(1) by redesignating subsections (j), (k), (l), (m), 
and (n) as subsections (k), (l), (m), (n), and (o), re-
spectively; and 
(2) by inserting after subsection (i) the following 
new subsection: 
‘‘(j) CLAIMS SETTLEMENT.—The Corporation shall 
have the authority to make final and conclusive settlement 
and adjustment of any claims made by or against the Cor-
poration or the accounts of its fiscal officers.’’. 
(b) REGULATIONS; PREEMPTION.—Subsection (e) of 
such section is amended— 
(1) by striking ‘‘governing’’ and inserting ‘‘to 
carry out this title and to govern’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘State and local laws or rules shall not apply 
to rules and regulations adopted by the Corporation 
to the extent that such rules and regulations so pro-
vide or to the extent that State and local laws or rules 
are inconsistent with such rules and regulations.’’. 
(c) DEFINITION OF SUBSTANTIAL BENEFICIAL INTER-
EST.—Subsection (m) of such section (as redesignated by 
subsection (a)(1)) is amended in paragraph (4) by striking 
‘‘5 percent’’ and inserting ‘‘10 percent’’. 
(d) PENALTY FOR FALSE INFORMATION.—Subsection 
(n) of such section (as redesignated by subsection (a)(1)) 
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is amended in paragraph (1) by striking subparagraph (B) 
and inserting the following new subparagraph: 
‘‘(B) disqualify the person— 
‘‘(i) from purchasing catastrophic risk 
protection under section 508(b) or partici-
pating in the noninsured assistance pro-
gram under section 519 for a period not to 
exceed 2 years; and 
‘‘(ii) from receiving any other benefit 
under this title for a period not to exceed 10 
years.’’. 
(e) ACTUARIAL SOUNDNESS.—Subsection (o) of such 
section (as redesignated by subsection (a)(1)) is amended— 
(1) in paragraph (1), by striking ‘‘beginning 
farmers from obtaining adequate Federal crop insur-
ance, as determined by the Corporation’’ and insert-
ing ‘‘beginning farmers, as determined by the Sec-
retary, from obtaining Federal crop insurance’’; 
(2) in paragraph (3), by striking ‘‘and’’ at the 
end of the paragraph; 
(3) by redesignating paragraph (4) as para-
graph (5); and 
(4) by inserting after paragraph (3) the fol-
lowing new paragraph: 
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‘‘(4) establishing a database that contains social 
security numbers or employee identification numbers 
of insurance agents and adjusters and using the num-
bers to identify agents and adjusters who are high 
risk for actuarial purposes, and for other purposes 
permitted by law; and’’. 
(f) REGULATORY
AND PAPERWORK REDUCTION.— 
Such section is further amended by adding at the end the 
following new subsection: 
‘‘(p) REGULATORY AND PAPERWORK REDUCTION.— 
‘‘(1) CATASTROPHIC RISK PROTECTION.—In de-
veloping and carrying out the policies and procedures 
for catastrophic risk protection under section 508(b), 
the Corporation shall minimize, to the maximum ex-
tent practicable, the paperwork required and the com-
plexity and costs of procedures governing the applica-
tion for, and the processing and servicing of, cata-
strophic risk protection. 
‘‘(2) OTHER PLANS.—To the extent that the poli-
cies and procedures developed under paragraph (1) 
may be applied to other plans of insurance offered 
under this title without jeopardizing the actuarial 
soundness or integrity of the crop insurance program 
under this title, the Corporation shall apply the poli-
cies and procedures to the other plans of insurance 
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within a reasonable period of time (as determined by 
the Corporation) after the effective date of this para-
graph. 
‘‘(3) SOLICITATION OF COST INFORMATION AND 
COST-REDUCTION PROPOSALS.— 
‘‘(A) COST INFORMATION.—The Corporation 
shall solicit from private insurance providers 
and agents information regarding— 
‘‘(i) their average cost per policy of 
complying with requirements, regulations, 
procedures, and processes under this title; 
and 
‘‘(ii) the data upon which such costs 
are determined. 
