Notes on 7 U.S.C. § 1508 : US Code - Notes

Search Notes on 7 U.S.C. § 1508 : US Code - Notes

(Feb. 16, 1938, ch. 30, title V, Sec. 508, 52 Stat. 74; June 22,
1938, ch. 563, 52 Stat. 835; June 21, 1941, ch. 214, Secs. 3-7, 10,
55 Stat. 255, 256; Dec. 23, 1944, ch. 713, Secs. 1-3, 58 Stat. 918,
919; Aug. 1, 1947, ch. 440, Secs. 1-3, 61 Stat. 718; Aug. 25, 1949,
ch. 512, Secs. 1-3, 63 Stat. 663; Aug. 13, 1953, ch. 431, 67 Stat.
575; Pub. L. 85-111, July 23, 1957, 71 Stat. 309; Pub. L. 86-131,
Aug. 4, 1959, 73 Stat. 278; Pub. L. 88-589, Sept. 12, 1964, 78
Stat. 933; Pub. L. 96-365, title I, Secs. 105, 106, 107(b), Sept.
26, 1980, 94 Stat. 1314, 1315, 1317; Pub. L. 100-387, title II,
Sec. 208(a), Aug. 11, 1988, 102 Stat. 941; Pub. L. 101-624, title
XXII, Secs. 2203-2205, Nov. 28, 1990, 104 Stat. 3955-3957; Pub. L.
102-237, title VI, Sec. 601(4), (5), Dec. 13, 1991, 105 Stat. 1878;
Pub. L. 103-66, title XIV, Sec. 1403(b)(1), (2), Aug. 10, 1993, 107
Stat. 333, 334; Pub. L. 103-354, title I, Sec. 106, Oct. 13, 1994,
108 Stat. 3183; Pub. L. 104-127, title I, Secs. 193(a)(1), (2),
(c), (d), (f), 195, Apr. 4, 1996, 110 Stat. 943-946; Pub. L. 105-
185, title V, Secs. 532, 534, June 23, 1998, 112 Stat. 581, 583;
Pub. L. 105-277, div. A, Sec. 101(a) [title VIII, Sec. 803(a)],
Oct. 21, 1998, 112 Stat. 2681, 2681-38; Pub. L. 106-113, div. B,
Sec. 1000(a)(5) [title II, Secs. 205(a), 206], Nov. 29, 1999, 113
Stat. 1536, 1501A-294; Pub. L. 106-224, title I, Secs. 101-
103(b)(1), (c), (d), 104-107, 123, 124(a), 144-146, 161, 162, June
20, 2000, 114 Stat. 360-368, 378, 391, 392, 395; Pub. L. 107-171,
title X, Secs. 10001-10003, May 13, 2002, 116 Stat. 486; Pub. L.
109-97, title VII, Sec. 780, Nov. 10, 2005, 119 Stat. 2162.)
REFERENCES IN TEXT                        
The Department of Agriculture Reorganization Act of 1994,
referred to in subsec. (a)(3)(B)(ii)(I), is title II of Pub. L. 103-
354, Oct. 13, 1994, 108 Stat. 3209, as amended. Subtitle H of the
Act is classified principally to subchapter VIII (Sec. 6991 et
seq.) of chapter 98 of this title. For complete classification of
this Act to the Code, see Tables.
The Agricultural Market Transition Act, referred to in subsec.
(b)(7)(A), is title I of Pub. L. 104-127, Apr. 4, 1996, 110 Stat.
896, which is classified principally to chapter 100 (Sec. 7201 et
seq.) of this title. For complete classification of this Act to the
Code, see References in Text note set out under section 7201 of
this title and Tables.
For the effective date of this paragraph, referred to in subsecs.
(b)(10)(B) and (g)(3)(C), as being Oct. 13, 1994, see Effective
Date of 1994 Amendment note below.
Section 7759 of this title, referred to in subsec. (g)(5)(A)(i),
was amended by Pub. L. 106-224, title IV, Sec. 438(a)(3), June 20,
2000, 114 Stat. 454, and, as amended, no longer contains provisions
defining the term "plant pest". See section 7702 of this title.
Section 118 of the Federal Crop Insurance Reform Act of 1994,
referred to in subsec. (k)(5), is section 118 of Pub. L. 103-354,
which is set out as a note under section 1506 of this title.
The United States Warehouse Act, referred to in subsec.
(m)(4)(A), is part C of act Aug. 11, 1916, ch. 313, 39 Stat. 486,
as amended, which is classified generally to chapter 10 (Sec. 241
et seq.) of this title. For complete classification of this Act to
the Code, see Short Title note set out under section 241 of this
title and Tables.
The Consolidated Farm and Rural Development Act, referred to in
subsec. (n)(2), is title III of Pub. L. 87-128, Aug. 8, 1961, 75
Stat. 307, as amended. Subtitle C of the Act is classified
generally to subchapter III (Sec. 1961 et seq.) of chapter 50 of
this title. For complete classification of this Act to the Code,
see Short Title note set out under section 1921 of this title and
Tables.
AMENDMENTS                            
2005 - Subsec. (a)(4)(B). Pub. L. 109-97 inserted "or similar
commodities" after "the commodity".
2002 - Subsec. (a)(2). Pub. L. 107-171, Sec. 10001, substituted
", potatoes, and sweet potatoes" for "and potatoes".
