1041 
† HR 2642 EAS 
producer covered by the underlying 
policy or plan of insurance, as deter-
mined by the Corporation; and 
‘‘(II) in the case of all other pro-
ducers, 10 percent of the expected value 
of the crop of the producer covered by 
the underlying policy or plan of insur-
ance, as determined by the Corpora-
tion. 
‘‘(iii) COVERAGE.—Subject to the de-
ductible imposed by clause (ii), coverage of-
fered under this subparagraph shall cover 
the first loss incurred by the producer, not 
to exceed the difference between— 
‘‘(I) 100 percent; and 
‘‘(II) the coverage level selected by 
the producer for the underlying policy 
or plan of insurance. 
‘‘(iv) CALCULATION
OF
PREMIUM.— 
Notwithstanding subsection (d), the pre-
mium shall— 
‘‘(I) be sufficient to cover antici-
pated losses and a reasonable reserve; 
and
1042 
† HR 2642 EAS 
‘‘(II) include an amount for oper-
ating and administrative expenses es-
tablished in accordance with subsection 
(k)(4)(F).’’. 
(c) PAYMENT OF PORTION OF PREMIUM BY CORPORA-
TION.—Section 508(e)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)(2)) is amended by adding at the end the 
following: 
‘‘(H) In the case of the supplemental cov-
erage option authorized in subsection (c)(4)(C), 
the amount shall be equal to the sum of— 
‘‘(i) 65 percent of the additional pre-
mium associated with the coverage; and 
‘‘(ii) the amount determined under 
subsection (c)(4)(C)(iv)(II) for the coverage 
to cover operating and administrative ex-
penses.’’. 
(d) CONFORMING AMENDMENT.—Section 508(k)(4)(F) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) 
is amended by inserting ‘‘or authorized under subsection 
(c)(4)(C)’’ after ‘‘of this subparagraph’’. 
(e) EFFECTIVE DATE.—The Federal Crop Insurance 
Corporation shall begin to provide additional coverage 
based on an individual yield and loss basis, supplemented
1043 
† HR 2642 EAS 
with coverage based on an area yield and loss basis, not 
later than for the 2014 crop year. 
SEC. 11002. CROP MARGIN COVERAGE OPTION. 
(a) AVAILABILITY OF CROP MARGIN COVERAGE OP-
TION.—Section 508(c)(3) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(c)) (as amended by section 11001(a)) is 
amended— 
(1) in subparagraph (A)(ii), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(C) a margin basis alone or in combina-
tion with— 
‘‘(i) individual yield and loss coverage; 
or 
‘‘(ii) area yield and loss coverage.’’. 
SEC. 11003. PREMIUM AMOUNTS FOR CATASTROPHIC RISK 
PROTECTION. 
Section 508(d)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(d)(2)) is amended by striking subparagraph 
(A) and inserting the following: 
‘‘(A) In the case of catastrophic risk protec-
tion, the amount of the premium established by 
the Corporation for each crop for which cata-
1044 
† HR 2642 EAS 
strophic risk protection is available shall be re-
duced by the percentage equal to the difference 
between the average loss ratio for the crop and 
100 percent, plus a reasonable reserve, as deter-
mined by the Corporation.’’. 
SEC. 11004. PERMANENT ENTERPRISE UNIT. 
Section 508(e)(5) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)(5)) is amended by striking subparagraph 
(A) and inserting the following: 
‘‘(A) IN GENERAL.—The Corporation may 
pay a portion of the premiums for plans or poli-
cies of insurance for which the insurable unit is 
defined on a whole farm or enterprise unit basis 
that is higher than would otherwise be paid in 
accordance with paragraph (2).’’. 
SEC. 11005. ENTERPRISE UNITS FOR IRRIGATED AND NON-
IRRIGATED CROPS. 
Section 508(e)(5) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)(5)) is amended by adding at the end the 
following: 
‘‘(D) NONIRRIGATED
CROPS.—Beginning 
with the 2014 crop year, the Corporation shall 
make available separate enterprise units for irri-
gated and nonirrigated acreages of crops in 
counties.’’.
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† HR 2642 EAS 
SEC. 11006. DATA COLLECTION. 
