[Title 7 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1997 Edition]
[From the U.S. Government Publishing Office]


          7



          Agriculture



[[Page i]]

          PARTS 400 TO 699

          Revised as of January 1, 1997
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF JANUARY 1, 1997
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1997



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents


                                                                    Page
  Explanation.................................................       v
  Title 7:
      Subtitle B--Regulations of the Department of 
                                                                                Agriculture--Continued:


          Chapter IV--Federal Crop Insurance Corporation, 
          Department of Agriculture                                  5
          Chapter V--Agricultural Research Service, Department 
          of Agriculture                                           433
          Chapter VI--Natural Resources Conservation Service, 
          Department of Agriculture                                447
  Finding Aids:
    Table of CFR Titles and Chapters..........................     571
    Alphabetical List of Agencies Appearing in the CFR........     587
    List of CFR Sections Affected.............................     597

[[Page iv]]



      



                                                                                                                
                                  ----------------------------------------------------------                    

   Cite this Code:  CFR                                                         
                                                                                                                
   To cite the regulations in this volume use title, part                       
   and section number. Thus, 7 CFR 400.1 refers to title                       
   7, part 400, section 1.                                                     
                                  ----------------------------------------------------------                    
                                                                                                                


[[Page v]]

                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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issues of the Federal Register. These two publications must be used 
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    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 1997), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
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Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
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dates and effective dates are usually not the same and care must be 
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instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
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that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
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                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

January 1, 1997.



[[Page vii]]



                               THIS TITLE

    Title 7--Agriculture is composed of fifteen volumes. The parts in 
these volumes are arranged in the following order: parts 0-26, 27-52, 
53-209, 210-299, 300-399, 400-699, 700-899, 900-999, 1000-1199, 1200-
1499, 1500-1899, 1900-1939, 1940-1949, 1950-1999, and part 2000 to end. 
The contents of these volumes represent all current regulations codified 
under this title of the CFR as of January 1, 1997.

    The Food and Consumer Service current regulations in the volume 
containing parts 210-299, include the Child Nutrition Programs and the 
Food Stamp Program. The regulations of the Federal Crop Insurance 
Corporation are found in the volume containing parts 400-699.

    All marketing agreements and orders for fruits, vegetables and nuts 
appear in the one volume containing parts 900-999. All marketing 
agreements and orders for milk appear in the volume containing parts 
1000-1199. Part 900--General Regulations is carried as a note in the 
volume containing parts 1000-1199, as a convenience to the user.

    Redesignation tables appear in the Finding Aids section of the 
volumes containing parts 210-299 and parts 1500-1899.

    For this volume, Gregory R. Walton was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page viii]]



 
[[Page 1]]



                          TITLE 7--AGRICULTURE




                  (This book contains parts 400 to 699)

  --------------------------------------------------------------------

SUBTITLE B--Regulations of the Department of Agriculture--(Continued):

                                                                    Part
chapter iv--Federal Crop Insurance Corporation, Department 
  of Agriculture............................................         400
chapter v--Agricultural Research Service, Department of 
  Agriculture...............................................         500
chapter vi--Natural Resources Conservation Service, 
  Department of Agriculture.................................         600

[[Page 3]]



  Subtitle B--Regulations of the Department of Agriculture (Continued)

[[Page 5]]





CHAPTER IV--FEDERAL CROP INSURANCE CORPORATION, DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page

400             General administrative regulations..........           7
401             General crop insurance regulations--
                    regulations for the 1988 and subsequent 
                    contract years..........................          60
402             Catastrophic Risk Protection Endorsement; 
                    Regulations for the 1997 and subsequent 
                    crop years..............................         165
403             Peach (fresh) crop insurance regulations....         170
404       [Reserved]
405             Apple crop insurance regulations............         177
406             Nursery crop insurance regulations..........         185
407-408   [Reserved]
409             Arizona--California citrus insurance 
                    regulations.............................         192
410-411   [Reserved]
412             Public information..........................         199
413       [Reserved]
414             Forage seeding crop insurance...............         200
415             Forage production crop insurance regulations         206
416             Pea crop insurance regulations..............         213
417-421   [Reserved]
422             Potato crop insurance regulations...........         220
423-424   [Reserved]
425             Peanut crop insurance regulations...........         232
426-429   [Reserved]
430             Sugar beet crop insurance regulations.......         239
431-432   [Reserved]
433             Dry bean crop insurance regulations.........         247
434       [Reserved]
435             Tobacco (quota plan) crop insurance 
                    regulations.............................         254
436       [Reserved]
437             Sweet corn crop insurance regulations.......         261
438-440   [Reserved]
441             Table grape crop insurance regulations......         268
442       [Reserved]
443             Hybrid seed crop insurance regulations......         275

[[Page 6]]

444       [Reserved]
445             Pepper crop insurance regulations...........         285
446             Walnut crop insurance regulations...........         291
447             Popcorn crop insurance regulations..........         297
448-449   [Reserved]
450             Prune crop insurance regulations............         304
451             Canning and processing peach crop insurance 
                    regulations.............................         310
452-453   [Reserved]
454             Fresh market tomato (guaranteed production 
                    plan) crop insurance regulations........         316
455             Macadamia nut crop insurance regulations....         323
456             Macadamia tree crop insurance regulations...         330
457             Common crop insurance regulations; 
                    regulations for the 1994 and subsequent 
                    contract years..........................         335
458             Special California crop insurance 
                    regulations.............................         425

[[Page 7]]



PART 400--GENERAL ADMINISTRATIVE REGULATIONS--Table of Contents




Subpart A--Late Planting Agreement Option; Regulations for the 1987 and 
                          Succeeding Crop Years

Sec.
400.1  Availability of the late planting option.
400.2  Definitions.
400.3  Responsibilities of the insured.
400.4  Applicability to crops insured.
400.5  The Late Planting Agreement.

 Subpart B--Individual Yield Coverage Plan Regulations for the 1985 and 
                          Succeeding Crop Years

400.15  Availability of Individual Yield Coverage Plan.
400.16  Definitions.
400.17  Yield certification and acceptability.
400.18  Responsibilities.
400.19  Qualifications for Individual Yield Coverage Plan.
400.20  Modifications through individual certification of yield 
          (Individual Certified Yield Plan--ICYP).
400.21  OMB control numbers.

     Subpart C--General Administrative Regulations; Mutual Consent 
                              Cancellation

400.27  Applicability.
400.28  Mutual consent criteria.
400.29  OMB control numbers.
400.30--400.36  [Reserved]

Subpart D--Application for Crop Insurance; Regulations for the 1993 and 
                          Succeeding Crop Years

400.37  Applicability.
400.38  The crop insurance application.

                          Subpart E--[Reserved]

Subpart F--Food Security Act of 1985, Implementation; Denial of Benefits

400.45  Applicability.
400.46  Definitions.
400.47  Denial of crop insurance.
400.48  Protection of interests of tenants, landlords or producers.
400.49-400.50  [Reserved]

                  Subpart G--Actual Production History

400.51  Availability of actual production history program.
400.52  Definitions.
400.53  Yield certification and acceptability.
400.54  Submission and accuracy of production reports.
400.55  Qualifications for actual production history coverage program.
400.56  Administrative appeal exhaustion.
400.57  OMB control numbers.

   Subpart H--Information Collection Requirements Under the Paperwork 
                   Reduction Act; OMB Control Numbers

400.65  Purpose.
400.66  Display.

                          Subpart I--[Reserved]

                Subpart J--Appeal Procedure--Regulations

400.90  Applicability.

Subpart K--Debt Management--Regulations for the 1986 and Succeeding Crop 
                                  Years

400.115  Purpose.
400.116  Definitions.
400.117  Determination of delinquency.
400.118  Demand for payment.
400.119  Notice to debtor; credit reporting agency.
400.120  Subsequent disclosure and verification.
400.121  Information disclosure limitations.
400.122  Attempts to locate debtor.
400.123  Request for review of the indebtedness.
400.124  Disclosure to credit reporting agencies.
400.125  Notice to debtor, collection agency.
400.126  Referral of delinquent debts to contract collection agencies.
400.127  OMB control numbers.
400.128  Definitions.
400.129  Salary offset.
400.130  Notice requirements before offset.
400.131  Request for a hearing and result if an employee fails to meet 
          deadlines.
400.132  Hearings.
400.133  Written decision following a hearing.
400.134  Review of FCIC record related to the debt.
400.135  Written agreement to repay debt as an alternative to salary 
          offset.
400.136  Procedures for salary offset; when deductions may begin.
400.137  Procedures for salary offset; types of collection.
400.138  Procedures for salary offset; methods of collection.
400.139  Nonwaiver of rights.
400.140  Refunds.
400.141  Internal Revenue Service (IRS) Tax Refund Offset.
400.142  Past-due legally enforceable debt eligible for refund offset.

[[Page 8]]

 Subpart L--Reinsurance Agreement--Standards for Approval; Regulations 
              for the 1997 and Subsequent Reinsurance Years

400.161  Definitions.
400.162  Qualification ratios.
400.163  Applicability.
400.164  Availability of the Standard Reinsurance Agreement.
400.165  Eligibility for Standard Reinsurance Agreements.
400.166  Obligations of the Corporation.
400.167  Limitations on Corporation's obligations.
400.168  Obligations of participating insurance company.
400.169  Disputes.
400.170  General qualifications.
400.171  Qualifying when a state does not require that an Annual 
          Statutory Financial Statement be filed.
400.172  Qualifying with less than two of the required ratios or ten of 
          the analytical ratios meeting the specified requirements.
400.173  [Reserved]
400.174  Notification of deviation from financial standards.
400.175  Revocation and non-acceptance.
400.176  State action preemptions.
400.177  [Reserved]

  Subpart M--Agency Sales and Service Contract--Standards for Approval

400.201  Applicability of standards.
400.202  Definitions.
400.203  Financial statement and certification.
400.204  Notification of deviation from standards.
400.205  Denial or termination of contract and administrative 
          reassignment of business.
400.206  Financial qualifications for acceptability.
400.207  Representative licensing and certification.
400.208  Term of the contract.
400.209  Electronic transmission and receiving system.
400.210  OMB control numbers.

       Subpart N--Disaster Assistance Act of 1988; Procedures for 
                             Implementation

400.250  General statement.
400.251  Purpose and applicability.
400.252  Implementation and expense reimbursement.

 Subpart O--Non-Standard Underwriting Classification System Regulations 
                 for the 1991 and Succeeding Crop Years

400.301  Basic, purpose, and applicability.
400.302  Definitions.
400.303  Initial selection criteria.
400.304  Nonstandard Classification determinations.
400.305  Assignment of Nonstandard Classifications.
400.306  Spouses and minor children.
400.307  Discontinuation of participation.
400.308  Notice of Nonstandard Classification.
400.309  Requests for reconsideration.

           Subpart P--Preemption of State Laws and Regulations

400.351  Basis and applicability.
400.352  State and local laws and regulations preempted.

Subpart Q--General Administrative Regulations; Collection and Storage of 
   Social Security Account Numbers and Employer Identification Numbers

400.401  Basis and purpose and applicability.
400.402  Definitions.
400.403  Required system of records.
400.404  Policyholder responsibilities.
400.405  Company responsibilities.
400.406  Restricted access.
400.407  Safeguards and storage.
400.408  Unauthorized disclosure.
400.409  Penalties.
400.410  Obtaining personal records.
400.411  Record retention.
400.412  OMB control numbers.

                          Subpart R--Sanctions

400.451  General.
400.452  Definitions.
400.453  Exhaustion of administrative remedies.
400.454  Civil penalties.
400.455  Governmentwide debarment and suspension (procurement).
400.456  Governmentwide debarment and suspension (nonprocurement).
400.457  Program Fraud Civil Remedies Act.
400.458  Scheme or device.
400.459  Indebtedness.
400.460--400.499  [Reserved]
400.500  OMB control numbers.

                          Subpart S--[Reserved]

  Subpart T--Federal Crop Insurance Reform, Insurance Implementation; 
           Regulations for the 1997 and Subsequent Crop Years

400.650  Purpose.
400.651  Definitions.
400.652  Insurance availability.
400.653  Determining crops of economic significance.
400.654  Application and acreage report.

[[Page 9]]

400.655  Coverage provided.
400.656  Administrative fees and waivers.
400.657  Eligibility for other program benefits.
400.658  Coverage for acreage that is prevented from being planted.
400.659  Transitional yields for forage or feed crops, 1995-1997 crop 
          years.



Subpart A--Late Planting Agreement Option; Regulations for the 1987 and 
                          Succeeding Crop Years

    Authority: 7 U.S.C. 1506(l).

    Source: 51 FR 20246, June 4, 1986, unless otherwise noted.



Sec. 400.1  Availability of the late planting option.

    The Late Planting Option shall be offered under the provisions 
contained in 7 CFR part 402, et seq., within limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (7 U.S.C. 1501 et seq.), only on those crops identified in 
Sec. 400.4 of this subpart. All provisions of the applicable contract 
for the insured crop apply, except those provisions which are in 
conflict with this subpart.



Sec. 400.2  Definitions.

    For the purposes of the Late Planting Option:
    (a) Final planting date means the final planting date for the 
insured crop contained in the actuarial table on file in the service 
office.
    (b) Late Planting Agreement means that agreement executed by the 
final planting date, between the FCIC and the insured whereby the 
insured elects, and FCIC provides, insurance on acreage planted for up 
to 20 days after the applicable final planting date. The production 
guarantee applicable on the final planting date will be reduced on the 
acreage planted after the final planting date by 10 percent for each 5 
days that the acreage is planted after the final planting date.
    (c) Production guarantee means the guaranteed level of production 
under the provisions of the applicable contract for crop insurance 
(sometimes expressed in amounts of insurance).



Sec. 400.3  Responsibilities of the insured.

    The insured is solely responsible for the completion of the Late 
Planting Agreement and for the accuracy of the data provided on that 
Agreement. The provisions of this subsection shall not relieve the 
insured of any responsibilities under the provisions of the insurance 
contract.



Sec. 400.4  Applicability to crops insured.

    The provisions of this subpart shall be applicable to the provisions 
of FCIC policies issued under the following regulations for insuring 
crops:

7 CFR part 416  Pea
7 CFR part 422  Potatoes
7 CFR part 425  Peanuts
7 CFR part 430  Sugar Beets
7 CFR part 433  Dry Beans
7 CFR part 435  Tobacco (Quota Plan)
7 CFR part 437  Sweet Corn (Canning and Freezing)
7 CFR part 447  Popcorn

[58 FR 64873, Dec. 10, 1993, as amended at 60 FR 40055, Aug. 7, 1995]



Sec. 400.5  The Late Planting Agreement.

    The provisions of the Late Planting Agreement are as follows:

                     U.S. DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                         Late Planting Agreement

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
_______________________________________________________________________
Crop____________________________________________________________________

Notwithstanding the provisions of section 2 of the policy regarding the 
insurability of crop acreage initially planted after the final planting 
date on file in the service office, I elect to have insurance provided 
on acreage planted for 20 days after such date. Upon my making this 
election, the production guarantee or amount of insurance, whichever is 
applicable, will be reduced 10 percent for each five days or portion 
thereof that the acreage is planted after the final planting date. Each 
10 percent reduction will be applied to the production guarantee or 
amount of insurance applicable on the final planting date.
    The premium will be computed based on the guarantee or amount of 
insurance applicable on the final planting date; therefore, no reduction 
in premium will occur as a result of my election to exercise this 
option.

[[Page 10]]

    If planting continues under this Agreement after the acreage 
reporting date on file in the service office, the acreage reporting date 
will be extended to 5 days after the completion of planting the acreage 
to which insurance will attach under this Agreement.

Insured's Signature_____________________________________________________
Date____________________________________________________________________

Corporation Representative's
Signature and Code Number_______________________________________________
Date____________________________________________________________________

            Collection of Information and Data (Privacy Act)

    To the extent that the information requested herein relates to the 
information supplier's individual capacity as opposed to the supplier's 
entrepreneurial (business) capacity, the following statements are made 
in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 
552(a)). The authority for requesting information to be furnished on 
this form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 
et seq.) and the Federal Crop Insurance Corporation Regulations 
contained in 7 CFR chapter IV.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, determine and collect premiums, and pay indemnities. 
Furnishing the Tax Identification Number (Social Security Number) is 
voluntary and no adverse action will result from the failure to furnish 
that number. Furnishing the information required by this form, other 
than the Tax Identification (Social Security) Number, is also voluntary; 
however, failure to furnish the correct, complete information requested 
may result in rejection of this form, rejection of or substantial 
reduction in any claim for indemnity, ineligibility for insurance, and a 
unilateral determination of the amount of premium due. (See the face of 
this form for information on the consequences of furnishing false or 
incomplete information.)
    The information furnished on this form will be used by Federal 
agencies, FCIC employees, and contractors who require such information 
in the performance of their duties. The information may be furnished to: 
FCIC contract agencies, employees and loss adjusters; reinsured 
companies; other agencies within the United States Department of 
Agriculture; the Internal Revenue Service; the Department of Justice, or 
other Federal or State law enforcement agencies; credit reporting 
agencies and collection agencies; and in response to judicial orders in 
the course of litigation.

[51 FR 20246, June 4, 1986, as amended at 52 FR 24979, July 2, 1987]



 Subpart B--Individual Yield Coverage Plan Regulations for the 1985 and 
                          Succeeding Crop Years

    Authority: Sec. 508, Pub. L. 75-430, 52 Stat. 73, as amended (7 
U.S.C. 1508).

    Source: 50 FR 32001, Aug. 8, 1985, unless otherwise noted.



Sec. 400.15  Availability of Individual Yield Coverage Plan.

    Individual Yield Coverage Plan (IYCP) shall be offered under the 
provisions contained in the following regulations:

7 CFR part 418......................................Wheat Crop Insurance
7 CFR part 419.....................................Barley Crop Insurance
7 CFR part 423.......................................Flax Crop Insurance
7 CFR part 427........................................Oat Crop Insurance
7 CFR part 428..................................Sunflower Crop Insurance
7 CFR part 429........................................Rye Crop Insurance
7 CFR part 431....................................Soybean Crop Insurance
7 CFR part 433...................................Dry Bean Crop Insurance

Within limits prescribed by and in accordance with the provisions of the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.), only on 
those crops identified in this section and in those areas where the 
actuarial table provides that IYCP is available. (IYCP is available only 
on those crops and in those areas where the Corporation's Actual 
Production History Program has not been implemented. The Actual 
Production History form will be used for both programs). All provisions 
of the applicable standard insurance contract for the crop apply, except 
those provisions which are in conflict with this subpart. Cropland 
acreage, which is defined as ``new ground acreage'' by the actuarial 
table or by the policy, will not be eligible for IYCP. Crops covered 
under the provisions of the Combined Crop Insurance policy will not be 
eligible for IYCP.



Sec. 400.16  Definitions.

    In addition to the definitions contained in the crop insurance 
contract, the following definitions, for the purposes of Individual 
Yield Coverage Plan, are applicable:
    (a) Appraised Production means production that was unharvested but 
reflected yield potential for the crop at the time of the appraisal. 
Appraisals will be determined by ASCS or FCIC.

[[Page 11]]

    (b) Area Average Yield is the average yield determined by FCIC upon 
which the guarantee is based for the insured crop, area, type, and 
practice and is the average for the area over the base period. It is 
contained in the actuarial table.
    (c) Area Coverage Plan is the coverage and rate assigned by the FCIC 
Actuarial Division for an homogeneous group of areas and producers.
    (d) Average Yield is the average of the recorded and/or indexed 
yields for the 10-year base period, dropping the highest and lowest 
yield in the 10-year period, including a combination of a minimum of the 
three most recent year's recorded yields.
    (e) Base Period means the 10-year period immediately preceding the 
crop year for which the yield is to be established.
    (f) Established Farm Yield is the yield as shown on the Official 
Farm Record card (ASCS-156) on file in the county ASCS office.
    (g) FCIC Adjusted Yield is production information derived by the 
Statistical Reporting Service on a county, crop, and practice basis 
modified by FCIC for factors necessary to conform to sound actuarial 
practices.
    (h) Individual Yield Certification is the appraised result of the 
examination of the insured's records of planted acreage and production 
certified by the county Agricultural Stabilization and Conservation 
Service (ASCS) office.
    (i) Indexed Yield means yield established for a year in which 
recorded (actual) yields are not available. It is determined by 
multiplying the FCIC adjusted yield, for each crop year (for which 
records of acreage and production are not available), by the producer's 
yield index.
    (j) IYCP is the Individual Yield Coverage Plan.
    (k) ICYP is the Individual Certified Yield Plan within IYCP. (7 CFR 
400.20).
    (l) Recorded Yield is the yield that is based on the producer's 
records of planted acreage and production certified by ASCS.
    (m) Yield Index is the result obtained by dividing the total of the 
producer's recorded yields for the years FCIC adjusted yields are 
available by the total FCIC adjusted yields for those same years.



Sec. 400.17  Yield certification and acceptability.

    The insured shall request Form FCIC 19A (APH) (Actual Production 
History) and shall provide records of acreage and production to ASCS 
county office. The request and records must be submitted at least 15 
days prior to the acreage reporting date for the crop in the county. The 
ASCS county office will examine the insured's records and, if 
acceptable, record the actual yield obtained from the records, determine 
the relationship of such yields to the FCIC adjusted yield for the same 
years, and apply the yield index to the area average yield for those 
years for which the producer does not have acceptable records.



Sec. 400.18  Responsibilities.

    (a) The insured is solely responsible for the timely submission of 
Form FCIC 19A (APH) to the service office after its completion by the 
ASCS office.
    (b) The service office is responsible for the explanation of the 
Individual Yield Coverage Plan (IYCP) to the insured, and upon receipt 
of Form FCIC 19A (APH) is responsible for determining that the form is 
completed correctly.



Sec. 400.19  Qualifications for Individual Yield Coverage Plan.

    The Insured may elect to substitute the IYCP Yield for the Area 
Average Yield.
    (a) For the producer to qualify for IYCP for any crop year, the 
completed Form FCIC 19A (APH) must be received in the crop insurance 
service office not later than the acreage reporting date for the crop 
and the year.
    (b) For a crop to qualify for IYCP, a minimum of 3 years of records 
of planted acreage and production, under the control of either the 
landlord or tenant, must be provided to ASCS for all units and be 
certified by ASCS. Records for up to 10 continuous years shall be used 
where such records are available and the same farming practices are 
followed for that period of

[[Page 12]]

time. There can be no break in continuity from the most recent crop year 
through preceding crop years. A year in which no acreage was planted to 
the crop on the unit or in which a different practice was followed will 
not be considered a break in continuity.
    (c) Either the landlord's or tenant operator's records may qualify 
either party for the same IYCP guarantee. If a conflict exists between 
the records of the landlord and the tenant operator, the Corporation 
will determine which records will be used.
    (d) If an insured wishes to obtain an IYCP yield on land newly added 
to production for the insured, the insured must comply with the 
provisions of this paragraph. If the IYCP yield being requested is for 
an ASCS program crop and if the added land has an ASCS established yield 
for that crop of 90 percent or more of the ASCS established yield of the 
unit to which the land is to be added or of the nearest unit then: When 
land without satisfactory records is added to a unit satisfactory 
records, the IYCP average yield will be that of the unit to which the 
land was added; and when land without satisfactory records is added as a 
separate unit, the IYCP average yield will be that of the closest unit 
of the same crop and practice. When the ASCS established farm yields for 
the added land are less than 90 percent of the program yields for the 
existing units, the IYCP yields will be the area average yield.
    (e) When the yield being requested on land being added is for a crop 
for which the added land does not have an ASCS established farm yield, 
the ASCS established farm yield for the crop with the largest ASCS base 
acreage on the added land will be compared to the program yield for the 
crop on the existing units to determine if the 90-percent ratio is 
achieved. If the land is being added to a unit and there is no ASCS 
established farm yield on either the added land or the units or both to 
compare, the IYCP yield will be the area average yield. If the land is 
being added as a separate unit, and the nearest unit has no ASCS 
established farm yield to compare to the added unit, the next nearest 
unit will be used. If no comparable yields are available on any unit, 
the yield of the added unit will be the area average yield.
    (f) If a producer disposes of his entire operation and begins 
operation on completely different units, the new units will be compared 
to the old units in accordance with paragraphs (d) and (e) of this 
section, for adding new units.
    (g) When land is being added but less than 3 continuous years of 
acceptable records are available, the acceptable production and acreage 
records will be used for the years they are available and paragraphs (d) 
and (e) of this section will be used for the years when adequate records 
are not available.
    (h) When participation in IYCP is continuous, ASCS certification 
under this part for up to 10 years, dropping the highest and lowest 
yield in the 10-year period, will be used in calculating the IYCP 
average yield. When an insured has previously participated in IYCP, he 
must have at least the most recent three years records of production 
acceptable to ASCS. These records and all records previously certified 
by ASCS up to 10 years, will be used to ascertain the new yield.
    (i) The premium shall be contained in the actuarial table and will 
be the same as applicable under the Area Coverage Plan.



Sec. 400.20  Modifications through individual certification of yield (Individual Certified Yield Plan--IYCP).

    (a) In addition to the provisions contained in Secs. 400.15 through 
400.19 of this part, producers who customarily feed crop production to 
livestock or poultry, and who are unable to provide adequate records 
sufficient to become eligible for the IYCP Plan, will be considered for 
eligibility for the Individual Certified Yield Plan (ICYP) in certain 
counties as announced by the Manager, FCIC.
    (b) To qualify for this plan, producers must agree to the conditions 
contained herein and provide information to the county ASCS office 
including but not limited to, the following:
    (1) Satisfactory acreage and yield records for at least the most 
recent crop year.
    (2) Acreage and yield records for the prior crop years even though 
such records may be incomplete.

[[Page 13]]

    (3) Feeding records, fertilization and liming records, soil 
conservation methods used, land tillage practices, insecticide and 
herbicide records, planting pattern and population data, and equipment 
adequacy information as available.
    (4) Certification of acreage and yield data for the previous 2nd and 
3rd years when written records are unavailable.
    (5) Agreement to disregard to the extent required by FCIC any unit 
division guideline provisions of the crop insurance policy.
    (6) Records of acreage and yield for each future year that the 
insurance is in force. (Failure to provide such records in accordance 
with the provisions of Secs. 400.17 and 400.19 will result in insurance 
being based on the area coverage plan.)
    (7) Agreement to convert to the IYCP for determining yields as soon 
as 3 consecutive years acreage and yield records are available.
    (8) Producer certified yields will be reviewed by FCIC and may be 
adjusted by the Corporation prior to the final yield determination by 
ASCS.
    (9) The producer may request FCIC to assist in establishing 
satisfactory acreage and yield information through field appraisals of 
potential production, bin measurements, etc. FCIC will determine if any 
evidence offered by the producer is relevant to the determination of 
yield on the unit.
    (10) The producer must request the certified yield plan in 
accordance with the provisions of Secs. 400.17 and 400.19 from the 
county ASCS office.
    (11) The premium per acre shall be the production guarantee per acre 
under this plan times the applicable price election, times the 
applicable premium rate for the crop insured, times any applicable 
premium adjustment factor.



Sec. 400.21  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400 in title 
7 CFR.



     Subpart C--General Administrative Regulations; Mutual Consent 
                              Cancellation

    Authority: 7 U.S.C. 1501 et seq.

    Source: 57 FR 56438, Nov. 30, 1992, unless otherwise noted.



Sec. 400.27  Applicability.

    Notwithstanding any provisions of the crop insurance policy to the 
contrary, the mutual consent provision contained herein shall be 
applicable to all new crop insurance policies issued by the Federal Crop 
Insurance Corporation (7 CFR part 401 et seq.), or by a company 
reinsured by the Federal Crop Insurance Corporation, effective for the 
applicable crop year only if those policies meet the requirements of 
Sec. 400.28 of this subpart and if the crop insured is the same as the 
crop for which a disaster payment application (CCC 441) was filed for 
the previous crop year.

[58 FR 67304, Dec. 21, 1993]



Sec. 400.28  Mutual consent criteria.

    (a) An insured may request policy cancellation for the crop year for 
which the insured filed a CCC 441 for the applicable crop year if 
written documentation is provided, signed by an authorized Agricultural 
Stabilization and Conservation Service official, certifying the 
cancellation is based on one of the following conditions:
    (1) insurance was not a condition of eligibility for disaster 
payment, based on one or more of the statutory criteria; or
    (2) the producer withdrew his application for disaster payments with 
prejudice or it was rejected by Commodity Credit Corporation;
    (b) Cancellation requests must be received in writing no later than 
three weeks after the date:
    (1) the disaster payment check is issued; or
    (2) the producer is notified that an application for disaster 
payment has been rejected; or
    (3) the producer withdraws from the disaster payment program.
    (c) Carryover policies are not available for mutual consent 
cancellation. Crop insurance applications dated before the disaster 
cancellation date

[[Page 14]]

(available in the insureds' service office) are not eligible for mutual 
consent cancellations.

[57 FR 56438, Nov. 30, 1992, as amended at 58 FR 67304, Dec. 21, 1993]



Sec. 400.29  OMB control numbers.

    Office of Management and Budget control numbers (OMB) are contained 
in subpart H to part 400 in title 7 CFR.
Secs. 400.30--400.36  [Reserved]



Subpart D--Application for Crop Insurance; Regulations for the 1993 and 
                          Succeeding Crop Years

    Authority: Secs. 506, 507, Pub. L. 75-430, 52 Stat. 72, as amended 
(7 U.S.C. 1506, 1516).



Sec. 400.37  Applicability.

    The Crop Insurance application contained herein shall be applicable 
to all crop insurance regulations issued by the Corporation (7 CFR part 
400 et seq.), effective with the 1983 and succeeding crop years.

[48 FR 1023, Jan. 10, 1983]

[[Page 15]]



Sec. 400.38  The crop insurance application.

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                       Crop Insurance Application

                           Continuous Contract

_______________________________________________________________________
1. Name of Applicant

_______________________________________________________________________
2. Applicant's Authorized Representative

_______________________________________________________________________
3. Street or Mailing Address

_______________________________________________________________________
4. City and State

_______________________________________________________________________
5. ZIP Code

[  ] [  ] - [  ] [  ] [  ] - [  ] [  ] [  ] [  ] [  ]
6. State    County
[  ] [  ] [  ] [  ] [  ]
7. Contract Number

_______________________________________________________________________
8. County
_______________________________________________________________________
9. State

_______________________________________________________________________
[  ] [  ] [  ] [  ] [  ] [  ] [  ]
10. Identification Number
[  ] [  ] [  ] [  ] [  ]
11. SSN TAX

_______________________________________________________________________
12. Type of Entity

13. Is Applicant Over 18: Yes______ No______

_______________________________________________________________________
If No, Date of Birth

    A. The applicant subject to the provisions of the regulations of the 
Federal Crop Insurance Corporation (herein called ``Corporation''), 
hereby applies to the Corporation for insurance on the applicant's share 
in the crop(s) shown below planted or grown, whichever is applicable, on 
insurable acreage as shown on the county actuarial table for the above-
stated county. The applicant elects from the actuarial table the 
coverage level and, where applicable, a price election, amount of 
insurance or plan of insurance. The premium rate and applicable 
production guarantee or amount of insurance per acre shall be those 
shown on the applicable county actuarial table filed in the service 
office for each crop year.

[[Page 16]]



                                                                                                                                                        
                                                                                                                      For agency use only               
                                                                                                                                                        
 14. Effective crop        15. Crop        16. Type, class,   17. Price election  18. Level election      19              20.                 21.       
        year                                 plan of ins.      or amount of ins.                                                                        
                                                                                                          (A)             (P)                           
                                                                                                                                                        
                                                                                                      [  ]                                              
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[[Page 17]]

    N S I O T--F U R
    23. Crop(s) NOT insured the first year:

_______________________________________________________________________
    B. This application is hereby accepted by the Corporation except 
that the Corporation may reject the application on the basis that (1) 
the Corporation has determined that the risk is excessive under the 
provisions of the individual crop insurance regulations; (2) any 
material fact is concealed or misrepresented or fraud occurs in the 
application; or submission of the application; (3) the applicant is 
indebted to any United States Government Agency and that indebtedness is 
delinquent; (4) the applicant is indebted for crop insurance coverage 
provided by any company reinsured by the Corporation and that 
indebtedness is delinquent; (5) the applicant previously had crop 
insurance terminated for violation of the terms of the contract or the 
regulations, or for failure to pay the applicant's indebtedness; (6) the 
applicant is debarred by any United States Government Agency; or (7) the 
applicant has failed to provide complete and accurate information to 
material requests this application.
    Rejection shall be accomplished by depositing notification thereof 
in the United States mail, postage paid to the above address. Unless 
rejected as provided above, or the time for filing applications has 
passed at the time this application is filed, the contract shall be in 
effect for the crops and crop years specified and shall continue for 
each succeeding crop year until cancelled or terminated as provided in 
the contract. This accepted application, the insurance policy(ies), the 
applicable appendix(es), and the provisions of the county actuarial 
table showing the insurable and uninsurable acreage coverage levels, 
premium rates, and where applicable, the production guarantees, amounts 
of insurance, or plans of insurance shall constitute the contract. No 
term or condition of the contract shall be waived or changed except in 
writing by the Corporation.
    24. [  ] Applicant does not have like insurance on any of the above 
crops.

    25. [  ] Previous Carrier:

_______________________________________________________________________
    26. [  ] Policy Number:

_______________________________________________________________________
_______________________________________________________________________
    27. [  ] Applicant's Signature

_______________________________________________________________________
    28. [  ] Date

    [  ] [  ] [  ] [  ] [  ] [  ] [  ]
    29. Code No.

_______________________________________________________________________
    30. Witness to Signature

_______________________________________________________________________
    31. Location of Farm Headquarters

_______________________________________________________________________
    32. Address of Your Service Office

Phone:__________________________________________________________________

Phone:__________________________________________________________________

    I am aware and agree to comply with all requirements regarding the 
conservation provisions of the Food Security Act of 1985 (the Act) 
Sodbuster/Swampbuster provisions. I understand that I must be in 
compliance with the Act including reporting requirements to the 
applicable ASCS office for a crop insurance indemnity to be paid. I also 
understand that if I have not met these requirements, or if ASCS 
determines that I am out of compliance, an indemnity payment will not be 
made on this policy. Any graduated sanctions imposed by any agency under 
the Act must be paid in full prior to receipt of any of any indemnity 
paid.

Signature of Insured____________________________________________________

Date____________________________________________________________________

Agent's Initials________________________________________________________

    See Reverse Side of Form for Statement Required by Privacy Act of 
1974.
    33. Page ____  of ____  pages

[[Page 18]]

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)):
    The authority for requesting the information to be supplied on this 
form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et 
seq.), and the regulations promulgated thereunder (7 CFR part 400 et 
seq.). The information requested is necessary for FCIC to consider and 
process the application for insurance; to assist in determining the 
correct premium and indemnity; and to determine the correct parties to 
the insurance contract. The information may be furnished to FCIC 
contract agencies and contract loss adjusters, reinsured companies, 
other U.S. Department of Agriculture Agencies, the Internal Revenue 
Service, the Department of Justice or other State and Federal law 
enforcement agencies, and in response to orders of a court, magistrate, 
or administrative tribunal. Furnishing the social security number is 
voluntary and no adverse action will result from failure to do so. 
Furnishing the information other than the social security number, is 
also voluntary; however, failure to furnish the correct, complete 
information requested may result in rejection of the application and/or 
subsequent denial of any claim for indemnity which may be failed. The 
failure to supply correct, complete information may also invalidate the 
automatic acceptance provisions of Section B hereof and may 
substantially delay acceptance of the application and processing of any 
claim for indemnity.

[49 FR 6317, Feb. 21, 1984, as amended at 58 FR 17943, Apr. 7, 1993]



                          Subpart E--[Reserved]



Subpart F--Food Security Act of 1985, Implementation; Denial of Benefits

    Authority: Secs. 1506, 1516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1501 et seq.); sec. 1244, Pub. L. 99-198.

    Source: 52 FR 19128, May 21, 1987, unless otherwise noted.



Sec. 400.45  Applicability.

    (a) The regulations in this subpart implement Chapter XII and 
section 1764 of the Food Security Act of 1985 (Pub. L. 99-198) (the Act) 
requiring the denial of crop insurance to persons who are determined to 
have performed certain practices prohibited by the Act or who have 
violated certain federal or State statutes or the regulations 
implementing the Act. The provisions of this subpart are applicable to 
all crop insurance policies written by the Federal Crop Insurance 
Corporation (the Corporation) or reinsured by the Corporation.
    (b) The provisions of this subpart will be effective for the crop 
and crop year immediately following the first crop cancellation date 
occurring after the effective date of the Act for all crop policies 
reinsured by FCIC, and for all policies and regulations for crop 
insurance issued by FCIC.



Sec. 400.46   Definitions.

    For the purpose of this regulation and in addition to the 
definitions included at 7 CFR 12.2, the following definitions are 
applicable:
    (a) Controlled substance means any prohibited drug-producing plants 
including, but not limited to, cacti of the genus lophophora, coca 
bushes (erythroxylum coca), marijuana (cannabis satiua), opium poppies 
(papauer somniferum), and other drug-producing plants, the planting and 
harvesting of which is prohibited by Federal or State law.
    (b) Person means any producer, tenant, or landlord, insured under a 
policy of crop insurance issued by FCIC, or by a multi-peril insurance 
company whose crop insurance policy is reinsured by FCIC.
    (c) State means each of the fifty States, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United 
States, American Samoa, the Commonwealth of the Northern Mariana 
Islands, or the Trust Territory of the Pacific.
    (d) The Act means the Food Security Act of 1985 (Pub. L. 99-198).



Sec. 400.47   Denial of crop insurance.

    (a) Any person convicted under Federal or State law of planting, 
cultivating, growing, producing, harvesting or storing a controlled 
substance in any crop year will be ineligible for crop insurance during 
that crop year and the four succeeding crop years.

[[Page 19]]

    (1) The insurance of such person insured by FCIC who found to be 
ineligible under paragraph (a) of this section will be null and void, 
and any indemnity paid on such insurance must be returned in full to 
FCIC. Any premium paid for insurance coverage declared null and void 
will be returned, less a reasonable amount for expenses and handling not 
to exceed 20 percent of the premium paid.
    (2) Any person ineligible for crop insurance under the provisions of 
paragraph (a) of this section may make application for crop insurance 
for the crop year following the applicable period of ineligibility by 
submitting a new application. The previous application and policy of 
insurance will be cancelled.
    (b) Any insurance written by a multi-peril crop insurance company to 
any person who is ineligible under the provisions of this subpart is not 
eligible for reinsurance under the Corporation's standard reinsurance 
agreement. Any premium subsidy and expense allowance or loss paid by the 
Corporation because of such agreement will be immediately refunded to 
the Corporation. Notwithstanding any other provision of law, policies 
written by multi-peril crop insurance companies to any person ineligible 
under the provisions of this subpart are null and void. Premium paid for 
such policies will be refunded to the person applying for insurance, 
less a reasonable amount for expenses and handling not to exceed 20 
percent of the premium paid, and no indemnity will be paid unless the 
multi-peril company expressly agrees to continue such policy in effect 
without FCIC reinsurance. However, if the reinsured company follows the 
procedure of the Corporation and the requirements of the regulations, 
reinsurance will continue to be provided under the reinsurance agreement 
on the policy unless it is shown that the agent or company had knowledge 
of facts which would indicate ineligibility on the part of the insured 
and failed to act on that knowledge.
    (c) FCIC employees or contractors are required to report all 
suspected cases of violation of the Act or the regulations to the 
appropriate agency for a determination of violation. Benefits shall not 
be paid in such cases pending a determination from the appropriate 
agency.
    (d) Notwithstanding any other provision of this subpart, any crop 
insurance policy where insurance attached to a crop prior to August 15, 
1986, will continue in effect for that crop until the next termination 
date following August 15, 1986.

[52 FR 19128, May 21, 1987, as amended at 58 FR 17945, Apr. 7, 1993; 61 
FR 38058, July 23, 1996]



Sec. 400.48  Protection of interests of tenants, landlords or producers.

    Any tenant, landlord or producer on the farm separate from the 
person declared ineligible for crop insurance under the provisions of 
Sec. 400.47 of this part, will remain eligible for crop insurance on 
their insurable share in the crop, unless such tenant, landlord, or 
producer on the farm is:
    (a) Also convicted of planting, cultivating, growing, producing, or 
storing a controlled substance;
    (b) Otherwise determined by FCIC to be ineligible for crop 
insurance.

[52 FR 19128, May 21, 1987, as amended at 61 FR 38058, July 23, 1996]
Secs. 400.49-400.50  [Reserved]



                  Subpart G--Actual Production History

    Authority: 7 U.S.C. 1506, 1516.

    Source: 59 FR 47787, Sept. 19, 1994, unless otherwise noted.



Sec. 400.51  Availability of actual production history program.

    An Actual Production History (APH) Coverage Program is offered under 
the provisions contained in the following regulations:

7 CFR 401.110--Almond Endorsement
7 CFR part 405--Apple Crop Insurance
7 CFR 401.118--Canning and Processing Bean Endorsement
7 CFR part 409--Arizona-California Citrus Crop Insurance
7 CFR 401.127--Cranberry Endorsement
7 CFR part 433--Dry Beans Crop Insurance
7 CFR 401.116--Flaxseed Endorsement

[[Page 20]]

7 CFR part 415--Forage Production Corp Insurance
7 CFR 401.130--Grape Endorsement
7 CFR part 455--Macadamia Nut Crop Insurance
7 CFR 401.126--Onion Endorsement
7 CFR part 447--Popcorn Crop Insurance
7 CFR part 403--Peach Crop Insurance
7 CFR 401.140--Pear Endorsement
7 CFR part 416--Pea Crop Insurance
7 CFR 401.146--Fresh Plum Endorsement
7 CFR part 422--Potato Crop Insurance
7 CFR part 450--Prune Crop Insurance
7 CFR 401.123--Safflower Seed Endorsement
7 CFR 401.133--Sugarcane Endorsement
7 CFR part 430--Sugar Beet Crop Insurance
7 CFR 401.124--Sunflower Seed Endorsement
7 CFR part 437--Sweet Corn Crop Insurance
7 CFR part 441--Table Grape Crop Insurance
7 CFR 401.129--Guaranteed Tobacco Endorsement
7 CFR 401.114--Canning and Processing Tomato Endorsement
7 CFR part 454--Guaranteed Production Plan of Fresh Market Tomato
7 CFR part 446--Walnut Crop Insurance
7 CFR part 457--Common Crop Insurance Regulations; and all special 
    provisions thereto unless specifically excluded by the special 
    provisions.

    The APH program operates within limits prescribed by, and in 
accordance with, the provisions of the Federal Crop Insurance Act, as 
amended (7 U.S.C. 1501 et seq.), only on those crops identified in this 
section in those areas where the Actuarial Table provides coverage. 
Except when in conflict with this subpart, all provisions of the 
applicable crop insurance contract for these crops apply.



Sec. 400.52  Definitions.

    In addition to the definitions contained in the crop insurance 
contract, the following definitions apply for the purposes of the APH 
Coverage Program:
    (a) APH--Actual Production History.
    (b) Actual yield--The yield per acre for a crop year calculated from 
the production records or claims for indemnities. The actual yield is 
determined by dividing total production (which includes harvested and 
appraised production) by planted acres for annual crops or by insurable 
acres for perennial crops.
    (c) Adjusted yield--The transitional or determined yield reduced by 
the applicable percentage for lack of records. The adjusted yield will 
equal 65 percent of the transitional or determined yield, if no producer 
records are submitted; 80 percent, if records for one year are 
submitted; and 90 percent, if two years of records are submitted.
    (d) Appraised production--Production determined by the Agricultural 
Stabilization and Conservation Service (ASCS), the FCIC, or a company 
reinsured by the FCIC, that was unharvested but which reflected the 
crop's yield potential at the time of the appraisal. For the purpose of 
APH ``appraised production'' specifically excludes production lost due 
to uninsurable causes.
    (e) Approved APH yield--A yield, calculated and approved by the 
verifier, used to determine the production guarantee and determined by 
the sum of the yearly actual, assigned, and adjusted or unadjusted 
transitional or determined yields divided by the number of yields 
contained in the database. The database may contain up to 10 consecutive 
crop years of actual and or assigned yields. At least four yields will 
always exist in the database.
    (f) Assigned yield--A yield assigned by FCIC in accordance with the 
crop insurance contract, if the insured does not file production reports 
as required by the crop insurance contract. Assigned yields are used in 
the same manner as actual yields when calculating APH yields except for 
purposes of the Nonstandard Classification System (NCS).
    (g) Base period--Ten consecutive crop years (except peaches, which 
have a five-year base period) immediately preceding the crop year 
defined in the insurance contract for which the approved APH yield is 
being established (except for sugarcane, which begins the calendar year 
preceding the immediate previous crop year defined in the insurance 
contract).

[[Page 21]]

    (h) Continuous production reports--Reports submitted by a producer 
for each crop year that the unit was planted to the crop and for the 
most recent crop year in the base period.
    (i) Crop year--Defined in the crop insurance contract, however, for 
APH purposes the term does not include any year when the crop was not 
planted or when the crop was prevented from being planted by an 
insurable cause. For example, if an insured plants acreage in a county 
to wheat one year, that year is a crop year in accordance with the 
policy definition. If the land is summerfallowed the next calendar year, 
that calendar year is not a crop year for the purpose of APH.
    (j) Database--A minimum of four years up to a maximum of ten crop 
years of production data used to calculate the approved APH yield.
    (k) Determined yield (D-yield)--An estimated year for certain crops, 
which can be determined by multiplying an average yield for the crop 
(attained by using data available from The National Agricultural 
Statistics Service (NASS) or comparable sources) by a percentage 
established by the FCIC for each county.
    (l) Master yields--Approved APH yields, for certain crops and 
counties as initially designated by the FCIC, based on a minimum of four 
crop years of production records for a crop within a county.
    (m) New producer--A person who has not been actively engaged in 
farming for a share of the production of the insured crop for more than 
two crop years.
    (n) Production report--A written record showing the insured crop's 
annual production and used to determine the insured's yield for 
insurance purposes. The report contains yield history by unit, if 
applicable, including planted acreage for annual crops, insurable 
acreage for perennial crops, and harvested and appraised production for 
the previous crop years. This report must be supported by written 
verifiable records, measurement of farm stored production, or by other 
records of production approved by FCIC on an individual basis. 
Information contained in a claim for indemnity is considered a 
production report for the crop year for which the claim was filed.
    (o) Production Reporting Date (PRD)--The PRD is contained in the 
crop insurance contract and is the last date production reports will be 
accepted for inclusion in the database for the current crop year.
    (p) Transitional yield (T-Yield)--An estimated yield, for certain 
crops, generally determined by multiplying the ASCS program yield by a 
percentage determined by the FCIC for each county and provided on the 
actuarial table to be used in the APH yield calculation process when 
less than four consecutive crop years of actual or assigned yields are 
available.
    (q) Verifiable records--Contemporaneous records of acreage and 
production provided by the insured, which may be verified by FCIC 
through an independent source, and which are used to substantiate the 
acreage and production that have been reported on the production report.
    (r) Verifier--A person authorized by the FCIC to calculate approved 
APH yields.
    (s) Yield variance tables--Tables for certain crops that indicate 
unacceptable yield variations and yield trends which will require 
determination of the APH yield by the FCIC.



Sec. 400.53  Yield certification and acceptability.

    (a) Production reports must be provided to the crop insurance agent 
no later than the production reporting date for the crop insured.
    (1) Production reports must provide an accurate account of planted 
acreage for annual crops or insurable acres for perennial crops, as well 
as harvested and appraised production by unit.
    (2) The insured must certify the accuracy of the information.
    (3) Production reported for more than one crop year must be 
continuous. A year in which no acreage was planted to the crop on a unit 
or no acreage was planted to a practice, type, or variety requiring an 
APH yield will not be considered a break in continuity. Assigned yields, 
at the discretion of the FCIC, may be used to maintain continuity of 
yield data of file. Production on uninsured (for those years a crop 
insurance

[[Page 22]]

policy under the Federal Crop Insurance Act is in effect) or uninsurable 
acreage (for other years of the period) will not be used to determine 
APH yield unless production from such acreage is commingled with 
production from insured or insurable acreage.
    (b) Production reports and supporting records are subject to audit 
or review to verify the accuracy of the information certified. 
Production and supporting records may be reviewed and verified if a 
claim for indemnity is submitted on the insured crop. The reported yield 
is subject to revision, if needed, so that the claim conforms to the 
records submitted at that time.
    (1) Inaccurate production reports or failure to retain acceptable 
records shall result in the verifier combining optional farm units and 
recomputing the approved APH yield. These actions shall be taken at any 
time after reporting or record discrepancies are identified and may 
result in reduction of the approved APH yield for any calendar year.
    (2) Records must be provided by the insured at the time of an audit, 
review, or as otherwise requested, to verify that the acreage and 
production certified are accurate. Records of any other person having 
shares in the insured crop, which are used by the insured to establish 
the approved APH yield, must also be provided upon request.
    (3) In the event acreage or production data certified by two or more 
persons sharing in the crop on the same acreage is different, the 
verifier shall, at the verifier's discretion, determine which acreage 
and production data, if any, will be used to determine the approved APH 
yield. If the correct acreage and production cannot be determined, the 
data submitted will be considered unacceptable by the verifier for APH 
purposes.
    (4) Failure of the producer to report acreage and production 
completely and accurately may result in voidance of the crop insurance 
contract, as well as criminal or civil false claims penalties pursuant 
to applicable Federal criminal or civil statutes.



Sec. 400.54  Submission and accuracy of production reports.

    (a) The insured is solely responsible for the timely submission and 
certification of accurate, complete production reports to the agent. 
Production reports must be provided for all planted units.
    (b) Records may be requested by the FCIC, or an insurance company 
reinsured by the FCIC, or by anyone acting on behalf of the FCIC or the 
insurance company. The insured must provide such records upon request.
    (c) The agent will explain the APH Program to insureds and 
prospective insureds. When necessary, the agent will assist the insured 
in preparation of production reports. The agent will determine the 
adjusted or unadjusted transitional or determined yields in accordance 
with Sec. 400.54(b). The agent will review the production reports and 
forward them to the verifier, along with any requested and required 
supporting records for determination of an approved APH yield.
    (d) The verifier will determine if the certified production reports 
are acceptable and calculate the approved APH yield.



Sec. 400.55  Qualification for actual production history coverage program.

    (a) The approved APH yield is calculated from a database containing 
a minimum of four yields and will be updated each subsequent crop year. 
The database may contain a maximum of the 10 most recent crop years and 
may include actual, assigned, and adjusted or unadjusted T or D-Yields. 
T or D-Yields, adjusted or unadjusted, will only occur in the database 
when there are less than four years of actual and/or assigned yields.
    (b) The insured may be required to provide production records to 
determine the approved APH yield, if production records for the most 
recent crop year are available. If acceptable records of actual 
production are provided, the records must be continuous and contain at 
least the most recent crop year's actual yield.
    (1) If no acceptable production records are available, the approved 
APH yield is the adjusted T or D-Yield (65 percent of T or D-Yield).

[[Page 23]]

    (2) If acceptable production records containing information for only 
the most recent crop year are provided, the three T or D-Yields adjusted 
by 80 percent will be used to complete the minimum database and 
calculate the approved APH yield.
    (3) If acceptable production records containing information for only 
the two most recent crop years are provided, the two T or D-Yields 
adjusted by 90 percent and the two actual yields will be used to 
complete the database and calculate the approved APH yield.
    (4) If acceptable production records containing information for only 
the three most recent crop years are provided, the three actual yields 
and one unadjusted T or D-Yield are used to complete the database and 
calculate the approved APH yield.
    (5) When the database contains four or more (up to ten) continuous 
actual yields, the approved APH yield is a simple average of the actual 
yields.
    (6) New producers may have their approved APH yields based on 
unadjusted T or D-Yields or a combination of actual and unadjusted T or 
D-Yields.
    (7) Producers who add land or new practice, types and varieties to 
their farming operations and who do not have available records for the 
added land, practice, types or varieties may have approved APH yields 
for the added land, practice, types or varieties that are based on 
adjusted or unadjusted T or D-Yields as determined by FCIC.
    (8) If the producer's crop is destroyed or if it produces a low 
actual yield due to insured causes of loss, the resulting average yield 
may qualify for catastrophic yield adjustment according to FCIC 
guidelines. APH yields qualifying for catastrophic yield adjustment may 
be adjusted to mitigate the effect of catastrophic years. Premium rates 
for approved APH yields, which are adjusted for catastrophic years, may 
be based on the producer's APH average yield prior to the catastrophic 
adjustment or such other basis as determined appropriate by FCIC.
    (c) If no insurable acreage of the insured crop is planted for a 
year, a production report indicating zero planted acreage will maintain 
the continuity of production reports for APH record purposes and that 
calendar year will not be included in the APH yield calculations.
    (d) Actual yields calculated from the claim for indemnity will be 
entered in the database. The resulting average yield will be used to 
determine the premium rate and approved APH yield, at the discretion of 
FCIC.
    (e) Optional units are not available to an insured who does not 
provide acceptable production reports for at least the most recent crop 
year with which to calculate an approved APH yield.
    (f) FCIC may determine approved APH yields for designated crops in 
the following situations:
    (1) If less than four years of yield history is certified and T or 
D-Yields are not provided in the actuarial documents,
    (2) If actual yield exceed tolerances specified in yield variance 
tables, and
    (3) For perennial crops:
    (i) If significant upward or downward yield trends are indicated;
    (ii) If tree or vine damage, or cultural practices will reduce the 
production level;
    (iii) if more than two percent of the trees or vines have been 
removed within the last two years; or
    (iv) If yield trends are evident and yields greater than the average 
yield are requested by the insured.
    (g) APH yields will not be approved the first insurance year on 
perennial crops until an inspection acceptable to FCIC has been 
performed and the acreage is accepted for insurance purposes in 
accordance with the crop insurance contract.
    (h) APH Master Yields may be established whenever crop rotation 
requirements and land leasing practices limit the yield history 
available. FCIC will establish crops and locations for which Master 
Yields are available. To qualify, the producer must have at least four 
recent continuous crop years' annual production reports and must certify 
the authenticity of the production reports of the insured crop. Master 
Yields are based on acreage and production history from all acreage of 
the insured crop in the county in which the operator has shared in the 
crop's production.
    (i) FCIC may use any production report available under the 
provisions of

[[Page 24]]

any crop insurance contract, whether continuous or not, involving the 
interests of the person's insured crops in determining the approved APH 
yield.



Sec. 400.56  Administrative appeal exhaustion.

    The insured may appeal the approved APH yield in accordance with the 
procedures contained in 7 CFR part 400, subpart J. Administrative 
remedies through the appeal process must be exhausted prior to any 
action for judicial review. The approved APH yield determined as a 
result of the appeal process will be the yield applicable to the crop 
year.



Sec. 400.57  OMB control numbers.

    OMB control numbers are contained in 7 CFR part 400, subpart H.



   Subpart H--Information Collection Requirements Under the Paperwork 
                   Reduction Act; OMB Control Numbers

    Authority: 5 U.S.C. 1320, Pub. L. 96-511 (44 U.S.C., chapter 35).

    Source: 56 FR 49390, Sept. 30, 1991, unless otherwise noted.



Sec. 400.65  Purpose.

    This subpart collects and displays the control numbers assigned to 
information collection requirements of the Federal Crop Insurance 
Corporation (FCIC) by the Office of Management and Budget pursuant to 
the Paperwork Reduction Act of 1980 (Pub. L. 96-511). FCIC intends that 
this subpart comply with the requirements of section 3507(f) of the 
Paperwork Reduction Act, which requires that agencies display a current 
control number assigned by the Director of OMB for each agency 
information collection requirement.



Sec. 400.66  Display.

    (a) Crop Insurance Regulations promulgated by FCIC and contained in 
7 CFR part 400 et seq., contain the following statement:

                           OMB Control Numbers

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.

    (b) Specific report title and agency forms approved by OMB are as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Expiration
                   FCI No.                                    Form title                  OMB No.        date   
----------------------------------------------------------------------------------------------------------------
FCI-3........................................  Collector's Contact Report.............    0563-0043      8-31-94
FCI-5........................................  Contract Price Election Agreement          0563-0021      6-30-94
                                                Option for Non-Quota (additional)                               
                                                Peanuts.                                                        
FCI-5........................................  Request for Actuarial Change...........    0563-0042      9-30-94
FCI-5-A......................................  Request for Actuarial Change               0563-0042      9-30-94
                                                Continuation Sheet.                                             
FCI-6........................................  Statement of Facts.....................    0563-0027      6-30-94
FCI-9........................................  Late Planting Agreement................    0563-0023      6-30-94
FCI-12.......................................  Crop Insurance Application.............    0563-0003      3-31-93
FCI-12-A.....................................  Contract Changes.......................    0563-0025      7-31-94
FCI-12-P.....................................  Pre-Acceptance Perennial Crop              0563-0031      7-31-94
                                                Inspection Report.                                              
FCI-19.......................................  Crop Insurance Acreage Report..........    0563-0001      2-28-95
FCI-19-A.....................................  Actual Production History Review.......    0563-0036      7-31-94
FCI-19-A.....................................  Production and Yield Report............    0563-0029      7-31-94
FCI-19-C.....................................  Texas Citrus Grove Inspection Report...    0563-0017      4-30-95
FCI-20.......................................  Application for Assignment of Indemnity    0563-0014     12-31-93
FCI-21.......................................  Transfer of Right to an Indemnity......    0563-0014     12-31-93
FCI-63.......................................  Claim for Citrus Indemnity.............    0563-0007      2-28-95
FCI-63-A.....................................  Claim for Raisin Indemnity.............    0563-0007      2-28-95
FCI-63-A.....................................  Notice of Damage--Raisins..............    0563-0035      8-31-94
FCI-63-A.....................................  Adjuster's Florida Citrus Worksheet....    0563-0016      4-30-95
FCI-63-B.....................................  Tabulation of Production Records from      0563-0044      9-30-94
                                                Individual Load Certificates.                                   
FCI-73.......................................  Certiication Form......................    0563-0033      7-31-94
FCI-74.......................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity.                                                      
FCI-74.......................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity (Continuation Sheet).                                 
FCI-74-T-P-C.................................  Field Inspection and Claim for             0563-0007      2-28-95
                                                Indemnity (Tobacco, Peanuts, and                                
                                                Cotton).                                                        

[[Page 25]]

                                                                                                                
FCI-74-T-P-C.................................  Field Inspection Claim for Indemnity       0563-0007      2-28-95
                                                (Continuation Sheet).                                           
FCI-74-A.....................................  Adjuster's Apple Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Beans and Peas Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-A.....................................  Citrus Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Stand Reduction and Hail Appraisal         0563-0016      4-30-95
                                                Worksheet.                                                      
FCI-74-A.....................................  Nut Tree Appraisal Worksheet...........    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Citrus Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Corn, Grain Sorghum, and Silage            0563-0016      4-30-95
                                                Appraisal Worksheet.                                            
FCI-74-A.....................................  Cotton Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Fig Appraisal Worksheet................    0563-0016      4-30-95
FCI-74-A.....................................  Flax Appraisal Worksheet...............    0563-0016      4-30-95
FCI-74-A.....................................  Forage Seeding Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-A.....................................  Fresh Sweet Corn Appraisal Worksheet...    0563-0016      4-30-95
FCI-74-A.....................................  Table Grape Appraisal Worksheet........    0563-0016      4-30-95
FCI-74-A.....................................  Peanut Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Pear Appraisal Worksheet...............    0563-0016      4-30-95
FCI-74-A.....................................  Peppers, Fresh Tomatoes Appraisal          0563-0016      4-30-95
                                                Worksheet.                                                      
FCI-74-A.....................................  Fresh Plums Appraisal Worksheet........    0563-0016      4-30-95
FCI-74-A.....................................  Potato Appraisal Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Prune Appraisal Worksheet..............    0563-0016      4-30-95
FCI-74-A.....................................  Safflower Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Wheat, Barley, Oats, Rye, Rice             0563-0016      4-30-95
                                                Appraisal Worksheet.                                            
FCI-74-A.....................................  Soybean Appraisal Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Stonefruit Appraisal Worksheet.........    0563-0016      4-30-95
FCI-74-A.....................................  Sugar Beet Appraisal Worksheet.........    0563-0016      4-30-95
FCI-74-A.....................................  Sugarcane Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Sunflower Appraisal Worksheet..........    0563-0016      4-30-95
FCI-74-A.....................................  Tobacco Appraisal Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Peach Worksheet.............    0563-0016      4-30-95
FCI-74-A.....................................  Adjuster's Tomato Worksheet............    0563-0016      4-30-95
FCI-74-A.....................................  Texas Citrus Tree Appraisal Worksheet..    0563-0016      4-30-95
FCI-74-A.....................................  Macadamia Tree Worksheet...............    0563-0028      6-30-94
FCI-74-A.....................................  Macadamia Tree Worksheet (continuation)    0563-0028      6-30-94
FCI-74-A.....................................  Random Path Appraisal Worksheet........    0563-0039      8-31-94
FCI-74-B.....................................  Adjuster's Apple Worksheet.............    0563-0016      4-30-95
FCI-74-B.....................................  Peanut Computation Sheet...............    0563-0041      9-30-94
FCI-74-B.....................................  Stand Reduction Appraisal Worksheet....    0563-0016      4-30-95
FCI-74-B.....................................  Fresh Tomatoes Appraisal Worksheet.....    0563-0016      4-30-95
FCI-74-B.....................................  Peppers Appraisal Worksheet............    0563-0016      4-30-95
FCI-74-B.....................................  Cotton Claim for Indemnity.............    0563-0014     12-31-93
FCI-74-C.....................................  Summary of Harvested Production........    0563-0040      8-31-94
FCI-74-C.....................................  Hail Damage Appraisal Worksheet........    0563-0016      4-30-95
FCI-78.......................................  Request to Exclude Hail and Fire.......    0563-0032      6-30-94
FCI-78-A.....................................  Request to Exclude Hail and Fire.......    0563-0032      6-30-94
FCI-505......................................  Potato Crop Insurance Policy--Certified    0563-0029      6-30-94
                                                Seed Potato Option Amendment.                                   
FCI-506......................................  Apple Fresh Fruit Option...............    0563-0020      6-30-94
FCI-513......................................  Waiver to Transfer Segregation II and      0563-0026      7-31-94
                                                III Peanuts to Quota Loan.                                      
FCI-514......................................  Malting Barley Option..................    0563-0020      6-30-94
FCI-523......................................  Potato Quality Option..................    0563-0020      6-30-94
FCI-527......................................  Planting Record--Fresh Sweet Corn......    0563-0022      6-30-94
FCI-528......................................  Planting Record--Peppers...............    0563-0022      6-30-94
FCI-529......................................  Planting Record--Tomatoes (Fresh Market    0563-0022      6-30-94
                                                Dollar).                                                        
FCI-530......................................  Upland/ELS Cotton Program/                 0563-0038      8-31-94
                                                Identification of Cotton Prod.                                  
FCI-532......................................  Power of Attorney......................    0563-0030      8-31-94
FCI-535......................................  Wheat Crop Insurance--Winter Coverage      0563-0020      6-30-94
                                                Option.                                                         
FCI-539......................................  Apple Sunburn Option...................    0563-0020      6-30-94
FCI-541......................................  Corn Silage Option.....................    0563-0020      6-30-94
FCI-544......................................  Underwriting Questionnaire (Container      0563-0034      7-31-94
                                                Stock Only).                                                    
FCI-545......................................  Nursey Container Report................    0563-0034      7-31-94

[[Page 26]]

                                                                                                                
FCI-546......................................  Nursey Crop Insurance Inventory Summary    0563-0034      7-31-94
FCI-547......................................  Potato Crop Ins. Policy--Processing        0563-0020      6-30-94
                                                Potato Quality Option.                                          
FCI-548......................................  Potato Crop Ins. Policy--Frost/Freeze      0563-0020      6-30-94
                                                Potato Option.                                                  
FCI-549......................................  High-Risk Land Exclusion Option........    0563-0018      6-30-95
FCI-550......................................  Fresh Market Tomato Minimum Value          0563-0020      6-30-94
                                                Option.                                                         
FCI-551......................................  Raisin Conditioning Pool--Production to    0563-0035      8-31-94
                                                Count.                                                          
FCI-552......................................  Self-Certification Replant Worksheet...    0563-0037      8-31-94
FCI-553......................................  Unit Division Option...................    0563-0001      2-28-95
FCI-554......................................  Macadamia Orchard Inspection Report....    0563-0015      4-30-95
FCI-555......................................  Peach Producer's Picking Records.......    0563-0024      6-30-94
FCI-819......................................  Raisin Supplement--Tonnage Report......    0563-0035      8-31-94
                                                                                                                
----------------------------------------------------------------------------------------------------------------


[56 FR 49390, Sept. 30, 1991, as amended at 58 FR 13531, Mar. 12, 1993]



                          Subpart I--[Reserved]



                Subpart J--Appeal Procedure--Regulations

    Authority: 7 U.S.C. 1506(p).



Sec. 400.90  Applicability.

    Persons who are insured or believe they are insured under contracts 
of insurance issued under the Federal Crop Insurance Act must obtain 
appeal and reconsideration of decisions made under the provisions of 
this chapter in accordance with part 780 of this title.

[60 FR 67313, Dec. 29, 1995]



Subpart K--Debt Management--Regulations for the 1986 and Succeeding Crop 
                                  Years

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 17316, May 12, 1986, unless otherwise noted.



Sec. 400.115  Purpose.

    This subpart sets forth procedures that will be followed, and the 
rights afforded to debtors, in connection with the reporting by the 
Federal Crop Insurance Corporation (FCIC) to credit reporting agencies 
of information with respect to current and delinquent debts owed to 
FCIC, and in connection with referral of delinquent debts to contract 
collection agencies.



Sec. 400.116  Definitions.

    (a) Credit reporting agency means (1) a reporting agency as defined 
at 4 CFR 102.5(a), or (2) any entity which has entered into an agreement 
with USDA concerning the referral of credit information.
    (b) Collection agency means a private debt collection contractor 
under Federal Supply Schedule contract with the General Services 
Administration (GSA) for professional debt collection services.
    (c) Comptroller means the employee of FCIC filling that position or 
the person designated by the Comptroller to perform that function.
    (d) Debt and claim are deemed synonymous and are used 
interchangeably herein. The debt or claim is an amount of money which 
has been determined by an appropriate agency official to be owed to FCIC 
by any individual, organization or entity, except another Federal 
agency; State, local or foreign government or agencies thereof; Indian 
tribal governments; or other public institutions.

The debt or claim may have arisen from overpayment, premium non-payment, 
interest, penalties, reclamations resulting from payments under good 
faith reliance provisions, or other causes.

    (e) Delinquent debt means (1) any debt owed to FCIC that has not 
been paid by the termination date specified in the applicable contract 
of insurance, or other due date for payment contained in any other 
agreement, or notification of indebtedness, and (2) any overdue amount 
owed to FCIC by a debtor

[[Page 27]]

which is the subject of an installment payment agreement which the 
debtor has failed to satisfy under the terms of such agreement.
    (f) System of records means a group of any records under the control 
of FCIC from which information is retrieved by the name of the 
individual by some identifying number, symbol, or other identification 
assigned to the individual.
    (g) Request for review means that request submitted to FCIC by a 
debtor for a review of the facts resulting in the determination of 
indebtedness to FCIC. FCIC allows 45 days for such request and any 
request submitted within that period is considered a timely request.



Sec. 400.117  Determination of delinquency.

    Prior to disclosing information about a debt to a credit reporting 
agency in accordance with this subpart, the FCIC claims official, 
designated as the Comptroller, FCIC, or the designee of the Comptroller 
who has jurisdiction over the claim, shall review the claim and 
determine that the claim is valid and overdue.



Sec. 400.118  Demand for payment.

    The Comptroller who is responsible for carrying out the provisions 
of this subpart with respect to the debt shall send to the debtor 
appropriate written demands for payment in terms which inform the debtor 
of the consequences of failure to make payment, in accordance with 
guidelines established by the Manager, FCIC, the Federal Claims 
Collection Standards at 4 CFR 102.2, or the contract between the General 
Services Administration (GSA) and the collection agency.



Sec. 400.119  Notice to debtor; credit reporting agency.

    (a) In accordance with guidelines established by the Manager, FCIC, 
the Comptroller who is responsible for disclosure of information with 
respect to delinquent debts to a credit reporting agency shall send 
written notice to the delinquent debtors that FCIC intends to disclose 
credit information to a credit reporting agency on a regular basis. In 
addition, delinquent debtors are to be informed:
    (1) Of the basis for the indebtedness;
    (2) That the payment is overdue;
    (3) That FCIC intends to disclose to a credit reporting agency that 
the debtor is responsible for the debt and with respect to an 
individual, that such disclosure shall be made not less than 60 days 
after notification to such debtor;
    (4) Of the specific information intended to be disclosed to the 
credit reporting agency;
    (5) Of the rights of such debtor to a full explanation of the claim 
and to dispute any information in the system of records of FCIC 
concerning the claim;
    (6) Of the debtor's right to administrative appeal or review with 
respect to the claim and how such review shall be obtained; and
    (7) Of the date after which the information will be reported to the 
credit reporting agency.
    (b) The content and standards for demand letters and notices sent 
under this section shall be consistent with the Federal Claims 
Collection Standards at 4 CFR 102.2.



Sec. 400.120  Subsequent disclosure and verification.

    (a) FCIC shall promptly notify each credit reporting agency to which 
the original disclosure of debt information was made of any substantial 
change in the condition or amount of the claim. A substantial change in 
condition may include, but is not limited to, notice of death, cessation 
of business, or relocation of the debtor. A substantial change in the 
amount may include, but is not limited to, payments received, additional 
amounts due, or offsets made with respect to the debt.
    (b) FCIC shall promptly verify or correct, as appropriate, 
information about the claim or request of such credit reporting agency 
for verification of any or all information so disclosed. The records of 
the debtor shall reflect any correction resulting from such request.
    (c) FCIC shall obtain satisfactory assurances from each reporting 
agency to which information will be provided that the agency is in 
compliance with

[[Page 28]]

the provisions of all laws and regulations of the United States relating 
to providing credit information.



Sec. 400.121  Information disclosure limitations.

    FCIC shall limit delinquent debt information disclosed to credit 
reporting agencies to:
    (a) The name, address, taxpayer identification number, and other 
information necessary to establish the identity of the debtor;
    (b) The amount, status, and history of the claim; and
    (c) The FCIC program under which the claim arose.



Sec. 400.122  Attempts to locate debtor.

    Before disclosing delinquent debt information to a credit reporting 
agency, FCIC shall take reasonable action to locate a debtor for whom 
FCIC does not have a current address in order to send the notification 
in accordance with Sec. 400.119 of this subpart.



Sec. 400.123  Request for review of the indebtedness.

    (a) Before disclosing delinquent debt information to a credit 
reporting agency, FCIC shall, upon request of the debtor, provide for a 
review of the claim, including an opportunity for reconsideration of the 
initial decision concerning the existence or amount of the claim, in 
accordance with applicable administrative appeal procedures.
    (b) Upon receipt of a timely request for review, FCIC shall suspend 
its schedule for disclosure of delinquent debt information to a credit 
reporting agency until such time as a final decision is made on the 
request.
    (c) Upon completion of the review, the reviewing office shall 
transmit to the debtor a written notification of the decision. If 
appropriate, notification shall inform the debtor of the scheduled date 
on or after which information concerning the debt will be provided to 
the credit reporting agency. The notification shall, if appropriate, 
also indicate any changes in the information to be disclosed to the 
extent such information differs from that provided in the initial 
notification.



Sec. 400.124  Disclosure to credit reporting agencies.

    (a) In accordance with guidelines established by the Manager, FCIC, 
the Comptroller or designated manager of the systems of records shall 
disclose to credit reporting agencies the information specified in 
Sec. 400.121.
    (b) Disclosure of information to credit reporting agencies shall be 
made on or after the date specified in Secs. 400.119(a)(3) and 400.125 
and shall be comprised of the information set forth in the initial 
determination or any modification thereof.
    (c) This section shall not apply to disclosure of delinquent debts 
when:
    (1) The debtor has agreed to a repayment agreement for such debt and 
such agreement is still valid; or
    (2) The debtor has filed for review of the debt and the reviewing 
official or designee has not issued a decision on the review.



Sec. 400.125  Notice to debtor, collection agency.

    FCIC shall provide 30 days written notice to the debtor, mailed to 
the debtor's last known address, of FCIC's intent to forward the debt to 
a collection agency for further collection action.



Sec. 400.126  Referral of delinquent debts to contract collection agencies.

    (a) FCIC shall use the services of a contract collection agency 
which has entered into a contract with the General Services 
Administration to recover debts owed to FCIC.
    (b) If FCIC's collection efforts have been unsuccessful on a 
delinquent debt, and the delinquent debt remains unpaid, FCIC may refer 
the debt to a contract collection agency for collection.
    (c) FCIC shall retain the authority to resolve disputes, compromise 
claims, suspend or terminate collection action, and refer the matter for 
litigation.



Sec. 400.127  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 400.128  Definitions.

    (a) Agency means (1) An Executive Agency as defined by 5 U.S.C. 105, 
the United States Postal Service, and the

[[Page 29]]

United States Postal Rate Commission, or (2) A Military Department, as 
defined by section 102 of Title 5 U.S.C.
    (b) Debt means:
    (1) An amount owed to the United States from sources including, but 
not limited to, insured or guaranteed loans, fees, leases, insurance 
premiums, interest (except where prohibited by law), rents, royalties, 
services, sale of real or personal property, overpayments, penalties, 
damages, fines and forfeitures (except those arising under the Uniform 
Code of Military Justice).
    (2) An amount owed to the United States by an employee for pecuniary 
losses where the employee has been determined to be liable because of 
such employee's negligent, willful, unauthorized or illegal acts, 
including but not limited to:
    (i) Theft, misuse, or loss of Government funds;
    (ii) False claims for services and travel reimbursement;
    (iii) Illegal, unauthorized obligations and expenditures of 
Government appropriations;
    (iv) Using or authorizing the use of Government owned or leased 
equipment, facilities, supplies and services for other than official or 
approved purposes;
    (v) Lost, stolen, damaged, or destroyed Government property;
    (vi) Erroneous entries on accounting records or reports; and
    (vii) Deliberate failure to provide physical security and control 
procedures for accountable officers, if such failure is determined to be 
the proximate cause for a loss of Government funds.
    (c) Department or USDA means the United States Department of 
Agriculture.
    (d) Disposable salary (pay) means any pay due an employee which 
remains after required deductions for Federal, State and local income 
taxes; Social Security taxes, including Medicare taxes; Federal 
retirement programs; premiums for life and health insurance benefits; 
and such other deductions as may be required by law to be withheld.
    (e) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces.
    (f) FCIC Official means the Manager, or the Manager's designee.
    (g) Hearing Officer means an Administrative Law Judge of the 
Department of Agriculture or another person not under the control of the 
USDA, designated by the FCIC Official to review the determination of the 
alleged debt.
    (h) Salary Offset means a deduction of a debt due the U.S. by 
deduction from the disposable salary of an employee without the 
employee's consent.
    (i) Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt owed by an employee as permitted or required by 5 
U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C. 716, 5 U.S.C. 8346(b), or any 
other law.

[53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.129  Salary offset.

    (a) Debt collection by salary offset is feasible if: the cost to the 
Government of collection by salary offset does not exceed the amount of 
the debt; there are no legal restrictions to the debt, such as the 
debtor being under the jurisdiction of a bankruptcy court or the 
expiration of a statute of limitations; or, other such legal 
restrictions. The Debt Collection Act permits collections of debts by 
offset for claims that have not been outstanding for more than 10 years.
    (b) The salary offset provisions contained herein provide procedures 
which must be followed before FCIC may request another Federal agency to 
offset any amount from the debtor's salary. Decisions made under the 
provisions of this section are not appealable under the provisions of 
the Appeal Regulations in part 400, subpart J of this title.
    (c) These regulations will not apply to any case where collection of 
a debt by salary offset is explicitly provided for by another statue as 
noted by the Comptroller General in 64 Comp. Gen. 142 (1984), including 
5 U.S.C. 5512(a), 5 U.S.C. 5513, 5 U.S.C. 5522(a) (1), 5 U.S.C. 5705 (1) 
and (2), and 5 U.S.C. 5724(f).
    (d) Salary offset may be used by FCIC to collect debts which arise 
from delinquent FCIC premium payments or delinquent repayment plans and 
other debts arising from, but not limited to, such sources as program 
theft, embezzlement, fraud, salary overpayments,

[[Page 30]]

underwithholding of any amounts due and payable for life and health 
insurance, advance travel payments, overpaid indemnities, and any amount 
owed by present or former employees from loss of federal funds through 
negligence and other matters. The debt does not have to be reduced to 
judgment and does not have to be covered by a security instrument.
    (e) FCIC may use salary offset against one of its employees who is 
indebted to another agency if requested to do so by that agency. Salary 
offset will not be initiated until after other servicing options 
available to the requesting agency have been utilized, and due process 
has been afforded to the FCIC employee. When salary offset is utilized, 
payment for the debt will be deducted from the employee's salary and 
sent directly to the creditor agency. Not more than fifteen percent 
(15%) of the employee's disposable salary can be offset in any one pay 
period, unless the employee agrees in writing to the deduction of a 
larger amount.
    (f) When FCIC is owed a debt by an employee of another agency, the 
other agency shall not initiate the requested offset until FCIC provides 
the agency with a written certification that the debtor owes FCIC a debt 
(including the amount and basis of the debt and the due date of the 
payment), and that FCIC has complied with Department regulations. If a 
repayment schedule is elected by the employee, interest will be charged 
in accordance with Departmental Regulation 2520-1, Interest Rate on 
Delinquent Debts; USDA Debt Collection Regulations in 7 CFR part 3; and 
4 CFR 102.13.
    (g) For the purposes of this section, the Manager, FCIC, or the 
Manager's designee, is delegated authority to:
    (1) Certify to the debtor's employing agency that the debt exists 
and the amount of the debt or delinquent balance;
    (2) Certify that, with respect to debt collection, the procedures 
and regulations of FCIC and the Department have been complied with; and
    (3) Request that salary offset be initiated by the debtor's 
employing agency.

[53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.130   Notice requirements before offset.

    Salary offset will not be made unless the employee receives 30 
calendar days written notice. The notice of intent to offset salary 
(notice of intent) will state:
    (a) That FCIC has reviewed the records relating to the debt and has 
determined that the debt is owed, and has verified the amount of the 
debt, and the facts giving rise to the debt;
    (b) That FCIC intends to deduct an amount not to exceed 15% of the 
employees current disposable salary until the debt and all accumulated 
interest are paid in full;
    (c) The amount, frequency, approximate beginning date, and duration 
of the intended deductions;
    (d) An explanation of the requirements concerning interest, 
penalties, and administrative costs, including a statement that these 
assessments will be made unless waived in accordance with 31 U.S.C. 3717 
and 7 CFR 3.34;
    (e) That FCIC's records concerning the debt are available to the 
employee for inspection and that the employee may request a copy of such 
records;
    (f) That the employee has a right to voluntarily enter into a 
written agreement with FCIC for a repayment schedule with FCIC, which 
may be different from that proposed by FCIC, if the terms of the 
repayment agreement are agreed to by FCIC;
    (g) That the employee has the right to a hearing conducted by an 
Administrative Law Judge of USDA, or a hearing official not under the 
control of USDA, concerning the determination of the debt, the amount of 
the debt, or the percentage of disposable salary to be deducted each pay 
period, if the petition for a hearing is filed by the employee as 
prescribed by FCIC;
    (h) The method and time period allowable for a petition for a 
hearing;
    (i) That the timely filing of a hearing petition will stay the 
offset collection proceedings;
    (j) That a final decision on the hearing will be issued at the 
earliest practical date, but not later than 60 calendar days after the 
filing of the petition, unless the employee requests, and the hearing 
officer grants, a delay in the proceedings;

[[Page 31]]

    (k) That any knowingly false or frivolous statement, representation, 
or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. Chapter 75, 5 
CFR part 752, or any other applicable Statutes or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3731, or 
any other applicable statutory authority: or
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority;
    (l) Any other rights or remedies available to the employee under any 
statute or regulations governing the program for which collection is 
being made;
    (m) That the employee may request waiver of salary overpayment under 
applicable statutory authority (5 U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C 
716, or 5 U.S.C 8346(b)), or may request waiver in the case of general 
debts and if waiver is available under any statutory provision 
pertaining to the particular debt being collected. The employee may 
question the amount or validity of the salary overpayment or general 
debt by submitting a claim to the Comptroller General in accordance with 
General Accounting Officer procedure.
    (n) That amounts paid on or deducted for the debt which are later 
waived or found not to be owed to the United States will be promptly 
refunded to the employee, unless there are applicable contractual or 
statutory provisions to the contrary; and
    (o) The name and address of an official of FCIC to whom the employee 
should direct any communication with respect to the debt.

[53 FR 4, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.131  Request for a hearing and result if an employee fails to meet deadlines.

    (a) Except as provided in paragraph (c) of this section, an employee 
must file a petition for hearing that is received by the FCIC Official 
not later than 30 calendar days from the date of the notice of intent to 
collect a debt by salary offset, if the employee wants a hearing 
concerning:
    (1) The existence or amount of the debt; or
    (2) The FCIC Official's proposed offset schedule, including the 
percentage of deduction.
    (b) The petition must be signed by the employee and should clearly 
identify and explain with reasonable specificity and brevity the facts, 
evidence and witnesses which the employee believes support the his or 
her position. If the employee objects to the percentage of disposable 
salary to be deducted from each check, the petition should state the 
objection and the reasons for it.
    (c) If the employee files a petition for hearing later than the 30 
days provided in paragraph (a) of this section, the FCIC Official may 
accept the petition if the employee is able to show that the delay 
caused by conditions beyond his or her control, or because the employee 
failed to received the notice of the filing deadline (unless the 
employee has actual notice of the deadline).
    (d) An employee will not be granted a hearing and will have his or 
her disposable salary offset in accordance with the FCIC Official's 
announced schedule if the employee:
    (1) Fails to file a petition for hearing as set forth in this 
subsection; or
    (2) Is scheduled to appear and fails to appear at the hearing.

[53 FR 4, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 401.132  Hearings.

    (a) If an employee timely files a petition for a hearing, the FCIC 
Official will select the date, time, and location for the hearing.
    (b) The hearing shall be conducted by an appropriately designated 
Hearing Official.
    (c) Rules of evidence shall not be observed, but the hearing officer 
will consider all evidence that he or she determines to be relevant to 
the debt that is the subject of the hearing, and weigh all such evidence 
accordingly, given all the facts and circumstances surrounding the debt.
    (d) The burden of proof with respect to the existence of the debt 
rests with FCIC.

[[Page 32]]

    (e) The employee requesting the hearing shall bear the ultimate 
burden of proof.
    (f) The evidence presented by the employee must prove that no debt 
exists, or cast sufficient doubt such that reasonable minds could differ 
as to the existence of the debt.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 401.133  Written decision following a hearing.

    (a) At the conclusion of the hearing, a written decision will be 
provided which will include:
    (1) A statement of the facts presented at the hearing supporting the 
nature and origin of the alleged debt and those presented to refute the 
debt;
    (2) The hearing officer's analysis, findings, and conclusions, 
considering all the evidence presented and the respective burdens of the 
parties, in light of the hearing;
    (3) The amount and validity of the alleged debt determined as a 
result of the hearing;
    (4) The payment schedule (including the percentage of disposable 
salary), if applicable; and
    (5) The determination of the amount of the debt at this hearing is 
the final agency action on this matter.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.134  Review of FCIC record related to the debt.

    An employee who intends to inspect or copy FCIC records related to 
the debt must send a letter to the FCIC official (designated in the 
notice of intent) stating his or her intentions. The letter must be 
received by the FCIC official within 30 calender days of the date of the 
notice of intent. In response to the timely notice submitted by the 
debtor, the FCIC official will notify the employee of the location and 
time when the employee may inspect and copy FCIC records related to the 
debt.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.135  Written agreement to repay debt as an alternative to salary offset.

    The employee may propose, in response to a notice of intent, a 
written agreement to repay the debt as an alternative to salary offset. 
The proposed written agreement to repay the debt must be received by the 
FCIC official within 30 calendar days of the date of the notice of 
intent. The FCIC official will notify the employee whether the 
employee's proposed written agreement for repayment is acceptable. The 
FCIC official may accept a repayment agreement instead of proceeding by 
offset. In making this determination, the FCIC official will balance the 
FCIC interest in collecting the debt against hardship to the employee. 
If the debt is delinquent and the employee has not disputed its 
existence or amount, the FCIC official will accept a repayment 
agreement, instead of offset, for good cause such as, if the employee 
establishes that offset would result in undue financial hardship, or 
would be against equity and good conscience.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.136  Procedures for salary offset; when deductions may begin.

    (a) Deductions to liquidate an employee's debt will be made by the 
method and in the amount outlined in the Notice of Intent to collect 
from the employee's salary, as provided for in Sec. 400.130.
    (b) If the employee files a petition for a hearing before the 
expiration of the period provided for in Sec. 400.130, then deductions 
will begin after the hearing officer has provided the employee with a 
final written decision in favor of FCIC.
    (c) If an employee retires or resigns before collection of the 
amount of the indebtedness is completed, the remaining indebtedness will 
be collected in accordance with procedures for administrative offset.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]

[[Page 33]]



Sec. 400.137  Procedures for salary offset; types of collection.

    A debt will be collected in a lump-sum or in installments. 
Collection will be by lump-sum collection unless the employee is 
financially unable to pay in one lump-sum, or if the amount of the debt 
exceeds 15 percent of the disposable pay for an ordinary pay period. In 
these cases, deduction will be by installments as set forth in 
Sec. 400.138.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.138  Procedures for salary offset; methods of collection.

    (a) General. A debt will be collected by deductions at officially-
established pay intervals from an employee's current pay account, unless 
the employee and the hearing official agree to alternative arrangements 
for repayment under Sec. 400.135.
    (b) Installment deductions. Installment deductions will be made over 
a period not greater than the anticipated period of employment. The size 
and frequency of the installment deductions will bear a reasonable 
relation to the size of the debt and the employee's ability to pay. If 
possible, the installment payment will be sufficient in size and 
frequency to liquidate the debt in no more than three years. Installment 
payments of less than $25.00 per pay period, or $50.00 per month, will 
be accepted only in the most unusual circumstances.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.139  Nonwaiver of rights.

    So long as there are no statutory or contractual provisions to the 
contrary, no employee payment (or all or portion of a debt) collected 
under these regulations will be interpreted as a waiver of any rights 
that the employee may have under the provisions of 5 U.S.C. 5514.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.140  Refunds.

    FCIC will promptly refund to the appropriate individual amounts 
offset under these regulations when:
    (a) A debt is waived or otherwise found not owing to the United 
States (unless expressly prohibited by statute or regulation); or
    (b) FCIC is directed by an administrative or judicial order to 
refund amounts deducted from an employee's current pay.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.141  Internal Revenue Service (IRS) Tax Refund Offset.

    Under the provisions of 31 U.S.C. 3720A, the (IRS) may be requested 
to collect a legally enforceable debt owing to any Federal agency by 
offset against a taxpayer's Federal income tax refund. This section 
provides policies and procedures to implement IRS tax refund offsets in 
accordance with the provisions set forth in Sec. 301.6402-6T of 26 CFR 
chapter I.
    (a) Any person who is indebted to the Federal Crop Insurance 
Corporation (FCIC) is entitled to the extent of FCIC's administrative 
due process including review and appeal of the debt under the Appeal 
Regulations in 7 CFR part 400, subpart J.
    (b) If, after such administrative due process is exhausted, the debt 
is still outstanding with no other means of collection, the debtor will 
be notified by letter of FCIC's intention to refer such debt to the IRS 
for collection by tax refund offset. The notification letter will inform 
the debtor that their account is delinquent and that IRS will be 
requested to reduce the amount of any tax refund check due the debtor by 
the amount of the deliquency. The debtor will be given 60 days in which 
to write to the Manager, FCIC, providing written evidence that the debt 
is not legally enforceable. FCIC will refer the debt to IRS for 
collection by offset after the 60-day period if no response is received 
from the debtor. Decisions made under the provisions of this section are 
not appealable under the provisions of the Appeal Regulations in 7 CFR 
part 400, subpart J.
    (c) If the debtor has requested a review, and has provided written 
evidence that the debt is not legally enforceable, the Manager, with the 
assistance of the Office of General Counsel, USDA, will review the 
debtor's reasons

[[Page 34]]

for believing that the debt is not legally enforceable. The debtor will 
then be notified of the results of the review.
    (d) FCIC will notify IRS of those accounts against which offset 
action is to be taken.
    (e) If, during the period of review, the debtor pays the debt in 
full, the collection of the debt by tax refund offset procedure will be 
halted. Changes in debtor status that eliminate the debtor from IRS 
offset will be reported to IRS by FCIC and the debtor's refund will not 
be offset.
    (f) Amounts offset for delinquent debt which are later found to be 
not owed to FCIC, will be promptly refunded.
    (g) Debtors will not be subject to IRS offset for any of the 
following reasons:
    (1) Debtors who are discharged in bankruptcy or who are under the 
jurisdiction of a bankruptcy court;
    (2) Debtors who are employed by the Federal Government;
    (3) Debtors whose cases are in suspense because of actions pending 
by or taken by FCIC;
    (4) Debtors who have not provided a Social Security Number (SSN) and 
no SSN can be obtained;
    (5) Debtors whose indebtedness is less than $25;
    (6) Debtors whose account is more than ten (10) years delinquent; 
except in the case of a judgment debt; or
    (7) Debtors whose account has not been first reported to a consumer 
credit reporting agency.

[53 FR 5, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



Sec. 400.142  Past-due legally enforceable debt eligible for refund offset.

    For purposes of this section, a past-due, legally enforceable debt 
which may be referred by FCIC to IRS for offset is a debt which:
    (a) Except in the case of a judgement debt, has been delinquent for 
at least three months but has not been delinquent for more than 10 years 
at the time the offset is made;
    (b) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (c) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2), or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by the referring agency 
against amounts payable to the debtor by the referring agency;
    (d) With respect to which the agency has given the employee at least 
60 days to present evidence that all or part of the debt is not past-due 
or legally enforceable, has considered evidence presented by such 
employee, and has determined that an amount of such debt is past-due and 
legally enforceable;
    (e) Has been disclosed by FCIC to a consumer reporting agency as 
authorized by 31 U.S.C. 3711(f), in the case of a debt to be referred to 
IRS after June 30, 1986;
    (f) With respect to which that FCIC has notified, or has made a 
reasonable attempt to notify, the employee that:
    (1) The debt is past due; and
    (2) Unless repaid within 60 days thereafter, will be referred to IRS 
for offset against any overpayment of tax; and
    (3) Which is at least $25.00.

[53 FR 6, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988]



 Subpart L--Reinsurance Agreement--Standards for Approval; Regulations 
              for the 1997 and Subsequent Reinsurance Years

    Authority: 7 U.S.C. 1506(l), 1506(p).

    Source: 52 FR 17543, May 11, 1987, unless otherwise noted. 
Redesignated at 53 FR 3, Jan. 4, 1988, and 53 FR 10527, Apr. 1, 1988.



Sec. 400.161  Definitions.

    In addition to the terms defined in the Standard Reinsurance 
Agreement, the following terms as used in this rule are defined to mean:
    (a) Annual Statutory Financial Statement means the annual financial 
statement of an insurer prepared in accordance with Statutory Accounting 
Principles and submitted to the state insurance department if required 
by any state in which the insurer is licensed.
    (b) Company means the company reinsured by FCIC or apply to FCIC for 
a Standard Reinsurance Agreement.
    (c) Corporation means the Federal Crop Insurance Corporation.

[[Page 35]]

    (d) FCIC means the Federal crop Insurance Corporation.
    (e) Financial statement means any documentation submitted by a 
company as required by this subpart.
    (f) Guaranty fund assessments means the state administered program 
utilized by some state insurance regulatory agencies to obtain funds 
with which to discharge unfunded obligations of insurance companies 
licensed to do business in that state.
    (g) Insurer means an insurance company that is licensed or admitted 
as such in any State, Territory, or Possession of the United States.
    (h) MPUL means the maximum possible underwriting loss that an 
insurer can sustain on policies it intends to reinsure with FCIC, after 
adjusting for the effect of any reinsurance agreement with FCIC, and any 
outside reinsurance agreements, as evaluated by FCIC.
    (i) Obligations mean crop or indemnity for crop loss on policies 
reinsured under the Standard Reinsurance Agreement.
    (j) Plan of operation means a statment submitted to FCIC each year 
in which a reinsured or a prospective reinsured specifies the 
reinsurance options it wishes to use, its marketing plan, and similar 
information as required by the Corporation.
    (k) Quarterly Statutory Financial Statement means the quarterly 
financial statement of an insurer prepared in accordance with Statutory 
Accounting Principles and submitted to the state insurance department if 
required by any state in which the insurer is licensed.
    (l) Reinsurance agreement means an agreement between two parties by 
which an insurer cedes to a reinsurer certain liabilities arising from 
the insurer's sale of insurance policies.
    (m) Reinsured means the insurer which is a party to the Standard 
Reinsurance Agreement with FCIC.
    (n) Standard Reinsurance Agreement (Agreement) means the reinsurance 
agreement between the reinsured and FCIC.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 57 FR 34666, Aug. 6, 1992; 60 
FR 57903, Nov. 24, 1995]



Sec. 400.162  Qualification ratios.

    The sixteen qualification ratios include:
    (a) Eleven National Association of Insurance Commissioner's (NAIC's) 
Insurance Regulatory Information System (IRIS) ratios found in 
Secs. 400.170(d)(1)(ii) and 400.170(d)(2) (i), (ii), (iii), (vi), (vii), 
(ix), (xi), (xii), (xiii), and (xiv) and referenced in ``Using the NAIC 
Insurance Regulatory Information System'' distributed by NAIC, 120 West 
12th St., Kansas City, MO 64105-1925;
    (b) Three ratios used by A.M. Best Company found in 
Sec. 400.170(d)(2) (v), (viii), and (x) and referenced in Best's Key 
Rating Guide, A.M. Best, Ambest Road, Oldwick, N.J. 08858-0700;
    (c) One ratio found in Sec. 400.170(d)(1)(i) is calculated the same 
as the Gross Premium to Surplus IRIS ratio, with Gross Premium adjusted 
to exclude the MPCI premium assumed by FCIC; and
    (d) One ratio found in Sec. 400.170(d)(2)(iv) which is formulated by 
FCIC and is calculated the same as the One-Year Change to Surplus IRIS 
ratio but for a two-year period.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.163  Applicability.

    The standards contained herein shall be applicable to insurers who 
apply for or enter into a Standard Reinsurance Agreement effective for 
the 1997 and subsequent reinsurance years or who continue with a prior 
years Standard Reinsurance Agreement into the 1997 and subsequent 
reinsurance years.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.164  Availability of the Standard Reinsurance Agreement.

    Federal Crop Insurance Corporation will offer Standard Reinsurance 
Agreements to eligible Companies under which the Corporation will 
reinsure policies which the Companies issue to producers of agricultural 
commodities. The Standard Reinsurance Agreement will be consistent with 
the requirements of the Federal Crop Insurance Act, as amended, and 
provisions of the regulations of the Corporation found at chapter IV of 
title 7 of the Code of Federal Regulations.

[[Page 36]]



Sec. 400.165  Eligibility for Standard Reinsurance Agreements.

    A Company will be eligible to participate in an Agreement if the 
Corporation determines the Company meets the standards and reporting 
requirements of this subpart.



Sec. 400.166  Obligations of the Corporation.

    The Agreement will include the following among the obligations of 
the Corporation.
    (a) The Corporation will reinsure policies written on terms, 
including premium rates, approved by the Corporation, on crops and in 
areas approved by the Corporation, and in accordance with the provisions 
of the Federal Crop Insurance Act, as amended, and the provisions of 
these regulations.
    (b) The Corporation will pay a portion of each producer's premium on 
the policies reinsured under the Agreement, as authorized by the Federal 
Crop Insurance Act, as amended.
    (c) The Corporation will assume all obligations for unpaid losses on 
policies reinsured under the Agreement in the event any company 
reinsured under the Agreement is unable to fulfill its obligations to 
any holder of a Multiple Peril Crop Insurance Policy reinsured by the 
Corporation by reason of a directive or order issued by any State 
Department of Insurance, State Commissioner of Insurance, any court of 
law having competent jurisdiction or any other similar authority of any 
jurisdiction to which the Company is subject.
    (d) Each policy reinsured by the Corporation must be clearly 
identified by including in bold face or large type the following 
statement as item number 1 in its General Provisions:

This insurance policy is reinsured by the Federal Crop Insurance 
Corporation under the provisions of the Federal Crop Insurance Act, as 
amended (the Act) (7 U.S.C. 1501 et seq.), and all terms of the policy 
and rights and responsibilities of the parties are specifically subject 
to the Act and the regulations under the Act published in chapter IV of 
7 CFR.



Sec. 400.167  Limitations on Corporation's obligations.

    The Agreement will include the following among the limitations on 
the obligations of the Corporation.
    (a) The Corporation may, at any time, suspend its obligation to 
accept additional liability from the Company by providing written notice 
to that effect.
    (b) The obligations of the Corporation under the Agreement are 
contingent upon the availability of appropriations.
    (c) The Corporation will not reinsure any policy sold by the Company 
to a producer after the date Company receives notice that the 
Corporation has determined that the producer is ineligible to receive 
Federal Crop Insurance.



Sec. 400.168  Obligations of participating insurance company.

    The Agreement will include the following among the obligations of 
the Company.
    (a) The Company shall follow all applicable Corporation procedures 
in its administration of the crop insurance policies reinsured.
    (b) The Company shall make available to all eligible producers in 
the areas designated in its plan of operations as approved by the 
Corporation:
    (1) The crop insurance plans for the crops designated in its plan of 
operation in those counties within a State, or a portion of a State, 
where the Secretary of Agriculture has determined that insurance is 
available through local offices of the United States Department of 
Agriculture; and
    (2) Catastrophic risk protection, limited, and additional coverage 
plans of insurance for all crops, for which such insurance is made 
available by the Corporation, in all counties within a state, or a 
portion of State, where the Secretary of Agriculture has determined that 
insurance is no longer available through local offices of the United 
States Department of Agriculture.
    (c) The Company shall provide the Corporation, on forms approved by 
the Corporation all information that the Corporation may deem relevant 
in the

[[Page 37]]

administration of the Agreement, including a list of all applicants 
determined to be ineligible for crop insurance coverage and all insured 
producers cancelled or terminated from insurance, along with the reason 
for such action, the crop program, and the amount of coverage for each.
    (d) The Company shall utilize only loss adjustment procedures and 
methods that are approved by the Corporation.
    (e) The Company shall sell the policies covered under the Agreement 
through licensed agents or brokers who have successfully completed a 
training course approved by the Corporation.
    (f) The Company shall not discriminate against any employee, 
applicant for employment, insured or applicant for insurance because of 
race, color, religion, sex age, handicap, or national origin.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 61 FR 34368, July 2, 1996; 61 
FR 65153, Dec. 11, 1996]



Sec. 400.169  Disputes.