Subsec. (e)(4). Pub. L. 107-171, Sec. 10002, substituted
"Prohibition" for "Temporary prohibition" in heading and "and
subsequent reinsurance years" for "through 2005 reinsurance years"
in text.
Subsec. (m)(3). Pub. L. 107-171, Sec. 10003(1), designated first
sentence of par. (3) as subpar. (A) and inserted heading and
designated second sentence of par. (3) as subpar. (B), inserted
heading, and substituted "Effective beginning not later than the
2004 reinsurance year, based on" for "Based on" in text.
Subsec. (m)(4). Pub. L. 107-171, Sec. 10003(2), added par. (4).
2000 - Subsec. (a)(3). Pub. L. 106-224, Sec. 123, added par. (3)
and struck out heading and text of former par. (3). Text read as
follows: "Insurance provided under this subsection shall not cover
losses due to - 
"(A) the neglect or malfeasance of the producer;
"(B) the failure of the producer to reseed to the same crop in
such areas and under such circumstances as it is customary to
reseed; or
"(C) the failure of the producer to follow good farming
practices (as determined by the Secretary)."
Subsec. (a)(3)(C). Pub. L. 106-224, Sec. 161, added subpar. (C).
Subsec. (a)(5). Pub. L. 106-224, Sec. 144, designated existing
provisions as subpar. (A) and inserted heading, redesignated former
subpars. (A) and (B) as cls. (i) and (ii), respectively, and
realigned their margins, and added subpar. (B).
Subsec. (a)(7). Pub. L. 106-224, Sec. 145, added par. (7).
Subsec. (a)(8). Pub. L. 106-224, Sec. 162, added par. (8).
Subsec. (b)(3). Pub. L. 106-224, Sec. 103(a), added par. (3) and
struck out heading and text of former par. (3). Text read as
follows: "A producer shall have the option of basing the
catastrophic coverage of the producer on an individual yield and
loss basis or on an area yield and loss basis, if both options are
offered by the Corporation."
Subsec. (b)(5)(A). Pub. L. 106-224, Sec. 103(b)(1)(A),
substituted "$100" for "$50".
Subsec. (b)(5)(B). Pub. L. 106-224, Sec. 103(b)(1)(B), (c), added
subpar. (B) and struck out heading and text of former subpar. (B).
Text read as follows: "In addition to the amount required under
subparagraph (A), the producer shall pay a $10 fee for each amount
determined under subparagraph (A)."
Subsec. (b)(5)(C). Pub. L. 106-224, Sec. 103(b)(1)(C),
substituted "administrative fee required by this paragraph" for
"amounts required under subparagraphs (A) and (B)".
Subsec. (b)(11). Pub. L. 106-224, Sec. 103(d), substituted "8
percent" for "11 percent".
Subsec. (c)(5). Pub. L. 106-224, Sec. 101(a), added par. (5) and
struck out heading and text of former par. (5). Text read as
follows: "The Corporation shall establish a price level for each
commodity on which insurance is offered that - 
"(A) shall not be less than the projected market price for the
commodity (as determined by the Corporation); or
"(B) at the discretion of the Corporation, may be based on the
actual market price at the time of harvest (as determined by the
Corporation)."
Subsec. (c)(10). Pub. L. 106-224, Sec. 104, added par. (10) and
struck out former par. (10), which required administrative fee
where producer elected to purchase additional coverage for crop at
level that was less than 65 percent of recorded or appraised
average yield indemnified at 100 percent of expected market price,
or equivalent coverage, and provided for exception to fee if
producer elected to purchase additional coverage for crop equal to
65 percent or more of recorded or appraised average yield
indemnified at 100 percent of expected market price, or equivalent
coverage, additional fee if producer elected to purchase additional
coverage for crop equal to or exceeding 65 percent of recorded or
appraised average yield and 100 percent of expected market price or
equivalent coverage, and for deposit of fees.
Subsec. (d)(2)(B), (C). Pub. L. 106-224, Sec. 101(b)(1), added
subpar. (B) and struck out former subpars. (B) and (C), which
described premium amounts in the case of additional coverage below,
equal to, or greater than 65 percent of the recorded or appraised
average yield indemnified at 100 percent of the expected market
price, or an equivalent coverage.
Subsec. (d)(3). Pub. L. 106-224, Sec. 101(b)(2), added par. (3).
Subsec. (e)(2). Pub. L. 106-224, Sec. 101(c)(1), substituted
"Subject to paragraph (4), the amount" for "The amount" in
introductory provisions.
Subsec. (e)(2)(B) to (G). Pub. L. 106-224, Sec. 101(c)(2), added
subpars. (B) to (G) and struck out former subpars. (B) and (C),
which set forth amount of premium to be paid by Corporation in the
case of coverage below, equal to, or greater than 65 percent of the
recorded or appraised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage.
Subsec. (e)(4). Pub. L. 106-224, Sec. 101(d), added par. (4) and
struck out former par. (4), which authorized Corporation to allow
approved providers to offer insurance plan to producers that would
combine both individual and area yield coverage at a premium rate
determined under certain conditions.
Subsec. (e)(5). Pub. L. 106-224, Sec. 101(e), added par. (5).
Subsec. (f)(3)(A). Pub. L. 106-224, Sec. 124(a), added subpar.
(A) and struck out former subpar. (A) which read as follows:
"provide, to the extent required by the Corporation, records
acceptable to the Corporation of historical acreage and production
of the crops for which the insurance is sought or accept a yield
determined by the Corporation; and".
