Federal Crop Insurance Act of 1980
PL 96-365 (S.1125), enacted 09/26/1980

94 STAT. 1312 
PUBLIC LAW 96-365—SEPT. 26, 1980 
Public Law 96-365 
96th Congress 
Sept. 26, 1980 
[S. 1125] 
Federal Crop 
Insurance Act 
of 1980. 
7 use 1501 note. 
Appropriation 
authorization. 
7 use 1504. 
Receipts for 
payments, 
cancellation. 
7 use 1505. 
Vacancies. 
An Act 
To improve and expand the Federal crop insurance program, and for other 
purposes. 
Be it enacted by the Senate and House of Repivsentatives of the 
United States of 
America in Congress assembled. That this Act may be 
cited as the "Federal Crop Insurance Act of 1980". 
TITLE I—FEDERAL CROP INSURANCE PROGRAM 
CAPITAL STOCK 
SEC. 101. (a) Effective October 1,1980, section 504(a) of the Federal 
Crop Insurance Act is amended by striking out "$200,000,000" and 
inserting in lieu thereof "$500,000,000". 
(b) Section 504 of the Federal Crop Insurance Act is amended by 
adding after subsection (c) a new subsection (d) as follows: 
"(d) Within thirty davs after the date of enactment of the Federal 
Crop Insurance Act or 1980, the Secretary of the Treasury shall 
cancel, without consideration, receipts for payments for or on account 
of the stock of the Federal Crop Insurance (Corporation outstanding 
on such date of enactment and such receipts shall cease to be 
liabilities of 
the Corporation.". 
BOARD OF DIRECTORS: MEMBERSHIP AND COMPENSATION 
SEC. 102. (a) Section 505(a) of the Federal Crop Insurance Act is 
amended by— 
(1) amending the second sentence to read as follows: "The 
Board shall consist of 
the manager of 
the Corporation, the Under 
Secretary or Assistant Secreta^ of Agriculture re^nsible for 
the Federal crop insurance program, the Under Secretaiy or 
Assistant Secretary of Agriculture responsible for the larm 
credit programs of the Department of Agriculture, one person 
experienced in the crop insurance business who is not otherwise 
employed by the Federal Government, and three active fanners 
who are not otherwise employed by the Federal Government."; 
and 
(2) adding at the end thereof a new sentence as follows: "The 
Secretary, in appointing the three active farmers who are not 
otherwise employed by the Federal Government, shall ensure 
that such members are policyholders and are from different 
geographic areas of the United States, in order that diverse 
agricultural interests in the United States are at all times 
represented on the Board.". 
(b) Section 505(b) of the Federal Crop Insurance Act is amended by 
striking out "three" wherever that word appears therein and insert* 
ing in lieu thereof "four". 
(c) The second sentence of section 505(c) of the Federal Crop 
Insurance Act is amended to read as follows: "The Directors of the 
note. 
PUBLIC LAW 96-365—SEPT. 26, 1980 
94 STAT. 1313 
Corporation who are not employed by the Federal Government shall 
be paid such compensation for their services as Directors as the 
Secretary of Agriculture shall determine, but such compensation 
shall not exceed the daily equivalent of the rate prescribed for grade 
GS-18 under section 5332 of title 5 of the United States Code when 5 use 5332 
actually employed, and actual necessary traveling and subsistence 
expenses, or a per diem allowance in lieu of subsistence expenses, as 
authorized by section 5703 of title 5 of the United States Code for 
persons in Government service employed intermittently, when on 
the business of the Corporation away from their homes or regular 
places of business.". 