    (a) If the company believes that the Corporation has taken an action 
that is not in accordance with the provisions of the Standard 
Reinsurance Agreement or any reinsurance agreement with FCIC, except 
compliance issues, it may within 45 days after receipt of such 
determination, request, in writing, the Director of Insurance Services 
to make a final administrative determination addressing the disputed 
issue. The Director of Insurance Services will render the final 
administrative determination of the Corporation with respect to the 
applicable issues.
    (b) If the company believes that the Corporation's compliance review 
findings are not in accordance with the applicable laws, regulations, 
custom or practice of the insurance industry, or FCIC approved policy 
and procedure, it may within 45 days after receipt of such 
determination, request, in writing, the Director of Compliance to make a 
final administrative determination addressing the disputed issue. The 
Director of Compliance will render the final administrative 
determination of the Corporation with respect to these issues.
    (c) A company may also request reconsideration by the Director of 
Insurance Services of a decision of the Corporation rendered under any 
Corporation bulletin or directive which bulletin or directive does not 
affect, interpret, explain, or restrict the terms of the reinsurance 
agreement. The company, if it disputes the Corporation's determination, 
must request a reconsideraiton of that determination in writing, within 
45 days of the receipt of the determination. The determinations of the 
Director will be final and binding on the company. Such determinations 
will not be appealable to the Board of Contract Appeals.
    (d) Appealable final administrative determinations of the 
Corporation under Sec. 400.169 (a) or (b) may be appealed to the Board 
of Contract Appeals in accordance with the provisions of part 24 of 
title 7, subtitle A, of the Code of Federal Regulations, 7 CFR part 24.

[60 FR 21036, May 1, 1995]



Sec. 400.170  General qualifications.

    To qualify initially or thereafter for a Standard Reinsurance 
Agreement with FCIC, an insurer must:
    (a) Be licensed or admitted in any state, territory, or possession 
of the United States;
    (b) Be licensed or admitted, or use as a policy-issuing Company an 
insurer that is licensed or admitted, in each state from which the 
insurer will cede policies to FCIC for reinsurance;
    (c) Have surplus, as reported in its most recent Annual or Quarterly 
Statutory Financial Statement, that is at least equal to the MPUL for 
the company's estimated retained premium proposed to be reinsured, 
multiplied by the appropriate Minimum Surplus Factor found in the 
Minimum Surplus Table. For the purposes of the Minimum Surplus Table, an 
insurer is considered to issue policies in a state if at least two and 
one-half percent (2.5%) of all its reinsured retained premium is written 
in that state;

[[Page 38]]



                          Minimum Surplus Table                         
------------------------------------------------------------------------
                                                               Minimum  
                                                               surplus  
 Number of states in which a company issues FCIC-reinsured      factor  
                          policies                           (multiplied
                                                               by MPUL) 
------------------------------------------------------------------------
1 through 10...............................................          2.5
11 or more.................................................          2.0
------------------------------------------------------------------------

    (d) Have and meet the ratio requirements of the Gross Premium to 
Surplus and Net Premium to Surplus required ratios and at least ten of 
the fourteen analytical ratios in this section based on the most recent 
Annual Statutory Financial Statement, or comply with Sec. 400.172:

------------------------------------------------------------------------
                   Ratio                          Ratio requirement     
------------------------------------------------------------------------
(1) Required:                                                           
    (i) Gross Premium to Surplus..........  Less than 900%.             
    (ii) Net Premium to Surplus...........  Less than 300%.             
(2) Analytical:                                                         
    (i) Two-Year Overall Operating Ratio..  Less than 100%.             
    (ii) Agents' Balances to Surplus......  Less than 40%.              
    (iii) One-Year Change in Surplus......  Greater than -10% and less  
                                             than 50%.                  
    (iv) Two-Year Change in Surplus.......  Greater than -10%.          
    (v) Combined Ratio After Policyholder   Less than 115%.             
     Dividends.                                                         
    (vi) Change in Writing................  Greater than -33% and less  
                                             than 33%.                  
    (vii) Surplus Aid to Surplus..........  Less than 15%.              
    (viii) Quick Liquidity................  Greater than 20%.           
    (ix) Liabilities to Liquid Asset......  Less than 105%.             
    (x) Return on Surplus.................  Greater than -5%.           
    (xi) Investment Yield.................  Greater than 4.5% and less  
                                             than 10%.                  
    (xii) One-Year Reserve Development to   Less than 20%.              
     Surplus.                                                           
    (xiii) Two-Year Reserve Development to  Less than 20%.              
     Surplus.                                                           
    (xiv) Estimated Current Reserve         Less than 25%.              
     Deficiency to Surplus.                                             
------------------------------------------------------------------------

    (e) Submit to FCIC all of the following statements:
    (1) Annual and Quarterly Statutory Financial Statements;
    (2) Statutory Management Discussion & Analysis;
    (3) Most recent State Insurance Department Examination Report;
    (4) Actuarial Opinion of Reserves;
    (5) Annual Audited Financial Report; and
    (6) Any other appropriate financial information or explanation of 
IRIS ratio discrepancies as determined by the company or as requested by 
FCIC.

[60 FR 57903, Nov. 24, 1995]



Sec. 400.171  Qualifying when a state does not require that an Annual Statutory Financial Statement be filed.

    An insurer exempt by the insurance department of the states where 
they are licensed from filing an Annual Statutory Financial Statement 
must, in addition to the requirements of Sec. 400.170 (a), (b), (c) and 
(d), submit an Annual Statutory Financial Statement audited by a 
Certified Public Accountant in accordance with generally accepted 
auditing standards, which if not exempted, would have been filed with 
the insurance department of any state in which it is licensed.

[60 FR 57904, Nov. 24, 1995]



Sec. 400.172  Qualifying with less than two of the required ratios or ten of the analytical ratios meeting the specified requirements.

    An insurer with less than two of the required ratios or ten of the 
analytical ratios meeting the specified requirements in Sec. 400.170(d) 
may qualify if, in addition to the requirements of Sec. 400.170 (a), 
(b), (c) and (e), the insurer:
    (a) Submits a financial management plan acceptable to FCIC to 
eliminate each deficiency indicated by the ratios, or an acceptable 
explanation why a failed ratio does not accurately represent the 
insurer's insurance operations; or
    (b) Has a binding agreement with another insurer that qualifies such 
insurer under this subpart to assume financial responsibility in the 
event of the reinsured company's failure to meet its obligations on FCIC 
reinsured policies.

[60 FR 57904, Nov. 24, 1995]
Sec. 400.173  [Reserved]



Sec. 400.174  Notification of deviation from financial standards.

    An insurer must immediately advise FCIC if it deviates from 
compliance with any of the requirements of this chapter. FCIC may 
require the insurer

[[Page 39]]

to update its financial statements during the year. FCIC may terminate 
the reinsurance agreement if the Company is out of compliance with the 
requirements of this chapter.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 60 FR 57904, Nov. 24, 1995]



Sec. 400.175  Revocation and non-acceptance.

    (a) FCIC will deny reinsurance to any insurer or will terminate any 
existing reinsurance agreement if any false or misleading statement is 
made in the financial statements or any other document submitted by the 
insurer in connection with its qualification for FCIC reinsurance.
    (b) No policy issued by an insurer subsequent to revocation of a 
reinsurance agreement will be reinsured by FCIC. Policies in effect at 
the time of revocation will continue to be reinsured by FCIC for the 
balance of the crop year then in effect for the applicable crop. 
However, if materially false information is made to the Corporation and 
that information directly affects the ability of the Company to perform 
under the Agreement, or if the Company commits any fraudulent or 
criminal act in relation to the Standard Reinsurance Agreement or any 
policy reinsured under the Agreement, FCIC may require that the Company 
transfer the servicing and contractual right to all business in effect 
and reinsured by the Corporation to the Corporation.

[52 FR 17543, May 11, 1987. Redesignated at 53 FR 3, Jan. 4, 1988, and 
53 FR 10527, Apr. 1, 1988, as amended at 60 FR 57904, Nov. 24, 1995]



Sec. 400.176  State action preemptions.

    (a) No policyholder shall have recourse to any state guaranty fund 
or similar state administered program for crop or premium losses 
reinsured under such Standard Reinsurance Agreement. No assessments for 
such State funds or programs shall be computed or levied on companies 
for or on account of any premiums payable on policies of Multiple Peril 
Crop Insurance reinsured by the Corporation.
    (b) No policy of insurance reinsured by the Corporation and no 
claim, settlement, or adjustment action with respect to any such policy 
shall provide a basis for a claim of damages against the Company issuing 
such policy, other than damages to which the Corporation would be liable 
under federal law if the Corporation had issued the policy of insurance 
under its direct writing program, unless the claimant establishes in a 
court of competent jurisdiction, or to the satisfaction of the 
Corporation in the event of a settlement, that such damages were caused 
by the culpable failure of the Company to substantially comply with the 
Corporation's procedures or instructions in the handling of the claim or 
in servicing the insured' policy, or unless the Company or its agents 
were acting outside the scope of their authority (apparent or implied) 
in performing or omitting the actions claimed as a basis for the damage 
action.
Sec. 400.177  [Reserved]



  Subpart M--Agency Sales and Service Contract--Standards for Approval

    Authority: 7 U.S.C. 1506, 1516.

    Source: 53 FR 24015, June 27, 1988, unless otherwise noted.



Sec. 400.201  Applicability of standards.

    Federal Crop Insurance Corporation will offer an Agency Sales and 
Service Contract (the Contract) to private entities meeting the 
requirements set forth in this subpart under which the Corporation will 
insure producers of agricultural commodities. The Contract will be 
consistent with the requirements of the Federal Crop Insurance Act, as 
amended, and the provisions of the regulations of the Corporation found 
at chapter IV of title 7 of the Code of Federal Regulations. The 
Standards contained herein are required for an entity to be a contractor 
under the Contract.



Sec. 400.202  Definitions.

    For the purpose of these Standards:
    (a) Agency Sales and Service Contract or the Contract means the 
written agreement between the Federal Crop Insurance Corporation 
(Corporation) and a private entity (Contractor) for the purpose of 
selling and servicing

[[Page 40]]

Federal Crop Insurance policies and includes, but is not limited to, the 
following:
    (1) The Agency Sales and Service Contract;
    (2) Any Appendix to the Agency Sales and Service Contract issued by 
the Corporation;
    (3) The annual approved Plan or Operation; and
    (4) Any amendment adopted by the parties.
    (b) BELL 208B (or compatible) modem--means a modem meeting the 
standards developed by BELL Laboratories for dial-up, half-duplex, 4800 
or 9600 bits per second (bps) transmission of data utilizing 3780 (or 
2780) protocol.
    (c) Contract, the see Agency Sales and Service Contract.
    (d) Contractor's electronic system (system) means the data 
processing hardware and software, data communications hardware and 
software, and printers utilized with the system.
    (e) CPA means a Certified Public Accountant who is licensed as such 
by the State in which the CPA practices.
    (f) CPA Audit means a professional examination conducted by a CPA in 
accordance with generally accepted auditing standards of a Financial 
Statement on the basis of which the CPA expresses an independent 
professional opinion respecting the fairness of presentation of the 
Financial Statement.
    (g) Current Assets means cash and other assets that are reasonably 
expected to be realized in cash or sold or consumed during the normal 
operation cycle of the business or within one year if the operation 
cycle is shorter than one year.
    (h) Current Liabilities means those liabilities expected to be 
satisfied by either the use of assets classified as current in the same 
balance sheet, or the creation of other current liabilities, or those 
expected to be satisfied within a relatively short period of time, 
usually one year.
    (i) Financial Statement means the documents submitted to the 
Corporation by a private entity which portray the financial information 
of the entity. The financial statement must be prepared in accordance 
with Generally Accepted Accounting Principles (GAAP) and reflect the 
financial position in the Statement of Financial Condition or Balance 
Sheet; and the result of operations in the Statement of Profit and Loss 
or Income Statement.
    (j) Processing representative means a person or organization 
designated by the Contractor to be responsible for data entry and 
electronic transmission of data contained on crop insurance documents.
    (k) Sales means new applications and renewals of FCIC policies.
    (l) Suspended Data Notice means a notification of a temporary stop 
or delay in the processing of data transmitted to the Corporation by the 
Contractor because the same is incomplete, non-processable, obsolete, or 
erroneous.
    (m) 3780 protocol--means the data communications protocol (standard) 
that is a binary synchronous communications (BSC), International 
Business Systems (IBM)-defined, byte controlled communications protocol, 
using control characters and synchronized transmission of binary coded 
data.



Sec. 400.203  Financial statement and certification.

    (a) An entity desiring to become or continue as a contractor shall 
submit to the Corporation a financial statement which is as of a date 
not more than eighteen (18) months prior to the date of submission.
    (b) The financial statement submitted shall be audited by a CPA (CPA 
Audit); or if a CPA audited financial statement is not available, the 
statement submitted to the Corporation must be accompanied by a 
certification of:
    (1) The owner, if the business entity is a sole proprietorship; or
    (2) At least one of the general partners, if the business entity is 
a partnership; or
    (3) The Chief Executive Officer and Treasurer, if the business 
entity is a Corporation, that said statement fairly represents the 
financial condition of the entity on the date of such certification to 
the Corporation. If the financial statement as certified by the Chief 
Executive Officer and Treasurer, partner, or owner is submitted, a CPA 
audited financial statement must be submitted if subsequently available.

[[Page 41]]



Sec. 400.204  Notification of deviation from standards.

    A Contractor shall advise the Corporation immediately if the 
Contractor deviates from the requirements of these standards. The 
Corporation may require the Contractor to show compliance with these 
standards during the contract year if the Corporation determines that 
such submission is necessary. If the Corporation determines that the 
deviation is temporary, the Corporation may grant a temporary waiver 
pending compliance within a specified period of time. A waiver of any 
provision of these standards will not be granted to an applicant for a 
contract.



Sec. 400.205  Denial or termination of contract and administrative reassignment of business.

    Non-compliance with these standards will result in:
    (a) The denial of a Contract; or
    (b) Termination of an existing Contract.
    In the event of denial or termination of the Contract, all crop 
insurance policies of the Corporation sold by the Contractor and all 
business pertaining thereto may be assumed by the Corporation and may be 
administratively reassigned by the Corporation to another Contractor.



Sec. 400.206  Financial qualifications for acceptability.

    The financial statement of an entity must show total allowable 
assets in excess of liabilities and the ability of the entity to meet 
current liabilities by the use of current assets.



Sec. 400.207  Representative licensing and certification.

    (a) A Contractor must maintain twenty-five (25) licensed and 
certified Contractor Representatives.
    (b) A Contractor's Representative who solicits, sells and services 
FCIC policies or represents the Contractor in solicitation, sales or 
service of such policies must hold a license as issued by the State or 
States in which the policies are issued, which license authorizes the 
sales of insurance in any one or more of the following lines:
    (1) Multiple peril crop insurance;
    (2) Crop hail insurance;
    (3) Casualty insurance;
    (4) Property insurance;
    (5) Liability insurance; or
    (6) Fire insurance and allied lines.
    The Contractor must submit evidence, satisfactory to the 
Corporation, verifying the type of State license held by each 
Representative and the date of expiration of each license.
    (c) A Contractor's Representative must have achieved certification 
by the Corporation for each crop upon which the Representative sells and 
services insurance.



Sec. 400.208  Term of the contract.

    (a) The term of the Contract shall commence on July 1 or when 
signed. The contract will continue from year to year with an annual 
renewal date of July 1 for each succeeding year unless the Corporation 
or the Contractor gives at least ninety (90) days advance notice in 
writing to the other party that the contract is not to be renewed. Any 
breach of the contract, or failure to comply with these Standards, by 
the Contractor, may result in termination of the contract by the 
Corporation upon written notice of termination to the Contractor. That 
termination will be effective thirty (30) days after mailing of the 
notice and termination to the Contractor.
    (b) A Contractor who elects to continue under the Contract for a 
subsequent year must, prior to the month of June, submit a completed 
Plan of Operation which includes the Certifications as required by 
Sec. 400.203 of this subpart. The Contractor may not perform under the 
contract until the Plan of Operation is approved by the Corporation.



Sec. 400.209  Electronic transmission and receiving system.

    Any Contractor under the Contract is required to:
    (a) Adopt a plan for the purpose of transmitting and receiving 
electronically, information to and from the Corporation concerning the 
original executed crop insurance documents;
    (b) Maintain an electronic system which must be tested and approved 
by the Corporation;
    (c) Maintain Corporation approval of the electronic system as a 
condition to

[[Page 42]]

the electronic transmission and reception of data by the Contractor;
    (d) Utilize the Corporation approved automated data processing and 
electronic data transmission capabilities to process crop insurance 
documents as required herein; and
    (e) Establish and maintain the electronic equipment and computer 
software program capability to:
    (1) Receive and store actuarial data electronically via 
telecommunications utilizing 3780 protocol and utilizing a BELL 208B or 
compatible modem at 4800 bits per second (bps);
    (2) Enter and store information from original crop insurance 
documents into electronic format;
    (3) Verify electronically stored information recorded from crop 
insurance documents with electronically stored actuarial information;
    (4) Compute and print the data elements in the Summary of 
Protection;
    (5) Transmit crop insurance data electronically, via 3780 protocol 
utilizing a BELL 208B or compatible modem at 4800 bps;
    (6) Receive electronic acknowledgements, error messages, and other 
data via 3780 protocol utilizing a BELL 208B or compatible modem at 4800 
bps, and relate error messages to original crop insurance documents; and
    (7) Store backup data and physical documents.

    (The Corporation may approve other compatible specifications if 
accepted by the Corporation and if requested by the Contractor)



Sec. 400.210  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



       Subpart N--Disaster Assistance Act of 1988; Procedures for 
                             Implementation

    Source: 54 FR 24318, June 7, 1989, unless otherwise noted.



Sec. 400.250  General statement.

    The Disaster Assistance Act of 1988, subsequent disaster acts and 
disaster provisions in subsequent acts and the Rural Development Act (7 
U.S.C. 1961 et seq.) have required that, subject to certain provisions 
in those enactments, procedures on a farm, in order to be eligible to 
receive benefits under the various provisions, would be required to 
purchase Federal crop insurance when the disaster for which benefits are 
being obtained are related to a peril which should be covered under the 
insurance policy. Most of these legislative provisions require that 
regulations be promulgated to provide for a reduction in the commissions 
paid to private insurance agents, brokers, or companies on contracts for 
crop insurance entered into under such disaster provisions. Said 
reductions must be sufficient to reflect that such insurance contracts 
principally involve only a servicing function to be performed by the 
agent, broker, or company.

[58 FR 36593, July 8, 1993]



Sec. 400.251  Purpose and applicability.

    (a) It is the purpose of these regulations to provide the procedures 
for implementing the various disaster acts and disaster provisions which 
require the purchase of crop insurance issued under the Federal Crop 
Insurance Act, by requiring a reduction in the compensation rate to the 
agent, broker, or company under contract or agreement with FCIC.
    (b) The provisions contained in this subpart shall be applicable to 
all holders of an Agency Sales and Service Contract (herein referred to 
as ``agency'') or a Reinsurance Agreement (herein referred to as 
``company'') with FCIC, and shall be applicable on all crop insurance 
contracts for crops entered into to comply with the requirements of 
various disaster acts or provisions requiring the purchase of crop 
insurance issued under the Federal Crop Insurance Act.

[54 FR 24318, June 7, 1989, as amended at 58 FR 36593, July 8, 1993]



Sec. 400.252  Implementation and expense reimbursement.

    Crop insurance coverage, required by various disaster acts or 
disaster provisions to be made available to any producer identified by 
the Agricultural Stabilization and Conservation Service (ASCS) as having 
suffered a crop loss of

[[Page 43]]

65 percent or more, unless the requirement for such crop insurance 
coverage is waived under the provisions of various disaster acts or 
disaster provisions, may be made available through any agent or company 
under the terms and conditions of the contract or agreement such agent 
or company may have with FCIC. Agents under an Agency Sales and Service 
Contract and companies under a Reinsurance Agreement with FCIC are 
required to sign an amendment to the contract or agreement agreeing to a 
reduction in expense reimbursement for evidence of a policy of crop 
insurance issued under the requirements of various disaster acts or 
disaster provisions. Such expense reimbursement:
    (a) Will not be reduced if the producer:
    (1) Had crop insurance under the Federal Crop Insurance Act during 
the crop year for which the payment or other benefit is being sought 
under the various disaster acts or disaster provisions and said 
insurance has been continued into the next crop year;
    (2) Furnishes evidence of insurance coverage (copy of the completed, 
filed application or policy confirmation) for the next crop year for the 
crop for which the payment or other benefit under various disaster acts 
or disaster provisions is being requested, to the ASCS county office at 
the time of application for the disaster payment or other benefit under 
various disaster acts or disaster provisions; or
    (3) Has, under the provisions of various disaster acts or disaster 
provisions, received a waiver of the requirement to obtain crop 
insurance coverage.
    (b) Will be reduced in the amount of 1\1/2\ percent of base premium 
when the producer, applying for disaster payment at the ASCS Office 
without evidence of the required crop insurance coverage, is required by 
the ASCS or the Farmer's Home Administration (FmHA) county committee to 
obtain such crop insurance coverage for next crop year in order to 
receive the payment or other benefit sought under various disaster acts 
or disaster provisions.

[54 FR 24318, June 7, 1989, as amended at 58 FR 36593, July 8, 1993]



 Subpart O--Non-Standard Underwriting Classification System Regulations 
                 for the 1991 and Succeeding Crop Years

    Authority: 7 U.S.C. 1506, 1516.

    Source: 55 FR 32595, Aug. 10, 1990, unless otherwise noted.



Sec. 400.301  Basis, purpose, and applicability.

    The regulations contained in this subpart are issued pursuant to the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.) (the 
Act), to prescribe the procedures for nonstandard determinations and the 
assignment of assigned yields and/or premium rates in conformance with 
the intent of section 508 of the Act (7 U.S.C. 1508). These regulations 
are applicable to all policies of insurance insured or reinsured by the 
Corporation under the Act.



Sec. 400.302  Definitions.

    (a) Act--means Federal Crop Insurance Act as amended (7 U.S.C. 1501 
et seq.).
    (b) Actively engaged in farming--means that a person in return for a 
share of profits and losses makes a contribution to the production of an 
insurable crop of capital, equipment, personal, labor, and/or personal 
management.
    (c) Actual Yield--means total harvested production of a crop divided 
by the number of acres on which the crop was planted. For insured acres, 
actual yield is the total production to count as defined in the 
insurance policy, divided by insured acres.
    (d) Assigned yield--means units of crop production per acre 
administratively assigned by the Corporation for the purpose of 
determining insurance coverage.
    (e) Base period--means the 10 preceding crop years through the next 
to last crop year.
    (f) Corporation--means the Federal Crop Insurance Corporation.
    (g) Cumulative earned premium rate--is the total premium earned for 
all years in the base period, divided by the total liability for all 
years in the base period with the result expressed as a percentage.
    (h) Cumulative loss ratio--means the ratio of total indemnities to 
total

[[Page 44]]

earned premiums during the base period expressed as a decimal.
    (i) Earned premium rate--means premium earned divided by liability 
and expressed as a percentage.
    (j) Entity--means a person as defined in this subpart other than an 
individual.
    (k) Insurance experience--means premium earned, indemnities paid, 
and other data resulting from a crop insurance policy insured or 
reinsured by the Corporation.
    (l) Loss ratio--means the ratio of indemnity to earned premium 
expressed as a decimal.
    (m) Person--means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and whenever 
applicable, a State or a political subdivision, or agency of a state.
    (n) Substantial beneficial interest--means an interest of 10 percent 
or more. In determining whether such an interest equals at least 10 
percent, all interests which are owned directly or indirectly through 
such means as ownership of shares in a corporation which owns the 
interest will be taken into consideration.



Sec. 400.303  Initial selection criteria.

    (a) Nonstandard Classification procedures in the subpart initially 
apply when both of the following insurance experience criteria have been 
met:
    (1) Three (3) or more indemnified losses which exceed earned premium 
during the base period; and
    (2) The natural logarithm of cumulative earned premium rate 
multiplied by the square root of the cumulative loss ratio equals 2.00 
or greater. The minimum standard of 2.00 may be increased provided the 
increased standard applies to all insurance experience in the same 
county.
    (b) Selection criteria may be applied on the basis of insurance 
experience of a person, insured acreage, or the combination of both.
    (1) Insurance experience of a person will include:
    (i) Insurance experience of the person;
    (ii) Insurance experience of other insured entitites in which the 
person had substantial beneficial interest if the person was actively 
engaged in farming of the insured crop by virtue of the person's 
interest in those insured entities;
    (iii) Insurance experience of a spouse and minor children if the 
person is an individual and the spouse and minor children are considered 
the same as the individual under Sec. 400.306.
    (2) Insurance experience of insured acreage includes all insurance 
experience during the base period resulting from the production of the 
insured crop on the acreage.
    (3) Where insurance experience is based on a combination of person 
and insured acreage, the insurance experience will include the 
experience of the person as defined in paragraph (b) of this section (1) 
only on the specific insured acreage during the base period.



Sec. 400.304  Nonstandard Classification determinations.

    (a) Nonstandard Classification determinations can affect a change in 
assigned yields, premium rates, or both from those otherwise prescribed 
by the insurance actuarial tables.
    (b) Changes of assigned yields based on insurance experience of 
insured acreage (or of a person on specific insured acreage) will be 
based on the simple average of available actual yields from the insured 
acreage during the base period.
    (c) Changes of assigned yields based on insurance experience of a 
person without regard to any specific insured acreage will be determined 
by an assigned yield factor calculated by multiplying excess loss cost 
ratio by loss frequency and subtracting that product from 1.00 where:
    (1) Excess loss cost ratio is total indemnities divided by total 
liabilities for all years of insurance experience in the base period and 
the result of which is then reduced by the cumulative earned premium 
rate, expressed as a decimal, and
    (2) Loss frequency is the number of crop years in which an indemnity 
was paid divided by the number of crop years in which premiums were 
earned during the base period.
    (d) Changes of premium rates will be made to reflect premium rates 
that would have resulted in insurance experience during the base period 
with a loss ratio of 1.00 but:

[[Page 45]]

    (1) A higher loss ratio than 1.00 may be used for premium rate 
determinations provided that the higher loss ratio is applied uniformly 
in a county; and
    (2) If a Nonstandard Classification change has been made to current 
assigned yields, insurance experience during the base period will be 
adjusted to reflect the affects of changed assigned yields before 
changes of premium rates are calculated based on that experience.
    (e) Once selection criteria have been met in any year, Nonstandard 
Classification adjustments will be made from year to year until no 
further changes are necessary in assigned yields or premium rates under 
the conditions set forth in Sec. 400.304(f). In determining whether 
further changes are necessary, the eligibility criteria will be 
recomputed each subsequent year using the premium rates and yields which 
would have been applicable had this part not been in effect.
    (f) Nonstandard Classification changes will not be made that:
    (1) Increase assigned yields or decrease premium rates from those 
otherwise assigned by the actuarial tables, or
    (2) Result in less than a 10 percent decrease in assigned yields or 
less than a 10 percent increase in premium rates from those otherwise 
assigned by the actuarial tables.



Sec. 400.305  Assignment of Nonstandard Classifications.

    (a) Assignment of a Nonstandard Classification of assigned yields, 
assigned yield factors, or premium rates shall be made on forms approved 
by the Corporation and included in the actuarial tables for the county.
    (b) Nonstandard Classification assignment will be made each year for 
the year identified on the assignment forms and not subject to change 
under the provisions of this subpart by the Corporation for that year 
when included in the actuarial tables for the county except as a result 
of a request for reconsideration as provided in subsection Sec. 400.309, 
or as the result of appeals under subpart J.
    (c) Nonstandard Classifications may be assigned to identified 
insurable acreage; person; or, to a combination of person and identified 
acreage whereby:
    (1) Classifications assigned to identified insurable acreage apply 
to all acres of the insured crop grown on the identified acreage;
    (2) Classifications assigned to a person apply to all insurable 
acres of the insured crop on which the person and any entity in which 
the person has substantial beneficial interest is actively engaged in 
farming; and
    (3) Classifications assigned to a combination of a person and 
identified insurable acreage will only apply to those acres of the 
insured crop grown on the identified acreage on which the named person 
is actively engaged in producing such crop.



Sec. 400.306  Spouses and minor children.

    (a) The spouse and minor children of an individual are considered to 
be the same as the individual for purposes of this subpart except that:
    (1) The spouse who was actively engaged in farming in a separate 
farming operation prior to their marriage will be a separate person with 
respect to that separate farming operation so long as that operation 
remains separate and distinct from any farming operation conducted by 
the other spouse;
    (2) A minor child who is actively engaged in farming in a separate 
farming operation will be a separate person with respect to that 
separate farming operation if:
    (i) The parent or other entity in which the parent has a substantial 
beneficial interest does not have any interest in the minor's separate 
farming operation or in any production from such operation;
    (ii) The minor has established and maintains a separate household 
from the parent;
    (iii) The minor personally carries out the farming activities with 
respect to the minor's farming operation; and
    (iv) The minor establishes separate accounting and recordkeeping for 
the minor's farming operation.
    (b) An individual shall be considered to be a minor until the age of 
18 is reached. Court proceedings conferring majority on an individual 
under 18 years of age will not change such individual's status as a 
minor.

[[Page 46]]



Sec. 400.307  Discontinuation of participation.

    In the event that insurance participation is interrupted for one or 
more years following the assignment of a Nonstandard Classification, the 
most recent Nonstandard Classification assigned will be continued from 
year to year until participation has been renewed for at least one crop 
year and at least three years of insurance experience have occurred in 
the current base period.



Sec. 400.308  Notice of Nonstandard Classification.

    (a) The Corporation will give written notice to all persons to whom 
a Nonstandard Classification will be assigned. The notice will give the 
Nonstandard Classification and the person's rights and responsibilities 
according to this subpart.
    (b) The person, upon receiving notice from the Corporation, will be 
responsible for giving notice of the Nonstandard Classification to any 
other person with an insurable interest affected by the classification. 
The person will give notice to any other affected person:
    (1) Prior to the sales closing date if the other affected person has 
an established insurable interest at the time the classified person is 
notified by the Corporation; or
    (2) Prior to the Classified person's establishing an insurable 
interest of another person that will be affected by the classification.



Sec. 400.309  Requests for reconsideration.

    (a) Any person to be assigned a Nonstandard Classification under 
this subpart will be notified of and allowed not less than 45 days from 
the date notice is received to request reconsideration before the 
Nonstandard Classification becomes effective. The request will be 
considered to have been made when received, in writing, by the 
Corporation.
    (b) Upon receipt of a timely request for reconsideration from the 
person to whom the classification will be assigned, the Corporation 
will:
    (1) Review all information supplied by, and respond to all questions 
raised by the individual, or
    (2) In the absence of information and questions, review insurance 
experience and determinations for compliance with this subpart and 
report review results to the individual requesting reconsideration.
    (c) Upon review of a request for reconsideration, the classification 
to be assigned will be corrected for:
    (1) Errors and omissions in insurance experience;
    (2) Incorrect calculations under procedures in this subpart, and
    (3) Typographical errors.
    (d) If the review finds no cause for change, the classification will 
be assigned and placed on file in the actuarial tables for the county.
    (e) If a request for reconsideration has not been timely made by a 
person within the 45 days as prescribed by this section, appeal rights 
under regulations contained in 7 CFR part 400, subpart J, and subsequent 
regulations, will be considered to have been waived by that person with 
regard to the Nonstandard Classification.
    (f) Any person not satisfied by a determination of the Corporation 
upon reconsideration may further appeal under the provisions of 7 CFR 
part 400, subpart J.



           Subpart P--Preemption of State Laws and Regulations

    Authority: 7 U.S.C. 1506, 1516.

    Source: 55 FR 23069, June 6, 1990, unless otherwise noted.



Sec. 400.351  Basis and applicability.

    The regulations contained in this subpart are issued pursuant to the 
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et seq.) (the 
Act), to prescribe the procedures for Federal preemption of State laws 
and regulations not consistent with the purpose, intent, or authority of 
the Act. These regulations are applicable to all policies of insurance, 
insured or reinsured by the Corporation, contracts, agreements, or 
actions authorized by the Act and entered into or issued by FCIC.



Sec. 400.352  State and local laws and regulations preempted.

    (a) No State or local governmental body or non-governmental body 
shall

[[Page 47]]

have the authority to promulgate rules or regulations, pass laws, or 
issue policies or decisions that directly or indirectly affect or govern 
agreements, contracts, or actions authorized by this part unless such 
authority is specifically authorized by this part or by the Corporation.
    (b) The following is a non-inclusive list of examples of actions 
that State or local governmental entities or non-governmental entities 
are specifically prohibited from taking against the Corporation or any 
party that is acting pursuant to this part. Such entities may not:
    (1) Impose or enforce liens, garnishments, or other similar actions 
against proceeds obtained, or payments issued in accordance with the 
Federal Crop Insurance Act, these regulations, or contracts or 
agreements entered into pursuant to these regulations;
    (2) Tax premiums associated with policies issued hereunder;
    (3) Exercise approval authority over policies issued;
    (4) Levy fines, judgments, punitive damages, compensatory damages, 
or judgments for attorney fees or other costs against companies, 
employees of companies including agents and loss adjustors, or Federal 
employees arising out of actions or inactions on the part of such 
individuals and entities authorized or required under the Federal Crop 
Insurance Act, the regulations, any contract or agreement authorized by 
the Federal Crop Insurance Act or by regulations, or procedures issued 
by the Corporation (nothing herein is intended to preclude any action on 
the part of any authorized State regulatory body or any State court or 
any other authorized entity concerning any actions or inactions on the 
part of the agent, company or employee of any company whose action or 
inaction is not authorized or required under the Federal Crop Insurance 
Act, the regulations, any contract or agreement authorized by the 
Federal Crop Insurance Act or by regulations or procedures issued by the 
Corporation); or
    (5) Assess any tax, fee, or amount for the funding or maintenance of 
any State or local insolvency pool or other similar fund.
    The preceding list does not limit the scope or meaning of paragraph 
(a) of this section.



Subpart Q--General Administrative Regulations; Collection and Storage of 
   Social Security Account Numbers and Employer Identification Numbers

    Authority: 7 U.S.C. 1506, 1508.

    Source: 57 FR 46297, Oct. 8, 1992, unless otherwise noted.



Sec. 400.401  Basis and purpose and applicability.

    (a) The regulations contained in this subpart are issued pursuant to 
the Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.) (FCI Act), as 
amended by the Food, Agriculture, Conservation, and Trade Act of 1990 
(1990 Farm Act) (Pub. L. 101-624, 104 Stat. 3359), to prescribe 
procedures for the collection, use, and confidentiality of Social 
Security Account Numbers (SSN) or Employer Identification Numbers (EIN) 
and related records.
    (b) These regulations are applicable to:
    (1) All holders of all crop insurance policies issued by FCIC under 
the FCI Act and all private insurance companies, their contractors and 
subcontractors including past and present officers, agents, and 
employees of such companies, their contractors and subcontractors, 
selling and servicing such policies under an FCIC Agency Sales and 
Service Contract, a Loss Adjustment Contract, or some other similar 
contract.
    (2) All holders of crop insurance policies sold by private insurance 
companies and reinsured by the FCIC under the provisions of an FCIC 
Standard Reinsurance Agreement or other FCIC reinsurance agreement; and 
all private reinsured companies, their contractors and subcontractors, 
including past and present officers and employees of such companies, 
their contractors and subcontractors;
    (3) Any agent or company, or any past or present officer, employee, 
contractor or subcontractor of such agent or company, under contract to 
private insurance companies for loss adjustment or other purposes 
related to the

[[Page 48]]

crop insurance programs insured or reinsured by FCIC; and
    (4) All past and present officers, employees, contractors, and 
subcontractors of the Federal Crop Insurance Corporation.



Sec. 400.402  Definitions.

    (a) Agency Sales and Service Contractor--Any private insurance 
company selling FCIC policies (direct sales).
    (b) Access--with respect to authorized persons, means the ability of 
the authorized person to read, review, or use for actions authorized 
under the FCI Act, the records containing the SSN or EIN.
    (c) ASCS--Agricultural Stabilization Conservation Service, United 
States Department of Agriculture.
    (d) Applicant--The person or entity that submitted the application 
for a crop insurance policy issued by the FCIC, or issued by a reinsured 
company under the FCI Act.
    (e) Authorized person--An officer, employee, general or special 
agent, or loss adjuster of the FCIC, insurance company, reinsured 
company, or ASCS whose duties require access in the administration of 
the FCI Act.
    (f) Collection--Act of obtaining and recording a SSN or EIN from 
participants in the crop insurance program.
    (g) Disposition of records--the act performed by the insurance 
company or reinsured company of removing records containing a 
participant's SSN or EIN and disposition of such records by the 
insurance companies, or reinsured companies.
    (h) EIN--a participant's Employer Identification Number required 
under section 6109 of the Internal Revenue Code of 1986.
    (i) FCI Act--the Federal Crop Insurance Act as amended (7 U.S.C. 
1501 et seq.).
    (j) FCIC--Federal Crop Insurance Corporation.
    (k) Government contract employees--authorized persons employed by a 
direct insurance or reinsured company, former officers or employees of 
such company, and general or special agents and loss adjusters.
    (l) Past officers and employees--any officer or employee of the 
direct insurance company, reinsured company, or corporation who leaves 
the employ of such company or corporation subsequent to the official 
effective date of this rule.
    (m) Policyholder--means an applicant accepted by the FCIC, the 
direct insurance company, or the reinsured company.
    (n) Private insurance company--a direct insurance company selling 
FCIC policies under an Agency Sales and Service Contract.
    (o) Reinsured company--a private insurance company having a Standard 
Reinsurance Agreement, or other reinsurance agreement, with the FCIC 
whose crop insurance policies are approved and reinsured by the FCIC 
under such agreements.
    (p) Related records--any record, list, or compilation that 
indicates, directly or indirectly, the identity of any individual with 
respect to whom an SSN or EIN is maintained in a system of records.
    (q) Restricted access--restricting review of all records maintained 
by authorized persons to only the authorized persons who need access to 
such records for official business under the FCI Act.
    (r) Retrieval of records--retrieval of an individual's records by a 
participant's SSN or EIN.
    (s) Safeguards--methods of security to be taken by the FCIC, the 
direct insurance company, and the reinsured companies to protect a 
participant's SSN or EIN from unlawful disclosure and access. Records 
containing the SSN or EIN must be secured in locked file storage, 
secured computer data files, or similar safe storage.
    (t) SSN--an individuals's Social Security Number.
    (u) Storage--the secured storing of records kept by the FCIC, direct 
insurance, or reinsured companies on computer diskettes (soft and hard 
drives), computer printouts, magnetic tape, index cards, microfiche, 
micro film, etc.
    (v) Substantial beneficial interest--an interest of ten percent 
(10%) or more in an application or policyholder.
    (w) System of Records--records maintained by the FCIC, direct 
insurance companies, or reinsured companies from which information is 
retrieved by

[[Page 49]]

a personal identifier including the SSN, EIN, or name.

[57 FR 46297, Oct. 8, 1992, as amended at 58 FR 47204, Sept. 8, 1993; 59 
FR 52408, Oct. 18, 1994]



Sec. 400.403  Required System of Records.

    Thirty days after the publication in the Federal Register of this 
rule, direct insurance companies and reinsured companies are required to 
implement a system of records for obtaining, using, and storing 
documents containing SSN or EIN data. This data should include: name; 
address; city and state; SSN or EIN; and policy numbers which have been 
used by the FCIC, the direct insurance company, or the reinsured 
companies.



Sec. 400.404  Policyholder responsibilities.

    (a) The policyholder or applicant for crop insurance must provide a 
correct SSN or EIN to the FCIC, the direct insurance company, the 
reinsured company, or ASCS to be eligible for insurance. The SSN and EIN 
will be used by the FCIC, the direct insurance companies, and the 
reinsured companies in:
    (1) Determining the correct parties to the agreement or contract;
    (2) collecting premiums;
    (3) determining the amount of indemnities;
    (4) establishing actuarial data on an individual policyholder basis; 
and
    (5) determining eligibility for program benefits.
    (b) If the policyholder or applicant for crop insurance does not 
provide the correct SSN or EIN on the application and other forms where 
such SSN or EIN is required, the FCIC, direct insurance company, or 
reinsured company will reject the application.
    (c) The policyholder is required to provide to FCIC, the insurance 
company, the reinsured companies, and ASCS the name and SSN or EIN of 
any individual or company holding or acquiring access to a substantial 
beneficial interest in such policyholder.



Sec. 400.405  Company responsibilities.

    The insuring or reinsured company is required to collect and record 
the SSN or EIN on each application or any other form required by the 
FCIC.



Sec. 400.406  Restricted access.

    The Manager, other officer, or employee of the FCIC or authorized 
person (as defined in Sec. 400.402(e)) may have access to the EINs and 
SSNs obtained pursuant to Sec. 400.404 only for the purpose of 
establishing and maintaining a system of records necessary for the 
effective administration of the FCI Act in accordance with Sec. 400.404 
of this part. These numbers may be used in administering the FCI Act.

[58 FR 47204, Sept. 8, 1993]



Sec. 400.407  Safeguards and storage.

    (a) Access to records identifying an applicant's SSN or EIN is 
restricted as provided in Sec. 400.406. Records must be secured in 
locked file storage, secured computer data files, or similar safe 
storage. An authorized person, as defined in Sec. 400.402(d) must 
maintain hardcopy records in file folders and, when not in use, such 
copies must be:
    (1) Locked in a cabinet or safe;
    (2) On a computer accessed only through a secure computer system 
procedure;
    (i) Locked; or
    (ii) On a computer accessed only through a secure computer system 
procedure.
    (b) Records identifying a SSN or EIN stored on computer printouts, 
hard or floppy diskette, microfiche, or index cards must be kept in 
locked file cabinets, safes, or in secured computer systems.



Sec. 400.408  Unauthorized disclosure.

    Anyone having access to the records identifying a participant's SSN 
or EIN will abide by the provisions of section 205(c)(2)(C) of the 
Social Security Act (42 U.S.C. 405(c)(2)(C), and section 6109(f), 
Internal Revenue Code of 1986 (26 U.S.C. 6109(f) and the Privacy Act of 
1974 (5 U.S.C. 552a). All records are confidential, and are not to be 
disclosed to unauthorized personnel.



Sec. 400.409  Penalties.

    Unauthorized disclosure of SSN's or EIN's by any person may subject 
that person, and the person soliciting the unauthorized disclosure, to 
civil or criminal sanctions imposed under various Federal statutes, 
including 26

[[Page 50]]

U.S.C. 7613, 5 U.S.C. 552a, and 42 U.S.C. 408.



Sec. 400.410  Obtaining personal records.

    Policyholders in the crop insurance program will be able to review 
or correct their records, as provided by the Privacy Act. Participants 
may request their records by:
    (a) Mailing a written request, with their signature, to the 
headquarters office of the FCIC; the field office, ASCS; the direct 
insurance company; or reinsured company; or
    (b) Making a personal visit to the above mentioned establishments 
and showing valid identification.



Sec. 400.411  Record retention.

    The reinsured insurance company, either direct or reinsured, will 
retain all records of policyholders for a period of not less than three 
(3) years from the date of a final action on a policy for the crop year 
unless maintenance of specific records is requested by the Corporation. 
Final actions on insurance policies include conclusion of such insurance 
events such as renewal or termination of policy, completion of loss 
adjustment, or satisfaction of claim. Companies are reminded that the 
Statute of Limitation for FCIC contract claims requires that litigation 
be instituted within six years of a breach of contract. Destruction of 
records will not provide a defense to any action by the Corporation 
against any Company.

[59 FR 52408, Oct. 18, 1994]



Sec. 400.412  OMB control numbers.

    The principal information collection activity associated with this 
rule (application) has been approved by the Office of Management and 
Budget (OMB) under control number 056-003. Other OMB control numbers are 
contained in subpart H of part 400, title 7 CFR.



                          Subpart R--Sanctions

    Authority: 7 U.S.C. 1506(l).

    Source: 58 FR 53110, Oct. 14, 1993, unless otherwise noted.



Sec. 400.451  General.

    (a) The Federal Crop Insurance Corporation (FCIC) has implemented a 
system of sanctions to prevent waste, fraud, and abuse within its 
programs and insurance delivery systems. Such sanctions include civil 
penalties and disqualification from the crop insurance program under the 
Federal Crop Insurance Act, 7 U.S.C. 1506(m); government wide debarment 
and suspension; and civil penalties and assessments under the Program 
Fraud Civil Remedies Act, 31 U.S.C. 3801--31 U.S.C. 3812.
    (b) The provisions of this subpart apply to all contracts and 
agreements to which FCIC is a party unless otherwise specifically 
provided for in this subpart, including those in which FCIC provides 
administrative expense reimbursement, premium subsidy, or reinsurance 
benefits.
    (c) The provisions of this subpart are in addition to any other 
sanctions specifically provided in applicable contracts and agreements.
    (d) This subpart is applicable to any act or omission by any 
affected party after October 14, 1993.



Sec. 400.452  Definitions.

    For purposes of this subpart, a person means an individual, 
partnership, association, corporation, estate, trust, or other business 
enterprise or legal entity, and wherever applicable, a state, a 
political subdivision of a state, or any agency thereof.



Sec. 400.453  Exhaustion of administrative remedies.

    All administrative remedies contained herein or incorporated herein 
by reference must be exhausted before Judicial Review in the United 
States Courts may be sought, unless review is specifically required by 
statute.



Sec. 400.454  Civil penalties.

    (a) Any person who willfully and intentionally provides any 
materially false or inaccurate information to FCIC or to any approved 
insurance provider reinsured by FCIC with respect to an insurance plan 
or policy issued under the authority of the Federal Crop Insurance Act, 
as amended, (7 U.S.C. 1501 et seq.) may be subject to a

[[Page 51]]

civil fine of up to $10,000 and disqualification from participation in:
    (1) The catastrophic risk protection plan of insurance and the 
noninsured crop disaster assistance program for a period not to exceed 
two (2) years; or
    (2) Any plan of insurance providing protection in excess of that 
provided under the catastrophic risk protection plan of insurance for a 
period not to exceed ten (10) years.
    (b) FCIC may make the payment of a civil penalty under this section 
a prior condition for the issuance, renewal, restoration, or continuing 
validity of any crop insurance policy or other approval.
    (c) FCIC may compromise, modify, settle, collect, or remit with or 
without conditions, any civil penalty which is subject to imposition or 
which has been imposed under this section whenever it considers it to be 
appropriate or advisable.
    (d) If a director, officer, or agent of a corporation provides false 
or inaccurate information, they may be separately subject to the fine 
specified in paragraph (a) of this section without regard to any 
penalties to which the corporation may be subject.
    (e) The liability of any person for any penalty under this subpart 
or any related charges arising in connection therewith shall be in 
addition to any other liability of such person under any civil or 
criminal fraud statute or any other statute or provision of law.
    (f) Proceedings under this Sec. 400.454 will be in accordance with 
subpart H of 7 CFR part 1, ``Rules of Practice Governing Formal 
Adjudicatory Proceedings Instituted by the Secretary under Various 
Statutes,'' by which the Manager, FCIC, shall initiate proceedings by 
filing a complaint with the Hearing Clerk, United States Department of 
Agriculture.

[58 FR 53110, Oct. 14, 1993, as amended at 60 FR 37323, July 20, 1995]



Sec. 400.455  Governmentwide debarment and suspension (procurement).

    (a) This section prescribes the terms and conditions under which 
persons or business entities may be debarred or suspended by FCIC from 
contracting with the Federal government.
    (b) This section is in accordance with 48 CFR part 9, subpart 9.4 
and 48 CFR part 409, subpart 409.4 and shall be applicable to all FCIC 
debarment and suspension proceedings undertaken pursuant to the Federal 
Acquisition Regulations, except that the authority to debar or suspend 
is reserved to the Manager, FCIC, or the Manager's designee.
    (c) Any individual or entity suspended or debarred under the 
provisions of 48 CFR part 9, subpart 9.4 will not be eligible to 
contract with FCIC or be employed by or contract with any insurance 
company that sells or adjusts FCIC's crop insurance contracts or which 
company's crop insurance contracts are reinsured by FCIC. FCIC may waive 
this provision if it is satisfied that the insurance company has taken 
sufficient action to insure that the suspended or debarred entity or 
individual will not be involved, in any way, with FCIC or FCIC reinsured 
crop insurance contracts.



Sec. 400.456  Governmentwide debarment and suspension (nonprocurement).

    (a) This section prescribes the terms and conditions under which 
individuals or entities may be debarred or suspended by FCIC from 
participation in Federal assistance and benefits under Federal programs 
and activities.
    (b) This section, in accordance with 7 CFR part 3017, shall be 
applicable to all FCIC debarment and suspension proceedings other than 
those undertaken pursuant to the Federal Acquisition Regulations.
    (c) Proceedings under this section are not applicable to 
determinations of eligibility under the provisions of the crop insurance 
contracts or determinations to be made under 7 CFR 400.454.
    (d) The Manager, FCIC, shall be the debarring and suspending 
official for all debarment or suspension proceedings undertaken by FCIC 
under the provisions of 7 CFR part 3017.



Sec. 400.457  Program Fraud Civil Remedies Act.

    (a) This section is in accordance with the Program Fraud Civil 
Remedies Act of 1986 (31 U.S.C. 3801-U.S.C. 3831) which

[[Page 52]]

provides for civil penalties and assessments against persons who make, 
submit, or present, or cause to be made, submitted, or presented, false, 
fictitious, or fraudulent claims or written statements to Federal 
authorities or to their agents.
    (b) Proceedings under this section will be in accordance with 
subpart L of 7 CFR part 1, ``Procedures Related to Administrative 
Hearings Under the Program Fraud Civil Remedies Act of 1986.''
    (c) The Director, Appeals and Litigation Staff, FCIC, or the 
Director's designee, is authorized to serve as Agency Fraud Claims 
Officer for the purpose of implementing the requirements of this 
section.



Sec. 400.458  Scheme or device.

    (a) In addition to the penalties specified in this part, if a person 
has knowingly adopted a material scheme or device to obtain catastrophic 
risk protection, other plans of insurance coverage, or noninsured 
assistance benefits to which the person is not entitled, has evaded the 
provisions of the Federal Crop Insurance Act, or has acted with the 
purpose of evading the provisions of the Federal Crop Insurance Act, the 
person shall be ineligible to receive any and all benefits applicable to 
any crop year for which the scheme or device was adopted.
    (b) A scheme or device may include, but is not limited to, creating 
or using another entity, or concealing or providing false information 
with respect to your interest in the policyholder, to evade:
    (1) Suspension, debarment, or disqualification from participation in 
the program;
    (2) The assignment of the nonstandard classification system; or
    (3) Ineligibility for a delinquent debt owed to FCIC or the 
insurance company.

[60 FR 37324, July 20, 1995]



Sec. 400.459  Indebtedness.

    Any person who owes a debt to FCIC, or an approved insurance 
provider, arising from any program administered under the Act, and that 
debt is delinquent, will be ineligible to participate in all such 
programs until the debt is paid in full or the person enters into an 
agreement, acceptable to FCIC or the approved insurance provider, to 
repay the debt. If the person provides adequate evidence to demonstrate 
that the amount of debt is in dispute, the person's application will be 
accepted or their insurance will remain in effect, but no indemnity 
payment will be made, until the disputed issue is resolved between that 
person and FCIC or the approved insurance provider through the available 
appeal process.

[60 FR 51321, Oct. 2, 1995]
Secs. 400.460--400.499  [Reserved]



Sec. 400.500  OMB control numbers.

    Office of Management and Budget (OMB) control numbers are contained 
in subpart H of 7 CFR part 400.



                          Subpart S--[Reserved]



  Subpart T--Federal Crop Insurance Reform, Insurance Implementation; 
           Regulations for the 1997 and Subsequent Crop Years

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    Source: 61 FR 42975, Aug. 20, 1996, unless otherwise noted.



Sec. 400.650  Purpose.

    The Reform Act requires FCIC to implement a crop insurance program 
that offers several levels of insurance coverage for producers. These 
levels of protection include catastrophic risk protection, limited 
coverage, and additional coverage insurance. This subpart provides 
notice of the availability of these crop insurance options and 
establishes provisions and requirements for implementation of the 
insurance provisions of the Reform Act.



Sec. 400.651  Definitions.

    Act. The Federal Crop Insurance Act, as amended (7 U.S.C. Secs. 1501 
et seq.).
    Additional coverage. Plans of crop insurance providing a level of 
coverage equal to or greater than sixty-five percent (65%) of the 
approved yield indemnified at one hundred percent (100%) of

[[Page 53]]

the expected market price, or comparable coverage as established by 
FCIC.
    Administrative fee. The $50 fee the producer must pay on a per crop 
and county basis with a maximum of $200 per producer per county and $600 
per producer for catastrophic and limited coverage on an annual basis. 
Also, the $10 fee the producer must pay annually on a per crop and 
county basis for additional coverage.
    Approved insurance provider. A private insurance company, including 
its agents, that has been approved and reinsured by FCIC to provide 
insurance coverage to producers participating in the Federal crop 
insurance program.
    Approved yield. The amount of production per acre computed in 
accordance with FCIC's Actual Production History Program (7 CFR part 
400, subpart G) or for crops not included under 7 CFR part 400, subpart 
G, the yield used to determine the guarantee in accordance with the crop 
provisions or the Special Provisions.
    Catastrophic risk protection. The minimum level of coverage offered 
by FCIC which is required before a person may qualify for certain other 
USDA program benefits unless the producer executes a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop. For the 1995 through 1998 crop years, such coverage will offer 
protection equal to fifty percent (50%) of the approved yield 
indemnified at sixty percent (60%) of the expected market price, or a 
comparable coverage as established by FCIC. For the 1999 and subsequent 
crop years, such coverage will offer protection equal to fifty percent 
(50%) of the approved yield indemnified at fifty-five percent (55%) of 
the expected market price, or a comparable coverage as established by 
FCIC.
    Catastrophic Risk Protection Endorsement. The part of the crop 
insurance policy that contains provisions of insurance that are specific 
to catastrophic risk protection.
    Crop of economic significance. A crop that has either contributed in 
the previous crop year, or is expected to contribute in the current crop 
year, ten percent (10%) or more of the total expected value of the 
producer's share of all crops grown in the county. However, a crop will 
not be considered a crop of economic significance if the expected 
liability under the Catastrophic Risk Protection Endorsement is equal to 
or less than the administrative fee required for the crop.
    Expected market price. (price election) The price per unit of 
production (or other basis as determined by FCIC) anticipated during the 
period the insured crop normally is marketed by producers. This price 
will be set by FCIC before the sales closing date for the crop. The 
expected market price may be less than the actual price paid by buyers 
if such price typically includes remuneration for significant amounts of 
post-production expenses such as conditioning, culling, sorting, 
packing, etc.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within USDA.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture or any successor agency.
    Insurable interest. The value of the producer's interest in the crop 
that is at risk from an insurable cause of loss during the insurance 
period. The maximum indemnity payable to the producer may not exceed the 
indemnity due on the producer's insurable interest at the time of loss.
    Intended crop. A crop stated on the application as submitted on or 
before the sales closing date for the crop which the producer intended 
to plant in the crop year for which application is made.
    Limited coverage. Plans of insurance offering coverage that is equal 
to or greater than fifty percent (50%) of the approved yield indemnified 
at one hundred percent (100%) of the expected market price, or a 
comparable coverage, but less than sixty-five percent (65%) of the 
approved yield indemnified at one hundred percent (100%) of the expected 
market price, or a comparable coverage.
    Limited resource farmer. A producer or operator of a farm, with an 
annual gross income of $20,000 or less derived from all sources of 
revenue, including income from spouse's or other members of the 
household, for each of the prior

[[Page 54]]

two years. Notwithstanding the previous sentence, a producer on a farm 
or farms of less than 25 acres aggregated for all crops, where a 
majority of the producer's gross income is derived from such farm or 
farms, but the producer's gross income from farming operations does not 
exceed $20,000, will be considered a limited resource farmer.
    Linkage requirement. The legal requirement that a producer must 
obtain at least catastrophic risk protection coverage for any crop of 
economic significance as a condition of receiving benefits for such crop 
from certain other USDA programs in accordance with Sec. 400.657, unless 
the producer executes a waiver of any eligibility for emergency crop 
loss assistance in connection with the crop.
    Person. An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a state 
or a political subdivision or agency of a state.
    Reform Act. The Federal Crop Insurance Reform Act of 1994, Public 
Law 103-354.
    Secretary. The Secretary of the United States Department of 
Agriculture.
    Substitute crop. An alternative crop whose sales closing date has 
passed and that is planted on acreage that is prevented from being 
planted to an intended crop or where an intended crop is planted and 
fails.
    Zero acreage report. An acreage report filed by the producer that 
certifies that the producer does not have a share in the crop for that 
crop year.



Sec. 400.652  Insurance availability.

    (a) If sufficient actuarial data are available, FCIC will offer 
catastrophic risk protection, limited, and additional coverage plans of 
insurance to indemnify persons for FCIC insured or reinsured crop loss 
due to loss of yield or prevented planting, if the crop loss or 
prevented planting is due to an insured cause of loss specified in the 
applicable crop insurance policy.
    (b) Catastrophic risk protection coverage may be offered through 
approved insurance providers and through local offices of the Farm 
Service Agency specified by the Secretary. Limited and additional 
coverage will only be offered through approved insurance providers 
unless there is not a sufficient number of approved insurance providers 
that offer such insurance within a service area.
    (c) A person must obtain at least catastrophic risk protection for 
the crop on all insurable acreage in the county in which the person has 
a share on or before the sales closing date designated by FCIC for the 
crop in the county in order to satisfy the linkage requirements unless 
the producer executes a waiver of any eligibility for emergency crop 
loss assistance in connection with the crop.
    (d) For limited and additional coverage, in areas where insurance is 
not available for a particular agricultural commodity that is insurable 
elsewhere, FCIC may enter into a written agreement with a person to 
insure the commodity, provided that the person has actuarially sound 
data relating to the production of the commodity that is acceptable to 
FCIC and that such written agreement is specifically allowed by the crop 
insurance regulations applicable to the crop.
    (e) Failure to comply with all provisions of the policy constitutes 
a breach of contract and may result in ineligibility for certain other 
farm program benefits for that crop year and any benefit already 
received must be refunded. If a producer breaches the insurance 
contract, the execution of a waiver of eligibility for emergency crop 
loss assistance will not be effective for the crop year in which the 
breech occurred.



Sec. 400.653  Determining crops of economic significance.

    To be eligible for certain other program benefits under Sec. 400.657 
the following conditions will apply with respect to crops of economic 
significance if the producer does not execute a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop.
    (a) If a producer planted a crop of economic significance in the 
preceding crop year, and does not intend to plant the same crop in the 
present crop year, the producer does not have to obtain insurance 
coverage or execute a waiver of any eligibility for emergency crop loss 
assistance in connection with the crop in the present crop year to 
comply

[[Page 55]]

with the linkage requirements. However, if the producer later decides to 
plant that crop, the producer will be unable to obtain insurance after 
the sales closing date and must execute a waiver of any eligibility for 
emergency crop loss assistance in connection with the crop to be 
eligible for benefits as specified in Sec. 400.657. Failure to execute 
such a waiver will require the producer to refund any benefits already 
received under a program specified in Sec. 400.657.
    (b) The producer is initially responsible to determine the crops of 
economic significance in the county. The insurance provider may assist 
the producer in making these initial determinations. However, these 
determinations will not be binding on the insurance provider. To 
determine the percentage value of each crop:
    (1) Multiply the acres planted to the crop times the producer's 
share, times the approved yield, and times the price;
    (2) Add the values of all crops grown by the producer (in the 
county); and
    (3) Divide the value of the specific crop by the result of paragraph 
(b)(2).
    (c) The producer may use the type of price, such as the current 
local market price, futures price, established price, highest amount of 
insurance, etc., for the price when calculating the value of each crop, 
provided that the producer uses the same type of price for all crops in 
the county.
    (d) The producer may be required to justify the calculation and 
provide adequate records to enable the insurance provider to verify 
whether a crop is of economic significance.



Sec. 400.654  Application and acreage report.

    (a) To participate in catastrophic risk protection, limited, or 
additional coverage plans of insurance, a producer must submit an 
application for insurance on or before the applicable sales closing 
date.
    (b) In order to remain eligible for certain farm programs, as 
specified in Sec. 400.657, a producer must obtain at least catastrophic 
risk protection on all crops of economic significance, if catastrophic 
risk protection is available in the county, unless the producer executes 
a waiver of any eligibility for emergency crop loss assistance in 
connection with the crop.
    (c) Notwithstanding the requirements of Sec. 400.654(a) that 
applications for insurance be submitted on or before the applicable 
sales closing date, FCIC may permit a producer to insure crops other 
than those specified on the application under the following conditions:
    (1) The producer must be unable to plant the intended crop or it is 
not practical to replant a failed crop before the final planting date. 
FCIC will take into consideration marketing windows when determining 
whether it was not practical to replant.
    (2) Conditions must exist to warrant allowing a producer to insure 
crops other than the intended crop.
    (3) The producer must submit an application for the substitute crop 
on or before the acreage reporting date for the substitute crop and pay 
any applicable administrative fee. A producer may not substitute a crop 
that the producer planted in the preceding crop year unless that crop 
was listed on a timely filed application for the current crop year.
    (4) If the producer plants a substitute crop that is a crop of 
economic significance, the producer must obtain CAT coverage, if 
available, to comply with the linkage requirements specified in 
Sec. 400.657. The producer may not substitute a crop under this 
provision if the producer has signed or intends to sign a waiver for 
emergency crop loss assistance for the crop year.
    (5) The substitute crop must be planted on or before the final 
planting date or within the late planting period, if applicable, for the 
substitute crop.
    (6) Under no circumstances may a producer submit an application for 
limited or additional coverage after the sales closing date for the 
substitute crop.
    (d) For all coverages, including catastrophic risk protection, 
limited, and additional coverages, the producer must file a signed 
acreage report on or before the acreage reporting date. Any person may 
sign any document relative to crop insurance coverage on behalf of any 
other person covered by such a policy, provided that the person has a 
properly executed power of attorney or

[[Page 56]]

other legally sufficient document authorizing such person to sign.
    (e) Under catastrophic risk protection, unless the other person with 
an insurable interest in the crop objects in writing prior to the 
acreage reporting date and provides a signed acreage report on their own 
behalf an operator may sign the acreage report for all other persons 
with an insurable interest in the crop without a power of attorney. All 
persons with an insurable interest in the crop, and for whom the 
operator purports to sign and represent, are bound by the information 
contained in that acreage report.



Sec. 400.655  Coverage provided.

    (a) The specific causes of loss for which insurance coverage is 
offered are designated in the crop insurance policy for each crop.
    (b) An indemnity paid to a producer may be reduced, in an amount 
determined in accordance with crop provisions or Special Provisions, to 
reflect out-of-pocket expenses that were not incurred by the producer as 
a result of not planting, caring for, or harvesting the crop. 
Indemnities paid for acreage that is prevented from being planted will 
be based on a reduced guarantee as provided for in the crop policy and 
will not be further reduced to reflect expenses not incurred.
    (c) The producer must obtain the same level of coverage 
(catastrophic, limited, or additional) for all acreage of the crop in 
the county unless one of the following applies:
    (1) The applicable crop insurance policy allows the producer the 
option to separately insure individual crop types or varieties. In this 
case each individual type or variety insured by the producer will be 
subject to separate administrative fees. For example, if two grape 
varieties in California are insured under a CAT policy and two varieties 
are insured under a limited coverage policy, a separate administrative 
fee will be charged for each of the four varieties. Although insurance 
may be elected by type or variety in these instances, failure to insure 
a type or variety that is of economic significance may result in the 
denial of other farm program benefits, unless the producer executes a 
waiver of any eligibility for emergency crop loss assistance in 
connection with the crop.
    (2) The producer with limited or additional coverage for the crop in 
the county has acreage that has been designated as ``high risk'' by 
FCIC. Such producers will be able to obtain a High Risk Land Exclusion 
Option for the high risk acreage under the limited or additional 
coverage policies and insure the high risk acreage under a separate CAT 
policy provided that the CAT coverage is obtained from the same 
insurance provider from which the limited or additional coverage was 
obtained. The producer may only obtain CAT from another insurance 
provider if the original insurance provider does not deliver CAT 
policies.
    (d) Catastrophic risk protection.
    (1) Any person who has a bona fide insurable interest in a crop is 
eligible for catastrophic risk protection subject to any limitations 
contained in the crop insurance contract.
    (2) A person who is eligible to receive an indemnity under 
catastrophic risk protection and is also eligible to receive 
compensation for the same crop loss under any other USDA programs, must 
elect the program from which to receive benefits. A payment or program 
benefit under only one of the programs is allowed. If other USDA program 
benefits are not available until after the producer filed a claim for 
indemnity, the producer may refund the total amount of the indemnity and 
receive the other program benefit. Farm ownership and operating loans 
may be obtained from USDA in addition to crop insurance indemnities.
    (3) Catastrophic risk protection may, on a commodity-by-commodity 
basis, be elected on an individual yield and loss basis, or, where 
offered, may be elected on an area yield and loss basis.
    (4) A tobacco producer may insure one hundred percent (100%) of the 
tobacco crop that is identified by a tobacco marketing card issued by 
FSA for a specific producer and Farm Serial Number under one CAT policy, 
provided the producer and other persons each have a share in the crop, 
all the shareholders agree in writing to such arrangement, and none of 
the shareholders hold any other interest in another tobacco crop for 
which they are

[[Page 57]]

required to obtain at least catastrophic coverage. If the tobacco crop 
is insured under one policy:
    (i) The linkage requirements will be satisfied for each shareholder 
of the crop; and
    (ii) The producer insuring the crop will:
    (A) Make application for insurance and provide the name and social 
security number or employer identification number of each person with a 
share in the tobacco crop;
    (B) File the acreage report showing a one-hundred percent (100%) 
share in the crop (all insurable acreage covered by such marketing card 
will be considered as one unit);
    (C) Be responsible to pay one administrative fee for all the 
producers within the county;
    (D) Fulfill all requirements under the crop insurance contract; and
    (E) Receive any indemnity payment under his or her social security 
number or employer identification number and distribute the indemnity 
payments to the other person sharing in the crop.
    (5) A landowner will be allowed to obtain catastrophic coverage to 
satisfy linkage requirements for all other landowners who hold an 
undivided interest in the insurable acreage, provided:
    (i) All landowners agree in writing to such arrangement and have 
their social security number or employer identification number listed on 
the application, without regard to the actual amount of their interest 
in the insured acreage;
    (ii) All landowners must have an undivided interest in the insurable 
acreage;
    (iii) None of the landowners may hold any share in other acreage for 
which they are required to obtain at least catastrophic coverage;
    (iv) The total cumulative liability under the Catastrophic Risk 
Protection Endorsement for all landowners must be $2,500 or less;
    (v) The landowner insuring the crop will:
    (A) Make application for insurance and provide the name and social 
security number or employer identification number of each person with an 
undivided interest in the insurable acreage;
    (B) Be responsible to pay one administrative fee for all the 
producers within the county;
    (C) Fulfill all requirements under the insurance contract; and
    (D) Receive any indemnity payment under the landowner's social 
security number or employer identification number and distribute the 
indemnity payments to the other persons sharing in the crop.
    (E) Limited and additional coverage. (1) A producer who is eligible 
to receive an indemnity under a limited or an additional coverage plan 
of insurance and who also is eligible to receive benefits for the same 
loss under any other USDA program may receive benefits under both 
programs, unless specifically limited by the crop insurance contract or 
by law. However, the total amount received from all such sources may not 
exceed the amount of the actual loss sustained by the insured. The total 
amount of the actual loss is the difference between the fair market 
value of the insured commodity before and after the loss, based upon the 
producer's production records and the highest price election or amount 
of insurance available for the applicable crop. FSA will determine and 
pay the additional amount due the producer for any applicable USDA 
program, after first considering the amount of any crop insurance 
indemnity. Farm ownership and operating loans may be obtained from the 
USDA in addition to crop insurance indemnities.
    (2) Limited or additional coverage may, on a commodity-by-commodity 
basis, be elected on an individual yield and loss basis, or, where 
offered, on an area yield and loss basis.
    (3) Hail and fire coverage may be excluded from the covered causes 
of loss for a crop policy only if additional coverage is elected.



Sec. 400.656  Administrative fees and waivers.

    (a) Catastrophic risk protection and limited coverage. (1) The 
producer must pay an administrative fee each year of fifty dollars 
($50.00) per crop per county, not to exceed two hundred dollars 
($200.00) per county, and six hundred dollars ($600.00) for all counties 
in

[[Page 58]]

which the producer has elected to obtain catastrophic or limited 
coverage.
    (2) The producer must pay this administrative fee for catastrophic 
coverage at the time of application for the first year, and by the 
acreage reporting date for all subsequent years that crop insurance 
coverage is in effect.
    (3) The administrative fee for limited coverage must be paid no 
later than the time that premium is due.
    (4) Except for the initial application year of a crop, payment of an 
administrative fee will not be required for a crop if the insured files 
a bona fide zero acreage report for the crop on or before the acreage 
reporting date. Any producer who falsely files a zero acreage report may 
be subject to administrative and criminal sanctions.
    (5) For Catastrophic coverage, if the administrative fee is not paid 
when due, the crop insurance contract will terminate effective at the 
beginning of the crop year for which the administrative fee was not 
paid. Persons failing to pay the administrative fee, and all persons 
with an insurable interest in the crop under the same contract, may not 
be eligible for certain other USDA program benefits as set out in 
Sec. 400.657 and all such benefits already received for the crop year 
must be refunded. If a producer fails to pay the administrative fee when 
due, the execution of a waiver of any eligibility for emergency crop 
loss assistance in connection with the crop will not be effective for 
any crop year in which payment was not made.
    (6) For limited coverage, persons failing to pay the administrative 
fee by the due date, and all persons with an insurable interest in the 
crop under the same contract, will not be eligible for certain other 
USDA program benefits as set out in Sec. 400.657 and all such benefits 
already received for the crop year must be refunded. Since insurance 
coverage was in effect throughout the insurance period, the producer 
will be required to pay both the administrative fee and the premium for 
that crop year in accordance with provisions regarding any amounts due 
us contained in the applicable crop policy. If a producer fails to pay 
the administrative fee when due, the execution of a waiver of any 
eligibility for emergency crop loss assistance in connection with the 
crop will not be effective for any crop year for which payment was not 
made.
    (7) The administrative fee may not be waived unless the insured 
qualifies as a limited resource farmer.
    (8) The administrative fee will be refunded if the insured has 
previously obtained catastrophic risk protection or limited coverage for 
the crop year, paid the administrative fee, and subsequently purchased 
additional coverage for that same crop in the same county on or before 
the sales closing date. Administrative fees will not be refunded if, 
after the purchase of the additional coverage, the producer still has 
four or more crops insured in the county, or four or more crops insured 
in each of three or more counties, at the catastrophic or limited 
coverage level.
    (9) The administrative fee will not be refunded for the year of 
application even if the insured does not plant the crop for that year.
    (10) For limited coverage, the administrative fee is in addition to 
the amount of premium owed by the person.
    (b) Additional coverage. (1) If additional coverage is elected, the 
insured must pay, in addition to the premium, an administrative fee of 
ten dollars ($10) per crop, per county, for the year of application and 
each subsequent year in which crop insurance coverage remains in effect. 
The administrative fee must be paid no later than the time that premium 
is due.
    (2) Persons failing to pay the administrative fee by the due date, 
and all persons with an insurable interest in the crop under the same 
contract, will not be eligible for certain other USDA program benefits 
as set out in Sec. 400.657, and all such benefits already received for 
the crop year must be refunded. Since insurance coverage was in effect 
throughout the insurance period, the producer will be required to pay 
both the administrative fee and the premium for that crop year in 
accordance with provisions regarding any amounts due us contained in the 
applicable crop policy. If a producer fails to pay the administrative 
fee when due, the execution of a waiver of any eligibility for

[[Page 59]]

emergency crop loss assistance in connection with the crop will not be 
effective for any crop year for which payment was not made.
    (3) Payment of an administrative fee will not be required if the 
insured files a bona fide zero acreage report on or before the acreage 
reporting date for the crop. Any producer who falsely files a zero 
acreage report may be subject to criminal and administrative sanctions.
    (4) The administrative fee for additional coverage is not 
refundable, is not subject to any limits, and may not be waived.
    (c) When obtaining catastrophic risk protection, limited, or 
additional coverage, a producer must provide information regarding crop 
insurance coverage on any crop previously obtained at any other local 
FSA office or from an approved insurance provider, including the date 
such insurance was obtained and the amount paid in administrative fees. 
If the producer paid more than the maximum allowable amount in 
administrative fees, the producer will receive a refund of the excess 
fees paid from the local FSA office or from the approved insurance 
provider that last collected such fees.



Sec. 400.657  Eligibility for other program benefits.

    The producer must obtain at least catastrophic coverage for each 
crop of economic significance in the county in which the producer has an 
insurable share, if insurance is available in the county for the crop, 
unless the producer executes a waiver of any eligibility for emergency 
crop loss assistance in connection with the crop, to be eligible for:
    (a) Benefits under the Agricultural Market Transition Act;
    (b) Loans or any other USDA provided farm credit, including: 
guaranteed and direct farm ownership loans, operating loans, and 
emergency loans under the Consolidated Farm and Rural Development Act 
provided after October 13, 1994; and
    (c) Benefits under the Conservation Reserve Program derived from any 
new or amended application or contract executed after October 13, 1994.



Sec. 400.658  Coverage for acreage that is prevented from being planted.

    For the 1995 and succeeding crop years, the insurance period for 
prevented planting for those crop insurance policies containing 
prevented planting coverage shall be extended so that prevented planting 
coverage begins:
    (a) On the sales closing date for the insured crop in the county for 
the crop year the application for insurance is accepted; or
    (b) For any crop year following the crop year the application for 
insurance is accepted, or for any crop year the insurance policy is 
transferred to a different insurance provider, on the sales closing date 
for the insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
the producer makes application and purchases a corn crop insurance 
policy for the 1995 crop year (which is not terminated or canceled 
during or after the 1995 crop year), prevented planting coverage for the 
1996 crop year began on the 1995 sales closing date. Cancellation for 
the purpose of transferring the policy to a different insurance provider 
when there is no lapse in coverage will not be considered terminated or 
canceled coverage for the purpose of the preceding sentence.



Sec. 400.659  Transitional yields for forage or feed crops, 1995-1997 crop years.

    (a) For the 1995 through the 1997 crop years, producers who produce 
feed or forage will be eligible for an adjustment in the assigned yield 
described in 7 CFR 400.55(b)(1) if:
    (1) The feed or forage is primarily for use by the producer as 
livestock, dairy, or poultry operations; and
    (2) At least fifty percent (50%) of the producer's net farm income 
is derived from the livestock, dairy, or poultry operations.
    (b) Producers that qualify under paragraph (a) of this section will 
receive an assigned yield, if required, under 7 CFR 400.55(b)(1) equal 
to eighty percent (80%) of the T- or D-Yield.

[[Page 60]]



PART 401--GENERAL CROP INSURANCE REGULATIONS--REGULATIONS FOR THE 1988 AND SUBSEQUENT CONTRACT YEARS--Table of Contents




Sec.
401.1  Applicability.
401.2  Availability of Federal crop insurance.
401.3  Premium rates, production guarantees or amounts of insurance, 
          coverage levels, and prices at which indemnities shall be 
          computed.
401.4  OMB control numbers.
401.5  Creditors.
401.6  Good faith reliance on misrepresentation.
401.7  The contract.
401.8  The application and policy.
401.9--401.100  [Reserved]
401.101  Wheat endorsement.
401.102  The winter coverage option for wheat.
401.103  Barley endorsement.
401.104  Winter coverage option for barley.
401.105  Oat endorsement.
401.106  Rye endorsement.
401.107  Late planting agreement option.
401.108  Prevented planting endorsement.
401.109  Hybrid sorghum seed endorsement.
401.110  Almond endorsement.
401.111  Corn endorsement.
401.112  Corn silage option.
401.113  Grain sorghum endorsement.
401.114  Canning and processing tomato endorsement.
401.115  Texas citrus endorsement.
401.116  Flaxseed endorsement.
401.117  Soybean endorsement.
401.118  Canning and processing bean endorsement.
401.119  Cotton endorsement.
401.120  Rice endorsement.
401.121  ELS cotton endorsement.
401.122  Stonefruit endorsement.
401.123  Safflower seed crop endorsement.
401.124  Sunflower seed crop endorsement.
401.125  Fig endorsement.
401.126  Onion endorsement.
401.127  Cranberry endorsement.
401.129  Tobacco (guaranteed plan) endorsement.
401.130  Grape endorsement.
401.131  High-risk land exclusion option.
401.133  Sugarcane endorsement.
401.134  Texas citrus tree endorsement.
401.135  Malting barley option.
401.137  Fresh market tomato minimum value option.
401.138  Fresh market sweet corn endorsement.
401.139  Fresh market tomato (dollar plan) endorsement.
401.140  Pear endorsement.
401.142  Raisin endorsement.
401.143  Florida citrus endorsement.
401.146  Fresh plum endorsement.

    Authority: 7 U.S.C. 1506(l), 1506(p).

    Source: 52 FR 28447, July 30, 1987, unless otherwise noted.



Sec. 401.1   Applicability.

    The provisions of this part are applicable only to crops for which a 
crop endorsement is published as a section to 7 CFR part 401 and then 
only for the crops and crop years designated by the applicable section.



Sec. 401.2   Availability of Federal crop insurance.

    (a) Insurance shall be offered under the provisions of this section 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The crops and counties shall be designated by the 
Manager of the Corporation from those approved by the Board of Directors 
of the Corporation.
    (b) The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation offer 
contracts containing substantially the same terms and conditions as the 
contract set out in this part. These contracts are clearly identified as 
being reinsured by the Corporation.
    (c) No person may have in force more than one contract on the same 
crop for the crop year, whether insured by the Corporation or insured by 
a company which is reinsured by the Corporation
    (d) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, all such contracts shall be 
voided for that crop year and the person will be liable for the premium 
on all contracts, unless the person can show to the satisfaction of the 
Corporation that the multiple contract insurance was inadvertent and 
without the fault of the person.
    (e) If the multiple contract insurance is shown to be inadvertent 
and without the fault of the insured, the contract with the earliest 
application will be valid and all other contracts on that

[[Page 61]]

crop for that crop year will be cancelled. No liability for indemnity or 
premium will attach to the contracts so cancelled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract for 
delinquent premiums.
    (g) An insured whose contract with the Corporation or with a company 
reinsured by the Corporation under the Act has been terminated because 
of violation of the terms of the contract is not eligible to obtain 
multi-peril crop insurance under the Act with the Corporation or with a 
company reinsured by the Corporation unless the insured can show that 
the default in the prior contract was cured prior to the sales closing 
date of the contract applied for or unless the insured can show that the 
termination was improper and should not result in subsequent 
ineligibility
    (h) All applicants for insurance under the Act must advise the 
agent, in writing, at the time of application, of any previous 
applications for insurance under the Act and the present status of any 
such applications or insurance.



Sec. 401.3   Premium rates, production guarantees or amounts of insurance, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production guarantees 
or amounts of insurance, coverage levels, and prices at which 
indemnities shall be computed for the insured crop which will be 
included in the actuarial table on file in the applicable service 
offices for the county and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance or a coverage level and price from 
among those contained in the actuarial table for the crop year.



Sec. 401.4   OMB control numbers.

    OMB control numbers are contained in Subpart H to Part 400 in Title 
7 CFR.



Sec. 401.5   Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 401.6   Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the crop insurance contract, 
whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 401.7   The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the crop as 
provided in the policy

[[Page 62]]

and the crop endorsement. The contract shall consist of the application, 
the policy, the crop endorsement and any amendments thereto, and the 
county actuarial table. Changes made in the contract shall not affect 
its continuity from year to year. No indemnity shall be paid unless the 
insured complies with all terms and conditions of the contract. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 401.8   The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person who wishes to participate in the 
program, to cover such person's share in the insured crop as landlord, 
owner-operator, or tenant. The application shall be submitted to the 
Corporation at the service office on or before the applicable sales 
closing date on file in the service office.
    (b) The Corporation may reject or discontinue the acceptance of 
applications in any county or of any individual application upon its 
determination that the insurance risk is excessive. The Manager of the 
Corporation is authorized in any crop year to extend the sales closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable service offices and publishing a notice 
in the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications. If the sales 
closing date falls on a Saturday or Sunday or legal holiday when the 
service office is not open, the application must be submitted by the 
close of business on the next business day.
    (c) In accordance with the provisions governing changes in the 
contract contained in previous policies and regulations issued by FCIC, 
a contract in the form provided for in this section will come into 
effect as a continuation of the contract issued under such prior 
regulations, without the filing of a new application.
    (d) The application is found at subpart D of part 400--General 
Administrative Regulations (7 CFR 400.37 and 400.38) and may be amended 
from time to time for subsequent crop years. The provisions of the Crop 
Insurance Policy are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      General Crop Insurance Policy

(This is a continuous contract. Refer to section 15.)

    Note: This is a contract with the Federal Crop Insurance 
Corporation, a United States Government agency. The terms of the 
contract are published in the Federal Register under the provisions of 
the Federal Register Act (44 U.S.C. 1501), and may not be waived or 
varied in any way by the Crop Insurance Agent or any other agent or 
employee of FCIC.

    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy and the applicable endorsement in return for the premium and your 
compliance with ALL provisions of the crop insurance contract. If a 
conflict exists between the terms of this policy and the crop 
endorsement, the terms of the crop endorsement control.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation. Unless the context indicates 
otherwise, use of the plural form of a word includes the singular and 
use of the singular form of the word includes the plural.

                          Terms and Conditions

                            1. Causes of Loss

    a. You are insured only against unavoidable loss of production 
directly caused by specific causes of loss contained in the crop 
endorsement.
    b. We do not insure against any loss caused by:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (2) The failure to follow recognized good farming practices for the 
insured crop;
    (3) Water contained by any governmental, public, or private dam or 
reservoir project;
    (4) Failure or breakdown of irrigation equipment or facilities;
    (5) Failure to carry out a good irrigation practice for the insured 
crop;
    (6) Any cause not specified in the crop endorsement as an insured 
cause of loss; or
    (7) Any other cause set out as an uninsured cause of loss in the 
crop endorsement.

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                   2. Crop, Acreage, and Share Insured

    a. The crop insured is the crop specified in the crop endorsement 
and no other, which is planted for harvest as the insured crop, which is 
grown on insurable acreage, and for which a guarantee or amount of 
insurance and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year is the insurable acreage 
as designated by the actuarial table, which is planted to the insured 
crop and in which you have a share (as reported by you or as determined 
by us, whichever we elect).
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured crop at the time insurance attaches. However, only 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share at the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. Unless the application clearly indicates that insurance is 
requested for a partnership or joint venture, insurance will cover only 
the crop share of the person making application for insurance.
    e. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) Which is irrigated and an irrigated practice is not provided by 
the actuarial table or the crop endorsement (you may elect to insure 
irrigated acreage on a non-irrigated basis by reporting it as non-
irrigated on the acreage report and adjusting the basis used to 
establish your guarantee accordingly);
    (3) Which is destroyed, it is practical to replant to the insured 
crop, but the insured crop is not replanted;
    (4) Initially planted after the final planting date, unless we allow 
and you agree in writing on our form, to coverage reduction (the Late 
Planting Option applies only on selected crops);
    (5) Of a volunteer crop;
    (6) Planted to a type or variety of the crop not established as 
adapted to the area or excluded by the actuarial table;
    (7) Planted with a crop other than the insured crop;
    (8) Which does not meet rotation requirements required by the crop 
endorsement or actuarial table;
    (9) Of a second crop following the same crop (insured or uninsured) 
harvested in the same crop year unless specifically permitted by the 
crop endorsement or the actuarial table;
    (10) Used for wildlife protection or management;
    (11) On which a crop has not been planted and harvested in at least 
one of the three previous crop years unless it is determined the acreage 
has been in a soil conserving legume or unless the acreage meets the 
definition of Agricultural Stabilization and Conservation Service (ASCS) 
``cropland'' acreage; or
    (12) Which has been strip mined unless we agree in writing to insure 
such acreage.
    f. If insurance is provided for an irrigated practice, we will 
insure as irrigated, and you must report as irrigated, only the acreage 
for which you have adequate facilities and water, at the time insurance 
attaches, to carry out a good irrigation practice for the insured crop.
    g. Acreage which is planted for the development or production of 
hybrid seed or for experimental purposes is not insured, unless 
permitted by the crop endorsement or unless we agree, in writing, to 
insure such acreage.
    h. We may restrict the amount of acreage which we will insure to the 
amount allowed under any acreage limitation program established by the 
United States Department of Agriculture if we advise you of that limit 
prior to the time insurance attaches.
    i. You must not obtain any other crop insurance under the Federal 
Crop Insurance Act (Multiple Peril Crop Insurance Policy or Federal Crop 
Insurance Policy) on your share of the insured crop. More than one 
policy on your share will result in our voiding the policies and 
collecting the premium from you unless the violation of this provision 
is found by us to have been inadvertent. If we determine that the 
violation was inadvertent, the policy with the earliest date of 
application will be the one in force and all other policies will be 
void. Nothing in this paragraph prevents the insured from obtaining 
other hail and fire insurance not issued under the Act and which is 
subject to the provisions of section 9 hereof.
    j. Although your violation of a number of federal statutes including 
the Federal Crop Insurance Act may cause cancellation, termination, or 
voidance of your insurance contract, you are specifically directed to 
the provisions of Title XII of the Food Security Act of 1985 (Public Law 
99-198) and the regulations promulgated thereunder, generally referred 
to as the controlled substance provisions. Your insurance policy will be 
cancelled if you are determined to be in violation of these provisions. 
We will recover any and all monies paid to you or received by you and 
your premium will be refunded.

       3. Report of Acreage, Share, and Practice (Acreage Report)

    You must report on our form:
    a. All insured and uninsured acreage of the crop in the county in 
which you have a share;
    b. The practice; and
    c. Your share at the time insurance attaches.

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    The insurable practices are contained in the actuarial table. You 
must designate separately any acreage which is not insurable. The report 
must indicate if you do not have a share of the insured crop in the 
county. This report must be submitted each year on or before the acreage 
reporting date for the crop for the county. This report may be used as 
the basis to determine your premium and indemnity or we may compute 
premiums and indemnities on the acreage, share, and practice which is 
determined to have actually been in existence. If you do not submit this 
report by the reporting date, we may elect to determine, by unit, the 
insured acreage, share, and practice or we may deny liability on any 
unit. Because underreporting of acreage and share would have the effect 
of reducing your premium and any indemnity which may be due, you may not 
revise your report after the reporting date except with our approval. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines at the time of adjusting a loss.

 4. Production Guarantees, Coverage Levels or Amounts of Insurance, and 
                    Prices for Computing Indemnities

    a. The production guarantees or amounts of insurance, coverage 
levels, and prices for computing indemnities are contained in the 
actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the amount of insurance or coverage level and 
price election on or before the sales closing date for the crop year.
    d. You must report production to us for the previous crop year by 
the earlier of the acreage reporting date or 45 days after the sales 
closing date for the current crop year (See section 21).
    If you do not provide the required production report, we will assign 
a yield for the previous crop year. The yield assigned by us will not be 
more than 75% of the yield used by us to determine your guarantee for 
the previous crop year. The production report or assigned yield will be 
used to compute your production history for the purpose of determining 
your guarantee for the current crop year. If you have filed a claim for 
any crop year, the production used to determine the indemnity payment 
will be the production report for that year.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time insurance 
attaches. The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches, and 
where applicable, times any applicable premium adjustment factor shown 
on the actuarial table.
    b. If you are eligible for a premium reduction based on your 
experience under previous crop policies, you may retain that experience 
under certain conditions as set out in the crop endorsement through the 
1991 crop year.
    c. Your premium payment, plus any accrued interest, will be 
considered delinquent if any amount due us is not paid on or before the 
termination date specified in the crop endorsement.

                            6. Amounts Due Us

    a. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance due us. For the purpose of premium amounts 
due us, the interest will start on the first day of the month following 
the first premium billing date.
    b. For the purpose of any other amounts due us, such as repayment of 
indemnities found not to have been earned, interest will start on the 
date that notice is issued to you for the collection of the unearned 
amount. Interest and penalties will be charged in accordance with 31 
U.S.C. 3717 and 4 CFR 102.13. The penalty for accounts more than 90 days 
past due (31 U.S.C. 3717(e)(2)) is six percent (6%) per annum. Interest 
on any amount due us found to have been received by you because of 
fraud, misrepresentation or presentation by you of a false claim will 
start on the date you received the amount with the 6% penalty beginning 
90 days after the notice of amount due is issued to you. This interest 
is in addition to any other amount found to be due under any other 
federal criminal or civil statute.
    c. All amounts paid will be applied first to reduction of accrued 
interest, then to reduction of the principal balance.
    d. If we determine that it is necessary to contract with a 
collection agency or to employ an attorney to assist in collection, you 
agree to pay all of the expenses of collection. Those expenses will be 
paid before the application of any amounts to interest or principal.
    e. Any amount due us may be deducted from any indemnity payment due 
you or from any replanting payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies and from any amounts due you 
from any other United States Government Agency.

                           7. Insurance Period

    Insurance attaches on each unit or part of a unit when the insured 
crop is planted or when the application is properly signed,

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completed, and delivered to your service office, whichever is later, or 
on the calendar date for the beginning of the insurance period if 
specified in the crop endorsement, and ends at the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit;
    (c) Final adjustment of a loss on a unit; or
    (d) The calendar date for the end of the insurance period contained 
in the crop endorsement.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) You want our consent to replant the insured crop damaged by an 
insured cause of loss;
    (b) During the period before harvest the insured crop on a unit is 
damaged by an insured cause of loss and you decide not to further care 
for or harvest any part of it;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage due to an insured cause of loss occurs.
    Insured acreage may not be put to another use until we have 
appraised the insured crop and given written consent. We will not 
consent to another use if the insured crop can be replanted. You must 
notify us when such acreage is replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If a loss is anticipated by you on any unit within 15 days of or 
during harvest, notice of probable loss must be given to us within 72 
hours of your discovery. A representative sample of the unharvested 
insured crop, as required by the crop endorsement, must remain 
unharvested for a period of 15 days from the date of notice unless we 
give you written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you 
intend to claim an indemnity on any unit, a notice of loss must be given 
not later than 10 days after the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You may not destroy and replant any of the insured crop on which 
you intend to claim a replanting payment, until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the insured crop which is not harvested.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production and, if applicable, the value 
received for the insured crop on the unit and that any loss of 
production or value has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit in accordance with 
the applicable crop endorsement and the actuarial table.
    d. If the information reported by you on the acreage report results 
in a lower premium than the premium determined to be due on the basis of 
the share, acreage, practice or type determined to actually exist, the 
guarantee on the unit will be computed on the information contained in 
the acreage report but all production from insurable acreage, whether or 
not reported as insurable, will count against the guarantee.
    e. The total production to be counted for a unit will include all 
production determined in accordance with the crop endorsement.
    f. The amount of production of any unharvested insured crop may be 
determined on the basis of our field appraisals conducted after the end 
of the insurance period.
    g. If you elect to exclude hail and fire as insured causes of loss 
and the insured crop is damaged by hail or fire, appraisals will be made 
in accordance with the applicable Form FCI-78 or FCI-78-A, ``Request To 
Exclude Hail and Fire.''
    h. If allowed by the crop endorsement, a replanting payment may be 
made on an insured crop replanted after we have given consent and the 
acreage replanted is at least the lesser of 20 acres or 20 percent of 
the insured acreage for the unit (as determined on the final planting 
date).
    (1) No replanting payment will be made on acreage:
    (a) On which our appraisal establishes that production will exceed 
the level set by the crop endorsement;
    (b) Initially planted prior to the date established by the actuarial 
table; or
    (c) On which one replanting payment has already been allowed for the 
crop year.
    (2) The replanting payment per acre will be your actual cost for 
replanting, but will not exceed the amount determined in accordance with 
the crop endorsement.

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    If the information reported by you on the acreage report results in 
a lower premium than the premium determined to be due based on the 
acreage, share, practice or type determined actually to have existed, 
the replanting payment will be reduced proportionately.
    i. You must not abandon any acreage to us.
    j. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    k. An indemnity will not be paid unless you comply with all policy 
provisions.
    l. Under no circumstances will we be liable for the payment of 
damages (compensatory, punitive, or other), attorney's fees, or other 
charges in connection with any claim for indemnity, whether we approve 
or disapprove such claim. (State and local laws to the contrary are not 
applicable to this insurance contract.) We will pay simple interest 
computed on the net indemnity ultimately found to be due by us or by the 
final judgment of a court of competent jurisdiction, from and including 
the 61st day after the date you sign, date and submit to us the properly 
completed FCIC claim form. Interest will be paid only if the reason for 
our failure to timely pay is not due to your failure to provide 
information or other material necessary for the computation or payment 
of the indemnity The interest rate will be that established by the 
Secretary of the Treasury under Section 12 of the Contract Disputes Act 
of 1978 (41 U.S.C. 611), and published in the Federal Register 
semiannually on or about January 1 and July 1 of each year and will vary 
with each publication.
    m. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    n. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. (For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.)

                        10. Concealment or Fraud

    We may void the insurance contract on all crops without affecting 
your liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to this 
or any other contract with us. The voidance will be effective as of the 
beginning of the crop year with respect to which such act or omission 
occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to the applicable indemnity. The transfer must be on 
our form and approved by us. Both you and the person to whom you 
transfer your interest are jointly and severally liable for the payment 
of the premium. The transferee has all rights and responsibilities under 
the contract consistent with the transferee's interest.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us. The assignee may submit all notices and 
forms required to protect the insurance contract and to claim an 
indemnity.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep records of the harvesting, storage, shipment, sale, or 
other disposition of all the insured crop produced on each unit, and 
separate records including the same information for production of the 
crop from any uninsured acreage. The records must be kept for three 
years from the end of the crop year to which they pertain. Failure to 
keep and maintain such records may result in: (a) Cancellation of the 
contract for that crop year; (b) assignment of production to units by 
us; or (c) a determination that no indemnity is due, whichever we elect. 
Any person designated by us will have access to such records and the 
farm for purposes related to the contract.

            15. Contract Term, Cancellation, and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue

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in force for each succeeding crop year unless canceled or terminated as 
provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. If the amount is paid by deduction from an indemnity 
or other U.S. Department of Agriculture payment, the date of payment:
    (1) If deducted from an indemnity, will be the date you sign the 
properly completed claim form; or
    (2) If deducted from a payment under another program administered by 
the United States Department of Agriculture, will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are contained in the crop 
endorsement.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election or amount of insurance at which indemnities 
are computed is no longer offered, the actuarial table will provide the 
price election or amount of insurance which you are conclusively 
presumed to have elected unless you elect a different price election or 
amount of insurance prior to the sales closing date. All contract 
changes will be available at your service office by the contract change 
date contained in the crop endorsement. Acceptance of changes will be 
conclusively presumed in the absence of notice from you to cancel the 
contract.

                          17. Meaning of Terms

    For the purposes of the crop insurance contract:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amounts of insurance or production 
guarantees, coverage levels or amounts of insurance, premium rates, 
prices for computing indemnities, practices, insurable and uninsurable 
acreage, and related information regarding crop insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. ASCS farm serial number means the number assigned to the farm by 
the ASCS County Office Committee.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop endorsement means the endorsement to the policy contained in 
this part which sets forth the terms and conditions of insurance 
applicable to the named crop.
    f. Cropland means any acreage considered by ASCS for program payment 
purposes.
    g. Crop year means the period within which the crop is normally 
grown and will be designated by the calendar year in which the insured 
crop is normally harvested.
    h. Harvest (Defined in the crop endorsement).
    i. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    j. Insured means the person who submitted the application accepted 
by us and does not extend to any other person having a share or interest 
in the crop such as a partnership, landlord, or any other person unless 
specifically indicated on the application and accepted by us.
    k. Insured crop means the crop insured under the provisions of the 
applicable crop endorsement.
    l. Loss ratio means the ratio of indemnity to premium.
    m. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    n. Production report means previous year yield information including 
planted acreage and harvested production, reported by you, that is 
supportable by written verifiable records from a buyer of the insured 
crop or by measurement of farm stored production.
    o. Section means a unit of measure under the rectangular survey 
system describing a tract of land usually one mile square and generally 
containing approximately 640 acres.
    p. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.

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    q. Tenant means a person who rents land from another person for a 
share of the crop or a share of the proceeds therefrom.
    r. Unit means all insurable acreage of the crop in the county on the 
date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another specific 
entity on a share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the insured crop on such land will 
be considered as owned by the lessee. Land which would otherwise be one 
unit may, in certain instances, be divided according to guidelines 
contained in the applicable crop endorsement or by written agreement 
with us. Units will be determined when the acreage is reported but may 
be adjusted to reflect the actual unit structure when adjusting a loss; 
however, no further division may be made at loss adjustment time. We may 
consider any acreage and share thereof reported by or for your spouse or 
child or any member of your household to be your bona fide share or the 
bona fide share of any other person having an interest therein.
    s. Verifiable records mean documents indicating a quantity of 
production or acreage determined by us, other government agencies, 
buyers, processors, packers, storage facilities or other third parties 
acceptable to us. The documents must include the name of the producer 
and entity making the measurement, the date of the measurement, and the 
crop type, class, or variety.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations (7 CFR 
part 400, subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice. If the date by which you are required to 
submit an application or a report or notice falls on a Saturday, Sunday, 
or Federal holiday if your service office is not open for business on 
such date such notice or report must be submitted on the next business 
day.

