H. R. 4217
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-four
An Act
To reform the Federal crop insurance program, and for other purposes.
Be it enacted by the Senate and House of Representatives 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 ‘‘Federal Crop
Insurance Reform and Department of Agriculture Reorganization
Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I—FEDERAL CROP INSURANCE REFORM
Sec. 101. Short title; references.
Sec. 102. Definitions.
Sec. 103. Members of Board of Directors of Corporation.
Sec. 104. General powers.
Sec. 105. Personnel.
Sec. 106. Crop insurance.
Sec. 107. Crop insurance yield coverage.
Sec. 108. Preemption.
Sec. 109. Advisory Committee.
Sec. 110. Funding.
Sec. 111. Noninsured crop disaster assistance.
Sec. 112. Payment and income limitations.
Sec. 113. Producer eligibility.
Sec. 114. Ineligibility for catastrophic risk and noninsured assistance payments.
Sec. 115. Elimination of gender references.
Sec. 116. Prevented planting.
Sec. 117. Report on improving dissemination of crop insurance information.
Sec. 118. Crop insurance provider evaluation.
Sec. 119. Conforming amendments.
Sec. 120. Effective date.
TITLE II—DEPARTMENT OF AGRICULTURE REORGANIZATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Subtitle A—General Reorganization Authorities
Sec. 211. Transfer of Department functions to Secretary of Agriculture.
Sec. 212. Authority of Secretary to delegate transferred functions.
Sec. 213. Reductions in number of department personnel.
Sec. 214. Consolidation of headquarters offices.
Sec. 215. Combination of field offices.
Sec. 216. Improvement of information sharing.
Sec. 217. Reports by the Secretary.
Sec. 218. Assistant Secretaries of Agriculture.
Sec. 219. Pay increases prohibited.
Subtitle B—Farm and Foreign Agricultural Services
Sec. 225. Under Secretary of Agriculture for Farm and Foreign Agricultural Serv-
ices.
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Sec. 226. Consolidated Farm Service Agency.
Sec. 227. State, county, and area committees.
Subtitle C—Rural Economic and Community Development
Sec. 231. Under Secretary of Agriculture for Rural Economic and Community De-
velopment.
Sec. 232. Rural Utilities Service.
Sec. 233. Rural Housing and Community Development Service.
Sec. 234. Rural Business and Cooperative Development Service.
Sec. 235. Conforming amendments regarding Rural Electrification Administration.
Subtitle D—Food, Nutrition, and Consumer Services
Sec. 241. Under Secretary of Agriculture for Food, Nutrition, and Consumer Serv-
ices.
Subtitle E—Natural Resources and Environment
Sec. 245. Under Secretary of Agriculture for Natural Resources and Environment.
Sec. 246. Natural Resources Conservation Service.
Sec. 247. Reorganization of Forest Service.
Subtitle F—Research, Education, and Economics
Sec. 251. Under Secretary of Agriculture for Research, Education, and Economics.
Sec. 252. Program staff.
Subtitle G—Food Safety
Sec. 261. Under Secretary of Agriculture for Food Safety.
Sec. 262. Conditions for implementation of alterations in the level of additives al-
lowed in animal diets.
Subtitle H—National Appeals Division
Sec. 271. Definitions.
Sec. 272. National Appeals Division and Director.
Sec. 273. Transfer of functions.
Sec. 274. Notice and opportunity for hearing.
Sec. 275. Informal hearings.
Sec. 276. Right of participants to Division hearing.
Sec. 277. Division hearings.
Sec. 278. Director review of determinations of hearing officers.
Sec. 279. Judicial review.
Sec. 280. Implementation of final determinations of Division.
Sec. 281. Conforming amendments relating to National Appeals Division.
Sec. 282. Expansion of issues covered by State mediation programs.
Sec. 283. Authorization of appropriations.
Subtitle I—Miscellaneous Reorganization Provisions
Sec. 291. Successorship provisions relating to bargaining units and exclusive rep-
resentatives.
Sec. 292. Purchase of American-made equipment and products.
Sec. 293. Miscellaneous conforming amendments.
Sec. 294. Removal of obsolete administrative provisions.
Sec. 295. Proposed conforming amendments.
Sec. 296. Termination of authority.
TITLE III—MISCELLANEOUS
Sec. 301. Poultry labeling.
Sec. 302. First Amendment rights of employees of the United States Department
of Agriculture.
Sec. 303. Adjusted cost of thrifty food plan.
Sec. 304. Office of Risk Assessment and Cost-Benefit Analysis.
Sec. 305. Fair and equitable treatment of socially disadvantaged producers.
Sec. 306. Aviation inspections.
TITLE I—FEDERAL CROP INSURANCE
REFORM
SEC. 101. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This title may be cited as the ‘‘Federal
Crop Insurance Reform Act of 1994’’.
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(b) REFERENCES TO FEDERAL CROP INSURANCE ACT.—Except
as otherwise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).
SEC. 102. DEFINITIONS.
(a) IN GENERAL.—Section 502 (7 U.S.C. 1502) is amended—
(1) by striking the section heading and ‘‘SEC. 502.’’ and
inserting the following:
‘‘SEC. 502. PURPOSE AND DEFINITIONS.
‘‘(a) PURPOSE.—’’; and
(2) by adding at the end the following new subsection:
‘‘(b) DEFINITIONS.—As used in this title:
‘‘(1) ADDITIONAL COVERAGE.—The term ‘additional coverage’
means a plan of crop insurance coverage providing a level
of coverage greater than the level available under catastrophic
risk protection.
‘‘(2) APPROVED INSURANCE PROVIDER.—The term ‘approved
insurance provider’ means a private insurance provider that
has been approved by the Corporation to provide insurance
coverage to producers participating in the Federal crop insur-
ance program established under this title.
‘‘(3) BOARD.—The term ‘Board’ means the Board of Direc-
tors of the Corporation established under section 505(a).
‘‘(4) CORPORATION.—The term ‘Corporation’ means the Fed-
eral Crop Insurance Corporation established under section 503.
‘‘(5) DEPARTMENT.—The term ‘Department’ means the
United States Department of Agriculture.
‘‘(6) LOSS RATIO.—The term ‘loss ratio’ means the ratio
of all sums paid by the Corporation as indemnities under any
eligible crop insurance policy to that portion of the premium
designated for anticipated losses and a reasonable reserve,
other than that portion of the premium designated for operating
and administrative expenses.
‘‘(7) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘(8) TRANSITIONAL
YIELD.—The term ‘transitional yield’
means the maximum average production per acre or equivalent
measure that is assigned to acreage for a crop year by the
Corporation in accordance with the regulations of the Corpora-
tion whenever the producer fails—
‘‘(A) to certify that acceptable documentation of produc-
tion and acreage for the crop year is in the possession
of the producer; or
‘‘(B) to present the acceptable documentation on the
demand of the Corporation or an insurance company
reinsured by the Corporation.’’.
(b) CONFORMING AMENDMENTS.—
(1) The first sentence of section 503 (7 U.S.C. 1503) is
amended by striking ‘‘(herein called the Corporation)’’.
(2) Section 504 (7 U.S.C. 1504) is amended—
(A) in subsection (a), by striking ‘‘Board of Directors
of the Corporation’’ and inserting ‘‘Board’’; and
(B) in subsection (d), by striking ‘‘Federal Crop Insur-
ance Corporation’’ and inserting ‘‘Corporation’’.
