[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3107 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3107

 To amend the Federal Crop Insurance Act to provide producers with the 
   opportunity to purchase crop insurance coverage based on both an 
  individual yield and loss basis and an area yield and loss basis in 
order to allow producers to cover all or a portion of their deductible 
under the individual yield and loss policy, to improve the accuracy of 
   actual production history determinations, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 5, 2011

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

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                                 A BILL


 
 To amend the Federal Crop Insurance Act to provide producers with the 
   opportunity to purchase crop insurance coverage based on both an 
  individual yield and loss basis and an area yield and loss basis in 
order to allow producers to cover all or a portion of their deductible 
under the individual yield and loss policy, to improve the accuracy of 
   actual production history determinations, 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. SHORT TITLE.

    This Act may be cited as the ``Crop Risk Options Plan Act of 
2011''.

SEC. 2. TOTAL COVERAGE OPTION FOR CROP INSURANCE BASED ON BOTH AN 
              INDIVIDUAL YIELD AND LOSS BASIS AND AN AREA YIELD AND 
              LOSS BASIS.

    (a) Availability of Total Coverage Option.--Section 508(c) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking 
paragraph (3) and inserting the following new paragraph:
            ``(3) Yield and loss basis options.--A producer shall have 
        the option of purchasing additional coverage based on--
                    ``(A) Individual yield and loss basis.--A producer 
                shall have the option of purchasing additional coverage 
                based on an individual yield and loss basis.
                    ``(B) Area yield and loss basis.--If area coverage 
                is offered by the Corporation in an area, a producer 
                shall have the option of purchasing additional coverage 
                based on an area yield and loss basis instead of an 
                individual yield and loss basis.
                    ``(C) Total coverage option.--If area coverage is 
                offered by the Corporation in an area, a producer shall 
                have the option of purchasing additional coverage based 
                on an individual yield and loss basis, supplemented 
                with coverage based on an area yield and loss basis to 
                cover all or a portion of the deductible under the 
                individual yield and loss policy.''.
    (b) Level of Coverage.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (4) 
and inserting the following new paragraph:
            ``(4) Level of coverage.--
                    ``(A) Dollar denomination and percentage of 
                yield.--Except as provided in subparagraph (C), the 
                level of coverage shall be dollar denominated and may 
                be purchased at any level not to exceed 85 percent of 
                the individual yield or 95 percent of the area yield 
                (as determined by the Corporation).
                    ``(B) Information.--The Corporation shall provide 
                producers with information on catastrophic risk and 
                additional coverage in terms of dollar coverage (within 
                the allowable limits of coverage provided in this 
                paragraph).
                    ``(C) Total coverage option.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), in the case of the total 
                        coverage option described in paragraph (3)(C), 
                        the Corporation shall offer producers the 
                        opportunity to purchase coverage in combination 
                        with a policy or plan of insurance offered 
                        under this Act that would allow indemnities to 
                        be paid to a producer equal to some or all of 
                        the deductible under such policy or plan of 
                        insurance, if sufficient area data is available 
                        (as determined by the Corporation).
                            ``(ii) Trigger.--The coverage described in 
                        paragraph (3)(C) and clause (i) would be 
                        triggered only if the losses in the area exceed 
                        10 percent of normal levels (as determined by 
                        the Corporation).
                            ``(iii) Limitation.--Indemnities paid under 
                        the coverage described in paragraph (3)(C) and 
                        clause (i) cannot exceed the amount of the 
                        deductible applicable under the underlying 
                        policy or plan of insurance.''.
    (c) Premium.--Section 508(d)(2)(B) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(d)(2)(B)) is amended by inserting after ``not based 
on individual yield'' the following: ``or that combines an individual 
yield and loss basis and an area yield and loss basis''.
    (d) Payment of Portion of Premium by Corporation.--Section 
508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 
amended by adding at the end the following new subparagraph:
                    ``(H) In the case of the total coverage option 
                described in subsection (c)(3)(C), the amount shall be 
                equal to not less than 60 percent of the additional 
                premium associated with this coverage.''.
    (e) Effective Date.--The Federal Crop Insurance Corporation shall 
begin to provide additional coverage based on an individual yield and 
loss basis, supplemented with coverage based on an area yield and loss 
basis, not later than one year after the date of the enactment of this 
Act.

SEC. 3. DETERMINATION OF ACTUAL PRODUCTION HISTORY.

    (a) Use of Seven-Year Olympic Average.--Section 508(g)(2)(A) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(A)) is amended by 
striking ``10 consecutive crop years'' and inserting ``7 consecutive 
crop years (excluding the year in which the actual production history 
is greatest and the year in which the actual production history is 
lowest)''.
    (b) Data Sources.--Section 508(g)(2) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(g)(2)) is amended by adding at the end the following 
new subparagraph:
                    ``(E) Sources of yield data.--To determine yields 
                under this paragraph, the Corporation shall use data 
                collected by the Risk Management Agency or the National 
                Agricultural Statistics Service, or both.''.
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