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SEC. 1905. ADMINISTRATIVE FEE.
Section 508(b)(5) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)(5)) is amended—
(1) in subparagraph (A), by striking ‘‘$100’’ and
inserting ‘‘$200’’; and
(2) in subparagraph (B)—
(A) by striking ‘‘PAYMENT ON BEHALF OF
PRODUCERS’’ and inserting ‘‘PAYMENT OF CATA-
STROPHIC RISK PROTECTION FEE ON BEHALF OF
PRODUCERS’’;
(B) in clause (i)—
(i) by striking ‘‘or other payment’’;
and
(ii) by striking ‘‘with catastrophic risk
protection or additional coverage’’ and in-
serting ‘‘through the payment of cata-
strophic 
risk 
protection 
administrative
fees’’;
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and
(v) as clauses (ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by
striking ‘‘A policy or plan of insurance’’ and in-
serting ‘‘Catastrophic risk protection coverage’’;
and
(F) in clause (iv) (as so redesignated)—
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(i) by striking ‘‘or other arrangement
under this subparagraph’’; and
(ii) by striking ‘‘additional’’.
SEC. 1906. TIME FOR PAYMENT.
Section 508 of the Federal Crop Insurance Act (7
U.S.C. 1508) is amended—
(1) in subsection (d), by adding at the end the
following:
‘‘(4) TIME FOR PAYMENT.—Effective beginning
with the 2012 reinsurance year, a producer that ob-
tains a policy or plan of insurance under this title
shall submit the required premium not later than
September 30 of the year for which the plan or policy
of insurance was obtained.’’; and
(2) in subsection (k)(4), by adding at the end the
following:
‘‘(D) TIME
FOR
REIMBURSEMENT.—Effec-
tive beginning with the 2012 reinsurance year,
the Corporation shall reimburse approved insur-
ance providers and agents for the allowable ad-
ministrative and operating costs of the providers
and agents as soon as practicable after October
1 (but not later than October 31) of the reinsur-
ance 
year 
for 
which 
reimbursements 
are
earned.’’.
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SEC. 1907. SURCHARGE PROHIBITION.
Section 508(d) of the Federal Crop Insurance Act (7
U.S.C. 1508(d)) (as amended by section 1906(1)) is amend-
ed by adding at the end the following:
‘‘(5) SURCHARGE PROHIBITION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Corporation may not re-
quire producers to pay a premium surcharge for
using scientifically-sound sustainable and or-
ganic farming practices and systems.
‘‘(B) EXCEPTION.—
‘‘(i) IN GENERAL.—A surcharge may
be required for individual organic crops on
the basis of significant, consistent, and sys-
temic increased risk factors (including loss
history) demonstrated by published crop-
ping system research (as applied to crop
types and regions) and other relevant
sources of information.
‘‘(ii) CONSULTATION.—The Corpora-
tion shall evaluate the reliability of infor-
mation described in clause (i) in consulta-
tion with independent experts in the field.’’.
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SEC. 1908. PREMIUM REDUCTION PLAN.
Section 508(e) of Federal Crop Insurance Act (7
U.S.C. 1508(e)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) DISCOUNT STUDY.—
‘‘(A) IN
GENERAL.—The Secretary shall
commission an entity independent of the crop in-
surance industry (with expertise that includes
traditional crop insurance) to study the feasi-
bility of permitting approved insurance pro-
viders to provide discounts to producers pur-
chasing crop insurance coverage without under-
mining the viability of the Federal crop insur-
ance program.
‘‘(B) 
COMPONENTS.—The 
study 
should
include—
‘‘(i) an evaluation of the operation of
a premium reduction plan that examines—
‘‘(I) the clarity, efficiency, and ef-
fectiveness of the statutory language
and related regulations;
‘‘(II) whether the regulations frus-
trated the goal of offering producers
upfront, predictable, and reliable pre-
mium discount payments; and
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‘‘(III) whether the regulations
provided for reasonable, cost-effective
oversight by the Corporation of pre-
mium discounts offered by approved
insurance providers, including—
‘‘(aa) whether the savings
were generated from verifiable cost
efficiencies adequate to offset the
cost of discounts paid; and
‘‘(bb) whether appropriate
control was exercised to prevent
approved 
insurance 
providers
from preferentially offering the
discount to producers of certain
agricultural commodities, in cer-
tain regions, or in specific size
categories;
‘‘(ii) examination of the impact on
producers, the crop insurance industry, and
profitability from offering discounted crop
insurance to producers;
‘‘(iii) examination of implications for
industry concentration from offering dis-
counted crop insurance to producers;
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‘‘(iv) an examination of the desir-
ability and feasibility of allowing other
forms of price competition in the Federal
crop insurance program;
‘‘(v) a review of the history of commis-
sions paid by crop insurance providers; and
‘‘(vi) recommendations on—
‘‘(I) potential changes to this title
that would address the deficiencies in
past efforts to provide discounted crop
insurance to producers,
‘‘(II) whether approved insurance
providers should be allowed to draw on
both administrative and operating re-
imbursement and underwriting gains
to provide discounted crop insurance to
producers; and
‘‘(III) any other action that could
increase competition in the crop insur-
ance industry that will benefit pro-
ducers but not undermine the viability
of the Federal crop insurance program.
‘‘(C) REQUEST FOR PROPOSALS.—In devel-
oping the request for proposals for the study, the
Secretary shall consult with parties in the crop