[Congressional Record Volume 146, Number 34 (Thursday, March 23, 2000)]
[Senate]
[Pages S1627-S1642]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RISK MANAGEMENT FOR THE 21ST CENTURY ACT
The PRESIDING OFFICER. Under the previous order, the Senate will now
resume consideration of S. 2251, which the clerk will report by title.
The assistant legislative clerk read as follows:
A bill (S. 2251) to amend the Federal Crop Insurance Act to
improve crop insurance coverage, to provide agricultural
producers with choices to manage risk, and for other
purposes.
Pending:
Wellstone Amendment No. 2888, to express the sense of
Congress regarding the Rally for Rural America and the rural
crisis.
Amendment No. 2888
The PRESIDING OFFICER (Mr. L. Chafee). Under the previous order,
there will now be 2 minutes of debate equally divided prior to the vote
on amendment 2888.
The Senator from Minnesota.
Mr. WELLSTONE. Two minutes for each side?
The PRESIDING OFFICER. Two minutes equally divided.
Mr. WELLSTONE. Mr. President, this is a sense-of-the-Congress
amendment. It thanks the people who came here for the rally for rural
America. It makes it clear that the Congress has heard their plea and
that we will respond with a clear and strong message to alleviate the
agricultural price crisis, to ensure competitive markets, to invest in
rural education and health care, and to ensure a safe and secure food
supply for all.
The crop insurance bill is a good bill. I thank my colleagues for the
work. I want to make sure with this amendment we are clear this is just
the first step. We need to do much more. We hear the people who came.
We commend them for coming. Many of them came by bus from Minnesota and
many other States. We are committed to taking some important action
that will make a positive difference.
That is what this sense-of-the-Senate amendment is all about. When
colleagues vote for this, I think it is a strong vote. We will come
back with specific proposals which will be a part of what I think this
amendment calls for.
I yield the floor.
The PRESIDING OFFICER. The Senator from Indiana.
Mr. LUGAR. Mr. President, I commend the distinguished Senator from
Minnesota for his amendment. On our side of the aisle, we are hopeful
that Members will vote for the amendment.
I simply add, we do hear loudly and clearly the voices of those who
participated in the rally for rural America. This very day, the Senate
will take action, we believe, to at least answer a part of the problem
of a strong safety net for the income of farmers in our country.
Indeed, $6 billion of taxpayer resources will be devoted, given Budget
Committee action, to the safety net for our producers in the event we
take timely action. I stress the timely aspect of that.
As all Senators note, we have tried very hard, working with the
distinguished ranking member, Senator Harkin, with the cooperation of
Senator Wellstone, concerning those who have pioneered this effort--
Senator Roberts, Senator Kerrey, and others--to bring about something I
hope will be almost unanimous.
[[Page S1628]]
The PRESIDING OFFICER. All time has expired. The question is on
agreeing to amendment No. 2888. The yeas and nays have been ordered.
The clerk will call the roll.
The assistant legislative clerk called the roll.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 99, nays 1, as follows:
[Rollcall Vote No. 43 Leg.]
YEAS--99
Abraham
Akaka
Allard
Ashcroft
Baucus
Bayh
Bennett
Biden
Bingaman
Bond
Boxer
Breaux
Brownback
Bryan
Bunning
Burns
Byrd
Campbell
Chafee, L.
Cleland
Cochran
Collins
Conrad
Coverdell
Craig
Crapo
Daschle
DeWine
Dodd
Domenici
Dorgan
Durbin
Edwards
Enzi
Feingold
Feinstein
Fitzgerald
Frist
Gorton
Graham
Gramm
Grams
Grassley
Gregg
Hagel
Harkin
Hatch
Helms
Hollings
Hutchinson
Hutchison
Inhofe
Inouye
Jeffords
Johnson
Kennedy
Kerrey
Kerry
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Lott
Lugar
Mack
McCain
McConnell
Mikulski
Moynihan
Murkowski
Murray
Nickles
Reed
Reid
Robb
Roberts
Rockefeller
Roth
Santorum
Sarbanes
Schumer
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thurmond
Torricelli
Voinovich
Warner
Wellstone
Wyden
NAYS--1
Thompson
The amendment (No. 2888) was agreed to.
Mr. WELLSTONE. I move to reconsider the vote.
Mr. LUGAR. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER. The Senator from Indiana.
Further Modification To Amendment No. 2887
Mr. LUGAR. Mr. President, two clerical errors were made in the
manager's amendment adopted yesterday. I ask unanimous consent that the
manager's amendment, as adopted, be amended to correct these two
clerical errors.
The PRESIDING OFFICER. Without objection, it is so ordered.
The further modification is as follows:
On page 5, line 9, after ``2000,'' insert ``wild''.
On page 14, line 14, strike ``13'' and insert ``15''.
On page 15, line 12, strike ``2'' and insert ``4''.
The PRESIDING OFFICER. Under the previous order, the question is on
the engrossment and third reading of the bill.
The bill was ordered to be engrossed for a third reading and was read
the third time.
The PRESIDING OFFICER. Under the previous order, H.R. 2559 is
discharged from the Agriculture Committee and the Senate will proceed
to its immediate consideration. The clerk will report the bill by
title.
The legislative clerk read as follows:
A bill (H.R. 2559) to amend the Federal Crop Insurance Act
to strengthen the safety net for agricultural producers by
providing greater access to more affordable risk management
tools and improved protection from production and income
loss, to improve the efficiency and integrity of the Federal
crop insurance program, and for other purposes.
The PRESIDING OFFICER. Under the previous order, all after the
enacting clause is stricken and the text of S. 2251, as amended, is
inserted.
Under the previous order, the question is on the engrossment of the
amendments and third reading of the bill.
The amendments were ordered to be engrossed and the bill to be read a
third time.
The bill was read the third time.
Mr. LEAHY. Mr. President, I am very hopeful that this bill can, at
long last, make crop insurance work for all regions of our nation. It
includes creative provisions to bring new producers under its
protections, and to bring new crops under its protections. The
compromise worked out yesterday protects what the Midwest wanted while
reaching out to other regions and producers.
Historic participation in New England has been very low--this bill
helps address this issue. Crop insurance will give our producers one
more tool to help manage risk--risks from ice storms, droughts, flood,
hail and other natural disasters.
I want to thank Senators Roberts and Kerrey for their leadership and
willingness to include our region, so that we can all now vote together
for this effort.
Chairman Lugar and Ranking Member Harkin were faced with a very
difficult challenge--leadership of the Agriculture Committee, as I well
know, can be a very difficult balancing act. Also the Democratic leader
and his staff--Zabrae Valentine--were extremely helpful in delicate
negotiations.
Bev Paul with Senator Kerrey, Mark Halveson with Senator Harkin, Dave
Johnson, Keith Luse, Michael Knipe and Andy Morton with Chairman Lugar,
put in very long hours in this massive effort. Ken Ackerman, of USDA,
provided excellent technical advice in this complex area. Senator
Conrad and his staff Scott Carlson put a huge amount of effort into
this.
I am grateful that the Leahy, Torricelli, Schumer, Rockefeller, Reed,
and Kennedy amendment was included in the managers' package.
The Senate has spoken in a united voice on this amendment and it is
crucial that it be included in any conference report.
Mr. ROBB. Mr. President, I rise in support of the Risk Management for
the 21st Century Act. This bill contains some welcome new tools to help
manage risk on the farm. It is not a perfect bill, but it is a very
good bill. Virginia farmers will have more risk management tools
available to them than ever before, and these tools will be able to
cover more crops than ever before, making the crop insurance system
more equitable and more available.
In particular, I thank the members of the Agriculture committee for
their hard work on this bill. I know that the discussions have been
contentious, and that different regions of the country view risk
management in entirely different ways. I for one am thankful that the
necessary compromises were made to bring this bill forward for a vote.
It is gratifying to know that on the important issues, and this is a
very important issue, that we can still work together and do what is
necessary to improve the lives of the people we represent.
So, I say thank you Chairman Lugar, and Senators Kerrey, Roberts,
Graham, Lincoln, Leahy and Mack, the rest of the committee, and all of
your staffs. You have done the hard work. The country, our food supply,
and our farmers will all benefit.
I yield the floor.
Mr. BURNS. Mr. President I rise today as one of the proud co-sponsors
of S. 2251, ``The Risk Management for the 21st Century Act.''
This bill offers much-needed changes in the area of risk management
for farmers and ranchers. Managing risk in agriculture has become
perhaps the most important aspect of the business. Agricultural
producers who are able to effectively manage their risk are able to
sustain and increase profit. An effective crop insurance program will
provide farmers and ranchers possibilities for economic sustainability
in the future and help them out of the current financial crisis.
The federal government can help facilitate a program to unite the
producer and the private insurance company. The control must be put
ultimately in the hands of the agricultural producer. Although he
cannot control risk, an effective management plan will help him to
manage the effects of risks, such as weather, prices and natural
disasters.
This bill addresses the inadequacies of the current crop insurance
program. The problems and inconsistencies with the current program make
it both unaffordable and confusing to agricultural producers. Costly
premiums are the biggest problem. In years of depressed market prices,
crop insurance, though badly needed, is simply unaffordable for
farmers.
This bill inverts the current subsidy formula, in order to provide
the highest levels of subsidies to producers at the highest levels of
buy-up coverage, and thus alleviate the unaffordable premiums. It also
allows for the revenue policies to be fully subsidized.
Another important provision in this bill is a pilot program to reward
producers for risk management activities.
[[Page S1629]]
It will allow producers to elect to receive a risk management payment
or a crop insurance subsidy. The risk management payments will be given
to those producers that utilize any two of several activities,
including using futures or options, utilizing cash forwards, attending
a risk management class, using Agricultural Trade Options or FFARRM
accounts or reducing farm financial risk. This bill also takes into
account lack of production histories for beginning farmers or those who
have added land or use crop rotation. This will make it possible for
those producers to get a foot in the door and receive affordable crop
insurance.
Many times, especially in Montana, multi-year disasters occur. This
bill helps producers that take a blow several years in a row, which
reduces their Annual Production History (APH). If a producer has
suffered a natural disaster during at least 3 of the preceding 5 years
and their APH was reduced by at least 25 percent they may exclude one
year of APH for every five years experience. During this time, the
producer's APH may increase without limit back up to the level before
the multi-year disaster began.
Specialty crops such as canola or dry beans, are another important
addition to this bill. The Risk Management Agency (RMA) is now
authorized to spend up to $20 million each fiscal year to create
partnerships for developing and implementing specialty crop risk
management options. Additionally, the Non-Insured Assistance Program
(NAP) area trigger has been removed. The Secretary now has the
authority to provide assistance for specialty crops without any
requirement of an area loss. Before, producers were penalized in the
case of a disaster for planting alternative crops if their neighbors
continued to plant traditional commodities. I would like to thank my
colleague, Senator Baucus, for his hard work on getting the provisions
for specialty crops in this bill.
This bill will ultimately put more control in the hands of active
producers by including four active producers on the Federal Crop
Insurance Commission (FCIC) Board. The board would also include nine
private insurance industry experts the Under Secretary for Farm and
Foreign Agricultural Services, the Under Secretary for Rural
Development, and the Chief Economist of USDA. In addition, it mandates
that the Board Chairperson be one of the non-governmental members.
These are important steps to ensure that the new program is run for the
producers by the producers.
This bill is an important tool to reform the current crop insurance
program into a risk management program, designed to help the producer
in the long-term. It is vital to find a solution to provide a way for
farmers to stay in agriculture. They must be able to continue to
produce and distribute the world's safest food supply at a profitable
margin.
Mr. President, I look forward to working with Senators Roberts and
Kerrey, as well as Senator Lugar on this important piece of
legislation. I believe this bill will pave the way for massive crop
insurance reform and help agricultural producers out of this economic
crisis.
Thank you, Mr. President.
Mr. SMITH of Oregon. Mr. President, I am pleased to take this
opportunity to speak briefly in support of this legislation, S. 2251,
the Risk Management for the 21st century Act. Clearly, this bill
represents a good compromise between the major risk management
proposals that have been discussed here in the Senate in recent months.
I command my colleagues--specifically Senator Lugar, Senator Kerrey,
and Senator Roberts--for producing legislation which enjoys broad
support in the agricultural community and is unquestionably needed
during these times of crisis on the family farm.
As we all know, these are not the best of times for farming. Like
their counterparts in other natural resources industries, farmers by
and large have not equitably shared in the remarkable prosperity we
have seen in recent years. Most farmers are faced with another year of
low commodity prices on the Horizon. I know that for wheat growers in
Oregon, this is the third year of historic low prices. At the same
time, the rising costs of production--fueled by energy price spikes, an
extremely tight labor market, and incredibly burdensome regulations and
government mandates--continue to squeeze the farmer's bottom line. We
need to work together to ease this price pressure on farmers and we
need to act quickly. Opening up trade, relieving estate tax burdens,
seriously reviewing some of the labor and environment regulations that
seek to make farmers felons--these are just a few of the issues we need
to address to turn around the fortunes of America's farmers. The
development of more practical risk management tools is another. That is
exactly the promise S. 2251 offers us today--not a fix-all, but a
significant and necessary step on the road to farm recovery.
S. 2251 improves the federal crop insurance system in several key
ways. First, it makes higher levels of coverage more affordable. By
raising premium subsidies, we will offer farmers the chance to help
themselves today and avoid an expensive federal bailout tomorrow.
Second, this bill will make crop insurance more effective for farmers
experiencing successive years of disaster, by changing the way
production history is calculated. In Oregon, we are blessed that we
have not had widespread and recurring natural disasters, such as my
colleagues have described in the Dakotas. However, we have had recent
recurring flood problems in certain areas of my State--the Tillamook
Bay area and the Harney County Lakes Basin, for example. This bill will
address some of the problems producers have had in getting a fair
accounting of their production. Finally, and perhaps most significantly
for Oregon, this bill has a number of provisions designed to assist
specialty crop producers. My State has a number of specialty crops--
from nursery products in the Willamette Valley to tree fruits in the
Columbia Gorge and southern Oregon to potato and onion growers in the
east. With $20 million annually set aside for specialty crop risk
management pilot projects, this bill represents a substantial effort to
make federal crop insurance relevant to producers of nonprogram
commodities. I believe this attention to the needs of specialty crop
producers is an overdue but welcome change.
Once again, I commend my colleagues for their work on this
legislation and for their willingness to listen to concerns and
suggestions from those of us not on the Agriculture Committee. Much
work remains to be done before I think we can say that we have truly
kept our promise to farmers under Freedom to Farm, but his is an
important step in that direction. I look forward to voting in favor of
this bill, and I hope that we will have before us in relatively short
order a conference agreement as well. It is vital we get this
legislation passed and take advantage of the budget authority we have
provided for this purpose.