‘‘(B) COST-REDUCTION
PROPOSALS.—The 
Corporation shall also solicit from private insur-
ance providers and agents proposals for modi-
fying or altering the requirements, regulations, 
procedures, and processes under this title to re-
duce their total average cost per policy. 
‘‘(C) REPORT.—By June 1, 1995, the Cor-
poration shall submit a report to Congress con-
taining the information received under subpara-
graph (A) and an evaluation of the cost-reduc-
tion proposals received under subparagraph (B). 
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‘‘(4) COST REDUCTION PLAN.— 
‘‘(A) PLAN REQUIRED.—Subject to the con-
dition that the Corporation maintain the integ-
rity of the crop insurance program under this 
title, the Corporation shall include in the report 
required under paragraph (3) a plan to reduce 
the average cost per policy incurred by private 
insurance providers and agents to comply with 
requirements, regulations, procedures, and proc-
esses under this title. To the extent practicable, 
the Corporation shall set a target percentage by 
which such costs should be reduced. 
‘‘(B) IMPLEMENTATION OF PLAN.—Not later 
than 60 days after submitting the report re-
quired under paragraph (3), and in accordance 
with the plan contained in the report, the Cor-
poration shall adopt such measures consistent 
with maintaining the integrity of the crop insur-
ance program under this title as the Corporation 
determines are appropriate— 
‘‘(i) to improve Corporation liaison 
with policyholders and private insurance 
providers; and 
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‘‘(ii) to reduce the average cost per pol-
icy to meet the target percentage set by the 
Corporation.’’. 
(g) IMPROVED PROGRAM COMPLIANCE.—Such section 
is further amended by inserting after subsection (p) (as 
added by subsection (f)) the following new subsection: 
‘‘(q) PROGRAM COMPLIANCE.— 
‘‘(1) TIMELINESS.—The Corporation shall work 
actively with private insurance providers to address 
program compliance and integrity issues as such 
issues develop. 
‘‘(2) NOTIFICATION
OF
COMPLIANCE
PROB-
LEMS.—The Corporation shall notify in writing any 
private insurance provider with whom the Corpora-
tion has an agreement under this title of any error, 
omission, or failure to follow Corporation regulations 
or procedures for which the private insurance pro-
vider may be responsible and which may result in a 
debt owed the Corporation. Such notice shall be given 
within 3 years of the end of the insurance period dur-
ing which the error, omission, or failure is alleged to 
have occurred, except that such time limit shall not 
apply with respect to errors, omissions, or procedural 
violations that are willful or intentional. The failure 
to timely provide the notice required under this sub-
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liaison with representatives of specialty crop producers and 
provide the Corporation with the producers’ knowledge, ex-
pertise, and familiarity with risk management and produc-
tion issues pertaining to specialty crops. The Specialty 
Crops Coordinator shall also use information collected from 
Corporation field office directors in States in which spe-
cialty crops have a significant economic effect and from 
other sources, including the extension service and colleges 
and universities.’’. 
SEC. 5. GENERAL AUTHORITY TO OFFER CROP INSURANCE. 
(a) GENERAL AUTHORITY TO OFFER INSURANCE.— 
Subsection (a) of section 508 of the Federal Crop Insurance 
Act (7 U.S.C. 1508) is amended to read as follows: 
‘‘(a) AUTHORITY TO OFFER INSURANCE.— 
‘‘(1) GENERAL
AUTHORITY
AND
LOSSES
COV-
ERED.—If sufficient actuarial data are available, as 
determined by the Board, the Corporation may insure 
(or provide reinsurance for insurers of) producers of 
agricultural commodities grown in the United States 
under any plan or plans of insurance determined by 
the Board to be adapted to the agricultural com-
modity involved. To qualify for coverage under these 
plans of insurance, the losses of the insured com-
modity shall be due to drought, flood, or other natural 
disaster, as determined by the Secretary. 
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‘‘(2) PERIOD OF COVERAGE.—Except in the case 
of tobacco, insurance shall not extend beyond the pe-
riod the insured commodity is in the field. For the 
purpose of the foregoing sentence, in the case of 
aquacultural species, the term ‘field’ means the envi-
ronment in which the commodity is produced. 