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(3) The first sentence of section 505(a) (7 U.S.C. 1505(a))
is amended by striking ‘‘(hereinafter called the ‘Board’)’’.
(4) Except in section 502, the Act is amended—
(A) by striking ‘‘Board of Directors’’ each place it
appears and inserting ‘‘Board’’;
(B) by striking ‘‘Department of Agriculture’’ each place
it appears and inserting ‘‘Department’’; and
(C) by striking ‘‘Secretary of Agriculture’’ each place
it appears and inserting ‘‘Secretary’’.
SEC. 103. MEMBERS OF BOARD OF DIRECTORS OF CORPORATION.
The second sentence of section 505(a) (7 U.S.C. 1505(a)) is
amended—
(1) by striking ‘‘or Assistant Secretary’’ the first place it
appears; and
(2) by striking ‘‘the Under Secretary or Assistant Secretary
of Agriculture responsible for the farm credit programs of the
Department of Agriculture’’ and inserting ‘‘one additional Under
Secretary of Agriculture (as designated by the Secretary of
Agriculture)’’.
SEC. 104. GENERAL POWERS.
Section 506 (7 U.S.C. 1506) is amended—
(1) by redesignating subsections (j) through (n) as sub-
sections (k) through (o), respectively;
(2) by inserting after subsection (i) the following new
subsection:
‘‘(j) SETTLING CLAIMS.—The Corporation shall have the author-
ity to make final and conclusive settlement and adjustment of
any claim by or against the Corporation or a fiscal officer of the
Corporation.’’;
(3) in subsection (l) (as so redesignated)—
(A) in the first sentence, by inserting ‘‘, and issue
regulations,’’ after ‘‘agreements’’; and
(B) in the second sentence, by striking ‘‘contracts or
agreements’’ each place it appears and inserting ‘‘contracts,
agreements, or regulations’’;
(4) in subsection (n)(1) (as so redesignated), by striking
subparagraph (B) and inserting the following new subpara-
graph:
‘‘(B) disqualify the person from purchasing catastrophic
risk protection or receiving noninsured assistance for a
period of not to exceed 2 years, or from receiving any
other benefit under this title for a period of not to exceed
10 years.’’;
(5) in subsection (o) (as so redesignated)—
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D) and aligning the margins
of each subparagraph with the margins of subparagraph
(A) of subsection (n)(1) (as redesignated by paragraph (1));
(B) by striking ‘‘(o) ACTUARIAL SOUNDNESS.—The Cor-
poration’’ and inserting the following:
‘‘(o) ACTUARIAL SOUNDNESS.—
‘‘(1) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1995.—The
Corporation’’;
(C) in subparagraph (A) (as redesignated by subpara-
graph (A)), by striking ‘‘from obtaining adequate Federal
crop insurance, as determined by the Corporation’’ and
H. R. 4217—5
inserting ‘‘(as defined by the Secretary) from obtaining
Federal crop insurance’’;
(D) in subparagraph (C) (as so redesignated)—
(i) by inserting ‘‘, agents, and loss adjusters’’ after
‘‘participating producers’’; and
(ii) by inserting ‘‘, agents, and loss adjusters’’ after
‘‘identify insured producers’’; and
(E) by adding at the end the following new paragraphs:
‘‘(2) PROJECTED LOSS RATIO AS OF OCTOBER 1, 1998.—The
Corporation shall take such actions, including the establish-
ment of adequate premiums, as are necessary to improve the
actuarial soundness of Federal multiperil crop insurance made
available under this title to achieve, on and after Octo-
ber 1, 1998, an overall projected loss ratio of not greater than
1.075.
‘‘(3) NONSTANDARD CLASSIFICATION SYSTEM.—To the extent
that the Corporation uses the nonstandard classification sys-
tem, the Corporation shall apply the system to all insured
producers in a fair and consistent manner.’’; and
(6) by adding at the end the following new subsections:
‘‘(p) REGULATIONS.—The Secretary and the Corporation are each
authorized to issue such regulations as are necessary to carry
out this title.
‘‘(q) PROGRAM COMPLIANCE.—
‘‘(1) TIMELINESS.—The Corporation shall work actively with
approved insurance providers to address program compliance
and integrity issues as the issues develop.
‘‘(2) NOTIFICATION OF COMPLIANCE PROBLEMS.—The Cor-
poration shall notify in writing any approved insurance provider
with whom the Corporation has an agreement under this title
of any error, omission, or failure to follow Corporation regula-
tions or procedures for which the approved insurance provider
may be responsible and which may result in a debt owed
the Corporation. The notice shall be given within 3 years of
the end of the insurance period during which the error, omis-
sion, or failure is alleged to have occurred, except that this
time limit shall not apply with respect to errors, omissions,
or procedural violations that are willful or intentional. The
failure to timely provide the notice required under this sub-
section shall relieve the approved insurance provider from the
debt owed the Corporation.
‘‘(r) 
PURCHASE
OF
AMERICAN-MADE
EQUIPMENT
AND
PRODUCTS.—
‘‘(1) SENSE OF CONGRESS.—It is the sense of Congress that,
to the greatest extent practicable, all equipment and products
purchased by the Corporation using funds made available to
the Corporation should be American-made.
‘‘(2) NOTICE REQUIREMENT.—In providing financial assist-
ance to, or entering into any contract with, any entity for
the purchase of equipment and products to carry out this title,
the Corporation, to the greatest extent practicable, shall provide
to the entity a notice describing the statement made in
paragraph (1).’’.
SEC. 105. PERSONNEL.
Section 507 (7 U.S.C. 1507) is amended—
H. R. 4217—6
(1) in subsection (a), by striking ‘‘, and county crop insur-
ance committeemen’’;
(2) in subsection (d), by striking ‘‘of this Act,’’ and all
that follows through ‘‘agency’’; and
(3) by adding at the end the following new subsection:
‘‘(g)(1) The Corporation shall establish a management-level posi-
tion to be known as the Specialty Crops Coordinator.
‘‘(2) The Specialty Crops Coordinator shall have primary respon-
sibility for addressing the needs of specialty crop producers, and
for providing information and advice, in connection with the activi-
ties of the Corporation to improve and expand the insurance pro-
gram for specialty crops. In carrying out this paragraph, the
Specialty Crops Coordinator shall act as the liaison of the Corpora-
tion with representatives of specialty crop producers and assist
the Corporation with the knowledge, expertise, and familiarity of
the producers with risk management and production issues pertain-
ing to specialty crops.
‘‘(3) The Specialty Crops Coordinator shall use information
collected from Corporation field office directors in States in which
specialty crops have a significant economic effect and from other
sources, 
including 
the 
extension 
service 
and 
colleges 
and
universities.’’.
SEC. 106. CROP INSURANCE.
Section 508 (7 U.S.C. 1508) is amended to read as follows:
‘‘SEC. 508. CROP INSURANCE.
‘‘(a) AUTHORITY TO OFFER INSURANCE.—
‘‘(1) IN GENERAL.—If sufficient actuarial data are available
(as determined by the Corporation), the Corporation may
insure, or provide reinsurance for insurers of, producers of
agricultural commodities grown in the United States under
1 or more plans of insurance determined by the Corporation
to be adapted to the agricultural commodity concerned. To
qualify for coverage under a plan of insurance, the losses of
the insured commodity must be due to drought, flood, or other
natural disaster (as determined by the Secretary).
