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7 U.S.C. § 1503 — Federal Crop Insurance Corporation; creation; offices
Federal law — U.S. Code and appendices · legal_authorities
To carry out the purposes of this subchapter, there is hereby created as an agency of and within the Department a body corporate with the name “Federal Crop Insurance Corporation”. The principal office of the Corporation shall be located in the District of Columbia, but there may be established agencies or branch offices elsewhere in the United States under rules and regulations prescribed by the Board.
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Stable record: federal_law:legal_authorities:record_usc_5eb209073cc7bec15f50418b
Source file: Laws/federal/codes/united-states-code/title-7/section-1503-federal-crop-insurance-corporation-creation-offices--5b55d71593.md
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Passage SHA-256: 9c0146411a2f2a16405df4acd0b415566de210db251ff74cc798535c6aba7089
Source location: Title 7, Chapter 36, § 1503; chapter-036-crop-insurance.md
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To carry out the purposes of this subchapter, there is hereby created as an agency of and within the Department a body corporate with the name “Federal Crop Insurance Corporation”. The principal office of the Corporation shall be located in the District of Columbia, but there may be established agencies or branch offices elsewhere in the United States under rules and regulations prescribed by the Board.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose** It is the purpose of this subchapter to promote the national welfare by improving the economic stability of agriculture through a sound system of crop insurance and providing the means for the research and experience helpful in devising and establishing such insurance.
**(b) Definitions** As used in this subchapter:
(1) **Additional coverage** — The term “additional coverage” means a plan of crop insurance coverage providing a level of coverage greater than the level available under catastrophic risk protection.
(2) **Approved insurance provider** — The term “approved insurance provider” means a private insurance provider that has been approved by the Corporation to provide insurance coverage to producers participating in the Federal crop insurance program established under this subchapter.
(3) **Beginning farmer or rancher** — The term “beginning farmer or rancher” means a farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years, as determined by the Secretary.
(4) **Board** — The term “Board” means the Board of Directors of the Corporation established under [section 1505(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1505/a&num=0&edition=prelim).
(5) **Corporation** — The term “Corporation” means the Federal Crop Insurance Corporation established under [section 1503 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1503&num=0&edition=prelim).
(6) **Cover crop termination** — The term “cover crop termination” means a practice that historically and under reasonable circumstances results in the terminatio
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1502
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** In this section:
(1) **Agricultural commodity** — The term “agricultural commodity” has the meaning given the term in [section 5602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section5602&num=0&edition=prelim).
(2) **Geographically disadvantaged farmer or rancher** — The term “geographically disadvantaged farmer or rancher” has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 ([7 U.S.C. 2204](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2204&num=0&edition=prelim) note; Public Law 107–171).
**(b) Authorization** Subject to the availability of funds under subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).
**(c) Transportation**
(1) **In general** — Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) **Proof of eligibility** — To be eligible to receive assistance under paragraph (1), a geographically disadvantaged farmer or rancher shall demonstrate to the Secretary that transportation of the agricultural commodity or inputs occurred over a distance of more than 30 miles, as determined by the Secretary.
(3) **Amount**
(A) *In general* — Subject to paragraph (2), the amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under this section for a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically di
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 8701
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Federal law — U.S. Code and appendices · legal_authorities
This subchapter may be cited as the “Federal Crop Insurance Act”. Except as otherwise expressly provided the provisions in titles I to IV, inclusive, shall not apply with respect to this subchapter, and the term “Act” wherever it appears in such titles shall not be construed to include this subchapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1501
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Subscription by United States** The Corporation shall have a capital stock of $500,000,000 subscribed by the United States of America, payment for which shall, with the approval of the Secretary, be subject to call in whole or in part by the Board.
**(b) Appropriations** There is authorized to be appropriated such sums as are necessary for the purpose of subscribing to the capital stock of the Corporation.
**(c) Issuance of stock to Secretary of the Treasury** Receipts for payments by the United States of America for or on account of such stock shall be issued by the Corporation to the Secretary of the Treasury and shall be evidence of the stock ownership by the United States of America.
**(d) Cancellation of receipts; nonliability of Corporation** Within thirty days after September 26, 1980, the Secretary of the Treasury shall cancel, without consideration, receipts for payments for or on account of the stock of the Corporation outstanding on September 26, 1980, and such receipts shall cease to be liabilities of the Corporation.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1504
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Federal law — U.S. Code and appendices · legal_authorities
The payment for capital stock in the Federal Crop Insurance Corporation shall be effected by transfer of funds on the books of the Treasury Department to the credit of the Corporation.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1504a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Board of Directors**
(1) **Establishment** — The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary.
(2) **Composition** — The Board shall consist of only the following members:
(A) The manager of the Corporation, who shall serve as a nonvoting ex officio member.
(B) The Under Secretary of Agriculture responsible for the Federal crop insurance program.
(C) One additional Under Secretary of Agriculture (as designated by the Secretary).
(D) The Chief Economist of the Department of Agriculture.
(E) One person experienced in the crop insurance business.