‘‘(3) EXCLUSIONS.—Insurance provided under 
this section shall not cover losses— 
‘‘(A) due to the neglect or malfeasance of the 
producer; 
‘‘(B) due to the failure of the producer to re-
seed to the same crop in those areas and under 
such circumstances where it is customary to re-
seed; or 
‘‘(C) due to the failure of the producer to 
follow good farming practices, as determined by 
the Corporation. 
‘‘(4) EXPANSION TO OTHER AREAS OR SINGLE 
PRODUCERS.— 
‘‘(A) AREA
EXPANSION.—The Corporation 
may offer plans of insurance or reinsurance for 
production of agricultural commodities in the 
Commonwealth of Puerto Rico, the Virgin Is-
lands of the United States, Guam, American 
Samoa, the Commonwealth of the Northern Mar-
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iana Islands, and the Trust Territory of the Pa-
cific Islands in the same manner as provided in 
this section for production of agricultural com-
modities in the United States. 
‘‘(B) PRODUCER EXPANSION.—In areas in 
the United States or specified in subparagraph 
(A) where crop insurance is not available for a 
particular agricultural commodity, the Corpora-
tion may offer to enter into a written agreement 
with an individual producer operating in that 
area for insurance coverage under this title if the 
producer has actuarially sound data relating to 
the producer’s production of that commodity and 
such data is acceptable to the Corporation. 
‘‘(5) DISSEMINATION
OF
CROP
INSURANCE
IN-
FORMATION.—The Corporation shall make available 
to producers through local offices of the Department 
of Agriculture— 
‘‘(A) current and complete information on 
all aspects of Federal crop insurance; and 
‘‘(B) a listing of insurance agents and com-
panies offering to sell crop insurance in their 
area. 
‘‘(6) 
ADDITION
OF
NEW
AND
SPECIALTY 
CROPS.— 
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‘‘(A) DATA COLLECTION.—Not later than 6 
months after the date of the enactment of this 
paragraph, the Secretary shall issue guidelines 
for publication in the Federal Register for data 
collection to assist the Corporation in formu-
lating crop insurance policies for new and spe-
cialty crops. 
‘‘(B) ADDITION OF NEW CROPS.—Not later 
than 1 year after the date of the enactment of 
this paragraph, and annually thereafter, the 
Corporation shall report to Congress on the 
progress and expected timetable for expanding 
crop insurance coverage under this title to new 
and specialty crops. 
‘‘(C) ADDITION OF DIRECT SALE PERISH-
ABLE CROPS.—Not later than 1 year after the 
date of the enactment of this paragraph, the Cor-
poration shall report to Congress on the feasi-
bility of offering a crop insurance program de-
signed to meet the needs of specialized producers 
of vegetables and other perishable crops who 
market through direct marketing channels.’’. 
(b) REPORT ON IMPROVING DISSEMINATION OF CROP 
INSURANCE INFORMATION.—Not later than 6 months after 
the date of the enactment of this Act, the Federal Crop In-
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surance Corporation shall submit a report to Congress con-
taining a plan to implement a sound program for producer 
education regarding the crop insurance program and for 
the dissemination of crop insurance information to pro-
ducers, as required by section 508(a)(5) of the Federal Crop 
Insurance Act. Subsequent reports on the progress of the 
implementation of the program shall be submitted to Con-
gress in 1996 and 1997. 
SEC. 6. CATASTROPHIC RISK PROTECTION, BUY-UP COV-
ERAGE, PREMIUMS, AND YIELD DETERMINA-
TIONS. 
(a) IN GENERAL.—Section 508 of the Federal Crop In-
surance Act (7 U.S.C. 1508) is amended— 
(1) by striking subsections (c), (e), (f), (g), (h), 
(i), (l), (m), and (n); 
(2) by redesignating subsections (b) and (d) as 
subsections (h) and (i), respectively; and 
(3) by inserting after subsection (a) the following 
new subsections: 
‘‘(b) CATASTROPHIC RISK PROTECTION.— 
‘‘(1) CATASTROPHIC
RISK
PROTECTION
RE-
QUIRED.—The Corporation shall offer to producers of 
agricultural commodities grown in the United States 
a catastrophic risk protection plan to indemnify a 
producer for crop losses due to loss of yield or pre-
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vented planting resulting from drought, flood, or other 
natural disaster, as determined by the Secretary, if 
the producer is unable to plant other crops for harvest 
on that acreage for that crop year. 
