participation rate.
‘‘(B) REVIEW.—The Board shall review the
plans of insurance that are offered by approved
insurance providers under this title to determine
if each State is adequately served by the plans
of insurance.
‘‘(C) REPORT.—
‘‘(i) IN GENERAL.—Not later than 30
days after completion of the review under
subparagraph (B), the Board shall submit
to Congress a report on the results of the re-
view.
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‘‘(ii) RECOMMENDATIONS.—The report
shall include recommendations to increase
participation in States that are not ade-
quately served by the plans of insurance.’’.
SEC. 306. RECORDS AND REPORTING.
(a) CONDITION OF OBTAINING COVERAGE.—Section
508(f)(3)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(f)(3)(A)) is amended by striking ‘‘provide,’’ and all
that follows through ‘‘sought’’ and inserting ‘‘provide annu-
ally records acceptable to the Secretary regarding crop acre-
age, acreage yields, and production for each agricultural
commodity insured under this title’’.
(b) COORDINATION AND USE OF RECORDS AND RE-
PORTS.—Section 506(h) of the Federal Crop Insurance Act
(7 U.S.C. 1506(h)) is amended—
(1) by striking ‘‘The Corporation’’ and inserting
the following:
‘‘(1) IN GENERAL.—The Corporation’’; and
(2) by adding at the end the following:
‘‘(2) COORDINATION AND USE OF RECORDS AND
REPORTS.—
‘‘(A) COORDINATION.—The Secretary shall
ensure that recordkeeping and reporting require-
ments under this title and section 196 of the Ag-
ricultural Market Transition Act (7 U.S.C.
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7333) are coordinated by the Corporation and
the Farm Service Agency—
‘‘(i) to avoid duplication of records
and reports;
‘‘(ii) to streamline procedures involved
with the submission of records and reports;
and
‘‘(iii) to enhance the accuracy of
records and reports.
‘‘(B) USE.—Records submitted under this
title and section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333) shall be available
to agencies and local offices of the Department,
appropriate State and Federal agencies and di-
visions, and approved insurance providers for
use in carrying out this title, that section, and
other agricultural programs and related respon-
sibilities.’’.
SEC. 307. FEES FOR PLANS OF INSURANCE.
(a) IN GENERAL.—Section 508(h) of the Federal Crop
Insurance Act (7 U.S.C. 1508(h)) is amended by striking
paragraph (5) and inserting the following:
‘‘(5) FEES FOR PLANS OF INSURANCE.—
‘‘(A) FEES FOR EXISTING PLANS OF INSUR-
ANCE.—
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‘‘(i) IN GENERAL.—Effective beginning
with the 2001 reinsurance year, if an ap-
proved insurance provider elects to sell a
plan of insurance that was developed by an-
other approved insurance provider and the
plan of insurance was approved by the
Board before January 1, 2000, the approved
insurance provider that developed the plan
of insurance shall have the right to receive
a fee from the approved insurance provider
that elects to sell the plan of insurance.
‘‘(ii) AMOUNT.—The amount of the fee
that is payable by an approved insurance
provider for a plan of insurance under
clause (i) shall be—
‘‘(I) for each of the first 5 crop
years that the plan is sold, $2.00 for
each policy under the plan that is sold
by the approved insurance provider;
‘‘(II) for each of the next 3 crop
years that the plan is sold, $1.00 for
each policy under the plan that is sold
by the approved insurance provider;
and
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‘‘(III) for each crop year there-
after that the plan is sold, 50 cents for
each policy under the plan that is sold
by the approved insurance provider.
‘‘(B) FEES
FOR
NEW
PLANS
OF
INSUR-
ANCE.—
‘‘(i) IN GENERAL.—Effective beginning
with the 2001 reinsurance year, if an ap-
proved insurance provider elects to sell a
plan of insurance that was developed by an-
other approved insurance provider, the plan
of insurance was approved by the Board
under this subsection on or after January 1,
2000, and the plan of insurance was not
available at the time at which the plan of
insurance was approved by the Board, the
approved insurance provider that developed
the plan of insurance shall have the right to
receive a fee from the approved insurance
provider that elects to sell the plan of insur-
ance.
‘‘(ii) AMOUNT.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), the amount of the fee
that is payable by an approved insur-
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ance provider for a plan of insurance
under clause (i) shall be an amount
that is—
‘‘(aa) determined by the ap-
proved insurance provider that
developed the plan; and
‘‘(bb) approved by the Board.
