CATASTROPHIC RISK PROTECTION.

SEC. 103. CATASTROPHIC RISK PROTECTION. (a) Alternative Coverage.—Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) and inserting the following: “(3) Alternative catastrophic coverage.—Beginning with the 2001 crop year, the Corporation shall offer producers of an agricultural commodity the option of selecting either of the following: “(A) The catastrophic risk protection coverage available under paragraph (2)(A). “(B) An alternative catastrophic risk protection coverage that— “(i) indemnifies the producer on an area yield and loss basis if such a policy or plan of insurance is offered for the agricultural commodity in the county in which the farm is located; “(ii) provides, on a uniform national basis, a higher combination of yield and price protection than the coverage available under paragraph (2)(A); and “(iii) the Corporation determines is comparable to the coverage available under paragraph (2)(A) for purposes of subsection (e)(2)(A).”. (b) Administrative Fee.— (1) Revised fee.—Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended— (A) in subparagraph (A), by striking “$50” and inserting “$100”; (B) by striking subparagraph (B); and (C) in subparagraph (C), by striking “amounts required under subparagraphs (A) and (B)” and inserting “administrative fee required by this paragraph”. (2) Conforming amendment.—Section 748 of the Agriculture, Rural Development, Food and Drug Administration, 114 STAT. 365 and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105–277; 7 U.S.C. 1508 note), is amended by striking “$50” and inserting “$100”. (c) Payment of Administrative Fee on Behalf of Producers.—Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended by inserting after subparagraph (A) the following: “(B) Payment on behalf of producers.— “(i) Payment authorized.—if State law permits a licensing fee or other payment to be paid by an insurance provider to a cooperative association or trade association and rebated to a producer with catastrophic risk protection or additional coverage, a cooperative association or trade association located in that State may pay, on behalf of a member of the association in that State or a contiguous State who consents to be insured under such an arrangement, all or a portion of the administrative fee required by this paragraph for catastrophic risk protection. “(ii) Treatment of licensing fees.—A licensing fee or other payment made by an insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage to members of the cooperative association or trade association shall be subject to the laws regarding rebates of the State in which the fee or other payment is made. “(iii) Selection of provider.—Nothing in this subparagraph limits the option of a producer to select the licensed insurance agent or other approved insurance provider from whom the producer will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). “(iv) Delivery of insurance.—A policy or plan of insurance for which a payment is made under clause (i) shall be delivered by a licensed insurance agent or other approved insurance provider. “(v) Additional coverage encouraged.—A cooperative association or trade association, and any approved insurance provider with whom a licensing fee or other arrangement under this subparagraph is made, shall encourage producer members to purchase appropriate levels of additional coverage in order to meet the risk management needs of the member producers. “(vi) Report.—Not later than April 1, 2002, the Secretary 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 evaluates— “(I) the operation of this subparagraph; and “(II) the impact of this subparagraph on participation in the Federal crop insurance program, including the impact on levels of coverage purchased.”. 114 STAT. 366 (d) Reimbursement Rate Change.—Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking “11 percent” and inserting “8 percent”.