Subsec. (g)(2)(B). Pub. L. 106-224, Sec. 105(a), designated
existing provisions of subpar. (B) as cl. (i) and added cl. (ii).
Subsec. (g)(2)(D). Pub. L. 106-224, Sec. 101(f), struck out "(as
provided in subsection (e)(4) of this section)" after "combined
coverage".
Subsec. (g)(4), (5). Pub. L. 106-224, Sec. 105(b), added pars.
(4) and (5).
Subsec. (h)(1). Pub. L. 106-224, Sec. 146(a), inserted
"(including an approved insurance provider, a college or
university, a cooperative or trade association, or any other
person)" after "a person" in introductory provisions.
Subsec. (h)(2). Pub. L. 106-224, Sec. 102(a)(1), struck out at
end "In the case of such a policy, the payment by the Corporation
of a portion of the premium of the policy may not exceed the amount
that would otherwise be authorized under subsection (e) of this
section."
Subsec. (h)(3). Pub. L. 106-224, Sec. 146(b), inserted "by
approved insurance providers" after "for sale" in first sentence.
Subsec. (h)(4)(A). Pub. L. 106-224, Sec. 146(c)(1), added subpar.
(A) and struck out former subpar. (A) which read as follows: "A
proposal submitted to the Board under this subsection shall be
considered as confidential commercial or financial information for
purposes of section 552(b)(4) of title 5 until approved by the
Board. A proposal disapproved by the Board shall remain
confidential commercial or financial information."
Subsec. (h)(4)(B). Pub. L. 106-224, Sec. 146(c)(2), inserted
subpar. heading.
Subsec. (h)(4)(C), (D). Pub. L. 106-224, Sec. 146(c)(3), added
subpars. (C) and (D) and struck out former subpars. (C) and (D),
which required notice of intent to disapprove, provided that
modification would be considered an original application, and
directed that specific guidelines were to prescribe timely
submission and consideration of proposals.
Subsec. (h)(5). Pub. L. 106-224, Sec. 102(a)(2), added par. (5)
and struck out heading and text of former par. (5). Text read as
follows: "Any policy, provision of a policy, or rate approved under
this subsection shall be published as a notice in the Federal
Register and made available to all persons contracting with or
reinsured by the Corporation under the terms and conditions of the
contract between the Corporation and the person originally
submitting the policy or other material."
Subsec. (h)(6) to (10). Pub. L. 106-224, Sec. 146(d),
redesignated par. (7) as (6) and struck out former pars. (6) which
related to pilot cost of production risk protection plan, (8) which
related to pilot program of assigned yields for new producers, (9)
which related to revenue insurance pilot program, and (10) which
related to time limits for response to submission of new policies.
Subsec. (i). Pub. L. 106-224, Sec. 106, designated existing
provisions as par. (1), inserted heading, and added pars. (2) to
(4).
Subsec. (k)(4)(C). Pub. L. 106-224, Sec. 102(b), added subpar.
(C).
Subsec. (m). Pub. L. 106-224, Sec. 107, added subsec. (m) and
struck out former subsec. (m), which authorized research, surveys,
pilot programs, and investigations relating to crop insurance and
agriculture-related risks and losses and required evaluation of
pilot programs and submission of reports, including recommendations
with respect to implementation of programs on a national basis.
1999 - Subsec. (f)(2). Pub. L. 106-113, Sec. 1000(a)(5) [title
II, Sec. 206], designated existing provisions as subpar. (A),
inserted heading, struck out "Beginning with the 1995 crop year,
the Corporation shall establish, for an insurance policy for each
insurable crop that is planted in the spring, a sales closing date
that is 30 days earlier than the corresponding sales closing date
that was established for the 1994 crop year." after "price and
production adjustment programs of the Department.", and added
subpars. (B) and (C).
Subsec. (h)(9)(A). Pub. L. 106-113, Sec. 1000(a)(5) [title II,
Sec. 205(a)], substituted "1997 through 2001" for "1997, 1998,
1999, and 2000".
1998 - Subsec. (b)(5). Pub. L. 105-185, Sec. 532(a), added par.
(5) and struck out heading and text of former par. (5) which, in
subpar. (A) required payment of $50 fee per crop per county up to a
maximum of $200 per producer per county and $600 per producer for
all counties, in subpar. (B) directed crediting of fees up to $100
collected by USDA offices to appropriations account, retention of
fees up to $100 collected by approved insurance providers, and
deposit of fees in excess of $100 in crop insurance fund, and in
subpar. (C) waived fee for limited resource farmers as defined by
Corporation.
Subsec. (b)(11). Pub. L. 105-185, Sec. 532(d), added par. (11).
Subsec. (c)(10)(A). Pub. L. 105-185, Sec. 532(b)(1), added
subpar. (A) and struck out heading and text of former subpar. (A).
Text read as follows: "Except as otherwise provided in this
paragraph, if a producer elects to purchase additional coverage for
a crop at a level that is less than 65 percent of the recorded or
appraised average yield indemnified at 100 percent of the expected
market price, or an equivalent coverage, the producer shall pay an
administrative fee for the additional coverage. Subsection (b)(5)
of this section shall apply in determining the amount and use of
the administrative fee or in determining whether to waive the
administrative fee."
Subsec. (c)(10)(C). Pub. L. 105-185, Sec. 532(b)(2), substituted
"$20" for "$10" in first sentence.
Subsec. (h)(10). Pub. L. 105-185, Sec. 534, added par. (10).