‘‘(II) 
APPROVAL.—The 
Board
shall not approve the amount of a fee
under clause (i) if the amount of the
fee unnecessarily inhibits the use of the
plan of insurance, as determined by
the Board.
‘‘(C) PAYMENTS.—The Corporation shall
annually—
‘‘(i) collect from an approved insur-
ance provider the amount of any fees that
are payable by the approved insurance pro-
vider under subparagraphs (A) and (B);
and
‘‘(ii) credit any fees that are payable
to an approved insurance provider under
subparagraphs (A) and (B).
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‘‘(D) EXCEPTIONS.—In the case of a policy
developed by an approved insurance provider
that does not conduct business in a State—
‘‘(i) the approved policy may be mar-
keted in the State by another approved in-
surance provider if the approved insurance
provider marketing the policy pays any fee
for marketing the policy imposed by the de-
veloping provider; and
‘‘(ii) the developing provider shall not
deny payment of a fee by another provider
to maintain full marketing rights of the ap-
proved policy.’’.
(b) FUNDING.—Section 516 of the Federal Crop Insur-
ance Act (7 U.S.C. 1516) (as amended by sections 301(c)
and 303(b)) is amended—
(1) in subsection (b)(1), by adding at the end the
following:
‘‘(E) payment of fees in accordance with
section 508(h)(5)(C).’’; and
(2) in subsection (c)(1)(A), by inserting ‘‘and
fees’’ after ‘‘premium income’’.
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SEC. 308. LIMITATION ON DOUBLE INSURANCE.
Subsection (m) of section 508 of the Federal Crop In-
surance Act (7 U.S.C. 1508) (as redesignated by section
207(a)(2)) is amended by adding at the end the following:
‘‘(3) LIMITATION ON DOUBLE INSURANCE.—The
Corporation may offer plans of insurance or reinsur-
ance for only 1 agricultural commodity produced on
specific acreage during a crop year, unless—
‘‘(A) there is an established practice of dou-
ble-cropping in an area, as determined by the
Corporation;
‘‘(B) the additional plan of insurance is of-
fered with respect to an agricultural commodity
that is customarily double-cropped in the area;
and
‘‘(C) the producer has a history of double
cropping or the specific acreage has historically
been double-cropped.’’.
SEC. 309. SPECIALTY CROPS.
(a) IN GENERAL.—The Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) (as amended by sections 201 through
203) is amended by adding at the end the following:
‘‘SEC. 523. SPECIALTY CROPS.
‘‘(a) RESEARCH REGARDING THE DEVELOPMENT OF
NEW OR REVISED CROP INSURANCE POLICIES.—To encour-
age the development of new or revised crop insurance poli-
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cies and other materials for specialty crops by qualified pri-
vate entities, and the submission of those insurance policies
and other materials to the Corporation under section
508(h), the Specialty Crops Coordinator may—
‘‘(1) make grants on a competitive basis for the
research and development of plans of insurance for
underserved specialty crops;
‘‘(2) reimburse research costs associated with
product development; and
‘‘(3) enter into contracts on a competitive basis
for the research and development of plans of insur-
ance for underserved specialty crops.
‘‘(b) PARTNERSHIPS
FOR DEVELOPMENT
OF RISK
MANAGEMENT TOOLS FOR SPECIALTY CROPS.—
‘‘(1) PURPOSE.—The purpose of this subsection
is to authorize the Specialty Crops Coordinator, on
behalf of the Corporation, to enter into partnerships
with qualified public and private entities for the pur-
pose of increasing the availability of risk manage-
ment tools for producers of specialty crops.
‘‘(2) AUTHORITY.—
‘‘(A) IN GENERAL.—For each of fiscal years
2001 through 2004, the Corporation may use not
more than $20,000,000 from funds in the insur-
ance fund under section 516(c)(1) to enter into
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partnerships with the Cooperative State Re-
search, Education, and Extension Service, the
Agricultural Research Service, the National Oce-
anic and Atmospheric Administration, and other
appropriate public and private entities with
demonstrated capabilities in developing and im-
plementing risk management and marketing op-
tions for specialty crops.
‘‘(B) EXCLUSION.—Amounts necessary to
carry out subparagraph (A) shall not be counted
toward the limitation on research and develop-
ment 
expenses 
established 
in 
section
516(b)(2)(A).
