The program delivery system has been shifted largely to the private sector to comply with the mandate in the Federal Crop Insurance Act of 1980. The act requires that, to the maximum extent possible, the Corporation contract with private insurance companies and encourage the sale of crop insurance through licensed agents and brokers.

In response to the congressional mandate, the Corporation now offers insurance through two basic delivery systems: Sales and Service Agencies (Master Marketers) and private insurance companies that it reinsures. Compensation rates are different under each sales agreement because the amount of risk assumed and service provided under each delivery system is different. Master Marketers provide management, supervision of at least 25 or more agents, and contract servicing, with the exception of loss adjustment. All loss adjustment and claims functions on policies sold by Master Marketers are carried out by FCIC, as well as many other activities, including agent and loss adjuster training, marketing services, and quality control.

Reinsured companies offer crop insurance under their own brand names and provide marketing, distribution, servicing, training, quality control, premium collection, and loss adjustment functions. The Corporation reinsures these companies against extraordinary operational and actuarial losses. In certain areas of the country where an adequate private sales and service force is not available, FCIC uses the services of ASCS county offices.

Federal Crop Insurance covers unavoidable production losses due to any adverse weather conditions including drought, excessive rain, hail, wind, hurricanes, tornadoes, and lightning. It also covers unavoidable losses due to insect infestation, plant disease, floods, fires, and earthquakes.

Crop insurance does not cover losses due to neglect, poor farming practices, or theft. Nor does it cover financial losses resulting from low prices received for farm products. Participation in the program is voluntary and the producer must pay a premium for the protection.

The flexibility of crop insurance policies offers choices of guaranteed yield amounts and prices to be paid on each bushel or pound of loss. The cost of insurance, which is a fully deductible business expense, depends on the level of protection selected. Farmers can insure their crops for 50, 65, or 75 percent of yield. If their harvest is less than the insured level because of natural conditions, the insurance pays the difference. Farmers select their own rate of payment by electing one of the three levels of payment when they buy the insurance. Growers get special low-cost premium rates because the Government pays 30 percent of the premium cost up to the 65-percent coverage level.

Crop insurance is now more specifically tailored to the individual farmer's needs by the Actual Production History (APH) Program. APH allows yield guarantees based upon the individual's verifiable production history.

APH is being extended to all basic crops and gives greater credit for higher yields, thus making it more attractive for productive farmers to elect crop insurance coverage.

The Federal Crop Insurance Act of 1980 directs the Corporation to develop an actuarially sound system of insurance so that the premiums will cover indemnities paid and build a reasonable premium reserve.

Administrative and other costs are financed by annual appropriations. Premium rates vary throughout the Nation and even within counties, reflecting differences in productivity and the risk of loss.

various commodities. Portions of these funds are transferred to the Food and Nutrition Service of USDA and to the Department of Commerce. Remaining funds are used to purchase commodities for the National School Lunch Program and other feeding programs, for diversion to other outlets, and for administering agreement and order programs. Regulatory Programs AMS administers several regulatory programs designed collectively to protect producers, handlers, and consumers of agricultural commodities from financial loss or personal injury resulting from careless, deceptive, or fraudulent marketing practices.

AMS regulatory programs encourage fair trading practices in the marketing of fruits and vegetables; require truth in seed labeling and advertising; and protect farmers' rights to organize cooperatives.

Under the Egg Products Inspection Act (84 Stat. 1620 et seq.; 21 U.S.C. 10311056), AMS provides mandatory inspection for wholesomeness in all plants processing liquid, dried, or frozen egg products, and controls the disposition of restricted shell eggs-eggs that are a potential health hazard. Marketing Agreements and Orders These programs, under authority of the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.), help to establish and maintain orderly marketing conditions for certain commodities. Milk marketing orders establish minimum prices that handlers or distributors are required to pay producers. Programs for fruits, vegetables, and related specialty crops like nuts and spearmint oil help stabilize supplies and market prices. In some cases, they also authorize research and market development activities, including advertising supported by assessments that handlers pay. Through orderly marketing, adjusting the supply to demand, and avoiding unreasonable fluctuations during the marketing season, the income of producers is increased by normal market forces, and consumer interests are protected through quality and quantity control.

AMS does not seek to impose these programs upon farm industries. Instead,

the agency furnishes technical guidance to farmers and handlers who want to make use of the programs. In carrying out the Government role, AMS ensures that persons interested in the development and operation of the programs have a fair hearing and that each marketing order works according to Federal law and established rules and guidelines.

