H. R. 2559
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
To amend the Federal Crop Insurance Act to strengthen the safety net for agricul-
tural 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.
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 ‘‘Agricultural
Risk Protection Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
TITLE I—CROP INSURANCE COVERAGE
SUBTITLE A—CROP INSURANCE COVERAGE
Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Catastrophic risk protection.
Sec. 104. Administrative fee for additional coverage.
Sec. 105. Assigned yields and actual production history adjustments.
Sec. 106. Review and adjustment in rating methodologies.
Sec. 107. Quality adjustment.
Sec. 108. Double insurance and prevented planting.
Sec. 109. Noninsured crop disaster assistance program.
SUBTITLE B—IMPROVING PROGRAM INTEGRITY
Sec. 121. Improving program compliance and integrity.
Sec. 122. Protection of confidential information.
Sec. 123. Good farming practices.
Sec. 124. Records and reporting.
SUBTITLE C—RESEARCH AND PILOT PROGRAMS
Sec. 131. Research and development.
Sec. 132. Pilot programs.
Sec. 133. Education and risk management assistance.
Sec. 134. Options pilot program.
SUBTITLE D—ADMINISTRATION
Sec. 141. Relation to other laws.
Sec. 142. Management of Corporation.
Sec. 143. Contracting for rating of plans of insurance.
Sec. 144. Electronic availability of crop insurance information.
Sec. 145. Adequate coverage for States.
Sec. 146. Submission of policies and materials to Board.
Sec. 147. Funding.
Sec. 148. Standard Reinsurance Agreement.
SUBTITLE E—MISCELLANEOUS
Sec. 161. Limitation on revenue coverage for potatoes.
Sec. 162. Crop insurance coverage for cotton and rice.
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Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of the Congress regarding the Federal crop insurance program.
Sec. 165. Sense of the Congress on rural America, including minority and limited-
resource farmers.
SUBTITLE F—EFFECTIVE DATES AND IMPLEMENTATION
Sec. 171. Effective dates.
Sec. 172. Regulations.
Sec. 173. Savings clause.
TITLE II—AGRICULTURAL ASSISTANCE
SUBTITLE A—MARKET LOSS ASSISTANCE
Sec. 201. Market loss assistance.
Sec. 202. Oilseeds.
Sec. 203. Specialty crops.
Sec. 204. Other commodities.
Sec. 205. Payments in lieu of loan deficiency payments.
Sec. 206. Expansion of producers eligible for loan deficiency payments.
SUBTITLE B—CONSERVATION
Sec. 211. Conservation assistance.
Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio.
SUBTITLE C—RESEARCH
Sec. 221. Carbon cycle research.
Sec. 222. Tobacco research for medicinal purposes.
Sec. 223. Research on soil science and forest health management.
Sec. 224. Research on waste streams from livestock production.
Sec. 225. Improved storage and management of livestock and poultry waste.
Sec. 226. Ethanol research pilot plant.
Sec. 227. Bioinformatics Institute for Model Plant Species.
SUBTITLE D—AGRICULTURAL MARKETING
Sec. 231. Value-added agricultural product market development grants.
SUBTITLE E—NUTRITION PROGRAMS
Sec. 241. Calculation of minimum amount of commodities for school lunch require-
ments.
Sec. 242. School lunch data.
Sec. 243. Child and adult care food program integrity.
Sec. 244. Adjustments to WIC program.
SUBTITLE F—OTHER PROGRAMS
Sec. 251. Authority to provide loan in connection with boll weevil eradication.
Sec. 252. Animal disease control.
Sec. 253. Emergency loans for seed producers.
Sec. 254. Temporary suspension of authority to combine certain offices.
Sec. 255. Farm operating loan eligibility.
Sec. 256. Water systems for rural and Native villages in Alaska.
Sec. 257. Crop and pasture flood compensation program.
Sec. 258. Flood mitigation near Pierre, South Dakota.
Sec. 259. Restoration of eligibility for crop loss assistance.
