[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2095 Introduced in Senate (IS)]
103d CONGRESS
2d Session
S. 2095
To reform the Federal crop insurance program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 10 (legislative day, May 2), 1994
Mr. Leahy (for himself, Mr. Kerrey, Mr. Durenberger, and Mr. Daschle)
introduced the following bill; which was read twice and referred to the
Committee on Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
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.
This Act may be cited as the ``Federal Crop Insurance Reform Act of
1994''.
SEC. 2. CROP INSURANCE AMENDMENTS.
(a) Section 505(a) of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1505) is amended--
(1) by striking ``the'' after ``Federal crop insurance
program,'' and inserting ``one additional''; and
(2) by striking ``responsible for the farm credit programs
of the Department of Agriculture'' and inserting ``as
designated by the Secretary of Agriculture''.
(b) Section 506 of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1506) is amended--
(1) by redesignating subsections (j), (k), (l), (m), and
(n) as subsections (k), (l), (m), (n), and (o), respectively;
(2) by inserting after subsection (i) the following new
subsection:
``(j) Settling Claims.--The Corporation shall have the authority to
make final and conclusive settlement and adjustment of any claims by or
against the Corporation or the account of its fiscal officers.'';
(3) in subsection (1) (as redesignated), by striking
``contracts or agreements'' each place it appears and inserting
``contracts, agreements, or regulations'';
(4) in subsection (n)(1) (as redesignated), by striking
paragraph (B) and inserting the following new paragraph:
``(B) disqualify the person from purchasing
catastrophic risk protection or receiving noninsured
assistance for a period not to exceed 2 years and from
receiving any other benefit under this title for a
period not to exceed 10 years.'';
(5) in subsection (o) (as redesignated), by striking
paragraph (1) and inserting the following new paragraph:
``(1) instituting appropriate requirements for
documentation of the actual production history of insured
producers to establish recorded or appraised yields for Federal
crop insurance coverage that more accurately reflect the
associated actuarial risk. The Corporation may not carry out
this paragraph in a manner that would prevent beginning
farmers, as determined by the Secretary, from obtaining Federal
crop insurance.''; and
(6) by adding at the end thereof the following new
subsections:
``(p) Regulations.--The Secretary and the Corporation,
respectively, are authorized to issue regulations as may be necessary
to carry out this title.
``(q) Source of Funding.--There is hereby appropriated, without
fiscal year limitation, such sums as may be necessary to carry out the
purpose of the insurance fund.''.
(c) Section 507 of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1507) is amended--
(1) in subsection (a), by striking ``, and county crop
insurance committeemen'';
(2) in subsection (c), by striking the words beginning with
``, in which case the agent or broker'' through ``the agent or
broker has caused the error or omission''; and
(3) in subsection (d), by replacing the comma with a period
after the words ``section 516 of this Act'', and by deleting
the remainder of the subsection.
(d) Section 508 of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1508) is amended--
(1) by striking subsection (a) and inserting the following
new subsection:
``(a) Authority To Offer Insurance.--
``(1) If sufficient actuarial data are available, as
determined by the Board, the Corporation may insure or provide
reinsurance for insurers of 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. To qualify for coverage under
these plans of insurance, the losses of the insured commodity
shall be due to drought, flood or other natural disaster as
determined by the Secretary. 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.
Insurance provided under this subsection 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 those areas and under such circumstances
where it is customary to so reseed; or
``(C) the failure of the producer to follow good
farming practices, as determined by the Corporation.'';
(2) by striking subsections (c), (e), (g), (l) and (n);
(3) by redesignating subsections (b), (d), (f), (h), (i),
(j), (k), and (m) as subsections (g), (h), (i), (j), (k), (l),
(m), and (n), respectively;
(4) by inserting after subsection (a) the following new
subsections:
``(b) Catastrophic Risk Protection.--
``(1) The Corporation shall offer a catastrophic risk
protection plan to indemnify producers for crop loss due to
loss of yield and prevented planting 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 that acreage for that crop year.
``(2) Catastrophic risk protection shall offer the producer
50 percent loss in yield coverage, on an area or individual
yield basis, indemnified at 60 percent of the expected market
price or a comparable coverage, as determined by the
Corporation.
``(3) Producers shall have the option of basing their
catastrophic coverage on either an individual yield and loss
basis or on an area yield and loss basis when both options are
offered by the Corporation.
