I 

112TH CONGRESS 

1ST SESSION H. R. 3107 

To amend the Federal Crop Insurance Act to provide producers with the 

opportunity to purchase crop insurance coverage 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 

OCTOBER 5, 2011 

Mr. NEUGEBAUER introduced the following bill; which was referred to the 

Committee on Agriculture 

A BILL 

To amend the Federal Crop Insurance Act to provide producers with the opportunity to purchase crop insurance 

coverage 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 2011’’. 

4 SEC. 2. TOTAL COVERAGE OPTION FOR CROP INSURANCE 

5 BASED ON BOTH AN INDIVIDUAL YIELD AND 

6 LOSS BASIS AND AN AREA YIELD AND LOSS 

7 BASIS. 

8 (a) AVAILABILITY OF TOTAL COVERAGE OPTION.— 

9 Section 508(c) of the Federal Crop Insurance Act (7 

10 U.S.C. 1508(c)) is amended by striking paragraph (3) and 

11 inserting the following new paragraph: 

12 ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro13 ducer shall have the option of purchasing additional 

14 coverage based on— 

15 ‘‘(A) INDIVIDUAL YIELD AND LOSS

16 BASIS.—A producer shall have the option of 

17 purchasing additional coverage based on an in18 dividual yield and loss basis. 

19 ‘‘(B) AREA YIELD AND LOSS BASIS.—If 

20 area coverage is offered by the Corporation in 

21 an area, a producer shall have the option of 

22 purchasing additional coverage based on an 

23 area yield and loss basis instead of an indi24 vidual yield and loss basis. 

25 ‘‘(C) TOTAL COVERAGE OPTION.—If area 

26 coverage is offered by the Corporation in an 


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1 area, a producer shall have the option of pur2 chasing additional coverage based on an indi3 vidual yield and loss basis, supplemented with 

4 coverage based on an area yield and loss basis 

5 to cover all or a portion of the deductible under 

6 the individual yield and loss policy.’’. 

7 (b) LEVEL OF COVERAGE.—Section 508(c) of the 

8 Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amend9 ed by striking paragraph (4) and inserting the following 

10 new paragraph: 

11 ‘‘(4) LEVEL OF COVERAGE.— 

12 ‘‘(A) DOLLAR DENOMINATION AND PER13 CENTAGE OF YIELD.—Except as provided in 

14 subparagraph (C), the level of coverage shall be 

15 dollar denominated and may be purchased at 

16 any level not to exceed 85 percent of the indi17 vidual yield or 95 percent of the area yield (as 

18 determined by the Corporation). 

19 ‘‘(B) INFORMATION.—The Corporation 

20 shall provide producers with information on cat21 astrophic risk and additional coverage in terms 

22 of dollar coverage (within the allowable limits of 

23 coverage provided in this paragraph). 

24 ‘‘(C) TOTAL COVERAGE OPTION.— 


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1 ‘‘(i) IN GENERAL.—Notwithstanding 

2 subparagraph (A), in the case of the total 

3 coverage option described in paragraph 

4 (3)(C), the Corporation shall offer pro5 ducers the opportunity to purchase cov6 erage in combination with a policy or plan 

7 of insurance offered under this Act that 

8 would allow indemnities to be paid to a 

9 producer equal to some or all of the de10 ductible under such policy or plan of insur11 ance, if sufficient area data is available (as 

12 determined by the Corporation). 

13 ‘‘(ii) TRIGGER.—The coverage de14 scribed in paragraph (3)(C) and clause (i) 

15 would be triggered only if the losses in the 

16 area exceed 10 percent of normal levels (as 

17 determined by the Corporation). 

18 ‘‘(iii) LIMITATION.—Indemnities paid 

19 under the coverage described in paragraph 

20 (3)(C) and clause (i) cannot exceed the 

21 amount of the deductible applicable under 

22 the underlying policy or plan of insur23 ance.’’. 

24 (c) PREMIUM.—Section 508(d)(2)(B) of the Federal 

25 Crop Insurance Act (7 U.S.C. 1508(d)(2)(B)) is amended 


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1 by inserting after ‘‘not based on individual yield’’ the fol2 lowing: ‘‘or that combines an individual yield and loss 

3 basis and an area yield and loss basis’’. 

4 (d) PAYMENT OF PORTION OF PREMIUM BY COR5 PORATION.—Section 508(e)(2) of the Federal Crop Insur6 ance Act (7 U.S.C. 1508(e)(2)) is amended by adding at 

7 the end the following new subparagraph: 

8 ‘‘(H) In the case of the total coverage op9 tion described in subsection (c)(3)(C), the 

10 amount shall be equal to not less than 60 per11 cent of the additional premium associated with 

12 this coverage.’’. 

13 (e) EFFECTIVE DATE.—The Federal Crop Insurance 

14 Corporation shall begin to provide additional coverage 

15 based on an individual yield and loss basis, supplemented 

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

17 later than one year after the date of the enactment of this 

18 Act. 

19 SEC. 3. DETERMINATION OF ACTUAL PRODUCTION HIS20 TORY. 

21 (a) USE OF SEVEN-YEAR OLYMPIC AVERAGE.—Sec22 tion 508(g)(2)(A) of the Federal Crop Insurance Act (7 

23 U.S.C. 1508(g)(2)(A)) is amended by striking ‘‘10 con24 secutive crop years’’ and inserting ‘‘7 consecutive crop 

25 years (excluding the year in which the actual production 


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1 history is greatest and the year in which the actual pro2 duction history is lowest)’’. 

3 (b) DATA SOURCES.—Section 508(g)(2) of the Fed4 eral Crop Insurance Act (7 U.S.C. 1508(g)(2)) is amended 

5 by adding at the end the following new subparagraph: 

6 ‘‘(E) SOURCES OF YIELD DATA.—To deter7 mine yields under this paragraph, the Corpora8 tion shall use data collected by the Risk Man9 agement Agency or the National Agricultural 

10 Statistics Service, or both.’’. 

Æ 


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