CROP INSURANCE.

SEC. 193. CROP INSURANCE. (a) Catastrophic Risk Protection.— (1) Single delivery.— Section 508(b)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(4)) is amended by adding at the end the following: “(C) Delivery of coverage.— “(i) In general.— In full consultation with approved insurance providers, the Secretary may continue to offer catastrophic risk protection in a State (or a portion of a State) through local offices of the Department if the Secretary determines that there is an insufficient number of approved insurance providers operating in the State or portion of the State to adequately provide catastrophic risk protection coverage to producers. “(ii) Coverage by approved insurance providers.— To the extent that catastrophic risk protection coverage by approved insurance providers is sufficiently available in a State (or a portion of a State) as determined by the Secretary, only approved insurance providers may provide the coverage in the State or portion of the State. “(iii) Timing of determinations.— Not later than 90 days after the date of enactment of this subparagraph, the Secretary shall announce the results of the determinations under clause (i) for policies for the 1997 crop year. For subsequent crop years, the Secretary shall make the announcement not later than April 30 of the year preceding the year in which the crop will be produced, or at such other times during the year as the Secretary finds practicable in consultation with affected crop insurance providers for those States (or portions of States) in which catastrophic coverage remains available through local offices of the Department. “(iv) Current policies.— This clause shall take effect beginning with the 1997 crop year. Subject to clause (ii) all catastrophic risk protection policies written by local offices of the Department shall be transferred to the approved insurance provider for performance of all sales, service, and loss adjustment functions. Any fees in connection with such policies that are not yet collected at the time of the transfer shall be payable to the approved insurance providers assuming the policies. The transfer process for policies for the 1997 crop year with sales closing dates before January 1, 1997, shall begin at the time of the Secretary’s announcement under clause (iii) and be completed by the sales closing date for the crop and county. The transfer process for all subsequent policies (including policies for the 1998 and subsequent crop years) shall 110 STAT. 944begin at a date that permits the process to be completed not later than 45 days before the sales closing date.”. (2) Waiver of mandatory linkage.— Section 508(b)(7) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended by striking subparagraph (A) and inserting the following: “(A) In general.— Effective for the spring-planted 1996 and subsequent crops (and fall-planted 1996 crops at the option of the Secretary), to be eligible for any payment or loan under the Agricultural Market Transition Act, for the conservation reserve program, or for any benefit described in section 371 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008f), a person shall— “(i) obtain at least the catastrophic level of insurance for each crop of economic significance in which the person has an interest; or “(ii) provide a written waiver to the Secretary that waives any eligibility for emergency crop loss assistance in connection with the crop.”. (3) Special rule for 1996.— (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, 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. (b) Crop Insurance Pilot Project.— (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. 110 STAT. 945 (c) Crop Insurance for Nursery Crops.— Section 508(a)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding at the end the following: “(D) Addition of nursery crops.— Not later than 2 years after the date of enactment of this subparagraph, the Corporation shall conduct a study and limited pilot program on the feasibility of insuring nursery crops.”. (d) Marketing Windows.— Section 508(j) of the Federal Crop Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the end the following: “(4) Marketing windows.— The Corporation shall consider marketing windows in determining whether it is feasible to require planting during a crop year.”. (e) Funding.— (1) Mandatory expenses.— Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended— (A) by inserting “and” at the end of subparagraph (A); (B) by striking “; and” at the end of subparagraph (B) and inserting a period; and (C) by striking subparagraph (C). (2) Funding of sales commissions.— Section 516(b) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)) is amended— (A) in paragraph (1)— (i) by striking “(A) In general” and all that follows through “subparagraph (B), in” and inserting “In”; and (ii) by striking subparagraph (B); and (B) in paragraph (2)(B), by striking “subject to paragraph (1)(B)”. (3) Other expenses.— Section 516(b)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by striking “, noninsured assistance benefits,”. (f) Limitation on Multiple Benefits for Same Loss.— Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the end the following: “(n) Limitation on Multiple Benefits for Same Loss.— If a producer who is eligible to receive benefits under catastrophic risk protection under subsection (b) is also eligible to receive assistance for the same loss under any other program administered by the Secretary, the producer shall be required to elect whether to receive benefits under this title or under the other program, but not both. A producer who purchases additional coverage under subsection (c) may also receive assistance for the same loss under other programs administered by the Secretary, except that the amount received for the loss under the additional coverage together with the amount received under the other programs may not exceed the amount of the actual loss of the producer.”.