``(4) For catastrophic risk protection, producers shall pay
an administrative fee. The administrative fees shall be $50 per
crop per county, not to exceed $100 per producer per county.
The administrative fee shall be paid at the service point--the
United States Department of Agriculture office or the approved
private insurance provider--at the time of application. This
administrative fee shall be waived for limited resource
farmers, as defined by the Corporation, or if the producer
elects to purchase additional protection at 65 percent or more
of the recorded or appraised average yield and 100 percent of
the expected market price, or an equivalent coverage, offered
by approved crop insurance providers. Funds collected as
administrative fees shall be available, subject to
appropriations, for salaries and expenses.
``(5) Participation in the catastrophic risk coverage for
any producer's crop on any land in the county requires
participation for that producer's crop on all insurable land of
the producer in the county.
``(6) To be eligible for any price support, production
adjustment, or conservation program administered by the United
States Department of Agriculture for any crop, or for loans
under any program of the Farmers Home Administration or any
successor agency, the producer must obtain at least the
catastrophic level of insurance for all crops of economic
significance grown on all farms in the county in which the
producer has an interest, if insurance is available in the
county for those crops. The term `economic significance' shall
mean any 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.
``(7) The Board may limit insurance in any county or area,
or on any farm, on the basis of the insurance risk involved.
``(c) Coverage Levels Generally.--
``(1) The Corporation shall offer plans of insurance
providing levels of coverage greater than that available under
catastrophic risk protection. Producers may only purchase there
other plans from approved private insurance providers, if such
private insurance is available. Nothing contained herein
restricts the Corporation from offering insurance if coverage
from private insurance providers is unavailable. If the
producer has already applied for catastrophic risk protection
at the United States Department of Agriculture office and
elects to purchase additional coverage, the insurance file for
that producer shall be transferred to the approved private
insurance provider servicing the additional coverage policy and
the administrative fee for the crop for which additional
coverage at 65 percent or more of the recorded or appraised
average yield and 100 percent of the expected market price, or
an equivalent coverage, is obtained shall be refunded to the
insured.
``(2) Producers shall have the option of purchasing
additional coverage based on either an individual yield and
loss basis or on an area yield and loss basis when both options
are offered by the Corporation.
``(3) 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.
``(4) 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.
``(5) Insurance coverage shall be made available to the
producer on the basis of any price election that equals or is
less than that established by the Board and the coverage shall
be quoted in terms of dollars per acre: Provided, That the
Corporation may establish minimum price elections below which
levels of insurance shall not be offered.
``(6) For levels of coverage 65 percent or more of the
recorded or appraised average yield and 100 percent of the
expected market price, or an equivalent coverage, the producer
may elect to delete from the insurance coverage provided under
this title coverage against damage caused by fire and hail,
provided an equivalent or greater dollar amount of coverage for
damage caused by fire and hail is obtained from a private hail/
fire insurance provider. Upon written notice of such election
to the company issuing the policy providing coverage under this
title and submission of evidence of substitute coverage on the
commodity insured, the producer's premium 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 coverage under this title for the crop.
``(7) The Board may enter into agreements with any State or
agency of a State under which such State or agency may pay to
the approved insurance provider an additional premium subsidy
to further reduce the portion of the premium paid by farmers in
such State.
``(8) The Board may limit or refuse insurance in any county
or area, or on any farm, on the basis of the insurance risk
involved.
``(d) Premiums.--
``(1) The Corporation shall fix adequate premiums for all
its plans of insurance at such rates as the Board deems
actuarially sufficient to attain an expected loss ratio of not
greater than 1.1.
``(A) For catastrophic risk protection coverage,
the amount of premium shall be sufficient to cover
anticipated losses and a reasonable reserve.
``(B) For levels of coverage below 65 percent of
the recorded or appraised average yield and 100 percent
of the expected market price, or an equivalent
coverage, but greater than catastrophic risk
protection, the amount of premium shall be sufficient
to cover anticipated losses, a reasonable reserve, and
an amount for operating and administrative expenses, as
determined by the Corporation, that is less than the
amount established for coverage at 65 percent and 100
percent of the expected market price, or an equivalent
coverage.
``(C) For levels of coverage of at least 65 percent
of the recorded or appraised average yield and 100
percent of the expected market price, or an equivalent
coverage, the amount of premium shall be sufficient to
cover anticipated losses, a reasonable reserve, and an
amount to pay the operating and administrative expenses
as determined by the Corporation on an industry-wide
basis as a percent of the total premium.