Subsec. (k)(4). Pub. L. 105-185, Sec. 532(c), added par. (4) and
struck out heading and text of former par. (4). Text read as
follows: "The rate established by the Board to reimburse approved
insurance providers and agents for the administrative and operating
costs of the providers and agents shall not exceed - 
"(A) for the 1997 reinsurance year, 29 percent of the premium
used to define loss ratio;
"(B) for the 1998 reinsurance year, 28 percent of the premium
used to define loss ratio; and
"(C) for the 1999 reinsurance year, 27.5 percent of the premium
used to define loss ratio."
Subsec. (n). Pub. L. 105-277 designated existing provisions as
par. (1), inserted heading, substituted "Except as provided in
paragraph (2), if a producer" for "If a producer", and added par.
(2).
1996 - Subsec. (a)(6)(D). Pub. L. 104-127, Sec. 193(c), added
subpar. (D).
Subsec. (b)(4)(C). Pub. L. 104-127, Sec. 193(a)(1), added subpar.
(C).
Subsec. (b)(7)(A). Pub. L. 104-127, Sec. 193(a)(2), added subpar.
(A) and struck out heading and text of former subpar. (A). Prior to
amendment, text read as follows: "To be eligible for any price
support or production adjustment program, the conservation reserve
program, or any benefit described in section 2008f of this title,
the producer must obtain at least the catastrophic level of
insurance for each crop of economic significance grown on each farm
in the county in which the producer has an interest, if insurance
is available in the county for the crop."
Subsec. (h)(9). Pub. L. 104-127, Sec. 195, added par. (9).
Subsec. (j)(4). Pub. L. 104-127, Sec. 193(d), added par. (4).
Subsec. (n). Pub. L. 104-127, Sec. 193(f), added subsec. (n).
1994 - Pub. L. 103-354 amended section generally, substituting
present provisions for former provisions which related to: in
subsec. (a), authority to offer insurance; in subsec. (b),
submission of policies and materials to Board; in subsec. (c),
actuarial soundness; in subsec. (d), adoption of rates and
coverages; in subsec. (e), premiums; in subsec. (f), claims for
losses; in subsec. (g), special rule for cotton; in subsec. (h),
reinsurance; in subsec. (i), application to other areas; in subsec.
(j), optional coverages; in subsec. (k), research; in subsec. (l),
crop insurance for dry edible beans; in subsec. (m), information
collection on crop insurance; and in subsec. (n), area yield plan.
1993 - Subsec. (h). Pub. L. 103-66, Sec. 1403(b)(1), substituted
fifth sentence for former fifth sentence which read as follows:
"The Corporation shall also pay operating and administrative costs
to insurers of policies on which the Corporation provides
reinsurance to the same extent that such costs are covered by the
Corporation on the Corporation's policies of insurance."
Subsec. (n). Pub. L. 103-66, Sec. 1403(b)(2), added subsec. (n).
1991 - Subsec. (a). Pub. L. 102-237, Sec. 601(4), struck out par.
(1) designation.
Subsecs. (k) to (n). Pub. L. 102-237, Sec. 601(5), redesignated
subsecs. (l) to (n) as (k) to (m), respectively.
1990 - Pub. L. 101-624, Sec. 2204(b)(1), inserted section
catchline and struck out "To carry out the purposes of this chapter
the Corporation is authorized and empowered - " before subsec. (a).
Subsec. (a). Pub. L. 101-624, Sec. 2205(1), inserted heading,
substituted "the Corporation may insure" for "to insure" in first
sentence, and inserted provisions relating to amount of insurance
to be provided in cases where Agricultural Stabilization and
Conservation Service has established adjusted yields, and
provisions relating to establishment of a price level for each
commodity beginning with the 1992 crop year.
Subsecs. (b) to (d). Pub. L. 101-624, Sec. 2204(a)(1), (2), added
subsecs. (b) to (d) and redesignated subsecs. (b) to (d) as (e) to
(g), respectively.
Subsec. (e). Pub. L. 101-624, Sec. 2204(a)(1), (b)(2),
redesignated subsec. (b) as (e), inserted heading, and substituted
"The Corporation may fix" for "To fix" in par. (1). Former subsec.
(e) redesignated (h).
Subsec. (f). Pub. L. 101-624, Sec. 2204(a)(1), redesignated
subsec. (c) as (f). Former subsec. (f) redesignated (i).
Pub. L. 101-624, Sec. 2203(a), inserted heading, substituted "The
Corporation may adjust and pay claims for losses as provided under
subsection (a) of this section" for "To adjust and pay claims for
losses", and inserted after first sentence "The rules prescribed by
the Board shall establish standards to ensure that all claims for
losses are adjusted to the extent practicable in a uniform and
timely manner."
Subsec. (g). Pub. L. 101-624, Sec. 2204(a)(1), (b)(3),
redesignated subsec. (d) as (g), inserted heading, and substituted
"the Corporation may include" for "to include". Former subsec. (g)
redesignated (j).
Subsec. (h). Pub. L. 101-624, Sec. 2204(a)(1), redesignated
subsec. (e) as (h). Former subsec. (h) redesignated (k).
Pub. L. 101-624, Sec. 2203(b), inserted heading, substituted "The
Corporation is directed" for "And directed", and inserted sentence
at end relating to revision of reinsurance agreements beginning
with the 1992 reinsurance year.
