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the area yield and loss indemnity payment received
from the Corporation or a commercial reinsurer
that exceeds the individual indemnity payment
made by the provider to the producer.
‘‘(D) The Corporation shall pay a part of the
premium equivalent to—
‘‘(i) the amount authorized under para-
graph (2) (except provisions regarding operat-
ing and administrative expenses); and
‘‘(ii) the amount of operating and admin-
istrative expenses authorized by the Corpora-
tion for the area yield coverage portion of the
combined policy.
‘‘(E) The provider shall provide all underwrit-
ing services for the combined policy, including the
determination of individual yield coverage premium
rates, the terms and conditions of the policy, and
the acceptance and classification of applicants into
risk categories, subject to subparagraph (F).
‘‘(F) The Corporation shall approve the com-
bined policy unless the Corporation determines that
the policy is not actuarially sound or that the inter-
ests of producers are not adequately protected.
‘‘(f) ELIGIBILITY.—
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‘‘(1) IN GENERAL.—To participate in catastrophic
risk protection coverage under this section, a producer
shall submit an application at the local office of the De-
partment or to an approved insurance provider.
‘‘(2) SALES CLOSING DATE.—For coverage under
this title, each producer shall purchase crop insurance on
or before the sales closing date for the crop by providing
the required information and executing the required doc-
uments. Subject to the goal of ensuring actuarial sound-
ness for the crop insurance program, the sales closing
date shall be established by the Corporation to maximize
convenience to producers in obtaining benefits under
price and production adjustment programs of the De-
partment. Beginning with the 1995 crop year, the Cor-
poration shall establish, for an insurance policy for each
insurable crop that is planted in the spring, a sales clos-
ing date that is 30 days earlier than the corresponding
sales closing date that was established for the 1994 crop
year.
‘‘(3) RECORDS AND REPORTING.—To obtain cata-
strophic risk protection under subsection (b) or addi-
tional coverage under subsection (c), a producer shall—
‘‘(A) provide, to the extent required by the
Corporation, records acceptable to the Corporation
of historical acreage and production of the crops for
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which the insurance is sought or accept a yield de-
termined by the Corporation; and
‘‘(B) report acreage planted and prevented
from planting by the designated acreage reporting
date for the crop and location as established by the
Corporation.
‘‘(g) YIELD DETERMINATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Corporation shall establish crop insurance underwriting
rules that ensure that yield coverage, as specified in this
subsection, is provided to eligible producers obtaining
catastrophic risk protection under subsection (b) or addi-
tional coverage under subsection (c).
‘‘(2) YIELD COVERAGE PLANS.—
‘‘(A) ACTUAL PRODUCTION HISTORY.—Subject
to subparagraph (B), the yield for a crop shall be
based on the actual production history for the crop,
if the crop was produced on the farm without pen-
alty during each of the 4 crop years immediately
preceding the crop year for which actual production
history is being established, building up to a pro-
duction data base for each of the 10 consecutive
crop years preceding the crop year for which actual
production history is being established.
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‘‘(B) ASSIGNED YIELD.—If the producer does
not provide satisfactory evidence of the yield of a
commodity under subparagraph (A), the producer
shall be assigned a yield that is not less than 65
percent of the transitional yield of the producer (ad-
justed to reflect actual production reflected in the
records acceptable to the Corporation for continu-
ous years), as specified in regulations issued by the
Corporation based on production history require-
ments.
‘‘(C) AREA YIELD.—The Corporation may offer
a crop insurance plan based on an area yield that
allows an insured producer to qualify for an indem-
nity if a loss has occurred in an area (as specified
by the Corporation) in which the farm of the pro-
ducer is located. Under an area yield plan, an in-
sured producer shall be allowed to select the level
of area production at which an indemnity will be
paid consistent with such terms and conditions as
are established by the Corporation.
‘‘(D) COMMODITY-BY-COMMODITY
BASIS.—A
producer may choose between individual yield or
area yield coverage or combined coverage (as pro-
vided in subsection (e)(4)), if available, on a com-
modity-by-commodity basis.
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‘‘(3) TRANSITIONAL
YIELDS
FOR
PRODUCERS
OF
FEED OR FORAGE.—
‘‘(A) IN
GENERAL.—If a producer does not
provide satisfactory evidence of a yield under para-
graph (2)(A), the producer shall be assigned a yield
that is at least 80 percent of the transitional yield
established by the Corporation (adjusted to reflect
the actual production history of the producer) if the
Secretary determines that—
‘‘(i) the producer grows feed or forage pri-
marily for on-farm use in a livestock, dairy, or
poultry operation; and
‘‘(ii) over 50 percent of the net farm in-
come of the producer is derived from the oper-
ation.
‘‘(B) YIELD CALCULATION.—The Corporation
shall—
‘‘(i) for the first year of participation of a
producer, provide the assigned yield under this
paragraph to the producer of feed or forage;
and
‘‘(ii) for the second year of participation
of the producer, apply the actual production
history or assigned yield requirement, as pro-
vided in this subsection.