I 113th CONGRESS 1st Session H. R. 1606 IN THE HOUSE OF REPRESENTATIVES April 17, 2013 Mr. Neugebauer introduced the following bill; which was referred to the Committee on Agriculture A BILL To amend the Federal Crop Insurance Act to make available to producers a supplemental coverage option 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. Short title This Act may be cited as the Crop Risk Options Plan Act of 2013 . 2. Supplemental coverage option (a) Availability of supplemental coverage option Paragraph (3) of section 508(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(c) ) is amended to read as follows: (3) Yield and loss basis options A producer shall have the option of purchasing additional coverage based on— (A) (i) an individual yield and loss basis; or (ii) an area yield and loss basis; (B) an individual yield and loss basis, supplemented with coverage based on an area yield and loss basis to cover a part of the deductible under the individual yield and loss policy, as described in paragraph (4)(C); or (C) a margin basis alone or in combination with the coverages available in subparagraph (A) or (B). . (b) Level of coverage Paragraph (4) of section 508(c) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(c) ) is amended to read as follows: (4) Level of coverage (A) Dollar denomination and percentage of yield Except as provided in subparagraph (C), the level of coverage— (i) shall be dollar denominated; and (ii) may be purchased at any level not to exceed 85 percent of the individual yield or 95 percent of the area yield (as determined by the Corporation). (B) Information The Corporation shall provide producers with information on catastrophic risk and additional coverage in terms of dollar coverage (within the allowable limits of coverage provided in this paragraph). (C) Supplemental coverage option (i) In general Notwithstanding subparagraph (A), in the case of the supplemental coverage option described in paragraph (3)(B), the Corporation shall offer producers the opportunity to purchase coverage in combination with a policy or plan of insurance offered under this subtitle that would allow indemnities to be paid to a producer equal to a part of the deductible under the policy or plan of insurance— (I) at a county-wide level to the fullest extent practicable; or (II) 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. (ii) Trigger Coverage offered under paragraph (3)(B) and clause (i) shall be triggered only if the losses in the area exceed 10 percent of normal levels (as determined by the Corporation). (iii) Coverage Subject to the trigger described in clause (ii), coverage offered under paragraph (3)(B) and clause (i) shall not exceed the difference between— (I) 90 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 premium for coverage offered under paragraph (3)(B) and clause (i) shall— (I) be sufficient to cover anticipated losses and a reasonable reserve; and (II) include an amount for operating and administrative expenses established in accordance with subsection (k)(4)(F). . (c) Payment of portion of premium by Corporation 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 new subparagraph: (H) In the case of the supplemental coverage option authorized in subsection (c)(4)(C), the amount shall be equal to the sum of— (i) 60 percent of the additional premium associated with the coverage; and (ii) the amount determined under subsection (c)(4)(C)(vi)(II), subject to subsection (k)(4)(F), for the coverage to cover operating and administrative expenses. . (d) Effective date The Federal Crop Insurance Corporation shall begin to provide additional coverage based on an individual yield and loss basis, supplemented with coverage based on an area yield and loss basis, not later than for the 2014 crop year. 3. Data sources for determination of actual production history 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 new subparagraph: (E) Sources of yield data To determine yields under this paragraph, the Corporation shall use data collected by the Risk Management Agency or the National Agricultural Statistics Service, or both. .