SUBTITLE G—ADMINISTRATION
Sec. 261. Funding.
Sec. 262. Obligation period.
Sec. 263. Regulations.
Sec. 264. Paygo adjustment.
Sec. 265. Commodity Credit Corporation reimbursement.
TITLE III—BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000
Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Definitions.
Sec. 304. Cooperation and coordination in biomass research and development.
Sec. 305. Biomass Research and Development Board.
Sec. 306. Biomass Research and Development Technical Advisory Committee.
Sec. 307. Biomass Research And Development Initiative.
Sec. 308. Administrative support and funds.
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Sec. 309. Reports.
Sec. 310. Termination of authority.
TITLE IV—PLANT PROTECTION ACT
Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Definitions.
SUBTITLE A—PLANT PROTECTION
Sec. 411. Regulation of movement of plant pests.
Sec. 412. Regulation of movement of plants, plant products, biological control
organisms, noxious weeds, articles, and means of conveyance.
Sec. 413. Notification and holding requirements upon arrival.
Sec. 414. General remedial measures for new plant pests and noxious weeds.
Sec. 415. Declaration of extraordinary emergency and resulting authorities.
Sec. 416. Recovery of compensation for unauthorized activities.
Sec. 417. Control of grasshoppers and mormon crickets.
Sec. 418. Certification for exports.
SUBTITLE B—INSPECTION AND ENFORCEMENT
Sec. 421. Inspections, seizures, and warrants.
Sec. 422. Collection of information.
Sec. 423. Subpoena authority.
Sec. 424. Penalties for violation.
Sec. 425. Enforcement actions of Attorney General.
Sec. 426. Court jurisdiction.
SUBTITLE C—MISCELLANEOUS PROVISIONS
Sec. 431. Cooperation.
Sec. 432. Buildings, land, people, claims, and agreements.
Sec. 433. Reimbursable agreements.
Sec. 434. Regulations and orders.
Sec. 435. Protection for mail handlers.
Sec. 436. Preemption.
Sec. 437. Severability.
Sec. 438. Repeal of superseded laws.
SUBTITLE D—AUTHORIZATION OF APPROPRIATIONS
Sec. 441. Authorization of appropriations.
Sec. 442. Transfer authority.
TITLE V—INSPECTION ANIMALS
Sec. 501. Civil penalty.
Sec. 502. Subpoena authority.
TITLE I—CROP INSURANCE
Subtitle A—Crop Insurance Coverage
SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.
(a) EXPECTED MARKET PRICE.—Section 508(c) of the Federal
Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking para-
graph (5) and inserting the following:
‘‘(5) EXPECTED MARKET PRICE.—
‘‘(A) ESTABLISHMENT OR APPROVAL.—For the purposes
of this title, the Corporation shall establish or approve
the price level (referred to in this title as the ‘expected
market price’) of each agricultural commodity for which
insurance is offered.
‘‘(B) GENERAL RULE.—Except as otherwise provided in
subparagraph (C), the expected market price of an agricul-
tural commodity shall be not less than the projected market
price of the agricultural commodity, as determined by the
Corporation.
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‘‘(C) OTHER AUTHORIZED APPROACHES.—The expected
market price of an agricultural commodity—
‘‘(i) may be based on the actual market price of
the agricultural commodity at the time of harvest,
as determined by the Corporation;
‘‘(ii) in the case of revenue and other similar plans
of insurance, may be the actual market price of the
agricultural commodity, as determined by the Corpora-
tion;
‘‘(iii) in the case of cost of production or similar
plans of insurance, shall be the projected cost of pro-
ducing the agricultural commodity, as determined by
the Corporation; or
‘‘(iv) in the case of other plans of insurance, may
be an appropriate amount, as determined by the Cor-
poration.’’.
