[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2095 Reported in Senate (RS)]

                                                       Calendar No. 507

103d CONGRESS

  2d Session

                                S. 2095

                          [Report No. 103-301]

_______________________________________________________________________

                                 A BILL

 To reform the Federal crop insurance program, and for other purposes.

_______________________________________________________________________

                 July 1 (legislative day, June 7), 1994

                       Reported with an amendment





                                                       Calendar No. 507
103d CONGRESS
  2d Session
                                S. 2095

                          [Report No. 103-301]

 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

                 July 1 (legislative day, June 7), 1994

                Reported by Mr. Leahy, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

-S-E-C-T-I-O-N -1-. -S-H-O-R-T -T-I-T-L-E-.

    -T-h-i-s -A-c-t -m-a-y -b-e -c-i-t-e-d -a-s -t-h-e 
-`-`-F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e -R-e-f-o-r-m -A-c-t -o-f 
-1-9-9-4-'-'-.

-S-E-C-. -2-. -C-R-O-P -I-N-S-U-R-A-N-C-E -A-M-E-N-D-M-E-N-T-S-.

    -(-a-) -S-e-c-t-i-o-n -5-0-5-(-a-) -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-0-5-) -i-s -a-m-e-n-d-e-d---
            -(-1-) -b-y -s-t-r-i-k-i-n-g -`-`-t-h-e-'-' -a-f-t-e-r 
        -`-`-F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e 
        -p-r-o-g-r-a-m-,-'-' -a-n-d -i-n-s-e-r-t-i-n-g -`-`-o-n-e 
        -a-d-d-i-t-i-o-n-a-l-'-'-; -a-n-d
            -(-2-) -b-y -s-t-r-i-k-i-n-g -`-`-r-e-s-p-o-n-s-i-b-l-e 
        -f-o-r -t-h-e -f-a-r-m -c-r-e-d-i-t -p-r-o-g-r-a-m-s -o-f 
        -t-h-e -D-e-p-a-r-t-m-e-n-t -o-f -A-g-r-i-c-u-l-t-u-r-e-'-' 
        -a-n-d -i-n-s-e-r-t-i-n-g -`-`-a-s -d-e-s-i-g-n-a-t-e-d -b-y 
        -t-h-e -S-e-c-r-e-t-a-r-y -o-f -A-g-r-i-c-u-l-t-u-r-e-'-'-.
    -(-b-) -S-e-c-t-i-o-n -5-0-6 -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-0-6-) -i-s -a-m-e-n-d-e-d---
            -(-1-) -b-y -r-e-d-e-s-i-g-n-a-t-i-n-g 
        -s-u-b-s-e-c-t-i-o-n-s -(-j-)-, -(-k-)-, -(-l-)-, -(-m-)-, 
        -a-n-d -(-n-) -a-s -s-u-b-s-e-c-t-i-o-n-s -(-k-)-, -(-l-)-, 
        -(-m-)-, -(-n-)-, -a-n-d -(-o-)-, -r-e-s-p-e-c-t-i-v-e-l-y-;
            -(-2-) -b-y -i-n-s-e-r-t-i-n-g -a-f-t-e-r 
        -s-u-b-s-e-c-t-i-o-n -(-i-) -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w 
        -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-j-) -S-e-t-t-l-i-n-g -C-l-a-i-m-s-.----T-h-e 
-C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l -h-a-v-e -t-h-e -a-u-t-h-o-r-i-t-y 
-t-o -m-a-k-e -f-i-n-a-l -a-n-d -c-o-n-c-l-u-s-i-v-e 
-s-e-t-t-l-e-m-e-n-t -a-n-d -a-d-j-u-s-t-m-e-n-t -o-f -a-n-y 
-c-l-a-i-m-s -b-y -o-r -a-g-a-i-n-s-t -t-h-e -C-o-r-p-o-r-a-t-i-o-n 
-o-r -t-h-e -a-c-c-o-u-n-t -o-f -i-t-s -f-i-s-c-a-l 
-o-f-f-i-c-e-r-s-.-'-'-;
            -(-3-) -i-n -s-u-b-s-e-c-t-i-o-n -(-1-) -(-a-s 
        -r-e-d-e-s-i-g-n-a-t-e-d-)-, -b-y -s-t-r-i-k-i-n-g 
        -`-`-c-o-n-t-r-a-c-t-s -o-r -a-g-r-e-e-m-e-n-t-s-'-' -e-a-c-h 
        -p-l-a-c-e -i-t -a-p-p-e-a-r-s -a-n-d -i-n-s-e-r-t-i-n-g 
        -`-`-c-o-n-t-r-a-c-t-s-, -a-g-r-e-e-m-e-n-t-s-, -o-r 
        -r-e-g-u-l-a-t-i-o-n-s-'-'-;
            -(-4-) -i-n -s-u-b-s-e-c-t-i-o-n -(-n-)-(-1-) -(-a-s 
        -r-e-d-e-s-i-g-n-a-t-e-d-)-, -b-y -s-t-r-i-k-i-n-g 
        -p-a-r-a-g-r-a-p-h -(-B-) -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -p-a-r-a-g-r-a-p-h-:
                    -`-`-(-B-) -d-i-s-q-u-a-l-i-f-y -t-h-e -p-e-r-s-o-n 
                -f-r-o-m -p-u-r-c-h-a-s-i-n-g -c-a-t-a-s-t-r-o-p-h-i-c 
                -r-i-s-k -p-r-o-t-e-c-t-i-o-n -o-r -r-e-c-e-i-v-i-n-g 
                -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e -f-o-r -a 
                -p-e-r-i-o-d -n-o-t -t-o -e-x-c-e-e-d -2 -y-e-a-r-s 
                -a-n-d -f-r-o-m -r-e-c-e-i-v-i-n-g -a-n-y -o-t-h-e-r 
                -b-e-n-e-f-i-t -u-n-d-e-r -t-h-i-s -t-i-t-l-e -f-o-r -a 
                -p-e-r-i-o-d -n-o-t -t-o -e-x-c-e-e-d -1-0 
                -y-e-a-r-s-.-'-'-;
            -(-5-) -i-n -s-u-b-s-e-c-t-i-o-n -(-o-) -(-a-s 
        -r-e-d-e-s-i-g-n-a-t-e-d-)-, -b-y -s-t-r-i-k-i-n-g 
        -p-a-r-a-g-r-a-p-h -(-1-) -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -p-a-r-a-g-r-a-p-h-:
            -`-`-(-1-) -i-n-s-t-i-t-u-t-i-n-g -a-p-p-r-o-p-r-i-a-t-e 
        -r-e-q-u-i-r-e-m-e-n-t-s -f-o-r -d-o-c-u-m-e-n-t-a-t-i-o-n -o-f 
        -t-h-e -a-c-t-u-a-l -p-r-o-d-u-c-t-i-o-n -h-i-s-t-o-r-y -o-f 
        -i-n-s-u-r-e-d -p-r-o-d-u-c-e-r-s -t-o -e-s-t-a-b-l-i-s-h 
        -r-e-c-o-r-d-e-d -o-r -a-p-p-r-a-i-s-e-d -y-i-e-l-d-s -f-o-r 
        -F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e 
        -t-h-a-t -m-o-r-e -a-c-c-u-r-a-t-e-l-y -r-e-f-l-e-c-t -t-h-e 
        -a-s-s-o-c-i-a-t-e-d -a-c-t-u-a-r-i-a-l -r-i-s-k-. -T-h-e 
        -C-o-r-p-o-r-a-t-i-o-n -m-a-y -n-o-t -c-a-r-r-y -o-u-t -t-h-i-s 
        -p-a-r-a-g-r-a-p-h -i-n -a -m-a-n-n-e-r -t-h-a-t -w-o-u-l-d 
        -p-r-e-v-e-n-t -b-e-g-i-n-n-i-n-g -f-a-r-m-e-r-s-, -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-, -f-r-o-m 
        -o-b-t-a-i-n-i-n-g -F-e-d-e-r-a-l -c-r-o-p 
        -i-n-s-u-r-a-n-c-e-.-'-'-; -a-n-d
            -(-6-) -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e-r-e-o-f 
        -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-s-:
    -`-`-(-p-) -R-e-g-u-l-a-t-i-o-n-s-.----T-h-e -S-e-c-r-e-t-a-r-y 
-a-n-d -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -r-e-s-p-e-c-t-i-v-e-l-y-, 
-a-r-e -a-u-t-h-o-r-i-z-e-d -t-o -i-s-s-u-e -r-e-g-u-l-a-t-i-o-n-s -a-s 
-m-a-y -b-e -n-e-c-e-s-s-a-r-y -t-o -c-a-r-r-y -o-u-t -t-h-i-s 
-t-i-t-l-e-.
    -`-`-(-q-) -S-o-u-r-c-e -o-f -F-u-n-d-i-n-g-.---T-h-e-r-e -i-s 
-h-e-r-e-b-y -a-p-p-r-o-p-r-i-a-t-e-d-, -w-i-t-h-o-u-t -f-i-s-c-a-l 
-y-e-a-r -l-i-m-i-t-a-t-i-o-n-, -s-u-c-h -s-u-m-s -a-s -m-a-y -b-e 
-n-e-c-e-s-s-a-r-y -t-o -c-a-r-r-y -o-u-t -t-h-e -p-u-r-p-o-s-e -o-f 
-t-h-e -i-n-s-u-r-a-n-c-e -f-u-n-d-.-'-'-.
    -(-c-) -S-e-c-t-i-o-n -5-0-7 -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-0-7-) -i-s -a-m-e-n-d-e-d---
            -(-1-) -i-n -s-u-b-s-e-c-t-i-o-n -(-a-)-, -b-y 
        -s-t-r-i-k-i-n-g -`-`-, -a-n-d -c-o-u-n-t-y -c-r-o-p 
        -i-n-s-u-r-a-n-c-e -c-o-m-m-i-t-t-e-e-m-e-n-'-'-;
            -(-2-) -i-n -s-u-b-s-e-c-t-i-o-n -(-c-)-, -b-y 
        -s-t-r-i-k-i-n-g -t-h-e -w-o-r-d-s -b-e-g-i-n-n-i-n-g -w-i-t-h 
        -`-`-, -i-n -w-h-i-c-h -c-a-s-e -t-h-e -a-g-e-n-t -o-r 
        -b-r-o-k-e-r-'-' -t-h-r-o-u-g-h -`-`-t-h-e -a-g-e-n-t -o-r 
        -b-r-o-k-e-r -h-a-s -c-a-u-s-e-d -t-h-e -e-r-r-o-r -o-r 
        -o-m-i-s-s-i-o-n-'-'-; -a-n-d
            -(-3-) -i-n -s-u-b-s-e-c-t-i-o-n -(-d-)-, -b-y 
        -r-e-p-l-a-c-i-n-g -t-h-e -c-o-m-m-a -w-i-t-h -a -p-e-r-i-o-d 
        -a-f-t-e-r -t-h-e -w-o-r-d-s -`-`-s-e-c-t-i-o-n -5-1-6 -o-f 
        -t-h-i-s -A-c-t-'-'-, -a-n-d -b-y -d-e-l-e-t-i-n-g -t-h-e 
        -r-e-m-a-i-n-d-e-r -o-f -t-h-e -s-u-b-s-e-c-t-i-o-n-.
    -(-d-) -S-e-c-t-i-o-n -5-0-8 -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-0-8-) -i-s -a-m-e-n-d-e-d---
            -(-1-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n -(-a-) 
        -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w 
        -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-a-) -A-u-t-h-o-r-i-t-y -T-o -O-f-f-e-r 
-I-n-s-u-r-a-n-c-e-.--
            -`-`-(-1-) -I-f -s-u-f-f-i-c-i-e-n-t -a-c-t-u-a-r-i-a-l 
        -d-a-t-a -a-r-e -a-v-a-i-l-a-b-l-e-, -a-s -d-e-t-e-r-m-i-n-e-d 
        -b-y -t-h-e -B-o-a-r-d-, -t-h-e -C-o-r-p-o-r-a-t-i-o-n -m-a-y 
        -i-n-s-u-r-e -o-r -p-r-o-v-i-d-e -r-e-i-n-s-u-r-a-n-c-e -f-o-r 
        -i-n-s-u-r-e-r-s -o-f -p-r-o-d-u-c-e-r-s -o-f 
        -a-g-r-i-c-u-l-t-u-r-a-l -c-o-m-m-o-d-i-t-i-e-s -g-r-o-w-n -i-n 
        -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -u-n-d-e-r -a-n-y -p-l-a-n 
        -o-r -p-l-a-n-s -o-f -i-n-s-u-r-a-n-c-e -d-e-t-e-r-m-i-n-e-d 
        -b-y -t-h-e -B-o-a-r-d -t-o -b-e -a-d-a-p-t-e-d -t-o -t-h-e 
        -a-g-r-i-c-u-l-t-u-r-a-l -c-o-m-m-o-d-i-t-y -i-n-v-o-l-v-e-d-. 
        -T-o -q-u-a-l-i-f-y -f-o-r -c-o-v-e-r-a-g-e -u-n-d-e-r 
        -t-h-e-s-e -p-l-a-n-s -o-f -i-n-s-u-r-a-n-c-e-, -t-h-e 
        -l-o-s-s-e-s -o-f -t-h-e -i-n-s-u-r-e-d -c-o-m-m-o-d-i-t-y 
        -s-h-a-l-l -b-e -d-u-e -t-o -d-r-o-u-g-h-t-, -f-l-o-o-d -o-r 
        -o-t-h-e-r -n-a-t-u-r-a-l -d-i-s-a-s-t-e-r -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-. 
        -E-x-c-e-p-t -i-n -t-h-e -c-a-s-e -o-f -t-o-b-a-c-c-o-, 
        -i-n-s-u-r-a-n-c-e -s-h-a-l-l -n-o-t -e-x-t-e-n-d -b-e-y-o-n-d 
        -t-h-e -p-e-r-i-o-d -t-h-e -i-n-s-u-r-e-d -c-o-m-m-o-d-i-t-y 
        -i-s -i-n -t-h-e -f-i-e-l-d-. -F-o-r -t-h-e -p-u-r-p-o-s-e -o-f 
        -t-h-e -f-o-r-e-g-o-i-n-g -s-e-n-t-e-n-c-e-, -i-n -t-h-e 
        -c-a-s-e -o-f -a-q-u-a-c-u-l-t-u-r-a-l -s-p-e-c-i-e-s-, -t-h-e 
        -t-e-r-m -`-f-i-e-l-d-' -m-e-a-n-s -t-h-e 
        -e-n-v-i-r-o-n-m-e-n-t -i-n -w-h-i-c-h -t-h-e 
        -c-o-m-m-o-d-i-t-y -i-s -p-r-o-d-u-c-e-d-. -I-n-s-u-r-a-n-c-e 
        -p-r-o-v-i-d-e-d -u-n-d-e-r -t-h-i-s -s-u-b-s-e-c-t-i-o-n 
        -s-h-a-l-l -n-o-t -c-o-v-e-r -l-o-s-s-e-s -d-u-e -t-o---
                    -`-`-(-A-) -t-h-e -n-e-g-l-e-c-t -o-r 
                -m-a-l-f-e-a-s-a-n-c-e -o-f -t-h-e -p-r-o-d-u-c-e-r-;
                    -`-`-(-B-) -t-h-e -f-a-i-l-u-r-e -o-f -t-h-e 
                -p-r-o-d-u-c-e-r -t-o -r-e-s-e-e-d -t-o -t-h-e -s-a-m-e 
                -c-r-o-p -i-n -t-h-o-s-e -a-r-e-a-s -a-n-d -u-n-d-e-r 
                -s-u-c-h -c-i-r-c-u-m-s-t-a-n-c-e-s -w-h-e-r-e -i-t 
                -i-s -c-u-s-t-o-m-a-r-y -t-o -s-o -r-e-s-e-e-d-; -o-r
                    -`-`-(-C-) -t-h-e -f-a-i-l-u-r-e -o-f -t-h-e 
                -p-r-o-d-u-c-e-r -t-o -f-o-l-l-o-w -g-o-o-d 
                -f-a-r-m-i-n-g -p-r-a-c-t-i-c-e-s-, -a-s 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-.-'-'-;
            -(-2-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n-s 
        -(-c-)-, -(-e-)-, -(-g-)-, -(-l-) -a-n-d -(-n-)-;
            -(-3-) -b-y -r-e-d-e-s-i-g-n-a-t-i-n-g 
        -s-u-b-s-e-c-t-i-o-n-s -(-b-)-, -(-d-)-, -(-f-)-, -(-h-)-, 
        -(-i-)-, -(-j-)-, -(-k-)-, -a-n-d -(-m-) -a-s 
        -s-u-b-s-e-c-t-i-o-n-s -(-g-)-, -(-h-)-, -(-i-)-, -(-j-)-, 
        -(-k-)-, -(-l-)-, -(-m-)-, -a-n-d -(-n-)-, 
        -r-e-s-p-e-c-t-i-v-e-l-y-;
            -(-4-) -b-y -i-n-s-e-r-t-i-n-g -a-f-t-e-r 
        -s-u-b-s-e-c-t-i-o-n -(-a-) -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w 
        -s-u-b-s-e-c-t-i-o-n-s-:
    -`-`-(-b-) -C-a-t-a-s-t-r-o-p-h-i-c -R-i-s-k 
-P-r-o-t-e-c-t-i-o-n-.--
            -`-`-(-1-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -o-f-f-e-r -a -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
        -p-r-o-t-e-c-t-i-o-n -p-l-a-n -t-o -i-n-d-e-m-n-i-f-y 
        -p-r-o-d-u-c-e-r-s -f-o-r -c-r-o-p -l-o-s-s -d-u-e -t-o 
        -l-o-s-s -o-f -y-i-e-l-d -a-n-d -p-r-e-v-e-n-t-e-d 
        -p-l-a-n-t-i-n-g -w-h-e-n -t-h-e -p-r-o-d-u-c-e-r -i-s 
        -u-n-a-b-l-e -b-e-c-a-u-s-e -o-f -d-r-o-u-g-h-t-, -f-l-o-o-d 
        -o-r -o-t-h-e-r -n-a-t-u-r-a-l -d-i-s-a-s-t-e-r-, -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-, -t-o 
        -p-l-a-n-t -o-t-h-e-r -c-r-o-p-s -f-o-r -h-a-r-v-e-s-t -o-n 
        -t-h-a-t -a-c-r-e-a-g-e -f-o-r -t-h-a-t -c-r-o-p -y-e-a-r-.
            -`-`-(-2-) -C-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
        -p-r-o-t-e-c-t-i-o-n -s-h-a-l-l -o-f-f-e-r -t-h-e 
        -p-r-o-d-u-c-e-r -5-0 -p-e-r-c-e-n-t -l-o-s-s -i-n -y-i-e-l-d 
        -c-o-v-e-r-a-g-e-, -o-n -a-n -a-r-e-a -o-r -i-n-d-i-v-i-d-u-a-l 
        -y-i-e-l-d -b-a-s-i-s-, -i-n-d-e-m-n-i-f-i-e-d -a-t -6-0 
        -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t 
        -p-r-i-c-e -o-r -a -c-o-m-p-a-r-a-b-l-e -c-o-v-e-r-a-g-e-, -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-3-) -P-r-o-d-u-c-e-r-s -s-h-a-l-l -h-a-v-e -t-h-e 
        -o-p-t-i-o-n -o-f -b-a-s-i-n-g -t-h-e-i-r 
        -c-a-t-a-s-t-r-o-p-h-i-c -c-o-v-e-r-a-g-e -o-n -e-i-t-h-e-r 
        -a-n -i-n-d-i-v-i-d-u-a-l -y-i-e-l-d -a-n-d -l-o-s-s -b-a-s-i-s 
        -o-r -o-n -a-n -a-r-e-a -y-i-e-l-d -a-n-d -l-o-s-s -b-a-s-i-s 
        -w-h-e-n -b-o-t-h -o-p-t-i-o-n-s -a-r-e -o-f-f-e-r-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-4-) -F-o-r -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
        -p-r-o-t-e-c-t-i-o-n-, -p-r-o-d-u-c-e-r-s -s-h-a-l-l -p-a-y 
        -a-n -a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e-. -T-h-e 
        -a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e-s -s-h-a-l-l -b-e -$-5-0 
        -p-e-r -c-r-o-p -p-e-r -c-o-u-n-t-y-, -n-o-t -t-o -e-x-c-e-e-d 
        -$-1-0-0 -p-e-r -p-r-o-d-u-c-e-r -p-e-r -c-o-u-n-t-y-. -T-h-e 
        -a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e -s-h-a-l-l -b-e -p-a-i-d 
        -a-t -t-h-e -s-e-r-v-i-c-e -p-o-i-n-t----t-h-e -U-n-i-t-e-d 
        -S-t-a-t-e-s -D-e-p-a-r-t-m-e-n-t -o-f -A-g-r-i-c-u-l-t-u-r-e 
        -o-f-f-i-c-e -o-r -t-h-e -a-p-p-r-o-v-e-d -p-r-i-v-a-t-e 
        -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r----a-t -t-h-e -t-i-m-e -o-f 
        -a-p-p-l-i-c-a-t-i-o-n-. -T-h-i-s -a-d-m-i-n-i-s-t-r-a-t-i-v-e 
        -f-e-e -s-h-a-l-l -b-e -w-a-i-v-e-d -f-o-r -l-i-m-i-t-e-d 
        -r-e-s-o-u-r-c-e -f-a-r-m-e-r-s-, -a-s -d-e-f-i-n-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -o-r -i-f -t-h-e 
        -p-r-o-d-u-c-e-r -e-l-e-c-t-s -t-o -p-u-r-c-h-a-s-e 
        -a-d-d-i-t-i-o-n-a-l -p-r-o-t-e-c-t-i-o-n -a-t -6-5 
        -p-e-r-c-e-n-t -o-r -m-o-r-e -o-f -t-h-e -r-e-c-o-r-d-e-d -o-r 
        -a-p-p-r-a-i-s-e-d -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d -1-0-0 
        -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t 
        -p-r-i-c-e-, -o-r -a-n -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, 
        -o-f-f-e-r-e-d -b-y -a-p-p-r-o-v-e-d -c-r-o-p 
        -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-s-. -F-u-n-d-s 
        -c-o-l-l-e-c-t-e-d -a-s -a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e-s 
        -s-h-a-l-l -b-e -a-v-a-i-l-a-b-l-e-, -s-u-b-j-e-c-t -t-o 
        -a-p-p-r-o-p-r-i-a-t-i-o-n-s-, -f-o-r -s-a-l-a-r-i-e-s -a-n-d 
        -e-x-p-e-n-s-e-s-.
            -`-`-(-5-) -P-a-r-t-i-c-i-p-a-t-i-o-n -i-n -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -c-o-v-e-r-a-g-e -f-o-r 
        -a-n-y -p-r-o-d-u-c-e-r-'-s -c-r-o-p -o-n -a-n-y -l-a-n-d -i-n 
        -t-h-e -c-o-u-n-t-y -r-e-q-u-i-r-e-s -p-a-r-t-i-c-i-p-a-t-i-o-n 
        -f-o-r -t-h-a-t -p-r-o-d-u-c-e-r-'-s -c-r-o-p -o-n -a-l-l 
        -i-n-s-u-r-a-b-l-e -l-a-n-d -o-f -t-h-e -p-r-o-d-u-c-e-r -i-n 
        -t-h-e -c-o-u-n-t-y-.
            -`-`-(-6-) -T-o -b-e -e-l-i-g-i-b-l-e -f-o-r -a-n-y 
        -p-r-i-c-e -s-u-p-p-o-r-t-, -p-r-o-d-u-c-t-i-o-n 
        -a-d-j-u-s-t-m-e-n-t-, -o-r -c-o-n-s-e-r-v-a-t-i-o-n 
        -p-r-o-g-r-a-m -a-d-m-i-n-i-s-t-e-r-e-d -b-y -t-h-e 
        -U-n-i-t-e-d -S-t-a-t-e-s -D-e-p-a-r-t-m-e-n-t -o-f 
        -A-g-r-i-c-u-l-t-u-r-e -f-o-r -a-n-y -c-r-o-p-, -o-r -f-o-r 
        -l-o-a-n-s -u-n-d-e-r -a-n-y -p-r-o-g-r-a-m -o-f -t-h-e 
        -F-a-r-m-e-r-s -H-o-m-e -A-d-m-i-n-i-s-t-r-a-t-i-o-n -o-r 
        -a-n-y -s-u-c-c-e-s-s-o-r -a-g-e-n-c-y-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -l-e-v-e-l -o-f -i-n-s-u-r-a-n-c-e 
        -f-o-r -a-l-l -c-r-o-p-s -o-f -e-c-o-n-o-m-i-c 
        -s-i-g-n-i-f-i-c-a-n-c-e -g-r-o-w-n -o-n -a-l-l -f-a-r-m-s -i-n 
        -t-h-e -c-o-u-n-t-y -i-n -w-h-i-c-h -t-h-e -p-r-o-d-u-c-e-r 
        -h-a-s -a-n -i-n-t-e-r-e-s-t-, -i-f -i-n-s-u-r-a-n-c-e -i-s 
        -a-v-a-i-l-a-b-l-e -i-n -t-h-e -c-o-u-n-t-y -f-o-r -t-h-o-s-e 
        -c-r-o-p-s-. -T-h-e -t-e-r-m -`-e-c-o-n-o-m-i-c 
        -s-i-g-n-i-f-i-c-a-n-c-e-' -s-h-a-l-l -m-e-a-n -a-n-y -c-r-o-p 
        -t-h-a-t -h-a-s -c-o-n-t-r-i-b-u-t-e-d-, -o-r -i-s 
        -e-x-p-e-c-t-e-d -t-o -c-o-n-t-r-i-b-u-t-e-, -1-0 