                     21. Dates, Reports, and Notices

    To preserve your rights under this insurance contract you are 
required to file a number of reports and notices with us by certain 
dates. The actual content requirements and time limits of those reports 
and notices are set out elsewhere in this contract and you must refer to 
those sections for those requirements.
    As a convenience to you and without limitation on our rights under 
this contract, a short description of most of the dates, reports and 
notices have been compiled in this section. Omission of any date, report 
or notice, or are referred to the crop endorsement for any such 
requirements.)
    a. ``Acreage report''--A report required by section 3 of this 
contract. This report contains, in addition to other information, the 
report of the insured's share of all acreage of an insured crop in the 
county whether insurable or uninsurable and must be filed prior to the 
final acreage reporting date contained in the actuarial table for the 
county for the crop insured.
    b. ``Another use, Notice of''--The written notice required when an 
insured wishes to put acreage to another use (See: Section 8).
    c. ``Application''--A form required by Subpart D of Part 400 of 7 
CFR and each individual program regulation. The application for 
insurance form must be completed and filed in the service office prior 
to the sales closing date (contained in the actuarial table) of the 
initial insurance year for each crop year for which an insurance 
endorsement is requested by the insured.
    d. ``Assignment of indemnity''--A transfer of contract rights, made 
on our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    e. ``Billing date''--The first date upon which an insured is billed 
for insurance coverage and which generally falls at or near harvest 
time. Interest accruing on any unpaid premium balance attaches 30 days 
after the billing date.
    f. ``Cancellation date''--The date on or before which the insured or 
the Corporation may cancel the insurance policy for the subsequent crop 
year by giving written notice.
    g. ``Claim for indemnity'' (See: Section 9)--A claim made by the 
insured for damage or loss to an insured crop and submitted to the 
Corporation not later than 60 days after the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit; or

[[Page 69]]

    (3) The calendar date for the end of the insurance period.
    h. ``Claim for indemnity, Notice of''--The loss notice required to 
be given by the insured not later than 10 days after certain occurrences 
(See: Section 8).
    i. ``Contract change date''--The date by which FCIC makes any 
contract changes available for inspection in the service office (See: 
Section 16).
    j. ``Damage, notice of''--See: Probable loss, Notice of.
    k. ``Earliest planting date''--The earliest date established for 
planting the insured crop and qualifying for a replant payment (See: 
Actuarial Table and Section 9.h.(1)(b)).
    l. ``End of insurance period, Date of''--The date upon which the 
insured's crop insurance coverage ceases (See: Section 7).
    m. ``Insurance attaches, Date''--The date insurances attaches on the 
crop, generally after planting is completed or the calendar date in the 
crop endorsement (See: Section 7).
    n. ``Intent to abandon, Notice of''--The written notice to the 
Corporation by the insured indicating that because of damage from an 
insured cause, the insured has decided to no longer care for or harvest 
any part of the crop.
    o. ``Late planting agreement''--Available on selected crops. An 
amendment to the insurance contract which allows an insured whose 
planting has been delayed, to insure a crop planted after the final 
planting date in exchange for a reduction in coverage.
    p. ``Probable loss, notice of''--A written notice required to be 
filed in the service office whenever an insured believes that the 
insured crop has been damaged to the extent that a loss is probable 
(See: Section 8).
    q. ``Production report''--A written record showing the insured's 
annual production and used to determine the yield guarantee. (See: 
Section 4). The report contains previous year yield information 
including planted acreage and harvested production. This report must be 
supported by written records from a warehouseman or buyer of the insured 
crop or by measurement of farm stored production.
    r. ``Replanting, Notice of completion''--The notice required to be 
given by the insured to the Corporation when replanting is completed 
(See: Section 8).
    s. ``Reporting date''--The acreage reporting date (contained in the 
Actuarial Table) by which you are required to report all your insurable 
and uninsurable acreage in the county in which you have a share and your 
share at the time insurance attaches.
    t. ``Sales closing date''--The date contained in the actuarial table 
on file in the respective service office which sets out the final date 
when an application for insurance may be filed.
    u. ``Termination date''--The date upon which the Corporation may 
cancel the insurance policy for non-payment of premium.
    (e) Notwithstanding the terms of the crop insurance endorsement and 
any contract for crop insurance under the provisions of this part, 
coverage under the terms of such crop insurance endorsement will be 
effective subject to the availability of appropriations.

[52 FR 28447, July 30, 1987, as amended at 52 FR 36401, Sept. 29, 1987; 
53 FR 9099, Mar. 21, 1988; 53 FR 16540, May 10, 1988, and 54 FR 9766, 
Mar. 8, 1989; 54 FR 20370, May 11, 1989; 55 FR 6972, Feb. 28, 1990; 55 
FR 50812, Dec. 11, 1990; 56 FR 13577, Apr. 3, 1991; 61 FR 39050, July 
26, 1996]
Secs. 401.9--401.100  [Reserved]



Sec. 401.101   Wheat endorsement.

    The provisions of the Wheat Crop Insurance Endorsement for the 1988 
through the 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Wheat Endorsement

                             1. Insured Crop

    a. The crop insured will be wheat planted for harvest as grain.
    b. In addition to the wheat not insurable in section 2 of the 
general crop insurance policy, we do not insure any wheat:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such wheat; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.

[[Page 70]]

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the wheat policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when the wheat 
is planted except that:
    (1) In counties with an April 15 cancellation date, insurance will 
attach on fall-planted wheat on April 16 following planting if it is 
determined that there is an adequate stand on this date to produce a 
normal crop;
    (2) If you have optional winter coverage in effect, or if optional 
winter coverage is provided in the county and you purchase such coverage 
before the winter wheat sales closing date, insurance will attach at the 
time of planting; or
    (3) If optional winter coverage is provided in the county and you 
fail to purchase such coverage and it is determined that there is an 
adequate stand on the spring final planting date to produce a normal 
crop, insurance will attach on the spring final planting date.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the wheat;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or
    (4) The following dates of the calendar year in which wheat is 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Wheat acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided by 
the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured wheat is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The wheat is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured wheat is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Wheat planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, in case of damage or probable loss you must give 
us written notice if you want to harvest the wheat for silage or hay. 
After such notice is given, we will appraise the potential grain 
production. If we are unable to do so before harvest, you may harvest 
the crop provided representative samples are left for appraisal 
purposes. For purposes of this section and section 8 of the general crop 
insurance policy the representative sample of the unharvested crop must 
be at least 10 feet wide and the entire length of the field.
    b. A replant payment is available under this endorsement only in 
those counties where a Wheat Winter Coverage Option is available and 
only if the insured has elected the Wheat Winter Coverage Option. The 
replant payment will be the actual cost of replanting not to exceed the 
lesser of 20 percent of the production guarantee or 3 bushels multiplied 
by the price election multiplied by your share.

[[Page 71]]

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of wheat to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature wheat production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 13.5 percent; or
    (2) Wheat, which due to insurable causes, grades not higher than 
U.S. No. 5 because of test weight, total damage, or shrunken and broken 
kernels, or which meets the special grade requirements for ``garlicky'', 
``smutty'', ``light smutty'', or ``ergoty'', (all as graded by a grain 
grader licensed by the Federal Grain Inspection Service or a licensed 
grader under the United States Warehouse Act) will be adjusted by:
    (a) Dividing the value per bushel of the insured wheat by the price 
per bushel of U.S. No. 2 wheat which does not grade garlicky, smutty, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such wheat.
    The applicable price for No. 2 wheat will be the local market price 
on the earlier of the day the loss is adjusted or the day the insured 
wheat is sold.
    (3) Any harvested production from other volunteer plants growing in 
the wheat will be counted as wheat on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good wheat farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of wheat becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
         State and county            Cancellation date  Termination date
------------------------------------------------------------------------
All Alaska Counties except those    Apr. 15...........  Apr. 15.        
 listed below; Alamosa, Conejos,                                        
 Costilla, Rio Grande, and                                              
 Saguache Counties, Colorado;                                           
 Maine; Minnesota; Daniels,                                             
 Roosevelt, Sheridan, and Valley                                        
 Counties, Montana; New Hampshire;                                      
 North Dakota; Corson, Walworth,                                        
 Edmunds, Faulk, Spink, Beadle,                                         
 Jerauld, Aurora, Douglas, and Bon                                      
 Homme Counties, South Dakota and                                       
 all South Dakota Counties north                                        
 and east thereof; Vermont; and                                         
 Trempealeau, Jackson, Wood,                                            
 Portage, Waupaca, Outagamie,                                           
 Brown, and Kewaunee Counties,                                          
 Wisconsin and all Wisconsin                                            
 Counties north and west thereof;                                       
 Big Horn, Fremont, Hot Springs,                                        
 Park, and Washakie Counties,                                           
 Wyoming.                                                               
All other Colorado Counties except  Sept. 30..........  Sept. 30.       
 those listed below; all Iowa                                           
 Counties except those listed                                           
 below; Kansas; Nebraska; New                                           
 Mexico; Oklahoma; Texas; all                                           
 other Wisconsin Counties and all                                       
 other states except those listed                                       
 below.                                                                 
Archuleta, Custer, Delta, Dolores,  Sept. 30..........  Nov. 30.        
 Eagle, Garfield, Grand, La Plata,                                      
 Mesa, Moffat, Montezuma,                                               
 Montrose, Ouray, Pitkin, Rio                                           
 Blanco, Routt, and San Miguel                                          
 Counties, Colorado; Connecticut;                                       
 Plymouth, Cherokee, Buena Vista,                                       
 Pocahontas, Humboldt, Wright,                                          
 Franklin, Butler, Black Hawk,                                          
 Buchanan, Delaware, and Dubuque                                        
 Counties, Iowa and all Iowa                                            
 Counties north thereof;                                                
 Massachusetts; all other Montana                                       
 Counties; New York; Rhode Island;                                      
 all other South Dakota Counties;                                       
 and all other Wyoming Counties.                                        
Matanuska-Susitna County, Alaska;   Oct. 31...........  Nov. 30.        
 Arizona; California; Idaho;                                            
 Nevada; Oregon; Utah; and                                              
 Washington.                                                            
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and August 15 preceding the cancellation 
date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to wheat during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount

[[Page 72]]

for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. For example, assume you 
insure one unit in which you have a 100 percent share. The unit consists 
of 150 acres, of which 50 acres were planted timely, 50 acres were 
planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest wheat final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For all spring-planted wheat acreage (and fall-planted wheat 
acreage only where insurance is not offered for spring-planted wheat) 
which is planted after the final planting date but on or before 25 days 
after the final planting date, the production guarantee for each acre 
will be reduced for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the wheat continues after the final planting 
date, or you are prevented from planting during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If your were prevented from planting wheat (see subparagraph 
11.(i), you may elect:
    (i) To plant wheat during the late planting period. The production 
guarantee for such acreage will be determined in accordance subparagraph 
10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted wheat. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant wheat after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied 0.50). Production to count for 
such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for wheat in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to wheat on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for wheat reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or

[[Page 73]]

    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to wheat during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under any irrigated practice 
will be limited to the number of wheat acres properly prepared to carry 
out an irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for wheat in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than wheat, has been planted and 
is intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of wheat acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of wheat on one optional unit and 40 acres of wheat on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero). If you report more wheat acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible acreage to insured units based on the number of 
prevented planting acres and share you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to wheat in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted wheat in counties for 
which the Actuarial Table designates a spring final planting date, or 
the acreage reporting date for fall-planted wheat in counties for which 
the Actuarial Table designates a fall final planting date only, even 
though you may elect to plant the acreage after the late planting 
period. Any acreage you report as eligible for prevented planting 
coverage which we determine is not eligible will be deleted from 
prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Adequate stand--a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days--calendar days.
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured wheat must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated wheat acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Late planting period--(applicable only to spring-planted wheat 
acreage and fall-planted wheat acreage only where insurance is not 
offered for spring-planted wheat)-the period which begins the day after 
the final planting date for wheat and ends twenty-five (25) days after 
the wheat final planting date.
    (h) Latest wheat final planting date--
    (1) The final planting date for spring-planted wheat in all counties 
for which the Actuarial Table designates a final planting date for 
spring-planted wheat only;
    (2) The final planting date for fall-planted wheat in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted wheat only; or
    (3) The final planting date for spring-planted wheat in all counties 
for which the Actuarial Table designates final planting dates

[[Page 74]]

for both spring-planted and fall-planted wheat.
    (i) Prevented planting--inability to plant wheat with proper 
equipment by:
    (1) The latest wheat final planting date in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant wheat due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the latest wheat 
final planting date in the county or within the late planting period.
    (j) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--wheat planted by the final planting date, as 
established by the Actuarial Table, for wheat in the county to be 
planted for harvest in the crop year.

[52 FR 28447, July 30, 1987, as amended at 53 FR 36781, Sept. 22, 1988; 
54 FR 20504, May 12, 1989; 58 FR 33508, June 18, 1993; 58 FR 67631, Dec. 
22, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.102  The winter coverage option for wheat.

    The Winter Coverage Option for wheat is available in the following 
counties and states beginning in the 1988 through 1994 crop years:

                              South Dakota

Bennett
Brule
Buffalo
Butte
Stanley
Charles Mix
Custer
Dewey
Fall River
Sully
Gregory
Haakon
Hand
Harding
Todd
Hughes
Hyde
Jackson
Jones
Tripp
Lawrence
Lyman
Meade
Mellette
Ziebach
Pennington
Perkins
Potter
Shannon

    The provisions of the Winter Coverage Option for Wheat for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                Wheat Endorsement--Winter Coverage Option

                      (This is a continuous Option)

Insured's Name__________________________________________________________
Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________
    In consideration of the additional premium as set by the Actuarial 
Table (FCI-35), the insurance provided is attached to and made part of 
the Wheat Endorsement subject to the following terms and conditions:
    1. You must have a wheat endorsement.
    2. Coverage under this option for fall-planted wheat will begin at 
the time of planting and will end on the spring final planting date for 
wheat in the county.
    3. When there is not an adequate stand on the spring final planting 
date to produce the farm unit production guarantee, you have the option 
to:
    a. Continue to provide sufficient care for the insured wheat crop 
through harvest;
    b. Replant all destroyed acreage to a spring variety of wheat and 
receive a replanting payment in accordance with subsection 9.h. of the 
general crop insurance policy and subsection 6.b. of the wheat 
endorsement; or
    c. Accept our appraisal of the production to count, destroy the 
remaining crop on the acreage and be paid any indemnity due under the 
terms of the general crop insurance policy and the wheat endorsement.
    4. In case of damage to the wheat under this option, you must 
provide us with written notice prior to the spring final planting date 
for wheat.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Agent's Signature_______________________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.103   Barley endorsement.

    The provisions of the Barley Crop Insurance Endorsement for the 1988 
through the 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Barley Endorsement

                             1. Insured Crop

    a. The crop insured will be barley planted for harvest as grain. A 
mixture of barley with either oats or wheat or both planted for harvest 
as grain may also be insured if provided by the actuarial table. The 
production from such mixture will be considered as barley on a weight 
basis.
    b. In addition to the barley not insurable in section 2 of the 
general crop insurance policy, we do not insure any barley:
    (1) If the seed has not been mechanically incorporated into the 
soil;

[[Page 75]]

    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such barley; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the barley policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when the barley 
is planted except that:
    (1) In counties with an April 15 cancellation date, insurance will 
attach on fall-planted barley on April 16 following planting if it is 
determined that there is an adequate stand on this date to produce a 
normal crop;
    (2) If you have optional winter coverage in effect, or if optional 
winter coverage is provided in the county and you purchase such coverage 
before the winter barley sales closing date, insurance will attach at 
the time of planting; or
    (3) If optional winter coverage is provided in the county and you 
fail to purchase such coverage, and it is determined that there is an 
adequate stand on the spring final planting date to produce a normal 
crop, insurance will attach on the spring final planting date.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the barley;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or
    (4) The following dates of the calendar year in which barley is 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Barley acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured barley is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The barley is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured barley is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Barley planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

[[Page 76]]

                       6. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, in case of damage or probable loss you must give 
us written notice if you want to harvest the barley for silage or hay. 
After such notice is given, we will appraise the potential grain 
production. If we are unable to do so before harvest, you may harvest 
the crop provided representative samples are left for appraisal 
purposes. For the purposes of this section and Section 8 of the general 
crop insurance policy, the representative sample of the unharvested crop 
must be at least 10 feet wide and the entire length of the field.
    b. A replant payment is available under this endorsement only in 
those counties where a Barley Winter Coverage Option is available and 
only if the insured has elected the Barley Winter Coverage Option. The 
replant payment will be the actual cost of replanting not to exceed the 
lesser of 20 percent of the production guarantee or 3 bushels multiplied 
by the price election multiplied by your share.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of barley to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature barley production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 14.5 percent; or
    (2) Mature barley production which, due to insurable causes, has a 
test weight of less than 40 pounds per bushels or, as determined by a 
grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act contains: less than 85 
percent sound barley; more than 8 percent damaged kernels; more than 35 
percent thin barley; more than 5 percent black barley; or grades smutty, 
garlicky, or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured barley by the price 
per bushel of U.S. No. 2 barley which does not grade smutty, garlicky, 
or ergoty; and
    (b) Multiplying the result by the number of bushels of such barley.
    The applicable price for No. 2 barley will be the local market price 
on the earlier of the day the loss is adjusted or the day the insured 
barley is sold.
    (3) Any harvested production from other volunteer plants growing in 
the barley will be counted as barley on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good barley farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of barley becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
         State and county            Cancellation date  Termination date
------------------------------------------------------------------------
Kit Carson, Lincoln, Elbert, El     Sept. 30..........  Nov. 30.        
 Paso, Pueblo, Las Animas                                               
 Counties, Colorado and all                                             
 Colorado Counties south and east                                       
 thereof; Connecticut; Kansas;                                          
 Massachusetts; and New York.                                           
New Mexico except Taos County;      Sept. 30..........  Sept. 30.       
 Oklahoma; Missouri; Illinois;                                          
 Indiana; Ohio; Pennsylvania; New                                       
 Jersey; and all states south and                                       
 east thereof.                                                          
Arizona; California; Clark and Nye  Oct. 31...........  Nov. 30.        
 Counties, Nevada.                                                      
All other Colorado Counties; all    Apr. 15...........  Apr. 15.        
 other Nevada Counties; Taos                                            
 County, New Mexico, and all other                                      
 states.                                                                
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and August 15 preceding the cancellation 
date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.3.(4) and 21.o of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to barley during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced production guarantees for such 
acreage. The reduced guarantees will be combined with the production 
guarantee for timely planted

[[Page 77]]

acreage for each unit. The premium amount for late planted acreage and 
eligible prevented planting acreage will be the same as that for timely 
planted acreage. For example, assume you insure one unit in which you 
have a 100 percent (100%) share. The unit consists of 150 acres, of 
which 50 acres were planted timely, 50 acres were planted 7 days after 
the final planting date (late planted), and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest barley final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For all spring-planted barley acreage (and fall-planted barley 
acreage only where insurance is not offered for spring-planted barley) 
which is planted after the final planting date but on or before 25 days 
after the final planting date, the production guarantee for each acre 
will be reduced for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the barley continues after the final planting 
date, or you are prevented from planting barley during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting barley (see subparagraph 
11.(i)), you may elect:
    (i) To plant barley during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted barley. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant barley after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for barley in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to barley on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for barley reduced by any acreage 
reduction applicable to the farm under any program administered by

[[Page 78]]

the United States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to barley during the crop years that were used to 
determine your yield;
unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice is 
limited to the number of barley acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for barley in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than barley, has been planted and 
is intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purposes of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of barley acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of barley on one optional unit and 40 acres of barley on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more barley 
acreage under this contract than is eligible for prevented planting 
coverage, we will allocate the eligible acreage to insured units based 
on the number of prevented planting acres and share you reported for 
each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to barley in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted barley in counties for 
which the Actuarial Table designates a spring final planting date, or 
the acreage reporting date for fall-planted barley in counties for which 
the Actuarial Table designates a fall final planting date only, even 
though you may elect to plant the acreage after the late planting 
period. Any acreage you report as eligible for prevented planting 
coverage which we determine is not eligible will be deleted from 
prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Adequate stand--a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days--calendar days.
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured barley must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated barley acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Later planting period--(applicable only to spring-planted barley 
acreage and fall-planted barley acreage only where insurance is not 
offered for spring-planted barley)--the period which begins the day 
after the final planting date for barley and ends twenty-five (25) days 
after the final planting date.
    (h) Latest barley final planting date--
    (1) The final planting date for spring-planted barley in all 
counties for which the Actuarial Table designates a final planting date 
for spring-planted barley only;
    (2) The final planting date for fall-planted barley in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted barley only; or

[[Page 79]]

    (3) The final planting date for spring-planted barley in all 
counties for which the Actuarial Table designates final planting dates 
for both spring-planted and fall-planted barley.
    (i) Prevented planting--inability to plant barley with proper 
equipment by:
    (1) The latest barley final planting date in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant barley due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the latest barley 
final planting date in the county or within the late planting period.
    (j) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--barley planted by the final planting date, as 
established by the Actuarial Table, for barley in the county to be 
planted for harvest in the crop year.

[52 FR 28447, July 30, 1985, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 58 FR 67633, Dec. 22, 1993; 60 FR 56934, Nov. 
13, 1995]



Sec. 401.104   Winter coverage option for barley.

    The Winter Coverage Option for Barley is not available in any 
counties for the 1988 crop year.
    The provisions of the Winter Coverage Option for Barley for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

               Barley Endorsement--Winter Coverage Option

                      (This is a continuous Option)

Insured's Name__________________________________________________________
Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN ____________________________________________________________________
Tax_____________________________________________________________________

    In consideration of the additional premium as set by the Actuarial 
Table (FCI-35), the insurance provided is attached to and made part of 
the Barley Endorsement subject to the following terms and conditions:
    1. You must have a barley endorsement.
    2. Coverage under this option for fall-planted barley will begin at 
the time of planting and will end on the spring final planting date for 
barley in the county.
    3. When there is not an adequate stand on the spring final planting 
date to produce the farm unit production guarantee, you have the option 
to:
    a. Continue to provide sufficient care for the insured barley crop 
through harvest;
    b. Replant all destroyed acreage to a spring variety of barley and 
receive a replanting payment in accordance with subsection 9.h. of the 
general crop insurance policy, and subsection 6.b. of the Barley 
Endorsement; or
    c. Accept our appraisal of the production to count, destroy the 
remaining crop on the acreage and be paid any indemnity due under the 
terms of the general crop insurance policy and the barley endorsement.
    4. In case of damage to the barley under this option, you must 
provide us with written notice prior to the spring final planting date 
for barley.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Agent's Signature_______________________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.105  Oat endorsement.

    The provisions of the Oat Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Oat Endorsement

                             1. Insured Crop

    a. The crop insured will be oats planted for harvest as grain and 
grain mixtures in which oats are the predominant grain.
    b. In addition to the oats not insurable in section 2 of the general 
crop insurance policy, we do not insure any oats:
    (1) If the seed has not been mechanically incorporated into the 
soil;
    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such oats; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or

[[Page 80]]

    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the oat policy for 
the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, the following will apply:
    a. Insurance attaches on each unit or part of a unit when the oats 
are planted except that, in counties with an April 15 cancellation date, 
insurance on fall-planted oats attaches on April 16 following planting 
if it is determined that there is an adequate stand on April 16 to 
produce a normal crop.
    b. Insurance ends on each unit at the earliest of:
    (1) Total destruction of the oats;
    (2) Combining, threshing, harvesting for silage or hay, or removal 
from the field;
    (3) Final adjustment of a loss; or
    (4) The following dates of the calendar year in which oats are 
normally harvested:
    (a) Alaska, September 25;
    (b) All other states, October 31.

                            5. Unit Division

    Oat acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if you agree to pay additional premium as provided for by the 
actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for a least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured oats is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The oats are planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured oats is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and a nonirrigated practice are carried out, provided:
    (1) Oats planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice if you want to harvest the oats for silage or hay. After 
such notice is given, we will appraise the potential grain production. 
If we are unable to do so before harvest, you may harvest the crop 
provided representative samples are left for appraisal purposes. For 
purposes of this section and Section 8 of the general crop insurance 
policy the representative sample of the unharvested crop must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of oats to be counted 
(see subsection 7.b );
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature oat production which otherwise is not eligible for 
quality adjustment will be

[[Page 81]]

reduced .12 percent for each .1 percentage point of moisture in excess 
of 14.0 percent; or
    (2) Mature oat production which, due to insurable causes, has a test 
weight of less than 27 pounds per bushel or, as determined by a grain 
grader licensed by the Federal Grain Inspection Service or licensed 
under the United States Warehouse Act, contains less than 80 percent 
sound oats or is smutty, garlicky, or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured oats by the price 
per bushel of U.S. No. 2 oats which do not grade smutty, garlicky, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such oats. 
The applicable price for No. 2 oats will be the local market price on 
the earlier of the day the loss is adjusted or the day the insured oats 
are sold.
    (3) Any harvested production from other volunteer plants growing in 
the oats will be counted as oats on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good oat farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of oats becomes general in 
the county and is reappraised by us;
    (b) Further damaged by an insured cause before the acreage is put to 
another use and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
                                                   Cancellation and     
              State and county                     termination date     
------------------------------------------------------------------------
Alabama; Arkansas; Florida; Georgia;         Sept. 30.                  
 Louisiana; Mississippi; New Mexico except                              
 Taos County; North Carolina; Oklahoma;                                 
 South Carolina; Tennessee; Texas; and                                  
 Patrick, Franklin, Pittsylvania, Campbell,                             
 Appomattox, Fluvanna, Buckingham, Louisa,                              
 Spotsylvania, Caroline, Essex, and                                     
 Westmoreland Counties, Virginia and all                                
 counties east thereof.                                                 
Arizona; California except Del Norte,        Oct. 31.                   
 Humboldt, Lassen, Modoc, Plumas, Shasta,                               
 Siskiyou, and Trinity Counties.                                        
All other California counties; Taos County,  Apr. 15.                   
 New Mexico; all other Virginia counties                                
 and all other states.                                                  
------------------------------------------------------------------------

                           9. Contract Changes

    The contract change date is December 31 preceding the cancellation 
date for counties with an April 15 cancellation date and August 15 
preceding the cancellation date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to oats during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example, assume you insure one 
unit in which you have a 100 percent share. The unit consists of 150 
acres, of which 50 acres were planted timely, 50 acres were planted 7 
days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be due to you, the production 
guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(i)). This notice must be given not later 
than three (3) days after:
    (1) The latest oat final planting date in the county if you have 
unplanted acreage that may be eligible for prevented planting coverage; 
and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.

[[Page 82]]

    (1) For all spring-planted oat acreage (and fall-planted oat acreage 
only where insurance is not offered for spring-planted oats) planted 
after the final planting date, but on or before 25 days after the final 
planting date, the production guarantee for each acre will be reduced 
for each day planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the oats continues after the final planting date, 
or you are prevented from planting oats during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevent Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting oats (see subparagraph 
11(i)), you may elect:
    (i) To plant oats during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. In counties 
for which the Actuarial Table designates a spring final planting date, 
the prevented planting guarantee will be based on your approved yield 
for spring-planted oats. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be equivalent to 15 bushels per acre (30 
bushels multiplied by 0.50). This section does not prohibit the 
preparation and care of the acreage for conservation practices, such as 
planting a cover crop, as long as such crop is not intended for harvest; 
or
    (iii) To plant oats after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 4 (Insurance Period) of 
this endorsement, the beginning of the insurance period for prevented 
planting coverage is the sales closing date designated in the Actuarial 
Table for oats in the county.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to oats on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS based acreage for oats reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to oats during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of oats acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for oats in the county. Upon your timely 
written request, we will provide a written insurance offer for such 
acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than oats, has been planted and is 
intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of oat acres timely planted and late planted. For example, 
assume you have 100 acres eligible for prevented planting coverage in 
which you have a 100 percent (100%) share. The acreage is located in a 
single ASCS Farm Serial Number which you insure as two separate optional 
units consisting of 50 acres each. If you

[[Page 83]]

planted 60 acres of oats on one optional unit and 40 acres of oats on 
the second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more oat 
acreage under this contract than is eligible for prevented planting 
coverage, we will allocate the eligible acreage to insured units based 
on the number of prevented planting acres and share you reported for 
each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to oats in the crop 
year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date for spring-planted oats in counties for which 
the Actuarial Table designates a spring final planting date, or the 
acreage reporting date for fall-planted oats in counties for which the 
Actuarial Table designates a fall final planting date only, even though 
you may elect to plant the acreage after the late planting period. Any 
acreage you report as eligible for prevented planting coverage which we 
determine is not eligible will be deleted from prevented planting 
coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Adequate stand--a sufficient population of plants to produce at 
least the yield used to determine the guarantee.
    (b) Days--calendar days.
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured oats must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining, threshing, or cutting for hay 
or silage on any acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated oat acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Late planting period--(applicable only to spring-planted oat 
acreage and fall-planted oat acreage only where insurance is not offered 
for spring-planted oats)--the period which begins the day after the 
final planting date for oats and ends twenty-five (25) days after the 
oat final planting date.
    (h) Latest oat final planting date--
    (1) The final planting date for spring-planted oats in all counties 
for which the Actuarial Table designates a final planting date for 
spring-planted oats only;
    (2) The final planting date for fall-planted oats in all counties 
for which the Actuarial Table designates a final planting date for fall-
planted oats only; or
    (3) The final planting date for spring-planted oats in all counties 
for which the Actuarial Table designates final planting dates for both 
spring-planted and fall-planted oats.
    (i) Prevented planting--inability to plant oats with proper 
equipment by:
    (1) The latest oat final planting date in the county; or
    (2) The end of the late planting period.

You must have been unable to plant oats due to an insured cause of loss 
which is general in the area (i.e., most producers in the surrounding 
area are unable to plant due to similar insurable causes) and which 
occurs between the sales closing date and the latest oat final planting 
date in the county or within the late planting period.
    (j) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (k) Timely planted--oats planted by the final planting date as 
established by the Actuarial Table, for oats in the county to be planted 
for harvest in the crop year.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 58 FR 67634, Dec. 22, 1993; 60 FR 56934, Nov. 
13, 1995]



Sec. 401.106  Rye endorsement.

    The provisions of the Rye Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Rye Endorsement

                             1. Insured Crop

    a. The crop insured will be rye planted for harvest as grain.
    b. In addition to the rye not insurable in section 2 of the general 
crop insurance policy, we do not insure any rye:
    (1) If the seed has not been mechanically incorporated into the 
soil;

[[Page 84]]

    (2) If the seed is planted where an established grass or legume 
exists unless we agree, in writing, to insure such rye; or
    (3) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.
    c. A late planting agreement will be available for all spring-
planted rye where insurance is offered and for fall-planted rye only 
where insurance is not offered for spring-planted rye.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the rye policy for 
the 1985 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
of the year in which the rye is normally harvested.

                            5. Unit Division

    Rye acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if you agree to pay additional premium as provided by the 
actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. The acreage planted to insured rye is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The rye is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured rye is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
irrigated and nonirrigated practices are carried out, provided:
    (1) Rye planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice if you want to harvest the rye for silage or hay. After 
such notice is given, we will appraise the potential grain production.
    If we are unable to do so before harvest, you may harvest the crop 
provided representative samples are left for appraisal purposes. For 
purposes of this section and section 8 of the general crop insurance 
policy the representative sample of the unharvested crop must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of rye to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and

[[Page 85]]

    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature rye production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 16 percent; or
    (2) Mature rye production which, due to insurable causes, has a test 
weight of less than 52 pounds per bushel or, as determined by a grain 
grader licensed by the Federal Grain Inspection Service or licensed 
under the United States Warehouse Act, contains: more than 7 percent 
damaged kernels; more than 25 percent thin rye; or is smutty, garlicky, 
or ergoty, will be adjusted by:
    (a) Dividing the value per bushel of the insured rye by the price 
per bushel of U.S. No. 2 rye which does not grade smutty, garlicky, or 
ergoty; and
    (b) Multiplying the result by the number of bushels of such rye. The 
applicable price for No. 2 rye will be the local market price on the 
earlier of the day the loss is adjusted or the day the insured rye is 
sold.
    (3) Any harvested production from other volunteer plants growing in 
the rye will be counted as rye on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good rye farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of rye becomes general in 
the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination date for all states is September 
30.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 15 preceding the cancellation date.

                          10. Meaning of Terms

    a. Adequate stand means a sufficient population of plants to produce 
at least the yield used to determine the guarantee.
    c. Harvest means combining, threshing, or cutting for hay or silage.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989; 58 
FR 33508, June 18, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.107  Late planting agreement option.

    (a) General. The provisions contained in the Late Planting Agreement 
Option, are a duplication of 7 CFR part 400, subpart A, with minor 
editorial changes to provide compatibility with the General Crop 
Insurance Regulations (7 CFR part 401), and become effective when 
elected by producers on the crop insurance endorsements herein which are 
eligible for the Late Planting Agreement Option.
    (b) Availability of the Late Planting Agreement. The Late Planting 
Agreement will be offered under the provisions contained in 7 CFR part 
401, within limits prescribed by and in accordance with the Federal Crop 
Insurance Act, as amended 9 U.S.C. 1501 et seq.), only on those crops 
identified in section 4 of this subpart. All provisions of the 
applicable endorsement for the insured crop apply, except those 
provisions which are in conflict with this subpart.
    (c) Definitions. For the purposes of the Late Planting Agreement 
Option:
    (1) Final planting date means the final planting date for the 
insured crop contained in the actuarial table on file in the service 
office.
    (2) Late Planting Agreement means that agreement executed by the 
final planting date, between the FCIC and the insured whereby the 
insured elects, and FCIC provides, insurance on acreage planted for up 
to 20 days after the applicable final planting date. The production 
guarantee applicable on the final planting date will be reduced on the 
acreage planted after the final planting date by 10 percent for each 5 
days that the acreage is planted after the final planting date.
    (3) Production guarantee means the guaranteed amount of production 
under the provisions of the applicable endorsement for crop insurance 
(sometimes expressed in amounts of insurance).
    (d) Responsibilities of the insured. The insured is solely 
responsible for the

[[Page 86]]

completion of the Late Planting Agreement Option and for the accuracy of 
the data provided on that Agreement. The provisions of this subpart do 
not relieve the insured of any responsibilities under the provisions of 
the insurance endorsement.
    (e) Applicability to crops insured. (1) The provisions of this 
section for insuring crops for the 1995 and subsequent crop years will 
be applicable only under the following endorsements:

401.114  Canning and Processing Tomato Endorsement.
401.118  Canning and Processing Bean Endorsement.
401.123  Safflower Seed Endorsement.
401.126  Onion Endorsement.
401.129  Tobacco (guaranteed plan) Endorsement.

    (2) The Late Planting Agreement Option will be available in all 
counties in which the Corporation offers insurance on these crops unless 
limited by the actuarial table, crop endorsement, or crop endorsement 
option.
    (f) The provisions of the Late Planting Agreement are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                         Late Planting Agreement

Insured's Name__________________________________________________________
Address_________________________________________________________________
Contract No.____________________________________________________________
Crop Year_______________________________________________________________
Crop____________________________________________________________________

    Notwithstanding the provisions of section 2 of the General Crop 
Insurance Regulations (7 CFR 401) regarding the insurability of crop 
acreage initially planted after the final planting date on file in the 
service office, I elect to have insurance provided on acreage planted 
within twenty days after such date. Upon my making this election, the 
production guarantee or amount of insurance, whichever is applicable, 
will be reduced ten percent for each five days or portion thereof that 
the acreage is planted after the final planting date. Each ten percent 
reduction will be applied to the production guarantee or amount of 
insurance applicable on the final planting date.
    The premium will be computed based on the guarantee or amount of 
insurance applicable on the final planting date; therefore, no reduction 
in premium will occur as a result of my election to exercise this 
option.
    If planting continues under this Agreement after the acreage 
reporting date on file in the service office, the acreage reporting date 
will be extended to five days after the completion of planting the 
acreage to which insurance will attach under this Agreement.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's
Signature and Code Number_______________________________________________
Date____________________________________________________________________

[52 FR 28447, July 30, 1987, as amended at 60 FR 40056, Aug. 7, 1995]



Sec. 401.108  Prevented planting endorsement.

    (a) The provisions contained in the Prevented Planting Endorsement 
are a duplication of 7 CFR part 442, with minor editorial changes made 
to provide compatibility with the General Crop Insurance Regulations (7 
CFR part 401), and become effective when elected by producers on the 
crop insurance endorsements therein which are eligible for the Prevented 
Planting Endorsement.
    (b) The provisions of the prevented planting endorsement are as 
follows:

                   Federal Crop Insurance Corporation

                     Prevented Planting Endorsement

    A prevented planting crop insurance endorsement on the qualifying 
crop will be available to all insureds having a qualifying crop 
insurance endorsement under the provisions of this Part and who 
participate in the ASCS Acreage Reduction Program or Set-aside Program. 
This endorsement is not continuous. Application must be made annually 
for the prevented planting endorsement not later than the sales closing 
date established by the actuarial table for the applicable qualifying 
crop.

 (THIS IS AN ANNUAL ELECTION TO BE MADE BY THE INSURED BEFORE THE DATE 
                        SPECIFIED IN SECTION 10.)

    AGREEMENT TO INSURE: We will provide the insurance described in this 
endorsement in return for the premium and your compliance with all 
applicable provisions.

                        1. Applicable Provisions

    All provisions of the qualifying crop insurance endorsement and the 
prevented planting crop insurance application not in conflict with this 
endorsement are applicable.

                            2. Causes of Loss

    a. This insurance is against your being unavoidably prevented from 
planting insurable acreage to the qualifying crop or any other non-
conserving crop during the insurance period. (You are required to plant 
to another

[[Page 87]]

non-conserving crop during the insurance period after you know or should 
have known that it is no longer feasible to plant the qualifying crop 
and you are not prevented from planting the other non-conserving crop by 
an insurable cause.) You must be prevented from planting by drought, 
flood, or other natural disaster which occurs within the insurance 
period. Limitations, exceptions, or exclusions on the causes insured 
against may be contained in the actuarial table.
    b. We will not insure against any prevention of planting:
    (1) If your failure to plant was due to a cause other than those 
listed in subsection 2.a.; or
    (2) If most producers in the surrounding area in similar 
circumstances were able to plant the qualifying crop or any other non-
conserving crop.

                      3. Acreage and Share Insured

    a. The acreage insured for each crop year will be the cultivated 
acreage in the county intended to be planted for harvest to the 
qualifying crop, in which you have a share, as reported by you or as 
determined by us, whichever we elect, and for which a premium rate is 
provided by the actuarial table.
    b. The insured share is your share as landlord, owner-operator or 
tenant in the qualifying crop if the crop had been planted at the time 
insurance attaches. However, only for the purpose of determining the 
amount of indemnity, your share will not exceed your share on the 
prevented planting date.
    c. Unless otherwise specified by the actuarial table, we will not 
insure any acreage unless you have a valid crop insurance endorsement 
for the current crop year on the qualifying crop and the acreage is 
insurable under that endorsement.
    d. You must participate in the ASCS acreage reduction or set-aside 
program for the qualifying crop in the applicable crop year on at least 
one farm which is part of the insured unit under this endorsement.

             4. Report of Acreage, Share, Type, and Practice

    You must report on our form:
    a. All the cultivated acreage intended for planting to the 
qualifying crop in the county in which you have a share;
    b. The intended type and practice; and
    c. Your share at the time of reporting.
    You must designate separately any cultivated acreage that is 
intended for planting to the qualifying crop that is not insurable. This 
report must be submitted not later than the sales closing date for the 
qualifying crop. All indemnities may be determined on the basis of 
information you submit on this report. If you do not submit this report 
by the reporting date, we may elect to determine the insured acreage and 
share or we may deny liability on the unit. Any report submitted by you 
may be revised only upon our approval.

               5. Amounts of Insurance and Coverage Levels

    a. The amount of insurance per acre is computed by multiplying the 
qualifying crop yield guarantee times the price election selected for 
the qualifying crop, times 0.35.
    b. The coverage level is the same as that selected under your crop 
insurance endorsement for the qualifying crop.

                            6. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the amount of insurance 
per acre times the premium rate, times the insured acreage, times your 
share.
    b. Interest will accrue at the same rate and terms on any unpaid 
premium balance as on the qualifying crop insurance endorsement.

                         7. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payment 
due you or from any replanting payment, or from any loan or payment due 
you under any Act of Congress or program administered by the United 
States Department of Agriculture or its agencies, and from any amount 
due you from any other United States Government Agency.

                           8. Insurance Period

    In lieu of section 7 of the general policy, prevented planting 
insurance attaches on the sales closing date of the qualifying crop 
insurance endorsement for the crop year and ends at the earlier of:
    a. Planting of the insured acreage to the qualifying crop or any 
other non-conserving crop; or
    b. The prevented planting date.

           9. Notice of Damage or Loss and Claim for Indemnity

    a. If you are prevented from planting the insured acreage and expect 
to claim an indemnity on the unit, you must give us notice in writing 
not later than five days after the prevented planting date.
    b. Any claim for indemnity must be submitted to us on our form prior 
to the time a claim is or should be filed for the qualifying crop.
    c. We will not pay any indemnity unless you:
    (1) Establish that any prevention of planting on insured acreage was 
directly caused by one or more of the insured causes during the 
insurance period for the crop year for which the indemnity is claimed; 
and

[[Page 88]]

    (2) Furnish all information we require concerning the loss.
    d. The indemnity will be determined for the unit by:
    (1) Multiplying the insured acreage times the amount of insurance as 
determined in section 5 of this endorsement;
    (2) Subtracting therefrom the amount obtained by multiplying the 
planted acreage, times the amount of insurance; and
    (3) Multiplying this result by your share.
    e. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section.

           10. Life of Contract: Cancellation and Termination

    a. This endorsement will be in effect only for the crop year 
specified on the application and may not be canceled by you for such 
crop year.
    b. This endorsement may be renewed for each succeeding crop year if:
    (1) You apply and report your intended acreage for planting not 
later than the sales closing date of the qualifying crop; and
    (2) The qualifying crop insurance endorsement is not cancelled or 
terminated for the crop year.

                          11. Meaning of Terms

    For the purposes of prevented planting crop insurance:
    a. Cultivated acreage intended for planting means land that was 
ready or, except for insured causes, could have been made ready for 
planting, but does not include land:
    (1) On which a perennial forage crop is being grown or on which the 
qualifying crop or other non-conserving crop was planted prior to the 
prevented planting acreage reporting date; or
    (2) Which was not or would not have been planted to comply with any 
other United States Department of Agriculture or State programs or for 
any other reason.
    b. Farm means the land which is designated by ASCS under a single 
farm serial number.
    c. Insurable acreage means the land classified as insurable by us 
for the qualifying crop and shown as such by the actuarial table.
    d. Non-conserving crop means any crop planted for harvest as food, 
feed, or fiber.
    e. Planted acreage means the insurable acreage:
    (1) Planted to the qualifying crop or any non-conserving crop during 
the insurance period; or
    (2) Which could have been planted to the qualifying crop or any non-
conserving crop during the insurance period.
    f. Prevented planting date means the latest final spring planting 
date established by the crop actuarial tables for any insurable crop in 
the county, except tobacco, plus any extended date or final planting 
date offered under any late planting agreement option. (In areas where 
there are no spring planting dates, we will use the latest final fall 
planting date.)
    g. Qualifying crop means barley, oats, or wheat.
    h. Unit means all insurable acreage in the county which you intend 
for planting to the qualifying crop prior to the prevented planting date 
for the crop year at the time insurance first attaches under this 
endorsement for the crop year. The unit will be determined when the 
acreage is reported.
    i. Yield guarantee means the result of multiplying your yield for 
the qualifying crop by your coverage level for that crop.

[52 FR 28447, July 30, 1987, as amended at 58 FR 64874, Dec. 10, 1993]



Sec. 401.109  Hybrid sorghum seed endorsement.

    The provisions of the Hybrid Sorghum Seed Endorsement for the 1988 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                     Hybrid Sorghum Seed Endorsement

                             1. Insured Crop

    a. The crop insured will be female grain sorghum which is:
    (1) Planted for harvest and the production is intended for use as 
commercial seed to produce grain sorghum, forage sorghum, or sorghum 
sudan; and
    (2) Grown under a written contract executed with a seed company 
before the acreage reporting date.
    b. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured crop is grown and which 
provides for delivery of the crop under certain conditions and at a 
stipulated price will be treated as a contract under which you have a 
share in the crop.
    c. In addition to the female grain sorghum not insurable in section 
2 of the general crop insurance policy, we do not insure any female 
grain sorghum:
    (1) In rows planted with a mixture of female and male plants;
    (2) Planted for any purpose other than for commercial seed;
    (3) Grown under a contract with any seed company and that seed 
company refuses to provide us with the records we require to determine 
the dollar value per bushel of seed production for each hybrid variety; 
or
    (4) Destroyed or put to another use in order to comply with other 
U.S. Department of Agriculture programs.

[[Page 89]]

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy we will not insure against any 
loss of production due to:
    (1) The use of unadapted, incompatible, or genetically deficient 
male or female seed;
    (2) Deficiencies determined during grow-out of a sample of the 
insured seed crop, including inadequate purity or poor vigor;
    (3) Failure to follow the grower provisions of the contract executed 
with the seed company;
    (4) Frost or freeze after the date set by the actuarial table;
    (5) Inadequate germination of the hybrid seed crop even though such 
inadequate germination was a direct result of an insured cause of loss 
unless inspected and accepted by us before harvest is completed; or
    (6) Failure to plant the male seed at a time sufficient to assure 
adequate pollination of the female plants.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    In addition to the information required in section 3 of the general 
crop insurance policy for the acreage report, you must report the crop 
type.

                            4. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per acre times the premium rate, times the insured acreage, 
times your share at the time of planting.

                           5. Insurance Period

    In addition to the provisions in section 7 of the general crop 
insurance policy the following will apply:
    a. Insurance attaches on each unit or part of a unit when both the 
male plant seed and the female plant seed are completely planted in 
accordance with the production management practices of the seed company.
    b. The calendar date for the end of the insurance period is November 
30 of the crop year.

                            6. Unit Division

    Female grain sorghum acreage that would otherwise be one unit, as 
defined in section 17 of the general crop insurance policy, may be 
divided into more than one unit if you agree to pay additional premium 
if required by the actuarial table, and if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year; and
    b. The acreage planted to insured female grain sorghum is located in 
separate legally identifiable sections, or in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The female grain sorghum is planted in such a manner that the 
planting pattern does not continue into the adjacent section or ASCS 
Farm Serial Number.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       7. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, in case of damage or probable loss you must give us 
written notice of probable loss at least 15 days before the beginning of 
harvest if you anticipate a germination rate of less than 80 percent on 
any unit. For purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         8. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre;
    (2) Subtracting from this product the sum of:
    (a) The dollar amount obtained by multiplying seed production to 
count for each type and variety by the respective dollar value per 
bushel determined by us; plus
    (b) The dollar amount obtained by multiplying non-seed production to 
count by the local market price of such production on the earlier of the 
date the loss is adjusted or the date such production is sold; and
    (c) Multiplying this result by your share.

[[Page 90]]

    b. The total production to be counted for a unit will include all 
harvested and appraised seed and all harvested and appraised non-seed 
production.
    (1) Total seed production to be counted will include:
    (a) All production delivered to and accepted by the seed company;
    (b) All production with a germination rate of 80 percent or more as 
determined by a certified seed test conducted from a cleaned sample 
taken at the time of delivery to the seed company or, if the mature 
production is appraised, at the time of appraisal; and
    (c) All harvested and appraised production which does not qualify 
under (a) or (b) above because of damage caused by uninsured causes or 
the failure to follow grower provisions of the contract executed with 
the seed company.
    (2) Total non-seed production to be counted will include all 
production that does not qualify as seed production.
    (3) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good hybrid sorghum seed farming practices;
    (b) Potential production lost due to failure to follow the grower 
provisions of the contract executed with the seed company;
    (c) Not less than the dollar amount of insurance for any acreage 
which is abandoned or put to another use without our prior written 
consent or damaged solely by an uninsured cause; and
    (d) Any unharvested production.
    c. Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (1) Not put to another use before harvest of hybrid sorghum seed 
becomes general in the county and is reappraised by us;
    (2) Further damaged by an insured cause and is reappraised by us; or
    (3) harvested.
    d. To determine the quantity of mature production, seed and non-seed 
production will be:
    (1) Adjusted .12 percent for each .1 percentage point of moisture to 
13.0 percent; and
    (2) Measured at 56 pounds of production equaling one bushel.
    e. When records of seed production provided by the seed company have 
been adjusted to a basis of 13.0 percent moisture and 56 pound test 
weight, (d) above will not apply for harvested production and the 
records of the seed company will be used to determine the amount of 
indemnity if such production records are based on the same moisture and 
test weight criteria used to determine the dollar value per bushel of 
seed production.

                  9. Cancellation and Termination Dates

    The cancellation and termination dates are April 15.

                          10. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date.

                        11. Production Reporting

    The production reporting provision contained in section 4 of the 
general crop insurance policy will not be applicable to this contract.

                12. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs (2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to the insured crop during the late planting period (see 
subparagraph (c)), and acreage you were prevented from planting (see 
subparagraph (d)). These coverages provide reduced amounts of insurance 
for such acreage. The reduced amounts of insurance will be combined with 
the amount of insurance for timely planted acreage for each unit. The 
premium amount for late planted acreage and eligible prevented planting 
acreage will be the same as that for timely planted acreage. For 
example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 200 acres of the same type and 
variety of which 150 acres are occupied by the female plant. Fifty acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the amount of insurance for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre amount of 
insurance for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for

[[Page 91]]

prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (ii) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subparagraph 12(d)(1)(iii))).
    The total of the three calculations will be the amount of insurance 
for the unit. Your premium will be based on the result of multiplying 
the per acre amount of insurance for timely planted acreage by the 150 
insured crop acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date the amount of insurance for 
each acre will be reduced for each day planted after the final planting 
date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting the insured crop 
during the late planting period, the acreage reporting date will be the 
later of:
    (i) The acreage reporting date contained in the Acturial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 13(o)), you may elect:
    (i) To plant the insured crop during the late planting period. The 
amount of insurance for such acreage will be determined in accordance 
with paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the amount of insurance for such 
acreage will be fifty percent (50%) of the amount of insurance for 
timely planted acres. For example, if your amount of insurance for 
timely planted acreage is 200 dollars per acre, your prevented planting 
amount of insurance would be 100 dollars per acre (200 dollars 
multiplied by 0.50). If you elect to plant the insured crop after the 
late planting period, production to count for such acreage will be 
determined in accordance with subsections 8b through e; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting amount of insurance will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) An amount of insurance equal to twenty-five percent (25%) of the 
amount of insurance for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your amount of insurance for timely planted 
acreage is 200 dollars per acre, your prevented planting amount of 
insurance would be 50 dollars per acre (200 dollars multiplied by 0.25). 
You may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate, on or before the sales closing date, on your application or on 
a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the yield upon which your amount of insurance is based.
    (3) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the insurance period for 
prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a hybrid sorghum seed crop insurance 
policy for the 1996 crop year, prevented planting coverage will begin on 
the 1996 sales closing date for the insured crop in the county. If the 
hybrid sorghum seed coverage remains in effect for the 1997 crop year 
(is not terminated or cancelled during or after the 1996 crop year, 
except the policy may have been cancelled to transfer

[[Page 92]]

the policy to a different insurance provider, if there is no lapse in 
coverage), prevented planting coverage for the 1997 crop year began on 
the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) Eligible acreage will not exceed the number of acres required to 
be grown in the current crop year under a contract executed with a seed 
company prior to the acreage reporting date.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres for which you had adequate irrigation 
facilities prior to the insured cause of loss which prevented you from 
planting.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of acres of the insured crop timely planted and late 
planted. For example, assume you have 100 acres eligible for prevented 
planting coverage in which you have a 100 percent (100%) share. The 
acreage is located in a single FSA Farm Serial Number which you insure 
as two separate optional units consisting of 50 acres each. If you 
planted 60 acres of the insured crop on one optional unit and 40 acres 
of the insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a prevented planting amount of 
insurance the total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          13. Meaning of Terms

    (a) Adjusted average yield--an expected yield level for a specific 
variety, in bushels

[[Page 93]]

per acre, determined by us and used to establish the value of seed 
production for the purpose of determining the amount of indemnity.
    (b) Amount of insurance--the number of dollars per acre that results 
from subtracting the minimum payment (in bushels) provided by the seed 
company from the county yield contained in the Actuarial Table for the 
selected coverage level and multiplying the result by the selected price 
election. If the minimum payment provided by the seed company is stated 
as a dollar amount, it will be converted to a bushel equivalent by 
dividing the dollar amount by the selected price election.
    (c) Commercial seed--the offspring produced by crossing two 
individual seeds of different genetic character. The resultant offspring 
is the product intended for use on a commercial basis by an agricultural 
producer to produce a field crop type for grain sorghum, forage sorghum, 
or sorghum sudan.
    (d) Days--calendar days.
    (e) Dollar value per bushel--the value determined by dividing the 
amount of insurance per acre for timely planted acreage by the result of 
multiplying the adjusted average yield by the coverage level percentage 
you elect.
    (f) Female plants--the plants grown for the purpose of producing 
commercial seed and from which the commercial seed is harvested.
    (g) Final planting date--the date contained in the Actuarial Table 
by which the insured crop must initially be planted in order to be 
insured for the full amount of insurance.
    (h) Grow-out--the growing of a sample of the insured crop to 
determine progeny characteristics.
    (i) Harvest--combining, threshing, or picking of the seed and non-
seed production on any acreage.
    (j) Inadequate germination--less than 80 percent of the seed 
produced from female plants germinated as determined by a warm test 
using clean seed.
    (k) Irrigated practice--a method of producing a crop by which water 
artificially applied during the growing season by appropriate systems, 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated amount of insurance on the irrigated insured crop acreage.
    (l) Late planted--acreage planted during the late planting period.
    (m) Late planting period--the period which begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (n) Male plants--the plants grown for the purpose of pollinating 
female plants.
    (o) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (p) Seed company--a company which contracts with a grower to produce 
or grow plants for the production of hybrid seed.
    (q) Timely planted--the insured crop planted by the final planting 
date, as established by the Acturial Table, for the insured crop in the 
county to be planted for harvest in the crop year.
    (r) Type--grain sorghum, forage sorghum, or sorghum sudan.
    (s) Variety--the seed produced from a pair of genetically 
identifiable parents.

[52 FR 28447, July 30, 1987, as amended at 58 FR 67635, Dec. 22, 1993; 
60 FR 62720, 62721, Dec. 7, 1995]



Sec. 401.110  Almond endorsement.

    The provisions of the Almond Crop Insurance Endorsement for the 1988 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                           Almond Endorsement

                             1. Insured Crop

    a. The crop insured will be almonds.
    b. In addition to the almonds not insurable in section 2 of the 
general crop insurance policy, we do not insure any almonds:
    (1) Which are not irrigated; or
    (2) On which the trees on the sales closing date have not reached 
the seventh growing season after being set out unless we agree in 
writing to insure such acreage.
    c. Insurance may attach only by written agreement with us on any 
acreage with less than 90 percent of a stand, based on the original 
planting pattern.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Wildlife;
    d. Earthquake;
    e. Volcanic eruption;
    f. Direct Mediterranean Fruit Fly damage; or
    g. Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

[[Page 94]]

       3. Report of Acreage, Share, and Practice (Acreage Report)

    The date by which you must annually submit the acreage report 
described in section 3 of the general crop insurance policy is January 
15.

                            4. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the almond policy 
for the 1985 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           5. Insurance Period

    Insurance attaches for each crop year on January 1. The calendar 
date for the end of the insurance period is November 30 of the calendar 
year in which the almonds are normally harvested.

                            6. Unit Division

    Almond acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium if required by 
the actuarial table and if for each proposed unit:
    a. You maintain written, verifiable records of acreage and harvested 
production for at least the previous crop year and production reports 
based on those records are filed to obtain an insurance guarantee; and
    b. The acreage of insured almonds is located on non-contiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of almonds to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (total meat pounds) to be counted for a unit 
will include all harvested and appraised production.
    (1) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good almond farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any appraised production on unharvested acreage.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and is reappraised by us; or
    (b) Harvested.
    (3) Almonds which cannot be marketed due to insurable causes will 
not be considered production.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are December 31.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the almonds which causes such almonds to be considered 
unmarketable and will not include unmarketability of such almonds as a 
result of a quarantine, boycott, or refusal to accept the almonds by any 
entity without regard to the actual physical damage to such almonds.
    b. Harvest means the removal of the almonds from the orchard.
    c. Non-contiguous Land means land which is not touching at any 
point, except that land which is separated by only a public or private 
right-of-way will be considered contiguous.
    d. Total Meat Pounds means the total pounds of good almond meats 
(whole, chipped and broken, and inshell meats) and rejects, except those 
resulting from insurable causes as determined by us. Unshelled almonds 
will be converted to meat pounds.

[52 FR 28447, July 30, 1987, as amended at 54 FR 20504, May 12, 1989]

[[Page 95]]



Sec. 401.111  Corn endorsement.

    The provisions of the Corn Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                            Corn Endorsement

                             1. Insured Crop

    a. The crop insured will be field corn (``corn'') planted for 
harvest as grain (or silage if a silage amendment is obtained).
    b. In addition to the corn not insurable under section 2 of the 
general crop insurance policy, we do not insure any corn:
    (1) On which the corn was destroyed or put to another use for the 
purpose of conforming with any other program administered by the United 
States Department of Agriculture;
    (2) Unless the acreage is planted in rows far enough apart to permit 
mechanical cultivation; or
    (3) Planted for silage unless a silage amendment has been obtained.
    c. If the actuarial table for the county provides a ``silage only 
guarantee'', coverage is only available with the completion of the 
silage amendment.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the corn policy for 
the 1984 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply;
    (5) Participation must be continuous from prior to 1984.

                           4. Insurance Period

    The calendar date for the end of the insurance period is the date 
immediately following planting as follows:
    (a) Val Verde, Edwards, Kerr, Kendall, Bexar, Wilson, Karnes, 
Goliad, Victoria, and Jackson Counties, Texas, and all Texas counties 
lying south thereof--September 30;
    (b) Clark, Cowlitz, Grays Harbor, Island, Jefferson, King, Kitsap, 
Lewis, Pierce, Skagit, Snohomish, Thurston, Wahkiakum, and Whatcom 
Counties, Washington--October 31;
    (c) All other counties where our actuarial table shows:
    (a) only a silage guarantee; or
    (b) both a grain and a silage guarantee on any acreage of corn 
harvested for silage--September 30;
    (d) All other counties and states--December 10.

                            5. Unit Division

    Corn acreage that would otherwise be one unit, as defined in section 
17 of the general crop insured policy, may be divided into more than one 
unit if you agree to pay additional premium as provided for by the 
actuarial table and if for each proposed unit you maintain written 
verifiable records of planted acreage and harvested production for at 
least the previous crop year. Production reports by unit based on those 
records should be filed as early as possible but must be filed by no 
later than the date required by subsection 4.d. of the general crop 
insurance policy and either;
    a. Acreage planted to the insurance corn crop is located in 
separate, legally identifiable sections (except in Florida) or, in the 
absence of section descriptions (and in Florida) the land is identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The corn is planted in such a manner that the planting pattern 
does not continue into an adjacent section or ASCS Farm Serial Number; 
or

[[Page 96]]

    b. Acreage planted to the insured corn is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and non-irrigated practices are carried out, provided:
    (1) Corn planted on the irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insured corn are 
part of the irrigated unit. The production from the total unit, both 
irrigated and nonirrigated, is combined to determine your yield for the 
purpose of determining the guarantee for the unit.); and
    (2) Planting, fertilizing, and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indenmity will be determined for each grain unit by:
    (1) Multiplying the insured grain acreage by the production 
guarantee;
    (2) Subtracting therefrom the total production of grain to be 
counted (See subsection 7.d.);
    (3) Multiplying this product by the grain price election; and
    (4) Multiplying this result by your share.
    b. When the actuarial table provides a bushel guarantee only or a 
bushel and tonnage guarantee (and you do not have a timely signed silage 
amendment) all appraisals will be made in bushels.
    c. When the actuarial table provides a tonnage guarantee, and a corn 
silage amendment is in effect, the indemnity will be determined in 
accordance with the procedure shown in the corn silage amendment.
    d. The total production (bushels) to be counted for a unit with a 
grain guarantee will include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature grain which otherwise is not eligible for quality 
adjustment will be reduced .12 percent for each .1 percentage point of 
moisture in excess of 15.5 through 30.0 percent and .2 percent for each 
.1 percentage point of moisture from 30.1 through 40.0 percent; or
    (b) Mature grain which, due to insurable causes, has a moisture over 
40 percent; test weight below 49 pounds per bushel; or kernel damage 
more than 10 percent as determined by a grain grader licensed by the 
Federal Grain Inspection Service or licensed under the United States 
Warehouse Act, will be adjusted by:
    (1) Dividing the value per bushel of such corn by the price per 
bushel of U.S. No. 2 corn at 15.5% moisture; and
    (2) Multiplying the result by the number of bushels of such corn.
    The applicable price for No. 2 corn will be the local market price 
on the earlier of the day the loss is adjusted or the day such corn was 
sold.
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good corn farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Appraised production on unharvested acreage;
    (d) For any acreage of corn reported as grain and harvested as 
silage, indemnity calculations will be converted to a bushel basis at 
the conversion rate shown in the form FCI-35 for silage harvested or 
appraised from a grain variety.
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of corn becomes general in 
the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    e. A replanting payment is available under this endorsement. The 
replanting payment will not exceed 8 bushels multiplied by the price 
election, multiplied by your share. When the crop is replanted by a 
practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replanting payment.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and     
              State and county                    termination dates     
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,    February 15.               
 Wilson, Karnes, Goliad, Victoria, and                                  
 Jackson Counties, Texas, and all Texas                                 
 counties lying south thereof.                                          

[[Page 97]]

                                                                        
Alabama: Arizona; Arkansas; California;      March 31.                  
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina;                                
 and El Paso, Hudspeth, Culberson, Reeves,                              
 Loving, Winkler, Ector, Upton, Reagan,                                 
 Sterling, Coke, Tom Green, Concho,                                     
 McCulloch, San Saba, Mills, Hamilton,                                  
 Bosque, Johnson, Tarrant, Wise, Cooke                                  
 Counties, Texas, and all Texas Counties                                
 lying south and east thereof to and                                    
 including Terrell, Crockett, Sutton,                                   
 Kimble, Gillespie, Blanco, Comal,                                      
 Guadalupe, Gonzales, De Witt, Lavaca,                                  
 Colorado, Wharton, and Matagorda Counties,                             
 Texas.                                                                 
All other Texas counties and all other       April 15.                  
 states.                                                                
------------------------------------------------------------------------

                          9. Contract changes.

    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to corn during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example, assume you insure one 
unit in which you have a 100 percent (100%) share. The unit consists of 
150 acres, of which 50 acres were planted timely, 50 acres were planted 
7 days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be due to you, the production 
guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph (11.(g)). This notice must be given no later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the corn continues after the final planting date, 
or you are prevented from planting corn during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting corn (see subparagraph 
11.(g)), you may elect:
    (i) To plant corn during the late planting period. The production 
guarantee for such acreage will be determined in accordance with section 
10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 70 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 35 bushels per acre (70 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop,

[[Page 98]]

as long as such crop is not intended for harvest; or
    (iii) To plant corn after the late planting period. The production 
guarantee for such acreage will be fifty percent (0.50) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 70 bushels per acre, 
your prevented planting production guarantee would be equivalent to 35 
bushels per acre (70 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.d.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for corn.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:(i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to corn on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for corn reduced by any acreage reduction 
applicable to the farm under any program administered by the United 
States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to corn during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of corn acres properly prepared to carry out an 
irrigation practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for corn in the county. Upon your timely 
written request, we will provide a written insurance offer for such 
acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than corn, has been planted and is 
intended for harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and will be 
reduced by the number of corn acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of corn on one optional unit and 40 acres of corn on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero). If you report more corn acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible acreage to insured units based on the number of 
prevented planting acres and share you reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to corn in the crop 
year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured corn must initially be planted in order to be 
insured for the full production guarantee.
    (c) Harvest--completion of combining or picking corn for grain on 
any acreage.
    (d) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with

[[Page 99]]

the intention of providing the quantity of water needed to produce at 
least the yield used to establish the irrigated production guarantee on 
the irrigated corn acreage.
    (e) Late planted--acreage planted during the late planting period.
    (f) Late planting period--the period which begins the day after the 
final planting date for corn and ends twenty-five (25) days after the 
final planting date.
    (g) Prevented planting--inability to plant corn with proper 
equipment by:
    (1) The final planting date for corn in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant corn due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (h) Production guarantee--the number of bushels (tons if the Corn 
Silage Option is in effect) determined by multiplying the approved yield 
per acre by the coverage level percentage you elect.
    (i) Replanting--performing the cultural practices necessary to 
replace the corn seed, and replacing the seed in the insured acreage 
with the expectation of growing a successful crop.
    (j) Silage--corn harvested by severing the stalk from the land and 
chopping the stalk and the ear for the purpose of livestock feed.
    (k) Timely planted--corn planted by the final planting date, as 
established by the Actuarial Table, for corn in the county to be planted 
for harvest in the crop year.

[52 FR 45143, Nov. 25, 1987, as amended at 53 FR 4589, Feb. 17, 1988; 54 
FR 20504, May 12, 1989; 56 FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 
1992; 58 FR 3205, Jan. 8, 1993; 58 FR 67637, Dec. 22, 1993; 60 FR 56934, 
Nov. 13, 1995]



Sec. 401.112  Corn silage option.

    The provisions of the Corn Silage Crop Insurance Option to the Corn 
Crop Insurance Endorsement for the 1988 through 1994 crop years are as 
follows:

                   Federal Crop Insurance Corporation

                           Corn Silage Option

Insured's Name                           Contract No.                   
------------------------------------------------------------------------
Address                                  Crop Year                      
                                        --------------------------------
                                         Identification No.             
                                        --------------------------------
                                         SSN      Tax                   
------------------------------------------------------------------------

    Upon our approval, this amendment is applicable for the 1988 through 
1994 crop years.
    1. You must have a corn endorsement in force. The corn endorsement 
provides guaranteed protection on a bushel basis for corn harvested as 
grain only.
    2. All provisions of the corn endorsement not in conflict with this 
option remain applicable. If a conflict exists between the terms of the 
endorsement and this silage option, the terms of the silage option 
apply.
    3. A properly executed Corn Silage Option must be submitted to us on 
or before the sales closing date if you wish to insure your corn as 
silage under this option.
    4. The silage option remains in force and need not be renewed 
annually. If you desire to cancel the option, you must do so in writing 
by the cancellation date shown in the actuarial table. The silage option 
is mandatory if required by the actuarial table.
    5. Failure to submit a properly executed silage option by the sales 
closing date will result in all your corn being insured under the terms 
and conditions of the corn endorsement.
    6. All production and appraisals under this option will be in tons. 
When the corn is harvested as silage and a grain appraisal is made 
concurrently with a silage appraisal, and the grain/silage appraisal is 
less than 4.5 bushels per ton, the production will be reduced 1 percent 
for each 1 tenth of a bushel below 4.5 bushels. The representative 
sample required by subsection 8.a(3) of the general policy must be at 
least 10 feet wide and the entire length of the field. If a 
representative sample is not left unharvested, no reduction for 
harvested silage will be allowed.
    7. If the actuarial table shows both a grain and silage guarantee, 
and the normal silage harvesting period has ended, we may increase any 
tonnage appraisal or any harvested silage production to 65 percent 
moisture equivalent to reflect the normal moisture content of silage 
harvested during the normal silage harvesting period.
    8. A replanting payment will be available in accordance with 
subsection 9.h. of the general policy if it is practical to replant. The 
payment will not exceed 1 ton, multiplied by the price election, 
multiplied by your share.
    Your premium rate under this option is that specified for silage 
corn on the actuarial table. If only one premium rate is shown by the 
actuarial table it will be applied to both grain and silage. Mixtures of 
corn and grain sorghum are insurable for silage only if the sorghum does 
not exceed 20 percent of the stand.
    The end of the insurance period under the silage option is September 
30 for the crop year. The silage option is not available in

[[Page 100]]

corn counties which offer coverage only on a bushel basis.

Insured's Signature                         (Date)                      
                                                                        
------------------------------------------------------------------------
Agent's Signature                           (Date)                      
                                                                        
------------------------------------------------------------------------
Approved by Company                         (Date)                      
------------------------------------------------------------------------

[52 FR 45146, Nov. 25, 1987, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.113  Grain sorghum endorsement.

    The provisions of the Grain Sorghum Crop Insurance Endorsement for 
the 1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                        Grain Sorghum Endorsement

                             1. Insured Crop

    a. The crop insured will be combine type hybrid grain sorghum 
planted for harvest as grain.
    b. In addition to the grain sorghum not insurable in section 2 of 
the general crop insurance policy, we do not insure any grain sorghum, 
which was destroyed or put to another use for the purpose of conforming 
with any other program administered by the United States Department of 
Agriculture.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the grain sorghum 
policy in effect for the 1984 crop year, you will continue to receive 
the benefit of the reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous from at least prior to the 1984 
crop year.

                           4. Insurance Period

    The calendar date for the end of the insurance period is the date 
immediately following planting as follows: (a) Val Verde, Edwards, Kerr, 
Kendall, Bexar, Wilson, Karnes, Goliad, Victoria, and Jackson Counties, 
Texas, and all Texas counties south thereof: September 30. (b) All other 
Texas counties and all other States: December 10.

                            5. Unit Division

    Grain sorghum acreage that would otherwise be one unit, as defined 
in section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written, verifiable records of planted acreage and harvested production 
for at least the previous crop year. Production reports by unit based on 
those records should be filed as early as possible but must be filed by 
no later than the date required by subsection 4.d. of the general crop 
insurance policy and either;
    a. Acreage planted to the insured grain sorghum crop is located in 
separate, legally identifiable sections (except in Florida) or, in the 
absence of section descriptions (and in Florida) the land is identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The grain sorghum is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured grain sorghum is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both irrigated and non-irrigated practices are carried out, 
provided:
    (1) Grain sorghum planted on the irrigated acreage does not continue 
into non-irrigated acreage in the same rows or planting pattern

[[Page 101]]

(Non-irrigated corners of a center pivot irrigation system planted to 
insurable grain sorghum are part of the irrigated unit. The production 
from the total unit, both irrigated and nonirrigated, is combined to 
determine the unit yield for the purpose of determining the guarantee 
for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For the purpose of section 8 of the general crop insurance policy, 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of grain sorghum to 
be counted (see subsection 7.d.);
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production which may be adjusted for moisture and 
quality as follows:
    (a) Mature grain sorghum production which is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 14.0 percent; or
    (b) Mature grain sorghum production which, due to insurable causes 
has a test weight of less than 51 pounds per bushel or contains more 
than 15.0 percent kernel damage, as determined by a grain grader 
licensed by the Federal Grain Inspection Service or licensed under the 
United States Warehouse Act, will be adjusted by:
    (i) Dividing the value per bushel of the insured grain sorghum by 
the price per bushel of U.S. No. 2 grain sorghum; and
    (ii) Multiplying the result by the number of bushels of insured 
grain sorghum.
    The applicable price for No. 2 grain sorghum will be the local 
market price on the earlier of the day the loss is adjusted or the day 
the insured grain sorghum is sold; and
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good grain sorghum farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Appraised production on unharvested aceage;
    (d) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of grain sorghum becomes 
general in the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    c. A replanting payment is available under this endorsement. The 
replanting payment per acre will not exceed 7 bushels multiplied by the 
price election, multiplied by your share. When the crop is replanted by 
a practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replant payment.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and     
              State and County                    termination dates     
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,    Feb. 15.                   
 Wilson, Karnes, Goliad, Victoria, and                                  
 Jackson Counties, Texas, and all Texas                                 
 counties south thereof.                                                
Alabama; Arizona; Arkansas; California;      Mar. 31.                   
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina;                                
 and El Paso, Hudspeth, Culberson, Reeves,                              
 Loving, Winkler, Ector, Uptown, Reagan,                                
 Sterling, Coke, Tom Green, Concho,                                     
 McCulloch, San Saba, Mills, Hamilton,                                  
 Bosque, Johnson, Tarrant, Wise, Cooke                                  
 Counties, Texas, and all Texas counties                                
 south and east thereof to and including                                
 Terrell, Crockett, Sutton, Kimble,                                     
 Gillespie, Blanco, Comal, Guadalupe,                                   
 Gonzales, De Witt, Lavaca, Colorado,                                   
 Wharton, and Matagorda Counties, Texas.                                
All other Texas counties and all other       Apr. 15.                   
 States.                                                                
------------------------------------------------------------------------

    9. Contract changes.
    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to grain sorghum during the late planting period (see 
subparagraph (c)), and acreage

[[Page 102]]

you were prevented from planting (see subparagraph (d)). These coverages 
provide reduced production guarantees for such acreage. The reduced 
guarantees will be combined with the production guarantee for timely 
planted acreage for each unit. The premium amount for late planted 
acreage and eligible prevented planting acreage will be the same as that 
for timely planted acreage. For example, assume you insure one unit in 
which you have a 100 percent (100%) share. The unit consists of 150 
acres, of which 50 acres were planted timely, 50 acres were planted 7 
days after the final planting date (late planted), and 50 acres are 
unplanted and eligible for prevented planting coverage. To calculate the 
amount of any indemnity which may be due to you, the production 
guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(g)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the grain sorghum continues after the final 
planting date, or you are prevented from planting grain sorghum during 
the late planting period, the acreage reporting date will be the later 
of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting grain sorghum (see 
subparagraph 11.(g)), you may elect:
    (i) To plant grain sorghum during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 30 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 15 bushels per acre (30 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant grain sorghum after the late planting period. The 
production guarantee for such acreage will be fifty percent (0.50) of 
the production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for grain sorghum.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to grain sorghum on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for grain sorghum reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or

[[Page 103]]

    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to grain sorghum during the crop years that were used 
to determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of grain sorghum acres properly prepared to 
carry out an irrigation practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit, whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for grain sorghum in the county. Upon 
your timely written request, we will provide a written insurance offer 
for such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than grain sorghum, has been 
planted and is intended for harvest, or has been harvested in the same 
crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of grain sorghum acres timely planted and late planted. 
For example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent share. The acreage is located 
in a single ASCS Farm Serial Number which you insure as two separate 
optional units consisting of 50 acres each. If you planted 60 acres of 
grain sorghum on one optional unit and 40 acres of grain sorghum on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more grain 
sorghum acreage under this contract than is eligible for prevented 
planting coverage, we will allocate the eligible acreage to insured 
units based on the number of prevented planting acres and share you 
reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to grain sorghum in 
the crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured grain sorghum must initially be planted in order to 
be insured for the full production guarantee.
    (c) Harvest--completion of combining or threshing grain sorghum for 
grain on any acreage.
    (d) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated grain sorghum 
acreage.
    (e) Late planted--acreage planted during the late planting period.
    (f) Late planting period--the period which begins the day after the 
final planting date for grain sorghum and ends twenty-five (25) days 
after the final planting date.
    (g) Prevented planting--inability to plant grain sorghum with proper 
equipment by:
    (1) The final planting date for grain sorghum in the county; or
    (2) The end of the late planting period.
    You must have been unable to plant grain sorghum due to an insured 
cause of loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (h) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.

[[Page 104]]

    (i) Replanting--performing the cultural practices necessary to 
replace the grain sorghum seed, and replacing the seed in the insured 
acreage with the expectation of growing a successful crop.
    (j) Timely planted--grain sorghum planted by the final planting 
date, as established by the Actuarial Table, for grain sorghum in the 
county to be planted for harvest in the crop year.

[52 FR 45151, Nov. 25, 1987, as amended at 54 FR 20504, May 12, 1989; 56 
FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 1992; 58 FR 3207, Jan. 8, 
1993; 58 FR 67638, Dec. 22, 1993; 60 FR 56934, Nov. 13, 1995]



Sec. 401.114  Canning and processing tomato endorsement.

    The provisions of the Canning and Processing Tomato Endorsement for 
the 1988 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                Canning And Processing Tomato Endorsement

                             1. Insured Crop

    a. The crop insured will be tomatoes which are planted for harvest 
as canning or processing tomatoes.
    b. In addition to the tomatoes not insurable in section 2 of the 
general crop insurance policy, we do not insure any tomatoes:
    (1) Which are not grown under a written contract with a canner or 
processor or excluded from the canner or processor contract for, or 
during, the crop year. (Prior to the date you report your acreage, the 
contract must be completed to the extent that a binding agreement exists 
requiring the insured to deliver a stated amount of tomatoes and 
requiring the processor to accept that amount.); or
    (2) Except in California, that are grown on acreage where tomatoes 
have been grown in either of the two previous crop years.
    c. A late planting option will be available on tomatoes.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the general crop insurance policy, we will not insure any 
loss of production due to failure to market the tomatoes unless such 
failure is due to actual physical damage from a cause specified in 
subsection 2.a.

                        3. Production Guarantees

    a. The production guarantees per acre are progressive by stages and 
increase, at specified intervals, to the final stage production 
guarantee. The stages and production guarantees are:
    (1) First stage is from planning until first fruit set, the first 
stage production guarantee is 50% of the final stage production 
guarantee;
    (2) Second stage is from first fruit set until harvest, the second 
stage production guarantee is 80% of the final stage production 
guarantee; and
    (3) Third stage (final stage) is harvested acreage, the third stage 
production guarantee is the final stage guarantee.
    b. Any acreage of tomatoes damaged to the extent that growers in the 
area would not further care for the tomatoes, will be deemed to have 
been destroyed even though the tomatoes continue to be cared for. The 
production for such acreage will be the guarantee for the stage (either 
first or second) in which such damage occurs.

                            4. Annual Premium

    a. The annual premium amount is computed by multiplying the final 
stage production guarantee times the price election, times the premium 
rate, times the insured acreage, times your share at the time of 
planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the experience table contained in the canning and 
processing tomato policy for the 1984 crop year, you will continue to 
receive the benefit of the reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

[[Page 105]]

                           5. Insurance Period

    The date the canner or processor no longer accepts production under 
the contract which covers the insured acreage planted for the contract 
year is added to Section 7 of the general crop insurance policy as one 
of the events which designates the end of the insurance period. The 
calendar date for the end of the insurance period in California is 
October 20 of the calendar year in which the tomatoes are normally 
harvested (October 10 in all other States).

                            6. Unit Division

    Tomato acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium if required by 
the actuarial table and if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year; and either
    a. Acreage planted to insured tomatoes is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage can be easily determined; and
    (2) The tomatoes are planted in such a manner that the planting 
pattern does not continue into the adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured tomatoes is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both an irrigated and nonirrigated practice are carried out, 
provided:
    (1) Tomatoes planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       7. Notice of Damage or Loss

    a. In addition to the notices required in section 8 of the general 
crop insurance policy, if you are going to claim an indemnity on any 
unit, you must give us notice within 72 hours:
    (1) Of when harvest would normally start if any acreage on the unit 
is not to be harvested;
    (2) Of discontinuance of harvest on the unit; or
    (3) If you are unable to deliver production to the canner or 
processor.
    b. The tomato vines on any hard-harvested acreage must not be 
destroyed until inspected by us if an indemnity is to be claimed on the 
unit.
    c. For the purpose of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         8. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of tomatoes to be 
counted (see subsection 8.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (tons) to be counted for a unit will 
include:
    (1) All harvested tomato production marketed and any tomato 
production which does not meet the quality requirements of the canner or 
processor contract due to not being timely marketed;
    (2) All appraised production which will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good tomato farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
put to another use without our prior written consent, or damaged solely 
by an uninsured cause;
    (c) For acreage which does not qualify for the final period 
guarantee, any amount of appraised and harvested production in excess of 
the difference between the final period guarantee and the guarantee 
applicable to such acreage;
    (d) Production lost due to uninsured causes; and
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of tomatoes becomes 
general in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.

                  9. Cancellation and Termination Dates

    The cancellation and termination dates are February 15 in California 
and April 15 in all other states.

[[Page 106]]

                          10. Contract Changes

    The date by which contract changes will be available in your service 
is November 30 preceding the cancellation date for counties with a 
February 15 cancellation date and December 31 preceding the cancellation 
date for all other counties.

                          11. Meaning of Terms

    a. First fruit set means the reproductive stage of the plant when 
30% of the plants have produced a fruit that has reached a minimum of 
one inch in diameter.
    b. Harvest means severance of tomatoes from the vines for the 
purpose of delivery to a canner or processor.

[52 FR 45599, Dec. 1, 1987, as amended at 54 FR 20504, May 12, 1989]



Sec. 401.115  Texas citrus endorsement.

    The provisions of the Texas Citrus Crop Insurance Endorsement for 
the 1989 and subsequent crop year are as follows:

                   Federal Crop Insurance Corporation

                        Texas Citrus Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following citrus types you 
elect:
    Type I  Early and mid-season oranges;
    Type II  Late oranges (including temples);
    Type III  Grapefruit, except types IV and V;
    Type IV  Rio Red and Star Ruby grapefruit; or
    Type V  Ruby Red grapefruit.
    b. In addition to the citrus not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus:
    (1) Which is not irrigated;
    (2) If the producing trees have not produced an average yield of 
three tons of oranges or grapefruit per acre the previous year unless 
the trees are inspected by us and we agree, in writing, to the amount of 
insurance coverage;
    (3) If acceptable production records of at least the previous crop 
year are not available; or
    (4) Which we inspect and consider not acceptable.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Freeze;
    (2) Frost;
    (3) Excess moisture;
    (4) Hail;
    (5) Fire;
    (6) Tornado;
    (7) Excess wind;
    (8) Wildlife;
    (9) Failure of the irrigation water supply; or
    (10) Direct Mediterranean Fruit Fly damage; unless those causes are 
excepted, excluded, or limited by the actuarial table or section 9 of 
the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
loss of production due to fire if weeds and other forms of undergrowth 
have not been controlled or tree pruning debris has not been removed 
from the grove. We also specifically do not insure against the inability 
to market the fruit as a direct result of quarantine, boycott, or 
refusal of any entity to accept production unless the refused production 
has actual physical damage due to a cause specified in subsection 2.a.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. The date by which you must annually submit the acreage report is 
June 30 of the calendar year the insured crop normally blooms.

            4. Production Reporting and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees; and
    (2) The number of trees topped, hedged, or pruned.
    b. In lieu of the method described in section 4 of the general crop 
insurance policy to determine the yield used to compute your production 
guarantee, your second stage (final stage) production guarantee will be 
based on our appraisal of current crop potential. This appraisal will be 
performed on or before insurance attaches.
    c. The production guarantees per acre are progressive by stages and 
increase, at specified intervals, to the final stage production 
guarantees. The stages and production guarantees are:
    (1) First stage is from the date insurance attaches until May 1 of 
the calendar year of normal bloom, the production guarantee will be:
    (a) Forty percent (40%) of the yield used to determine the previous 
year's production guarantee multiplied by the percentage of yield 
(coverage level) for the current crop year if you had insurance for the 
previous crop year; or

[[Page 107]]

    (b) Forty percent (40%) of your production for the previous year per 
acre multiplied by the percentage of yield (coverage level) for the 
current crop year if you did not have insurance for the previous crop 
year.
    (2) Second stage (final stage) is from May 1 of the calendar year of 
normal bloom until the end of the insurance period, the production 
guarantee is the final stage production guarantee.
    d. Any acreage of citrus damaged to the extent that growers in the 
area would not further care for the citrus, will be deemed to have been 
destroyed even though the citrus continues to be cared for. The 
production guarantee for such acreage will be the guarantee for the 
stage in which such damage occurs.

                               5. Premium

    The premium amount is computed:
    a. For citrus damaged in the first stage to the extent that growers 
in the area would not further care for the citrus, by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.
    b. If subsection 5.a. does not apply, by multiplying the second 
stage production guarantee times the price election, times the premium 
rate, times the insured acreage, times your share on the date insurance 
attaches.

                           6. Insurance Period

    In lieu of section 7 of the General Crop Insurance Policy, insurance 
attaches on December 1 prior to the calendar year of normal bloom except 
if we accept your application for insurance after November 30, insurance 
will attach on the thirtieth (30th) day after you sign and submit a 
properly completed application. Insurance will not attach to any acreage 
inspected by us and determined to be unacceptable. Insurance ends on 
each unit at the earliest of:
    (1) Total destruction of the citrus;
    (2) Harvest;
    (3) The date harvest would normally start on any acreage which will 
not be harvested;
    (4) Final adjustment of a loss; or
    (5) May 31 of the calendar year following the normal year of bloom.

                            7. Unit Division

    a. Citrus acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if you agree to pay 
additional premium as required by the actuarial table and if, for each 
proposed unit, you maintain written, verifiable records of planted 
acreage and harvested production for at least the previous crop year. 
The acreage planted to insured citrus must be located in separate 
legally identifiable sections, the boundaries of the sections must be 
clearly identified, the insured acreage must be easily determined, and 
each unit must be non-contiguous. If you have a loss on any unit, 
production records for all harvested units must be provided. Production 
that is commingled between optional units will cause those units to be 
combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy, if the insured citrus is damaged by excess moisture, 
you must give us notice of such damage within seventy-two (72) hours of 
occurrence.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee for 
the applicable stage (see subsection 4.c.);
    (2) Subtracting therefrom the total production of citrus to be 
counted (see subsection 9.e.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production to be counted for a unit will include all 
harvested and appraised production.
    (1) Any citrus production which is not marketed as fresh fruit and, 
due to insurable causes, does not contain 120 or more gallons of juice 
per ton, will be adjusted by:
    (a) Dividing the gallons of juice per ton obtained from the damaged 
citrus by 120; and
    (b) Multiplying the result by the number of tons of such citrus. If 
records of actual juice content are not available, an average juice 
content will be used.
    (2) Where the actuarial table provides for, and you elect the fresh 
fruit option, citrus production which is not marketable as fresh fruit 
due to insurable causes will be adjusted by:
    (a) Dividing the value per ton of the damaged citrus by the price of 
undamaged citrus; and
    (b) Multiplying the result by the number of tons of such citrus.
    The applicable price for undamaged citrus will be the local market 
price the week before damage occurred, or the contract price if the 
contract was entered into between the producer and buyer before damage 
occurred.
    (3) Any production will be considered marketed or marketable as 
fresh fruit unless due to insurable causes, such production was not 
marketed as fresh fruit.

[[Page 108]]

    (4) In the absence of acceptable records to determine the 
disposition of harvested citrus, we may elect to determine such 
disposition and the amount of such production to be counted for the 
unit.
    (5) Any citrus on the ground which is not picked up and marketed 
will be considered lost if the damage was due to an insured cause.
    (6) Appraised production to be counted will include:
    (a) Unharvested production, and potential production lost due to 
uninsured causes and failure to follow recognized good citrus farming 
practices; and
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent.
    (7) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and is reappraised by us; or
    (b) Harvested.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are November 30 prior to the 
calendar year of the normal bloom.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the period beginning with the date insurance 
attaches to the citrus crop and extending through normal harvest time, 
and will be designated by the calendar year following the year in which 
the bloom is normally set.
    b. Direct mediterranean fruit fly damage means the actual physical 
damage to the citrus on the unit which causes such citrus to be 
unmarketable and will not include inability to market such citrus as a 
direct result of a quarantine, boycott, or refusal to accept the citrus 
by any entity without regard to actual physical damage to such citrus.
    c. Excess moisture means that more than 20 inches of precipitation 
have fallen on the grove within a 72 hour period.
    d. Excess wind means a natural movement of air which has sustained 
speeds in excess of 58 miles per hour recorded at the U.S. Weather 
Service reporting station nearest to the crop at the time of crop 
damage.
    e. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit.
    f. Frost means the condition that exists when the air temperature 
around the tree falls to 32 degrees Fahrenheit or below.
    g. Harvest means the severance of mature citrus from the tree either 
by pulling, picking, or by mechanical or chemical means, or picking up 
the marketable fruit from the ground.
    h. Hedged means to cut back the side branches for better or more 
fruitful growth.
    i. Non-contiguous land means land which is not touching at any 
point. Land which is separated by only a public or private right-of-way 
will be considered to be touching (contiguous).
    j. Topped means to cut back the upper branches for better or more 
fruitful growth.

[53 FR 6966, Mar. 4, 1988]



Sec. 401.116  Flaxseed endorsement.

    The provisions of the Flaxseed Crop Insurance Endorsement for the 
1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                          Flaxseed Endorsement

                             1. Insured Crop

    a. The crop insured will be flaxseed planted for harvest as seed.
    b. In addition to the flaxseed not insurable in section 2 of the 
general crop insurance policy, we do not insure any flaxseed if the seed 
has not been mechanically incorporated into the soil in rows unless 
another method of planting is specifically allowed by the actuarial 
table.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;
unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table

[[Page 109]]

in the flax policy in effect for the 1984 crop year, you will continue 
to receive the benefit of the reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
following planting.

                            5. Unit Division

    Flaxseed acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided by 
the actuarial table and if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year and either;
    a. Acreage planted to the insured flaxseed is located in separate, 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified, and the insured acreage can be easily determined; 
and
    (2) The flaxseed is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    b. The acreage planted to the insured flaxseed is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both irrigated and nonirrigated practices are carried out, 
provided:
    (1) Flaxseed planted on the irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insurable 
flaxseed are part of the irrigated unit. The production from the total 
unit, both irrigated and nonirrigated, is combined to determine your 
yield for the purpose of determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    For purposes of Section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of flaxseed to be 
counted (see subsection 7.b.);
    Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature flaxseed production which, due to insurable causes, has a 
test weight or less than 47 pounds per bushel or, as determined by a 
grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act, contains more than 15 
percent damaged flaxseed, will be adjusted by:
    (i) Dividing the value per bushel of the insured flaxseed by the 
price per bushel of U.S. No. 2 flaxseed; and
    (ii) Multiplying the result by the number of bushels of insured 
flaxseed.
    (b) The applicable price for No. 2 flaxseed will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
insured flaxseed is sold.
    (2) All appraised production will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good flaxseed farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use (other than harvest) without our prior written 
consent or damaged solely by an uninsured cause;
    (c) Appraised production on unharvested acreage; and
    (d) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of flax becomes general in 
the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.

[[Page 110]]

                  8. Cancellation and Termination Date.

    The cancellation and termination date for all states is April 15.

                           9. Contract Changes

    Contract changes will be available at your service office by 
December 31 prior to the cancellation date.

                          10. Meaning of Terms

    a. Harvest of flaxseed on the unit means combining, or removal from 
the field.
    b. Section is a unit of measure under the rectangular survey system 
describing a tract of land generally one mile square, usually consisting 
of approximately 640 acres.

[53 FR 4379, Feb. 16, 1988, as amended at 54 FR 20504, May 12, 1989; 60 
FR 56934, Nov. 13, 1995]



Sec. 401.117  Soybean endorsement.

    The provisions of the Soybean Crop Insurance Endorsement for the 
1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Soybean Endorsement

                             1. Insured Crop

    a. The crop insured will be soybeans planted for harvest as beans.
    b. In addition to the soybeans not insurable under section 2 of the 
general crop insurance policy, we do not insure any soybeans if the seed 
has not been mechanically incorporated into the soil in rows during the 
planting process unless another method is specifically allowed by the 
actuarial table.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;
    Unless those causes are excepted, excluded, or limited by the 
actuarial table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting, 
times any applicable premium adjustment percentage for which you may 
qualify as shown in the actuarial table, because:
    (1) You have not selected optional units; or
    (2) You are eligible for a good insuring experience discount.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1983 crop year 
under the terms of the experience table contained in the soybean policy 
in effect for the 1984 crop year, you will continue to receive the 
benefit of the reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In accordance with the provisions of section 7 of the general crop 
insurance policy the calendar date for the end of the insurance period 
in all states is December 10 immediately following planting.

                            5. Unit Division

    Soybean acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if for each proposed unit:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to the insured soybeans is located in separate, 
legally identifiable sections (except in Florida) or, in the absence of 
section descriptions (and in Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage is easily determined; and
    (2) The soybeans are planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number; or
    c. The acreage planted to the insured soybeans is located in a 
single section or ASCS Farm Serial Number and consists of acreage on 
which both an irrigated and non-irrigated practices are carried out, 
provided:

[[Page 111]]

    (1) Soybeans planted on the irrigated acreage do not continue into 
non-irrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and non-irrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your soybean 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced by the factor contained in the 
actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of soybeans to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    b. The total production (bushels) to be counted for a unit will 
include:
    (1) All harvested production and may be adjusted for moisture or 
quality as follows:
    (a) Mature soybean production which is not eligible for quality 
adjustment will be reduced .12 percent for each .1 percentage point of 
moisture in excess of 13.0 percent.
    (b) Soybean production which, due to insurable causes, has a test 
weight of less than 49 pounds per bushel or is of distinctly low quality 
as determined by a grain grader licensed by the Federal Grain Inspection 
Service or licensed under the United States Warehouse Act will be 
adjusted by:
    (i) Dividing the value per bushel of such soybeans by the price per 
bushel of U.S. No. 1 soybeans; and
    (ii) Multiplying the result by the number of bushels of such 
soybeans.
    (c) The applicable price for No. 2 soybeans will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
insured soybeans are sold.
    (2) All appraised production and will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to an uninsured causes and failure to follow 
recognized good soybean farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use (other than harvest) without our prior written 
consent or damaged solely by an uninsured cause;
    (c) Any appraised production on unharvested acreage;
    (d) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of soybeans becomes 
general in the county and reappraised by us;
    (ii) Further damaged by an insured cause and reappraised by us; or
    (iii) Harvested.
    c. A replanting payment is available under this endorsement. The 
replanting payment will not exceed 3 bushels multiplied by the price 
election, multiplied by your share. When the crop is replanted by a 
practice that was uninsurable as an original planting, any indemnity 
will be reduced by the amount of the replanting payment.

                8. The Cancellation and Termination Dates

------------------------------------------------------------------------
                                                   Cancellation and     
              State and county                    termination dates     
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,    February 15.               
 McMullen, La Salle, and Dimmit Counties,                               
 Texas and all Texas counties lying south                               
 thereof.                                                               
Alabama; Arizona; Arkansas; California;      March 31.                  
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina;                                
 and El Paso, Hudspeth, Culberson, Reeves,                              
 Loving, Winkler, Ector, Upton, Reagan,                                 
 Sterling, Coke, Tom Green, Concho,                                     
 McCulloch, San Saba, Mills, Hamilton,                                  
 Bosque, Johnson, Tarrant, Wise, Cooke                                  
 Counties, Texas, and all Texas counties                                
 lying south and east thereof to and                                    
 including Maverick, Zavala, Frio,                                      
 Atascosa, Karnes, De Witt, Lavaca,                                     
 Colorado, Wharton, and Matagorda Counties,                             
 Texas.                                                                 
All other Texas counties and all other       April 15.                  
 states.                                                                
------------------------------------------------------------------------

                          9. Contract changes.

    Contract changes will be available at your service office by 
December 31 preceding the cancellation date for counties with an April 
15 cancellation date (February 15, 1992, for the 1992 crop year only), 
and by November 30 preceding the cancellation date (February 15, 1992, 
for the 1992 crop year only), for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to soybeans during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced

[[Page 112]]

production guarantees for such acreage. The reduced guarantees will be 
combined with the production guarantee for timely planted acreage for 
each unit. The premium amount for late planted acreage and eligible 
prevented planting acreage will be the same as that for timely planted 
acreage. For example, assume you insure one unit in which you have a 100 
percent (100%) share. The unit consists of 150 acres, of which 50 acres 
were planted timely, 50 acres were planted 7 days after the final 
planting date (late planted), and 50 acres are unplanted and eligible 
for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by fifty percent (0.50) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.

The total of the three calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(h)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the soybeans continues after the final planting 
date, or you are prevented from planting soybeans during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting soybeans (see subparagraph 
11.(h)), you may elect:
    (i) To plant soybeans during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be fifty percent 
(0.50) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 30 
bushels per acre, your prevented planting production guarantee would be 
equivalent to 15 bushels per acre (30 bushels multiplied by 0.50). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant soybeans after the late planting period. The 
production guarantee for such acreage will be fifty percent (0.50) of 
the production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 30 bushels per acre, 
your prevented planting production guarantee would be equivalent to 15 
bushels per acre (30 bushels multiplied by 0.50). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for soybeans.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to soybeans on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date); or
    (B) One hundred percent (100%) of the simple average of the number 
of acres planted to soybeans during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.

[[Page 113]]

    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of soybean acres properly prepared to carry out 
an irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for soybeans in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than soybeans, has been planted 
and is intended for harvest, or has been harvested in the same crop 
year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of soybean acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of soybeans on one optional unit and 40 acres of soybeans on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more 
soybean acreage under this contract than is eligible for prevented 
planting coverage, we will allocate the eligible acreage to insured 
units based on the number of prevented planting acres and share you 
reported for each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to soybeans in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Distinctly low quality--(1) Exceeding 8.0 percent kernel damage 
(excluding heat damage); (2) Having a musty, sour, or commercially 
objectionable foreign odor which causes the beans to grade U.S. Sample 
grade; or (3) Graded as ``Garlicky.''
    (c) Final planting date--the date contained in the Actuarial Table 
by which the insured soybeans must initially be planted in order to be 
insured for the full production guarantee.
    (d) Harvest--completion of combining or threshing of soybeans on any 
acreage.
    (e) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated soybean acreage.
    (f) Late planted--acreage planted during the late planting period.
    (g) Late planting period--the period which begins the day after the 
final planting date for soybeans and ends twenty-five (25) days after 
the final planting date.
    (h) Prevented planting--inability to plant soybeans with proper 
equipment by:
    (1) The final planting date for soybeans in the county; or
    (2) The end of the late planting period.

You must have been unable to plant soybeans due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (i) Production guarantee--the number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (j) Replanting--performing the cultural practices necessary to 
replace the soybean seed, and replacing the seed in the insured acreage 
with the expectation of growing a successful crop.

[[Page 114]]

    (k) Timely planted--soybeans planted by the final planting date, as 
established by the Actuarial Table, for soybeans in the county to be 
planted for harvest in the crop year.

[52 FR 45153, Nov. 25, 1987; 53 FR 1001, Jan. 15, 1988, as amended at 54 
FR 48072, Nov. 21, 1989; 55 FR 42552, Oct. 22, 1990; 55 FR 50813, Dec. 
11, 1990; 56 FR 58302, Nov. 19, 1991; 57 FR 2008, Jan. 17, 1992; 58 FR 
3209, Jan. 8, 1993; 58 FR 67639, Dec. 22, 1993; 60 FR 56934, Nov. 13, 
1995]



Sec. 401.118  Canning and processing bean endorsement.

    The provisions of the Canning and Processing Bean Endorsement for 
the 1988 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                 Canning and Processing Bean Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be fresh beans (snap and lima) which are 
planted for harvest as canning or processing beans.
    b. In addition to the beans not insurable under section 2 of the 
general crop insurance policy, we do not insure any beans;
    (1) Not grown under a contract with a canner, processor or broker or 
excluded from the canner, processor or broker contract for, or during, 
the crop year (The contract must be executed and effective before you 
report your acreage);
    (2) Planted for the fresh market; or
    (3) Planted to snap beans, lima beans, green peas, mint, rye, 
soybeans, or sunflowers the previous crop year unless otherwise provided 
for on the actuarial table.
    c. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured beans are grown and which 
provides for delivery under certain conditions and at a stipulated price 
will, for the purpose of this endorsement, be treated as a contract 
under which you have a share in the beans.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the general crop insurance policy.
    b. In addition to the causes not insured against in section 1 of the 
General Crop Insurance Policy, we will not insure against any loss of 
production due to the crop not being timely harvested unless such delay 
in harvesting is solely and directly due to adverse weather conditions 
which preclude harvesting equipment from entering into and moving about 
the unit.

                           3. Annual premium.

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, applying any 
applicable premium adjustment percentage (as shown in the actuarial 
table), for which you may qualify because you have not selected optional 
units.