``(2) For the purpose of encouraging the broadest possible
participation, the Corporation shall pay a part of the premium
equivalent to--
``(A) for catastrophic risk protection coverage, an
amount equal to the premium established in paragraph
(1)(A) of this section;
``(B) for levels of coverage below 65 percent of
the recorded or appraised average yield and 100 percent
of the expected market price or an equivalent coverage,
but greater than catastrophic risk protection, the
amount of premium established for catastrophic risk
protection coverage, a reasonable reserve, plus the
amount of operating and administrative expenses
established in paragraph (1)(B) of this section; and
``(C) for levels of coverage at or greater than 65
percent of the recorded and appraised yield and 100
percent of the expected market price, or an equivalent
coverage, on an individual or area basis, an amount
equal to the premium established for 50 percent loss in
yield indemnified at 75 percent of the expected market
price, a reasonable reserve, plus the amount of
operating and administrative expenses established in
paragraph (1)(C) of this section.
``(3) If a private insurance provider determines that it
may provide insurance more efficiently than the expense
reimbursement amount set by the Corporation, the private
insurance provider, if approved by the Board, may reduce the
premium charged the insured by the amount of such efficiency.
Any such reductions shall be subject to the rules, limitations,
and procedures established by the Corporation.
``(e) Eligibility.--To participate in catastrophic risk protection
coverage under this title, producers may make application at the local
United States Department of Agriculture office or to an approved
private crop insurance provider. For all coverages, producers shall be
required to--
``(1) purchase crop insurance on or before the sales
closing date for the crop by providing the required information
and executing the required documents. Such 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 whenever feasible;
however, the Corporation will establish all sales closing dates
to assure that the goal of actuarial soundness for the crop
insurance program is met;
``(2) provide records, acceptable to the Corporation, of
previous acreage and production or accept a Corporation
determined yield; and
``(3) report acreage planted and prevented from planting by
the designated acreage reporting date for that crop and
location as established by the Corporation.
``(f) Yield Determinations.--
``(1) In general.--The Corporation shall implement crop
insurance underwriting rules that ensure that yield coverage,
as specified in subsection (f)(2) of this section, is provided
to all producers participating in the Federal crop insurance
program.
``(2) Yield coverage plans.--
``(A) Actual production history.--
``(i) This plan uses the producer's actual
production history for the 4 previous
consecutive crop years without penalty, up to a
production data base of 10 consecutive years,
subject to paragraph (ii), to determine yield
coverage.
``(ii) If the producer does not submit
adequate documentation of history for a crop,
the producer shall be assigned, as the
producer's farm program yield, 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.
``(B) 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 the
terms and conditions established by the Corporation.
``(C) Commodity-by-commodity basis.--A producer may
choose between either individual yield or area yield
coverage, where available, on a commodity-by-commodity
basis.
``(D) Notice.--The Corporation shall ensure that,
whenever the yield coverage provisions of this section
are effective, producers are given adequate notice of
such provisions in advance of the crop insurance
application period for the crops to which such
provisions first will apply.'';
(5) in subsection (g) (as redesignated)--
(A) in paragraph (1), by striking ``(a)'' and
inserting ``(c)'';
(B) by striking paragraph (2) and inserting the
following new paragraph:
``(2) Preparation 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,
including the requirements concerning the levels of coverage
and rates and the requirement that a price level for each
commodity insured must equal the projected market price for the
commodity as established by the Board. Such policy may only be
subsidized at an amount equivalent to coverage that is
authorized under this title.'';
(C) in paragraph (3)--
(i) by striking ``taking into consideration
the risks covered by the policy or other
material'';
(ii) by inserting after ``more than one
reinsurance agreement'' the words ``with the
private insurance provider''; and
(iii) by striking title ``V'' and inserting
``title 5''; and
(D) by striking paragraph (4) and inserting the
following new paragraph:
``(4) Required publication.--Any policies, provisions of
policies, and rates 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 same terms and conditions as between the
Corporation and the submitting person.'';
(6) by striking subsection (i) (as redesignated) and
inserting the following new subsection:
``(i) Claims For Losses.--The Corporation may provide for
adjustment and payment of claims for losses as provided under
subsection (a) of this section under rules prescribed by the Board. The
rules prescribed by the Board shall establish standards to ensure that
all claims for losses are adjusted, to the extent practicable, in a
uniform and timely manner. If any claim for indemnity is denied by the
Corporation, an action on such claim may be brought against the
Corporation and the insurance provider 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 written
notice of denial of the claim is provided to the claimant.'';
(7) by striking subsection (j) (as redesignated) and
inserting the following new subsection:
``(j) Reinsurance.--Notwithstanding any other provision of this
title, the Corporation is directed, to the maximum extent practicable,
to provide reinsurance upon such terms and conditions as the Board may
determine to be consistent with subsections (b) and (c) of this section
and sound reinsurance principles to insurers, as defined by the
Corporation, that insure producers of any agricultural commodity under
a plan or plans acceptable to the Corporation. The Corporation's
reinsurance agreements with the reinsured companies shall require the
reinsured companies to bear a sufficient share of any potential loss
under such 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 availability of private reinsurance.'';
(8) in subsection (k) (as redesignated), by striking
``provide'' after ``The Corporation may'' and inserting ``offer
plans of''; and
(9) by striking subsection (n) (as redesignated) and
inserting the following new subsection:
``(n) Information Collection on Crop Insurance.--The Corporation
shall make available to producers through local offices of the
Department of Agriculture--
``(1) current and complete information on all aspects of
Federal crop insurance; and
``(2) a listing of insurance agents.''.