‘‘(3) OBJECTIVES.—The Corporation may enter
into a partnership under this subsection to—
‘‘(A) enhance the notice, and timeliness of
notice of weather conditions, that could nega-
tively affect specialty crop yields, quality, and
final product use in order to allow producers to
take preventive actions to increase end-product
profitability and marketability and to reduce the
possibility of crop insurance claims;
‘‘(B) develop a multifaceted approach to
pest management to decrease inputs, decrease the
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development of pest resistance, and increase the
effectiveness of pest prevention applications;
‘‘(C) develop a multifaceted approach to fer-
tilization to decrease inputs, decrease excessive
nutrient loading to the environment, and in-
crease application efficiency;
‘‘(D) develop or improve techniques for
planning, breeding, growing, maintaining, har-
vesting, storage, and shipping that will address
quality and quantity challenges for specialty
crops and livestock associated with year-to-year
and regional variations;
‘‘(E) provide assistance to State foresters or
equivalent officials for the prescribed use of burn-
ing on private forest land for the prevention,
control, and suppression of fire; and
‘‘(F) develop other risk management tools
that specialty crop producers can use to further
increase their economic and production stability.
‘‘(c) TIME PERIODS FOR PURCHASE OF COVERAGE
FOR SPECIALTY CROPS.—
‘‘(1) SALES CLOSING DATE.—The sales closing
date for obtaining coverage for a specialty crop under
this title may not expire before the end of the 120-day
period beginning on the date of the final release of
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materials for policies from the Risk Management
Agency and the Specialty Crops Coordinator.
‘‘(2) PURCHASE DURING INSURANCE PERIOD.—A
producer of a specialty crop may purchase new cov-
erage or increase coverage levels for the specialty crop
at any time during the insurance period, subject to
a 30-day waiting period and an inspection by the in-
surance provider to verify acceptability by the insur-
ance provider, if the Corporation determines that the
risk associated with the crop can be adequately rated.
‘‘(d) STUDIES OF NEW SPECIALTY CROP INSURANCE
POLICIES.—
‘‘(1) IN
GENERAL.—The Corporation and the
Specialty Crops Coordinator authorized under section
507(g) shall jointly conduct studies of the feasibility
of developing new insurance policies for specialty
crops, including policies based on the cost of produc-
tion or adjusted gross income, quality-based policies,
or an intermediate program with a higher coverage
and cost than the catastrophic risk protection offered
on the date of enactment of this section.
‘‘(2) SUBMISSION OF RESULTS.—Not later than
1 year after the date of enactment of this section, and
annually thereafter, the Corporation and the Spe-
cialty Crops Coordinator shall submit to Congress a
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report containing the results of the studies required
under this subsection.
‘‘(e) FISCAL YEARS.—Subsections (b) and (c) shall
apply to each of fiscal years 2001 through 2004.’’.
(b) REPORT ON COVERAGE OF NEW AND SPECIALTY
CROPS AND METHOD FOR PROVISION OF CATASTROPHIC
RISK PROTECTION.—Not later than 180 days after the date
of enactment of this Act, the Secretary of Agriculture shall
submit to the President, the Committee on Agriculture of
the House of Representatives, and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report
assessing—
(1)(A) the progress made by the Department of
Agriculture in expanding crop insurance coverage for
new and specialty crops; and
(B) the plans of the Department to continue to
expand coverage for additional crops; and
(2)(A) whether provision of catastrophic risk
protection by private sector insurance providers—
(i) has resulted in a uniform quality of risk
protection services in all regions of the United
States; and
(ii) has fulfilled the goal of increased par-
ticipation in the Federal crop insurance pro-
gram, particularly in States with traditionally
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low crop insurance participation rates and
States with a high proportion of specialty crops;
and
(B) whether, particularly in States described in
subparagraph (A)(ii), the Secretary should resume di-
rect provision of catastrophic risk protection and per-
formance of loss adjustment functions through local
offices of the Department.
SEC. 310. FEDERAL CROP INSURANCE IMPROVEMENT COM-
MISSION.
Section 515 of the Federal Crop Insurance Act (7
U.S.C. 1515) is amended to read as follows:
‘‘SEC. 515. FEDERAL CROP INSURANCE IMPROVEMENT COM-
MISSION.
‘‘(a) DEFINITION.—In this section the term ‘Commis-
sion’ means the Federal Crop Insurance Improvement Com-
mission established by subsection (b).
‘‘(b) ESTABLISHMENT OF COMMISSION.—There is es-
tablished a Commission to be known as the ‘Federal Crop
Insurance Improvement Commission’.