                           4. Insurance period

    In addition to the provisions in section 7 of the general crop 
insurance policy, for unharvested acreage, the date by which acreage 
should have been harvested is added as one of the dates, the earliest of 
which is used to designate the end of the insurance period. The calendar 
date for the end of the insurance period is the applicable date of the 
year in which the beans are normally harvested, as follows:

Delaware, Maryland, and New Jersey--All   October 15.                   
 Beans.                                                                 
New York--Snap Beans....................  September 30.                 
Utah--All Beans.........................  October 5.                    
All other states--Snap Beans............  September 20.                 
All other states--Lima Beans............  October 5.                    
                                                                        

                            5. Unit division.

    In addition to units defined in section 17 of the General Crop 
Insurance Policy, canning and processing bean acreage may be divided 
into units by type (smap or lima). For Idaho, Illinois, Indiana, Iowa, 
Michigan, Minnesota, New York, Oregon, Pennsylvania, Tennessee, Utah, 
Washington, and Wisconsin, bean acreage that would otherwise be one unit 
may be further divided, if for each proposed unit you maintain written, 
verifiable records of planted acreage and harvested production for at 
least the previous crop year and either:
    a. Acreage planted to the insured beans is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate ASCS Farm Serial 
Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage can be easily determined; and
    (2) The beans are planted in such a manner that the planting pattern 
does not continue

[[Page 115]]

into the adjacent section or ASCS Farm Serial Number; or
    b. The acreage planted to the insured beans is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Beans planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system planted to insurable beans 
are part of the irrigated unit. Production on the total unit, both 
irrigated and non-irrigated, will be combined to determine the yield for 
the purpose of determining the guarantee for the unit); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    In addition to the notices required in section 8 of the general crop 
insurance policy if you are going to claim an indemnity on any unit 
which is not to be harvested or on which harvest has been discontinued, 
you must give us notice not later than 48 hours:
    (1) After the time harvest would normally start; or
    (2) After discontinuance of harvest.
    For the purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total bean production (tons) to be 
counted;
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (tons) to be counted for a unit will include 
all harvested and appraised production.
    (1) The tons of harvested production will be either the total net 
tons delivered to the processor or broker for which payment was 
received, as shown on the processor or broker settlement sheet, or will 
be determined by dividing the dollar amount received from the processor 
or broker by the contract price for the sieve size or grade factor 
designated by the actuarial table.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good bean farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
put to another use without our prior written consent or damaged solely 
by an uninsured cause; and
    (c) Appraised production on unharvested acreage.
    (d) If any acreage is not timely harvested, the production to count 
will be the greater of:
    (i) That designated by the actuarial table;
    (ii) The appraised production; or
    (iii) The dollar amount received from the processor divided by the 
processor's base contract price per ton.
    (e) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of beans becomes general 
in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates for all states are April 15.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Harvest means the mechanical picking of bean pods from the vines 
for the purpose of delivery to the canner or processor.

[53 FR 6560, Mar. 2, 1988, as amended at 53 FR 9100, Mar. 21, 1988; 54 
FR 20503, May 12, 1989; 55 FR 1785, Jan. 19, 1990]



Sec. 401.119   Cotton endorsement.

    The provisions of the Cotton Crop Insurance Endorsement for the 1990 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                           Cotton Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be American Upland lint cotton.
    b. The acreage insured of skip-row cotton will be the acreage 
occupied by rows of cotton after eliminating the skipped-row portions.

[[Page 116]]

    c. In addition to the cotton not insurable under section 2 of the 
general crop insurance policy, we do not insure any cotton:
    (1) Which is not irrigated and, in the same calendar year, is grown:
    (a) Where a hay crop was harvested; or
    (b) Where a small grain crop reached the heading stage.
    (2) Planted in excess of any mandatory acreage limitations 
applicable to the farm by any program administered by the United States 
Department of Agriculture; or
    (3) Destroyed, or put to another use in order to comply with other 
United States Department of Agriculture programs.
    d. In lieu of subsection 2.e.(7) of the general crop insurance 
policy, we do not insure any cotton planted with another spring planted 
crop.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment factor for which you may qualify as 
contained in the actuarial table, because: (1) You have not selected 
optional units; or (2) You are eligible for good insuring experience 
discount.

                           4. Insurance Period

    a. In lieu of subsection 7.b of the general crop insurance policy 
(harvest of the unit), insurance will end upon removal of the cotton 
from the field.
    b. The calendar dates for the end of the insurance period are as 
follows:

(1) Val Verde, Edwards, Kerr, Kendall,     September 30.                
 Bexar, Wilson, Karnes, Goliad, Victoria,                               
 and Jackson counties, Texas, and all                                   
 Texas counties lying South thereof.                                    
(2) Arizona, California, New Mexico,       January 31.                  
 Oklahoma, and all other Texas counties.                                
(3) All other states.....................  December 31.                 
                                                                        

                            5. Unit Division

    Cotton acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one optional unit, if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured cotton is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in Florida), the land is identified by separate ASCS 
Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The cotton is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured cotton is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Cotton planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your cotton 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided on the actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of cotton to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.

[[Page 117]]

    b. The total production to be counted for a unit will include:
    (1) All harvested production; and
    (2) All appraised production which will include:
    (a) Mature and potential production on unharvested acreage;
    (b) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good cotton farming practices;
    (c) Not less than the applicable guarantee for any acreage which is 
abandoned or put to another use without our prior written consent or 
damaged solely by an uninsured cause; and
    (d) Not less than 25 percent of the production guarantee per acre 
for any acreage of cotton that is immature when we determine that 
harvest of cotton becomes general in the county.
    (e) Production on insured acreage for which we have given written 
consent to be put to another use, unless such acreage is:
    (i) Not put to another use before harvest of cotton becomes general 
in the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested; and
    (f) Production of not less than the harvested guarantee on acreage 
where the stalks have been destroyed without our written consent.
    c. When mature cotton (harvested or unharvested) has been damaged 
solely by insured causes, the production to count will be reduced if, on 
the date the final notice of loss is given by the insured, the price 
quotation for cotton of like quality (price quotation ``A'') for the 
applicable growth area is less than 75 percent of price quotation ``B.'' 
Price quotation ``B'' will be that day's growth area price quotation for 
the same area for cotton of the grade, staple length, and micronaire 
reading shown by the actuarial table for this purpose. The pounds of 
production to be counted will be determined by multiplying the number of 
pounds (harvested and appraised) of mature cotton by price quotation 
``A'' and dividing the result by 75 percent of price quotation ``B.''

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

State and County:                                                       
    Val Verde, Edwards, Kerr, Kendall,      February 15.                
     Bexar, Wilson, Karnes, Goliad,                                     
     Victoria, and Jackson Counties,                                    
     Texas, and all Texas counties lying                                
     south thereof.                                                     
    Alabama; Arizona; Arkansas;             March 31.                   
     California; Florida; Georgia;                                      
     Louisiana; Mississippi; Nevada; North                              
     Carolina; South Carolina; and El                                   
     Paso, Hudspeth, Culberson, Reeves,                                 
     Loving, Winkler, Ector, Upton,                                     
     Reagan, Sterling, Coke, Tom Green,                                 
     Concho, McCulloch, San Saba, Mills,                                
     Hamilton, Bosque, Johnson, Tarrant,                                
     Wise, Cooke Counties, Texas, and all                               
     Texas counties lying south and east                                
     thereof to and including Terrell,                                  
     Crockett, Sutton, Kimble, Gillespie,                               
     Blanco, Comal, Guadalupe, Gonzales,                                
     De Witt, Lavaca, Colorado, Wharton,                                
     and Matagorda Counties, Texas.                                     
    All other Texas counties and all other  April 15.                   
     States.                                                            
                                                                        

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and November 30 preceding the cancellation 
date for all other Counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to cotton during the late planting period (see subparagraph 
(c)), and acreage you were prevented from planting (see subparagraph 
(d)). These coverages provide reduced production guarantees for such 
acreage. The reduced guarantees will be combined with the production 
guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. For example, assume you 
insure one unit in which you have a 100 percent (100%) share. The unit 
consist of 150 acres, of which 50 acres were planted timely, 50 acres 
were planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by thirty-five percent (0.35) and 
multiply the result by the 50

[[Page 118]]

acres eligible for prevented planting coverage.

The total of the three calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) You must provide written notice to us if you were prevented from 
planting (see subparagraph 11.(k)). This notice must be given not later 
than three (3) days after:
    (1) The final planting date if you have unplanted acreage that may 
be eligible for prevented planting coverage; and
    (2) The date you stop planting within the late planting period on 
any unit that may have acreage eligible for prevented planting coverage.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the cotton continues after the final planting 
date, or you are prevented from planting cotton during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting cotton (see subparagraph 
11.(k)), you may elect:
    (i) To plant cotton during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
subparagraph 10.(c)(1);
    (ii) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be thirty-five 
percent (0.35) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 700 
pounds per acre, your prevented planting production guarantee would be 
equivalent to 245 pounds per acre (700 pounds multiplied by 0.35). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (iii) To plant cotton after the late planting period. The production 
guarantee for such acreage will be thirty-five percent (0.35) of the 
production guarantee for timely planted acres. For example, if your 
production guarantee for timely planted acreage is 700 pounds per acre, 
your prevented planting production guarantee would be equivalent to 245 
pounds per acre (700 pounds multiplied by 0.35). Production to count for 
such acreage will be determined in accordance with subparagraphs 7.b. 
and c.
    (2) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8) and subparagraph 11.(b) 
(Meaning of Terms) of this endorsement, the beginning of the insurance 
period for prevented planting coverage is the sales closing date 
designated in the Actuarial Table for cotton.
    (3) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (i) Eligible acreage will not exceed the greater of:
    (A) The number of acres planted to cotton on each ASCS Farm Serial 
Number during the previous crop year (adjusted for any reconstitution 
which may have occurred prior to the sales closing date);
    (B) The ASCS base acreage for cotton reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to cotton during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres properly prepared to carry out an 
irrigated practice.
    (iii) A prevented planting production guarantee will not be provided 
for:
    (A) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (B) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for cotton in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (C) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (D) Land on which any crop, other than cotton, has been planted and 
is intended for

[[Page 119]]

harvest, or has been harvested in the same crop year; or
    (E) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of cotton acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single ASCS Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of cotton on one optional unit and 40 acres of cotton on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero). If you report more cotton 
acreage under this contract than is eligible for prevented planting 
coverage, we will allocate the eligible acreage to insured units based 
on the number of prevented planting acres and share you reported for 
each unit.
    (4) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to cotton in the 
crop year.
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date, even though you may elect to plant the 
acreage after the late planting period. Any acreage you report as 
eligible for prevented planting coverage which we determine is not 
eligible will be deleted from prevented planting coverage.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be providing for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Cotton--only American Upland Cotton.
    (b) Crop year--the period beginning at planting and extending 
through the end of the insurance period shown in section 4 and is 
designated by the calendar year in which the crop is normally planted.
    (c) Days--calendar days.
    (d) Final planting date--the date contained in the Actuarial Table 
by which the insured cotton must initially be planted in order to be 
insured for the full production guarantee.
    (e) Growth area--a geographic area designated by the Secretary of 
Agriculture for the purpose of reporting cotton prices.
    (f) Harvest--the removal of the seed cotton on each acre from the 
open cotton boll or the severance of the open cotton boll from the stalk 
by either manual or mechanical means.
    (g) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated cotton acreage.
    (h) Late planted--acreage during the late planting period.
    (i) Late planting period--the period which begins the day after the 
final planting date for cotton and ends twenty-five (25) days after the 
final planting date.
    (j) Mature cotton--cotton which can be harvested either manually or 
mechanically and will include both unharvested and harvested cotton.
    (k) Prevented planting--inability to plant cotton with proper 
equipment by:
    (1) The final planting date for cotton in the county; or
    (2) The end of the late planting period.

You must have been unable to plant cotton due to an insured cause of 
loss which is general in the area (i.e., most producers in the 
surrounding area are unable to plant due to similar insurable causes) 
and which occurs between the sales closing date and the final planting 
date or within the late planting period.
    (l) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for the row pattern planted, multiplied by the 
coverage level percentage you elect.
    (m) Skip-row--planting patterns consisting of alternating rows of 
cotton and fallow rows or rows of another crop (not spring-planted) as 
defined by ASCS (if non-cotton rows are occupied by another crop any 
yield factor normally applied for skip-row cotton will not be 
applicable).
    (n) Timely planted--cotton planted by the planting date, as 
established by the Actuarial Table, for cotton in the county to be 
planted for harvest in the crop year.

[54 FR 48074, Nov. 21, 1989, as amended at 58 FR 67641, Dec. 22, 1993; 
60 FR 56934, Nov. 13, 1995]

[[Page 120]]



Sec. 401.120  Rice endorsement.

    The provisions of the Rice Crop Insurance Endorsement for the 1988 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                            Rice Endorsement

                             1. Insured Crop

    a. The crop insured will be rice which is planted for harvest as 
grain.
    b. In addition to the rice not insurable under section 2 of the 
general crop insurance policy, we do not insure any rice:
    (1) Destroyed or put to another use in order to comply with other 
United States Department of Agriculture programs; or;
    (2) Which is not irrigated.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period.
    (1) Adverse weather conditions (excluding drought);
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the general crop insurance policy, we will not insure 
against my loss of production due to application of saline water.

                            3. Annual premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment percentage for which you may qualify as 
contained in the actuarial table, because;
    (a) You have not selected optional units; or
    (b) You are eligible for a good insuring experience discount.

                           4. Insurance Period

    The calendar date for the end of the insurance period is October 31 
of the calendar year on which the rice is normally harvested.

                            5. Unit Division

    Rice acreage that would otherwise be one unit, as defined in section 
17 of the general crop insurance policy, may be divided into more than 
one unit if for each proposed unit:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to the insured rice is located in separate, 
legally identifiable sections (except in Florida) or, in the absence of 
section descriptions (and in Florida) the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage is easily determined; and
    (2) The rice is planted in such a manner that the planting pattern 
does not continue into an adjacent section or ASCS Farm Serial Number; 
or
    c. If you have a loss on any unit, production records for all 
harvested units must be provided to us. Production that is commingled 
between optional units will cause those units to be combined. If your 
rice acreage is not divided into optional units as provided in this 
section, your premium amount will be reduced as provided by the 
actuarial table.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of rice to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production to be counted for a unit will include all 
harvested production including any production from a second rice crop 
harvested in the same crop year (Any mature production from volunteer 
rice growing in the rice will be counted as rice on a weight basis).
    (1) Mature rough rice production which otherwise is not eligible for 
quality adjustment will be reduced in volume by .12 percent for each .1 
percentage point of moisture in excess of 12.0 percent; or
    (2) Mature rough rice production which, due to insurable causes:

[[Page 121]]

    (a) Has a total milling yield (heads, second heads, screening, and 
brewers) of less than 68 pounds per hundredweight;
    (b) The whole kernel weight is less than 55 pounds per hundredweight 
for medium and short grain varieties;
    (c) The whole kernel weight is less than 48 pounds per hundredweight 
for long grain varieties;
    (d) Contains more than 4.0 percent chalky kernels in long grain 
varieties;
    (e) Contains more than 6.0 percent chalky kernels in medium or short 
grain varieties;
    (f) Contains more than 3.0 percent chalky kernels in other types; or
    (g) Contains more than 2.5 percent red rice will have the production 
adjusted by:
    (i) Dividing the value per pound of such rice, by the price per 
pound of U.S. No. 3 rough rice; and
    (ii) Multiplying the result by the number of pounds of such rice.

(The applicable price for No. 3 rough rice will be the nearest mill 
center price on the earlier of the day the loss is adjusted or the day 
the rice was sold).
    c. The production to be counted will include all appraised 
production as follows:
    (1) All unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good rice farming practices;
    (2) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (3) Appraised production on unharvested acreage.
    (4) Appraised production on insured acreage for which we have given 
written consent to be put to another use unless such acreage is:
    (i) Not put to another use before harvest of rice becomes general in 
the county and is reappraised by us;
    (ii) Further damaged by an insured cause and is reappraised by us; 
or
    (iii) Harvested.
    d. A replanting payment is available under this endorsement. The 
replanting payment per acre will not exceed 400 pounds multiplied by the 
price election, multiplied by your share.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
                                                   Cancellation and     
              State and county                    termination dates     
------------------------------------------------------------------------
Jackson, Victoria, Goliad, Bee, Live Oak,    February 15.               
 McMullen, LaSalle, Dimmit Counties, Texas,                             
 and all Texas counties south thereof.                                  
Missouri...................................  April 15.                  
Florida....................................  March 15.                  
All other Texas counties and all other       March 31.                  
 states.                                                                
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract charges will be available in your service 
office is December 31 preceding the cancellation date for counties with 
an April 15 cancellation date and November 30 preceding the cancellation 
date for all other counties.

                10. Late Planting and Prevented Planting

    (a) In lieu of subparagraphs 2.e.(4) and 21.o. of the General Crop 
Insurance Policy (Sec. 401.8), insurance will be provided for acreage 
planted to rice during the late planting period (see subparagraph (c)), 
and acreage you were prevented from planting (see subparagraph (d)). 
These coverages provide reduced production guarantees for such acreage. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for the 
late planted acreage and eligible prevented planting acreage will be the 
same as that for timely planted acreage. For example, assume you insure 
one unit in which you have a 100 percent (100%) share. The unit consists 
of 150 acres, of which 50 acres were planted timely, 50 acres were 
planted 7 days after the final planting date (late planted), and 50 
acres are unplanted and eligible for prevented planting coverage. To 
calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the acreage 
is eligible for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the 10th day

[[Page 122]]

following the final planting date for the insured crop. (This 
subparagraph (ii) is not applicable, and prevented planting coverage is 
not available hereunder, if you elected the Catastrophic Risk Protection 
Endorsement or you elected to exclude prevented planting coverage when a 
substitute crop is planted (see subparagraph 10(d)(1)(iii))).
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting.
    (1) For acreage planted after the final planting date but on or 
before 25 days after the final planting date, the production guarantee 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (0.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, and Practice (Acreage Report)) of the General Crop Insurance 
Policy (Sec. 401.8), you must report the dates the acreage is planted 
within the late planting period.
    (3) If planting of the rice continues after the final planting date, 
or you are prevented from planting rice during the late planting period, 
the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting rice (see subsection 11(h)), 
you may elect:
    (i) To plant rice during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
paragraph 10(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be thirty-five percent (35%) of the production guarantee 
for timely planted acres. For example, if your production guarantee for 
timely planted acreage is 2000 pounds per acre, your prevented planting 
production guarantee would be 700 pounds per acre (2000 pounds 
multiplied by 0.35). If you elect to plant the insured crop after the 
late planting period, production to count for such acreage will be 
determined in accordance with subsections 7b and c; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to seventeen and five tenths 
percent (17.5%) of the production guarantee for timely planted acres 
will be provided for such acreage, if the substitute crop is planted 
after the tenth day following the final planting date for the insured 
crop. If you elected the Catastrophic Risk Protection Endorsement or 
excluded this coverage and plant a substitute crop, no prevented 
planting coverage will be provided. For example, if your production 
guarantee for timely planted acreage is 2000 pounds per acre, your 
prevented planting production guarantee would be 350 pounds per acre 
(2000 pounds multiplied by 0.175). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for harvest and 
receive a reduction in the applicable premium rate. If you wish to 
exclude this coverage, you must so indicate, on or before the sales 
closing date, on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable sales 
closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the insurance period for 
prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for rice in the county for the crop year the application for insurance 
is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a rice crop insurance policy for the 
1996 crop year, prevented planting coverage will begin on the 1996 sales 
closing date for the insured crop in the county. If the rice coverage 
remains in effect for the 1997 crop year (is not terminated or cancelled 
during or after the 1996 crop year, except the policy may have been 
cancelled to transfer the policy to a different insurance provider, if 
there is no lapse in coverage), prevented planting coverage for the 1997 
crop year began on the 1996 sales closing date.

[[Page 123]]

    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to rice on the FSA Farm Serial 
Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to rice during the crop years that you certified to 
determine your yield.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of rice acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of rice on one optional unit and 40 acres of rice on the second 
optional unit, your prevented planting eligible acreage would be reduced 
to zero (i.e., 100 acres eligible for prevented planting coverage minus 
100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report) of the General Crop 
Insurance Policy (Sec. 401.8), you must report by unit any insurable 
acreage that you were prevented from planting. This report must be 
submitted on or before the acreage reporting date. For the purpose of 
determining acreage eligible for a prevented planting production 
guarantee the total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be

[[Page 124]]

due and no indemnity will be paid for such acreage).

                          11. Meaning of Terms

    (a) Days--calendar days.
    (b) Final planting date--the date contained in the Actuarial Table 
by which the insured rice must initially be planted in order to be 
insured for the full production guarantee.
    (c) Harvest--the completion of combining or threshing rice for grain 
on any acreage.
    (d) Late planted--acreage planted during the late planting period.
    (e) Late planting period--the period which begins the day after the 
final planting date for rice and ends twenty-five (25) days after the 
final planting date.
    (f) Mill center--any location in which two or more mills are engaged 
in milling rough rice.
    (g) Planted--uniform placement of an adequate amount of rice seed 
into a prepared seedbed by one of the following methods. Any acreage 
into which seed is placed in any other manner will not be considered as 
planted under the terms of this policy:
    (1) Drill seeding--uniform placement of the rice seed into the 
prepared seedbed by use of a grain drill that incorporates the seed to a 
proper soil depth.
    (2) Broadcast seeding--uniform distribution of the rice seed onto 
the surface of a prepared seedbed, followed by either mechanical 
incorporation of the seed to a proper soil depth in the seedbed or 
flushing the seedbed with water.
    (3) Broadcast seeding into a controlled flood--uniform distribution 
of the rice seed onto a prepared seedbed that has been intentionally 
covered by water. The water must be free of movement and be completely 
contained on the acreage by properly constructed levees and gates.
    (h) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (i) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (j) Replanting--performing the cultural practices necessary to 
replace the rice seed and replacing the rice seed in the insured acreage 
with the expectation of growing a successful crop.
    (k) Second crop rice--regrowth of a stand of rice originating from 
the initially insured rice crop following harvest and which can be 
harvested in the same crop year.
    (l) Timely planted--rice planted by the final planting date, as 
established by the Actuarial Table, for rice in the county to be planted 
for harvest in the crop year.

[52 FR 45605, Dec. 1, 1987; 54 FR 48076, Nov. 21, 1989; 57 FR 54682, 
Nov. 20, 1992; 58 FR 67642, Dec. 22, 1993; 60 FR 62721, 62722, Dec. 7, 
1995]



Sec. 401.121  ELS cotton endorsement.

    The provisions of the ELS Cotton Crop Insurance Endorsement for the 
1990 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                  Extra Long Staple Cotton Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be Extra Long Staple cotton (``ELS'') and 
American Upland lint cotton (``AUP'') if the acreage was first planted 
in the crop year to ELS cotton.
    b. The acreage of skip-row cotton insured will be the acreage 
occupied by the rows of cotton after eliminating the skipped-row 
portions.
    c. In addition to the cotton not insurable in section 2 of the 
general crop insurance policy, we do not insure any cotton:
    (1) Which is not irrigated if it is grown:
    (a) Where a hay crop was harvested in the same calendar year; or
    (b) Where a small grain crop reached the heading stage in the same 
calendar year;
    (2) Planted in excess of any mandatory acreage limitations 
applicable to the farm by any program administered by the United States 
Department of Agriculture; or
    (3) Destroyed, or put to another use in order to comply with other 
United States Department of Agriculture programs.
    d. In lieu of subsection 2.e.(7) of the general crop insurance 
policy, we do not insure any cotton planted with another spring planted 
crop.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

[[Page 125]]

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting, times any 
applicable premium adjustment percentage for which you may qualify as 
shown in the actuarial table, because you have not selected optional 
units as provided by the actuarial table.

                           4. Insurance Period

    a. In lieu of subsection 7.(b) of the general crop insurance policy, 
(harvest of the unit) insurance will end upon removal of the cotton from 
the field.
    b. The calendar date for the end of the insurance period is January 
31.

                            5. Unit Division

    Cotton acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one optional unit, if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured cotton is located in separate, legally 
identifiable sections (except in Florida) or, in the absence of section 
descriptions (and in all of Florida), the land is identified by separate 
ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the sections or ASCS Farm Serial Numbers are 
clearly identified and the insured acreage is easily determined; and
    (2) The cotton is planted in such a manner that the planting pattern 
does not continue into the adjacent section or ASCS Farm Serial Number; 
or
    c. The acreage planted to the insured cotton is located in a single 
section or ASCS Farm Serial Number and consists of acreage on which both 
an irrigated and nonirrigated practice are carried out, provided:
    (1) Cotton planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing, and harvesting are carried out in 
accordance with recognized good dryland and irrigated farming practices 
for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your cotton 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided on the actuarial table.

                       6. Notice of Damage or Loss

    In addition to the provisions in section 8 of the general crop 
insurance policy;
    a. You may not destroy any cotton on which an indemnity will be 
claimed until we give consent.
    b. You must give us notice if you are going to replant any acreage 
originally planted to ELS cotton to AUP cotton.
    c. For purposes of section 8 of the general crop insurance policy 
the representative sample of the unharvested crop must be at least 10 
feet wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of cotton to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production to be counted for a unit will include all 
harvested and appraised production.
    (1) Any mature ELS cotton production will be reduced when, due 
solely to insured causes, the quality of the ELS cotton produced is such 
that the price quotation for ELS cotton of like grade, staple length, 
and micronaire reading (price A) is less than 75 percent of price B. 
Price B is defined as the market price quotation for ELS cotton of the 
grade, staple length, and micronaire reading designated in the actuarial 
table for this purpose. The price quotations for prices A and B will be 
the market price quotations at the recognized market closest to the unit 
on the earlier of the day the loss is adjusted or the day the damaged 
ELS cotton is sold. In the absence of a price quotation on such date, 
the price quotations for the nearest prior date for which an ELS cotton 
price quotation was listed for both prices A and B will be used. The 
pounds of production to be counted will be determined by multiplying the 
number of pounds of mature production by price A and dividing the result 
by 75 percent of price B.
    (2) Any AUP cotton harvested from acreage originally planted to ELS 
cotton in the same growing season will be reduced by the factor obtained 
by dividing the price of the AUP cotton by the price of ELS cotton of 
the grade, staple length, and micronaire reading shown in our actuarial 
table. The prices will be determined at the closest recognized market to 
the insured unit of the earlier of the date the loss is adjusted or the 
date the AUP cotton was sold.
    (3) Appraised production to be counted will include:

[[Page 126]]

    (a) Mature and potential production on unharvested acreage;
    (b) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good cotton farming practices;
    (c) Not less than the applicable guarantee for any acreage which is 
abandoned or put to another use without our prior written consent or 
damaged solely by an uninsured cause; and
    (d) Not less than 25 percent of the production guarantee per acre 
for any acreage of cotton that is immature when we determine that 
harvest of cotton becomes general in the county.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of cotton becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (5) Any appraisal of the AUP cotton on acreage originally planter to 
ELS cotton will be reduced by the factor determined in section 7.b.(2) 
above. If prices are not yet available, the previous year's season 
average price will be used.
    (6) The cotton stalks must not be destroyed on any acreage for which 
an indemnity is claimed, until we give consent. An appraisal of not less 
than the guarantee may be made on acreage where the stalks have been 
destroyed without our consent.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are:

------------------------------------------------------------------------
                                           Cancellation and termination 
                 States                               dates             
------------------------------------------------------------------------
New Mexico.............................  April 15                       
All other states.......................  March 31                       
------------------------------------------------------------------------

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is November 30 preceding the cancellation date.

  10. Prevented Planting (Including Planting after the Final Planting 
                                  Date)

    (a) In lieu of subparagraph 2.e.(4) of the General Crop Insurance 
Policy (Sec. 401.8), insurance will be provided for acreage you were 
prevented from planting (see subparagraph 11.(h)). This coverage 
provides a reduced production guarantee for such acreage. The reduced 
guarantee will be combined with the production guarantee for timely 
planted acreage for each unit. The premium amount for eligible prevented 
planting acreage will be the same as that for timely planted acreage. 
For example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 100 acres, of which 50 acres were 
planted by the final planting date and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely; and
    (2) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by thirty-five percent (0.35) and 
multiply the result by the 50 acres eligible for prevented planting 
coverage.

The total of the two calculations will be the production guarantee for 
the unit. Your premium will be based on the result of multiplying the 
per acre production guarantee for timely planted acreage by the 100 
acres in the unit.
    (b) If you were prevented from planting ELS cotton (see subparagraph 
11.(h)), you may elect:
    (1) Not to plant this acreage to any crop that is intended for 
harvest in the same crop year. The production guarantee for such acreage 
which is eligible for prevented planting coverage will be thirty-five 
percent (0.35) of the production guarantee for timely planted acres. For 
example, if your production guarantee for timely planted acreage is 600 
pounds per acre, your prevented planting production guarantee would be 
equivalent to 210 pounds per acre (600 pounds multiplied by 0.35). This 
section does not prohibit the preparation and care of the acreage for 
conservation practices, such as planting a cover crop, as long as such 
crop is not intended for harvest; or
    (2) To plant ELS cotton after the final planting date. The 
production guarantee for such acreage will be thirty-five percent (0.35) 
of the production guarantee for timely planted acres. For example, if 
your production guarantee for timely planted acreage is 600 pounds per 
acre, you prevented planting production guarantee would be equivalent to 
210 pounds per acre (600 pounds multiplied by 0.35). Production to count 
for such acreage will be determined in accordance with subparagraph 7.b.
    (c) In addition to the provisions of section 7 (Insurance Period) of 
the General Crop Insurance Policy (Sec. 401.8), the beginning of the 
insurance period for prevented planting coverage is the sales closing 
date designated in the Actuarial Table for ELS cotton.
    (d) You must provide written notice to us if you were prevented from 
planting. This notice must be given not later than three (3)

[[Page 127]]

days after the final planting date if you have unplanted acreage that 
may be eligible for prevented planting coverage.
    (e) The acreage to which prevented planting coverage applies will be 
limited as follows:
    (1) Eligible acreage will not exceed the greater of:
    (i) The number of acres planted to ELS cotton on each ASCS Farm 
Serial Number during the previous crop year (adjusted for any 
reconstitution which may have occurred prior to the sales closing date);
    (ii) The ASCS base acreage for ELS cotton reduced by any acreage 
reduction applicable to the farm under any program administered by the 
United States Department of Agriculture; or
    (iii) One hundred percent (100%) of the simple average of the number 
of acres planted to ELS cotton during the crop years that were used to 
determine your yield;

unless we agree in writing, prior to the sales closing date, to approve 
acreage exceeding this limit.
    (2) Acreage intended to be planted under an irrigated practice will 
be limited to the number of ELS cotton acres properly prepared to carry 
out an irrigation practice.
    (3) A prevented planting production guarantee will not be provided 
for:
    (i) Any acreage that does not constitute at least 20 acres or 20 
percent (20%) of the acres in the unit whichever is less;
    (ii) Land for which the Actuarial Table does not designate a premium 
rate unless you submit a written request for coverage for such acreage 
prior to the sales closing date for ELS cotton in the county. Upon your 
timely written request, we will provide a written insurance offer for 
such acreage;
    (iii) Land used for conservation purposes or intended to be or 
considered to have been left unplanted under any program administered by 
the United States Department of Agriculture;
    (iv) Land on which any crop, other than ELS cotton, has been planted 
and is intended for harvest, or has been harvested in the same crop 
year; or
    (v) Land which planting history or conservation plans indicate would 
remain fallow for crop rotation purposes.
    (4) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of ELS cotton acres timely planted. For example, assume 
you have 100 acres eligible for prevented planting coverage in which you 
have a 100 percent (100%) share. The acreage is located in a single ASCS 
Farm Serial Number which you insure as two separate optional units 
consisting of 50 acres each. If you planted 60 acres of ELS cotton on 
one optional unit and 40 acres of ELS cotton on the second optional 
unit, your prevented planting eligible acreage would be reduced to zero 
(i.e., 100 acres eligible for prevented planting coverage minus 100 
acres planted equals zero). If you report more ELS cotton acreage under 
this contract than is eligible for prevented planting coverage, we will 
allocate the eligible acreage to insured units based on the number of 
prevented planting acres and share you reported for each unit.
    (f) When the ASCS Farm Serial Number covers more than one unit, or a 
unit consists of more than one ASCS Farm Serial Number, the covered 
acres will be pro-rated based on the number of acres in each unit or 
ASCS Farm Serial Number that could have been planted to ELS cotton in 
the crop year.
    (g) In accordance with the provisions of section 3 (Report of 
Acreage, Share, and Practice (Acreage Report)) of the General Crop 
Insurance Policy (Sec. 401.8), you must report any insurable acreage you 
were prevented from planting. This report must be submitted on or before 
the acreage reporting date. Any acreage you report as eligible for 
prevented planting coverage which we determine is not eligible will be 
deleted from prevented planting coverage.
    (h) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          11. Meaning of Terms

    (a) Cotton--Extra Long Staple cotton and acreage replanted to 
American Upland Cotton after ELS was destroyed by an insured cause.
    (b) Days--calendar days.
    (c) ELS Cotton--Extra Long Staple cotton (also called Pima Cotton 
and American-Egyptian Cotton).
    (d) Final planting data--the date contained in the Actuarial Table 
by which the insured ELS cotton must initially be planted in order to be 
insured for the full production guarantee.
    (e) Harvest--the removal of the seed cotton on each acre from the 
open cotton boll or the severance of the open cotton boll from the stalk 
by either manual or mechanical means.
    (f) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated ELS cotton acreage.
    (g) Mature cotton--ELS cotton which can be harvested either manually 
of mechanically and will include both unharvested and harvested cotton.

[[Page 128]]

    (h) Prevented planting--inability to plant ELS cotton with proper 
equipment by the final planting date due to an insured cause of loss 
which is general in the area (i.e., most producers in the surrounding 
area are unable to plant due to similar insurable causes) and which 
occurs between the sales closing date and the final planting date.
    (i) Production guarantee--the number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for the row pattern planted, multiplied by the 
coverage level percentage you elect.
    (j) Replanted--performing the cultural practices necessary to 
replant acreage to AUP cotton and replacing the AUP cotton seed after 
ELS cotton was destroyed by an insured cause in the same growing season.
    (k) Skip-row--planting patterns consisting of alternating rows of 
cotton and fallow rows as defined by ASCS (if non-cotton rows are 
occupied by another crop any yield factor normally applied for skip-row 
cotton will not be applicable).
    (l) Timely planted--ELS cotton planted by the final planting date, 
as established by the Actuarial Table, for ELS cotton in the county to 
be planted for harvest in the crop year.

[54 FR 48068, Nov. 21, 1989, as amended at 58 FR 67643, Dec. 22, 1993; 
60 FR 56934, Nov. 13, 1995]



Sec. 401.122  Stonefruit endorsement.

    The provisions of the Stonefruit Crop Insurance Endorsement for the 
1988 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                         Stonefruit Endorsement

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;
    (4) Wildlife;
    (5) Volcanic eruption;
    (6) An insufficient number of chilling hours to effectively break 
dormancy; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;
    Unless these causes of loss are excepted, excluded, or limited by 
the actuarial table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against under 
Section 1.b. of the general crop insurance policy, we will not insure 
against any loss of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the orchard;
    (2) Insect infestation;
    (3) Split pits regardless of cause; or
    (4) Inability to market as a direct result of quarantine, boycott, 
or refusal of any entity to accept or harvest production unless 
production has actual physical damage due to a cause specified in 
subsection 1.a.

                       2. Insured Crop and Acreage

    a. The crop insured will be any of the following stonefruit types 
you elect in writing prior to the sales closing date and grown for fresh 
market fruit or processing (whichever is applicable) for which we 
provide a guarantee and premium rate:

Type I--Apricots--Fresh
Type II--Apricots--Processing
Type III--Nectarines--Fresh
Type IV--Peaches, Cling--Processing
Type V--Peaches, Freestone--Processing
Type VI--Peaches, Freestone--Fresh

    b. You may insure any fresh market Stonefruit of Type I Apricots or 
Type VI Freestone Peaches as processing Type II Apricots or Type V 
Freestone Peaches respectively by converting fresh market lugs, 
harvested or appraised, to equivalent processing tons using the weight 
equivalents provided in paragraph 12.d.
    c. In lieu of the provisions of paragraph 2.e. of the general crop 
insurance policy, we do not insure any stonefruit acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the fifth growing season 
after being set out;
    (3) Which has not produced at least 200 lugs fresh market production 
per acre (at least 2.2 tons per acre for processing types);
    (4) For which acceptable production records for the type elected for 
at least the previous crop year are not provided;
    (5) Which we inspect and consider not acceptable;
    (6) Which is interplanted with another crop;
    (7) On which is grown a type or variety: not established as adapted 
to the area; excluded by the actuarial table; or not regulated by the 
California Tree Fruit agreement or a related crop advisory board for the 
State (for applicable types);
    (8) From which the fruit is harvested directly by the public; or
    (9) If the orchard practices carried out are not in accordance with 
the orchard practices for which the premium rates have been established.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    The acreage report must be filed on or before January 31. You must 
report the crop

[[Page 129]]

type in addition to the information required by the general crop 
insurance policy for the acreage report.

            4. Production Reporting and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees;
    (2) The number of trees planted per acre;
    (3) Known tree damage or use of production practices which have or 
may reduce the yield from previous levels; and
    (4) If the number of bearing trees (fifth growing season and older) 
is reduced more than 10% from the preceding calendar year. (The 
production guarantee will be reduced 1 percent (through adjustment to 
your average yield) for each 1 percent reduction in excess of 10 
percent).
    b. You may select only one coverage level and price election per 
type for the crop year.
    c. The processing price elections will be applied to any applicable 
type (except type III--Nectarines) where an election:
    (1) Has not been made by the insured; or
    (2) Is not available in accordance with the provisions of the 
actuarial table.

                            5. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches.

                           6. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, coverage begins for each crop year on February 1. Insurance ends 
on each acre at the earliest of:
    a. Total destruction of the insured crop by type;
    b. Harvest;
    c. The date harvest would normally start for the type if the crop is 
not to be harvested;
    d. Final adjustment of a loss; or
    e. In all counties, the calendar date immediately following February 
1 as follows:
    (1) all apricots--July 31.
    (2) all nectarines and peaches--September 30.

                                7. Units

    Stonefruit acreage of each type, grown on non-contiguous land, that 
would otherwise be one unit as defined in section 17 of the general crop 
insurance policy, may be divided into more than one unit if you agree to 
pay an additional premium as provided for by the actuarial table and if 
for each proposed unit you maintain written, verifiable records of 
acreage and harvested production for at least the previous crop year.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between units will 
cause the production from those units to be combined for the purpose of 
calculating an indemnity.

                       8. Notice of Damage or Loss

    In lieu of the notices required in subsections 8.a.(2),(3), and (4) 
of the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within 72 hours of the date of damage 
and indicate the cause of damage and whether a claim for indemnity is 
probable. Notwithstanding the previous sentence, if damage occurs within 
72 hours of or during harvest, immediate notice stating the cause of 
damage and probability of a claim must be given to us. If notice is 
given under this paragraph, we must be notified of the time of harvest 
at least 72 hours before harvest begins.

                         9. Claim for Indemnity

    In addition to Section 9 of the general crop insurance policy:
    a. The indemnity will be determined separately for each unit of 
types I, III, and VI by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of fresh stonefruit 
by type to be counted (see section 9.b. or c.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by the insured share.
    b. The total production (standard lug equivalents) (see section 
12.d.) to be counted for a unit will include all production harvested, 
by type and all appraised production. For fresh apricots (Type I), such 
production must meet the California Department of Food and Agriculture 
minimum standards. For fresh nectarines (Type III) and fresh freestone 
peaches (Type VI), such production must meet U.S. 1 standards as 
modified by the latest California Tree Fruit Agreement Publication.
    (1) Production of fresh stonefruit damaged by insurable causes 
within the insurance period, that could be marketed for any use as other 
than fresh packed stonefruit, will be determined by multiplying the 
number of tons that could be marketed by the value per ton of fruit or 
$50.00 per ton, whichever is greater, and dividing that result by the 
highest price election available for the type. This result will be the 
number of standard lug equivalents to be considered as production to 
count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;

[[Page 130]]

    (b) Not less than the applicable guarantee for any acreage which is 
abandoned, destroyed by you without our prior written consent, or not 
inspected by us prior to the completion of harvest;
    (c) Any unharvested production where good stonefruit cultural 
practices were discontinued following an appraisal; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of stonefruit becomes general 
in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested type may be 
determined on the basis of orchard appraisals conducted after the end of 
the insurance period or discontinuance of harvest. We may appraise and 
consider as production to count, any insured fruit remaining on acreage 
not clean harvested.
    (5) We may delay final appraisal until the extent of damage can be 
determined.
    c. The total production in tons to be counted for a processing unit 
will include all production harvested and all appraised production:
    (1) For processing apricots (Type II), such production must meet 
California Department of Food and Agriculture minimum standards:
    (2) For processing clingstone peaches (Type IV), such production 
must be graded by the California State Inspection Service as 2 or 
better;
    (3) For processing freestone peaches (Type V), such production must 
meet California Department of Food and Agriculture minimum standards and 
will include all production harvested and appraised which is acceptable 
to the processor;
    (4) Appraised production to be counted for Types II, IV, and V will 
include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good stonefruit production practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (5) Any appraisal for processing fruit types will be conducted based 
on procedure stated in subsection 9.b(2), (3), and (4).
    d. In the absence of acceptable records to determine the disposition 
of harvested stonefruit, we may elect to determine such disposition and 
the amount of such production to be counted for the unit.
    e. You must authorize us in writing to examine and obtain any 
records pertaining to production and marketing of the insured fruit 
under this contract from the broker, shipper, canner, advisory board, 
marketing order or any other source we deem necessary.

               10. The Cancellation and Termination Dates

    The cancellation and termination dates are January 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is October 31 preceding the cancellation date. Acceptance of any 
change will be conclusively presumed in the absence of notice from you 
to cancel the contract.

                          12. Meaning of Terms

    For the purpose of Stonefruit crop insurance:
    a. Appraisal means an estimate of the potential production 
determined by our representative using our prescribed procedures.
    b. Crop Year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the insured type is normally 
harvested.
    c. Harvest means the picking of mature fruit from the trees by hand 
or machine.
    d. Lug means a container of fresh fruit of the weights shown below. 
All fresh production to count of varying lug sizes will be converted to 
standard lug equivalents on the basis of the following average net 
pounds of packed fruit:

------------------------------------------------------------------------
                                                                 Pounds/
                              Type                                 lug  
------------------------------------------------------------------------
I Apricots.....................................................       24
III Nectarines.................................................       25
VI Freestone Peaches...........................................       22
------------------------------------------------------------------------

    e. Ton means a volume of apricots or processing peaches of type II, 
IV, or V marketable through processing channels and equaling 2000 
pounds.

[53 FR 6561, Mar. 2, 1988]



Sec. 401.123  Safflower seed crop endorsement.

    The provisions of the Safflower Seed Crop Insurance Endorsement for 
the 1988 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                     Safflower Seed Crop Endorsement

                             1. Insured Crop

    a. The crop insured will be safflower seed (``safflowers'').

[[Page 131]]

    b. In addition to the safflowers not insurable in section 2 of the 
general crop insurance policy, we do not insure any safflowers on which 
safflowers, sunflowers, dry beans, soybeans, mustard, rapeseed, or 
lentils have been grown the preceding crop year.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insect infestation;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or subsection 9 of the general policy.

                            3. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.

                           4. Insurance Period

    The calendar date for the end of insurance period is October 31 of 
the calendar year in which the safflowers are normally harvested.

                            5. Unit Division

    Safflower acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written verifiable records of planted acreage and harvested production 
for at least the previous crop year; and either
    a. Acreage planted to insured Safflowers is located in separate 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or Farm Serial Number are clearly 
identified, and the insured acreage can be easily determined; and
    (2) The safflowers are planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; or
    b. Acreage planted to safflowers is located in a single section or 
ASCS Farm Serial Number and consists of acreage on which both an 
irrigated and nonirrigated practice are carried out, provided:
    (1) Safflowers planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine your yield for the purpose of 
determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized good irrigated and nonirrigated farming 
practices for the area.
    If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined for the purpose of 
calculating an indemnity.

                       6. Notice of Damage or Loss

    The representative samples of unharvested safflowers as required in 
section 8 of the general crop insurance policy will be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from that result the total production of safflowers 
to be counted;
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature safflower production which otherwise is not eligible for 
quality adjustment will be reduced .12 percent for each .1 percentage 
point of moisture in excess of 8.0 percent.
    (2) Mature safflower production will be adjusted for quality when, 
due to insurable causes, such production has a test weight below 35 
pounds per bushel or has seed damage in excess of 25 percent as 
determined by a grader licensed to grade safflowers by the Federal Grain 
Inspection Service.
    (3) Mature safflower production which is eligible for quality 
adjustment, due to insurable causes, will be adjusted by:
    (a) Dividing the value per pound of damaged safflowers by the 
average market price per pound for undamaged safflowers; and
    (b) Multiplying the result by the number of pounds of such 
safflowers.
    For the purpose of this insurance, the applicable price for damaged 
safflowers will be not less than 50 percent of the average market price 
for undamaged safflowers.
    (4) Any harvested production from other volunteer plants growing in 
the safflowers

[[Page 132]]

will be counted as safflowers on a weight basis.
    (5) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (6) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of safflowers becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates for California are December 
31, beginning December 31, 1991. For all other states, the cancellation 
and termination dates are April 15.

                           9. Contract Changes

    Contract changes will be available at your service office by August 
31 prior to the cancellation date for California, and by December 31 
prior to the cancellation date for all other states.

                          10. Meaning of Terms

    a. Harvest means the completion of combining or threshing of 
safflowers on the unit.
    b. Value per pound of damaged safflowers means the value of the 
damaged safflowers (test weight below 35 pounds per bushel or seed 
damage in excess of 25 percent) at the local market but not less than 50 
percent of the average market price for undamaged safflowers.

[52 FR 45159, Nov. 25, 1987, as amended at 54 FR 28795, July 10, 1989; 
55 FR 40788, Oct. 5, 1990]



Sec. 401.124   Sunflower seed crop endorsement.

    The provisions of the Sunflower Seed Crop Insurance Endorsement for 
the 1988 through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                     Sunflower Seed Crop Endorsement

                             1. Insured Crop

    a. The crop insured will be sunflower seed (``sunflowers'').
    b. Unless otherwise provided by the actuarial table, insurance will 
attach only on acreage initially planted in rows far enough apart to 
permit cultivation; but, if such insured acreage is destroyed and 
replanted by broadcasting, drilling, or in rows too close to permit 
cultivation. it will be considered insured acreage.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted. excluded, or limited by the actuarial 
table or section 9 of the general policy.

                            3. Annual Premium

    a. The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the sunflower 
policy in effect for the 1985 crop year, you will continue to receive 
the benefit of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

[[Page 133]]

                           4. Insurance Period

    The calendar date for the end of insurance period is November 30 of 
the calendar year in which the sunflowers are normally harvested.

                            5. Unit Division

    Sunflower acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the actuarial table and if for each proposed unit you maintain 
written verifiable records of planted acreage and harvested production 
for at least the previous crop year; and either
    a. Acreage planted to insured sunflowers is located in separate 
legally identifiable sections or, in the absence of section descriptions 
the land is identified by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the section or Farm Serial Number are clearly 
identified, and the insured acreage can be easily determined; and
    (2) The safflowers are planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; or
    b. The acreage planted to sunflowers is located in a single section 
or Farm Serial Number and consists of acreage on which both an irrigated 
and nonirrigated practice are carried out, provided:
    (1) Sunflowers planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine your yield for the purpose of 
determining the guarantee for the unit.); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized irrigated and nonirrigated farming practices 
for the area.

If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       6. Notice of Damage or Loss

    The representative samples of unharvested sunflowers as required in 
section 8 of the general crop insurance policy will be at least 10 feet 
wide and the entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sunflowers to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature sunflower production (quantity) which otherwise is not 
eligible for quality adjustment will be reduced .12 percent for each .1 
percentage point of moisture in excess of 10 percent; or
    (2) Mature production will be adjusted for quality when, due to 
insurable causes, the insured sunflower seed crop grades below the 
following:


----------------------------------------------------------------------------------------------------------------
                                                      Oil type                           Non-oil type           
----------------------------------------------------------------------------------------------------------------
Test weight...........................  Less than 25 pounds................  Less than 22 pounds.               
Damaged kernels.......................  More than 10% total................  More than 5% total                 
----------------------------------------------------------------------------------------------------------------

    Sunflowers grading below these standards will be adjusted by:
    (a) dividing the value per pound by the price per pound of No. 2 
sunflowers; and
    (b) multiplying the result by the number of pounds of insured 
sunflowers.
    The applicable price for No. 2 sunflowers will be the local market 
price on the earlier of the day the loss is adjusted or the day the 
sunflowers are sold.
    (3) Any harvested production from other crops growing in the 
sunflowers will be counted as sunflowers on a weight basis.
    (4) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good sunflower farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any unharvested production or harvested or unharvested acreage.
    (5) Any appraisal we have made on insured acreage and given written 
consent for that acreage to be put to another use will be considered 
production unless such acreage is:

[[Page 134]]

    (a) Not put to another use before harvest of sunflowers becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    c. A replant payment is available under the Sunflower Endorsement. 
No replant payment will be made on acreage on which our appraisal 
exceeds 90 percent of the guarantee. The payment per acre will not 
exceed the product obtained by multiplying 175 pounds times the price 
election, times your share.

                           8. Replant Payment

    In accordance with paragraph 9.h. of the general crop insurance 
policy a replant payment not to exceed the product by multiplying 175 
pounds times the prime elective, times your share may be made.

                  9. Cancellation and Termination Date

    The cancellation and termination date for all states is April 15.

                          10. Contract Changes

    The date by which contract changes will be available in your service 
office will be December 31 preceding the cancellation date.

                          11. Meaning of Terms

    a. Harvest means the completion of combining or threshing of 
sunflowers on the unit.
    b. Replanting means performing the cultural practices necessary to 
replant insured acreage to sunflowers.

[52 FR 45155, Nov. 25, 1987, as amended at 53 FR 40718, Oct. 18, 1988; 
54 FR 20369, May 11, 1989; 54 FR 20504, May 12, 1989; 54 FR 33493, Aug. 
15, 1989; 60 FR 56934, Nov. 13, 1995]



Sec. 401.125  Fig endorsement.

    The provisions of the Fig Crop Insurance Endorsement for the 1988 
through 1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                             Fig Endorsement

                             1. Insured Crop

    a. The crop insured will be commercially grown dried figs.
    b. In addition to the figs not insurable under section 2 of the 
general crop insurance policy, we do not insure any figs:
    (1) Which are not irrigated;
    (2) Which have not reached the seventh growing season after being 
set out;
    (3) Grown for purposes other than for dried figs;
    (4) Grown with another crop;
    (5) Unless acceptable production records for at least the previous 
crop year are provided;
    (6) With less than 90 percent of a stand based on the original 
planting pattern unless we agree, in writing, to insure such acreage;
    (7) Which we inspect and consider not acceptable;
    (8) For the crop year the application is filed unless such acreage 
has been inspected and accepted by us; or
    (9) Acquired for the crop year unless such acreage has been 
inspected and accepted by us.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather;
    (2) Earthquake;
    (3) Fire;
    (4) Volcanic eruption;
    (5) Wildlife; and
    (6) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against:
    (1) Any loss of production due to fire, where weeds and other forms 
of undergrowth have not been controlled or tree pruning debris has not 
been removed from the grove; or
    (2) The inability to market the fruit as a direct result of 
quarantine, boycott, or refusal of any entity to accept production.

     3. Report of Acreage, Share, Type and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. You must submit the acreage report described in section 3 of the 
general crop insurance policy by March 1.
    c. By applying for fig crop insurance, you authorize us to determine 
or verify your production and acreage from records maintained by the 
California Fig Advisory Board or the fig packer.

                            4. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches.

[[Page 135]]

                           5. Insurance Period

    In lieu of the provisions of section 7 of the general crop insurance 
policy insurance attaches on each unit on March 1 and insurance ends at 
the earliest of:
    (1) Total destruction of the fig crop;
    (2) The date harvest of the figs (by type) should have started on 
any acreage that will not be harvested;
    (3) Harvest of the figs;
    (4) Final adjustment of a loss; or
    (5) October 31.

                            6. Unit Division

    a. In addition to the provisions in subsection 17.q. of the general 
crop insurance policy, a unit will be all insurable acreage of an 
insurable type of fig in the county.
    b. Fig acreage that would otherwise be one unit may be divided into 
more than one unit if you agree to pay additional premium as provided 
for by the acturial table and if for each proposed unit:
    (1) You maintain written, verifiable records of acreage and 
harvested production for at least the previous crop year, and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    (2) The acreage of insured figs is located on noncontiguous land. If 
you have a loss on any unit, production records for all harvested units 
must be provided. Production that is commingled between optional units 
will cause those units to be combined.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of figs to be counted 
(see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    b. The total production (pounds) to be counted for a unit will 
include all harvested and appraised marketable figs, as defined by the 
Marketing Order for Dried Figs, as amended.
    (1) All substandard production must be inspected by us and we must 
give written consent to you prior to delivery to the substandard pool. 
If the substandard production is not inspected or we do not give written 
consent prior to the delivery to the substandard pool, all production 
will be counted as marketable production.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good fig farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such acreage is:
    (a) Not harvested before the harvest of figs becomes general in the 
county;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are February 28.

                           9. Contract Changes

    The date on which contract changes will be available in your service 
office is October 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Harvest means the picking of the figs from the trees or ground by 
hand or machine for the purpose of removal from the orchard.
    b. Non-contiguous land means land which is not touching at any 
point, except that land which is separated by only a public or private 
right-of-way will be considered contiguous.
    c. Substandard production means production that does not meet 
minimum grade standards and is defined as ``substandard'' by the 
Marketing Order for Dried Figs, as amended, which is in effect on the 
date insurance attaches.

[53 FR 15015, Apr. 27, 1988, as amended at 60 FR 56934, Nov. 13, 1995]



Sec. 401.126  Onion endorsement.

    The provisions of the Onion Endorsement for the 1988 and subsequent 
crop years are as follows:

                   Federal Crop Insurance Corporation

                            Onion Endorsement

                             1. Crop Insured

    a. The crop insured will be onions planted for harvest as dry onions 
(bulb onions).
    b. In addition to the onions not insurable under section 2 of the 
general crop insurance policy, we do not insure any onions planted for 
green (bunch) or seed onions, including chives, garlic, leek, or 
scallions.
    c. A late planting agreement will be available.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

    a. Adverse weather conditions;

[[Page 136]]

    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time of planting.

                           4. Insurance Period

    In lieu of section 7 of the general crop insurance policy, insurance 
attaches on each unit or part of a unit when the onions are planted and 
ends at the earliest of:
    (a) Total destruction of the onions on the unit;
    (b) Five days after digging of the onions;
    (c) Removal of the onions from the field;
    (d) Final adjustment of a loss on a unit; or
    (e) The following dates for the calendar year in which the onions 
are normally harvested:
Washington-Walla Walla Sweets and any other non-storage type onion--July 
31
Colorado--September 30
All other Washington onions and all other states--October 15

                            5. Unit Division

    Onion acreage that would otherwise be one unit, as defined in the 
general policy, may only be further divided into units by onion type 
(Red, Yellow, or White) if you agree to pay an additional premium as 
provided for by the actuarial table and if for each proposed unit by 
type:
    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports by type based on those records are filed to obtain an insurance 
guarantee.
    b. The acreage boundaries between onion types is clearly 
identifiable, the insured acreage is easily determined and the onions 
are planted in such a manner that the planting pattern does not continue 
into the adjacent field of different type (maximum number of units, 
three); or
    c. The acreage planted to onions consists of acreage on which both 
irrigated and nonirrigated practices are carried out, provided:
    (1) Onions planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern (Nonirrigated 
corners of a center pivot irrigation system are part of the irrigated 
unit. The production from the total unit, both irrigated and 
nonirrigated, is combined to determine the unit yield for the purpose of 
determining the guarantee for the unit); and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with recognized irrigated and nonirrigated farming practices 
for the area (maximum number of units, six; three irrigated and three 
non-irrigated).

                       6. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss:
    a. You must give us written notice if you want to harvest the onions 
(After such notice is given, we will appraise the potential production. 
If we are unable to do so before harvest, you may harvest the crop, 
provided representative samples are left for appraisal purposes.); and
    b. Any representative sample must be at least 10 feet wide and the 
entire length of the field.

                         7. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying the result by the price election;
    (3) Subtracting therefrom the dollar amount obtained by multiplying 
the total production of onions to be counted (see subsection 7b.) by the 
larger of your price election or the local market price at the time the 
onions are appraised; and
    (4) Multiplying this result by your share.
    b. The total production (in hundredweight) to be counted for a unit 
will include all harvested and appraised production.
    (1) The extent of any loss may be determined no later than the date 
onions are placed in storage or delivered to a packer or processor, 
whichever is earlier.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Not less than the guarantee for any acreage from which the 
harvested production is disposed of without our prior written consent 
and such disposition prevents accurate determination of production; and
    (d) Any appraised production on unharvested acreage.

[[Page 137]]

    (3) Any appraisal we have made on insured acreage for which we have 
given written consent for another use will be considered production 
unless such acreage is;
    (a) Not put to another use before harvest of onions becomes general 
in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination dates are March 1st.

                           9. Contract Changes

    The contract change date is December 31 preceding the cancellation 
date.

                          10. Meaning of Terms

    Harvest means the digging of onions and placement of the onions into 
a container.

[53 FR 19217, May 27, 1988]



Sec. 401.127  Cranberry endorsement.

    The provisions of the Cranberry Crop Insurance Endorsement for the 
1990 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                          Cranberry Endorsement

                             1. Insured Crop

    a. The crop insured will be cranberries which are grown for 
processing or fresh market.
    b. Except by written agreement between you and us or unless provided 
by the actuarial table, we do not insure any acreage:
    (1) Unless at least four growing seasons have elapsed between the 
date the vines were set out and the date insurance attaches;
    (2) With less than 90 percent of a stand of bearing vines based on 
the original planting pattern; or
    (3) That is being renovated and not being used to produce a full 
crop for the current year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) adverse weather conditions;
    (2) fire;
    (3) wildlife;
    (4) earthquake;
    (5) volcanic eruption;
    (6) insects;
    (7) plant disease;
    (8) if applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches; or
    (9) failure or breakdown of irrigation equipment or facilities due 
to direct damage to the irrigation equipment or facilities from an 
insurable cause of loss if the cranberry crop is damaged by freezing 
temperatures within 72 hours of such equipment or facilities failure and 
the equipment or facilities could not have been made operational or 
replaced within such 72-hour time period;
unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. We do not insure against any loss caused by the failure or 
breakdown of irrigation equipment or facilities except as provided in 
section 2.a.(9) above.

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches.

                           4. Insurance Period

    a. In addition to the provisions in section 7 of the general crop 
insurance policy, for unharvested acreage, the date by which acreage 
should have been harvested is added as one of the dates, the earliest of 
which is used to designate the end of the insurance period. The calendar 
date for the end of the insurance period is November 20. The calendar 
date for the beginning of the insurance period is November 21.
    b. If you obtain any insurable acreage of cranberries on or before 
January 5 of any crop year, insurance will be considered to have 
attached to such acreage at the beginning of the insurance period if we 
inspect such acreage and accept it in writing. If you convey any acreage 
of cranberries on or before January 5 of any crop year, insurance will 
not be considered to have attached to such acreage for that crop year.

                            5. Unit Division

    Cranberry acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if you agree to pay an additional premium if required 
by the actuarial table and if for each proposed unit:
    a. you maintain written verifiable records of acreage and harvested 
production for at least the previous crop year and production reports 
based on those records are timely filed to obtain an insurance 
guarantee; and
    b. the acreage planted to insured cranberries in the county is 
located on non-contiguous land.
If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

[[Page 138]]

                       6. Notice of Damage or Loss

    In addition to section 8 of the general crop insurance policy, in 
case of damage or probable loss:
    a. You must immediately give us written notice of the loss or 
probable loss, including the dates of damage, if probable loss is 
determined within 15 days prior to or during harvest.
    b. If you are going to claim an indemnity on any unit, you must give 
us notice not later than 72 hours after the earliest of:
    (1) Total destruction of the cranberries on the unit;
    (2) Discontinuance of harvest of any acreage on the unit; or
    (3) The date harvest would normally start in the area if any acreage 
on the unit is not to be harvested.
    c. Unless notice has been given under section b. above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, you must give us written notice not 
later than 10 days after the earlier of:
    (1) Harvest of the unit; or
    (2) November 20 of the crop year.

                         7. Claim for Indemnity

    a. In addition to the provisions of subsection 9.b. of the general 
crop insurance policy, we will not pay any indemnity unless you 
authorize us, in writing, to examine and obtain any records from any 
person or entity pertaining to the production and marketing of the 
insured cranberries.
    b. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from that result the total production of cranberries 
to be counted (see subsection 7.c.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    c. The total production (in barrels) to be counted for a unit will 
include all harvested and appraised production.
    (1) Cranberry production which, due to insurable causes, is 
determined not to meet quality requirements of the receiving handler, 
would not meet those requirements if properly handled, and has a value 
of less than 75 percent of the market price for cranberries meeting the 
minimum requirements will be adjusted by:
    (a) Dividing the value per barrel of such cranberries by the market 
price per barrel for cranberries meeting the minimum requirements; and
    (b) Multiplying the result by the number of barrels of such 
cranberries.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good cranberry farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such acreage is:
    (a) Not harvested before the harvest of cranberries becomes general 
in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) We may determine the amount of production of any unharvested 
cranberries on the basis of field appraisals conducted after the end of 
the insurance period.

                  8. Cancellation and Termination Date

    The cancellation and termination date is November 20.

                           9. Contract Changes

    All contract changes will be available at your service office by 
August 31 preceding the cancellation date.

                          10. Meaning of Terms

    a. Barrel means 100 pounds of cranberries.
    b. Direct damage means actual physical damage to the equipment or 
facilities which is the direct result of an insurable cause of loss.
    c. Harvest means picking of the cranberries from the vines for the 
purpose of removal from the land.
    d. Irrigation equipment, facilities, and water supply means the 
supply of water and the mechanical and constructed equipment and 
facilities used to deliver the water to the cranberry crop so as to 
prevent damage due to drought or freeze.
    e. Non-contiguous land means land which is not touching at any 
point. Land that is separated only by a public or private right-of-way 
will be considered contiguous.

[54 FR 20501, May 12, 1989]



Sec. 401.129  Tobacco (guaranteed plan) endorsement.

    The provisions of the Tobacco (Guaranteed Plan) Crop Insurance 
Endorsement for the 1990 and subsequent crop years are as follows:

[[Page 139]]

                   Federal Crop Insurance Corporation

                  Tobacco (Guaranteed Plan) Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be any of the following tobacco types you 
elect which are grown on insured acreage and for which a guarantee and 
premium rate are provided by the actuarial table:

Flue Cured
    Type 11A
    Type 11B
    Type 12
    Type 13
    Type 14
Maryland
    Type 32
Cigar Filler
    Type 41
    Type 42
    Type 44
Cigar Wrapper
    Type 61
    Type 55
Fire Cured
    Type 21
    Type 22
    Type 23
Burley
    Type 31
Dark Air
    Type 35
    Type 36
    Type 37
Cigar Binder
    Type 51
    Type 52
    Type 54
    b. In addition to the acreage not insurable under section 2 of the 
general crop insurance policy, we do not insure any acreage:
    (1) On which the tobacco was destroyed or put to another use for the 
purpose of conforming with any other program administered by the United 
States Department of Agriculture; or
    (2) Planted to tobacco of a discount variety under provisions of the 
tobacco price support program.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

                            3. Annual Premium

    a. The annual premium amount is computed by multiplying the 
production guarantee for the unit times the applicable price election, 
times the premium rate, times the insured acreage, times your share at 
the time of planting, applying any applicable premium adjustment 
percentage for which you may qualify as shown on the actuarial table.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insurance experience through the 1985 crop year 
under the terms of the experience table contained in the guaranteed 
tobacco policy in effect for the 1986 crop year, you will continue to 
receive the benefit of the reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction amount will not increase because of 
favorable experience;
    (3) The premium reduction amount will decrease because of 
unfavorable experience in accordance with the terms of the policy in 
effect for the 1986 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           4. Insurance Period

    In lieu of the provisions of section 7 of the general crop insurance 
policy the following will apply:
    Insurance attaches on each unit or part of a unit when the tobacco 
is planted (see subsection 10(e)) and ends at the earliest of:
    a. Total destruction of the tobacco;
    b. Weighing-in at the tobacco warehouse;
    c. Removal of the tobacco from the unit (except for curing, grading, 
packing, or immediate delivery to the tobacco warehouse);
    d. Final adjustment of a loss; or
    e. On the following dates of the crop year:

(1) Types 11 and 12--November 30;
(2) Type 13--October 31;
(3) Type 14--October 15;
(4) Types 31 & 36--February 28;
(5) Types 21, 35 and 37--March 15;
(6) Types 22 and 23--April 15;
(7) Type 32--May 15;
(8) All other types--April 30.

                            5. Unit Division

    1. Tobacco acreage of an insurable type that would otherwise be one 
unit, as defined in section 17 of the general crop insurance policy, may 
be divided into more than one unit if for each proposed unit:

[[Page 140]]

    a. You maintain written verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    b. Acreage planted to insured tobacco is located on land identified 
by separate ASCS Farm Serial Numbers, provided:
    (1) The boundaries of the ASCS Farm Serial Numbers are clearly 
identified and the insured acreage is easily determined; and
    (2) The tobacco is planted in such a manner that the planting 
pattern does not continue into an adjacent ASCS Farm Serial Number.
    If you have a loss on any unit, production records for all harvested 
units must be provided. If your tobacco acreage is not in a divided unit 
as provided above, your premium will be reduced as provided by the 
actuarial table. Production that is commingled between optional units 
will cause those units to be combined for insurance purposes only.

                       6. Notice of Damage or Loss

    For purposes of section 8 of the general crop insurance policy; the 
representative sample of the unharvested crop must be at least 10 feet 
wide and the entire length of each field.

                         7. Claim for Indemnity

    a. An indemnity will be determined for each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of tobacco to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the applicable price election; and
    (4) Multiplying this result by your share.
    b. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Harvested tobacco production which, due to insurable causes, has 
a value less than the market price for tobacco of the same type, will be 
adjusted by:
    (a) Dividing the average value per pound of the harvested production 
by the market price per pound; and
    (b) Multiplying that result by the number of pounds of such damaged 
harvested tobacco.
    (c) If due to insurable causes there is no market price available 
for the grade being adjusted, the production to count will be reduced 
20% for each grade that the production falls below the lowest grade with 
a market price (see subsection 10.d.(2)).
    (2) All harvested tobacco production which is not damaged by 
insurable causes and cannot be sold in the current market year will be 
considered production to count.
    (3) To enable us to determine the fair market value of tobacco not 
sold through auction warehouses, we must be allowed:
    (a) To inspect such tobacco before it is sold, contracted to be 
sold, or otherwise disposed of; and
    (b) At our option to obtain additional offers on your behalf.
    (4) Appraised production to be counted will include:
    (a) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (b) Not less than 35 percent of the guarantee for all unharvested 
acreage;
    (c) Unharvested production on harvested acreage; and
    (d) Potential production lost due to uninsured cause and to failure 
to follow recognized good tobacco farming practices.
    (5) We may appraise any acreage of tobacco types 11, 12, 13, or 14 
on which the stalks have been destroyed without our consent at not less 
than the guarantee.
    (6) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tobacco becomes general 
in the county and reappraised by us; or
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (7) The commingled production of units will be prorated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    (8) No replanting payment will be made under this endorsement.

                  8. Cancellation and Termination Dates

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                           dates           
------------------------------------------------------------------------
Alabama; Florida; Georgia; South Carolina;  March 31                    
 and Surry, Wilkes, Caldwell, Burke, and                                
 Cleveland Counties, North Carolina, and                                
 all North Carolina counties east thereof..                             
All other North Carolina Counties and all   April 15                    
 other states.                                                          
------------------------------------------------------------------------

                           9. Contract Changes

    Contract changes will be available at your service office by 
December 31 prior to the cancellation date.

                          10. Meaning of Terms

    a. Average value per pound means the total value of all harvested 
production from the unit divided by the harvested pounds and may include 
the value of any harvested production which is not sold.

[[Page 141]]

    b. County means the land defined in the general crop insurance 
policy and any land identified by an ASCS Farm Serial Number for the 
county but physically located in another county.
    c. Harvest means the completion of cutting or priming of tobacco on 
any acreage from which at least 20 percent of the production guarantee 
per acre shown by the actuarial table is cut or primed with the intent 
of marketing.
    d. Market price: 
    (1) For types, 11, 12, 13, 14, 21, 22, 23, 31, 35, 36, 37, 42, 44, 
54, and 55, means the average price support level per pound for the 
insured type of tobacco as announced by the United States Department of 
Agriculture under the tobacco price support program (if for any crop 
year price support for the insured type is not in effect, we will use 
the season average price in the belt or area through the day tobacco 
sales are completed on any unit or part thereof which is harvested); and
    (2) For types 32, 41, 51, 52, and 61 means the season average price 
for the applicable type of tobacco, (such price will be the season 
average price for the current crop year for any unit or part thereof 
which is harvested) and may be established by including the value of 
sold and unsold production.

    e. Planting means transplanting the tobacco plant from the bed into 
the field.

[54 FR 48070, Nov. 21, 1989]



Sec. 401.130   Grape endorsement.

    The provisions of the Grape Crop Insurance Endorsement for the 1990 
(in California) and subsequent crop years (in all other States) are as 
follows:

                   Federal Crop Insurance Corporation

                            Grape Endorsement

                             1. Insured Crop

    a. The crop insured;
    (1) For California only, will be any insurable variety of grapes you 
elect which are grown for wine, juice, raisins or canning.
    (2) For all other states, will be all insurable varieties of grapes 
which are grown for wine, juice, raisins or canning.
    b. In addition to the grapes not insurable under section 2 of the 
General Crop Insurance Policy, we do not insure any grapes:
    (1) If the producing vines, after being set out or grafted, have not 
reached the number of growing seasons designated by the actuarial table;
    (2) If the producing vines have not produced an average of two (2) 
tons of grapes per acre; or
    (3) Produced by vines where there is less than a ninety percent 
(90%) stand of bearing vines based on the current planting pattern;

unless inspected by us and we agree, in writing, to insure such grapes.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption; or
    (6) If applicable, failure of the irrigation water supply; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9 of the General Crop Insurance Policy.
    b. In addition to the causes of loss not insured against under 
section 1 of the General Crop Insurance policy, we will not insure 
against any loss of production due to fire if weeds and other forms of 
undergrowth have not been controlled or vine pruning debris has not been 
removed from the vineyard. We also specifically do not insure against 
the inability to market the grapes as a direct result of quarantine, 
boycott, or refusal of any entity to accept production, unless 
production has actual physical damage due to a cause specified in 
subsection 2.a. above.

    3. Report of Acreage, Share, Practice, and Type (Acreage Report)

    In addition to the information required by section 3 of the General 
Crop Insurance Policy, you must report the crop type and variety.

                 4. Coverage Levels and Price Elections

    Only one coverage level (50%, 65%, or 75%) and only one price 
election set (high, medium, or low) will be applicable to all your 
insurable grapes.

            5. Production Reporting and Production Guarantees

    In addition to the information required in section 4 of the General 
Crop Insurance Policy, you must report:
    a. The number of bearing vines; and
    b. Any vine damage or change in farming practices which may reduce 
yields from previous levels.

                            6. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share on the date insurance attaches, times

[[Page 142]]

any applicable premium adjustment percentage for which you may qualify 
as shown in the actuarial table.

                           7. Insurance Period

    a. The calendar date on which insurance attaches is:
    (1) November 21 in Idaho, Oregon, and Washington;
    (2) February 1 in California; and
    (3) December 11 in all other states.
    b. The date harvest should have started on any acreage which is not 
harvested, is added to section 7 of the General Crop Insurance Policy as 
one of the items which ends the insurance period.
    c. The calendar date for the end of the insurance period is:
    (1) October 10 in Mississippi;
    (2) November 10 in California, Idaho, Oregon, and Washington; and
    (3) December 10 in all other states.
    d. If you acquire an insurable share in any insurable acreage on or 
before the acreage reporting date of any crop year and if we inspect, 
consider acceptable, and agree in writing, to insure such acreage, 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period. If you 
relinquish your insurable interest on any acreage of grapes on or before 
the acreage reporting date of any crop year insurance will not be 
considered to have attached to such acreage for that crop year unless a 
transfer of right to an indemnity is entered into by all affected 
parties and the service office is notified in writing of such transfer 
prior to the acreage reporting date.

                            8. Unit Division

    a. In California only, in addition to units as defined in section 17 
of the General Crop Insurance Policy, each grape variety will be a 
separate unit. Grape acreage that would otherwise be one unit, as 
provided herein and in section 17 of the General Crop Insurance Policy, 
may be divided into more than one optional unit if, for each proposed 
unit you maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year; production 
reports based on those records are filed to obtain an insurance 
guarantee; and the insured grapes are located on land owned by you which 
is noncontiguous. Land rented by you for cash, a fixed commodity payment 
or any consideration other than a share in the insured crop will be 
considered owned by you.
    b. In all other states, grape acreage that would otherwise be one 
unit as defined in section 17 of the General Crop Insurance Policy may 
be divided into more than one optional unit if, for each proposed unit 
you maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year; production 
reports based on those records are filed to obtain an insurance 
guarantee; and
    (1) The insured grapes are designated in the actuarial table as 
separate group A or group B varieties;
    (2) The insured grapes are located on noncontiguous land;
    (3) The acreage of insured grapes is located in separate, legally 
identifiable sections or, in the absence of section descriptions, the 
land is identified by separate ASCS Farm Serial Numbers, provided:
    (a) The boundaries of the section or ASCS Farm Serial Number are 
clearly identified and the insured acreage can be easily determined; and
    (b) The grapes are planted in such a manner that the planting 
pattern does not continue into the adjacent section or ASCS Farm Serial 
Number; or
    (4) The acreage of insured grapes is located in a single section or 
ASCS Farm Serial Number and consists of acreage on which both an 
irrigated and nonirrigated practice are carried out, provided:
    (a) Grapes planted on irrigated acreage do not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (b) Farming practices are carried out in accordance with recognized 
good dryland and irrigated farming practices for the area.
    c. If you have a loss on any unit, production records for all 
harvested units must be provided to us. Production that is commingled 
between optional units will cause those units to be combined.

                       9. Notice of Damage or Loss

    In addition to the notices required in section 8 of the General Crop 
Insurance Policy, and if you are going to claim an indemnity on any 
unit, you must give us notice not later than 72 hours:
    a. After total destruction of the grapes on the unit;
    b. After discontinuance of harvest on the unit; or
    c. Before harvest would normally start if any acreage on the unit is 
not to be harvested.
    If notice is given under this subsection, the notice requirement 
under subsection 8.a.(4) of the General Crop Insurance Policy is not 
applicable.

                         10. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this product by the price election;
    (3) Subtracting the dollar amount obtained by multiplying the total 
production to be

[[Page 143]]

counted (see subsection 9.c.) by the price election; and
    (4) Multiplying this result by your share.
    b. If a unit contains acreage to which more than one price election 
applies, the dollar amount of insurance and the dollar amount of 
production to be counted will be determined separately for such acreage 
and then added together to determine the total amount for the unit.
    c. The total production (tons) to be counted for a unit will include 
all harvested and appraised production:
    (1) Grapes which, due to insurable causes, have a value less than 75 
percent of the average market price of undamaged grapes of the same 
variety will be eligible for quality adjustment. In California, the 
average market price will be the price shown by the Federal State Market 
News California Wine Report for the same week in which the damaged 
grapes were valued. In all other states, the average market price will 
be determined by averaging the prices being paid by usual marketing 
outlets for the area during the week in which the damaged grapes were 
valued. Damaged production will be adjusted by:
    (a) Dividing the value per ton of the grapes by the highest price 
election available for such grapes; and
    (b) Multiplying the result (not to exceed 1) by the number of tons 
of such grapes.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good grape management practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and reappraised by us; or
    (b) Harvested.
    (4) If any grapes are harvested before or after normal maturity or 
for a special use (such as champagne or Botrytis affected grapes), the 
production of such grapes will be increased by the factor obtained by 
dividing the price per ton received for such grapes by the price per ton 
for fully matured grapes of the type for which the claim is being made.

                 11. Cancellation and Termination Dates

    a. The cancellation date in:
    (1) California is January 31 of the calendar year in which the crop 
normally blooms;
    (2) Idaho, Oregon, and Washington is November 20 of the calendar 
year prior to the year of normal bloom; and
    (3) All other states is December 10 of the calendar year prior to 
the year of normal bloom.
    b. The termination date in:
    (1) California is January 31 of the calendar year following the year 
of normal bloom;
    (2) Idaho, Oregon, and Washington is November 20 of the calendar 
year in which the crop normally blooms; and
    (3) All other states is December 10 of the calendar year in which 
the crop normally blooms.

                          12. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date for all states 
except California, and October 31 preceding the cancellation date for 
California.

                          13. Meaning of Terms

    a. Crop Year means the period beginning with the date insurance 
attaches to the grape crop and extending through normal harvest time, 
and will be designated by the calendar year in which the grapes are 
normally harvested.
    b. Harvest means the mechanical or manual removal of grapes from the 
vines.
    c. Noncontiguous Land means any land whose boundaries do not touch 
at any point. Land which is separated by a public or private right-of-
way, waterway or irrigation canal will be considered to be touching 
(contiguous).
    d. Ton means 2,000 pounds.

[54 FR 43270, Oct. 24, 1989]



Sec. 401.131  High-risk land exclusion option.

    The provisions of the High-Risk Land Exclusion Option for the 1990 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                     High-Risk Land Exclusion Option

    This is a continuous Option. Refer to item 5 of this Option.

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Crops___________________________________________________________________
County__________________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
TAX_____________________________________________________________________

    Upon our approval of this Option, we agree to amend your Federal 
Crop Insurance Policy to exclude from crop insurance coverage all high-
risk land for the identified crops and county in which you have a share, 
subject to the following terms and conditions:


[[Page 144]]


    1. The Option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to exclude high-risk land.
    2. In the event of a loss on any insured unit, you must provide 
separate production records showing planted acreage and harvested 
production for any acreage which is excluded from crop insurance 
coverage under this Option.
    3. By signing this Option, you are declining crop insurance coverage 
under the general crop insurance policy and the crop endorsement on your 
high-risk land.
    4. As used in this Option, ``high-risk'' land is any land which is 
not classified as an ``R'' classification contained in the actuarial 
table.
    5. This Option may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the policy, preceding such crop year.
    6. You must report, on the acreage report for each crop year, the 
acreage of the crop planted on high-risk land.
    7. All other provisions of the policy not in conflict with this 
Option are applicable.

_______________________________________________________________________
Insured's Signature
Date____________________________________________________________________
_______________________________________________________________________
Corporation Representative's Signature and Code Number
Date____________________________________________________________________
_______________________________________________________________________

            Collection of Information and Data (Privacy Act)

    To the extent that the information requested herein relates to the 
information supplier's individual capacity as opposed to the supplier's 
entrepreneurial (business) capacity, the following statements are made 
in accordance with the Privacy Act of 1974, as amended (5 U.S.C. 
552(a)). The authority for requesting information to be furnished on 
this form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 
et seq.) and the Federal Crop Insurance Corporation Regulations 
contained in 7 CFR Chapter IV.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, determine and collect premiums, and pay indemnities. 
Furnishing the Tax Identification Number (Social Security Number) is 
voluntary and no adverse action will result from the failure to furnish 
that number. Furnishing the information required by this form, other 
than the Tax identification (Social Security) Number, is also voluntary; 
however, failure to furnish the correct, complete information requested 
may result in rejection of this form, rejection of or substantial 
reduction in any claim for indemnity, ineligibility for insurance, and a 
unilateral determination of the amount of premium due. (See below for 
information on the consequences of furnishing false or incomplete 
information).
    The information furnished on this form will be used by federal 
agencies, FCIC employees, and contractors who require such information 
in the performance of their duties. The information may be furnished to: 
FCIC contract agencies, employees and loss adjusters; reinsured 
companies; other agencies within the United States Department of 
Agriculture; the Internal Revenue Service; the Department of Justice, or 
other federal or State law enforcement agencies; credit reporting 
agencies and collection agencies; and in response to judicial orders in 
the course of litigation.
    A false claim made to the Corporation, or a false statement made on 
a matter within the jurisdiction of the Corporation, may subject the 
maker to criminal and civil penalties (18 U.S.C. 1001, 1006; 31 U.S.C. 
3729, 3730).

[54 FR 43273, Oct. 24, 1989]



Sec. 401.133  Sugarcane endorsement.

    The provisions of the Sugarcane Crop Insurance Endorsement for the 
1991 through 1995 crop years are as follows:

        Federal Crop Insurance Corporation Sugarcane Endorsement

                       1. Insured Crop and Acreage

    a. The crop insured will be sugarcane grown for processing for sugar 
or for seed.
    b. The acreage insured for each crop year will be plant and stubble 
cane grown on insurable acreage.

                            2. Causes of Loss

    The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

    a. Adverse weather conditions;
    b. Fire;
    c. Insects;
    d. Plant disease;
    e. Wildlife;
    f. Earthquake;
    g. Volcanic eruption; or
    h. If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.

[[Page 145]]

                            3. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches, times 
any applicable premium adjustment percentage for which you may qualify 
as shown in the actuarial table.

                           4. Insurance Period

    In addition to the provisions in section 7 of the general crop 
insurance policy, the following will apply.
    a. Insurance attaches on plant cane at the time of planting unless 
otherwise provided for in writing by us and on stubble cane on the first 
day following harvest unless the cane was damaged by conditions 
occurring before harvest. If the stubble cane was damaged before 
harvest, insurance will attach on the later of April 15 or 30 days 
following harvest. Notwithstanding the first sentence of this paragraph, 
insurance will attach on stubble cane in Louisiana, after the second 
crop year, only on the later of April 15 or 30 days after harvest.
    b. The calendar dates for the end of insurance period are:

  (1) Louisiana..............................................January 31;
  (2) All other states.........................................April 30.

                            5. Unit Division

    Sugarcane acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
more than one unit if for each proposed unit:
    a. You maintain written, verifiable records of planted acreage and 
harvested production for at least the previous crop year and production 
reports based on those records are filed to obtain an insurance 
guarantee;
    b. The acreage planted to insured sugarcane is located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, the land is identified by separate Agricultural 
Stabilization and Conservation Service (ASCS) Farm Serial Numbers, 
provided:
    (1) The boundaries of the sections or Farm Serial Numbers are 
clearly identifiable and the insured acreage can be determined; and
    (2) The sugarcane is planted in such a manner that the planting 
pattern does not continue into the adjacent section or Farm Serial 
Number; and
    c. The acreage planted to the insured sugarcane is located in a 
single section or Farm Serial Number and consists of acreage on which 
both irrigated and nonirrigated practices are carried out, provided:
    (1) Sugarcane planted on irrigated acreage does not continue into 
nonirrigated acreage in the same rows or planting pattern; and
    (2) Planting, fertilizing and harvesting are carried out in 
accordance with applicable recognized good dry-land and irrigated 
farming practices for the area.
    If you have a loss of any unit, production records for all harvested 
units must be provided to us. Production that is commingled between 
optional units will cause those units to be combined. If your sugarcane 
acreage is not divided into optional units as provided in this section, 
your premium will be reduced as provided by the actuarial table.

                               6. Notices

    a. You must give us notice at least 15 days before you begin cutting 
any sugarcane for seed. During this time we may make an appraisal for 
the sugar potential. If we do not appraise the acreage, the production 
to count will be the per acre production guarantee for the unit. Your 
notice must include the unit number and the number of acres you intend 
to harvest as seed.
    b. For the purposes of section 8 of the general crop insurance 
policy, in case of damage or probable loss and you intend to harvest, 
the required representative samples of unharvested sugarcane must be at 
least 10 feet wide and the entire length of the field.

                         7. Claim for Indemnity

    If an indemnity is to be claimed on any unit, you must leave the 
stalks on unharvested acreage and the stubble on harvested acreage 
intact until inspected by us.
    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sugar to be 
counted (see subsection 7.b.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    (b) The total production (in pounds of sugar) to be counted for a 
unit will include all harvested and appraised production.
    (1) Sugar production to count from acreage damaged by freeze within 
the insurance period, which cannot be processed for sugar by the boiling 
house operation, will be determined by dividing the dollar amount 
received from the mill for the damaged sugarcane by the price per pound 
of raw sugar (The applicable price for raw sugar will be the local 
market price on the earlier of the day the loss is adjusted or the day 
such sugar is sold);
    (2) Appraised production to be counted will include:
    (a) Any appraisal under subsections 6.(a), 7.b.(3) and 7.b.(4);

[[Page 146]]

    (b) Unharvested production on harvested acreage, potential 
production lost due to uninsured causes, and failure to follow 
recognized good sugarcane farming practices;
    (c) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (d) Any unharvested production.
    Appraisals and harvested production not processed for sugar will be 
given in pounds of sugar.
    (3) We will make an appraisal of not less than the production 
guarantee per acre on any harvested acreage on which the stubble is 
destroyed prior to our inspection.
    (4) An appraisal for inadequate stand will be made at the time of 
inspection on sugarcane acreage where insurance did not attach the first 
day following harvest. If the product of the number of stalks per acre 
multiplied by 2, multiplied by the factor (percentage of sugar) 
contained in the actuarial table for that purpose does not equal the 
per-acre guarantee, the per acre appraisal for inadequate stand will be 
the difference between the appraised production and the production 
guarantee.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production to count unless such acreage is:
    (a) Not put to another use before harvest of sugarcane becomes 
general in the county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.

                  8. Cancellation and Termination Dates

    The cancellation and termination date is September 30.

                           9. Contract Changes

    The date by which contract changes will be available in your service 
office is August 15 preceding the cancellation date.

                        10. Report of Production

    There is a one-year lag period for reporting your sugarcane 
production. You must report production for the previous crop year before 
the cancellation date for the subsequent crop year.

                          11. Meaning of Terms

    a. Crop year means the period from planting for plant cane and the 
day following harvest for stubble cane until the end of the insurance 
period and is designated by the calendar year in which the sugarcane 
harvest normally begins in the county.
    b. Harvest means the cutting and removing of sugarcane from the 
field.
    c. Plant cane (see definition of sugarcane).
    d. Stubble cane (see definition of sugarcane).
    e. Sugarcane means either:
    (1) Plant cane growing from seed planted that crop year; or
    (2) Stubble cane growing from the stubble left to produce another 
crop from previously harvested sugarcane.

[55 FR 25955, June 26, 1990, as amended at 58 FR 33509, June 18, 1993; 
60 FR 56934, Nov. 13, 1995]



Sec. 401.134  Texas citrus tree endorsement.

    The provisions of the Texas Citrus Tree Endorsement for the 1989 and 
subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                      Texas Citrus Tree Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following insurable citrus 
tree types (hereafter called trees) you elect:

Type I  Early and mid-season orange trees;
Type II  Late orange (including Temple) trees;
Type III  Grapefruit trees except types IV and V;
Type IV. Rio Red and Star Ruby grapefruit trees; or
Type V  Ruby Red grapefruit trees;

which are set out for the purpose of harvesting citrus as fresh fruit or 
juice.
    b. In addition to the citrus trees not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus trees;
    (1) Which are not irrigated;
    (2) For the crop year the application for insurance is filed unless 
we inspect the acreage and consider it acceptable;
    (3) Which have been grafted onto existing root stock or nursery 
stock within the one year period prior to the date insurance attaches; 
or
    (4) In any established groves which do not have the potential to 
produce at least 70 percent of the area average yield for the type and 
age, unless we agree in writing to insure such trees;
    c. We may exclude from insurance or limit the amount of insurance on 
any acreage which was not insured by us the previous crop year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable damage to citrus 
trees resulting from the following causes occurring within the insurance 
period:
    (1) Freeze;

[[Page 147]]

    (2) Excess moisture;
    (3) Hail;
    (4) Fire;
    (5) Tornado;
    (6) Excess wind; or
    (7) Failure of the irrigation water supply;

unless those causes are excluded, or limited by the actuarial table or 
section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
damage to trees due to fire if weeds and other forms of undergrowth have 
not been controlled or tree pruning debris has not been removed from the 
grove.

 3. Report of Acreage, Share, Number, Type, Age of Trees, and Practice 
                            (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report:
    (1) The number and type of trees;
    (2) The date of original set out; and
    (3) The date of replacement or dehorning, if more than 10 percent of 
the trees on any unit have been replaced or dehorned in the previous 5 
years.
    b. If any insurable acreage of trees is set out after June 1, and 
you elect to insure such acreage during that crop year, you must report 
to us within 72 hours of the completion of set out the acreage, 
practice, type, number of trees, date set out is completed, and your 
share.
    c. The date by which you must annually submit the acreage report is 
June 30 of the calendar year in which insurance attaches.

                         4. Amounts of Insurance

    a. The amount of insurance shown on the actuarial table will be 
reduced for any acreage which has not reached the fourth growing season 
after being set out or the fifth year following dehorning. The amount of 
insurance will be the product obtained by multiplying the amount of 
insurance contained in the actuarial table by:
    (1) 33 percent the year of set out or the year following dehorning 
(insurance will be limited to this amount until trees that are set out 
are one year of age or older on June 1);
    (2) 60 percent the first growing season after being set out or the 
second year following dehorning;
    (3) 80 percent the second growing season after being set out or the 
third year following dehorning; or
    (4) 90 percent the third growing season after being set out or the 
fourth year following dehorning.
    b. The amount of insurance will be reduced proportionately for any 
unit on which the stand is less than 90 percent, based on the original 
planting pattern.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per acre times the premium rate, times the insured acreage, 
times your share at the time insurance attaches.

                           6. Insurance Period

    a. In lieu of section 7 of the general crop insurance policy, 
insurance attaches on June 1 for each crop year except that for the 
first crop year insured if the application is accepted by us after June 
1:
    (1) The insurance against excess wind and freeze will attach the 
tenth day after the properly completed application is submitted to the 
service office; and
    (2) If any insurable acreage is set out after June 1, insurance will 
attach on the date set out is completed for the unit if the acreage is 
reported within 72 hours after the date of completion, except for excess 
wind and freeze; and
    (3) For all other instances, insurance attaches on the date the 
application is accepted.
    b. The insurance period ends at the earlier of:
    (1) May 31 following the beginning of the crop year; or
    (2) Total destruction of the insured trees.

                            7. Unit Division

    a. Citrus tree acreage that would otherwise be one unit, as defined 
in section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus tree acreage that would otherwise be one unit as defined 
in section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if you agree to pay 
additional premium if required by the actuarial table and the insured 
trees are located on non-contiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be provided.

                       8. Notice of Damage or Loss

    a. In lieu of section 8 of the general crop insurance policy and in 
case of damage or probable loss, you must within 10 days give us written 
notice of:
    (1) The dates of damage; and
    (2) The causes of damage.
    b. If you are going to claim an indemnity on any unit, we must 
inspect all insured acreage and damaged trees before pruning, dehorning, 
or removal.

                         9. Claim for Indemnity

    a. In addition to the requirements in section 9 of the general crop 
insurance policy

[[Page 148]]

you must furnish records to us concerning all trees on the unit.
    b. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance;
    (2) Multiplying this result by the applicable percent of loss 
determined by subtracting from the actual percent of damage determined 
in accordance with subsection 9.c., the following applicable amount:
    (a) 25 percent (for Coverage Level 3) and dividing the result by 75 
percent;
    (b) 35 percent (for Coverage Level 2) and dividing the result by 65 
percent; or
    (c) 50 percent (for Coverage Level 1) and dividing the result by 50 
percent; and
    (3) Multiplying this result by your share.
    c. The total amount of indemnity will include both trees damaged and 
trees destroyed due to an insurable cause.
    (1) The percent of damage to count will be:
    (a) The percent of damage determined by dividing the number of 
scaffold limbs (scaffold limbs are limbs directly attached to the trunk) 
damaged in an area from the trunk to a length equal to one-fourth (\1/
4\) the height of the tree, by the total number of scaffold limbs before 
damage occurred, (any trees with over 80 percent actual damage will be 
counted as 100 percent damaged unless the damage occurs within one year 
of set out);
    (b) Any grove with over 80 percent actual damage will be counted as 
100 percent damaged unless the damage occurs within one year of set out; 
or
    (c) The percent of damage resulting from insurable causes occurring 
during the crop year of set out as follows:
    (i) 100 percent if the trees are killed back to the root stock; or
    (ii) 90 percent if the trees have less than 12 inches of live wood 
above the bud union, (however, no damage will be considered if more than 
12 inches of wood above the bud union is alive).
    (2) Any percentage of damage by uninsured causes, will not be 
included in the percent of damage.
    d. The amount of indemnity will be determined at the earlier of:
    (1) Total destruction of the trees; or
    (2) The calendar date for the end of the insurance period.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are May 31 prior to the date 
insurance attaches.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is February 28 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the period beginning June 1 and extending through 
May 31 of the following year and is designated by the calendar year in 
which the insurance period ends.
    b. Dehorning means the cutting back of each scaffold limb to a 
length that is no longer than \1/4\ the height of the tree.
    c. Destroyed means trees which are damaged to the extent that 
removal is required.
    d. Excess wind means a natural movement of air which has sustained 
speeds in excess of 58 miles per hour recorded at the U.S. Weather 
Service reporting station nearest to the crop at the time of crop 
damage.
    e. Freeze means the condition of air temperatures over a widespread 
area remaining sufficiently at or below 32 degrees Fahrenheit to cause 
tree damage.
    f. Non-contiguous land means land which is not touching at any 
point. Land which is separated by only a public or private right-of-way 
will be considered to be touching (contiguous).
    g. Set out means transplanting the citrus tree from the nursery to 
the grove.
    h. Total destruction means the occurrence of damage by unit to the 
trees which have been set out more than one year in excess of 80 
percent.

[53 FR 9101, Mar. 21, 1988]



Sec. 401.135  Malting barley option.

    The provisions of the Malting Barley Option for the 1989 through 
1994 crop years are as follows:

                   Federal Crop Insurance Corporation

                 Barley Insurance Malting Barley Option

    (This is a continuous Option. Refer to section 15 of the General 
Crop Insurance Policy)

Insured's name  ________________________________________________________
Contract No.  __________________________________________________________

                                Crop Year

                                 Address

Identification No.______________________________________________________
SSN  ___________________________________________________________________
Tax  ___________________________________________________________________

    It is hereby agreed to amend the Federal Crop Insurance General Crop 
Insurance Policy and Barley Endorsement under, and in accordance with, 
the following terms and conditions:

[[Page 149]]

 1. The option must be submitted to us on or before the final date for 
 accepting applications for the initial crop year in which you wish to 
          insure your malting barley acreage under this option.

2. You must have a Federal Crop Insurance General Crop Insurance Policy 
           and Barley Endorsement (``Basic Policy'') in force.

           3. You must provide by the acreage reporting date:

    a. Acceptable records of the sale of malting barley for malting 
purposes for 3 of the previous 5 crop years; or
    b. A binding written contract with a buyer of malting barley for 
malting purposes, which states the quantity contracted and purchase 
price or method for determining such price.

   4. All barley acreage in the county planted to an approved malting 
  variety in which you have a share, will be insured under this option 
(``Malting Barley''). All barley acreage of any non-malting variety will 
   be insured under the terms of the Basic Policy (``Basic Barley''). 
Malting barley and basic barley acreage will be separate units. Further 
 unit division may be allowed in accordance with the provisions of the 
                              basic policy.

 5. You must elect the highest price election provided for basic barley.

    6. Your premium rate for malting barley will be provided by the 
                            actuarial table.

    7. In lieu of section 7.b. (1) and (2) of the Barley Endorsement:

    a. Mature malting barley production which otherwise is not eligible 
for quality adjustment will be reduced .12 percent for each one tenth 
(.1) percentage point of moisture in excess of 13.0 percent; or
    b. Mature malting barley production, which due to insurable causes, 
is not accepted by a buyer of malting barley and will not meet the 
applicable standards for two-rowed or six-rowed malting barley (see 
Sec. 10.a.), will be adjusted by:
    (1) Dividing the value per bushel for the insured malting barley 
(see 10.d.) by the price election for malting barley; and
    (2) Multiplying the result (not to exceed one (1.0)) by the number 
of bushels of such barley.
    c. All grade determinations must be made by a grader licensed to 
grade barley under the Unted States Grain Standards Act from samples 
obtained by a licensed sampler or our loss adjuster. Any production 
which is not sampled and graded as provided by this section will be 
considered as malting barley meeting the applicable standards.

 8. All provisions of the basic policy not in conflict with this option 
                             are applicable.

    9. Contract changes will be available at your service office by 
              September 1 preceding the cancellation date.

                       10. As used in this option:

    a. Applicable standards for two-rowed and six-rowed malting barley 
are defined in the Official United States Grain Standards.
    b. Approved malting variety means the varieties specified in the 
actuarial table or approved in writing by us.
    c. Buyer means any business enterprise regularly engaged in the 
malting of barley or brewing of malt beverages for human consumption, or 
its representative which is authorized to engage in the purchase of 
malting barley on behalf of or for sale to the malting or brewing 
company.
    d. Value per bushel for the insured malting barley means;
    (1) The local market price of U.S. No. 2 barley (basic barley) if 
the insured mature malting barley production, due to insurable causes, 
has a test weight of at least 40 pounds per bushel and, as determined by 
a grain grader licensed by the Federal Grain Inspection Service or 
licensed under the United States Warehouse Act, contains more than 85 
percent sound barley; less than 8 percent damaged kernels; less than 35 
percent thin barley; less than 5 percent black barley; and does not 
grade smutty, garlicky, or ergoty; or
    (2) The local market price of basic barley of the same quality as 
the insured malting barley, if the malting barley does not meet all the 
standards in Sec. 10.d.(1).
    The local market price for basic barley as identified in 
Sec. 10.d.(1) and (2) above will be the price on the earlier of the day 
the loss is adjusted or the day the insured barley is sold.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's Signature and Code Number__________________
Date____________________________________________________________________

[53 FR 27664, July 22, 1988, as amended at 53 FR 34022, Sept. 2, 1988; 
60 FR 56935, Nov. 13, 1995]



Sec. 401.137  Fresh market tomato minimum value option.

    The provisions of the Fresh Market Tomato Minimum Value Option for 
the 1991 and subsequent crop years are as follows:

[[Page 150]]

                   Federal Crop Insurance Corporation

                Fresh Market Tomato Minimum Value Option

(This is a continuous option. Refer to section 15 of the General Crop 
Insurance Policy)

Insured's Name____________
Contract No.____________
Address____________
Crop Year____________
Identification No.____________
SSN________Tax________

    It is hereby agreed to amend the Dollar Plan of Fresh Market Tomato 
Endorsement in accordance with the following terms and conditions.
    1. This option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to insure your tomatoes under this Option.
    2. You must have a Federal Crop Insurance General Policy and Dollar 
Plan Fresh Market Tomato Endorsement (``basic policy'') in force.
    3. You must select either Option I or II below by marking the 
appropriate space below. All insurable acreage in which you have a share 
in the county will be covered under the option you select.
    [  ] Option I:
    (a) Upon purchase of this option, subsection 9.b.(1)(a) of the 
Dollar Plan of Fresh Market Tomato Endorsement will be amended to change 
the reference from $3.00 to $2.00 in determining the total value of 
harvested production to count.
    (b) The premium rate for this option will be an additional 30 
percent of your premium for basic coverage.
    [  ] Option II:
    (a) Upon purchase of this option, subsection 9.b.(1)(a) of the 
Dollar Plan Fresh Market Tomato Endorsement will not apply to your 
tomato acreage. The total value of harvested production will be the 
dollar amount obtained by multiplying the number of 25-pound cartons of 
tomatoes sold by the price received minus allowable costs as contained 
in the actuarial table; however, such price must not be less than zero 
for any carton.
    (b) The premium rate for this option will be an additional 50 
percent of your premium for basic coverage.
    4. All provisions of the General Policy and Dollar Plan of Fresh 
Market Tomato Endorsement not in conflict with this Option are 
applicable.
    5. All determinations under this Option will be made by us.
    6. This Option may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the ``basic policy,'' preceding such crop 
year.