Mr. REED. Mr. President, I rise to express my support for H.R. 2559,
the ``Federal Crop Insurance Act''. Today the Senate will approve a $6
billion crop insurance reform bill designed to increase premium
subsidies for farmers who buy more comprehensive coverage and expand
the availability of crop insurance for specialty crops. The reforms in
this legislation will enable farmers in Rhode Island and across the
country to obtain more crop insurance coverage and reduce income losses
due to natural disasters.
I and my colleagues from the Northeast and Mid-Atlantic opposed last
year's farm disaster bill because it did not provide adequate relief to
farmers in our region who were hit by the terrible drought conditions
of 1999. The National Oceanic and Atmospheric Administration (NOAA)
found that four states in the Northeast, including Rhode Island, New
Jersey, Maryland, and Delaware, experienced the driest growing season
in their histories. From April through July, Rhode Island was the
driest it has been in 105 years of record-keeping by NOAA's National
Climatic Data Center.
Unfortunately, forecasters at the National Weather Service are
predicting continued drought conditions this year, because we are
starting out with a deficit of rainfall and, even with the snowstorms
of January, winter precipitation was 3.5 inches below normal for our
region.
The prospect of another long dry summer makes this crop insurance
reform bill all the more important. I know that people may not always
[[Page S1630]]
think of the Northeast when they think of farming. But in my small
state alone there are about 700 farms. Farmers in Rhode Island grow
vegetables, turf, nursery stock, cranberries, strawberries, and
potatoes. My state is also home to many orchards and dairy farms. Many
of our crops are not insurable under the current federal crop insurance
program, and that's why I strongly support the significant investment
in research and development of new specialty crop policies provided by
this bill.
I also support provisions in the bill to remove the ``area trigger''
for the Non-insured Crop Disaster Assistance Program (NAP). I believe
broader NAP eligibility is one of the most effective ways to assist
farmers in the eastern United States who face severe production losses
due to drought, floods, or other disasters.
Currently, NAP crops are eligible for assistance when: (1) expected
``Area Yield'' for the crop is reduced by more than 35 percent because
of natural disaster; and 2) individual crop losses are in excess of 50%
of the individual's approved yield, or the producer is prevented from
planting more than 35 percent of the acreage intended for the eligible
crop.
These criteria have proven to be unworkable in many eastern states,
both in terms of program accessibility and timeliness of payments. For
individual growers of specialty crops, typically grown on small
acreage, a loss of as little as 20% can be devastating, especially
given the high per-acre value of these crops. Moreover, the process of
verifying area yield reductions is cumbersome and exceedingly time-
consuming, resulting in waiting periods of several months or, in some
cases, more than a year for payment.
Giving the Secretary of Agriculture broader discretion over delivery
of NAP program funds will streamline the approval process and make
direct assistance available to thousands of farmers whose substantial
losses do not meet NAP criteria under the current area trigger. I am
pleased that removal of this trigger is among the many valuable reforms
in the bill before us today.
Finally, I was proud to join several of my Senate colleagues from the
Northeast to offer an amendment to provide $60 million for expanded
education and outreach for farmers in states with low levels of crop
insurance participation, as well as research and development of new
crop insurance policies for currently uninsured crops in these states.
Our amendment would also set aside $66 million for farmers in
underserved states to participate in the bill's proposed risk
management pilot project which allows farmers to choose between
traditional crop insurance and a direct payment for adopting new risk
management practices such as farm diversification, futures contracts
and options, creation of conservation buffers, soil erosion control,
and irrigation management. While offering increased income to farmers
for whom crop insurance has not worked well, the pilot will test
whether incentive payments can encourage producers to adopt new risk
management strategies that are good for the environment. I thank the
distinguished Chairman of the Committee on Agriculture for making this
amendment part of the overall package we will vote on today, and I urge
the Senate conferees to ensure that this important provision remains in
the bill after conference with the House. Otherwise, I will likely
oppose the conference report when it comes before the Senate. Together
with the substantial new funding for research and development of
specialty crop insurance policies, this amendment will ensure that we
have a farm policy that is truly national in scope.
With the passage of this legislation we will give farmers the tools
they need to manage their risk more effectively, and possibly reduce
the need for Congress to pass massive farm disaster packages year after
year. At the same time, we recognize the contribution and needs of
farmers in every region of the country, who not only feed the world but
preserve a way of life that makes our nation stronger and protects our
precious open spaces from the encroachment of development and urban
sprawl.
I urge my colleagues to support the Federal Crop Insurance Act.
Mr. BREAUX. Mr. President, I want to express my personal thanks and
deep appreciation for adoption of an amendment to the Senate's crop
insurance bill which would authorize crop insurance coverage for the
2001 and future rice crops for losses due to drought and saltwater
intrusion.
The rice language was included in the Chairman's floor amendment
which the Senate approved yesterday.
I want to thank Senator Lugar and Senator Harkin sincerely for
agreeing to the amendment. My sincere appreciation also goes to Senator
Kerrey and to Senator Roberts for accepting the provision.
Senator Landrieu, Senator Lincoln and I have been working together
for several weeks to help our rice growers who have been experiencing a
prolonged drought. It has been my privilege to work with Senator
Landrieu and Senator Lincoln in addressing the absence of rice crop
insurance coverage for the drought and saltwater intrusion perils.
Currently, the rice crop insurance policy does not include coverage
for losses due to drought and saltwater intrusion. A meeting about the
current policy and how to address the absence of coverage was held with
our staff, grower representatives and USDA's Risk Management Agency.
The willingness to meet and the attention given to the situation at the
meeting and subsequent to it by Mr. Ken Ackerman, the RMA's
Administrator, and his staff are also sincerely appreciated.
To ensure that drought and saltwater intrusion coverage are provided
in time for the 2001 rice crop and prior to the USDA policy change
deadline, legislation was prepared which is now in the Senate's crop
insurance bill. In order for a crop insurance policy change to become
effective, it must be adopted by November 30, which is USDA's annual
deadline for such changes.
With the rice crop insurance language being only in the Senate bill,
it is my hope that it will be retained in conference with the House. I
take this opportunity to urge the Senate's conferees to keep the rice
crop insurance provision in the final conference bill.
Insurance coverage for rice crop losses due to drought and saltwater
intrusion is an important risk management tool for rice growers to have
available to them. Again, I express deep personal appreciation for the
Senate approving inclusion of the bill language which Senator Landrieu,
Senator Lincoln and I have worked on, which we strongly support and
which we submitted for the Senate's consideration.
Thank you, Mr. President.
noncontiguous units
Ms. COLLINS. Mr. President, I have heard from many Maine potato
farmers that one barrier to their using the crop insurance program is
the inability to insure the crops of a farm that may consist of several
non-contiguous units under one policy. Therefore, I was pleased to see
that The Risk Management for the Twenty-first Century Act authorizes
pilot programs to allow farmers to receive premium discounts for using
whole farm units or single crop units of insurance and to cross State
and county boundaries to form insurable units. This provision has the
potential to significantly help farmers in Maine and I appreciate your
efforts to ensure its inclusion in the crop insurance bill. I hope,
too, that you will make every effort to retain this provision in the
bill that emerges form conference.
Mr. ROBERTS. A major purpose of this bill is to make crop insurance
more available to our Nation's farmers. I understand the importance of
the provision you cite to farmers in your State and will work hard to
see that is retained.
Ms. COLLINS. Again, I appreciate the assistance of my good friends,
Senators Lugar and Roberts, who chair the Agriculture Committee and
Subcommittee on Production and Price Competitiveness, respectively. A
pilot program that could allow farmers to combine noncontiguous units
under one policy and to receive premium discounts could be extremely
beneficial to my State. I hope that we can strongly encourage the U.S.
Department of Agriculture to give Maine every consideration as a
location for such a pilot program.
Mr. LUGAR. The pilot programs authorized in this bill are a tool to
find new ways to improve crop insurance for farmers. I agree that the
USDA should give every consideration to including farmers in Maine in
such a
[[Page S1631]]
pilot program. I would also commend the Senator from Maine's efforts to
work with us in crafting a bill that address the concerns of farmers in
her state.
Mr. ROBERTS. I agree that Maine appears to be an excellent candidate
for such a pilot program. I thank the Senator for bringing this
important matter to our attention.
Mr. ASHCROFT. Mr. President, first, I commend the bipartisan efforts
of the Agriculture Committee. In S. 2251 the committee has produced a
bill which will deliver much needed expansion and improvement of the
federal crop insurance program. Additionally, I appreciate Senators
Roberts and Kerrey for accepting a proposal I put forward that will
establish a commission to examine reform issues over the long term.
Missouri farmers are hurting. Prices for cotton, soybeans, corn,
rice, and almost all commodities dropped so low last year that
University of Missouri economists predicted grain farmers could face
prices almost as low as those seen in 1986. The Senate responded to the
crisis strongly by supporting a disaster assistance package worth about
$9 billion in 1999. The Senate now has the opportunity to assist
farmers by helping them protect their losses that are due to bad
weather and market fluctuations. Our farmers need more affordable crop
insurance, to obtain higher levels of coverage and revenue protection.
Missourians, like farmers in many other sates, are diversifying their
agricultural production and increasingly focusing on specialty crops.
S. 2251 also provides a realistic basis for expanding and improving
insurance for specialty crops.
As good as this bill is, I offered, and Senators Roberts and Kerrey
graciously accepted, a provision that would establish a commission to
review the effect of the changes made in traditional crop insurance and
the addition of a pilot project for alternative risk programs. The
Federal Crop Insurance Improvement Commission will report to Congress
in 2 years with its findings. The Commission strengthens the public-
private partnership that farmers rely on to deliver crop insurance by
bringing together Government officials, economists, farm interests, and
insurers to review various proposals. As we review farm policies down
the road, I want to have the input of those that are actually out there
``in the field.''
Again I thank my Senate colleagues from Kansas and Nebraska for
bringing this important issue to the Senate floor. I want farm families
to be able to encourage their children to continue the traditions of
family farming and agri-business. The crop insurance reform detailed in
S. 2251 puts us one step closer to that goal.
Mr. McCAIN. Mr. President, I commend the managers of this bill and
all those who worked hard to forge this agreement to help address the
continuing crisis facing American farmers. However, I regret that I
cannot vote for this legislation, S. 2251, the Risk Management for the
21st Century Act.
Over the last 2 years, the Congress was forced to spend more than $15
billion of taxpayer dollars in emergency disaster assistance to
farmers. Proponents of this bill claim that if S. 2251 is enacted, the
need to pass ad hoc emergency farm relief would be avoided. However,
even with passage of this bill, these same proponents are not willing
to voice their opposition to further emergency spending should Congress
be forced to consider additional relief measures for farmers.
This bill, at a cost of $6 billion, is more of an expanded federal
subsidy for crop coverage, rather than thorough and necessary reform of
the larger problems stemming from our nation's farm policies. It has
become clear that the 1996 Freedom to Farm bill failed to alleviate the
heavy reliance by the farming community on federally subsidized
programs and financial assistance. However, instead of turning back the
clock and increasing subsidies, we should be working for responsible
reform of farm policies. That is why I voted in favor of Senator
Wellstone's amendment which calls for broader reform.
Even with the expanded coverage and more affordable insurance
premiums for farmers called for in this bill, Congress does not have
the assurance that other problems, such as fluctuations in the market
or limited trade opportunities, will not create additional burdens on
farmers requiring another costly congressional budgetary response.
Mr. President, this bill also includes provisions that appear
capricious and unnecessarily bureaucratic. Five new regional centers
will be established at a price tag of $30 million, and new pilot
programs are authorized to develop and market risk management tools. I
support efforts to evaluate innovative risk management options or to
ensure that farmers understand changes to insurance coverage and
options. But why should we spend taxpayer money on new information
centers when this information is already available and accessible
through local USDA offices? And, the private sector is in no way
prohibited from exploring opportunities to develop and market new
products to manage risk.
Mr. President, I agree with the fundamental principle of this bill,
that farmers need to have risk management tools to allow them to
prepare for, and deal with, crop losses and disaster-related problems.
However, I am not convinced that this bill will do much more than
increase taxpayer burdens and only partially solve a much bigger
problem facing our nation's farmers.
Mr. President, I ask unanimous consent that my remarks be placed in
the Record immediately following passage of S. 2251.
The PRESIDING OFFICER. The Senator from Indiana.
Mr. LUGAR. I ask for the yeas and nays on final passage.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The bill having been read the third time, the question is, Shall the
bill pass? The clerk will call the roll.
The legislative clerk called the roll.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 95, nays 5, as follows:
[Rollcall Vote No. 44 Leg.]
YEAS--95
Abraham
Akaka
Allard
Ashcroft
Baucus
Bayh
Bennett
Biden
Bingaman
Bond
Boxer
Breaux
Brownback
Bryan
Bunning
Burns
Byrd
Campbell
Chafee, L.
Cleland
Collins
Conrad
Coverdell
Craig
Crapo
Daschle
DeWine
Dodd
Domenici
Dorgan
Durbin
Edwards
Enzi
Feingold
Feinstein
Fitzgerald
Frist
Gorton
Graham
Gramm
Grams
Grassley
Hagel
Harkin
Hatch
Helms
Hollings
Hutchinson
Hutchison
Inhofe
Inouye
Jeffords
Johnson
Kennedy
Kerrey
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Lugar
Mack
McConnell
Mikulski
Moynihan
Murkowski
Murray
Nickles
Reed
Reid
Robb
Roberts
Rockefeller
Roth
Santorum
Sarbanes
Schumer
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thompson
Thurmond
Torricelli
Voinovich
Warner
Wellstone
Wyden
NAYS--5
Cochran
Gregg
Kyl
Lott
McCain
The bill (H.R. 2559), as amended, was passed, as follows:
Resolved, That the bill from the House of Representatives
(H.R. 2559) entitled ``An Act to amend the Federal Crop
Insurance Act to strengthen the safety net for agricultural
producers by providing greater access to more affordable risk
management tools and improved protection from production and
income loss, to improve the efficiency and integrity of the
Federal crop insurance program, and for other purposes.'', do
pass with the following amendment:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Risk
Management for the 21st Century Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--CROP INSURANCE COVERAGE
Sec. 101. Quality adjustment.
Sec. 102. Prevented planting.
Sec. 103. Payment of portion of premium by Corporation.
Sec. 104. Assigned yields.
Sec. 105. Multiyear disaster actual production history adjustment.
Sec. 106. Noninsured crop disaster assistance program.
Sec. 107. Crop insurance coverage for rice.
TITLE II--RESEARCH AND PILOT PROGRAMS
Sec. 201. Research and pilot programs.
[[Page S1632]]
Sec. 202. Research and development contracting authority.
Sec. 203. Choice of risk management options.
Sec. 204. Options pilot program.
Sec. 205. Risk management innovation and competition pilot program.
Sec. 206. Education and research.
Sec. 207. Conforming amendments.
