[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2517 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2517

 To amend the Federal Crop Insurance Act to establish a pilot program 
   commencing in crop year 2000 for a period of two years in certain 
    States to provide improved crop insurance options for producers.


September 24, 1998_____________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 24, 1998

   Mr. Grams introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Crop Insurance Act to establish a pilot program 
   commencing in crop year 2000 for a period of two years in certain 
    States to provide improved crop insurance options for producers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PILOT PROGRAM TO PROVIDE IMPROVED CROP INSURANCE OPTIONS FOR 
              PRODUCERS.

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

``SEC. 522. PILOT PROGRAM TO PROVIDE IMPROVED CROP INSURANCE OPTIONS 
              FOR PRODUCERS.

    ``(a) Definitions.--In this section:
            ``(1) Commodity.--The term `commodity' means winter wheat, 
        spring wheat, corn, barley, grain sorghum, and soybeans.
            ``(2) Eligible state.--The term `eligible State' means each 
        of the States of Illinois, Indiana, Iowa, Kansas, Minnesota, 
        Nebraska, North Dakota, and South Dakota.
    ``(b) Pilot Program.--The Corporation shall conduct a pilot program 
to be enacted no later than the year 2000 for a period of two years, 
under which the Corporation shall offer producers of a commodity in an 
eligible State the option to elect plans of insurance under this Act 
under which--
            ``(1) the Corporation will provide a premium subsidy of 29 
        percent for each level of coverage involving a 100 percent 
        price election;
            ``(2) insurance is provided on the basis of 1 unit for a 
        producer, regardless of State or county boundaries to achieve 
        maximum enterprise unit discounts; provided such as is included 
        within one of the listed states;
            ``(3) the price discovery is based upon the appropriate 
        futures contract. The insured may either elect a market price 
        as determined by the Risk Management Agency or a futures price 
        based on the appropriate month and appropriate Board of Trade 
        (to be specified in report language);
            ``(4) up to 85% coverage level in 1% increments; and
            ``(5) a loss will trigger when the actual production for 
        the year is less than the bushel guarantee established using 
        Actual Production History (APH) procedures.''.
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