        -p-e-r-c-e-n-t -o-r -m-o-r-e -o-f -t-h-e -t-o-t-a-l 
        -e-x-p-e-c-t-e-d -v-a-l-u-e -o-f -a-l-l -c-r-o-p-s -g-r-o-w-n 
        -b-y -t-h-e -p-r-o-d-u-c-e-r-.
            -`-`-(-7-) -T-h-e -B-o-a-r-d -m-a-y -l-i-m-i-t 
        -i-n-s-u-r-a-n-c-e -i-n -a-n-y -c-o-u-n-t-y -o-r -a-r-e-a-, 
        -o-r -o-n -a-n-y -f-a-r-m-, -o-n -t-h-e -b-a-s-i-s -o-f -t-h-e 
        -i-n-s-u-r-a-n-c-e -r-i-s-k -i-n-v-o-l-v-e-d-.
    -`-`-(-c-) -C-o-v-e-r-a-g-e -L-e-v-e-l-s -G-e-n-e-r-a-l-l-y-.--
            -`-`-(-1-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -o-f-f-e-r -p-l-a-n-s -o-f -i-n-s-u-r-a-n-c-e 
        -p-r-o-v-i-d-i-n-g -l-e-v-e-l-s -o-f -c-o-v-e-r-a-g-e 
        -g-r-e-a-t-e-r -t-h-a-n -t-h-a-t -a-v-a-i-l-a-b-l-e -u-n-d-e-r 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n-. 
        -P-r-o-d-u-c-e-r-s -m-a-y -o-n-l-y -p-u-r-c-h-a-s-e -t-h-e-r-e 
        -o-t-h-e-r -p-l-a-n-s -f-r-o-m -a-p-p-r-o-v-e-d -p-r-i-v-a-t-e 
        -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-s-, -i-f -s-u-c-h 
        -p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e -i-s -a-v-a-i-l-a-b-l-e-. 
        -N-o-t-h-i-n-g -c-o-n-t-a-i-n-e-d -h-e-r-e-i-n 
        -r-e-s-t-r-i-c-t-s -t-h-e -C-o-r-p-o-r-a-t-i-o-n -f-r-o-m 
        -o-f-f-e-r-i-n-g -i-n-s-u-r-a-n-c-e -i-f -c-o-v-e-r-a-g-e 
        -f-r-o-m -p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-s 
        -i-s -u-n-a-v-a-i-l-a-b-l-e-. -I-f -t-h-e -p-r-o-d-u-c-e-r 
        -h-a-s -a-l-r-e-a-d-y -a-p-p-l-i-e-d -f-o-r 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n -a-t 
        -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s -D-e-p-a-r-t-m-e-n-t -o-f 
        -A-g-r-i-c-u-l-t-u-r-e -o-f-f-i-c-e -a-n-d -e-l-e-c-t-s -t-o 
        -p-u-r-c-h-a-s-e -a-d-d-i-t-i-o-n-a-l -c-o-v-e-r-a-g-e-, -t-h-e 
        -i-n-s-u-r-a-n-c-e -f-i-l-e -f-o-r -t-h-a-t -p-r-o-d-u-c-e-r 
        -s-h-a-l-l -b-e -t-r-a-n-s-f-e-r-r-e-d -t-o -t-h-e 
        -a-p-p-r-o-v-e-d -p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e 
        -p-r-o-v-i-d-e-r -s-e-r-v-i-c-i-n-g -t-h-e -a-d-d-i-t-i-o-n-a-l 
        -c-o-v-e-r-a-g-e -p-o-l-i-c-y -a-n-d -t-h-e 
        -a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e -f-o-r -t-h-e -c-r-o-p 
        -f-o-r -w-h-i-c-h -a-d-d-i-t-i-o-n-a-l -c-o-v-e-r-a-g-e -a-t 
        -6-5 -p-e-r-c-e-n-t -o-r -m-o-r-e -o-f -t-h-e -r-e-c-o-r-d-e-d 
        -o-r -a-p-p-r-a-i-s-e-d -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d -1-0-0 
        -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t 
        -p-r-i-c-e-, -o-r -a-n -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, 
        -i-s -o-b-t-a-i-n-e-d -s-h-a-l-l -b-e -r-e-f-u-n-d-e-d -t-o 
        -t-h-e -i-n-s-u-r-e-d-.
            -`-`-(-2-) -P-r-o-d-u-c-e-r-s -s-h-a-l-l -h-a-v-e -t-h-e 
        -o-p-t-i-o-n -o-f -p-u-r-c-h-a-s-i-n-g -a-d-d-i-t-i-o-n-a-l 
        -c-o-v-e-r-a-g-e -b-a-s-e-d -o-n -e-i-t-h-e-r -a-n 
        -i-n-d-i-v-i-d-u-a-l -y-i-e-l-d -a-n-d -l-o-s-s -b-a-s-i-s -o-r 
        -o-n -a-n -a-r-e-a -y-i-e-l-d -a-n-d -l-o-s-s -b-a-s-i-s 
        -w-h-e-n -b-o-t-h -o-p-t-i-o-n-s -a-r-e -o-f-f-e-r-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-3-) -T-h-e -l-e-v-e-l -o-f -c-o-v-e-r-a-g-e 
        -s-h-a-l-l -b-e -d-o-l-l-a-r -d-e-n-o-m-i-n-a-t-e-d -a-n-d 
        -m-a-y -b-e -p-u-r-c-h-a-s-e-d -a-t -a-n-y -l-e-v-e-l -n-o-t 
        -t-o -e-x-c-e-e-d -8-5 -p-e-r-c-e-n-t -o-f -t-h-e 
        -i-n-d-i-v-i-d-u-a-l -y-i-e-l-d -o-r -9-5 -p-e-r-c-e-n-t -o-f 
        -t-h-e -a-r-e-a -y-i-e-l-d-, -a-s -d-e-t-e-r-m-i-n-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-4-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -e-s-t-a-b-l-i-s-h -a -p-r-i-c-e -l-e-v-e-l -f-o-r -e-a-c-h 
        -c-o-m-m-o-d-i-t-y -o-n -w-h-i-c-h -i-n-s-u-r-a-n-c-e -i-s 
        -o-f-f-e-r-e-d -t-h-a-t---
                    -`-`-(-A-) -s-h-a-l-l -n-o-t -b-e -l-e-s-s -t-h-a-n 
                -t-h-e -p-r-o-j-e-c-t-e-d -m-a-r-k-e-t -p-r-i-c-e 
                -f-o-r -t-h-e -c-o-m-m-o-d-i-t-y -a-s 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-; -o-r
                    -`-`-(-B-) -a-t -t-h-e -d-i-s-c-r-e-t-i-o-n -o-f 
                -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -m-a-y -b-e -b-a-s-e-d 
                -o-n -t-h-e -a-c-t-u-a-l -m-a-r-k-e-t -p-r-i-c-e -a-t 
                -t-h-e -t-i-m-e -o-f -h-a-r-v-e-s-t-, -a-s 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-5-) -I-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -s-h-a-l-l 
        -b-e -m-a-d-e -a-v-a-i-l-a-b-l-e -t-o -t-h-e -p-r-o-d-u-c-e-r 
        -o-n -t-h-e -b-a-s-i-s -o-f -a-n-y -p-r-i-c-e -e-l-e-c-t-i-o-n 
        -t-h-a-t -e-q-u-a-l-s -o-r -i-s -l-e-s-s -t-h-a-n -t-h-a-t 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -B-o-a-r-d -a-n-d -t-h-e 
        -c-o-v-e-r-a-g-e -s-h-a-l-l -b-e -q-u-o-t-e-d -i-n -t-e-r-m-s 
        -o-f -d-o-l-l-a-r-s -p-e-r -a-c-r-e-: -P-r-o-v-i-d-e-d-, 
        -T-h-a-t -t-h-e -C-o-r-p-o-r-a-t-i-o-n -m-a-y 
        -e-s-t-a-b-l-i-s-h -m-i-n-i-m-u-m -p-r-i-c-e -e-l-e-c-t-i-o-n-s 
        -b-e-l-o-w -w-h-i-c-h -l-e-v-e-l-s -o-f -i-n-s-u-r-a-n-c-e 
        -s-h-a-l-l -n-o-t -b-e -o-f-f-e-r-e-d-.
            -`-`-(-6-) -F-o-r -l-e-v-e-l-s -o-f -c-o-v-e-r-a-g-e -6-5 
        -p-e-r-c-e-n-t -o-r -m-o-r-e -o-f -t-h-e -r-e-c-o-r-d-e-d -o-r 
        -a-p-p-r-a-i-s-e-d -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d -1-0-0 
        -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t 
        -p-r-i-c-e-, -o-r -a-n -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, 
        -t-h-e -p-r-o-d-u-c-e-r -m-a-y -e-l-e-c-t -t-o -d-e-l-e-t-e 
        -f-r-o-m -t-h-e -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e 
        -p-r-o-v-i-d-e-d -u-n-d-e-r -t-h-i-s -t-i-t-l-e 
        -c-o-v-e-r-a-g-e -a-g-a-i-n-s-t -d-a-m-a-g-e -c-a-u-s-e-d -b-y 
        -f-i-r-e -a-n-d -h-a-i-l-, -p-r-o-v-i-d-e-d -a-n 
        -e-q-u-i-v-a-l-e-n-t -o-r -g-r-e-a-t-e-r -d-o-l-l-a-r 
        -a-m-o-u-n-t -o-f -c-o-v-e-r-a-g-e -f-o-r -d-a-m-a-g-e 
        -c-a-u-s-e-d -b-y -f-i-r-e -a-n-d -h-a-i-l -i-s 
        -o-b-t-a-i-n-e-d -f-r-o-m -a -p-r-i-v-a-t-e -h-a-i-l-/-f-i-r-e 
        -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-. -U-p-o-n -w-r-i-t-t-e-n 
        -n-o-t-i-c-e -o-f -s-u-c-h -e-l-e-c-t-i-o-n -t-o -t-h-e 
        -c-o-m-p-a-n-y -i-s-s-u-i-n-g -t-h-e -p-o-l-i-c-y 
        -p-r-o-v-i-d-i-n-g -c-o-v-e-r-a-g-e -u-n-d-e-r -t-h-i-s 
        -t-i-t-l-e -a-n-d -s-u-b-m-i-s-s-i-o-n -o-f -e-v-i-d-e-n-c-e 
        -o-f -s-u-b-s-t-i-t-u-t-e -c-o-v-e-r-a-g-e -o-n -t-h-e 
        -c-o-m-m-o-d-i-t-y -i-n-s-u-r-e-d-, -t-h-e -p-r-o-d-u-c-e-r-'-s 
        -p-r-e-m-i-u-m -s-h-a-l-l -b-e -r-e-d-u-c-e-d -b-y -a-n 
        -a-m-o-u-n-t -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n -t-o -b-e -a-c-t-u-a-r-i-a-l-l-y 
        -a-p-p-r-o-p-r-i-a-t-e-, -t-a-k-i-n-g -i-n-t-o -a-c-c-o-u-n-t 
        -t-h-e -a-c-t-u-a-r-i-a-l -v-a-l-u-e -o-f -t-h-e 
        -r-e-m-a-i-n-i-n-g -c-o-v-e-r-a-g-e -p-r-o-v-i-d-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n-. -I-n -n-o -e-v-e-n-t -s-h-a-l-l 
        -t-h-e -p-r-o-d-u-c-e-r -b-e -g-i-v-e-n -c-r-e-d-i-t -f-o-r 
        -a-n -a-m-o-u-n-t -o-f -p-r-e-m-i-u-m -d-e-t-e-r-m-i-n-e-d -t-o 
        -b-e -g-r-e-a-t-e-r -t-h-a-n -t-h-e -a-c-t-u-a-r-i-a-l 
        -v-a-l-u-e -o-f -t-h-e -p-r-o-t-e-c-t-i-o-n -a-g-a-i-n-s-t 
        -l-o-s-s-e-s -c-a-u-s-e-d -b-y -f-i-r-e -a-n-d -h-a-i-l 
        -t-h-a-t -i-s -i-n-c-l-u-d-e-d -i-n -t-h-e -c-o-v-e-r-a-g-e 
        -u-n-d-e-r -t-h-i-s -t-i-t-l-e -f-o-r -t-h-e -c-r-o-p-.
            -`-`-(-7-) -T-h-e -B-o-a-r-d -m-a-y -e-n-t-e-r -i-n-t-o 
        -a-g-r-e-e-m-e-n-t-s -w-i-t-h -a-n-y -S-t-a-t-e -o-r 
        -a-g-e-n-c-y -o-f -a -S-t-a-t-e -u-n-d-e-r -w-h-i-c-h -s-u-c-h 
        -S-t-a-t-e -o-r -a-g-e-n-c-y -m-a-y -p-a-y -t-o -t-h-e 
        -a-p-p-r-o-v-e-d -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r -a-n 
        -a-d-d-i-t-i-o-n-a-l -p-r-e-m-i-u-m -s-u-b-s-i-d-y -t-o 
        -f-u-r-t-h-e-r -r-e-d-u-c-e -t-h-e -p-o-r-t-i-o-n -o-f -t-h-e 
        -p-r-e-m-i-u-m -p-a-i-d -b-y -f-a-r-m-e-r-s -i-n -s-u-c-h 
        -S-t-a-t-e-.
            -`-`-(-8-) -T-h-e -B-o-a-r-d -m-a-y -l-i-m-i-t -o-r 
        -r-e-f-u-s-e -i-n-s-u-r-a-n-c-e -i-n -a-n-y -c-o-u-n-t-y -o-r 
        -a-r-e-a-, -o-r -o-n -a-n-y -f-a-r-m-, -o-n -t-h-e -b-a-s-i-s 
        -o-f -t-h-e -i-n-s-u-r-a-n-c-e -r-i-s-k -i-n-v-o-l-v-e-d-.
    -`-`-(-d-) -P-r-e-m-i-u-m-s-.---
            -`-`-(-1-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l -f-i-x 
        -a-d-e-q-u-a-t-e -p-r-e-m-i-u-m-s -f-o-r -a-l-l -i-t-s 
        -p-l-a-n-s -o-f -i-n-s-u-r-a-n-c-e -a-t -s-u-c-h -r-a-t-e-s 
        -a-s -t-h-e -B-o-a-r-d -d-e-e-m-s -a-c-t-u-a-r-i-a-l-l-y 
        -s-u-f-f-i-c-i-e-n-t -t-o -a-t-t-a-i-n -a-n -e-x-p-e-c-t-e-d 
        -l-o-s-s -r-a-t-i-o -o-f -n-o-t -g-r-e-a-t-e-r -t-h-a-n 
        -1-.-1-.
                    -`-`-(-A-) -F-o-r -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
                -p-r-o-t-e-c-t-i-o-n -c-o-v-e-r-a-g-e-, -t-h-e 
                -a-m-o-u-n-t -o-f -p-r-e-m-i-u-m -s-h-a-l-l -b-e 
                -s-u-f-f-i-c-i-e-n-t -t-o -c-o-v-e-r 
                -a-n-t-i-c-i-p-a-t-e-d -l-o-s-s-e-s -a-n-d -a 
                -r-e-a-s-o-n-a-b-l-e -r-e-s-e-r-v-e-.
                    -`-`-(-B-) -F-o-r -l-e-v-e-l-s -o-f 
                -c-o-v-e-r-a-g-e -b-e-l-o-w -6-5 -p-e-r-c-e-n-t -o-f 
                -t-h-e -r-e-c-o-r-d-e-d -o-r -a-p-p-r-a-i-s-e-d 
                -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d -1-0-0 -p-e-r-c-e-n-t 
                -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t -p-r-i-c-e-, 
                -o-r -a-n -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, 
                -b-u-t -g-r-e-a-t-e-r -t-h-a-n -c-a-t-a-s-t-r-o-p-h-i-c 
                -r-i-s-k -p-r-o-t-e-c-t-i-o-n-, -t-h-e -a-m-o-u-n-t 
                -o-f -p-r-e-m-i-u-m -s-h-a-l-l -b-e 
                -s-u-f-f-i-c-i-e-n-t -t-o -c-o-v-e-r 
                -a-n-t-i-c-i-p-a-t-e-d -l-o-s-s-e-s-, -a 
                -r-e-a-s-o-n-a-b-l-e -r-e-s-e-r-v-e-, -a-n-d -a-n 
                -a-m-o-u-n-t -f-o-r -o-p-e-r-a-t-i-n-g -a-n-d 
                -a-d-m-i-n-i-s-t-r-a-t-i-v-e -e-x-p-e-n-s-e-s-, -a-s 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-, -t-h-a-t -i-s -l-e-s-s 
                -t-h-a-n -t-h-e -a-m-o-u-n-t -e-s-t-a-b-l-i-s-h-e-d 
                -f-o-r -c-o-v-e-r-a-g-e -a-t -6-5 -p-e-r-c-e-n-t -a-n-d 
                -1-0-0 -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d 
                -m-a-r-k-e-t -p-r-i-c-e-, -o-r -a-n 
                -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-.
                    -`-`-(-C-) -F-o-r -l-e-v-e-l-s -o-f 
                -c-o-v-e-r-a-g-e -o-f -a-t -l-e-a-s-t -6-5 
                -p-e-r-c-e-n-t -o-f -t-h-e -r-e-c-o-r-d-e-d -o-r 
                -a-p-p-r-a-i-s-e-d -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d 
                -1-0-0 -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d 
                -m-a-r-k-e-t -p-r-i-c-e-, -o-r -a-n 
                -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, -t-h-e 
                -a-m-o-u-n-t -o-f -p-r-e-m-i-u-m -s-h-a-l-l -b-e 
                -s-u-f-f-i-c-i-e-n-t -t-o -c-o-v-e-r 
                -a-n-t-i-c-i-p-a-t-e-d -l-o-s-s-e-s-, -a 
                -r-e-a-s-o-n-a-b-l-e -r-e-s-e-r-v-e-, -a-n-d -a-n 
                -a-m-o-u-n-t -t-o -p-a-y -t-h-e -o-p-e-r-a-t-i-n-g 
                -a-n-d -a-d-m-i-n-i-s-t-r-a-t-i-v-e -e-x-p-e-n-s-e-s 
                -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n -o-n -a-n -i-n-d-u-s-t-r-y--
                -w-i-d-e -b-a-s-i-s -a-s -a -p-e-r-c-e-n-t -o-f -t-h-e 
                -t-o-t-a-l -p-r-e-m-i-u-m-.
            -`-`-(-2-) -F-o-r -t-h-e -p-u-r-p-o-s-e -o-f 
        -e-n-c-o-u-r-a-g-i-n-g -t-h-e -b-r-o-a-d-e-s-t -p-o-s-s-i-b-l-e 
        -p-a-r-t-i-c-i-p-a-t-i-o-n-, -t-h-e -C-o-r-p-o-r-a-t-i-o-n 
        -s-h-a-l-l -p-a-y -a -p-a-r-t -o-f -t-h-e -p-r-e-m-i-u-m 
        -e-q-u-i-v-a-l-e-n-t -t-o---
                    -`-`-(-A-) -f-o-r -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
                -p-r-o-t-e-c-t-i-o-n -c-o-v-e-r-a-g-e-, -a-n 
                -a-m-o-u-n-t -e-q-u-a-l -t-o -t-h-e -p-r-e-m-i-u-m 
                -e-s-t-a-b-l-i-s-h-e-d -i-n -p-a-r-a-g-r-a-p-h 
                -(-1-)-(-A-) -o-f -t-h-i-s -s-e-c-t-i-o-n-;
                    -`-`-(-B-) -f-o-r -l-e-v-e-l-s -o-f 
                -c-o-v-e-r-a-g-e -b-e-l-o-w -6-5 -p-e-r-c-e-n-t -o-f 
                -t-h-e -r-e-c-o-r-d-e-d -o-r -a-p-p-r-a-i-s-e-d 
                -a-v-e-r-a-g-e -y-i-e-l-d -a-n-d -1-0-0 -p-e-r-c-e-n-t 
                -o-f -t-h-e -e-x-p-e-c-t-e-d -m-a-r-k-e-t -p-r-i-c-e 
                -o-r -a-n -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, 
                -b-u-t -g-r-e-a-t-e-r -t-h-a-n -c-a-t-a-s-t-r-o-p-h-i-c 
                -r-i-s-k -p-r-o-t-e-c-t-i-o-n-, -t-h-e -a-m-o-u-n-t 
                -o-f -p-r-e-m-i-u-m -e-s-t-a-b-l-i-s-h-e-d -f-o-r 
                -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
                -c-o-v-e-r-a-g-e-, -a -r-e-a-s-o-n-a-b-l-e 
                -r-e-s-e-r-v-e-, -p-l-u-s -t-h-e -a-m-o-u-n-t -o-f 
                -o-p-e-r-a-t-i-n-g -a-n-d -a-d-m-i-n-i-s-t-r-a-t-i-v-e 
                -e-x-p-e-n-s-e-s -e-s-t-a-b-l-i-s-h-e-d -i-n 
                -p-a-r-a-g-r-a-p-h -(-1-)-(-B-) -o-f -t-h-i-s 
                -s-e-c-t-i-o-n-; -a-n-d
                    -`-`-(-C-) -f-o-r -l-e-v-e-l-s -o-f 
                -c-o-v-e-r-a-g-e -a-t -o-r -g-r-e-a-t-e-r -t-h-a-n -6-5 
                -p-e-r-c-e-n-t -o-f -t-h-e -r-e-c-o-r-d-e-d -a-n-d 
                -a-p-p-r-a-i-s-e-d -y-i-e-l-d -a-n-d -1-0-0 
                -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d 
                -m-a-r-k-e-t -p-r-i-c-e-, -o-r -a-n 
                -e-q-u-i-v-a-l-e-n-t -c-o-v-e-r-a-g-e-, -o-n -a-n 
                -i-n-d-i-v-i-d-u-a-l -o-r -a-r-e-a -b-a-s-i-s-, -a-n 
                -a-m-o-u-n-t -e-q-u-a-l -t-o -t-h-e -p-r-e-m-i-u-m 
                -e-s-t-a-b-l-i-s-h-e-d -f-o-r -5-0 -p-e-r-c-e-n-t 
                -l-o-s-s -i-n -y-i-e-l-d -i-n-d-e-m-n-i-f-i-e-d -a-t 
                -7-5 -p-e-r-c-e-n-t -o-f -t-h-e -e-x-p-e-c-t-e-d 
                -m-a-r-k-e-t -p-r-i-c-e-, -a -r-e-a-s-o-n-a-b-l-e 
                -r-e-s-e-r-v-e-, -p-l-u-s -t-h-e -a-m-o-u-n-t -o-f 
                -o-p-e-r-a-t-i-n-g -a-n-d -a-d-m-i-n-i-s-t-r-a-t-i-v-e 
                -e-x-p-e-n-s-e-s -e-s-t-a-b-l-i-s-h-e-d -i-n 
                -p-a-r-a-g-r-a-p-h -(-1-)-(-C-) -o-f -t-h-i-s 
                -s-e-c-t-i-o-n-.
            -`-`-(-3-) -I-f -a -p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e 
        -p-r-o-v-i-d-e-r -d-e-t-e-r-m-i-n-e-s -t-h-a-t -i-t -m-a-y 
        -p-r-o-v-i-d-e -i-n-s-u-r-a-n-c-e -m-o-r-e 
        -e-f-f-i-c-i-e-n-t-l-y -t-h-a-n -t-h-e -e-x-p-e-n-s-e 
        -r-e-i-m-b-u-r-s-e-m-e-n-t -a-m-o-u-n-t -s-e-t -b-y -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -t-h-e -p-r-i-v-a-t-e 
        -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-, -i-f -a-p-p-r-o-v-e-d 
        -b-y -t-h-e -B-o-a-r-d-, -m-a-y -r-e-d-u-c-e -t-h-e 
        -p-r-e-m-i-u-m -c-h-a-r-g-e-d -t-h-e -i-n-s-u-r-e-d -b-y -t-h-e 
        -a-m-o-u-n-t -o-f -s-u-c-h -e-f-f-i-c-i-e-n-c-y-. -A-n-y 
        -s-u-c-h -r-e-d-u-c-t-i-o-n-s -s-h-a-l-l -b-e -s-u-b-j-e-c-t 
        -t-o -t-h-e -r-u-l-e-s-, -l-i-m-i-t-a-t-i-o-n-s-, -a-n-d 
        -p-r-o-c-e-d-u-r-e-s -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-.
    -`-`-(-e-) -E-l-i-g-i-b-i-l-i-t-y-.----T-o -p-a-r-t-i-c-i-p-a-t-e 
-i-n -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
-c-o-v-e-r-a-g-e -u-n-d-e-r -t-h-i-s -t-i-t-l-e-, -p-r-o-d-u-c-e-r-s 
-m-a-y -m-a-k-e -a-p-p-l-i-c-a-t-i-o-n -a-t -t-h-e -l-o-c-a-l 
-U-n-i-t-e-d -S-t-a-t-e-s -D-e-p-a-r-t-m-e-n-t -o-f 
-A-g-r-i-c-u-l-t-u-r-e -o-f-f-i-c-e -o-r -t-o -a-n -a-p-p-r-o-v-e-d 
-p-r-i-v-a-t-e -c-r-o-p -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-. -F-o-r 