GENERAL POWERS FOR THE CORPORATION 
SEC. 103. Section 506 of the Federal Crop Insurance Act is amended ^ use 1506. 
b y -
C
D in subsection (c), striking out "make contracts and"; 
(2) amending subsection (d) to read as follows: 
"(d) subject to the provisions of section 508(c), may sue and be sued Post, p. 1315. 
in its corporate name, but no attachment, injunction, garnishment, 
or other similar process, mesne or final, shall be issued against the 
Corporation or its property. The district courts of the United States, 
including the district courts of the District of Columbia and of any 
territory or possession, shall have exclusive original jurisdiction, 
without regard to the amount in controversy, of all suits brought by 
or against the Corporation. The Corporation may intervene in any 
court in any suit, action, or proceeding in which it has an interest. 
Any suit against the Corporation shall be brought in the District of 
Columbia, or in the district wherein the plaintiff resides or is engaged 
in business;"; 
(3) in subsection (f), striking out "free"; and 
(4) at the end of subsection (j), striking out the period and 
inserting in lieu thereof "; and", and adding at the end of section 
506 a new subsection (k) as follows: 
"(k) may enter into and carry out contracts or agreements 
necessary in the conduct of its business, as determined by the 
Board. State and local laws or rules shall not apply to contracts 
or agreements of the Corporation or the parties thereto to the 
extent that such contracts or agreements provide that such laws 
or rules shall not apply, or to the extent that such laws or rules 
are inconsistent with such contracts or agreements.". 
USE OF PRIVATE INSURANCE COMPANIES AND OTHER FEDERAL 
AGENCIES 
SEC. 104. Section 507 of the Federal Crop Insurance Act is amended 7 use 1507. 
b y -
(1) amending subsection (c) to read as follows: 
"(c) In the administration of this title, the Board shall, to the 
maximum extent possible, (1) establish or use committees or associ-
ations of producers and make payments to them to cover the 
administrative and program expenses, as determined by the Board, 
incurred by them in cooperating in carrying out this title, (2) contract 
with private insurance companies and reimburse such companies for 
the administrative and program expenses, as determined by the 
Board, incurred by them, under terms and provisions and rates of 
compensation consistent with those generally prevailing in the insur-
ance industry, and (3) encourage the sale of Federal crop insurance 
94 STAT. 1314 
PUBLIC LAW 96-365—SEPT. 26, 1980 
through licensed private insurance agents and brokers and give the 
insured the right to renew such insurance for successive terms 
through such agents and brokers, in which case the agent or broker 
shall be reasonably compensated from premiums paid by the insured 
for such sales and renewals recognizing the function of the agent or 
broker to provide continuing services while the insurance is in effect: 
Provided, That such compensation shall not be included in computa-
Indemnification. 
tions establishing premium rates. The Board shall provide such 
agents and brokers with indemnification, including costs and reason-
able attorney fees, from the Corporation for errors or omissions on 
the part of the Corporation or its contractors for which the agent or 
broker is sued or held liable, except to the extent the agent or broker 
has caused the error or omission."; and 
(2) adding a new subsection (f) as follows: 
"(f) The Board should use, to the maximum extent possible, the 
resources, data, boards, and the committees of (1) the Soil Conserva-
tion Service, in assisting the Board in the classification of land as to 
risk and production capability and in the development of acceptable 
conservation practices; (2) the Forest Service, in assisting the Board 
in the development of a timber insurance plan; (3) the Agricultural 
Stabilization and Conservation Service, in assisting the Board in the 
determination of individual producer yields and in serving as a local 
contact point for farmers where the Board deems necessary; and (4) 
other Federal agencies in any way the Board deems necessary in 
carrying out this title.". 
7 u s e 1508. 
"Field." 
FEDERAL CROP INSURANCE EXPANSION AND EXTENT OF COVERAGE 
SEC. 105. Effective with respect to the 1981 and subsequent crops, 
subsection (a) of section 508 of the Federal Crop Insurance Act is 
amended by— 
(1) striking out all that follows the subsection designation down 
through the end of the sixth sentence, which begins, "Reinsur-
ance for private insurance companies . . .", and inserting in lieu 
thereof the following: "If sufficient actuarial data are available, 
as determined by the Board, to insure producers of agricultural 
commodities grown in the United States under any plan or plans 
of insurance determined by the Board to be adapted to the 
agricultural commodity involved. Such insurance shall be 
against loss of the insured commodity due to unavoidable causes, 
including drought, flood, hail, wind, frost, winterkill, lightning, 
fire, excessive rain, snow, wildlife, hurricane, tornado, insect 
infestation, plant disease, and such other unavoidable causes as 
may be determined by the Board. 