Plant Variety Protection Program Under authority of the Plant Variety Protection Act (7 U.S.C. 2321 et seq.), AMS administers a program that provides for the issuance of "certificates of plant variety protection." These certificates afford developers of novel varieties of sexually reproduced plants exclusive rights to sell, reproduce, import, or export such varieties, or use them in the production of hybrids or different varieties for a period of 18 years. Research and Promotion Programs AMS monitors certain industry-sponsored research, promotion, and information programs authorized by Federal laws. These programs provide farmers with a means to finance and operate various research, promotion, and information activities for cotton, potatoes, eggs, milk and dairy products, beef, pork, honey, wool, lamb, and mohair.

Other Marketing Services Other marketing service activities of AMS include financial grants to States for marketing improvement projects. AMS also has responsibility for the conduct of studies of the facilities and methods used in the physical distribution of food and other farm products; for research

designed to improve the handling of all agricultural products as they move from farm to consumers; and for increasing marketing efficiency by developing improved operating methods, facilities, and equipment for processing, handling, and distributing dairy, poultry, and meat products.

Field Organization AMS programs and activities in the field are carried out through a variety of different types of organizations reporting to their respective Washington components.

For further information, contact the Information

Staff, Agricultural Marketing Service, Department of Agriculture, Washington, DC 20250. Phone, 202-447-8999.

Animal and Plant Health
Inspection Service

[For the Animal and Plant Health Inspection Service statement of organization, see the Code of Federal Regulations, Title 7, Part 371]

The Animal and Plant Health Inspection Service (APHIS) was reestablished by the Secretary of Agriculture March 14, 1977, pursuant to authority contained in 5 U.S.C. 301 and Reorganization Plan No. 2 of 1953 (5 U.S.C. App.).

APHIS was established to conduct regulatory and control programs to protect and improve animal and plant health for the benefit of man and the environment. In cooperation with State governments, the Service administers Federal laws and regulations pertaining to animal and plant health and quarantine, humane treatment of animals, and the control and eradication of pests and diseases.

Plant Protection and Quarantine Programs Plant protection officials are responsible for programs to control or eradicate plant pests and diseases. These programs are carried out in cooperation with the States involved, other Federal agencies, farmers, and private organizations. Programs are carried out in cooperation with Canada, Mexico, and other nations when the pest is a joint problem or presents a threat to this country. Pest control programs use a single tool or a combination of pest control techniques, both chemical and nonchemical, which are both effective and safe.

Agricultural quarantine inspection officials administer Federal regulations that prohibit or restrict the entry of foreign pests and plants, plant products, animal products and byproducts, and other materials that may harbor pests. Inspection service is maintained at all major ocean, air, border, and interior ports of entry in the continental United States and in Hawaii, Alaska, Puerto Rico, American Virgin Islands, Bahamas, and Bermuda. Services also are provided on a regular or on-call basis at some 500 outlying ports and military installations

throughout the country. In addition, inspectors work in several foreign countries. Other responsibilities include the inspection and certification of domestic commodities for export, regulation of the import and export of endangered plant species, ensuring that imported seed is free of noxious weeds, and regulation of genetically engineered organisms and products that present a plant pest risk.

Veterinary Services Programs Veterinary Services officials are responsible for determining the existence and extent of outbreaks of communicable diseases and pests affecting livestock and poultry. They organize and conduct control and eradication programs in cooperation with State officials, and cooperate with animal health officials in other countries in planning and conducting disease control efforts in those countries.

Veterinary Services officials maintain inspection and quarantine service at designated ports of entry for imported animals and birds. They are responsible for the health certification of livestock and poultry exported to other countries. Veterinary Services also administers Federal laws concerned with the humane handling of livestock and poultry in interstate commerce and governing the transportation, sale, and handling of dogs, cats, circus and zoo animals, and

other animals intended to be sold at the wholesale level or to be used in laboratory research or for exhibition. Veterinary Services is responsible for enforcement of the Horse Protection Act of 1970 (84 Stat. 1404; 15 U.S.C. 1821 note), a Federal law that prohibits soring of horses shipped interstate to be shown or sold.

Veterinary Services officials are also responsible for administering a Federal law intended to ensure that all veterinary biological products, developed by conventional or new biotechnological procedures, used in the diagnosis, prevention, and treatment of animal diseases are pure, safe, potent, and effective. This responsibility is met through a program regulating firms that manufacture veterinary biological