-a-l-l -c-o-v-e-r-a-g-e-s-, -p-r-o-d-u-c-e-r-s -s-h-a-l-l -b-e 
-r-e-q-u-i-r-e-d -t-o---
            -`-`-(-1-) -p-u-r-c-h-a-s-e -c-r-o-p -i-n-s-u-r-a-n-c-e 
        -o-n -o-r -b-e-f-o-r-e -t-h-e -s-a-l-e-s -c-l-o-s-i-n-g 
        -d-a-t-e -f-o-r -t-h-e -c-r-o-p -b-y -p-r-o-v-i-d-i-n-g -t-h-e 
        -r-e-q-u-i-r-e-d -i-n-f-o-r-m-a-t-i-o-n -a-n-d 
        -e-x-e-c-u-t-i-n-g -t-h-e -r-e-q-u-i-r-e-d -d-o-c-u-m-e-n-t-s-. 
        -S-u-c-h -s-a-l-e-s -c-l-o-s-i-n-g -d-a-t-e -s-h-a-l-l -b-e 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n -t-o 
        -m-a-x-i-m-i-z-e -c-o-n-v-e-n-i-e-n-c-e -t-o -p-r-o-d-u-c-e-r-s 
        -i-n -o-b-t-a-i-n-i-n-g -b-e-n-e-f-i-t-s -u-n-d-e-r -p-r-i-c-e 
        -a-n-d -p-r-o-d-u-c-t-i-o-n -a-d-j-u-s-t-m-e-n-t 
        -p-r-o-g-r-a-m-s -o-f -t-h-e -D-e-p-a-r-t-m-e-n-t 
        -w-h-e-n-e-v-e-r -f-e-a-s-i-b-l-e-; -h-o-w-e-v-e-r-, -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n -w-i-l-l -e-s-t-a-b-l-i-s-h -a-l-l 
        -s-a-l-e-s -c-l-o-s-i-n-g -d-a-t-e-s -t-o -a-s-s-u-r-e -t-h-a-t 
        -t-h-e -g-o-a-l -o-f -a-c-t-u-a-r-i-a-l -s-o-u-n-d-n-e-s-s 
        -f-o-r -t-h-e -c-r-o-p -i-n-s-u-r-a-n-c-e -p-r-o-g-r-a-m -i-s 
        -m-e-t-;
            -`-`-(-2-) -p-r-o-v-i-d-e -r-e-c-o-r-d-s-, 
        -a-c-c-e-p-t-a-b-l-e -t-o -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -o-f 
        -p-r-e-v-i-o-u-s -a-c-r-e-a-g-e -a-n-d -p-r-o-d-u-c-t-i-o-n 
        -o-r -a-c-c-e-p-t -a -C-o-r-p-o-r-a-t-i-o-n 
        -d-e-t-e-r-m-i-n-e-d -y-i-e-l-d-; -a-n-d
            -`-`-(-3-) -r-e-p-o-r-t -a-c-r-e-a-g-e -p-l-a-n-t-e-d 
        -a-n-d -p-r-e-v-e-n-t-e-d -f-r-o-m -p-l-a-n-t-i-n-g -b-y -t-h-e 
        -d-e-s-i-g-n-a-t-e-d -a-c-r-e-a-g-e -r-e-p-o-r-t-i-n-g -d-a-t-e 
        -f-o-r -t-h-a-t -c-r-o-p -a-n-d -l-o-c-a-t-i-o-n -a-s 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
    -`-`-(-f-) -Y-i-e-l-d -D-e-t-e-r-m-i-n-a-t-i-o-n-s-.---
            -`-`-(-1-) -I-n -g-e-n-e-r-a-l-.----T-h-e 
        -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l -i-m-p-l-e-m-e-n-t -c-r-o-p 
        -i-n-s-u-r-a-n-c-e -u-n-d-e-r-w-r-i-t-i-n-g -r-u-l-e-s -t-h-a-t 
        -e-n-s-u-r-e -t-h-a-t -y-i-e-l-d -c-o-v-e-r-a-g-e-, -a-s 
        -s-p-e-c-i-f-i-e-d -i-n -s-u-b-s-e-c-t-i-o-n -(-f-)-(-2-) -o-f 
        -t-h-i-s -s-e-c-t-i-o-n-, -i-s -p-r-o-v-i-d-e-d -t-o -a-l-l 
        -p-r-o-d-u-c-e-r-s -p-a-r-t-i-c-i-p-a-t-i-n-g -i-n -t-h-e 
        -F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e -p-r-o-g-r-a-m-.
            -`-`-(-2-) -Y-i-e-l-d -c-o-v-e-r-a-g-e -p-l-a-n-s-.--
                    -`-`-(-A-) -A-c-t-u-a-l -p-r-o-d-u-c-t-i-o-n 
                -h-i-s-t-o-r-y-.--
                            -`-`-(-i-) -T-h-i-s -p-l-a-n -u-s-e-s 
                        -t-h-e -p-r-o-d-u-c-e-r-'-s -a-c-t-u-a-l 
                        -p-r-o-d-u-c-t-i-o-n -h-i-s-t-o-r-y -f-o-r 
                        -t-h-e -4 -p-r-e-v-i-o-u-s 
                        -c-o-n-s-e-c-u-t-i-v-e -c-r-o-p -y-e-a-r-s 
                        -w-i-t-h-o-u-t -p-e-n-a-l-t-y-, -u-p -t-o -a 
                        -p-r-o-d-u-c-t-i-o-n -d-a-t-a -b-a-s-e -o-f 
                        -1-0 -c-o-n-s-e-c-u-t-i-v-e -y-e-a-r-s-, 
                        -s-u-b-j-e-c-t -t-o -p-a-r-a-g-r-a-p-h 
                        -(-i-i-)-, -t-o -d-e-t-e-r-m-i-n-e -y-i-e-l-d 
                        -c-o-v-e-r-a-g-e-.
                            -`-`-(-i-i-) -I-f -t-h-e -p-r-o-d-u-c-e-r 
                        -d-o-e-s -n-o-t -s-u-b-m-i-t -a-d-e-q-u-a-t-e 
                        -d-o-c-u-m-e-n-t-a-t-i-o-n -o-f -h-i-s-t-o-r-y 
                        -f-o-r -a -c-r-o-p-, -t-h-e -p-r-o-d-u-c-e-r 
                        -s-h-a-l-l -b-e -a-s-s-i-g-n-e-d-, -a-s -t-h-e 
                        -p-r-o-d-u-c-e-r-'-s -f-a-r-m -p-r-o-g-r-a-m 
                        -y-i-e-l-d-, -n-o-t -l-e-s-s -t-h-a-n -6-5 
                        -p-e-r-c-e-n-t -o-f -t-h-e 
                        -t-r-a-n-s-i-t-i-o-n-a-l -y-i-e-l-d -o-f -t-h-e 
                        -p-r-o-d-u-c-e-r -(-a-d-j-u-s-t-e-d -t-o 
                        -r-e-f-l-e-c-t -a-c-t-u-a-l 
                        -p-r-o-d-u-c-t-i-o-n -r-e-f-l-e-c-t-e-d -i-n 
                        -t-h-e -r-e-c-o-r-d-s -a-c-c-e-p-t-a-b-l-e -t-o 
                        -t-h-e -C-o-r-p-o-r-a-t-i-o-n -f-o-r 
                        -c-o-n-t-i-n-u-o-u-s -y-e-a-r-s-)-, -a-s 
                        -s-p-e-c-i-f-i-e-d -i-n -r-e-g-u-l-a-t-i-o-n-s 
                        -i-s-s-u-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n 
                        -b-a-s-e-d -o-n -p-r-o-d-u-c-t-i-o-n 
                        -h-i-s-t-o-r-y -r-e-q-u-i-r-e-m-e-n-t-s-.
                    -`-`-(-B-) -A-r-e-a -y-i-e-l-d-.----T-h-e 
                -C-o-r-p-o-r-a-t-i-o-n -m-a-y -o-f-f-e-r -a -c-r-o-p 
                -i-n-s-u-r-a-n-c-e -p-l-a-n -b-a-s-e-d -o-n -a-n 
                -a-r-e-a -y-i-e-l-d -t-h-a-t -a-l-l-o-w-s -a-n 
                -i-n-s-u-r-e-d -p-r-o-d-u-c-e-r -t-o -q-u-a-l-i-f-y 
                -f-o-r -a-n -i-n-d-e-m-n-i-t-y -i-f -a -l-o-s-s -h-a-s 
                -o-c-c-u-r-r-e-d -i-n -a-n -a-r-e-a-, -a-s 
                -s-p-e-c-i-f-i-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, 
                -i-n -w-h-i-c-h -t-h-e -f-a-r-m -o-f -t-h-e 
                -p-r-o-d-u-c-e-r -i-s -l-o-c-a-t-e-d-. -U-n-d-e-r -a-n 
                -a-r-e-a -y-i-e-l-d -p-l-a-n-, -a-n -i-n-s-u-r-e-d 
                -p-r-o-d-u-c-e-r -s-h-a-l-l -b-e -a-l-l-o-w-e-d -t-o 
                -s-e-l-e-c-t -t-h-e -l-e-v-e-l -o-f -a-r-e-a 
                -p-r-o-d-u-c-t-i-o-n -a-t -w-h-i-c-h -a-n 
                -i-n-d-e-m-n-i-t-y -w-i-l-l -b-e -p-a-i-d 
                -c-o-n-s-i-s-t-e-n-t -w-i-t-h -t-h-e -t-e-r-m-s -a-n-d 
                -c-o-n-d-i-t-i-o-n-s -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-.
                    -`-`-(-C-) -C-o-m-m-o-d-i-t-y---b-y--
                -c-o-m-m-o-d-i-t-y -b-a-s-i-s-.----A -p-r-o-d-u-c-e-r 
                -m-a-y -c-h-o-o-s-e -b-e-t-w-e-e-n -e-i-t-h-e-r 
                -i-n-d-i-v-i-d-u-a-l -y-i-e-l-d -o-r -a-r-e-a 
                -y-i-e-l-d -c-o-v-e-r-a-g-e-, -w-h-e-r-e 
                -a-v-a-i-l-a-b-l-e-, -o-n -a -c-o-m-m-o-d-i-t-y---b-y--
                -c-o-m-m-o-d-i-t-y -b-a-s-i-s-.
                    -`-`-(-D-) -N-o-t-i-c-e-.----T-h-e 
                -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l -e-n-s-u-r-e 
                -t-h-a-t-, -w-h-e-n-e-v-e-r -t-h-e -y-i-e-l-d 
                -c-o-v-e-r-a-g-e -p-r-o-v-i-s-i-o-n-s -o-f -t-h-i-s 
                -s-e-c-t-i-o-n -a-r-e -e-f-f-e-c-t-i-v-e-, 
                -p-r-o-d-u-c-e-r-s -a-r-e -g-i-v-e-n -a-d-e-q-u-a-t-e 
                -n-o-t-i-c-e -o-f -s-u-c-h -p-r-o-v-i-s-i-o-n-s -i-n 
                -a-d-v-a-n-c-e -o-f -t-h-e -c-r-o-p -i-n-s-u-r-a-n-c-e 
                -a-p-p-l-i-c-a-t-i-o-n -p-e-r-i-o-d -f-o-r -t-h-e 
                -c-r-o-p-s -t-o -w-h-i-c-h -s-u-c-h 
                -p-r-o-v-i-s-i-o-n-s -f-i-r-s-t -w-i-l-l 
                -a-p-p-l-y-.-'-'-;
            -(-5-) -i-n -s-u-b-s-e-c-t-i-o-n -(-g-) -(-a-s 
        -r-e-d-e-s-i-g-n-a-t-e-d-)---
                    -(-A-) -i-n -p-a-r-a-g-r-a-p-h -(-1-)-, -b-y 
                -s-t-r-i-k-i-n-g -`-`-(-a-)-'-' -a-n-d 
                -i-n-s-e-r-t-i-n-g -`-`-(-c-)-'-'-;
                    -(-B-) -b-y -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h 
                -(-2-) -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
                -f-o-l-l-o-w-i-n-g -n-e-w -p-a-r-a-g-r-a-p-h-:
            -`-`-(-2-) -P-r-e-p-a-r-a-t-i-o-n -o-f 
        -p-o-l-i-c-i-e-s-.----A -p-o-l-i-c-y -o-r -o-t-h-e-r 
        -m-a-t-e-r-i-a-l -s-u-b-m-i-t-t-e-d -t-o -t-h-e -B-o-a-r-d 
        -u-n-d-e-r -t-h-i-s -s-u-b-s-e-c-t-i-o-n -m-a-y -b-e 
        -p-r-e-p-a-r-e-d -w-i-t-h-o-u-t -r-e-g-a-r-d -t-o -t-h-e 
        -l-i-m-i-t-a-t-i-o-n-s -c-o-n-t-a-i-n-e-d -i-n -t-h-i-s 
        -t-i-t-l-e-, -i-n-c-l-u-d-i-n-g -t-h-e -r-e-q-u-i-r-e-m-e-n-t-s 
        -c-o-n-c-e-r-n-i-n-g -t-h-e -l-e-v-e-l-s -o-f -c-o-v-e-r-a-g-e 
        -a-n-d -r-a-t-e-s -a-n-d -t-h-e -r-e-q-u-i-r-e-m-e-n-t -t-h-a-t 
        -a -p-r-i-c-e -l-e-v-e-l -f-o-r -e-a-c-h -c-o-m-m-o-d-i-t-y 
        -i-n-s-u-r-e-d -m-u-s-t -e-q-u-a-l -t-h-e -p-r-o-j-e-c-t-e-d 
        -m-a-r-k-e-t -p-r-i-c-e -f-o-r -t-h-e -c-o-m-m-o-d-i-t-y -a-s 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -B-o-a-r-d-. -S-u-c-h 
        -p-o-l-i-c-y -m-a-y -o-n-l-y -b-e -s-u-b-s-i-d-i-z-e-d -a-t 
        -a-n -a-m-o-u-n-t -e-q-u-i-v-a-l-e-n-t -t-o -c-o-v-e-r-a-g-e 
        -t-h-a-t -i-s -a-u-t-h-o-r-i-z-e-d -u-n-d-e-r -t-h-i-s 
        -t-i-t-l-e-.-'-'-;
                    -(-C-) -i-n -p-a-r-a-g-r-a-p-h -(-3-)---
                            -(-i-) -b-y -s-t-r-i-k-i-n-g 
                        -`-`-t-a-k-i-n-g -i-n-t-o 
                        -c-o-n-s-i-d-e-r-a-t-i-o-n -t-h-e -r-i-s-k-s 
                        -c-o-v-e-r-e-d -b-y -t-h-e -p-o-l-i-c-y -o-r 
                        -o-t-h-e-r -m-a-t-e-r-i-a-l-'-'-;
                            -(-i-i-) -b-y -i-n-s-e-r-t-i-n-g -a-f-t-e-r 
                        -`-`-m-o-r-e -t-h-a-n -o-n-e 
                        -r-e-i-n-s-u-r-a-n-c-e -a-g-r-e-e-m-e-n-t-'-' 
                        -t-h-e -w-o-r-d-s -`-`-w-i-t-h -t-h-e 
                        -p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e 
                        -p-r-o-v-i-d-e-r-'-'-; -a-n-d
                            -(-i-i-i-) -b-y -s-t-r-i-k-i-n-g -t-i-t-l-e 
                        -`-`-V-'-' -a-n-d -i-n-s-e-r-t-i-n-g 
                        -`-`-t-i-t-l-e -5-'-'-; -a-n-d
                    -(-D-) -b-y -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h 
                -(-4-) -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
                -f-o-l-l-o-w-i-n-g -n-e-w -p-a-r-a-g-r-a-p-h-:
            -`-`-(-4-) -R-e-q-u-i-r-e-d -p-u-b-l-i-c-a-t-i-o-n-.---
        -A-n-y -p-o-l-i-c-i-e-s-, -p-r-o-v-i-s-i-o-n-s -o-f 
        -p-o-l-i-c-i-e-s-, -a-n-d -r-a-t-e-s -a-p-p-r-o-v-e-d 
        -u-n-d-e-r -t-h-i-s -s-u-b-s-e-c-t-i-o-n -s-h-a-l-l -b-e 
        -p-u-b-l-i-s-h-e-d -a-s -a -n-o-t-i-c-e -i-n -t-h-e 
        -F-e-d-e-r-a-l -R-e-g-i-s-t-e-r -a-n-d -m-a-d-e 
        -a-v-a-i-l-a-b-l-e -t-o -a-l-l -p-e-r-s-o-n-s 
        -c-o-n-t-r-a-c-t-i-n-g -w-i-t-h -o-r -r-e-i-n-s-u-r-e-d -b-y 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n -u-n-d-e-r -t-h-e -s-a-m-e 
        -t-e-r-m-s -a-n-d -c-o-n-d-i-t-i-o-n-s -a-s -b-e-t-w-e-e-n 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n -a-n-d -t-h-e 
        -s-u-b-m-i-t-t-i-n-g -p-e-r-s-o-n-.-'-'-;
            -(-6-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n -(-i-) 
        -(-a-s -r-e-d-e-s-i-g-n-a-t-e-d-) -a-n-d -i-n-s-e-r-t-i-n-g 
        -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-i-) -C-l-a-i-m-s -F-o-r -L-o-s-s-e-s-.----T-h-e 
-C-o-r-p-o-r-a-t-i-o-n -m-a-y -p-r-o-v-i-d-e -f-o-r 
-a-d-j-u-s-t-m-e-n-t -a-n-d -p-a-y-m-e-n-t -o-f -c-l-a-i-m-s -f-o-r 
-l-o-s-s-e-s -a-s -p-r-o-v-i-d-e-d -u-n-d-e-r -s-u-b-s-e-c-t-i-o-n 
-(-a-) -o-f -t-h-i-s -s-e-c-t-i-o-n -u-n-d-e-r -r-u-l-e-s 
-p-r-e-s-c-r-i-b-e-d -b-y -t-h-e -B-o-a-r-d-. -T-h-e -r-u-l-e-s 
-p-r-e-s-c-r-i-b-e-d -b-y -t-h-e -B-o-a-r-d -s-h-a-l-l 
-e-s-t-a-b-l-i-s-h -s-t-a-n-d-a-r-d-s -t-o -e-n-s-u-r-e -t-h-a-t -a-l-l 
-c-l-a-i-m-s -f-o-r -l-o-s-s-e-s -a-r-e -a-d-j-u-s-t-e-d-, -t-o -t-h-e 
-e-x-t-e-n-t -p-r-a-c-t-i-c-a-b-l-e-, -i-n -a -u-n-i-f-o-r-m -a-n-d 
-t-i-m-e-l-y -m-a-n-n-e-r-. -I-f -a-n-y -c-l-a-i-m -f-o-r 
-i-n-d-e-m-n-i-t-y -i-s -d-e-n-i-e-d -b-y -t-h-e 
-C-o-r-p-o-r-a-t-i-o-n-, -a-n -a-c-t-i-o-n -o-n -s-u-c-h -c-l-a-i-m 
-m-a-y -b-e -b-r-o-u-g-h-t -a-g-a-i-n-s-t -t-h-e -C-o-r-p-o-r-a-t-i-o-n 
-a-n-d -t-h-e -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r -i-n -t-h-e 
-U-n-i-t-e-d -S-t-a-t-e-s -d-i-s-t-r-i-c-t -c-o-u-r-t -f-o-r -t-h-e 
-d-i-s-t-r-i-c-t -i-n -w-h-i-c-h -t-h-e -i-n-s-u-r-e-d -f-a-r-m -i-s 
-l-o-c-a-t-e-d-: -P-r-o-v-i-d-e-d-, -T-h-a-t -n-o -s-u-i-t -o-n 
-s-u-c-h -c-l-a-i-m -m-a-y -b-e -a-l-l-o-w-e-d -u-n-d-e-r -t-h-i-s 
-s-e-c-t-i-o-n -u-n-l-e-s-s -i-t -s-h-a-l-l -h-a-v-e -b-e-e-n 
-b-r-o-u-g-h-t -w-i-t-h-i-n -o-n-e -y-e-a-r -a-f-t-e-r -t-h-e -d-a-t-e 
-w-h-e-n -w-r-i-t-t-e-n -n-o-t-i-c-e -o-f -d-e-n-i-a-l -o-f -t-h-e 
-c-l-a-i-m -i-s -p-r-o-v-i-d-e-d -t-o -t-h-e -c-l-a-i-m-a-n-t-.-'-'-;
            -(-7-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n -(-j-) 
        -(-a-s -r-e-d-e-s-i-g-n-a-t-e-d-) -a-n-d -i-n-s-e-r-t-i-n-g 
        -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-j-) -R-e-i-n-s-u-r-a-n-c-e-.---
-N-o-t-w-i-t-h-s-t-a-n-d-i-n-g -a-n-y -o-t-h-e-r -p-r-o-v-i-s-i-o-n 
-o-f -t-h-i-s -t-i-t-l-e-, -t-h-e -C-o-r-p-o-r-a-t-i-o-n -i-s 
-d-i-r-e-c-t-e-d-, -t-o -t-h-e -m-a-x-i-m-u-m -e-x-t-e-n-t 
-p-r-a-c-t-i-c-a-b-l-e-, -t-o -p-r-o-v-i-d-e -r-e-i-n-s-u-r-a-n-c-e 
-u-p-o-n -s-u-c-h -t-e-r-m-s -a-n-d -c-o-n-d-i-t-i-o-n-s -a-s -t-h-e 
-B-o-a-r-d -m-a-y -d-e-t-e-r-m-i-n-e -t-o -b-e -c-o-n-s-i-s-t-e-n-t 
-w-i-t-h -s-u-b-s-e-c-t-i-o-n-s -(-b-) -a-n-d -(-c-) -o-f -t-h-i-s 
-s-e-c-t-i-o-n -a-n-d -s-o-u-n-d -r-e-i-n-s-u-r-a-n-c-e 
-p-r-i-n-c-i-p-l-e-s -t-o -i-n-s-u-r-e-r-s-, -a-s -d-e-f-i-n-e-d -b-y 
-t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -t-h-a-t -i-n-s-u-r-e 
-p-r-o-d-u-c-e-r-s -o-f -a-n-y -a-g-r-i-c-u-l-t-u-r-a-l 
-c-o-m-m-o-d-i-t-y -u-n-d-e-r -a -p-l-a-n -o-r -p-l-a-n-s 
-a-c-c-e-p-t-a-b-l-e -t-o -t-h-e -C-o-r-p-o-r-a-t-i-o-n-. -T-h-e 
-C-o-r-p-o-r-a-t-i-o-n-'-s -r-e-i-n-s-u-r-a-n-c-e -a-g-r-e-e-m-e-n-t-s 
-w-i-t-h -t-h-e -r-e-i-n-s-u-r-e-d -c-o-m-p-a-n-i-e-s -s-h-a-l-l 
-r-e-q-u-i-r-e -t-h-e -r-e-i-n-s-u-r-e-d -c-o-m-p-a-n-i-e-s -t-o 
-b-e-a-r -a -s-u-f-f-i-c-i-e-n-t -s-h-a-r-e -o-f -a-n-y 
-p-o-t-e-n-t-i-a-l -l-o-s-s -u-n-d-e-r -s-u-c-h -a-g-r-e-e-m-e-n-t -s-o 
-a-s -t-o -e-n-s-u-r-e -t-h-a-t -t-h-e -r-e-i-n-s-u-r-e-d 
-c-o-m-p-a-n-y -w-i-l-l -s-e-l-l -a-n-d -s-e-r-v-i-c-e -p-o-l-i-c-i-e-s 
-o-f -i-n-s-u-r-a-n-c-e -i-n -a -s-o-u-n-d -a-n-d -p-r-u-d-e-n-t 
-m-a-n-n-e-r-, -t-a-k-i-n-g -i-n-t-o -c-o-n-s-i-d-e-r-a-t-i-o-n -t-h-e 
-a-v-a-i-l-a-b-i-l-i-t-y -o-f -p-r-i-v-a-t-e 
-r-e-i-n-s-u-r-a-n-c-e-.-'-'-;
            -(-8-) -i-n -s-u-b-s-e-c-t-i-o-n -(-k-) -(-a-s 
        -r-e-d-e-s-i-g-n-a-t-e-d-)-, -b-y -s-t-r-i-k-i-n-g 
        -`-`-p-r-o-v-i-d-e-'-' -a-f-t-e-r -`-`-T-h-e 
        -C-o-r-p-o-r-a-t-i-o-n -m-a-y-'-' -a-n-d -i-n-s-e-r-t-i-n-g 
        -`-`-o-f-f-e-r -p-l-a-n-s -o-f-'-'-; -a-n-d
            -(-9-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n -(-n-) 
        -(-a-s -r-e-d-e-s-i-g-n-a-t-e-d-) -a-n-d -i-n-s-e-r-t-i-n-g 
        -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-n-) -I-n-f-o-r-m-a-t-i-o-n -C-o-l-l-e-c-t-i-o-n -o-n 
-C-r-o-p -I-n-s-u-r-a-n-c-e-.----T-h-e -C-o-r-p-o-r-a-t-i-o-n 
-s-h-a-l-l -m-a-k-e -a-v-a-i-l-a-b-l-e -t-o -p-r-o-d-u-c-e-r-s 
-t-h-r-o-u-g-h -l-o-c-a-l -o-f-f-i-c-e-s -o-f -t-h-e 
-D-e-p-a-r-t-m-e-n-t -o-f -A-g-r-i-c-u-l-t-u-r-e---
            -`-`-(-1-) -c-u-r-r-e-n-t -a-n-d -c-o-m-p-l-e-t-e 
        -i-n-f-o-r-m-a-t-i-o-n -o-n -a-l-l -a-s-p-e-c-t-s -o-f 
        -F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e-; -a-n-d
            -`-`-(-2-) -a -l-i-s-t-i-n-g -o-f -i-n-s-u-r-a-n-c-e 
        -a-g-e-n-t-s-.-'-'-.
    -(-e-) -S-e-c-t-i-o-n -5-0-8-A -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-0-8-A-) -i-s -r-e-p-e-a-l-e-d-.
    -(-f-) -S-e-c-t-i-o-n -5-1-1 -o-f -t-i-t-l-e -V -o-f -t-h-e 
-A-g-r-i-c-u-l-t-u-r-a-l -A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -(-7 
-U-.-S-.-C-. -1-5-1-1-) -i-s -a-m-e-n-d-e-d -b-y -i-n-s-e-r-t-i-n-g 
-`-`-i-t-s -c-o-n-t-r-a-c-t-s -o-f -i-n-s-u-r-a-n-c-e -a-n-d 
-p-r-e-m-i-u-m -t-h-e-r-e-o-n-, -w-h-e-t-h-e-r -i-n-s-u-r-e-d 
-d-i-r-e-c-t-l-y -o-r -r-e-i-n-s-u-r-e-d -b-y -t-h-e 
-C-o-r-p-o-r-a-t-i-o-n-,-'-' -a-f-t-e-r -`-`-T-h-e 
-C-o-r-p-o-r-a-t-i-o-n-, -i-n-c-l-u-d-i-n-g-'-'-.
    -(-g-) -T-i-t-l-e -V -o-f -t-h-e -A-g-r-i-c-u-l-t-u-r-a-l 
-A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -i-s -a-m-e-n-d-e-d -b-y 
-s-t-r-i-k-i-n-g -s-e-c-t-i-o-n -5-1-6 -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
-f-o-l-l-o-w-i-n-g -n-e-w -s-e-c-t-i-o-n-:

-`-`-S-E-C-. -5-1-6-. -A-U-T-H-O-R-I-Z-A-T-I-O-N -O-F 
              -A-P-P-R-O-P-R-I-A-T-I-O-N-S-.

    -`-`-(-a-) -A-p-p-r-o-p-r-i-a-t-i-o-n-s-.----T-h-e-r-e -a-r-e 
-h-e-r-e-b-y -a-u-t-h-o-r-i-z-e-d -t-o -b-e -a-p-p-r-o-p-r-i-a-t-e-d 
-s-u-c-h -s-u-m-s -a-s -m-a-y -b-e -n-e-c-e-s-s-a-r-y-, 
-i-n-c-l-u-d-i-n-g -f-u-n-d-s -c-o-l-l-e-c-t-e-d -a-s 
-a-d-m-i-n-i-s-t-r-a-t-i-v-e -f-e-e-s-, -t-o -c-o-v-e-r -t-h-e 
-a-d-m-i-n-i-s-t-r-a-t-i-v-e -a-n-d -o-p-e-r-a-t-i-n-g -e-x-p-e-n-s-e-s 
-o-f -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
    -`-`-(-b-) -I-n-s-u-r-a-n-c-e -F-u-n-d-.----T-h-e-r-e -s-h-a-l-l 
-b-e -e-s-t-a-b-l-i-s-h-e-d -a-n -i-n-s-u-r-a-n-c-e -f-u-n-d -f-o-r 
-d-e-p-o-s-i-t -o-f -p-r-e-m-i-u-m -i-n-c-o-m-e-, -i-n-c-o-m-e -f-r-o-m 
-r-e-i-n-s-u-r-a-n-c-e -o-p-e-r-a-t-i-o-n-s-, -a-n-d 
-a-p-p-r-o-p-r-i-a-t-i-o-n-s -p-r-o-v-i-d-e-d -b-y -t-h-i-s -A-c-t-. 
-T-h-e -C-o-r-p-o-r-a-t-i-o-n -w-i-l-l -p-a-y -a-m-o-u-n-t-s -d-u-e 
-u-n-d-e-r -i-t-s -r-e-i-n-s-u-r-a-n-c-e -a-g-r-e-e-m-e-n-t-s -w-i-t-h 
-p-r-i-v-a-t-e -i-n-s-u-r-a-n-c-e -p-r-o-v-i-d-e-r-s-, 
-i-n-c-l-u-d-i-n-g -p-r-e-m-i-u-m -s-u-b-s-i-d-i-e-s-, -f-r-o-m -t-h-e 
-f-u-n-d-.-'-'-.
    -(-h-) -T-i-t-l-e -V -o-f -t-h-e -A-g-r-i-c-u-l-t-u-r-a-l 
-A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -i-s -a-m-e-n-d-e-d -b-y 
-s-t-r-i-k-i-n-g -s-e-c-t-i-o-n -5-2-0 -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e 
-f-o-l-l-o-w-i-n-g -n-e-w -s-e-c-t-i-o-n-:

-`-`-S-E-C-. -5-2-0-. -P-R-O-D-U-C-E-R -E-L-I-G-I-B-I-L-I-T-Y-.

    -`-`-E-x-c-e-p-t -a-s -o-t-h-e-r-w-i-s-e -p-r-o-v-i-d-e-d -i-n 
-t-h-i-s -t-i-t-l-e-, -n-o -p-r-o-d-u-c-e-r -s-h-a-l-l -b-e 
-d-e-n-i-e-d -i-n-s-u-r-a-n-c-e -u-n-d-e-r -t-h-i-s -t-i-t-l-e -i-f---
            -`-`-(-1-) -f-o-r -p-u-r-p-o-s-e-s -o-f 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -c-o-v-e-r-a-g-e-, -t-h-e -p-r-o-d-u-c-e-r -m-e-e-t-s -t-h-e 
        -d-e-f-i-n-i-t-i-o-n -o-f -p-e-r-s-o-n-, -a-s -d-e-f-i-n-e-d 
        -b-y -t-h-e -S-e-c-r-e-t-a-r-y-; -a-n-d
            -`-`-(-2-) -f-o-r -p-u-r-p-o-s-e-s -o-f -a-n-y -o-t-h-e-r 
        -p-l-a-n -o-f -i-n-s-u-r-a-n-c-e-, -t-h-e -p-r-o-d-u-c-e-r -i-s 
        -e-i-g-h-t-e-e-n -y-e-a-r-s -o-f -a-g-e -a-n-d -h-a-s -a 
        -b-o-n-a -f-i-d-e -i-n-s-u-r-a-b-l-e -i-n-t-e-r-e-s-t -i-n -a 
        -c-r-o-p -a-s -a-n -o-w-n-e-r---o-p-e-r-a-t-o-r-, 
        -l-a-n-d-l-o-r-d-, -t-e-n-a-n-t-, -o-r 
        -s-h-a-r-e-c-r-o-p-p-e-r-.-'-'-.

-S-E-C-. -3-. -A-D-V-I-S-O-R-Y -C-O-M-M-I-T-T-E-E-.

    -T-i-t-l-e -V -o-f -t-h-e -A-g-r-i-c-u-l-t-u-r-a-l 
-A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -i-s -a-m-e-n-d-e-d -b-y 
-a-d-d-i-n-g -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-e-c-t-i-o-n-:

-`-`-S-E-C-. -5-2-1-. -A-D-V-I-S-O-R-Y -C-O-M-M-I-T-T-E-E -F-O-R 
              -F-E-D-E-R-A-L -C-R-O-P -I-N-S-U-R-A-N-C-E-.

    -`-`-(-a-) -E-s-t-a-b-l-i-s-h-m-e-n-t-.----T-h-e -S-e-c-r-e-t-a-r-y 
-m-a-y -e-s-t-a-b-l-i-s-h -w-i-t-h-i-n -t-h-e -D-e-p-a-r-t-m-e-n-t -o-f 
-A-g-r-i-c-u-l-t-u-r-e -a -c-o-m-m-i-t-t-e-e -t-o -b-e -k-n-o-w-n -a-s 
-t-h-e -A-d-v-i-s-o-r-y -C-o-m-m-i-t-t-e-e -f-o-r -F-e-d-e-r-a-l 
-C-r-o-p -I-n-s-u-r-a-n-c-e -w-h-i-c-h -s-h-a-l-l -r-e-m-a-i-n -i-n 
-e-x-i-s-t-e-n-c-e -u-n-t-i-l -S-e-p-t-e-m-b-e-r -3-0-, -1-9-9-8-.
    -`-`-(-b-) -M-e-m-b-e-r-s-h-i-p-.----T-h-e -A-d-v-i-s-o-r-y 
-C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e -c-o-m-p-o-s-e-d -o-f -t-h-e 
-M-a-n-a-g-e-r -o-f -t-h-e -C-o-r-p-o-r-a-t-i-o-n-, -t-h-e 
-S-e-c-r-e-t-a-r-y -o-r -h-i-s -d-e-s-i-g-n-e-e-, -a-n-d -n-o-t 
-l-e-s-s -t-h-a-n -t-e-n -r-e-p-r-e-s-e-n-t-a-t-i-v-e-s -o-f 
-o-r-g-a-n-i-z-a-t-i-o-n-s -o-r -a-g-e-n-c-i-e-s -i-n-v-o-l-v-e-d 
-w-i-t-h -t-h-e -F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e 
-p-r-o-g-r-a-m-, -w-h-i-c-h -m-a-y -i-n-c-l-u-d-e -t-h-e 
-f-o-l-l-o-w-i-n-g-: -i-n-s-u-r-a-n-c-e -c-o-m-p-a-n-i-e-s-; 
-i-n-s-u-r-a-n-c-e -a-g-e-n-t-s-; -f-a-r-m -p-r-o-d-u-c-e-r 
-o-r-g-a-n-i-z-a-t-i-o-n-s-; -e-x-p-e-r-t-s -o-n -a-g-r-o-n-o-m-i-c 
-p-r-a-c-t-i-c-e-s-; -a-n-d -b-a-n-k-i-n-g -a-n-d -l-e-n-d-i-n-g 
-i-n-s-t-i-t-u-t-i-o-n-s-.
    -`-`-(-c-) -A-d-m-i-n-i-s-t-r-a-t-i-v-e -P-r-o-v-i-s-i-o-n-s-.--
            -`-`-(-1-) -T-e-r-m-s-.----M-e-m-b-e-r-s -o-f -t-h-e 
        -A-d-v-i-s-o-r-y -C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e 
        -a-p-p-o-i-n-t-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y -f-o-r -a 
        -t-e-r-m -o-f -u-p -t-o -t-w-o -y-e-a-r-s -f-r-o-m 
        -n-o-m-i-n-a-t-i-o-n-s -m-a-d-e -b-y -t-h-e 
        -p-a-r-t-i-c-i-p-a-t-i-n-g -o-r-g-a-n-i-z-a-t-i-o-n-s-. -T-h-e 
        -t-e-r-m-s -o-f -t-h-e -m-e-m-b-e-r-s -s-h-a-l-l -b-e 
        -s-t-a-g-g-e-r-e-d-.
            -`-`-(-2-) -C-h-a-i-r-p-e-r-s-o-n-.----T-h-e 
        -A-d-v-i-s-o-r-y -C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e 
        -c-h-a-i-r-e-d -b-y -t-h-e -M-a-n-a-g-e-r -o-f -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-3-) -M-e-e-t-i-n-g-s-.----T-h-e -A-d-v-i-s-o-r-y 
        -C-o-m-m-i-t-t-e-e -s-h-a-l-l -m-e-e-t -a-t -l-e-a-s-t 
        -a-n-n-u-a-l-l-y-. -T-h-e -m-e-e-t-i-n-g-s -o-f -t-h-e 
        -A-d-v-i-s-o-r-y -C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e 
        -p-u-b-l-i-c-l-y -a-n-n-o-u-n-c-e-d -i-n -a-d-v-a-n-c-e -a-n-d 
        -s-h-a-l-l -b-e -o-p-e-n -t-o -t-h-e -p-u-b-l-i-c-. 
        -A-p-p-r-o-p-r-i-a-t-e -r-e-c-o-r-d-s -o-f -t-h-e 
        -a-c-t-i-v-i-t-i-e-s -o-f -t-h-e -A-d-v-i-s-o-r-y 
        -C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e -k-e-p-t -a-n-d -m-a-d-e 
        -a-v-a-i-l-a-b-l-e -t-o -t-h-e -p-u-b-l-i-c -o-n 
        -r-e-q-u-e-s-t-.
    -`-`-(-d-) -P-r-i-m-a-r-y -R-e-s-p-o-n-s-i-b-i-l-i-t-y-.----T-h-e 
-p-r-i-m-a-r-y -r-e-s-p-o-n-s-i-b-i-l-i-t-y -o-f -t-h-e 
-A-d-v-i-s-o-r-y -C-o-m-m-i-t-t-e-e -s-h-a-l-l -b-e -t-o -a-d-v-i-s-e 
-t-h-e -S-e-c-r-e-t-a-r-y -o-n -t-h-e -i-m-p-l-e-m-e-n-t-a-t-i-o-n -o-f 
-t-h-i-s -t-i-t-l-e -a-n-d -o-n -o-t-h-e-r -i-s-s-u-e-s -r-e-l-a-t-e-d 
-t-o -c-r-o-p -i-n-s-u-r-a-n-c-e-, -a-s -d-e-t-e-r-m-i-n-e-d -b-y 
-t-h-e -M-a-n-a-g-e-r-.
    -`-`-(-e-) -R-e-p-o-r-t-s-.----N-o-t -l-a-t-e-r -t-h-a-n -J-u-n-e 
-3-0 -o-f -e-a-c-h -y-e-a-r-, -t-h-e -A-d-v-i-s-o-r-y 
-C-o-m-m-i-t-t-e-e -s-h-a-l-l -p-r-e-p-a-r-e-, -a-n-d -s-u-b-m-i-t -t-o 
-t-h-e -S-e-c-r-e-t-a-r-y-, -a -r-e-p-o-r-t -s-p-e-c-i-f-y-i-n-g -i-t-s 
-c-o-n-c-l-u-s-i-o-n-s -o-n---
            -`-`-(-1-) -t-h-e -p-r-o-g-r-e-s-s -t-o-w-a-r-d 
        -i-m-p-l-e-m-e-n-t-a-t-i-o-n -o-f -t-h-e -p-r-o-v-i-s-i-o-n-s 
        -o-f -t-h-i-s -t-i-t-l-e-;
            -`-`-(-2-) -t-h-e -a-c-t-u-a-r-i-a-l -s-o-u-n-d-n-e-s-s 
        -o-f -t-h-e -F-e-d-e-r-a-l -c-r-o-p -i-n-s-u-r-a-n-c-e 
        -p-r-o-g-r-a-m-; -a-n-d
            -`-`-(-3-) -t-h-e -r-a-t-e -o-f -p-a-r-t-i-c-i-p-a-t-i-o-n 
        -i-n -b-o-t-h -t-h-e -c-a-t-a-s-t-r-o-p-h-i-c -a-n-d -t-h-e 
        -a-d-d-i-t-i-o-n-a-l -c-o-v-e-r-a-g-e -p-r-o-g-r-a-m-s-.-'-'-.