TITLE III--ADMINISTRATION
Sec. 301. Board of Directors of Corporation.
Sec. 302. Good farming practices.
Sec. 303. Sanctions for program noncompliance and fraud.
Sec. 304. Oversight of agents and loss adjusters.
Sec. 305. Adequate coverage for States.
Sec. 306. Records and reporting.
Sec. 307. Fees for plans of insurance.
Sec. 308. Limitation on double insurance.
Sec. 309. Specialty crops.
Sec. 310. Federal Crop Insurance Improvement Commission.
Sec. 311. Highly erodible land and wetland conservation.
Sec. 312. Projected loss ratio.
Sec. 313. Compliance with State licensing requirements.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Improved risk management education.
Sec. 402. Sense of the Senate regarding the Federal crop insurance
program.
Sec. 403. Sense of Congress on Rally for Rural America and rural
crisis.
TITLE V--EFFECTIVE DATES; TERMINATION OF AUTHORITY
Sec. 501. Effective dates.
Sec. 502. Termination of authority.
TITLE I--CROP INSURANCE COVERAGE
SEC. 101. QUALITY ADJUSTMENT.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) is amended by striking paragraph (6) and inserting
the following:
``(6) Quality adjustment policies.--
``(A) In general.--The Corporation shall offer coverage
that permits a reduction in the quantity of production of an
agricultural commodity produced during a crop year, or any
similar adjustment, that results from the agricultural
commodity not meeting the quality standards established in
the policy.
``(B) Election not to receive coverage.--
``(i) In general.--A producer may elect not to receive
quality adjustment coverage.
``(ii) Premium reduction.--In the case of an election
described in clause (i), the Corporation shall provide a
reduction in the premium payable by the producer for a plan
of insurance in an amount equal to the premium for the
quality adjustment coverage, as determined by the
Corporation.
``(C) Review of criteria and procedures.--The Corporation
shall--
``(i) contract with a qualified person to analyze the
quality loss adjustment procedures of the Corporation; and
``(ii) based on the analysis, make adjustments in the
quality loss adjustment procedures of the Corporation
necessary to more accurately reflect local quality discounts
that are applied to agricultural commodities insured under
this title, taking into consideration the actuarial soundness
of the adjustment and the prevention of fraud, waste, and
abuse.''.
SEC. 102. PREVENTED PLANTING.
(a) In General.--Section 508(a) of the Federal Crop
Insurance Act (7 U.S.C. 1508(a)) (as amended by section 101)
is amended by inserting after paragraph (6) the following:
``(7) Prevented planting.--
``(A) Election not to receive coverage.--
``(i) In general.--A producer may elect not to receive
coverage for prevented planting of an agricultural commodity.
``(ii) Premium reduction.--In the case of an election
described in clause (i), the Corporation shall provide a
reduction in the premium payable by the producer for a plan
of insurance in an amount equal to the premium for the
prevented planting coverage, as determined by the
Corporation.
``(B) Equal coverage.--For each agricultural commodity for
which prevented planting coverage is available, the
Corporation shall offer an equal percentage level of
prevented planting coverage.
``(C) Area conditions required for payment.--The
Corporation shall limit prevented planting payments to
producers in the area in which the farm is located that are
generally affected by the conditions that prevent an
agricultural commodity from being planted.
``(D) Substitute commodity.--
``(i) Authority to plant.--Subject to clause (v), a
producer that has prevented planting coverage and is eligible
to receive an indemnity under the coverage may plant an
agricultural commodity, other than the commodity covered by
the prevented planting coverage, on the acreage originally
prevented from being planted.
``(ii) Nonavailability of insurance.--A substitute
agricultural commodity planted under clause (i) for harvest
in the same crop year shall not be eligible for coverage
under a policy or plan of insurance under this title or for
noninsured crop disaster assistance under section 196 of the
Agricultural Market Transition Act (7 U.S.C. 7333).
``(iii) Relationship to other requirements.--The producer
of a substitute agricultural commodity under clause (ii)
shall remain eligible for the benefits described in
subsection (b)(7).
``(iv) Effect on actual production history.--If a producer
plants a substitute agricultural commodity under clause (i)
for a crop year, the Corporation shall assign the producer a
yield, for that crop year for the commodity that was
prevented from being planted, equal to 60 percent of the
producer's actual production history for that commodity for
purposes of determining the producer's actual production
history for subsequent crop years.
``(v) Effect on prevented planting payment.--If a producer
plants a substitute agricultural commodity under clause (i)
before the latest planting date established by the
Corporation for the agricultural commodity prevented from
being planted, the Corporation shall not make a prevented
planting payment with regard to the commodity prevented from
being planted.
``(E) Relationship to other law.--This paragraph shall
supersede subsection (h)(7) to the extent that this paragraph
is inconsistent with subsection (h)(7).
``(F) Crop years.--This paragraph shall apply to each of
the 2001 through 2004 crop years.''.
(b) Application.--The amendment made by subsection (a)
shall be reflected in the rates for applicable plans of
insurance not later than the 2001 reinsurance year.
SEC. 103. PAYMENT OF PORTION OF PREMIUM BY CORPORATION.
(a) Expected Market Price.--Section 508(c) of the Federal
Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking
paragraph (5) and inserting the following:
``(5) Expected market price.--
``(A) In general.--For the purposes of this title, the
Corporation shall establish or approve the price level
(referred to in this title as the `expected market price') of
each agricultural commodity for which insurance is offered.
``(B) Amount.--The expected market price of an agricultural
commodity--
``(i) except as otherwise provided in this subparagraph,
shall be not less than the projected market price of the
agricultural commodity, as determined by the Corporation;
``(ii) may be based on the actual market price of the
agricultural commodity at the time of harvest, as determined
by the Corporation;
``(iii) in the case of revenue and other similar plans of
insurance, shall be the actual market price of the
agricultural commodity, as determined by the Corporation; or
``(iv) in the case of cost of production or similar plans
of insurance, shall be the projected cost of producing the
agricultural commodity, as determined by the Corporation.''.
(b) Premium Amounts.--Section 508(d)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)(2)) is amended by striking
subparagraph (C) and inserting the following:
``(C) In the case of additional coverage at greater than or
equal to 65 percent of the recorded or appraised average
yield indemnified at 100 percent of the expected market
price, or a comparable coverage for a plan of insurance that
is not based on yield, but less than 75 percent of the
recorded or appraised average yield indemnified at 100
percent of the expected market price, or a comparable
coverage for a plan of insurance that is not based on yield,
the amount of the premium shall--
``(i) be sufficient to cover anticipated losses and a
reasonable reserve; and
``(ii) include an amount for operating and administrative
expenses, as determined by the Corporation, on an industry-
wide basis as a percentage of the amount of the premium used
to define loss ratio.
``(D) In the case of additional coverage equal to 75, 80,
or 85 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount of the premium shall--
``(i) be sufficient to cover anticipated losses and a
reasonable reserve; and
``(ii) include an amount for operating and administrative
expenses, as determined by the Corporation, on an industry-
wide basis as a percentage of the amount of the premium used
to define loss ratio.''.
(c) Payment of Portion of Premium by Corporation.--Section
508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--
``(A) Mandatory payments.--For the purpose of encouraging
the broadest possible participation of producers in the crop
insurance plans of insurance described in subsections (b) and
(c), the Corporation shall pay a part of the premium in the
amounts determined under this subsection.
``(B) Discretionary payments.--For the purpose of
encouraging the broadest possible participation of producers,
in the case of a plan of insurance approved by the
Corporation under subsection (h), the Corporation may pay a
part of the premium as determined under this subsection.'';
and
(2) in paragraph (2), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) In the case of additional coverage less than or equal
to 50 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 60 percent of the amount of the premium established
under subsection (d)(2)(B)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(B)(ii).
``(C) In the case of additional coverage at 55 percent or
60 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 45 percent of the amount of the premium established
under subsection (d)(2)(B)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(B)(ii).
[[Page S1633]]
``(D) In the case of additional coverage at 65 percent or
70 percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 50 percent of the amount of the premium established
under subsection (d)(2)(C)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(C)(ii).
``(E) In the case of additional coverage equal to 75
percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 55 percent of the amount of the premium established
for coverage at 75 percent of the recorded or appraised
average yield indemnified at 100 percent of the expected
market price under subsection (d)(2)(D)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(D)(ii).
``(F) In the case of additional coverage equal to 80
percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 38 percent of the amount of the premium established
for coverage at 80 percent of the recorded or appraised
average yield indemnified at 100 percent of the expected
market price under subsection (d)(2)(D)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(D)(ii).
``(G) In the case of additional coverage equal to 85
percent of the recorded or appraised average yield
indemnified at 100 percent of the expected market price, or a
comparable coverage for a plan of insurance that is not based
on yield, the amount shall be equal to the sum of--
``(i) 28 percent of the amount of the premium established
for coverage at 85 percent of the recorded or appraised
average yield indemnified at 100 percent of the expected
market price under subsection (d)(2)(D)(i); and
``(ii) the amount of operating and administrative expenses
determined under subsection (d)(2)(D)(ii).
``(H) Subparagraphs (A) through (G) shall apply to each of
fiscal years 2001 through 2004.''.
(d) Revenue Coverage for Potatoes.--Section 508(a) of the
Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by
striking paragraph (3) and inserting the following:
``(3) Exclusions.--
``(A) In general.--Insurance provided under this subsection
shall not cover losses due to--
``(i) the neglect or malfeasance of the producer;
``(ii) the failure of the producer to reseed to the same
crop in such areas and under such circumstances as it is
customary to reseed; or
``(iii) the failure of the producer to follow good farming
practices (as determined by the Secretary).
``(B) Revenue coverage for potatoes.--No plan of insurance
provided under this title (including a plan of insurance
approved by the Board under subsection (h)) shall cover
losses due to a reduction in revenue for potatoes except as
covered under a whole farm plan of insurance, as determined
by the Corporation.''.
(e) Conforming Amendments.--Section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) is amended--
(1) in subsection (e), by striking paragraph (4); and
(2) in subsection (g)(2)(D), by striking ``(as provided in
subsection (e)(4))''.
SEC. 104. ASSIGNED YIELDS.
Section 508(g)(2)(B) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)(2)(B)) is amended--
(1) by striking ``assigned a yield'' and inserting
``assigned--
``(i) a yield'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:
``(ii) a yield determined by the Corporation, in the case
of--
``(I) a producer that has not had a share of the production
of the insured crop for more than 2 crop years, as determined
by the Secretary;
``(II) a producer that produces an agricultural commodity
on land that has not been farmed by the producer; and
``(III) a producer that rotates a crop produced on a farm
to a crop that has not been produced on the farm.''.
SEC. 105. MULTIYEAR DISASTER ACTUAL PRODUCTION HISTORY
ADJUSTMENT.
Section 508(g) of the Federal Crop Insurance Act (7 U.S.C.
1508(g)) is amended by adding at the end the following:
``(4) Transitional adjustment for disasters.--
``(A) Definition of a producer that has suffered a
multiyear disaster.--In this paragraph, the term `a producer
that has suffered a multiyear disaster' means a producer (or
a successor entity through which the actual production
history of the producer can be traced) that has suffered a
natural disaster during at least 3 of the immediately
preceding 5 crop years that resulted in a cumulative
reduction of at least 25 percent in the actual production
history of the crop of an agricultural commodity.
``(B) Elimination of certain years of production history.--
Notwithstanding paragraph (2), effective beginning with the
2001 crop year, for the purpose of calculating the actual
production history for a crop of an agricultural commodity, a
producer that has suffered a multiyear disaster with respect
to the crop may exclude 1 year of production history for each
5 years included in the actual production history calculation
of the crop for which the producer purchased crop insurance.
``(C) Corporation's share of changed costs.--In the case of
an exclusion under subparagraph (B), in addition to any other
authority to pay any portion of premium, the Corporation
shall pay--
``(i) the portion of the premium that represents the
increase in premium associated with the exclusion;
``(ii) all additional indemnities associated with the
exclusion; and
``(iii) any amounts that result from the difference in the
administrative and operating expenses owed to an approved
insurance provider as the result of an exclusion in actual
production history under this paragraph.
``(D) Increase in actual production history after
exclusions.--In the case of a producer that has received an
exclusion under subparagraph (B), the Corporation shall not
limit the increase of the actual production history based on
the producer's actual production of the crop of an
agricultural commodity in succeeding crop years until the
actual production history for the producer reaches the level
for the crop year immediately preceding the first year of the
multiyear disaster.
``(E) Termination of exclusion authority.--The authority to
apply this paragraph to a producer shall terminate with
respect to the first crop year in which crop insurance is
available to the producer that adequately insures against
natural disasters that occur in multiple crop years, as
determined by the Corporation.
``(F) Reinsurance years.--This paragraph shall apply to
each of the 2001 through 2004 reinsurance years.''.
SEC. 106. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
(a) Operation and Administration of Program.--Section
196(a)(2) of the Agricultural Market Transition Act (7 U.S.C.
7333(a)(2)) is amended by adding at the end the following:
``(C) Combination of similar types or varieties.--At the
option of the Secretary, all types or varieties of a crop or
commodity, described in subparagraphs (A) and (B), may be
considered to be a single eligible crop under this
section.''.
(b) Records and Application Date.--Section 196(b) of the
Agricultural Market Transition Act (7 U.S.C. 7333(b)) is
amended--
(1) in the second sentence of paragraph (1), by striking
``at such time as the Secretary may require.'' and inserting
``not later than March 15.'';
(2) by striking paragraph (2) and inserting the following:
``(2) Records.--To be eligible for assistance under this
section, a producer shall provide annually to the Secretary
records of crop acreage, acreage yields, and production for
each crop, as required by the Secretary.''; and
(3) in paragraph (3), by inserting ``annual'' after ``shall
provide''.
(c) Loss Requirements.--Section 196 of the Agricultural
Market Transition Act (7 U.S.C. 7333) is amended by striking
subsection (c) and inserting the following:
``(c) Loss Requirements.--
``(1) Cause.--To be eligible for assistance under this
section, a producer of an eligible crop shall have suffered a
loss of a noninsured commodity as the result of a cause
described in subsection (a)(3).
``(2) Assistance.--On making a determination described in
subsection (a)(3), the Secretary shall provide assistance
under this section to producers of an eligible crop that have
suffered a loss as a result of the cause described in
subsection (a)(3).
``(3) Prevented planting.--The Secretary shall make a
prevented planting noninsured crop disaster assistance
payment to a producer if the producer is prevented from
planting more than 15 percent of the acreage intended for the
eligible crop because of a cause described in subsection
(a)(3), as determined by the Secretary.
``(4) Area trigger.--The Secretary may provide assistance
to individual producers without any requirement of an area
loss.''.