‘‘(2) AMOUNT OF COVERAGE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), under catastrophic risk protection, 
the Corporation shall offer producers— 
‘‘(i) coverage equal to 50 percent loss 
in yield (determined on an area or indi-
vidual yield basis as described in subsection 
(g)) indemnified at 60 percent of the ex-
pected market price of the commodity (as 
determined by the Corporation); or 
‘‘(ii) other coverage established by the 
Corporation that is comparable to the cov-
erage described in clause (i). 
‘‘(B) REDUCTION
IN
ACTUAL
PAYMENT.— 
The amount paid to a producer on a claim 
under catastrophic risk protection may reflect a 
reduction that is proportional to the out-of- 
pocket expenses that are not incurred by the pro-
ducer as a result of not planting, growing, or 
harvesting the crop for which the claim is made, 
as determined by the Corporation. 
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‘‘(3) YIELD AND LOSS BASIS.—Producers shall 
have the option of purchasing catastrophic risk pro-
tection based on either an individual yield and loss 
basis or on an area yield and loss basis, as described 
in subsection (g), when both options are offered by the 
Corporation. 
‘‘(4) SALE
OF
CATASTROPHIC
RISK
PROTEC-
TION.— 
‘‘(A) APPLICATION.—Except as provided in 
subparagraph (B), producers shall submit an ap-
plication at the local office of the Department of 
Agriculture or to a private insurance provider 
approved by the Corporation to participate in 
catastrophic risk protection. To the extent sales 
of catastrophic risk protection are made through 
local offices of the Department of Agriculture, the 
Secretary may require the local office to contract 
with private insurance providers to service the 
insurance contracts. 
‘‘(B) RESTRICTION OF SALES TO PRIVATE 
INSURANCE PROVIDERS.—If the Secretary deter-
mines that the number or capacity of private in-
surance providers in a county is sufficient to 
adequately provide catastrophic risk protection 
to producers in that county for a particular crop 
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year, the Secretary may discontinue the sale for 
that crop year of catastrophic risk protection at 
local offices of the Department of Agriculture 
serving that county. A determination of the Sec-
retary under this subparagraph to discontinue 
the sale of catastrophic risk protection at local 
offices of the Department of Agriculture, and the 
process by which the determination is made, 
shall not be subject to judicial review under the 
Administrative Procedure Act or any other pro-
vision of law. 
‘‘(C) CONSIDERATIONS.—In making a de-
termination under subparagraph (B) with re-
spect to discontinuing the sale of catastrophic 
risk protection at local offices of the Department 
of Agriculture, the Secretary shall consider 
equally the following factors: 
‘‘(i) Whether the use of Department 
personnel and offices to provide catastrophic 
risk protection is the most efficient and 
cost-effective use of Department resources. 
‘‘(ii) The availability and training of 
Department personnel to handle applica-
tions for catastrophic risk protection. 
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‘‘(iii) The needs of, and fairness to, 
local producers. 
‘‘(D) COMPARISON OF PRIVATE AND PUBLIC 
DELIVERY
SYSTEMS.—To evaluate the appro-
priateness of determinations under subparagraph 
(B), the Secretary shall require each local office 
of the Department of Agriculture at which pro-
ducers apply for catastrophic risk protection to 
annually provide to the Secretary information 
regarding the number of catastrophic risk protec-
tion policies sold, the training and personnel 
costs incurred to provide and service the policies, 
the average cost per policy to provide and service 
the policies directly, and (if applicable) the cost 
of contracting with private insurance providers 
to service the policies. For comparison purposes, 
the Secretary may also request comparable infor-
mation from private insurance providers selling 
catastrophic risk protection. 