Section 508(g)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(g)(2)) is amended by adding at the end the 
following: 
‘‘(E) SOURCES OF YIELD DATA.—To deter-
mine yields under this paragraph, the Corpora-
tion— 
‘‘(i) shall use county data collected by 
the Risk Management Agency or the Na-
tional Agricultural Statistics Service, or 
both; or 
‘‘(ii) if sufficient county data is not 
available, may use other data considered 
appropriate by the Secretary.’’. 
SEC. 11007. ADJUSTMENT IN ACTUAL PRODUCTION HIS-
TORY TO ESTABLISH INSURABLE YIELDS. 
Section 508(g)(4)(B) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(g)(4)(B)) is amended— 
(1) in the matter preceding clause (i), by insert-
ing ‘‘for the 2013 crop year or any prior crop year, 
or 65 percent of the applicable transitional yield for 
the 2014 or any subsequent crop year,’’ after ‘‘transi-
tional yield’’; and 
(2) in clause (ii), by striking ‘‘60 percent of the 
applicable transitional yield’’ and inserting ‘‘the ap-
1046 
† HR 2642 EAS 
plicable percentage of the transitional yield described 
in this subparagraph’’. 
SEC. 11008. SUBMISSION AND REVIEW OF POLICIES. 
Section 508(h)(1) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(h)(1)) is amended— 
(1) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii), respectively, and indenting ap-
propriately; 
(2) by striking ‘‘(1) IN GENERAL.—’’ and insert-
ing the following: 
‘‘(1) SUBMISSION AND REVIEW OF POLICIES.— 
‘‘(A) SUBMISSIONS.—In addition’’; and 
(3) by adding at the end the following: 
‘‘(B) REVIEW.—The Corporation shall re-
view any policy developed under section 522(c) 
or any pilot program developed under section 
523 and submit the policy or program to the 
Board under this subsection if the Corporation, 
at the sole discretion of the Corporation, finds 
that the policy or program— 
‘‘(i) will likely result in a viable and 
marketable policy consistent with this sub-
section;
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† HR 2642 EAS 
‘‘(ii) would provide crop insurance 
coverage in a significantly improved form; 
and 
‘‘(iii) adequately protects the interests 
of producers.’’. 
SEC. 11009. BOARD REVIEW AND APPROVAL. 
(a) REVIEW AND APPROVAL BY THE BOARD.—Section 
508(h) of the Federal Crop Insurance Act (7 U.S.C. 
1508(h)) is amended by striking paragraph (3) and insert-
ing the following: 
‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— 
‘‘(A) IN GENERAL.—A policy, plan of insur-
ance, or other material submitted to the Board 
under this subsection shall be reviewed by the 
Board and shall be approved by the Board for 
reinsurance and for sale by approved insurance 
providers to producers at actuarially appro-
priate rates and under appropriate terms and 
conditions if the Board, at the sole discretion of 
the Board, determines that— 
‘‘(i) the interests of producers are ade-
quately protected; 
‘‘(ii) the rates of premium and price 
election methodology are actuarially appro-
priate;
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† HR 2642 EAS 
‘‘(iii) the terms and conditions for the 
proposed policy or plan of insurance are 
appropriate and would not unfairly dis-
criminate among producers; 
‘‘(iv) the proposed policy or plan of in-
surance will, at the sole discretion of the 
Board— 
‘‘(I) likely result in a viable and 
marketable policy that can reasonably 
attain levels of participation similar to 
other like policies or plans of insur-
ance; 
‘‘(II) provide crop insurance cov-
erage in a significantly improved form 
or in a manner that addresses a recog-
nized flaw or problem in an existing 
policy; or 
‘‘(III) provide a new kind of cov-
erage for a commodity that previously 
had no available crop insurance, or 
has demonstrated a low level of partici-
pation under existing coverage; 
‘‘(v) the proposed policy or plan of in-
surance will, at the sole discretion of the 
Board, not have a significant adverse im-
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† HR 2642 EAS 
pact on the crop insurance delivery system; 
and 
‘‘(vi) the proposed policy or plan of in-
surance meets such other requirements as 
are determined appropriate by the Board. 