(e) Section 508A of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1508A) is repealed.
(f) Section 511 of title V of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1511) is amended by inserting ``its contracts of
insurance and premium thereon, whether insured directly or reinsured by
the Corporation,'' after ``The Corporation, including''.
(g) Title V of the Agricultural Adjustment Act of 1938 is amended
by striking section 516 and inserting the following new section:
``SEC. 516. AUTHORIZATION OF APPROPRIATIONS.
``(a) Appropriations.--There are hereby authorized to be
appropriated such sums as may be necessary, including funds collected
as administrative fees, to cover the administrative and operating
expenses of the Corporation.
``(b) Insurance Fund.--There shall be established an insurance fund
for deposit of premium income, income from reinsurance operations, and
appropriations provided by this Act. The Corporation will pay amounts
due under its reinsurance agreements with private insurance providers,
including premium subsidies, from the fund.''.
(h) Title V of the Agricultural Adjustment Act of 1938 is amended
by striking section 520 and inserting the following new section:
``SEC. 520. PRODUCER ELIGIBILITY.
``Except as otherwise provided in this title, no producer shall be
denied insurance under this title if--
``(1) for purposes of catastrophic risk protection
coverage, the producer meets the definition of person, as
defined by the Secretary; and
``(2) for purposes of any other plan of insurance, the
producer is eighteen years of age and has a bona fide insurable
interest in a crop as an owner-operator, landlord, tenant, or
sharecropper.''.
SEC. 3. ADVISORY COMMITTEE.
Title V of the Agricultural Adjustment Act of 1938 is amended by
adding the following new section:
``SEC. 521. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.
``(a) Establishment.--The Secretary may establish within the
Department of Agriculture a committee to be known as the Advisory
Committee for Federal Crop Insurance which shall remain in existence
until September 30, 1998.
``(b) Membership.--The Advisory Committee shall be composed of the
Manager of the Corporation, the Secretary or his designee, and not less
than ten representatives of organizations or agencies involved with the
Federal crop insurance program, which may include the following:
insurance companies; insurance agents; farm producer organizations;
experts on agronomic practices; and banking and lending institutions.
``(c) Administrative Provisions.--
``(1) Terms.--Members of the Advisory Committee shall be
appointed by the Secretary for a term of up to two years from
nominations made by the participating organizations. The terms
of the members 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.
``(d) 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.
``(e) Reports.--Not later than June 30 of each year, the Advisory
Committee shall prepare, and submit to the Secretary, a report
specifying its conclusions on--
``(1) the progress toward implementation of the provisions
of this title;
``(2) the actuarial soundness of the Federal crop insurance
program; and
``(3) the rate of participation in both the catastrophic
and the additional coverage programs.''.
SEC. 4. NONINSURED ASSISTANCE.
Title V of the Agricultural Adjustment Act of 1938 is amended by
adding the following new section:
``SEC. 522. NONINSURED ASSISTANCE PROGRAM.