‘‘(c) MEMBERSHIP.—
‘‘(1) IN
GENERAL.—The Commission shall be
composed of the following 15 members:
‘‘(A) The Under Secretary for Farm and
Foreign Agricultural Services of the Department.
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‘‘(B) The manager of the Corporation.
‘‘(C) The Chief Economist of the Depart-
ment or a person appointed by the Chief Econo-
mist.
‘‘(D) An employee of the Office of Manage-
ment and Budget, appointed by the Director of
the Office of Management and Budget.
‘‘(E) A representative of the National Asso-
ciation of Insurance Commissioners, experienced
in insurance regulation, appointed by the Sec-
retary.
‘‘(F) Representatives of 4 approved insur-
ance providers or related organizations that pro-
vide advisory or analytical support to the crop
insurance industry, appointed by the Secretary.
‘‘(G) 2 agricultural economists from aca-
demia, appointed by the Secretary.
‘‘(H) 4 representatives of major farm orga-
nizations and farmer-owned cooperatives, ap-
pointed by the Secretary.
‘‘(2) TIME OF APPOINTMENT.—The members of
the Commission shall be appointed not later than 60
days after the date of enactment of the Risk Manage-
ment for the 21st Century Act.
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‘‘(5) The use by the Corporation of private sector
resources under section 507(c).
‘‘(6) The progress of the Corporation in reducing
administrative and operating costs of approved insur-
ance providers under section 508(k)(5).
‘‘(7) The identification of methods, and of orga-
nizational, statutory, and structural changes, to en-
hance and improve—
‘‘(A) delivery of reasonably priced crop in-
surance products to agricultural producers;
‘‘(B) loss adjustment procedures;
‘‘(C) good farming practices;
‘‘(D) the establishment of premiums; and
‘‘(E) compliance with this title (including
regulations issued under this title, the terms and
conditions of insurance coverage, and adjust-
ments of losses).
‘‘(e) COMMISSION OPERATIONS.—
‘‘(1) CHAIRPERSON; VOTING.—The Under Sec-
retary for Farm and Foreign Agricultural Services of
the Department of Agriculture shall—
‘‘(A) serve as Chairperson of the Commis-
sion; and
‘‘(B) vote in the case of a tie.
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‘‘(2) MEETINGS.—The Commission shall meet
regularly, but not less than 6 times per year.
‘‘(3) DISCLOSURE.—To the extent that the
records, papers, or other documents received, pre-
pared, or maintained by the Commission are subject
to public disclosure, the documents shall be available
for public inspection and copying at the Office of
Risk Management.
‘‘(f) FINAL REPORT.—
‘‘(1) IN GENERAL.—Not later than 2 years after
the date of enactment of the Risk Management for the
21st Century Act, the Commission shall submit to the
Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a final report on the re-
view under subsection (d).
‘‘(2) COPIES.—The Commission shall provide
copies of the final report to—
‘‘(A) the Secretary; and
‘‘(B) the Board.
‘‘(3) INTERIM REPORTS.—To expedite completion
of the work of the Commission, the Commission may
submit 1 or more interim reports or reports on 1 or
more of the issues to be reviewed.
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‘‘(g) TERMINATION.—The Commission shall terminate
on the earlier of—
‘‘(1) 60 days after the date on which the Com-
mission submits the final report under subsection (f);
or
‘‘(2) September 30, 2004.
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as are nec-
essary to carry out this section.’’.
SEC. 311. HIGHLY ERODIBLE LAND AND WETLAND CON-
SERVATION.
(a) HIGHLY ERODIBLE LAND.—Section 1211(3) of the
Food Security Act of 1985 (16 U.S.C. 3811(3)) is
amended—
(1) in subparagraph (C), by striking ‘‘or’’ at the
end;
(2) in subparagraph (D), by striking the period
at the end and inserting ‘‘; or’’; and
(3) by adding at the following:
‘‘(E) crop or revenue insurance, or a risk
management payment, under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq).’’.
(b) WETLAND CONSERVATION.—Section 1221(b)(3) of
the Food Security Act of 1985 (16 U.S.C. 3821(b)(3)) is
amended by adding at the end the following:
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‘‘(E) Crop or revenue insurance, or a risk
management payment, under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq).’’.
SEC. 312. PROJECTED LOSS RATIO.
