[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.

                          ____________________