H. R. 1589
IN THE HOUSE OF REPRESENTATIVES
April 16, 2013
Mr. Welch (for himself and Mr. Gibson) introduced the following bill; which was referred to the Committee on Agriculture
To expand the noninsured crop assistance program established by the Federal Agriculture Improvement and Reform Act of 1996 to provide coverages for eligible crops under the program equivalent to additional coverage available under the Federal Crop Insurance Act.
This Act may be cited as the
Small Farm Insurance Act of
Noninsured crop assistance program
Section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333), as amended by section 11013(b)) is further amended—
in subsection (a)—
by striking paragraph (1) and inserting the following new paragraph:
In the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall operate a noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to—
catastrophic risk protection available under section 508(b) of the Federal Crop Insurance Act ( 7 U.S.C. 1508(b) ); or
additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) that does not exceed 65 percent.
The Secretary shall carry out this section
through the Farm Service Agency (referred to in this section as the
in paragraph (2)(A)—
in clause (i), by striking
and after the semicolon at the end;
by redesignating clause (ii) as clause (iii); and
by inserting after clause (i) the following new clause:
for which additional coverage under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) is not available; and
in subsection (d), by striking
Secretary and inserting
Subject to subsection (l), the
by adding at the end the following new subsection:
Payment equivalent to additional coverage
The Secretary shall make available to a producer eligible for noninsured assistance under this section a payment equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 percent of the established yield for the eligible crop on the farm, computed by multiplying—
the quantity that is not greater than 65 percent of the established yield for the crop, as determined by the Secretary, specified in increments of 5 percent;
100 percent of the average market price for the crop, as determined by the Secretary; and
a payment rate for the type of crop, as determined by the Secretary, that reflects—
in the case of a crop that is produced with a significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the crop that is, as applicable—
planted but not harvested; or
prevented from being planted because of drought, flood, or other natural disaster, as determined by the Secretary; or
in the case of a crop that is produced without a significant and variable harvesting expense, such rate as shall be determined by the Secretary.
To be eligible to receive a payment under this subsection, a producer shall pay—
the service fee required by subsection (k); and
a premium for the applicable crop year that is equal to the product obtained by multiplying—
the number of acres devoted to the eligible crop;
the established yield for the eligible crop, as determined by the Secretary under subsection (e);
the coverage level elected by the producer;
the average market price, as determined by the Secretary; and
Limited resource, beginning, and socially disadvantaged farmers
The additional coverage made available under this subsection shall be available to limited resource, beginning, and socially disadvantaged producers, as determined by the Secretary, in exchange for a premium that is 50 percent of the premium determined for a producer under paragraph (2).
Premium Payment and Application Deadline
A producer electing additional coverage under this subsection shall pay the premium amount owed for the additional coverage by September 30 of the crop year for which the additional coverage is purchased.
The latest date on which additional coverage under this subsection may be elected shall be the application closing date described in subsection (b)(1).
Additional coverage under this subsection shall be available beginning with the 2014 crop.