(d) New Eligible Crops.--Section 196 of the Agricultural
Market Transition Act (7 U.S.C. 7333) is amended--
(1) in subsection (d)(1)--
(A) by inserting ``(except as provided in subsection (j))''
after ``percent''; and
(B) by inserting ``determined under subsection (e)'' after
``for the crop'';
(2) by redesignating subsection (j) as subsection (l); and
(3) by inserting after subsection (i) the following:
``(j) New Eligible Crops.--
``(1) In general.--Subject to paragraph (2), if a producer
produces an eligible crop that is new to an area (as
determined by the Secretary), a payment for the producer
shall be computed by substituting the following percentages
of yields for the percentages of yields specified in
subsection (d)(1):
``(A) In the case of the first crop year of the eligible
crop produced by the producer, 35 percent of the established
yield for the crop determined under subsection (e).
``(B) In the case of each of the second through fourth
years of the eligible crop produced by the producer--
``(i) 45 percent of the established yield for the crop
determined under subsection (e); or
``(ii) if the producer received a payment under this
section for the first crop year of the eligible crop produced
by the producer, 35 percent of the established yield for the
crop determined under subsection (e).
``(2) Temporary ineligibility.--If a producer of an
eligible crop described in paragraph (1) receives a payment
under this section in both the first and second crop years of
the eligible crop, the producer shall be ineligible for a
payment under this section until the producer has
successfully produced the crop for at least 3 consecutive
crop years with no loss reported, as determined by the
Secretary.''.
[[Page S1634]]
(e) Service Fee.--Section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333) (as amended by subsection (d))
is amended by inserting after subsection (j) the following:
``(k) Service Fee.--
``(1) In general.--To be eligible to receive assistance for
an eligible crop for a crop year under this section, a
producer shall pay to the Secretary (at the time at which the
producer provides reports under subsection (b)(3)) a service
fee for the eligible crop in an amount that is equal to the
lesser of--
``(A) the equivalent of the per policy fee for catastrophic
risk protection available under section 508(b)(5) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)); or
``(B) $200 per producer per county, but not to exceed a
total of $600 per producer.
``(2) Waiver.--The Secretary shall waive the service fee
required under paragraph (1) in the case of a limited
resource farmer, as defined by the Secretary.
``(3) Use.--The Secretary shall deposit service fees
collected under this subsection in the Commodity Credit
Corporation Fund.''.
(f) Crop Years.--This section and the amendments made by
this section shall apply to each of the 2001 through 2004
crop years.
SEC. 107. CROP INSURANCE COVERAGE FOR RICE.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) (as amended by section 102(a)) is amended by adding
at the end the following:
``(8) Special provisions for rice.--Notwithstanding any
other provision of this title, beginning with the 2001 crop
of rice, the Corporation shall offer plans of insurance,
including prevented planting coverage and replanting
coverage, under this title that cover losses of rice
resulting from failure of irrigation water supplies due to
drought and saltwater intrusion.''.
TITLE II--RESEARCH AND PILOT PROGRAMS
SEC. 201. RESEARCH AND PILOT PROGRAMS.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is
amended by adding at the end the following:
``SEC. 522. RESEARCH AND PILOT PROGRAMS.
``(a) General Provisions.--
``(1) In general.--Except as otherwise provided in this
subsection, the Corporation may conduct research, surveys,
pilot programs, and investigations relating to crop insurance
and agriculture-related risks and losses based on proposals
developed by the Corporation or by an approved insurance
provider to evaluate whether the proposal or new risk
management tool is suitable for the marketplace and addresses
the needs of producers of agricultural commodities.
``(2) Private coverage.--Under this section, the
Corporation shall not conduct any activity that provides
insurance protection against a risk if insurance protection
against the risk is generally available from private
companies.
``(3) Covered activities.--The activities described in
paragraph (1) include insurance on losses involving--
``(A) reduced forage on rangeland caused by drought or
insect infestation;
``(B) livestock poisoning and disease;
``(C) destruction of bees due to the use of pesticides;
``(D) unique special risks related to fruits, nuts,
vegetables, and specialty crops in general, aquacultural
species, and forest industry needs (including appreciation);
``(E) loss of timber due to drought, flood, fire, or other
natural disaster;
``(F) other agricultural products as determined by the
Board;
``(G) after October 1, 2000, insurance coverage for
livestock and livestock products;
``(H) subject to paragraph (7), after October 1, 2000, wild
salmon; and
``(I) subject to paragraph (7), after October 1, 2000, loss
of or damage to trees or fruit affected by plum pox virus
(commonly known as `sharka'), including quarantined trees or
fruit.
``(4) Scope of pilot programs.--The Corporation may--
``(A) offer a pilot program authorized under this title on
a regional, State, or national basis after considering the
interests of affected producers and the interests of, and
risks to, the Corporation;
``(B) operate the pilot program, including any
modifications of the pilot program, for a period of up to 4
years;
``(C) extend the time period for the pilot program for
additional periods, as determined appropriate by the
Corporation; and
``(D) provide pilot programs that would allow producers--
``(i) to receive premium discounts for using whole farm
units or single crop units of insurance; and
``(ii) to cross State and county boundaries to form
insurable units.
``(5) Evaluation.--After the completion of any pilot
program under this section, the Corporation shall evaluate
the pilot program and submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report
on the operations of the pilot program, including the
evaluation by the Corporation of the pilot program and the
recommendations of the Corporation with respect to
implementing the program on a national basis.
``(6) Funding.--The amount of funds used to carry out
research and pilot programs that are established after the
date of enactment of this section (other than subsection
(b)(2)) shall not exceed--
``(A) in the case of fiscal year 2001, $10,000,000;
``(B) in the case of fiscal year 2002, $30,000,000;
``(C) in the case of fiscal year 2003, $50,000,000; and
``(D) in the case of fiscal year 2004, $60,000,000.
``(7) Fiscal years.--Paragraphs (3)(E), (3)(G), (3)(H),
(4), and (6) shall apply to each of fiscal years 2001 through
2004.
``(8) Relation to other laws.--
``(A) In general.--The terms and conditions of any policy
or plan of insurance offered under this section that is
reinsured by the Corporation shall not--
``(i) be subject to the jurisdiction of the Commodity
Futures Trading Commission or the Securities and Exchange
Commission; or
``(ii) be considered to be accounts, agreements (including
any transaction that is of the character of, or is commonly
known to the trade as, an `option', `privilege', `indemnity',
`bid', `offer', `put', `call', `advance guaranty', or
`decline guaranty'), or transactions involving contracts of
sale of a commodity for future delivery, traded or executed
on a contract market for the purposes of the Commodity
Exchange Act (7 U.S.C. 1 et seq.).
``(B) Effect on cftc and commodity exchange act.--Nothing
in this paragraph affects the jurisdiction of the Commodity
Futures Trading Commission or the applicability of the
Commodity Exchange Act (7 U.S.C. 1 et seq.) to any
transaction conducted on a contract market under that Act by
an approved insurance provider to offset the approved
insurance provider's risk under a plan or policy of insurance
under this section.''.
SEC. 202. RESEARCH AND DEVELOPMENT CONTRACTING AUTHORITY.
Section 522 of the Federal Crop Insurance Act (as added by
section 201) is amended by adding at the end the following:
``(b) Research and Development Contracting Authority.--
``(1) In general.--Subject to section 523(a), to obtain the
best research and analysis concerning any significant issue
pertaining to crop insurance, including outreach and
education, pilot programs, or the development of a new plan
of insurance, the Corporation may use only the authority
provided by this section and funds made available under
section 516(b)(2)(A) to--
``(A) contract on a competitive basis with qualified
persons;
``(B) reimburse research costs associated with product
development; and
``(C) reimburse costs associated with the reassessment and
modification of plans of insurance.
``(2) Alternative rating methodologies.--
``(A) In general.--The Corporation shall enter into
contracts with qualified persons to study and develop
alternative methodologies for rating plans of insurance for
catastrophic risk protection and higher levels of additional
coverage under subsections (b) and (c), respectively, of
section 508, and rates for the plans of insurance, that take
into account--
``(i) producers that elect not to participate in the
Federal crop insurance program; and
``(ii) producers that elect to obtain only catastrophic
risk protection.
``(B) Priority.--The studies conducted under this paragraph
shall provide priority to agricultural commodities with--
``(i) the largest average acreage nationwide; and
``(ii) the lowest percentage of producers that purchase
additional coverage.
``(C) Funding.--
``(i) In general.--The Corporation shall fund the studies
conducted under this paragraph from funds in the insurance
fund available under section 516(b)(2)(A).
``(ii) Amount.--There are authorized for the studies
conducted under this paragraph--
``(I) in the case of each of fiscal years 2001 and 2002,
$1,000,0000; and
``(II) in the case of each of fiscal years 2003 and 2004,
$250,000.
``(D) Fiscal years.--This paragraph shall apply to each of
fiscal years 2001 through 2004.
``(3) Research and development priorities.--The Corporation
shall establish, as 1 of the highest research and development
priorities of the Corporation, the development of a pasture,
range, and forage program to promote land stewardship.
``(4) Study of multiyear coverage.--
``(A) In general.--The Corporation shall contract with a
qualified person to conduct a study to determine whether
offering plans of insurance that provide coverage for
multiple years would reduce fraud and abuse by persons that
participate in the Federal crop insurance program.
``(B) Report.--Not later than 1 year after the date of
enactment of this section, the Corporation shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the results of the study
conducted under subparagraph (A).''.
SEC. 203. CHOICE OF RISK MANAGEMENT OPTIONS.
(a) In General.--Section 522 of the Federal Crop Insurance
Act (as amended by section 202) is amended by adding at the
end the following:
``(c) Choice of Risk Management Options.--
``(1) Definitions.--In this subsection:
``(A) Agricultural commodity.--The term `agricultural
commodity' means each agricultural commodity specified in
section 518--
``(i) for which catastrophic risk protection or additional
coverage is available under this title, other than solely
this section; and
``(ii) that is selected by the Secretary in a manner that--
``(I) encourages the maximum number of participants in the
program under this subsection;
``(II) provides a mixture of program, specialty, and
regional crops;
``(III) gives consideration to agricultural commodities
with low crop insurance participation rates; and
``(IV) results in not less than 15 percent of payments
being made to producers in States in which--
[[Page S1635]]
``(aa) there is traditionally, and continues to be, a low
level of Federal crop insurance participation and
availability; and
``(bb) the Secretary of Agriculture determines that the
State is underserved by Federal crop insurance.
``(B) Applicable crop.--The term `applicable crop' means
each of the 2002 through 2004 crops of an agricultural
commodity produced by a producer.
``(C) Applicable year.--The term `applicable year' means
the year in which--
``(i) the applicable crop is produced on the farm of a
producer; and
``(ii) the producer elects to receive a risk management
payment or crop insurance premium subsidy under this
subsection.
``(D) Regulated exchange.--The term `regulated exchange'
means a board of trade (as defined in section 1a of the
Commodity Exchange Act (7 U.S.C. 1a)) that is designated as a
contract market under section 2(a)(1)(B) of that Act (7
U.S.C. 2a).
``(2) Risk management payments.--
``(A) Offer.--The Corporation shall offer either to make
either risk management payments or to provide crop insurance
premium subsidies for each of the 2002 through 2004 crops of
an agricultural commodity in accordance with subparagraph
(B).
``(B) Terms.--Not later than the sales closing date for
obtaining coverage for an agricultural commodity for each
applicable year, an eligible producer may elect to receive,
with respect to the agricultural commodity--
``(i) a risk management payment under this subsection; or
``(ii) a crop insurance premium subsidy, including a
catastrophic risk protection subsidy, under this subsection.
``(3) Risk management payment.--
``(A) In general.--In the case of a producer that elects to
receive a risk management payment for an applicable crop of
an agricultural commodity under this subsection, the
Corporation shall make a risk management payment to the
producer that covers the agricultural commodity produced by
the producer for the applicable crop.
``(B) Basis for payment.--The amount of a risk management
payment shall be determined in accordance with paragraph (5).
``(4) Qualifying risk management practices.--To be eligible
for a risk management payment under this subsection for an
applicable crop of an agricultural commodity, a producer
shall obtain or use for the applicable crop a qualifying risk
management practice from at least 2 of the following
categories:
``(A) Crop insurance category.--A producer may purchase
coverage for an agricultural commodity under a private plan
of insurance or a Federal plan of insurance that is not
subsidized.
``(B) Marketing risk category.--
``(i) Future or option.--A producer may enter into a future
or option for an agricultural commodity produced on the farm
of the producer for the applicable crop on a regulated
exchange that is (as determined by the Corporation)--
``(I)(aa) in the case of a future, at least 1 regulated
futures contract (as defined in section 1256(g) of the
Internal Revenue Code of 1986); and
``(bb) in the case of an option, at least 1 listed option
(as defined in section 1256(g) of that Code); and
``(II) a hedging transaction (as defined in section
1256(e)(2) of that Code) involving an agricultural commodity
that is used to reduce production, price, or revenue risk.
``(ii) Agricultural trade option.--A producer may purchase,
on other than a regulated exchange, an agricultural trade
option for the applicable crop of an agricultural commodity
produced on the farm of the producer that (as determined by
the Corporation)--
``(I) provides coverage for at least 10 percent of the
estimated monetary value of the agricultural commodity;
``(II) is an equity option (as defined in section 1256(g)
of the Internal Revenue Code of 1986); and
``(III) is a hedging transaction (as defined in section
1256(e)(2) of that Code) involving an agricultural commodity
that is used to reduce production, price, or revenue risk.
``(iii) Cash forward or other marketing contract.--A
producer may enter into a cash forward or other type of
marketing contract for at least 20 percent of the monetary
value of an agricultural commodity produced on the farm of
the producer for the applicable crop, as determined by the
Secretary.
``(iv) Marketing through cooperatives.--A producer may
market at least 25 percent of an agricultural commodity
produced by the producer through a cooperative that is owned
by agricultural producers.
``(C) Financial risk category.--
``(i) Trust.--A producer may make a deposit of an amount
equal to at least 10 percent of the payments of the producer
for the applicable year under the Agricultural Market
Transition Act (7 U.S.C. 7201 et seq.) into a trust
authorized by statute for eligible farming businesses that
may be established to accept tax deductible contributions.
``(ii) Agricultural marketing and risk management
education.--A producer may attend and complete in the
applicable year an agricultural marketing or risk management
class or seminar approved by the Corporation.
``(iii) Financial risk reduction.--A producer may reduce
farm financial risk by reducing debt in an amount that
reduces leverage or by increasing liquidity, as determined by
the Secretary.
``(iv) Diversification.--A producer may address production
or financial risk by--
``(I) diversifying production on the farm of the producer
by producing at least 1 additional commodity on the farm;
``(II) significantly increasing farm enterprise
diversification in the applicable year, as determined by the
Secretary;
``(III) maintaining an integrated farming system with a
substantial degree of diversification, as determined by the
Secretary; or
``(IV) implementing a transition to organic farming.