‘‘(B) PRIORITIES.— 
‘‘(i) ESTABLISHMENT.—The Board, at 
the sole discretion of the Board, may— 
‘‘(I) annually establish priorities 
under this subsection that specify types 
of submissions needed to fulfill the 
portfolio of policies or plans of insur-
ance to be reviewed and approved 
under this subsection; and 
‘‘(II) make the priorities available 
on the website of the Corporation. 
‘‘(ii) PROCESS.— 
‘‘(I) IN
GENERAL.—Policies or 
plans of insurance that satisfy the pri-
orities established by the Board under 
this subsection shall be considered by 
the Board for approval prior to other 
submissions.
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† HR 2642 EAS 
‘‘(II) CONSIDERATIONS.—In ap-
proving policies or plans of insurance, 
the Board shall— 
‘‘(aa) consider providing the 
highest priorities for policies or 
plans of insurance that address 
underserved commodities, includ-
ing commodities for which there is 
no insurance; and 
‘‘(bb) consider providing the 
highest priorities for existing poli-
cies for which there is inadequate 
coverage or there exists low levels 
of participation. 
‘‘(iii) OTHER
CRITERIA.—The Board 
may establish such other criteria as the 
Board determines to meet the needs of pro-
ducers and the priorities of this subsection, 
consistent with the purposes of this sub-
title.’’. 
SEC. 11010. CONSULTATION. 
Section 508(h)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(h)) is amended by adding at the end the 
following: 
‘‘(E) CONSULTATION.—
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† HR 2642 EAS 
‘‘(i) REQUIREMENT.—As part of the 
feasibility and research associated with the 
development of a policy or other material 
conducted prior to making a submission to 
the Board under this subsection, the sub-
mitter shall consult with groups rep-
resenting producers of agricultural commod-
ities in all major producing areas for the 
commodities to be served or potentially im-
pacted, either directly or indirectly. 
‘‘(ii) SUBMISSION
TO
THE
BOARD.— 
Any submission made to the Board under 
this subsection shall contain a summary 
and analysis of the feasibility and research 
findings from the impacted groups described 
in clause (i), including a summary assess-
ment of the support for or against develop-
ment of the policy and an assessment on the 
impact of the proposed policy to the general 
marketing and production of the crop from 
both a regional and national perspective. 
‘‘(iii) EVALUATION BY THE BOARD.— 
In evaluating whether the interests of pro-
ducers are adequately protected pursuant to 
paragraph (3) with respect to an submis-
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† HR 2642 EAS 
sion made under this subsection, the Board 
shall review the information provided pur-
suant to clause (ii) to determine if the sub-
mission will create adverse market distor-
tions with respect to the production of com-
modities that are the subject of the submis-
sion.’’. 
SEC. 11011. BUDGET LIMITATIONS ON RENEGOTIATION OF 
THE STANDARD REINSURANCE AGREEMENT. 
Section 508(k)(8) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(8)) is amended by adding at the end the 
following: 
‘‘(F) BUDGET.— 
‘‘(i) IN
GENERAL.—The Board shall 
ensure that any Standard Reinsurance 
Agreement negotiated under subparagraph 
(A)(ii), as compared to the previous Stand-
ard Reinsurance Agreement— 
‘‘(I) to the maximum extent prac-
ticable, shall be budget neutral; and 
‘‘(II) in no event, may signifi-
cantly depart from budget neutrality. 
‘‘(ii) USE OF SAVINGS.—To the extent 
that any budget savings is realized in the 
renegotiation of a Standard Reinsurance
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† HR 2642 EAS 
Agreement under subparagraph (A)(ii), and 
the savings are determined not to be a sig-
nificant departure from budget neutrality 
under clause (i), the savings shall be used 
for programs administered or managed by 
the Risk Management Agency.’’. 
SEC. 11012. TEST WEIGHT FOR CORN. 
Section 508(m) of the Federal Crop Insurance Act (7 
U.S.C. 1508(m)) is amended by adding at the end the fol-
lowing: 
‘‘(6) TEST WEIGHT FOR CORN.— 
‘‘(A) IN GENERAL.—The Corporation shall 
establish procedures to allow insured producers 
not more than 120 days to settle claims, in ac-
cordance with procedures established by the Sec-
retary, involving corn that is determined to have 
low test weight. 
‘‘(B) IMPLEMENTATION.—As soon as prac-
ticable after the date of enactment of this para-
graph, the Corporation shall implement subpara-
graph (A) on a regional basis based on market 
conditions and the interests of producers. 