Except in the case of tobacco, insurance shall not extend beyond the 
period the insured commodity is in the field. For the purpose of the 
foregoing sentence, in the case of aquacultural species, the term 
'field' means the environment in which the commodity is produced."; 
(2) striking out the seventh sentence, which begins, "Any 
insurance offered against loss in yield . . .", and inserting in lieu 
thereof the following: "Any insurance offered against loss in 
yield shall make available to producers protection against loss in 
yield that covers 75 per centum of the recorded or appraised 
average yield of the commodity on the insured farm for a 
representative period (subject to such adjustments as the Board 
' may prescribe to the end that the average yields fixed for farms 
in the same area, which are subject to the same conditions, may 
be fair and just). In addition, the Corporation shall make availa-
PUBLIC LAW 96-365—SEPT. 26, 1980 
94 STAT. 1315 
ble to producers lesser levels of yield coverage, including a level 
of coverage at 50 per centum of the recorded or appraised 
average yield, as adjusted. The Corporation shall not make 
available to producers any level of coverage in excess of 75 per 
centum of the recorded or appraised average yield, as adjusted. 
One of the price elections offered shall approximate (but be not 
less than 90 per centum of) the projected market price for the 
commodity involved, as determined by the Board."; and 
(3) striking out the ninth sentence, which begins "Counties 
selected by the Board . . .". 
HAIL AND FIRE INSURANCE CREDIT, PREMIUM SUBSIDY, REINSURANCE, 
AND SPECIFIC RISK PROTECTION 
SEC. 106. Effective with respect to the 1981 and subsequent crops, 
section 508 of the Federal Crop Insurance Act is amended by— 
(1) amending subsection (b) to read as follows: 
"05)(1) To fix adequate premiums for insurance at such rates as the 
Board deems actuarially sufficient to cover claims for losses on such 
insurance and to establish as expeditiously as possible a reasonable 
reserve against unforeseen losses. 
"(2) The producer may elect to have deleted from the Corporation's 
policy of insurance the coverage against losses caused by hail and fire 
and to obtain coverage therefor from other than a Federal insurer. 
Upon notice in writing of such election to the Corporation and 
submission of evidence of such substitute coverage on the commod-
ities insured by the Corporation in a dollar amount not less than that 
provided by the Corporation's policy of insurance, the producer's 
premium, as calculated by the Corporation, shall be reduced by an 
amount equal to 40 per centum of the prevailing average county hail 
and fire insurance premium charged by other than Federal insurers 
for the dollar amount of the coverage provided by the Corporation's 
policy of insurance, as determined by the Corporation: Provided, That 
the producer's premium shall not be reduced by less than 15 per 
centum nor more than 30 per centum: Provided further, That, 
notwithstanding the preceding provisions of this sentence, the pro-
ducer's premium shall not be reduced by an amount that exceeds the 
premium for the substitute coverage of a dollar amount equal to that 
provided by the Corporation's policy of insurance. Any premium 
reduction in excess of the amount of premium that the Corporation 
determines would have been necessary for the Corporation to charge 
in order to cover indemnities actually paid by other than Federal 
insurers for hail and fire coverage deleted from the Corporation's 
policy of insurance shall be regarded as premium paid by the 
Corporation. 
"(3) For the purpose of encouraging the broadest possible participa-
tion in the insurance program, 30 per centum of each producer's 
premium (reduced, where applicable, for hail and fire exclusion, or 
State or State agency subsidy), as calculated by the Corporation on 
any coverage under the Corporation's policy of insurance up to a 
maximum of 65 per centum of the recorded or appraised average 
yield, as adjusted, shall be paid by the Corporation. 
