80 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) 54 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.
‘‘(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 per-
cent of the expected market price, or an equiva-
lent coverage, the amount shall be equal to the
sum of—
‘‘(i) 40.6 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.
‘‘(G) Subject to subsection (c)(4), in the case
of additional coverage equal to or greater than
85 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) 30.6 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) PREMIUM PAYMENT DISCLOSURE.—Section 508(e)
of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is
amended by adding at the end the following new paragraph:
‘‘(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 Corporation under this
subsection or subsection (h)(2).’’.
SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF IN-
SURANCE.
Section 508(h)(2) of the Federal Crop Insurance Act
(7 U.S.C. 1508(h)(2)) is amended—
(1) by striking ‘‘A policy’’ and inserting the fol-
lowing:
‘‘(A) PREPARATION.—A policy’’;
(2) by striking the second sentence; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) PREMIUM SCHEDULE.—In the case of
a policy offered under this subsection (except
paragraph (10)) or subsection (m)(4), the Cor-
poration shall pay a portion of the premium of
the policy that shall be equal to—
‘‘(i) the percentage, specified in sub-
section (e) for a similar level of coverage, of
the total amount of the premium used to de-
fine loss ratio; and
‘‘(ii) the dollar amount of the adminis-
trative and operating expenses that would
be paid by the Corporation under subsection
(e) for a similar level of coverage.’’.
SEC. 103. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY
TO ESTABLISH INSURABLE YIELDS.
(a) USE OF PERCENTAGE OF TRANSITIONAL YIELD.—
Section 508(g) of the Federal Crop Insurance Act (7 U.S.C.
1508(g)) is amended by adding at the end the following new
paragraph:
‘‘(4) ADJUSTMENT IN ACTUAL PRODUCTION HIS-
TORY TO ESTABLISH INSURABLE YIELDS.—
‘‘(A) APPLICATION.—This paragraph shall
apply whenever the Corporation uses the actual
production history of the producer to establish
insurable yields for an agricultural commodity
for the 2000 and subsequent crop years.
‘‘(B) ELECTION
TO
USE
PERCENTAGE
OF
TRANSITIONAL YIELD.—If, for one or more of the
crop years used to establish the producer’s actual
production history of an agricultural com-
modity, the producer’s recorded or appraised
yield of the commodity was less than 60 percent
of the applicable transitional yield, as deter-
mined by the Corporation, the Corporation shall,
at the election of the producer—
‘‘(i) exclude any of such recorded or
appraised yield; and
‘‘(ii) replace each excluded yield with a
yield equal to 60 percent of the applicable
transitional yield.’’.
(b) APH ADJUSTMENT TO REFLECT PARTICIPATION
IN MAJOR PEST CONTROL EFFORTS.—Section 508(g) of the
Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended
by inserting after paragraph (4), as added by subsection
(a), the following new paragraph:
‘‘(5) ADJUSTMENT
TO
REFLECT
INCREASED
YIELDS
FROM
SUCCESSFUL
PEST
CONTROL
EF-
FORTS.—
‘‘(A) 
SITUATIONS
JUSTIFYING
ADJUST-
MENT.—The Corporation shall develop a method-
ology for adjusting the actual production history
of a producer when each of the following apply:
‘‘(i) The producer’s farm is located in
an area where systematic, area-wide efforts
have been undertaken using certain oper-
ations or measures, or the producer’s farm
is a location at which certain operations or
measures have been undertaken, to detect,
eradicate, suppress, or control, or at least to
prevent or retard the spread of, a plant dis-
ease or plant pest, including a plant pest
covered by the definition in section 102 of
the Department of Agriculture Organic Act
of 1944 (7 U.S.C. 147a).
‘‘(ii) The presence of the plant disease
or plant pest has been found to adversely af-
fect the yield of the agricultural commodity
for which the producer is applying for in-
surance.
‘‘(iii) The efforts described in clause (i)
have been effective.
‘‘(B) ADJUSTMENT AMOUNT.—The amount
by which the Corporation adjusts the actual pro-
duction history of a producer of an agricultural
commodity shall reflect the degree to which the
success of the systematic, area-wide efforts de-
scribed in paragraph (1)(A), on average, in-
creases the yield of the commodity on the pro-
ducer’s farm, as determined by the Corpora-
tion.’’.
SEC. 104. REVIEW AND ADJUSTMENT IN RATING METH-
ODOLOGIES.
Section 508(a) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)) is amended by adding at the end the fol-
lowing:
‘‘(7) REVIEW AND ADJUSTMENT OF RATES.—
‘‘(A) REVIEW
REQUIRED.—To maximize
participation in the Federal crop insurance pro-
gram and to ensure equity for producers, the
Corporation shall periodically review the meth-
odologies employed for rating plans of insurance
under this title consistent with section 507(c)(2).
‘‘(B) PREMIUM
ADJUSTMENT.—The Cor-
poration shall analyze the rating and loss his-
tory of approved policies and plans of insurance
for agricultural commodities by area. If the Cor-
poration makes a determination that premium
rates are excessive for an agricultural commodity
in an area relative to the requirements of sub-
section (d)(2)(B) for that area, then, in the 2000
crop year or as soon as practicable after the de-
termination is made, the Corporation shall make
appropriate adjustments in the premium rates
for that area for that agricultural commodity.’’.