‘‘(2) PERIOD.—Except in the cases of tobacco and potatoes,
insurance shall not extend beyond the period during which
the insured commodity is in the field. As used in the preceding
sentence, in the case of an aquacultural species, the term
‘field’ means the environment in which the commodity is pro-
duced.
‘‘(3) EXCLUSIONS.—Insurance provided under this sub-
section shall not cover losses due to—
‘‘(A) the neglect or malfeasance of the producer;
‘‘(B) the failure of the producer to reseed to the same
crop in such areas and under such circumstances as it
is customary to reseed; or
‘‘(C) the failure of the producer to follow good farming
practices (as determined by the Secretary).
‘‘(4) EXPANSION TO OTHER AREAS OR SINGLE PRODUCERS.—
‘‘(A) AREA
EXPANSION.—The Corporation may offer
plans of insurance or reinsurance for production of agricul-
tural commodities in the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micronesia,
H. R. 4217—7
and the Republic of Palau in the same manner as provided
in this section for production of agricultural commodities
in the United States.
‘‘(B) PRODUCER EXPANSION.—In an area in the United
States or specified in subparagraph (A) where crop insur-
ance is not available for a particular agricultural commod-
ity, the Corporation may offer to enter into a written
agreement with an individual producer operating in the
area for insurance coverage under this title if the producer
has actuarially sound data relating to the production by
the producer of the commodity and the data is acceptable
to the Corporation.
‘‘(5) DISSEMINATION OF CROP INSURANCE INFORMATION.—
The Corporation shall make available to producers through
local offices of the Department—
‘‘(A) current and complete information on all aspects
of Federal crop insurance; and
‘‘(B) a listing of insurance agents and companies offer-
ing to sell crop insurance in the area of the producers.
‘‘(6) ADDITION OF NEW AND SPECIALTY CROPS.—
‘‘(A) DATA COLLECTION.—Not later than 180 days after
the date of enactment of this paragraph, the Secretary
shall issue guidelines for publication in the Federal Reg-
ister for data collection to assist the Corporation in formu-
lating crop insurance policies for new and specialty crops.
‘‘(B) ADDITION OF NEW CROPS.—Not later than 1 year
after the date of enactment of this paragraph, and annually
thereafter, the Corporation shall report to Congress on
the progress and expected timetable for expanding crop
insurance coverage under this title to new and specialty
crops.
‘‘(C) ADDITION OF DIRECT SALE PERISHABLE CROPS.—
Not later than 1 year after the date of enactment of this
paragraph, the Corporation shall report to Congress on
the feasibility of offering a crop insurance program designed
to meet the needs of specialized producers of vegetables
and other perishable crops who market through direct
marketing channels.
‘‘(b) CATASTROPHIC RISK PROTECTION.—
‘‘(1) IN
GENERAL.—The Corporation shall offer a cata-
strophic risk protection plan to indemnify producers for crop
loss due to loss of yield or prevented planting, if provided
by the Corporation, when the producer is unable, because of
drought, flood, or other natural disaster (as determined by
the Secretary), to plant other crops for harvest on the acreage
for the crop year.
‘‘(2) AMOUNT OF COVERAGE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B)—
‘‘(i) in the case of each of the 1995 through 1998
crop years, catastrophic risk protection shall offer a
producer coverage for a 50 percent loss in yield, on
an individual yield or area yield basis, indemnified
at 60 percent of the expected market price, or a com-
parable coverage (as determined by the Corporation);
and
‘‘(ii) in the case of each of the 1999 and subsequent
crop years, catastrophic risk protection shall offer a
H. R. 4217—8
producer coverage for a 50 percent loss in yield, on
an individual yield or area yield basis, indemnified
at 55 percent of the expected market price, or a com-
parable coverage (as determined by the Corporation).
‘‘(B) REDUCTION
IN
ACTUAL
PAYMENT.—The amount
paid to a producer on a claim under catastrophic risk
protection may reflect a reduction that is proportional to
the out-of-pocket expenses that are not incurred by the
producer as a result of not planting, growing, or harvesting
the crop for which the claim is made, as determined by
the Corporation.
‘‘(3) YIELD AND LOSS BASIS.—A producer shall have the
option of basing the catastrophic coverage of the producer on
an individual yield and loss basis or on an area yield and
loss basis, if both options are offered by the Corporation.
‘‘(4) SALE OF CATASTROPHIC RISK COVERAGE.—
‘‘(A) IN GENERAL.—Catastrophic risk coverage may be
offered by—
‘‘(i) approved insurance providers, if available in
an area; and
‘‘(ii) at the option of the Secretary that is based
on considerations of need, local offices of the
Department.
‘‘(B) NEED.—For purposes of considering need under
subparagraph (A)(ii), the Secretary may take into account
the most efficient and cost-effective use of resources, the
availability of personnel, fairness to local producers, the
needs and convenience of local producers, and the
availability of private insurance carriers.
‘‘(5) ADMINISTRATIVE FEE.—
‘‘(A) FEE REQUIRED.—Producers shall pay an adminis-
trative fee for catastrophic risk protection. The administra-
tive fee for each producer shall be $50 per crop per county,
but not to exceed $200 per producer per county up to
a maximum of $600 per producer for all counties in which
a producer has insured crops. The administrative fee shall
be paid by the producer at the time the producer applies
for catastrophic risk protection.
‘‘(B) USE OF FEES.—
‘‘(i) FEES UP TO $100.—
‘‘(I) FEES COLLECTED BY USDA OFFICES.—Not
more than $100 of the administrative fees paid
by a producer for catastrophic risk coverage that
are collected by an office of the Department shall
be credited to the appropriations account providing
funds for the payment of operating and administra-
tive expenses incurred for the delivery of cata-
strophic risk protection under this section. The
fees shall be collected in accordance with appro-
priation Acts and shall be available until expended
without fiscal year limitation for the payment of
the expenses.
‘‘(II) FEES COLLECTED BY APPROVED INSURANCE
PROVIDERS.—Not more than $100 of the adminis-
trative fees paid by a producer for catastrophic
risk coverage that are collected by an approved
insurance provider shall be retained by the pro-
H. R. 4217—9
vider as payment for operating and administrative
expenses incurred for the delivery of catastrophic
risk protection.
‘‘(ii) FEES IN EXCESS OF $100.—Notwithstanding the
authority granted to the Secretary under the Federal
Crop Insurance Corporation account provisions of the
Agricultural, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations
Act, 1995, all fees collected under this subsection in
excess of $100 per producer per county shall be depos-
ited in the crop insurance fund established under
section 516(c), to be available for the programs and
activities of the Corporation.
‘‘(C) WAIVER OF FEE.—The Corporation shall waive the
administrative fee for limited resource farmers, as defined
by the Corporation.
‘‘(6) PARTICIPATION REQUIREMENT.—A producer may obtain
catastrophic risk coverage for a crop of the producer on land
in the county only if the producer obtains the coverage for
the crop on all insurable land of the producer in the county.
‘‘(7) ELIGIBILITY FOR DEPARTMENT PROGRAMS.—
‘‘(A) IN GENERAL.—To be eligible for any price support
or production adjustment program, the conservation
reserve program, or any benefit described in section 371
of the Consolidated Farm and Rural Development Act,
the producer must obtain at least the catastrophic level
of insurance for each crop of economic significance grown
on each farm in the county in which the producer has
an interest, if insurance is available in the county for
the crop.
