What is the basis for determining premium rating under the Common Crop Insurance Policy (COMBO)?

The basis for determining premium rating under the Common Crop Insurance Policy (COMBO) relies heavily on continuous individual yield. This means that the insurance premium is calculated based on the consistent yield history of the individual producer. By utilizing a farmer's actual yield records over a period of time, insurance providers can assess risk more accurately and set premiums that reflect that specific risk.

This approach helps in tailoring insurance products to meet the unique circumstances of each producer, recognizing that individual yield history can provide a more precise reflection of a farmer's specific production capabilities and risks associated with their operations. This is particularly useful because different farms can experience vastly different productivity levels due to factors like soil type, farming practices, and climate conditions.

Other methods such as historical market prices, area average yields, and national yield averages may also play roles in the overall context of crop insurance but are not the primary basis for premium rating under COMBO. Instead, these might be more relevant in assessing broader market trends or regional risk factors rather than the individual farmer's specific yield history.