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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3623 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3623

To amend the Federal Crop Insurance Act to establish a pilot program to 
evaluate the feasibility of including crop insurance based on costs of 
 production among the types of crop insurance available under the Act.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 22, 1993

  Mr. Barcia of Michigan (for himself and Mr. Dingell) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
To amend the Federal Crop Insurance Act to establish a pilot program to 
evaluate the feasibility of including crop insurance based on costs of 
 production among the types of crop insurance available under the Act.

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

SEC. 1405. PILOT PROGRAM TO PROVIDE CROP INSURANCE BASED ON COSTS OF 
              PRODUCTION UNDER THE FEDERAL CROP INSURANCE ACT.

    The Federal Crop Insurance Act is amended by inserting after 
section 508A (7 U.S.C. 1508a) the following new section:

``SEC. 508B. PILOT PROGRAM TO INSURE AGRICULTURAL PRODUCERS FOR THEIR 
              COSTS OF PRODUCTION.

    ``(a) Development of Pilot Program.--The Corporation, in 
cooperation with the Economic Research Service of the Department of 
Agriculture, shall develop and evaluate alternative methods to include 
among the crop insurance options available under section 508 an 
insurance coverage option under which agricultural producers are 
indemnified based on their average costs of production when they 
sustain losses to insured commodities as a result of adverse weather 
and other unavoidable causes. To assist the Corporation, the Secretary 
of Agriculture shall direct the Economic Research Service to prepare 
alternative designs for a pilot program to evaluate the feasibility of 
using insurance coverage based on costs of production and to develop 
guidelines for the implementation of the pilot project.
    ``(b) Implementation of Pilot Program.--Beginning in crop years 
after crop year 1994, the Corporation shall implement the pilot program 
developed under subsection (a) in those areas of the United States that 
the Corporation determines have traditionally suffered levels of crop 
losses necessitating large amounts of payments under Federal crop 
disaster relief laws. The Economic Research Service shall assist the 
Corporation in introducing the pilot program to the crop insurance 
industry and agricultural producers and in collecting and evaluating 
the response of the industry and producers to the pilot project.
    ``(c) Recovery of Costs of Production.--Under the pilot program, an 
agricultural producer who sustains a loss of an insured commodity as a 
result of adverse weather or other unavoidable cause would receive an 
amount based upon the average costs incurred by the producer to plant, 
raise, and harvest the crop, including the cost of seeds, fertilizer, 
and labor. The Economic Research Service shall propose to the 
Corporation alternative methods to measure such costs and calculate 
recovery amounts.
    ``(d) Evaluation of Pilot Program.--As soon as practicable after 
the end of 1995 crop year, the Economic Research Service shall submit 
to the Secretary and the Corporation a report evaluating the 
performance of the pilot program since its implementation. The report 
shall include an examination of the costs and benefits of the pilot 
program to agricultural producers who participate in the program and 
the effect of the program on Federal expenditures under this Act and 
Federal crop disaster relief laws.''.

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