Rep. Randy Neugebauer (R-Texas) has introduced the Crop Risk Options Plan (CROP) Act, which would amend the Federal Crop Insurance Act in order to provide producers with the opportunity to purchase an area-wide policy that would cover all or a portion of the deductible under their individual policy.

According to a statement released by Rep. Neugebauer, the CROP Act “would enable producers to insure crops against shallow losses, which can be 25 percent-30 percent of a farmer’s expected production.”

Additional coverage allowed under the Neugebauer bill would trigger when area losses reach 10 percent, and indemnities under the additional coverage are limited to the amount of the deductible under the underlying individual policy. Premium subsidies for the additional coverage shall not be less than 60 percent.

The bill also calls for changes in the determination of a producer’s actual production history (APH).

Specifically, the bill would move from a 10-year average to a seven-year average with the highest and lowest experience dropped from the average, otherwise known as a seven-year Olympic average.