I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Crop Risk Options 

3 Plan Act of 2013’’. 

4 SEC. 2. SUPPLEMENTAL COVERAGE OPTION. 

5 (a) AVAILABILITY OF SUPPLEMENTAL COVERAGE

6 OPTION.—Paragraph (3) of section 508(c) of the Federal 

7 Crop Insurance Act (7 U.S.C. 1508(c)) is amended to read 

8 as follows: 

9 ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro10 ducer shall have the option of purchasing additional 

11 coverage based on— 

12 ‘‘(A)(i) an individual yield and loss basis; 

13 or 

14 ‘‘(ii) an area yield and loss basis; 

15 ‘‘(B) an individual yield and loss basis, 

16 supplemented with coverage based on an area 

17 yield and loss basis to cover a part of the de18 ductible under the individual yield and loss pol19 icy, as described in paragraph (4)(C); or 

20 ‘‘(C) a margin basis alone or in combina21 tion with the coverages available in subpara22 graph (A) or (B).’’. 

23 (b) LEVEL OF COVERAGE.—Paragraph (4) of section 

24 508(c) of the Federal Crop Insurance Act (7 U.S.C. 

25 1508(c)) is amended to read as follows: 

26 ‘‘(4) LEVEL OF COVERAGE.— 


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1 ‘‘(A) DOLLAR DENOMINATION AND PER2 CENTAGE OF YIELD.—Except as provided in 

3 subparagraph (C), the level of coverage— 

4 ‘‘(i) shall be dollar denominated; and 

5 ‘‘(ii) may be purchased at any level 

6 not to exceed 85 percent of the individual 

7 yield or 95 percent of the area yield (as de8 termined by the Corporation). 

9 ‘‘(B) INFORMATION.—The Corporation 

10 shall provide producers with information on cat11 astrophic risk and additional coverage in terms 

12 of dollar coverage (within the allowable limits of 

13 coverage provided in this paragraph). 

14 ‘‘(C) SUPPLEMENTAL COVERAGE OP15 TION.— 

16 ‘‘(i) IN GENERAL.—Notwithstanding 

17 subparagraph (A), in the case of the sup18 plemental coverage option described in 

19 paragraph (3)(B), the Corporation shall 

20 offer producers the opportunity to pur21 chase coverage in combination with a pol22 icy or plan of insurance offered under this 

23 subtitle that would allow indemnities to be 

24 paid to a producer equal to a part of the 


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1 deductible under the policy or plan of in2 surance— 

3 ‘‘(I) at a county-wide level to the 

4 fullest extent practicable; or 

5 ‘‘(II) in counties that lack suffi6 cient data, on the basis of such larger 

7 geographical area as the Corporation 

8 determines to provide sufficient data 

9 for purposes of providing the cov10 erage. 

11 ‘‘(ii) TRIGGER.—Coverage offered 

12 under paragraph (3)(B) and clause (i) 

13 shall be triggered only if the losses in the 

14 area exceed 10 percent of normal levels (as 

15 determined by the Corporation). 

16 ‘‘(iii) COVERAGE.—Subject to the trig17 ger described in clause (ii), coverage of18 fered under paragraph (3)(B) and clause 

19 (i) shall not exceed the difference be20 tween— 

21 ‘‘(I) 90 percent; and 

22 ‘‘(II) the coverage level selected 

23 by the producer for the underlying 

24 policy or plan of insurance. 


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1 ‘‘(iv) CALCULATION OF PREMIUM.— 

2 Notwithstanding subsection (d), the pre3 mium for coverage offered under para4 graph (3)(B) and clause (i) shall— 

5 ‘‘(I) be sufficient to cover antici6 pated losses and a reasonable reserve; 

7 and 

8 ‘‘(II) include an amount for oper9 ating and administrative expenses es10 tablished in accordance with sub11 section (k)(4)(F).’’. 

12 (c) PAYMENT OF PORTION OF PREMIUM BY COR13 PORATION.—Section 508(e)(2) of the Federal Crop Insur14 ance Act (7 U.S.C. 1508(e)(2)) is amended by adding at 

15 the end the following new subparagraph: 

16 ‘‘(H) In the case of the supplemental cov17 erage option authorized in subsection (c)(4)(C), 

18 the amount shall be equal to the sum of— 

19 ‘‘(i) 60 percent of the additional pre20 mium associated with the coverage; and 

21 ‘‘(ii) the amount determined under 

22 subsection (c)(4)(C)(vi)(II), subject to sub23 section (k)(4)(F), for the coverage to cover 

24 operating and administrative expenses.’’. 


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1 (d) EFFECTIVE DATE.—The Federal Crop Insurance 

2 Corporation shall begin to provide additional coverage 

3 based on an individual yield and loss basis, supplemented 

4 with coverage based on an area yield and loss basis, not 

5 later than for the 2014 crop year. 

6 SEC. 3. DATA SOURCES FOR DETERMINATION OF ACTUAL 

7 PRODUCTION HISTORY. 

8 Section 508(g)(2) of the Federal Crop Insurance Act 

9 (7 U.S.C. 1508(g)(2)) is amended by adding at the end 

10 the following new subparagraph: 

11 ‘‘(E) SOURCES OF YIELD DATA.—To deter12 mine yields under this paragraph, the Corpora13 tion shall use data collected by the Risk Man14 agement Agency or the National Agricultural 

15 Statistics Service, or both.’’. 

Æ 


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