‘‘(B) DEFINITION OF CROP OF ECONOMIC SIGNIFICANCE.—
As used in this paragraph, the term ‘crop of economic
significance’ means a crop that has contributed, or is
expected to contribute, 10 percent or more of the total
expected value of all crops grown by the producer.
‘‘(8) LIMITATION DUE TO RISK.—The Corporation may limit
catastrophic risk coverage in any county or area, or on any
farm, on the basis of the insurance risk concerned.
‘‘(9) TRANSITIONAL
COVERAGE
FOR
1995
CROPS.—Effective
only for a 1995 crop planted or for which insurance attached
prior to January 1, 1995, the Corporation shall allow producers
of the crops until not later than the end of the 180-day period
beginning on the date of enactment of the Federal Crop Insur-
ance Reform Act of 1994 to obtain catastrophic risk protection
for the crop. On enactment of such Act, a producer who made
timely purchases of a crop insurance policy before the date
of enactment of such Act, under the provisions of this title
then in effect, shall be eligible for the same benefits to which
a producer would be entitled under comparable additional cov-
erage under subsection (c).
‘‘(10) SIMPLIFICATION.—
‘‘(A) CATASTROPHIC RISK PROTECTION PLANS.—In devel-
oping and carrying out the policies and procedures for
a catastrophic risk protection plan under this title, the
Corporation shall, to the maximum extent practicable,
minimize the paperwork required and the complexity and
H. R. 4217—10
costs of procedures governing applications for, processing,
and servicing of the plan for all parties involved.
‘‘(B) OTHER PLANS.—To the extent that the policies
and procedures developed under subparagraph (A) may
be applied to other plans of insurance offered under this
title without jeopardizing the actuarial soundness or integ-
rity of the crop insurance program, the Corporation shall
apply the policies and procedures to the other plans of
insurance within a reasonable period of time (as determined
by the Corporation) after the effective date of this
paragraph.
‘‘(c) GENERAL COVERAGE LEVELS.—
‘‘(1) ADDITIONAL COVERAGE GENERALLY.—
‘‘(A) IN
GENERAL.—The Corporation shall offer to
producers of agricultural commodities grown in the United
States plans of crop insurance that provide additional
coverage.
‘‘(B) PURCHASE.—To be eligible for additional coverage,
a producer must apply to an approved insurance provider
for purchase of additional coverage if the coverage is avail-
able from an approved insurance provider. If additional
coverage is unavailable privately, the Corporation may offer
additional coverage plans of insurance directly to producers.
‘‘(2) TRANSFER OF RELEVANT INFORMATION.—If a producer
has already applied for catastrophic risk protection at the local
office of the Department and elects to purchase additional
coverage, the relevant information for the crop of the producer
shall be transferred to the approved insurance provider servic-
ing the additional coverage crop policy.
‘‘(3) YIELD AND LOSS BASIS.—A producer shall have the
option of purchasing additional coverage based on an individual
yield and loss basis or on an area yield and loss basis, if
both options are offered by the Corporation.
‘‘(4) LEVEL OF COVERAGE.—The level of coverage shall be
dollar denominated and may be purchased at any level not
to exceed 85 percent of the individual yield or 95 percent
of the area yield (as determined by the Corporation). Not later
than the beginning of the 1996 crop year, the Corporation
shall provide producers with information on catastrophic risk
and additional coverage in terms of dollar coverage (within
the allowable limits of coverage provided in this paragraph).
‘‘(5) PRICE LEVEL.—The Corporation shall establish a price
level for each commodity on which insurance is offered that—
‘‘(A) shall not be less than the projected market price
for the commodity (as determined by the Corporation);
or
‘‘(B) at the discretion of the Corporation, may be based
on the actual market price at the time of harvest (as
determined by the Corporation).
‘‘(6) PRICE ELECTIONS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), insur-
ance coverage shall be made available to a producer on
the basis of any price election that equals or is less than
the price election established by the Corporation. The cov-
erage shall be quoted in terms of dollars per acre.
H. R. 4217—11
‘‘(B) MINIMUM PRICE ELECTIONS.—The Corporation may
establish minimum price elections below which levels of
insurance shall not be offered.
‘‘(C) WHEAT CLASSES AND MALTING BARLEY.—The Cor-
poration shall, as the Corporation determines practicable,
offer producers different price elections for classes of wheat
and malting barley (including contract prices in the case
of malting barley), in addition to the standard price elec-
tion, that reflect different market prices, as determined
by the Corporation. The Corporation shall, as the Corpora-
tion determines practicable, offer additional coverage for
each class determined under this subparagraph and charge
a premium for each class that is actuarially sound.
‘‘(7) FIRE AND HAIL COVERAGE.—For levels of additional
coverage equal to 65 percent or more of the recorded or
appraised average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage, a producer
may elect to delete from the additional coverage any coverage
against damage caused by fire and hail if the producer obtains
an equivalent or greater dollar amount of coverage for damage
caused by fire and hail from an approved insurance provider.
On written notice of the election to the company issuing the
policy providing additional coverage and submission of evidence
of substitute coverage on the commodity insured, the premium
of the producer shall be reduced by an amount determined
by the Corporation to be actuarially appropriate, taking into
account the actuarial value of the remaining coverage provided
by the Corporation. In no event shall the producer be given
credit for an amount of premium determined to be greater
than the actuarial value of the protection against losses caused
by fire and hail that is included in the additional coverage
for the crop.
‘‘(8) STATE
PREMIUM
SUBSIDIES.—The Corporation may
enter into an agreement with any State or agency of a State
under which the State or agency may pay to the approved
insurance provider an additional premium subsidy to further
reduce the portion of the premium paid by producers in the
State.
‘‘(9) LIMITATIONS
ON
ADDITIONAL
COVERAGE.—The Board
may limit the availability of additional coverage under this
subsection in any county or area, or on any farm, on the
basis of the insurance risk involved. The Board shall not offer
additional coverage equal to less than 50 percent of the recorded
or appraised average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage.
‘‘(10) ADMINISTRATIVE FEE.—
‘‘(A) FEE REQUIRED.—Except as otherwise provided in
this paragraph, if a producer elects to purchase additional
coverage for a crop at a level that is less than 65 percent
of the recorded or appraised average yield indemnified
at 100 percent of the expected market price, or an equiva-
lent coverage, the producer shall pay an administrative
fee for the additional coverage. Subsection (b)(5) shall apply
in determining the amount and use of the administrative
fee or in determining whether to waive the administrative
fee.
H. R. 4217—12
‘‘(B) EXCEPTION.—If a producer elects to purchase addi-
tional coverage for a crop equal to 65 percent or more
of the recorded or appraised average yield indemnified
at 100 percent of the expected market price, or an equiva-
lent coverage, the producer shall not be subject to the
administrative fee required by this paragraph or subsection
(b)(5). If the producer has already paid the administrative
fee for a lower level of coverage for the crop, the administra-
tive fee shall be refunded to the producer unless the refund
would reduce to less than $200 the total amount of the
administrative fees paid by the producer for 2 or more
crops in the same county for which a lower level of coverage
is obtained.
‘‘(C) ADDITIONAL FEE.—If a producer elects to purchase
additional coverage for a crop equal to or exceeding 65
percent of the recorded or appraised average yield and
100 percent of the expected market price or an equivalent
coverage, the producer shall pay an administrative fee of
$10 for the coverage. If a producer has already paid an
administrative fee for lesser coverage for the crop, the
fee for lesser coverage shall be refunded to the producer
unless the producer has paid the maximum fee for lesser
coverage and refund of the fee will not reduce the amount
to be paid below the maximum amount.
