(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 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)

^[1] 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) (FOOTNOTE 1) 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