-S-E-C-. -4-. -N-O-N-I-N-S-U-R-E-D -A-S-S-I-S-T-A-N-C-E-.

    -T-i-t-l-e -V -o-f -t-h-e -A-g-r-i-c-u-l-t-u-r-a-l 
-A-d-j-u-s-t-m-e-n-t -A-c-t -o-f -1-9-3-8 -i-s -a-m-e-n-d-e-d -b-y 
-a-d-d-i-n-g -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-e-c-t-i-o-n-:

-`-`-S-E-C-. -5-2-2-. -N-O-N-I-N-S-U-R-E-D -A-S-S-I-S-T-A-N-C-E 
              -P-R-O-G-R-A-M-.

    -`-`-(-a-) -E-l-i-g-i-b-i-l-i-t-y-.--
            -`-`-(-1-) -A -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e 
        -p-r-o-g-r-a-m -i-s -e-s-t-a-b-l-i-s-h-e-d -t-o -p-r-o-v-i-d-e 
        -c-o-v-e-r-a-g-e -e-q-u-i-v-a-l-e-n-t -t-o -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -f-o-r -c-r-o-p-s -f-o-r -w-h-i-c-h 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -i-s -n-o-t -a-v-a-i-l-a-b-l-e-. -C-r-o-p-s 
        -c-o-v-e-r-e-d -i-n-c-l-u-d-e -a-l-l -c-o-m-m-e-r-c-i-a-l 
        -c-r-o-p-s -a-n-d -c-o-m-m-o-d-i-t-i-e-s -f-o-r -w-h-i-c-h 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -c-o-v-e-r-a-g-e -i-s -n-o-t -a-v-a-i-l-a-b-l-e -a-n-d -t-h-a-t 
        -a-r-e -p-r-o-d-u-c-e-d -f-o-r -f-o-o-d -o-r -f-i-b-e-r -o-n -a 
        -c-o-m-m-e-r-c-i-a-l -b-a-s-i-s -b-u-t -s-h-a-l-l -n-o-t 
        -i-n-c-l-u-d-e -l-i-v-e-s-t-o-c-k-. -N-o-n-i-n-s-u-r-e-d 
        -a-s-s-i-s-t-a-n-c-e -s-h-a-l-l -n-o-t -c-o-v-e-r -l-o-s-s-e-s 
        -d-u-e -t-o---
                    -`-`-(-A-) -t-h-e -n-e-g-l-e-c-t -o-r 
                -m-a-l-f-e-a-s-a-n-c-e -o-f -t-h-e -p-r-o-d-u-c-e-r-;
                    -`-`-(-B-) -t-h-e -f-a-i-l-u-r-e -o-f -t-h-e 
                -p-r-o-d-u-c-e-r -t-o -r-e-s-e-e-d -t-o -t-h-e -s-a-m-e 
                -c-r-o-p -i-n -t-h-o-s-e -a-r-e-a-s -a-n-d -u-n-d-e-r 
                -s-u-c-h -c-i-r-c-u-m-s-t-a-n-c-e-s -w-h-e-r-e -i-t 
                -i-s -c-u-s-t-o-m-a-r-y -t-o -s-o -r-e-s-e-e-d-; -o-r
                    -`-`-(-C-) -t-h-e -f-a-i-l-u-r-e -o-f -t-h-e 
                -p-r-o-d-u-c-e-r -t-o -f-o-l-l-o-w -g-o-o-d 
                -f-a-r-m-i-n-g -p-r-a-c-t-i-c-e-s-, -a-s 
                -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
                -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-2-) -P-r-o-d-u-c-e-r-s -s-h-a-l-l -m-a-k-e -a 
        -t-i-m-e-l-y -a-p-p-l-i-c-a-t-i-o-n -f-o-r -n-o-n-i-n-s-u-r-e-d 
        -a-s-s-i-s-t-a-n-c-e -a-t -t-h-e -U-n-i-t-e-d -S-t-a-t-e-s 
        -D-e-p-a-r-t-m-e-n-t -o-f -A-g-r-i-c-u-l-t-u-r-e -o-f-f-i-c-e-.
            -`-`-(-3-) -P-r-o-d-u-c-e-r-s -s-h-a-l-l -p-r-o-v-i-d-e 
        -r-e-c-o-r-d-s-, -a-c-c-e-p-t-a-b-l-e -t-o -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-f -p-r-e-v-i-o-u-s -c-r-o-p 
        -a-c-r-e-a-g-e -a-n-d -p-r-o-d-u-c-t-i-o-n -o-r -t-h-e 
        -p-r-o-d-u-c-e-r-s -s-h-a-l-l -a-c-c-e-p-t -a -y-i-e-l-d -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-4-) -P-r-o-d-u-c-e-r-s -s-h-a-l-l -r-e-p-o-r-t 
        -a-c-r-e-a-g-e -p-l-a-n-t-e-d -a-n-d -p-r-e-v-e-n-t-e-d 
        -f-r-o-m -b-e-i-n-g -p-l-a-n-t-e-d -b-y -t-h-e 
        -d-e-s-i-g-n-a-t-e-d -a-c-r-e-a-g-e -r-e-p-o-r-t-i-n-g -d-a-t-e 
        -f-o-r -t-h-a-t -c-r-o-p -a-n-d -l-o-c-a-t-i-o-n -a-s 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-5-) -P-r-o-d-u-c-e-r-s -o-f -n-o-n---p-r-o-g-r-a-m 
        -c-r-o-p-s -s-h-a-l-l -n-o-t -b-e -e-l-i-g-i-b-l-e -f-o-r 
        -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e -u-n-l-e-s-s -t-h-e 
        -a-r-e-a-, -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -a-v-e-r-a-g-e -y-i-e-l-d-, -o-r -a-n 
        -e-q-u-i-v-a-l-e-n-t -m-e-a-s-u-r-e -i-n -t-h-e -e-v-e-n-t 
        -y-i-e-l-d -d-a-t-a -a-r-e -n-o-t -a-v-a-i-l-a-b-l-e-, -f-o-r 
        -t-h-a-t -c-r-o-p -f-a-l-l-s -b-e-l-o-w -6-5 -p-e-r-c-e-n-t 
        -o-f -t-h-e -e-x-p-e-c-t-e-d -a-r-e-a -y-i-e-l-d -a-s 
        -e-s-t-a-b-l-i-s-h-e-d -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n-.
            -`-`-(-6-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -m-a-k-e -a -p-r-e-v-e-n-t-e-d -p-l-a-n-t-i-n-g 
        -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e -p-a-y-m-e-n-t -i-f 
        -t-h-e -p-r-o-d-u-c-e-r -i-s -p-r-e-v-e-n-t-e-d -f-r-o-m 
        -p-l-a-n-t-i-n-g -m-o-r-e -t-h-a-n -3-5 -p-e-r-c-e-n-t -o-f 
        -t-h-e -a-c-r-e-a-g-e -i-n-t-e-n-d-e-d -f-o-r -t-h-e -c-r-o-p 
        -b-e-c-a-u-s-e -o-f -d-r-o-u-g-h-t-, -f-l-o-o-d-, -o-r 
        -o-t-h-e-r -n-a-t-u-r-a-l -d-i-s-a-s-t-e-r -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-.
            -`-`-(-7-) -I-f-, -b-e-c-a-u-s-e -o-f -d-r-o-u-g-h-t-, 
        -f-l-o-o-d-, -o-r -o-t-h-e-r -n-a-t-u-r-a-l -d-i-s-a-s-t-e-r 
        -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-, 
        -t-h-e -t-o-t-a-l -q-u-a-n-t-i-t-y -o-f -t-h-e -c-r-o-p 
        -t-h-a-t -a -p-r-o-d-u-c-e-r -i-s -a-b-l-e -t-o -h-a-r-v-e-s-t 
        -o-n -a-n-y -f-a-r-m -i-s -l-e-s-s -t-h-a-n -5-0 -p-e-r-c-e-n-t 
        -o-f -t-h-e -e-x-p-e-c-t-e-d -a-r-e-a -y-i-e-l-d -f-o-r -t-h-e 
        -c-r-o-p-, -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -f-a-c-t-o-r-e-d -f-o-r -t-h-e 
        -p-r-o-d-u-c-e-r-'-s -i-n-t-e-r-e-s-t -f-o-r -t-h-e -c-r-o-p-, 
        -t-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l -m-a-k-e -a 
        -r-e-d-u-c-e-d -y-i-e-l-d -n-o-n-i-n-s-u-r-e-d 
        -a-s-s-i-s-t-a-n-c-e -p-a-y-m-e-n-t-.
            -`-`-(-8-) -A -p-e-r-s-o-n -w-h-o -h-a-s 
        -q-u-a-l-i-f-y-i-n-g -g-r-o-s-s -r-e-v-e-n-u-e-s -i-n 
        -e-x-c-e-s-s -o-f -$-2-,-0-0-0-,-0-0-0 -a-n-n-u-a-l-l-y-, -a-s 
        -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-, 
        -s-h-a-l-l -n-o-t -b-e -e-l-i-g-i-b-l-e -t-o -r-e-c-e-i-v-e 
        -a-n-y -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e 
        -p-a-y-m-e-n-t-s-. -F-o-r -p-u-r-p-o-s-e-s -o-f -t-h-i-s 
        -s-e-c-t-i-o-n-, -t-h-e -t-e-r-m -`-q-u-a-l-i-f-y-i-n-g 
        -g-r-o-s-s -r-e-v-e-n-u-e-s-' -m-e-a-n-s---
                    -`-`-(-A-) -i-f -a -m-a-j-o-r-i-t-y -o-f -t-h-e 
                -p-e-r-s-o-n-'-s -g-r-o-s-s -r-e-v-e-n-u-e -i-s 
                -r-e-c-e-i-v-e-d -f-r-o-m -f-a-r-m-i-n-g-, 
                -r-a-n-c-h-i-n-g-, -a-n-d -f-o-r-e-s-t-r-y 
                -o-p-e-r-a-t-i-o-n-s-, -t-h-e -g-r-o-s-s -r-e-v-e-n-u-e 
                -f-r-o-m -t-h-e -p-e-r-s-o-n-'-s -f-a-r-m-i-n-g-, 
                -r-a-n-c-h-i-n-g-, -a-n-d -f-o-r-e-s-t-r-y 
                -o-p-e-r-a-t-i-o-n-s-; -a-n-d
                    -`-`-(-B-) -i-f -l-e-s-s -t-h-a-n -a 
                -m-a-j-o-r-i-t-y -o-f -t-h-e -p-e-r-s-o-n-'-s 
                -g-r-o-s-s -r-e-v-e-n-u-e -i-s -r-e-c-e-i-v-e-d 
                -f-r-o-m -f-a-r-m-i-n-g-, -r-a-n-c-h-i-n-g-, -a-n-d 
                -f-o-r-e-s-t-r-y -o-p-e-r-a-t-i-o-n-s-, -t-h-e 
                -p-e-r-s-o-n-'-s -g-r-o-s-s -r-e-v-e-n-u-e -f-r-o-m 
                -a-l-l -s-o-u-r-c-e-s-.
    -`-`-(-b-) -P-a-y-m-e-n-t -R-a-t-e-.----I-f -t-h-e -p-r-o-d-u-c-e-r 
-i-s -e-l-i-g-i-b-l-e -f-o-r -n-o-n-i-n-s-u-r-e-d 
-a-s-s-i-s-t-a-n-c-e-, -p-a-y-m-e-n-t-s -s-h-a-l-l -b-e -m-a-d-e -f-o-r 
-l-o-s-s-e-s -i-n -e-x-c-e-s-s -o-f -5-0 -p-e-r-c-e-n-t -o-f -t-h-e 
-e-s-t-a-b-l-i-s-h-e-d -y-i-e-l-d -f-o-r -t-h-e -c-r-o-p -a-t -6-0 
-p-e-r-c-e-n-t -o-f -t-h-e -a-v-e-r-a-g-e -m-a-r-k-e-t -p-r-i-c-e 
-f-o-r -t-h-a-t -c-r-o-p -o-r -a-n-y -c-o-m-p-a-r-a-b-l-e 
-c-o-v-e-r-a-g-e -a-s -d-e-t-e-r-m-i-n-e-d -b-y -t-h-e 
-C-o-r-p-o-r-a-t-i-o-n-.
    -`-`-(-c-) -F-a-r-m -Y-i-e-l-d-s-.--
            -`-`-(-1-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -e-s-t-a-b-l-i-s-h -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e 
        -p-r-o-g-r-a-m -f-a-r-m -y-i-e-l-d-s -f-o-r -c-r-o-p-s -f-o-r 
        -t-h-e -p-u-r-p-o-s-e-s -o-f -t-h-i-s -s-e-c-t-i-o-n-.
            -`-`-(-2-) -I-f -t-h-e -p-r-o-d-u-c-e-r -c-a-n 
        -p-r-o-v-i-d-e -s-a-t-i-s-f-a-c-t-o-r-y -e-v-i-d-e-n-c-e -o-f 
        -t-h-e -p-r-o-d-u-c-e-r-'-s -a-c-t-u-a-l -p-r-o-d-u-c-t-i-o-n 
        -h-i-s-t-o-r-y -f-o-r -t-h-e -f-o-u-r -p-r-e-v-i-o-u-s 
        -c-o-n-s-e-c-u-t-i-v-e -c-r-o-p -y-e-a-r-s-, -u-p -t-o -a 
        -p-r-o-d-u-c-t-i-o-n -d-a-t-a -b-a-s-e -o-f -t-e-n 
        -c-o-n-s-e-c-u-t-i-v-e -c-r-o-p -y-e-a-r-s-, -t-h-e -y-i-e-l-d 
        -o-f -t-h-e -f-a-r-m -s-h-a-l-l -b-e -b-a-s-e-d -o-n -s-u-c-h 
        -p-r-o-v-e-n -y-i-e-l-d-.
            -`-`-(-3-) -I-f -t-h-e -p-r-o-d-u-c-e-r -d-o-e-s -n-o-t 
        -s-u-b-m-i-t -a-d-e-q-u-a-t-e -d-o-c-u-m-e-n-t-a-t-i-o-n -o-f 
        -s-u-c-h -h-i-s-t-o-r-y -f-o-r -t-h-e -c-r-o-p-, -t-h-e 
        -p-r-o-d-u-c-e-r -s-h-a-l-l -b-e -a-s-s-i-g-n-e-d -a-s -t-h-e 
        -p-r-o-d-u-c-e-r-'-s -f-a-r-m -p-r-o-g-r-a-m -y-i-e-l-d -n-o-t 
        -l-e-s-s -t-h-a-n -6-5 -p-e-r-c-e-n-t -o-f -t-h-e 
        -t-r-a-n-s-i-t-i-o-n-a-l -y-i-e-l-d -(-a-d-j-u-s-t-e-d -t-o 
        -r-e-f-l-e-c-t -a-c-t-u-a-l -e-x-p-e-r-i-e-n-c-e-)-, -a-s 
        -s-p-e-c-i-f-i-e-d -i-n -r-e-g-u-l-a-t-i-o-n-s -i-s-s-u-e-d 
        -b-y -t-h-e -C-o-r-p-o-r-a-t-i-o-n -b-a-s-e-d -o-n 
        -p-r-o-d-u-c-t-i-o-n -h-i-s-t-o-r-y -r-e-q-u-i-r-e-m-e-n-t-s-.
    -`-`-(-d-) -P-a-y-m-e-n-t -o-f -L-o-s-s-e-s-.----P-a-y-m-e-n-t-s 
-f-o-r -n-o-n-i-n-s-u-r-e-d -a-s-s-i-s-t-a-n-c-e -l-o-s-s-e-s 
-u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n -s-h-a-l-l -b-e -m-a-d-e -f-r-o-m 
-t-h-e -i-n-s-u-r-a-n-c-e -f-u-n-d -a-n-d -s-h-a-l-l -b-e 
-r-e-i-m-b-u-r-s-e-d -f-r-o-m -a-p-p-r-o-p-r-i-a-t-i-o-n-s 
-p-r-o-v-i-d-e-d -u-n-d-e-r -t-h-i-s -A-c-t-. -S-u-c-h -l-o-s-s-e-s 
-s-h-a-l-l -n-o-t -b-e -i-n-c-l-u-d-e-d -i-n -c-a-l-c-u-l-a-t-i-n-g 
-t-h-e -p-r-e-m-i-u-m-s -c-h-a-r-g-e-d -t-o -p-r-o-d-u-c-e-r-s -f-o-r 
-i-n-s-u-r-a-n-c-e-.
    -`-`-(-e-) -P-a-y-m-e-n-t -L-i-m-i-t-a-t-i-o-n-s-.---
            -`-`-(-1-) -T-h-e -t-o-t-a-l -a-m-o-u-n-t -o-f 
        -p-a-y-m-e-n-t-s -t-h-a-t -a -p-e-r-s-o-n -s-h-a-l-l -b-e 
        -e-n-t-i-t-l-e-d -t-o -r-e-c-e-i-v-e -a-n-n-u-a-l-l-y 
        -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n -m-a-y -n-o-t -e-x-c-e-e-d 
        -$-1-0-0-,-0-0-0-.
            -`-`-(-2-) -T-h-e -C-o-r-p-o-r-a-t-i-o-n -s-h-a-l-l 
        -i-s-s-u-e -r-e-g-u-l-a-t-i-o-n-s -d-e-f-i-n-i-n-g -t-h-e 
        -t-e-r-m -`-p-e-r-s-o-n-' -t-h-a-t -s-h-a-l-l -c-o-n-f-o-r-m-, 
        -t-o -t-h-e -e-x-t-e-n-t -p-r-a-c-t-i-c-a-b-l-e-, -t-o -t-h-e 
        -r-e-g-u-l-a-t-i-o-n-s -d-e-f-i-n-i-n-g -`-p-e-r-s-o-n-' 
        -i-s-s-u-e-d -u-n-d-e-r -s-e-c-t-i-o-n -1-0-0-1 -o-f -t-h-e 
        -F-o-o-d -S-e-c-u-r-i-t-y -A-c-t -o-f -1-9-8-5 -(-7 
        -U-.-S-.-C-. -1-3-0-8-)-.-'-'-.

-S-E-C-. -5-. -C-O-N-F-O-R-M-I-N-G -A-M-E-N-D-M-E-N-T-S-.