‘‘(C) TERMINATION
OF
EFFECTIVENESS.— 
The authority provided by this paragraph termi-
nates effective on the date that is 5 years after
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† HR 2642 EAS 
the date on which subparagraph (A) is imple-
mented.’’. 
SEC. 11013. STACKED INCOME PROTECTION PLAN FOR PRO-
DUCERS OF UPLAND COTTON. 
(a) AVAILABILITY OF STACKED INCOME PROTECTION 
PLAN.—The Federal Crop Insurance Act is amended by in-
serting after section 508A (7 U.S.C. 1508a) the following: 
‘‘SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRO-
DUCERS OF UPLAND COTTON. 
‘‘(a) AVAILABILITY.—Beginning not later than the 
2014 crop of upland cotton, if practicable, the Corporation 
shall make available to producers of maximum eligible acres 
of upland cotton an additional policy (to be known as the 
‘Stacked Income Protection Plan’), which shall provide cov-
erage consistent with the Group Risk Income Protection 
Plan (and the associated Harvest Revenue Option Endorse-
ment) offered by the Corporation for the 2011 crop year. 
‘‘(b) REQUIRED TERMS.—The Corporation may mod-
ify the Stacked Income Protection Plan on a program-wide 
basis, except that the Stacked Income Protection Plan shall 
comply with the following requirements: 
‘‘(1)(A) Provide coverage for revenue loss of not 
more than 30 percent of expected county revenue, 
specified in increments of 5 percent.
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† HR 2642 EAS 
‘‘(B) The deductible is the minimum percent of 
revenue loss at which indemnities are triggered under 
the plan, not to be less than 10 percent of the expected 
county revenue. 
‘‘(C) Once the deductible is met, any losses in ex-
cess of the deductible will be paid up to the coverage 
selected by the producer. 
‘‘(2) Be offered to producers of upland cotton in 
all counties with upland cotton production— 
‘‘(A) at a county-wide level to the fullest ex-
tent practicable; or 
‘‘(B) in counties that lack sufficient data, 
on the basis of such larger geographical area as 
the Corporation determines to provide sufficient 
data for purposes of providing the coverage. 
‘‘(3) Be purchased in addition to any other indi-
vidual or area coverage in effect on the producer’s 
acreage or as a stand-alone policy, except that if a 
producer has an individual or area coverage for the 
same acreage, the maximum coverage available under 
the Stacked Income Protection Plan shall not exceed 
the deductible for the individual or area coverage. 
‘‘(4) Establish coverage based on— 
‘‘(A) an expected price that is the expected 
price established under existing Group Risk In-
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† HR 2642 EAS 
come Protection or area wide policy offered by 
the Corporation for the applicable county (or 
area) and crop year; and 
‘‘(B) an expected county yield that is the 
higher of— 
‘‘(i) the expected county yield estab-
lished for the existing area-wide plans of-
fered by the Corporation for the applicable 
county (or area) and crop year (or, in geo-
graphic areas where area-wide plans are 
not offered, an expected yield determined in 
a manner consistent with those of area-wide 
plans); or 
‘‘(ii)(I) the average of the applicable 
yield data for the county (or area) for the 
most recent 5 years, excluding the highest 
and lowest observations, from the Risk Man-
agement Agency or the National Agricul-
tural Statistics, or both; or 
‘‘(II) if sufficient county data is not 
available, such other data considered appro-
priate by the Secretary. 
‘‘(5) Use a multiplier factor to establish max-
imum protection per acre (referred to as a ‘protection 
factor’) of not more than 120 percent.
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† HR 2642 EAS 
‘‘(6) Pay an indemnity based on the amount 
that the expected county revenue exceeds the actual 
county revenue, as applied to the individual coverage 
of the producer. Indemnities under the Stacked In-
come Protection Plan shall not include or overlap the 
amount of the deductible selected under paragraph 
(1). 
‘‘(7) To the maximum extent practicable, in all 
counties for which data are available, establish sepa-
rate coverage for irrigated and nonirrigated practices. 
