ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS.

SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS. (a) Assigned Yields.—Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended— (1) by striking “assigned a yield” and inserting “assigned—“(i) a yield”; (2) by striking the period at the end and inserting “; or”; and (3) by adding at the end the following: “(ii) a yield determined by the Corporation, in the case of— “(I) a producer that has not had a share of the production of the insured crop for more than two crop years, as determined by the Secretary; “(II) a producer that produces an agricultural commodity on land that has not been farmed by the producer; or “(III) a producer that rotates a crop produced on a farm to a crop that has not been produced on the farm.”. (b) Actual Production History Adjustments.—Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at the end the following: “(4) Adjustment in actual production history to establish insurable yields.— “(A) Application.—This paragraph shall apply whenever the Corporation uses the actual production records of the producer to establish the producer’s actual production history for an agricultural commodity for any of the 2001 and subsequent crop years. “(B) Election to use percentage of transitional yield.—If, for one or more of the crop years used to establish the producer’s actual production history of an agricultural commodity, the producer’s recorded or appraised yield of the commodity was less than 60 percent of the applicable transitional yield, as determined by the Corporation, the Corporation shall, at the election of the producer— “(i) exclude any of such recorded or appraised yield; and 114 STAT. 367 “(ii) replace each excluded yield with a yield equal to 60 percent of the applicable transitional yield. “(C) Premium adjustment.—In the case of a producer that makes an election under subparagraph (B), the Corporation shall adjust the premium to reflect the risk associated with the adjustment made in the actual production history of the producer. “(5) Adjustment to reflect increased yields from successful pest control efforts.— “(A) Situations justifying adjustment.—The Corporation shall develop a methodology for adjusting the actual production history of a producer when each of the following apply: “(i) The producer’s farm is located in an area where systematic, area-wide efforts have been undertaken using certain operations or measures, or the producer’s farm is a location at which certain operations or measures have been undertaken, to detect, eradicate, suppress, or control, or at least to prevent or retard the spread of, a plant disease or plant pest, including a plant pest (as defined in section 102 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). “(ii) The presence of the plant disease or plant pest has been found to adversely affect the yield of the agricultural commodity for which the producer is applying for insurance. “(iii) The efforts described in clause (i) have been effective. “(B) Adjustment amount.—The amount by which the Corporation adjusts the actual production history of a producer of an agricultural commodity shall reflect the degree to which the success of the systematic, area-wide efforts described in subparagraph (A), on average, increases the yield of the commodity on the producer’s farm, as determined by the Corporation.”.