§ 1524. — Education and risk management assistance.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1524]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 1524. Education and risk management assistance
(a) Education assistance
(1) In general
Subject to the amounts made available under paragraph (4)--
(A) the Corporation shall carry out the program established
under paragraph (2); and
(B) the Secretary, acting through the Cooperative State
Research, Education, and Extension Service, shall carry out the
program established under paragraph (3).
(2) Education and information
The Corporation shall establish a program under which crop
insurance education and information is provided to producers in
States in which (as determined by the Secretary)--
(A) there is traditionally, and continues to be, a low level
of Federal crop insurance participation and availability; and
(B) producers are underserved by the Federal crop insurance
program.
(3) Partnerships for risk management education
(A) Authority
The Secretary, acting through the Cooperative State
Research, Education, and Extension Service, shall establish a
program under which competitive grants are made to qualified
public and private entities (including land grant colleges,
cooperative extension services, and colleges or universities),
as determined by the Secretary, for the purpose of educating
agricultural producers about the full range of risk management
activities, including futures, options, agricultural trade
options, crop insurance, cash forward contracting, debt
reduction, production diversification, farm resources risk
reduction, and other risk management strategies.
(B) Basis for grants
A grant under this paragraph shall be awarded on the basis
of merit and shall be subject to peer or merit review.
(C) Obligation period
Funds for a grant under this paragraph shall be available to
the Secretary for obligation for a 2-year period.
(D) Administrative costs
The Secretary may use not more than 4 percent of the funds
made available for grants under this paragraph for
administrative costs incurred by the Secretary in carrying out
this paragraph.
(4) Funding
From the insurance fund established under section 1516(c) of
this title, there is transferred--
(A) for the education and information program established
under paragraph (2), $5,000,000 for fiscal year 2001 and each
subsequent fiscal year; and
(B) for the partnerships for risk management education
program established under paragraph (3), $5,000,000 for fiscal
year 2001 and each subsequent fiscal year.
(b) Agricultural management assistance
(1) Authority
The Secretary shall provide financial assistance to producers in
the States of Connecticut, Delaware, Maryland, Massachusetts, Maine,
Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode
Island, Utah, Vermont, West Virginia, and Wyoming.
(2) Uses
A producer may use financial assistance provided under this
subsection to--
(A) construct or improve--
(i) watershed management structures; or
(ii) irrigation structures;
(B) plant trees to form windbreaks or to improve water
quality;
(C) mitigate financial risk through production or marketing
diversification or resource conservation practices, including--
(i) soil erosion control;
(ii) integrated pest management;
(iii) organic farming; or
(iv) to develop and implement a plan to create marketing
opportunities for the producer, including through value-
added processing;
(D) enter into futures, hedging, or options contracts in a
manner designed to help reduce production, price, or revenue
risk;
(E) enter into agricultural trade options as a hedging
transaction to reduce production, price, or revenue risk; or
(F) conduct any other activity relating to an activity
described in subparagraphs (A) through (E), as determined by the
Secretary.
(3) Payment limitation
The total amount of payments made to a person (as defined in
section 1308(5) \1\ of this title) under this subsection for any
year may not exceed $50,000.
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\1\ See References in Text note below.
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(4) Commodity Credit Corporation
(A) In general
The Secretary shall carry out this subsection through the
Commodity Credit Corporation.
(B) Funding
(i) In general
Except as provided in clause (ii), the Commodity Credit
Corporation shall make available to carry out this
subsection not less than $10,000,000 for each fiscal year.
(ii) Exception
For each of fiscal years 2003 through 2007, the
Commodity Credit Corporation shall make available to carry
out this subsection $20,000,000.
(Feb. 16, 1938, ch. 30, title V, Sec. 524, as added Pub. L. 106-224,
title I, Sec. 133, June 20, 2000, 114 Stat. 387; amended Pub. L. 107-
171, title II, Sec. 2501, May 13, 2002, 116 Stat. 263.)
References in Text
Section 1308(5) of this title, referred to in subsec. (b)(3), was
redesignated section 1308(e) by Pub. L. 107-171, title I,
Sec. 1603(b)(1), May 13, 2002, 116 Stat. 214.
Amendments
2002--Subsec. (b). Pub. L. 107-171 added subsec. (b) and struck out
heading and text of former subsec. (b). Text read as follows:
``(1) Authority.--The Secretary shall provide cost share assistance
to producers, in a manner determined by the Secretary, in not less than
10, nor more than 15, States in which participation in the Federal crop
insurance program is historically low, as determined by the Secretary.
``(2) Uses.--A producer may use cost share assistance provided under
this subsection to--
``(A) construct or improve--
``(i) watershed management structures; or
``(ii) irrigation structures;
``(B) plant trees to form windbreaks or to improve water
quality;
``(C) mitigate financial risk through production diversification
or resource conservation practices, including--
``(i) soil erosion control;
``(ii) integrated pest management; or
``(iii) transition to organic farming;
``(D) enter into futures, hedging, or options contracts in a
manner designed to help reduce production, price, or revenue risk;
``(E) enter into agricultural trade options as a hedging
transaction to reduce production, price, or revenue risk; or
``(F) conduct any other activity related to the activities
described in subparagraphs (A) through (E), as determined by the
Secretary.''
``(2) Payment limitation.--The total amount of payments made to a
person (as defined in section 1308(5) of this title) under this
subsection for any year may not exceed $50,000.
``(3) Commodity credit corporation.--
``(A) In general.--The Secretary shall carry out this subsection
through the Commodity Credit Corporation.
``(B) Funding.--The Commodity Credit Corporation shall make
available to carry out this subsection $10,000,000 for fiscal year
2001 and each subsequent fiscal year.''
Effective Date
Section effective Oct. 1, 2000, see section 171(b)(1)(A) of Pub. L.
106-224, set out as an Effective Date of 2000 Amendment note under
section 1501 of this title.