    -(-a-) -T-h-e -A-g-r-i-c-u-l-t-u-r-a-l -A-c-t -o-f -1-9-4-9 -i-s 
-a-m-e-n-d-e-d---
            -(-1-) -i-n -s-e-c-t-i-o-n -1-0-1-B -(-7 -U-.-S-.-C-. 
        -1-4-4-1---2-)---
                    -(-A-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n 
                -(-c-)-(-1-)-(-F-)-; -a-n-d
                    -(-B-) -i-n -s-u-b-s-e-c-t-i-o-n -(-c-) -b-y 
                -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h -(-2-) -a-n-d 
                -i-n-s-e-r-t-i-n-g -i-n -l-i-e-u -t-h-e-r-e-o-f -t-h-e 
                -f-o-l-l-o-w-i-n-g-:
            -`-`-(-2-) -C-r-o-p -i-n-s-u-r-a-n-c-e 
        -r-e-q-u-i-r-e-m-e-n-t-.---A-s -a -c-o-n-d-i-t-i-o-n -o-f 
        -r-e-c-e-i-v-i-n-g -a-n-y -b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g 
        -p-a-y-m-e-n-t-s-) -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
        -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p 
        -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
        -i-s -s-o-u-g-h-t-.-'-'-;
            -(-2-) -i-n -s-e-c-t-i-o-n -1-0-3-(-h-) -(-7 -U-.-S-.-C-. 
        -1-4-4-4-)-, -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -p-a-r-a-g-r-a-p-h-:
            -`-`-(-1-7-) -A-s -a -c-o-n-d-i-t-i-o-n -o-f 
        -r-e-c-e-i-v-i-n-g -a-n-y -b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g 
        -p-a-y-m-e-n-t-s-) -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
        -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p 
        -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
        -i-s -s-o-u-g-h-t-.-'-'-;
            -(-3-) -i-n -s-e-c-t-i-o-n -1-0-3-B -(-7 -U-.-S-.-C-. 
        -1-4-4-4---2-)---
                    -(-A-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n 
                -(-c-)-(-1-)-(-F-)-; -a-n-d
                    -(-B-) -i-n -s-u-b-s-e-c-t-i-o-n -(-c-) -b-y 
                -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h -(-2-) -a-n-d 
                -i-n-s-e-r-t-i-n-g -i-n -l-i-e-u -t-h-e-r-e-o-f -t-h-e 
                -f-o-l-l-o-w-i-n-g-:
            -`-`-(-2-) -C-r-o-p -i-n-s-u-r-a-n-c-e 
        -r-e-q-u-i-r-e-m-e-n-t-.----A-s -a -c-o-n-d-i-t-i-o-n -o-f 
        -r-e-c-e-i-v-i-n-g -a-n-y -b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g 
        -p-a-y-m-e-n-t-s-) -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
        -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p 
        -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
        -i-s -s-o-u-g-h-t-.-'-'-;
            -(-4-) -i-n -s-e-c-t-i-o-n -1-0-5-B -(-7 -U-.-S-.-C-. 
        -1-4-4-4-f-)---
                    -(-A-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n 
                -(-c-)-(-1-)-(-G-)-; -a-n-d
                    -(-B-) -i-n -s-u-b-s-e-c-t-i-o-n -(-c-) -b-y 
                -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h -(-2-) -a-n-d 
                -i-n-s-e-r-t-i-n-g -i-n -l-i-e-u -t-h-e-r-e-o-f -t-h-e 
                -f-o-l-l-o-w-i-n-g-:
            -`-`-(-2-) -C-r-o-p -i-n-s-u-r-a-n-c-e 
        -r-e-q-u-i-r-e-m-e-n-t-.----A-s -a -c-o-n-d-i-t-i-o-n -o-f 
        -r-e-c-e-i-v-i-n-g -a-n-y -b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g 
        -p-a-y-m-e-n-t-s-) -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
        -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p 
        -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
        -i-s -s-o-u-g-h-t-.-'-'-;
            -(-5-) -i-n -s-e-c-t-i-o-n -1-0-7-B -(-7 -U-.-S-.-C-. 
        -1-4-4-4-b---3-a-)---
                    -(-A-) -b-y -s-t-r-i-k-i-n-g -s-u-b-s-e-c-t-i-o-n 
                -(-c-)-(-1-)-(-G-)-; -a-n-d
                    -(-B-) -i-n -s-u-b-s-e-c-t-i-o-n -(-c-) -b-y 
                -s-t-r-i-k-i-n-g -p-a-r-a-g-r-a-p-h -(-2-) -a-n-d 
                -i-n-s-e-r-t-i-n-g -i-n -l-i-e-u -t-h-e-r-e-o-f -t-h-e 
                -f-o-l-l-o-w-i-n-g-:
            -`-`-(-2-) -C-r-o-p -i-n-s-u-r-a-n-c-e 
        -r-e-q-u-i-r-e-m-e-n-t-.----A-s -a -c-o-n-d-i-t-i-o-n -o-f 
        -r-e-c-e-i-v-i-n-g -a-n-y -b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g 
        -p-a-y-m-e-n-t-s-) -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
        -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
        -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
        -C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
        -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
        -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p 
        -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
        -i-s -s-o-u-g-h-t-.-'-'-;
            -(-6-) -i-n -s-e-c-t-i-o-n -1-0-8-B -(-7 -U-.-S-.-C-. 
        -1-4-4-5-c---3-)-, -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-i-) -C-r-o-p -I-n-s-u-r-a-n-c-e -R-e-q-u-i-r-e-m-e-n-t-.---
-A-s -a -c-o-n-d-i-t-i-o-n -o-f -r-e-c-e-i-v-i-n-g -a-n-y 
-b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g -p-a-y-m-e-n-t-s-) -u-n-d-e-r 
-t-h-i-s -s-e-c-t-i-o-n-, -t-h-e -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f 
-o-f-f-e-r-e-d -b-y -t-h-e -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
-C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
-c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
-i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p -a-n-d 
-c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t -i-s 
-s-o-u-g-h-t-.-'-'-;
            -(-7-) -i-n -s-e-c-t-i-o-n -2-0-5 -(-7 -U-.-S-.-C-. 
        -1-4-4-6-f-)-, -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-o-) -C-r-o-p -I-n-s-u-r-a-n-c-e -R-e-q-u-i-r-e-m-e-n-t-.---
-A-s -a -c-o-n-d-i-t-i-o-n -o-f -r-e-c-e-i-v-i-n-g -a-n-y 
-b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g -p-a-y-m-e-n-t-s-) -u-n-d-e-r 
-t-h-i-s -s-e-c-t-i-o-n-, -t-h-e -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f 
-o-f-f-e-r-e-d -b-y -t-h-e -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e 
-C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
-c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
-i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p -a-n-d 
-c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t -i-s 
-s-o-u-g-h-t-.-'-'-;
            -(-8-) -i-n -s-e-c-t-i-o-n -2-0-6 -(-7 -U-.-S-.-C-. 
        -1-4-4-6-g-)-, -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-k-) -C-r-o-p -I-n-s-u-r-a-n-c-e -R-e-q-u-i-r-e-m-e-n-t-.---
-A-s -a -c-o-n-d-i-t-i-o-n -o-f -r-e-c-e-i-v-i-n-g -a-n-y 
-b-e-n-e-f-i-t-s -u-n-d-e-r -t-h-i-s -s-e-c-t-i-o-n-, -t-h-e 
-p-r-o-d-u-c-e-r -m-u-s-t-, -i-f -o-f-f-e-r-e-d -b-y -t-h-e 
-F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e -C-o-r-p-o-r-a-t-i-o-n-, 
-o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e -c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k 
-p-r-o-t-e-c-t-i-o-n -i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e 
-c-r-o-p -a-n-d -c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t 
-i-s -s-o-u-g-h-t-.-'-'-;
            -(-9-) -i-n -s-e-c-t-i-o-n -2-0-7 -(-7 -U-.-S-.-C-. 
        -1-4-4-6-h-)-, -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g -n-e-w -s-u-b-s-e-c-t-i-o-n-:
    -`-`-(-k-) -C-r-o-p -I-n-s-u-r-a-n-c-e -R-e-q-u-i-r-e-m-e-n-t-.---
-A-s -a -c-o-n-d-i-t-i-o-n -o-f -r-e-c-e-i-v-i-n-g -a-n-y 
-b-e-n-e-f-i-t-s -(-i-n-c-l-u-d-i-n-g -p-a-y-m-e-n-t-s-) -u-n-d-e-r 
-t-h-i-s -s-e-c-t-i-o-n-, -t-h-e -p-r-o-d-u-c-e-r -m-u-s-t-, -i-f 
-o-f-f-e-r-e-d -b-y -t-h-e -F-e-d-e-r-a-l -C-o-r-p -I-n-s-u-r-a-n-c-e 
-C-o-r-p-o-r-a-t-i-o-n-, -o-b-t-a-i-n -a-t -l-e-a-s-t -t-h-e 
-c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
-i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -f-o-r -t-h-e -c-r-o-p -a-n-d 
-c-r-o-p -y-e-a-r -i-n -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t -i-s 
-s-o-u-g-h-t-.-'-'-; -a-n-d
            -(-1-0-) -b-y -r-e-p-e-a-l-i-n-g -s-e-c-t-i-o-n -2-0-8 -(-7 
        -U-.-S-.-C-. -1-4-4-6-i-)-.
    -(-b-) -F-a-r-m-e-r-s -H-o-m-e -A-d-m-i-n-i-s-t-r-a-t-i-o-n 
-P-r-o-g-r-a-m-s-.----T-h-e -C-o-n-s-o-l-i-d-a-t-e-d -F-a-r-m -a-n-d 
-R-u-r-a-l -D-e-v-e-l-o-p-m-e-n-t -A-c-t -(-7 -U-.-S-.-C-. -1-9-2-1 
-e-t -s-e-q-.-) -i-s -a-m-e-n-d-e-d -b-y -a-d-d-i-n-g -a-t -t-h-e 
-e-n-d -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w -s-e-c-t-i-o-n-:

-`-`-S-E-C-. -3-7-1-. -C-R-O-P -I-N-S-U-R-A-N-C-E 
              -R-E-Q-U-I-R-E-M-E-N-T-.

    -`-`-(-a-) -I-n -G-e-n-e-r-a-l-.----A-s -a -c-o-n-d-i-t-i-o-n -o-f 
-o-b-t-a-i-n-i-n-g -a-n-y -b-e-n-e-f-i-t -(-i-n-c-l-u-d-i-n-g -a 
-d-i-r-e-c-t -l-o-a-n-, -l-o-a-n -g-u-a-r-a-n-t-e-e-, -o-r 
-p-a-y-m-e-n-t-) -d-e-s-c-r-i-b-e-d -i-n -s-u-b-s-e-c-t-i-o-n -(-b-)-, 
-a -b-o-r-r-o-w-e-r -m-u-s-t -o-b-t-a-i-n -a-t -l-e-a-s-t 
-c-a-t-a-s-t-r-o-p-h-i-c -r-i-s-k -p-r-o-t-e-c-t-i-o-n 
-i-n-s-u-r-a-n-c-e -c-o-v-e-r-a-g-e -u-n-d-e-r -s-e-c-t-i-o-n -5-0-8 
-o-f -t-h-e -F-e-d-e-r-a-l -C-r-o-p -I-n-s-u-r-a-n-c-e -A-c-t -(-7 
-U-.-S-.-C-. -1-5-0-8-) -f-o-r -t-h-e -c-r-o-p -a-n-d -c-r-o-p -y-e-a-r 
-f-o-r -w-h-i-c-h -t-h-e -b-e-n-e-f-i-t -i-s -s-o-u-g-h-t-, -i-f -t-h-e 
-c-o-v-e-r-a-g-e -i-s -o-f-f-e-r-e-d -b-y -t-h-e -S-e-c-r-e-t-a-r-y-.
    -`-`-(-b-) -A-p-p-l-i-c-a-b-l-e -B-e-n-e-f-i-t-s-.---
-S-u-b-s-e-c-t-i-o-n -(-a-) -s-h-a-l-l -a-p-p-l-y -t-o---
            -`-`-(-1-) -a -f-a-r-m -o-w-n-e-r-s-h-i-p -l-o-a-n -(-F-O-) 
        -u-n-d-e-r -s-e-c-t-i-o-n -3-0-3-;
            -`-`-(-2-) -a-n -o-p-e-r-a-t-i-n-g -l-o-a-n -(-O-L-) 
        -u-n-d-e-r -s-e-c-t-i-o-n -3-1-2-; -a-n-d
            -`-`-(-3-) -a-n -e-m-e-r-g-e-n-c-y -l-o-a-n -(-E-M-) 
        -u-n-d-e-r -s-e-c-t-i-o-n -3-2-1-.-'-'-.
    -(-c-) -T-h-e -F-o-o-d-, -A-g-r-i-c-u-l-t-u-r-e-, 
-C-o-n-s-e-r-v-a-t-i-o-n-, -a-n-d -T-r-a-d-e -A-c-t -o-f -1-9-9-0 -i-s 
-a-m-e-n-d-e-d -b-y -s-t-r-i-k-i-n-g -c-h-a-p-t-e-r-s -1-, -2-, -a-n-d 
-3 -o-f -s-u-b-t-i-t-l-e -B -o-f -t-i-t-l-e -X-X-I-I-.
    -(-d-) -S-e-c-t-i-o-n -2-5-1-(-b-)-(-2-)-(-D-) -o-f -t-h-e 
-B-a-l-a-n-c-e-d -B-u-d-g-e-t -a-n-d -E-m-e-r-g-e-n-c-y -D-e-f-i-c-i-t 
-C-o-n-t-r-o-l -A-c-t -o-f -1-9-8-5 -(-2 -U-.-S-.-C-. 
-9-0-1-(-b-)-(-2-)-(-D-)-)-, -i-s -a-m-e-n-d-e-d -e-f-f-e-c-t-i-v-e 
-J-u-l-y -1-, -1-9-9-5-, -b-y -s-t-r-i-k-i-n-g -s-u-b-p-a-r-a-g-r-a-p-h 
-(-i-) -a-n-d -i-n-s-e-r-t-i-n-g -t-h-e -f-o-l-l-o-w-i-n-g -n-e-w 
-s-u-b-p-a-r-a-g-r-a-p-h-:
    -`-`-(-i-) -I-f-, -f-o-r -a-n-y -f-i-s-c-a-l -y-e-a-r-, 
-a-p-p-r-o-p-r-i-a-t-i-o-n-s -f-o-r -d-i-s-c-r-e-t-i-o-n-a-r-y 
-a-c-c-o-u-n-t-s -a-r-e -e-n-a-c-t-e-d -t-h-a-t -t-h-e 
-P-r-e-s-i-d-e-n-t -d-e-s-i-g-n-a-t-e-s -a-s -e-m-e-r-g-e-n-c-y 
-r-e-q-u-i-r-e-m-e-n-t-s -a-n-d -t-h-a-t -C-o-n-g-r-e-s-s -s-o 
-d-e-s-i-g-n-a-t-e-s -i-n -s-t-a-t-u-t-e-, -t-h-e -a-d-j-u-s-t-m-e-n-t 
-s-h-a-l-l -b-e -t-h-e -t-o-t-a-l -o-f -s-u-c-h 
-a-p-p-r-o-p-r-i-a-t-i-o-n-s -i-n -d-i-s-c-r-e-t-i-o-n-a-r-y 
-a-c-c-o-u-n-t-s -d-e-s-i-g-n-a-t-e-d -a-s -e-m-e-r-g-e-n-c-y 
-r-e-q-u-i-r-e-m-e-n-t-s -a-n-d -t-h-e -o-u-t-l-a-y-s -f-l-o-w-i-n-g 
-i-n -a-l-l -y-e-a-r-s -f-r-o-m -s-u-c-h -a-p-p-r-o-p-r-i-a-t-i-o-n-s-: 
-P-r-o-v-i-d-e-d-, -T-h-a-t -t-h-i-s -p-r-o-v-i-s-i-o-n -s-h-a-l-l 
-n-o-t -a-p-p-l-y -t-o -a-p-p-r-o-p-r-i-a-t-i-o-n-s -t-o -c-o-v-e-r 
-a-g-r-i-c-u-l-t-u-r-a-l -c-r-o-p -d-i-s-a-s-t-e-r 
-a-s-s-i-s-t-a-n-c-e-.-'-'-.

-S-E-C-. -6-. -E-F-F-E-C-T-I-V-E -D-A-T-E-.

    -E-x-c-e-p-t -a-s -o-t-h-e-r-w-i-s-e -s-p-e-c-i-f-i-c-a-l-l-y 
-p-r-o-v-i-d-e-d -i-n -s-e-c-t-i-o-n -5-(-c-)-, -t-h-i-s -A-c-t 
-s-h-a-l-l -b-e-c-o-m-e -e-f-f-e-c-t-i-v-e -b-e-g-i-n-n-i-n-g -w-i-t-h 
-t-h-e -c-r-o-p -y-e-a-r -i-m-m-e-d-i-a-t-e-l-y -f-o-l-l-o-w-i-n-g 
-t-h-e -d-a-t-e -o-f -e-n-a-c-t-m-e-n-t-.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Federal Crop 
Insurance Reform Act of 1994''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references.

      TITLE I--CATASTROPHIC RISK AND ADDITIONAL COVERAGE INSURANCE

Sec. 101. Authority to offer insurance.
Sec. 102. Catastrophic risk protection.
Sec. 103. General coverage levels.
Sec. 104. Premiums.
Sec. 105. Eligibility.
Sec. 106. Yield determinations.
Sec. 107. Insurance policies.
Sec. 108. Claims for losses.
Sec. 109. Reinsurance.
Sec. 110. Funding.
Sec. 111. Advisory Committee for Federal Crop Insurance.
Sec. 112. Management of Corporation.

                TITLE II--NONINSURED ASSISTANCE PROGRAM

Sec. 201. Noninsured assistance program.
Sec. 202. Payment and income limitations.

                        TITLE III--MISCELLANEOUS

Sec. 301. Ineligibility for catastrophic risk and noninsured assistance 
                            payments.
Sec. 302. Prevented planting.
Sec. 303. Conforming amendments.
Sec. 304. Effective dates.
Sec. 305. Termination of authority.
    (c) References to Federal Crop Insurance Act.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.).

      TITLE I--CATASTROPHIC RISK AND ADDITIONAL COVERAGE INSURANCE

SEC. 101. AUTHORITY TO OFFER INSURANCE.

    Section 508 (7 U.S.C. 1508) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Authority to Offer Insurance.--
            ``(1) In general.--If sufficient actuarial data are 
        available (as determined by the Corporation), the Corporation 
        may insure, or provide reinsurance for insurers of, producers 
        of agricultural commodities grown in the United States under 1 
        or more plans of insurance determined by the Corporation to be 
        adapted to the agricultural commodity concerned. To qualify for 
        coverage under a plan of insurance, the losses of the insured 
        commodity shall be due to drought, flood, or other natural 
        disaster (as determined by the Secretary).
            ``(2) Period.--Except in the cases of tobacco and potatoes, 
        insurance shall not extend beyond the period during which the 
        insured commodity is in the field. As used in the preceding 
        sentence, in the case of aquacultural species, the term `field' 
        means the environment in which the commodity is produced.
            ``(3) Exclusions.--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 such areas and under such circumstances as 
                it is customary to so reseed; or
                    ``(C) the failure of the producer to follow good 
                farming practices (as determined by the Secretary).'';
            (2) by striking subsections (c), (e), (g), (l), and (n); 
        and
            (3) by redesignating subsections (b), (d), (f), (h), (i), 
        (j), (k), and (m) as subsections (g) through (n), respectively.

SEC. 102. CATASTROPHIC RISK PROTECTION.

    Section 508 (7 U.S.C. 1508) (as amended by section 101) is further 
amended by inserting after subsection (a) the following new subsection:
    ``(b) Catastrophic Risk Protection.--
            ``(1) In general.--The Corporation shall offer a 
        catastrophic risk protection plan to indemnify producers for 
        crop loss due to loss of yield or prevented planting when the 
        producer is unable, because of drought, flood, or other natural 
        disaster (as determined by the Secretary), to plant crops for 
        harvest on the acreage for that crop year.
            ``(2) Amount of coverage.--Catastrophic risk protection 
        shall offer a producer 50 percent loss in yield coverage, on an 
        individual yield or area yield basis, indemnified at 60 percent 
        of the expected market price, or a comparable coverage (as 
        determined by the Corporation).
            ``(3) Payment.--A catastrophic risk payment may reflect a 
        reduction that is proportionate to the lack of out-of-pocket 
        expenses associated with the failure to plant, grow, or harvest 
        the crop, as determined by the Corporation.
            ``(4) Yield and loss basis.--A producer shall have the 
        option of basing the catastrophic coverage of the producer on 
        an individual yield and loss basis or on an area yield and loss 
        basis, if both options are offered by the Corporation.
            ``(5) Sale of catastrophic risk coverage.--
                    ``(A) In general.--Catastrophic risk coverage may 
                be offered by--
                            ``(i) private insurance providers, if 
                        available in an area; and
                            ``(ii) at the option of the Secretary that 
                        is based on considerations of need, local 
                        offices of the United States Department of 
                        Agriculture (referred to in this title as the 
                        `Department').
                    ``(B) Need.--For purposes of considering need under 
                subparagraph (A)(ii), the Secretary may take into 
                account the most efficient and cost-effective use of 
                resources, the availability of personnel, fairness to 
                local producers, the needs and convenience of local 
                producers, and the availability of private insurance 
                carriers.
            ``(6) Administrative fee.--
                    ``(A) In general.--As a condition of catastrophic 
                risk protection, a producer shall pay an administrative 
                fee. The administrative fee shall be $50 per crop per 
                county, but not to exceed $100 per producer per county. 
                The administrative fee shall be paid at the service 
                point, at the local office of the Department, or to the 
                approved insurance provider, at the time of 
                application.
                    ``(B) Fee waivers.--The administrative fee shall be 
                waived--
                            ``(i) for farmers of limited resources (as 
                        defined by the Corporation); or
                            ``(ii) 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 an approved 
                        insurance provider.
                    ``(C) Use of fees collected.--Funds collected as 
                administrative fees shall be retained by the Department 
                or the approved insurance provider for operating and 
                administrative expenses for the delivery of 
                catastrophic risk protection policies.
            ``(7) Participation requirement.--A producer may obtain 
        catastrophic risk coverage for a crop of the producer on land 
        in the county only if the producer obtains such coverage for 
        the crop on all insurable land of the producer in that county.
            ``(8) Eligibility for department programs.--
                    ``(A) In general.--To be eligible for any price 
                support or production adjustment program or any benefit 
                described in section 371 of the Consolidated Farm and 
                Rural Development Act, the producer must obtain at 
                least the catastrophic level of insurance for each crop 
                of economic significance grown on each farm in the 
                county in which the producer has an interest, if 
                insurance is available in the county for the crop.
                    ``(B) Definition of crop of economic 
                significance.--As used in this paragraph, the term 
                `crop of economic significance' means a crop that has 
                contributed, or is expected to contribute, 10 percent 
                or more of the total expected value of all crops grown 
                by the producer.
            ``(9) Limitation due to risk.--The Corporation may limit 
        catastrophic risk coverage in any county or area, or on any 
        farm, on the basis of the insurance risk concerned.
            ``(10) Simplification.--
                    ``(A) Catastrophic risk protection plans.--In 
                developing and carrying out the policies and procedures 
                for a catastrophic risk protection plan under this 
                title, the Corporation shall, to the maximum extent 
                practicable, minimize the paperwork required and the 
                complexity and costs of procedures governing 
                applications for, processing, and servicing of the plan 
                for all parties involved.
                    ``(B) Other plans.--To the extent that the policies 
                and procedures developed under subparagraph (A) may be 
                applied to other plans of insurance offered under this 
                title without jeopardizing the actuarial soundness or 
                integrity of the crop insurance program, the 
                Corporation shall apply the policies and procedures to 
                the other plans of insurance within a reasonable period 
                of time (as determined by the Corporation) after the 
                effective date of this paragraph.''.