"(4) The producer's premium, or share thereof, shall be collected at 
such time or times, and shall be secured in such manner, as the Board 
may determine. 
"(5) The Board may enter into agreements with any State or agenpy 
of a State under which such State or agency may pay to the 
7 u s e 1508. 
Premium 
reduction. 
Premium 
collection. 
State 
agreements. 
79-194 
O—81—pt. 1 
87 : QL3 
94 STAT. 1316 
PUBLIC LAW 96-365—SEPT. 26, 1980 
Partial payment. 
7 u s e 1421 
note. 
Claims. 
Reinsurance. 
Test program. 
Operating and 
adminstrative 
costs. 
Ante, p. 1313. 
Corporation additional premium subsidy to further reduce the por-
tion of the premium paid by farmers in such State. 
"(6) With respect to any crop insurance covering the 1981 crop of 
wheat, feed grains, upland cotton, or rice, a producer shall not be 
eligible for a partial payment of the premium by the Corporation 
under paragraph (3) of this subsection for such commodity if the 
producer elects to make the acreage of the commodity eligible for 
payments under the disaster payment provisions for wheat, feed 
grains, upland cotton, and rice of the Agricultural Act of 1949 (as 
amended effective for the 1981 crops): Provided further, That a 
producer who is not eligible for a partial payment of premium by the 
Corporation under this subsection because of the producer's election 
to make the acreage of the commodity involved eligible for disaster 
payments in 1981 shall remain eligible to purchase Federal crop 
insurance on the 1981 acreage of the commodity at the full cost of the 
premium."; 
(2) amending subsection (c) to read as follows: 
"(c) To adjust and pay claims for losses under rules prescribed by 
the Board. In the event that any claim for indemnity under the 
provisions of this title is denied by the Corporation, an action on such 
claim may be brought against the Corporation in the United States 
district court for the district in which the insured farm is located: 
Provided, That no suit on such claim may be allowed under this 
section unless it shall have been brought within one year after the 
date when notice of denial of the claim is mailed to and received by 
the claimant."; 
(3) striking out subsection (d), and redesignating subsection (e) 
as subsection (d); and 
(4) striking out subsection (f) and adding new subsections (e), (f), 
(g), and (h) as follows: 
"(e) And directed, notwithstanding any other provision of this title, 
to provide reinsurance, to the meiximum extent practicable, upon 
such terms and conditions as the Board may determine to be 
consistent with subsections (a) and (b) of this section and sound 
reinsurance principles, to insurers including private insurance com-
panies or pools of such companies, reinsurers of such companies, or 
State or local governmental entities, including any political subdivi-
sions thereof, that insure producers of any agricultural commodity 
under a plan or plans acceptable to the Corporation. A test program 
of such reinsurance shall be made available, to the maximum extent 
possible, to begin not later than with the 1982 crops. In order to 
provide equity among producers purchasing crop insurance, when-
ever the Corporation provides reinsurance under this subsection to 
any such insurers, the Corporation shall pay a portion of each 
producer's premium for such insurance so reinsured. Each such 
payment shall cover the same per centum of the premium, and be 
subject to the same restrictions regarding pajnnents of premiums for 
crop insurance on commodities, as provided in subsection (b) of this 
section for Federal partial payments of Federal crop insurance 
premiums. The Corporation shall also pay operating and administra-
tive costs to insurers of policies on which the Corporation provides 
reinsurance to the same extent that such costs are covered by the 
Corporation on the Corporation's policies of insurance. Insurers of 
policies on which reinsurance is provided shall make use of licensed 
private insurance agents and brokers on the same basis as provided 
for policies of the Corporation under section 507(cX3) of this title, 
except that the provisions for compensating agents and brokers from 
premiums paid by the insured shall not apply. 