(b) PREMIUM AMOUNTS.—Section 508(d) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)) is amended—
(1) in paragraph (2), by striking subparagraphs (B) and
(C) and inserting the following:
‘‘(B) In the case of additional coverage equal to or
greater than 50 percent of the recorded or appraised aver-
age yield indemnified at not greater than 100 percent of
the expected market price, or a comparable coverage for
a policy or plan of insurance that is not based on individual
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 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.’’;
and
(2) by adding at the end the following:
‘‘(3) PERFORMANCE-BASED DISCOUNT.—The Corporation may
provide a performance-based premium discount for a producer
of an agricultural commodity who has good insurance or produc-
tion experience relative to other producers of that agricultural
commodity in the same area, as determined by the Corpora-
tion.’’.
(c) PAYMENT SCHEDULE.—Section 508(e)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(e)(2)) is amended—
(1) in the matter preceding the subparagraphs, by striking
‘‘The amount’’ and inserting ‘‘Subject to paragraph (4), the
amount’’; and
(2) by striking subparagraphs (B) and (C) and inserting
the following:
‘‘(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 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 67 percent of the amount of the premium estab-
lished under subsection (d)(2)(B)(i) for the coverage
level selected; and
H. R. 2559—5
‘‘(ii) the amount determined under subsection
(d)(2)(B)(ii) for the coverage level selected to cover oper-
ating and administrative 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 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 64 percent of the amount of the premium estab-
lished 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 oper-
ating and administrative 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 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 59 percent of the amount of the premium estab-
lished 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 oper-
ating and administrative expenses.
‘‘(E) In the case of additional coverage equal to or
greater than 75 percent, but less than 80 percent, of the
recorded or appraised average yield indemnified at not
greater than 100 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 55 percent of the amount of the premium estab-
lished 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 oper-
ating and administrative expenses.
‘‘(F) In the case of additional coverage equal to or
greater than 80 percent, but less than 85 percent, of the
recorded or appraised average yield indemnified at not
greater than 100 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 48 percent of the amount of the premium estab-
lished 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 oper-
ating and administrative expenses.
‘‘(G) Subject to subsection (c)(4), in the case of addi-
tional coverage equal to or greater than 85 percent of
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the recorded or appraised average yield indemnified at
not greater than 100 percent of the expected market price,
or a comparable coverage for a policy or plan of insurance
that is not based on individual yield, the amount shall
be equal to the sum of—
‘‘(i) 38 percent of the amount of the premium estab-
lished 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 oper-
ating and administrative expenses.’’.
(d) TEMPORARY PROHIBITION ON CONTINUOUS COVERAGE.—Sec-
tion 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
is amended by striking paragraph (4) and inserting the following:
‘‘(4) TEMPORARY PROHIBITION ON CONTINUOUS COVERAGE.—
Notwithstanding paragraph (2), during each of the 2001
through 2005 reinsurance years, additional coverage under sub-
section (c) shall be available only in 5 percent increments
beginning at 50 percent of the recorded or appraised average
yield.’’.
(e) PREMIUM PAYMENT DISCLOSURE.—Section 508(e) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding
at the end the following:
‘‘(5) PREMIUM PAYMENT DISCLOSURE.—Each policy or plan
of insurance under this title shall prominently indicate the
dollar amount of the portion of the premium paid by the Cor-
poration.’’.
(f ) CONFORMING AMENDMENT.—Section 508(g)(2)(D) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by
striking ‘‘(as provided in subsection (e)(4))’’.
SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.
(a) PREMIUM SCHEDULE.—Section 508(h) of the Federal Crop
Insurance Act (7 U.S.C. 1508(h)) is amended—
(1) in paragraph (2), by striking the second sentence; and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) PREMIUM SCHEDULE.—
‘‘(A) PAYMENT BY CORPORATION.—In the case of a policy
or plan of insurance developed and approved under this
subsection or section 522, or conducted under section 523
(other than a policy or plan of insurance applicable to
livestock), the Corporation shall pay a portion of the pre-
mium of the policy or plan of insurance that is equal
to—
‘‘(i) the percentage, specified in subsection (e) for
a similar level of coverage, of the total amount of
the premium used to define loss ratio; and
‘‘(ii) an amount for administrative and operating
expenses determined in accordance with subsection
(k)(4).