``(D) Farm resources risk category.--
``(i) Conservation practices.--A producer may implement new
or existing conservation practices consisting of--
``(I) nutrient management;
``(II) integrated pest management;
``(III) conservation tillage;
``(IV) conservation buffers; or
``(V) other conservation practices that are appropriate for
the farm, as determined by the Secretary.
``(ii) Agricultural conservation management plan.--A
producer may develop a plan to mitigate financial risk
associated with resource conservation through practices
consisting of--
``(I) nutrient management;
``(II) integrated pest management;
``(III) soil erosion control;
``(IV) conservation buffers;
``(V) soil residue management;
``(VI) water quantity or quality management; or
``(VII) other conservation practices that are appropriate
for the farm, as determined by the Secretary.
``(iii) Agricultural resource improvements.--A producer may
invest in the improvement or development of 1 or more of the
following capital land improvements on the farm of the
producer to reduce production risk:
``(I) Irrigation management.
``(II) Watershed management structures.
``(III) Planting trees for windbreaks or water quality.
``(IV) Soil quality management options.
``(V) Animal waste management structures.
``(VI) Other land improvements, as determined by the
Secretary.
``(E) Other category.--A producer may engage in any other
risk management practice approved by the Secretary.
``(5) Determination of risk management payment.--
``(A) In general.--The Secretary shall determine the amount
of a risk management payment for an agricultural commodity
produced on the farm of a producer for an applicable crop
taking into consideration the expenditure by the producer on
the risk management practices obtained or used by the
producer.
``(B) Maximum payment.--No payment shall be made in excess
of an amount equal to the national average of the previous
year's liability for all catastrophic risk protection
policies.
``(C) Funding.--
``(i) In general.--Subject to clause (ii), there are
authorized to be expended to carry out this subsection from
the insurance fund under section 516(a)(2)(C) not more than
$500,000,000 for the period of fiscal years 2002 through
2004.
``(ii) Annual limitation.--Not more than $200,000,000 may
be expended in any fiscal year to carry out this subsection.
``(6) Administrative provisions.--
``(A) Certification.--A producer shall submit to the crop
insurance agent or approved insurance provider a risk
management practices form that certifies, in accordance with
standards prescribed by the Secretary, the qualifying risk
management practices and associated costs that were obtained
or used by the producer during the applicable year.
``(B) Compliance.--The Corporation may perform random
audits of producers that obtain a risk management payment to
ensure that the producers obtained or used the qualifying
risk management practices described in the form.
``(C) Violation of terms of risk management payment.--If a
producer has accepted a risk management payment or crop
insurance premium subsidy for an applicable year and the
producer fails to comply with subparagraph (A), or to carry
out a qualifying risk management option elected by the
producer under paragraph (4), with respect to the applicable
year, the producer--
``(i) shall refund to the Corporation an amount equal to
the risk management payment; and
``(ii) may be subject to debarment from loans and payments
for a period of not to exceed 5 years, as provided in section
506(n)(3)(B).
``(D) Assignment and sharing of benefits.--
``(i) Assignment of benefits.--Assignment of a benefit
provided under this subsection shall be carried out as
provided in section 8(g) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(g)).
``(ii) Notice.--The producer making the assignment, or the
assignee, shall provide the Corporation with notice, in such
manner as the Corporation may require, of any assignment.
``(iii) Sharing of benefits.--The Corporation shall provide
for the sharing of benefits under this subsection among all
producers that are at risk in the production of an applicable
crop on a fair and equitable basis.
``(7) Fiscal years.--This subsection shall apply to each of
fiscal years 2002 through 2004.''.
(b) Authorization of Appropriations.--Section 516(a) of the
Federal Crop Insurance Act (7 U.S.C. 1516(a)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Discretionary expenses.--There are authorized to be
appropriated for fiscal year 1999 and each subsequent fiscal
year such sums as are necessary to cover--
``(A) the salaries and expenses of the Corporation; and
``(B) the expenses of approved insurance providers incurred
in carrying out section 522(c).''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``and'' at the end;
[[Page S1636]]
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) risk management payments authorized under section
522(c) in an amount not to exceed $500,000,000 for the period
of fiscal years 2002 through 2004, of which not more than
$200,000,000 may be expended for any 1 fiscal year.''.
SEC. 204. OPTIONS PILOT PROGRAM.
(a) In General.--Section 191 of the Agricultural Market
Transition Act (7 U.S.C. 7331) is amended--
(1) in the first sentence of subsection (a), by striking
``2002'' and inserting ``2004'';
(2) in subsection (b)--
(A) in the first sentence, by striking ``100 counties,
except that not more than 6'' and inserting ``300 counties,
except that not more than 25''; and
(B) in the second sentence, by striking ``2002'' and
inserting ``2004''; and
(3) in subsection (c)(2), by inserting before the semicolon
the following: ``during any calendar year in which a county
in which the farm of the producer is located is authorized to
operate the pilot program''.
(b) Funding.--From amounts made available under section
516(a)(2)(C) of the Federal Crop Insurance Act (7 U.S.C.
1516(a)(2)(C)) (as added by section 203(b)(2)(C)) for the
choice of risk management options pilot program, the Federal
Crop Insurance Corporation shall transfer to the Secretary of
Agriculture to carry out the amendments made by subsection
(a) $27,000,000 for each of fiscal years 2002 through 2004.
SEC. 205. RISK MANAGEMENT INNOVATION AND COMPETITION PILOT
PROGRAM.
Section 522 of the Federal Crop Insurance Act (as amended
by section 203(a)) is amended by adding at the end the
following:
``(d) Risk Management Innovation and Competition.--
``(1) Purpose.--The purpose of the pilot program
established under this subsection is to determine what
incentives are necessary to encourage approved insurance
providers to--
``(A) develop and offer innovative risk management products
to producers;
``(B) rate premiums for risk management products; and
``(C) competitively market the risk management products.
``(2) Establishment.--
``(A) In general.--The Corporation shall establish a pilot
program under which approved insurance providers may propose
for approval by the Board risk management products
involving--
``(i) loss of yield or revenue insurance coverage for 1 or
more commodities (including commodities that are not
insurable under this title as of the date of enactment of
this section, but excluding livestock);
``(ii) rates of premium for the risk management product; or
``(iii) underwriting systems for the risk management
product.
``(B) Submission to board.--The Board shall review and
approve a risk management product before the risk management
product may be marketed under this subsection.
``(C) Determination by board.--The Board may approve a risk
management product for subsidy and reinsurance under this
title if the Board determines that--
``(i) the interests of producers of commodities are
adequately protected by the risk management product;
``(ii) premium rates charged to producers are actuarially
appropriate (within the meaning of section 508(h)(3)(E));
``(iii) the underwriting system of the risk management
product is appropriate and adequate;
``(iv) the proposed risk management product is reinsured
under this title, is reinsured through private reinsurance,
or is self-insured;
``(v) the size of the proposed pilot area is adequate;
``(vi) insurance protection against the risk covered by the
proposed risk management product is not generally available
from private plans of insurance that are not covered by this
title; and
``(vii) such other requirements of this title as the Board
determines should apply to the risk management product are
met.
``(D) Confidentiality.--
``(i) In general.--All information concerning a risk
management product shall be considered to be confidential
commercial or financial information for the purposes of
section 552(b)(4) of title 5, United States Code.
``(ii) Standard.--If information concerning a risk
management product of an approved insurance provider could be
withheld by the Secretary under the standard for privileged
or confidential information pertaining to trade secrets and
commercial or financial information under section 552(b)(4)
of title 5, United States Code, the information shall not be
released to the public.
``(3) Marketing of risk management products.--
``(A) Definition of original provider.--In this paragraph,
the term `original provider' means an approved insurance
provider that submits a risk management product to the Board
for approval under paragraph (2).
``(B) Authority to market.--If the Board approves a risk
management product under paragraph (2), subject to
subparagraph (C), only the original provider may market the
risk management product.
``(C) Fee.--
``(i) In general.--An approved insurance provider (other
than the original provider) that desires to market a risk
management product shall pay a fee to the original provider
for the right to market the risk management product.
``(ii) Amount.--The original provider shall determine the
amount of the fee under clause (i).''.
SEC. 206. EDUCATION AND RESEARCH.
Section 522 of the Federal Crop Insurance Act (as amended
by section 205) is amended by adding at the end the
following:
``(e) Education and Research.--
``(1) In general.--The Corporation shall establish the
programs described in paragraphs (2) and (3), respectively,
for the 2001-2004 fiscal years, not to exceed the funding
limitations established in paragraph (4).
``(2) Education and information.--The Corporation shall
establish a program of education and information for States
in which--
``(A) there is traditionally, and continues to be, a low
level of Federal crop insurance participation and
availability; and
``(B) the Secretary of Agriculture determines that the
State is underserved by Federal crop insurance.
``(3) Research and development.--The Corporation shall
establish a program of research and development to develop
new approaches to increasing participation in States in
which--
``(A) there is traditionally, and continues to be, a low
level of Federal crop insurance participation and
availability; and
``(B) the Secretary of Agriculture determines that the
State is underserved by Federal crop insurance.
``(4) Funding.--The following amounts shall be transferred
from funds made available in section 516(a)(2)(C) for the
Choice of Risk Management Options pilot program--
``(A) for the Education, Information and Insurance Provider
Recruitmant program in paragraph (2), $10,000,000 for each of
fiscal years 2001 through 2004.
``(B) for the Research and Development program in paragraph
(3), $5,000,000 for each of fiscal years 2001 through
2004.''.
SEC. 207. CONFORMING AMENDMENTS.
(a) Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended--
(1) by striking subsection (m); and
(2) by redesignating subsection (n) as subsection (m).
(b) Section 516(b)(2)(A) of the Federal Crop Insurance Act
(7 U.S.C. 1516(b)(2)(A)) is amended by striking ``exceed
$3,500,000 for each fiscal year.'' and inserting ``exceed--
``(i) in the case of each of fiscal years 2001 and 2002,
$4,500,000;
``(ii) in the case of each of fiscal years 2003 and 2004,
$3,750,000; and
``(iii) in the case of each subsequent fiscal year,
$3,500,000.''.
(c) Section 518 of the Federal Crop Insurance Act (7 U.S.C.
1518) is amended by striking ``subsection (a) or (m) of
section 508 of this title'' and inserting ``section 508(a),
522, or 523''.
TITLE III--ADMINISTRATION
SEC. 301. BOARD OF DIRECTORS OF CORPORATION.
(a) In General.--Section 505 of the Federal Crop Insurance
Act (7 U.S.C. 1505) is amended by striking subsection (a) and
inserting the following:
``(a) Board of Directors.--
``(1) In general.--The management of the Corporation shall
be vested in a Board of Directors, subject to the general
supervision of the Secretary.
``(2) Composition.--The Board shall consist of--
``(A) 4 members who are active agricultural producers with
or without crop insurance, with 1 member appointed from each
of the 4 regions of the United States (as determined by the
Secretary);
``(B) 1 member who is active in the crop insurance
business;
``(C) 1 member who is active in the reinsurance business;
``(D) the Under Secretary for Farm and Foreign Agricultural
Services;
``(E) the Under Secretary for Rural Development; and
``(F) the Chief Economist of the Department of Agriculture.
``(3) Appointment and terms of private sector members.--The
members of the Board described in subparagraphs (A), (B), and
(C) of paragraph (2)--
``(A) shall be appointed by, and hold office at the
pleasure of, the Secretary;
``(B) shall not be otherwise employed by the Federal
Government;
``(C) shall be appointed to staggered 4-year terms, as
determined by the Secretary; and
``(D) shall serve not more than 2 consecutive terms.
``(4) Chairperson.--The Board shall select a member of the
Board described in subparagraph (A), (B), or (C) of paragraph
(2) to serve as Chairperson of the Board.
``(5) Office of risk management.--The Office of Risk
Management shall provide assistance to the Board in
developing, reviewing, and recommending--
``(A) new plans of insurance and pilot projects under this
title that are proposed by the Office or by a private
insurance provider;
``(B) terms of the Standard Reinsurance Agreement;
``(C) rates for plans of insurance under this title; and
``(D) other issues involved in the administration of
Federal crop insurance, as requested by the Board.
``(6) Executive director; staff.--
``(A) Executive director.--An executive director appointed
by the Secretary, with the concurrence of the Board, shall--
``(i) assist the Board, as provided in subparagraph (C);
and
``(ii) report to the Secretary.
``(B) Staff.--
``(i) In general.--A staff of 4 individuals appointed by
the Executive Director shall report to the Executive
Director.
[[Page S1637]]
``(ii) Qualifications.--An individual described in clause
(i) (except the Executive Director) shall be knowledgeable
and experienced in quantitative mathematics and actuarial
rating.
``(C) Functions.--The Executive Director and staff
appointed under this paragraph shall--
``(i) assist the Board in reviewing and approving policies
and materials with respect to plans of insurance or other
materials authorized or submitted under section 508, 522, or
523;
``(ii) provide at least monthly reports to the Board on
crop insurance issues, which shall be based on comments
received from producers, approved insurance providers, and
other sources that the Executive Director and staff consider
appropriate;
``(iii) review policies and materials with respect to--
``(I) subsidized plans of insurance authorized under
section 508; and
``(II) unsubsidized plans of insurance submitted to the
Board under section 508(h);
``(iv) make recommendations to the Board with respect to
approval of the policies and materials, including
recommendations with respect to the disapproval of any
policies and materials that contain terms or conditions that
promote fraud;
``(v) make recommendations to the Board to encourage
cooperation between United States attorneys, the Corporation,
and approved insurance providers to minimize fraud in
connection with an insurance plan or policy under this title;
``(vi) review and make recommendations to the Board with
respect to methodologies for rating plans of insurance under
this title; and
``(vii) perform such other functions as the Board considers
appropriate.
``(D) Funding.--
``(i) Insurance fund.--From amounts in the insurance fund
under section 516(c)(1), effective for fiscal year 2001,
$500,000 shall be available to pay the salaries and expenses
of the Executive Director and staff appointed under this
paragraph.
``(ii) Salaries and expenses.--Subject to the availability
of appropriations, the Risk Management Agency shall transfer
$500,000 for fiscal year 2001, and $1,000,000 for each
subsequent fiscal year, at the beginning of the fiscal year
to the Executive Director for the salaries and expenses of
the Executive Director and staff appointed under this
paragraph.''.
(b) Submission of Policies and Materials to Board.--Section
508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h))
is amended--
(1) by striking paragraphs (1) through (4) and inserting
the following:
``(1) In general.--In addition to any standard forms or
policies that the Board may require be made available to
producers under subsection (c), a person may propose to the
Board--
``(A) loss of yield or revenue insurance coverage on an
individual, area, or a combination of individual and area
basis, for 1 or more agricultural commodities;
``(B) rates of premium for a proposed or existing policy;
and
``(C) underwriting systems for a proposed or existing
policy.
