[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1606 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1606

To amend the Federal Crop Insurance Act to make available to producers 
 a supplemental coverage option 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

                             April 17, 2013

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 make available to producers 
 a supplemental coverage option 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 
2013''.

SEC. 2. SUPPLEMENTAL COVERAGE OPTION.

    (a) Availability of Supplemental Coverage Option.--Paragraph (3) of 
section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is 
amended to read as follows:
            ``(3) Yield and loss basis options.--A producer shall have 
        the option of purchasing additional coverage based on--
                    ``(A)(i) an individual yield and loss basis; or
                    ``(ii) an area yield and loss basis;
                    ``(B) an individual yield and loss basis, 
                supplemented with coverage based on an area yield and 
                loss basis to cover a part of the deductible under the 
                individual yield and loss policy, as described in 
                paragraph (4)(C); or
                    ``(C) a margin basis alone or in combination with 
                the coverages available in subparagraph (A) or (B).''.
    (b) Level of Coverage.--Paragraph (4) of section 508(c) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended to read as 
follows:
            ``(4) Level of coverage.--
                    ``(A) Dollar denomination and percentage of 
                yield.--Except as provided in subparagraph (C), the 
                level of coverage--
                            ``(i) shall be dollar denominated; and
                            ``(ii) 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) Supplemental coverage option.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), in the case of the 
                        supplemental coverage option described in 
                        paragraph (3)(B), the Corporation shall offer 
                        producers the opportunity to purchase coverage 
                        in combination with a policy or plan of 
                        insurance offered under this subtitle that 
                        would allow indemnities to be paid to a 
                        producer equal to a part of the deductible 
                        under the policy or plan of insurance--
                                    ``(I) at a county-wide level to the 
                                fullest extent practicable; or
                                    ``(II) in counties that lack 
                                sufficient data, on the basis of such 
                                larger geographical area as the 
                                Corporation determines to provide 
                                sufficient data for purposes of 
                                providing the coverage.
                            ``(ii) Trigger.--Coverage offered under 
                        paragraph (3)(B) and clause (i) shall be 
                        triggered only if the losses in the area exceed 
                        10 percent of normal levels (as determined by 
                        the Corporation).
                            ``(iii) Coverage.--Subject to the trigger 
                        described in clause (ii), coverage offered 
                        under paragraph (3)(B) and clause (i) shall not 
                        exceed the difference between--
                                    ``(I) 90 percent; and
                                    ``(II) the coverage level selected 
                                by the producer for the underlying 
                                policy or plan of insurance.
                            ``(iv) Calculation of premium.--
                        Notwithstanding subsection (d), the premium for 
                        coverage offered under paragraph (3)(B) and 
                        clause (i) shall--
                                    ``(I) be sufficient to cover 
                                anticipated losses and a reasonable 
                                reserve; and
                                    ``(II) include an amount for 
                                operating and administrative expenses 
                                established in accordance with 
                                subsection (k)(4)(F).''.
    (c) 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 supplemental coverage 
                option authorized in subsection (c)(4)(C), the amount 
                shall be equal to the sum of--
                            ``(i) 60 percent of the additional premium 
                        associated with the coverage; and
                            ``(ii) the amount determined under 
                        subsection (c)(4)(C)(vi)(II), subject to 
                        subsection (k)(4)(F), for the coverage to cover 
                        operating and administrative expenses.''.
    (d) 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 for the 2014 crop year.

SEC. 3. DATA SOURCES FOR DETERMINATION OF ACTUAL PRODUCTION HISTORY.

    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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