‘‘(B) TRANSITIONAL SCHEDULE.—Effective only during
the 2001 reinsurance year, in the case of a policy or plan
of insurance developed and approved under this subsection
or section 522, or conducted under section 523 (other than
a policy or plan of insurance applicable to livestock), and
first approved by the Board after the date of the enactment
of this subparagraph, the payment by the Corporation of
H. R. 2559—7
a portion of the premium of the policy may not exceed
the dollar amount that would otherwise be authorized
under subsection (e) (consistent with subsection (c)(5), as
in effect on the day before the date of the enactment
of this subparagraph).’’.
(b) REIMBURSEMENT RATE.—Section 508(k)(4) of the Federal
Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding
at the end the following:
‘‘(C) OTHER
REDUCTIONS.—Beginning with the 2002
reinsurance year, in the case of a policy or plan of insurance
approved by the Board that was not reinsured during the
1998 reinsurance year but, had it been reinsured, would
have received a reduced rate of reimbursement during the
1998 reinsurance year, the rate of reimbursement for
administrative and operating costs established for the
policy or plan of insurance shall take into account the
factors used to determine the rate of reimbursement for
administrative and operating costs during the 1998 reinsur-
ance year, including the expected difference in premium
and actual administrative and operating costs of the policy
or plan of insurance relative to an individual yield policy
or plan of insurance and other appropriate factors, as deter-
mined by the Corporation.’’.
SEC. 103. CATASTROPHIC RISK PROTECTION.
(a) ALTERNATIVE COVERAGE.—Section 508(b) of the Federal
Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking para-
graph (3) and inserting the following:
‘‘(3) ALTERNATIVE
CATASTROPHIC
COVERAGE.—Beginning
with the 2001 crop year, the Corporation shall offer producers
of an agricultural commodity the option of selecting either
of the following:
‘‘(A) The catastrophic risk protection coverage available
under paragraph (2)(A).
‘‘(B) An alternative catastrophic risk protection cov-
erage that—
‘‘(i) indemnifies the producer on an area yield and
loss basis if such a policy or plan of insurance is
offered for the agricultural commodity in the county
in which the farm is located;
‘‘(ii) provides, on a uniform national basis, a higher
combination of yield and price protection than the cov-
erage available under paragraph (2)(A); and
‘‘(iii) the Corporation determines is comparable to
the coverage available under paragraph (2)(A) for pur-
poses of subsection (e)(2)(A).’’.
(b) ADMINISTRATIVE FEE.—
(1) REVISED FEE.—Section 508(b)(5) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(5)) is amended—
(A) in subparagraph (A), by striking ‘‘$50’’ and
inserting ‘‘$100’’;
(B) by striking subparagraph (B); and
(C) in subparagraph (C), by striking ‘‘amounts required
under subparagraphs (A) and (B)’’ and inserting ‘‘adminis-
trative fee required by this paragraph’’.
(2) CONFORMING
AMENDMENT.—Section 748 of the Agri-
culture, Rural Development, Food and Drug Administration,
H. R. 2559—8
and Related Agencies Appropriations Act, 1999 (as contained
in section 101(a) of division A of Public Law 105–277; 7 U.S.C.
1508 note), is amended by striking ‘‘$50’’ and inserting ‘‘$100’’.
(c) PAYMENT
OF ADMINISTRATIVE FEE
ON BEHALF
OF PRO-
DUCERS.—Section 508(b)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended
by inserting after subparagraph (A) the following:
‘‘(B) PAYMENT ON BEHALF OF PRODUCERS.—
‘‘(i) PAYMENT AUTHORIZED.—If State law permits
a licensing fee or other payment to be paid by an
insurance provider to a cooperative association or trade
association and rebated to a producer with catastrophic
risk protection or additional coverage, a cooperative
association or trade association located in that State
may pay, on behalf of a member of the association
in that State or a contiguous State who consents to
be insured under such an arrangement, all or a portion
of the administrative fee required by this paragraph
for catastrophic risk protection.