(F) One person experienced in reinsurance or the regulation of insurance.
(G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a cross-section of agricultural commodities grown in the United States, including at least one specialty crop producer.
(3) **Appointment of private sector members** — The members of the Board described in subparagraphs (E), (F), and (G) of paragraph (2)—
(A) shall be appointed by, and hold office at the pleasure of, the Secretary;
(B) shall not be otherwise employed by the Federal Government;
(C) shall be appointed to staggered 4-year terms, as determined by the Secretary; and
(D) shall serve not more than two consecutive terms.
(4) **Chairperson** — The Board shall select a member of the Board to serve as Chairperson.
**(b) Vacancies** Vacancies in the Board so long as there shall be four members in office shall not impair the powers of the Board to execute the functions of the Corporation, and four of the members in office shall constitute a quorum for the transaction of the business of the Board.
**(c) Compensation
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1505
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Succession** The Corporation shall have succession in its corporate name.
**(b) Corporate seal** The Corporation may adopt, alter, and use a corporate seal, which shall be judicially noticed.
**(c) Property** The Corporation may purchase or lease and hold such real and personal property as it deems necessary or convenient in the transaction of its business, and may dispose of such property held by it upon such terms as it deems appropriate.
**(d) Suit** Subject to [section 1508(j)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1508/j/2/A&num=0&edition=prelim), the Corporation, subject to the provisions of [section 1508(j) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1508/j&num=0&edition=prelim),11 So in original. may sue and be sued in its corporate name, but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Corporation or its property. The district courts of the United States, including the district courts of the District of Columbia and of any territory or possession, shall have exclusive original jurisdiction, without regard to the amount in controversy, of all suits brought by or against the Corporation. The Corporation may intervene in any court in any suit, action, or proceeding in which it has an interest. Any suit against the Corporation shall be brought in the District of Columbia, or in the district wherein the plaintiff resides or is engaged in business.
**(e) Bylaws and regulations** The Corporation may adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which its business may be conducted and the powers granted to it by law may be exercised and enjoyed.
**(f) Mails**
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1506
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Appointment; civil service exemption; compensation** The Secretary shall appoint such officers and employees as may be necessary for the transaction of the business of the Corporation pursuant to civil-service laws and regulations, fix their compensation in accordance with the provisions of chapter 51 and subchapter III of chapter 53 of title 5, define their authority and duties, and delegate to them such of the powers vested in the Corporation as the Secretary may determine appropriate. However, personnel paid by the hour, day, or month when actually employed may be appointed without regard to civil-service laws and regulations.
**(b) Application of employees’ compensation law** Insofar as applicable, the benefits of subchapter I of chapter 81 of title 5, shall extend to persons given employment under the provisions of this subchapter, including the employees of the committees and associations referred to in subsection (c) of this section and the members of such committees.
**(c) Use of associations of producers and private insurance companies; payment of administrative and program expenses; sale of crop insurance through private agents and brokers: renewals, exclusion of compensation from premium rates, indemnification for errors or omissions of Commission or its contractors** In the administration of this subchapter, the Board shall, to the maximum extent possible, (1) establish or use committees or associations of producers and make payments to them to cover the administrative and program expenses, as determined by the Board, incurred by them in cooperating in carrying out this subchapter, (2) contract with private insurance companies, private rating bureaus, and other organizations as appropriate for actuarial services, services relating to loss adjustment
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1507
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to offer insurance**
(1) **In general** — If sufficient actuarial data are available (as determined by the Corporation), the Corporation may insure, or provide reinsurance for insurers of, producers of agricultural commodities grown in the United States under 1 or more plans of insurance determined by the Corporation to be adapted to the agricultural commodity concerned. To qualify for coverage under a plan of insurance, the losses of the insured commodity must be due to drought, flood, or other natural disaster (as determined by the Secretary).
(2) **Period** — Except in the cases of tobacco, potatoes, sweet potatoes, and hemp, insurance shall not extend beyond the period during which the insured commodity is in the field. As used in the preceding sentence, in the case of an aquacultural species, the term “field” means the environment in which the commodity is produced.
(3) **Exclusion of losses due to certain actions of producer**
(A) *Exclusions* — Insurance provided under this subsection shall not cover losses due to—
(i) the neglect or malfeasance of the producer;
(ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or
(iii) the failure of the producer to follow good farming practices, including scientifically sound sustainable and organic farming practices.
(B) *Good farming practices determination review*
(i) *Informal administrative process* — A producer shall have the right to a review of a determination regarding good farming practices made under subparagraph (A)(iii) in accordance with an informal administrative process to be established by the Corporation.
(ii) *Administrative review*
(I) *No adverse decision* — The determi
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1508
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Federal law — U.S. Code and appendices · legal_authorities
Claims for indemnities under this subchapter shall not be liable to attachment, levy, garnishment, or any other legal process before payment to the insured or to deduction on account of the indebtedness of the insured or the estate of the insured to the United States except claims of the United States or the Corporation arising under this subchapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1509
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