``(a) Eligibility.--
``(1) A noninsured assistance program is established to
provide coverage equivalent to the catastrophic risk protection
insurance for crops for which catastrophic risk protection
insurance is not available. Crops covered include all
commercial crops and commodities for which catastrophic risk
protection coverage is not available and that are produced for
food or fiber on a commercial basis but shall not include
livestock. Noninsured assistance 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 those areas and under such circumstances
where it is customary to so reseed; or
``(C) the failure of the producer to follow good
farming practices, as determined by the Corporation.
``(2) Producers shall make a timely application for
noninsured assistance at the United States Department of
Agriculture office.
``(3) Producers shall provide records, acceptable to the
Corporation, of previous crop acreage and production or the
producers shall accept a yield as determined by the
Corporation.
``(4) Producers shall report acreage planted and prevented
from being planted by the designated acreage reporting date for
that crop and location as established by the Corporation.
``(5) Producers of non-program crops shall not be eligible
for noninsured assistance unless the area, as determined by the
Corporation, average yield, or an equivalent measure in the
event yield data are not available, for that crop falls below
65 percent of the expected area yield as established by the
Corporation.
``(6) The Corporation shall make a prevented planting
noninsured assistance payment if the producer is prevented from
planting more than 35 percent of the acreage intended for the
crop because of drought, flood, or other natural disaster as
determined by the Secretary.
``(7) If, because of drought, flood, or other natural
disaster as determined by the Secretary, the total quantity of
the crop that a producer is able to harvest on any farm is less
than 50 percent of the expected area yield for the crop, as
determined by the Corporation, factored for the producer's
interest for the crop, the Corporation shall make a reduced
yield noninsured assistance payment.
``(8) A person who has qualifying gross revenues in excess
of $2,000,000 annually, as determined by the Secretary, shall
not be eligible to receive any noninsured assistance payments.
For purposes of this section, the term `qualifying gross
revenues' means--
``(A) if a majority of the person's gross revenue
is received from farming, ranching, and forestry
operations, the gross revenue from the person's
farming, ranching, and forestry operations; and
``(B) if less than a majority of the person's gross
revenue is received from farming, ranching, and
forestry operations, the person's gross revenue from
all sources.
``(b) Payment Rate.--If the producer is eligible for noninsured
assistance, payments shall be made for losses in excess of 50 percent
of the established yield for the crop at 60 percent of the average
market price for that crop or any comparable coverage as determined by
the Corporation.
``(c) Farm Yields.--
``(1) The Corporation shall establish noninsured assistance
program farm yields for crops for the purposes of this section.
``(2) If the producer can provide satisfactory evidence of
the producer's actual production history for the four previous
consecutive crop years, up to a production data base of ten
consecutive crop years, the yield of the farm shall be based on
such proven yield.
``(3) If the producer does not submit adequate
documentation of such history for the crop, the producer shall
be assigned as the producer's farm program yield not less than
65 percent of the transitional yield (adjusted to reflect
actual experience), as specified in regulations issued by the
Corporation based on production history requirements.
``(d) Payment of Losses.--Payments for noninsured assistance losses
under this section shall be made from the insurance fund and shall be
reimbursed from appropriations provided under this Act. Such losses
shall not be included in calculating the premiums charged to producers
for insurance.
``(e) Payment Limitations.--
``(1) The total amount of payments that a person shall be
entitled to receive annually under this section may not exceed
$100,000.
``(2) The Corporation shall issue regulations defining the
term `person' that shall conform, to the extent practicable, to
the regulations defining `person' issued under section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308).''.
SEC. 5. CONFORMING AMENDMENTS.