‘‘(ii) TREATMENT OF LICENSING FEES.—A licensing
fee or other payment made by an insurance provider
to the cooperative association or trade association in
connection with the issuance of catastrophic risk
protection or additional coverage to members of the
cooperative association or trade association shall be
subject to the laws regarding rebates of the State in
which the fee or other payment is made.
‘‘(iii) SELECTION
OF
PROVIDER.—Nothing in this
subparagraph limits the option of a producer to select
the licensed insurance agent or other approved insur-
ance provider from whom the producer will purchase
a policy or plan of insurance or to refuse coverage
for which a payment is offered to be made under clause
(i).
‘‘(iv) DELIVERY OF INSURANCE.—A policy or plan
of insurance for which a payment is made under clause
(i) shall be delivered by a licensed insurance agent
or other approved insurance provider.
‘‘(v) 
ADDITIONAL
COVERAGE
ENCOURAGED.—A
cooperative association or trade association, and any
approved insurance provider with whom a licensing
fee or other arrangement under this subparagraph is
made, shall encourage producer members to purchase
appropriate levels of additional coverage in order to
meet the risk management needs of the member pro-
ducers.
‘‘(vi) REPORT.—Not later than April 1, 2002, the
Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate
a report that evaluates—
‘‘(I) the operation of this subparagraph; and
‘‘(II) the impact of this subparagraph on
participation in the Federal crop insurance pro-
gram, including the impact on levels of coverage
purchased.’’.
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(d) REIMBURSEMENT RATE CHANGE.—Section 508(b)(11) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by
striking ‘‘11 percent’’ and inserting ‘‘8 percent’’.
SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.
Section 508(c) of the Federal Crop Insurance Act (7 U.S.C.
1508(c)) is amended by striking paragraph (10) and inserting the
following:
‘‘(10) ADMINISTRATIVE FEE.—
‘‘(A) FEE REQUIRED.—If a producer elects to purchase
coverage for a crop at a level in excess of catastrophic
risk protection, the producer shall pay an administrative
fee for the additional coverage of $30 per crop per county.
‘‘(B) USE OF FEES; WAIVER.—Subparagraphs (D) and
(E) of subsection (b)(5) shall apply with respect to the
collection and use of administrative fees under this para-
graph.’’.
SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY
ADJUSTMENTS.
(a) 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 inserting ‘‘; or’’;
and
(3) by adding at the end the following:
‘‘(ii) a yield determined by the Corporation, in the
case of—
‘‘(I) a producer that has not had a share of
the production of the insured crop for more than
two crop years, as determined by the Secretary;
‘‘(II) a producer that produces an agricultural
commodity on land that has not been farmed by
the producer; or
‘‘(III) a producer that rotates a crop produced
on a farm to a crop that has not been produced
on the farm.’’.
(b) ACTUAL
PRODUCTION
HISTORY
ADJUSTMENTS.—Section
508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is
amended by adding at the end the following:
‘‘(4) ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTAB-
LISH INSURABLE YIELDS.—
‘‘(A) APPLICATION.—This paragraph shall apply when-
ever the Corporation uses the actual production records
of the producer to establish the producer’s actual production
history for an agricultural commodity for any of the 2001
and subsequent crop years.
‘‘(B) ELECTION TO USE PERCENTAGE OF TRANSITIONAL
YIELD.—If, for one or more of the crop years used to estab-
lish the producer’s actual production history of an agricul-
tural commodity, the producer’s recorded or appraised yield
of the commodity was less than 60 percent of the applicable
transitional yield, as determined by the Corporation, the
Corporation shall, at the election of the producer—
‘‘(i) exclude any of such recorded or appraised yield;
and