‘‘(8) Notwithstanding section 508(d), include a 
premium that— 
‘‘(A) is sufficient to cover anticipated losses 
and a reasonable reserve; and 
‘‘(B) includes an amount for operating and 
administrative expenses established in accord-
ance with section 508(k)(4)(F). 
‘‘(c) RELATION TO OTHER COVERAGES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Stacked Income Protection Plan is in 
addition to all other coverages available to producers 
of upland cotton. 
‘‘(2) LIMITATION.—Acreage of upland cotton in-
sured under the Supplemental Coverage Option shall
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† HR 2642 EAS 
not be eligible for the Stacked Income Protection 
Plan. 
‘‘(d) PAYMENT OF PORTION OF PREMIUM BY COR-
PORATION.—Subject to section 508(e)(4), the amount of pre-
mium paid by the Corporation for all qualifying coverage 
levels of the Stacked Income Protection Plan shall be— 
‘‘(1) 80 percent of the amount of the premium es-
tablished under subsection (b)(8)(A) for the coverage 
level selected; and 
‘‘(2) the amount determined under subsection 
(b)(8)(B) to cover administrative and operating ex-
penses.’’. 
(b) CONFORMING AMENDMENT.—Section 508(k)(4)(F) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) 
(as amended by section 11001(d)) is amended by inserting 
‘‘or under section 508B’’ after ‘‘subsection (c)(4)(C)’’. 
SEC. 11014. PEANUT REVENUE CROP INSURANCE. 
The Federal Crop Insurance Act is amended by insert-
ing after section 508B (as added by section 11013(a)) the 
following: 
‘‘SEC. 508C. PEANUT REVENUE CROP INSURANCE. 
‘‘(a) IN GENERAL.—Effective beginning with the 2014 
crop year, the Risk Management Agency and the Corpora-
tion shall make available to producers of peanuts a revenue 
crop insurance program for peanuts.
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† HR 2642 EAS 
‘‘(b) EFFECTIVE PRICE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), for 
purposes of the policies and plans of insurance offered 
under subsections (a) and (b) of section 508, the effec-
tive price for peanuts shall be equal to the Rotterdam 
price index for peanuts, as adjusted to reflect the 
farmer stock price of peanuts in the United States. 
‘‘(2) ADJUSTMENTS.— 
‘‘(A) IN GENERAL.—The effective price for 
peanuts established under paragraph (1) may be 
adjusted by the Risk Management Agency and 
the Corporation to correct distortions. 
‘‘(B) ADMINISTRATION.—If an adjustment 
is made under subparagraph (A), the Risk Man-
agement Agency and the Corporation shall— 
‘‘(i) make the adjustment in an open 
and transparent manner; and 
‘‘(ii) submit to the Committee on Agri-
culture of the House of Representatives and 
the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that de-
scribes the reasons for the adjustment.’’. 
SEC. 11015. AUTHORITY TO CORRECT ERRORS. 
Section 515(c) of the Federal Crop Insurance Act (7 
U.S.C. 1515(c)) is amended—
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† HR 2642 EAS 
(1) in the first sentence, by striking ‘‘The Sec-
retary’’ and inserting the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) in the second sentence, by striking ‘‘Begin-
ning with’’ and inserting the following: 
‘‘(2) FREQUENCY.—Beginning with’’; and 
(3) by adding at the end the following: 
‘‘(3) CORRECTIONS.— 
‘‘(A) IN GENERAL.—The Corporation shall 
establish procedures that allow an agent and ap-
proved insurance provider within a reasonable 
amount of time following the applicable sales 
closing date to correct information regarding the 
entity name, social security number, tax identi-
fication number, or such other eligibility infor-
mation as determined by the Corporation that is 
provided by a producer for the purpose of obtain-
ing coverage under any policy or plan of insur-
ance made available under this subtitle to ensure 
that the eligibility information is consistent with 
the information reported by the producer to the 
Farm Service Agency. 
‘‘(B) LIMITATION.—In accordance with the 
procedures of the Corporation, procedures under 
subparagraph (A) may include any subsequent
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† HR 2642 EAS 
correction to the eligibility information described 
in that subparagraph made by the Farm Service 
Agency if the corrections do not allow the pro-
ducer— 
‘‘(i) to obtain a disproportionate ben-
efit under the crop insurance program or 
any related program of the Department of 
Agriculture; 
‘‘(ii) to avoid ineligibility require-
ments for insurance; or 
‘‘(iii) to avoid an obligation or re-
quirement under any Federal or State 
law.’’. 