(a) The Agricultural Act of 1949 is amended--
(1) in section 101B (7 U.S.C. 1441-2)--
(A) by striking subsection (c)(1)(F); and
(B) in subsection (c) by striking paragraph (2) and
inserting in lieu thereof the following:
``(2) Crop insurance requirement.--As a condition of
receiving any benefits (including payments) under this section,
the producer must, if offered by the Federal Crop Insurance
Corporation, obtain at least the catastrophic risk protection
insurance coverage for the crop and crop year in which the
benefit is sought.'';
(2) in section 103(h) (7 U.S.C. 1444), by adding at the end
the following new paragraph:
``(17) As a condition of receiving any benefits (including
payments) under this section, the producer must, if offered by
the Federal Crop Insurance Corporation, obtain at least the
catastrophic risk protection insurance coverage for the crop
and crop year in which the benefit is sought.'';
(3) in section 103B (7 U.S.C. 1444-2)--
(A) by striking subsection (c)(1)(F); and
(B) in subsection (c) by striking paragraph (2) and
inserting in lieu thereof the following:
``(2) Crop insurance requirement.--As a condition of
receiving any benefits (including payments) under this section,
the producer must, if offered by the Federal Crop Insurance
Corporation, obtain at least the catastrophic risk protection
insurance coverage for the crop and crop year in which the
benefit is sought.'';
(4) in section 105B (7 U.S.C. 1444f)--
(A) by striking subsection (c)(1)(G); and
(B) in subsection (c) by striking paragraph (2) and
inserting in lieu thereof the following:
``(2) Crop insurance requirement.--As a condition of
receiving any benefits (including payments) under this section,
the producer must, if offered by the Federal Crop Insurance
Corporation, obtain at least the catastrophic risk protection
insurance coverage for the crop and crop year in which the
benefit is sought.'';
(5) in section 107B (7 U.S.C. 1444b-3a)--
(A) by striking subsection (c)(1)(G); and
(B) in subsection (c) by striking paragraph (2) and
inserting in lieu thereof the following:
``(2) Crop insurance requirement.--As a condition of
receiving any benefits (including payments) under this section,
the producer must, if offered by the Federal Crop Insurance
Corporation, obtain at least the catastrophic risk protection
insurance coverage for the crop and crop year in which the
benefit is sought.'';
(6) in section 108B (7 U.S.C. 1445c-3), by adding at the
end the following new subsection:
``(i) Crop Insurance Requirement.--As a condition of receiving any
benefits (including payments) under this section, the producer must, if
offered by the Federal Crop Insurance Corporation, obtain at least the
catastrophic risk protection insurance coverage for the crop and crop
year in which the benefit is sought.'';
(7) in section 205 (7 U.S.C. 1446f), by adding at the end
the following new subsection:
``(o) Crop Insurance Requirement.--As a condition of receiving any
benefits (including payments) under this section, the producer must, if
offered by the Federal Crop Insurance Corporation, obtain at least the
catastrophic risk protection insurance coverage for the crop and crop
year in which the benefit is sought.'';
(8) in section 206 (7 U.S.C. 1446g), by adding at the end
the following new subsection:
``(k) Crop Insurance Requirement.--As a condition of receiving any
benefits under this section, the producer must, if offered by the
Federal Crop Insurance Corporation, obtain at least the catastrophic
risk protection insurance coverage for the crop and crop year in which
the benefit is sought.'';
(9) in section 207 (7 U.S.C. 1446h), by adding at the end
the following new subsection:
``(k) Crop Insurance Requirement.--As a condition of receiving any
benefits (including payments) under this section, the producer must, if
offered by the Federal Corp Insurance Corporation, obtain at least the
catastrophic risk protection insurance coverage for the crop and crop
year in which the benefit is sought.''; and
(10) by repealing section 208 (7 U.S.C. 1446i).
(b) Farmers Home Administration Programs.--The Consolidated Farm
and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding
at the end the following new section:
``SEC. 371. CROP INSURANCE REQUIREMENT.
``(a) In General.--As a condition of obtaining any benefit
(including a direct loan, loan guarantee, or payment) described in
subsection (b), a borrower must obtain at least catastrophic risk
protection insurance coverage under section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) for the crop and crop year for which the
benefit is sought, if the coverage is offered by the Secretary.
``(b) Applicable Benefits.--Subsection (a) shall apply to--
``(1) a farm ownership loan (FO) under section 303;
``(2) an operating loan (OL) under section 312; and
``(3) an emergency loan (EM) under section 321.''.
(c) The Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by striking chapters 1, 2, and 3 of subtitle B of title XXII.
(d) Section 251(b)(2)(D) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(D)), is amended
effective July 1, 1995, by striking subparagraph (i) and inserting the
following new subparagraph:
``(i) If, for any fiscal year, appropriations for discretionary
accounts are enacted that the President designates as emergency
requirements and that Congress so designates in statute, the adjustment
shall be the total of such appropriations in discretionary accounts
designated as emergency requirements and the outlays flowing in all
years from such appropriations: Provided, That this provision shall not
apply to appropriations to cover agricultural crop disaster
assistance.''.
SEC. 6. EFFECTIVE DATE.
Except as otherwise specifically provided in section 5(c), this Act
shall become effective beginning with the crop year immediately
following the date of enactment.
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