I 
110TH CONGRESS 
1ST SESSION H. R. 1825 
To amend the Federal Crop Insurance Act to require the Federal Crop 
Insurance Corporation to offer farmers supplemental crop insurance 
based on an area yield and loss plan of insurance or an area revenue 
plan of insurance, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Mr. NEUGEBAUER introduced the following bill; which was referred to the 
Committee on Agriculture 
A BILL 
To amend the Federal Crop Insurance Act to require the 
Federal Crop Insurance Corporation to offer farmers 
supplemental crop insurance based on an area yield and 
loss plan of insurance or an area revenue plan of insur-
ance, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. AVAILABILITY OF SUPPLEMENTAL CROP IN-
SURANCE BASED ON AREA YIELD AND LOSS 
PLAN OF INSURANCE OR AREA REVENUE 
PLAN OF INSURANCE. 
(a) IN GENERAL.—Section 508(c) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(c)) is amended by 
adding at the end the following new paragraph: 
‘‘(11) SUPPLEMENTAL AREA COVERAGE.— 
‘‘(A) AVAILABILITY OF COVERAGE.—Not-
withstanding paragraph (4), if area coverage is 
available in an area (as determined by the Cor-
poration under paragraph (3)), the Corporation 
shall provide eligible producers in that area 
with the option to purchase supplemental insur-
ance coverage based on— 
‘‘(i) an area yield and loss plan of in-
surance; or 
‘‘(ii) an area revenue plan of insur-
ance that includes coverage for a loss in 
yield. 
‘‘(B) ELIGIBLE PRODUCERS.—To be eligi-
ble to obtain supplemental coverage under this 
paragraph, a producer must purchase either an 
individual yield and loss plan of insurance or a 
revenue plan of insurance that includes cov-
erage for a loss in yield at an additional cov-
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erage level for the same crop to be covered by 
the supplemental coverage. 
‘‘(C) LIMITATION.—In providing supple-
mental coverage to a producer under this para-
graph, the sum of the following shall not exceed 
100 percent: 
‘‘(i) The coverage level expressed in 
percentage terms for the individual yield 
and loss plan of insurance or the revenue 
plan of insurance that includes coverage 
for a loss in yield that is purchased by the 
producer for the same crop covered by the 
supplemental coverage, as required by sub-
paragraph (B). 
‘‘(ii) The share expressed in percent-
age terms of the area yield and loss plan 
of insurance or the area revenue plan of 
insurance (at whatever coverage level is se-
lected) that is used to determine the level 
of supplemental insurance coverage pro-
vided the producer under this paragraph. 
‘‘(D) PAYMENT
OF
PORTION
OF
PRE-
MIUM.—As provided in subsection (e), the Cor-
poration shall pay a portion of the premium for 
supplemental coverage under this paragraph 
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and the associated individual area yield and loss 
plan of insurance or revenue plan of insurance 
that includes coverage for a loss in yield. 
‘‘(E) AMOUNT OF INDEMNITY PAID UNDER 
SUPPLEMENTAL
COVERAGE.—The 
indemnity 
payable under supplemental coverage provided 
under this paragraph shall be calculated as— 
‘‘(i) the total indemnity for the area 
yield and loss plan of insurance or area 
revenue plan of insurance, at the coverage 
level chosen by the producer; multiplied by 
‘‘(ii) the share of the coverage of the 
area yield and loss plan of insurance or 
area revenue plan of insurance selected by 
the producer. 
‘‘(F) SPECIAL RULE RELATING TO QUALI-
FYING LOSSES.—In the case of a qualifying loss 
in an area (as determined by the Corporation) 
under supplemental coverage provided under 
this paragraph, subject to the applicable cov-
erage limits, the total amount of the indemnity 
shall be available to the producer regardless of 
the loss incurred under the individual yield and 
loss plan of insurance or the revenue plan of in-
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surance that includes coverage for a loss in 
yield of the producer. 
‘‘(G) REINSURANCE YEAR.—Subject to the 
availability of area yield and loss or revenue 
coverage for an insurable crop in an area (as 
determined by the Corporation), the Corpora-
tion shall provide supplemental coverage under 
this paragraph not later than the 2008 reinsur-
ance year.’’. 
(b) CONFORMING AMENDMENTS.—Section 508(d)(2) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) 
is amended— 
(1) by striking ‘‘additional coverage’’ in the 
matter preceding subparagraph (A) and inserting 
‘‘additional and supplemental coverages’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) In the case of supplemental coverage 
provided under subsection (c)(11) that, in com-
bination with either the individual yield and loss 
coverage, or a comparable coverage for a policy 
or plan of insurance that is not based on indi-
vidual yield and does not insure more than 100 
percent of the recorded or appraised average 
yield indemnified at not greater than 100 per-
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cent of the expected market price, the amount 
of the premium shall— 
‘‘(i) be sufficient to cover anticipated 
losses and a reasonable reserve; and 
‘‘(ii) include an amount for operating 
and administrative expenses, as determined 
by the Corporation, on an industry-wide 
basis as a percentage of the amount of the 
premium used to define loss ratio.’’. 
Æ 
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