``(2) Submission of proposals.--
``(A) In general.--Subject to subparagraph (B) and
paragraph (3), a proposal submitted to the Board under this
subsection may be prepared without regard to the limitations
of this title, including limitations--
``(i) concerning actuarial soundness;
``(ii) concerning levels of coverage;
``(iii) concerning rates of premium;
``(iv) that the price level for coverage for each insured
commodity must equal the expected market price for the
commodity as established by the Board; and
``(v) that an approved insurance provider shall provide
coverage under a policy throughout a State for all
commodities if the approved insurance provider elects to
provide any coverage in the State.
``(B) Maximum allowable subsidy.--The payment by the
Corporation of a portion of the premium of the policy
approved by the Board under this subsection may not exceed
the amount that would otherwise be authorized under
subsection (e).
``(3) Standards.--
``(A) In general.--The Board shall approve a proposal under
this subsection for subsidy and reinsurance if the Board
finds that the proposal adequately ensures that--
``(i) the interests of producers of commodities are
adequately protected;
``(ii) premiums charged to producers are actuarially
appropriate;
``(iii) the underwriting system included in the proposal is
appropriate and adequate; and
``(iv) the proposal is reinsured under this title, is
reinsured through private reinsurance, or is self-insured;
``(B) Rates of premium.--A proposed rate of premium
(including the part of premium paid by the Corporation) shall
be considered to be actuarially appropriate if the rate is
sufficient to cover projected losses and expenses, a
reasonable reserve, and the amount of operating and
administrative expenses of the approved insurance provider
determined under subsection (d)(2).
``(C) Proposed underwriting plans.--A proposed underwriting
plan--
``(i) may be on an area or individual farm basis; and
``(ii) shall, at a minimum, specify factors such as yield
history for the farm or region, soils and resource quality
for the farm, and farm production practices.
``(D) Reinsurance.--
``(i) Federal reinsurance.--The Corporation shall, to the
maximum extent practicable, make reinsurance available to an
approved insurance provider under this subsection.
``(ii) Private or federal reinsurance.--An approved
insurance provider may--
``(I) obtain private reinsurance for the proposal;
``(II) obtain reinsurance for the proposal under this
title; or
``(III) self-insure the proposal.
``(E) Actuarially appropriate.--The Board shall prescribe
standards for determining whether premium rates are
actuarially appropriate considering the risk inherent in the
proposed product.
``(4) Review and approval by board.--With respect to any
policy or other material submitted to the Board after October
1, 2000, under this subsection, the following guidelines
shall apply:
``(A) In general.--The policy or other material shall be
reviewed by the Board in accordance with subparagraphs (C)
and (D).
``(B) Multiple insurance agreements.--The Corporation may
enter into more than 1 reinsurance agreement simultaneously
with the approved insurance provider to facilitate the
offering of the new policy.
``(C) Procedures for submission and review.--The
Corporation shall promulgate regulations that establish
procedures for the submission and review by the Board of
proposals submitted to the Board under this subsection,
including--
``(i) the standards applicable to a proposal under
paragraph (3) (including documentation required to establish
that a proposal satisfies the standards);
``(ii) procedures concerning the time limitations provided
under this paragraph; and
``(iii) procedures that provide an applicant the
opportunity to present the proposal to the Board in person.
``(D) Review by the board.--
``(i) Period for approval.--Notwithstanding any other
provision of law, a proposal submitted to the Board shall be
considered to be approved unless the Board disapproves the
proposal by the date that is 60 business days after the later
of--
``(I) the date of submission of the completed proposal to
the Board; or
``(II) the date on which the applicant provides to the
Board notice of intent to modify the proposal under clause
(ii)(IV).
``(ii) Notice of disapproval.--
``(I) In general.--Not later than 15 days before the date
on which the Board intends to announce disapproval of a
proposal, the Board shall provide the applicant, by
registered mail, with notice of intent to disapprove the
proposal.
``(II) Right to modify.--An applicant that is notified
under subclause (I) may modify the proposal.
``(III) Original application.--For the purposes of this
clause, any modified proposal shall be considered to be an
original proposal.
``(IV) Notice of intent to modify.--Not later than 5
business days after receipt of a notice under subclause (I),
an applicant that intends to modify the proposal shall so
notify the Board.
``(E) Timing.--In establishing procedures under this
subsection, the Board shall prescribe a reasonable deadline
for the submission of proposals that approved insurance
providers expect to market during the reinsurance year.
``(F) Confidentiality.--
``(i) In general.--A proposal submitted to the Board under
this subsection (including any information generated from the
proposal) shall be considered to be confidential commercial
or financial information for the purposes of section
552(b)(4) of title 5, United States Code.
``(ii) Standard of confidentiality.--Except as provided in
clauses (iii) and (iv), if information concerning a proposal
could be withheld by the Secretary under the standard for
privileged or confidential information pertaining to trade
secrets and commercial or financial information under section
552(b)(4) of title 5, United States Code, the information
shall not be released to the public.
``(iii) Exception for purchasers of plans of insurance.--
Clause (ii) shall not apply in the case of an approved
insurance provider that elects to pay a fee to sell a plan of
insurance developed by another provider under paragraph (5).
``(iv) Approved proposals.--In lieu of publication in the
Federal Register, a general summary of the content of the
proposal shall be made available to other approved insurance
providers at the time at which the proposal is approved by
the Board, consisting of a description of--
``(I) the identity of the approved insurance provider;
``(II) the coverage provided; and
``(III) the area to be covered by the approved proposal.'';
(2) by striking paragraphs (6), (8), and (10); and
(3) by redesignating paragraphs (7) and (9) as paragraphs
(6) and (7), respectively.
(c) Conforming Amendments.--Section 516(b)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) is amended--
(1) in subparagraph (B), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(D) the salaries and expenses of the Executive Director
and staff appointed under section 505(a)(6) for fiscal year
2001, but not to exceed $500,000 for the fiscal year; and''.
SEC. 302. GOOD FARMING PRACTICES.
Section 508(a)(3) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)(3)) (as amended by section 103(d)) is amended
in subparagraph (A)(iii) by inserting after ``good farming
practices'' the following: ``, including scientifically sound
sustainable and organic farming practices''.
SEC. 303. SANCTIONS FOR PROGRAM NONCOMPLIANCE AND FRAUD.
(a) In General.--Section 506 of the Federal Crop Insurance
Act (7 U.S.C. 1506) is amended
[[Page S1638]]
by striking subsection (n) and inserting the following:
``(n) Sanctions for Program Noncompliance and Fraud.--
``(1) False information.--A producer, agent, loss adjuster,
approved insurance provider, or other person that willfully
and intentionally provides any false or inaccurate
information to the Corporation or to an approved insurance
provider with respect to a policy or plan of insurance under
this title may, after notice and an opportunity for a hearing
on the record, be subject to 1 or more of the sanctions
described in paragraph (3).
``(2) Compliance.--A person may, after notice and an
opportunity for a hearing on the record, be subject to 1 or
more of the sanctions described in paragraph (3) if the
person is--
``(A) a producer, agent, loss adjuster, approved insurance
provider, or other person that willfully and intentionally
fails to comply with a requirement of the Corporation; or
``(B) an agent, loss adjuster, approved insurance provider,
or other person (other than a producer) that willfully and
intentionally fails to comply with a requirement of the
Standard Reinsurance Agreement.
``(3) Authorized sanctions.--If the Secretary determines
that a person covered by this subsection has committed a
material violation under paragraph (1) or (2), the following
sanctions may be imposed:
``(A) Civil fines.--A civil fine may be imposed for each
violation in an amount not to exceed the greater of--
``(i) the amount of the pecuniary gain obtained as a result
of the false or inaccurate information provided or the
noncompliance with a requirement of this title; or
``(ii) $10,000.
``(B) Debarment.--
``(i) Producers.--In the case of a violation committed by a
producer, the producer may be disqualified for a period of up
to 5 years from receiving any monetary or nonmonetary benefit
provided under--
``(I) this title;
``(II) the Agricultural Market Transition Act (7 U.S.C.
7201 et seq.), including the noninsured crop disaster
assistance program under section 196 of that Act (7 U.S.C.
7333);
``(III) the Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.);
``(IV) the Commodity Credit Corporation Charter Act (15
U.S.C. 714 et seq.);
``(V) the Agricultural Adjustment Act of 1938 (7 U.S.C.
1281 et seq.);
``(VI) title XII of the Food Security Act of 1985 (16
U.S.C. 3801 et seq.);
``(VII) the Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.); and
``(VIII) any law that provides assistance to a producer of
an agricultural commodity affected by a crop loss or a
decline in the prices of agricultural commodities.
``(ii) Other persons.--In the case of a violation committed
by an agent, loss adjuster, approved insurance provider, or
other person (other than a producer), the violator may be
disqualified for a period of up to 5 years from participating
in any program, or receiving any benefit, under this title.
``(4) Assessment of sanction.--The Secretary shall consider
the gravity of the violation of the person covered by this
subsection in determining--
``(A) whether to impose a sanction under this subsection;
and
``(B) the amount of the sanction to be imposed.
``(5) Disclosure of sanctions.--Each policy or plan of
insurance under this title shall provide notice about the
sanctions prescribed under paragraph (3) for willfully and
intentionally--
``(A) providing false or inaccurate information to the
Corporation or to an approved insurance provider; or
``(B) failing to comply with a requirement of the
Corporation or the Standard Reinsurance Agreement.
``(6) Insurance fund.--Any funds collected under this
subsection shall be deposited into the insurance fund under
section 516(c)(1).''.
(b) Conforming Amendments.--Section 516(c) of the Federal
Crop Insurance Act (7 U.S.C. 1516(c)) is amended by striking
paragraph (1) and inserting the following:
``(1) In general.--There is established the insurance fund,
which shall include (to remain available without fiscal year
limitation)--
``(A) premium income;
``(B) amounts made available under subsection (a)(2); and
``(C) civil fines collected under section 506(n)(3)(A).''.
SEC. 304. OVERSIGHT OF AGENTS AND LOSS ADJUSTERS.
Section 506(q) of the Federal Crop Insurance Act (7 U.S.C.
1506(q)) is amended by adding at the end the following:
``(3) Oversight of agents and loss adjusters.--The
Corporation shall--
``(A) develop procedures for an annual review by an
approved insurance provider of the performance of each agent
and loss adjuster used by the approved insurance provider;
``(B) oversee the annual review conducted by each approved
insurance provider; and
``(C) consult with each approved insurance provider
regarding any remedial action that is determined necessary as
a result of the annual review of an agent or loss adjuster.
``(4) Compliance reports.--Not later than the end of each
fiscal year, the Corporation shall submit, to the Committee
on Agriculture of the House of Representatives, the Committee
on Agriculture, Nutrition, and Forestry of the Senate, and
the Board, a report concerning compliance by approved
insurance providers, agents, and loss adjusters with this
title, including any recommendations for legislative or
administrative changes that could further improve
compliance.''.
SEC. 305. ADEQUATE COVERAGE FOR STATES.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) (as amended by section 107) is amended by adding at
the end the following:
``(9) Adequate coverage for states.--
``(A) Definition of adequately served.--In this paragraph,
the term `adequately served' means having a participation
rate that is at least 50 percent of the national average
participation rate.
``(B) Review.--The Board shall review the plans of
insurance that are offered by approved insurance providers
under this title to determine if each State is adequately
served by the plans of insurance.
``(C) Report.--
``(i) In general.--Not later than 30 days after completion
of the review under subparagraph (B), the Board shall submit
to Congress a report on the results of the review.
``(ii) Recommendations.--The report shall include
recommendations to increase participation in States that are
not adequately served by the plans of insurance.''.
SEC. 306. RECORDS AND REPORTING.
(a) Condition of Obtaining Coverage.--Section 508(f)(3)(A)
of the Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)(A)) is
amended by striking ``provide,'' and all that follows through
``sought'' and inserting ``provide annually records
acceptable to the Secretary regarding crop acreage, acreage
yields, and production for each agricultural commodity
insured under this title''.
(b) Coordination and Use of Records and Reports.--Section
506(h) of the Federal Crop Insurance Act (7 U.S.C. 1506(h))
is amended--
(1) by striking ``The Corporation'' and inserting the
following:
``(1) In general.--The Corporation''; and
(2) by adding at the end the following:
``(2) Coordination and use of records and reports.--
``(A) Coordination.--The Secretary shall ensure that
recordkeeping and reporting requirements under this title and
section 196 of the Agricultural Market Transition Act (7
U.S.C. 7333) are coordinated by the Corporation and the Farm
Service Agency--
``(i) to avoid duplication of records and reports;
``(ii) to streamline procedures involved with the
submission of records and reports; and
``(iii) to enhance the accuracy of records and reports.
``(B) Use.--Records submitted under this title and section
196 of the Agricultural Market Transition Act (7 U.S.C. 7333)
shall be available to agencies and local offices of the
Department, appropriate State and Federal agencies and
divisions, and approved insurance providers for use in
carrying out this title, that section, and other agricultural
programs and related responsibilities.''.
SEC. 307. FEES FOR PLANS OF INSURANCE.
(a) In General.--Section 508(h) of the Federal Crop
Insurance Act (7 U.S.C. 1508(h)) is amended by striking
paragraph (5) and inserting the following:
``(5) Fees for plans of insurance.--
``(A) Fees for existing plans of insurance.--
``(i) In general.--Effective beginning with the 2001
reinsurance year, if an approved insurance provider elects to
sell a plan of insurance that was developed by another
approved insurance provider and the plan of insurance was
approved by the Board before January 1, 2000, the approved
insurance provider that developed the plan of insurance shall
have the right to receive a fee from the approved insurance
provider that elects to sell the plan of insurance.
``(ii) Amount.--The amount of the fee that is payable by an
approved insurance provider for a plan of insurance under
clause (i) shall be--
``(I) for each of the first 5 crop years that the plan is
sold, $2.00 for each policy under the plan that is sold by
the approved insurance provider;
``(II) for each of the next 3 crop years that the plan is
sold, $1.00 for each policy under the plan that is sold by
the approved insurance provider; and
``(III) for each crop year thereafter that the plan is
sold, 50 cents for each policy under the plan that is sold by
the approved insurance provider.
``(B) Fees for new plans of insurance.--
``(i) In general.--Effective beginning with the 2001
reinsurance year, if an approved insurance provider elects to
sell a plan of insurance that was developed by another
approved insurance provider, the plan of insurance was
approved by the Board under this subsection on or after
January 1, 2000, and the plan of insurance was not available
at the time at which the plan of insurance was approved by
the Board, the approved insurance provider that developed the
plan of insurance shall have the right to receive a fee from
the approved insurance provider that elects to sell the plan
of insurance.
