Page:United States Statutes at Large Volume 108 Part 4.djvu/551

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PUBLIC LAW 103-354—OCT. 13, 1994 108 STAT. 3185 producer coverage for a 50 percent loss in yield, on an individual yield or area jdeld basis, indemnified at 55 percent of the expected market price, or a comparable coverage (as determined by the Corporation). (B) REDUCTION IN ACTUAL PAYMENT. — The amount paid to a producer on a claim under catastrophic risk protection may reflect a reduction that is proportional to the out-of-pocket expenses that are not incurred by the producer as a result of not planting, growing, or harvesting the crop for which the claim is made, as determined by the Corporation. "(3) YIELD AND LOSS BASIS. —A producer shall have the option of basing the catastrophic coverage of the producer on an individual yield and loss basis or on aoa. area yield and loss basis, if born options are offered by the Corporation. "(4) SALE OF CATASTROPHIC RISK COVERAGE. — "(A) IN GENERAL.— Catastrophic risk coverage may be offered by— (i) approved insurance providers, if available in an area; and "(ii) at the option of the Secretary that is based on considerations of need, local offices of the Department "(B) NEED. —For piuposes of considering need under subparagra^ (A)(ii), the Secretary may take into account the most efficient and cost-effective use of resources, the availability of personnel, fairness to local producers, the needs and convenience of local producers, and the availability of private insurance carriers. "(5) ADMINISTRATIVE FEE. — "(A) FEE REQUIRED. —Producers shall pay an administrative fee for catastrophic risk protection. The administrative fee for each producer shall be $50 per crop per county, but not to exceed $200 per producer per county up to a maximum of $600 per producer for all counties in which a producer has insured crops. The administrative fee shall be paid by the producer at the time the producer apphes for catastrophic risk protection. "(B) USE OF FEES.—

    • (i) FEES UP TO $IOO.—

"(I) FEES COLLECTED BY USDA OFFICES.— Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an office of the Department shall be credited to the appropriations account providing funds for the payment of operating and administrative expenses incurred for the delivery of catastrophic risk protection under this section. The fees shall be collected in accordance with appropriation Acts and shall be available until expended without fiscal year limitation for the payment of the expenses. "(II) FEES COLLECTED BY APPROVED INSURANCE PROVIDERS.—Not more than $100 of the administrative fees paid by a producer for catastrophic risk coverage that are collected by an approved insurance provider shall be retained by the pro-