SEC. 11016. IMPLEMENTATION. 
Section 515 of the Federal Crop Insurance Act (7 
U.S.C. 1515) is amended— 
(1) in subsection (j), by striking paragraph (1) 
and inserting the following: 
‘‘(1) SYSTEMS MAINTENANCE AND UPGRADES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
maintain and upgrade the information manage-
ment systems of the Corporation used in the ad-
ministration and enforcement of this subtitle. 
‘‘(B) REQUIREMENT.—
1062 
† HR 2642 EAS 
‘‘(i) IN
GENERAL.—In maintaining 
and upgrading the systems, the Secretary 
shall ensure that new hardware and soft-
ware are compatible with the hardware and 
software used by other agencies of the De-
partment to maximize data sharing and 
promote the purposes of this section. 
‘‘(ii) ACREAGE REPORT STREAMLINING 
INITIATIVE
PROJECT.—As soon as prac-
ticable, the Secretary shall develop and im-
plement an acreage report streamlining ini-
tiative project to allow producers to report 
acreage and other information directly to 
the Department.’’; and 
(2) in subsection (k), by striking paragraph (1) 
and inserting the following: 
‘‘(1) INFORMATION TECHNOLOGY.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (j)(1), the Corporation may use, from 
amounts made available from the insurance fund 
established under section 516(c), not more 
than— 
‘‘(i)(I) 
for 
fiscal 
year 
2014, 
$25,000,000; and
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† HR 2642 EAS 
‘‘(II) for each of fiscal years 2015 
through 2018, $10,000,000; or 
‘‘(ii) if the Acreage Crop Reporting 
Streamlining Initiative (ACRSI) project is 
substantially completed by September 30, 
2013, not more than $15,000,000 for each of 
fiscal years 2015 through 2018. 
‘‘(B) NOTIFICATION.—Not later than July 
1, 2013, the Secretary shall notify the Committee 
on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on the status of the 
substantial completion of the Acreage Crop Re-
porting 
Streamlining 
Initiative 
(ACRSI) 
project.’’. 
SEC. 11017. CROP INSURANCE FRAUD. 
Section 516(b)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1516(b)(2)) is amended by adding at the end the 
following: 
‘‘(C) REVIEWS, COMPLIANCE, AND PROGRAM 
INTEGRITY.—For each of the 2014 and subse-
quent reinsurance years, the Corporation may 
use the insurance fund established under sub-
section (c), but not to exceed $5,000,000 for each 
fiscal year, to pay the following:
1064 
† HR 2642 EAS 
‘‘(i) Costs to reimburse expenses in-
curred for the review of policies, plans of in-
surance, and related materials and to assist 
the Corporation in maintaining program 
integrity. 
‘‘(ii) In addition to other available 
funds, costs incurred by the Risk Manage-
ment Agency for compliance operations as-
sociated with activities authorized under 
this title.’’. 
SEC. 11018. APPROVAL OF COSTS FOR RESEARCH AND DE-
VELOPMENT. 
Section 522(b)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1522(b)(2)) is amended by striking subparagraph 
(E) and inserting the following: 
‘‘(E) APPROVAL.— 
‘‘(i) IN
GENERAL.—The Board may 
approve up to 50 percent of the projected 
total research and development costs to be 
paid in advance to an applicant, in accord-
ance with the procedures developed by the 
Board for the making of the payments, if, 
after consideration of the reviewer reports 
described in subparagraph (D) and such
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† HR 2642 EAS 
other information as the Board determines 
appropriate, the Board determines that— 
‘‘(I) the concept, in good faith, 
will likely result in a viable and mar-
ketable policy consistent with section 
508(h); 
‘‘(II) at the sole discretion of the 
Board, the concept, if developed into a 
policy and approved by the Board, 
would provide crop insurance cov-
erage— 
‘‘(aa) in a significantly im-
proved form or that addresses a 
unique need of agricultural pro-
ducers; 
‘‘(bb) to a crop or region not 
traditionally served by the Fed-
eral crop insurance program; or 
‘‘(cc) in a form that address-
es a recognized flaw or problem in 
the program; 
‘‘(III) the applicant agrees to pro-
vide such reports as the Corporation 
determines are necessary to monitor 
the development effort;
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† HR 2642 EAS 
‘‘(IV) the proposed budget and 
timetable are reasonable, as determined 
by the Board; and 
‘‘(V) the concept proposal meets 
any other requirements that the Board 
determines appropriate. 