``(ii) Amount.--
``(I) In general.--Subject to subclause (II), the amount of
the fee that is payable by an approved insurance provider for
a plan of insurance under clause (i) shall be an amount that
is--
``(aa) determined by the approved insurance provider that
developed the plan; and
``(bb) approved by the Board.
``(II) Approval.--The Board shall not approve the amount of
a fee under clause (i) if the amount of the fee unnecessarily
inhibits the use of the plan of insurance, as determined by
the Board.
``(C) Payments.--The Corporation shall annually--
``(i) collect from an approved insurance provider the
amount of any fees that are payable by the approved insurance
provider under subparagraphs (A) and (B); and
[[Page S1639]]
``(ii) credit any fees that are payable to an approved
insurance provider under subparagraphs (A) and (B).
``(D) Exceptions.--In the case of a policy developed by an
approved insurance provider that does not conduct business in
a State--
``(i) the approved policy may be marketed in the State by
another approved insurance provider if the approved insurance
provider marketing the policy pays any fee for marketing the
policy imposed by the developing provider; and
``(ii) the developing provider shall not deny payment of a
fee by another provider to maintain full marketing rights of
the approved policy.''.
(b) Funding.--Section 516 of the Federal Crop Insurance Act
(7 U.S.C. 1516) (as amended by sections 301(c) and 303(b)) is
amended--
(1) in subsection (b)(1), by adding at the end the
following:
``(E) payment of fees in accordance with section
508(h)(5)(C).''; and
(2) in subsection (c)(1)(A), by inserting ``and fees''
after ``premium income''.
SEC. 308. LIMITATION ON DOUBLE INSURANCE.
Subsection (m) of section 508 of the Federal Crop Insurance
Act (7 U.S.C. 1508) (as redesignated by section 207(a)(2)) is
amended by adding at the end the following:
``(3) Limitation on double insurance.--The Corporation may
offer plans of insurance or reinsurance for only 1
agricultural commodity produced on specific acreage during a
crop year, unless--
``(A) there is an established practice of double-cropping
in an area, as determined by the Corporation;
``(B) the additional plan of insurance is offered with
respect to an agricultural commodity that is customarily
double-cropped in the area; and
``(C) the producer has a history of double cropping or the
specific acreage has historically been double-cropped.''.
SEC. 309. SPECIALTY CROPS.
(a) In General.--The Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) (as amended by sections 201 through 203) is
amended by adding at the end the following:
``SEC. 523. SPECIALTY CROPS.
``(a) Research Regarding the Development of New or Revised
Crop Insurance Policies.--To encourage the development of new
or revised crop insurance policies and other materials for
specialty crops by qualified private entities, and the
submission of those insurance policies and other materials to
the Corporation under section 508(h), the Specialty Crops
Coordinator may--
``(1) make grants on a competitive basis for the research
and development of plans of insurance for underserved
specialty crops;
``(2) reimburse research costs associated with product
development; and
``(3) enter into contracts on a competitive basis for the
research and development of plans of insurance for
underserved specialty crops.
``(b) Partnerships for Development of Risk Management Tools
for Specialty Crops.--
``(1) Purpose.--The purpose of this subsection is to
authorize the Specialty Crops Coordinator, on behalf of the
Corporation, to enter into partnerships with qualified public
and private entities for the purpose of increasing the
availability of risk management tools for producers of
specialty crops.
``(2) Authority.--
``(A) In general.--For each of fiscal years 2001 through
2004, the Corporation may use not more than $20,000,000 from
funds in the insurance fund under section 516(c)(1) to enter
into partnerships with the Cooperative State Research,
Education, and Extension Service, the Agricultural Research
Service, the National Oceanic and Atmospheric Administration,
and other appropriate public and private entities with
demonstrated capabilities in developing and implementing risk
management and marketing options for specialty crops.
``(B) Exclusion.--Amounts necessary to carry out
subparagraph (A) shall not be counted toward the limitation
on research and development expenses established in section
516(b)(2)(A).
``(3) Objectives.--The Corporation may enter into a
partnership under this subsection to--
``(A) enhance the notice, and timeliness of notice of
weather conditions, that could negatively affect specialty
crop yields, quality, and final product use in order to allow
producers to take preventive actions to increase end-product
profitability and marketability and to reduce the possibility
of crop insurance claims;
``(B) develop a multifaceted approach to pest management to
decrease inputs, decrease the development of pest resistance,
and increase the effectiveness of pest prevention
applications;
``(C) develop a multifaceted approach to fertilization to
decrease inputs, decrease excessive nutrient loading to the
environment, and increase application efficiency;
``(D) develop or improve techniques for planning, breeding,
growing, maintaining, harvesting, storage, and shipping that
will address quality and quantity challenges for specialty
crops and livestock associated with year-to-year and regional
variations;
``(E) provide assistance to State foresters or equivalent
officials for the prescribed use of burning on private forest
land for the prevention, control, and suppression of fire;
and
``(F) develop other risk management tools that specialty
crop producers can use to further increase their economic and
production stability.
``(c) Time Periods for Purchase of Coverage for Specialty
Crops.--
``(1) Sales closing date.--The sales closing date for
obtaining coverage for a specialty crop under this title may
not expire before the end of the 120-day period beginning on
the date of the final release of materials for policies from
the Risk Management Agency and the Specialty Crops
Coordinator.
``(2) Purchase during insurance period.--A producer of a
specialty crop may purchase new coverage or increase coverage
levels for the specialty crop at any time during the
insurance period, subject to a 30-day waiting period and an
inspection by the insurance provider to verify acceptability
by the insurance provider, if the Corporation determines that
the risk associated with the crop can be adequately rated.
``(d) Studies of New Specialty Crop Insurance Policies.--
``(1) In general.--The Corporation and the Specialty Crops
Coordinator authorized under section 507(g) shall jointly
conduct studies of the feasibility of developing new
insurance policies for specialty crops, including policies
based on the cost of production or adjusted gross income,
quality-based policies, or an intermediate program with a
higher coverage and cost than the catastrophic risk
protection offered on the date of enactment of this section.
``(2) Submission of results.--Not later than 1 year after
the date of enactment of this section, and annually
thereafter, the Corporation and the Specialty Crops
Coordinator shall submit to Congress a report containing the
results of the studies required under this subsection.
``(e) Fiscal Years.--Subsections (b) and (c) shall apply to
each of fiscal years 2001 through 2004.''.
(b) Report on Coverage of New and Specialty Crops and
Method for Provision of Catastrophic Risk Protection.--Not
later than 180 days after the date of enactment of this Act,
the Secretary of Agriculture shall submit to the President,
the Committee on Agriculture of the House of Representatives,
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report assessing--
(1)(A) the progress made by the Department of Agriculture
in expanding crop insurance coverage for new and specialty
crops; and
(B) the plans of the Department to continue to expand
coverage for additional crops; and
(2)(A) whether provision of catastrophic risk protection by
private sector insurance providers--
(i) has resulted in a uniform quality of risk protection
services in all regions of the United States; and
(ii) has fulfilled the goal of increased participation in
the Federal crop insurance program, particularly in States
with traditionally low crop insurance participation rates and
States with a high proportion of specialty crops; and
(B) whether, particularly in States described in
subparagraph (A)(ii), the Secretary should resume direct
provision of catastrophic risk protection and performance of
loss adjustment functions through local offices of the
Department.
SEC. 310. FEDERAL CROP INSURANCE IMPROVEMENT COMMISSION.
Section 515 of the Federal Crop Insurance Act (7 U.S.C.
1515) is amended to read as follows:
``SEC. 515. FEDERAL CROP INSURANCE IMPROVEMENT COMMISSION.
``(a) Definition.--In this section the term `Commission'
means the Federal Crop Insurance Improvement Commission
established by subsection (b).
``(b) Establishment of Commission.--There is established a
Commission to be known as the `Federal Crop Insurance
Improvement Commission'.
``(c) Membership.--
``(1) In general.--The Commission shall be composed of the
following 15 members:
``(A) The Under Secretary for Farm and Foreign Agricultural
Services of the Department.
``(B) The manager of the Corporation.
``(C) The Chief Economist of the Department or a person
appointed by the Chief Economist.
``(D) An employee of the Office of Management and Budget,
appointed by the Director of the Office of Management and
Budget.
``(E) A representative of the National Association of
Insurance Commissioners, experienced in insurance regulation,
appointed by the Secretary.
``(F) Representatives of 4 approved insurance providers or
related organizations that provide advisory or analytical
support to the crop insurance industry, appointed by the
Secretary.
``(G) 2 agricultural economists from academia, appointed by
the Secretary.
``(H) 4 representatives of major farm organizations and
farmer-owned cooperatives, appointed by the Secretary.
``(2) Time of appointment.--The members of the Commission
shall be appointed not later than 60 days after the date of
enactment of the Risk Management for the 21st Century Act.
``(3) Term.--A member of the Commission shall serve for the
life of the Commission.
``(d) Duties.--The Commission shall review and make
recommendations concerning the following issues:
``(1) The extent to which approved insurance providers
should bear the risk of loss for federally subsidized crop
insurance.
``(2) Whether the Corporation should--
``(A) continue to provide financial assistance for the
benefit of agricultural producers by reinsuring coverage
written by approved insurance providers; or
``(B) provide assistance in another form, such as by acting
as an excess insurer.
``(3) The extent to which development of new insurance
products should be undertaken by the private sector, and how
to encourage such development.
``(4) How to focus research and development of new
insurance products to include the development of--
``(A) new types of products such as combined area and yield
and whole farm revenue coverages; and
``(B) insurance products for specialty crops.
[[Page S1640]]
``(5) The use by the Corporation of private sector
resources under section 507(c).
``(6) The progress of the Corporation in reducing
administrative and operating costs of approved insurance
providers under section 508(k)(5).
``(7) The identification of methods, and of organizational,
statutory, and structural changes, to enhance and improve--
``(A) delivery of reasonably priced crop insurance products
to agricultural producers;
``(B) loss adjustment procedures;
``(C) good farming practices;
``(D) the establishment of premiums; and
``(E) compliance with this title (including regulations
issued under this title, the terms and conditions of
insurance coverage, and adjustments of losses).
``(e) Commission Operations.--
``(1) Chairperson; voting.--The Under Secretary for Farm
and Foreign Agricultural Services of the Department of
Agriculture shall--
``(A) serve as Chairperson of the Commission; and
``(B) vote in the case of a tie.
``(2) Meetings.--The Commission shall meet regularly, but
not less than 6 times per year.
``(3) Disclosure.--To the extent that the records, papers,
or other documents received, prepared, or maintained by the
Commission are subject to public disclosure, the documents
shall be available for public inspection and copying at the
Office of Risk Management.
``(f) Final Report.--
``(1) In general.--Not later than 2 years after the date of
enactment of the Risk Management for the 21st Century Act,
the Commission shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a final
report on the review under subsection (d).
``(2) Copies.--The Commission shall provide copies of the
final report to--
``(A) the Secretary; and
``(B) the Board.
``(3) Interim reports.--To expedite completion of the work
of the Commission, the Commission may submit 1 or more
interim reports or reports on 1 or more of the issues to be
reviewed.
``(g) Termination.--The Commission shall terminate on the
earlier of--
``(1) 60 days after the date on which the Commission
submits the final report under subsection (f); or
``(2) September 30, 2004.
``(h) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
SEC. 311. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION.
(a) Highly Erodible Land.--Section 1211(3) of the Food
Security Act of 1985 (16 U.S.C. 3811(3)) is amended--
(1) in subparagraph (C), by striking ``or'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the following:
``(E) crop or revenue insurance, or a risk management
payment, under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq).''.
(b) Wetland Conservation.--Section 1221(b)(3) of the Food
Security Act of 1985 (16 U.S.C. 3821(b)(3)) is amended by
adding at the end the following:
``(E) Crop or revenue insurance, or a risk management
payment, under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq).''.
SEC. 312. PROJECTED LOSS RATIO.
Section 506(o) of the Federal Crop Insurance Act (7 U.S.C.
1506(o)) is amended by striking paragraph (2) and inserting
the following:
``(2) Projected loss ratio.--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--
``(A) during the period beginning on October 1, 1998, and
ending with the 2001 crop year, an overall projected loss
ratio of not greater than 1.075; and
``(B) beginning with the 2002 crop year, an overall
projected loss ratio of not greater than 1.0.''.
SEC. 313. COMPLIANCE WITH STATE LICENSING REQUIREMENTS.
Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) (as amended by section 207(a)(1)) is amended by adding
at the end the following:
``(n) Compliance With State Licensing Requirements.--Any
person that sells or solicits the purchase of a policy or
plan of insurance or adjusts losses under this title,
including catastrophic risk protection, in any State shall be
licensed and otherwise qualified to do business in that
State, and shall comply with all State regulation of such
sales and solicitation activities (including commission and
anti-rebating regulations), as required by the appropriate
insurance regulator of the State in accordance with the
relevant insurance laws of the State.''.
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. IMPROVED RISK MANAGEMENT EDUCATION.
Title IV of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is
amended by adding at the end the following:
``SEC. 409. IMPROVED RISK MANAGEMENT EDUCATION FOR
AGRICULTURAL PRODUCERS.
``(a) Definitions.--In this section:
``(1) Center.--The term `Center' means a Risk Management
Education Coordinating Center established under subsection
(c)(1).
``(2) Land-grant college.--The term `land-grant college'
means any 1862 Institution, 1890 Institution, or 1994
Institution.
``(b) Program.--
``(1) In general.--The Secretary shall carry out a program
to improve the risk management skills of agricultural
producers, including the owners and operators of small farms,
limited resource producers, and other targeted audiences, to
make informed risk management decisions.
``(2) Purpose.--The program shall be designed to assist a
producer to develop the skills necessary--
``(A) to understand the financial health and capability of
the producer's operation to withstand price fluctuations,
adverse weather, environmental impacts, diseases, family
crises, and other risks;
``(B) to understand marketing alternatives, how various
commodity markets work, the use of crop insurance products,
and the price risk inherent in various markets; and
``(C) to understand legal, governmental, environmental, and
human resource issues that impact the producer's operation.
``(c) Coordinating Centers.--
``(1) Establishment and purpose.--The Secretary shall
establish a Risk Management Education Coordinating Center in
each of 5 regions of the United States (as determined by the
Secretary) to administer and coordinate the provision of risk
management education to producers and their families under
the program in that region.
``(2) Site selection.--
``(A) In general.--The Secretary shall locate the Center
for a region at--
``(i) a risk management education coordinating office of
the Cooperative State Research, Education, and Extension
Service that is in existence at a land-grant college on the
date of enactment of this section; or
``(ii) an appropriate alternative land-grant college in the
region approved by the Secretary.
``(B) Land-grant colleges.--To be selected as the location
for a Center, a land-grant college must have the demonstrated
capability and capacity to carry out the priorities, funding
distribution requirements, and reporting requirements of the
program.