PUBLIC LAW 96-365—SEPT. 26, 1980 
94 STAT. 1317 
"(f) To provide insurance or reinsurance for production of agricul-
tural commodities in the Commonwealth of Puerto Rico, the Virgin 
Islands of the United States, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and the Trust Territory of 
the Pacific Islands in the same manner as provided in this section for 
production of 
agricultural commodities in the United States. 
"(g) To offer specific risk protection programs including, but not 
limited to, prevented planting, wildlife depredation, tree damage and 
disease, and insect infestation programs under such terms and 
conditions as the Board may determine: Provided, That no program 
may be undertaken if insurance for the specific risk involved is 
generally available from private companies. 
"(h) To include appreciation (including interest charges) as an 
insurable cost of 
production in calculating premiums and indemnities 
in connection with insurance on 3delds of timber and forests.". 
RESEARCH, SURVEYS, AND PILOT PROGRAMS 
SEC. 107. (a) Section 506(h) of the Federal Crop Insurance Act is "
^ use 1506. 
amended to read as follows: 
"(h) shall assemble data for the purpose of establishing sound 
actuarial bases for insurance on agricultural commodities;". 
(b) Section 508 of the Federal Crop Insurance Act is amended by Ante, p. 1315. „ 
adding a new subsection (i) as follows: 
"(i) To conduct research, surveys, pilot programs, and investiga-
tions relating to crop insurance and agriculture-related risks and 
losses including, but not limited to, insurance on losses involving 
reduced forage on rangeland caused by drought and by insect infesta-
tion, livestock poisoning and disease, destruction of bees due to the 
use of pesticides, and other unique problems of special risk related to, 
but not limited to, fruits, nuts, vegetables, aquacultural species, 
forest industry needs (including appreciation), and other agricultural 
products as determined by the Board: Provided, That no such pro-
grams may be undertaken if insurance protection against such risks 
is generally available from private companies. Beginning in the 1981 
crop year and ending after the 1985 crop year, the Corporation shall 
also conduct a pilot program of individual risk underwriting of crop 
insurance in not less than twenty-five counties. Under this pilot Crop insurance. 
program, to the extent that appropriate jdeld data are available, the 
Corporation shall make available to producers in such counties crop 
insurance under this title based on personalized rates and with 
guarantees determined from the producer's actual yield history. 
After the completion of any pilot program 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 Agriculture, Nutrition, and Forestiy of the Senate, a 
report of the operations of the pilot program, including its evaluation 
of the pilot program and its recommendations with respect to 
implementing the program on a national basis.". 
Evaluation, 
report to 
congressional 
committees. 
DELETION OP AUTHORITY FOR ADVISORY COMMITTEES 
SEC. 108. Section 515 of the Federal Crop Insurance Act is repealed. 
APPROPRIATIONS FOR OPERATING AND ADMINISTRATIVE EXPENSES 
SEC. 109. Effective October 1, 1980, section 516(a) of the Federal 
Crop Insurance Act is amended to read as follows: 
Repeal. 
7 u s e 1515. 
7 u s e 1516. 
94 STAT. 1318 
PUBLIC LAW 96-365—SEPT. 26, 1980 
Appropriation 
authorization. 
7 u s e 1516. 
Additional 
employees. 
Ante, p. 1312. 
"SEC. 516. (a) There are hereby authorized to be appropriated such 
sums as may be necessary to cover the operating and administrative 
costs of the Corporation, mcluding agents' and brokers' commissions, 
interest on Treasury notes and other obligations, partial premium 
payments by the Corporation, and the direct cost of loss adjusters for 
crop inspections and loss adjustments, which shall be allotted to the 
Corporation in such amounts and at such time or times as the 
Secretary of Agriculture may determine. Expenses in connection 
with agents' and brokers' commissions, interest on Treasury notes 
and other obligations, partial premium payments by the Corporation, 
and the direct cost of loss adjusters for crop inspections and loss 
adjustments may be paid from premium income and other Corpora-
tion funds, and any such payments may be restored by appropriations 
in subsequent years. The Corporation may not employ more than two 
hundred additional permanent full-time employees, in excess of the 
number of full-time employees employed by the Corporation on the 
effective date of the Federal Crop Insurance Act of 1980, to imple-
ment the provisions of this title, except in the case of, and only 
during, emergencies.". 