Subsec. (i). Pub. L. 101-624, Sec. 2204(a)(1), (b)(4),
redesignated subsec. (f) as (i), inserted heading, and substituted
"The Corporation may provide" for "To provide". Former subsec. (i)
redesignated (l).
Subsec. (j). Pub. L. 101-624, Sec. 2204(a)(1), (b)(5),
redesignated subsec. (g) as (j), inserted heading, and substituted
"The Corporation may offer" for "To offer". Former subsec. (j)
redesignated (m).
Subsec. (k). Pub. L. 101-624, Sec. 2205(2), struck out subsec.
(k) which set out a special rule for calculating premiums and
indemnities, with respect to insuring timber and forest yields.
Pub. L. 101-624, Sec. 2204(a)(1), (b)(6), redesignated subsec.
(h) as (k), inserted heading, and substituted "The Corporation may
include" for "To include".
Subsec. (l). Pub. L. 101-624, Sec. 2204(a)(1), (b)(7),
redesignated subsec. (i) as (l), inserted heading, substituted "The
Corporation may conduct" for "To conduct", and struck out second
and third sentences which read as follows: "Beginning in the 1981
crop year and ending after the 1985 crop year, the Corporation
shall also conduct a pilot program of individual risk underwriting
of crop insurance in not less than twenty-five counties. Under this
pilot program, to the extent that appropriate yield data are
available, the Corporation shall make available to producers in
such counties crop insurance under this chapter based on
personalized rates and with guarantees determined from the
producer's actual yield history."
Subsec. (m). Pub. L. 101-624, Sec. 2204(b)(8), added subsec. (m)
and struck out former subsec. (m) which read as follows: "To
accumulate, prior to the 1989 crop year, sufficient actuarial data
to enable the Corporation to provide crop insurance that meets the
differentiated needs of producers of different types of dry edible
beans. Commencing with the 1989 crop year, the Corporation shall
make such crop insurance available to producers."
Pub. L. 101-624, Sec. 2204(a)(1), redesignated subsec. (j) as
(m).
Subsec. (n). Pub. L. 101-624, Sec. 2204(a)(3), added subsec. (n).
1988 - Subsec. (j). Pub. L. 100-387 added subsec. (j).
1980 - Subsec. (a). Pub. L. 96-365, Sec. 105, authorized
Corporation, if sufficient actuarial data is available, to insure
producers of any agricultural commodity grown in the United States
under any plan of insurance determined to be adapted to the
commodity involved; defined "field" in the case of aquacultural
species to mean the environment in which the commodity is produced;
in revising percentage limitations for crop insurance coverage,
prescribed 75 per centum protection for recorded or appraised
average yield (previously protected up to such percentage), offered
producers lesser levels of coverage including 50 per centum of
recorded or appraised average yield as adjusted, barred protection
exceeding 75 per centum, offered price election approximating (but
not less than 90 per centum of) projected market price for
commodity involved, and struck out requirement for downward
adjustment of minimum percentage in yield which may be insured to
reflect investment in crop; and struck out limitations on Federal
crop insurance program which: limited crop insurance to not more
than seven agricultural commodities in 1948 and to not more than
three additional commodities yearly thereafter, beginning with 1954
crop authorized yearly expansion of crop insurance program to not
more than 150 counties in addition to counties offered insurance
the previous year, limited reinsurance for private insurance
companies to 20 counties, and required counties selected by the
Board for crop insurance to be representative of areas where the
commodity involved normally was produced; and struck out general
reinsurance provision, covered in subsec. (e) of this section.
Subsec. (b). Pub. L. 96-365, Sec. 106(1), designated existing
provisions as par. (1), struck out "in the agricultural commodity
or in cash," after "premiums for insurance" and proviso from first
sentence authorizing establishment of premiums on the basis of the
parity or comparable price for the commodity as determined and
publish by Secretary of Agriculture, or on the basis of an average
market price designated by the Board and second sentence providing
for collection of premiums at such time or times, or for securing
in such manner, as the Board may determine, which is covered in
par. (4), required the rates to be actuarially sufficient, added
pars. (2) and (3), incorporated existing provision in par. (4), and
added pars. (5) and (6).
Subsec. (c). Pub. L. 96-365, Sec. 106(2), struck out "in the
agricultural commodity or in cash," after "claims for losses" and
provisions respecting: determination of indemnities on same price
basis as premiums were determined for the crop with respect to
which the indemnities were paid; requirement that the Corporation
post annually for each county at the county courthouse a list of
indemnities paid for losses on farms in the county; action on
claims in any court of the State having general jurisdiction,
sitting in the county where the insured farm was located; and
jurisdiction of district courts without regard to amount in
controversy.
Subsec. (d). Pub. L. 96-365, Sec. 106(3), redesignated subsec.
(e) as (d) and struck out prior subsec. (d) authorizing Corporation
to purchase, handle, store, insure, provide storage facilities for,
and sell agricultural commodities.
Subsec. (e). Pub. L. 96-365, Sec. 106(4), added subsec. (e).
Former subsec. (e) redesignated (d).
Subsec. (f). Pub. L. 96-365, Sec. 106(4), substituted provisions
for insurance and reinsurance in the territories and possessions
for prior provision for reinsurance in Puerto Rico when not
available from recognized private sources.
Subsecs. (g), (h). Pub. L. 96-365, Sec. 106(4), added subsecs.
(g) and (h).
Subsec. (i). Pub. L. 96-365, Sec. 107(b), added subsec. (i).
