12 2 STA T . 1 376PUBLIC LA W 11 0– 23 4—M A Y 22 , 200 8SEC.120 10. PR E MIU MRE D UC T I ONA UT H ORIT Y . Subsection508( e ) o f t h e F e d e ralC ro pI nsurance A ct( 7U. S.C. 1 508(e)) is a m ended — (1) in para g raph ( 2 ) , b y stri k ing ‘ ‘paragraph ( 4 ) ’ ’ and inserting ‘‘paragraph ( 3 )’’
(2) by striking paragraph (3); and (3) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respecti v ely. SEC. 12011. ENTERPRISE AND W HO L E F ARM UNITS. Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as amended by section 12010) is amended by adding at the end the follo w ing
‘‘(5) ENTERP R IS E A N DWHOL E F AR MU NITS.— ‘‘(A) IN G ENERAL.— T he Corporation may carry out a pilot program under which the Corporation pays a portion of the premiums for plans or policies of insurance for which the insurable unit is defined on a whole farm or enterprise unit basis that is higher than would otherwise be paid in accordance with paragraph (2). ‘‘( B ) AMOUNT.—The percentage of the premium paid by the Corporation to a policyholder for a policy with an enterprise or whole farm unit under this paragraph shall, to the ma x imum extent practicable, provide the same dollar amount of premium subsidy per acre that would otherwise have been paid by the Corporation under paragraph (2) if the policyholder had purchased a basic or optional unit for the crop for the crop year. ‘‘(C) L IMITATION.—The amount of the premium paid by the Corporation under this paragraph may not exceed 80 percent of the total premium for the enterprise or whole farm unit policy.’’. SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA RE V ENUE PLANS. Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as amended by section 12011) is amended— (1) in paragraph (2), in the matter preceding subparagraph (A), by striking ‘‘paragraph (4)’’ and inserting ‘‘paragraphs (4), ( 6 ), and (7)’’; and (2) by adding at the end the following: ‘‘(6) P REMIUM SU B SID Y FOR AREA RE V ENUE PLANS.—Sub j ect to paragraph (4), in the case of a policy or plan of insurance that covers losses due to a reduction in revenue in an area, the amount of the premium paid by the Corporation shall be as follows: ‘‘(A) In the case of additional area coverage e q ual to or greater than 70 percent, but less than 75 percent, of the recorded county yield indemnified at not greater than 100 percent of the expected market price, the amount shall be equal to the sum of— ‘‘(i) 5 9 percent of the amount of the premium estab - lished under subsection (d)(2)(B)(i) for the coverage level selected; and ‘‘(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover oper- ating and administrative expenses.
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