‘‘(I) the producer’s actual produc-
tion history for the preceding year (or 
years if available); and 
‘‘(II) the assigned yield deter-
mined under this clause. 
‘‘(ii) ELIGIBLE PRODUCERS.—An eligi-
ble producer referred to in clause (i) is a 
producer that, as determined by the Sec-
retary— 
‘‘(I) grows the insured feed or for-
age crop primarily for on-farm use in 
a livestock, dairy, or poultry operation; 
and 
‘‘(II) derives over 50 percent of 
the producer’s gross farm income from 
the livestock, dairy, or poultry oper-
ation. 
‘‘(iii) TERMINATION OF AUTHORITY.— 
The authority provided by this subpara-
graph shall apply only during the 1995 
through 1998 crop years. 
‘‘(3) AREA YIELD BASIS.—The Corporation may 
offer a crop insurance plan based on an area yield 
that allows an insured producer to qualify for an in-
demnity if a loss occurs in an area, as specified by 
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the Corporation, in which the farm of the producer is 
located. Under an area yield plan, an insured pro-
ducer shall be allowed to select the level of area pro-
duction at which an indemnity will be paid con-
sistent with the terms and conditions established by 
the Corporation. 
‘‘(4) COMMODITY-BY-COMMODITY BASIS.—A pro-
ducer may choose between either individual yield or 
area yield coverage, where available, on a commodity- 
by-commodity basis.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) REPEAL
OF
EXISTING
CROP
INSURANCE 
YIELD COVERAGE.—Section 508A of the Federal Crop 
Insurance Act (7 U.S.C. 1508A) is repealed. 
(2) TAX EXEMPTION.—Section 511 of such Act (7 
U.S.C. 1511) is amended by inserting ‘‘its contracts 
of insurance and premium thereon, whether insured 
directly or reinsured by the Corporation,’’ after ‘‘The 
Corporation, including’’. 
(3) PERSONS UNDER 21 YEARS OF AGE.—Sec-
tion 520 of such Act (7 U.S.C. 1520) is repealed. 
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SEC. 7. PREPARATION OF POLICIES, CLAIMS, AND REINSUR-
ANCE. 
(a) SUBMISSION OF POLICIES.—Subsection (h) of sec-
tion 508 of the Federal Crop Insurance Act (7 U.S.C. 1508), 
as redesignated by section 6(a)(2), is amended— 
(1) in paragraph (1), by striking ‘‘subsection 
(a)’’ and inserting ‘‘subsection (c)’’; and 
(2) by striking paragraphs (2), (3), and (4) and 
inserting the following new paragraphs: 
‘‘(2) SUBMISSION
OF
POLICIES.—A policy or 
other material submitted to the Board under this sub-
section may be prepared without regard to the limita-
tions contained in this title, including the require-
ments concerning the levels of coverage and rates and 
the requirement that a price level for each commodity 
insured must equal the expected market price for the 
commodity as established by the Board. In the case of 
such a policy, the payment by the Corporation of a 
portion of the premium of the policy may not exceed 
the amount that would otherwise be authorized under 
subsection (e). 
‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— 
A policy or other material submitted to the Board 
under this subsection shall be reviewed by the Board 
and, if the Board finds that the interests of producers 
are adequately protected and that any premiums 
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charged to such producers are actuarially appro-
priate, shall be approved by the Board for reinsur-
ance and for sale to producers as an additional choice 
at actuarially appropriate rates and under appro-
priate terms and conditions. The Corporation may 
enter into more than one reinsurance agreement with 
the private insurance provider simultaneously to fa-
cilitate the offering of such new policies. 
‘‘(4) GUIDELINES
FOR
SUBMISSION
AND
RE-
VIEW.—The Corporation shall issue regulations to es-
tablish guidelines for the submission and Board re-
view of policies or other material submitted to the 
Board under this subsection. At a minimum, the 
guidelines shall ensure the following: 
‘‘(A) Proposals submitted to the Board 
under this subsection shall be considered as con-
fidential commercial or financial information 
for purposes of section 552(b)(4) of title 5, 
United States Code, until approved by the 
Board. Proposals disapproved by the Board shall 
remain confidential commercial or financial in-
formation. 
‘‘(B) The Board shall provide an applicant 
with the opportunity to present the proposal to 
the Board in person if the applicant so desires. 
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‘‘(C) The Board shall provide an applicant 
with notification of intent to disapprove a pro-
posal not later than 30 days prior to taking such 
action. An applicant that receives such notifica-
tion may modify such application, and such 
modification shall be considered an original ap-
plication for purposes of this paragraph. 
‘‘(D) Specific guidelines shall deal with the 
timing of submission of proposals under this sub-
section and timely consideration by the Board so 
that any approved proposal may be made avail-
able to all persons reinsured by the Corporation 
in a manner permitting them to participate, if 
they so desire, in offering such a proposal in the 
first crop year in which it is approved by the 
Board for reinsurance, premium subsidy, or 
other support offered by this title. 
‘‘(5) REQUIRED
PUBLICATION.—Any policies, 
provisions of policies, and rates approved under this 
subsection shall be published as a notice in the Fed-
eral Register and made available to all persons con-
tracting with or reinsured by the Corporation under 
the same terms and conditions as between the Cor-
poration and the person originally submitting the 
policy or other material.’’. 
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