1964 - Subsec. (a). Pub. L. 88-589 increased from 100 to 150 the
number of counties into which the Federal crop insurance program
may be extended.
1959 - Subsec. (a). Pub. L. 86-131 struck out provision
prohibiting Federal crop insurance in a county unless two hundred
farms or one third of the farms normally producing the commodity
apply for such insurance, excluding farms refused insurance on the
basis of risk involved.
1957 - Subsec. (f). Pub. L. 85-111 added subsec. (f).
1953 - Subsec. (a). Act Aug. 13, 1953, authorized extension of
Federal crop insurance program into an additional 100 counties,
struck out commodity formula basis on which this expansion may take
place, and provided an exception to the strict county limitation by
providing that producers on farms situated in a local producing
area bordering on a county with a crop insurance program may be
included in that county's program.
1949 - Subsec. (a). Act Aug. 25, 1949, Sec. 1, provided for an
annual increase in number of counties in which insurance now
offered by Corporation can be issued.
Subsec. (b). Act Aug. 25, 1949, Sec. 2, struck out provision
under which Corporation's administrative expenses are restricted,
after the crop year 1949, to a sum equivalent to 25 percent of the
premiums collected in the preceding year.
Subsec. (c). Act Aug. 25, 1949, Sec. 3, struck out provision
which required prorating of losses beginning with crop year 1950.
1947 - Subsec. (a). Act Aug. 1, 1947, Sec. 1, amended subsec. (a)
generally, and among other changes, provided for crop insurance,
commencing with crops planted for harvest in 1948, made provision
for reinsurance, enumerated specific crops insurable in 1948,
provided for additional crops in subsequent years, limited number
of counties in which certain crops were insurable, increased
required number of applications in any one county from fifty to two
hundred, and authorized Board to refuse insurance in any county
where agricultural commodity to be insured constitutes an
unimportant part of total agricultural income.
Subsec. (b). Act Aug. 1, 1947, Sec. 2, inserted proviso relating
to basis for premiums.
Subsec. (c). Act Aug. 1, 1947, Sec. 3, inserted first proviso
relating to determination of price basis for indemnities.
1944 - Subsec. (a). Act Dec. 23, 1944, Sec. 1, amended subsec.
(a) generally to provide insurance against loss not only for wheat
and cotton crops but also for flax, corn, oats, etc.
Subsec. (b). Act Dec. 23, 1944, Sec. 2, provided for the
establishment of such rates as would cover crop losses and build up
a reasonable reserve, and inserted proviso.
Subsec. (c). Act Dec. 23, 1944, Sec. 3, inserted first proviso,
and inserted "and received" after "mailed to" in last proviso.
1941 - Subsec. (a). Act June 21, 1941, Secs. 3-5, struck out
comma after "1939" and inserted "and with the cotton crop planted
for harvest in 1942", and substituted "producers of the
agricultural commodity against loss in yields of the agricultural
commodity" for "producers of wheat against loss in yields of wheat"
in the first sentence, and "the agricultural commodity" for "wheat"
in the third sentence, respectively.
Subsecs. (b), (c). Act June 21, 1941, Sec. 6, substituted "the
agricultural commodity" for "wheat" wherever appearing.
Subsec. (d). Act June 21, 1941, Secs. 6, 10, substituted "the
agricultural commodity" for "wheat" wherever appearing, and
inserted second sentence.
Subsec. (e). Act June 21, 1941, Sec. 7, added subsec. (e).
1938 - Subsec. (a). Act June 22, 1938, inserted second proviso in
first sentence.
EFFECTIVE DATE OF 2000 AMENDMENT                 
Amendment by sections 101(a)-(c), 102(a), 103(a), (b)(1), (c),
104, 105(b), and 162 of Pub. L. 106-224 applicable beginning with
the 2001 crop of an agricultural commodity, amendment by sections
101(d), 102(b), and 103(d) of Pub. L. 106-224 applicable beginning
with the 2001 reinsurance year, amendment by sections 101(e), (f),
105(a), 106, 107, 123, 124(a), 144, 145, and 161 of Pub. L. 106-224
effective June 20, 2000, and amendment by section 146 of Pub. L.
106-224 effective Oct. 1, 2000, see section 171 of Pub. L. 106-224,
set out as a note under section 1501 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT                 
Amendment by Pub. L. 105-185 effective July 1, 1998, see section
537 of Pub. L. 105-185, set out as a note under section 1506 of
this title.
EFFECTIVE DATE OF 1994 AMENDMENT                 
Amendment by Pub. L. 103-354 effective Oct. 13, 1994, and
applicable to provision of crop insurance under Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) beginning with 1995 crop
year, with such Act, as in effect on the day before Oct. 13, 1994,
to continue to apply with respect to 1994 crop year, see section
120 of Pub. L. 103-354, set out as a note under section 1502 of
this title.
EFFECTIVE DATE OF 1993 AMENDMENT                 
Amendment by Pub. L. 103-66 effective Oct. 1, 1993, see section
1403(c) of Pub. L. 103-66, set out as a note under section 1506 of
this title.
EFFECTIVE DATE OF 1980 AMENDMENT                 
Section 105 of Pub. L. 96-365 provided that the amendment made by
that section is effective with respect to 1981 and subsequent
crops.
Section 106 of Pub. L. 96-365 provided that the amendment made by
that section is effective with respect to 1981 and subsequent
crops.