7 u s e 1516. 
Indemnification. 
15 u s e 714b. 
Notes or 
obligations, 
issuance. 
Redemption. 
Ante, p. 1312. 
Interest rate 
determination. 
EMERGENCY FUNDING IN CASE OP INSUFFICIENCY 
SEC. 110. Effective October 1,1980, section 516 of the Federal Crop 
Insurance Act is amended by adding new subsections (c) and (d) as 
follows: 
"(c)(1) If at any time the moneys available to the Federal Crop 
Insurance Corporation are insufficient to enable the Corporation to 
discharge its responsibility of indemnifying producers for losses 
under this title, the Corporation may, upon majority vote of its Board 
of Directors, request the Secretary of Agriculture to use the funds of 
the Commodity Credit Corporation to make timely payment of 
indemnities to producers. Upon receiving such a request, the Secre-
tary of Agriculture may use the funds of the Commodity Credit 
Corporation to meet obligations to indemnify producers for losses 
under this title. The Secretary's authority to use the funds of the 
Commodity Credit Corporation for the purposes of this subsection 
shall expire one year after the date on which the authority is first 
used. 
"(2) The authority to make commitments under this subsection, in 
excess of funds available to the Commodity Credit Corporation under 
section 4 of the Commodity Credit Corporation Charter Act and the 
Act of October 11,1978 (92 Stat. 1073), shall be effective for any fiscal 
year only to the extent provided by appropriation Acts. 
"(d) Except as provided in subsection (c), if at any time the moneys 
available to the Federal Crop Insurance Corporation are insufficient 
to enable the Corporation to discharge its responsibility of indemnify-
ing producers for losses under this title, the Corporation may issue to 
the Secretary of the Treasury notes or other obligations in such forms 
and denominations, bearing such maturities, and subject to such 
terms and conditions, as may be prescribed b^ the Secretary of the 
Treasury. Redemption of such notes or obligations shall be made by 
the Corporation from moneys available from premiums or the issu-
ance of capital stock under section 504 of this title. Such notes or 
other obligations shall bear interest at a rate determined by the 
Secretary of the Treasury, which shall be not less than a rate 
determined by taking into consideration the average market yield on 
outstanding marketable obligations of the United States of compara-
ble maturities during the month preceding the issuance of the notes 
PUBLIC LAW 96-365—SEPT. 26, 1980 
94 STAT. 1319 
or other obligations. The Secretary of the Treasury shall purchase 
any notes or other obligations issueid hereunder and for that purpose 
is authorized to use as a public debt transaction the proceeds from the 
sale of any securities issued under the Second Liberty Bond Act and 3i use 774. 
the purposes for which securities may be issued under that Act are 
extended to include any purchase of such notes or obligations. The 
Secretary of the Treasury may at any time sell any of the notes or 
other obligations acquired by the Secretary of the Treasury under 
this subsection. All redemptions, purchases, and sales by the Secre-
tary of 
the Treasury of 
such notes or other obligations shall be treated 
as public debt transactions of the United States. The borrowing 
authority provided for in this subsection may be exercised by the 
Corporation only to such extent or in such amounts as are provided in 
appropriation Acts.". 