‘‘(E) REPORT.—Not later than 18 months 
after the date of the enactment of the Federal 
Crop Insurance Reform Act of 1994 (and annu-
ally thereafter), the Secretary shall submit to 
Congress a report— 
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‘‘(i) listing the counties at which pro-
ducers were permitted to apply for cata-
strophic risk protection during the period 
covered by the report; and 
‘‘(ii) containing and evaluating the in-
formation collected under subparagraph (D) 
for that period. 
‘‘(5) ADMINISTRATIVE FEE.— 
‘‘(A) FEE REQUIRED.—Producers shall pay 
an administrative fee for catastrophic risk pro-
tection. The administrative fee for each producer 
shall be $50 per crop per county, but not to ex-
ceed $100 per producer per county. The adminis-
trative fee shall be paid by the producer at the 
time the producer applies for catastrophic risk 
protection. 
‘‘(B) WAIVER
OF
FEE.—The Corporation 
shall waive the administrative fee for limited re-
source farmers, as defined by the Corporation. 
‘‘(C) USE
OF
FEES.—Administrative fees 
collected by an office of the Department of Agri-
culture or by a private insurance provider shall 
be retained as payment for operating and ad-
ministrative expenses incurred for the delivery of 
catastrophic risk protection. 
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‘‘(6) COVERAGE OF ALL CROPS.—To be eligible 
for benefits under any commodity price support, pro-
duction adjustment, or conservation program admin-
istered by the Department of Agriculture, or for the 
farmer loan programs of the Farmers Home Adminis-
tration or any successor of that agency, a producer 
must obtain at least catastrophic risk protection for 
each crop of economic significance produced on each 
farm in any county in which the producer has an in-
terest, if insurance is available in the county for those 
crops. For purposes of this paragraph, the term ‘crop 
of economic significance’ means a crop that has con-
tributed, or is expected to contribute, 10 percent or 
more of the total expected value of all crops grown by 
the producer. 
‘‘(7) COVERAGE UNDER ONE POLICY.—If a pro-
ducer applies for catastrophic risk protection for a 
crop produced by the producer in a county, the pro-
ducer shall be required to secure such protection 
under a single policy. 
‘‘(8) AUTHORITY TO LIMIT CATASTROPHIC RISK 
PROTECTION.—The Board may limit the availability 
of catastrophic risk protection in any county or area, 
or on any farm, on the basis of the insurance risk in-
volved. 
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‘‘(9) 
TRANSITIONAL
COVERAGE
FOR
1995 
CROPS.—Effective only for the 1995 crops and for 
which the sales period for crop insurance expires be-
fore the date of the enactment of the Federal Crop In-
surance Reform Act of 1994, the Corporation shall 
allow producers of such crops until at least the end 
of the 6-month period beginning on such date to ob-
tain catastrophic risk protection for such crops. Upon 
the enactment of such Act, producers who made time-
ly purchases of a crop insurance policy before the date 
of the enactment of such Act, under the provisions 
then in effect, shall be eligible for the same benefits to 
which a producer would be entitled under comparable 
buy-up coverage under subsection (c). 
‘‘(c) COVERAGE
LEVELS
GREATER
THAN
CATA-
STROPHIC RISK PROTECTION.— 
‘‘(1) BUY-UP COVERAGE GENERALLY.—The Cor-
poration shall offer to producers of agricultural com-
modities grown in the United States plans of crop in-
surance providing levels of coverage greater than that 
available under catastrophic risk protection under 
subsection (b). Plans of insurance under this sub-
section shall be known as ‘buy-up coverage’. Producers 
shall apply to private insurance providers approved 
by the Corporation for purchase of buy-up coverage if 
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such coverage is available from private insurance pro-
viders. If buy-up coverage is unavailable privately, 
the Corporation may offer buy-up coverage plans of 
insurance directly to producers. If a producer applies 
for catastrophic risk protection at an office of the De-
partment of Agriculture but then elects to purchase 
buy-up coverage under this subsection, the insurance 
file for that producer shall be transferred to the ap-
proved private insurance provider servicing the buy- 
up coverage policy. 
‘‘(2) ADMINISTRATIVE FEE.— 
‘‘(A) FEE REQUIRED.—If a producer elects 
to purchase buy-up coverage for a crop at a level 
less than 65 percent of the recorded or appraised 
average yield indemnified at 100 percent of the 
expected market price, or an equivalent coverage, 
the producer shall pay an administrative fee for 
such buy-up coverage. Subsection (b)(5) shall 
apply in determining the amount and use of the 
administrative fee or in determining whether to 
waive the administrative fee. 