SEC. 103. GENERAL COVERAGE LEVELS.

    Section 508 (7 U.S.C. 1508) (as amended by section 102) is further 
amended by inserting after subsection (b) the following new subsection:
    ``(c) General Coverage Levels.--
            ``(1) In general.--The Corporation shall offer plans of 
        insurance that provide levels of coverage that are greater than 
        the level available under catastrophic risk protection under 
        subsection (b). A producer may purchase such a plan only from 
        an approved insurance provider, if the private insurance is 
        available. Nothing in this paragraph restricts the Corporation 
        from offering insurance plans if coverage from private 
        insurance providers is unavailable.
            ``(2) Transfer of insurance files.--If a producer has 
        already applied for catastrophic risk protection at the local 
        office of the Department and elects to purchase additional 
        coverage, the insurance file for the crop of the producer shall 
        be transferred to the approved insurance provider servicing the 
        additional coverage crop policy.
            ``(3) Yield and loss basis.--A producer shall have the 
        option of purchasing additional coverage based on an individual 
        yield and loss basis or on an area yield and loss basis, if 
        both options are offered by the Corporation.
            ``(4) Level of coverage.--The level of coverage shall be 
        dollar denominated and may be purchased at any level not to 
        exceed 85 percent of the individual yield or 95 percent of the 
        area yield (as determined by the Corporation). By the beginning 
        of the 1996 crop year, the Corporation shall provide producers 
        with information on catastrophic risk and additional coverage 
        in terms of dollar coverage (within the allowable limits of 
        coverage provided in this paragraph).
            ``(5) Price level.--The Corporation shall establish a price 
        level for each commodity on which insurance is offered that--
                    ``(A) shall not be less than the projected market 
                price for the commodity (as determined by the 
                Corporation); or
                    ``(B) at the discretion of the Corporation, may be 
                based on the actual market price at the time of harvest 
                (as determined by the Corporation).
            ``(6) Price elections.--
                    ``(A) In general.--Subject to subparagraph (B), 
                insurance coverage shall be made available to the 
                producer on the basis of any price election that equals 
                or is less than the price election established by the 
                Corporation. The coverage shall be quoted in terms of 
                dollars per acre.
                    ``(B) Minimum price elections.--The Corporation may 
                establish minimum price elections below which levels of 
                insurance shall not be offered.
                    ``(C) Wheat varieties.--The Corporation shall, over 
                a period of time as determined practicable by the 
                Corporation, offer producers different price elections 
                for varieties of wheat, in addition to the standard 
                price election, that reflect different market prices, 
                as determined by the Corporation. The Corporation shall 
                offer additional coverage for each variety determined 
                under this subparagraph and charge a premium for each 
                variety that is actuarially sound.
            ``(7) Substitute coverage for fire and hail.--
                    ``(A) In general.--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 or hail, 
                if an equivalent or greater dollar amount of coverage 
                for damage caused by fire or hail is obtained from a 
                private fire or hail insurance provider.
                    ``(B) Credit for substitute coverage.--On written 
                notice of an election under subparagraph (A) to the 
                company issuing the policy providing coverage under 
                this title and submission of evidence of substitute 
                coverage on the commodity insured, the premium of the 
                producer shall be reduced by an amount determined by 
                the Corporation to be actuarially appropriate, taking 
                into account the actuarial value of the remaining 
                coverage provided by the Corporation. The producer 
                shall not be given a reduction for an amount of premium 
                determined to be greater than the actuarial value of 
                the protection against losses caused by fire or hail 
                that is included in the coverage under this title for 
                the crop.
            ``(8) State premium subsidies.--The Corporation may enter 
        into agreements with any State or agency of a State under which 
        the State or agency may pay to the approved insurance provider 
        an additional premium subsidy to further reduce the portion of 
        the premium paid by the producers in the State.
            ``(9) Limitation due to risk.--The Corporation may limit or 
        refuse insurance in any county or area, or on any farm, on the 
        basis of the insurance risk concerned.
            ``(10) Administrative fee.--
                    ``(A) In general.--As a condition of coverage that 
                is in addition to catastrophic risk protection but less 
                than 65 percent of the recorded or appraised average 
                yield and 100 percent of the expected market price, or 
                an equivalent coverage, a producer shall pay an 
                administrative fee. The administrative fee shall be $50 
                per crop per county, but not to exceed $100 per 
                producer per county. The administrative fee shall be 
                paid to the approved insurance provider or the 
                Department, as applicable, at the time of application.
                    ``(B) Fee waivers.--The administrative fee shall be 
                waived--
                            ``(i) for farmers of limited resources (as 
                        defined by the Corporation); or
                            ``(ii) 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 an approved 
                        insurance provider.
                    ``(C) Use of fees collected.--Funds collected as 
                administrative fees shall be retained by the approved 
                insurance provider or the Department, as applicable, 
                for operating and administrative expenses.''.

SEC. 104. PREMIUMS.

    Section 508 (7 U.S.C. 1508) (as amended by section 103) is further 
amended by inserting after subsection (c) the following new subsection:
    ``(d) Premiums.--
            ``(1) Levels.--
                    ``(A) Catastrophic risk protection.--For 
                catastrophic risk protection coverage, the amount of 
                premium shall be sufficient to cover anticipated losses 
                and a reasonable reserve.
                    ``(B) Additional coverage.--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 coverage, 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 of the recorded or appraised average yield and 
                100 percent of the expected market price, or an 
                equivalent coverage.
                    ``(C) High coverage.--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 percentage 
                of the total premium.
            ``(2) Payment of part of premium.--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 under paragraph 
                (1)(A);
                    ``(B) for levels of coverage below 65 percent of 
                the recorded and appraised average yield and 100 
                percent of the expected market price, or an equivalent 
                coverage, but greater than catastrophic risk 
                protection, an amount equal to the sum of the amount of 
                premium established for catastrophic risk protection 
                coverage and the amount for operating and 
                administrative expenses established under paragraph 
                (1)(B); 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 sum of--
                            ``(i) the premium established for--
                                    ``(I) in the case of each of the 
                                1995 and 1996 crop years, 50 percent 
                                loss in yield indemnified at 80 percent 
                                of the expected market price;
                                    ``(II) in the case of the 1997 crop 
                                year, 50 percent loss in yield 
                                indemnified at 77.5 percent of the 
                                expected market price; and
                                    ``(III) in the case of the 1998 and 
                                each subsequent crop year, 50 percent 
                                loss in yield indemnified at 75 percent 
                                of the expected market price; and
                            ``(ii) the amount for operating and 
                        administrative expenses established under 
                        paragraph (1)(C).
            ``(3) Reductions by private providers.--If a private 
        insurance provider determines that the provider may provide 
        insurance more efficiently than the expense reimbursement 
        amount set by the Corporation, the private insurance provider 
        may, with the approval of the Corporation, reduce the premium 
        charged the insured by the amount of the efficiency. A 
        reduction pursuant to the preceding sentence shall be subject 
        to such rules, limitations, and procedures as are established 
        by the Corporation.
            ``(4) Individual and area crop insurance coverage.--
                    ``(A) In general.--The Corporation shall allow an 
                approved insurance provider to offer a producer a plan 
                of insurance that provides a level of coverage that is 
                greater than that provided under catastrophic risk 
                protection at a premium rate determined by the provider 
                if the provider agrees to bear (depending on the type 
                of coverage involved) portions of the underwriting 
                risk, and operating and administrative expenses, that 
                result from the additional level of coverage.
                    ``(B) Combined coverages.--To provide the 
                additional level of coverage to an insured producer 
                under subparagraph (A), a provider may combine--
                            ``(i) individual crop insurance coverage; 
                        and
                            ``(ii) area crop insurance coverage 
                        provided by the Corporation through the 
                        provider to the producer that is based on area 
                        yields in a manner that allows the producer to 
                        qualify for an indemnity if a loss has occurred 
                        in a specified area (as defined by the 
                        Corporation) in which the farm of the producer 
                        is located.
                    ``(C) Indemnity.--If a producer qualifies for an 
                indemnity under an area crop insurance policy described 
                in subparagraph (B)(ii), the Corporation shall provide 
                to--
                            ``(i) the provider, an amount that is the 
                        lesser of--
                                    ``(I) the indemnity under the 
                                individual crop insurance coverage; or
                                    ``(II) the indemnity under the area 
                                crop insurance coverage; and
                            ``(ii) the producer, the remainder of the 
                        indemnity.
                    ``(D) Subsidy.--If a provider combines individual 
                crop insurance coverage and area crop insurance 
                coverage under subparagraph (B), the Corporation shall 
                pay a part of the premium equivalent to--
                            ``(i) for individual crop insurance 
                        coverage, an amount equal to the premium 
                        established for catastrophic risk protection 
                        coverage; and
                            ``(ii) for area crop insurance coverage, an 
                        amount equal to the premium established for 50 
                        percent loss in yield indemnified at 15 percent 
                        of the expected market price on an individual 
                        basis, plus the amount of operating and 
                        administrative expenses for the area coverage 
                        (as established under paragraph (1)(C)).
                    ``(E) Reinsurance and administration.--If a 
                provider combines individual crop insurance coverage 
                and area crop insurance coverage under subparagraph 
                (B), the Corporation shall--
                            ``(i) not provide reinsurance, except that 
                        the Corporation shall provide reinsurance on--
                                    ``(I) the area crop insurance 
                                coverage at the request of the 
                                provider; and
                                    ``(II) the catastrophic risk 
                                protection provided under the 
                                individual insurance coverage; and
                            ``(ii) reimburse the provider for 
                        administrative expenses associated with the 
                        area crop insurance coverage, except that the 
                        amount of the reimbursement shall be no less 
                        than reimbursement provided by the Corporation 
                        for comparable area coverage.''.

SEC. 105. ELIGIBILITY.

    (a) In General.--Section 508 (7 U.S.C. 1508) (as amended by section 
104) is further amended by inserting after subsection (d) the following 
new subsection:
    ``(e) Eligibility.--
            ``(1) In general.--To participate in catastrophic risk 
        protection coverage under this section, a producer shall submit 
        an application at the local office of the Department or to an 
        approved insurance provider.
            ``(2) Sales closing date.--For coverage under this title, 
        each producer shall purchase crop insurance on or before the 
        sales closing date for the crop by providing the required 
        information and executing the required documents. Subject to 
        the goal of ensuring actuarial soundness for the crop insurance 
        program, the sales closing date shall be established by the 
        Corporation to maximize convenience to producers in obtaining 
        benefits under price and production adjustment programs of the 
        Department. Beginning with the 1995 crop year, the Corporation 
        shall establish, for an insurance policy for each insurable 
        crop that is planted in the spring, a sales closing date that 
        is 30 days earlier than the corresponding sales closing date 
        that was established for the 1994 crop year.
            ``(3) Records.--For coverage under this title, each 
        producer shall provide records, acceptable to the Corporation, 
        of previous acreage and production or accept a yield determined 
        by the Corporation.
            ``(4) Reporting.--For coverage under this title, each 
        producer shall report acreage planted and prevented from 
        planting by the designated acreage reporting date for the crop 
        and location as established by the Corporation.''.
    (b) Producer Eligibility.--Section 520 (7 U.S.C. 1520) is amended 
to read as follows:

``SEC. 520. PRODUCER ELIGIBILITY.

    ``Except as otherwise provided in this title, a producer shall not 
be denied insurance under this title if--
            ``(1) for purposes of catastrophic risk protection 
        coverage, the producer is a `person' (as defined by the 
        Secretary); and
            ``(2) for purposes of any other plan of insurance, the 
        producer is 18 years of age and has a bona fide insurable 
        interest in a crop as an owner-operator, landlord, tenant, or 
        sharecropper.''.

SEC. 106. YIELD DETERMINATIONS.

    Section 508 (7 U.S.C. 1508) (as amended by section 105(a)) is 
further amended by inserting after subsection (e) the following new 
subsection:
    ``(f) Yield Determinations.--
            ``(1) In general.--Subject to paragraph (2), the 
        Corporation shall implement crop insurance underwriting rules 
        that ensure that yield coverage is provided to eligible 
        producers participating in the Federal crop insurance program.
            ``(2) Yield coverage plans.--
                    ``(A) Actual production history.--Subject to 
                subparagraph (B), the yield for a crop shall be based 
                on the actual production history for the crop, if the 
                crop was produced on the farm without penalty during 
                each of the 4 crop years immediately preceding the crop 
                year for which actual production history is being 
                established, building up to a production data base for 
                each of the 10 consecutive crop years preceding the 
                crop year for which actual production history is being 
                established.
                    ``(B) Assigned yield.--If the producer does not 
                provide satisfactory evidence of the yield of a 
                commodity under subparagraph (A), the producer shall be 
                assigned a yield that is not less than 65 percent of 
                the transitional yield of the producer (adjusted to 
                reflect actual production reflected in the records 
                acceptable to the Corporation for continuous years), as 
                specified in regulations issued by the Corporation 
                based on production history requirements.
                    ``(C) Area yield.--The Corporation may offer a crop 
                insurance plan based on an area yield that allows an 
                insured producer to qualify for an indemnity if a loss 
                has occurred in an area (as specified by the 
                Corporation) in which the farm of the producer is 
                located. Under an area yield plan, an insured producer 
                shall be allowed to select the level of area production 
                at which an indemnity will be paid consistent with such 
                terms and conditions as are established by the 
                Corporation.
                    ``(D) Commodity-by-commodity basis.--A producer may 
                choose between individual yield or area yield coverage 
                or combined coverage (as provided in subsection 
                (d)(4)), if available, on a commodity-by-commodity 
                basis.
            ``(3) Notice.--The Corporation shall ensure that producers 
        are given adequate notice of the applicable yield coverage 
        provisions of this section in advance of the crop insurance 
        application period for the crops to which the provisions first 
        will apply.
            ``(4) Transitional yields for producers of feed or 
        forage.--
                    ``(A) In general.--If a producer does not provide 
                satisfactory evidence of the yield under paragraph 
                (2)(A), the producer shall be assigned a yield that is 
                at least 80 percent of the transitional yield 
                established by the Corporation (adjusted to reflect the 
                actual production history of the producer) if the 
                Secretary determines that--
                            ``(i) the producer grows feed or forage 
                        primarily for on-farm use in a livestock, 
                        dairy, or poultry operation; and
                            ``(ii) over 50 percent of the net farm 
                        income of the producer is derived from the 
                        livestock, dairy, or poultry operation.
                    ``(B) Yield calculation.--The Corporation shall--
                            ``(i) for the first year of participation 
                        of a producer, provide the assigned yield under 
                        this paragraph to the producer of feed or 
                        forage; and
                            ``(ii) for the second year of participation 
                        of the producer, apply the actual production 
                        history or assigned yield requirement, as 
                        provided in this subsection.
                    ``(C) Termination of authority.--The authority 
                provided by this paragraph shall terminate on the date 
                that is 2 years after the effective date of this 
                paragraph.''.

SEC. 107. INSURANCE POLICIES.

    Subsection (g) of section 508 (7 U.S.C. 1508) (as redesignated by 
section 101(3)) is amended--
            (1) in paragraph (1), by striking ``(a)'' and inserting 
        ``(c)'';
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) Preparation of policies.--A policy or other material 
        submitted to the Corporation under this subsection may be 
        prepared without regard to the limitations specified in this 
        title, including the requirements concerning the levels of 
        coverage and rates and the requirement that a price level for 
        each commodity insured shall equal the projected market price 
        for the commodity as established by the Corporation. The policy 
        may be subsidized only at an amount equivalent to coverage 
        authorized under this title.'';
            (3) in paragraph (3)--
                    (A) in the first sentence, by striking ``taking 
                into consideration the risks covered by the policy or 
                other material''; and
                    (B) in the second sentence, by inserting ``with a 
                private insurance provider'' after ``reinsurance 
                agreement''; and
            (4) by striking paragraph (4) and inserting the following 
        new paragraphs:
            ``(4) Required publication.--Any policy, provision of a 
        policy, or rate approved under this subsection shall be 
        published as a notice in the Federal Register and made 
        available to each person who contracts with or is reinsured by 
        the Corporation under the same terms and conditions as are 
        applicable between the Corporation and the submitting person.
            ``(5) Pilot cost of production risk protection plan.--
                    ``(A) In general.--The Corporation shall offer, to 
                the extent practicable, a cost of production risk 
                protection plan of insurance that would indemnify 
                producers (including new producers) for insurable 
                losses as provided in this paragraph.
                    ``(B) Pilot basis.--The cost of production risk 
                protection plan shall--
                            ``(i) be established as a pilot project for 
                        each of the 1996 and 1997 crop years; and
                            ``(ii) be carried out in a number of 
                        counties that is determined by the Corporation 
                        to be adequate to provide a comprehensive 
                        evaluation of the feasibility, effectiveness, 
                        and demand among producers for the plan.
                    ``(C) Insurable loss.--An insurable loss shall be 
                incurred by a producer if the gross income of the 
                producer (as determined by the Corporation) is less 
                than an amount determined by the Corporation, as a 
                result of a reduction in yield or price resulting from 
                an insured cause.
                    ``(D) Definition of new producer.--As used in this 
                paragraph, the term `new producer' means a person that 
                has not been actively engaged in farming for a share of 
                the production of the insured crop for more than 2 crop 
                years, as determined by the Secretary.
            ``(6) Additional prevented planting policy coverage.--
                    ``(A) In general.--Beginning with the 1995 crop 
                year, the Corporation shall offer to producers 
                additional prevented planting coverage that insures 
                producers against losses in accordance with this 
                paragraph.
                    ``(B) Approved insurance providers.--Additional 
                prevented planting coverage shall be offered by the 
                Corporation through approved insurance providers.
                    ``(C) Timing of loss.--A crop loss shall be covered 
                by the additional prevented planting coverage if--
                            ``(i) crop insurance policies were obtained 
                        for--
                                    ``(I) the crop year the loss was 
                                experienced; and
                                    ``(II) the crop year immediately 
                                preceding the year of the prevented 
                                planting loss; and
                            ``(ii) the cause of the loss occurred--
                                    ``(I) after the sales closing date 
                                for the crop in the crop year 
                                immediately preceding the loss; and
                                    ``(II) before the sales closing 
                                date for the crop in the year in which 
                                the loss is experienced.
            ``(7) Pilot transitional yield program for new producers.--
                    ``(A) Increased transitional yield.--The 
                Corporation shall offer, to the extent practicable, a 
                transitional yield program for new producers to provide 
                110 percent of the transitional yield established by 
                the Corporation.
                    ``(B) Pilot basis.--The transitional yield program 
                shall--
                            ``(i) be established as a pilot project for 
                        each of the 1995 and 1996 crop years; and
                            ``(ii) be carried out in 30 counties that 
                        are determined by the Corporation to be 
                        adequate to provide a comprehensive evaluation 
                        of the feasibility, effectiveness, and demand 
                        among new producers for the plan.
                    ``(C) Definition of new producer.--As used in this 
                paragraph, the term `new producer' means a person that 
                has not been actively engaged in farming for a share of 
                the production of the insured crop for more than 2 crop 
                years, as determined by the Secretary.''.

SEC. 108. CLAIMS FOR LOSSES.

    Subsection (i) of section 508 (7 U.S.C. 1508) (as redesignated by 
section 101(3)) is amended to read as follows:
    ``(i) Claims for Losses.--
            ``(1) In general.--The Corporation may provide for 
        adjustment and payment of claims for losses as provided under 
        subsection (a) under rules prescribed by the Corporation. The 
        rules prescribed by the Corporation shall establish standards 
        to ensure that all claims for losses are adjusted, to the 
        extent practicable, in a uniform and timely manner.
            ``(2) Denial of claims.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                a claim for indemnity is denied by the Corporation or 
                by the private insurance provider, an action on the 
                claim shall only be brought against the Corporation or 
                Secretary or the insurance provider in the United 
                States District Court for the district in which the 
                insured farm is located.
                    ``(B) Statute of limitations.--A suit on the claim 
                may be brought not later than 1 year after the date on 
                which written notice of denial of the claim is provided 
                to the claimant.
            ``(3) Indemnification.--The Corporation shall provide 
        insurance companies, agents, and brokers with indemnification, 
        including costs and reasonable attorney fees, from the 
        Corporation for errors or omissions on the part of the 
        Corporation.''.

SEC. 109. REINSURANCE.