AGRICULTURAL COMMODITY 
SEC. 111. Section 518 of 
the Federal Crop Insurance Act is amended "^ use 1518. 
to read as follows: 
"SEC. 518. 'Agricultural commodity', as used in this title, means 
wheat, cotton, flax, com, dry beans, oats, barley, rye, tobacco, rice, 
peanuts, soybeans, sugar beets, sugar cane, tomatoes, grain sorghum, 
sunflowers, raisins, oranges, sweet corn, dry peas, freezing and 
canning peas, forage, apples, grapes, potatoes, timber and forests, 
nursery crops, citrus, and other fruits and vegetables, nuts, tame hay, 
native grass, aquacultural species (including, but not limited to, any 
species of finfish, moUusk, crustacean, or other aquatic invertebrate, 
amphibian, reptile, or aquatic plant propagated or reared in a 
controlled or selected environment), or any other agricultural com-
modity, excluding livestock and stored grain, determined by the 
Board under subsection (a) or (i) of section 508 of this title, or any one ^"^7' ^^' ^^^^' 
or more of such commodities, £is the context may indicate.". 
EFFECTIVE DATE 
SEC. 112. Except as otherwise provided in this Act, the provisions of '^ use 1
5
0
4 note. 
this Act amending the Federal Crop Insurance Act shall become ^ ^^ ^^^^• 
effective on the date of 
enactment of this Act. 
TITLE n-DISASTER PAYMENTS 
PREVENTED PLANTING DISASTER AND FARM DISASTER PAYMENTS FOR 
THE 1981 CROPS 
SEC. 201. (a) Section 101(hX4) of the Agricultural Act of 1949, as '^ use I44i. 
added effective for the 1978 through 1981 crops of rice, is amended 
b y -
C
D in subparagraph (B), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of rice," and inserting in 
lieu thereof "Except as otherwise provided in subparagraph (D) 
of this paragraph, effective with respect to the 1978 through 1981 
crops of rice,"; 
(2) in subparagraph (C), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of rice," and inserting in 
lieu thereof "Except as otherwise provided in subparagraph (D) 
of this paragraph, effective with respect to the 1978 through 
1981 crops of rice,"; and 
94 STAT. 1320 
PUBLIC LAW 96-365—SEPT. 26, 1980 
(3) redesignating subparagraph (D) as subparagraph (E) and 
inserting immediately after subparagraph (C) a new subpara-
graph (D) as follows: 
*
*
(
D
) With respect to the 1981 crop of rice, cooperators on a 
farm shall not be eligible for disaster pa3rments under this 
paragraph if the cooperators elect to cover the rice acreage with 
crop insurance, part of the premium for which is paid by the 
Federal Crop Insurance Corporation under the provisions of 
Ante, p. 1315. 
section 508(b)(3) or 508(e) of the Federal Crop Insurance Act.". 
7 use 1444. 
(b) Section 103(fK5) of the Agricultural Act of 1949, as added 
effective for the 1978 through 1981 crops of upland cotton, is amended 
b y -
(1) in subparagraph (A), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of upland cotton," and 
inserting in lieu thereof "Except as otherwise provided in sub-
paragraph (C) of this paragraph, effective with respect to the 
1978 through 1981 crops of upland cotton,"; 
(2) in subparagraph (B), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of upland cotton," and 
inserting in lieu thereof "Except as otherwise provided in sub-
paragraph (C) of this paragraph, effective with respect to the 
1978 through 1981 crops of upland cotton,"; and 
(3) adding at the end thereof a new subparagraph (C) as follows: 
"(C) With respect to the 1981 crop of upland cotton, producers 
on a farm shall not be eligible for disaster payments under this 
paragraph if the producers elect to cover the upland cotton 
acreage with crop insurance, part of the premium for which is 
paid by the Federal Crop Insurance Corporation under the 
provisions of section 508(b)(3) or 508(e) of the Federal Crop 
Iiisiii*3.nc6 A.ct 
7 use 1444c. 