‘‘(D) DEPOSIT OF FEES.—Notwithstanding the authority
granted to the Secretary under the Federal Crop Insurance
Corporation account provisions of the Agricultural, Rural
Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1995, administrative fees col-
lected under subparagraph (B) in excess of $100 per pro-
ducer per county and under subparagraph (C) shall be
deposited in the insurance fund established under section
516(c) to be available for the programs and activities of
the Corporation.
‘‘(d) PREMIUMS.—
‘‘(1) PREMIUMS REQUIRED.—The Corporation shall fix ade-
quate premiums for all the plans of insurance of the Corporation
at such rates as the Board determines are actuarially sufficient
to attain an expected loss ratio of not greater than 1.1 through
September 30, 1998, and not greater than 1.075 after Octo-
ber 1, 1998.
‘‘(2) PREMIUM AMOUNTS.—The premium amounts for cata-
strophic risk protection under subsection (b) and additional
coverage under subsection (c) shall be fixed as follows:
‘‘(A) In the case of catastrophic risk protection, the
amount of the premium shall be sufficient to cover antici-
pated losses and a reasonable reserve.
‘‘(B) In the case of additional coverage below 65 percent
of the recorded or appraised average yield indemnified
at 100 percent of the expected market price, or an equiva-
lent coverage, but greater than 50 percent of the recorded
or appraised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage, the
amount of the premium shall—
‘‘(i) be sufficient to cover anticipated losses and
a reasonable reserve; and
H. R. 4217—13
‘‘(ii) include an amount for operating and adminis-
trative expenses, as determined by the Corporation.
‘‘(C) In the case of additional coverage equal to or
greater than 65 percent of the recorded or appraised aver-
age yield indemnified at 100 percent of the expected market
price, or an equivalent coverage, the amount of the pre-
mium shall—
‘‘(i) be sufficient to cover anticipated losses and
a reasonable reserve; and
‘‘(ii) include an amount for operating and adminis-
trative 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.
‘‘(e) PAYMENT
OF PORTION
OF PREMIUM
BY CORPORATION.—
‘‘(1) IN
GENERAL.—For the purpose of encouraging the
broadest possible participation of producers in the catastrophic
risk protection provided under subsection (b) and the additional
coverage provided under subsection (c), the Corporation shall
pay a part of the premium in the amounts provided in accord-
ance with this subsection.
‘‘(2) AMOUNT OF PAYMENT.—The amount of the premium
to be paid by the Corporation shall be as follows:
‘‘(A) In the case of catastrophic risk protection, the
amount shall be equivalent to the premium established
for catastrophic risk protection under subsection (d)(2)(A).
‘‘(B) In the case of coverage below 65 percent of the
recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent
coverage, but greater than 50 percent of the recorded or
appraised average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage, the
amount shall be equivalent to the amount of premium
established for catastrophic risk protection coverage and
the amount of operating and administrative expenses estab-
lished under subsection (d)(2)(B).
‘‘(C) In the case of coverage equal to or greater than
65 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price,
or an equivalent coverage, on an individual or area basis,
the amount shall be equivalent to an amount equal to
the premium established for 50 percent loss in yield indem-
nified at 75 percent of the expected market price and
the amount of operating and administrative expenses estab-
lished under subsection (d)(2)(C).
‘‘(3) PREMIUM REDUCTION.—If an approved insurance pro-
vider determines that the provider may provide insurance more
efficiently than the expense reimbursement amount established
by the Corporation, the approved insurance provider may
reduce, subject to the approval of the Corporation, the premium
charged the insured by an amount corresponding to the effi-
ciency. The approved insurance provider shall apply to the
Corporation for authority to reduce the premium before making
such a reduction, and the reduction shall be subject to the
rules, 
limitations, 
and 
procedures 
established 
by 
the
Corporation.
‘‘(4) INDIVIDUAL AND AREA CROP INSURANCE COVERAGE.—
The Corporation shall allow approved insurance providers to
H. R. 4217—14
offer a plan of insurance to producers that combines both
individual yield coverage and area yield coverage at a premium
rate determined by the provider under the following conditions:
‘‘(A) The individual yield coverage shall be equal to
or greater than catastrophic risk protection as described
in subsection (b).
‘‘(B) The combined policy shall include area yield cov-
erage that is offered by the Corporation or similar area
coverage, as determined by the Corporation.
‘‘(C) The Corporation shall provide reinsurance on the
area yield portion of the combined policy at the request
of the provider, except that the provider shall agree to
pay to the producer any portion of the area yield and
loss indemnity payment received from the Corporation or
a commercial reinsurer that exceeds the individual indem-
nity payment made by the provider to the producer.
‘‘(D) The Corporation shall pay a part of the premium
equivalent to—
‘‘(i) the amount authorized under paragraph (2)
(except provisions regarding operating and administra-
tive expenses); and
‘‘(ii) the amount of operating and administrative
expenses authorized by the Corporation for the area
yield coverage portion of the combined policy.
‘‘(E) The provider shall provide all underwriting serv-
ices for the combined policy, including the determination
of individual yield coverage premium rates, the terms and
conditions of the policy, and the acceptance and classifica-
tion of applicants into risk categories, subject to subpara-
graph (F).
‘‘(F) The Corporation shall approve the combined policy
unless the Corporation determines that the policy is not
actuarially sound or that the interests of producers are
not adequately protected.
‘‘(f) ELIGIBILITY.—
‘‘(1) IN
GENERAL.—To participate in catastrophic risk
protection coverage under this section, a producer shall submit
an application at the local office of the Department or to an
approved insurance provider.
‘‘(2) SALES CLOSING DATE.—For coverage under this title,
each producer shall purchase crop insurance on or before the
sales closing date for the crop by providing the required
information and executing the required documents. Subject to
the goal of ensuring actuarial soundness for the crop insurance
program, the sales closing date shall be established by the
Corporation to maximize convenience to producers in obtaining
benefits under price and production adjustment programs of
the Department. Beginning with the 1995 crop year, the Cor-
poration shall establish, for an insurance policy for each insur-
able crop that is planted in the spring, a sales closing date
that is 30 days earlier than the corresponding sales closing
date that was established for the 1994 crop year.
‘‘(3) RECORDS AND REPORTING.—To obtain catastrophic risk
protection under subsection (b) or additional coverage under
subsection (c), a producer shall—
‘‘(A) provide, to the extent required by the Corporation,
records acceptable to the Corporation of historical acreage
H. R. 4217—15
and production of the crops for which the insurance is
sought or accept a yield determined by the Corporation;
and
‘‘(B) report acreage planted and prevented from plant-
ing by the designated acreage reporting date for the crop
and location as established by the Corporation.
‘‘(g) YIELD DETERMINATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Corporation
shall establish crop insurance underwriting rules that ensure
that yield coverage, as specified in this subsection, is provided
to eligible producers obtaining catastrophic risk protection
under subsection (b) or additional coverage under subsection
(c).
‘‘(2) YIELD COVERAGE PLANS.—
‘‘(A) 
ACTUAL
PRODUCTION
HISTORY.—Subject 
to
subparagraph (B), the yield for a crop shall be based on
the actual production history for the crop, if the crop was
produced on the farm without penalty during each of the
4 crop years immediately preceding the crop year for which
actual production history is being established, building up
to a production data base for each of the 10 consecutive
crop years preceding the crop year for which actual produc-
tion history is being established.