Amendment by section 107(b) of Pub. L. 96-365 effective Sept. 26,
1980, see section 112 of Pub. L. 96-365, set out as a note under
section 1504 of this title.
TRANSFER OF FUNCTIONS                       
Administration of program of Federal Crop Insurance Corporation
transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3,
Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note
set out under section 1503 of this title.
Wartime consolidation of Federal Crop Insurance Corporation into
Agricultural Conservation and Adjustment Administration, see note
set out under section 1503 of this title.
EXPANSION OF CROP INSURANCE PILOTS                
Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title II, Sec. 205(b)],
Nov. 29, 1999, 113 Stat. 1536, 1501A-294, provided that: "In the
case of any pilot program offered under the Federal Crop Insurance
Act [7 U.S.C. 1501 et seq.] that was approved by the Board of
Directors of the Federal Crop Insurance Corporation on or before
September 30, 1999, the pilot program may be offered on a regional,
whole State, or national basis for the 2000 and 2001 crop years
notwithstanding section 553 of title 5, United States Code."
LIMITATION ON FEE FOR CATASTROPHIC RISK PROTECTION        
Pub. L. 105-277, div. A, Sec. 101(a) [title VII, Sec. 748], Oct.
21, 1998, 112 Stat. 2681, 2681-32, as amended by Pub. L. 106-224,
title I, Sec. 103(b)(2), June 20, 2000, 114 Stat. 364, provided
that: "Notwithstanding the provisions of section 508(b)(5)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)(A)), for the
1999 reinsurance and subsequent reinsurance years, no producer
shall pay more than $100 per crop per county as an administrative
fee for catastrophic risk protection under section 508(b)(5)(A) of
the Act."
SPECIAL RULE FOR 1996 CROP YEAR REGARDING CATASTROPHIC RISK
PROTECTION INSURANCE
Section 193(a)(3) of Pub. L. 104-127 provided that:
"(A) Effective period. - This paragraph shall apply only to the
1996 crop year.
"(B) Availability. - During a period of not less than 2 weeks,
but not more than 4 weeks, beginning on the date of enactment of
this title [Apr. 4, 1996], the Secretary shall provide producers
with an opportunity to obtain catastrophic risk protection
insurance under section 508(b) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)) for a spring-planted crop, and limited additional
coverage for malting barley under the Malting Barley Price and
Quality Endorsement. The Federal Crop Insurance Corporation may
attach such limitations and restrictions on obtaining insurance
during this period as the Corporation considers necessary to
maintain the actuarial soundness of the crop insurance program.
"(C) Attachment. - Insurance coverage under any policy obtained
under this paragraph during the extended sales period shall not
attach until 10 days after the application.
"(D) Cancellation. - During the extended period, a producer may
cancel a catastrophic risk protection policy if - 
"(i) the policy is a continuation of a policy that was obtained
for a previous crop year; and
"(ii) the cancellation request is made before the acreage
reporting date for the policy for the 1996 crop year."
CROP INSURANCE PILOT PROGRAM                   
Section 193(b) of Pub. L. 104-127 provided that:
"(1) Coverage. - The Secretary of Agriculture shall develop and
administer a pilot project for crop insurance coverage that
indemnifies crop losses due to a natural disaster such as insect
infestation or disease.
"(2) Actuarial soundness. - A pilot project under this paragraph
shall be actuarially sound, as determined by the Secretary and
administered at no net cost.
"(3) Duration. - A pilot project under this paragraph shall be of
two years' duration."
PREVENTED PLANTING                        
Section 116 of Pub. L. 103-354 provided that:
"(a) In General. - Effective for the 1994 crop year, a producer
described in subsection (b) shall receive compensation under the
prevented planting coverage policy provision described in
subsection (b)(1) by - 
"(1) obtaining from the Secretary of Agriculture the applicable
amount that is payable under the conserving use program described
in subsection (b)(4); and
"(2) obtaining from the Federal Crop Insurance Corporation the
amount that is equal to the difference between - 
"(A) the amount that is payable under the conserving use
program; and
"(B) the amount that is payable under the prevented planting
coverage policy.
"(b) Eligible Producers. - Subsection (a) shall apply to a
producer who - 
"(1) purchased a prevented planting policy for the 1994 crop
year from the Federal Crop Insurance Corporation prior to the
spring sales closing date for the 1994 crop year;
"(2) is unable to plant a crop due to major, widespread
flooding in the Midwest, or excessive ground moisture, that
occurred prior to the spring sales closing date for the 1994 crop
year;
"(3) had a reasonable expectation of planting a crop on the
prevented planting acreage for the 1994 crop year; and
"(4) participates in a conserving use program established for
the 1994 crop of wheat, feed grains, upland cotton, or rice
established under section 107B(c)(1)(E), 105B(c)(1)(E),
103B(c)(1)(D), or 101B(c)(1)(D), respectively, of the
Agricultural Act of 1949 ([former] 7 U.S.C. 1445b-3a(c)(1)(E),
1444f(c)(1)(E), 1444-2(c)(1)(D), or 1441-2(c)(1)(D)).
"(c) Oilseed Prevented Planting Payments. - 
"(1) In general. - Effective for the 1994 crop year, a producer
of a crop of oilseeds (as defined in section 205(a) of the
Agricultural Act of 1949 ([former] 7 U.S.C. 1446f(a))) shall
receive a prevented planting payment for the crop if the
requirements of paragraphs (1), (2), and (3) of subsection (b)
are satisfied.