Insured's Signature____________
Date____________
Corporation Representative's
Signature and Code Number____________
Date____________

[54 FR 48073, Nov. 21, 1989]



Sec. 401.138  Fresh market sweet corn endorsement.

    The provisions of the Fresh Market Sweet Corn Endorsement for the 
1991 and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                   Fresh Market Sweet Corn Endorsement

                             1. Insured Crop

    a. The crop insured will be sweet corn planted for harvest as fresh 
market sweet corn, grown on insurable acreage, and for which an amount 
of insurance and premium rate are set by the actuarial table.
    b. In addition to the sweet corn insurable in section 2 of the 
general crop insurance policy we do not insure any acreage of sweet 
corn:
    (1) Grown by any entity if that entity had not previously:
    (a) grown sweet corn for commercial sales; or
    (b) participated in the management of a sweet corn farming 
operation.
    (2) Grown for direct consumer marketing;
    (3) Which is not irrigated; or
    (4) Unless the acreage is planted in rows far enough apart to permit 
mechanical cultivation.
    c. Paragraph 2.e.(2) of the general crop insurance policy is not 
applicable to ths endorsement.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from one or more of the following causes occurring within the 
insurance period:
    (1) Frost;
    (2) Freeze;
    (3) Hail;
    (4) Fire;
    (5) Tornado;
    (6) Wind or excess precipitation occurring in conjunction with a 
cyclone; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to causes of loss specified in section 1 of the 
general policy as not insured,

[[Page 151]]

we will not insure against any loss of production due to:
    (1) Disease
    (2) Insect infestation; or
    (3) Failure to market the sweet corn unless such failure is due to 
actual physical damage from a cause specified in subsection 2.a. of this 
endorsement.

       3. Report of Acreage, Share, and Practice (Acreage Report)

    In addition to the information required by section 3 of the general 
crop insurance policy, you must report by unit for each planting period 
all the acreage of fall, winter, and spring-planted sweet corn (as 
applicable) in the country in which you have a share.

                         4. Amount of Insurance

    a. Subsection 4.d. of the general crop insurance policy is not 
applicable to this endorsement.
    b. The amount of insurance per acre as shown on you policy 
confirmation is progressive by plant growth stage. The stages and 
amounts of insurance are:
    (1) First stage (from planting until the beginning of tasselling, 
(tassel visible above the whorl)) is 65 percent of the final stage 
amount of insurance; and
    (2) Final stage (from tasselling until the acreage is harvested) is 
the final stage amount of insurance (100 percent) as contained in the 
applicable actuarial table.
    c. Any acreage of fresh sweet corn damaged in the first stage to the 
extent that we determine it should not be further cared for, will be 
deemed to have been destroyed, even though you continue to care for it. 
The amount of insurance for such acreage will not exceed the first stage 
guarantee.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the final stage 
amount of insurance times the premium rate, times the insured acreage, 
times you share at the time of planting, times any applicable premium 
adjustment factor for which you may qualify as shown by the actuarial 
table.

                           6. Insurance Period

    In lieu of the provision in section 7 of the general crop insurance 
policy, insurance attaches when the sweet corn is planted in each 
planting period and ends at the earliest of:
    a. Total destruction of the insured crop on the unit;
    b. Discontinuance of harvest of sweet corn on the unit;
    c. The date harvest should have started on the unit on any acreage 
which has not been harvested;
    d. Completion of harvest on a unit; or
    e. Final adjustment of a loss on a unit.
    f. The calendar date for the end of the planting period contained in 
the actuarial table.

                            7. Unit Division

    All insurable sweet corn acreage, by planting period, that would 
otherwise be one unit, as defined in subsection 17.q. of the general 
crop insurance policy, may be divided into more than one unit if, for 
each proposed unit you maintain, written verifiable records of planted 
acreage and harvested production for a least the previous crop year. 
Acreage planted to the insured sweet corn must be located in separate, 
legally identifiable sections or, in the absence of section 
descriptions, on acreage identified by separate ASCS Farm Serial 
Numbers, provided:
    a. The boundaries of the section or ASCS Farm Serial Number are 
clearly identified, and the insured acreage can be easily determined; 
and
    b. The sweet corn is planted in such a manner that the planting 
pattern does not continue into an adjacent section or ASCS Farm Serial 
Number.
    If you have a loss on any unit, production records for all harvested 
units, whether insured or uninsured, must be provided to us. Production 
that is commingled between optional units will cause those units to be 
combined for insurance purposes. If your sweet corn acreage is not 
divided into optional units as provided in this section, your premium 
amount will be reduced as provided by the actuarial table.

                       8. Notice of Damage or Loss

    In lieu of the notices required in subsections 8.a. (3), and (4) of 
the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within three (3) days of the date of 
damage and indicate the cause of damage and whether a claim for 
indemnity is probable. In the event damage occurs within three (3) days 
of or during harvest, immediate notice stating the cause of damage and 
probability of a claim must be given to us. If a notice has been given, 
we must be notified of the expected time of harvest at the time of 
notice or not later than 72 hours before harvest begins, whichever is 
applicable.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre for the stage of plant growth as defined in subsection 4.c;
    (2) Subtracting therefrom the total dollar value of sweet corn 
production to be counted (see subsection 9.c.); and
    (3) Multiplying this result by your share.

[[Page 152]]

    b. In lieu of subsection 9.d. of the general crop insurance policy, 
if the information reported by you under section 3 of this endorsement 
results in a lower premium than the actual premium determined to be due, 
the amount of insurance on the unit will be computed on the information 
reported, but the value of all production from insurable acreage, 
whether or not reported as insurable, will count against the amount of 
insurance.
    c. The total value of production to be counted for a unit will 
include the value for all harvested and appraised production.
    (1) The total value of harvested production will be the greater of:
    (a) The dollar amount obtained by multiplying the number of 42 pound 
crates of sweet corn harvested on the unit by the minimum value shown 
for the planting period in the actuarial table; or
    (b) The dollar amount obtained by multiplying the number of 42 pound 
crates of sweet corn sold by the price per crate received minus the 
allowable cost established by the actuarial table (subtraction of the 
allowable cost from the price received may not result in an amount per 
crate less than zero).
    (2) The value of any appraised production will not be less than the 
dollar amount obtained by multiplying the appraised number of 42 pound 
crates of sweet corn by the minimum value per crate shown on the 
actuarial table for the planting period and will include:
    (a) The value of any potentially marketable production;
    (b) The value of unharvested production on harvested acreage and the 
value of any potential production lost due to uninsured causes; and
    (c) Not less than the final stage dollar amount of insurance per 
acre for any acreage abandoned or put to another use without prior 
written consent or which is damaged solely by an uninsured cause, or for 
which notice of damage was not given as required by section 8 of this 
endorsement and of the general crop insurance policy.
    (3) Unharvested sweet corn damaged or defective due to insurable 
causes and which is not marketable sweet corn will not be counted as 
production.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of sweet corn becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    d. A replanting payment is available in accordance with subsection 
9.h. of the general crop insurance policy. The acreage to be replanted 
must have sustained a loss in excess of 25 percent of the plant stand. 
In lieu of subsection 9.h.(1)(c) of the general crop insurance policy, 
no replanting payment will be made on acreage on which a replanting 
payment has been made during the current planting period for the crop 
year. The replanting payment will not exceed the product obtained by 
multiplying $65.00 per acre by your share.

                 10. Cancellation and Termination Dates

                                                                        
------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                          dates            
------------------------------------------------------------------------
Florida; Atkinson, Baker, Brantley,        July 31                      
 Camden, Colquitt, Cook, Early, Mitchell,                               
 and Ware Counties; Georgia and all                                     
 Georgia counties south thereof which                                   
 have a ``fall planting period.''.                                      
Alabama; all other Georgia counties and    February 15                  
 South Carolina.                                                        
All other states.........................  April 15                     
------------------------------------------------------------------------

                          11. Contract Changes

    Contract changes will be available at your service office by April 
30 preceding the cancellation date for Florida and Georgia Counties with 
a fall planting period, and by November 30 preceding the cancellation 
date in all other states.

                          12. Meaning of Terms

    For the purposes of fresh market sweet corn crop insurance:
    a. Crop year means the period within which the sweet corn is 
normally grown, beginning July 15 and continuing through the harvesting 
of the spring-planted sweet corn. It is designated by the calendar year 
in which spring-planted sweet corn is normally harvested.
    b. Cyclone means a large-scale, atmospheric wind-and-pressure system 
(without regard to the time of year), named by the United States Weather 
Service and characterized by low pressure at its center and 
counterclockwise, circular wind motion, in which the minimum sustained 
surface wind (1-minute mean) is 34 knots (39 miles per hour) or more at 
the time of loss as recorded by the U.S. Weather Service reporting 
station nearest to the crop damage.
    c. Freeze means the condition that exists when air temperature over 
a widespread area remains at or below 32 degrees Fahrenheit, and causes 
damage to plant tissue.
    d. Frost means a deposit or covering of minute ice crystals formed 
from frozen water vapor which causes damage to plant tissue.
    e. Harvest means the final picking of marketable sweet corn on the 
unit.
    f. Marketable sweet corn means the sweet corn which meets the 
standards for grading U.S. 1 or better and will withstand normal 
handling and shipping.

[[Page 153]]

    g. Planting period means the period of time within the dates set by 
the actuarial table, and is designated as ``fall-planting period,'' 
``winter-planting period,'' or ``spring-planting period.''
    h. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    i. Potential production means the number of 42 crates of sweet corn 
which would have been produced per acre by the end of the insurance 
period.
    j. Sweet corn means a type of corn with kernels containing a high 
percentage of sugar and adapted for table use.
    k. Sweet corn grown for direct consumer marketing means sweet corn 
grown for the purpose of selling from the farm directly to the consumer 
without the intervention of a wholesaler, retailer, or packer.

[55 FR 21739, May 29, 1990]



Sec. 401.139  Fresh market tomato (dollar plan) endorsement.

    The provisions of the Fresh Market Tomato Crop lnsurance Endorsement 
for the 1991 and subsequent crop years are as follows:

  Federal Crop Insurance Corporation Fresh Market Tomato (Dollar Plan) 
                               Endorsement

                             1. Insured Crop

    a. The crop insured will be tomatoes (excluding plum and cherry-type 
tomatoes) planted for harvest as fresh market tomatoes.
    b. In lieu of section 2.e.(11) of the general policy, we will insure 
newly cleared land planted to tomatoes.
    c. In addition to the fresh tomatoes not insurable under section 2 
of the general crop insurance policy we do not insure any acreage grown 
by any entity if that entity had not previously:
    (1) Grown tomatoes for commercial sale; or
    (2) Participated in the management of the tomato farming operation.
    d. We do not insure any acreage of tomatoes:
    (1) Grown for direct consumer marketing;
    (2) Which is not irrigated;
    (3) Which is not grown on plastic mulch unless allowed for by the 
actuarial table;
    (4) On which tomatoes, peppers, eggplants, or tobacco have been 
grown and the soil was not fumigated or otherwise properly prepared 
before planting tomatoes;
    (5) Which was planted to tomatoes the preceding planting period, 
unless the tomato plants of the preceding planting period were destroyed 
prior to reaching stage 2 production as defined in section 3 of this 
endorsement.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Excessive rain;
    (2) Frost;
    (3) Freeze;
    (4) Hail;
    (5) Fire;
    (6) Tornado;
    (7) Wind or excess precipitation occurring in conjunction with a 
cyclone; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

Unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss specified in section 1 of the 
general policy as not insured, we will not insure against any loss of 
production due to:
    (1) Disease or insect infestation; or
    (2) Failure to market the tomatoes unless such failure is due to 
actual physical damage from a cause specified in subsection 2.a.

                         3. Insurance Guarantees

    a. The insurance guarantees per acre are by stages and increase at 
specified intervals, up to the final stage guarantee. The stages and 
guarantees are as follows:
    (1) First stage is from planting until qualifying for stage 2. The 
first stage guarantee is 50 percent of the final stage guarantee.
    (2) Second stage is 60 days (30 days for transplants) after 
planting, and until qualifying for stage 3. The second stage guarantee 
is 75 percent of the final stage guarantee.
    (3) The third stage is 90 days (60 days for transplants) after 
planting until qualifying for the final stage. The third stage guarantee 
is 90 percent of the final stage guarantee.
    (4) The final stage begins the earlier of 105 days (75 days for 
transplants) after planting, or the beginning of harvest.
    b. Any acreage of tomatoes damaged to the extent that growers in the 
area would not further care for the tomatoes, will be deemed to have 
been destroyed even though the tomatoes continue to be cared for. The 
insurance guarantee for such acreage will be the guarantee for the stage 
in which such damage occurs.

                4. Report of Acreage, Share, and Practice

    In addition to the information required in section 3 of the general 
crop insurance policy, you must report the row width. You must report on 
or before the acreage reporting date for each planting period all the 
acreage of fall, winter, and spring-planted tomatoes as applicable in 
the county in which you have a share.

[[Page 154]]

                            5. Annual Premium

    The amount is computed by multiplying the final stage amount of 
insurance times the premium rate, times the insured acreage, times your 
share at the time of each planting, times any applicable premium 
adjustment percentage for which you may qualify (as shown in the 
actuarial table), because you have not selected optional units.

                           6. Insurance Period

    ln lieu of section 7 of the general crop insurance policy, insurance 
attaches on each unit when the tomatoes are planted in each planting 
period and ends at the earliest of:
    a. Total destruction of the tomatoes on the unit;
    b. Discontinuance of harvest of tomatoes on the unit;
    c. The date harvest should have started on the unit on any acreage 
which will not be harvested;
    d. 140 days after the date of direct seeding, transplanting, or 
replanting;
    e. Final harvest; or
    f. Final adjustment of a loss.

                            7. Unit Division

    In addition to units defined in section 17 of the general crop 
insurance policy, insurable tomato acreage will contain units by 
planting period. Insurable tomato acreage which otherwise would be one 
unit as provided above, may be divided into two or more optional units. 
Written, verifiable records of planted and harvested acreage and 
production for each optional unit must be provided to us at our request. 
For optional unit division, acreage planted to the insured tomatoes must 
be located in separate, legally identifiable sections or, in the absence 
of section descriptions, on land identified by separate ASCS Farm Serial 
Numbers, provided:
    a. The boundaries of the section or farms designated by ASCS Farm 
Serial Number are clearly identified, and the insured acreage can be 
easily determined; and
    b. The tomatoes are planted in such a manner that the planting 
pattern does not continue into an adjacent section or farm designated by 
ASCS Farm Serial Number.
    If you have a loss on any unit, preharvest appraisals for that loss 
unit and production records for all harvested units, whether insured or 
uninsured, must be provided to us. Production that is commingled between 
optional units may cause those units to be combined. If your tomato 
acreage is not divided into optional units as provided in this section, 
your premium amount will be reduced as provided by the actuarial table.

                       8. Notice of Damage or Loss

    a. If a loss is anticipated by you on any unit within 15 days prior 
to or during harvest and you are going to claim an indemnity on any 
unit, you must give us notice not later than 72 hours after the earliest 
of:
    (1) Total destruction of the tomatoes on the unit;
    (2) Discontinuance of harvest of any acreage on the unit;
    (3) The date harvest would normally start if any acreage on the unit 
is not to be harvested; or
    (4) 140 days after the direct seeding, transplanting, or replanting 
of the tomatoes (see section 6).
    b. You must not destroy any tomato acreage within a unit until 
inspected by us if an indemnity is to be claimed or the unit.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance, 
times the percentage for the stage of production defined in section 3;
    (2) Subtracting therefrom the total value of production to be 
counted (see subsection 9.b.); and
    (3) Multiplying this result by your share.
    b. The total value of production to be counted for a unit will 
include all harvested and appraised production.
    (1) The total value of harvested production will be the greater of:
    (a) The dollar amount obtained by multiplying the number of 25-pound 
cartons of tomatoes harvested in the unit by $3.00; or
    (b) The dollar amount obtained by multiplying the number of 25-pound 
cartons of tomatoes sold by the price received minus allowable cost set 
by the actuarial table (however, such price must not be less than zero 
for any carton).
    (2) The value of appraised production to be counted will include:
    (a) The value of the potential production (see subsection 13.k.) on 
tomato acreage that has not been harvested the second time for ground-
cultured tomatoes (the third time for staked tomatoes);
    (b) The value of unharvested potential production in excess of 30 
cartons after the second harvest for ground culture tomatoes (third 
harvest for staked tomatoes);
    (c) The value of the potential production lost due to uninsured 
causes; and
    (d) An amount not less than the dollar amount of insurance per acre 
for any acreage abandoned or put to another use without prior written 
consent or which is damaged solely by an uninsured cause.
    The value of any appraised production will not be less than the 
dollar amount obtained by multiplying the number of 25-pound cartons of 
tomatoes appraised by $3.00.

[[Page 155]]

    (3) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tomatoes becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    c. A replanting payment is available under this endorsement. The 
acreage to be replanted must have sustained a loss in excess of 50 
percent of the plant stand. The replanting payment per acre will be your 
actual cost per acre for replanting, but will not exceed the product 
obtained by multiplying $175.00 per acre by your share.

                  10. Cancellation and Termination Date

    The cancellation and termination date is July 31.

                          11. Contract Changes

    All contract changes will be available at your service office by 
April 30 preceding the cancellation date.

                     12. Production Reporting Dates

    The production reporting provision found in section 4 of the general 
crop insurance policy does not apply to this contract.

                          13. Meaning of Terms

    For the purpose of tomato crop insurance:
    a. Acre means 43,560 square feet of land on which row widths do not 
exceed 6 feet, or if row width exceeds 6 feet, the land on which at 
least 7260 linear feet rows are planted.
    b. Crop Year, in lieu of the definition in the General Policy, means 
the period within which the tomatoes are normally grown beginning August 
1 and continuing through harvesting of the spring-planted tomatoes and 
is designated by the calendar year in which the spring-planted tomatoes 
are normally harvested.
    c. Cyclone means a large-scale, atmospheric wind-and-pressure system 
(without regard to the time of year), named by the United States Weather 
Service and characterized by low pressure at its center and 
counterclockwise, circular wind motion, in which the minimum sustained 
surface wind (1-minute mean) is 34 knots (39 miles per hour) or more at 
the time of loss as recorded by the U.S. Weather Service reporting 
station nearest to the crop damage.
    d. Direct consumer marketing means the method of selling tomatoes 
from the farm directly to the consumer without the intervention of a 
wholesaler, retailer, or packer.
    e. Excessive rain means more than 10 inches of rain on the tomato 
field within a 24-hour period, after the tomatoes have been seeded or 
transplanted.
    f. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit, and cause 
damage to plant tissue.
    g. Frost means a deposition or covering by minute ice crystals 
formed from frozen water vapor, which causes damage to plant tissue.
    h. Harvest means the picking of marketable tomatoes on the unit.
    i. Mature green tomato means a tomato which:
    (1) Has heightened gloss because of the waxy skin that cannot be 
torn by scraping;
    (2) Has well-formed, jelly-like substance in the locules;
    (3) Has seeds that are sufficiently hard so that they are pushed 
aside and not cut by a sharp knife in slicing; and
    (4) Shows no red color.
    j. Planting means transplanting the tomato plants into the field or 
direct seeding in the field.
    k. Planting period means tomatoes planted within the dates set by 
the actuarial table, as fall-planted, winter-planted, or spring-planted.
    l. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    m. Potential production means the number of 25-pound cartons of 
mature green or ripe tomatoes with classification size of 6  x  7 (2\8/
32\ inch minimum diameter) or larger, which the tomato plants would 
produce or, would have produced per acre, by the end of the insurance 
period.
    n. Replanting means performing the cultural practices necessary to 
replant insured acreage to tomatoes.
    o. Ripe Tomato means a tomato which has a definite break in color 
from green to tannish-yellow, pink or red.
    p. Tomatoes grown for direct consumer marketing means tomatoes 
initially intended for direct consumer marketing.

[55 FR 1783, Jan. 19, 1990]



Sec. 401.140  Pear endorsement

    The provisions of the Pear Crop Insurance Endorsement for the 1989 
and subsequent crop years are as follows:

           Federal Crop Insurance Corporation Pear Endorsement

                             1. Insured Crop

    a. The crop insured will be all pear varieties established as 
adapted to the area and classified as follows:
    (1) Type I: Green Bartlett; and
    (2) Type II: all others.
    b. In addition to the pears not insurable in section 2 of the 
general crop insurance policy, we do not insure any pears:

[[Page 156]]

    (1) Of any type which has not produced an average of 4 tons per acre 
of first grade canning or U.S. number 1 pears in at least one of the 
four previous crop years;
    (2) Which we inspect and consider not acceptable; or
    (3) Which do not have production records acceptable to us.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from any of the following causes occurring within the 
insurance period:
    (1) Drought;
    (2) Earthquake;
    (3) Excess wind;
    (4) Fire;
    (5) Flood;
    (6) Freeze;
    (7) Frost;
    (8) Fruit-set failure;
    (9) Hail;
    (10) Volcanic eruption; or
    (11) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured against, contained 
in section 1 of the general crop insurance policy, we will not insure 
against any loss of production due to fire if weeds and other forms of 
undergrowth have not been controlled or tree pruning debris has not been 
removed from the orchard. We also specifically do not insure against 
failure of the fruit to color properly, or the inability to market the 
fruit as a direct result of quarantine, boycott, or refusal of any 
entity to accept production.

         3. Report of Acreage, Share, and Type (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy, you must report the crop type.
    b. The date you must annually submit the acreage report is December 
15 of the calendar year insurance attaches in California and January 15 
of the calendar year the insured crop normally blooms in all other 
states.

            4. Production Reporting and Production Guarantees

    a. In addition to the information required by section 4 of the 
general crop insurance policy, you must report by variety:
    (1) The number of bearing trees;
    (2) The number and age of trees per acre and the current planting 
pattern; and
    (3) Any tree damage or change in farming practices which will or may 
reduce yields from previous levels.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the production 
guarantee (in tons) times the price election, times the premium rate, 
times the insured acreage, times your share on the date insurance 
attaches.

                           6. Insurance Period

    a. The calendar date on which insurance attaches is November 21.
    b. The calendar date for the end of the insurance period is the 
following applicable date of the calendar year in which the pears are 
normally harvested:

------------------------------------------------------------------------
                 Variety                               Date             
------------------------------------------------------------------------
Bartlett (green and red)................  September 15.                 
Star Crimson (Crimson Red)..............  September 15.                 
all others..............................  October 15.                   
------------------------------------------------------------------------

                            7. Unit Division

    a. Pear acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy may be divided between 
type I and type II. However, alternating rows of, or interplanting of 
type I and II pears will not be divided into separate units.
    b. Pear acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be further divided into more than one unit if:
    (1) You agree to pay an additional premium if provided for by the 
actuarial table;
    (2) For each proposed unit you maintain written, verifiable records 
of acreage and harvested production for at least the previous crop year 
and production reports based on those records are timely filed to obtain 
an insurance guarantee; and
    (3) The acreage of insured pears is located on non-contiguous land.
    c. If you have a loss on any unit, production records for all 
harvested units must be provided. Production that is commingled between 
optional units will cause those units to be combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss you must give us notice of 
the date and cause of damage within 10 days of such damage.


[[Page 157]]



                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this product by the price election;
    (3) Subtracting the dollar amount obtained by multiplying the total 
production to be counted (see subsection 9.c.) by the price election; 
and
    (4) Multiplying the result by your share.
    b. If a unit contains acreage to which both type I and type II pear 
guarantees apply, the dollar amount of insurance and the dollar amount 
of production to be counted will be determined separately for each type 
and then added together to determine the total amount for the unit.
    c. The total production to be counted for a unit will include:
    (1) All harvested and appraised production that meets the following 
applicable U.S.D.A. grade standards except those pears specified in 
subsection 9.d.:
    (a) For Type I pears, first grade canning (under California Tree 
Fruit Agreement Standards) or U.S. Number 1 (under U.S. Standards for 
summer and fall pears) in California, or U.S. Number 1 (under either 
U.S. standards for summer and fall pears or processing pears) in states 
other than California; or
    (b) For Type II pears, U.S. Number 1 (under U.S. standards for 
summer and fall or winter pears); and
    (2) All production that due to insurable causes does not meet the 
grade requirements in subsection 9.c.(1) but could be marketed for any 
use. The amount of such production to be counted will be determined by:
    (a) Dividing the value of the pears per ton by the highest price 
election available for the insured type and;
    (b) Multiplying the result by the number of tons of such pears.
    c. The amount of size 180 and smaller pears in excess of 10 percent 
of the total production of a type will not be considered as production 
to count except under the provisions of subsection 9.c.(2) if the 
quantity of such pears is the result of an insured cause of loss. (This 
adjustment is not applicable to the Forelle, Seckel, or Winter Nelis 
varieties.)
    d. Appraised production will include:
    (1) Mature and potential production on unharvested acreage;
    (2) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good pear farming practices; and
    (3) Not less than the guarantee for any pears which are abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent.
    e. Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (1) Further damaged by an insured cause and is reappraised by us; or
    (2) Harvested.
    f. If you are going to claim an indemnity on any unit, all 
production must be inspected by us prior to the beginning of harvest and 
we must give you written consent prior to disposal or sale of any 
damaged fruit. If you fail to meet the requirements of this subsection 
all such production may be considered undamaged and included as 
production to count.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are November 20.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is August 31 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the period beginning with the date insurance 
attaches and extending through normal harvest time and is designated by 
the calendar year in which the pears are normally harvested.
    b. Excess wind means a natural movement of air of sufficient 
velocity to separate pears from the trees.
    c. Freeze means the condition that exists when air temperature over 
a widespread area fall to or below 32 degrees fahrenheit, and cause 
damage to plant tissue or fruit.
    d. Frost means a deposit or covering of minute ice crystals formed 
from frozen water vapor which causes damage to plant tissue or fruit.
    e. Fruit-set failure means failure of the pear trees to develop 
blossoms or set fruit due only to adverse weather conditions.
    f. Harvest means the picking of pears from the trees or removing the 
fruit from the ground.
    g. Non-contiguous Land means any land owned by you or rented by you 
for cash, a fixed commodity payment or any consideration other than a 
share in the insured crop, whose boundaries do not touch at any point. 
Land which is separated by a public or private right-of-way, waterway or 
irrigation canal will be considered to be touching (contiguous).
    h. Ton means 2,000 pounds. All production in varying container sizes 
will be converted to tons.

[54 FR 7527, Feb. 22, 1989]

[[Page 158]]



Sec. 401.142  Raisin endorsement.

    The provisions of the Raisin Crop Insurance Endorsement for the 1990 
and subsequent crop years are as follows:

                   Federal Crop Insurance Corporation

                           Raisin Endorsement

                   1. Crop, Tonnage, and Share Insured

    a. The crop insured will be raisins of grape varieties designated as 
insurable by the actuarial table.
    b. The tonnage insured will be the tonnage in which you have a share 
(as reported by you or as determined by us, whichever we elect).
    c. In lieu of subsection 2.c.(2) of the general crop insurance 
policy, for the purpose of determining the amount of indemnity, your 
share will not exceed your share at the time the raisins are removed 
from the vineyard.
    d. In addition to the raisins not insurable under section 2 of the 
general crop insurance policy, we do not insure any raisins:
    (1) Laid on trays after September 8 in vineyards with north-south 
rows in Merced or Stanislaus Counties or after September 20 in all other 
instances;
    (2) Made from table grape strippings; or
    (3) Made from vines that have had manual, mechanical, or chemical 
treatment to produce table grape sizing.

                            2. Causes of Loss

    The insurance provided is against the unavoidable loss of production 
resulting from rain, occurring within the insurance period, while 
raisins are in the vineyard, on trays or in rolls, for drying unless 
limited by the actuarial table.

      3. Report of Tray Count, Tonnage, and Share (Tonnage Report)

    By execution of the application for insurance you authorize us to 
determine or verify the insured tonnage from records maintained by the 
raisin packer, raisin reconditioner, Raisin Administrative Committee 
established under the United States Department of Agriculture, or any 
other party who may have such records.
    In lieu of section 3 of the general crop insurance policy, you must 
report on our form:
    a. For all raisins which are not damaged, the delivered tons of 
insured raisins produced in the county in which you have a share and 
your share as soon as delivery records are available, but in any event 
no later than March 1 following the crop year;
    b. For insured raisins which are damaged:
    (1) The variety;
    (2) The location of the vineyard;
    (3) The number of trays upon which the raisins have been placed for 
drying; and
    (4) Your share.
    c. You must report separately any tonnage that is not insurable. You 
must report if you do not have a share in any insurable tonnage in the 
county. This report must be submitted annually on or before March 1 of 
the year following the crop year. Indemnities may be determined on the 
basis of information you have submitted on this report. If you do not 
submit this report by the reporting date, we may determine by unit the 
insured tonnage and share or we may deny liability on any unit. Any 
report submitted by you may be revised only upon our approval. Errors in 
reporting units may be corrected by us to conform to applicable 
guidelines at the time of adjusting a loss.

            4. Amounts of Insurance and Production Reporting

    a. The amount of insurance for the unit will be determined by 
multiplying the insured tonnage times the amount of insurance per ton, 
times your share. Insured tonnage is determined for raisins:
    (1) Not damaged by rain, by the raisins delivered (delivered tons); 
or
    (2) Damaged by rain, by adding raisins delivered (delivered tons), 
if any, to any verifiable loss of production due to rain damage in the 
vineyard. Tray weights will only be used to establish raisin tonnage on 
trays or in rolls not removed from the vineyard.
    b. Subsection 4.d. of the general crop insurance policy is not 
applicable to this crop.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the amount of 
insurance per ton times the premium rate, times the insured tonnage, 
times your share on the date insurance attaches, times any applicable 
premium adjustment percentage shown on the actuarial table.

                           6. Insurance Period

    In lieu of section 7 of the general crop insurance policy, insurance 
attaches at the time the raisins are placed on trays for drying and ends 
the earlier of:
    a. October 20;
    b. The date the raisins are boxed; or
    c. The date the raisins are removed from the vineyard.

                            7. Unit Division

    a. Raisin acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided into 
units by grape variety.
    b. Raisin acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit if, for each proposed 
(optional) unit:

[[Page 159]]

    (1) You maintain written, verifiable records of raisin production 
for at least the previous crop year; and
    (2) The acreage of insured raisins is located on noncontiguous land.
    If you have a loss on any unit, production records for all harvested 
units must be maintained and be made available to us at our request. 
Production that is commingled between optional units will cause those 
units to be combined.

                       8. Notice of Damage or Loss

    In lieu of section 8 of the general crop insurance policy, if you 
are going to claim an indemnity on any unit, we must be given notice 
within 72 hours of the time the rain fell on the raisins. We may reject 
any claim for indemnity if such damage is not reported within 72 hours.

                         9. Claim for Indemnity

    a. In lieu of subsection 9.a. of the general crop insurance policy 
any claim for indemnity must be submitted to us on our form not later 
than March 31 after the calendar date for the end of the insurance 
period.
    b. In addition to the requirements in subsection 9.b. of the general 
crop insurance policy, we will not pay any indemnity unless we are 
allowed in writing to examine and obtain any records pertaining to the 
production and marketing of any raisins in which you have a share from 
the raisin packer, raisin reconditioner, Raisin Administrative Committee 
established under order of the United States Department of Agriculture, 
or any other party who may have such records.
    c. The indemnity will be determined on each unit by:
    (1) multiplying the insured tonnage of raisins by the amount of 
insurance per ton;
    (2) subtracting therefrom the total value of all insured damaged and 
undamaged raisins; and
    (3) multiplying this result by your share.
    d. Undamaged raisins or raisins damaged solely by uninsured causes 
will be valued at the insurance price (see subsection 12.c.).
    e. Raisins damaged partially by rain and partially by uninsured 
causes will be valued at the highest prices obtainable, adjusted for any 
reduction in value due to uninsured causes.
    f. Raisins damaged by rain, but which are reconditioned and meet the 
Raisin Administrative Committee (RAC) standards for raisins, will be 
valued at the insurance price. An allowance for reconditioning will be 
deducted from the value only if you obtained our written consent prior 
to reconditioning. The allowance for reconditioning will be made only 
when the raisins have been inspected by the USDA and, due to rain damage 
while on the tray are found to contain mold, embedded sand, excessive 
moisture, or micro-organisms in excess of RAC tolerances.
    The reconditioning allowance will be made based on the actual 
(unadjusted) weight of raisins to be reconditioned. Additionally, when 
raisins contain excessive moisture due to rain, the reconditioning 
allowances will be made only when the moisture is determined to be in 
excess of 18.0 percent and the raisins are wash-and-dry reconditioned. 
The maximum allowance for reconditioning is contained in the actuarial 
table, but the total reconditioning allowance will not exceed the value 
of the raisins after reconditioning. We may require you to recondition a 
representative sample of not more than 10 tons of raisins to determine 
if they meet RAC standards for marketable raisins. On the basis of 
determinations made after such sampling, we may require you to 
recondition all raisins, or we may value such raisins at the insurance 
price. If the representative sample does not meet RAC standards for 
marketable raisins, the cost of reconditioning the sample will be 
deducted from the total value of the raisins for the unit.
    g. The value to count for any raisins produced on the unit and not 
removed from the vineyard will be the larger of the appraised salvage 
value or $35.00 per ton. You must box and deliver any raisins that can 
be removed from the vineyard.
    h. We may acquire all the rights and title to your share of any 
raisins damaged by rain. In such event, the raisins will be valued at 
``zero'' in determining the amount of loss and we will have the right of 
ingress or egress to the extent necessary to take possession of, care 
for, and remove such raisins.
    i. Raisins destroyed without USDA inspection or put to another use 
without our consent will be valued at the amount of insurance.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are July 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is April 30 preceding the cancellation date.

                          12. Meaning of Terms

    a. Crop year means the calendar year in which the raisins are placed 
on trays for drying.
    b. Delivered ton means a ton of raisins or raisin material delivered 
to a packer, processor, buyer or a reconditioner, before any adjustment 
for B and better maturity standards, and after adjustment for moisture 
over 16 percent and adjusted for substandard raisins over 5 percent. 
Raisin tonnage will be reduced 0.12 percent for each 0.10 percent 
moisture in excess of 16.0 percent.

[[Page 160]]

    c. Insurance price means the value established by us for raisin 
tonnage for the purpose of determining indemnities. This value is shown 
in the actuarial table.
    d. Noncontiguous land means land which is not touching at any point. 
Land which is separated by only a public or private right-of-way will be 
considered to be touching (contiguous).
    e. Raisins mean specific varieties of grapes, designated insurable 
by the actuarial table, which have been laid on trays or are in rolls in 
the vineyard to dry.
    f. Raisin tonnage report means a form prescribed by us for annually 
reporting all the tonnage of raisins in the county in which you have a 
share.
    g. Substandard means a quality of raisins that fail to meet the 
requirements of U.S. Grade C except that layer or cluster raisins with 
seeds or Zante Currant raisins will be considered substandard if they 
fail to meet the requirements of U.S. Grade B.
    h. Table grapes mean grapes which are grown for commercial sales as 
fresh grapes on acreage where the cultural practices to produce fresh 
marketable grapes were carried out.
    i. Ton means 2,000 pounds. Raisin tonnage may be computed on the 
basis of one ton of raisins insured for every four and one-half tons of 
fresh grapes when first placed on trays for drying.
    j. USDA inspection means the actual determination by a USDA 
inspector of all defects. Limited inspections or inspections on 
submitted samples are not considered ``USDA inspections.''

[54 FR 43275, Oct. 24, 1989]



Sec. 401.143  Florida citrus endorsement.

    The provisions of the Florida Citrus Endorsement for the 1990 
through 1997 crop years are as follows:

     Federal Crop Insurance Corporation--Florida Citrus Endorsement

                             1. Insured Crop

    a. The crop insured will be any of the following citrus types you 
elect:
  Type I Early and mid-season oranges;
  Type II Late oranges;
  Type III Grapefruit for which freeze damage will be adjusted on a 
          juice basis for white grapefruit and on a fresh-fruit basis 
          for pink and red grapefruit;
  Type IV Navel oranges, tangelos and tangerines;
  Type V Murcott Honey Oranges (also known as Honey Tangerines) and 
          Temple Oranges;
  Type VI Lemons; or
  Type VII Grapefruit for which freeze damage will be adjusted on a 
          fresh basis for all grapefruit.
    If you insure grapefruit, you must insure all of your grapefruit 
under a single type designation (type III or type VII). ``Meyer Lemons'' 
and oranges commonly know as ``Sour Oranges'' or ``Clementines'' will 
not be included in any of the insurable types of citrus.
    b. In addition to the citrus not insurable in section 2 of the 
general crop insurance policy, we do not insure any citrus;
    (1) Which cannot be expected to mature each crop year within the 
normal maturity period for the type;
    (2) Produced by trees that have not reached the tenth growing season 
after being set out, unless otherwise provided in the actuarial table or 
we agree to insure such citrus in writing;
    (3) Of the Robinson tangerine variety, for any crop year in which 
you have elected to exclude such tangerines from insurance (you must 
elect this exclusion prior to April 30 preceding the crop year for which 
the exclusion is to become effective except that for the first crop 
year, you must elect this exclusion by the later of April 30 or the time 
you submit the application for insurance);
    c. Upon our approval, you may elect to insure or exclude from 
insurance for any crop year any insurable acreage in any unit which has 
a potential of less than 100 boxes per acre. If you:
    (1) Elect to insure such acreage, we will increase the potential to 
100 boxes per acre when determining the amount of loss;
    (2) Elect to exclude such acreage, we will disregard the acreage for 
all purposes related to this contract; or
    (3) Do not elect to insure or exclude such acreage:
    (a) We will disregard the acreage if the production is less than 100 
boxes per acre; or
    (b) If the production from such acreage is 100 or more boxes per 
acre, we will determine the percent of damage on all of the insurable 
acreage for the unit, but will not allow the percent of damage for the 
unit to be increased by including such acreage.
    d. We may exclude from insurance, or limit the amount of insurance 
on, any acreage which was not insured the previous crop year.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
  (1) Fire;
  (2) Freeze;
  (3) Hail;
  (4) Hurricane; or
  (5) Tornado; unless those causes are excepted, excluded, or limited by 
          the actuarial table or section 9 of the general crop insurance 
          policy.

[[Page 161]]

    b. In addition to the causes of loss not insured against in section 
1 of the general crop insurance policy, we will not insure against any 
loss of production due to:
    (1) Any damage to the blossoms or trees;
    (2) Fire, if weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the grove;
    (3) Inability to market the fruit as a direct result of quarantine, 
boycott, or refusal of any entity to accept production unless production 
has actual physical damage due to a cause specified in subsection 2.a.

    3. Report of Acreage, Share, Type, and Practice (Acreage Report)

    a. In addition to the information required in section 3 of the 
general crop insurance policy you must;
    (1) Report the crop type; and
    (2) Designate separately any acreage that is excluded under section 
1 of this endorsement.
    b. The date by which you must annually submit the acreage report is 
April 30 except for the first crop year, the report must be submitted by 
the later of April 30 or the time you submit the application for 
insurance.

                         4. Production Reporting

    Production potential for each unit is determined during loss 
adjustment. Therefore, subsection 4.d. of the general crop insurance 
policy is not applicable to this endorsement. Production history is not 
required.

                            5. Annual Premium

    a. The annual premium amount is computed by multiplying the amount 
of insurance times the premium rate, times the insured acreage, times 
your share at the time insurance attaches.
    b. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1988 crop year 
under the terms of the experience table contained in the citrus policy 
for the 1989 crop year, you will continue to receive the benefit of the 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1989 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                           6. Insurance Period

    a. The calendar date on which insurance attaches is May 1 for each 
crop year, except that for the first crop year, if the application is 
accepted by us after April 20, insurance will attach on the tenth day 
after the application is received in the service office.
    b. The end of the insurance period is the date of the calendar year 
following the year of normal bloom as follows:
    (1) January 31 for tangerines and navel oranges;
    (2) April 30 for lemons, tangelos, early and mid-season oranges; and
    (3) June 30 for late oranges, grapefruit, Temple and Murcott Honey 
Oranges.

                            7. Unit Division

    a. Citrus acreage that would otherwise be one unit, as defined in 
section 17 of the general crop insurance policy, may be divided by 
citrus type.
    b. Citrus acreage that would otherwise be one unit as defined in 
section 17 of the general crop insurance policy and subsection 7.a. 
above may be divided into more than one unit, if you agree to pay 
additional premium if required by the actuarial table and if, for each 
proposed unit:
    (1) You maintain written, verifiable records of acreage and 
harvested production for at least the previous crop year; and
    (2) Acreage planted to insured citrus is located in separate, 
legally identifiable sections, provided:
    (a) The boundaries of the sections are clearly identified and the 
insured acreage is easily determined; and
    (b) The trees are planted in such a manner that the planting pattern 
does not continue into the adjacent section; or
    (3) The acreage of insured citrus is located on noncontiguous land. 
If you have a loss on any unit, production records for all harvested 
units must be provided. Production that is commingled between optional 
units will cause those units to be combined.

                       8. Notice of Damage or Loss

    In addition to the notices required in the general crop insurance 
policy and in case of damage or probable loss:
    a. You must give us written notice of the date and cause of damage; 
and
    b. If an indemnity is to be claimed on any unit you must give us 
notice by the calendar date for the end of the insurance period if 
harvest will not begin by that date.

                         9. Claim for Indemnity

    a. The indemnity will be determined on each unit by:
    (1) Computing the average percent of damage to the citrus which 
(without regard to any percent of damage arrived at through prior 
inspections) will be the ratio of the number of boxes of citrus 
considered damaged from an insured cause to the potential

[[Page 162]]

rounded to the nearest tenth (.1) of a percent. Citrus will be 
considered undamaged potential if it is:
    (a) Or could be marketed as fresh fruit;
    (b) Harvested prior to an inspection by us; or
    (c) Harvested within 7 days after a freeze;
    (2) For limited and additional coverages, by multiplying the result 
in excess of 10 percent (e.g., 45%-10%=35% payable), times the amount of 
insurance for the unit (the amount of insurance for the unit is 
determined by multiplying the insured acreage on the unit times the 
applicable amount of insurance per acre); or
    (3) For catastrophic risk protection coverage, the result in excess 
of 50 percent divided by 50 percent (e.g. if the insured's average 
percent of damage is 75%; the percentage of the guarantee payable is 50 
percent, (75%-50%)50%); if the insured's average percent of 
damage is 60 percent, the percentage of the guarantee payable is 20 
percent, (60%-50%)50%) times the amount of insurance for the 
unit. The amount of insurance for the unit is determined by multiplying 
the insured acreage on the unit times the applicable amount of insurance 
per acre. For any average percentage of damage less than 50%, the 
insured is not eligible for an indemnity payment; and
    (4) Multiplying the product obtained in (2) above for limited and 
additional coverage, or the product obtained in (3) above for 
catastrophic risk protection, by your share.
    b. Pink and red grapefruit of citrus Type III and citrus of Types 
IV, V, and VII which are seriously damaged by freeze (as determined by a 
fresh-fruit cut of a representative sample of fruit in the unit, in 
accorance with the applicable provisions of the Florida Citrus Code), 
and are not or could not be marketed as fresh-fruit will be considered 
damaged to the following extent:
    (1) If 15 percent or less of the fruit in a sample shows serious 
freeze damage, the fruit will be considered undamaged; or
    (2) If 16 percent or more of the fruit in a sample shows serious 
freeze damage, the fruit will be considered 50 percent damaged, except 
that:
    (a) For tangerines of citrus Type IV, damage in excess of 50 percent 
will be the actual percent of damaged fruit; and
    (b) For other applicable varieties, if we determine that the juice 
loss in the fruit exceeds 50 percent, the amount so determined will be 
considered the percent of damage.
    c. Notwithstanding the provisions of subsection 9.b., as to any pink 
and red grapefruit of Type III and citrus of Types IV, V, and VII in any 
unit which is mechanically separated (using the specific gravity 
``floatation'' method) into undamaged and freeze-damaged fruit, the 
amount of damage will be the actual percent of freeze-damaged fruit not 
to exceed 50 percent and will not be affected by subsequent fresh-fruit 
marketing. The 50 percent limitation on freeze-damaged fruit, 
mechanically separated, will not apply to tangerines of citrus Type IV.
    d. Any citrus of Types I, II, and VI and white grapefruit of Type 
III which is damaged by freeze, but may be processed by canning or 
processing plants, will be considered as marketable for juice. The 
percent of damage will be determined by relating the juice content of 
the damaged fruit as determined by test house analysis to:
    (1) The average juice content based on acceptable records, furnished 
by you, showing the juice content of fruit produced on the unit for the 
three previous crop years; or
    (2) The following juice content, if acceptable records are not 
furnished:
  Type I--44 pounds of juice per 90 pound box
  Type II--47 pounds of juice per 90 pound box
  Type III--38 pounds of juice per 85 pound box
  Type VI--43 pounds of juice per 90 pound box
    e. Any citrus on the ground which is not picked up and marketed will 
be considered totally lost if the damage was due to an insured cause.
    f. Any citrus which is unmarketable either as fresh fruit or for 
juice because it is immature, unwholesome, decomposed, adulterated, or 
otherwise unfit for human consumption due to an insured cause will be 
considered totally lost.
    g. Pink and red grapefruit citrus of Type III and citrus Types IV, 
V, and VII which are unmarketable as fresh fruit due to serious damage 
from hail as defined in United States Standards for grades of Florida 
fruit will be considered totally lost.

                 10. Cancellation and Termination Dates

    The cancellation date is April 30 of the calendar year in which the 
crop normally blooms. The termination date is April 30 of the calendar 
year following the year of normal bloom.

                          11. Contract Changes.

    The date by which contract changes will be available in your service 
office is the April 15 immediately preceding the cancellation date.

                          12. Meaning of Terms

    a. Box means a standard field box as prescribed in the Florida 
Citrus Code.
    b. Crop year means the period beginning May 1 and extending through 
June 30 of the following year and will be designated by the calendar 
year in which the insurance period ends.
    c. Harvest means the severance of citrus fruit from the tree either 
by pulling, picking, or severing by mechanical or chemical

[[Page 163]]

means or picking up the marketable fruit from the ground.
    d. Noncontiguous land means any land owned by you and rented by you 
for cash, a fixed commodity payment or any consideration other than a 
share in the insured crop, whose boundaries do not touch at any point. 
Land which is separated by a public or private right-of-way, waterway or 
irrigation canal will be considered to be touching (contiguous).
    e. Potential means production:
    (1) Which would have been produced had damage not occurred and 
includes citrus which:
    (a) Was picked before damage occurred;
    (b) Remained on the tree after damage occurred;
    (c) Was lost from an insured cause; and
    (d) Was lost from an uninsured cause.
    (2) The potential will not include:
    (a) Citrus lost before insurance attaches for any crop year;
    (b) Citrus lost by normal dropping; or
    (c) Any tangerines which normally would not, by the end of the 
insurance period for tangerines, meet the 210 pack size (2 and \4/16\ 
inch minimum diameter) under United States Standards.

[54 FR 14203, Apr. 10, 1989, as amended at 60 FR 29750, June 6, 1995; 61 
FR 69001, Dec. 31, 1996]

    Effective Date Note: At 61 FR 69001, Dec. 31, 1996, Sec. 401.143 
introductory paragraph was revised, effective Jan. 30, 1997. For the 
convenience of the user, the superseded text is set forth as follows:
Sec. 401.143  Florida citrus endorsement.
    The provisions of the Florida Citrus Endorsement for the 1990 and 
subsequent crop years are as follows:

                                * * * * *



Sec. 401.146  Fresh plum endorsement.

    The provisions of the Fresh Plum Crop Insurance Endorsement for the 
1990 and subsequent crop years are as follows:

        Federal Crop Insurance Corporation Fresh Plum Endorsement

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;
    (4) Wildlife;
    (5) Volcanic eruption;
    (6) An insufficient number of chilling hours to effectively break 
dormancy; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;
unless these causes of loss are excepted, excluded, or limited by the 
actuarial table or section 9 of the general crop insurance policy.
    b. In addition to the causes of loss not insured under section 1b of 
the general crop insurance policy, we will not insure against any loss 
of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the orchard;
    (2) Disease or insect infestation unless specifically caused by 
adverse weather;
    (3) Fruit cullage caused by: green; overripe; undersize condition; 
and mechanical damage which causes rejection of the crop at the packing 
house; or
    (4) Inability to market as a direct result of quarantine, boycott, 
or refusal of any entity to accept or harvest production unless 
production has actual physical damage due to a cause specified in 
subsection 1.a.

                       2. Insured Crop and Acreage

    a. The crop insured will be plums grown for fresh market fruit or 
processing for which we provide a guarantee and premium rate:
    b. In lieu of the provisions of subsection 2e of general crop 
insurance policy, we do not insure any plum acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the fifth growing season 
after being set out;
    (3) Which has not produced at least 200 lugs fresh market production 
in the preceding crop year unless the acreage is inspected by us and 
approved for coverage;
    (4) For which production records acceptable to us for at least the 
previous crop year are not provided;
    (5) Which we consider not acceptable;
    (6) Which is interplanted with another crop, unless we inspect such 
acreage and give our approval in writing;
    (7) On which is grown a type or variety not established as adapted 
to the area; excluded by the actuarial table; or not regulated for plums 
by the California Tree Fruit agreement, a related crop advisory board, 
or the State;
    (8) From which the fruit is harvested directly by the public; or
    (9) If the orchard practices carried out are not in accordance with 
the orchard practices for which the premium rates have been established.

[[Page 164]]

     3. Report of Acreage, Share, Type and Practice (Acreage Report)

    The acreage report must be filed on or before January 31. You must 
report the crop type in addition to the information required by section 
3 of the general crop insurance policy for the acreage report.

    4. Production Reporting, Coverage Level, Practices for Computing 
                 Indemnities, and Production Guarantees

    a. In addition to the production report required in section 4 of the 
general crop insurance policy, you must report:
    (1) The number of bearing trees;
    (2) The number of trees planted per acre;
    (3) Tree damage or use of production practices which has or may 
reduce the yield from previous levels; and
    (4) If the number of bearing trees (fifth growing season and older) 
is reduced more than 10% from the preceding calendar year (In such 
event, the production guarantee will be reduced 1 percent, through 
adjustment to your average yield for each 1 percent reduction in excess 
of 10 percent).
    b. You may select only one coverage level and price election for 
plums for the crop year.

                            5. Annual Premium

    The annual premium is computed by multiplying the production 
guarantee times the price election, times the premium rate, times the 
insured acreage, times your share at the time insurance attaches.

                           6. Insurance Period

    In lieu of the provisions in section 7 of the general crop insurance 
policy, coverage begins for each crop year on February 1, following our 
inspection and determination of acceptability. Insurance ends on each 
area at least one acre in size at the earliest of:
    a. Total destruction of the insured crop;
    b. Harvest;
    c. The date harvest would normally start;
    d. Final adjustment of a loss; or
    e. September 30 of the crop year.

                                7. Units

    Plum acreage grown on non-contiguous land that would otherwise be 
one unit, as defined in section 17 of the general crop insurance policy, 
may be divided into more than one unit if, for each proposed unit, you 
maintain written, verifiable records of acreage and harvested production 
for at least the previous crop year.
    If you have a loss on any unit, production records for all harvested 
units must be maintained and be made available to us at our request. 
Production that is commingled between optional units will cause those 
units to be combined.

                       8. Notice of Damage or Loss

    In lieu of the notices required in section 8.a.(2), (3), and (4) of 
the general crop insurance policy, in case of damage or probable loss 
you must give us written notice within 72 hours of the date of damage 
and indicate the causes of damage and whether a claim for indemnity is 
probable. Notwithstanding the previous sentence, if damage occurs within 
72 hours of or during harvest, immediate notice stating the cause of 
damage and probability of a claim must be given to us. If notice is 
given under the first sentence of this paragraph, we must be notified of 
the time of harvest at least 72 hours before harvest begins.

                         9. Claim for Indemnity

    In addition to section 9 of the general crop insurance policy:
    a. The indemnity will be determined separately for each unit of 
plums by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of plums to be 
counted;
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by the insured share.
    b. The total production (standard lug equivalent) (see section 
12.d.) to be counted for a unit will include all production harvested, 
and all appraised production. Such production must meet U.S. 1 
standards as modified (before the date insurance attaches) by the latest 
California Tree Fruit Agreement Publication for fresh plums.
    (1) Mature production of fresh plums damaged by insurable causes 
within the insurance period that could be marketed for any use other 
than fresh packed plums, will be determined by multiplying the number of 
tons that could be marketed by the value per ton of fruit or $50.00 per 
ton, whichever is greater, and dividing that result by the highest price 
election available for the type. This result will be the number of 
standard lug equivalents to be considered as production to count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the applicable guarantee for any acreage which is 
abandoned, destroyed by you without our prior written consent; and
    (c) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:

[[Page 165]]

    (a) Not harvested before the harvest of plums becomes general in the 
county and is reappraised by us;
    (b) Further damaged by an insured cause and is reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested plums may be 
determined on the basis of orchard appraisals conducted after the end of 
the insurance period or discontinuance of harvest. We may appraise and 
consider as production to count, any insured fruit remaining on acreage 
not clean harvested.
    (5) We may delay final appraisal until the extent of damage can be 
determined.
    c. In the absence of acceptable records to determine the disposition 
of harvested plums, we may elect to determine such disposition and the 
amount of such production to be counted for the unit.
    d. You must authorize us in writing to examine and obtain any 
records pertaining to production and marketing of any plums, whether 
insured or uninsured, whether this crop year or prior crop years, from 
the broker, shipper, advisory board, marketing order or any other source 
we deem necessary.

                 10. Cancellation and Termination Dates

    The cancellation and termination dates are January 31.

                          11. Contract Changes

    The date by which contract changes will be available in your service 
office is October 31 preceding the cancellation date. Acceptance of any 
change will be conclusively presumed in the absence of notice from you 
to cancel the contract.

                          12. Meaning of Terms

    For the purpose of Plum crop insurance:
    a. Appraisal means an estimate of the potential production 
determined by our representative using our prescribed procedures.
    b. Crop Year means the period beginning with the date insurance 
attaches and extending through the normal harvest time, and will be 
designated by the calendar year in which the insured plums are normally 
harvested.
    c. Harvest means the picking of mature plums from the trees by hand 
or machine.
    d. Lug means a packed container of fresh plums weighing 28 pounds. 
All fresh production to count of varying lug sizes will be converted to 
standard lug equivalents on the basis of 28 pounds of packed plums.

[55 FR 4395, Feb. 8, 1990]



PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT; REGULATIONS FOR THE 1997 AND SUBSEQUENT CROP YEARS--Table of Contents




Sec.
402.1  General statement.
402.2  Applicability.
402.3  OMB control numbers.
402.4  Catastrophic Risk Protection Endorsement Provisions.

    Authority: 7 U.S.C. 1506(l) and 1506(p).

    Source: 61 FR 42985, Aug. 20, 1996, unless otherwise noted.



Sec. 402.1  General statement.

    The Federal Crop Insurance Act, as amended by the Federal Crop 
Insurance Reform Act of 1994, requires the Federal Crop Insurance 
Corporation to implement a catastrophic risk protection plan of 
insurance that provides a basic level of insurance coverage to protect 
producers in the event of a catastrophic crop loss due to loss of yield 
or prevented planting, if provided by the Corporation, provided the crop 
loss or prevented planting is due to an insured cause of loss specified 
in the crop insurance policy. This Catastrophic Risk Protection 
Endorsement is a continuous endorsement that is effective in conjunction 
with a crop insurance policy for the insured crop. Catastrophic risk 
protection coverage will be offered through approved insurance providers 
if there are a sufficient number available to service the area. If there 
are an insufficient number available, as determined by the Secretary, 
local offices of the Farm Service Agency will provide catastrophic risk 
protection coverage.



Sec. 402.2  Applicability.

    This Catastrophic Risk Protection Endorsement is applicable to each 
crop for which catastrophic risk protection coverage is available and 
for which the producer elects such coverage.



Sec. 402.3  OMB control numbers.

    The information collection activity associated with this rule has 
been approved by the Office of Management and Budget (OMB) pursuant to 
the Paperwork Reduction Act of 1995 (44

[[Page 166]]

U.S.C. chapter 35) under OMB control number 0563-0003.



Sec. 402.4  Catastrophic Risk Protection Endorsement Provisions.

    The Catastrophic Risk Protection Endorsement Provisions for the 1997 
and succeeding crop years are as follows:

                        Department of Agriculture

Federal Crop Insurance Corporation

                Catastrophic Risk Protection Endorsement

(This is a continuous endorsement)

    If a conflict exists between this Endorsement and any of the 
policies specified in section 2 or the Special Provisions for the 
insured crop, this endorsement will control.

                          Terms and Conditions

                             1. Definitions

    Additional coverage. Plans of crop insurance providing a level of 
coverage equal to or greater than sixty-five percent (65%) of your 
approved yield indemnified at one hundred percent (100%) of the expected 
market price, or comparable coverage as established by FCIC.
    Administrative fee. The $50 fee the producer must pay on a per crop 
and county basis with a maximum of $200 per producer per county and $600 
per producer for catastrophic and limited coverage on an annual basis.
    Approved insurance provider. A private insurance company, including 
its agents, that has been approved and reinsured by FCIC to provide 
insurance coverage to producers participating in the Federal Crop 
Insurance program.
    Approved yield. The amount of production per acre computed in 
accordance with FCIC's Actual Production History Program (7 CFR part 
400, subpart G) or for crops not included under 7 CFR part 400, subpart 
G, the yield used to determine the guarantee in accordance with the crop 
provisions or the Special Provisions.
    Catastrophic risk protection. The minimum level of coverage offered 
by FCIC which meets the requirements for a person to qualify for certain 
other USDA program benefits (see sections 4 and 12).
    County. The political subdivision of a state listed in the actuarial 
table and designated on your accepted application, including land in an 
adjoining county, provided such land is part of a field that extends 
into the adjoining county and the county boundary is not readily 
discernable. For peanuts and tobacco, the county will also include any 
land identified by a FSA farm serial number for the county but 
physically located in another county.
    Crop of economic significance. A crop that has either contributed in 
the previous crop year, or is expected to contribute in the current crop 
year, ten percent (10%) or more of the total expected value of your 
share of all crops grown in the county. However, a crop will not be 
considered a crop of economic significance if the expected liability 
under the Catastrophic Risk Protection Endorsement is equal to or less 
than the administrative fee required for the crop.
    Expected market price. (price election) The price per unit of 
production (or other basis as determined by FCIC) anticipated during the 
period the insured crop normally is marketed by producers. This price 
will be set by FCIC before the sales closing date for the crop. The 
expected market price may be less than the actual price paid by buyers 
if such price typically includes remuneration for significant amounts of 
post-production expenses such as conditioning, culling, sorting, 
packing, etc.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within USDA.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture or any successor agency.
    Insurance is available. When crop information is contained in the 
county actuarial documents for a particular crop.
    Limited coverage. Plans of insurance offering coverage that is equal 
to or greater than fifty percent (50%) of your approved yield 
indemnified at one hundred percent (100%) of the expected market price, 
or a comparable coverage, but less than sixty-five percent (65%) of your 
approved yield indemnified at one hundred percent (100%) of the expected 
market price, or a comparable coverage.
    Limited resource farmer. A producer or operator of a farm, with an 
annual gross income of $20,000 or less derived from all sources of 
revenue, including income from spouse's or other members of the 
household, for each of the prior two years. Notwithstanding the previous 
sentence, a producer on a farm or farms of less than 25 acres aggregated 
for all crops, where a majority of the producer's gross income is 
derived from such farm or farms, but the producer's gross income from 
farming operations does not exceed $20,000, will be considered a limited 
resource farmer.
    Linkage requirement. The legal requirement that a producer must 
obtain at least catastrophic risk protection coverage for any crop of 
economic significance as a condition of receiving benefits for such crop 
from certain other USDA programs in accordance with section 12(e), 
unless the producer executes a waiver of any eligibility for emergency 
crop loss assistance in connection with the crop.
    Secretary. The Secretary of the United States Department of 
Agriculture.

[[Page 167]]

    USDA. The United States Department of Agriculture.
    Zero acreage report. An acreage report filed by you that certifies 
you do not have a share in the crop for that crop year.

      2. Eligibility, Life of Policy, Cancellation, and Termination

    (a) You must have one of the following policies in force to elect 
this Endorsement:
    (1) The General Crop Insurance Policy (7 CFR 401.8) and crop 
endorsement;
    (2) The Common Crop Insurance Policy (7 CFR 457.8) and crop 
provisions;
    (3) The Group Risk Plan Policy, if available for catastrophic risk 
protection; or
    (4) A specific named crop insurance policy.
    (b) You must have made application for catastrophic risk protection 
on or before the sales closing date for the crop in the county.
    (c) You must be a ``person'' as defined in the crop policy to be 
eligible for catastrophic risk protection coverage.
    (d) In addition to the provisions specified in the applicable crop 
policy, this Endorsement will terminate for the crop year for which:
    (1) You fail to pay the applicable administrative fee, as specified 
in section 6;
    (2) You elect to purchase limited or additional coverage for the 
insured crop; or
    (3) The applicable crop policy, to which this endorsement attaches, 
automatically terminates (i.e., the policy must be renewed each year).

                            3. Unit Division

    (a) This section is in lieu of the unit provisions specified in the 
applicable crop policy.
    (b) For catastrophic risk protection coverage, a unit will be all 
insurable acreage of the insured crop in the county on the date coverage 
begins for the crop year:
    (1) In which you have one hundred percent (100%) crop share; or
    (2) Which is owned by one person and operated by another person on a 
share basis.

(Example: If, in addition to the land you own, you rent land from five 
landlords, three on a crop share basis and two on a cash basis, you 
would be entitled to four units; one for each crop share lease and one 
that combines the two cash leases and the land you own.)

    (c) Further division of the units described in paragraph (b) above 
is not allowed under this Endorsement.

  4. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) Notwithstanding any provision contained in any other policy 
document, for the 1995 through 1998 crop years, catastrophic coverage 
will offer protection equal to fifty percent (50%) of your approved 
yield indemnified at sixty percent (60%) of the expected market price, 
or a comparable coverage as established by FCIC.
    (b) Notwithstanding any provision contained in any other policy 
document, for the 1999 and subsequent crop years, catastrophic coverage 
will offer protection equal to fifty percent (50%) of your approved 
yield indemnified at fifty-five percent (55%) of the expected market 
price, or a comparable coverage as established by FCIC.
    (c) If the crop policy denominates coverage in dollars per acre or 
other measure, or any other alternative method of coverage, such 
coverage will be converted to the amount of coverage that would be 
payable at fifty percent (50%) of your approved yield indemnified at 
sixty percent (60%) of the expected market price for the 1995 through 
1998 crop years and fifty percent (50%) of your approved yield 
indemnified at fifty-five percent (55%) of the expected market price for 
the 1999 and subsequent crop years.
    (d) You may elect catastrophic coverage for any crop insured or 
reinsured by FCIC on either an individual yield and loss basis or an 
area yield and loss basis, if both options are offered as set out in the 
Actuarial Table or the Special Provisions.
    (e) To be eligible for an indemnity under this endorsement you must 
have suffered at least a 50 percent loss in yield.

                          5. Report of Acreage

    (a) The report of crop acreage that you file in accordance with the 
crop policy must be signed on or before the acreage reporting date. For 
catastrophic risk protection, unless the other person with an insurable 
interest in the crop objects in writing prior to the acreage reporting 
date and provides a signed acreage report on their own behalf, the 
operator may sign the acreage report for all other persons with an 
insurable interest in the crop without a power of attorney. All persons 
with an insurable interest in the crop, and for whom the operator 
purports to sign and represent, are bound by the information contained 
in that acreage report.
    (b) For the purpose of determining the amount of indemnity only, 
your share will not exceed your insurable interest at the earlier of the 
time of loss or the beginning of harvest. Unless the accepted 
application clearly indicates that insurance is requested for a 
partnership or joint venture, insurance will only cover the crop share 
of the person completing the application. The share will not extend to 
any other person having an interest in the crop except as may otherwise 
be specifically allowed in this endorsement. Any acreage or interest 
reported by or for your spouse, child or any member of your household 
may be considered your share. A lease containing provisions for both a 
minimum payment (such as a specified amount of cash, bushels, pounds, 
etc.) and a crop share will be considered a crop share lease. A lease

[[Page 168]]

containing provisions for either a minimum payment (such as a specified 
amount of cash, bushels, pounds, etc.,) or a crop share will be 
considered a cash lease. Land rented for cash, a fixed commodity 
payment, or any consideration other than a share in the insured crop on 
such land will be considered as owned by the lessee.

                6. Annual Premium and Administrative Fees

    (a) Notwithstanding any provision contained in any other policy 
document, you will not be responsible to pay a premium, nor will the 
policy be terminated because the premium has not been paid. FCIC will 
pay a premium subsidy equal to the premium established for the coverage 
provided under this endorsement.
    (b) In return for catastrophic risk protection, you must pay an 
administrative fee as follows:
    (1) To the insurance provider at the time of application (the fee 
will not be refunded if you file a zero acreage report the initial crop 
year for which the application is accepted);
    (2) Annually, on or before the acreage reporting date for the 
applicable crop for any subsequent crop years that catastrophic risk 
protection is in effect (The fee will not be required if you file a 
bonafide zero acreage report on or before the acreage reporting date, 
however, filing a false zero acreage report could subject you to 
criminal and administrative sanction); and
    (3) Equal to $50 per crop per county, subject to a maximum of two 
hundred dollars ($200) per county and six hundred dollars ($600) for all 
counties in which you insure crops. In calculating the maximum amount of 
administrative fees, the fees paid for both catastrophic risk protection 
and limited coverage will be combined.
    (c) The administrative fee provisions of paragraph (b) of this 
section do not apply if you meet the definition of a limited resource 
farmer (see section 1). If you qualify as a limited resource farmer and 
desire to be exempted from paying the administrative fee you must sign 
the waiver at the time of application (on or before the sales closing 
date.)
    (d) When a crop policy has provisions to allow you the option to 
separately insure individual crop types or varieties, you must pay a 
separate administrative fee in accordance with paragraph (b) of this 
section for each type or variety you elect to separately insure.
    (e) The administrative fee will be refunded if, after applying for 
catastrophic risk protection and paying the administrative fee, you 
elect to purchase additional coverage for such crop in the same county 
on or before the sales closing date. Administrative fees will not be 
refunded, however if, after the purchase of the additional coverage, you 
still have 4 or more crops insured in the county, or 4 or more crops 
insured in each of three or more counties, at the CAT or limited 
coverage level.
    (f) If the administrative fee is not paid when due, the crop 
insurance contract will terminate effective at the beginning of the crop 
year for which the administrative fee was not paid. You may be 
ineligible for certain other USDA program benefits as set out in section 
12, and all such benefits already received for the crop year must be 
refunded. If you fail to pay the administrative fee when due, the 
execution of a waiver of any eligibility for emergency crop loss 
assistance in connection with the crop will not be effective for any 
crop year in which payment was not made.

                             7. Insured Crop

    The crop insured is specified in the applicable crop policy, 
however:
    (a) Notwithstanding any other policy provision requiring the same 
insurance coverage on all insurable acreage of the crop in the county, 
if you purchase limited or additional coverage for a crop, you may 
separately insure acreage under catastrophic coverage that has been 
designated as ``high risk'' land by FCIC, provided that you execute a 
High Risk Land Exclusion Option and obtain a catastrophic risk 
protection policy with the same approved insurance provider, if 
available, on or before the applicable sales closing date. If 
catastrophic coverage is not available from the same insurance provider, 
you may obtain the catastrophic risk protection policy for the high risk 
land from another approved insurance provider or FSA, if available. You 
will be required to pay a separate administrative fee for both the 
limited or additional coverage policy and the catastrophic coverage 
policy unless the maximum administrative fee would be exceeded.
    (b) A tobacco producer may insure one hundred percent (100%) of the 
tobacco crop that is identified by a tobacco marketing card issued by 
FSA for a specific producer and Farm Serial Number under one CAT policy, 
provided the producer and other persons each have a share in the crop, 
all the shareholders agree in writing to such arrangement, and none of 
the persons hold any other interest in another tobacco crop for which 
they are required to obtain at least catastrophic coverage. If the 
tobacco crop is insured under one policy:
    (1) The linkage requirements will be satisfied for each shareholder 
of the crop; and
    (2) The producer insuring the crop will:
    (i) Make application for insurance and provide the name and social 
security number, or employer identification number, of each person with 
a share in the tobacco crop;
    (ii) File the acreage report showing a one-hundred percent (100%) 
share in the crop (all insurable acreage covered by such marketing card 
will be considered as one unit);

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    (iii) Be responsible to pay the one administrative fee for all the 
producers within the county;
    (iv) Fulfill all requirements under the crop insurance contract; and
    (v) Receive any indemnity payment under his or her social security 
number or employer identification number and distribute the indemnity 
payments to the other persons sharing in the crop.
    (c) A landowner will be allowed to obtain catastrophic coverage to 
satisfy linkage requirements for all other landowners who hold an 
undivided interest in the insurable acreage, provided:
    (1) All the landowners must agree in writing to such arrangement and 
have their social security number or employer identification number 
listed on the application, without regard to the actual amount of their 
interest in the insured acreage;
    (2) All landowners must have an undivided interest in the insurable 
acreage;
    (3) None of the landowners may hold any share in other acreage for 
which they are required to obtain at least catastrophic coverage;
    (4) The total cumulative liability under the Catastrophic Risk 
Protection Endorsement for all landowners must be $2,500 or less;
    (5) The landowner insuring the crop will:
    (i) Make application for insurance and provide the name and social 
security number or employer identification number of each person with an 
undivided interest in the insurable acreage;
    (ii) Be responsible to pay the one administrative fee for all the 
producers within the county;
    (iii) Fulfill all requirements under the insurance contract; and
    (iv) Receive any indemnity payment under the landowner's social 
security number, or when applicable, employer identification number, and 
distribute the indemnity payments to the other persons sharing in the 
crop.

                          8. Replanting Payment

    Notwithstanding any provision contained in any other crop insurance 
document, no replant payment will be paid whether or not replanting of 
the crop is required under the policy.

                         9. Claim for Indemnity

    (a) If two or more insured crop types, varieties, or classes are 
insured within the same unit, and multiple price elections are 
applicable, the dollar amount of insurance and the dollar amount of 
production to be counted will be determined separately for each type, 
variety, class, etc., that have separate price elections and then 
totaled to determine the total liability or dollar amount of production 
to be counted for the unit.
    (b) If you are eligible to receive an indemnity under this 
endorsement and benefits compensating you for the same loss under any 
other USDA program, you must elect the program from which you wish to 
receive benefits. Only one payment or program benefit is allowed. 
However, if other USDA program benefits are not available until after 
you filed a claim for indemnity, you may refund the total amount of the 
indemnity and receive the other program benefit. Farm ownership and 
operating loans, may be obtained from the USDA in addition to crop 
insurance indemnities.

                        10. Concealment or Fraud

    Notwithstanding any provision contained in any other crop insurance 
document, your CAT policy may be voided by us on all crops without 
waiving any of our rights, including the right to collect any amounts 
due:
    (a) If at any time you conceal or misrepresent any material fact or 
commit fraud relating to this or any other contract issued under the 
authority of the Federal Crop Insurance Act with any insurance provider; 
and
    (b) The voidance will be effective as of the beginning of the crop 
year during which such act or omission occurred. After the policy has 
been voided, you must make a new application to obtain catastrophic risk 
protection coverage for any subsequent crop year. If your policy is 
voided under this section, any waiver of eligibility for emergency crop 
loss assistance in connection with the crop will not be effective for 
the crop for the year in which the voidance occurred.

                        11. Exclusion of Coverage

    (a) Options or endorsements that extend the coverage available under 
any crop policy offered by FCIC will not be available under this 
endorsement, except the Late Planting Agreement Option. Written 
agreements are not available for any crop insured under this 
endorsement.
    (b) Notwithstanding any provision contained in any other crop 
policy, hail and fire coverage and high-risk land may not be excluded 
under catastrophic risk protection.

             12. Eligibility for Other USDA Program Benefits

    (a) Even if it was a crop of economic significance for the previous 
crop year, if you do not intend to plant the crop in the current crop 
year, you do not have to obtain crop insurance or execute a waiver of 
your eligibility for any emergency crop loss assistance in connection 
with the crop to remain eligible for the USDA program benefits specified 
in subsection (e). However, if, after the sales closing date, you plant 
that crop,

[[Page 170]]

you will be unable to obtain insurance for that crop and you must 
execute a waiver of your eligibility for emergency crop loss assistance 
in connection with the crop to remain eligible for the USDA program 
benefits specified in section 12(e). Failure to execute such a waiver 
will require you to refund any benefits already received under a program 
specified in section 12(e).
    (b) You are initially responsible to determine the crops of economic 
significance in the county. The insurance provider may assist you in 
making these initial determinations. However, these determinations will 
not be binding on the insurance provider. To determine the percentage 
value of each crop:
    (1) Multiply the acres planted to the crop, times your share, times 
the approved yield, and times the price;
    (2) Add the values of all crops grown by the producer in the county; 
and
    (3) Divide the value of the specific crop by the result of section 
12(b)(2).
    (c) You may use the type of price such as the current local market 
price, futures price, established price, highest amount of insurance, 
etc., for the price when calculating the value of each crop, provided 
that you use the same type of price for all crops in the county.
    (d) You may be required to justify the calculation and provide 
adequate records to enable the insurance provider to verify whether a 
crop is of economic significance.
    (e) You must obtain at least catastrophic coverage for each crop of 
economic significance in the county in which you have an insurable 
share, if insurance is available in the county for the crop, unless you 
execute a waiver of any eligibility for emergency crop loss assistance 
in connection with the crop to be eligible for:
    (1) Benefits under the Agricultural Market Transition Act;
    (2) Loans or any other USDA provided farm credit, including: 
guaranteed and direct farm ownership loans, operating loans, and 
emergency loans under the Consolidated Farm and Rural Development Act 
provided after October 13, 1994; and
    (3) Benefits under the Conservation Reserve Program derived from any 
new or amended application or contracts executed after October 13, 1994.
    (f) Failure to comply with all provisions of the policy constitutes 
a breach of contract and may result in ineligibility for certain other 
farm program benefits for that crop year and any benefit already 
received must be refunded. If you breach the insurance contract, the 
execution of a waiver of any eligibility for emergency crop loss 
assistance will not be effective for the crop year in which the breach 
occurs.



PART 403--PEACH (FRESH) CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
403.1  Availability of peach crop insurance.
403.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
403.3  OMB control numbers.
403.4  Creditors.
403.5  Good faith reliance on misrepresentation.
403.6  The contract.
403.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 50 FR 43648, Oct. 29, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 403.1  Availability of peach crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
peaches in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 403.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for peaches which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 403.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.

[[Page 171]]



Sec. 403.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 403.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the peach insurance contract, 
whenever: (a) An insured under a contract of crop insurance entered into 
under these regulations, as a result of a misrepresentation or other 
erroneous action or advice by an agent or employee of the Corporation: 
(1) Is indebted to the Corporation for additional premiums; or (2) has 
suffered a loss to a crop which is not insured or for which the insured 
is not entitled to an indemnity because of failure to comply with the 
terms of the insurance contract, but which the insured believed to be 
insured, or believed the terms of the insurance contract to have been 
complied with or waived; and (b) the Board of Directors of the 
Corporation, or the Manager in cases involving not more than 
$100,000.00, finds that: (1) An agent or employee of the Corporation did 
in fact make such misrepresentation or take other erroneous action or 
give erroneous advice; (2) said insured relied thereon in good faith; 
and (3) to require the payment of the additional premiums or to deny 
such insured's entitlement to the idemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 403.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the peach crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 403.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the peach crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a peach 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Peach (Fresh) Insurance Policy for the 1986 
and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                       Peach Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)

[[Page 172]]

    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Frost;
    (2) Freeze;
    (3) Hail;
    (4) Tornado;
    (5) Cyclone;
    (6) Drought;
    (7) Wind;
    (8) Lightning;
    (9) Flood;
    (10) Fire;
    (11) Earthquake;
    (12) Volcanic eruption;
    (13) An insufficient number of chilling hours to effectively break 
the dormant period for the crop year; or
    (14) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9f(5).
    b. We will not insure against any loss of production due to:
    (1) Disease or insect infestation;
    (2) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good peach farming practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow good peach irrigation practices; 
    (6) The impoundment of water by any governmental, public or private 
dam or reservoir project;
    (7) Split pits regardless of cause; or
    (8) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the types or varieties of peaches 
which are grown for the production of Fresh or Processing Peaches 
(except processing peaches in California) on insured acreage and for 
which a guarantee and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be peaches grown on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured peaches at the time insurance attaches. However, 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) From which the peaches are harvested by the public;
    (3) On which the trees have not reached the fourth growing season 
after being set out unless such acreage has produced at least 100 
bushels of peaches per acre;
    (4) Planted with a vine or tree crop other than peaches;
    (5) Which we inspect and consider not acceptable; or
    (6) Of a type or variety of peaches not established as adapted to 
the areas or excluded by the actuarial table.
    e. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good peach irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

   3. Report of Acreage, Share, Practice, and Number of Bearing Trees

    You must report on our form:
    a. All the acreage of peaches in the county in which you have a 
share;
    b. The practice;
    c. Your share on the date insurance attaches; and
    d. The number of bearing trees.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any peaches grown in the 
county. This report must be submitted annually on or before January 10. 
All indemnities may be determined on the basis of information you submit 
on this report. If you do not submit this report by January 10, we may 
elect to determine by unit the insured acreage, share, practice, and 
number of bearing trees or we may deny liability on any unit. Any report 
submitted by you may be revised only upon our approval.

[[Page 173]]

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (fourth growing season and older) 
is reduced more than 10 percent from the preceding calendar year, the 
production guarantee may be reduced 1 percent (through adjustment to 
your average yield) for each 1 percent reduction in excess of 10 
percent.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    e. You must furnish a report of production to use for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the peach policy in 
effect for the 1985 crop year, you will continue to receive the benefit 
of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on December 1 and ends at the 
earliest of:
    a. Total destruction of the peaches;
    b. The date harvest of the peaches (by variety) should have ended;
    c. Harvest of the peaches;
    d. Final adjustment of a loss; or
    e. September 30 of the crop year.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice of:
    (a) The dates of damage; and
    (b) The causes of damage.
    (2) You must give us written notice if during the period before 
harvest, the peaches on any unit are damaged and you decide not to 
further care for or harvest any part of them.
    (3) If you are going to claim an indemnity on any unit, you must 
give us notice:
    (a) At least 15 days before the beginning of harvest;
    (b) Immediately, if damage occurs within the 15 days prior to 
harvest or during harvest; or
    (c) By September 30, if harvest will not begin by this date.
    b. You must obtain written consent from us before you destroy any of 
the peaches which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peaches on the unit;
    (2) Harvest of the unit; or
    (3) September 30 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of peaches on the unit at the 
time of harvest and that any loss of production has been directly caused 
by one or more of the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.

[[Page 174]]

    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Multiplying this result by the price election;
    (3) Subtracting therefrom the dollar amount obtained by multiplying 
the total production of peaches to be counted (see section 9f) by the 
larger of the price election or the actual price per bushel of peaches; 
and
    (4) Multiplying this result by your share.
    d. If a unit contains insured acreage of both fresh and processing 
type peaches, the dollar amounts of insurance and production to count as 
established in 9.c. above will be determined separately for each type 
and then added together to determine the total amounts for the unit.
    e. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    f. The total production to be counted for a unit will include all 
appraised production plus any production harvested prior to appraisal.
    (1) Mature peach production may be adjusted downward as a result of 
a loss in quality because of hail, wind and misshapen fruit. Any 
production which is disposed of without being inspected by us will be 
considered undamaged. The amount of production will be determined for:
    (a) Peaches grown for fresh use by:
    (i) Dividing the value per \3/4\-bushel carton of the damaged 
peaches by the price per \3/4\-bushel carton of U.S. Extra No. 1 two-
inch peaches; and
    (ii) Multiplying this result by the number of bushels of such 
peaches.
    The applicable price per \3/4\-bushel carton of U.S. Extra No. 1 
two-inch peaches (if not available, the next larger size for which a 
price is available) will be the applicable average F.O.B. shipping point 
price reported by the Market News Service of the United States 
Department of Agriculture for 7 consecutive days commencing with the day 
harvest of the variety begins.
    (b) Peaches grown for processing by:
    (i) Dividing the value per bushel of the damaged peaches by the 
price per bushel of undamaged peaches; and
    (ii) Multiplying this result by the number of bushels of such 
peaches.
    The applicable price per bushel of undamaged peaches will be the 
average price for processing peaches determined for 7 consecutive days 
commencing with the day harvest of the variety begins.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized peach farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, destroyed by you without our 
consent or not inspected by us prior to the completion of harvest; and
    (c) All unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is exceeded by the 
actual harvested production.
    (4) We reserve the right to delay any appraisal of damage until the 
extent of damage can be determined.
    (5) If you elect to exclude hail and fire as insured causes of loss 
and the peaches are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    g. You must not abandon any acreage to us.
    h. You may not sue unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than individual and such entity is dissolved 
after insurance attaches for any crop year, any indemnity will be paid 
to the persons determined to be beneficially entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period,

[[Page 175]]

and you have not elected to exclude fire insurance from this policy, we 
will be liable for loss due to fire only for the smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all peaches 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records applied, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Therefore, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 30.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

[[Page 176]]

                          17. Meaning of Terms

    For the purposes of peach crop insurance:
    a. Actual price per bushel for:
    (1) ``Fresh peaches'' means the average price per bushel for U.S. 
Extra No. 1 two-inch peaches (if not available, the next larger size for 
which a price is available) determined from applicable prices reported 
by the Market News Service of the United States Department of 
Agriculture for 7 consecutive days commencing with the day harvest of 
the variety begins less the allowable cost designated by the actuarial 
table; and
    (2) ``Processing peaches'' means the average price per bushel for 
processor peaches determined for 7 consecutive days commencing with the 
day harvest of the variety begins less the allowable cost designated by 
the actuarial table.
    b. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
uninsurable types or varieties, insurable and uninsurable acreage, and 
related information regarding peach insurance in the county.
    c. Average yield means the yield established from your actual 
production records, which is approved by us and shown on our form.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the peaches are normally 
harvested.
    f. Cyclone means only a large-scale, atmospheric wind-and-pressure 
system characterized by low pressure at its center and counterclockwise 
circular wind motion which has been named by the United States Weather 
Service and which has sustained winds in excess of 58 miles per hour at 
the nearest U.S. Weather Service reporting station to the crop damage at 
the time of the crop damage.
    g. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees Fahrenheit.
    h. Frost means the condition that exists when the air temperature 
around the plant falls to 32 degrees Fahrenheit or below.
    i. Harvest means the picking of mature peaches from the trees either 
by hand or machine.
    j. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    k. Insured means the person who submitted the application accepted 
by us.
    l. Loss ratio means the ratio of indemnity to premium.
    m. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    n. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    o. Tenant means a person who rents land from another person for a 
share of the peaches or a share of the proceeds therefrom.
    p. Unit means all insurable acreage of peaches in the county on the 
date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the peaches on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part,

[[Page 177]]

coverage under the terms of such crop insurance policy will be effective 
subject to the availability of appropriations.

[50 FR 43648, Oct. 29, 1985, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 6775, 
Mar. 5, 1987; 54 FR 24320, June 7, 1989; 55 FR 35888, Sept. 4, 1990]



PART 404  [RESERVED]






PART 405--APPLE CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
405.1  Availability of apple crop insurance.
405.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
405.3  OMB control numbers.
405.4  Creditors.
405.5  Good faith reliance on misrepresentation.
405.6  The contract.
405.7  The application and policy.
405.8  Apple fresh fruit option.
405.9  Apple sunburn option.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 50 FR 43655, Oct. 29, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 405.1  Availability of apple crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
apples in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 405.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for apples which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 405.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 405.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 405.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the apple insurance contract, 
whenever: (a) An insured under a contract of crop insurance entered into 
under these regulations, as a result of a misrepresentation or other 
erroneous action or advice by an agent or employee of the Corporation: 
(1) Is indebted to the Corporation for additional premiums; or (2) has 
suffered a loss to a crop which is not insured or for which the insured 
is not entitled to an indemnity because of failure to comply with the 
terms of the insurance contract, but which the insured believed to be 
insured, or believed the terms of the insurance contract to have been 
complied with or waived; and (b) the Board of Directors of the 
Corporation, or the Manager in cases involving not more than 
$100,000.00, finds that: (1) An agent or employee of the Corporation did 
in fact make such misrepresentation or take their erroneous action or 
give erroneous advice; (2) said insured relied thereon in good faith; 
and (3) to require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Application for relief under this section must be 
submitted to the Corporation in writing.

[[Page 178]]



Sec. 405.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the apple crop 
as provided in the policy. The contract shall consist of the 
application, the policy, the Fresh Fruit Option, if applicable, and the 
county actuarial table. Any changes made in the contract shall not 
affect its continuity from year to year. The forms referred to in the 
contract are available at the applicable service offices.



Sec. 405.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the apple crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of an apple 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Apple Insurance Policy for the 1986 and 
succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                       Apple Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We shall provide the insurance described in 
this policy in return for the premium and your compliance with all 
applicable provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Drought;
    (2) Freeze;
    (3) Frost;
    (4) Wind;
    (5) Hail;
    (6) Fire;
    (7) Earthquake;
    (8) Volcanic eruption;
    (9) Fruit-set failure; or
    (10) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9e(4).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good apple management 
practices;
    (3) The failure or breakdown of irrigation equipment or facilities;
    (4) The failure to follow good apple irrigation practices;
    (5) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be a variety of apples established as 
adopted to the area, which is located on insured acreage and for

[[Page 179]]

which a guarantee and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be apples located on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured apples at the time insurance attaches.
    d. We do not insure any acreage:
    (1) Which in area A has not produced a minimum of 10 bins per acre;
    (2) Which in area B has not produced a minimum of 150 bushels per 
acre;
    (3) Which in Colorado, has not produced a minimum of 200 bushels per 
acre;
    (4) Unless we agree, in writing, to insure such acreage;
    (5) Which we inspect and consider not acceptable;
    (6) The crop year the application is filed until the acreage has 
been inspected and accepted by us; or
    (7) Acquired for the crop year until inspected and accepted by us.
    e. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good apple irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the time insurance attaches.

            3. Report of acreage, share, and Number of Trees

    You must report on our form:
    a. All the acreage of apples in the county in which you have a 
share;
    b. Your share at the time insurance attaches; and
    c. The number of bearing trees.

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any apples located in the 
county.
    This report will be submitted annually on or before the reporting 
date established by the actuarial table. All indemnities may be 
determined on the basis of information you submit on this report. If you 
do not submit this report by the reporting date, we may elect to 
determine by unit the insured acreage, share, and number of trees or we 
may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable when insurance attaches. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share when insurance attaches.
    b. Interest will accrue at the rate of one and one-half percent 
(1\1/2\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the Eastern or 
Western apple policy in effect for the 1985 crop year, you will continue 
to receive the benefit of that reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

[[Page 180]]

                           7. Insurance Period

    Insurance attaches for each crop year on November 21 except that for 
the first crop year, if we accept your application for apple insurance 
after November 21, insurance will attach on the thirtieth day after you 
submit a properly completed application. Insurance ends at the earliest 
of:
    a. Total destruction of the apples;
    b. Harvest of the unit;
    c. Final adjustment of a loss; or
    d. The earlier of:
    (1) The end of the normal harvest period by variety for the crop 
year; or
    (2) November 5 of the crop year.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us notice of the date and cause of damage within 
10 days of such damage.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined or damage occurs during 
harvest, immediate notice must be given.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 10 days after the earliest of:
    (i) Total destruction of the apples on the unit;
    (ii) Harvest of the unit; or
    (iii) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the apples which are not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the apples on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of apples on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of apples to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production to be counted for a unit will include all 
harvested and appraised production determined to be marketable.
    (1) Appraised production to be counted will include:
    (i) Unharvested marketable production, and potential production lost 
due to uninsured causes and failure to follow recognized good apple 
management practices; and
    (ii) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of apples becomes general in 
the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (3) The amount of production of any unharvested apples may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (4) If you elect to exclude hail and fire as insured causes of loss 
and the apples are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to

[[Page 181]]

timely pay is not due to your failure to provide information or other 
material necessary for the computation or payment of the indemnity.
    The interest rate will be that established by the Secretary of the 
Treasury under section 12 of the Contract Disputes Act of 1978 (41 
U.S.C. 611), and published in the Federal Register on or about January 1 
and July 1 of each year.
    The interest rate to be paid on any indemnity will vary with the 
rate announced by the Secretary of the Treasury.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.

For the purpose of this section, the amount of loss from fire will be 
the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all apples 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 20.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue

[[Page 182]]

in force through the crop year and terminate at the end thereof. Death 
of a partner in a partnership will dissolve the partnership unless the 
partnership agreement provides otherwise. If two or more persons having 
a joint interest are insured jointly, death of one of the persons will 
dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of apple crop insurance:
    a. Area A includes Montana, Wyoming, Utah, New Mexico, and all 
states west thereof.
    b. Area B includes all other states except Colorado.
    c. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
apple insurance in the county.
    d. Bin means a standard container, accepted by the industry: (1) 
Containing a minimum of 875 pounds of apples; or (2) as designated by 
the actuarial table.
    e. Bushel means a standard container, containing 42 pounds of apples 
(40 pounds in Colorado).
    f. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will also be considered contiguous.
    g. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    h. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and shall be 
designated by the calendar year in which the apples are normally 
harvested.
    i. Freeze means the condition that exists when air temperatures over 
a widespread area remain at or below 32 degrees (Fahrenheit).
    j. Frost means the condition that exists when the air temperature 
around the plant falls to 32 degrees (Fahrenheit) or below.
    k. Fruit-set failure means failure of the apple trees to develop 
blossoms or set fruit due only to adverse weather conditions, but shall 
not include poor pollination resulting from inadequate pollenizers in 
the orchard or failure to set fruit due to spray damage or other 
manageable causes.
    l. Harvest means the picking of marketable apples from the trees or 
from the ground.
    m. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    n. Insured means the person who submitted the application accepted 
by us.
    o. Loose field box means a standard container containing: (1) 35 
pounds of apples; or (2) a quantity designated by the actuarial table.
    p. Loss ratio means the ratio of indemnity to premium.
    q. Marketable means apples which grade U.S. No. 1, 2, or Cider in 
accordance with the United States Standards for Apples for Processing.
    r. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    s. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    t. Tenant means a person who rents land from another person for a 
share of the apples or a share of the proceeds therefrom.
    u. Unit means all insurable acreage of apples in the county located 
on contiguous land, on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the apples on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office. Units will be determined when the acreage is reported. Errors in 
reporting units may be corrected by us to conform to applicable 
guidelines when adjusting a loss. We may consider any acreage and share 
thereof reported by or for your spouse or child or any member of your 
household to be your bona fide share or the bona fide share of any other 
person having an interest therein.

[[Page 183]]

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43655, Oct. 29, 1985, as amended at 51 FR 29206, 29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 55 FR 35555, 
Aug. 31, 1990; 55 FR 35888, Sept. 4, 1990]



Sec. 405.8  Apple fresh fruit option.

    (a) Notwithstanding the provisions of Sec. 405.7(d), section 9.e. of 
this part, an insured producer may, upon submission and approval of a 
Fresh Fruit Option Amendment (Amendment) elect to insure any insurable 
acreage or any designated portion thereof, under the provisions of the 
Amendment. Only apple acreage which is managed with the intent of 
producing fresh-market apples will be insurable under the Amendment. If 
management practices are carried out for the production of both fresh 
and processing apples on insurable acreage, and the election is made to: 
(1) Insure fresh market apples under the Amendment and; (2) insure those 
insurers intended for processing under the Apple policy; the election to 
insure on both a fresh and processing basis must be made when the 
Amendment is submitted. The Amendment is continuous until cancelled and 
may only be cancelled prior to the cancellation date.
    (b) For those insureds who elect to insure apples under the 
Amendment, all provisions of the Apple crop insurance policy will apply 
except those provisions in conflict with the Amendment.
    (c) The Option reads as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                        Apple Fresh Fruit Option

    This is a continuous amendment (see section 15 of the basic policy).

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________

    It is hereby agreed to amend the basic Federal Crop Insurance Apple 
Policy under the following terms and conditons:
    1. This Option must be submitted to us on or before the final date 
for accepting applications for the initial crop year in which you wish 
to insure your applies under this Option.
    2. You must have an apple policy in force.
    3. You must insure all the acreage of applies in the county in which 
you have a share regardless of the intended use (fresh-market or 
processing).
    4. In addition to section 8 of the apple policy, inspection and 
grading of the fruit must be done by us prior to harvest or no quality 
adjustment will be made.
    5. Separate line entries according to intended use (fresh-market or 
processing) must be included on the acreage report required under 
section 3 of the apple policy.
    6. Your apples intended for processing will be insured under the 
quality provisons of A only (See below).
    7. Your apples intended for fresh-market will be insured under the 
quality provisions of either A or B, whichever you select.
    8. If you select A only, A will apply to all of your apples intended 
for processing and fresh-market.
    9. If you select B, those provisions will apply to all of your 
apples intended for fresh-market and the provisions of A will apply to 
all of your apples intended for processing.
    10.a. You must select either A or B by marking the appropriate space 
below.
    A----
    In addition to section 9.e. and in lieu of 17.q. of the Apple 
Policy, your production to count for any acreage designated for 
processing or fresh-market will be adjusted when your apples are damaged 
by hail to the extent that such apples will not grade U.S. No.

[[Page 184]]

1 (processing) (7 CFR 51.430 et seq.)). The adjustment factor (not to 
exceed 1) will be the ratio of the average market price (received by you 
or determined by us, whichever is larger) for your damaged production to 
the average market price for U.S. No. 1 (processing) apples. There will 
be no adjustment for quality if the apples do not grade U.S. No. 1 
because of size, color, or russeting.
    B----
    In lieu of sections 9.e.(1), 9.e.(2), 17.1, and 17.q of the Apple 
Policy, the total production to be counted for a unit must include all 
harvested and appraised production. Harvested apple production which, 
due to hail damage, does not grade 80 percent U.S. Fancy or better, in 
accordance with applicable USDA Standards (7 CFR 51.300 et seq.), will 
be adjusted as follows:
    (1) Production with 21 through 40 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 2 percent for each percent in 
excess of 20 percent. The difference between the reduced production and 
the total production will be considered cull production.
    (2) Production with 41 through 50 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 40 percent plus an additonal 3 
percent for each percent in excess of 40 percent. The difference between 
the reduced production and the total production will be considered cull 
production.
    (3) Production with 51 through 64 percent not grading U.S. Fancy or 
better due to hail damage will be reduced 70 percent plus an additional 
2 percent for each percent in excess of 50 percent. The difference 
between the reduced production and the total production will be 
considered cull production.
    (4) Production with 65 percent or more not grading U.S. Fancy or 
better due to hail damage will be considered 100 percent cull 
production.
    b. Apples which are knocked to the ground by wind or frozen to the 
extent that they can be harvested but not packed or marketed as fresh 
apples will be considered 100 percent cull production.
    c. Fifteen (15) percent of all cull production will be counted as 
production.
    d. No reduction in grade will be applied to any apple grading less 
than U.S. Fancy due solely to shape, russeting, or color.
    e. Appraised production to be counted must include:
    (1) Potential production lost due to uninsured causes and failure to 
follow recognized good apple management practices; and
    (2) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed without our consent.
    f. Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (1) Harvested;
    (2) Further damaged by an insured cause and reappraised by us; or
    (3) In whole or part knocked to the ground by wind or hail or frozen 
on the tree to the extent that harvest is not practical.
    11. Your premium rate for Apples under either A or B, as elected by 
you, will be established by the actuarial table.
    12. All provisions of the apple policy not in conflict with this 
option are applicable.
    13. All determinations under this option will be made by us.
    14. This Option may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date provided by the policy, preceding such crop year.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation representative's signature and Code Number__________________
Date____________________________________________________________________

[50 FR 43655, Oct. 29, 1985, as amended at 53 FR 46846, Nov. 21, 1988]



Sec. 405.9  Apple sunburn option.

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                          Apple Sunburn Option

    This is not a continuous option. Applications for this option must 
be made prior to the sale closing date if you want this optional 
coverage. Upon our approval this option is applicable only for the 
19____ crop year.

Insured's name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
Tax_____________________________________________________________________

    It is hereby agreed to amend the Federal Crop Insurance Apple Policy 
in accordance with the following terms and conditions:

[[Page 185]]

 1. This option must be submitted to us on or before the final date for 
 accepting applications for each crop year in which you wish to insure 
                        apples under this option.

 2. You must have an apple policy and the Apple Fresh Fruit Option B in 
                                 force.

3. You must insure all the acreage of apples in the county to which the 
    Apple Fresh Fruit Option B applies and in which you have a share.

4. In addition to the causes of loss specified in paragraph 1.a. of the 
 Apple Crop Insurance policy, excess sun is an insurable cause of loss.

    5. In lieu of sections 9.e.(1), 9.e.(2), 17.l, and 17.q. of the 
Apple Policy, the total production to be counted for a unit must include 
all harvested and appraised production. Harvested apple production 
which, due solely to excessive sun or along with hail damage, does not 
grade 80 percent U.S. Fancy or better, in accordance with applicable 
USDA Standards, will be adjusted as follows:
    a. Production with 21 thru 40 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 2 percent for each percent in excess of 20 percent. The 
difference between the reduced production and the total production will 
be considered cull production.
    b. Production with 41 thru 50 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 40 percent plus an additional 3 percent for each percent in 
excess of 40 percent. The difference between the reduced production and 
the total production will be considered cull production.
    c. Production with 51 thru 64 percent not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
reduced 70 percent plus an additional 2 percent for each percent in 
excess of 50 percent. The difference between the reduced production and 
the total production will be considered cull production.
    d. Production with 65 percent or more not grading U.S. Fancy or 
better due solely to excessive sun or along with hail damage will be 
considered 100 percent cull production.
    Fifteen (15) percent of all cull production, will be counted as 
production.

   6. The premium for this sunburn option will be established by the 
                            actuarial table.

 7. All provisions of the apple policy and the Fresh Fruit Option-B not 
              in conflict with this option are applicable.

       8. All determinations under this option will be made by us.

9. a. Excessive sun is defined as the exposure of the unharvested apples 
 to direct or indirect sun sufficient to cause the apples to grade less 
                     than U.S. Fancy due to sunburn.

    b. Sunburn is defined in accordance with applicable U.S.D.A. 
Standards.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation representative's Signature and Code Number__________________
Date____________________________________________________________________

[53 FR 46846, Nov. 21, 1988; 54 FR 11935, Mar. 23, 1989]



PART 406--NURSERY CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1989 and Succeeding Crop Years

Sec.
406.1  Availability of nursery crop insurance.
406.2  Premium rates, amounts of insurance, and coverage levels at which 
          indemnities shall be computed.
406.3  OMB control numbers.
406.4  Creditors.
406.5  Good faith reliance on misrepresentation.
406.6  The contract.
406.7  The application and policy.

    Authority: 7 U.S.C. 1506(l).

    Source: 54 FR 3412, Jan. 24, 1989, unless otherwise noted.



       Subpart--Regulations for the 1989 and Succeeding Crop Years



Sec. 406.1  Availability of nursery crop insurance.

    (a) Insurance shall be offered under the provisions of this subpart 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act).

