Stacked Income Protection Plan for producers of upland cotton

7 U.S.C. § 1508b
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
(a) AvailabilityBeginning not later than the 2015 crop of upland cotton, the Corporation shall make available to producers of upland cotton an additional policy (to be known as the “Stacked Income Protection Plan”), which shall provide coverage consistent with the Group Risk Income Protection Plan (and the associated Harvest Revenue Option Endorsement) offered by the Corporation for the 2011 crop year. (b) Required termsThe Corporation may modify the Stacked Income Protection Plan on a program-wide basis, except that the Stacked Income Protection Plan shall comply with the following requirements:(1) Provide coverage for revenue loss of not less than 10 percent and not more than 30 percent of expected county revenue, specified in increments of 5 percent. The deductible shall be 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. (2) Be offered to producers of upland cotton in all counties with upland cotton production—(A) at a county-wide level to the fullest extent 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 individual 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) the expected price established under existing Group Risk Income 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 established for the existing area-wide plans offered by the Corporation for the applicable county (or area) and crop year (or, in geographic areas where area-wide plans are not offered, an expected yield determined in a manner consistent with those of area-wide plans); or (ii) 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 Management Agency or the National Agricultural Statistics Service (or both) or, if sufficient county data is not available, such other data considered appropriate by the Secretary. (5) Use a multiplier factor to establish maximum protection per acre (referred to as a “protection factor”) of not less than the higher of the level established on a program wide basis or 120 percent. (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 Income Protection Plan shall not include or overlap the amount of the deductible selected under paragraph (1). (7) In all counties for which data are available, establish separate coverage levels for irrigated and nonirrigated practices. (c) PremiumNotwithstanding section 1508(d) of this title, the premium for the Stacked Income Protection Plan shall—(1) be sufficient to cover anticipated losses and a reasonable reserve; and (2) include an amount for operating and administrative expenses established in accordance with section 1508(k)(4)(F) of this title. (d) Payment of portion of premium by corporationSubject to section 1508(e)(4) of this title, the amount of premium 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 established under subsection (c) for the coverage level selected; and (2) the amount determined under subsection (c)(2), subject to section 1508(k)(4)(F) of this title, for the coverage to cover administrative and operating expenses. (e) Relation to other coveragesThe Stacked Income Protection Plan is in addition to all other coverages available to producers of upland cotton. (f) LimitationEffective beginning with the 2019 crop year, a farm shall not be eligible for the Stacked Income Protection Plan for upland cotton for a crop year for which the farm is enrolled in coverage for seed cotton under—(1) price loss coverage under section 9016 of this title; or (2) agriculture risk coverage under section 9017 of this title.

Starting a business? Corpus forms LLCs in all 50 states and DC.