Section 506(o) of the Federal Crop Insurance Act (7
U.S.C. 1506(o)) is amended by striking paragraph (2) and
inserting the following:
‘‘(2) PROJECTED LOSS RATIO.—The Corporation
shall take such actions, including the establishment of
adequate premiums, as are necessary to improve the
actuarial soundness of Federal multiperil crop insur-
ance made available under this title to achieve—
‘‘(A) during the period beginning on Octo-
ber 1, 1998, and ending with the 2001 crop year,
an overall projected loss ratio of not greater than
1.075; and
‘‘(B) beginning with the 2002 crop year, an
overall projected loss ratio of not greater than
1.0.’’.
SEC. 313. COMPLIANCE WITH STATE LICENSING REQUIRE-
MENTS.
Section 508 of the Federal Crop Insurance Act (7
U.S.C. 1508) (as amended by section 207(a)(1)) is amended
by adding at the end the following:
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‘‘(n) COMPLIANCE WITH STATE LICENSING REQUIRE-
MENTS.—Any person that sells or solicits the purchase of
a policy or plan of insurance or adjusts losses under this
title, including catastrophic risk protection, in any State
shall be licensed and otherwise qualified to do business in
that State, and shall comply with all State regulation of
such sales and solicitation activities (including commission
and anti-rebating regulations), as required by the appro-
priate insurance regulator of the State in accordance with
the relevant insurance laws of the State.’’.
TITLE IV—MISCELLANEOUS
PROVISIONS
SEC. 401. IMPROVED RISK MANAGEMENT EDUCATION.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is
amended by adding at the end the following:
‘‘SEC. 409. IMPROVED RISK MANAGEMENT EDUCATION FOR
AGRICULTURAL PRODUCERS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) CENTER.—The term ‘Center’ means a Risk
Management Education Coordinating Center estab-
lished under subsection (c)(1).
‘‘(2) LAND-GRANT
COLLEGE.—The term ‘land-
grant college’ means any 1862 Institution, 1890 In-
stitution, or 1994 Institution.
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‘‘(b) PROGRAM.—
‘‘(1) IN
GENERAL.—The Secretary shall carry
out a program to improve the risk management skills
of agricultural producers, including the owners and
operators of small farms, limited resource producers,
and other targeted audiences, to make informed risk
management decisions.
‘‘(2) PURPOSE.—The program shall be designed
to assist a producer to develop the skills necessary—
‘‘(A) to understand the financial health and
capability of the producer’s operation to with-
stand price fluctuations, adverse weather, envi-
ronmental impacts, diseases, family crises, and
other risks;
‘‘(B) to understand marketing alternatives,
how various commodity markets work, the use of
crop insurance products, and the price risk in-
herent in various markets; and
‘‘(C) to understand legal, governmental, en-
vironmental, and human resource issues that im-
pact the producer’s operation.
‘‘(c) COORDINATING CENTERS.—
‘‘(1) ESTABLISHMENT AND PURPOSE.—The Sec-
retary shall establish a Risk Management Education
Coordinating Center in each of 5 regions of the
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United States (as determined by the Secretary) to ad-
minister and coordinate the provision of risk manage-
ment education to producers and their families under
the program in that region.
‘‘(2) SITE SELECTION.—
‘‘(A) IN GENERAL.—The Secretary shall lo-
cate the Center for a region at—
‘‘(i) a risk management education co-
ordinating office of the Cooperative State
Research, Education, and Extension Service
that is in existence at a land-grant college
on the date of enactment of this section; or
‘‘(ii) an appropriate alternative land-
grant college in the region approved by the
Secretary.
‘‘(B) LAND-GRANT
COLLEGES.—To be se-
lected as the location for a Center, a land-grant
college must have the demonstrated capability
and capacity to carry out the priorities, funding
distribution requirements, and reporting require-
ments of the program.
‘‘(d) COORDINATING COUNCIL.—
‘‘(1) ESTABLISHMENT.—Each Center shall estab-
lish a coordinating council to assist in establishing
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the funding and program priorities for the region for
which the Center was established.
‘‘(2) MEMBERSHIP.—Each council shall consist
of a minimum of 5 members, including representa-
tives from—
‘‘(A) public organizations;
‘‘(B) private organizations;
‘‘(C) agricultural producers; and
‘‘(D) the Regional Service Offices of the
Risk Management Agency in that region.
