Union Calendar No. 179
106TH CONGRESS
1ST SESSION
H. R. 2559
[Report No. 106–300]
A BILL
To amend the Federal Crop Insurance Act to
strengthen the safety net for agricultural pro-
ducers by providing greater access to more af-
fordable risk management tools and improved
protection from production and income loss, to
improve the efficiency and integrity of the Fed-
eral crop insurance program, and for other pur-
poses.
AUGUST 5, 1999
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
IB
Union Calendar No. 179
106TH CONGRESS
1ST SESSION
H. R. 2559
[Report No. 106–300]
To amend the Federal Crop Insurance Act to strengthen the safety net
for agricultural producers by providing greater access to more affordable
risk management tools and improved protection from production and
income loss, to improve the efficiency and integrity of the Federal crop
insurance program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1999
Mr. COMBEST (for himself, Mr. EWING, Mr. BARRETT of Nebraska, Mr.
BLUNT, Mr. CANADY of Florida, Mr. WHITFIELD, Mr. BEREUTER, Mr.
SESSIONS, and Mr. HAYES) introduced the following bill; which was re-
ferred to the Committee on Agriculture
AUGUST 5, 1999
Additional sponsors: Mr. HILL of Montana, Mr. GILMAN, Mr. SMITH of
Michigan, and Mr. COOKSEY
AUGUST 5, 1999
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on July 20, 1999]
A BILL
To amend the Federal Crop Insurance Act to strengthen
the safety net for agricultural producers by providing
greater access to more affordable risk management tools
and improved protection from production and income
loss, to improve the efficiency and integrity of the Fed-
eral crop insurance program, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Ag-
ricultural Risk Protection Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—STRENGTHENING THE FARM SAFETY NET
Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Adjustment in actual production history to establish insurable yields.
Sec. 104. Review and adjustment in rating methodologies.
Sec. 105. Conduct of pilot programs, including livestock.
Sec. 106. Cost of production as a price election.
Sec. 107. Premium discounts for good performance.
Sec. 108. Options for catastrophic risk protection.
Sec. 109. Authority for nonprofit associations to pay fees on behalf of producers.
Sec. 110. Elections regarding prevented planting coverage.
Sec. 111. Limitations under noninsured crop disaster assistance program.
Sec. 112. Quality grade loss adjustment.
Sec. 113. Application of amendments.
TITLE II—IMPROVING PROGRAM INTEGRITY
Sec. 201. Limitation on double insurance.
Sec. 202. Improving program compliance and integrity.
Sec. 203. Sanctions for false information.
Sec. 204. Protection of confidential information.
Sec. 205. Records and reporting.
Sec. 206. Compliance with State licensing requirements.
TITLE III—ADMINISTRATION
Sec. 301. Board of Directors of Corporation.
Sec. 302. Promotion of submission of policies and related materials.
Sec. 303. Research and development, including contracts regarding underserved
commodities.
Sec. 304. Funding for reimbursement and research and development.
Sec. 305. Board consideration of submitted policies and materials.
Sec. 306. Contracting for rating of plans of insurance.
Sec. 307. Electronic availability of crop insurance information.
Sec. 308. Fees for use of new policies and plans of insurance.
Sec. 309. Clarification of producer requirement to follow good farming practices.
Sec. 310. Reimbursements and negotiation of standard reinsurance agreement.
TITLE I—STRENGTHENING THE
FARM SAFETY NET
SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COV-
ERAGE.
(a) PREMIUM AMOUNTS.—Section 508(d)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is
amended by striking subparagraphs (B) and (C) and in-
serting the following new subparagraph:
‘‘(B) In the case of additional coverage
equal to or greater than 50 percent of the re-
corded or appraised average yield indemnified at
not greater than 100 percent of the expected mar-
ket price, or an equivalent coverage, 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.’’.
(b) PAYMENT SCHEDULE.—Section 508(e)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is
amended by striking subparagraphs (B) and (C) and in-
serting the following new subparagraphs:
‘‘(B) In the case of additional coverage
equal to or greater than 50 percent, but less than
55 percent, of the recorded or appraised average
yield indemnified at not greater than 100 per-
cent of the expected market price, or an equiva-
lent coverage, the amount shall be equal to the
sum of—
‘‘(i) 67 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and admin-
istrative expenses.
‘‘(C) In the case of additional coverage
equal to or greater than 55 percent, but less than
65 percent, of the recorded or appraised average
yield indemnified at not greater than 100 per-
cent of the expected market price, or an equiva-
lent coverage, the amount shall be equal to the
sum of—
‘‘(i) 64 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and admin-
istrative expenses.
‘‘(D) In the case of additional coverage
equal to or greater than 65 percent, but less than
75 percent, of the recorded or appraised average
yield indemnified at not greater than 100 per-
cent of the expected market price, or an equiva-
lent coverage, the amount shall be equal to the
sum of—
‘‘(i) 59 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and admin-
istrative expenses.
‘‘(E) In the case of additional coverage
equal to or greater than 75 percent, but less than