‘‘(B) EXCEPTION.—If a producer elects to 
purchase buy-up coverage for a crop equal to 65 
percent or more of the recorded or appraised av-
erage yield indemnified at 100 percent of the ex-
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pected market price, or an equivalent coverage, 
the producer shall not be subject to the adminis-
trative fee required by this paragraph or sub-
section (b)(5). If the producer has already paid 
the administrative fee for a lower level of cov-
erage for that crop, the administrative fee shall 
be refunded to the producer unless the refund 
would reduce to less than $100 the total amount 
of the administrative fee paid by the producer 
for more than 2 crops in the same county for 
which a lower level of coverage is obtained. 
‘‘(3) YIELD AND LOSS BASIS.—Producers shall 
have the option of purchasing buy-up coverage based 
on either an individual yield and loss basis or on an 
area yield and loss basis, as described in subsection 
(g), when both options are offered by the Corporation. 
‘‘(4) YIELD ELECTIONS.—Yield coverage shall be 
made available to the producer on the basis of any 
yield election that equals or is less than 85 percent of 
the individual yield or 95 percent of the area yield, 
as determined by the Corporation. 
‘‘(5) PRICE LEVELS.— 
‘‘(A) IN GENERAL.—The Corporation shall 
establish a price level for each commodity on 
which buy-up coverage is offered that— 
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‘‘(i) shall not be less than the expected 
market price for the commodity, as deter-
mined by the Corporation; or 
‘‘(ii) at the discretion of the Corpora-
tion, may be based on the actual market 
price at the time of harvest, as determined 
by the Corporation. 
‘‘(B) SPECIAL
RULE
FOR
MALTING
BAR-
LEY.—For malting barley covered by a contract 
between a producer and a processor, the Cor-
poration may offer a plan of insurance that al-
lows the producer to select the contract price as 
the price election if— 
‘‘(i) the contract is definite as to the 
quantity and the price; 
‘‘(ii) the producer submits a copy of 
the contract with the application for insur-
ance prior to the sales closing date for the 
crop; 
‘‘(iii) coverage does not exceed the 
quantity contained in the contract; 
‘‘(iv) the contracted quantity does not 
exceed the production guarantee; 
‘‘(v) the contract is usual and cus-
tomary in form and content for the area; 
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‘‘(vi) the processor is completely inde-
pendent from the producer; and 
‘‘(vii) the processor does not have an 
insurable interest in the crop. 
‘‘(6) PRICE ELECTIONS.—Subject to paragraph 
(10), insurance coverage shall be made available to 
the producer on the basis of any price election that 
equals or is less than that established by the Board. 
‘‘(7) LEVEL OF COVERAGE.—Not later than the 
beginning of the 1996 crop year, the level of coverage 
shall be quoted in terms of dollars per acre. 
‘‘(8) REDUCTION
IN
ACTUAL
PAYMENT.—The 
amount paid to a producer on a claim under buy-up 
coverage may reflect a reduction that is proportional 
to the out-of-pocket expenses that are not incurred by 
the producer as a result of not planting, growing, or 
harvesting the crop for which the claim is made, as 
determined by the Corporation. 
‘‘(9) FIRE AND HAIL COVERAGE.—For levels of 
buy-up coverage equal to 65 percent or more of the re-
corded or appraised average yield indemnified at 100 
percent of the expected market price, or an equivalent 
coverage, the producer may elect to delete from the 
buy-up coverage any coverage against damage caused 
by fire and hail if the producer obtains an equivalent 
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or greater dollar amount of coverage for damage 
caused by fire and hail from a private insurance pro-
vider. Upon written notice of such election to the com-
pany issuing the policy providing buy-up coverage 
and submission of evidence of substitute coverage on 
the commodity insured, the producer’s premium shall 
be reduced by an amount determined by the Corpora-
tion to be actuarially appropriate, taking into ac-
count the actuarial value of the remaining coverage 
provided by the Corporation. In no event shall the 
producer be given credit for an amount of premium 
determined to be greater than the actuarial value of 
the protection against losses caused by fire and hail 
that is included in the buy-up coverage for the crop. 