‘‘(e) CENTER ACTIVITIES.—
‘‘(1) INSTRUCTION FOR RISK MANAGEMENT PRO-
FESSIONALS.—Each Center shall coordinate the offer-
ing of intensive risk management instructional pro-
grams, involving classroom learning, distant learn-
ing, and field training work, for professionals who
work with agricultural producers, including profes-
sionals who are—
‘‘(A) extension specialists;
‘‘(B) county extension faculty members;
‘‘(C) private service providers; and
‘‘(D) other individuals involved in pro-
viding risk management education.
‘‘(2) EDUCATION PROGRAMS FOR PRODUCERS.—
Each Center shall coordinate the provision of edu-
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cational 
programs, 
including 
workshops, 
short
courses, seminars, and distant-learning modules, to
improve the risk management skills of agricultural
producers and their families.
‘‘(3) DEVELOPMENT AND DISSEMINATION OF MA-
TERIALS.—Each Center shall coordinate the efforts to
develop new risk management education materials
and the dissemination of such materials.
‘‘(4) COORDINATION OF RESOURCES.—
‘‘(A) IN GENERAL.—Each Center shall make
use of available and emerging risk management
information, materials, and delivery systems,
after careful evaluation of the content and suit-
ability of the information, materials, and deliv-
ery systems for producers and their families.
‘‘(B) USE OF AVAILABLE EXPERTISE.—To
assist in conducting the evaluation under sub-
paragraph (A), each Center shall use available
expertise from land-grant colleges, nongovern-
mental organizations, government agencies, and
the private sector.
‘‘(f) GRANTS.—
‘‘(1) SPECIAL GRANTS.—Each Center shall re-
serve a portion of the funds provided under this sec-
tion to make special grants to land-grant colleges and
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private entities in the region to conduct 1 or more of
the activities described in subsection (e).
‘‘(2) COMPETITIVE GRANTS.—Each Center shall
reserve a portion of the funds provided under this sec-
tion to conduct a competitive grant program to
award grants to both public and private entities that
have a demonstrated capability to conduct 1 or more
of the activities described in subsection (e).
‘‘(g) NATIONAL AGRICULTURE RISK EDUCATION LI-
BRARY.—The National Agriculture Risk Education Library
shall—
‘‘(1) serve as a central agency for the coordina-
tion and distribution of risk management educational
materials; and
‘‘(2) provide a means for the electronic delivery
of risk management information and materials.
‘‘(h) FUNDING PROVISIONS.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this section $30,000,000 for fiscal year 2001 and each
subsequent fiscal year.
‘‘(2) DISTRIBUTION.—
‘‘(A) NATIONAL
AGRICULTURE
RISK
EDU-
CATION LIBRARY.—For each fiscal year, of the
funds made available to carry out this section,
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2.5 percent shall be distributed to the National
Agriculture Risk Education Library.
‘‘(B) CENTERS.—For each fiscal year, the
remainder of the funds made available to carry
out this section shall be distributed equally
among the Centers.
‘‘(C) ADMINISTRATION BY LAND-GRANT COL-
LEGES.—The land-grant college at which a Cen-
ter is located shall be responsible for admin-
istering and disbursing funds described in sub-
paragraph (B), in accordance with applicable
State and Federal financial guidelines, for ac-
tivities authorized by this section.
‘‘(3) PROHIBITION ON CONSTRUCTION.—
‘‘(A) LOCATION OF CENTERS.—Each Center
shall be located in a facility in existence on the
date of enactment of this section.
‘‘(B) PROHIBITION.—Funds provided under
this section shall not be used to carry out con-
struction of any facility.
‘‘(i) EVALUATION.—The Secretary, acting through the
Cooperative State Research, Education, and Extension
Service, shall evaluate the activities of each Center to deter-
mine whether the risk management skills of agricultural
producers and their families are improved as a result of
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their participation in educational activities financed using
funds made available under subsection (h).’’.
SEC. 402. SENSE OF THE SENATE REGARDING THE FEDERAL
CROP INSURANCE PROGRAM.