‘‘(ii) WAIVER.—The Board may waive 
the 50-percent limitation and, upon request 
of the submitter after the submitter has 
begun research and development activities, 
the Board may approve an additional 25 
percent advance payment to the submitter 
for research and development costs, if, at the 
sole discretion of the Board, the Board de-
termines that— 
‘‘(I) the intended policy or plan of 
insurance developed by the submitter 
will provide coverage for a region or 
crop that is underserved by the Federal 
crop insurance program, including 
specialty crops; 
‘‘(II) the submitter is making sat-
isfactory progress towards developing a 
viable and marketable policy or plan of
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† HR 2642 EAS 
insurance 
consistent 
with 
section 
508(h); and 
‘‘(III) the submitter does not have 
sufficient financial resources to com-
plete the development of the submission 
into a viable and marketable policy or 
plan of insurance consistent with sec-
tion 508(h).’’. 
SEC. 11019. WHOLE FARM RISK MANAGEMENT INSURANCE. 
Section 522(c) of the Federal Crop Insurance Act (7 
U.S.C. 1522(c)) is amended by adding at the end the fol-
lowing: 
‘‘(18) WHOLE FARM DIVERSIFIED RISK MANAGE-
MENT INSURANCE PLAN.— 
‘‘(A) IN GENERAL.—The Corporation shall 
conduct activities or enter into contracts to carry 
out research and development to develop a whole 
farm risk management insurance plan, with a 
liability limitation of $1,500,000, that allows a 
diversified crop or livestock producer the option 
to qualify for an indemnity if actual gross farm 
revenue is below 85 percent of the average gross 
farm revenue or the expected gross farm revenue 
that can reasonably be expected of the producer, 
as determined by the Corporation.
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‘‘(B) ELIGIBLE PRODUCERS.—The Corpora-
tion shall permit producers (including direct-to- 
consumer marketers, and producers servicing 
local and regional and farm identity-preserved 
markets) who produce multiple agricultural com-
modities, including specialty crops, industrial 
crops, livestock, and aquaculture products, to 
participate in the plan in lieu of any other plan 
under this subtitle. 
‘‘(C) DIVERSIFICATION.—The Corporation 
may provide diversification-based additional 
coverage payment rates, premium discounts, or 
other enhanced benefits in recognition of the risk 
management benefits of crop and livestock diver-
sification strategies for producers that grow mul-
tiple crops or that may have income from the 
production of livestock that uses a crop grown on 
the farm. 
‘‘(D) MARKET READINESS.—The Corpora-
tion may include coverage for the value of any 
packing, packaging, or any other similar on- 
farm activity the Corporation determines to be 
the minimum required in order to remove the 
commodity from the field.
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‘‘(E) REPORT.—Not later than 2 years after 
the date of enactment of this paragraph, the Cor-
poration shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that describes the re-
sults and feasibility of the research and develop-
ment conducted under this paragraph, including 
an analysis of potential adverse market distor-
tions.’’. 
SEC. 11020. STUDY OF FOOD SAFETY INSURANCE. 
Section 522(c) of the Federal Crop Insurance Act (7 
U.S.C. 1522(c)) (as amended by section 11018) is amended 
by adding at the end the following: 
‘‘(19) STUDY OF FOOD SAFETY INSURANCE.— 
‘‘(A) IN GENERAL.—The Corporation shall 
offer to enter into a contract with 1 or more 
qualified entities to conduct a study to determine 
whether offering policies that provide coverage 
for specialty crops from food safety and contami-
nation issues would benefit agricultural pro-
ducers. 
‘‘(B) SUBJECT.—The study described in 
subparagraph (A) shall evaluate policies and 
plans of insurance coverage that provide protec-
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(e) OTHER FUNDING.—The Secretary should take into 
account other public and private citrus-related research and 
development projects and funding. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this section for each of fiscal years 2014 
through 2019. 
Attest: 
Secretary.