[[Page 186]]

The counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.
    (b) The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through Agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation (hereinafter 
``Reinsured companies'') offer contracts containing substantially the 
same terms and conditions as the contract set out in this part.
    (c) No person may have in force more than one contract on the same 
crop for the crop year, whether insured by the Corporation or insured by 
a Reinsured company.
    (d) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, all such contracts will be 
voided for that crop year but the person will still be liable for the 
premium on all contracts unless the person can show to the satisfaction 
of the Corporation that the multiple contract insurance was inadvertent 
and without the fault of the insured.
    (e) If the multiple contract insurance is shown to be inadvertent 
and without the fault of the insured, the contract with the earliest 
application will be valid and all other contracts on that crop for that 
crop year will be cancelled. No liability for indemnity or premium will 
attach to the contracts so cancelled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract for 
delinquent premiums.
    (g) An insured whose contract with the Corporation or with a 
Reinsured company under the Act has been terminated because of violation 
of the terms of the contract is not eligible to obtain multi-peril crop 
insurance under the Act with the Corporation or with a Reinsured company 
unless the insured can show that the default in the prior contract was 
cured prior to the sales closing date of the contract applied for or 
unless the insured can show that the termination was improper and should 
not result in subsequent ineligibility.
    (h) All applicants for insurance under the Act must advise the 
agent, in writing, at the time of application, of any previous 
applications for a Contract under the Act and the present status of the 
applications or contracts.



Sec. 406.2  Premium rates, amounts of insurance, and coverage levels at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, amounts of insurance, 
and coverage levels, for the insured crop which will be included in the 
actuarial table on file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level from among those contained in the actuarial 
table for the crop year.



Sec. 406.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 406.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 406.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the nursery insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation or a 
Reinsured company:
    (1) Is indebted to the Corporation or a Reinsured company for 
additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the

[[Page 187]]

insured believed to be insured, or believed the terms of the insurance 
contract to have been complied with or waived; and
    (b) The Board of Directors of the Corporation (the Manager in cases 
involving not more than $100,000) or a Reinsured company finds that:
    (1) An agent or employee of the Corporation or a Reinsured company 
did in fact make such misrepresentation or take other erroneous action 
or give erroneous advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Request for relief under this section must be 
submitted, in writing, to the Corporation or to the Reinsured Company, 
whichever is applicable.

[54 FR 3412, Jan. 24, 1989, as amended at 54 FR 33494, Aug. 15, 1989]



Sec. 406.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation or a Reinsured company of a duly executed application 
for insurance on a form prescribed by the Corporation or a Reinsured 
company and payment of the premium due. The contract shall cover the 
nursery crop as provided in the policy. The contract shall consist of 
the application, the policy and any amendments thereto, and the county 
actuarial table. Changes made in the contract shall not affect its 
continuity from year to year. No indemnity will be paid unless the 
insured complies with all terms and conditions of the contract. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 406.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the nursery crop as owner if the person wishes to participate in the 
program. The application shall be submitted to the Corporation or a 
Reinsured company at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation or a Reinsured company may discontinue the 
acceptance of any application or applications in any county upon its 
determination that the insurance risk is excessive. The Manager of the 
Corporation is authorized in any crop year to extend the sales closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable service offices and publishing a notice 
in the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.
    (c) A contract in the form provided for in this subpart will come 
into effect as a continuation of the contract issued under such prior 
regulations, without the filing of a new application.
    (d) The application for the 1989 through 1995 crop years is found at 
subpart D of part 400, General Administrative Regulations (7 CFR 400.37, 
400.38). The provisions of the Nursery Crop Insurance Policy for the 
1989 through 1995 crop years are as follows:

                   Federal Crop Insurance Corporation

                         Nursery Crop Insurance

(This is a continuous contract. Refer to Section 15.)

    Note: This is a contract with the Federal Crop Insurance 
Corporation, a United States Government Agency. The terms of the 
contract are published in the Federal Register under the provisions of 
the Federal Register Act (44 U.S.C. 1501), and may not be waived or 
varied in any way by the crop insurance agent or any other agent or 
employee of FCIC.
    Agreement to Insure: We will provide the insurance described in this 
policy in return for the premium and your compliance with ALL provisions 
of the crop insurance contract.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation. Unless the context indicates 
otherwise, use of the plural form of a word includes the singular and 
use of the singular form of the word includes the plural.

[[Page 188]]

                            1. Insured Crops

    a. The crops insured will be all nursery crops grown in the county 
in standard nursery containers which are listed on the eligible plant 
listing located in the actuarial table.
    b. We do not insure any nursery crops which:
    (1) Are not grown in standard nursery containers;
    (2) Are not classified as woody, herbaceous, or foliage landscape 
plants;
    (3) Produce citrus fruit or other edible fruits or berries;
    (4) Are grown in the field;
    (5) Are not listed on the eligible plant listing located in the 
actuarial table;
    (6) Have not been inspected prior to submission of your application;
    (7) Are inspected by us and determined unacceptable;
    (8) Are not grown in a hardiness zone listed on the eligible plant 
listing for those crops; or
    (9) Are not grown in accordance with the production practices for 
which premium rates have been established.

                            2. Causes of Loss

    a. The insurance provided is against unavoidable damage resulting 
from the following causes occurring within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table.
    b. We do not insure against any loss caused by:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (2) The failure to follow recognized good production practices for 
nursery crops;
    (3) Water contained by any governmental, public, or private dam or 
reservoir project;
    (4) Flooding on any unit subject to a flood or water flowage 
easement;
    (5) Failure or breakdown of irrigation equipment or facilities;
    (6) Failure to carry out a good irrigation practice for the nursery 
crops;
    (7) The inability to market the nursery crop as a direct result of 
quarantine, boycott or refusal of any entity to accept production;
    (8) Any loss of production due to fire, where weeds and other forms 
of undergrowth have not been controlled; or
    (9) Any cause not specified in this policy as an insured cause of 
loss.
    c. You must not obtain any other crop insurance under the Federal 
Crop Insurance Act (Multiple Peril Crop Insurance Policy or Federal Crop 
Insurance Policy) on the insured crops. More than one policy will result 
in our voiding the policies and collecting the premium from you unless 
the violation of this provision is found by us to have been inadvertent. 
If we determine that the violation was inadvertent, the policy with the 
earliest date of application will be the one in force and all other 
policies will be void. Nothing in this paragraph prevents the insured 
from obtaining other hail and fire insurance not issued under the Act 
and which is subject to the provisions of section 9 hereof.
    d. Although your violation of a number of federal statutes including 
the Federal Crop Insurance Act may cause cancellation, termination, or 
voidance of your insurance contract, you are specifically directed to 
the provisions of Title XII of the Food Security Act of 1985 (Pub. L. 
99-198) and the regulations promulgated thereunder, generally referred 
to as the sodbuster, swampbuster, and controlled substance provisions. 
Your insurance policy will be cancelled if you are determined to be in 
violation of these provisions. We will recover any and all monies paid 
to you or received by you and your premium will be refunded.

                         3. Nursery Crop Report

    a. You must submit an annual crop report to us of all of your 
eligible nursery crops in the county by unit, type, container size, 
number of plants and wholesale price of plants for each month of the 
crop year. This report must be submitted on or before September 30 
preceding the crop year.
    b. Your crop report may be revised only with our consent.
    c. We may determine all losses on the basis of information on your 
crop report or the inventory as determined by us.
    d. You must designate separately any inventory which is not 
insurable. Your annual crop report will be used as the basis to 
determine your premium and the amount of insurance for each unit. If you 
do not submit the report by the reporting date, we may elect to 
determine the inventory for each unit or we may deny liability on any 
unit. Errors in reporting units may be corrected by us at the time of 
adjusting a loss.

                4. Amount of Insurance and Coverage Level

    a. The amount of insurance and coverage levels are contained in the 
actuarial table and must be elected on or before September 30 prior to 
the crop year.
    b. You may change the amount of insurance and the coverage level on 
or before the sales closing date for that crop year.

[[Page 189]]

                           5. Annual Premium.

    a. The annual premium is earned and payable on or before September 
30 preceding each crop year and will be earned in full when the policy 
becomes effective. Interest will begin to accrue on March 31 of the crop 
year. Premium will be delinquent on the termination date.
    b. Except for the 1993 and 1994 crop years, coverage will not begin 
if the premium due under this policy is not paid when due and payable. 
For the 1993 and 1994 crop year only insurance will attach on October 1, 
preceding the crop year.
    c. The annual premium amount for each unit is computed in accordance 
with these subsections:
    (1) Develop an inventory of all eligible containerized crops, by 
type of crop and container size, for each month of the proposed policy 
period.
    (2) Apply market values to these inventory numbers using your 
wholesale price list. If you discount prices published in your wholesale 
price list, the discounted prices must be used in calculating market 
values. Record these monthly values by type of crop on your insurance 
application.
    (3) Add the total monthly market values separately for each type of 
crop and divide that monthly total for each crop by the number of months 
in the crop year to get the ``Average Monthly Market Value''.
    (4) Add the Average Monthly Market Value for each of the eligible 
crops in the unit to get the ``Yearly Average''.
    (5) Multiply the Yearly Average by 90% to obtain the ``Field Market 
Value''.
    (6) Multiply Field Market Value by the coverage level.
    (7) Multiply this result by the applicable premium rate contained in 
the actuarial table.

                            6. Amounts Due Us

    a. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid balance due us. Interest will start on the date that notice 
is issued to you for the collection of any amount determined to be due. 
Interest, penalties and costs will be charged in accordance with 31 
U.S.C. 3717 and 4 CFR 102.13. The penalty for accounts more than 90 days 
past due (31 U.S.C. 3717(e)(2)) is six percent (6%) per annum. Interest 
on any amount due us found to have been received by you because of fraud 
or misrepresentation will start on the date you received the amount with 
the penalty beginning 90 days after the notice of amount due is issued 
to you.
    b. All amounts paid will be applied first to costs and penalties, 
second to accrued interest, and then to reduction of the principal 
balance.
    c. If we determine that it is necessary to contract with a 
collection agency or to employ an attorney to assist in collection, you 
agree to pay all of the expenses of collection. Those expenses will be 
paid before the application of any amounts to interest, penalties or 
principal.
    d. Any amount due us may be deducted from any indemnity payment due 
you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies and from any amounts due you from any other United States 
Government Agency.

                           7. Insurance Period

    Insurance attaches on October 1 and ends for each unit at the 
earliest of:
    a. Sale or disposal of all or a portion of the crop;
    b. Final adjustment of the loss on the part of the insured crop 
damaged; or
    c. September 30 of the crop year.

                       8. Notice of Damage or Loss

    In case of damage or probable loss you must:
    a. Provide sufficient care to protect the crop from further damage;
    b. Provide us with written notice within 72 hours of your discovery 
of the loss and obtain our written consent prior to:
    (1) Destroying, selling or otherwise disposing of any crop that is 
damaged; or
    (2) Changing or discontinuing your normal growing practices with 
respect to care and maintenance of the insured crop; and
    c. Upon our request, provide complete copies of your nursery crop 
wholesale price list for the 12-month period immediately preceding the 
loss and your marketing records for the same period.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Your loss; or
    (2) September 30 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the value of the insured crop on the unit and that any 
loss of value has been directly caused by one or more of the insured 
causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The production to count (containers) will be all plants eligible 
for insurance in a unit.
    d. The indemnity will not exceed the lesser of:

[[Page 190]]

    (1) The amount of insurance applicable to the unit less 90% of the 
value of the crop remaining on the unit after the loss; or
    (2) The amount, calculated for each unit as follows:
    (a) Subtract field market value B from field market value A (see 
section 17) to determine the total amount of loss; and
    (b) Subtract therefrom the annual loss deductible.
    e. Annual Loss Deductible amounts will be applied on an annual 
aggregate loss deductible basis for each individual unit insured for the 
crop year. Individual insured losses occurring on the same unit during 
the crop year may be accumulated (but each loss must be reported and 
valued by us). The total amount of insured losses on a unit during the 
crop year, less the annual aggregate loss deductible applicable to that 
unit, is the amount payable under this policy for that unit during the 
crop year, as limited by the amount of insurance for that unit.
    f. The value of production of any insured crop may be determined on 
the basis of our field appraisals conducted after the end of the 
insurance period.
    g. If you elect to exclude hail and fire as insured causes of loss 
and the insured crop is damaged by hail or fire, appraisals will be made 
in accordance with the applicable Form FCI-78 or FCI-78-A, ``Request To 
Exclude Hail And Fire.''
    h. You must not abandon any part of the insured crop to us.
    i. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    j. An indemnity will not be paid unless you comply with all policy 
provisions.
    k. Under no circumstances will we be liable for the payment of 
damages (compensatory, punitive, or other), attorney's fees, or other 
charges in connection with any claim for indemnity, whether we approve 
or disapprove such claim. (State and local laws to the contrary are not 
applicable to this insurance contract). We will pay simple interest 
computed on the net indemnity ultimately found to be due by us or by the 
final judgment of a court of competent jurisdiction, from and including 
the 61st day after the date you sign, date and submit to us the properly 
completed FCIC claim form. Interest will be paid only if the reason for 
our failure to timely pay is not due to your failure to provide 
information or other material necessary for the computation or payment 
of the indemnity. The interest rate will be that established by the 
Secretary of the Treasury under section 12 of the Contract Disputes Act 
of 1978 (41 U.S.C. 611), and published in the Federal Register 
semiannually on or about January 1 and July 1 of each year and will vary 
with each publication.
    l. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    m. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. (For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire).

                        10. Concealment or Fraud

    We may void the insurance contract on all crops without affecting 
your liability for premiums or waiving any right, including the right to 
collect any amount due us, if at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to this 
or any other contract with us. The voidance will be effective as of the 
beginning of the crop year with respect to which such act or omission 
occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to the applicable indemnity. The transfer must be on 
our form and approved by us. Both you and the person to whom you 
transfer your interest are jointly and severally liable for the payment 
of the premium. The transferee has all rights and responsibilities under 
the contract consistent with the transferee's interest.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us. The assignee may submit all notices and 
forms required to protect the insurance contract and to claim an 
indemnity.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid

[[Page 191]]

you plus our expenses, the excess will be paid to you.

                          14. Access to Nursery

    Any person designated by us will have access to the nursery for 
purposes related to the contract.

          15. Contract Term, Cancellation and Termination Dates

    a. This contract will be in effect for the crop year specified on 
the application and may not be cancelled by you for such crop year after 
insurance attaches. Thereafter, the contract will continue in force for 
each succeeding crop year unless cancelled or terminated as provided in 
this section or unless the premium is not paid.
    b. This contract may be cancelled by either you or us for any 
succeeding crop year by giving written notice on or before September 30, 
preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
September 30 preceding such crop year for the contract on which the 
amount is due.
    d. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    e. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. The date by which contract changes will be available in your 
service office is August 15 preceding the crop year.

                          17. Meaning of Terms

    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amount of insurance, coverage levels, 
premium rates, practices, and related information regarding crop 
insurance in the county.
    b. Amount of insurance means the value computed by:
    (1) multiplying the Yearly Average by .9 to equal field market 
value; and
    (2) multiplying the result by the coverage level.
    c. Annual loss deductible means the value computed by subtracting 
the amount of insurance from the Field Market Value for that unit.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop means all plants eligible for insurance on the unit as 
reported on the nursery crop report.
    f. Crop year means the period beginning October 1 and extending 
through September 30 of the next calendar year and is designated by the 
year in which the crop year ends. (The 1988 crop year would be from 
October 1, 1987 through September 30, 1988).
    g. Field Market Value ``A'' means the total market value of the 
insured crop for the unit involved (prior to the loss occurrence) had 
the crop been sold in your markets for the values which would have been 
reasonably expected in the month which the loss occurred, less 10% of 
such market value to eliminate costs for packing, shipping and sales 
commissions or other expenses not insured.
    h. Field Market ``B'' means the total market value of the insured 
crop for the unit involved in the loss (following the loss occurrence) 
less 10% of such market value to eliminate costs for packing, shipping 
and sales commissions or other expenses not insured.
    i. Insured means the person who submitted the application accepted 
by us and does not extend to any other person unless specifically 
indicated on the application and accepted by us.
    j. Insured crops means the crops insured under the provisions of 
this policy.
    k. Loss ratio means the ratio of indemnity to premium.
    l. Person means a partnership, association, corporation, estate, 
trust, or other legal entity, and wherever applicable, a State or a 
political subdivision or agency of a State.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Unit means all growing locations within a five mile radius of the 
name insured location designated on your crop report. Growing locations 
outside of the five mile radius of the name insured location but within 
the county may be designated in the unit or as a separate unit. If they 
are not designated in the unit or as a separate unit, they will be 
included in the closest unit listed.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

[[Page 192]]

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations (7 CFR 
part 400, subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

                     21. Dates, Reports, and Notices

    To preserve your rights under this insurance contract you are 
required to file a number of reports and notices with us by certain 
dates. The actual content requirements and time limits of those reports 
and notices are set out elsewhere in this contract and you must refer to 
those sections for those requirements.
    As a convenience to you and without limitation on our rights under 
this contract, a short description of most of the dates, reports and 
notices have been compiled in this section. Omission of any date, report 
or notice, or any of the requirements thereof, from this section does 
not relieve you of the requirement to comply with the terms of this 
contract.
    a. Application--A form required by subpart D of part 400 of 7 CFR 
and each individual program regulation. The application for insurance 
form must be completed and filed in the service office prior to the 
sales closing date (contained in the actuarial table) for the first crop 
year for which an insurance policy is requested by the insured.
    b. Assignment of indemnity-- A transfer of contract rights, made on 
our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    c. Claim for indemnity (See: section 9)--A claim made by the insured 
for damage or loss to the insured crop.
    d. Contract change date The date by which FCIC makes any contract 
changes available for inspection in the service office (See: Section 
16).
    e. Crop report-- A report required by section 3 of this contract. 
This report contains, in addition to other information, the report of 
the insured's share of all inventory of nursery crops in the county 
whether insurable or uninsurable and must be filed on or before 
September 30 prior to the crop year.
    f. Damage, notice of-- (See: Probable loss, Notice of).
    g. End of insurance period, Date of-- The date upon which the 
insured's crop insurance coverage ceases (See: section 7).
    h. Insurance attaches, Date-- October 1 of the crop year.
    i. Intent to abandon, Notice of-- The written notice to the 
Corporation by the insured indicating that because of damage from an 
insured cause, the insured has decided to no longer care for the crop.
    j. Probable loss, notice of--A written notice required to be filed 
in the service office whenever an insured believes that the nursery 
crops have been damaged to the extent that a loss is probable (See: 
section 8).
    k. Reporting date--The crop reporting date (contained in the 
Actuarial Table) by which you are required to report all your insurable 
and uninsurable inventory in the county in which you have a share at the 
time insurance attaches.
    l. Sales closing date--The date contained in the actuarial table on 
file in the respective service office which sets out the final date when 
an application for insurance may be filed. The sales closing date of 
this policy is September 30.
    22. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[54 FR 3412, Jan. 24, 1989; 54 FR 14206, Apr. 10, 1989, as amended at 55 
FR 35888, Sept. 4, 1990; 57 FR 54683, Nov. 20, 1992; 58 FR 33508, June 
18, 1993; 58 FR 46074, Sept. 1, 1993; 59 FR 35614, July 13, 1994; 59 FR 
39414, Aug. 3, 1994; 60 FR 56935, Nov. 13, 1995]



PARTS 407-408  [RESERVED]






PART 409--ARIZONA-CALIFORNIA CITRUS INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
409.1  Availability of Arizona-California Citrus crop insurance.
409.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
409.3  OMB control numbers.
409.4  Creditors.
409.5  Good faith reliance on misrepresentation.
409.6  The contract.
409.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.


[[Page 193]]


    Source: 50 FR 43662, Oct. 29, 1985, unless otherwise noted.



       Subpart--Regulations for the 1987 and Succeeding Crop Years



Sec. 409.1  Availability of Arizona-California Citrus crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
citrus in counties within limits prescribed by and in accordance with 
the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 409.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for Arizona-California citrus which will be included in the 
actuarial table on file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance per acre from among those amounts 
shown on the actuarial table for the crop year.



Sec. 409.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 409.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 409.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the Arizona-California Citrus 
insurance contract, whenever: (a) An insured under a contract of crop 
insurance entered into under these regulations, as a result of a 
misrepresentation or other erroneous action or advice by an agent or 
employee of the Corporation: (1) Is indebted to the Corporation for 
additional premiums; or (2) has suffered a loss to a crop which is not 
insured or for which the insured is not entitled to an indemnity because 
of failure to comply with the terms of the insurance contract, but which 
the insured believed to be insured, or believed the terms of the 
insurance contract to have been complied with or waived; and (b) the 
Board of Directors of the Corporation, or the Manager in cases involving 
not more than $100,000.00 finds that: (1) An agent or employee of the 
Corporation did in fact make such misrepresentation or take other 
erroneous action or give erroneous advice; (2) said insured relied 
thereon in good faith; and (3) to require the payment of the additional 
premiums or to deny such insured's entitlement to the indemnity would 
not be fair and equitable, such insured shall be granted relief the same 
as if otherwise entitled thereto. Requests for relief under this section 
must be submitted to the Corporation in writing.



Sec. 409.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the citrus crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 409.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the citrus crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the

[[Page 194]]

insurance risk is excessive, and also, for the same reason, may reject 
any individual application. The Manager of the Corporation is authorized 
in any crop year to extend the closing date for submitting applications 
in any county, by placing the extended date on file in the applicable 
service offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1987 and succeeding crop years, a contract in the form provided for 
under this subpart will come into effect as a continuation of a citrus 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1987 and succeeding crop years is found 
at Subpart D of Part 400-General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Arizona-California Citrus Insurance Policy 
for the 1987 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

            Arizona--California Citrus Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches; or
    (7) Direct Mediterranean Fruit Fly damage;

unless those causes are expected, excluded, or limited by the actuarial 
table or section 9f(7).
    b. We will not insure against any loss of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the grove;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good citrus grove practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow good citrus irrigation practices;
    (6) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (7) Any cause not specified in section 1a as an insured loss;

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the following citrus types, which 
are grown on insured acreage and for which a guarantee and premium rate 
are provided by the actuarial table, which you elect:
    Type I--Navel oranges;
    Type II--Sweet oranges;
    Type III--Valencia oranges;
    Type IV--Grapefruit;
    Type V--Lemons;
    Type VI--Kinnow mandarins;
    Type VII--Minneola tangelos; or
    Type VIII--Orlando tangelos;
    b. The acreage insured for each crop year will be that acreage of 
citrus located on insurable acreage as designated by the actuarial table 
and in which you have a share, as reported by you or as determined by 
us, whichever we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured citrus on the date insurance attaches.
    d. We do not insure any acreage:
    (1) Which is not irrigated;
    (2) On which the trees have not reached the sixth growing season 
after being set out; and
    (3) Which does not have acceptable records of production, unless 
inspected by us and considered acceptable and we agree, in writing, to 
insure such acreage.
    e. Insurance will not attach or be considered to have attached to 
any acreage of the crop, for the crop year the application is filed 
until the acreage has been inspected and accepted by us.

[[Page 195]]

    f. Insurance may attach only by written agreement with us on any 
acreage with less than 90 percent of a stand, based on the original 
planting pattern.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

       3. Report of Acreage, Share, Number of Trees, and Practice

    You must report on our form:
    a. All the acreage of citrus in the county in which you have a 
share;
    b. The practice;
    c. Your share on the date insurance attaches; and
    d. The number of bearing trees.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any citrus grown in the 
county. This report must be submitted annually on or before January 10. 
All indemnities may be determined on the basis of information you submit 
on this report. If you do not submit this report by January 10, we may 
elect to determine by unit the insured acreage, share, and practice or 
we may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insurance 
acreage, times your share at the time insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1985 crop year 
under the terms of the experience table contained in the citrus policy 
in effect for the 1986 crop year, you will continue to receive the 
benefit of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1986 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    a. Insurance attaches on December 1 prior to the calendar year of 
normal bloom, and ends at the earliest of:
    (1) Total destruction of the citrus;
    (2) Harvest of the citrus;
    (3) Final adjustment of a loss; or
    (4) The date following the year in which the bloom is normally set 
as follows:
    (a) August 31 for Navel oranges and Southern California lemons;
    (b) November 30 for Valencia oranges; or
    (c) July 31 for all other types of citrus.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us prompt written notice.
    (a) After insured damage to the citrus becomes apparent, giving the 
dates and causes of such damage; or
    (b) If you decide not to further care for or harvest any part of it.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given. If harvest will

[[Page 196]]

begin after the end of the insurance period, notice must be given on or 
before the calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the citrus which is not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the citrus on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of citrus on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of citrus to be 
counted (see section 9f);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. If a determination is made that frost protection equipment was 
not properly utilized or not properly reported, the indemnity for the 
unit will be reduced by the percentage of premium reduction allowed for 
frost protection equipment. You must, at our request, provide us records 
showing the start-stop times by date for each period the equipment was 
used.
    f. The total production (cartons) to be counted for each unit will 
include all harvested production marketed as fresh packed fruit and all 
appraised production determined to be marketable as fresh packed fruit.
    (1) Any production will be considered marketed or marketable as 
fresh packed fruit unless, due to insurable causes, such production was 
not marketed or marketable as fresh packed fruit.
    (2) In the absence of acceptable records to determine the 
disposition of harvested citrus, we may determine such disposition and 
the amount of such production to be counted for the unit.
    (3) Appraised production to be counted will include:
    (a) Unharvested production, and potential production lost due to 
uninsured causes and failure to follow recognized good citrus grove 
practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent.
    (4) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before harvest of the insured citrus type becomes 
general in the county and reappraised by us;
    (b) Harvested; or
    (c) Further damaged by an insured cause and reappraised by us.
    (5) Citrus which cannot be marketed due to insurable causes will not 
be considered production.
    (6) The amount of production of any unharvested citrus may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (7) If you elect to exclude hail and fire as insured causes of loss 
and the citrus is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    g. You must not abandon any acreage to us.
    h. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or

[[Page 197]]

about January 1 and July 1. The interest rate to be paid on any 
indemnity will vary with the rate announced by the Secretary of the 
Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the date insurance attaches for any crop year, any 
indemnity will be paid to the person determined to be beneficially 
entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Grove

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all citrus 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the grove for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are November 30.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

[[Page 198]]

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 31 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of Arizona-California citrus crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
citrus insurance in the county.
    b. Carton as to each insured citrus type means the standard 
container for marketing fresh packed fruit as shown below by citrus 
type. In the absence of marketing records on such a carton basis, 
production will be converted to cartons on the basis of the following 
average net pounds of packed fruit in a standard packed carton.

------------------------------------------------------------------------
            Container size                  Types of fruit        Pounds
------------------------------------------------------------------------
Container #58........................  Navel oranges, Valencia        38
                                        oranges & Sweet oranges.        
Container #58........................  Lemons..................       40
Container #59........................  Grapefruit..............       32
Container #63........................  Tangerines (including          25
                                        Tangelos) and Mandarin          
                                        oranges.                        
------------------------------------------------------------------------

    c. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will be considered contiguous.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches to the citrus crop and extending through normal harvest time, 
and will be designated by the calendar year following the year in which 
the bloom is normally set.
    f. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the citrus on the unit which causes such citrus to be 
unmarketable and will not include unmarketability of such citrus as a 
direct result of a quarantine, boycott, or refusal to accept the citrus 
by any entity without regard to actual physical damage to such citrus.
    g. Harvest means the severance of mature citrus from the tree either 
by pulling, picking, or severing by mechanical or chemical means, or 
picking up the marketable fruit from the ground.
    h. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    i. Insured means the person who submitted the application accepted 
by us.
    j. Loss ratio means the ratio of indemnity to premium.
    k. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    l. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    m. Tenant means a person who rents land from another person for a 
share of the citrus or a share of the proceeds therefrom.
    n. Unit means all insurable acreage in the county of any one of the 
citrus types referred to in section 2 of this policy, located on 
contiguous land on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the citrus on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

[[Page 199]]

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43662, Oct. 29, 1985, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 54 FR 38962, 
Sept. 22, 1989; 55 FR 35888, Sept. 4, 1990]



PARTS 410-411  [RESERVED]






PART 412--PUBLIC INFORMATION--Table of Contents




                         Freedom of Information

Sec.
412.1  General statement.
412.2  Public inspection and copying.
412.3  Index.
412.4  Requests for records.
412.5  Appeals.
412.6  OMB control numbers.

    Authority: 5 U S.C. 301, 552; 7 CFR 1.1-1.16; 7 U.S.C 1516(b).

    Source: 51 FR 35204, Oct. 2, 1986, unless otherwise noted.

                         Freedom of Information



Sec. 412.1  General statement.

    This part is issued in accordance with the regulations of the 
Secretary of Agriculture at 7 CFR 1.1-1.16, and Appendix A, implementing 
the Freedom of Information Act (5 U.S.C. 552). The Secretary's 
regulations, as implemented by the regulations in this part, govern 
availability of records of the Federal Crop Insurance Corporation (FCIC) 
to the public.



Sec. 412.2  Public inspection and copying.

    5 U.S.C. 552(a)(2) requires that certain materials be made available 
for public inspection and copying. Members of the public may request 
access to such materials maintained by the FCIC at the Office of the 
Manager, Federal Crop Insurance Corporation, Room 4096, South 
Agriculture Building, U.S Department of Agriculture, Washington, DC, 
20250, from 8:15 a.m. to 4:45 p.m., Monday through Friday, or at the 
office of any FCIC Field Operations Office Director during the regular 
operating hours of that office. To obtain the addresses of Field 
Operations Offices, either call or write the Deputy Manager, FCIC, Room 
4096, South Agriculture Building, U.S. Department of Agriculture, 
Washington, DC 20250, telephone (202) 447-6795. When the information 
desired is not available at a given FCIC location, the FCIC office where 
the request is received will assist the requester by directing the 
request to another FCIC office where the information may be obtained. 
The requester will be informed that the request has been forwarded to 
the appropriate FCIC office. Except for such information as is generally 
available to the public, requests should be made in writing and 
submitted in accordance with 7 CFR 1.3 and 412.4 of this part.



Sec. 412.3  Index.

    5 U.S.C. 552(a)(2) requires that each agency publish, or otherwise 
make available, a current index of all materials available for public 
inspection and copying. The FCIC will maintain a current index providing 
identifying information for the public as to any material issued, 
adopted, or promulgated by the Corporation since July 4, 1967, and 
required by section 552(a)(2). Pursuant to the Freedom of Information 
Act provisions, FCIC has determined that in view of the small number of 
public requests for such index, publication of such an index would be 
unnecessary and impracticable. Copies of the index will be available 
upon request in person or by mail to the Records Management Officer, 
Federal Crop Insurance Corporation, Room 4606, South Agriculture 
Building, U.S. Department of Agriculture, Washington, DC 20250.



Sec. 412.4  Requests for records.

    The Deputy Manager, FCIC, located in Washington, DC, and all 
Directors of Field Operations Offices are authorized to receive requests 
for records submitted in accordance with 7 CFR 1.3(a), and to make 
determinations whether to grant or deny these requests, and

[[Page 200]]

other determinations in accordance with 7 CFR 1.4(c).



Sec. 412.5  Appeals.

    Any person whose request under Sec. 412.4 above is denied shall have 
the right to appeal such denial. This appeal shall be submitted in 
accordance with 7 CFR 1.3(e) and addressed to the Manager, Federal Crop 
Insurance Corporation, Room 4096, South Building, U.S. Department of 
Agriculture, Washington, DC 20250.



Sec. 412.6  OMB control numbers.

    OMB control numbers are contained in subpart H to part 400, title 7 
CFR.



PART 413 [RESERVED]






PART 414--FORAGE SEEDING CROP INSURANCE--Table of Contents




       Subpart--Regulations for the 1981 and Succeeding Crop Years

Sec.
414.1  Availability of forage seeding crop insurance.
414.2  Premium rates and amounts of insurance.
414.3  OMB control numbers.
414.4  Creditors.
414.5  Good faith reliance on misrepresentation.
414.6  The contract.
414.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 45 FR 49511, July 25, 1980, unless otherwise noted.



       Subpart--Regulations for the 1981 and Succeeding Crop Years



Sec. 414.1  Availability of forage seeding crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
Forage Seeding in counties within limits prescribed by, and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.

[50 FR 27928, July 9, 1985]



Sec. 414.2  Premium rates and amounts of insurance.

    (a) The Manager shall establish premium rates and amounts of 
insurance for forage seeding which shall be shown on the county 
actuarial table on file in the office for the county and may be changed 
from year to year.
    (b) At the time the application for insurance is made, the applicant 
shall elect an amount of insurance from among those amounts shown on the 
actuarial table for the crop year.



Sec. 414.3  OMB control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 414) have been approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 
and have been assigned OMB control numbers 0563-0003 and 0563-0007.

[Amdt. No. 2, 49 FR 6335, Feb. 21, 1984]



Sec. 414.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, or an 
involuntary transfer shall not entitle the holder of the interest to any 
benefit under the contract except as provided in the policy.



Sec. 414.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the forage seeding insurance 
contract, whenever
    (a) An insured person under a contract of crop insurance entered 
into under these regulations, as a result of a misrepresentation or 
other erroneous action or advice by an agent or employee of the 
Corporation, (1) is indebted to the Corporation for additional premiums, 
or (2) has suffered a loss to a crop which is not insured or for which 
the insured person is not entitled to an indemnity because of failure to 
comply with the terms of the insurance contract, but which the insured 
person believed to be insured, or believed the terms of the insurance 
contract to have been complied with or waived, and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00 finds

[[Page 201]]

(1) that an agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice, (2) that said insured person relied thereon in good faith, and 
(3) that to require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured person shall be granted relief the same as if 
otherwise entitled thereto.

[45 FR 49511, July 25, 1980, as amended at 48 FR 48451, Oct. 19, 1983]



Sec. 414.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the Forage 
Seeding crop as provided in the policy. The contract shall consist of 
the application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service office.

[50 FR 27928, July 9, 1985]



Sec. 414.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's insurable 
share in the forage seeding crop as landlord, owner-operator, or tenant. 
The application shall be submitted to the Corporation at the office for 
the county on or before the applicable closing date on file in the 
office for the county.
    (b) The Corporation reserves the right to discontinue the acceptance 
of applications in any county upon its determination that the insurance 
risk involved is excessive, and also, for the same reason, to reject any 
individual application. The Manager of the Corporation is authorized in 
any crop year to extend the closing date for submitting applications or 
contract changes in any county, by placing the extended date on file in 
the office for the county and publishing a notice in the Federal 
Register upon the Manager's determination that no adverse selectivity 
will result during the period of such extension: Provided, however, That 
if adverse conditions should develop during such period, the Corporation 
will immediately discontinue the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1978 and succeeding crop years, a contract in the form provided for 
under this subpart will come into effect as a continuation of a forage 
seeding contract issued under such prior regulations, without the filing 
of a new application.
    (d) The application for 1984 and succeeding crop years is found at 
subpart D of part 400--General Administrative Regulations (7 CFR 400.37 
and 400.38), first published at 48 FR 1023, January 10, 1983, and may be 
amended from time to time for subsequent crop years. The provisions of 
the Forage Seeding Insurance Policy for the 1984 and succeeding crop 
years, are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                  Forage Seeding--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We shall provide the insurance described in 
this policy in return for the premium and your compliance with all 
applicable provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of or failure 
to establish a stand of forage resulting from any of the following 
causes occurring within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake; or
    (7) Volcanic eruption unless those causes are excepted, excluded, or 
limited by the actuarial table or section 9h.
    b. We shall not insure against any loss of production due to:

[[Page 202]]

    (1) The neglect or malfeasance of you, any member of your household, 
your tenants or employees;
    (2) The failure to follow recognized good forage seeding practices;
    (3) Damage resulting from the impoundment of water by any 
governmental, public or private dam or reservoir project; or
    (4) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured shall be forage seeded or reseeded (hereafter 
called the crop) to establish a stand of forage intended for harvest as 
livestock feed; which is seeded on insured acreage; and for which an 
amount of insurance and premium rate are provided by the actuarial 
table.
    b. The acreage insured for each crop year shall be acreage of the 
crop seeded on insurable acreage as designated by the actuarial table 
and in which you have a share, as reported by you or as determined by 
us, whichever we shall elect.
    c. The insured share shall be your share as landlord, owner-
operator, or tenant in the insured crop at the time of seeding.
    d. We do not insure any acreage:
    (1) Where the farming practices carried out are not in accordance 
with the farming practices for which the premium rates have been 
established;
    (2) Which is irrigated and an irrigated practice is not provided for 
in the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (3) Which is destroyed, it is practical to reseed to the crop, and 
such acreage was not reseeded;
    (4) Initially seeded after the final seeding date contained in the 
actuarial table;
    (5) Of volunteer forage;
    (6) Seeded to a type, variety or mixture not established as adapted 
to the area or excluded in the actuarial table;
    (7) Seeded with another crop (excluding nurse crops); or
    (8) Seeded for the development or production of hybrid seed or for 
experimental purposes.
    e. Where insurance is provided for an irrigated practice:
    (1) You shall report as irrigated only the acreage for which you 
have adequate facilities and water to carry out a good forage seeding 
irrigation practice at the time of seeding; and
    (2) Any loss of production caused by failure to carry out a good 
forage seeding irrigation practice, except failure of the water supply 
from an unavoidable cause occurring after the beginning of seeding, 
shall be considered as due to an uninsured cause. The failure or 
breakdown of irrigation equipment or facilities shall not be considered 
as a failure of the water supply from an unavoidable cause.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to seeding.

                     3. Report of Acreage and Share

    You shall report on our form:
    a. All the acreage of forage seeding and reseeding in the county in 
which you have a share; and
    b. Your share at the time of seeding or reseeding.

You shall designate separately any acreage that is not insurable. You 
shall report if you do not have a share in any forage seeding or 
reseeding in the county. This report shall be submitted annually on or 
before the reporting date established by the actuarial table. We may 
determine all indemnities on the basis of information you have submitted 
on this report. If you do not submit this report by the reporting date, 
we may elect to determine by unit the insured acreage and share or we 
may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

                         4. Amounts of Insurance

    a. The amounts of insurance will be contained in the actuarial 
table.
    b. You may change the amount of insurance on or before the closing 
date for submitting applications for the crop year as established by the 
actuarial table.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of seeding. 
The amount is computed by multiplying the amount of insurance times the 
premium rate, times the insured acreage, times you share at the time of 
seeding, times the applicable premium adjustment percentage contained in 
the following table.

[[Page 203]]



                                          Premium Adjustment Table \1\                                          
                       [Percent adjustments for favorable continuous insurance experience]                      
----------------------------------------------------------------------------------------------------------------
                                          Numbers of years continuous experience through previous year          
                               ---------------------------------------------------------------------------------
                                                                                                           15 or
                                 0    1    2    3    4    5    6    7    8    9    10   11   12   13   14   more
----------------------------------------------------------------------------------------------------------------
                                               Percentage adjustment factor for current crop year               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
    Loss ratio \2\ through                                                                                      
      previous crop year                                                                                        
                                                                                                                
.00 to .20....................  100   95   95   90   90   85   80   75   70   70   65   65   60   60   55     50
.21 to .40....................  100  100   95   95   90   90   90   85   80   80   75   75   70   70   65     60
.41 to .60....................  100  100   95   95   95   95   95   90   90   90   85   85   80   80   75     70
.61 to .80....................  100  100   95   95   95   95   95   95   90   90   90   90   85   85   85     80
.81 to 1.09...................  100  100  100  100  100  100  100  100  100  100  100  100  100  100  100    100
----------------------------------------------------------------------------------------------------------------


                           [Percent adjustments for unfavorable insurance experience]                           
----------------------------------------------------------------------------------------------------------------
                                                  Numbers of loss years through previous year \3\               
                                 -------------------------------------------------------------------------------
                                   0    1    2    3    4    5    6    7    8    9    10   11   12   13   14   15
----------------------------------------------------------------------------------------------------------------
                                                Percentage adjustment factor for current crop year              
                                                                                                                
----------------------------------------------------------------------------------------------------------------
 Loss ratio \2\ through previous                                                                                
            crop year                                                                                           
                                                                                                                
1.10 to 1.19....................  100  100  100  102  104  106  108  110  112  114  116  118  120  122  124  126
1.20 to 1.39....................  100  100  100  104  108  112  116  120  124  128  132  136  140  144  148  152
1.40 to 1.69....................  100  100  100  108  116  124  132  140  148  156  164  172  180  188  196  204
1.70 to 1.99....................  100  100  100  112  122  132  142  152  162  172  182  192  202  212  222  232
2.00 to 2.49....................  100  100  100  116  128  140  152  164  176  188  200  212  224  236  248  260
2.50 to 3.24....................  100  100  100  120  134  148  162  176  190  204  218  232  246  260  274  288
3.25 to 3.99....................  100  100  105  124  140  156  172  188  204  220  236  252  268  284  300  300
4.00 to 4.99....................  100  100  110  128  146  164  182  200  218  236  254  272  290  300  300  300
5.00 to 5.99....................  100  100  115  132  152  172  192  212  232  252  272  292  300  300  300  300
6.00 and up.....................  100  100  120  136  158  180  202  224  246  268  290  300  300  300  300  300
----------------------------------------------------------------------------------------------------------------
\1\ For premium adjustment purposes, only the years during which premiums were earned shall be considered.      
\2\ Loss Ratio means the ratio of indemnity(ies) paid to premium(s) earned.                                     
\3\ Only the most recent 15 crop years shall be used to determine the number of ``Loss Years''. (A crop year is 
  determined to be a ``Loss Year'' when the amount of indemnity for the year exceeds the premium for the year.) 

    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. Any premium adjustment applicable to the contract shall be 
transferred to:
    (1) The contract of your estate or surviving spouse if you die;
    (2) The contract of the person who succeeds you if such person had 
previously participated in the farming operation; or
    (3) Your contract if you stop farming in one county and start 
farming in another county.
    d. If participation is not continuous, any premium shall be computed 
on the basis of previous unfavorable insurance experience but no premium 
reduction under section 5a shall be applicable.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches at the time of seeding and ends at the earliest 
of:
    a. Total destruction of the crop;
    b. Harvest of the forage crop if not reseeded;
    c. Final adjustment of a loss;
    d. May 21 following the calendar year of seeding for spring-seeded 
forage; or
    e. October 15 following the calendar year of seeding for fall-seeded 
forage.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) During the period before harvest, the crop on any unit is 
damaged and you decide:
    (i) Not to further care for the crop; or

[[Page 204]]

    (ii) To reseed the acreage in the spring by the final seeding date 
for spring-seeded acreage;
    (b) You want our consent to put the acreage to another use. Insured 
acreage may not be put to another use until we have appraised the crop 
and given written consent. We shall not consent to another use until it 
is too late to reseed. You must notify us when such acreage is put to 
another use.
    (2) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 30 days after the earlier of:
    (a) Total destruction of the crop on the unit; or
    (b) The calendar date for the end of the insurance period.
    b. You must obtain our written consent before you destroy any of the 
crop which is not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit shall be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the crop on the unit; or
    (2) The calendar date for the end of the insurance period.
    b. We shall not pay any indemnity unless you:
    (1) Establish the acreage seeded on the unit and that any loss has 
been directly caused by one or more of the insured causes during the 
insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity shall be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance;
    (2) Subtracting therefrom the total amount obtained by multiplying 
the sum of the acres with an established stand plus 10 percent of the 
seeded acres for the unit times the amount of insurance; and
    (3) Multiplying this result by your share.
    d. If the information reported by you results in a lower premium 
than the actual premium determined to be due, the indemnity shall be 
reduced proportionately.
    e. The acres with an established stand shall include:
    (1) Acreage which has at least 75 percent of a normal stand;
    (2) Acreage abandoned or put to another use without our prior 
written consent;
    (3) Acreage damaged solely by an uninsured cause; or
    (4) Acreage which is harvested and not reseeded.
    f. The amount of indemnity on any spring-seeded acreage determined 
in accordance with section 9c shall be reduced 50 percent if the stand 
is less than 75 percent but more than 55 percent of a normal stand.
    g. A reseeding payment shall be made on any insured fall-seeded 
acreage with less than a 75 percent stand on which we have given written 
consent to reseed and which is reseeded in the next succeeding spring by 
the final spring seeding date. The amount of the reseeding payment shall 
be equal to 50 percent of the amount of indemnity determined in 
accordance with section 9c.
    h. When you have elected to exclude hail and fire as insured causes 
of loss and the crop is damaged by hail or fire, appraisals for 
uninsured causes shall be made in accordance with Form FCI-78, ``Request 
to Exclude Hail and Fire''.
    i. You shall not abandon any acreage to us.
    j. You may not bring suit or action against us unless you have 
complied with all policy provisions. If a claim is denied, you may sue 
us in the United States District Court under the provisions of 7 U.S.C. 
1508(c). You must bring suit within 12 months of the date notice of 
denial is mailed to and received by you.
    k. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fee, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date and submit to us the properly completed claim form 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semi-annually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury. Interest will be paid in 
accordance with this section beginning with all claims for payment of 
indemnity initially filed on or after March 1, 1985.
    l. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the seeding for any crop year, any indemnity shall be 
paid to the person(s) we determine to be beneficially entitled thereto.
    m. If you have other fire insurance and fire damage occurs during 
the insurance period,

[[Page 205]]

and you have not elected to exclude fire insurance from this policy, we 
will be liable for loss due to fire only for the smaller of:
    (1) The amount of idemnity determined pursuant to this contract 
without regard to any other insurance; or
    (2) The amount by which the loss from fire exceeds the indemnity 
paid or payable under such other insurance. For the purposes of this 
section, the amount of loss from fire shall be the difference between 
the fair market value of the production on the unit before the fire and 
after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract, and such voidance shall be effective as of the beginning of 
the crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee shall have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may only assign to another party your right to an indemnity for 
the crop year on our form and with our approval. The assignee shall have 
the right to submit the loss notices and forms required by the contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
rights. If we pay you for your loss then your right of recovery shall at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess shall be paid to you.

                     14. Records and Access to Farm

    You shall keep, for two years after the time of loss, records of the 
seeding on each unit including separate records showing the same 
information for seeding on any uninsured acreage. Any person designated 
by us shall have access to such records and the farm for purposes 
related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract shall be in effect for the crop year specified on 
the application and may not be canceled for such crop year. Thereafter, 
the contract shall continue in force for each succeeding crop year 
unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract shall terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity claim shall be the date you sign 
such claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture shall be the date such 
payment was approved.
    d. The cancellation and termination dates are:

------------------------------------------------------------------------
                                               Cancellation termination 
                   State                                 date           
------------------------------------------------------------------------
New Hampshire, New York, Pennsylvania,       July 31.                   
 Vermont.                                                               
All other states...........................  April 15.                  
------------------------------------------------------------------------

    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract shall terminate as of the date of death, judicial declaration, 
or dissolution. However, if such event occurs after insurance attaches 
for any crop year, the contract shall continue in force through the crop 
year and terminate at the end thereof. Death of a partner in a 
partnership shall dissolve the partnership unless the partnership 
agreement provides otherwise. If two or more persons having a joint 
interest are insured jointly, death of one of the persons shall dissolve 
the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your amount of insurance is no longer offered, the actuarial 
table will provide the amount of insurance which you are deemed to have 
elected. All contract changes will be available at your service office 
by December 31 for counties with an April 15 cancellation date (January 
20, 1986, for the 1985, 1986 transition) and by April 30 for all other 
counties.

[[Page 206]]

Acceptance of any change will be conclusively presumed in the absence of 
any notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of forage seeding crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amounts of insurance, premium rates, 
insurable and uninsurable acreage, and related information regarding 
forage seeding insurance in the county.
    b. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    c. Crop year means the period within which the seeding is or 
normally would become established and shall be designated by the 
calendar year in which the seeding is made for spring-seeded acreage and 
the next succeeding calendar year for fall-seeded acreage.
    d. Harvest means the severance of the forage plant from the land for 
the intended use as livestock feed.
    e. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    f. Insured means the person who submitted the application accepted 
by us.
    g. Person means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    h. Reseed means the mechanical incorporation of seed into the soil 
at not less than 50 percent of the original seeding rate.
    i. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    j. Tenant means a person who rents land from another person for a 
share of the crop or a share of the proceeds therefrom.
    k. Unit means all insurable acreage of either fall-seeded or spring-
seeded forage in the county on the date of seeding for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the crop on such land shall be considered as owned 
by the lessee. Land which would otherwise be one unit may be divided 
according to guidelines on file in your service office or by written 
agreement with. Units as herein defined will be determined when the 
acreage is reported. Errors in reporting such units may be corrected by 
us to conform to guidelines when adjusting a loss. We may consider any 
acreage and share thereof reported by or for your spouse or child or any 
member of your household to be your bona fide share or the bona fide 
share any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy shall be made by us. If 
you disagree with our determinations you may obtain reconsideration of 
or appeal those determinations in accordance with FCIC Appeal 
Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirements. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. The time of the notice will be determined at the time of our 
receipt of the written notice.

[45 FR 49511, July 25, 1980, as amended by Amdt. 2, 49 FR 6335, Feb. 21, 
1984; 50 FR 49027, Nov. 29, 1985; 50 FR 52758, Dec. 26, 1985; 51 FR 
7546, Mar. 5, 1986; 51 FR 29205, Aug. 15, 1986; 52 FR 3214, Feb. 3, 
1987; 55 FR 50814, Dec. 11, 1990]



PART 415--FORAGE PRODUCTION CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.

[[Page 207]]

415.1  Availability of forage production crop insurance.
415.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
415.3  OMB control numbers.
415.4  Creditors.
415.5  Good faith reliance on misrepresentation.
415.6  The contract.
415.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 50 FR 26341, June 26, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 415.1  Availability of forage production crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
forage production in counties within limits prescribed by, and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.

[50 FR 27928, July 9, 1985]



Sec. 415.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for forage production which will be included in the actuarial 
table on file in applicable service offices for the county and which may 
be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 415.3  OMB control numbers.

    OMB control numbers are contained in subpart H to part 400 in title 
7 CFR.



Sec. 415.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 415.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the forage production 
insurance contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation (1) is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto.

Application for relief under this section must be submitted to the 
Corporation in writing.



Sec. 415.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the forage 
production crop as provided in the policy. The contract shall consist of 
the application, the policy, and the county actuarial table.

[[Page 208]]

Any changes made in the contract shall not affect its continuity from 
year to year. The forms referred to in the contract are available at the 
applicable service office.

[50 FR 27928, July 9, 1985]



Sec. 415.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the forage production crop as landlord, owner-operator, or tenant. The 
application shall be submitted to the Corporation at the service office 
on or before the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the period of such extension. However, if adverse conditions should 
develop during such period, the Corporation will immediately discontinue 
the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a forage 
production contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Forage Production Insurance Policy for the 
1986 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                 Forage Production Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following losses occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption ; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(6).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good forage production farming 
practices;
    (3) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (4) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be forage which is planted for harvest as 
livestock feed, which is grown on insured acreage, and for which we 
provide a guarantee and premium rate in the actuarial table.
    b. The acreage insured for each crop year will be forage planted on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share will be your share as landlord, owner-operator, 
or tenant in the insured forage at the time insurance attaches.
    d. We do not insure any acreage:

[[Page 209]]

    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) Which is irrigated and an irrigated practice is not provided for 
by the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (3) If forage ground cover is less than 75 percent at the beginning 
of the insurance period;
    (4) If the current age of the forage stand exceeds the limitations 
established by the actuarial table unless otherwise approved in writing 
by us;
    (5) Planted to a type or variety or mixture not estabished as 
adapted to the area or excluded by the actuarial table;
    (6) Grown with another crop; or
    (7) Grown for experimental purposes.
    e. If insurance is provided for an irrigated practice:
    (1) You must report as irrigated only the acreage for which you have 
adequate facilities and water to carry out a good forage irrigation 
practice at the time insurance attaches; and
    (2) Any loss of production caused by failure to carry out a good 
irrigation practice, except failure of the water supply from an 
unavoidable cause occurring after insurance attaches, will be considered 
as due to an uninsured cause. The failure or breakdown of irrigation 
equipment or facilities will not be considered as a failure of the water 
supply from an unavoidable cause.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the time insurance attaches.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of insurable types of forage grown in the county 
in which you have a share;
    b. The practice; and
    c. Your share at the time insurance attaches.

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any forage grown in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the reporting date, we may elect to 
determine by unit the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you have not elected a coverage 
level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established in the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share at the time insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1948 crop year 
under the terms of the experience table contained in the forage 
production policy in effect for the 1985 crop year, you will continue to 
receive the benefit of that reduction subject to the following 
conditions:
    (1) No premium reduction will be retained after the 1991 crop year.
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

[[Page 210]]

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    a. Insurance attaches on acreage with an adequate stand:
    (1) For the calendar year following the year of seeding on:
    (a) February 1 for spring-seeded forage in California;
    (b) April 15 for spring-seeded forage in Colorado, Idaho, Nebraska, 
Nevada, Oregon, Utah, and Washington;
    (c) May 22 for spring-seeded forage in Iowa, Minnesota, Montana, New 
Hampshire, New York, North Dakota, Pennsylvania, Wisconsin, Wyoming and 
all other states;
    (d) October 16 for fall-seeded forage in all states except 
California; and
    (e) December 16 for fall-seeded forage in California.
    (2) For subsequent years on:
    (a) October 16 in all states except California; and
    (b) January 1 in California.
    b. Insurance ends at the earliest of:
    (1) Total destruction of the forage crop;
    (2) Removal from the windrow or the field;
    (3) Final adjustment of a loss; or
    (4) The following dates of the calendar year in which the majority 
of the forage is normally harvested:

(a) All states except California.............................October 15.
(b) California..............................................December 31.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss, you must give us written 
notice if:
    (1) During the period before harvest, the forage on any unit is 
damaged and you decide not to further care for or harvest any part of 
it;
    (2) You want our consent to put the acreage to another use; or
    (3) After consent to put acreage to another use is given, additional 
damage occurs.

Insured acreage may not be put to another use until we have appraised 
the forage and given written consent. You must notify us when such 
acreage is put to another use.
    b. If you are going to claim an indemnity on any unit, you must give 
us notice:
    (1) Of probable loss at least 15 days before the beginning of any 
cutting or immediately, if probable loss is later determined; and
    (2) At least 5 days before any feeding of the insured forage begins. 
The notice before feeding must include the number of acres harvested and 
tons produced from each unit.
    c. You must obtain written consent from us before you destroy any of 
the forage which is not to be harvested.
    d. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the forage on the unit;
    (2) Final harvest of the units; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of forage on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of forage to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported and not on the actual information determined. All production 
from insurable acreage, whether or not reported as insurable, will count 
against the production guarantee.
    e. The total production to be counted for a unit will include all 
harvested and appraised production.
    (1) Any production from volunteer plants growing in the forage will 
be counted as forage on a weight basis.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good forage farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (3) When forage is harvested as other than air-dry hay, the 
production to count will be adjusted to the equivalent of air-dry hay.

[[Page 211]]

    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of forage becomes general 
in the county;
    (b) Harvested; or
    (c) Further damaged by an insured cause before the acreage is put to 
another use.
    (5) We may determine the amount of production of any unharvested 
forage on the basis of field appraisals conducted after the normal time 
for each cutting for the area.
    (6) If you elect to exclude hail and fire as insured causes of loss 
and the forage is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    (7) The commingled production of units will be allocated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semi-annually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person(s) we determine to be beneficially entitled 
thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of:
    (1) The amount of indemnity determined pursuant to this contract 
without regard to any other insurance; or
    (2) The amount by which the loss from fire exceeds the indemnity 
paid or payable under such other insurance. For the purpose of this 
section, the amount of loss from fire will be the difference between the 
fair market value of the production on the unit before the fire and 
after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

            11. Transfer of Right Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
out option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for 2 years after the time of loss, records of the 
harvesting, storage, shipments, sale, or other disposition of all forage 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Any person 
designated by us will have access to such records and the farm for 
purposes related to the contract.

[[Page 212]]

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign such 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination date is:

------------------------------------------------------------------------
                                                   Cancellation and     
                   State                           termination date     
------------------------------------------------------------------------
All States.................................  Nov. 30.                   
------------------------------------------------------------------------

    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by August 15 preceding the cancellation 
date. Acceptance of any change will be conclusively presumed in the 
absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of forage production crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
forage production insurance in the county.
    b. Alfalfa means a pure stand of alfalfa or a stand of alfalfa and 
grass in which 60 percent or more of the ground cover is alfalfa.
    c. Alfalfa-grass mixture means a mixed stand of alfalfa and grass in 
which alfalfa comprises more than 25 percent but less than 60 percent of 
the ground cover.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    e. Crop year means the period from the date insurance attaches until 
harvest is normally completed and will be designated by the calendar 
year in which the majority of the forage is normally harvested.
    f. Cutting means the severance of the forage plant from the land for 
the purpose of livestock feed.
    g. Forage means Alfalfa, Alfalfa Grass-mixture or Grass-mixture.
    h. Grass-mixture means a mixed stand of locally recognized forage 
grasses and alfalfa in which alfalfa comprises less than 25 percent of 
the ground cover.
    i. Harvest means the removal from the windrow or field.
    j. Insurable acreage means the land classified as insurable by us 
and shown as such in the actuarial table.
    k. Insured means the person who submitted the application accepted 
by us.
    l. Loss ratio means the ratio of indemnity(ies) to premium(s).
    m. Person means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    n. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    o. Tenant means a person who rents land from another person for a 
share of the forage production or a share of the proceeds therefrom.
    p. Unit means all insurable acreage of forage in the county on the 
date insurance attaches:
    (1) In which you have a 100 percent share; or

[[Page 213]]

    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the forage on such land will be considered as 
owned by the lessee. Units will be determined when the acreage is 
reported. Errors in reporting such units may be corrected by us when 
adjusting a loss. We may consider any acreage and share thereof reported 
by or for your spouse or child or any member of your household to be 
your bona fide share or the bona fide share of any other person having 
an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

[50 FR 26341, June 26, 1985; 50 FR 32160, Aug. 9, 1985; 50 FR 49027, 
Nov. 27, 1985; 51 FR 29205--29207, Aug. 15, 1986; 51 FR 45296, Dec. 18, 
1986; 52 FR 3214, Feb. 3, 1987; 55 FR 40789, Oct. 5, 1990; 58 FR 33509, 
June 18, 1993]



PART 416--PEA CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
416.1  Availability of pea crop insurance.
416.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
416.3  OMB control numbers.
416.4  Creditors.
416.5  Good faith reliance on misrepresentation.
416.6  The contract.
416.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 50 FR 7729, Feb. 26, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 416.1  Availability of pea crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
pea crop in counties within limits prescribed by, and in accordance with 
the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.

[50 FR 27928, July 9, 1985] 



Sec. 416.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed. 

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for peas which will be included in the actuarial table on file 
in applicable service offices for the county and which may be changed 
from year to year. 
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 416.3  OMB control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 416) have been approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 
and have been assigned OMB Nos. 0563-0003 and 0563-0007. 



Sec. 416.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.

[[Page 214]]



Sec. 416.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the pea insurance contract, 
whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation (1) is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, find that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Application for relief 
under this section must be submitted to the Corporation in writing.



Sec. 416.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the pea crop as 
provided in the policy. The contract shall consist of the application, 
the policy, and the county actuarial table. Any changes made in the 
contract shall not affect its continuity from year to year. The forms 
referred to in the contract are available at the applicable service 
offices.

[50 FR 27928, July 9, 1985]



Sec. 416.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the pea crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the period of such extension. However, if adverse conditions should 
develop during such period, the Corporation will immediately discontinue 
the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a pea contract 
issued under such prior regulations, without the filing of a new 
application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Pea Insurance Policy for the 1986 and 
succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                       Pea--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.

[[Page 215]]

    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown in the accepted Application and ``we,'' ``us'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease on acreage not planted to peas the previous crop 
year;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting; unless those causes are 
expected, excluded, or limited by the actuarial table or section 9e(8).
    b. We will not insure against loss of production due to:
    (1) Green peas not being timely harvested unless such delay in 
harvesting is solely and directly due to adverse weather conditions, 
(specifically, no indemnity will be paid if the delay in harvesting is 
in any way caused by the non-availability of labor or equipment, by the 
volume of peas ready for harvest at approximately the same time, or by 
any other reason except adverse weather conditions);
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants or employees;
    (3) The failure to follow recognized good pea farming practices;
    (4) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (5) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be either green peas or day peas which are 
planted for harvest as peas, which are grown on insured acreage and for 
which a guarantee and premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be peas planted on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share will be your share as landlord, owner-operator, 
or tenant in the insured peas at the time of planting.
    d. We do not insure any acreage:
    (1) Of green peas not grown under a contract executed with a 
processor or excluded from the processor contract for, or during, the 
crop year (the contract must be executed and be effective before you 
report your acreage);
    (2) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (3) Which is irrigated and an irrigated practice is not provided by 
the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (4) Which is destroyed; it is practical to replant to the same type 
of green peas or the same varietal group of dry peas; and such acreage 
is not replanted;
    (5) Initially planted after the final planting date contained in the 
actuarial table;
    (6) Of volunteer peas;
    (7) Planted to a type or variety of peas not established as adapted 
to the area or excluded by the actuarial table;
    (8) Planted with a crop other than peas; or
    (9) Planted for the development or production of hybrid seed or for 
experimental purposes.
    e. If insurance is provided for an irrigated practice:
    (1) You must report as irrigated only the acreage for which you have 
adequate facilities and water to carry out a good irrigation practice 
for peas at the time of planting; and
    (2) Any loss of production caused by failure to carry out a good pea 
irrigation practice, except failure of the water supply from an 
unavoidable cause occurring after the beginning of planting, will be 
considered as due to an uninsured cause. The failure or breakdown of 
irrigation equipment or facilities will not be considered as a failure 
of the water supply from an unavoidable cause.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.
    g. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured peas are grown and which 
provides for delivery of the peas under certain conditions and at a 
stipulated price will, for the purpose of this contract, be treated as a 
contract under which you have the share in the peas.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of peas in the county in which you have a share;
    b. The practice; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any peas planted in the 
county. This report must be submitted

[[Page 216]]

annually on or before the reporting date established by the actuarial 
table. All indemnities may be determined on the basis of information you 
have submitted on this report. If you do not submit this report by the 
reporting date, we may elect to determine by unit the insured acreage, 
share, and practice or we may deny liability on any unit. Any report 
submitted by you may be revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you have not elected a coverage 
level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee, times 
the price election, times the premium rate, times the insured acreage, 
times your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience throughout the 1984 crop year 
under the terms of the Experience Table contained in the pea policy for 
the 1985 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the 1985 policy;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will be applicable, and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches when the peas are planted and ends at the 
earliest of:
    a. Total destruction of the peas;
    b. Combining, vining, or removal from the field;
    c. Final adjustment of a loss;
    d. For green peas, the date the green peas should have been 
harvested unless we give consent to harvest the green peas as dry peas; 
or
    e. September 15 of the calendar year in which peas are normally 
harvested.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us notice if:
    (a) During the period before harvest, the peas on any unit are 
damaged and you decide not to further care for or harvest any part of 
them;
    (b) During the period before harvest, the green peas on any unit are 
damaged and you want our consent to harvest the green peas as dry peas;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage occurs.
    Insured acreage may not be put to another use until we have 
appraised the peas and given written consent. We will not consent to 
another use until it is too late to replant. You must notify us when 
such acreage is put to another use.
    (2) If you anticipate a loss on any dry pea unit, you must give us 
notice:
    (a) At least 15 days before the beginning of harvest; or
    (b) Immediately, if probable loss is later determined on dry peas. A 
representative sample of the unharvested dry peas (at least 10 feet wide 
and the entire length of the field) must remain unharvested for a period 
of 15 days from the date of notice, unless we give you written consent 
to harvest the sample.
    (3) If you anticipate a loss on any green pea unit, you must give us 
notice:

[[Page 217]]

    (a) Not later than 15 days before the beginning of harvest; or
    (b) Not later than 48 hours after:
    (i) Total destruction of the green peas on the unit; or
    (ii) Discontinuance of harvest on the unit prior to completion.
    If such notice is not given or if the unharvested acreage is not 
left unharvested, the appraisal on such acreage will be the production 
guarantee.
    (4) Unless notice has been given under subsection (3) above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, we must be given notice not later 
than 30 days after the earlier of:
    (a) Harvest of the unit; or
    (b) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the peas which are not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peas on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of peas on the unit and that any 
loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of peas to be counted 
(see section 9e);
    (3) Multiplying the remainder by:
    (a) Dry peas--the price election; or
    (b) Green peas--the lower of
    (i) The applicable contract price per pound for the tenderometer or 
serve size contained in the actuarial table; or
    (ii) Your price election for such peas; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported and not on the actual information determined. All production 
from insurable acreage, whether or not reported as insurable will count 
against the production guarantee.
    e. The total production (pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) If, due to insurable causes, mature dry pea production does not 
grade No. 3 or better, or lentils do not grade No. 2 or better, in 
accordance with the Official United States Standards for dry peas and 
lentils, the production will be adjusted by:
    (a) Dividing the value per pound of such peas by the price per pound 
for the same variety of dry peas grading No. 3 (No. 2 for lentils); and
    (b) Multiplying the result by the number of pounds of such peas. The 
applicable price for No. 3 dry peas (No. 2 lentils) will be the local 
market price on the earlier of the day the loss is adjusted or the day 
the peas were sold.
    (2) The pounds of production for harvested green peas will be 
determined by dividing the dollar amount received from the processor by 
the contract price for the tenderometer reading or sieve size designated 
by the actuarial table.
    (3) If any acreage of green peas is not timely harvested, the 
production to count will be the greater of:
    (a) The appraised production with no adjustment for quality; or
    (b) The dollar amount received from the processor divided by the 
processor's contract price per pound for the tenderometer reading or 
sieve size designated by the actuarial table.
    (4) If any acreage reported as green peas is harvested as dry peas 
or we have given consent for the acreage to be harvested as dry peas, 
the guarantee for such acreage will be reduced 40 percent.
    (5) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good pea farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (6) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of peas becomes general in 
the county;
    (b) Harvested; or
    (c) Further damaged by an insured cause before the acreage is put to 
another use.
    (7) The amount of production of any unharvested peas may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.

[[Page 218]]

    (8) If you have elected to exclude hail and fire as insured causes 
of loss and the peas are damaged by hail or fire, appraisals will be 
made in accordance with Form FCI-78, ``Request to Exclude Hail and 
Fire''.
    (9) The commingled production of units will be allocated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    f. You must not abandon any acreage to us.
    g. You may not bring suit or action against us unless you have 
complied with all policy provisions. If a claim is denied, you may sue 
us in the United States District Court under the provisions of 7 U.S.C. 
1508(c). You must bring suit within 12 months of the date notice of 
denial is mailed to and received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fee, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date and submit to us the properly completed claim form 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semi-annually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury. Interest will be paid in 
accordance with this section beginning with all claims for payment of 
indemnity initially filed on or after March 1, 1985.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the peas are planted for any crop year, any indemnity 
will be paid to the person(s) we determine to be beneficially entitled 
thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount;
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. For the purposes of this section, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract, and such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all peas 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Any person 
designated by us will have access to such records and the farm for 
purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.

[[Page 219]]

    b. This contract may be canceled by either you or us for any crop 
year by giving written notice on or before the cancellation date 
preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity claim will be the date you sign 
the claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
payment and set-off are approved.
    d. The cancellation and termination dates are April 15.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by December 31 preceding the 
cancellation date (January 20, 1986, for the 1985, 1986 transition). 
Acceptance of any change will be conclusively presumed in the absence of 
any notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of pea crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding pea 
insurance in the county.
    b. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    c. Crop year means the period within which the peas are normally 
grown and is designated by the calendar year in which the peas are 
normally harvested.
    d. Combining (See ``Vining'')
    e. Harvest as to any green pea acreage means the vining or combining 
and acceptance by the processor of the peas from such acreage. 
``Harvest'' as to any dry pea acreage means combining peas which are or 
could be marketed as dry peas.
    f. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    g. Insured means the person who submitted the application accepted 
by us.
    h. Loss ratio means the ratio of indemnity(ies) to premium(s).
    i. Person means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    j. Peas mean either:
    (1) Canning and freezing peas (``green peas'') grown under contract 
with a processor executed before you report your acreage; or
    (2) All spring-planted smooth green and yellow, and wrinkled 
varieties of dry peas and lentils (``dry peas'').
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Tenant means a person who rents land from another person for a 
share of the peas or a share of the proceeds therefrom.
    m. Unit means all insurable acreage of any one type of green peas or 
varietal group of dry peas (see the actuarial table) in the county on 
the date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the peas on such land shall be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office or by written agreement with us. Units will be determined 
when the acreage is reported. Errors in reporting such units may be 
corrected by us to conform to applicable guidelines when adjusting a 
loss. We may consider any acreage and share thereof reported by or for 
your spouse or child or any member of your household to be your bona 
fide share of the bona fide share of any other person having an interest 
therein.
    n. Vining or combining means separating the peas from the pods.

[[Page 220]]

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 7729, Feb. 26, 1985, as amended at 50 FR 49027, Nov. 29, 1985; 
Amdt. 1, 50 FR 49921, Dec. 6, 1985; 50 FR 52758, Dec. 26, 1985; Amdt. 1, 
51 FR 7546, 7547, Mar. 5, 1986; 51 FR 29205--29207, Aug. 15, 1986; 51 FR 
45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 54 FR 20507, May 12, 
1989; 55 FR 35888, Sept. 4, 1990]



PARTS 417-421  [RESERVED]






PART 422--POTATO CROP INSURANCE REGULATIONS--Table of Contents




 Subpart--Regulations for the 1986 and Succeeding Crop Years (1987 and 
    Succeeding Crop Years in Certain California Counties and Florida)

Sec.
422.1  Availability of potato crop insurance.
422.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
422.3  OMB control numbers.
422.4  Creditors.
422.5  Good faith reliance on misrepresentation.
422.6  The contract.
422.7  The application and policy.
422.8  Certified seed potato option amendment.
422.9  Quality potato option.
422.10  Frost/freeze option.
422.11  Processing potato quality option.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 51 FR 5690, Feb. 18, 1986, unless otherwise noted.



 Subpart--Regulations for the 1986 and Succeeding Crop Years (1987 and 
    Succeeding Crop Years in Certain California Counties and Florida)



Sec. 422.1  Availability of potato crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
potatoes in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 422.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for potatoes which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 422.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 422.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.

[[Page 221]]



Sec. 422.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the potato insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 422.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the potato crop 
as provided in the policy. The contract shall consist of the 
application, the policy, the Certified Seed Potato Option Amendment, if 
applicable, the Quality Potato Option Amendment, if applicable, and the 
county actuarial table. Any changes made in the contract shall not 
affect its continuity from year to year. The forms referred to in the 
contract are available at the applicable service offices.



Sec. 422.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the potato crop as landlord, owner-operator, or tenant if the person 
wishes to participate in the program. The application shall be submitted 
to the Corporation at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period.

However, if adverse conditions should develop during the such period, 
the Corporation will immediately discontinue the acceptance of 
applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a potato 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Potato Crop Insurance Policy for the 1986 
and succeeding crop years (1987 and succeeding crop years in certain 
California counties and Florida) are as follows:

[[Page 222]]

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      Potato--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are expected, excluded, or limited by the actuarial table 
or section 9e(5).
    b. We will not insure against any loss of production due to:
    (1) Damage that occurs or becomes evident after the potatoes have 
been placed in storage;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good potato irrigation 
practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow recognized good potato farming practices;
    (6) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (7) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be potatoes planted for harvest as 
certified seed stock or for human consumption, grown on insured acreage, 
and for which a guarantee and premium rate are provided by the actuarial 
table.
    b. The acreage insured for each crop year will be potatoes planted 
on insurable acreage as designated by the actuarial table and in which 
you have a share, as reported by you or as determined by us, whichever 
we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured potatoes at the time of each planting period. 
However, only for the purpose of determining the amount of indemnity, 
your share will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) Planted with noncertified seed unless allowed by the actuarial 
table;
    (2) Which does not meet the rotation procedures required by the 
actuarial table;
    (3) Where the farming practices carried out are not in accordance 
with the farming practices for which the premium rates have been 
established;
    (4) Which is irrigated and an irrigated practice is not provided for 
by the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (5) Which is destroyed, it is practical to replant to potatoes, and 
such acreage is not replanted;
    (6) Initially planted after the final planting date set by the 
actuarial table unless you agree, in writing, on our form to coverage 
reduction;
    (7) Of volunteer potatoes;
    (8) Planted to a type or variety of potatoes not established as 
adapted to the area or excluded by the actuarial table;
    (9) Planted with a crop other than potatoes; or
    (10) Planted for the development or production of hybrid seed or for 
experimental purposes.
    e. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time of planting, to carry out a good 
potato irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

                3. Report of Acreage, Share, and Practice

    You must report at the time of each planting period on our form:
    a. All the acreage of fall, winter, spring, and summer-planted 
potatoes in the county in which you have a share;
    b. The practice; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any potatoes planted in the 
county. This report must be submitted for each planting period on or 
before the reporting date established by the actuarial table for each 
planting period. All indemnities may be determined on the basis of 
information you submit on this report. If you do not submit this report 
by the reporting

[[Page 223]]

date, we may elect to determine, by unit, for each planting period, the 
insured acreage, share, and practice or we may deny liability on any 
unit for any planting. Any report submitted by you may be revised only 
upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the sales closing date as established by the actuarial table for 
submitting applications for the crop year.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the experience table contained in the potato policy 
for the 1984 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year.
    (2) The premium reduction will not increase because of favorable 
experience.
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year.
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply.
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    a. Insurance attaches when the potatoes are planted (in Alabama, 
California and Florida insurance attaches when the potatoes are planted 
in each planting period).
    b. Insurance ends at the earliest of:
    (1) Total destruction of the potatoes on the unit;
    (2) Harvesting or removal from the field;
    (3) Final adjustment of a loss;
    (4) The following dates of the calendar year in which the potatoes 
are normally harvested:
    (a) Missouri and all Texas counties except Bailey, Castro, Dallam, 
Deaf Smith, Floyd, Gaines, Hale, Hartley, Knox, Lamb, and Parmer--July 
15;
    (b) North Carolina--July 25;
    (c) Virginia, and Knox County, Texas--August 15;
    (d) Alaska--October 1;
    (e) Nebraska and Wyoming--October 10;
    (f) Connecticut, Massachusetts, Nevada, New York and Pennsylvania--
October 31;
    (g) Idaho, Maine, Oregon, and Washington (Russett type only)--
October 31;
    (h) Idaho, Maine, Oregon, and Washington (all other types)--October 
15;
    (i) Alabama, California, and Florida, the dates established by the 
actuarial table for each planting period; and
    (j) Bailey, Castro, Dallam, Deaf Smith, Floyd, Gaines, Hale, 
Hartley, Lamb, and Parmer Counties, Texas, and all other states--October 
15.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) During the period before harvest, the potatoes on any unit are 
damaged and you decide not to further care for or harvest any part of 
them;
    (b) You want our consent to put the acreage to another use; or
    (c) After consent to put acreage to another use is given, additional 
damage occurs.
    Insured acreage may not be put to another use until we have 
appraised the potatoes and given written consent. We will not consent to 
another use until it is too late to replant for that planting period. 
You must notify us when such acreage has been put to another use.

[[Page 224]]

    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is determined within 15 days prior to or during 
harvest, immediate notice must be given and a representative sample of 
the unharvested potatoes (at least 10 feet wide and the entire length of 
the field) must remain unharvested for a period of 15 days from the date 
of notice, unless we give you written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, you must give us notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the potatoes on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. We must be given the opportunity to inspect any harvested 
production on any unit for which you have given notice of probable loss 
if such production will not be delivered directly to a processing plant.
    c. You must obtain written consent from us before you destroy any of 
the potatoes which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the potatoes on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of potatoes on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Substracting therefrom the total production of potatoes to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (in hundredweight) to be counted for a unit 
will include all harvested and appraised production.
    (1) The extent of any loss may be determined at the time the 
potatoes are placed in storage or delivered to a processor.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production loss due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Not less than the guarantee for any acreage from which the 
harvested production is disposed of without our prior written consent 
and such disposition prevents accurate determination of production; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent for another use will be considered production 
unless such acreage is:
    (a) Not put to another use before harvest of potatoes becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested potatoes may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (5) If you elect to exclude hail and fire as insured causes of loss 
and the potatoes are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. You must not abandon any acreage to us.
    g. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    h. An indemnity will not be paid unless all policy provisions are 
complied with.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to

[[Page 225]]

timely pay is not due to your failure to provide information or other 
material necessary for the computation or payment of the indemnity. The 
interest rate will be that established by the Secretary of the Treasury 
under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), 
and published in the Federal Register semiannually on or about January 1 
and July 1. The interest rate to be paid on any indemnity will vary with 
the rate announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared imcompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the potatoes are planted for any crop year, any 
indemnity will be paid to the persons determined to be beneficially 
entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment of Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our prescribed form and with our approval. The 
assignee will have the right to submit the loss notices and forms 
required by the contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expensse, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all 
potatoes produced on each unit, including separate records showing the 
same information for production from any uninsured acreage. Failure to 
keep and maintain such records may, at our option, result in 
cancellation of the contract prior to the crop year to which the records 
apply, assignment of production to units by us, or a determination that 
no indemnity is due. Any person designated by us will have access to 
such records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are:

[[Page 226]]



------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                           dates           
------------------------------------------------------------------------
Manatee, Hardee, Highlands, Okeechobee,     Sept. 30.                   
 and St. Lucie Counties, Florida, and all                               
 Florida counties lying south thereof.                                  
Contra Costa, San Joaquin, Calaveras, and   Nov. 30.                    
 Alpine Counties, California, and all                                   
 California counties lying south thereof,                               
 and all Texas counties except Bailey,                                  
 Castro, Dallam, Deaf Smith, Floyd,                                     
 Gaines, Hale, Hartley, Knox, Lamb, and                                 
 Parmer.                                                                
Alabama, Delaware, Maryland, Missouri, New  Dec. 31.                    
 Jersey, North Carolina, Virginia, and all                              
 other Florida counties.                                                
Knox County, Texas (effective beginning     Feb. 28.                    
 with the 1988 crop year).                                              
Bailey, Castro, Dallam, Deaf Smith, Floyd,  Apr. 15.                    
 Gaines, Hale, Hartley, Lamb, and Parmer                                
 counties, Texas, all other California                                  
 counties and all other states.                                         
------------------------------------------------------------------------

    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by:
    a. August 15 prior to the cancellation date for counties with a 
September 30 cancellation date;
    b. September 30 preceding the cancellation date for counties with a 
November 30 or December 31 cancellation date; or
    c. December 31 preceding the cancellation date for counties with an 
April 15 cancellation date.
    Acceptance of changes will be conclusively presumed in the absence 
of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of potato crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
potato insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. County means:
    (1) The county shown on the application;
    (2) Any additional land located in a local producing area bordering 
on the county, as shown by the actuarial table; and
    (3) Any land identified by the same ASCS farm serial number for the 
county but physically located in another county within the State.
    d. Crop year means the period within which the potatoes are normally 
grown and is designated by the calendar year in which the spring-planted 
potatoes are normally harvested.
    e. Harvest means the digging of potatoes on the unit.
    f. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    g. Insured means the person who submitted the application accepted 
by us.
    h. Loss ratio means the ratio of indemnity to premium.
    i. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    j. Planting period means potatoes planted within the dates set by 
the actuarial table, as fall-planted, winter-planted, spring-planted, or 
summer-planted
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Tenant means a person who rents land from another person for a 
share of the potatoes or a share of the proceeds therefrom.
    m. Unit means all insurable acreage of potatoes in the county on the 
date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owed by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the potatoes on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your

[[Page 227]]

spouse or child or any member of your household to be your bona fide 
share or the bona fide share of any other person having an interest 
therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 5690, Feb. 18, 1986, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 23425, 
June 22, 1987; 53 FR 6115, Mar. 1, 1988; 54 FR 20508, May 12, 1989; 54 
FR 43277, Oct. 24, 1989; 55 FR 35888, Sept. 4, 1990; 58 FR 33508, June 
18, 1993]



Sec. 422.8  Certified seed potato option amendment.

    (a) Notwithstanding the provisons of Sec. 422.7(d)(9)(e) of this 
part, an insured producer may, upon submission and approval of a 
Certified Seed Potato Option Amendment elect to insure all of the 
insurable acreage of potatoes grown for certified seed in which the 
insured has a share, under the provisions of the Certified Seed Potato 
Option Amendment. To be eligible for this amendment:
    (1) Insurance must be in effect under the provisions of the potato 
policy,
    (2) All potatoes grown for seed must be insured;
    (3) The insured must be a certified seed producer having acceptable 
production records; and
    (4) The management practices required for the production of 
certified seed potatoes as stated in the amendment must be met.
    The Certified Seed Potato Option Amendment shall be applicable only 
for one crop year. A new amendment must be submitted for each subsequent 
crop year.
    (b) For those insureds who elect to insure potatoes under this 
Amendment, all provisions of the Potato crop insurance policy shall 
apply except those in conflict with the amendment. The terms of the 
amendment are:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      Potato Crop Insurance Policy

                 Certified Seed Potato Option Amendment

Insured's Name _________________________________________________________
Address ________________________________________________________________
 ______________________________________________________________________
Contract No. ___________________________________________________________
Crop Year ______________________________________________________________
Identification No. _____________________________________________________
SSN ---- Tax ----_______________________________________________________

    When you submit this Amendment each crop year on or before the final 
date for accepting applications and we approve such amendment, your 
insurable acreage of potatoes grown for certified seed will be insured, 
if:
    1. You are currently insured under the potato insurance program;
    2. All potatoes which are grown for certified seed on insurable 
acreage are insured;
    3. You are a person whose potatoes have qualified for entry into the 
Certified Seed porgram for the previous 3 years, (After initial 
approval, you will be exempt from this requirement provided you have 
discontinued participation in the program for not more than one crop 
year out of any three consecutive crop years);
    4. You provide acceptable records of your certified seed potato 
acreage and production for at least the previous 3 years;
    5. Potatoes for seed are not grown on the same land on which 
potatoes of the same variety as the seed potatoes have been grown more 
than 2 years out of the preceding 4 years;
    6. Elite or high-grade foundation seed potatoes or seed potatoes 
having a winter test reading of not more than 3 percent common virus are 
used in planting; and
    7. Your acreage insured for certified seed production is managed in 
accordance with standard practices and procedures required

[[Page 228]]

for certification as prescribed by the certifying agency and applicable 
state regulations regarding seed potato certification.
    Your production guarantee and premium rate will be provided by the 
actuarial table for certified seed potatoes. If, due to insurable causes 
occurring within the insurance period, potato production will not 
qualify as certified seed on any insured certified seed potato acreage 
within a unit, we will pay you one dollar ($1.00) per cwt., times your 
production guarantee for such acreage, times your share. Any production 
which will not qualify as certified seed because of your failure to 
carry out the standard practices and procedures required for 
certification will be considered lost due to uninsured causes.
    Insurable acreage grown under the provisions of this amendment may 
be designated as a separate unit.
    Any claim for indemnity on a unit must be submitted to us on our 
form no later than 10 working days after you receive your records from 
the certification agency.
    All provisions of the potato policy not in conflict with this 
amendment are applicable.
    This amendment is not continuous. A new amendment must be submitted 
each crop year to take advantage of the certified seed potato option.
    The insured estimates that the Certified Seed Potato Acreage for 
the____ crop year will be ____

Insured's Signature_____________________________________________________
Date____________________________________________________________________

Corporation Representative's
Signature and Code Number_______________________________________________
Date____________________________________________________________________

Field Actuarial Office
Approval________________________________________________________________
Date____________________________________________________________________

    Following is the Privacy Act Statement found on the reverse side of 
the Certified Seed Potato Option Amendment:

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)):
    The authority for requesting the information to be supplied on this 
form is the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et 
seq.), and the regulations for insuring potatoes under the Potato Crop 
Insurance Regulations (7 CFR part 422). The information requested is 
necessary for the Federal Crop Insurance Corporation (FCIC) to process 
the amendment to insure certified seed potatoes, determine the correct 
premium and indemnity, and to determine the correct parties to the 
insurance contract. The information may be furnished to FCIC contract 
agencies and contract loss adjusters, reinsured companies, other U.S. 
Department of Agriculture agencies, Internal Revenue Service, Department 
of Justice, other State and Federal law enforcement agencies if 
litigation becomes necessary, a court in response to its orders, an 
administrative tribunal, or opposing counsel as evidence in the course 
of litigation.
    Furnishing the Social Security Number is voluntary and no adverse 
action will result from failure to do so. Furnishing the information, 
other than the Social Security Number, is also voluntary; however, 
failure to furnish the correct, complete information requested, except 
the Social Security Number, may result in rejection of the amendment for 
insuring certified seed potatoes, and/or subsequent denial of any claim 
for indemnity which may be filed under such amendment or may 
substantially delay acceptance of the Certified Seed Potato Option 
Amendment, and any subsequent claim for indemnity.



Sec. 422.9  Quality potato option.

    (a) Notwithstanding the provisions of subsection Sec. 422.7(d)9.e. 
of this part, an insured producer may, upon submission to the 
Corporation or a reinsured company and subsequent approval of a Quality 
Potato Option (Option), elect to insure all insurable acreage of 
potatoes under this option. The Option is continuous and will remain in 
effect until the underlying potato insurance policy (basic policy) is 
cancelled or terminated in accordance with the basic policy's terms, or 
until the Option is cancelled or terminated by the insured or the 
Corporation in the same manner as the basic policy may be cancelled or 
terminated.
    (b) For those who elect to insure potatoes under this Option, all 
provisions of the basic policy will apply except those in conflict with 
this Option. The terms of the Option are:

                 UNITED STATES DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

           Potato Crop Insurance Policy, Quality Potato Option

(This is a continuous Option. Refer to section 15 of the Potato Crop 
Insurance Policy)

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
TAX_____________________________________________________________________


[[Page 229]]

________________________________________________________________________
    1. You must have a Federal Crop Insurance Potato Policy (basic 
policy) in force. This Quality Potato Option (Option) provides 
guaranteed production on a hundredweight (cwt.) basis only.
    2. This Option must be submitted to us on or before the sales 
closing date for the initial crop year in which you wish to insure your 
potatoes under this Option.
    3. If you elect this Option, all acreage of potatoes insured under 
the basic policy must be insured under this Option except for any 
acreage:
    a. Specifically excluded by the Actuarial Table;
    b. Grown for seed if you elect to exclude the acreage from coverage; 
or;
    c. Insured under the Processing Potato Quality Option.
    4. Production to count determined under subsection 9.e. of the basic 
policy will be further modified as follows:
    a. Production to count, unharvested appraised production, production 
stored after an acceptable inspection, and marketed production 
containing potatoes that grade less than U.S. No. 2 \1\ will be 
determined by dividing the actual percentage of potatoes grading U.S. 
No. 2 \1\ or better by the percentage factor, and multiplying the 
result, not to exceed 1.000, by the number of weight (cwt.) of such 
potatoes; or
---------------------------------------------------------------------------

    \1\ The actuarial table may provide for U.S. No. 1 in place of U.S. 
No. 2.
---------------------------------------------------------------------------

    b. Production to count of potatoes stored without an acceptable 
inspection will be 100 percent of the gross cwt. of such potatoes.
    5. If you have a Frost/Freeze Potato Option and this Option in 
effect on the same production, the production to count will be based on 
the Option which results in the least production to count.
    6. All sampling and grade determinations must be made by a potato 
grader licensed or certified by the applicable State or United States 
Department of Agriculture. However, if such a grader is not available to 
sample or grade the potatoes, the sampling or grading for the purposes 
of this Option will be performed by us.
    7. Your premium rate for this Option will be contained in the 
Actuarial Table.
    8. ``Acceptable Inspection'' means that prior to storage the 
potatoes are evaluated by us and grade determinations are made in 
accordance with section 6 of this Option.
    9. ``Percentage factor'' means the historical average percentage of 
potatoes grading U.S. No. 2 \1\ or better, by type, determined from your 
records as established by us. If at least four continous years of 
records are available, the percentage factor will be the simple average 
of the available records not to exceed 10 years. If less than four years 
of records are available, the percentage factor will be the one 
contained in the actuarial table. The Actuarial Table may provide 
different percentage factors by type.
Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's Signature and Code Number__________________
--_____________________________________________________________________
Date____________________________________________________________________

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)). The authority for requesting information to 
be supplied on this form is the Federal Corp Insurance Act, as amended 
(7 U.S.C. 1501 et seq.), or any of the crop insurance regulations 
contained in 7 CFR part 400 et seq.
    The information requested is necessry for the Federal Crop Insurance 
Corporation (FCIC) to process this form to provide insurance, determine 
eligibility, determine the correct parties to the agreement or contract, 
collect premiums, pay indemnities, or other purposes. Furnishing the 
Social Security number is voluntary and no adverse action will result 
from failure to do so.
    Furnishing the information required by this form, other than the 
Social Security number, is also voluntary; however, failure to furnish 
the correct, complete information requested may result in rejection of 
this form, rejection of any claim for indemnity, or the ineligibility of 
any applicant for insurance, Failure to provide certain requested 
information may result in appropriate action being taken, including suit 
against the policyholder/debtor to recover an indebtedness. The 
information contained in this form will be used by Federal Agency 
Officers and FCIC employees who have a need for such information in the 
performance of their duties.
    The information may be furnished to FCIC contract agencies and 
contract loss adjusters, reinsured companies, other U.S. Department of 
Agriculture agencies, Internal Revenue Service, Department of Justice, 
or other State and Federal law enforcement agencies if litigation 
becomes necessary, credit reporting agencies and U.S. Government 
contract collection agencies, and in response to orders of a court, 
magistrate, administrative tribunal or opposing counsel as evidence in 
the course of discovery in litigation.


[54 FR 3417, Jan. 24, 1989]



Sec. 422.10  Frost/freeze option.

    (a) Notwithstanding the provisions of Sec. 422.7(d)9.e. of this 
part, an insured producer may, upon submission to the Corporation or a 
reinsured company and subsequent approval of a Frost- 

[[Page 230]]

Freeze Potato Option (Option), elect to insure all insurable acreage of 
potatoes under this Option. The Option is continuous and will remain in 
effect until the underlying potato insurance policy (basic policy) is 
cancelled or terminated in accordance with the basic policy's terms, or 
until the Option is cancelled or terminated by the insured or the 
Corporation in the same manner as the basic policy may be cancelled or 
terminated.
    (b) For those who elect to insure potatoes under this Option, all 
provisions of the basic policy will apply except those in conflict with 
this Option. The terms of the Option are:

                 UNITED STATES DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

        Potato Crop Insurance Policy, Frost/Freeze Potato Option

(This is a continuous Option. Refer to section 15 of the Potato Crop 
Insurance Policy)

Insured's Name__________________________________________________________
Contract No.____________________________________________________________
Address_________________________________________________________________
Crop Year_______________________________________________________________
Identification No.______________________________________________________
SSN_____________________________________________________________________
TAX_____________________________________________________________________
    1. You must have a Federal Crop Insurance Potato Policy (basic 
policy) in force. This Frost-Freeze Potato Option (Option) provides 
guaranteed protection on a hundredweight (cwt.) basis only.
    2. This Option must be submitted to us on or before the sales 
closing date for the initial crop year in which you wish to insure your 
potatoes under this Option.
    3. If you elect this Option, all acreage of potatoes insured under 
the basic policy must be insured under this Option.
    4. If the actuarial table provides a date after which loss of 
production due to frost or freeze damage is not insurable, this Option 
will provide coverage only with such date.
    5. Production to count for a unit damaged by frost or freeze will be 
determined by applying the percentage obtained from the following table 
to the production to count determined under the basic policy:

------------------------------------------------------------------------
                                                           Percent of   
        Percent damage due to frost or freeze            production to  
                                                             count      
------------------------------------------------------------------------
0-5..................................................                100
6....................................................                 90
7....................................................                 80
8....................................................                 70
9....................................................                 60
10...................................................                 50
11...................................................                 45
12...................................................                 40
13...................................................                 35
14...................................................                 30
15...................................................                 25
16...................................................                 20
17...................................................                 15
18...................................................                 10
19...................................................                  5
20...................................................                  0
------------------------------------------------------------------------

    The adjusted production to count will then be counted against your 
production guarantee to determine the amount of loss. We must inspect 
the production prior to harvest to determine the amount of frost or 
freeze damage.
    If the frost or freeze damage is determined to be 20 percent or more 
at the time of harvest, you may with our written permission, destroy the 
crop, (it will be considered a total loss) and you will be indemnified 
accordingly. You may also elect to market or store the crop and apply 
the total harvested production minus the frost or freeze damaged 
potatoes against the guarantee. This decision must be made by you on the 
day the potatoes are determined to be 20 percent or more frost or freeze 
damaged.
    6. If you have the Potato Quality Option or the Processing Potato 
Quality Option and this Option in effect, the production to count will 
be based on the Option which results in the least production to count.
    7. Your premium rate for this Option will be established by the 
actuarial table.

Insured's Signature_____________________________________________________
Date____________________________________________________________________
Corporation Representative's Signature and Code Number__________________
--_____________________________________________________________________
Date____________________________________________________________________

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)). The authority for requesting information to 
be supplied on this form is the Federal Crop Insurance Act, as amended 
(7 U.S.C. 1501 et seq.), or any of the crop insurance regulations 
contained in 7 CFR part 400 et seq.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, collect premiums, pay indemnities, or other purposes. 
Furnishing the Social Security number is voluntary and no adverse action 
will result from failure to do so. Furnishing the information required 
by this form, other than the Social Security number, is also voluntary; 
however, failure to furnish the correct, complete information requested 
may

[[Page 231]]

result in rejection of this form, rejection of any claim for indemnity, 
or the ineligibility of any applicant for insurance. Failure to provide 
certain requested information may result in appropriate action being 
taken, including suit against the policyholder/debtor to recover an 
indebtedness. The information contained in this form will be used by 
Federal Agency Officers and FCIC employees who have a need for such 
information in the performance of their duties.
    The information may be furnished to FCIC contract agencies and 
contract loss adjusters, reinsured companies, other U.S. Department of 
Agriculture agencies, Internal Revenue Service, Department of Justice, 
or other State and Federal law enforcement agencies if litigation 
becomes necessary, credit reporting agencies and U.S. Government 
contract collection agencies, and in response to orders of a court, 
magistrate, administrative tribunal or opposing counsel as evidence in 
the course of discovery in litigation.

[54 FR 3418, Jan. 24, 1989]



Sec. 422.11  Processing potato quality option.

    (a) Notwithstanding the provisions of Sec. 422.7(d)9.e. of this 
part, an insured producer may, upon submission to the Corporation or a 
reinsured company and subsequent approval of a Processed Potato Quality 
Option (Option), elect to insure all insurable acreage of potatoes 
contracted with a processor under this option. The Option is continuous 
and will remain in effect until the underlying potato insurance policy 
(basic policy) is cancelled or terminated in accordance with the basic 
policy's terms, or until the Option is cancelled or terminated by the 
insured or the Corporation in the same manner as the basic policy may be 
cancelled or terminated.
    (b) For those who elect to insure potatoes under this Option, all 
provisions of the basic policy will apply except those in conflict with 
this Option. The terms of the Option are:

                 UNITED STATES DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

     Potato Crop Insurance Policy, Processing Potato Quality Option

(This is a continuous Option. Refer to section 15 of the Potato Crop 
Insurance Policy)

    1. You must have a Federal Crop Insurance Potato Policy (basic 
policy) in force. This Processing Potato Quality Option (Option) 
provides guaranteed production on a hundredweight (cwt.) basic only.
    2. This Option must be submitted to us on or before the sales 
closing date for the initial crop year in which you wish to insure your 
potatoes under this Option.
    3. A written contract must be executed with a processor for the 
potato types insured under this Option and a copy submitted to us on or 
before the acreage reporting date for potatoes. If you elect this 
Option, all insurable acreage of the types of potatoes under contract 
with a processor must be insured under this Option.
    4. This Option does not apply to potatoes damaged by frost or 
freeze.
    5. Production to count, determined in accordance with subsection 
9.e. of the policy, will be further modified as follows:
    a. Production to count of unharvested appraised potatoes, potatoes 
stored after an acceptable inspection, and potatoes marketed (unless the 
potatoes were marketed to a processor for human consumption) which grade 
less than U.S. No. 2 \2\:
---------------------------------------------------------------------------

    \2\The actuarial table may provide for U.S. No. 1 grade in place of 
U.S. No. 2.
---------------------------------------------------------------------------

    (1) For factors other than those listed in subsection (2) below, 
will be determined by dividing the percentage of potatoes grading U.S. 
No. 2 \2\ or better by the percentage factor, and multiplying the 
result, not to exceed 1.000, by the number of cwt. of such potatoes, or:
    (2) Due to internal defects, because of a specific gravity of less 
than 1.070, or have a fry color of No. 3 or darker due to either sugar 
exceeding 10% or sugar ends exceeding 19%, production will be:
    (i) Zero for unharvested appraised potatoes;
    (ii) Twenty five percent (25%) of the gross weight for potatoes 
stored after an acceptable inspection; or
    6. All grade determinations for the purposes of this Option will be 
made using the United States Standards for Grades of Potatoes for 
Processing.
    7. If you have the Frost/Freeze Potato Option and this Option in 
effect, the production to count will be based on the Option which 
results in the least production to count.
    8. All sampling and grade determinations must be made by a potato 
grader licensed or certified by the applicable State or United States 
Department of Agriculture. However, if such a grader is not available, 
sampling or grading for the purposes of this Option will be performed by 
us.
    9. Your premium rate for this Option will be established by the 
actuarial table.
    10. ``Acceptable Inspection'' means that prior to storage the 
potatoes are evaluated by us and grades determined in accordance with 
section 8 of this Option.

[[Page 232]]

    11. ``Percentage Factor'' means the historical average percentage of 
potatoes grading U.S. No. 2 \2\ or better, by type, determined from your 
records or established by us. If at least four continuous years of 
records are available, the percentage factor will be the simple average 
of the available records not to exceed 10 years. If less than four years 
of records are available, the percentage factor will be the one 
contained in the actuarial table. The Actuarial Table may provide 
different percentage factors by type.

Insured's Signature_____________________________________________________
DATE____________________________________________________________________
Corporation Representative's Signature and Code Number__________________
--_____________________________________________________________________
DATE____________________________________________________________________

            Collection of Information and Data (Privacy Act)

    The following statements are made in accordance with the Privacy Act 
of 1974 (5 U.S.C. 552(a)). The authority for requesting information to 
be supplied on this form is the Federal Crop Insurance Act, as amended 
(7 U.S.C. 1501 et seq.), or any of the crop insurance regulations 
contained in 7 CFR part 400 et seq.
    The information requested is necessary for the Federal Crop 
Insurance Corporation (FCIC) to process this form to provide insurance, 
determine eligibility, determine the correct parties to the agreement or 
contract, collect premiums, pay indemnities, or other purposes. 
Furnishing the Social Security number is voluntary and no adverse action 
will result from failure to do so. Furnishing the information required 
by this form, other than the Social Security number, is also voluntary; 
however, failure to furnish the correct, complete information requested 
may result in rejection of this form, rejection of any claim for 
indemnity, or the ineligibility of any applicant for insurance. Failure 
to provide certain requested information may result in appropriate 
action being taken, including suit against the policyholder/debtor to 
recover an indebtedness. The information contained in this form will be 
used by Federal Agency Officers and FCIC employees who have a need for 
such information in the performance of their duties.
    The information may be furnished to FCIC contract agencies and 
contract loss adjusters, reinsured companies, other U.S. Department of 
Agriculture agencies, Internal Revenue Service, Department of Justice, 
or other State and Federal law enforcement agencies if litigation 
becomes necessary, credit reporting agencies and U.S. Government 
contract collection agencies, and in response to orders of a court, 
magistrate, administrative tribunal or opposing counsel as evidence in 
the course of discovery in litigation.