It is the sense of the Senate that—
(1) farmer-owned cooperatives play a valuable
role in achieving the purposes of the Federal Crop In-
surance Act (7 U.S.C. 1501 et seq.) by—
(A) encouraging producer participation in
the Federal crop insurance program;
(B) improving the delivery system for crop
insurance; and
(C) helping to develop new and improved
insurance products;
(2) the Risk Management Agency, through its
regulatory activities, should encourage efforts by
farmer-owned cooperatives to promote appropriate
risk management strategies among their membership;
(3) partnerships between approved insurance
providers and farmer-owned cooperatives provide op-
portunity for agricultural producers to obtain needed
insurance coverage on a more competitive basis and
at a lower cost;
(4) the Risk Management Agency is following an
appropriate regulatory process to ensure the contin-
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ued participation by farmer-owned cooperatives in
the delivery of crop insurance;
(5) efforts by the Risk Management Agency to fi-
nalize regulations that would incorporate the cur-
rently approved business practices of cooperatives
participating in the Federal crop insurance program
should be commended; and
(6) not later than 180 days after the date of en-
actment of this Act, the Federal Crop Insurance Cor-
poration should complete promulgation of the pro-
posed rule entitled ‘‘General Administrative Regula-
tions; Premium Reductions; Payment of Rebates,
Dividends, and Patronage Refunds; and Payments to
Insured-Owned and Record-Controlling Entities’’,
published by the Federal Crop Insurance Corporation
on May 12, 1999 (64 Fed. Reg. 25464), in a manner
that—
(A) effectively responds to comments re-
ceived from the public during the rulemaking
process;
(B) provides an effective opportunity for
farmer-owned cooperatives to assist the members
of the cooperatives to obtain crop insurance and
participate most effectively in the Federal crop
insurance program;
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(C) incorporates the currently approved
business practices of farmer-owned cooperatives
participating in the Federal crop insurance pro-
gram; and
(D) protects the interests of agricultural
producers.
SEC. 403. SENSE OF CONGRESS ON RALLY FOR RURAL
AMERICA AND RURAL CRISIS.
(a) FINDINGS.—Congress finds that—
(1) on March 20–21, 2000, thousands of rural
citizens, working families, and those representing the
environmental and religious communities traveled to
Washington, D.C., to participate in the Rally for
Rural America;
(2) a broad coalition of over 30 farm, environ-
mental, and labor organizations that are concerned
that rural America has been left behind during this
time of prosperity participated in organizing the
Rally for Rural America;
(3) although the majority of America has reaped
the benefits of the strong economy, rural Americans
are facing their toughest times in recent memory;
(4) the record low prices on farms and ranches
of the United States have rippled throughout rural
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America causing rural communities to face numerous
challenges, including—
(A) a depressed farm economy;
(B) an escalation of mergers and acquisi-
tions;
(C) a loss of businesses and jobs on rural
main street;
(D) erosion of health care and education;
(E) a decline in infrastructure;
(F) a reduction of capital investments; and
(G) a loss of independent family farmers;
(5) the Rally for Rural America urged Congress
to reform the Federal Agriculture Improvement and
Reform Act of 1996 (Public Law 104–127) to formu-
late rural policies in a manner that will alleviate the
agricultural price crisis, ensure fair and open mar-
kets, and encourage fair trade;
(6) thousands of rural citizens have advocated
farm policies that include—
(A) a strong safety net for all agricultural
producers;
(B) competitive markets;
(C) an investment in rural education and
health care;
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(D) protection of natural resources for the
next generation;
(E) a safe and secure food supply;
(F) revitalization of our farm families and
rural communities; and
(G) fair and equitable implementation of
government programs;
(7) because agricultural commodity prices are so
far below the costs of production, eventually family
farmers will no longer be able to pay their bills or
provide for their families;
(8) anti-competitive practices and concentration
are a cause of concern for American agriculture;
(9) rural America needs a fair and well reasoned
farm policy, not unpredictable and inequitable dis-
aster payments;
(10) disaster payments do not provide for real,
meaningful change; and
(11) the economic conditions and pressures in
rural America require real change.
(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
(1) the participants in the Rally for Rural
America are commended and their pleas have been
heard; and
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(2) Congress should respond with a clear and
strong message to the participants and rural families
that Congress is committed to giving the crisis in ag-
riculture, and all of rural America, its full attention
by reforming rural policies in a manner that will—
(A) alleviate the agricultural price crisis;
(B) ensure competitive markets;
(C) invest in rural education and health
care;
(D) protect our natural resources for future
generations; and
(E) ensure a safe and secure food supply for
all.
TITLE V—EFFECTIVE DATES;
TERMINATION OF AUTHORITY
SEC. 501. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsections
(b) and (c)(2) and section 502(a), this Act and the amend-
ments made by this Act take effect on the date of enactment
of this Act.
(b) DELAYED OBLIGATION.—The Federal Crop Insur-
ance Corporation shall not obligate funds to carry out sub-
section (c)(2) and the amendments made by sections 102,
103, 105, 106, 201 through 207, 309, and 310 until October
1, 2000.
