CROP INSURANCE COVERAGE FOR THE 1990 CROPS.

SEC. 107. CROP INSURANCE COVERAGE FOR THE 1990 CROPS. (a) Requirement.—Subject to the limitations under subsection (b), producers on a farm, to be eligible to receive a disaster payment under this subtitle, an emergency loan under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) for crop losses due to damaging weather or related condition in 1988 or 1989, or forgiveness of the repayment of advance deficiency 103 STAT. 574 payments under section 101(b), must agree to obtain multiperil crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the 1990 crop of the commodity for which such payments, loans, or forgiveness are sought. (b) Limitations.—Producers on a farm shall not be required to agree to obtain crop insurance under subsection (a) for a commodity— (1) unless such producers’ deficiency in production, with respect to the crop for which a disaster payment under this subtitle otherwise may be made, exceeds 65 percent; (2) where, or if, crop insurance coverage is not available to the producers for the commodity for which the payment, loan, or forgiveness is sought; (3) if the producers’ annual premium rate for such crop insurance is an amount greater than 125 percent of the average premium rate for insurance on that commodity for the 1989 crop in the county in which the producers are located; (4) in any case in which the producers’ annual premium for such crop insurance is an amount greater than 25 percent of the amount of the payment, loan, or forgiveness sought; or (5) if the producers can establish by appeal to the county committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590(b)), or to the county committee established under section 332 of the Consolidated Farm and Rural Development Act (17 U.S.C. 1982), as appropriate, that the purchase of crop insurance would impose an undue financial hardship on such producers and that a waiver of the requirement to obtain crop insurance should, in the discretion of the county committee, be granted. (c) Implementation.— (1) County committees.—The Secretary of Agriculture shall ensure (acting through the county committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act and located in the counties in which the assistance programs provided for under sections 101 through 105 are implemented and through the county committees established under section 332 of the Consolidated Farm and Rural Development Act in counties in which emergency loans, as described in subsection (a), are made available) that producers who apply for assistance, as described in subsection (a), obtain multi peril crop insurance as required under this section. (2) Other sources.—Each producer who is subject to the requirements of this section may comply with such requirements by providing evidence of multi peril crop insurance coverage from sources other than through the county committee office, as approved by the Secretary. (3) Commissions.—The Secretary shall provide by regulation for a reduction in the commissions paid to private insurance agents, brokers, or companies on crop insurance contracts entered into under this section sufficient to reflect that such insurance contracts principally involve only a servicing function to be performed by the agent, broker, or company. (d) Repayment of Benefits.—Notwithstanding any other provision of law, if (prior to the end of the 1990 crop year for the commodity involved) the crop insurance coverage required of the producer under this section is canceled by the producer, the producer— 103 STAT. 575 (1) shall make immediate repayment to the Secretary of any disaster payment or forgiven advance deficiency payment that the producer otherwise is required to repay; and (2) shall become immediately liable for full repayment of all principal and interest outstanding on any emergency loan described in subsection (a) made subject to this section.