TITLE 3

Agriculture

Department of Agriculture

CHAPTER 8. Delaware Agricultural Production Insurance Assistance Program

84 Del. Laws, c. 318, § 1
§ 801. Title.

This chapter shall be known as the “Delaware Agricultural Production Insurance Assistance Program.”

84 Del. Laws, c. 318, § 1

§ 802. Purpose.

It is the declared purpose of this Program to support, encourage, and promote agriculture production in Delaware as a valued and viable occupation. Promoting and supporting the State’s agricultural producers is essential to maintaining agriculture as a viable industry and important contributor to Delaware’s economy. To ensure long-term agricultural production in Delaware it is necessary to adopt and implement an effective permanent program for yield and revenue insurance assistance for Delaware agricultural producers. It is further recognized that a need exists to create sufficient economic incentives to encourage agricultural production given its vulnerability to weather, environmental and economic conditions that can result in low crop yields, and insufficient revenue, making farming unprofitable and unsustainable. It is the purpose and intent of the General Assembly to provide for the creation of a permanent yield and revenue insurance assistance program to serve the long-term needs of producers in Delaware.

84 Del. Laws, c. 318, § 1

§ 803. Definitions.

As used in this chapter:

(1) “Approved insurance providers” means those insurance providers approved by the United States Department of Agriculture’s Risk Management Agency to sell policies and plans of insurance administered by the Federal Crop Insurance Corporation to Delaware’s eligible producers.

(2) “Department” means the Department of Agriculture.

(3) “Eligible producer” means a producer of agricultural commodities, in this State, who qualifies for coverage under the Federal Crop Insurance Act [7 U.S.C. § 1501 et seq.], and is qualified with the Department, in accordance with this chapter.

(4) “Federal Crop Insurance Corporation” means the entity established in 7 U.S.C. § 1508(c)(8) of the Federal Crop Insurance Act [7 U.S.C. § 1501 et seq.], which administers the multi-peril crop insurance and whole farm revenue protection programs for agricultural producers.

(5) “Program” means the Delaware Agricultural Production Insurance Assistance Program.

(6) Qualifying policy” means a policy, or plan of insurance administered by the Federal Crop Insurance Corporation, including crop yield and revenue insurance.

84 Del. Laws, c. 318, § 1

§ 804. Program administration.

(a) This Program is to be administered by the Department and is contingent on the ongoing existence of the Federal Crop Insurance Corporation or a comparable federally-funded program.

(b) The Department is authorized to enter into agreements with the United States Department of Agriculture’s Risk Management Agency, the Federal Crop Insurance Corporation, and the approved insurance providers, for purposes of implementing this Program.

(c) Disbursements by the Department, under this Program, shall be made directly to the Federal Crop Insurance Corporation subject to established bilateral or multilateral agreements.

(d) The Department, in conjunction with the Federal Crop Insurance Corporation, must promote this Program, including providing information on the Department’s website, so as to educate and inform all eligible producers, in the State, of the availability and details of this Program.

(e) The Department must keep all records, related to the Program, including all records and information received from the Federal Crop Insurance Corporation

84 Del. Laws, c. 318, § 1

§ 805. Premium subsidy and eligibility requirements.

(a) Any eligible producer who has already purchased or who shall purchase, prior to the appropriate sales closing date, a qualifying policy in excess of the catastrophic risk protection level of coverage, shall be eligible to receive a State subsidy of up to 30% of the eligible producers’ premium cost, up to a maximum of $10 per acre, under this Program.

(b) The subsidy under this Program is subject to appropriation by the General Assembly and is only for covered commodities during the policy coverage period.

(c) In order to participate in this Program, the eligible producer must comply with all the requirements of this Program, as established by the Department.

84 Del. Laws, c. 318, § 1

§ 806. Funding.

Funding appropriated for this program may be used for the implementation and administration of this Program. Any annual unexpended funds appropriated for this Program will remain with the Program and will not revert to the General Fund of the State.

84 Del. Laws, c. 318, § 1

§ 807. Annual reporting.

By the end of each year, the Department must provide a report to the Chairs of the House and Senate Agriculture Committees of the General Assembly which must include the following:

(1) The number of participating farmers.

(2) A list of all approved participating insurance providers.

(3) The total amount of acreage in the State, broken down by county, that is insured under the Program.

(4) The total amount of net book premium charged to the eligible farmers participating in the Program.

(5) The total paid out by the Department, over the last year, in premium subsidies and incurred Program administrative expenses.

84 Del. Laws, c. 318, § 1

§ 808. Rules and regulations.

The Department may adopt and promulgate such rules and regulations as will be necessary for the implementation of this Program.

84 Del. Laws, c. 318, § 1