"(2) Source of payment. - The total amount of payments required
under this subsection shall be made by the Federal Crop Insurance
Corporation.
"(d) Payment. - A payment under this section may not be made
before October 1, 1994."
REPORT ON IMPROVING DISSEMINATION OF CROP INSURANCE INFORMATION  
Section 117 of Pub. L. 103-354 provided that: "Not later than 180
days after the date of enactment of this Act [Oct. 13, 1994] and at
the end of each of the 2 1-year periods thereafter, the Federal
Crop Insurance Corporation shall submit a report to Congress
containing a plan to implement a sound program for producer
education regarding the crop insurance program and for the
dissemination of crop insurance information to producers, as
required by section 508(a)(5) of the Federal Crop Insurance Act [7
U.S.C. 1508(a)(5)] (as amended by section 106)."
FEDERAL CROP INSURANCE COMMISSION                 
Pub. L. 100-546, Oct. 28, 1988, 102 Stat. 2730, provided for
establishment, membership, compensation, etc., of Commission for
the Improvement of the Federal Crop Insurance Program, directed
Commission to study and determine why participation in program had
not reached levels anticipated when Federal Crop Insurance Act of
1980 was enacted, to identify States and commodities to which lack
of participation in program is most serious, and to prepare
findings and recommendations setting forth means by which
participation in program could be increased and natural protection
for producers of agricultural commodities could be improved,
required Commission to submit an interim report to Congressional
committees and Secretary of Agriculture, not later than Apr. 1,
1989, containing findings and recommendations for immediate
administrative improvement in program, aimed at improving program
in 1990 sales year, and a final report, not later than July 1,
1989, to include Commission's findings and recommendation and a
status report on improvement of program, authorized Commission to
continue to monitor program and to submit monthly reports beginning
July 1, 1989, and ending Dec. 31, 1990, and terminated Commission
on Dec. 31, 1990.
LOSS ADJUSTMENT OBLIGATIONS                    
Pub. L. 100-203, title I, Sec. 1507, Dec. 22, 1987, 101 Stat.
1330-29, provided that: "It is the sense of Congress that, in
carrying out the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.), the Federal Crop Insurance Corporation - 
"(1) should not be required to assume 100 percent of all loss
adjustments in the Federal crop insurance program; and
"(2) should assume and perform the loss adjustment obligations
of a reinsured company if the Corporation determines that such
company's loss adjustment performance and practices are not
carried out in accordance with the applicable reinsurance
agreement."
NOTICE TO PRODUCERS OF RIGHT TO ELECT SUBSIDIZED CROP INSURANCE OR
DISASTER PAYMENTS ON 1981 CROPS
Section 202 of Pub. L. 96-365 provided that: "The Secretary of
Agriculture, after consultation with the Board of Directors of the
Federal Crop Insurance Corporation, shall, at least sixty days
prior to the beginning of the planting of the 1981 crops of wheat,
feed grains, upland cotton, and rice, or thirty days after the date
of enactment of this Act [Sept. 26, 1980], whichever is the later,
notify producers of those commodities of their right to elect, with
respect to the 1981 crop, between (1) declaring the farm acreage of
the respective commodity eligible for disaster payments under the
Agricultural Act of 1949 [7 U.S.C. 1421 et seq.], or (2) covering
such farm acreage with crop insurance, part of the premium for
which is paid by the Federal Crop Insurance Corporation under the
provisions of section 508(b)(3) or 508(e) of the Federal Crop
Insurance Act [subsec. (b)(3) or (e) of this section]. Such notice
shall include a statement of the percent of crop insurance premium
that will be paid by the Corporation."
STUDY OF ALTERNATIVE ALL-RISK, ALL-CROP INSURANCE PROGRAMS    
Pub. L. 95-181, Sec. 2, Nov. 15, 1977, 91 Stat. 1373, provided
that: "The Secretary of Agriculture shall undertake an immediate
study of alternative programs which could be established for an all-
risk, all-crop insurance to help provide protection to those
suffering crop losses in floods, droughts, and other natural
disasters, including alternative methods of administration, Federal
assistance, reinsurance, rate setting and private insurance
industry involvement, as well as variations on the existing crop
insurance program, and such other matters as he determines are
relevant, and shall report his findings and recommendations to the
President for transmission to the Congress by March 1, 1978. The
Secretary shall consult with the Secretary of Housing and Urban
Development on behalf of the Federal Insurance Administration; the
Secretary of Treasury and representatives of the private insurance
industry in the course of the study and shall identify the views of
each in forwarding his findings and recommendations to the
President. Such sums, not exceeding $200,000, as are appropriated
for fiscal year 1978 under section 504 of the Federal Crop
Insurance Act, as amended [section 1504 of this title], may be
utilized to conduct such a study."
VALIDITY AND TERMINATION OF PRIOR INSURANCE CONTRACTS       
Section 5 of act Aug. 1, 1947, provided: "Nothing in this Act
[amending sections 1502, 1505 (a to d), 1506(d), 1507(d), and 1508
(a to c) of this title] shall be construed to affect the validity
of any insurance contract entered into prior to the enactment of
this Act [Aug. 1, 1947] insofar as such contract covers the 1947
crop year. Any such contract which purports to cover a crop in the
1948 or any subsequent crop year in any county in which insurance
on such crop will be discontinued pursuant to this Act is hereby
terminated at the end of the 1947 crop year."
(!1) See References in Text note below.