[54 FR 3419, Jan. 24, 1989]



PARTS 423-424  [RESERVED]






PART 425--PEANUT CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1993 and Succeeding Crop Years

Sec.
425.1  Availability of peanut crop insurance.
425.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities will be computed.
425.3  OMB control numbers.
425.4  Creditors
425.5  Good faith reliance on misrepresentation.
425.6  The contract.
425.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 57 FR 52585, Nov. 4, 1992, unless otherwise noted.



Sec. 425.1  Availability of peanut crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
peanuts in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 425.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities will be computed.

    (a) The Manager will establish premium rates, production guarantees, 
coverage levels, and prices at which indemnities will be computed for 
peanuts which will be shown on the actuarial table on file in applicable 
service offices and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 425.3  OMB control numbers.

    Office of Management and Budget (OMB) control numbers are contained 
in subpart H to part 400 in title 7 CFR.

[[Page 233]]



Sec. 425.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 425.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the peanut insurance 
contract, whenever:
    (a) An insured person under a contract of crop insurance entered 
into under these regulations, as a result of a misrepresentation or 
other erroneous action or advice by an agent or employee of the 
Corporation:
    (1) Is indebted to the Corporation for additional premiums, or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured person is not entitled to an indemnity because of failure to 
comply with the terms of the insurance contract, but which the insured 
person believed to be insured, or believed the terms of the insurance 
contract to have been complied with or waived, and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured person relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured person shall be granted relief the same as if 
otherwise entitled thereto. Application for relief under this section 
must be submitted to the Corporation in writing.



Sec. 425.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract will cover the peanut crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 425.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the peanut crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the application service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the period of such extension. However, if adverse conditions should 
develop during such period, the Corporation will immediately discontinue 
the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1991 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a peanut 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1993 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Peanut Insurance Policy for the 1993 and 
succeeding crop years are as follows:

[[Page 234]]

 Department of Agriculture, Federal Crop Insurance Corporation, Peanut 
                          Crop Insurance Policy

(This is a continuous contract. Refer to Section 15.)

    Agreement to Insure: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us'' and ``our'' refer 
to the Federal Corp Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from any of the following causes occurring within the 
insurance period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or Sec. 9.f(7).

    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants or employees;
    (2) The failure to follow recognized good peanut farming practices;
    (3) Failure to market the peanuts unless such failure is due to 
actual physical damage from a cause specified in subsection 1.a;
    (4) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (5) Any cause not specified in section 1.a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be peanuts planted for the purpose of 
digging, maturing, and marketing as farmers' stock peanuts, which are 
grown on insured acreage and for which a guarantee and premium rate are 
provided by the actuarial table.
    b. The acreage insured for each crop year will be peanuts planted on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share will be your share as landlord, owner-operator, 
or tenant in the insured peanuts at the time of planting.
    d. We do not insure any acreage:
    (1) Not planted to a type of peanuts designated as insurable by the 
actuarial table;
    (2) On which the peanuts were destroyed for the purpose of 
conforming with any other program administered by the United States 
Department of Agriculture;
    (3) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (4) Which is irrigated and an irrigated practice is not provided for 
by the actuarial table unless you elect to insure the acreage as non-
irrigated by reporting it as insurable under section 3;
    (5) Which is destroyed, it is practical to replant to peanuts, and 
such acreage is not replanted;
    (6) Initially planted after the final planting date contained in the 
actuarial table, unless you agree in writing on our form to coverage 
reduction; or
    (7) Planted for experimental purposes.
    e. If insurance is provided for an irrigated practice:
    (1) You must report as irrigated only the acreage for which you have 
adequate facilities and water to carry out a good peanut irrigation 
practice at the time of planting; and
    (2) Any loss of production caused by failure to carry out a good 
peanut irrigation practice, except failure of the water supply from an 
unavoidable cause occurring after the beginning of planting, will be 
considered as due to an uninsured cause. The failure or breakdown of 
irrigation equipment or facilities will not be considered as a failure 
of the water supply from an unavoidable cause.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

        3. Report of Acreage, Share, Poundage Quota, and Practice

    You must report on our form:

    a. All the acreage of peanuts in the county in which you have a 
share;
    b. The practice;
    c. Your share at the time of planting; and
    d. The effective poundage marketing quota, if any, applicable to the 
unit for the current crop year as provided under ASCS Peanut Marketing 
Quota Regulations.

    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any peanuts planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you have submitted on this 
report. If you do not submit this report by the reporting date, we may 
elect to determine by unit the insured acreage, share, and practice or 
we may deny liability on any unit. Any

[[Page 235]]

report submitted by you may be revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are in the actuarial table.
    b. Coverage level 2 will apply if you have not elected a coverage 
level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount of premium is computed by multiplying the production 
guarantee for the unit (insured acreage times the applicable production 
guarantee), which may consist of quota and non-quota (additional) 
peanuts, times the applicable price election, times the premium rate, 
times your share at the time of planting, times any applicable premium 
adjustment percentage for which the insured may qualify as shown on the 
actuarial table.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the Experience Table contained in the peanut policy 
for the 1984 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1993 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the 1984 policy;
    (4) Once the loss ratio exceeds .80 no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from a replanting payment if the billing date has passed on 
the date you are paid the replanting payment, or from any loan or 
payment due you under any Act of Congress or program administered by the 
United States Department of Agriculture or its Agencies.

                           7. Insurance Period

    Insurance attaches when the peanuts are planted and ends at the 
earliest of:

    a. Total destruction of the peanuts;
    b. Threshing or removal from the field;
    c. Final adjustment of a loss; or
    d. The following dates immediately after planting:
    (1) Duval and La Salle Counties, Texas--November 30;
    (2) New Mexico, Oklahoma and all other Texas counties--December 31;
    (3) All other states--November 30.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (i) You want our consent to replant peanuts damaged due to any 
insured cause. (To qualify for a replanting payment, the acreage 
replanted must be at least the lesser of 10 acres or 10 percent of the 
insured acreage on the unit.);
    (ii) During the period before threshing, the peanuts on any unit are 
damaged and you decide not to further care for or thresh any part of 
them;
    (iii) You want our consent to put the acreage to another use; or
    (iv) After consent to put acreage to another use is given, 
additional damage occurs.

    Insured acreage may not be put to another use until we have 
appraised the peanuts and given written consent. We will not consent to 
another use until it is too late to replant. You must notify us when 
such acreage is replanted or put to another use.

    (2) You must give us notice at least 15 days before the beginning of 
harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given. A representative sample of the unharvested peanuts (at least 10 
feet wide and the entire length of the field) must remain unharvested 
for a period of 15 days from the date of notice, unless we give you 
written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 30 days after the earliest of:
    (i) Total destruction of the peanuts on the unit;
    (ii) The completion of harvest or otherwise disposing of the peanuts 
on the unit; or
    (iii) The calendar date for the end of the insurance period.
    b. You may not destroy or replant any of the peanuts on which a 
replanting payment will be claimed until we give consent.
    c. You must obtain written consent from us before you destroy any of 
the peanuts which are not to be harvested.

[[Page 236]]

    d. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peanuts on the unit;
    (2) Completion of harvest or otherwise disposing of the peanuts on 
the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of peanuts on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of peanuts to be 
counted (see section 9f);
    (3) Multiplying this remainder applicable to quota and/or non-quota 
(additional) production by the applicable price election; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported and not on the actual information determined. All production 
from insurable acreage, whether or not reported as insurable, will count 
against the production guarantee.
    e. The total production to count will be identified as quota and/or 
non-quota (additional) production by:
    (1) Counting all threshed and appraised production less than or 
equal to the unit's effective poundage quota as quota production unless 
the peanuts grade Segregation II or III and their inclusion as quota 
peanuts is waived by the producer; and
    (2) Counting any threshed and appraised production in excess of the 
unit's effective poundage quota as non-quota (additional) production.
    f. The total production to be counted for a unit will include all 
threshed and appraised production.
    (1) Threshed production will be the net weight in pounds shown on 
the United States Department of Agriculture ``Inspection Certificate and 
Sales Memorandum''.
    (2) Mature peanut production which is damaged due to insurable 
causes will be adjusted by:
    (i) Dividing the value per pound for the insured type of peanuts by 
the applicable average price per pound; FCIC will count production 
against the highest valued peanuts first (based on price election) and 
the lowest valued peanuts last. FCIC will use the maximum non-quota 
price election to quality adjust seg. II and seg. III non-quota peanuts; 
and
    (ii) Multiplying the result by the number of pounds of such 
production.
    (3) To enable us to determine the net weight and quality of 
production of any peanuts for which a United States Department of 
Agriculture ``Inspection Certificate and Sales Memorandum'' has not been 
issued, we must be given the opportunity to have such peanuts inspected 
and graded before you dispose of them. If you dispose of any production 
without giving us the opportunity to have the peanuts inspected and 
graded, the gross weight of such production will be used in determining 
total production to count unless you submit a marketing record 
satisfactory to us which clearly shows the net weight and quality of 
such peanuts.
    (4) Appraised production to be counted will include:
    (i) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good peanut farming practices;
    (ii) Not less than the guarantee for any acreage which is abandoned 
or put to another use (other than harvest) without our prior written 
consent or damaged solely by an uninsured cause; and
    (iii) Appraised production on all other unharvested acreage.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (i) Not put to another use before harvest of peanuts becomes general 
in the county;
    (ii) Harvested; or
    (iii) Further damaged by an insured cause before the acreage is put 
to another use.
    (6) The amount of production of any unharvested peanuts may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (7) If you have elected to exclude hail and fire as insured causes 
of loss and the peanuts are damaged by hail or fire, appraisals will be 
made in accordance with Form FCI-78, ``Request to Exclude Hail and 
Fire''.
    (8) The commingled production of units will be allocated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    g. A replanting payment may be made on any insured peanuts replanted 
after we have given consent and the acreage replanted is at least the 
lesser of 10 acres or 10 percent of the insured acreage for the unit.

[[Page 237]]

    (1) No replanting payment will be made on acreage:
    (i) On which our appraisal exceeds 90 percent of the guarantee;
    (ii) Initially planted prior to the date we determine reasonable; or
    (iii) On which a replanting payment has been made during the current 
crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting but will not exceed $80.00 per acre, multiplied by 
your share.

    If the information reported by you results in a lower premium than 
the actual premium determined to be due, the replanting payment will be 
reduced proportionately.

    h. You must not abandon any acreage to us.
    i. You may not bring suit or action against us unless you have 
complied with all policy provisions. If a claim is denied, you may sue 
us in the United States District Court under the provisions of 7 U.S.C. 
1508(c). You must bring suit within 12 months of the date notice of 
denial is mailed to and received by you.
    j. We will pay the loss within 30 days after we reach agreement with 
you on entry of a final judgment. In no instance will we be liable for 
interest or damages in connection with any claim for indemnity, whether 
we approve or disapprove such claim.
    k. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the peanuts are planted for any crop year, any indemnity 
will be paid to the person(s) we determine to be beneficially entitled 
thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of:
    (1) The amount of indemnity determined pursuant to this contract 
without regard to any other insurance; or
    (2) The amount by which the loss from fire exceeds the indemnity 
paid or payable under such other insurance.

    For the purposes of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract, and such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
rights. If we pay you for your loss then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all peanuts 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Any persons 
designated by us will have access to such records and the farm for 
purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will be canceled if you do not furnish satisfactory 
records of the previous year's production to us on or before the 
cancellation date. If the insured, prior to the cancellation date, 
shows, to our satisfaction, that records are unavailable due to 
conditions beyond the insured's control, such as fire, flood or other 
natural disaster, the Field Actuarial Office may assign a yield for

[[Page 238]]

that year. The assigned yield will not exceed the ten-year average.
    d. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and set off are approved.
    e. The cancellation and termination dates are:

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                          dates            
------------------------------------------------------------------------
Dual and La Salle Counties, Texas........  February 15.                 
New Mexico; Oklahoma; Brown, Baylor,       April 15.                    
 Callahan, Collingsworth, Commanche,                                    
 Dallam, Eastland, Erath, Gaines, Garza,                                
 Hood, Jones, Montague, Motley, Palo                                    
 Pinto, Parker, Somervell and Stonewall                                 
 Counties, Texas and Virginia.                                          
All other Texas counties and all other     March 31.                    
 states.                                                                
------------------------------------------------------------------------

    f. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    g. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any of the terms and provisions of the contract from 
year to year. If your price election at which indemnities are computed 
is no longer offered, the actuarial table will provide the price 
election which you are deemed to have elected. All contract changes will 
be available at your service office by December 31 preceding the 
cancellation date for counties with a April 15 cancellation date and by 
November 30 preceding the cancellation date for all other counties. 
Acceptance of any changes will be conclusively presumed in the absence 
of any notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of peanut crop insurance:

    a. Actuarial table--The forms and related material for the crop year 
approved by us which are available for public inspection in your service 
office, and which show the production guarantees, coverage levels, 
premium rates, prices for computing indemnities, practices, insurable 
and uninsurable acreage, and related information regarding peanut 
insurance in the county.
    b. ASCS--The Agricultural Stabilization and Conservation Service of 
the United States Department of Agriculture.
    c. Average price per pound--
    (1) The average Commodity Credit Corporation (CCC) price support per 
pound, by type, for Segregation I, Segregation II and III peanuts 
eligible to be valued as quota peanuts; or
    (2) The highest non-quota price election provided by us for all CCC 
non-quota (additional) Segregation II and III peanuts.
    d. Average price support per pound--The average price support level 
per pound by type for quota peanuts as announced by the United States 
Department of Agriculture under the peanut price support program.
    e. County--The county shown on the application and:
    (1) Any additional land located in a local producing area bordering 
on the county, as shown by the actuarial table; and
    (2) Any land identified by an ASCS farm serial number for the county 
but physically located in another county.
    f. Crop year--The period within which the peanuts are normally grown 
and will be designated by the calendar year in which the peanuts are 
normally harvested.
    g. Effective poundage marketing quota--The farm marketing quota as 
established and recorded by ASCS.
    h. Harvest--The completion of combining or threshing of peanuts.
    i. Insurable acreage--The land classified as insurable by us and 
shown as such by the actuarial table.
    j. Insured--The person who submitted the application accepted by us.
    k. Loss ratio--The ratio of indemnity to premium.
    l. Person--An individual, partnership, association, corporation, 
estate, trust, or other business enterprise or legal entity, and 
wherever applicable, a State, a political subdivision of a State, or any 
agency thereof.
    m. Replanting--Performing the cultural practices necessary to 
replant insured acreage to the same crop.
    n. Replant payment--That payment made to the insured in accordance 
with the provisions of section 9 of this policy which is subject to 
offset for premium owed.
    o. Service office--The office servicing your contract as shown on 
the application for insurance or such other approved office as may be 
selected by you or designated by us.

[[Page 239]]

    p. Tenant--A person who rents land from another person for a share 
of the peanuts or a share of the proceeds therefrom.
    q. Unit--All insurable acreage of peanuts in the county in which you 
have an insured share on the date of planting for the crop year and 
which is identified by a single ASCS farm serial number at the time 
insurance first attaches under this policy for the crop year. Units will 
be determined when the acreage is reported. We may reject or modify any 
ASCS reconstitution for the purpose of unit definition if the 
reconstitution was in whole or part to defeat the purpose of the Federal 
Crop Insurance Program or to gain disproportionate advantage under this 
policy. Errors in reporting units may be corrected by us when adjusting 
a loss.
    r. Value per pound--The ``value per pound including loose shell 
kernels'', as shown on the United States Department of Agriculture 
``Inspection Certificate and Sales Memorandum,'' except for Segregation 
II, III and non-quota (additional) peanuts for which the value per pound 
will be determined by us.
    s. Written agreement--An agreement in writing between you and us 
which is in accordance with FCIC policy.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

                         21. Written Agreements

    If provided for under the terms and conditions of the policy, 
written agreements between FCIC and the policyholder will be in 
accordance with the provisions of official procedures issued by FCIC.

[57 FR 52585, Nov. 4, 1992; 57 FR 56963, Dec. 2, 1992]



PARTS 426-429  [RESERVED]






PART 430--SUGAR BEET CROP INSURANCE REGULATIONS--Table of Contents




 Subpart--Regulations for the 1986 and Succeeding Crop Years (1987 and 
            Succeeding Crop Years in California and Arizona)

Sec.
430.1  Availability of sugar beet crop insurance.
430.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
430.3  OMB control numbers.
430.4  Creditors.
430.5  Good faith reliance on misrepresentation.
430.6  The contract.
430.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 51 FR 5150, Feb. 12, 1986, unless otherwise noted.



 Subpart--Regulations for the 1986 and Succeeding Crop Years (1987 and 
             Succeeding Crop Years in California and Arizona



Sec. 430.1  Availability of sugar beet crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
sugar beets in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.



Sec. 430.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for sugar beets which will be included in the actuarial table 
on file in the applicable service offices for the county and which may 
be changed from year to year.

[[Page 240]]

    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 430.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 430.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 430.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the sugar beet insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation: (1) Is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Requests for relief 
under this section must be submitted to the Corporation in writing.



Sec. 430.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the sugar beet 
crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 430.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the sugar beet crop as landlord, owner-operator, or tenant if the person 
wishes to participate in the program. The application shall be submitted 
to the Corporation at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a sugar beet

[[Page 241]]

contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Sugar Beet Crop Insurance Policy for the 
1986 and succeeding crop years (1987 and succeeding crop years in 
California and Arizona) are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                    Sugar Beet Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting; unless 
those causes are excepted, excluded, or limited by the actuarial table 
or section 9e(7).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (2) The failure or breakdown of irrigation equipment or facilities;
    (3) The failure to follow recognized good sugar beet irrigation 
practices;
    (4) The failure to follow recognized good sugar beet farming 
practices;
    (5) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be sugar beets grown under a contract with 
a processor for processing as sugar, which are grown on insured acreage 
and for which a guarantee and premium rate are set by the actuarial 
table.
    b. The acreage insured for each crop year will be sugar beets 
planted on insurable acreage as designated by the actuarial table and in 
which you have a share, as reported by you or as determined by us, 
whichever we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured sugar beets at the time of planting. However, only 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) Which is irrigated and an irrigated practice is not provided for 
in the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (3) Which is destroyed, it is practical to replant to sugar beets 
and such acreage is not replanted;
    (4) Initially planted after the final planting date set by the 
actuarial table, unless you agree, in writing, on our form to coverage 
reduction;
    (5) Of sugar beets not grown under a contract executed with a 
processor or excluded from the processor contract for, or during, the 
crop year (The contract must be executed and effective before you report 
your acreage);
    (6) Planted to a type or variety of sugar beets not established as 
adapted to the area or excluded by the actuarial table;
    (7) Planted to sugar beets:
    (a) The preceding crop year in Michigan, Minnesota, North Dakota, 
and Ohio unless the acreage is designated as insurable by the actuarial 
table; or
    (b) The two preceding crop years in all other states unless the 
acreage is designated as insurable by the actuarial table;
    (8) In California, except Imperial county, planted before filing of 
the application until a normal stand is obtained;
    (9) Of volunteer sugar beets; or
    (10) Planted with another crop.
    e. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time of planting, to

[[Page 242]]

carry out a good sugar beet irrigation practice.
    f. Acreage which is planted for the development or production of 
hybrid seed or for experimental purposes is not insured, unless we 
agree, in writing, to insure such acreage.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of sugar beets in the county in which you have a 
share;
    b. The practice; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any sugar beets planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the reporting date, we may elect to 
determine, by unit, the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. The second stage production guarantees are in the actuarial 
table. The first stage guarantee is 60 percent of the second stage 
guarantee. The stages are:
    (1) First stage is from planting until July 1 except in California 
and Arizona where the first stage is from planting until the earlier of 
thinning or 90 days after planting. The first stage also applies to any 
acreage damaged in the first stage to the extent that growers in the 
area generally would not further care for the sugar beets;
    (2) Second stage applies to all insured sugar beets after the first 
stage.
    The production guarantee applicable to any acreage within a unit 
will be that established for the stage reached by the sugar beets on 
that acreage.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the sales closing date set by the actuarial table for submitting 
applications for the crop year.
    e. You must furnish a report of production to use for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
(1985 crop year in California and Arizona) under the terms of the 
experience table contained in the sugar beet policy in effect for the 
1985 crop year (1986 crop year in California and Arizona), you will 
continue to receive the benefit of that reduction subject to the 
following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1985 crop year (1986 crop year in California and Arizona);
    (4) Once your loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any replant payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies.

                           7. Insurance Period

    Insurance attaches when the sugar beets are planted and ends at the 
earliest of:
    (a) Total destruction of the sugar beets;
    (b) Harvest of the sugar beets on the unit;
    (c) Final adjustment of a loss; or
    (d) The following calendar dates:

[[Page 243]]

    (1) July 15 for Arizona and Imperial County, California;
    (2) The dates established by practice as contained in the actuarial 
table for all other California counties;
    (3) November 25 in Ohio;
    (4) December 31 in Texas; and
    (5) November 15 in all other states.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) You want our consent to replant sugar beets damaged due to any 
insured cause (see subsection 9f);
    (b) During the period before harvest, the sugar beets on any unit 
are damaged and you decide not to further care for or harvest any part 
of them;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage occurs.
    Insured acreage may not be put to another use until we have 
appraised the sugar beets and given written consent. We will not consent 
to another use until it is too late to replant. You must notify us when 
such acreage is replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is determined within 15 days prior to or during 
harvest, immediate notice must be given and a representative sample of 
the unharvested sugar beets (at least 10 feet wide and the entire length 
of the field) must remain unharvested for a period of 15 days from the 
date of notice unless we give you written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, you must give us notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the sugar beets on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You may not destroy or replant any of the sugar beets on which a 
replanting payment will be claimed until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the sugar beets which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the sugar beets on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of sugar beets on the unit and 
that any loss of production has been directly caused by one or more of 
the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sugar beets to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (in tons) to be counted for a unit will 
include all harvested and appraised production.
    (1) Any harvested production of undamaged sugar beets will be 
determined by:
    (a) Dividing the average percentage of sugar in such sugar beets, by 
the percentage of sugar shown in the actuarial table; and
    (b) Multiplying the results (rounded to three places) by the tons of 
such sugar beets.
    The average percentage of sugar will be determined by the processor 
from individual tests taken at the time of delivery. If individual tests 
of sugar content are not made at the time of delivery, the factor will 
be 1.000.
    (2) (a) The production to count from acreage damaged due to 
insurable causes occurring within the insurance period, will be 
determined by:
    (i) Dividing the gross amount received for the damaged sugar beets 
(including cooperative stock, patronage refunds, dollar values, etc.) by 
the applicable price per pound of sugar;
    (ii) Dividing that result by 2,000; and
    (iii) Dividing that result by the factor contained in the actuarial 
table for that purpose.
    (b) The applicable price per pound for sugar will be the local 
market price on the earlier of:
    (i) The day the loss is adjusted; or
    (ii) The day the damaged sugar beets are sold.

[[Page 244]]

    (c) If the price per pound received for the damaged sugar beets is 
less than the highest average amount paid by the processor to any 
producer for sugar beets which were damaged by the cause of loss as 
claimed by you, you will be considered to have received that average 
amount per pound in determining the gross amount received.
    (3) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Only the appraised production in excess of the difference 
between the first and second stage production guarantee for acreage not 
covered by (a) and (b) of this subsection (3) and which does not qualify 
for the second stage guarantee will be counted except as provided in (d) 
of this subsection (3); and
    (d) The total appraisal for uninsured causes.
    (4) There will be no adjustment for quality on any appraisal.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of sugar beets becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (6) The amount of production of any harvested or unharvested sugar 
beets may be determined on the basis of field appraisals or inspections 
conducted after the end of the insurance period.
    (7) If you elect to exclude hail and fire as insured causes of loss 
and the sugar beets are damaged by hail or fire, appraisals will be made 
in accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. A replanting payment may be made on any insured sugar beets 
replanted after we have given consent and the acreage replanted is at 
least the lesser of 20 acres or 20 percent of the insured acreage for 
the unit, (as determined on the final planting date).
    (1) No replanting payment will be made on acreage:
    (a) On which our appraisal exceeds 90 percent of the second stage 
guarantee;
    (b) Initially planted prior to the date established by the actuarial 
table; or
    (c) On which a replanting payment has been made during the current 
crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting, but will not exceed one ton multiplied by the price 
election times your share.
    (3) The Corporation will transfer the original liability to the 
replanted crop without reduction by the amount of the replant payment 
and without increase in the original premium charged for insurance 
coverage when the crop is replanted in accordance with the requirements 
of the original planting.
    (4) If seasonal conditions dictate replanting by broadcast method, 
and such method differs from the requirements of the original planting, 
the Corporation will transfer the original liability to the replanted 
crop reduced by the amount of the replant payment and without increase 
in the original premuim charged for insurance coverage.

If the information reported by you results in a lower premium than the 
actual premium determined to be due, the replanting payment will be 
reduced proportionately.
    g. You must not abandon any acreage to us.
    h. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    i. An indemnity will not be paid unless you comply with all policy 
provisions.
    j. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under Section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    k. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the sugar beets are planted for any crop year, any 
indemnity will be paid to the persons determined to be beneficially 
entitled thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for

[[Page 245]]

loss due to fire only for the smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be made on our 
form and approved by us. We may collect the premium from either you or 
your transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all sugar 
beets produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are:

------------------------------------------------------------------------
                                            Cancellation and termination
             State and county                           dates           
------------------------------------------------------------------------
Arizona and Imperial County, California...  August 31.                  
All other California Counties.............  March 31,                   
All other states..........................  April 15.                   
------------------------------------------------------------------------

    e. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by:
    (a) April 30 preceding the cancellation date for Arizona and 
Imperial County, California;
    (b) November 30 preceding the cancellation date for all other 
California counties;
    (c) December 31 preceding the cancellation date for all other 
states.
    Acceptance of changes will be conclusively presumed in the absence 
of notice from you to cancel the contract.

[[Page 246]]

                          17. Meaning of Terms

    For the purposes of sugar beet crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
sugar beet insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. County means:
    (1) The county shown on the application;
    (2) Any additional land located in a local producing area bordering 
on the county, as shown by the actuarial table; and
    (3) Any land identified by the same ASCS farm serial number for the 
county but physically located in another county within the State.
    d. Crop year means the period within which the sugar beets are 
normally grown and designated by the calendar year in which the sugar 
beets are normally harvested; however, in California and Arizona, it 
will be the period from planting until the applicable date for the end 
of the insurance period and is designated by:
    (1) The calendar year in which planted if planted on or before July 
15; or
    (2) The next calendar year if planted after July 15.
    e. Harvest means the completion of topping and lifting of sugar 
beets on any acreage for delivery to a processor.
    f. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    g. Insured means the person who submitted the application accepted 
by us.
    h. Loss ratio means your ratio of indemnity to premium.
    i. Normal stand means the number of live plants after thinning 
required to produce an average yield per acre for the area.
    j. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    k. Replanting means performing the cultural practices necessary to 
replant insured acreage to sugar beets.
    l. Replant payment means that payment made to the insured in 
accordance with the provisions of subsection 9.f. of this policy which 
payment is subject to offset for premium owed.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Tenant means a person who rents land from another person for a 
share of the sugar beets or a share of the proceeds therefrom.
    o. Unit means all insurable acreage of sugar beets in the county on 
the date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the sugar beets on such land will be 
considered as owned by the lessee. Land which would otherwise be on unit 
may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part,

[[Page 247]]

coverage under the terms of such crop insurance policy will be effective 
subject to the availability of appropriations.

[51 FR 5150, Feb. 12, 1986, as amended at 51 FR 29205--29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 6775, 
Mar. 5, 1987; 52 FR 17547, 17548, May 11, 1987; 54 FR 20509, May 12, 
1989; 55 FR 35888, Sept. 4, 1990; 55 FR 50815, Dec. 11, 1990; 58 FR 
66250, Dec. 20, 1993]



PARTS 431-432  [RESERVED]






PART 433--DRY BEAN CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
433.1  Availability of dry bean crop insurance.
433.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
433.3  OMB control numbers.
433.4  Creditors.
433.5  Good faith reliance on misrepresentation.
433.6  The contract.
433.7  The application and policy.

    Authority: 7 U.S.C. 1506(l), 1506(p).

    Source: 50 FR 10202, Mar. 14, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 433.1  Availability of dry bean crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
dry beans in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 433.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for dry beans which will be included in the actuarial table on 
file in applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 433.3  OMB control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 433) have been approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 
and have been assigned OMB numbers 0563-0003 and 0563-0007.



Sec. 433.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 433.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the dry bean insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation; (1) is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) the Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such

[[Page 248]]

insured's entitlement to the indemnity would not be fair and equitable, 
such insured shall be granted relief the same as if otherwise entitled 
thereto. Application for relief under this section must be submitted to 
the Corporation in writing.



Sec. 433.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the dry bean 
crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the service 
offices.



Sec. 433.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the dry bean crop as landlord, owner-operator, or tenant. The 
application shall be submitted to the Corporation at the service office 
on or before the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the period of such extension. However, if adverse conditions should 
develop during such period, the Corporation will immediately discontinue 
the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a dry bean 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D or part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Dry Bean Insurance Policy for the 1986 and 
succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                     Dry Bean Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9f(5).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good bean farming practices;
    (3) The failure or breakdown of irrigation equipment or facilities;
    (4) The failure to follow good bean irrigation practices;
    (5) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or

[[Page 249]]

    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop Acreage, and Share Insured

    a. The crop insured will be dry beans (``beans'') and will consist 
of:
    (1) Dry edible beans, planted for harvest as dry beans, of a class 
designated in the actuarial table; and
    (2) Bush varieties of garden seed beans (contract seed beans), 
planted for harvest as seed and grown under a contract (with a seed 
company executed before the acreage reporting date), which are grown on 
insured acreage and for which a guarantee and premium rate are provided 
by the actuarial table.
    In addition to the classes of dry beans listed on the actuarial 
table for your county, we will insure other classes of beans provided:
    (i) The class you intend to plant has been demonstrated to be 
adapted to the area. (Evidence of adaptability includes results of test 
plots and recommendations by universities and seed companies. Two years 
of personal experience producing the class in your production area may 
be submitted for this requirement.);
    (ii) You submit your production report and prices received by the 
sales closing date, or the test plot results and price information on or 
before the sales closing date; and
    (iii) We provide you, in writing, an approved insurance offer which 
you accept in writing.
    b. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured beans are grown and which 
provides for delivery of the beans under certain conditions and at a 
stipulated price will, for the purpose of this contract, be treated as a 
contract under which you have the share in the beans.
    c. The acreage insured for each crop year will be beans planted on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    d. The insured share is your share as landlord, owner-operator, or 
tenant in the insured beans at the time of planting. However, only for 
the purpose of determining the amount of indemnity, your share will not 
exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    e. We do not insure any acreage:
    (1) Of bush varieties of garden seed beans not grown under contract 
or excluded from the contract for, or during, the crop year;
    (2) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (3) Which is irrigated and an irrigated practice is not provided for 
by the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (4) Which is destroyed, it is practical to replant to the same 
varietal group of garden seed beans or the same varietal group of dry 
edible beans, and such acreage is not replanted;
    (5) Initially planted after the final planting date contained in the 
actuarial table unless you agree, in writing, on our form to coverage 
reduction;
    (6) Of volunteer beans;
    (7) Planted to a class of dry edible beans or a bush variety of 
garden seed beans not established as adapted to the area or excluded by 
the actuarial table;
    (8) Which does not meet the rotation requirements designated by the 
actuarial table; or
    (9) Planted with a crop other than beans.
    f. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water at the time of planting to carry out a good bean 
irrigation practice.
    g. Unless otherwise provided by the actuarial table, insurance will 
attach only on acreage initially planted in rows far enough apart to 
permit cultivation, however, if insured acreage is destroyed and 
replanted by broadcasting, drilling, or in rows too close to permit 
cultivation, it will be regarded as insured acreage.
    h. Any acreage of beans which is destroyed and replanted to an 
insurable class of dry edible beans or bush varieties of garden seed 
beans will be regarded as insured acreage.
    i. Acreage which is planted for the development or production of 
hybrid seed or for experimental purposes is not insured unless we agree, 
in writing, to insure such acreage.
    j. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress if we advise you of the limit 
prior to planting.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of beans in the county in which you have a share;
    b. The practice; and
    c. Your share at the time of planting.

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any beans planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the reporting date, we may elect to 
determine, by unit, the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

[[Page 250]]

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the sales closing date as established by the actuarial table for 
submitting applications for the crop year.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1984 crop year 
under the terms of the experience table contained in the dry bean policy 
for the 1985 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the 1985 policy;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any replant payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies.

                           7. Insurance Period

    Insurance attaches when the beans are planted and ends at the 
earliest of:
    a. Total destruction of the beans;
    b. Combining, threshing, or removal from the field;
    c. Final adjustment of a loss; or
    d. November 15 of the calendar year in which the beans are normally 
harvested.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) You want our consent to replant beans damaged due to any insured 
cause (See section 9.g.);
    (b) During the period before harvest, the beans on any unit are 
damaged and you decide not to further care for or harvest any part of 
them;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage occurs.

Insured acreage may not be put to another use until we have appraised 
the beans and given written consent. We will not consent to another use 
until it is too late to replant. You must notify us when such acreage is 
replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given and a representative sample of the unharvested beans (at least 10 
feet wide and the entire length of the field) must remain unharvested 
for a period of 15 days from the date of notice, unless we give you 
written consent to harvest the sample.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, you must give us notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the beans on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You may not destroy or replant any of the beans on which a 
replanting payment will be claimed until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the beans which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

[[Page 251]]

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the beans on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of beans on the unit and that any 
loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit of dry edible beans 
by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of dry edible beans 
to be counted (see section 9f);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. The amount of indemnity on each unit of bush varieties of garden 
seed beans will be determined by subtracting the value of production 
from the dollar amount of insurance and multiplying the remainder by the 
insured share.
    (1) The value of production is obtained by multiplying, by variety, 
the total production to be counted by the applicable price per pound at 
which indemnities will be computed and totaling such amounts. The 
applicable price per pound at which indemnities will be computed will be 
the lesser of the amount designated by:
    (a) The actuarial table; or
    (b) The contract with the seed company.
    (2) The dollar amount of insurance is obtained by multiplying, by 
variety, the production guarantee per acre by the insured acreage, and 
the result by the price per pound at which indemnities will be computed 
and totaling such amounts. The price per pound at which indemnities will 
be computed will be the lesser of the amount designated by:
    (a) The actuarial table; or
    (b) The contract with the seed company.
    e. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    f. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature dry edible bean production:
    (a) Which otherwise is not eligible for quality adjustment will be 
reduced .12 percent for each .1 percentage point of moisture in excess 
of 18.0 percent;
    (b) Of the classes of pea and medium white with a pick in excess of 
4 percent due to insurable causes and of any other classes which, due to 
insurable causes, does not grade No. 2 or better, in accordance with the 
Official United States Grain Standards, will be adjusted by multiplying 
the number of pounds of such beans by the conversion factor designated 
by the actuarial table for the applicable grade or pick; or
    (c) Which, due to insurable causes, does not meet any U.S. Grade or 
pick shown in the actuarial table, or would not meet these requirements 
if properly handled, or if a conversion factor is not designated by the 
actuarial table, any mature beans which do not grade No. 2 or better in 
accordance with the Office United States Grain Standards, will be 
adjusted by:
    (i) Dividing the value per hundredweight of such beans by the price 
per hundredweight of U.S. No. 2 beans (except that for the classes of 
pea and medium while, the price will be the local market price per 
hundredweight for these classes with a 4 percent pick); and
    (ii) Multiplying the result by the number of pounds of such beans.

The applicable price for No. 2 beans will be the local market price on 
the earlier of the day the loss is adjusted or the day such beans were 
sold.

    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good bean farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of beans becomes general 
in the county and reappraised by us;
    (b) Further damage by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested beans may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.

[[Page 252]]

    (5) If you elect to exclude hail and fire as insured causes of loss 
and the beans are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    g. A replanting payment may be made on any insured beans replanted 
after we have given consent and the acreage replanted is at least the 
lesser of 20 acres or 20 percent of the insured acreage for the unit, as 
determined on the final planting date.
    (1) No replanting payment will be made on acreage:
    (a) On which our appraisal exceeds 90 percent of the guarantee;
    (b) Initially planted prior to the date established by the actuarial 
table; or
    (c) On which a replanting payment has been made during the current 
crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting but will not exceed the product obtained by 
multiplying 100 pounds times the price election, times your share.
    (3) The Corporation will transfer the original liability to the 
replanted crop without reduction by the amount of the replant payment 
and without increase in the original premium charged for insurance 
coverage when the crop is replanted in accordance with the requirements 
of the original planting.
    (4) If seasonal conditions dictate replanting by broadcast method, 
and such method differs from the requirements of the original planting, 
the Corporation will transfer the original liability to the replanted 
crop reduced by the amount of the replant payment and without increase 
in the original premium charged for insurance coverage.

If the information reported by you results in a lower premium than the 
actual premium determined to be due, the replanting payment will be 
reduced proportionately.

    h. You must not abandon any acreage to us.
    i. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    j. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim form, 
if the reason for our failure to timely pay is not due to your failure 
to provide information or other material necessary for the computation 
or payment of the indemnity. The interest rate will be that established 
by the Secretary of the Treasury under section 12 of the Contract 
Dispute Act of 1978 (41 U.S.C. 611), and published in the Federal 
Register semiannually on or about January 1 and July 1. The interest 
rate to be paid on any indemnity will vary with the rate announced by 
the Secretary of the Treasury.
    k. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the beans are planted for any crop year, any indemnity 
will be paid to the persons determined to beneficially entitled thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.

For the purpose of this section, the amount of loss from fire will be 
the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with approval. The assignee will have 
the right to submit the loss notices and forms required by the contract.

[[Page 253]]

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all beans 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are:

------------------------------------------------------------------------
                                            Cancellation and termination
                   State                                dates           
------------------------------------------------------------------------
California................................  March 31.                   
All other states..........................  April 15.                   
------------------------------------------------------------------------

    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by December 31 preceding the 
cancellation date (February 15, 1997, for the 1997 crop year only). 
Acceptance of any change will be conclusively presumed in the absence of 
any notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of dry bean crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding dry 
bean insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. County means: (1) The county shown on the application;
    (2) Any additional land located in a local producing area bordering 
on the county, as shown by the actuarial table; and
    (3) Any land identified by an ASCS farm serial number for the county 
but physically located in another county.
    d. Crop year means the period within which the beans are normally 
grown and will be designated by the calendar year in which the beans are 
normally harvested.
    e. Harvest means the completion of combining or threshing of beans 
on the unit.
    f. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    g. Insured means the person who submitted the application accepted 
by us.
    h. Loss ratio means the ratio of indemnity to premium.
    i. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable,

[[Page 254]]

a State, a political subdivision of a State, or any agency thereof.
    j. Pick means the percentage, on a weight basis, of the defects such 
as splits, damaged (including discolored) beans, contrasting classes, 
and foreign material remaining in the beans after dockage has been 
removed by the proper use of screens or sieves.
    k. Replanting means performing the cultural practices necessary to 
replant insured acreage to dry beans.
    l. Replant payment means that payment made to the insured in 
accordance with the provisions of subsection 9.g. of this policy which 
payment is subject to offset for premium owed.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Tenant means a person who rents land from another person for a 
share of the beans or a share of the proceeds therefrom.
    o. Unit means all insurable acreage of either dry edible beans or 
bush varieties of garden seed beans in the county on the date of 
planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the beans on such land will be considered as owned 
by the lessee. Land which would otherwise be one unit may be divided 
according to applicable guidelines on file in your service office. Units 
will be determined when the acreage is reported. Errors in reporting 
units may be corrected by us to conform to applicable guidelines when 
adjusting a loss. We may consider any acreage and share thereof reported 
by or for your spouse or child or any member of your household to be 
your bona fide share or the bona fide share of any other person having 
an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

[50 FR 10202, Mar. 14, 1985, as amended by Amdt. 1, 50 FR 49520, Dec. 3, 
1985; 50 FR 52758, Dec. 26, 1985; 51 FR 7546, Mar. 5, 1986; 51 FR 
29205--29207, Aug. 15, 1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, 
Feb. 3, 1987; 52 FR 17547, 17548, May 11, 1987; 54 FR 20510, May 12, 
1989; 55 FR 50816, Dec. 11, 1990; 61 FR 68543, Dec. 30, 1996]



PART 434 [RESERVED]






PART 435--TOBACCO (QUOTA PLAN) CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1985 and Succeeding Crop Years

Sec.
435.1  Availability of quota plan tobacco crop insurance.
435.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
435.3  OMB control numbers.
435.4  Creditors.
435.5  Good faith reliance on misrepresentation.
435.6  The contract.
435.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77 as 
amended (7 U.S.C. 1506, 1516).

    Source: 50 FR 2951, Jan. 23, 1985, unless otherwise noted.



       Subpart--Regulations for the 1985 and Succeeding Crop Years



Sec. 435.1  Availability of quota plan tobacco crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
tobacco in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.

[[Page 255]]



Sec. 435.2   Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for tobacco which will be included in the actuarial table on 
file in service offices for the county and which may be changed from 
year to year.
    (b) At the time application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 435.3   OMB control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 435) have been approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 
and have been assigned OMB numbers 0563-0003 and 0563-0007.



Sec. 435.4   Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 435.5   Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the tobacco insurance 
contract, whenever--
    (a) An insured person under a contract of crop insurance entered 
into under these regulations, as a result of a misrepresentation or 
other erroneous action or advice by an agent or employee of the 
Corporation (1) is indebted to the Corporation for additional premiums, 
or (2) has suffered a loss to a crop which is not insured or for which 
the insured person is not entitled to an indemnity because of failure to 
comply with the terms of the insurance contract, but which the insured 
person believed to be insured, or believed the term of the insurance 
contract to have been complied with or waived, and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give, erroneous advice; (2) said insured 
person relied thereon in good faith; and (3) to required the payment of 
the additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured person shall be 
granted relief the same as if otherwise entitled thereto.

Application for relief under this section must be submitted to the 
Corporation in writing.



Sec. 435.6   The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the tobacco crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 435.7   The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the tobacco crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in

[[Page 256]]

the applicable service offices and publishing a notice in the Federal 
Register upon the Manager's determination that no adverse selectivity 
will result during the period of such extension. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1985 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a tobacco 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1985 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Tobacco (Quota Plan) Insurance Policy for 
the 1985 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

              Quota Plan of Tobacco--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we, ``us'' and ``our'' refer to 
the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9d(6).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement or wrongdoing of you, any member of 
your household, your tenants or employees;
    (2) The failure to follow recognized good tobacco farming practices;
    (3) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (4) Any cause not specified in section 1a as an insured loss.

       2. Crop, Acreage, Insured Poundage Quota, and Share Insured

    a. The crop insured will be tobacco of the type shown as insurable 
in the actuarial table, which is grown on insured acreage, and for which 
a premium rate is provided by the actuarial table.
    b. The acreage insured for each crop year will be an insurable type 
of tobacco planted on insurable acreage and in which you have a share, 
as reported by you or as determined by us, whichever we elect.
    c. The insured share will be your share as landlord, owner-operator, 
or tenant in the insured tobacco at the time of planting.
    d. We do not insure any acreage:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (2) On which the tobacco was destroyed for the purpose of conforming 
with any other program administered by the United States Department of 
Agriculture;
    (3) Which is destroyed, it is practical to replant to tobacco, and 
such acreage was not replanted;
    (4) Initially planted after the final planting date contained in the 
actuarial table, unless you agree to coverage reduction on our form;
    (5) Planted to tobacco of a discount variety under provisions of the 
tobacco price support program;
    (6) Planted to a type or variety of tobacco not established as 
adapted to the area or excluded by the actuarial table;
    (7) Designated as uninsurable by the actuarial table; or
    (8) Planted for experimental purposes.
    e. The insured poundage quota for each crop year will be the 
effective poundage marketing quota applicable to the unit as provided 
under ASCS Tobacco Marketing Quota Regulations for the crop year plus 
any additional poundage you intend to produce on the unit that crop 
year, as reported by you or as determined by us, whichever we elect.

[[Page 257]]

                                However:

    (1) The insured poundage quota may not include any amount which 
would be subject to a marketing quota penalty under ASCS Tobacco 
Marketing Quota Regulations;
    (2) The poundage marketing quota may be reduced for any carryover 
tobacco to be marketed under the poundage quota applicable to the unit 
when such poundage reduction is clearly specified by you in filing the 
acreage and quota report;
    (3) The insured poundage quota will never exceed the pounds obtained 
by multiplying the insured acres by the applicable farm yield per acre; 
and
    (4) Unless otherwise provided by the actuarial table, for any crop 
year in which tobacco poundage marketing quota regulations are not in 
effect, the insured poundage quota will be the pounds obtained by 
multiplying the applicable farm yield per acre times the lower of the 
reported or insured acreage on the unit.
    f. If insurance is provided for an irrigated practice:
    (1) You must report as irrigated only the acreage for which you have 
adequate facilities and water to carry out a good tobacco irrigation 
practice at the time of planting; and
    (2) Any loss of production caused by failure to carry out a good 
tobacco irrigation practice, except failure of the water supply from an 
unavoidable cause occurring after the beginning of planting, will be 
considered as due to an uninsured cause. The failure or breakdown of 
irrigation equipment or facilities will not be considered as a failure 
of the water supply from an unavoidable cause.
    (3) Insurance will not attach on an irrigated basis to acreage 
otherwise insurable on such basis unless it is designated as irrigated 
at the time the acreage is reported.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

             3. Report of Acreage, Share, and Poundage Quota

    You must report on our form:
    a. All the acreage of insurable types of tobacco in the county in 
which you have a share;
    b. Your share at the time of planting; and
    c. The effective poundage marketing quota applicable to the unit as 
provided under ASCS Tobacco Marketing Quota Regulations plus any 
additional poundage you intend to produce on the unit in that crop year. 
Such poundage marketing quota may be reduced for any carryover tobacco 
to be marketed under the poundage quota applicable to the unit provided 
such poundage reduction is clearly specified in filing the acreage and 
quota report. The quota so reported will not be subject to change by 
you.

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any tobacco planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you have submitted on this 
report. If you do not submit this report by the reporting date, we may 
elect to determine by unit the insured acreage, share, and practice or 
we may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

               4. Amounts of Insurance and Coverage Levels

    a. The coverage levels are contained in the actuarial table.
    b. The amount of insurance for a unit will be the dollar amount 
determined by multiplying the insured poundage quota for the unit by the 
percentage guarantee for the applicable coverage level established by 
the actuarial table and multiplying this product by the current year's 
support price for type 31 tobacco (rounded to the nearest cent) less six 
cents per pound for warehouse charges.
    c. Coverage level 2 will apply if you have not elected a coverage 
level.
    d. You may change the coverage level on or before the closing date 
for submitting applications for the crop year as established by the 
actuarial table.
    e. You must furnish a report of production to use for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the amount of insurance for the 
unit times the premium rate, times your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

[[Page 258]]

    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the Experience Table contained in the tobacco policy 
for the 1984 crop year, you will continue to receive the benefit of that 
reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the 1984 policy;
    (4) Once the loss ratio exceeds .80 no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches when the tobacco is planted and ends at the 
earliest of:
    a. Total destruction of the tobacco;
    b. Weighing-in at the tobacco warehouse;
    c. Removal of the tobacco from the unit (except for curing, grading, 
packing or immediate delivery to the tobacco warehouse);
    d. Final adjustment of a loss; or
    e. February 28, immediately following the normal harvest period.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) During the period before harvest, the tobacco on any unit is 
damaged and you decide not to further care for or harvest any part of 
it;
    (b) You want our consent to put the acreage to another use; or
    (c) After consent to put acreage to another use is given, additional 
damage occurs.

Insured acreage may not be put to another use until we have appraised 
the tobacco and given written consent. We will not consent to another 
use until it is too late to replant. You must notify us when such 
acreage is put to another use.
    (2) You must give us notice at least 15 days before the beginning of 
harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given. A representative sample of the unharvested tobacco (at least 10 
feet wide and the entire length of the field) must remain unharvested 
for a period of 15 days from the date of notice, unless we give you 
written consent to harvest the sample.
    (4) Notice must be given immediately if any tobacco is destroyed or 
damaged by fire during the insurance period.
    (5) If tobacco is not to be sold through auction warehouses and an 
indemnity is to be claimed, notice must be given in sufficient time to 
allow us to inspect the cured tobacco prior to its sale or other 
disposition.
    (6) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 30 days after the earliest of:
    (a) Total destruction of the tobacco on the unit;
    (b) The date marketing or other disposal of the insured tobacco on 
the unit is completed; or
    (c) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the tobacco which is not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the tobacco on the unit;
    (2) The date marketing or other disposal of the insured tobacco on 
the unit is completed; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of tobacco on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Subtracting from the amount of insurance for the unit, the value 
of the total production of tobacco to be counted (see section 9d); and
    (2) Multiplying the remainder by your share.
    d. The value of the total production to be counted for a unit will 
include the value of all harvested and appraised production.
    (1) Production to count will include:
    (a) The gross returns (less six cents per pound for warehouse 
charges) from tobacco sold on the warehouse floor;
    (b) The fair market value of the tobacco sold other than on the 
warehouse floor;

[[Page 259]]

    (c) The fair market value of the tobacco harvested and not sold;
    (d) The fair market value of any unharvested tobacco as if such 
tobacco were harvested and cured; and
    (e) The current year's support price per pound (less six cents per 
pound for warehouse charges) for appraisals made by us for poor farming 
practices or uninsured causes of loss. (If a price support program is 
not in effect, such appraised production will be valued at the market 
price for the current crop year.)
    (2) To enable us to determine the fair market value of tobacco not 
sold through auction warehouses, we must be given the opportunity to 
inspect such tobacco before it is sold, contracted to be sold, or 
otherwise disposed of and, if the best offer you receive for any such 
tobacco is considered by us to be inadequate, to obtain additional 
offers on your behalf.
    (3) The value of appraised production to be counted will include:
    (a) The value of unharvested production on harvested acreage and 
potential production lost due to uninsured causes and failure to follow 
recognized good tobacco farming practices;
    (b) Not less than the average amount of insurance per insured acre 
for the unit for any acreage which is abandoned or put to another use 
without our prior written consent or damaged solely by an uninsured 
cause;
    (c) Not less than 35 percent of the average amount of insurance per 
insured acre for the unit for all other unharvested acreage.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tobacco becomes general 
in the county;
    (b) Harvested; or
    (c) Further damaged by an insured cause before the acreage is put to 
another use.
    (5) The amount of production of any unharvested tobacco may be 
determined on the basis of field appraisals conducted after the end of 
the normal harvest period.
    (6) If you have elected to exclude hail and fire as insured causes 
of loss and the tobacco is damaged by hail or fire, appraisals will be 
made in accordance with Form FCI-78, ``Request to Exclude Hail and 
Fire''.
    (7) The commingled production of units will be allocated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    e. You must not abandon any acreage to us.
    f. You may not bring suit or action against us unless you have 
complied with all policy provisions. If a claim is denied, you may sue 
us in the United States District Court under the provisions of 7 U.S.C. 
1508(c). You must bring suit within 12 months of the date notice of 
denial is mailed to and received by you.
    g. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fee, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date and submit to us the properly completed claim form 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semi-annually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury. Interest will be paid in 
accordance with this section beginning with all claims for payment of 
indemnity initially filed on or after March 1, 1985.
    h. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the tobacco is planted for any crop year, any indemnity 
will be paid to the person(s) we determine to be beneficially entitled 
thereto.
    i. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of:
    (1) The amount of indemnity determined pursuant to this contract 
without regard to any other insurance; or
    (2) The amount by which the loss from fire exceeds the indemnity 
paid or payable under such other insurance. For the purposes of this 
section, the amount of loss from fire will be the difference between the 
fair market value of the production on the unit before the fire and 
after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract, and such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

[[Page 260]]

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
rights. If we pay you for your loss then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all tobacco 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Any person 
designated by us will have access to such records and the farm for 
purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and set off are approved.
    d. The cancellation and termination dates are April 15.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. All contract changes will be available at your service office by 
December 31 preceding the cancellation date except that, for the 1985, 
1986 transition only, all contract changes will be available at your 
service office by January 20, 1986. Acceptance of any change will be 
conclusively presumed in the absence of any notice from you to cancel 
the contract.

                          17. Meaning of Terms

    For the purposes of quota tobacco crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the coverage levels, premium rates, 
practices, insurable and uninsurable acreage, and related information 
regarding tobacco insurance in the county.
    b. ASCS means the Agricultural Stabilization and Conservation 
Service of the United States Department of Agriculture.
    c. Carryover tobacco means any tobacco on hand from the previous 
year's production.
    d. County means the county shown on the application and:
    (1) Any additional land located in a local producing area bordering 
on the county, as shown by the actuarial table; and
    (2) Any land identified by an ASCS Farm Serial Number for the county 
but physically located in another county.
    e. Crop year means the period within which the tobacco is normally 
grown and will be designated by the calendar year in which the tobacco 
is normally harvested.
    f. Effective poundage marketing quota means the farm marketing quota 
as established and recorded by ASCS.

[[Page 261]]

    g. Farm yield means the yield per acre used by ASCS in establishing 
the basic farm marketing poundage quota for the tobacco farm, unless we 
have established a yield for the farm in the actuarial table.
    h. Harvest means the completion of cutting of tobacco on any acreage 
from which acreage at least 20 percent of the amount of tobacco in 
pounds per acre (obtained by multiplying the applicable insured poundage 
quota for the unit by the applicable percentage of guarantee shown in 
the actuarial table for such acreage and dividing this result by the 
insured acreage in the unit) is cut.
    i. Insurable acreage means that acreage planted to an insurable type 
of tobacco excluding any acreage designated as noninsurable by the 
actuarial table.
    j. Insured means the person who submitted the application accepted 
by us.
    k. Loss ratio means the ratio of indemnity(ies) to premium(s).
    l. Market Price for a crop year means the average auction price for 
the applicable type (less six cents per pound for warehouse charges) in 
the belt or area. The market price will be designated by the actuarial 
table.
    m. Person means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    n. Planting means transplanting the tobacco plant from the bed to 
the field.
    o. Rounded means rounding up for \1/2\ and above and rounding down 
for less than \1/2\.
    p. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    q. Support price per pound means the average price support level per 
pound for the insured type of tobacco as announced by the United States 
Department of Agriculture under the tobacco price support program. For 
any crop year in which a price support for the insured type is not in 
effect, the market price for that crop year will be used.
    r. Tenant means a person who rents land from another person for a 
share of the tobacco or a share of the proceeds therefrom.
    s. Unit means all insurable acreage of an insurable type of tobacco 
in the county in which you have an insured share on the date of planting 
for the crop year and which is identified by a single ASCS Farm Serial 
Number at the time insurance first attaches under this policy for the 
crop year. Units will be determined when the acreage is reported. We may 
reject or modify any ASCS reconstitution for the purpose of unit 
definition if the reconstitution was in whole or part to defeat the 
purpose of the Federal Crop Insurance Program or to gain 
disproportionate advantage under this policy. Errors in reporting units 
may be corrected by us when adjusting a loss.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 2951, Jan. 23, 1985, as amended at 50 FR 49027, Nov. 29, 1985; 50 
FR 52758, Dec. 26, 1985; 51 FR 7546, Mar. 5, 1986; 51 FR 29205--29207, 
Aug. 15, 1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 
FR 6775, Mar. 5, 1987; 54 FR 20372, May 11, 1989; 55 FR 35888, Sept. 4, 
1990]



PART 436 [RESERVED]






PART 437--SWEET CORN CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1985 and Succeeding Crop Years

Sec.
437.1  Availability of sweet corn crop insurance.
437.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
437.3  OMB control numbers.
437.4  Creditors.
437.5  Good faith reliance on misrepresentation.
437.6  The contract.
437.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.


[[Page 262]]


    Source: 50 FR 1825, Jan. 14, 1985, unless otherwise noted.



      Subpart--Regulations for the 1985 and Succeeding Crops Years



Sec. 437.1  Availability of sweet corn crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
sweet corn in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 437.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for sweet corn which will be included in the actuarial table on 
file in service offices for the county and which may be changed from 
year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 437.3  OMB Control numbers.

    The information collection requirements contained in these 
regulations (7 CFR part 437) have been approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 
and have been assigned OMB Nos. 0563-0003 and 0563-0007.



Sec. 437.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 437.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the sweet corn insurance 
contract, whenever
    (a) An insured person under a contract of crop insurance entered 
into under these regulations, as a result of a misrepresentation or 
other erroneous action or advice by an agency or employee of the 
Corporation (1) is indebted to the Corporation for additional premiums, 
or (2) has suffered a loss to a crop which is not insured or for which 
the insured person is not entitled to an indemnity because of failure to 
comply with the terms of the insurance contract, but which the insured 
person believed to be insured, or believed the terms of the insurance 
contract to have been complied with or waived, and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
person relied thereon in good faith; and (3) to require the payment of 
the additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured person shall be 
granted relief the same as if otherwise entitled thereto. Application 
for relief under this section must be submitted to the Corporation in 
writing.



Sec. 437.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the sweet corn 
crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 437.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation

[[Page 263]]

may be made by any person to cover such person's share in the sweet corn 
crop as landlord, owner-operator, or tenant. The application shall be 
submitted to the Corporation at the service office on or before the 
applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
office and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the period of such extension. However, if adverse conditions should 
develop during such period, the Corporation will immediately discontinue 
the acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1985 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a sweet corn 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1985 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Sweet Corn Insurance Policy for the 1985 
and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                    Sweet Corn--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(5).
    b. We will not insure against any loss of production due to:
    (1) Sweet corn not being timely harvested, unless it is determined 
that, due to unusual weather conditions, a substantial number of acres 
of sweet corn in the area were ready for harvest at the same time;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants or employees;
    (3) The failure to follow recognized good sweet corn farming 
practices;
    (4) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (5) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be canning and freezing sweet corn grown on 
insured acreage, for which a guarantee and premium rate are provided by 
the actuarial table.
    b. The acreage insured for each crop year will be sweet corn planted 
on insurable acreage as designated by the actuarial table and in which 
you have a share, as reported by you or as determined by us, whichever 
we elect.
    c. The insured share will be your share as landlord, owner-operator, 
or tenant in the insured sweet corn at the time of planting.
    d. We do not insure any acreage:
    (1) Of sweet corn not grown under a contract executed with a 
processor or excluded from the processor contract for, or during, the 
crop year (The contract must be executed and effective before you report 
your acreage.);
    (2) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;

[[Page 264]]

    (3) Which is irrigated and an irrigated practice is not provided by 
the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (4) Which is destroyed, it is practical to replant to sweet corn, 
and such acreage is not replanted;
    (5) Initially planted after the final planting date contained in the 
actuarial table;
    (6) Of volunteer sweet corn;
    (7) Planted to a type or variety of sweet corn not established as 
adapted to the area or excluded by the actuarial table;
    (8) Planted for the development or production of hybrid seed or for 
experimental purposes; or
    (9) Planted with a crop other than sweet corn.
    e. If insurance is provided for an irrigated practice:
    (1) You must report as irrigated only the acreage for which you have 
adequate facilities and water to carry out a good sweet corn irrigation 
practice at the time of planting; and
    (2) Any loss of production caused by failure to carry out a good 
sweet corn irrigation practice, except failure of the water supply from 
an unavoidable cause occurring after the beginning of planting, will be 
considered as due to an uninsured cause. The failure or breakdown of 
irrigation equipment or facilities will not be considered as a failure 
of the water supply from an unavoidable cause.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.
    g. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured crop is grown and which 
provides for delivery of the crop under certain conditions and at a 
stipulated price(s) will, for the purpose of this contract, be treated 
as a contract under which you have the share in the crop.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of sweet corn in the county in which you have a 
share;
    b. The practice; and
    c. Your share at the time of planting;

You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any sweet corn planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you have submitted on this 
report. If you do not submit this report by the reporting date, we may 
elect to determine by unit the insured acreage, share, and practice or 
we may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

     4. Production Guarantees, Coverage Levels, and Prices at Which 
                      Indemnities Shall be Computed

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are in the actuarial table.
    b. Coverage level 2 will apply if you have not elected a coverage 
level.
    c. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    d. You must furnish a report of production to us for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share at the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

[[Page 265]]

    c. If you are eligible for a premium reduction in excess of 5 
percent based on your insuring experience through the 1983 crop year 
under the terms of the Experience Table contained in the sweet corn 
policy for the 1984 crop year, you will continue to receive the benefit 
of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the 1984 policy;
    (4) Once the loss ratio exceed .80 no further premium reduction will 
be applicable; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches when the sweet corn is planted and ends at the 
earliest of:
    a. Total destruction of the sweet corn;
    b. Harvest;
    c. Final adjustment of a loss;
    d. The date by which sweet corn acreage should have been harvested; 
or
    e. The following dates of the calendar year in which the sweet corn 
is normally harvested:

  (1) Benton, Clackamas, Columbia, Lane, Linn, Marion, Multnomah, Polk, 
Washington, and Yamhill Counties, Oregon; and Clark and Cowlitz Counties 
    Washington...............................................October 20;
  (2) All other Washington     Counties......................October 10;
  (3) All other Oregon counties and all other states.......September 20.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) During the period before harvest, the sweet corn on any unit is 
damaged and you decide not to further care for or harvest any part of 
it;
    (b) You want our consent to put the acreage to another use; or
    (c) After consent to put acreage to another use is given, additional 
damage occurs.

Insured acreage may not be put to another use until we have appraised 
the sweet corn and given written consent. We will not consent to another 
use until it is too late to replant. You must notify us when such 
acreage is put to another use.
    (2) If you anticipate a loss on any unit, you must give us notice:
    (a) At least 15 days before the beginning of harvest; or
    (b) Immediately, if probable loss is later determined. A 
representatve sample of the unharvested sweet corn (at least 10 feet 
wide and the entire length of the field) must be left intact for a 
period of 15 days from the date of notice unless we give you written 
consent to harvest the sample.
    (3) If you are going to claim an indemnity on any unit which is not 
to be harvested or on which harvest has been discontinued, notice must 
be given not later than 48 hours:
    (a) Before the time harvest would normally start; or
    (b) After discontinuance of harvest.

If such notice is not given or if unharvested acreage is not left 
intact, the appraisal on such acreage will be the production guarantee.
    (4) Unless notice has been given under subsection (3) above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, we must be given notice not later 
than 30 days after the earliest of:
    (a) Total destruction of the sweet corn on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the sweet corn which is not to be harvested.
    c. We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliers of:
    (1) Total destruction of the sweet corn on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of sweet corn on the unit and 
that any loss of production has been directly caused by one or more

[[Page 266]]

of the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of sweet corn to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy:
    (1) In the 1985 crop year results in a lower premium than the actual 
premium determined to be due, the indemnity will be reduced 
proportionately.
    (2) In the 1986 and succeeding crop years results in a lower premium 
than the premium determined to be due, the production guarantee on the 
unit will be computed on the information reported and not on the 
information actually determined. All production from insurable acreage, 
whether or not reported as insurable will count against the production 
guarantee.
    e. The total production (Tons) to be counted for a unit will include 
all harvested and appraised production.
    (1) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good sweet corn farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause;
    (c) Any appraised production on unharvested acreage.
    (2) If any acreage of sweet corn is not timely harvested the 
production to count will be the greater of the:
    (a) Appraised production; or
    (b) Dollar amount received from the processor divided by the 
processor's base contract price per ton.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of sweet corn becomes 
general in the county;
    (b) Harvested; or
    (c) Further damaged by an insured cause before the acreage is put to 
another use.
    (4) The amount of production of any unharvested sweet corn may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (5) If you have elected to exclude hail and fire as insured causes 
of loss and the sweet corn is damaged by hail or fire, appraisals will 
be made in accordance with Form FCI-78, ``Request to Exclude Hail and 
Fire''.
    (6) The commingled production of units will be allocated to such 
units in proportion to our liability on the harvested acreage of each 
unit.
    f. You must not abandon any acreage to us.
    g. You may not bring suit or action against us unless you have 
complied with all policy provisions. If a claim is denied, you may sue 
us in the United States District Court under the provisions of 7 U.S.C. 
1508(c). You must bring suit within 12 months of the date notice of 
denial is mailed to and received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fee, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date and submit to us the properly completed claim form 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semi-annually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury. Interest will be paid in 
accordance with this section beginning with all claims for payment of 
indemnity initially filed on or after March 1, 1985.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the sweet corn is planted for any crop year, any 
indemnity will be paid to the person(s) we determine to be beneficially 
entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. For the purposes of this section, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.

[[Page 267]]

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract, and such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
rights. If we pay you for your loss then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all sweet 
corn produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Any person 
designated by us will have access to such records and the farm for 
purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any crop 
year by giving written notice on or before the cancellation date 
preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity claim will be the date you sign 
the claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment of set-off are approved.
    d. The cancellation and termination dates are April 15.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by December 31 preceding the 
cancellation date (January 20, 1986, for the 1985, 1986 transition). 
Acceptance of any change will be conclusively presumed in the absence of 
any notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of sweet corn crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
sweet corn insurance in the county.
    b. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.

[[Page 268]]

    c. Crop year means the period within which the sweet corn is 
normally grown and is designated by the calendar year in which the sweet 
corn is normally harvested.
    d. Harvest means the removal of the ears and husks from the stalks 
for the purpose of delivery to the processor.
    e. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    f. Insured means the person who submitted the application accepted 
by us.
    g. Loss ratio means the ratio of indemnity(ies) to premium(s).
    h. Person means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    i. Service office means the office servicing your contract as shown 
on the application for insurance or such approved office as may be 
selected by you or designated by us.
    j. Tenant means a person who rents land from another person for a 
share of the sweet corn or a share of the proceeds therefrom.
    k. Unit means all insurable acreage of sweet corn in the county on 
the date of planting for the crop year:
    (1) In which you have 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the sweet corn on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office or by written agreement with us. We will determine units as 
herein defined when the acreage is reported. Errors in reporting such 
units may be corrected by us to conform to applicable guidelines when 
adjusting a loss. We may consider any acreage and share thereof reported 
by or for your spouse or child or any member of your household to be 
your bona fide share or the bona fide share of any other person having 
an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 1825, Jan. 14, 1985, as amended at 50 FR 49027, Nov. 29, 1985; 50 
FR 52758, Dec. 26, 1985; 51 FR 7546, Mar. 5, 1986; 51 FR 29205--29207, 
Aug. 15, 1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 54 
FR 20512, May 12, 1989; 55 FR 35888, Sept. 4, 1990]



PARTS 438-440  [RESERVED]






PART 441--TABLE GRAPE CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
441.1  Availability of table grape crop insurance.
441.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
441.3  OMB control numbers.
441.4  Creditors.
441.5  Good faith reliance on misrepresentation.
441.6  The contract.
441.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 37893, Oct. 27, 1986, unless otherwise noted.



       Subpart--Regulations for the 1987 and Succeeding Crop Years



Sec. 441.1  Availability of table grape crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
table grapes in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved

[[Page 269]]

by the Board of Directors of the Corporation.



Sec. 441.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for table grapes which will be included in the actuarial table 
on file in applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices set by the actuarial table 
for the crop year.



Sec. 441.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 441.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 441.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the table grape crop 
insurance contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto.
Requests for relief under this section must be submitted to the 
Corporation in writing.



Sec. 441.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the table grape 
crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 441.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the table grape crop as landlord, owner-operator, or tenant if the 
person wishes to participate in the program. The application shall be 
submitted to the Corporation at the service office on or before the 
applicable sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices

[[Page 270]]

and publishing a notice in the Federal Register upon the Manager's 
determination that no adverse selectivity will result during the 
extended period. However, if adverse conditions should develop during 
such period, the Corporation will immediately discontinue the acceptance 
of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1987 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a table grape 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1987 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Table Grape Crop Insurance Policy for the 
1987 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                   Table Grape--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Direct Mediterranean Fruit Fly damage; or;
    (7) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or subsection 9.e.(6).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good table grape management 
practices;
    (3) The failure or breakdown of irrigation equipment or facilities;
    (4) The failure to follow recognized good table grape irrigation 
practices;
    (5) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (6) Any cause not specified in subsection 1.a. as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any insurable variety of grapes grown 
for harvest as table grapes, grown on insured acreage on which the 
cultural practices to produce table grapes are carried out, and for 
which a guarantee and premium rate are set by the actuarial table.
    b. The acreage insured for each crop year will be grapes grown on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured grapes at the time insurance attaches. However, 
only for the purpose of determining the amount of indemnity, your share 
will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) On which the vines, after being set out, have not reached the 
number of growing seasons designated by the actuarial table;
    (2) Which has not produced an average of 150 lugs of table grapes 
per acre;
    (3) Which does not have acceptable records of acreage and production 
unless we agree, in writing, to insure acreage; or
    (4) With less than a 90 percent stand of bearing vines based on the 
original planting pattern, unless we agree, in writing, to insure such 
acreage.
    e. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good grape irrigation practice.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act

[[Page 271]]

of Congress, if we advise you of the limit prior to the date insurance 
attaches.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of grapes in the county on which cultural 
practices to produce table grapes are carried out and in which you have 
a share;
    b. The practice;
    c. Your share on the date insurance attaches; and
    d. The number of bearing vines (if less than 90 percent of a stand 
based on the original planting pattern).
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any grapes grown in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the reporting date, we may elect to 
determine, by unit, the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the sales closing date set by the actuarial table for submitting 
applications for the crop year.
    d. You must report production to us for the prior crop year before 
the sales closing date as established by the actuarial table. If you do 
not provide the required production report, we will assign a yield for 
the crop year for which the report is not furnished. The production 
report or assigned yield will be used to compute your production history 
for the purpose of determining your guarantee for the insured crop year. 
The yield assigned by us will be 75% of the yield assigned for the 
purpose of determining your guarantee for the prior crop year as 
adjusted for crop and vineyard conditions. If you have filed a claim for 
the previous crop year, the yield determined in adjusting your indemnity 
claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-fourth percent 
(1-\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches on February 1 and ends on the earliest of:
    a. Total destruction of the grapes on the unit;
    b. Discontinuance of cultural practices to produce table grapes;
    c. The date harvest would normally start on the unit on any acreage 
which will not be harvested as table grapes;
    d. Harvest;
    e. Discontinuance of harvesting of table grapes on the unit;
    f. Final adjustment of a loss; or
    g. The following applicable date of the calendar year in which the 
grapes are normally harvested:

------------------------------------------------------------------------
      State and county(ies)             Variety              Date       
------------------------------------------------------------------------
Arizona:                                                                
  All counties..................  Perlette..........  June 15.          
                                  Flame Seedless....  July 15.          
                                  All others........  July 31.          
California:                                                             
  Fresno, Kern, Kings, Madera,    Perlette..........  August 15.        
   and Tulare.                    Cardinal..........  August 15.        
                                  Exotic............  August 31.        
                                  Flame Seedless....  August 31.        
                                  Superior Seedless.  August 31.        
                                  Red Malaga........  September 15.     
                                  Queen.............  September 15.     
                                  Thompson Seedless.  September 15.     
                                  Black Rose........  September 30.     
                                  Italia............  September 30.     
                                  White Malaga......  October 15.       
                                  Ribier............  October 15.       
                                  Ruby Seedless.....  October 15.       
                                  All others........  October 31.       
  Merced, Stanislaus, and San     Flame Seedless....  September 15.     
   Joaquin.                       Thompson Seedless.  September 30.     
                                  Ribier............  October 15.       
                                  Flame Tokay.......  October 15.       
                                  All others........  October 31.       
  Riverside, and San Bernadino..  Beauty Seedless...  July 15           
                                  Perlette..........  July 15           
                                  All others........  July 31.          
------------------------------------------------------------------------

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:

[[Page 272]]

    (1) You must give us written notice if, during the period before 
harvest, the grapes on any unit are damaged and you decide not to 
further care for or harvest any part of them.
    (2) You must give us notice:
    (a) At least 15 days before the beginning of harvest if you 
anticipate a loss on any unit; or
    (b) Immediately, if damage occurs within 15 days prior to harvest or 
during harvest.
    (3) If you are going to claim an indemnity on any unit, you must 
give us notice not later than 72 hours after the earliest of:
    (a) Total destruction of the grapes on the unit;
    (b) Discontinuance of cultural practices to produce table grapes;
    (c) Discontinuance of harvest of any acreage on the unit; or
    (d) The date harvest would normally start if any acreage on the unit 
is not to be harvested as table grapes.
    (4) Unless notice has been given under subsection (3) above, and in 
addition to the other notices required by this subsection, if you are 
going to claim an indemnity on any unit, you must give us notice not 
later than 10 days after the earlier of:
    (a) Harvest of the unit; or
    (b) The calendar date for the end of the insurance period 
(Subsection 7.g.).
    b. You must obtain written consent from us before you destroy any of 
the grapes which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the end of the insurance period (see 
section 7).
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of grapes on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of grapes to be 
counted (see subsection 9.3.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (in lugs) to be counted for a unit will 
include all production harvested as table grapes and all appraised 
production, that meets the California Department of Food and Agriculture 
minimum standards.
    (1) Table grape production damaged by insurable causes within the 
insurance period that could be marketed for any use as other than table 
grapes will be determined by multiplying the greater of the total value 
of the grapes per ton or $50 times the number of tons and dividing that 
result by the highest price election available for the insured unit. 
This result will be the number of lugs to count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and any change in management 
practices (cluster thinning and removal);
    (b) Not less than the applicable guarantee for any acreage which is 
abandoned, damaged solely by an uninsured cause, or destroyed by you 
without our prior written consent;
    (c) Any unharvested production where table grape cultural practices 
were discontinued following an appraisal; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such acreage is:
    (a) Not harvested before the harvest of grapes becomes general in 
the country and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) If any grapes are harvested before normal maturity, the 
production of such grapes will be increased by the factor obtained by 
dividing the price per lug received for such grapes by the price per lug 
for fully matured grapes.
    (5) We may determine the amount of production of any unharvested 
grapes on the basis of field appraisals conducted after discontinuance 
of harvest or the end of the insurance period.
    (6) If you elect to exclude hail and fire as insured causes of loss 
and the grapes are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. You must not abandon any acreage to us.
    g. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring

[[Page 273]]

suit within 12 months of the date notice of denial of the claim is 
received by you.
    h. An indemnity will not be paid unless you comply with all policy 
provisions.
    i. We have a policy of paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the date insurance attaches for any crop year, any 
indemnity will be paid to the persons determined to be beneficially 
entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount.
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another person your right to an indemnity for the 
crop year, only in writing on our form, and with our approval. The 
assignee will have the right to submit the loss notices and forms 
required by the contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for 2 years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all grapes 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the

[[Page 274]]

amount is due. The date of payment of the amount due if deducted from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are January 31.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by October 31 preceding the 
cancellation date. Acceptance of change will be conclusively presumed in 
the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of table grape crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us. The table is available for public inspection in 
your service office, and shows the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
table grape insurance in the county.
    b. Cluster thinning and removal means removing parts of a cluster or 
the entire cluster of grapes.
    c. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will also be consider contiguous.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches and extending through normal harvest time and is designated by 
the calendar year in which the grapes are normally harvested.
    f. Direct Mediterranean fruit fly damage means the actual physical 
damage to the grapes on the unit which causes such grapes to be 
unmarketable and will not include unmarketability of such grapes as a 
direct result of a quarantine, boycott, or refusal to accept the grapes 
by any entity without regard to actual physical damage to such grapes.
    g. Harvest means picking the grapes from the vines.
    h. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    i. Insured means the person who submitted the application accepted 
by us.
    j. Loss ratio means the ratio of indemnity to premium.
    k. Lug means 22 pounds of table grapes in the Coachella Valley, 
California district, and 23 pounds in all other California districts.
    l. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Table grapes means the grapes which are grown for commercial 
sales as fresh grapes, on acreage which the cultural practices to 
produce fresh marketable grapes were carried out.
    o. Tenant means a person who rents land from another person for a 
share of the grapes or a share of the proceeds therefrom.
    p. Unit means all insurable acreage of grapes in the county located 
on contiguous land on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the grapes on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

[[Page 275]]

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with the Appeal Regulations, 
(7 CFR part 400, subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 37893, Oct. 27, 1986; 51 FR 41757, Nov. 19, 1986; 52 FR 3214, 
Feb. 3, 1987; 53 FR 46848, Nov. 21, 1988; 55 FR 35888, Sept. 4, 1990]



PART 442 [RESERVED]






PART 443--HYBRID SEED CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
443.1  Availability of hybrid seed crop insurance.
443.2  Premium rates, coverage levels, and amounts of insurance.
443.3  OMB control numbers.
443.4  Creditors.
443.5  Good faith reliance on misrepresentation.
443.6  The contract.
443.7  The application and policy.

    Authority: 7 U.S.C. 1506(l), 1506(p).

    Source: 51 FR 5697, Feb. 18, 1986, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 443.1  Availability of hybrid seed crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
hybrid seed in counties within limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 443.2  Premium rates, coverage levels, and amounts of insurance.

    (a) The Manager shall establish premium rates, coverage levels, and 
amounts of insurance for hybrid seed which will be included in the 
actuarial table in file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance per acre and a coverage level from 
among those levels and amounts shown on the actuarial table for the crop 
year.



Sec. 443.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 443.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefits under the contract.



Sec. 443.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the Hybrid Seed insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation of other erroneous 
action or advice by an agent or employee of the Corporation:

[[Page 276]]

    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00 finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto.

Requests for relief under this section must be submitted to the 
Corporation in writing.



Sec. 443.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the hybrid seed 
crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 443.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the hybrid seed crop as landlord, owner-operator, or tenant if the 
person wishes to participate in the program. The application shall be 
submitted to the Corporation at the service office on or before the 
applicable sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in polices issued under FCIC regulations for the 1986 
and succeeding crop years, a contract in the form provided for under 
this subpart will come into effect as a continuation of a hybrid seed 
insurance contract issued under such prior regulations, without the 
filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Hybrid Seed Crop Insurance Policy for the 
1986 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                    Hybrid Seed Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:

[[Page 277]]

    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(5).
    b. We will not insure against any loss of production due to:
    (1) The use of unadapted, incompatible or genetically deficient male 
or female seed;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good farming practices or the 
grower provisions of the seed contract;
    (4) The impoundment of water by any governmental, public, or private 
dam or reservoir project;
    (5) Frost or freeze after the date set by the actuarial table;
    (6) Inadequate germination even though a result of an insured cause 
of loss unless inspected and accepted by us before harvest is completed;
    (7) The failure to plant the male seed at a time sufficient to 
assure adequate pollination of the female plant;
    (8) The failure or breakdown of irrigation equipment or facilities;
    (9) The failure to follow recognized good hybrid seed irrigation 
practices; or
    (10) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any type of female seed (``crop'') you 
elect:
    (1) Which is planted for harvest and the production is intended for 
the purpose of commercial seed to produce a type of the crop for grain 
or silage;
    (2) Which is grown under a contract executed with a seed company 
before the acreage reporting date;
    (3) Which is grown on insured acreage; and
    (4) For which an amount of insurance per acre and premium rate are 
set by the actuarial table.
    b. An instrument in the form of a ``lease'' under which you retain 
control of the acreage on which the insured crop is grown and which 
provides for delivery of the crop under certain conditions and at a 
stipulated price will be treated as a contract under which you have the 
share in the crop.
    c. The acreage insured for each crop year will be the crop planted 
on insurable acreage as designated by the actuarial table and in which 
you have a share, as reported by you or as determined by us, whichever 
we elect.
    d. The insured share is your share as landlord, owner-operator, or 
tenant in the insured crop at the time of planting. However, only for 
the purpose of determining the amount of indemnity, your share will not 
exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    e. We do not insure any acreage:
    (1) Which is destroyed, it is practical to replant the crop, and 
such acerage is not replanted;
    (2) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (3) Which is irrigated and an irrigated practice is not provided by 
the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (4) Of a volunteer crop;
    (5) Planted to a type or variety of the crop not established as 
adapted to the area or indicated as noninsurable by the actuarial table;
    (6) Planted with another type of crop;
    (7) Occupied by rows planted with a mixture of female and male seed;
    (8) Planted and occupied by the male plants;
    (9) Planted for experimental purposes;
    (10) Planted for any purpose other than for commercial seed; or
    (11) Grown under a contract with any seed company and that seed 
company refuses to provide us with the records we require to determine 
the dollar value per bushel of production for each type and variety.
    f. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time of planting, to carry out a good crop 
irrigation practice.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

             3. Report of Acreage, Share, Type, and Practice

    You must report on our form:
    a. All the acreage of the crop planted in the county in which you 
have a share;
    b. The practice;
    c. The type; and
    d. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any acreage of the insured 
crop in the county. This report must be submitted annually on or before 
the reporting date established by the actuarial table. All indemnities 
may be determined on the basis of information you submit on this

[[Page 278]]

report. If you do not submit this report by the reporting date, we may 
elect to determine, by unit, the insured acreage, share, practice, and 
type or we may deny liability on any unit. Any report submitted by you 
may be revised only upon our approval.

               4. Coverage Levels and Amounts of Insurance

    a. The amounts of insurance and coverage levels are contained in the 
actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and the amount of insurance per 
acre on or before the sales closing date set by the actuarial table for 
submitting applications for the crop year.

                            5. Annual premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the amount of insurance per acre 
times the premium rate, times the insured acreage, times your share at 
the time of planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.
    c. If you are eligible for a premium reduction in excess of 5 
percent based on insuring experience through the 1983 crop year under 
the terms of the experience table contained in the hybrid seed policy in 
effect for the 1984 crop year, you will continue to receive the benefit 
of that reduction subject to the following conditions:
    (1) No premium reduction will be retained after the 1991 crop year;
    (2) The premium reduction will not increase because of favorable 
experience;
    (3) The premium reduction will decrease because of unfavorable 
experience in accordance with the terms of the policy in effect for the 
1984 crop year;
    (4) Once the loss ratio exceeds .80, no further premium reduction 
will apply; and
    (5) Participation must be continuous.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each type and variety when both the male 
plant seed and the female plant seed of that type and variety are 
planted in accordance with the production management practices of the 
seed company. Insurance terminates at the earliest of:
    a. Total destruction of the crop;
    b. Combining, threshing, or picking;
    c. Final adjustment of a loss; or
    d. The calendar date established by the actuarial table.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us prompt written notice if:
    (a) During the period before harvest, the crop on any unit is 
damaged and you decide not to further care for or harvest any part of 
it;
    (b) You want our consent to put the acreage to another use; or
    (c) After consent to put acreage to another use is given, additional 
damage occurs. Insured acreage may not be put to another use until we 
have appraised the crop and given written consent. We will not consent 
to another use until it is too late to replant. You must notify us when 
such acreage has been put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate either a germination rate of 
less than 80 percent or a loss on any unit.
    (3) If probable loss is determined within 15 days prior to or during 
harvest, immediate notice must be given and a representative area of the 
field of the unharvested crop (at least 10 feet wide and the entire 
length of the field) must remain unharvested for a period of 15 days 
from the date of notice, unless we give you written consent to harvest 
the area.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, you must give us notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the crop on the unit;
    (b) Harvest of the unit; or
    (c) The calendar date for the end of the insurance period.
    b. You must obtain written consent from us before you destroy any of 
the crop which is not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    (a) Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the crop on the unit;
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.

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    b. We will not pay any indemnity unless you:
    (1) Establish the total production for the type and variety of the 
crop on the unit at the time of harvest and that any loss of production 
has been directly caused by one or more of the insured causes during the 
insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre;
    (2) Subtracting from this product the sum of:
    (a) The dollar amount obtained by multiplying seed production to 
count for each type and variety (see section 9e) by the respective 
dollar value per bushel of production plus;
    (b) The dollar amount obtained by multiplying non-seed production to 
count (see section 9e) by the local market price of such production on 
the earlier of the date the loss is adjusted or the date such production 
is sold; and
    (3) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the amount of insurance on the unit will be computed on the information 
reported, but the value of all production from insurable acreage, 
whether or not reported as insurable, will count against the amount of 
insurance.
    e. The total production to be counted for a unit will include all 
harvested and appraised seed and non-seed production.
    (1) For crop type field corn:
    (a) Total seed production to count will include:
    (i) All corn delivered to and accepted by the seed company;
    (ii) All corn which would pass over 16/64 screen unless the 
germination rate is less than 80 percent warm test as determined by a 
certified seed test conducted from a clean sample taken at the time of 
delivery or if the mature corn is appraised, at the time of appraisal; 
and
    (iii) All harvested and appraised production which does not qualify 
under paragraphs (i) and (ii) above because the damage was caused by 
uninsured causes.
    (b) For the purpose of determining the quantity of mature 
production:
    (i) Shelled corn will be adjusted .12 percent for each .1 percentage 
point of moisture to 15.5; and
    (ii) Ear corn will be measured at 70 pounds of ear corn equaling 56 
pounds (one bushel) of shelled corn. The weight of ear corn required to 
equal one bushel of shelled corn will be increased 2.0 pounds for each 
percentage point of moisture in excess of 14 percent.
    (c) When records of seed production, provided by the seed company, 
have been adjusted to a shelled corn basis of 15.5 percent moisture, and 
56-pound test weight (b) above will not apply for harvested production 
and the records of the seed company will be used to determine the amount 
of indemnity; provided, that such production records were based on the 
same criteria as the criteria used to determine the dollar value per 
bushel.
    (2) Appraised production to count as seed production will include:
    (a) Unharvested production on harvested acreage and the percent of 
the approved yield lost due to uninsured causes;
    (b) Not less than the dollar amount of insurance for any acreage 
which is abandoned or put to another use without our prior written 
consent or damaged solely by an uninsured cause;
    (c) Any appraisal on non-mature production; and
    (d) Any appraised production on unharvested acreage.
    (3) Any appraisal we have made on insured acreage and given written 
consent to be put to another use will be considered as seed production 
unless such acreage is:
    (a) Not put to another use before harvest of the crop becomes 
general in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested acreage of the crop 
may be determined on the basis of field appraisals conducted after the 
end of the insurance period.
    (5) If you elect to exclude hail and fire as insured causes of loss 
and the crop is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. You must not abandon any acreage to us.
    g. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    h. An indemnity will not be paid unless you comply with all policy 
provisions.
    i. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to

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timely pay is not due to your failure to provide information or other 
material necessary for the computation or payment of the indemnity. The 
interest rate will be that established by the Secretary of the Treasury 
under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), 
and published in the Federal Register semiannually on or about January 1 
and July 1. The interest rate to be paid on any indemnity will vary with 
the rate announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the crop is planted for any crop year, any indemnity 
will be paid to the persons determined to be beneficially entitled 
thereto.
    k. If you have other insurance against the perils insured under this 
contract and damage as a result of those perils occurs during the 
insurance period, we will be liable for loss due to those perils only 
for the smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from those perils exceeds the indemnity paid 
or payable under such other insurance. For the purpose of this section, 
the amount of loss from those perils will be the difference between the 
fair market value of the production on the unit before the loss and 
after the loss. The fair market value of production on the unit before 
the loss is limited to 1\1/2\ times the highest price election 
available.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you or the seed company have 
concealed or misrepresented any material fact or committed any fraud 
relating to the contract. Such voidance will be effective as of the 
beginning of the crop year with respect to which such act or omission 
occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year only on our form and with our approval. The assignee will have 
the right to submit the loss notices and forms required by the contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Becuse you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will paid to you.

                     14. Records and Access to Farm

    You must keep, for 2 years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all of the 
crop produced on each unit, including separate records showing the same 
information for production for any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice to the other on or before 
the cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) A payment under another program administered by United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are April 15.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches

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for any crop year, the contract will continue in force through the crop 
year and terminate at the end thereof. Death of a partner in a 
partnership will dissolve the partnership unless the partnership 
agreement provides otherwise. If two or more persons having a joint 
interest are insured jointly, death of one of the persons will dissolve 
the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your amount of insurance is no longer offered, the actuarial 
table will provide the amount of insurance which you are deemed to have 
elected. All contract changes will be available at your service office 
by December 31 preceding the cancellation date. Acceptance of changes 
will be conclusively presumed in the absence of notice from you to 
cancel the contract.

                17. Late Planting and Prevented Planting

    (a) Insurance will be provided for acreage planted to the insured 
crop during the late planting period (see subparagraph (c)), and acreage 
you were prevented from planting (see subparagraph (d)). These coverages 
provide reduced amounts of insurance for such acreage. The reduced 
amounts of insurance will be combined with the amount of insurance for 
timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. For example assume you insure one 
unit in which you have a 100 percent share. The unit consists of 200 
acres of the same type and variety, of 100 percent share. The unit 
consists of 200 acres of the same type and variety, of which 150 acres 
are occupied by the female plant. Fifty acres were planted timely, 50 
acres were planted 7 days after the final planting date (late planted), 
and 50 acres are unplanted and eligible for prevented planting coverage. 
To calculate the amount of any indemnity which may be due to you, the 
amount of insurance will be computed as follows:
    (1) For timely planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre amount of 
insurance for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre amount of 
insurance for timely planted acreage by:
    (i) Forty percent (0.40) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty percent (0.20) and multiply the result by the 50 acres 
you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (ii) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subparagraph 17(d)(1)(iii))).
    The total of the three calculations will be the amount of insurance 
for the unit. Your premium will be based on the result of multiplying 
the per acre amount of insurance for timely planted acreage by the 150 
insured crop acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For acreage planted after the final planting date, but on or 
before 25 days after the final planting date, the amount of insurance 
for each acre will be reduced for each day planted after the final 
planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 3 (Report of Acreage, 
Share, Type and Practice), you must report the dates on which the 
acreage is planted within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting the insured crop 
during the late planting period, the acreage reporting date will be the 
later of:
    (i) The acreage reporting date contained in the Actuarial Table; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 18(w)), you may elect:
    (i) To plant the insured crop during the late planting period. The 
amount of insurance for such acreage will be determined in accordance 
with paragraph 17(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the amount of insurance for such 
acreage will be

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forty percent (40%) of the amount of insurance for timely planted acres. 
For example, if your amount of insurance for timely planted acreage is 
200 dollars per acre, your prevented planting amount of insurance would 
be 80 dollars per acre (200 dollars multiplied by 0.40). If you elect to 
plant the insured crop after the late planting period, production to 
count for such acreage will be determined in accordance with subsection 
9e.; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting amount of insurance will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) An amount of insurance equal to twenty percent (20%) of the 
amount of insurance for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your amount of insurance for timely planted 
acreage is 200 dollars per acre, your prevented planting amount of 
insurance would be 40 dollars per acre (200 dollars multiplied by 0.20). 
You may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate, on or before the sales closing date, on your application or on 
a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the yield upon which your amount of insurance is based.
    (3) In addition to the provisions of section 7 (Insurance Period), 
the insurance period for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a hybrid seed crop insurance policy 
for the 1996 crop year, prevented planting coverage will begin on the 
1996 sales closing date for the insured crop in the county. If the 
hybrid seed coverage remains in effect for the 1997 crop year (is not 
terminated or canceled during or after the 1996 crop year, except the 
policy may have been canceled to transfer the policy to a different 
insurance provider, if there is no lapse in coverage), prevented 
planting coverage for the 1997 crop year began on the 1996 sales closing 
date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) Eligible acreage will not exceed the number of acres required to 
be grown in the current crop year under a contract executed with a seed 
company prior to the acreage reporting date.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres for which you had adequate irrigation 
facilities prior to the insured cause of loss which prevented you from 
planting.
    (iii) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you

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provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of acres of the insured crop timely planted and late 
planted. For example, assume you have 100 acres eligible for prevented 
planting coverage in which you have a 100 percent (100%) share. The 
acreage is located in a single FSA Farm Serial Number which you insure 
as two separate optional units consisting of 50 acres each. If you 
planted 60 acres of the insured crop on one optional unit and 40 acres 
of the insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e., 100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 3 (Report of 
Acreage, Share, Type and Practice), you must report by unit any 
insurable acreage that you were prevented from planting. This report 
must be submitted on or before the acreage reporting date. For the 
purpose of determining acreage eligible for a prevented planting amount 
of insurance the total amount of prevented planting and planted acres 
cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.
    (6) If the amount of premium you are required to pay (gross premium 
less our subsidy) for the prevented planting acreage exceeds the 
prevented planting liability on a unit, prevented planting coverage will 
not be provided for that unit (no premium will be due and no indemnity 
will be paid for such acreage).

                          18. Meaning of Terms

    (a) Actuarial table--the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the coverage levels, premium rates, 
amounts of insurance, practices, insurable and uninsurable acreage, and 
related information regarding insurance for the crop in the county.
    (b) Amount of insurance--the number of dollars per acre that results 
from subtracting the minimum payment (in bushels) provided by the seed 
company from the selected coverage level's county yield contained in the 
Actuarial Table and multiplying the result by the selected price 
election. If the minimum payment provided by the seed company is stated 
as a dollar amount, it will be converted to a bushel equivalent by 
dividing the dollar amount by the selected price election.
    (c) Approved yield--an expected yield level for a specific variety, 
in bushels per acre, determined by us and used to establish the value of 
seed production for the purpose of determining the amount of indemnity.
    (d) ASCS--the Agricultural Stabilization and Conservation Service of 
the United States Department of Agriculture.
    (e) Commercial seed--the offspring of two individual seeds of 
different genetic character which is produced as a result of crossing. A 
portion of this resultant offspring is the product intended for the 
purpose or use on a commercial basis by an agricultural producer to 
produce a field crop type for grain or silage.
    (f) County--(1) The County shown on the application; and
    (2) Any additional land located in a local producing area bordering 
on the county, as shown by the Actuarial Table.
    (g) Crop year--the period within which the crop is normally grown 
and is designated by the calendar year in which the crop is normally 
harvested.
    (h) Days--calendar days.
    (i) Dollar value per bushel--the value determined by dividing the 
amount of insurance per acre for timely planted acreage by the result of 
multiplying the approved yield by the coverage level percentage you 
elect.
    (j) Female plant--the plants grown for the purpose of producing 
commercial seed.
    (k) Final planting date--the date contained in the Actuarial Table 
by which the insured crop must initially be planted in order to be 
insured for the full amount of insurance.
    (l) Harvest--the completion of combining, threshing, or picking of 
the crop on any acreage.
    (m) Inadequate germination--less than 80 percent (80%) of the seed 
produced from female plants germinated as determined by a warm test 
using clean seed.

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    (n) Insurable acreage--the land classified as insurable by us and 
shown as such by the Actuarial Table.
    (o) Insured--the person who submitted the application accepted by 
us.
    (p) Irrigated practice--a method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated amount of insurance on the irrigated crop acreage.
    (q) Late planted--acreage planted during the late planting period.
    (r) Late planting period--the period which begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (s) Loss ratio--the ratio of indemnity to premium.
    (t) Male plant--the plants grown for the purpose of pollinating 
female plants.
    (u) Non-seed production--all seed with inadequate germination. 
(Designation as non-seed production under this definition may be 
production to count under section 9 through appraisal if the inadequate 
germination was due to an uninsurable cause. (See subparagraph 
9.e.(2)(a)).
    (v) Person--an individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a State 
or a political subdivision or agency of a State.
    (w) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (x) Sample--at least 3 pounds of shelled corn representative (field 
run) for each variety of seed corn grown on the unit.
    (y) Seed company--a company which contracts with a grower to produce 
or grow for the production of hybrid corn seed.
    (z) Seed production--all seed with a germination rate of at least 80 
percent (80%) on a warm test using clean seed.
    (aa) Service office--the office servicing your contract as shown on 
the application for insurance or such other approved office as may be 
selected by you or designated by us.
    (bb) Shelled-corn--the grain (corn) after its removal from the cob.
    (cc) Tenant--a person who rents land from another person for a share 
of the crop or a share of the proceeds therefrom.
    (dd) Timely planted--the insured crop planted by the final planting 
date, as established by the Actuarial Table, for the insured crop in the 
county to be planted for harvest in the crop year.
    (ee) Type--the crop grown: i.e., corn.
    (ff) Unit--all insurable acreage of the insured crop in the county 
on the date of planting for the crop year:
    (1) In which you have a 100 percent (100%) share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis. Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the crop on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported.
    Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.
    (gg) Variety--the seed produced from a pair of genetically 
identifiable parents.

                        19. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           20. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               21. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    22. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 5697, Feb. 18, 1986; 51 FR 8183, Mar. 10, 1986, as amended at 51 
FR 29205, Aug. 15, 1986; 52 FR 3214, Feb. 3, 1987; 54 FR 20373, May 11, 
1989; 55 FR 35888, Sept. 4, 1990; 58 FR 67645, Dec. 22, 1993; 60 FR 
62722, 62723, Dec. 7, 1995]

[[Page 285]]



PART 444 [RESERVED]






PART 445--PEPPER CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
445.1  Availability of pepper crop insurance.
445.2  Premium rates, coverage levels, and amounts of insurance.
445.3  OMB control numbers.
445.4  Creditors.
445.5  Good faith reliance on misrepresentation.
445.6  The contract.
445.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 11293, Apr. 2, 1986, unless otherwise noted.



       Subpart--Regulations for the 1987 and Succeeding Crop Years



Sec. 445.1  Availability of pepper crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
peppers in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 445.2  Premium rates, coverage levels, and amounts of insurance.

    (a) The Manager shall establish premium rates, coverage levels, and 
amounts of insurance for peppers which will be included in the actuarial 
table on file in the applicable service offices for the county and which 
may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance per acre and a coverage level from 
among those levels and amounts set by the actuarial table for the crop 
year.



Sec. 445.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 445.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 445.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the pepper crop insurance 
contract, whenever: (a) An insured under a contract of crop insurance 
entered into under these regulations, as a result of a misrepresentation 
or other erroneous action or advice by an agent or employee of the 
Corporation: (1) Is indebted to the Corporation for additional premiums; 
or (2) has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and (b) the Board of Directors of the 
Corporation, or the Manager in cases involving not more than $100,000.00 
finds that: (1) An agent or employee of the Corporation did in fact make 
such misrepresentation or take other erroneous action or give erroneous 
advice; (2) said insured relied thereon in good faith; and (3) to 
require the payment of the additional premiums or to deny such insured's 
entitlement to the indemnity would not be fair and equitable, such 
insured shall be granted relief the same as if otherwise entitled 
thereto. Requests for relief under this section must be submitted to the 
Corporation in writing.



Sec. 445.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the pepper crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms

[[Page 286]]

referred to in the contract are available at the applicable service 
offices.