‘‘(B) ASSIGNED YIELD.—If the producer does not provide
satisfactory evidence of the yield of a commodity under
subparagraph (A), the producer shall be assigned a yield
that is not less than 65 percent of the transitional yield
of the producer (adjusted to reflect actual production
reflected in the records acceptable to the Corporation for
continuous years), as specified in regulations issued by
the Corporation based on production history requirements.
‘‘(C) AREA YIELD.—The Corporation may offer a crop
insurance plan based on an area yield that allows an
insured producer to qualify for an indemnity if a loss has
occurred in an area (as specified by the Corporation) in
which the farm of the producer is located. Under an area
yield plan, an insured producer shall be allowed to select
the level of area production at which an indemnity will
be paid consistent with such terms and conditions as are
established by the Corporation.
‘‘(D) COMMODITY-BY-COMMODITY
BASIS.—A producer
may choose between individual yield or area yield coverage
or combined coverage (as provided in subsection (e)(4)),
if available, on a commodity-by-commodity basis.
‘‘(3) TRANSITIONAL
YIELDS
FOR
PRODUCERS
OF
FEED
OR
FORAGE.—
‘‘(A) IN GENERAL.—If a producer does not provide satis-
factory evidence of a yield under paragraph (2)(A), the
producer shall be assigned a yield that is at least 80
percent of the transitional yield established by the Corpora-
tion (adjusted to reflect the actual production history of
the producer) if the Secretary determines that—
‘‘(i) the producer grows feed or forage primarily
for on-farm use in a livestock, dairy, or poultry oper-
ation; and
‘‘(ii) over 50 percent of the net farm income of
the producer is derived from the operation.
H. R. 4217—16
‘‘(B) YIELD CALCULATION.—The Corporation shall—
‘‘(i) for the first year of participation of a producer,
provide the assigned yield under this paragraph to
the producer of feed or forage; and
‘‘(ii) for the second year of participation of the
producer, apply the actual production history or
assigned yield requirement, as provided in this
subsection.
‘‘(C) TERMINATION OF AUTHORITY.—The authority pro-
vided by this paragraph shall terminate on the date that
is 3 years after the effective date of this paragraph.
‘‘(h) SUBMISSION OF POLICIES AND MATERIALS TO BOARD.—
‘‘(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 prepare for
submission or propose to the Board—
‘‘(A) other crop insurance policies and provisions of
policies; and
‘‘(B) rates of premiums for multiple peril crop insurance
pertaining to wheat, soybeans, field corn, and any other
crops determined by the Secretary.
‘‘(2) SUBMISSION OF POLICIES.—A policy or other material
submitted to the Board under this subsection may be prepared
without regard to the limitations contained in this title, includ-
ing the requirements concerning the levels of coverage and
rates and the requirement that a price level for each commodity
insured must equal the expected market price for the commod-
ity as established by the Board. In the case of such a policy,
the payment by the Corporation of a portion of the premium
of the policy may not exceed the amount that would otherwise
be authorized under subsection (e).
‘‘(3) REVIEW AND APPROVAL BY THE BOARD.—A policy or
other material submitted to the Board under this subsection
shall be reviewed by the Board and, if the Board finds that
the interests of producers are adequately protected and that
any premiums charged to the producers are actuarially appro-
priate, shall be approved by the Board for reinsurance and
for sale to producers as an additional choice at actuarially
appropriate rates and under appropriate terms and conditions.
The Corporation may enter into more than 1 reinsurance agree-
ment with the approved insurance provider simultaneously to
facilitate the offering of the new policies.
‘‘(4) GUIDELINES FOR SUBMISSION AND REVIEW.—The Cor-
poration shall issue regulations to establish guidelines for the
submission, and Board review, of policies or other material
submitted to the Board under this subsection. At a minimum,
the guidelines shall ensure the following:
‘‘(A) A proposal submitted to the Board under this
subsection shall be considered as confidential commercial
or financial information for purposes of section 552(b)(4)
of title 5, United States Code, until approved by the Board.
A proposal disapproved by the Board shall remain confiden-
tial commercial or financial information.
‘‘(B) The Board shall provide an applicant with the
opportunity to present the proposal to the Board in person
if the applicant so desires.
H. R. 4217—17
‘‘(C) The Board shall provide an applicant with notifica-
tion of intent to disapprove a proposal not later than 30
days prior to making the disapproval. An applicant that
receives the notification may modify the application of the
applicant. Any modification shall be considered an original
application for purposes of this paragraph.
‘‘(D) Specific guidelines shall prescribe the timing of
submission of proposals under this subsection and timely
consideration by the Board so that any approved proposal
may be made available to all persons reinsured by the
Corporation in a manner permitting the persons to partici-
pate, if the persons so desire, in offering such a proposal
in the first crop year in which the proposal is approved
by the Board for reinsurance, premium subsidy, or other
support offered by this title.
‘‘(5) REQUIRED
PUBLICATION.—Any policy, provision of a
policy, or rate approved under this subsection shall be published
as a notice in the Federal Register and made available to
all persons contracting with or reinsured by the Corporation
under the terms and conditions of the contract between the
Corporation and the person originally submitting the policy
or other material.
‘‘(6) PILOT COST OF PRODUCTION RISK PROTECTION PLAN.—
‘‘(A) IN GENERAL.—The Corporation shall offer, to the
extent practicable, a cost of production risk protection plan
of insurance that indemnifies producers (including new
producers) for insurable losses as provided in this para-
graph.
‘‘(B) PILOT BASIS.—The cost of production risk protec-
tion plan shall—
‘‘(i) be established as a pilot project for each of
the 1996 and 1997 crop years; and
‘‘(ii) be carried out in a number of counties that
is determined by the Corporation to be adequate to
provide a comprehensive evaluation of the feasibility,
effectiveness, and demand among producers for the
plan.
‘‘(C) INSURABLE
LOSS.—An insurable loss shall be
incurred by a producer if the gross income of the producer
(as determined by the Corporation) is less than an amount
determined by the Corporation, as a result of a reduction
in yield or price resulting from an insured cause.
‘‘(D) DEFINITION OF NEW PRODUCER.—As used in this
paragraph, the term ‘new producer’ means a person that
has not been actively engaged in farming for a share of
the production of the insured crop for more than 2 crop
years, as determined by the Secretary.
‘‘(7) ADDITIONAL PREVENTED PLANTING POLICY COVERAGE.—
‘‘(A) IN GENERAL.—Beginning with the 1995 crop year,
the Corporation shall offer to producers additional pre-
vented planting coverage that insures producers against
losses in accordance with this paragraph.
‘‘(B) APPROVED INSURANCE PROVIDERS.—Additional pre-
vented planting coverage shall be offered by the Corpora-
tion through approved insurance providers.
‘‘(C) TIMING OF LOSS.—A crop loss shall be covered
by the additional prevented planting coverage if—
H. R. 4217—18
‘‘(i) crop insurance policies were obtained for—
‘‘(I) the crop year the loss was experienced;
and
‘‘(II) the crop year immediately preceding the
year of the prevented planting loss; and
‘‘(ii) the cause of the loss occurred—
‘‘(I) after the sales closing date for the crop
in the crop year immediately preceding the loss;
and
‘‘(II) before the sales closing date for the crop
in the year in which the loss is experienced.