SEC. 105. CONDUCT OF PILOT PROGRAMS, INCLUDING LIVE-
STOCK.
(a) REPEAL OF OBSOLETE PILOT PROGRAMS.—Sec-
tion 508(h) of the Federal Crop Insurance Act (7 U.S.C.
1508(h)) is amended by striking paragraphs (6) and (8).
(b) GENERAL REQUIREMENTS.—Section 508(h) of the
Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended
by inserting after paragraph (7) the following new para-
graph:
‘‘(8) GENERAL REQUIREMENTS APPLICABLE TO
PILOT PROGRAMS.—In conducting any pilot program
of insurance or reinsurance authorized or required by
this title, the Corporation—
‘‘(A) may offer the pilot program on a re-
gional, whole State, or national basis after con-
sidering the interests of affected producers and
the interests of and risks to the Corporation;
‘‘(B) may operate the pilot program, in-
cluding any modifications thereof, for a period of
up to 3 years; and
‘‘(C) may extend the time period for the
pilot program for additional periods, as deter-
mined appropriate by the Corporation.’’.
(c) EXPEDITED CONSIDERATION.—Section 508(h)(4)
of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(4))
is amended—
(1) by redesignating subparagraphs (A), (B),
(C), and (D) as clauses (i), (ii), (iii), and (iv), re-
spectively;
(2) by moving the text of the clauses (as so des-
ignated) 2 ems to the right;
(3) by striking ‘‘The Corporation’’ in the first
sentence and inserting the following:
‘‘(A) GUIDELINES
REQUIRED.—Not later
than 180 days after the date of the enactment of
the Agricultural Risk Protection Act of 1999, the
Corporation’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) EXPEDITED CONSIDERATION OF PRO-
POSED
PILOT
PROGRAMS.—The regulations re-
quired by subparagraph (A) shall include
streamlined guidelines for the submission, and
Board review, of pilot programs that the Board
determines are limited in scope and duration
and involve a reduced level of liability to the
Federal Government, and an increased level of
risk to approved insurance providers partici-
pating in the pilot program, relative to other
policies or materials submitted under this sub-
section. The streamlined guidelines shall be con-
sistent with the guidelines established under sub-
paragraph (A), except as follows:
‘‘(i) Not later than 60 days after sub-
mission of the proposed pilot program, the
Corporation shall provide an applicant
with notification of its intent to recommend
disapproval of the proposal to the Board.
‘‘(ii) Not later than 90 days after the
proposed pilot program is submitted to the
Board, the Board shall make a determina-
tion to approve or disapprove the pilot pro-
gram. Any determination by the Board to
disapprove the pilot program shall be ac-
companied by a complete explanation of the
reasons for the Board’s decision to deny ap-
proval. In the event the Board fails to make
a determination within the prescribed time
period, the pilot program submitted shall be
deemed approved by the Board for the ini-
tial reinsurance year designated for the
pilot program, except in the case where the
Board and the applicant agree to an exten-
sion.’’.
(d) LIVESTOCK PILOT PROGRAMS.—
(1) PROGRAMS
REQUIRED.—Section 508(h) of
the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is
amended by striking paragraph (10) and inserting
the following new paragraph:
‘‘(10) LIVESTOCK PILOT PROGRAMS.—
‘‘(A) PROGRAMS REQUIRED.—The Corpora-
tion shall conduct one or more pilot programs to
evaluate the effectiveness of risk management
tools for livestock producers, including the use of
futures and options contracts and policies and
plans of insurance that provide livestock pro-
ducers with reasonable protection from the finan-
cial risks of price or income fluctuations inher-
ent in the production and marketing of livestock,
provide protection for production losses, and oth-
erwise protect the interests of livestock producers.
To the maximum extent practicable, the Cor-
poration shall evaluate the greatest number and
variety of such programs to determine which of
the offered risk management tools are best suited
to protect livestock producers from the financial
risks associated with the production and mar-
keting of livestock.
‘‘(B) IMPLEMENTATION; ASSISTANCE.—The
Corporation shall begin conducting livestock
pilot programs under this paragraph during fis-
cal year 2001, and any policy or plan of insur-
ance offered under this paragraph may be pre-
pared without regard to the limitations con-
tained in this title. As part of such a pilot pro-
gram, the Corporation may provide assistance to
producers to purchase futures and options con-
tracts or policies and plans of insurance offered
under that pilot program. However, no action
may be undertaken with respect to a risk under
this paragraph if the Corporation determines
that insurance protection for livestock producers
against the risk is generally available from pri-
vate companies.
‘‘(C) LOCATION.—The Corporation shall
conduct the livestock pilot programs under this
paragraph in a number of counties that is deter-
mined by the Corporation to be adequate to pro-
vide a comprehensive evaluation of the feasi-
bility, effectiveness, and demand among pro-
ducers for the risk management tools evaluated
in the pilot programs.
‘‘(D) ELIGIBLE PRODUCERS; LIVESTOCK.—
Any producer of a type of livestock covered by a
pilot program under this paragraph who owns
or operates a farm or ranch in a county selected
as a location for that pilot program shall be eli-
gible to participate in that pilot program. In
this paragraph, the term ‘livestock’ means cattle,
sheep, swine, goats, and poultry.