I 

113TH CONGRESS 

1ST SESSION H. R. 1589 

To expand the noninsured crop assistance program established by the Federal 

Agriculture Improvement and Reform Act of 1996 to provide coverages 

for eligible crops under the program equivalent to additional coverage 

available under the Federal Crop Insurance Act. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2013 

Mr. WELCH (for himself and Mr. GIBSON) introduced the following bill; which 

was referred to the Committee on Agriculture 

A BILL 

To expand the noninsured crop assistance program established by the Federal Agriculture Improvement and Reform Act of 1996 to provide coverages for eligible crops 

under the program equivalent to additional coverage 

available under the Federal Crop Insurance Act. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Farm Insurance 

5 Act of 2013’’. 


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1 SEC. 2. NONINSURED CROP ASSISTANCE PROGRAM. 

2 Section 196 of the Federal Agriculture Improvement 

3 and Reform Act of 1996 (7 U.S.C. 7333), as amended 

4 by section 11013(b)) is further amended— 

5 (1) in subsection (a)— 

6 (A) by striking paragraph (1) and insert7 ing the following new paragraph: 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) COVERAGES.—In the case of an eligi10 ble crop described in paragraph (2), the Sec11 retary of Agriculture shall operate a noninsured 

12 crop disaster assistance program to provide cov13 erages based on individual yields (other than 

14 for value-loss crops) equivalent to— 

15 ‘‘(i) catastrophic risk protection avail16 able under section 508(b) of the Federal 

17 Crop Insurance Act (7 U.S.C. 1508(b)); or 

18 ‘‘(ii) additional coverage available 

19 under subsections (c) and (h) of section 

20 508 of that Act (7 U.S.C. 1508) that does 

21 not exceed 65 percent. 

22 ‘‘(B) ADMINISTRATION.—The Secretary 

23 shall carry out this section through the Farm 

24 Service Agency (referred to in this section as 

25 the ‘Agency’).’’; and 

26 (B) in paragraph (2)(A)— 


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1 (i) in clause (i), by striking ‘‘and’’ 

2 after the semicolon at the end; 

3 (ii) by redesignating clause (ii) as 

4 clause (iii); and 

5 (iii) by inserting after clause (i) the 

6 following new clause: 

7 ‘‘(ii) for which additional cov8 erage under subsections (c) and (h) of 

9 section 508 of that Act (7 U.S.C. 

10 1508) is not available; and’’; 

11 (2) in subsection (d), by striking ‘‘The Sec12 retary’’ and inserting ‘‘Subject to subsection (l), the 

13 Secretary’’; and 

14 (3) by adding at the end the following new sub15 section: 

16 ‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL COV17 ERAGE.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall make 

19 available to a producer eligible for noninsured assist20 ance under this section a payment equivalent to an 

21 indemnity for additional coverage under subsections 

22 (c) and (h) of section 508 of the Federal Crop In23 surance Act (7 U.S.C. 1508) that does not exceed 

24 65 percent of the established yield for the eligible 

25 crop on the farm, computed by multiplying— 


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1 ‘‘(A) the quantity that is not greater than 

2 65 percent of the established yield for the crop, 

3 as determined by the Secretary, specified in in4 crements of 5 percent; 

5 ‘‘(B) 100 percent of the average market 

6 price for the crop, as determined by the Sec7 retary; and 

8 ‘‘(C) a payment rate for the type of crop, 

9 as determined by the Secretary, that reflects— 

10 ‘‘(i) in the case of a crop that is pro11 duced with a significant and variable har12 vesting expense, the decreasing cost in13 curred in the production cycle for the crop 

14 that is, as applicable— 

15 ‘‘(I) harvested; 

16 ‘‘(II) planted but not harvested; 

17 or 

18 ‘‘(III) prevented from being 

19 planted because of drought, flood, or 

20 other natural disaster, as determined 

21 by the Secretary; or 

22 ‘‘(ii) in the case of a crop that is pro23 duced without a significant and variable 

24 harvesting expense, such rate as shall be 

25 determined by the Secretary. 


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1 ‘‘(2) PREMIUM.—To be eligible to receive a pay2 ment under this subsection, a producer shall pay— 

3 ‘‘(A) the service fee required by subsection 

4 (k); and 

5 ‘‘(B) a premium for the applicable crop 

6 year that is equal to the product obtained by 

7 multiplying— 

8 ‘‘(i) the number of acres devoted to 

9 the eligible crop; 

10 ‘‘(ii) the established yield for the eligi11 ble crop, as determined by the Secretary 

12 under subsection (e); 

13 ‘‘(iii) the coverage level elected by the 

14 producer; 

15 ‘‘(iv) the average market price, as de16 termined by the Secretary; and 

17 ‘‘(v) .0525. 

18 ‘‘(3) LIMITED RESOURCE, BEGINNING, AND SO19 CIALLY DISADVANTAGED FARMERS.—The additional 

20 coverage made available under this subsection shall 

21 be available to limited resource, beginning, and so22 cially disadvantaged producers, as determined by the 

23 Secretary, in exchange for a premium that is 50 per24 cent of the premium determined for a producer 

25 under paragraph (2). 


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1 ‘‘(4) PREMIUM PAYMENT AND APPLICATION

2 DEADLINE.— 

3 ‘‘(A) PREMIUM PAYMENT.—A producer 

4 electing additional coverage under this sub5 section shall pay the premium amount owed for 

6 the additional coverage by September 30 of the 

7 crop year for which the additional coverage is 

8 purchased. 

9 ‘‘(B) APPLICATION DEADLINE.—The latest 

10 date on which additional coverage under this 

11 subsection may be elected shall be the applica12 tion closing date described in subsection (b)(1). 

13 ‘‘(5) EFFECTIVE DATE.—Additional coverage 

14 under this subsection shall be available beginning 

15 with the 2014 crop.’’. 

Æ 


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