Page:United States Statutes at Large Volume 114 Part 1.djvu/397

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PUBLIC LAW 106-224-JUNE 20, 2000 114 STAT. 361 " (C) OTHER AUTHORIZED APPROACHES.—The expected market price of an agricultural commodity— "(i) may be based on the actual market price of the agricultural commodity at the time of harvest, as determined by the Corporation; "(ii) in the case of revenue and other similar plans of insurance, may be the actual market price of the agricultural commodity, as determined by the Corporation; "(iii) in the case of cost of production or similar plans of insurance, shall be the projected cost of producing the agricultiu-al commodity, as determined by the Corporation; or "(iv) in the case of other plans of insurance, may be an appropriate amount, as determined by the Corporation.". (b) PREMIUM AMOUNTS.— Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended— (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: "(B) In the case of additional coverage equal to or greater than 50 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount of the premium shall— "(i) be sufficient to cover anticipated losses and a reasonable reserve; and "(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry-wide basis as a percentage of the amount of the premium used to define loss ratio."; and (2) by adding at the end the following: "(3) PERFORMANCE-BASED DISCOUNT.—The Corporation may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers of that agricultural commodity in the same area, as determined by the Corporation.". (c) PAYMENT SCHEDULE. —Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended— (1) in the matter preceding the subparagraphs, by striking "The amount" and inserting "Subject to paragraph (4), the amount"; and (2) by striking subparagraphs (B) and (C) and inserting the following: "(B) In the case of additional coverage equal to or greater than 50 percent, but less than 55 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individued yield, the amoiint shall be equal to the sum of— "(i) 67 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and