    Section 508 (7 U.S.C. 1508) is amended--
            (1) by striking subsection (j) (as redesignated by section 
        101(3)) and inserting the following new subsection:
    ``(j) Reinsurance.--Notwithstanding any other provision of this 
title, the Corporation shall, to the maximum extent practicable, 
provide reinsurance, on such terms and conditions as the Corporation 
determines to be consistent with subsections (b) and (c) and sound 
reinsurance principles, to insurers (as defined by the Corporation) 
that insure producers of any agricultural commodity under 1 or more 
plans acceptable to the Corporation. Each reinsurance agreement of the 
Corporation with a reinsured company shall require the reinsured 
company to bear a sufficient share of any potential loss under the 
agreement so as to ensure that the reinsured company will sell and 
service policies of insurance in a sound and prudent manner, taking 
into consideration the availability of private reinsurance.''; and
            (2) in subsection (k) (as so redesignated), by striking 
        ``provide'' and inserting ``offer plans of''.

SEC. 110. FUNDING.

    Section 516 (7 U.S.C. 1516) is amended to read as follows:

``SEC. 516. FUNDING.

    ``(a) Authorization of Appropriations.--
            ``(1) Expenses of corporation.--There are authorized to be 
        appropriated such sums as are necessary to cover the salaries 
        and expenses of the Corporation and the administrative and 
        operating expenses of the Corporation for the sales commissions 
        of agents.
            ``(2) Expenses of providers.--There are authorized to be 
        appropriated such sums as are necessary to cover the 
        administrative and operating expenses of an approved insurance 
        provider for the delivery of policies with coverage that is 
        greater than catastrophic risk protection.
    ``(b) Payment of Expenses.--
            ``(1) Administrative and operating expenses.--Beginning 
        with the 1996 crop year, the Corporation is authorized to pay, 
        from the insurance fund established under subsection (c), the 
        administrative and operating expenses of an approved insurance 
        provider, other than expenses covered under subsection (a)(1).
            ``(2) Other expenses.--The Corporation is authorized to pay 
        from the insurance fund established under subsection (c)--
                    ``(A) all other expenses of the Corporation (other 
                than expenses covered in subsection (a)(1)), including 
                all premium subsidies and indemnities;
                    ``(B) for the 1995 crop year, all administrative 
                and expense reimbursements due under a reinsurance 
                agreement with an approved insurance provider; and
                    ``(C) to the extent necessary, expenses incurred by 
                the Corporation to carry out research and development.
    ``(c) Insurance Fund.--
            ``(1) In general.--There is established an insurance fund 
        for the deposit of premium income, income from reinsurance 
        operations, and amounts made available under subsection (a).
            ``(2) Source of funding.--There are appropriated, without 
        fiscal year limitation, such sums as may be necessary to carry 
        out subsection (b) through the insurance fund.''.

SEC. 111. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

    The Act is amended by inserting after section 514 (7 U.S.C. 1514) 
the following new section:

``SEC. 515. ADVISORY COMMITTEE FOR FEDERAL CROP INSURANCE.

    ``(a) Establishment.--The Secretary may establish within the 
Department a committee to be known as the `Advisory Committee for 
Federal Crop Insurance' (referred to in this section as the `Advisory 
Committee'), which shall remain in existence until September 30, 1998.
    ``(b) Membership.--The Advisory Committee shall be composed of--
            ``(1) the Manager of the Corporation;
            ``(2) the Secretary or a designee; and
            ``(3) not fewer than 10 representatives of organizations or 
        agencies involved with the Federal crop insurance program, 
        which may include 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 not more than 2 years 
        from nominations made by the participating organizations and 
        agencies referred to in subsection (b). 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 of the Corporation).
    ``(e) Reports.--Not later than June 30 of each year, the Advisory 
Committee shall prepare, and submit to the Secretary, a report 
specifying the conclusions of the Advisory Committee on--
            ``(1) the progress toward implementation of this title;
            ``(2) the actuarial soundness of the Federal crop insurance 
        program; and
            ``(3) the rate of participation in the catastrophic and the 
        additional coverage programs under this title.''.

SEC. 112. MANAGEMENT OF CORPORATION.

    (a) In General.--The second sentence of section 505(a) (7 U.S.C. 
1505(a)) is amended--
            (1) by striking ``program, the Under Secretary'' and 
        inserting ``program, 1 additional Under Secretary''; and
            (2) by striking ``responsible for the farm credit programs 
        of the Department of Agriculture'' and inserting ``, as 
        designated by the Secretary of Agriculture (referred to in this 
        title as the `Secretary')''.
    (b) General Powers.--Section 506 (7 U.S.C. 1506) is amended--
            (1) by redesignating subsections (j) through (n) as 
        subsections (k) through (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 claim by or 
against the Corporation or a fiscal officer of the Corporation.'';
            (3) in subsection (l) (as so redesignated)--
                    (A) in the first sentence, by inserting ``, and 
                issue regulations,'' after ``agreements''; and
                    (B) in the second sentence, by striking ``contracts 
                or agreements'' each place it appears and inserting 
                ``contracts, agreements, or regulations'';
            (4) in subsection (n)(1) (as so redesignated), by striking 
        subparagraph (B) and inserting the following new subparagraph:
                    ``(B) disqualify the person from purchasing 
                catastrophic risk protection or receiving noninsured 
                assistance for a period of not to exceed 2 years, or 
                from receiving any other benefit under this title for a 
                period of not to exceed 10 years.'';
            (5) in subsection (o) (as so redesignated)--
                    (A) by redesignating paragraphs (1) through (4) as 
                subparagraphs (A) through (D) and aligning the margins 
                of each subparagraph with the margins of subparagraph 
                (A) of subsection (n)(1) (as redesignated by paragraph 
                (1));
                    (B) by striking ``(o) Actuarial Soundness.--The 
                Corporation'' and inserting the following:
    ``(o) Actuarial Soundness.--
            ``(1) Projected loss ratio as of october 1, 1995.--The 
        Corporation'';
                    (C) in subparagraph (A) (as redesignated by 
                subparagraph (A)), by striking ``from obtaining 
                adequate Federal crop insurance, as determined by the 
                Corporation'' and inserting ``(as defined by the 
                Secretary) from obtaining Federal crop insurance'';
                    (D) in subparagraph (C) (as so redesignated)--
                            (i) by inserting ``, agents, and loss 
                        adjusters'' after ``participating producers''; 
                        and
                            (ii) by inserting ``, agents, and loss 
                        adjusters'' after ``identify insured 
                        producers''; and
                    (E) by adding at the end the following new 
                paragraphs:
            ``(2) Projected loss ratio as of october 1, 1998.--The 
        Corporation shall take such actions, including the 
        establishment of adequate premiums, as are necessary to improve 
        the actuarial soundness of Federal multiperil crop insurance 
        made available under this title to achieve, on and after 
        October 1, 1998, an overall projected loss ratio of not greater 
        than 1.0.
            ``(3) Nonstandard classification system.--To the extent 
        that the Corporation uses the nonstandard classification 
        system, the Corporation shall apply the system to all insured 
        producers in a fair and consistent manner.''; and
            (6) by adding at the end the following new subsections:
    ``(p) Loss Ratio Defined.--As used in this Act, the term `loss 
ratio' means the ratio of all sums paid by the Corporation as 
indemnities under any eligible crop insurance policy to that portion of 
the premium designated for anticipated losses and a reasonable reserve, 
other than that portion of the premium designated for operating and 
administrative expenses.
    ``(q) Regulations.--The Secretary and the Corporation are each 
authorized to issue such regulations as are necessary to carry out this 
title.''.
    (c) Personnel.--Section 507 (7 U.S.C. 1507) is amended--
            (1) in subsection (a), by striking ``, and county crop 
        insurance committeemen'';
            (2) in subsection (c), by striking ``, in which case the 
        agent or broker'' and all that follows through ``the agent or 
        broker has caused the error or omission''; and
            (3) in subsection (d), by striking ``of this Act,'' and all 
        that follows through ``agency''.
    (d) Information Collection on Crop Insurance.--Subsection (n) of 
section 508 (7 U.S.C. 1508) (as redesignated by section 101(3)) is 
amended to read as follows:
    ``(n) Information Collection on Crop Insurance.--The Secretary 
shall make available to producers through local offices of the 
Department--
            ``(1) current and complete information on all aspects of 
        Federal crop insurance; and
            ``(2) a listing of insurance agents.''.
    (e) Crop Insurance Yield Coverage.--Section 508A (7 U.S.C. 1508a) 
is repealed.
    (f) Preemption.--Section 511 (7 U.S.C. 1511) is amended by 
inserting after ``The Corporation, including'' the following: ``the 
contracts of insurance of the Corporation and premiums on the 
contracts, whether insured directly or reinsured by the Corporation,''.
    (g) False Statements.--Section 1014 of title 18, United States 
Code, is amended by inserting ``or a company the Corporation 
reinsures'' after ``Federal Crop Insurance Corporation''.

                TITLE II--NONINSURED ASSISTANCE PROGRAM

SEC. 201. NONINSURED ASSISTANCE PROGRAM.

    The Act (7 U.S.C. 1501 et seq.) is amended by adding at the end the 
following new section:

``SEC. 521. NONINSURED ASSISTANCE PROGRAM.

    ``(a) Eligibility.--
            ``(1) In general.--The Corporation shall establish a 
        noninsured assistance program to provide coverage equivalent to 
        the catastrophic risk protection insurance described in section 
        508(b) for crops for which catastrophic risk protection 
        insurance is not available. Crops covered shall include all 
        commercial crops and commodities for which catastrophic risk 
        protection coverage is not available and that are produced for 
        food, fiber, or an industrial crop 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 such areas and under such circumstances as 
                it is customary to so reseed; or
                    ``(C) the failure of the producer to follow good 
                farming practices (as determined by the Secretary).
            ``(2) Applications.--To be eligible for assistance under 
        this section, a producer shall make a timely application, as 
        required by the Corporation, for noninsured assistance at the 
        local office of the Department.
            ``(3) Records.--A producer shall annually provide records, 
        as required by the Corporation, of previous crop acreage and 
        yields, or the producer shall accept a yield under subsection 
        (c)(2)(B) determined by the Corporation.
            ``(4) Acreage reports.--A producer shall provide reports on 
        acreage planted or prevented from being planted, as required by 
        the Corporation, by the designated acreage reporting date for 
        the crop and location as established by the Corporation.
            ``(5) Area yield losses.--
                    ``(A) Area average yield.--A producer of a 
                noninsurable crop shall not be eligible for noninsured 
                assistance unless the area (as determined by the 
                Corporation) average yield, or an equivalent measure if 
                yield data are not available, for the crop is less than 
                65 percent of the expected area yield established by 
                the Corporation.
                    ``(B) Prevented planting payments.--Subject to 
                subparagraph (A), the Corporation shall make a 
                prevented planting noninsured assistance payment to a 
                producer 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).
                    ``(C) Reduced yield payments.--Subject to 
                subparagraph (A), 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 
                interest of the producer for the crop, the Corporation 
                shall make a reduced yield noninsured assistance 
                payment.
    ``(b) Payment.--The Corporation shall make available to a producer 
eligible for noninsured assistance under this section a payment 
computed by multiplying--
            ``(1) the quantity that is less than 50 percent of the 
        established yield for the crop; by
            ``(2) 60 percent of the average market price for the crop 
        (or any comparable coverage determined by the Corporation); by
            ``(3) a payment rate for the type of crop (as determined by 
        the Corporation) that--
                    ``(A) in the case of a crop that is produced with a 
                significant and variable harvesting expense, a payment 
                rate that reflects the decreasing cost incurred in the 
                production cycle for the crop that is--
                            ``(i) harvested;
                            ``(ii) planted but not harvested; and
                            ``(iii) prevented from being planted 
                        because of drought, flood, or other natural 
                        disaster (as determined by the Secretary); and
                    ``(B) in the case of a crop that is not produced 
                with a significant and variable harvesting expense, a 
                payment rate determined by the Corporation.
    ``(c) Yields.--
            ``(1) In general.--The Corporation shall establish 
        noninsured assistance program farm yields for crops for the 
        purposes of this section.
            ``(2) Actual production history.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                yield for a crop shall be based on the actual 
                production history for the crop, if the crop was 
                produced on the farm without penalty during each of the 
                4 crop years immediately preceding the crop year for 
                which actual production history is being established, 
                building up to a production data base of the 10 crop 
                years immediately preceding the crop year for which 
                production history is being established.
                    ``(B) Assigned yield.--
                            ``(i) In general.--If the producer does not 
                        provide sufficient evidence of the yield (as 
                        required by the Corporation) of a commodity 
                        under subparagraph (A), the producer shall be 
                        assigned a yield that is not less than 65 
                        percent of the transitional yield of the 
                        producer (adjusted to reflect actual production 
                        reflected in the records acceptable to the 
                        Corporation for continuous years), as specified 
                        in regulations issued by the Corporation based 
                        on production history requirements.
                            ``(ii) Limitation.--A producer who receives 
                        an assigned yield for the current year of a 
                        natural disaster because required production 
                        records were not submitted to the local office 
                        of the Department shall not be eligible for an 
                        assigned yield for the year of the next natural 
                        disaster unless the required production records 
                        of the previous 1 or more years (as applicable) 
                        are provided to the local office.
                    ``(C) Yield variations due to different farming 
                practices.--The Corporation shall make noninsured 
                payments that accurately reflect significant yield 
                variations due to different farming practices, such as 
                between irrigated and nonirrigated acreage.
    ``(d) Increased Crop Plantings.--
            ``(1) In general.--If the acreage of a crop in a county has 
        increased by more than 100 percent since the 1987 crop year, to 
        become eligible for a noninsured assistance payment, a producer 
        must provide detailed documentation of production costs, acres 
        planted, and yield, as required by the Corporation. Except as 
        provided in paragraph (2), a producer who produces a crop on a 
        farm located in a county described in the preceding sentence 
        may not obtain an assigned yield.
            ``(2) Exception.--A crop or a producer shall not be subject 
        to this subsection if--
                    ``(A) the planted acreage of the producer for the 
                crop has been inspected by a third party acceptable to 
                the Secretary; or
                    ``(B)(i) the County Executive Director, the 
                District Director, and the State Executive Director 
                recommend an exemption from the requirement to the 
                Deputy Administrator for State and County Operations of 
                the Agricultural Stabilization and Conservation 
                Service; and
                    ``(ii) the Deputy Administrator approves the 
                recommendation.
    ``(e) Contract Payments.--A producer who has received a guaranteed 
payment for production, as opposed to delivery, of a crop pursuant to a 
contract shall have the production of the producer adjusted upward by 
the amount of the production equal to the amount of the contract 
payment received.
    ``(f) Payment of Losses.--Payments for noninsured assistance losses 
under this section shall be made from the insurance fund established 
under section 516(b). The losses shall not be included in calculating 
the premiums charged to producers for insurance.''.

SEC. 202. PAYMENT AND INCOME LIMITATIONS.

    Section 521 (as added by section 201) is further amended by adding 
at the end the following new subsection:
    ``(g) Payment and Income Limitations.--
            ``(1) Definitions.--As used in this subsection:
                    ``(A) Person.--The term `person' has the meaning 
                provided the term in regulations issued by the 
                Secretary. The regulations shall conform, to the extent 
                practicable, to the regulations defining the term 
                `person' issued under section 1001 of the Food Security 
                Act of 1985 (7 U.S.C. 1308).
                    ``(B) Qualifying gross revenues.--The term 
                `qualifying gross revenues' means--
                            ``(i) if a majority of the gross revenue of 
                        the person is received from farming, ranching, 
                        and forestry operations, the gross revenue from 
                        the farming, ranching, and forestry operations 
                        of the person; and
                            ``(ii) if less than a majority of the gross 
                        revenue of the person is received from farming, 
                        ranching, and forestry operations, the gross 
                        revenue of the person from all sources.
            ``(2) Payment limitation.--The total amount of payments 
        that a person shall be entitled to receive annually under this 
        title may not exceed $100,000.
            ``(3) No double benefits.--No person may receive a 
        noninsured assistance payment under this title and emergency 
        livestock feed assistance under section 606 of the Agricultural 
        Act of 1949 (7 U.S.C. 1471d) for the same livestock feed or 
        forage loss.
            ``(4) Income limitation.--A person who has qualifying gross 
        revenues in excess of the amount specified in section 2266(a) 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 1421 note) (as in effect on November 28, 1990) during 
        the taxable year (as determined by the Secretary) shall not be 
        eligible to receive any noninsured assistance payment under 
        this section.
            ``(5) Regulations.--The Secretary shall issue regulations 
        prescribing such rules as the Secretary determines necessary to 
        ensure a fair and equitable application of section 1001 of the 
        Food Security Act of 1985 (7 U.S.C. 1308), the general payment 
        limitation regulations of the Secretary, and the limitations 
        established under this subsection.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED ASSISTANCE 
              PAYMENTS.

    The Act (7 U.S.C. 1501 et seq.) (as amended by section 201) is 
further amended by adding at the end the following new section:

``SEC. 522. INELIGIBILITY FOR CATASTROPHIC RISK AND NONINSURED 
              ASSISTANCE PAYMENTS.

    ``If the Secretary determines that a person has knowingly adopted a 
material scheme or device to obtain catastrophic risk, additional 
coverage, or noninsured assistance benefits under this Act to which the 
person is not entitled, has evaded this Act, or has acted with the 
purposes of evading this Act, the person shall be ineligible to receive 
all benefits applicable to the crop year for which the scheme or device 
was adopted. The authority provided by this section shall be in 
addition to, and shall not supplant, the authority provided by section 
506(m).''.

SEC. 302. PREVENTED PLANTING.

    (a) In General.--Effective for the 1994 crop year, a producer 
described in subsection (b) shall receive compensation under the 
prevented planting coverage policy provision described in subsection 
(b)(1) by--
            (1) obtaining from the Secretary of Agriculture the 
        applicable amount that is payable under the conservation use 
        program described in subsection (b)(4); and
            (2) obtaining from the Federal Crop Insurance Corporation 
        the amount that is equal to the difference between--
                    (A) the amount that is payable under the 
                conservation use program; and
                    (B) the amount that is payable under the prevented 
                planting coverage policy.
    (b) Eligible Producers.--Subsection (a) shall apply to a producer 
who--
            (1) purchased a prevented planting policy for the 1994 crop 
        year from the Federal Crop Insurance Corporation prior to the 
        spring sales closing date for the 1994 crop year;
            (2) is unable to plant a crop due to major, widespread 
        flooding in the Midwest, or excessive ground moisture, that 
        occurred prior to the spring sales closing date for the 1994 
        crop year;
            (3) had a reasonable expectation of planting a crop on the 
        prevented planting acreage for the 1994 crop year; and
            (4) participates in a conservation use program established 
        for the 1994 crop of wheat, feed grains, upland cotton, or rice 
        established under section 107B(c)(1)(E), 105B(c)(1)(E), 
        103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the 
        Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E), 
        1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
    (c) Oilseed Prevented Planting Payments.--
            (1) In general.--Effective for the 1994 crop year, a 
        producer of a crop of oilseeds (as defined in section 205(a) of 
        the Agricultural Act of 1949 (7 U.S.C. 1446f(a)) shall receive 
        a prevented planting payment for the crop if the requirements 
        of paragraphs (1), (2), and (3) of subsection (b) are 
        satisfied.
            (2) Source of payment.--The total amount of payments 
        required under this subsection shall be made by the Federal 
        Crop Insurance Corporation.
    (d) Payment.--A payment under this section may not be made before 
October 1, 1994.

SEC. 303. CONFORMING AMENDMENTS.

    (a) Price Support Programs.--
            (1) In general.--Title IV of the Agricultural Act of 1949 
        (7 U.S.C. 1421 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 427. CROP INSURANCE REQUIREMENT.

    ``As a condition of receiving any benefit (including payments) 
under title I or II for each of the 1995 and subsequent crops of 
tobacco, rice, extra long staple cotton, upland cotton, feed grains, 
wheat, peanuts, oilseeds, and sugar and for each of the 1995 and 
subsequent calendar years with respect to milk, a producer 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 Corporation.''.
            (2) Rice.--Section 101B(c) of such Act (7 U.S.C. 1441-2(c)) 
        is amended--
                    (A) in paragraph (1), by striking subparagraph (F); 
                and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance 
        with section 427.''.
            (3) Upland cotton.--Section 103B(c) of such Act (7 U.S.C. 
        1444-2(c)) is amended--
                    (A) in paragraph (1), by striking subparagraph (F); 
                and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance 
        with section 427.''.
            (4) Feed grains.--Section 105B(c) of such Act (7 U.S.C. 
        1444f(c)) is amended--
                    (A) in paragraph (1), by striking subparagraph (G); 
                and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance 
        with section 427.''.
            (5) Wheat.--Section 107B(c) of such Act (7 U.S.C. 1445b-
        3a(c)) is amended--
                    (A) in paragraph (1), by striking subparagraph (G); 
                and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Crop insurance requirement.--A producer shall obtain 
        catastrophic risk protection insurance coverage in accordance 
        with section 427.''.
            (6) Disaster payments.--Section 208 of such Act (7 U.S.C. 
        1446i) is repealed.
    (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 Corporation.
    ``(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) Disaster Assistance.--Subtitle B of title XXII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) 
is amended by striking chapter 3.
    (d) Technical Amendments.--
            (1) The first sentence of section 506(d) (7 U.S.C. 1506(d)) 
        is amended by striking ``508(f)'' and inserting ``508(i)''.
            (2) The last sentence of section 507(c) (7 U.S.C. 1507(c)) 
        is amended by striking ``508(b)'' and inserting ``508(g)''.
            (3) Section 518 (7 U.S.C. 1518) is amended by striking 
        ``(k)'' and inserting ``(m)''.

SEC. 304. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act shall become effective beginning 
with--
            (1) if this Act is enacted before August 1, 1994, the 1995 
        crop year for the applicable agricultural commodity; or
            (2) if this Act is enacted on or after August 1, 1994, the 
        1996 crop year for the applicable agricultural commodity.
    (b) Exceptions.--Sections 1, 101(1), 112(e), 112(f), and 302, the 
amendments made by such sections, and this section shall become 
effective on the date of enactment of this Act.

SEC. 305. TERMINATION OF AUTHORITY.

    The authority provided by this Act and the amendments made by this 
Act shall terminate on September 30, 2000.
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