Crop Risk Options Plan Act of 2013 - Amends the Federal Crop Insurance Act to make available to crop producers additional coverage to cover part of a crop insurance policy deductible based upon: (1) an individual or area yield and loss basis, (2) an individual yield and loss basis supplemented with coverage based on an area yield and loss basis (supplemental coverage option), or (3) a margin basis alone or in combination with the coverages available in (1) or (2).
Triggers the supplemental coverage option only if area losses exceed 10% of normal levels. Provides for: (1) 60% premium coverage plus operating and administrative costs paid by the Federal Crop Insurance Corporation (FCIC), and (2) coverage to begin no later than crop year 2014.
Provides that in the case of the supplemental coverage option, FCIC shall offer producers the opportunity to purchase coverage that pays indemnities on a county-wide level or on a larger geographical area level in counties that lack sufficient data.
Directs FCIC, in developing yield guarantees, to use county data collected by the Risk Management Agency and/or the National Agricultural Statistics Service.
[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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 17, 2013
Mr. Neugebauer introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities and Risk Management.
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