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(c) REGULATIONS.—
(1) IN GENERAL.—Not later than 60 days after
the date of enactment of this Act, the Secretary of Ag-
riculture shall promulgate regulations to carry out
this Act and the amendments made by this Act.
(2) INDEMNITY
PAYMENTS
FOR
CERTAIN
PRO-
DUCERS OF DURUM WHEAT.—
(A) IN GENERAL.—Except as otherwise pro-
vided in this paragraph, notwithstanding section
508(c)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)(5)), a producer of durum wheat
that purchased a 1999 Crop Revenue Coverage
wheat policy by the sales closing date prescribed
in the actuarial documents in the county where
the policy was sold shall receive an indemnity
payment in accordance with the policy.
(B) BASE AND HARVEST PRICES.—The base
price and harvest price under the policy shall be
determined in accordance with the Commodity
Exchange Endorsement for wheat published by
the Federal Crop Insurance Corporation on July
14, 1998 (63 Fed. Reg. 37829).
(C) REINSURANCE.—Subject to subpara-
graph (B), notwithstanding section 508(c)(5) of
the Federal Crop Insurance Act (7 U.S.C.
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1508(c)(5)), the Corporation shall provide rein-
surance with respect to the policy in accordance
with the Standard Reinsurance Agreement.
(D) 
VOIDING
OF
BULLETIN.—Bulletin
MGR–99–004, issued by the Administrator of the
Risk Management Agency of the Department of
Agriculture, is void.
(E) EFFECTIVE
DATE.—This paragraph
takes effect on October 1, 2000.
SEC. 502. TERMINATION OF AUTHORITY.
(a) EFFECTIVE DATE.—This section and the amend-
ments made by this section take effect on September 30,
2004.
(b) REPEAL.—
(1) IN GENERAL.—The amendments made by sec-
tions 102, 103, 105, 106, 203(b), and 310 are re-
pealed.
(2) APPLICABILITY.—The Federal Crop Insur-
ance Act (7 U.S.C. 1501 et seq.) and section 196 of
the Agricultural Market Transition Act (7 U.S.C.
7333) shall be applied and administered as if the pro-
visions described in paragraph (1) had not been en-
acted.
(3) CONFORMING AMENDMENT.—Section 508(a)
of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
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is amended by redesignating paragraph (8) (as added
by section 107) and paragraph (9) (as added by sec-
tion 305) as paragraph (7) and paragraph (8), re-
spectively.
(c) PILOT PROGRAMS.—Section 522 of the Federal
Crop Insurance Act (as added by sections 201, 202, 203,
205, and 206) is amended—
(1) in subsection (a)—
(A) in paragraph (3)—
(i) in subparagraph (D), by adding
‘‘and’’ at the end;
(ii) by striking subparagraphs (E) and
(G);
(iii) in subparagraph (F), by striking
‘‘; and’’ and inserting a period; and
(iv) by redesignating subparagraph (F)
as subparagraph (E);
(B) by striking paragraphs (4), (6), and
(7); and
(C) by redesignating paragraphs (5) and
(8) as paragraphs (4) and (5), respectively;
(2) in subsection (b)—
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively; and
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(3) by striking subsections (c), (d), and (e).
(d) BOARD OF DIRECTORS OF CORPORATION.—Section
516(b)(1) of the Federal Crop Insurance Act (7 U.S.C.
1516(b)(1)) (as amended by sections 301(c) and 307(b)(1))
is amended—
(1) in subparagraph (C), by inserting ‘‘and’’
after the semicolon;
(2) by striking subparagraph (D); and
(3) by redesignating subparagraph (E) as sub-
paragraph (D).
(e) SPECIALTY CROPS.—
(1) IN GENERAL.—Section 523 of the Federal
Crop Insurance Act (as added by section 309(a)) is
amended—
(A) in subsection (b)—
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2);
(B) by striking subsections (c) and (e); and
(C) by redesignating subsection (d) as sub-
section (c).
(2) REPORT.—Section 309 of this Act is amend-
ed by striking subsection (b).
(f) FUNDING.—Neither the Secretary of Agriculture
nor the Federal Crop Insurance Corporation may use the
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funds of the insurance fund under section 516(c)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)), the
funds of the Commodity Credit Corporation, or funds under
any provision of law to carry out a provision repealed or
struck by this section.
Attest:
Secretary.
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