‘‘(10) LIMITATIONS ON BUY-UP COVERAGE.—The 
Board may limit the availability of buy-up coverage 
under this subsection in any county or area, or on 
any farm, on the basis of the insurance risk involved. 
The Board shall not offer buy-up coverage equal to 
less than 50 percent of the recorded or appraised aver-
age yield indemnified at 100 percent of the expected 
market price, or an equivalent coverage. 
‘‘(d) PREMIUMS.— 
‘‘(1) PREMIUMS
REQUIRED.—The Corporation 
shall fix adequate premiums for all its plans of insur-
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the Corporation for authority to reduce the premium 
before making such a reduction, and the reduction 
shall be subject to the rules, limitations, and proce-
dures established by the Corporation. 
‘‘(e) PAYMENT OF PORTION OF PREMIUM BY CORPORA-
TION.— 
‘‘(1) IN GENERAL.—For the purpose of encour-
aging the broadest possible participation of producers 
in the catastrophic risk protection provided under 
subsection (b) and the buy-up coverage provided 
under subsection (c), the Corporation shall pay a part 
of the premium in the amounts provided in this sub-
section. 
‘‘(2) AMOUNT OF PAYMENT.—The amount of the 
premium to be paid by the Corporation shall be as 
follows: 
‘‘(A) In the case of catastrophic risk protec-
tion, the amount shall be equivalent to the pre-
mium established for catastrophic risk protection 
under subsection (d)(2)(A). 
‘‘(B) In the case of coverage below 65 per-
cent of the recorded or appraised average yield 
indemnified at 100 percent of the expected mar-
ket price, or an equivalent coverage, but greater 
than 50 percent of the recorded or appraised av-
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erage yield indemnified at 100 percent of the ex-
pected market price, or an equivalent coverage, 
the amount shall be equivalent to the amount of 
premium established for catastrophic risk protec-
tion coverage and the amount of operating and 
administrative expenses established under sub-
section (d)(2)(B). 
‘‘(C) In the case of coverage equal to or 
greater than 65 percent of the recorded or ap-
praised average yield indemnified at 100 percent 
of the expected market price, or an equivalent 
coverage, on an individual or area basis, the 
amount shall be equivalent to an amount equal 
to the premium established for 50 percent loss in 
yield indemnified at 75 percent of the expected 
market price and the amount of operating and 
administrative expenses established under sub-
section (d)(2)(C). 
‘‘(3) STATE SUBSIDY AUTHORIZED.—The Board 
may enter into agreements with any State or agency 
of a State under which the State or agency may pay 
to the approved insurance provider an additional pre-
mium subsidy to further reduce the portion of the pre-
mium paid by producers in the State. 
‘‘(f) ELIGIBILITY REQUIREMENTS.— 
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‘‘(1) PERSONS ELIGIBLE.—Except as otherwise 
provided in this title, no producer may be denied in-
surance under this section if the producer meets the 
definition of person, as defined by the Secretary. In 
the case of plans of insurance under this title other 
than catastrophic risk protection, the definition of 
person shall include a producer who is over 18 years 
of age or older and has a bona fide insurable interest 
in a crop as an owner, owner-operator, landlord, ten-
ant, or sharecropper. 
‘‘(2) SALES CLOSING DATE.—A producer who de-
sires to obtain catastrophic risk protection under sub-
section (b) or buy-up coverage under subsection (c) for 
a crop shall submit an application by the sales clos-
ing date for the crop. The Corporation shall establish 
sales closing dates to maximize convenience to pro-
ducers in obtaining benefits under commodity price 
support and production adjustment programs of the 
Department whenever feasible; except that, in estab-
lishing such dates, the Corporation shall ensure that 
the goal of actuarial soundness for the crop insurance 
program under this title is met. 