‘‘(8) PILOT
PROGRAM
OF
ASSIGNED
YIELDS
FOR
NEW
PRODUCERS.—
‘‘(A) PROGRAM REQUIRED.—For each of the 1995 and
1996 crop years, the Corporation shall carry out a pilot
program to assign to eligible new producers higher assigned
yields than would otherwise be assigned to the producers
under subsection (g). The Corporation shall include in the
pilot program 30 counties that are determined by the Cor-
poration to be adequate to provide a comprehensive evalua-
tion of the feasibility, effectiveness, and demand among
new producers for increased assigned yields.
‘‘(B) INCREASED ASSIGNED YIELDS.—In the case of an
eligible new producer participating in the pilot program,
the Corporation shall assign to the new producer a yield
that is equal to not less than 110 percent of the transitional
yield otherwise established by the Corporation.
‘‘(C) ELIGIBLE
NEW
PRODUCER.—The Secretary shall
establish a definition of new producer for purposes of deter-
mining eligibility to participate in the pilot program.
‘‘(i) ADOPTION
OF RATES
AND COVERAGES.—The Corporation
shall adopt, as soon as practicable, rates and coverages that will
improve the actuarial soundness of the insurance operations of
the Corporation for those crops that are determined to be insured
at rates that are not actuarially sound, except that no rate may
be increased by an amount of more than 20 percent over the
comparable rate of the preceding crop year.
‘‘(j) CLAIMS FOR LOSSES.—
‘‘(1) IN GENERAL.—Under rules prescribed by the Corpora-
tion, the Corporation may provide for adjustment and payment
of claims for losses. The rules prescribed by the Corporation
shall establish standards to ensure that all claims for losses
are adjusted, to the extent practicable, in a uniform and timely
manner.
‘‘(2) DENIAL OF CLAIMS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), if a
claim for indemnity is denied by the Corporation or an
approved provider, an action on the claim may be brought
against the Corporation or Secretary only in the United
States district court for the district in which the insured
farm is located.
‘‘(B) STATUTE OF LIMITATIONS.—A suit on the claim
may be brought not later than 1 year after the date on
which final notice of denial of the claim is provided to
the claimant.
‘‘(3) INDEMNIFICATION.—The Corporation shall provide
approved insurance providers with indemnification, including
H. R. 4217—19
costs and reasonable attorney fees incurred by the approved
insurance provider, due to errors or omissions on the part
of the Corporation.
‘‘(k) REINSURANCE.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
this title, the Corporation shall, to the maximum extent prac-
ticable, provide reinsurance to insurers approved by the Cor-
poration that insure producers of any agricultural commodity
under 1 or more plans acceptable to the Corporation.
‘‘(2) TERMS
AND
CONDITIONS.—The reinsurance shall be
provided on such terms and conditions as the Board may deter-
mine to be consistent with subsections (b) and (c) and sound
reinsurance principles.
‘‘(3) SHARE OF RISK.—The reinsurance agreements of the
Corporation with the reinsured companies shall require the
reinsured companies to bear a sufficient share of any potential
loss under the agreement so as to ensure that the reinsured
company will sell and service policies of insurance in a sound
and prudent manner, taking into consideration the financial
condition of the reinsured companies and the availability of
private reinsurance.
‘‘(4) RATE.—The rate established by the Board to reimburse
approved insurance providers and agents for the administrative
and operating costs of the providers and agents shall not
exceed—
‘‘(A) for the 1997 reinsurance year, 29 percent of the
premium used to define loss ratio;
‘‘(B) for the 1998 reinsurance year, 28 percent of the
premium used to define loss ratio; and
‘‘(C) for the 1999 reinsurance year, 27.5 percent of
the premium used to define loss ratio.
‘‘(5) COST AND REGULATORY REDUCTION.—Consistent with
section 118 of the Federal Crop Insurance Reform Act of 1994,
and consistent with maintenance of program integrity, preven-
tion of fraud and abuse, the need for program expansion, and
improvement of quality of service to customers, the Board shall
alter program procedures and administrative requirements in
order to reduce the administrative and operating costs of
approved insurance providers and agents in an amount that
corresponds to any reduction in the reimbursement rate
required under paragraph (4) during the 5-year period begin-
ning on the date of enactment of this paragraph.
‘‘(6) AGENCY DISCRETION.—The determination of whether
the Corporation is achieving, or has achieved, corresponding
administrative cost savings shall not be subject to administra-
tive review, and is wholly committed to agency discretion within
the meaning of section 701(a)(2) of title 5, United States Code.
‘‘(7) PLAN.—The Corporation shall submit to Congress a
plan outlining the measures that will be used to achieve the
reduction required under paragraph (5). If the Corporation
can identify additional cost reduction measures, the Corporation
shall describe the measures in the plan.
‘‘(l) OPTIONAL COVERAGES.—The Corporation may offer specific
risk protection programs, including protection against prevented
planting, wildlife depredation, tree damage and disease, and insect
infestation, under such terms and conditions as the Board may
determine, except that no program may be undertaken if insurance
H. R. 4217—20
for the specific risk involved is generally available from private
companies.
‘‘(m) RESEARCH.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the Corporation may conduct research, surveys, pilot programs,
and investigations relating to crop insurance and agriculture-
related risks and losses including insurance on losses involving
reduced forage on rangeland caused by drought and by insect
infestation, livestock poisoning and disease, destruction of bees
due to the use of pesticides, and other unique special risks
related to fruits, nuts, vegetables, aquacultural species, forest
industry needs (including appreciation), and other agricultural
products as determined by the Board.
‘‘(2) EXCEPTION.—No action may be undertaken with
respect to a risk under paragraph (1) if insurance protection
against the risk is generally available from private companies.
‘‘(3) EVALUATION.—After the completion of any pilot pro-
gram under this subsection, the Corporation shall evaluate
the pilot program and submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate, a report of
the operations of the pilot program, including the evaluation
by the Corporation of the pilot program and the recommenda-
tions of the Corporation with respect to implementing the pro-
gram on a national basis.’’.
SEC. 107. CROP INSURANCE YIELD COVERAGE.
Section 508A (7 U.S.C. 1508a) is repealed.
SEC. 108. PREEMPTION.
Section 511 (7 U.S.C. 1511) is amended by adding at the end
the following sentence: ‘‘A contract of insurance of the Corporation,
and a contract of insurance reinsured by the Corporation, shall
be exempt from taxation imposed by any State, municipality, or
local taxing authority.’’.
SEC. 109. ADVISORY COMMITTEE.
The Act is amended by inserting after section 514 (7 U.S.C.
1514) the following new section:
‘‘SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.
‘‘(a) ESTABLISHMENT.—The Secretary may establish within the
Department an advisory committee to be known as the ‘Advisory
Committee for Federal Crop Insurance’.
‘‘(b) PRIMARY RESPONSIBILITY.—The primary responsibility of
the Advisory Committee shall be to advise the Secretary on the
implementation of this title and on other issues related to crop
insurance, as determined by the Manager of the Corporation.
‘‘(c) MEMBERSHIP.—The Advisory Committee shall be composed
of the Manager of the Corporation, the Secretary (or a designee
of the Secretary), and not fewer than 12 members representing
organizations and agencies involved in the provision of crop insur-
ance under this title. Not fewer than 3 of the members of the
Advisory Committee shall be representatives of the specialty crops
industry. The organizations or agencies represented by members
on the Advisory Committee may include insurance companies, insur-
ance agents, farm producer organizations, experts on agronomic
practices, and banking and lending institutions.