``(d) Coordinating Council.--
``(1) Establishment.--Each Center shall establish a
coordinating council to assist in establishing the funding
and program priorities for the region for which the Center
was established.
``(2) Membership.--Each council shall consist of a minimum
of 5 members, including representatives from--
``(A) public organizations;
``(B) private organizations;
``(C) agricultural producers; and
``(D) the Regional Service Offices of the Risk Management
Agency in that region.
``(e) Center Activities.--
``(1) Instruction for risk management professionals.--Each
Center shall coordinate the offering of intensive risk
management instructional programs, involving classroom
learning, distant learning, and field training work, for
professionals who work with agricultural producers, including
professionals who are--
``(A) extension specialists;
``(B) county extension faculty members;
``(C) private service providers; and
``(D) other individuals involved in providing risk
management education.
``(2) Education programs for producers.--Each Center shall
coordinate the provision of educational programs, including
workshops, short courses, seminars, and distant-learning
modules, to improve the risk management skills of
agricultural producers and their families.
``(3) Development and dissemination of materials.--Each
Center shall coordinate the efforts to develop new risk
management education materials and the dissemination of such
materials.
``(4) Coordination of resources.--
``(A) In general.--Each Center shall make use of available
and emerging risk management information, materials, and
delivery systems, after careful evaluation of the content and
suitability of the information, materials, and delivery
systems for producers and their families.
``(B) Use of available expertise.--To assist in conducting
the evaluation under subparagraph (A), each Center shall use
available expertise from land-grant colleges, nongovernmental
organizations, government agencies, and the private sector.
``(f) Grants.--
``(1) Special grants.--Each Center shall reserve a portion
of the funds provided under this section to make special
grants to land-grant colleges and private entities in the
region to conduct 1 or more of the activities described in
subsection (e).
``(2) Competitive grants.--Each Center shall reserve a
portion of the funds provided under this section to conduct a
competitive grant program to award grants to both public and
private entities that have a demonstrated capability to
conduct 1 or more of the activities described in subsection
(e).
``(g) National Agriculture Risk Education Library.--The
National Agriculture Risk Education Library shall--
``(1) serve as a central agency for the coordination and
distribution of risk management educational materials; and
``(2) provide a means for the electronic delivery of risk
management information and materials.
``(h) Funding Provisions.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section $30,000,000 for
fiscal year 2001 and each subsequent fiscal year.
``(2) Distribution.--
``(A) National agriculture risk education library.--For
each fiscal year, of the funds made available to carry out
this section, 2.5 percent shall be distributed to the
National Agriculture Risk Education Library.
[[Page S1641]]
``(B) Centers.--For each fiscal year, the remainder of the
funds made available to carry out this section shall be
distributed equally among the Centers.
``(C) Administration by land-grant colleges.--The land-
grant college at which a Center is located shall be
responsible for administering and disbursing funds described
in subparagraph (B), in accordance with applicable State and
Federal financial guidelines, for activities authorized by
this section.
``(3) Prohibition on construction.--
``(A) Location of centers.--Each Center shall be located in
a facility in existence on the date of enactment of this
section.
``(B) Prohibition.--Funds provided under this section shall
not be used to carry out construction of any facility.
``(i) Evaluation.--The Secretary, acting through the
Cooperative State Research, Education, and Extension Service,
shall evaluate the activities of each Center to determine
whether the risk management skills of agricultural producers
and their families are improved as a result of their
participation in educational activities financed using funds
made available under subsection (h).''.
SEC. 402. SENSE OF THE SENATE REGARDING THE FEDERAL CROP
INSURANCE PROGRAM.
It is the sense of the Senate that--
(1) farmer-owned cooperatives play a valuable role in
achieving the purposes of the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) by--
(A) encouraging producer participation in the Federal crop
insurance program;
(B) improving the delivery system for crop insurance; and
(C) helping to develop new and improved insurance products;
(2) the Risk Management Agency, through its regulatory
activities, should encourage efforts by farmer-owned
cooperatives to promote appropriate risk management
strategies among their membership;
(3) partnerships between approved insurance providers and
farmer-owned cooperatives provide opportunity for
agricultural producers to obtain needed insurance coverage on
a more competitive basis and at a lower cost;
(4) the Risk Management Agency is following an appropriate
regulatory process to ensure the continued participation by
farmer-owned cooperatives in the delivery of crop insurance;
(5) efforts by the Risk Management Agency to finalize
regulations that would incorporate the currently approved
business practices of cooperatives participating in the
Federal crop insurance program should be commended; and
(6) not later than 180 days after the date of enactment of
this Act, the Federal Crop Insurance Corporation should
complete promulgation of the proposed rule entitled ``General
Administrative Regulations; Premium Reductions; Payment of
Rebates, Dividends, and Patronage Refunds; and Payments to
Insured-Owned and Record-Controlling Entities'', published by
the Federal Crop Insurance Corporation on May 12, 1999 (64
Fed. Reg. 25464), in a manner that--
(A) effectively responds to comments received from the
public during the rulemaking process;
(B) provides an effective opportunity for farmer-owned
cooperatives to assist the members of the cooperatives to
obtain crop insurance and participate most effectively in the
Federal crop insurance program;
(C) incorporates the currently approved business practices
of farmer-owned cooperatives participating in the Federal
crop insurance program; and
(D) protects the interests of agricultural producers.
SEC. 403. SENSE OF CONGRESS ON RALLY FOR RURAL AMERICA AND
RURAL CRISIS.
(a) Findings.--Congress finds that--
(1) on March 20-21, 2000, thousands of rural citizens,
working families, and those representing the environmental
and religious communities traveled to Washington, D.C., to
participate in the Rally for Rural America;
(2) a broad coalition of over 30 farm, environmental, and
labor organizations that are concerned that rural America has
been left behind during this time of prosperity participated
in organizing the Rally for Rural America;
(3) although the majority of America has reaped the
benefits of the strong economy, rural Americans are facing
their toughest times in recent memory;
(4) the record low prices on farms and ranches of the
United States have rippled throughout rural America causing
rural communities to face numerous challenges, including--
(A) a depressed farm economy;
(B) an escalation of mergers and acquisitions;
(C) a loss of businesses and jobs on rural main street;
(D) erosion of health care and education;
(E) a decline in infrastructure;
(F) a reduction of capital investments; and
(G) a loss of independent family farmers;
(5) the Rally for Rural America urged Congress to reform
the Federal Agriculture Improvement and Reform Act of 1996
(Public Law 104-127) to formulate rural policies in a manner
that will alleviate the agricultural price crisis, ensure
fair and open markets, and encourage fair trade;
(6) thousands of rural citizens have advocated farm
policies that include--
(A) a strong safety net for all agricultural producers;
(B) competitive markets;
(C) an investment in rural education and health care;
(D) protection of natural resources for the next
generation;
(E) a safe and secure food supply;
(F) revitalization of our farm families and rural
communities; and
(G) fair and equitable implementation of government
programs;
(7) because agricultural commodity prices are so far below
the costs of production, eventually family farmers will no
longer be able to pay their bills or provide for their
families;
(8) anti-competitive practices and concentration are a
cause of concern for American agriculture;
(9) rural America needs a fair and well reasoned farm
policy, not unpredictable and inequitable disaster payments;
(10) disaster payments do not provide for real, meaningful
change; and
(11) the economic conditions and pressures in rural America
require real change.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the participants in the Rally for Rural America are
commended and their pleas have been heard; and
(2) Congress should respond with a clear and strong message
to the participants and rural families that Congress is
committed to giving the crisis in agriculture, and all of
rural America, its full attention by reforming rural policies
in a manner that will--
(A) alleviate the agricultural price crisis;
(B) ensure competitive markets;
(C) invest in rural education and health care;
(D) protect our natural resources for future generations;
and
(E) ensure a safe and secure food supply for all.
TITLE V--EFFECTIVE DATES; TERMINATION OF AUTHORITY
SEC. 501. EFFECTIVE DATES.
(a) In General.--Except as provided in subsections (b) and
(c)(2) and section 502(a), this Act and the amendments made
by this Act take effect on the date of enactment of this Act.
(b) Delayed Obligation.--The Federal Crop Insurance
Corporation shall not obligate funds to carry out subsection
(c)(2) and the amendments made by sections 102, 103, 105,
106, 201 through 207, 309, and 310 until October 1, 2000.
(c) Regulations.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary of Agriculture shall
promulgate regulations to carry out this Act and the
amendments made by this Act.
(2) Indemnity payments for certain producers of durum
wheat.--
(A) In general.--Except as otherwise provided in this
paragraph, notwithstanding section 508(c)(5) of the Federal
Crop Insurance Act (7 U.S.C. 1508(c)(5)), a producer of durum
wheat that purchased a 1999 Crop Revenue Coverage wheat
policy by the sales closing date prescribed in the actuarial
documents in the county where the policy was sold shall
receive an indemnity payment in accordance with the policy.
(B) Base and harvest prices.--The base price and harvest
price under the policy shall be determined in accordance with
the Commodity Exchange Endorsement for wheat published by the
Federal Crop Insurance Corporation on July 14, 1998 (63 Fed.
Reg. 37829).
(C) Reinsurance.--Subject to subparagraph (B),
notwithstanding section 508(c)(5) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)(5)), the Corporation shall
provide reinsurance with respect to the policy in accordance
with the Standard Reinsurance Agreement.
(D) Voiding of bulletin.--Bulletin MGR-99-004, issued by
the Administrator of the Risk Management Agency of the
Department of Agriculture, is void.
(E) Effective date.--This paragraph takes effect on October
1, 2000.
SEC. 502. TERMINATION OF AUTHORITY.
(a) Effective Date.--This section and the amendments made
by this section take effect on September 30, 2004.
(b) Repeal.--
(1) In general.--The amendments made by sections 102, 103,
105, 106, 203(b), and 310 are repealed.
(2) Applicability.--The Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) and section 196 of the Agricultural
Market Transition Act (7 U.S.C. 7333) shall be applied and
administered as if the provisions described in paragraph (1)
had not been enacted.
(3) Conforming amendment.--Section 508(a) of the Federal
Crop Insurance Act (7 U.S.C. 1508(a)) is amended by
redesignating paragraph (8) (as added by section 107) and
paragraph (9) (as added by section 305) as paragraph (7) and
paragraph (8), respectively.
(c) Pilot Programs.--Section 522 of the Federal Crop
Insurance Act (as added by sections 201, 202, 203, 205, and
206) is amended--
(1) in subsection (a)--
(A) in paragraph (3)--
(i) in subparagraph (D), by adding ``and'' at the end;
(ii) by striking subparagraphs (E) and (G);
(iii) in subparagraph (F), by striking ``; and'' and
inserting a period; and
(iv) by redesignating subparagraph (F) as subparagraph (E);
(B) by striking paragraphs (4), (6), and (7); and
(C) by redesignating paragraphs (5) and (8) as paragraphs
(4) and (5), respectively;
(2) in subsection (b)--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively; and
(3) by striking subsections (c), (d), and (e).
(d) Board of Directors of Corporation.--Section 516(b)(1)
of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) (as
amended by sections 301(c) and 307(b)(1)) is amended--
(1) in subparagraph (C), by inserting ``and'' after the
semicolon;
(2) by striking subparagraph (D); and
(3) by redesignating subparagraph (E) as subparagraph (D).
(e) Specialty Crops.--
(1) In general.--Section 523 of the Federal Crop Insurance
Act (as added by section 309(a)) is amended--
[[Page S1642]]
(A) in subsection (b)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as paragraph (2);
(B) by striking subsections (c) and (e); and
(C) by redesignating subsection (d) as subsection (c).
(2) Report.--Section 309 of this Act is amended by striking
subsection (b).
(f) Funding.--Neither the Secretary of Agriculture nor the
Federal Crop Insurance Corporation may use the funds of the
insurance fund under section 516(c)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1516(c)(1)), the funds of the
Commodity Credit Corporation, or funds under any provision of
law to carry out a provision repealed or struck by this
section.
Mr. LUGAR. Mr. President, I move to reconsider the vote, and I move
to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. President, I ask unanimous consent that the Chair be authorized
to appoint conferees on the part of the Senate.
There being no objection, the Presiding Officer (L. Chafee) appointed
Mr. Lugar, Mr. Helms, Mr. Cochran, Mr. Coverdell, Mr. Roberts, Mr.
Harkin, Mr. Leahy, Mr. Conrad, and Mr. Kerrey conferees on the part of
the Senate.
Commendation of Staff
Mr. LUGAR. Mr. President, I commend the staff of Senator Roberts,
particularly Mike Seyfert; Senator Kerrey's staff, Bev Paul; Senator
Harkin's staff, Mark Halverson and Stephanie Mercier; Senator
Grassley's staff, Mark Reisinger; my own staff, Andy Morton, Michael
Knipe, Chimene Dupler, Bob Sturm, Dave Johnson, Keith Luse, and Terri
Nintemann; Senator Cochran's staff, Hunt Shipman; and Senator Daschle's
staff, Zabrae Valentine, who made very instrumental contributions to
this bill.
Mr. HARKIN. Mr. President, I want to thank the Chairman for his
leadership and work with all of us on the Agriculture Committee and in
the Senate as a whole to bring this bill along to this point. It is a
good bill and it will provide a lot of needed help to our nation's
farmers and rural economy. I also want to thank and congratulate my
colleagues, especially Senator Kerrey and Senator Roberts, for their
fine efforts. I too express my gratitude for the hard work and
dedication of all the staff as mentioned by Chairman Lugar, who have
contributed to crafting this important piece of legislation.
Mr. REID. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. LOTT. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. LOTT. Mr. President, I congratulate Senator Lugar, the chairman
of the Committee on Agriculture, and Senator Roberts, on the bipartisan
work that was done on this legislation. While it didn't get a 100-
percent vote, I think they should be commended for keeping their
commitment made last fall to get crop insurance to the floor. Senator
Lugar, in his usual way, has worked very hard to bring all divergent
views together. I thank the Senator for this important legislation.
Mr. DASCHLE. Will the Senator yield?
Mr. LOTT. I am happy to yield to the Senator.
Mr. DASCHLE. Mr. President, I associate myself with the remarks of
the majority leader. Senator Lugar, in the committee as well as on the
floor, demonstrated once again why he is admired on both sides of the
aisle as a leader in agriculture. This was not easy for him, beginning
last year. He maneuvered the committee and brought the Senate to a
point where we successfully completed our work.
I congratulate the Senator, and especially I congratulate Senators
Roberts, Kerrey, Conrad, and others who had a role to play in bringing
the Senate to this point. Our thanks to all Senators for their
cooperation. I am grateful for the opportunity to have completed this
work.
Mr. LOTT. Mr. President, let me add, thanks, too, to Senator Kerrey
and others involved on the Democratic side of the aisle. It was truly a
bipartisan effort. I think they should be congratulated. I hope when it
comes out of conference it will have 100-percent support.
____________________