§1508b Stacked Income Protection Plan for Producers of Upland Cotton

Summary

Starting with the 2015 upland cotton crop, the federal crop insurance agency must offer a new policy called the Stacked Income Protection Plan. It must match the Group Risk Income Protection plan and its Harvest Revenue Option as they were for the 2011 crop year. The plan must give county-level revenue protection choices from 10% to 30% of expected county revenue, in 5% steps, and the deductible is the lowest percent chosen but not less than 10%. It must be available countywide where possible, or over a larger area if county data are too weak. Farmers can buy it alone or on top of other coverage, but if they already have individual or area coverage for the same acres, the Stacked plan’s maximum pay is capped at that other coverage’s deductible. Expected price comes from the existing area plan price. Expected county yield is the higher of the plan’s usual expected yield or a 5-year trimmed average. A multiplier for per-acre protection must be at least the program-wide level or 120%, whichever is higher. Payments are based on the shortfall between expected county revenue and actual county revenue applied to a farmer’s coverage, and do not include the chosen deductible. The plan must separate irrigated and nonirrigated levels where data exist. Premiums must cover expected losses, a reasonable reserve, and include an amount for operating and admin costs. The government pays 80% of the premium plus the established admin amount, subject to other statutory limits. The plan is additional to other cotton programs, but starting with the 2019 crop year a farm cannot use this plan for upland cotton if that farm is using price loss coverage or agriculture risk coverage for seed cotton that year.