H. R. 4217—21
‘‘(d) ADMINISTRATIVE PROVISIONS.—
‘‘(1) TERMS.—Members of the Advisory Committee (other
than the Manager of the Corporation and the Secretary) shall
be appointed by the Secretary for a term of up to 2 years
from nominations made by the organizations and agencies speci-
fied in subsection (c). The terms of the members (other than
the Manager of the Corporation and the Secretary) shall be
staggered.
‘‘(2) CHAIRPERSON.—The Advisory Committee shall be
chaired by the Manager of the Corporation.
‘‘(3) MEETINGS.—The Advisory Committee shall meet at
least annually. The meetings of the Advisory Committee shall
be publicly announced in advance and shall be open to the
public. Appropriate records of the activities of the Advisory
Committee shall be kept and made available to the public
on request.
‘‘(e) REPORTS.—Not later than June 30 of each year, the
Advisory Committee shall submit to the Secretary a report specify-
ing the conclusions and recommendations of the Advisory Commit-
tee regarding—
‘‘(1) the progress toward implementation of this title;
‘‘(2) the actuarial soundness of the Federal crop insurance
program;
‘‘(3) the rate of producer participation in both catastrophic
risk protection under section 508(b) and additional coverage
under section 508(c); and
‘‘(4) the progress toward improved crop insurance coverage
for new and specialty crops.
‘‘(f) TERMINATION OF AUTHORITY.—The authority provided by
this section shall terminate on September 30, 1998.’’.
SEC. 110. FUNDING.
Section 516 (7 U.S.C. 1516) is amended to read as follows:
‘‘SEC. 516. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) DISCRETIONARY
EXPENSES.—There are authorized to
be appropriated for each of fiscal years 1995 through 2001
such sums as are necessary to cover—
‘‘(A) the salaries and expenses of the Corporation; and
‘‘(B) the administrative and operating expenses of the
Corporation for the sales commissions of agents.
‘‘(2) MANDATORY EXPENSES.—There are authorized to be
appropriated such sums as are necessary to cover—
‘‘(A) in the case of each of the 1995 through 1997
reinsurance years, the administrative and operating
expenses of the Corporation for the sales commissions of
agents, consistent with subsection (b)(1);
‘‘(B) premium subsidies, including the administrative
and operating expenses of an approved insurance provider
for the delivery of policies with additional coverage; and
‘‘(C) payments for noninsured assistance losses under
section 519.
‘‘(b) PAYMENT OF EXPENSES.—
‘‘(1) ADMINISTRATIVE AND OPERATING EXPENSES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), in the case of each of the 1995 through 1997 reinsur-
ance years, the Corporation is authorized to pay from the
H. R. 4217—46
Subtitle E—Natural Resources and
Environment
SEC. 245. UNDER 
SECRETARY 
OF 
AGRICULTURE 
FOR 
NATURAL
RESOURCES AND ENVIRONMENT.
(a) AUTHORIZATION.—The Secretary is authorized to establish
in the Department the position of Under Secretary of Agriculture
for Natural Resources and Environment.
(b) CONFIRMATION REQUIRED.—If the Secretary establishes the
position of Under Secretary of Agriculture for Natural Resources
and Environment authorized under subsection (a), the Under Sec-
retary shall be appointed by the President, by and with the advice
and consent of the Senate.
(c) FUNCTIONS OF UNDER SECRETARY.—
(1) PRINCIPAL FUNCTIONS.—Upon establishment, the Sec-
retary shall delegate to the Under Secretary of Agriculture
for Natural Resources and Environment those functions under
the jurisdiction of the Department that are related to natural
resources and environment (except to the extent those functions
are delegated under section 226).
(2) ADDITIONAL FUNCTIONS.—The Under Secretary of Agri-
culture for Natural Resources and Environment shall perform
such other functions and duties as may be required by law
or prescribed by the Secretary.
(d) SUCCESSION.—Any official who is serving as Assistant Sec-
retary of Agriculture for Natural Resources and Environment on
the date of the enactment of this Act and who was appointed
by the President, by and with the advice and consent of the Senate,
shall not be required to be reappointed under subsection (b) to
the successor position authorized under subsection (a) if the Sec-
retary establishes the position, and the official occupies the new
position, within 180 days after the date of the enactment of this
Act (or such later date set by the Secretary if litigation delays
rapid succession).
(e) EXECUTIVE SCHEDULE.—Section 5314 of title 5, United
States Code, is amended by inserting after the item relating to
the Under Secretary of Agriculture for Food, Nutrition, and
Consumer Services (as added by section 241(e)) the following:
‘‘Under Secretary of Agriculture for Natural Resources and
Environment.’’.
SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.
(a) ESTABLISHMENT.—The Secretary is authorized to establish
and maintain within the Department a Natural Resources Con-
servation Service.
(b) FUNCTIONS.—If the Secretary establishes the Natural
Resources Conservation Service under subsection (a), the Secretary
is authorized to assign to the Service jurisdiction over the following:
(1) The rural environmental conservation program under
title X of the Agricultural Act of 1970 (16 U.S.C. 1501 et
seq.).
(2) The Great Plains Conservation Program under section
16(b) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590p(b)).
(3) The Water Bank Act (16 U.S.C. 1301 et seq.).
H. R. 4217—61
(6) by striking ‘‘Administrator, Rural Electrification
Administration, Department of Agriculture.’’;
(7) by striking ‘‘Administrator, Soil Conservation Service,
Department of Agriculture.’’;
(8) by striking ‘‘Chief Forester of the Forest Service, Depart-
ment of Agriculture.’’;
(9) by striking ‘‘Director of Science and Education, Depart-
ment of Agriculture.’’;
(10) by striking ‘‘Administrator, Animal and Plant Health
Inspection Service, Department of Agriculture.’’; and
(11) by striking ‘‘Administrator, Federal Grain Inspection
Service, Department of Agriculture.’’.
SEC. 295. PROPOSED CONFORMING AMENDMENTS.
Not later than 180 days after the date of the enactment of
this Act, the Secretary shall submit to Congress recommended
legislation containing additional technical and conforming amend-
ments to Federal laws that are required as a result of the enactment
of this title.
SEC. 296. TERMINATION OF AUTHORITY.
(a) IN GENERAL.—Subject to subsection (b), the authority dele-
gated to the Secretary by this title to reorganize the Department
shall terminate on the date that is 2 years after the date of enact-
ment of this Act.
(b) FUNCTIONS.—Subsection (a) shall not affect—
(1) the authority of the Secretary to continue to carry
out a function that the Secretary performs on the date that
is 2 years after the date of enactment of this Act;
(2) the authority delegated to the Secretary under Reorga-
nization Plan No. 2 of 1953 (5 U.S.C. App.; 7 U.S.C. 2201
note); or
(3) the authority of an agency, office, officer, or employee
of the Department to continue to perform all functions delegated
or assigned to the entity or person as of that termination
date.
TITLE III—MISCELLANEOUS
SEC. 301. POULTRY LABELING.
It is the sense of Congress that—
(1) the United States Department of Agriculture should—
(A) carry out the plans of the Department to hold
public hearings for the purpose of receiving public input
on issues related to the conditions under which poultry
sold in the United States may be labeled ‘‘fresh’’; and
(B) finalize and publish a decision on the issues as
expeditiously as possible after holding the hearings; and
(2) no person serving on the expert advisory committee
established to advise the Secretary of Agriculture on the issues
should stand to profit, or represent any interest that would
stand to profit, from the decision of the Department on the
issues.