[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1825 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1825

  To amend the Federal Crop Insurance Act to require the Federal Crop 
  Insurance Corporation to offer farmers supplemental crop insurance 
 based on an area yield and loss plan of insurance or an area revenue 
               plan of insurance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2007

Mr. Neugebauer introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
  To amend the Federal Crop Insurance Act to require the Federal Crop 
  Insurance Corporation to offer farmers supplemental crop insurance 
 based on an area yield and loss plan of insurance or an area revenue 
               plan of insurance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AVAILABILITY OF SUPPLEMENTAL CROP INSURANCE BASED ON AREA 
              YIELD AND LOSS PLAN OF INSURANCE OR AREA REVENUE PLAN OF 
              INSURANCE.

    (a) In General.--Section 508(c) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(c)) is amended by adding at the end the following new 
paragraph:
            ``(11) Supplemental area coverage.--
                    ``(A) Availability of coverage.--Notwithstanding 
                paragraph (4), if area coverage is available in an area 
                (as determined by the Corporation under paragraph (3)), 
                the Corporation shall provide eligible producers in 
                that area with the option to purchase supplemental 
                insurance coverage based on--
                            ``(i) an area yield and loss plan of 
                        insurance; or
                            ``(ii) an area revenue plan of insurance 
                        that includes coverage for a loss in yield.
                    ``(B) Eligible producers.--To be eligible to obtain 
                supplemental coverage under this paragraph, a producer 
                must purchase either an individual yield and loss plan 
                of insurance or a revenue plan of insurance that 
                includes coverage for a loss in yield at an additional 
                coverage level for the same crop to be covered by the 
                supplemental coverage.
                    ``(C) Limitation.--In providing supplemental 
                coverage to a producer under this paragraph, the sum of 
                the following shall not exceed 100 percent:
                            ``(i) The coverage level expressed in 
                        percentage terms for the individual yield and 
                        loss plan of insurance or the revenue plan of 
                        insurance that includes coverage for a loss in 
                        yield that is purchased by the producer for the 
                        same crop covered by the supplemental coverage, 
                        as required by subparagraph (B).
                            ``(ii) The share expressed in percentage 
                        terms of the area yield and loss plan of 
                        insurance or the area revenue plan of insurance 
                        (at whatever coverage level is selected) that 
                        is used to determine the level of supplemental 
                        insurance coverage provided the producer under 
                        this paragraph.
                    ``(D) Payment of portion of premium.--As provided 
                in subsection (e), the Corporation shall pay a portion 
                of the premium for supplemental coverage under this 
                paragraph and the associated individual area yield and 
                loss plan of insurance or revenue plan of insurance 
                that includes coverage for a loss in yield.
                    ``(E) Amount of indemnity paid under supplemental 
                coverage.--The indemnity payable under supplemental 
                coverage provided under this paragraph shall be 
                calculated as--
                            ``(i) the total indemnity for the area 
                        yield and loss plan of insurance or area 
                        revenue plan of insurance, at the coverage 
                        level chosen by the producer; multiplied by
                            ``(ii) the share of the coverage of the 
                        area yield and loss plan of insurance or area 
                        revenue plan of insurance selected by the 
                        producer.
                    ``(F) Special rule relating to qualifying losses.--
                In the case of a qualifying loss in an area (as 
                determined by the Corporation) under supplemental 
                coverage provided under this paragraph, subject to the 
                applicable coverage limits, the total amount of the 
                indemnity shall be available to the producer regardless 
                of the loss incurred under the individual yield and 
                loss plan of insurance or the revenue plan of insurance 
                that includes coverage for a loss in yield of the 
                producer.
                    ``(G) Reinsurance year.--Subject to the 
                availability of area yield and loss or revenue coverage 
                for an insurable crop in an area (as determined by the 
                Corporation), the Corporation shall provide 
                supplemental coverage under this paragraph not later 
                than the 2008 reinsurance year.''.
    (b) Conforming Amendments.--Section 508(d)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(2)) is amended--
            (1) by striking ``additional coverage'' in the matter 
        preceding subparagraph (A) and inserting ``additional and 
        supplemental coverages''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) In the case of supplemental coverage provided 
                under subsection (c)(11) that, in combination with 
                either the individual yield and loss coverage, or a 
                comparable coverage for a policy or plan of insurance 
                that is not based on individual yield and does not 
                insure more than 100 percent of the recorded or 
                appraised average yield indemnified at not greater than 
                100 percent of the expected market price, the amount of 
                the premium shall--
                            ``(i) be sufficient to cover anticipated 
                        losses and a reasonable reserve; and
                            ``(ii) include an amount for operating and 
                        administrative expenses, as determined by the 
                        Corporation, on an industry-wide basis as a 
                        percentage of the amount of the premium used to 
                        define loss ratio.''.
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