(c) Section 105A(b)(2) of the Agricultural Act of 1949, as added 
effective for the 1977 through 1981 crops of feed grains, is amended 
by— 
(1) in subparagraph (A), striking out "Effective only with 
respect to the 1978, 1979, and 1980 crops of feed grains," and 
inserting in lieu thereof "Except as otherwise provided in sub-
paragraph (C) of this paragraph, effective with respect to the 
1978 through 1981 crops of feed grains,"; 
(2) in subparagraph (B), striking out "Effective only with 
respect to the 1978, 1979, and 1980 crops of feed grains," and 
inserting in lieu thereof "Except as otherwise provided in sub-
paragaph (C) of this paragraph, effective with respect to the 1978 
through 1981 crops of feed grains,"; and 
(3) redesignating subparagraph (C) as subparagraph (D) and 
inserting immediately after subparagraph (B) a new subpara-
graph (C) as follows: 
"(C) With respect to the 1981 crop of feed grains, producers on a 
farm shall not be eligible for disaster pajnnents under this 
paragraph if the producers elect to cover the feed grain acreage 
with crop insurance, part of the premium for which is paid by the 
Federal Crop Insurance Corporation under the provisions of 
section 508(b)(3) or 508(e) of the Federal Crop Insurance Act.". 
7 use 1445b. 
(d) Section 107Aa))(2) of the Agricultural Act of 1949, as added 
effective for the 1977 through 1981 crops of wheat, is amended by— 
(1) in subparagraph (A), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of wheat," and inserting 
in lieu thereof "Except as otherwise provided in subparagraph 
PUBLIC LAW 96-365—SEPT. 26, 1980 
94 STAT. 1321 
(O of this paragraph, effective with respect to the 1978 through 
1981 crops of wheat,"; 
(2) in subparagraph (B), striking out "Effective only with 
respect to the 1978,1979, and 1980 crops of 
wheat," and inserting 
in ueu thereof "Except as otherwise provided in sulmaragraph 
(C) of this paragraph, effective with respect to the 1978 through 
1981 crops of 
wheat,"; and 
(3) redesignating subparagraph (C) as subparagraph (D) and 
inserting immediately after subparagraph (B) a new subpara-
graph (C), as follows: 
"(C) With respect to the 1981 crop of wheat, producers on a 
farm shall not be eligible for disaster payments under this 
paragraph if the producers elect to cover the wheat acreage with 
crop insurance, part of the premium for which is paid by the 
Federal Crop Insurance Corporation under the provisions of 
section 508(bX3) or 508(e) of the Federal Crop Insurance Act.". ^"*«' P I315. 
NOTICE TO PRODUCERS OF RIGHT TO ELECT SUBSIDIZED CROP INSURANCE 
OR DISASTER PAYMENTS ON THE 1981 CROPS 
SEC 202. The Secretary of Agriculture, after consultation with the '^ use 1
5
0
8 note. 
Board of Directors of the Federal Croj) Insurance Corporation, shall, 
at least sixty days prior to the beginning of the planting of the 1981 
crops of wheat, feed grains, upland cotton, and rice, or thirty days 
after the date of enactment of this Act, whichever is the later, notify 
producers of those commodities of their right to elect, with respect to 
the 1981 crop, between (1) declaring the farm acreage of the respec-
tive commodity eligible for disaster payments under the Agricultural 
Act of 1949, or (2) covering such farm acreage with crop insurance, '
^ use i42i 
part of the premium for which is paid by the Feder^ Crop Insurance "°*^ 
Corporation under the provisions of section 508(bX3) or 508(e) of the 
Federal Crop Insurance Act. Such notice shall include a statement of 
the percent of crop insurance premium that will be paid by the 
Corporation. 
Approved September 26, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-430 accompanying H.R. 4119 (eomm. on Agriculture) and 
No. 96-1272 (eomm. of eonference). 
SENATE REPORT No. 96-254 (Comm. on Agriculture, Nutrition, and Forestry). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Sept. 7, 10, considered and passed Senate. 
Vol. 126 (1980): Feb. 13, H.R. 4119 considered and passed House; passage vacated 
and S. 1125, amended, passed in lieu. 
Sept. 8, Senate agreed to conference report. 
Sept. 17, House agreed to conference report.