‘‘(3) RECORDS AND REPORTING.—To obtain cat-
astrophic risk protection under subsection (b) or buy- 
up coverage under subsection (c), a producer shall— 
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‘‘(A) provide, to the extent required by the 
Corporation, records acceptable to the Corpora-
tion of historical acreage and production of the 
crops for which the insurance is sought or accept 
a yield determined by the Corporation; and 
‘‘(B) report acreage planted and prevented 
from planting by the designated acreage report-
ing date for that crop and location as established 
by the Corporation. 
‘‘(4) LIMITATION ON MULTIPLE BENEFITS FOR 
SAME LOSS.—If a producer who is eligible to receive 
benefits under catastrophic risk protection under sub-
section (b) or noninsured crop disaster assistance 
under section 519 is also eligible to receive assistance 
for the same loss under any other program adminis-
tered by the Secretary, the producer shall be required 
to elect whether to receive benefits under this title or 
under such other program, but not both. A producer 
who purchases buy-up coverage under subsection (c) 
may also receive assistance for the same loss under 
other programs administered by the Secretary, except 
that the amount received for the loss under the buy- 
up coverage together with the amount received under 
such other programs may not exceed the amount of 
the producer’s actual loss. 
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‘‘(g) YIELD COVERAGE DETERMINATIONS.— 
‘‘(1) IN GENERAL.—The Corporation shall imple-
ment 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 buy-up cov-
erage under subsection (c). 
‘‘(2) INDIVIDUAL YIELD BASIS.— 
‘‘(A) ACTUAL PRODUCTION HISTORY.—The 
Corporation shall determine yield coverage using 
the producer’s actual production history over a 
period of not less than the 4 previous consecutive 
crop years and not more than 10 consecutive 
crop years. Subject to subparagraph (B), the 
yield for insurance purposes for the year for 
which insurance is sought shall be equal to the 
average of the producer’s actual production his-
tory during the period considered. 
‘‘(B) ASSIGNMENT
OF
YIELD.—Except as 
provided in subparagraphs (C) and (D), if a 
producer does not submit adequate documenta-
tion of production history to determine crop 
yield under subparagraph (A), the Corporation 
shall assign to the producer a yield equal to not 
less than 65 percent of the transitional yield of 
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the producer (adjusted to reflect actual produc-
tion reflected in the records acceptable to the 
Corporation for continuous years), as specified 
in regulations issued by the Corporation based 
on production history requirements. 
‘‘(C) PILOT PROGRAM OF ASSIGNED YIELDS 
FOR NEW PRODUCERS.— 
‘‘(i) PROGRAM
REQUIRED.—For each 
of the 1995 and 1996 crop years, the Cor-
poration shall carry out a pilot program to 
assign to eligible new producers higher as-
signed yields than would otherwise be as-
signed to such producers under subpara-
graph (B). The Corporation shall include in 
the pilot program 30 counties that are de-
termined by the Corporation to be adequate 
to provide a comprehensive evaluation of the 
feasibility, effectiveness, and demand among 
new producers for increased assigned yields. 
‘‘(ii) INCREASED ASSIGNED YIELDS.— 
In the case of an eligible new producer par-
ticipating in the pilot program, the Cor-
poration shall assign to the new producer a 
yield equal to not less than 110 percent of 
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the transitional yield otherwise established 
by the Corporation. 
‘‘(iii) ELIGIBLE NEW PRODUCER.—The 
Secretary shall establish a definition of new 
producer for purposes of determining eligi-
bility to participate in the pilot program. 
‘‘(D) ALTERNATIVE ASSIGNED YIELDS FOR 
PRODUCERS OF FEED OR FORAGE.— 
‘‘(i) FEED OR FORAGE YIELDS.—For 
the first crop year for which an eligible pro-
ducer described in clause (ii) obtains cata-
strophic risk protection under subsection (b) 
or buy-up coverage under subsection (c) for 
a feed or forage crop, the Corporation shall 
assign to the producer a yield equal to not 
less than 80 percent of the transitional yield 
established by the Corporation (adjusted to 
reflect the actual production history of the 
producer) if the producer does not provide 
satisfactory evidence of the yield under sub-
paragraph (A). For not more than three ad-
ditional years, the Corporation shall pro-
vide the producer with a yield based on the 
greater of— 
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