Sec. 445.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the pepper crop as landlord, owner-operator, or tenant if the person 
wishes to participate in the program. The application shall be submitted 
to the Corporation at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1987 and succeeding crop years, a contract in the form provided for 
under this subpart will come into effect as a continuation of a pepper 
insurance contract issued under such regulations, without the filing of 
a new application.
    (d) The application for the 1987 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Pepper Crop Insurance Policy for the 1987 
and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      Pepper--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Excessive rain;
    (2) Frost;
    (3) Freeze;
    (4) Hail;
    (5) Fire;
    (6) Tornado;
    (7) Tropical depression; or
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after the beginning of planting; unless those causes are 
excepted, excluded, or limited by the actuarial table or section 
9.e.(6).
    b. We will not insure against any loss of production due to:
    (1) Disease or insect infestation;
    (2) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good pepper farming practices;
    (4) The impoundment of water by any governmental, public, or private 
dam or reservoir project;
    (5) The failure or breakdown of irrigation equipment or facilities;
    (6) The failure to follow recognized good pepper irrigation 
practice; or
    (7) Any cause not specified in section 1.a. as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be peppers planted for harvest as fresh 
market peppers, grown on insured acreage, and for which an amount of 
insurance and premium rate are set by the actuarial table.
    b. The acreage insured for each crop year will be peppers planted on 
irrigated acreage as designated insurable by the actuarial

[[Page 287]]

table and in which you have a share, as reported by you or as determined 
by us, whichever we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured peppers at the time of each planting period. 
However, only for the purpose of determining the amount of indemnity, 
your share will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage of peppers grown by any person if 
the person had not previously:
    (1) Grown peppers for commercial sales; or
    (2) Participated in the management of the pepper farming operation.
    e. We do not insure any acreage:
    (1) Of peppers grown for direct consumer marketing;
    (2) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (3) Which is not irrigated;
    (4) On which peppers are not grown on plastic mulch unless provided 
for by the actuarial table;
    (5) On which tomatoes, peppers, eggplants or tobacco have been grown 
and the soil was not fumigated or otherwise properly treated before 
planting peppers;
    (6) Which was planted to peppers the preceding planting period, 
unless the pepper plants of the preceding planting period were destroyed 
less than:
    (a) 30 days after the date of planting; or
    (b) 60 days after the date of direct seeding;
    (7) Which is destroyed, it is practical to replant to peppers, and 
such acreage is not replanted (the unavailability of plants is not a 
valid reason for failing to replant);
    (8) Initially planted after the final planting date set by the 
actuarial table;
    (9) Of volunteer peppers;
    (10) Planted to a type or variety of peppers not established as 
adapted to the area or excluded by the actuarial table;
    (11) Planted for experimental purpose; or
    (12) Planted with another crop.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

                3. Report of Acreage, Share, and Practice

    You must report at the time of each planting period on our form:
    a. All the acreage of fall, winter and spring-planted peppers in the 
county in which you have a share;
    b. The practice, including the bed size; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any pepper plantings in the 
county. This report must be submitted for each planting period on or 
before the reporting date established by the actuarial table for each 
planting period. All indemnities may be determined on the basis of 
information you submit on this report. If you do not submit this report 
by the reporting date, we may elect to determine, by unit, for each 
planting period, the insured acreage, share, and practice or we may deny 
liability on any unit for any planting. Any report submitted by you may 
be revised only upon our approval.

               4. Coverage Levels and Amounts of Insurance

    a. The coverage levels and amounts of insurance are contained in the 
actuarial table.
    b. Coverage level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and amount of insurance on or 
before the sales closing date set by the actuarial table for submitting 
applications for the crop year.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the amount of insurance, times the 
premium rate, times the insured acreage, times your share at the time of 
each planting.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any replant payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies.

                           7. Insurance Period

    Insurance attaches when the peppers are planted in each planting 
period and ends at the earliest of:
    a. Total destruction of the peppers on the unit;
    b. Discontinuance of harvest of peppers on the unit;
    c. The date harvest should have started on the unit on any acreage 
which will not be harvested;
    d. 150 days after the date of direct seeding, transplanting or 
replanting;
    e. Final harvest; or
    f. Final adjustment of loss.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:

[[Page 288]]

    (a) You want our consent to replant peppers damaged due to any 
insured cause (see subsection 9.f.);
    (b) During the period before harvest, the peppers on any unit are 
damaged and you decide not to further care for or harvest any part of 
them;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use in given, additional 
damage occurs.
    Insured acreage may not be put to another use until we have 
appraised the peppers and given written consent. We will not consent to 
another use until it is too late to replant. You must notify us when 
such acreage is replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is determined within 15 days prior to or during 
harvest and you are going to claim an indemnity on any unit, you must 
give us notice not later than 72 hours after the earliest of:
    (a) Total destruction of the peppers on the unit;
    (b) Discontinuance of harvest of any acreage on the unit;
    (c) The date harvest would normally start if any acreage on the unit 
is not to be harvested; or
    (d) 150 days after the direct seeding, transplanting or replanting 
of the peppers (see section 7).
    b. You may not destroy or replant any of the peppers on which a 
replanting payment will be claimed until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the peppers which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peppers on the unit;
    (2) Discontinuance of harvesting on the unit; or
    (3) The date harvest should have started on the unit on any acreage 
which will not be harvested.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production and the value received for all 
peppers on the unit and that any loss of production or value has been 
directly caused by one or more of the insured causes during the 
insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance times 
the percentage for the state of production defined by the actuarial 
table;
    (2) Subtracting therefrom the total value of production to be 
counted (see subsection 9.e.); and
    (3) Multiplying this result by your share.
    d. If the information reported by you under section 3 of this policy 
results in a lower premium than the actual premium determined to be due, 
the amount of insurance on the unit will be computed on the information 
reported, but the value of all production from insurable acreage, 
whether or not reported as insurable, will count against the amount of 
insurance.
    e. The total value of production to be counted for a unit will 
include all harvested and appraised production.
    (1) The total value of harvested production will be the greater of:
    (a) The dollar amount obtained by multiplying the number of 1\1/9\ 
bushels of peppers harvested on the unit by $4.00; or
    (b) The dollar amount obtained by multiplying the number of 1\1/9\ 
bushels of peppers sold by the price received for each 1\1/9\ bushel of 
peppers minus allowable cost set by the actuarial table. However, such 
price must not be less than zero for any 1\1/9\ bushel.
    (2) The value of appraised production to be counted will include:
    (a) The value of the potential production on any peppers that have 
not been harvested the third time and the value of unharvested mature 
green and red peppers;
    (b) The value of the potential production lost due to uninsured 
causes; and
    (c) Not less than the dollar amount of insurance per acre for any 
acreage abandoned or put to another use without our prior written 
consent or which is damaged solely by an uninsured cause.
    The value of any appraised production will not be less than the 
dollar amount obtained by multiplying the number of 1\1/9\ bushels of 
peppers appraised by $4.00.
    (3) Unharvested peppers damaged or defective due to insurable causes 
and which cannot be marketed will not be counted as production.
    (4) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of peppers becomes general 
in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (5) The amount and value of production of any unharvested peppers 
may be determined

[[Page 289]]

on the basis of field appraisals conducted after the end of the 
insurance period.
    (6) If you elect to exclude hail and fire as insured causes of loss 
and the peppers are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78-A, ``Request to Exclude Hail and Fire.''
    f. A replanting payment may be made on any insured peppers replanted 
after we have given consent and the acreage replanted is at least the 
lesser of 20 acres or 20 percent of the insured acreage as determined on 
the final planting date for the planting period. The acreage to be 
replanted must have sustained a loss in excess of 50 percent of the 
plant stand for the unit.
    (1) No replanting payment will be made on acreage on which a 
replanting payment has been made during the current planting period for 
the crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting, but will not exceed the product obtained by 
multiplying $300.00 per acre by your share.
    (3) The Corporation will transfer the original liability to the 
replanted crop without reduction by the amount of the replant payment 
and without increase in the original premium charged for insurance 
coverage when the crop is replanted in accordance with the requirements 
of the original planting.
    (4) If seasonal conditions dictate replanting by broadcast method, 
and such method differs from the requirements of the original planting, 
the Corporation will transfer the original liability to the replanted 
crop reduced by the amount of the replant payment and without increase 
in the original premuim charged for insurance coverage.

If the information reported by you results in a lower premium than the 
actual premium determined to be due, the replanting payment will be 
reduced proportionately.
    g. You must not abandon any acreage to us.
    h. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    i. An indemnity will not be paid unless you comply with all policy 
provisions.
    j. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
established by the Secretary of the Treasury under section 12 of the 
Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    k. If you die, disappear or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the peppers are planted for any crop year, any indemnity 
will be paid to the persons determined to be beneficially entitled 
thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

[[Page 290]]

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all peppers 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such payment and setoff 
are approved.
    d. The cancellation and termination dates are July 31.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise.
    If two or more persons having a joint interest are insured jointly, 
death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your amount of insurance at which indemnities are computed is 
no longer offered, the actuarial table will provide the amount of 
insurance which you are deemed to have elected. All contract changes 
will be available at your service office by April 30 preceding the 
cancellation date. Acceptance of changes will be conclusively presumed 
in the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of pepper crop insurance:
    a. Acre means 43,560 square feet of plastic mulch or equivalent row 
area of not more than 6 foot widths (6-foot bed) on which at least 7,260 
linear feet (rows) are planted.
    b. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the amount of insurance, coverage levels, 
premium rates, practices, insurable and uninsurable acreage, and related 
information regarding pepper insurance in the county.
    c. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    d. Crop year means the period within which the peppers are normally 
grown beginning August 1 and continuing through the harvesting of the 
spring-planted peppers and is designated by the calendar year in which 
the spring-planted peppers are normally harvested.
    e. Excessive rain means more than 10 inches of rain on the pepper 
field within a 24-hour period, after the peppers have been seeded or 
transplanted.
    f. Freeze means the condition of air temperatures over a widespread 
area remaining sufficiently at or below 32 degrees Fahrenheit to cause 
crop damage.
    f. Frost means the condition of air temperature around the plant 
falling to 32 degrees Fahrenheit or below.
    h. Harvest means the final picking of marketable peppers on the 
unit.
    i. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    j. Insured means the person who submitted the application accepted 
by us.
    k. Loss ratio means the ratio of indemnity to premium.

[[Page 291]]

    l. Mature green pepper means a pepper which has reached the stage of 
development that will withstand normal handling and shipping.
    m. Peppers grown for direct consumer marketing means peppers grown 
for the purpose of selling directly to the consumer and which are grown 
on acreage not subject to an agreement between producer and packer to 
pack the production (the producer-packer agreement must be executed 
before you report your acreage).
    n. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    o. Planting means transplanting the pepper plant in the field or 
direct seeding in the field.
    p. Planting period means the peppers planted within the dates set by 
the actuarial table, as fall-planted, winter-planted or spring-planted.
    q. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    r. Potential production means the number of 1\1/9\ bushels of mature 
green peppers which the pepper plants would produce or would have 
produced, per acre, by the end of the insurance period.
    s. Replanting means performing the cultural practices necessary to 
replant insured acreage to peppers.
    t. Replant payment means that payment made to the insured in 
accordance with the provisions of subsection 9.f. of this policy which 
payment is subject to offset for premium owed.
    u. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    v. Tenant means a person who rents land from another person for a 
share of the peppers or a share of the proceeds therefrom.
    w. Tropical depression means only a large-scale, atmospheric wind-
and-pressure system characterized by low pressure at its center and 
counterclockwise circular wind motion which has been identified by the 
United States Weather Service in which the minimum sustained surface 
wind (1-minute mean) is 33 knots per hour (38 miles per hour) or more at 
the U.S. Weather Service reporting station nearest to the crop damage at 
the time of loss.
    x. Unit means all insurable acreage of peppers for each planting 
period in the county on the date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.

Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the peppers on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office. Units will be determined when the acreage is reported. Errors in 
reporting units may be corrected by us to conform to applicable 
guidelines when adjusting a loss. We may consider any acreage and share 
thereof reported by or for your spouse or child or any member of your 
household to be your bona fide share or the bona fide share of any other 
person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with the Appeal Regulations (7 
CFR part 400--subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 11293, Apr. 2, 1986, as amended at 51 FR 29205, Aug. 15, 1986; 52 
FR 3214, Feb. 3, 1987; 52 FR 17547-17549, May 11, 1987; 55 FR 35888, 
Sept. 4, 1990]



PART 446--WALNUT CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
446.1  Availability of walnut crop insurance.

[[Page 292]]

446.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
446.3  OMB control numbers.
446.4  Creditors.
446.5  Good faith reliance on misrepresentation.
446.6  The contract.
446.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77 as 
amended (7 U.S.C. 1506, 1516).

    Source: 50 FR 43687, Oct. 29, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 446.1  Availability of walnut crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
walnuts in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 446.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for walnuts which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 446.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
title 7 CFR.



Sec. 446.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 446.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the walnut insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation: (1) Is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00 finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Application for relief 
under this section must be submitted to the Corporation in writing.



Sec. 446.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the walnut crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.

[[Page 293]]



Sec. 446.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the walnut crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a walnut 
contract issued under such prior regulations, without the filing of a 
new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Walnut Insurance Policy for the 1986 and 
succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      Walnut Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Direct Mediterranean Fruit Fly damage; or
    (7) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(3).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing of you, any member of 
your household, your tenants or employees;
    (2) The failure to follow recognized good walnut farming practices;
    (3) The impoundment of water by any governmental, public or private 
dam or reservoir project;
    (4) The failure to carry out a good walnut irrigation practice;
    (5) The failure or breakdown of irrigation equipment or facilities; 
or
    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be English walnuts (excluding black 
walnuts) hereafter called ``walnuts'' which are grown on insured acreage 
and for which a guarantee and premium rate are provided by the actuarial 
table.
    b. The acreage insured for each crop year will be walnuts grown on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured walnuts at the time insurance attaches. However, 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) On which the trees have not reached the ninth growing season 
after being set out, unless we agree, in writing, to insure such 
acreage; or

[[Page 294]]

    (2) Planted with a crop other than walnuts.
    e. If insurance is provided for an irrigated practice you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good walnut irrigation practice.
    f. Insurance may attach only by written agreement with us on any 
unit which consists of less than 5 acres of insurable walnut trees.
    g. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of walnuts in the county in which you have a 
share;
    b. The practice; and
    c. Your share on the date insurance attaches.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any walnuts grown in the 
county. This report must be submitted annually on or before March 1. All 
indemnities may be determined on the basis of information you submit on 
this report. If you do not submit this report by March 1, we may elect 
to determine by unit the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (ninth growing season and older) 
is reduced more than 10 percent from the preceding calendar year as a 
result of damage occurring within that year, the production guarantee 
will be reduced 1 percent for each percent reduction in excess of 10 
percent.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the closing date for submitting applications for the crop year as 
established by the actuarial table.
    e. You must furnish a report of production to use for the previous 
crop year prior to the sales closing date for the subsequent crop year 
as established by the actuarial table. If you do not provide the 
required production report we will assign a yield for the crop year for 
which the report is not furnished. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your guarantee for the subsequent crop year. The yield 
assigned by us will be 75% of the yield assigned for the purpose of 
determining your guarantee for the present crop year. If you have filed 
a claim for the previous crop year, the yield determined in adjusting 
your indemnity claim will be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on March 1 and ends at the 
earliest of:
    a. Total destruction of the walnuts;
    b. Harvest of the walnuts;
    c. Final adjustment of a loss; or
    d. November 15.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if, during the period before 
harvest, the walnuts on any unit are damaged and you decide not to 
further care for them.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined or if damage occurs during 
harvest, immediate notice must be given.
    (4) In addition to the notices required by this section, if you are 
going to claim an indemnity on any unit, we must be given notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the walnuts on the unit;
    (b) Harvest of the unit; or
    (c) November 15 of the crop year.
    b. You must obtain written consent from us before you destroy any of 
the walnuts which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

[[Page 295]]

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the walnuts on the unit;
    (2) Harvest of the unit; or
    (3) November 15 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of walnuts on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of walnuts to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes and failure to follow recognized 
good walnut farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
prior written consent; and
    (c) Any appraised production on unharvested acreage.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Marketed; or
    (b) Further damaged by an insured cause and reappraised by us.
    (3) If you elect to exclude hail and fire as insured causes of loss 
and the walnuts are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the person determined to be beneficially entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
form this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. For the purpose of this section, the 
amount of loss from fire will be the difference between the fair market 
value of the production on the unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

[[Page 296]]

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year only on our form and with our approval. The assignee will have 
the right to submit the loss notices and forms required by the contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all walnuts 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due:
    (1) If deducted from an indemnity will be the date you sign the 
claim; or
    (2) If deducted from payment under another program administered by 
the United States Department of Agriculture will be the date both such 
other payment and setoff are approved.
    d. The cancellation and termination dates are January 31.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by October 31 preceding the 
cancellation date. Acceptance of any change will be conclusively 
presumed in the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of walnut crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
walnut insurance in the county.
    b. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will be considered contiguous.
    c. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    d. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the walnuts are normally 
harvested.

[[Page 297]]

    e. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the walnuts which causes such walnuts to be considered 
unmarketable and will not include unmarketability of such walnuts as a 
direct result of a quarantine, boycott or refusal to accept the walnuts 
by any entity without regard to actual physical damage to such walnuts.
    f. Harvest means removal of the walnuts from the orchard.
    g. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    h. Insured means the person who submitted the application accepted 
by us.
    i. Loss ratio means the ratio of indemnity to premium.
    j. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Tenant means a person who rents land from another person for a 
share of the walnuts or a share of the proceeds therefrom.
    m. Unit means all insurable acreage of walnuts in the county located 
on contiguous land on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the walnuts on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 43687, Oct. 29, 1985, as amended at 51 FR 29205-29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 6775, 
Mar. 5, 1987; 55 FR 35888, Sept. 4, 1990]



PART 447--POPCORN CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
447.1  Availability of popcorn crop insurance.
447.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
447.3  OMB control numbers.
447.4  Creditors.
447.5  Good faith reliance on misrepresentation.
447.6  The contract.
447.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 37897, Oct. 27, 1986, unless otherwise noted.



       Subpart--Regulations for the 1987 and Suceeding Crop Years



Sec. 447.1  Availability of popcorn crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
popcorn in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.

[[Page 298]]



Sec. 447.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for popcorn which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices set by the actuarial table 
for the crop year.



Sec. 447.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 447.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 447.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the popcorn insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation: (1) Is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Requests for relief 
under this section must be submitted to the Corporation in writing.



Sec. 447.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the popcorn crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 447.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the popcorn crop as landlord, owner-operator, or tenant if the person 
wishes to participate in the program. The application shall be submitted 
to the Corporation at the service office on or before the applicable 
sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of any 
application or applications in any county upon its determination that 
the insurance risk is excessive. The Manager of the Corporation is 
authorized in any crop year to extend the sales closing date for 
submitting applications in any county, by placing the extended date on 
file in the applicable service offices and publishing a notice in the 
Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.

[[Page 299]]

    (c) In accordance with the provisions governing changes in the 
contract contained in previous policies and regulations issued by FCIC, 
a contract in the form provided for in this subpart will come into 
effect as a continuation of a popcorn contract issued under such prior 
regulations, without the filing of a new application.
    (d) The application for the 1987 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Popcorn Insurance Policy for the 1987 and 
succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                     Popcorn--Crop Insurance Policy

          (This is a continuous contract. Refer to section 15.)

    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Insects;
    (4) Plant disease;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption; or
    (8) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or subsection 9.e.(7).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (2) The failure to follow recognized good popcorn farming practices 
or the grower provisions of the popcorn contract;
    (3) The impoundment of water by any governmental, public, or private 
dam or reservoir project;
    (4) Damage resulting from frost or freeze after the date designated 
by the actuarial table;
    (5) The failure or breakdown of irrigation equipment or facilities;
    (6) The failure to follow recognized good popcorn irrigation 
practices; or
    (7) Any cause not specified in subsection 1.a. as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be popcorn which is planted for harvest, 
grown on insured acreage, and for which a guarantee and premium rate are 
set by the actuarial table.
    b. The acreage insured for each crop year will be popcorn planted on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured popcorn at the time of planting. However, only for 
the purpose of determining the amount of indemnity, your share will not 
exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage: (1) Of popcorn not grown under a 
contract executed with a processor or excluded from the processor 
contract for, or during, the crop year. (The contract must be executed 
and effective before you report your acreage.);
    (2) Which is destroyed, it is practical to replant to popcorn, and 
such acreage is not replanted;
    (3) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates have been established;
    (4) Which is irrigated and an irrigated practice is not provided by 
the actuarial table unless you elect to insure the acreage as 
nonirrigated by reporting it as insurable under section 3;
    (5) Initially planted after the final planting date set by the 
actuarial table unless you agree, in writing, on our form to coverage 
reduction;
    (6) Of volunteer popcorn;
    (7) Planted to a type or variety of popcorn not established as 
adapted to the area or excluded by the actuarial table;
    (8) Planted with a crop other than popcorn; or
    (9) Planted for the development or production of hybrid seed or 
planted for experimental purposes.
    e. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water at the time of planting to carry out a good popcorn 
irrigation practice.

[[Page 300]]

    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.
    g. An instrument in the form of a ``lease'' under which you retain 
possession of the land on which the popcorn is grown and which provides 
for delivery of the popcorn under certain conditions and at a stipulated 
price will, for the purpose of this contract, be treated as a contract 
under which you have the share in the popcorn.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of popcorn planted in the county in which you 
have a share;
    b. The practice; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any popcorn planted in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the reporting date, we may elect to 
determine, by unit, the insured acreage, share, and practice or we may 
deny liability on any unit. Any report submitted by you may be revised 
only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. Coverage Level 2 will apply if you do not elect a coverage level.
    c. You may change the coverage level and price election on or before 
the sales closing date set by the actuarial table for submitting 
applications for the crop year.
    d. You must report production to us for the previous crop year prior 
to the sales closing date for the subsequent crop year as established by 
the actuarial table. If you do not provide the required production 
report we will assign a yield for the crop year for which the report is 
not furnished. The production report or assigned yield will be used to 
compute your production history for the purpose of determining your 
guarantee for the subsequent crop year. The yield assigned by us will be 
75% of the yield assigned for the purpose of determining your guarantee 
for the present crop year. If you have filed a claim for the previous 
crop year, the yield determined in adjusting your indemnity claim will 
be used as your production report.

                            5. Annual Premium

    a. The annual premium is earned and payable at the time of planting. 
The amount is computed by multiplying the production guarantee times the 
price election, times the premium rate, times the insured acreage, times 
your share at the time of planting.
    b. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                          6. Deduction for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any replant payment, or from any loan or payment due you 
under any Act of Congress or program administered by the United States 
Department of Agriculture or its Agencies.

                           7. Insurance Period

    Insurance attaches when the popcorn is planted and ends at the 
earliest of:
    a. Total destruction of the popcorn;
    b. Harvest;
    c. Final adjustment of a loss; or
    d. December 10 of the calendar year in which the popcorn is normally 
harvested.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if: (a) You want our consent to 
replant popcorn damaged due to any insured cause (see subsection 9.f.);
    (b) During the period before harvest, the popcorn on any unit is 
damaged and you decide not to further care for it or harvest any part of 
it;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage occurs.
    (2) Insured acreage may not be put to another use until we have 
appraised the popcorn and given written consent. We will not consent to 
another use until it is too late to replant. You must notify us when 
such acreage is replanted or put to another use.
    (3) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (4) If probable loss is determined within 15 days prior to or during 
harvest, immediate notice must be given. A representative sample of the 
unharvested popcorn (at least 10 feet wide and the entire length of the 
field) must remain unharvested for a period of 15 days from the date of 
notice, unless we give you written consent to harvest the sample.
    (5) In addition to the notices required by this section, if you are 
going to claim an indemnity or any unit, you must give us notice not 
later than 10 days after the earliest of:
    (a) Total destruction of the popcorn on the unit;

[[Page 301]]

    (b) Harvest of the unit; or
    (c) December 10 of the crop year.
    b. You may not destroy or replant any of the popcorn on which a 
replanting payment will be claimed until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the popcorn which is not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the popcorn on the unit;
    (2) Harvest of the unit; or
    (3) December 10 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of the popcorn on the unit and 
that any loss of production has been directly caused by one or more of 
the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this result, the total production of popcorn to 
be counted (see subsection 9.e.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of this policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (in pounds) to be counted for a unit will 
include all harvested and appraised production.
    (1) Mature popcorn production:
    (a) Which otherwise is not eligible for quality adjustment will be 
reduced .12 percent for each .1 percentage point of moisture in excess 
of 15.0 percent; or
    (b) Which, due to insurable causes, is not of merchantable popcorn 
quality and is rejected by the processor, will be adjusted by:
    (i) dividing the value per pound of the damaged popcorn by the 
contract price per pound for undamaged popcorn; and
    (ii) Multiplying the result by the number of pounds of such popcorn.
    (2) Any production from yellow or white dent corn will be counted as 
popcorn on a weight basis.
    (3) Any ear production for which we cannot determine a shelling 
factor will be considered to have an 80 percent shelling factor.
    (4) Appraised production to be counted will include:
    (a) Unharvested production on harvested acreage and potential 
production lost due to uninsured causes;
    (b) Not less than the guarantee for any acreage which is abandoned 
or put to another use without our prior written consent or damaged 
solely by an uninsured cause; and
    (c) Any appraised production on unharvested acreage.
    (5) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of popcorn becomes general 
in the county and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (6) The amount of production of any unharvested popcorn may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (7) If you elect to exclude hail and fire as insured causes of loss 
and the popcorn is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. A replanting payment may be made on any insured popcorn replanted 
after we have given consent and the acreage replanted is at least the 
lesser of 20 acres or 20 percent of the insured acreage for the unit as 
determined on the final planting date.
    (1) No replanting payment will be made on acreage:
    (a) On which our appraisal exceeds 90 percent of the guarantee;
    (b) Initially planted prior to the date established by the actuarial 
table; or
    (c) On which a replanting payment has been made during the current 
crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting, but will not exceed 150 pounds multiplied by the 
price election, multiplied by your share.
    (3) If the information reported by you results in a lower premium 
than the actual premium determined to be due, the replanting payment 
will be reduced proportionately.
    (4) The Corporation will transfer the original liability to the 
replanted crop without reduction by the amount of the replant payment 
and without increase in the original premium charged for insurance 
coverage when the crop is replanted in accordance with the requirements 
of the original planting.

[[Page 302]]

    (5) If seasonal conditions dictate replanting by broadcast method, 
and such method differs from the requirements of the original planting, 
the Corporation will transfer the original liability to the replanted 
crop reduced by the amount of the replant payment and without increase 
in the original premuim charged for insurance coverage.
    g. You must not abandon any acreage to us.
    h. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    i. An indemnity will not be paid unless you comply with all policy 
provisions.
    j. We have a policy of paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under Section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    k. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the crop is planted for any crop year, any indemnity 
will be paid to the persons determined to be beneficially entitled 
thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance. For the purpose of this subsection, 
the amount of loss from fire will be the difference between the fair 
market value of the production on the unit before the fire and after the 
fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or ommission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can do to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for 2 years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all of the 
popcorn produced on each unit including separate records showing the 
same information for production from any uninsured acreage. Failure to 
keep and maintain such records may, at our option, result in 
cancellation of the contract prior to the crop year to which the records 
apply, assignment of production to units by us, or a determination that 
no indemnity is due. Any person designated by us will have access to 
such records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless

[[Page 303]]

canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are April 15.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by December 31 preceding the 
cancellation date. Acceptance of changes will be conclusively presumed 
in the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of popcorn crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
popcorn insurance in the county.
    b. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the acturial table.
    c. Crop year means the period within which the popcorn is normally 
grown and is designated by the calender year in which the popcorn is 
normally harvested.
    d. Harvest means the completion of removing the grain from the stalk 
either by hand or machine.
    e. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    f. Insured means the person who submitted the application accepted 
by us.
    g. Loss ratio means the ratio of indemnity to premium.
    h. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    i. Replanting means performing the cultural practices necessary to 
replant insured acreage to popcorn.
    j. Replant payment that means payment made to the insured in 
accordance with the provisions of subsection 9.f. of this policy which 
payment is subject to offset for premium owed.
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Tenant means a person who rents land from another person for a 
share of the popcorn or a share of the proceeds therefrom.
    m. Unit means all insurable acreage of popcorn in the county on the 
date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
Land rented for cash, a fixed commodity payment, or any consideration 
other than a share in the popcorn on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office. Units will be determined when the acreage is reported.
    Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

[[Page 304]]

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with the Appeal Regulations (7 
CFR Part 400--Subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 37897, Oct. 27, 1986, as amended at 52 FR 3214, Feb. 3, 1987; 52 
FR 17547, 17548, May 11, 1987; 55 FR 35888, Sept. 4, 1990]



PARTS 448-449  [RESERVED]






PART 450--PRUNE CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1986 and Succeeding Crop Years

Sec.
450.1  Availability of prune crop insurance.
450.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
450.3  OMB control numbers.
450.4  Creditors.
450.5  Good faith reliance on misrepresentation.
450.6  The contract.
450.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 50 FR 50277, Dec. 10, 1985, unless otherwise noted.



       Subpart--Regulations for the 1986 and Succeeding Crop Years



Sec. 450.1  Availability of prune crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
prunes in counties within the limits prescribed by and in accordance 
with the provisions of the Federal Crop Insurance Act, as amended. The 
counties shall be designated by the Manager of the Corporation from 
those approved by the Board of Directors of the Corporation.



Sec. 450.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for prunes which will be included in the actuarial table on 
file in the applicable service offices for the county and which may be 
changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 450.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 450.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 450.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the prune insurance contract, 
whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation: (1) Is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and

[[Page 305]]

    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Requests for relief 
under this section must be submitted to the Corporation in writing.



Sec. 450.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the prune crop 
as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Any changes 
made in the contract shall not affect its continuity from year to year. 
The forms referred to in the contract are available at the applicable 
service offices.



Sec. 450.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the prune crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at the service office on or before 
the applicable sales closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a prune contract 
issued under such prior regulations, without the filing of a new 
application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37 and 400.38) and may be amended from time to time for subsequent 
crop years. The provisions of the Prune Crop Insurance Policy for the 
1986 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                      Prune--Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Direct Mediterranean Fruit Fly damage; or
    (7) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(4).
    b. We will not insure against any loss of production due to:

[[Page 306]]

    (1) The neglect, mismanagement or wrongdoing by you, any member of 
your household, your tenants or employees;
    (2) The failure to follow recognized good prune farming practices;
    (3) The failure to follow recognized good prune irrigation practice;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The impoundment of water by any governmental, public or private 
dam or reservoir project; or
    (6) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the varieties of prune plums 
(``prunes'') which are grown for the production of dried prunes on 
insured acreage and for which a guarantee and premium rate are provided 
by the actuarial table.
    b. The acreage insured for each crop year will be prunes grown on 
insurable acreage as designated by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured prunes at the time insurance attaches. However, 
only for the purpose of determining the amount of indemnity, your share 
will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) Which is not irrigated except where provided by the actuarial 
table, or for which adequate facilities and water are not available at 
the time insurance attaches to carry out a good prune irrigation 
practice;
    (2) On which the trees have not reached the seventh growing season 
after being set out unless we agree in writing to insure such acreage;
    (3) Planted with a vine or tree crop other than prunes;
    (4) Which we inspect and consider not acceptable; or
    (5) A variety of prunes not established as adapted to the area or 
excluded by the actuarial table.
    e. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of prunes in the county in which you have a 
share;
    b. The practice; and
    c. Your share at the time insurance attaches.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any prunes grown in the 
county. This report must be submitted annually on or before March 1. All 
indemnities may be determined on the basis of information you submit on 
this report. If you do not submit this report by the reporting date, we 
may elect to determine, by unit, the insured acreage, share, and 
practice or we may deny liability on any unit. Any report submitted by 
you may be revised only upon our approval. By applying for prune crop 
insurance, you authorize us to examine records maintained by the Prune 
Marketing Committee, if applicable, or prune packer for the purpose of 
determining or verifying your production and acreage.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (seventh growing season and older) 
is reduced more than 10 percent from the preceding calendar year as a 
result of damage occurring within that year, the production guarantee 
will be reduced 1 percent (through adjustment to your average yield) for 
each 1 percent reduction in excess of 10 percent.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the sales closing date as established by the actuarial table for 
submitting applications for the crop year.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on March 1 and ends at the 
earliest of:
    a. Total destruction of the prunes;
    b. The date harvest of the prunes (by variety) should have started;

[[Page 307]]

    c. Harvest of the prunes;
    d. Final adjustment of a loss;
    e. October 1 in California; or
    f. October 15 in Oregon.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice of:
    (a) The dates of damage; and
    (b) The causes of damage.
    (2) You must give us written notice if during the period before 
harvest, the prunes on any unit are damaged and you decide not to 
further care for or harvest any part of them.
    (3) You must give us notice at least 15 days before the beginning of 
harvest if you anticipate a loss on any unit.
    (4) If probable loss or damage is determined within 15 days of or 
during harvest, immediate notice must be given.
    (5) If you are going to claim an indemnity on any unit, you must 
give us notice not later than 72 hours:
    (a) After total destruction of the prunes;
    (b) Discontinuance of harvest on the unit; or
    (c) Before harvest would normally start if any acreage on the unit 
is not to be harvested.
    (6) Unless notice has been given under subsection (5) above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, you must give us notice not later 
than 10 days after the earliest of:
    (a) Harvest of the unit;
    (b) October 1 of the crop year in California; or
    (c) October 15 of the crop year in Oregon.
    b. You must obtain written consent from us before you destroy any of 
the prunes which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the prunes on the unit;
    (2) Harvest of the unit;
    (3) October 1 of the crop year in California; or
    (4) October 15 of the crop year in Oregon.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of prunes on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period;
    (2) Authorize us in writing to examine and obtain any records 
pertaining to the production and marketing of the insured prunes under 
this contract from the prune packer Prune Marketing Committee, if 
applicable, or prune packer; and
    (3) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of prunes to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production to be counted for a unit will include all 
harvested and appraised production on a natural condition prune basis 
which grades substandard or better.
    (1) Any production of substandard prunes which results from damage 
by insurable causes will be adjusted by:
    (a) Dividing the value per ton of such prunes by the market price 
per ton of standard prunes (of the same size count); and
    (b) Multiplying the result by the number of tons of such prunes.
    (2) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good prune farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (3) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of prunes becomes general in 
the county;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) If you elect to exclude hail and fire as insured causes of loss 
and the prunes are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.
    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.

[[Page 308]]

    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity. The interest rate will be 
that established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1. The 
interest rate to be paid on any indemnity will vary with the rate 
announced by the Secretary of the Treasury.
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the persons we determine to be beneficially entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value for the production on 
the unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Idemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all prunes 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:

[[Page 309]]

    (1) An indemnity claim will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture will be the date both such payment and setoff 
are approved.
    d. The cancellation and termination dates are January 31.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by October 31 preceding the 
cancellation date. Acceptance of any change will be conclusively 
presumed in the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of prune crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
prune insurance in the county.
    b. Average yield means the yield established from your production 
records, which is approved by us and shown on our form.
    c. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will be considered contiguous.
    d. County means the county shown on the application and any 
additional land located in a local producing are bordering on the 
county, as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and designated by 
the calendar year in which the prunes are normally harvested.
    f. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the prunes on the unit which causes such prunes to be 
unmarketable and will not include unmarketability of such prunes as a 
direct result of a quarantine, boycott, or refusal to accept the prunes 
by any entity without regard to actual physical damage to such prunes.
    g. Harvest means picking of the prunes from the trees or ground 
either by hand or machine for the purpose of removal from the orchard.
    h. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    i. Insured means the person who submitted the application accepted 
by us.
    j. Market price for standard prunes means the price per ton shown on 
the processor's settlement sheet for each size count of standard prunes.
    k. Natural condition prunes means prunes in the condition in which 
they normally come from a dry yard or dehydrator.
    l. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    m. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    n. Standard prunes means any natural conditioned prunes:
    (1) Grading C or better in accordance with U.S. Standards for grades 
of dried prunes; or
    (2) Which conform to the grading specifications currently regulating 
the handling of dried prunes in States where Federal Marketing Orders 
for dried prunes are applicable.
    o. Substandard prunes mean any natural condition prunes failing to 
meet the applicable grading specifications for standard prunes.
    p. Tenant means a person who rents land from another person for a 
share of the prunes or a share of the proceeds therefrom.
    q. Unit means all insurable acreage of prunes in the county located 
on contiguous land on the data insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the prunes on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on files in your 
service office. Units will be determined

[[Page 310]]

when the acreage is reported. Errors in reporting units may be corrected 
by us to conform to applicable guidelines when adjusting a loss. We may 
consider any acreage and share thereof reported by or for your spouse or 
child or any member of your household to be your bona fide share or the 
bona fide share of any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsiderations of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[50 FR 50277, Dec. 10, 1985, as amended at 51 FR 29205, 29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 55 FR 35888, 
Sept. 4, 1990]



PART 451--CANNING AND PROCESSING PEACH CROP INSURANCE REGULATIONS--Table of Contents




          Subpart--Regulations for the 1986 and 1987 Crop Years

Sec.
451.1  Availability of canning and processing peach crop insurance.
451.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
451.3  OMB control numbers.
451.4  Creditors.
451.5  Good faith reliance on misrepresentation.
451.6  The contract.
451.7  The application and policy.

    Authority: Secs. 506, 516, Pub. L. 75-430, 52 Stat. 73, 77, as 
amended (7 U.S.C. 1506, 1516).

    Source: 51 FR 1241, Jan. 10, 1986, unless otherwise noted.



          Subpart--Regulations for the 1986 and 1987 Crop Years



Sec. 451.1  Availability of canning and processing peach crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
canning and processing peaches in counties within the limits prescribed 
by and in accordance with the provisions of the Federal Crop Insurance 
Act, as amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.



Sec. 451.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for canning and processing peaches which will be included in 
the actuarial table on file in the applicable service offices for the 
county and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices contained in the actuarial 
table for the crop year.



Sec. 451.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 451.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.

[[Page 311]]



Sec. 451.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the canning and processing 
peach insurance contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation: (1) Is 
indebted to the Corporation for additional premiums; or (2) has suffered 
a loss to a crop which is not insured or for which the insured is not 
entitled to an indemnity because of failure to comply with the terms of 
the insurance contract, but which the insured believed to be insured, or 
believed the terms of the insurance contract to have been complied with 
or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Requests for relief 
under this section must be submitted to the Corporation in writing.



Sec. 451.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the canning and 
processing peach crop as provided in the policy. The contract shall 
consist of the application, the policy, and the county actuarial table. 
Any changes made in the contract shall not affect its continuity from 
year to year. The forms referred to in the contract are available at the 
applicable service offices.



Sec. 451.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the canning and processing peach crop as landlord, owner-operator, or 
tenant. The application shall be submitted to the Corporation at the 
service office on or before the applicable sales closing date on file in 
the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1986 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a canning and 
processing peach contract issued under such prior regulations, without 
the filing of a new application.
    (d) The application for the 1986 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Canning and Processing Peach Crop Insurance 
Policy for the 1986 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

           Canning and Processing Peach Crop Insurance Policy

    (This is a continuous contract. Refer to section 15.)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted

[[Page 312]]

Application and ``we,'' ``us'' and ``our'' refer to the Federal Crop 
Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption;
    (6) Direct Mediterranean Fruit Fly damage; or
    (7) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches;

unless those causes are excepted, excluded, or limited by the actuarial 
table or section 9e(3).
    b. We will not insure against any loss of production due to:
    (1) The neglect, mismanagement or wrongdoing by you, any member of 
your household, your tenants or employees;
    (2) The failure to follow recognized good peach farming practices;
    (3) The failure to follow recognized good peach irrigation practice;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The impoundment of water by any governmental, public or private 
dam or reservoir project;
    (6) Split pits regardless of cause; or
    (7) Any cause not specified in section 1a as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be any of the varieties of clingstone 
peaches (``peaches'') which are grown for the production of canning or 
processing peaches on insured acreage and for which a guarantee and 
premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be peaches grown on 
insurable acreage as designated by the acturial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured peaches at the time insurance attaches. However, 
only for the purpose of determining the amount of indemnity, your share 
will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage:
    (1) Which is not irrigated or for which adequate facilities and 
water are not available at the time insurance attaches to carry out a 
good peach irrigation practice;
    (2) On which the trees have not reached the fifth growing season 
after being set out unless we agree in writing to insure such acreage;
    (3) Planted with a vine or tree crop other than peaches;
    (4) Which we inspect and consider not acceptable; or
    (5) A variety of peaches not established as adapted to the area or 
excluded by the actuarial table.
    e. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of peaches in the county in which you have a 
share;
    b. The practice; and
    c. Your share at the time insurance attaches.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any peaches grown in the 
county. This report must be submitted annually on or before March 1. All 
indemnities may be determined on the basis of information you submit on 
this report. If you do not submit this report by the reporting date, we 
may elect to determine, by unit, the insured acreage, share, and 
practice or we may deny liability on any unit. Any report submitted by 
you may be revised only upon our approval. By applying for peach crop 
insurance, you authorize us to examine records maintained by the Cling 
Peach Advisory Board for the purpose of determining or verifying your 
production and acreage.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (fifth growing season and older) 
is reduced more than 10 percent from the preceding calendar year as a 
result of damage occurring within that year, the production guarantee 
will be reduced 1 percent (through adjustment to your average yield) for 
each 1 percent reduction in excess of 10 percent.
    c. Coverage level 2 will apply if you do not elect a coverage level.
    d. You may change the coverage level and price election on or before 
the sales closing date as established by the actuarial table for 
submitting applications for the crop year.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election,

[[Page 313]]

times the premium rate, times the insured acreage, times your share on 
the date insurance attaches.
    b. Interest will accrue at the rate of one and one-quarter percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the first premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    Insurance attaches for each crop year on March 1 and ends at the 
earliest of:
    a. Total destruction of the peaches;
    b. The date harvest of the peaches (by variety) should have started;
    c. Harvest of the peaches;
    d. Final adjustment of a loss; or
    e. September 15.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice of:
    (a) The dates of damage; and
    (b) The causes of damage.
    (2) You must give us written notice if during the period before 
harvest, the peaches on any unit are damaged and you decide not to 
further care for or harvest any part of them.
    (3) You must give us notice at least 15 days before the beginning of 
harvest if you anticipate a loss on any unit.
    (4) If probable loss or damage is determined within 15 days of or 
during harvest, immediate notice must be given.
    (5) If you are going to claim an indemnity on any unit, you must 
give us notice not later than 72 hours:
    (a) After total destruction of the peaches;
    (b) Discontinuance of harvest on the unit; or
    (c) Before harvest would normally start if any acreage on the unit 
is not to be harvested.
    (6) Unless notice has been given under subsection (5) above, and in 
addition to the other notices required by this section, if you are going 
to claim an indemnity on any unit, you must give us notice not later 
than 10 days after the earliest of:
    (a) Harvest of the unit; or
    (b) September 15 of the crop year.
    b. You must obtain written consent from us before you destroy any of 
the peaches which are not to be harvested.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the peaches on the unit;
    (2) Harvest of the unit; or
    (3) September 15 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of peaches on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period;
    (2) Authorize us in writing to examine and obtain any records 
pertaining to the production and marketing of the insured peaches under 
this contract from the peach canner or Cling Peach Advisory Board; and
    (3) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of peaches to be 
counted (see section 9e);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production to be counted for a unit will include all 
harvested and appraised production which the California State Inspection 
Service grades No. 2 or better.
    (1) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good peach farming practices;
    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
consent; and
    (c) Any unharvested production.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Not harvested before the harvest of peaches becomes general in 
the county;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (3) If your elect to exclude hail and fire as insured causes of loss 
and the peaches are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire''.

[[Page 314]]

    f. You must not abandon any acreage to us.
    g. You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    h. We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity.
    The interest rate will be that established by the Secretary of the 
Treasury under Section 12 of the Contract Disputes Act of 1978 (41 
U.S.C. 611), and published in the Federal Register semiannually on or 
about January 1 and July 1. The interest rate to be paid on any 
indemnity will vary with the rate announced by the Secretary of the 
Treasury
    i. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the persons we determine to be beneficially entitled thereto.
    j. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for two years after the time of loss, records of the 
harvesting, storage, shipment, sale or other disposition of all peaches 
produced on each unit, including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or

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before the termination date preceding such crop year for the contract on 
which the amount is due. The date of payment of the amount due if 
deducted from:
    (1) An indemnity claim will be the date you sign the claim; or
    (2) A payment under another program administered by the United 
States Department of Agriculture will be the date both such other 
payment and setoff are approved.
    d. The cancellation and termination dates are January 31.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for 3 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by October 31 preceding the 
cancellation data (November 31 for the 1988 crop year only). Acceptance 
of any changes will be conclusively presumed in the absence of any 
notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of peach crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
canning and processing peach insurance in the county.
    b. Average yield means the yield established from your production 
records, which is approved by us and shown on our form.
    c. Contiguous land means land which is touching at any point, except 
that land which is separated by only a public or private right-of-way 
will be considered contiguous.
    d. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    e. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and designated by 
the calendar year in which the peaches are normally harvested.
    f. Direct Mediterranean Fruit Fly damage means the actual physical 
damage to the peaches on the unit which causes such peaches to be 
unmarketable and will not include unmarketability of such peaches as a 
direct result of a quarantine, boycott, or refusal to accept the peaches 
by any entity without regard to actual physical damage to such peaches.
    g. Harvest means picking of the peaches from the trees either by 
hand or machine for the purpose of removal from the orchard.
    h. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    i. Insured means the person who submitted the application accepted 
by us.
    j. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State, a political subdivision of a State, or any agency 
thereof.
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Tenant means a person who rents land from another person for a 
share of the proceeds therefrom.
    m. Unit means all insurable acreage of peaches in the county located 
on contiguous land on the date insurance attaches for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, fixed commodity payment, or any consideration 
other than a share in the peaches on such land will be considered as 
owned by the lessee. Land which would otherwise be one unit may be 
divided according to applicable guidelines on file in your service 
office. Units will be determined when the acreage is reported. Errors in 
reporting units may be corrected by us to conform to applicable 
guidelines when adjusting a loss. We may consider any acreage and share 
thereof reported by or for your spouse or child or any member of your 
household to be your bona fide share or the bona fide share of any other 
person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to

[[Page 316]]

affect the construction or meaning of any of the provisions of the 
contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations.

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[51 FR 5697, Feb. 18, 1986, as amended at 51 FR 29205, 29207, Aug. 15, 
1986; 51 FR 45296, Dec. 18, 1986; 52 FR 3214, Feb. 3, 1987; 52 FR 41692, 
Oct. 30, 1987; 53 FR 46850, Nov. 21, 1988; 55 FR 35888, Sept. 4, 1990]



PARTS 452-453  [RESERVED]






PART 454--FRESH MARKET TOMATO (GUARANTEED PRODUCTION PLAN) CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1987 and Succeeding Crop Years

Sec.
454.1  Availability of guaranteed plan of fresh market tomato crop 
          insurance.
454.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
454.3  OMB control numbers.
454.4  Creditors.
454.5  Good faith reliance on misrepresentation.
454.6  The contract.
454.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.


    Source: 52 FR 4593, Feb. 13, 1987, unless otherwise noted.



       Subpart--Regulations for the 1987 and Succeeding Crop Years



Sec. 454.1  Availability of guaranteed plan of fresh market tomato crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The counties shall be designated by the Manager of 
the Corporation from those approved by the Board of Directors of the 
Corporation. The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through Agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation offer 
contracts containing substantially the same terms and conditions as the 
contract set out in this part. No person may have in force more than one 
contract on the same crop for the crop year, whether insured by the 
Corporation or insured by a company which is reinsured by the 
Corporation. If a person has more than one contract under the Act 
outstanding on the same crop for the same crop year, all such contracts 
will be voided for that crop year but the person will still be liable 
for the premium on all contracts unless the person can show to the 
satisfaction of the Corporation that the multiple contract insurance was 
inadvertent and without the fault of the insured. If the multiple 
contract insurance is shown to be inadvertent and without the fault of 
the insured, the contract with the earliest application will be valid 
and all other contracts on that crop for that crop year will be 
cancelled. No liability for indemnity or premium will attach to the 
contracts so cancelled. The person must repay all amounts received in 
violation of this section with interest at the rate contained in the 
contract for delinquent premiums. An insured whose contract with the 
Corporation, or with a Company reinsured by the Corporation

[[Page 317]]

under the Act, has been terminated because of violation of the terms of 
the contract is not eligible to obtain multi-peril crop insurance under 
the Act with the Corporation or with a company reinsured by the 
Corporation unless the insured can show that the default in the prior 
contract was cured prior to the sales closing date of the contract 
applied for or unless the insured can show that the termination was 
improper and should not result in subsequent ineligibility. All 
applicants for insurance under the Act must advise the agent, in 
writing, at the time of application, of any previous applications for a 
Contract under the Act and the present status of the other applications 
or contracts.



Sec. 454.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for fresh market tomatoes which will be included in the 
actuarial table on file in the applicable service offices for the county 
and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices set by the actuarial table 
for the crop year.



Sec. 454.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 454.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 454.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the fresh market tomato 
insurance contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured person 
believed to be insured, or believed the terms of the insurance contract 
to have been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 454.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation of a duly executed application for insurance on a form 
prescribed by the Corporation. The contract shall cover the fresh market 
tomato crop as provided in the policy. The contract shall consist of the 
application, the policy, and the county actuarial table. Changes made in 
the contract shall not affect its continuity from year to year. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 454.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the fresh market

[[Page 318]]

tomato crop as landlord, owner-operator, or tenant if the person wishes 
to participate in the program. The application shall be submitted to the 
Corporation at the service office on or before the applicable sales 
closing date on file in the service office.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive. The Manager of the Corporation is authorized in any crop year 
to extend the sales closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications.
    (c) In accordance with the provisions governing changes in the 
contract contained in policies issued under FCIC regulations for the 
1987 and succeeding crop years, a contract in the form provided for in 
this subpart will come into effect as a continuation of a fresh market 
tomato contract issued under such prior regulations, without the filing 
of a new application.
    (d) The application for the 1987 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Fresh Market Tomato (Guaranteed Production 
Plan) Crop Insurance Policy for the 1987 and succeeding crop years are 
as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

Guaranteed Production Plan of Fresh Market--Tomato Crop Insurance Policy

          (This is a continuous contract. Refer to section 15.)

    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Fire;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption; or
    (6) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after the beginning of planting;

unless those causes are excepted, excluded, or limited by the actuarial 
table or subsection 9.e.(5).
    b. We will not insure against any loss of production due to:
    (1) Damage that occurs or becomes evident after the tomatoes have 
been harvested;
    (2) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good tomato irrigation 
practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to follow recognized good tomato farming practices;
    (6) The impoundment of water by any governmental, public, or private 
dam or reservoir project;
    (7) Disease or insect infestation; or
    (8) Any cause not specified in subsection 1.a. as an insured loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be transplanted tomatoes (excluding cherry-
type tomatoes) planted for harvest as fresh market tomatoes, grown on 
insurable acreage, and for which a guarantee and premium rate are set by 
the actuarial table.
    b. The acreage insured for each crop year will be tomatoes planted 
on insurable acreage as designated by the actuarial table and in which 
you have a share, as reported by you or as determined by us, whichever 
we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured tomatoes at the time of planting. However, only 
for the purpose of determining the amount of indemnity, your insured 
share will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any acreage of tomatoes grown by any person if 
the person had not previously:
    (1) Grown fresh market tomatoes for commercial sales; or

[[Page 319]]

    (2) Participated in the management of a fresh market tomato farming 
operation, in at least one of the three previous years.
    e. We do not insure any acreage:
    (1) Of tomatoes grown for direct consumer marketing;
    (2) If the farming practices carried out are not in accordance with 
farming practices for which premium rates have been established;
    (3) Except in Pennsylvania, on which tomatoes, peppers, eggplants, 
or tobacco have been grown within the previous two years and the soil 
was not fumigated or nematicide was not applied before planting 
tomatoes;
    (4) Which is destroyed, it is practical to replant to tomatoes, and 
such acreage is not replanted (the unavailability of plants is not a 
valid reason for failure to replant);
    (5) Initially planted before or after the planting period set by the 
actuarial table;
    (6) Of volunteer tomatoes;
    (7) Planted to a type or variety of tomatoes not established as 
adapted to the area or excluded by the actuarial table;
    (8) Planted for experimental purposes;
    (9) Planted with another crop; or
    (10) Of tomatoes not subject to an agreement between the producer 
and the packer to pack the production (excluding insureds with their own 
packing facilities). Such agreement must be executed before reporting 
acreage.
    f. We may limit the insured acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to planting.

                3. Report of Acreage, Share, and Practice

    You must report on our form:
    a. All the acreage of tomatoes in the county in which you have a 
share;
    b. The practice, including the row width; and
    c. Your share at the time of planting.
    You must designate separately any acreage that is not insurable. You 
must report if you do not have a share in any tomato plantings in the 
county. This report must be submitted annually on or before the 
reporting date established by the actuarial table. All indemnities may 
be determined on the basis of information you submit on this report. If 
you do not submit this report by the acreage reporting date, we may 
elect to determine, by unit, the insured acreage, share, and practice or 
we may deny liability on any unit. Any report submitted by you may be 
revised only upon our approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The final stage production guarantees, coverage levels, and 
prices for computing indemnities are contained in the actuarial table.
    b. The production guarantees per acre are progressive by stages and 
increase, at specified intervals, to the final stage production 
guarantee. The stages and production guarantees are:
    (1) First Stage is from planting until qualifying for stage 2, the 
production guarantee is 50% of the final stage production guarantee.
    (2) Second Stage is from the earlier of stakes driven, one tie and 
pruning, or 30 days after planting until qualifying for stage 3, the 
production guarantee is 75% of the final stage production guarantee.
    (3) Third Stage is from 60 days after planting until qualifying for 
stage 4, the production guarantee is 90% of the final stage production 
guarantee.
    (4) Fourth Stage (Final Stage) is from the earlier of 75 days after 
planting or the beginning of harvest, the production guarantee is the 
final stage guarantee.
    c. Any acreage of tomatoes damaged to the extent that growers in the 
area generally would not further care for the tomatoes will be deemed to 
have been destroyed even though the tomatoes continue to be cared for. 
The production guarantee for such acreage will be the guarantee for the 
stage in which such damage occurs.
    d. Coverage level 2 will apply if you do not elect a coverage level.
    e. You may change the coverage level and price election on or before 
the sales closing date set by the actuarial table for submitting 
applications for the crop year.
    f. You must report production to us for the prior crop year before 
the sales closing date as established by the actuarial table. If you do 
not provide the required production report, we will assign a yield for 
the crop year for which the report is not furnished. The production 
report or assigned yield will be used to compute your production history 
for the purpose of determining your guarantee for the insured crop year. 
The yield assigned by us will not be more than 75 percent of the yield 
used by us to determine your guarantee for the prior crop year. If you 
have filed a claim for the prior crop year, the yield determined in 
adjusting your indemnity claim will be considered your production 
report.

                            5. Annual Premium

    The annual premium amount is computed by multiplying the final stage 
production guarantee times the price election, times the premium rate, 
times the insured acreage, times your share at the time of planting, 
times any applicable premium adjustment factor for which you may qualify 
as contained in the actuarial table because you did not select optional 
units.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you,

[[Page 320]]

or from a replanting payment, or from any loan or payment due you under 
any Act of Congress or program administered by the United States 
Department of Agriculture or its agencies.

                           7. Insurance Period

    Insurance (on a per acre basis) attaches when the tomatoes are 
planted and ends at the earliest of:
    a. Total destruction of the tomatoes;
    b. Discontinuance of harvest;
    c. The date harvest should have started on any acreage which was not 
harvested;
    d. 120 days after the date of transplanting or replanting;
    e. Completion of harvest;
    f. Final adjustment of a loss; or
    g. November 20 of the crop year in California and September 20 in 
all other states.

                       8. Notice of Damage or Loss

    a. In case of damage or probable loss:
    (1) You must give us written notice if:
    (a) You want our consent to replant tomatoes damaged due to any 
insured cause (see subsection 9.f.);
    (b) During the period before harvest begins, the tomatoes on any 
unit are damaged and you decide not to further care for or harvest any 
part of them;
    (c) You want our consent to put the acreage to another use; or
    (d) After consent to put acreage to another use is given, additional 
damage occurs.
    Insured acreage may not be put to another use until we have 
appraised the tomatoes and given written consent. We will not consent to 
another use until it is too late to replant. You must notify us when 
such acreage is replanted or put to another use.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is determined within 15 days prior to or during 
harvest and you are going to claim an indemnity on any unit, you must 
give us notice not later than 72 hours after the earliest of:
    (a) Total destruction of the tomatoes on the unit;
    (b) Discontinuance of harvest of any acreage on the unit;
    (c) The date harvest would normally start if any acreage on the unit 
is not to be harvested;
    (d) 120 days after transplanting or replanting of the tomatoes; or
    (e) November 20 of the crop year in California and September 20 in 
all other states.
    b. You may not destroy or replant any of the tomatoes on which a 
replanting payment will be claimed until we give written consent.
    c. You must obtain written consent from us before you destroy any of 
the tomatoes which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the tomatoes on the unit;
    (2) Discontinuance of harvesting on the unit; or
    (3) The date harvest should have started on the unit on any acreage 
which will not be harvested.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of tomatoes on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee for 
the applicable stage;
    (2) Subtracting therefrom the total production of tomatoes to be 
counted (see subsection 9.e.);
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    d. If the information reported by you under section 3 of this policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (in 25-pound carton equivalents) to be 
counted for a unit will include all harvested and appraised production.
    (1) All tomato production marketed, and any harvested unmarketed 
production meeting the standards for grading 85% or better U.S. No. 1 
with classification size of 6 x 7 (2\8/32\ inch minimum diameter) or 
larger will be considered production to count.
    (2) Appraised production to be counted will include:
    (a) Unharvested production of mature green and ripe tomatoes with 
classification size of 6 x 7 (2\8/32\ inch minimum diameter) or larger 
remaining after the final harvest;
    (b) Potential production on unharvested acreage and potential 
production on acreage when final harvest has not been completed;
    (c) Potential production lost due to uninsured causes; and
    (d) Not less than the guarantee for any acreage abandoned or put to 
another use

[[Page 321]]

without prior written consent or which is damaged solely by an uninsured 
cause.
    (3) Any appraisal we have made on insured acreage for which we have 
given written consent to be put to another use will be considered 
production unless such acreage is:
    (a) Not put to another use before harvest of tomatoes becomes 
general in the county for the planting period and reappraised by us;
    (b) Further damaged by an insured cause and reappraised by us; or
    (c) Harvested.
    (4) The amount of production of any unharvested tomatoes may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (5) If you elect to exclude hail and fire as insured causes of loss 
and the tomatoes are damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    f. A replanting payment may be made on any insured tomatoes 
replanted after we have given consent and the acreage replanted is at 
least the lesser of 20 acres or 20 percent of the insured acreage as 
determined on the final planting date. The acreage to be replanted must 
have sustained a loss in excess of 50 percent of the plant stand.
    (1) No replanting payment will be made on acreage on which a 
replanting payment has been made during the current crop year.
    (2) The replanting payment per acre will be your actual cost per 
acre for replanting, but will not exceed 70 cartons multiplied by the 
price election, multiplied by your share.
    If the information reported by you results in a lower premium than 
the actual premium determined to be due, the replanting payment will be 
reduced proportionately.
    g. You must not abandon any acreage to us.
    h. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    i. An indemnity will not be paid unless you comply with all policy 
provisions.
    j. It is our policy to pay your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. However, we will pay simple 
interest on the net indemnity ultimately found to be due to you, if the 
reason for non-payment is not due to your failure to provide information 
or other material necessary for the computation or payment of the 
indemnity. Interest due will be paid from and including the 61st day 
after the date you sign, date, and submit to us the properly completed 
claim-for-indemnity form. The interest rate will be that established by 
the Secretary of the Treasury under section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611), and published in the Federal Register 
semiannually on or about January 1 and July 1. The interest rate to be 
paid on any indemnity will vary with the rate announced by the Secretary 
of the Treasury.
    k. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after the tomatoes are planted for any crop year, any 
indemnity will be paid to the persons determined to be beneficially 
entitled thereto.
    l. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than

[[Page 322]]

us, you must do all you can to preserve any such right. If we pay you 
for your loss, then your right of recovery will, at our option, belong 
to us. If we recover more than we paid you plus our expenses, the excess 
will be paid to you.

                     14. Records and Access to Farm

    You must keep, for three years after the time of loss, records of 
the harvesting, storage, shipment, sale, or other disposition of all 
tomatoes produced on each unit, including separate records showing the 
same information for production from any uninsured acreage. Failure to 
keep and maintain such records may, at our option, result in 
cancellation of the contract prior to the crop year to which the records 
apply, assignment of production to units by us, or a determination that 
no indemnity is due. Any person designated by us will have access to 
such records and the farm for purposes related to the contract.

           15. Life of Contract: Cancellation and Termination

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year. 
Thereafter, the contract will continue in force for each succeeding crop 
year unless canceled or terminated as provided in this section.
    b. This contract may be canceled by either you or us for any 
succeeding crop year by giving written notice on or before the 
cancellation date preceding such crop year.
    c. This contract will terminate as to any crop year if any amount 
due us on this or any other contract with you is not paid on or before 
the termination date preceding such crop year for the contract on which 
the amount is due. The date of payment of the amount due if deducted 
from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. The cancellation and termination dates are:

------------------------------------------------------------------------
                                            Cancellation and termination
                  State                                dates            
------------------------------------------------------------------------
California, Florida, Georgia, and South    February 15.                 
 Carolina.                                                              
All other states.........................  April 15.                    
------------------------------------------------------------------------

    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    f. The contract will terminate if no premium is earned for three 
consecutive years.

                          16. Contract Changes

    We may change any terms and provisions of the contract from year to 
year. If your price election at which indemnities are computed is no 
longer offered, the actuarial table will provide the price election 
which you are deemed to have elected. All contract changes will be 
available at your service office by November 30 preceding the 
cancellation date for counties with a February 15 cancellation date, and 
by December 31 preceding the cancellation date for counties with an 
April 15 cancellation date. Acceptance of changes will be conclusively 
presumed in the absence of notice from you to cancel the contract.

                          17. Meaning of Terms

    For the purposes of tomato crop insurance:
    a. Acre means 43,560 square feet of land on which row widths do not 
exceed 6 feet or if row widths exceed 6 feet, the land area on which at 
least 7,260 linear feet of rows are planted.
    b. Actuarial table means the forms and related material for the crop 
year approved by us which are available for public inspection in your 
service office, and which show the production guarantees, coverage 
levels, premium rates, prices for computing indemnities, practices, 
insurable and uninsurable acreage, and related information regarding 
fresh market tomato insurance in the county.
    c. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    d. Crop year means the period within which the tomatoes are normally 
grown and is designated by the calendar year in which the tomatoes are 
normally harvested.
    e. Harvest means the picking of marketable tomatoes on the unit.
    f. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    g. Insured means the person who submitted the application accepted 
by us.
    h. Mature green tomato means a tomato which:
    (1) Has heightened gloss because of the waxy skin that cannot be 
torn by scraping;
    (2) Has well formed jelly-like substance in the locules;

[[Page 323]]

    (3) Has seeds that are sufficiently hard so they are pushed aside 
and not cut by a sharp knife in slicing; and
    (4) Shows no red color.
    i. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    j. Planting means transplanting the tomato plants into the field.
    k. Plant stand means the number of live plants per acre before the 
plants were damaged due to insurable causes.
    l. Potential production means the number of 25-pound cartons of 
mature green or ripe tomatoes with classification size of 6 x 7 (2\8/32\ 
inch minimum diameter) or larger which the tomato plants would produce 
or would have produced, per acre, by the end of the insurance period.
    m. Replanting means performng the cultural practices necessary to 
replant insured acreage to tomatoes.
    n. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    o. Tenant means a person who rents land from another person for a 
share of the tomatoes or a share of the proceeds therefrom.
    p. Tomatoes grown for direct consumer marketing means tomatoes grown 
for the purpose of selling directly to the consumer.
    q. Unit means all insurable acreage of tomatoes in the county on the 
date of planting for the crop year:
    (1) In which you have 100 percent share; or
    (2) Which is owned by one person and operated by another person on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the tomatoes on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        18. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           19. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with the Appeal Regulations (7 
CFR Part 400--Subpart J).

                               20. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    21. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[52 FR 4593, Feb. 13, 1987, as amended at 53 FR 46850, Nov. 21, 1988; 54 
FR 48077, Nov. 21, 1989; 55 FR 35888, Sept. 4, 1990]



PART 455--MACADAMIA NUT CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1988 and Succeeding Crop Years

Sec.
455.1  Availability of macadamia nut crop insurance.
455.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
455.3  OMB control numbers.
455.4  Creditors.
455.5  Good faith reliance on misrepresentation.
455.6  The contract.
455.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 53 FR 6569, Mar. 2, 1988, unless otherwise noted.



       Subpart--Regulations for the 1988 and Succeeding Crop Years



Sec. 455.1  Availability of macadamia nut crop insurance.

    (a) Insurance shall be offered under the provisions of this subpart 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended, (the Act). The counties shall be designated by the

[[Page 324]]

Manager of the Corporation from those approved by the Board of Directors 
of the Corporation. The insurance is offered through two methods. First, 
the Corporation offers the contract contained in this part directly to 
the insured through Agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation (hereinafter 
``Reinsured companies'') offer contracts containing substantially the 
same terms and conditions as the contract set out in this part. No 
person may have in force more than one contract on the same crop for the 
crop year, whether insured by the Corporation or insured by a Reinsured 
company. If a person has more than one contract under the Act 
outstanding on the same crop for the same crop year, all such contracts 
will be voided for that crop year but the person will still be liable 
for the premium on all contracts unless the person can show to the 
satisfaction of the Corporation that the multiple contract insurance was 
inadvertent and without the fault of the insured. If the multiple 
contract insurance is shown to be inadvertent and without the fault of 
the insured, the contract with the earliest application will be valid 
and all other contracts on that crop for that crop year will be 
cancelled. No liability for indemnity or premium will attach to the 
contracts so cancelled. The person must repay all amounts received in 
violaton of this section with interest at the rate contained in the 
contract for delinquent premiums.
    (b) An insured whose contract with the Corporation or with a 
Reinsured company under the Act has been terminated because of violation 
of the terms of the contract is not eligible to obtain multi-peril crop 
insurance under the Act with the Corporation or with a Reinsured company 
unless the insured can show that the default in the prior contract was 
cured prior to the sales closing date of the contract applied for or 
unless the insured can show that the termination was improper and should 
not result in subsequent ineligibility. All applicants for insurance 
under the Act must advise the agent, in writing, at the time of 
application, of any previous applications for a Contract under the Act 
and the present status of the applications or contracts.



Sec. 455.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for macadamia nuts which will be included in the actuarial 
table on file in the applicable service offices for the county and which 
may be changed from year to year.
    (b) At the time of application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices set by the actuarial table 
for the crop year.



Sec. 455.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 455.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 455.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the macadamia nut insurance 
contract, whenever--
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation or a 
Reinsured company:
    (1) Is indebted to the Corporation or a Reinsured company for 
additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the

[[Page 325]]

insured believed to be insured, or believed the terms of the insurance 
contract to have been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000, or a Reinsured company finds 
that:
    (1) An agent or employee of the Corporation or a Reinsured company 
did in fact make such misrepresentation or take other erroneous action 
or give erroneous advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto.
Request for relief under this section must be submitted to the 
Corporation or to the Reinsured Company, whichever is applicable, in 
writing.

[53 FR 6569, Mar. 2, 1988, as amended at 54 FR 30007, July 18, 1989]



Sec. 455.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation or a Reinsured company of a duly executed application 
for insurance on a form prescribed by the Corporation or a Reinsured 
company. The contract shall cover the macadamia nut crop as provided in 
the policy. The contract shall consist of the application, the policy 
and the county actuarial table. This contract is not continuous. 
Application must be made annually for the macadamia nut contract on or 
prior to the sales closing date established by the actuarial table. The 
forms referred to in the contract are available at the applicable 
service offices.



Sec. 455.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the macadamia nut crop as landlord, owner-operator, or tenant if the 
person wishes to participate in the program. The application shall be 
submitted to the Corporation or a Reinsured company at the service 
office on or before the applicable sales closing date on file in the 
service office.
    (b) The Corporation or a Reinsured company may discontinue the 
acceptance of any application or applications in any county upon its 
determination that the insurance risk is excessive. The Manager of the 
Corporation is authorized in any crop year to extend the sales closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable service offices and publishing a notice 
in the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during such period, the Corporation will 
immediately discontinue the acceptance of applications.
    (c) A contract in the form provided for in this subpart will be in 
effect as a macadamia nut contract applicable for one year. A new 
application must be submitted for each subsequent crop year.
    (d) The application for the 1988 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Macadamia Nut Crop Insurance Policy for the 
1988 and succeeding crop years are as follows:

                        DEPARTMENT OF AGRICULTURE

                   Federal Crop Insurance Corporation

                  Macadamia Nut--Crop Insurance Policy

    (This is NOT a continuous contract. Refer to Section 15)
    AGREEMENT TO INSURE: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable loss of production 
resulting from the following causes occurring within the insurance 
period:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;

[[Page 326]]

    (4) Volcanic eruption;
    (5) Wildlife; or
    (6) If applicable, failure of the irrigation water supply due to an 
unavoidable cause occurring after insurance attaches; unless those 
causes are excepted, excluded, or limited by the actuarial table or 
subsection 9.e.(4).
    b. We will not insure against any loss of production due to:
    (1) Unmarketability as a direct result of quarantine, boycott, or 
refusal of any entity to accept production unless production has actual 
physical damage due to a cause specified in subsection 1.a.;
    (2) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good macadamia nut farming 
practices;
    (4) Water contained by any governmental, public, or private dam or 
reservoir project;
    (5) Flooding on any unit subject to a flood or water flowage 
easement;
    (6) Flooding on any unit located between any body of water and a 
primary flood control structure for that body of water;
    (7) Failure or breakdown of irrigation equipment or facilities;
    (8) Failure to carry out a good macadamia nut irrigation practice; 
or
    (9) Any cause not specified in subsection 1.a. as an insured cause 
of loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be all varieties of macadamia nuts grown 
for processing on insurable acreage which has been inspected and 
accepted by us and for which a guarantee and premium rate are provided 
by the actuarial table.
    b. The acreage insured for each crop year will be macadamia nuts 
grown on insurable acreage as designated by the actuarial table, and in 
which you have a share, as reported by you or as determined by us, 
whichever we elect.
    c. The insured share is your share as landlord, owner-operator, or 
tenant in the insured macadamia nuts at the time insurance attaches. 
However, only for the purpose of determining the amount of indemnity, 
your insured share will not exceed your share on the earlier of:
    (1) The time of loss; or
    (2) The beginning of harvest.
    d. We do not insure any macadamia nuts:
    (1) If the farming practices carried out are not the same as those 
for which the guarantee and premium rate have been established;
    (2) Of a type of variety not established as adapted to the area or 
excluded by the actuarial table;
    (3) Produced by macadamia trees that have not reached the fifth 
growing season after transplanting or grafting;
    (4) If the macadamia trees have not produced an average yield of at 
least 190 pounds of wet inshell nuts per acre in a previous year;
    (5) If the trees are interplanted with a crop other than macadamia 
nuts;
    (6) If acceptable production records of at least the previous crop 
year are not available;
    (7) If there is less than a 50 percent stand of bearing trees based 
on the original planting pattern; or
    (8) Which we consider not acceptable.
    e. We may limit the insurable acreage to any acreage limitation 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

 3. Report of Acreage, Share, Variety, Practice, and Number of Bearing 
                                  Trees

    You must report on our form by unit:
    a. All the acreage of macadamia nuts in the county in which you have 
a share;
    b. Your share at the time insurance attaches;
    c. The variety;
    d. The dates on which the trees were transplanted or grafted;
    e. The practice; and
    f. The number of bearing trees.
    You must designate separately any acreage that is not insurable. 
This report must be submitted annually prior to the time insurance 
attaches. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good macadamia nut irrigation practice. All indemnities may be 
determined on the basis of information you submit on this report. If you 
do not submit this report within 15 days after the time insurance 
attaches, we may elect to determine, by unit, the insured acreage, 
share, practice, and number of bearing trees, or we may deny liability 
on any unit. Any report submitted by you may be revised only upon our 
approval.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    a. The production guarantees, coverage levels, and prices for 
computing indemnities are contained in the actuarial table.
    b. If the number of bearing trees (fifth growing season after 
transplanting or grafting and older) is reduced more than 10 percent 
from the preceding calendar year as a result of damage occurring within 
that year, the production guarantee will be reduced 1 percent for each 
percent reduction in excess of 10 percent.
    c. You may change the coverage level and price election for the 
succeeding crop year on or before December 31 of the current crop year.

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    d. You must report production to us for the insured crop year by 
December 31 of that crop year. If you do not provide the required 
production report, we will assign a yield for the insured crop year. The 
yield assigned by us will not be more than 75 percent of the yield used 
to determine your guarantee for the insured crop year. The production 
report or assigned yield will be used to compute your production history 
for the purpose of determining your guarantee for the succeeding crop 
year. If you have filed a claim for the insured crop year, the 
production report will be calculated based on the actual production used 
to determine the indemnity payment.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the production guarantee 
times the price election, times the premium rate, times the insured 
acreage, times your share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its agencies.

                           7. Insurance Period

    Insurance on insurable acreage attaches for each crop year on 
January 1. However, if we accept your application for insurance after 
January 1, insurance does not attach until the thirtieth (30th) day 
after you sign and submit a properly completed application. Insurance 
will not attach to any acreage inspected by us and determined to be 
unacceptable. Insurance ends on a per-acre basis at the earliest of:
    a. Total destruction of the macadamia nuts on the unit;
    b. The date harvest would normally start on the unit on any acreage 
which will not be harvested;
    c. Completion of harvest;
    d. Final adjustment of a loss; or
    e. December 31 of the crop year.

                       8. Notice of Damage or Loss

    a. You must give us written notice:
    (1) Without delay if damage resulting in probable loss occurs at any 
time during the period before harvest; and
    (2) At least fifteen (15) days before the beginning of harvest if 
you anticipate a loss on any unit.
    b. If probable loss is determined within fifteen (15) days prior to 
or during harvest and you are going to claim an indemnity on any unit, 
you must give us notice not later than seventy-two (72) hours after the 
earliest of:
    (1) Total destruction of the macadamia nuts on the unit;
    (2) Discontinuance of harvest of any acreage on the unit;
    (3) The date harvest would normally start if any acreage on the unit 
is not to be harvested; or
    (4) December 31 of the crop year.
    c. You must obtain written consent from us before you destroy any of 
the macadamia nuts which are not to be harvested.
    d. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than sixty (60) days after the earliest of:
    (1) Total destruction of the macadamia nuts on the unit;
    (2) Harvest of the unit; or
    (3) December 31 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Establish the total production of macadamia nuts on the unit and 
that any loss of production has been directly caused by one or more of 
the insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of macadamia nuts to 
be counted (see subsection 9.e.);
    (3) Multiplying the remainder of the price election; and
    (4) Multiplying this product by your share.
    d. If the information reported by you under section 3 of this policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    e. The total production (wet inshell pounds) to be counted for a 
unit will include all harvested and appraised production.
    (1) Appraised production to be counted will include:
    (a) Potential production lost due to uninsured causes and failure to 
follow recognized good macadamia nut farming practices;

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    (b) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause, or destroyed by you without our 
prior written consent; and
    (c) Any production detached from trees and not removed from the 
orchard.
    (2) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (a) Further damaged by an insured cause and reappraised by us; or
    (b) Harvested.
    (3) We may determine the amount of production of any unharvested 
macadamia nuts on the basis of field appraisals conducted after the end 
of the insurance period.
    (4) If you elect to exclude hail and fire as insured causes of loss 
and the macadamia nuts are damaged by hail or fire, appraisals will be 
made in accordance with Form FCI-78, ``Request to Exclude Hail and 
Fire.''
    f. You must not abandon any acreage to us.
    g. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    h. An indemnity will not be paid unless you comply with all policy 
provisions.
    i. It is our policy to pay your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. However, we will pay simple 
interest computed on the net indemnity ultimately found to be due to 
you, if the reason for non-payment is not due to your failure to provide 
information or other material necessary for the computation or payment 
of the indemnity. Interest due will be paid from and including the 61st 
day after the date you sign, date, and submit to us the properly 
completed claim-for-indemnity form. The interest rate will be that 
established by the Secretary of the Treasury under section 12 of the 
Contract Disputes Act of 1978 (41 U.S.C. 611), and published in the 
Federal Register semiannually on or about January 1 and July 1.
    The interest rate to be paid on any indemnity will vary with the 
rate announced by the Secretary of the Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the persons determined to be beneficially entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or payble 
under such other insurance.

For the purpose of this subsection, the amount of loss from fire will be 
the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

          11. Transfer of Right to an Indemnity--Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay for your loss, then your right of recovery will, at our 
option, belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access to Farm

    You must keep, for three years, after the time of loss, records of 
the harvesting, storage, shipment, sale or other disposition of all 
macadamia nuts produced on each unit, including separate records showing 
the same information for production from any uninsured acreage. Failure 
to keep and maintain such records may, at our option, result in: (a) 
Cancellation of the contract prior to the

[[Page 329]]

crop year to which the records apply; (b) assignment of production to 
units by us; or (c) a determination that no indemnity is due. Any person 
designated by us will have access to such records and the farm for 
purposes related to the contract.

                          15. Life of Contract

    a. This contract will be in effect for the crop year specified on 
the application and may not be canceled by you for such crop year.
    b. The term of this contract ends as shown in section 7 of this 
policy. We are under no obligation to send you any renewal notice or 
other notice that the contract term is ending and the receipt by you of 
any such notice is not a waiver of this provision.
    c. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches for any 
crop year, the contract will continue in force through the crop year and 
terminate at the end thereof. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    d. This contract will automatically terminate at the end of the 
current contract period unless we offer to renew the contract for a 
subsequent crop year and you accept.

                          16. Meaning of Terms

    For the purposes of macadamia nut crop insurance:
    a. Actuarial table means the forms and related material for the crop 
year approved by us. The Actuarial Table is available for public 
inspection in your service office and shows the production guarantees, 
coverage levels, premium rates, prices for computing indemnities, 
practices, insurable and uninsurable acreage, and related information 
regarding macadamia nut insurance in the country.
    b. County means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county, as shown by the actuarial table.
    c. Crop year means the period beginning with the date insurance 
attaches and extending through the normal harvest time and will be 
designated by the calendar year in which the macadamia nuts are normally 
harvested.
    d. Harvest means the picking of the macadamia nuts from the ground.
    e. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    f. Insured means the person who submitted the application accepted 
by us.
    g. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision or agency of a State.
    h. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    i. Tenant means a person who rents land from another person for a 
share of the macadamia nuts or a share of the proceeds therefrom.
    j. Unit means all insurable acreage of macadamia nuts in the county 
on the date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the macadamia nuts on such land will 
be considered as owned by the lessee.
    Land which would otherwise be one unit may be divided according to 
applicable guidelines on file in your service office. Units will be 
determined when the acreage is reported. Errors in reporting units may 
be corrected by us to conform to applicable guidelines when adjusting a 
loss. We may consider any acreage and share thereof reported by or for 
your spouse or child or any member of your household to be your bona 
fide share or the bona fide share of any other person having an interest 
therein.
    k. Wet inshell means the weight of the macadamia nuts as they are 
removed from the orchard with the nuts meats in the shells after removal 
of the husk and prior to being dried.

                        17. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           18. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with the Appeal Regulations (7 
CFR Part 400, Subpart J).

                               19. Notices

    All notices required to be given by you must be in writing and 
received by your

[[Page 330]]

service office within the designated time unless otherwise provided by 
the notice requirement. Notices required to be given immediately may be 
by telephone or in person and confirmed in writing. Time of the notice 
will be determined by the time of our receipt of the written notice.
    20. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[53 FR 6569, Mar. 2, 1988, as amended at 55 FR 35887, Sept. 4, 1990]



PART 456--MACADAMIA TREE CROP INSURANCE REGULATIONS--Table of Contents




       Subpart--Regulations for the 1988 and Succeeding Crop Years

Sec.
456.1  Availability of macadamia tree crop insurance.
456.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
456.3  OMB control numbers.
456.4  Creditors.
456.5  Good faith reliance on misrepresentation.
456.6  The contract.
456.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 53 FR 31827, Aug. 22, 1988, unless otherwise noted.



       Subpart--Regulations for the 1988 and Succeeding Crop Years



Sec. 456.1  Availability of macadamia tree crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The counties shall be designated by the Manager of 
the Corporation from those approved by the Board of Directors of the 
Corporation. The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through Agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation offer 
contracts containing substantially the same terms and conditions as the 
contract set out in this part. No person may have in force more than one 
contract on the same crop for the crop year, whether insured by the 
Corporation or insured by a company which is reinsured by the 
Corporation. If a person has more than one contract under the Act 
outstanding on the same crop for the same crop year, all such contracts 
will be voided for that crop year but the person will still be liable 
for the premium on all contracts unless the person can show to the 
satisfaction of the Corporation that the multiple contract insurance was 
inadvertent and without the fault of the insured. If the multiple 
contract insurance is shown to be inadvertent and without the fault of 
the insured, the contract with the earliest application will be valid 
and all other contracts on that crop for that crop year will be 
cancelled. No liability for indemnity or premium will attach to the 
contracts so cancelled. The person must repay all amounts received in 
violation of this section with interest at the rate contained in the 
contract for delinquent premiums.
    An insured whose contract with the Corporation or with a Company 
reinsured by the Corporation under the Act has been terminated because 
of violation of the terms of the contract is not eligible to obtain 
multi-peril crop insurance under the Act with the Corporation or with a 
company reinsured by the Corporation unless the insured can show that 
the default in the prior contract was cured prior to the sales closing 
date of the contract applied for or unless the insured can show that the 
termination was improper and should not result in subsequent 
ineligibility. All applicants for insurance under the Act must advise 
the agent, in writing at the time of application, of any previous 
applications for a Contract under the Act and the present status of the 
applications or contracts.



Sec. 456.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees,

[[Page 331]]

coverage levels, and prices at which indemnities shall be computed for 
macadamia trees which will be included in the actuarial table on file in 
the applicable service offices for the county and which may be changed 
from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect a coverage level and price at which indemnities will be 
computed from among those levels and prices set by the actuarial table 
for the crop year.



Sec. 456.3  OMB control numbers.

    OMB control numbers are contained in subpart H of part 400, title 7 
CFR.



Sec. 456.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 456.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the macadamia tree insurance 
contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that: (1) An agent or 
employee of the Corporation did in fact make such misrepresentation or 
take other erroneous action or give erroneous advice; (2) said insured 
relied thereon in good faith; and (3) to require the payment of the 
additional premiums or to deny such insured's entitlement to the 
indemnity would not be fair and equitable, such insured shall be granted 
relief the same as if otherwise entitled thereto. Requests for relief 
under this section must be submitted to the Corporation in writing.



Sec. 456.6  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation (or by a Company reinsured by the Corporation) of a duly 
executed application for insurance on a form prescribed by the 
Corporation. The contract shall cover the macadamia tree crop as 
provided in the policy. The contract shall consist of the application, 
the policy and the county actuarial table. This contract is not 
continuous. Application must be made annually for the macadamia tree 
contract on or prior to the sales closing date established by the 
actuarial table. The forms referred to in the contract are available at 
the applicable service offices.



Sec. 456.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation must be made by any person to cover such person's share in 
the macadamia tree crop as landlord or owner-operator if the person 
wishes to participate in the program. The application must be submitted 
to the Corporation (or the Company reinsured by the Corporation) at the 
service office on or before the applicable sales closing date on file in 
the service office.
    (b) The Corporation may discontinue the acceptance of any 
application or applications in any county upon its determination that 
the insurance risk is excessive. The Manager of the Corporation is 
authorized in any crop year to extend the sales closing date for 
submitting applications in any county, by placing the extended date on 
file in the applicable service offices and publishing a notice in the 
Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period. However, if adverse 
conditions should develop during

[[Page 332]]

such period, the Corporation will immediately discontinue the acceptance 
of applications.
    (c) A contract in the form provided for in this subpart will be in 
effect as a macadamia tree contract applicable for one year. A new 
application must be submitted for each subsequent crop year.
    (d) The application for the 1988 and succeeding crop years is found 
at subpart D of part 400--General Administrative Regulations (7 CFR 
400.37, 400.38) and may be amended from time to time for subsequent crop 
years. The provisions of the Macadamia Tree Crop Insurance Policy for 
the 1988 and succeeding crop years are as follows:

                  Macadamia Tree Crop Insurance Policy

    (This is not a continuous contract. Refer to Section 15)
    Agreement to Insure: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted application and ``we,'' ``us,'' and ``our'' refer 
to the Federal Crop Insurance Corporation.

                          Terms and Conditions

                            1. Causes of Loss

    a. The insurance provided is against unavoidable damage to macadamia 
trees resulting from the following causes occurring within the insurance 
period:
    (1) Fire;
    (2) Volcanic eruption; or
    (3) Wind;
    Unless those causes are excepted, excluded, or limited by this 
policy or the actuarial table.
    b. We will not insure against any loss due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree pruning debris has not been removed from the grove;
    (2) The neglect, mismanagement, or wrongdoing by you, any member of 
your household, your tenants, or employees;
    (3) The failure to follow recognized good macadamia nut orchard 
practices; or
    (4) Any cause not specified in subsection 1.a. as an insured cause 
of loss.

                   2. Crop, Acreage, and Share Insured

    a. The crop insured will be all macadamia trees grown for the 
production of macadamia nuts on insurable acreage which has been 
annually inspected and accepted by us and for which a guarantee and 
premium rate are provided by the actuarial table.
    b. The acreage insured for each crop year will be all macadamia tree 
acreage designated as insurable by the actuarial table and in which you 
have a share, as reported by you or as determined by us, whichever we 
elect.
    c. The insured share is your share as landlord or owner-operator in 
the insured macadamia trees at the time insurance attaches. However, 
only for the purpose of determining the amount of indemnity, your 
insured share will not exceed your share at the time of loss.
    d. We do not insure any macadamia trees:
    (1) If the orchard maintenance practices carried out are not the 
same as those for which the guarantee and premium rate have been 
established;
    (2) Of a type or variety not established as adapted to the area or 
excluded by the actuarial table;
    (3) Interplanted with another crop;
    (4) Which we consider not acceptable; or
    (5) That are less than one year of age when the insured period 
begins.
    e. We may limit the insurable acreage to any acreage limitation, 
established under any Act of Congress, if we advise you of the limit 
prior to the date insurance attaches.

           3. Report of Acreage, Share, Variety, and Practice

    You must report on our form by unit:
    a. all the acreage of macadamia trees in the county in which you 
have a share;
    b. your share at the time insurance attaches;
    c. the types of trees;
    d. the number of trees set out;
    e. the dates on which the trees were set out or grafted; and
    f. If more than 10 percent of the trees on any unit has been 
replaced in the previous five crop years, the date of replacement.
    You must designate separately any acreage that is not insurable. 
This report must be submitted annually prior to the time insurance 
attaches. If insurance is provided for an irrigated practice, you must 
report as irrigated only the acreage for which you have adequate 
facilities and water, at the time insurance attaches, to carry out a 
good macadamia orchard irrigation practice. All indemnities may be 
determined on the basis of information you submit on this report. If you 
do not submit this report within 15 days after the time insurance 
attaches, we may elect to determine, by unit, the insured acreage, 
share, and practice or we may deny liability on any unit. Any report 
submitted by you may be revised only upon our approval.

[[Page 333]]

               4. Amounts of Insurance and Coverage Levels

    a. The amounts of insurance and coverage levels are contained in the 
actuarial table.
    b. If, at the time insurance attaches, the number of macadamia trees 
on a unit is less than 90 percent of the number of macadamia trees that 
would comprise a complete planting pattern, the amount of insurance will 
be reduced 1 percent for each percent below 90 percent.

                            5. Annual Premium

    a. The annual premium is earned and payable on the date insurance 
attaches. The amount is computed by multiplying the amount of insurance 
per acre times the premium rate, times the insured acreage, times your 
share on the date insurance attaches.
    b. Interest will accrue at the rate of one and one-fourth percent 
(1\1/4\%) simple interest per calendar month, or any part thereof, on 
any unpaid premium balance starting on the first day of the month 
following the premium billing date.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its agenices.

                           7. Insurance Period

    Insurance attaches on insurable acreage for each crop year on 
January 1. However, if we accept your application for insurance after 
January 1, insurance does not attach until the tenth (10th) day after 
you sign and submit a properly completed application. Insurance will not 
attach to any acreage determined by us, after inspection, to be 
unacceptable. Insurance ends at the earlier of:
    a. Total destruction of the macadamia trees; or
    b. December 31 of the crop year.

                       8. Notice of Damage or Loss

    a. You must give us written notice without delay if damage resulting 
in probable loss occurs at any time during the insurance period. Such 
notice must include the dates and causes of damage.
    b. If you are going to claim an indemnity on any unit, we must be 
allowed to inspect all insured trees before any pruning or tree removal.
    c. We may reject any claim for indemnity if you fail to comply with 
any of the requirements of this section or section 9.

                         9. Claim for Indemnity

    a. Any claim for indemnity on a unit must be submitted to us on our 
form not later than sixty (60) days after the earlier of:
    (1) Total destruction of the trees on the unit; or
    (2) December 31 of the crop year.
    b. We will not pay any indemnity unless you:
    (1) Furnish all records we require concerning all trees on the unit;
    (2) Show that any damage to the trees has been directly caused by 
one or more of the insured causes during the insurance period; and
    (3) Furnish all information we require concerning the loss.
    c. The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the amount of insurance per 
acre;
    (2) Multiplying this result by the applicable percent of loss, which 
is determined for:
    (a) Coverage level 3 by subtracting 25 percent from the actual 
percent of damage and dividing the result of 75 percent.
    (b) Coverage level 2 by subtracting 35 percent from the actual 
percent of damage and dividing the result by 65 percent; or
    (c) Coverage level 1 by subtracting 50 percent from the actual 
percent of damage and dividing the result by 50 percent; and
    (3) Multiplying the result for the applicable coverage level by your 
share.
    d. If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the amount of insurance on the unit will be computed on the information 
you reported, but all of the insurable acreage planted, whether or not 
reported as insurable, will count against the amount of insurance.
    e. The total amount of indemnity will include both trees damaged and 
trees destroyed due to an insurable cause.
    (1) Any grove with over 80 percent actual damage will be determined 
to be 100 percent damaged.
    (2) Any percentage of damage by uninsured causes will not be 
included in the percent of damage.
    (3) If you elect to exclude fire as an insured cause of loss and the 
macadamia trees are damaged by fire, appraisals will be made in 
accordance with Form FCI-78-A, ``Request to Exclude Hail and Fire.''
    f. You must not abandon any acreage to us.
    g. Any suit against us for an indemnity must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c). You must bring suit 
within 12 months of the date notice of denial of the claim is received 
by you.
    h. An indemnity will not be paid unless you comply with all policy 
provisions.
    i. It is our policy to pay your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other

[[Page 334]]

charges in connection with any claim for indemnity, whether we approve 
or disapprove such claim. However, we will pay simple interest computed 
on the net indemnity ultimately found to be due to you if the reason for 
non-payment is not due to your failure to provide information or other 
material necessary for the computation or payment of the indemnity. 
Interest due will be paid from and including the 61st day after the date 
you sign, date, and submit to us the properly completed claim-for-
indemnity form.
    The interest rate will be that established by the Secretary of the 
Treasury under section 12 of the Contract Disputes Act of 1978 (41 
U.S.C. 611), and published in the Federal Register semiannually on or 
about January 1 and July 1. The interest rate to be paid on any 
indemnity will vary with the rate announced by the Secretary of the 
Treasury.
    j. If you die, disappear, or are judicially declared incompetent, or 
if you are an entity other than an individual and such entity is 
dissolved after insurance attaches for any crop year, any indemnity will 
be paid to the persons determined to be beneficially entitled thereto.
    k. If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this subsection, the amount of loss from fire 
will be the difference between the fair market value of the trees on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us, if at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to an Indemnity-Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

          13. Subrogation (Recovery of Loss From a Third Party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay for your loss, then your right of recovery will, at our 
option, belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                    14. Records and Access to Orchard

    You must keep, for three years after the time of loss, records of 
the trees destroyed or damaged on each unit, including separate records 
showing the same information for any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply or a 
determination that no indemnity is due. Any person designated by us will 
have access to such records and the orchard for purposes related to the 
contract.

                          15. Life of Contract

    a. This contract will be in effect for the crop year specified on 
the application.
    b. The term of this contract begins and ends as shown in Section 7 
of this policy. We are under no obligation to send you any renewal 
notice or other notice that the contract term is ending, and the receipt 
by you of any such notice is not a waiver of this provision.
    c. This contract will not be renewed for any successive contract 
term if any amount due us on this or any other contract with you is not 
paid on or before the termination date. The date of payment of the 
amount due if deducted from:
    (1) An indemnity, will be the date you sign the claim; or
    (2) Payment under another program administered by the United States 
Department of Agriculture, will be the date both such other payment and 
setoff are approved.
    d. Since the premium must be paid prior to insurance attaching, the 
termination date is the date insurance attaches.
    e. If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will terminate as of the date of death, judicial declaration, 
or dissolution. If such event occurs after insurance attaches

[[Page 335]]

for any crop year, the contract will continue in force through the crop 
year and terminate at the end thereof. Death of a partner in a 
partnership will dissolve the partnership unless the partnership 
agreement provides otherwise. If two or more persons having a joint 
interest are insured jointly, death of one of the persons will dissolve 
the joint entity.
    f. This contract will automatically terminate at the end of the 
current contract period.

                          16. Meaning to Terms

    For the purposes of macadamia tree crop insurance:
    a. Age means the number of years after the later of when the trees 
have been set out or grafted. Age determination will be made for the 
unit on January 1 of each crop year.
    b. Actuarial table means the forms and related materials for the 
crop year approved by us. The actuarial table is available for public 
inspection in your service office and shows the production guarantees, 
coverage levels, premium rates, prices for computing indemnities, 
practices, insurable and uninsurable acreage, and related information 
regarding macadamia tree insurance in the county.
    c. County means the county shown on the application.
    d. Crop year means the period beginning with the date insurance 
attaches and extending through December 31 of the same calendar year and 
will be designated by the calendar year in which insurance attaches.
    e. Destroyed means damage to trees to the extent that we determine 
that replacement is required.
    f. Grafting means to unite a macadamia tree shoot to an established 
macadamia tree root stock for future production of macadamia nuts.
    g. Insurable acreage means the land classified as insurable by us 
and shown as such by the actuarial table.
    h. Insured means the person who submitted the application accepted 
by us.
    i. Person means an individual, partnership, association, 
corporation, estate, trust, or other legal entity, and wherever 
applicable, a State or a political subdivision, or agency of a State.
    j. Planting pattern means the spacing oftrees on a uniform 
geometrical basis so that each tree is a uniform distance from other 
trees and resulting in a specific number of trees per acre.
    k. Service office means the office servicing your contract as shown 
on the application for insurance or such other approved office as may be 
selected by you or designated by us.
    l. Unit means all insurable acreage of macadamia trees in the county 
on the date of planting for the crop year:
    (1) In which you have a 100 percent share; or
    (2) In which you are a joint owner.
    Land which would otherwise be one unit may be divided according to 
applicable guidelines on file in your service office. Units will be 
determined when the acreage is reported. Errors in reporting units may 
be corrected by us to conform to applicable guidelines when adjusting a 
loss. We may consider any acreage and share thereof reported by or for 
your spouse or child or any member of your household to be your bona 
fide share or the bona fide share of any other person having an interest 
therein.

                        17. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           18. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of, or 
appeal those determinations in accordance with the Appeal Regulations (7 
CFR part 400, subpart J).

                               19. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.
    20. Notwithstanding the terms of the crop insurance policy and any 
contract for crop insurance under the provisions of this part, coverage 
under the terms of such crop insurance policy will be effective subject 
to the availability of appropriations.

[53 FR 31827, Aug. 22, 1988, as amended at 55 FR 1786, Jan. 19, 1990; 55 
FR 35887, Sept. 4, 1990]



PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 1994 AND SUBSEQUENT CONTRACT YEARS--Table of Contents




Sec.
457.1  Applicability.
457.2  Availability of Federal crop insurance.
457.3  Premium rates, production guarantees or amounts of insurance, 
          coverage levels, and prices at which indemnities shall be 
          computed.
457.4  OMB control numbers.
457.5  Creditors.

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457.6  Good faith reliance on misrepresentation.
457.7  The contract.
457.8  The application and policy.
457.9  Appropriation contingency.
457.10-457.100  [Reserved]
457.101  Small grains crop insurance.
457.102  Wheat crop insurance winter coverage endorsement.
457.103  Malting barley option.
457.104  Cotton crop insurance provisions.
457.105  Extra long staple cotton crop insurance provisions.
457.107  Florida citrus fruit crop insurance provisions.
457.108  Sunflower seed crop insurance provisions.
457.109  Sugar beet crop insurance provisions.
457.110  Fig crop insurance provisions.
457.111  Pear crop insurance provisions.
457.113  Coarse grains crop insurance provisions.
457.114  Nursery crop insurance provisions.
457.115  Nursery frost, freeze, and cold damage exclusion option.
457.116  Sugarcane crop insurance provisions.
457.117  [Reserved]
457.118  Malting barley crop insurance.
457.119  Texas citrus fruit crop insurance provisions.
457.120  [Reserved]
457.121  Arizona-California citrus crop insurance provisions.

    Authority: 7 U.S.C. 1506(l), 1506(p).

    Source: 56 FR 1351, Jan. 14, 1991, unless otherwise noted.



Sec. 457.1  Applicability.

    The provisions of this part are applicable only to crops for which a 
crop provision is published as a section to 7 CFR part 457 and then only 
for the crops and crop year designated by the application section.



Sec. 457.2  Availability of Federal crop insurance.

    (a) Insurance shall be offered under the provisions of this section 
on the insured crop in counties within the limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended (the Act). The crops and counties shall be designated by the 
Manager of the Corporation from those approved by the Board of Directors 
of the Corporation.
    (b) The insurance is offered through two methods. First, the 
Corporation offers the contract contained in this part directly to the 
insured through agents of the Corporation. Those contracts are 
specifically identified as being offered by the Federal Crop Insurance 
Corporation. Second, companies reinsured by the Corporation offer 
contracts containing the same terms and conditions as the contract set 
out in this part. These contracts are clearly identified as being 
reinsured by the Corporation.
    (c) No person may have in force more than one contract on the same 
crop for the same crop year, in the same county, whether insured by the 
Corporation or insured by a company which is reinsured by the 
Corporation.
    (d) If a person has more than one contract under the Act outstanding 
on the same crop for the same crop year, in the same county, all such 
contracts shall be voided for that crop year and the person will be 
liable for the premium on all contracts, unless the person can show to 
the satisfaction of the Corporation that the duplicate multiple peril 
contract of insurance was inadvertent and without the fault of the 
person.
    (e) If the multiple contracts of insurance are shown to be 
inadvertent and without the fault of the insured, the contract with the 
earliest application will be valid and all other contracts on that crop 
in the county for that crop year will be cancelled. No liability for 
indemnity or premium will attach to the contracts so cancelled.
    (f) The person must repay all amounts received in violation of this 
section with interest at the rate contained in the contract (see 
Sec. 457.8, paragraph 21).
    (g) An insured whose contract with the Corporation or with a company 
reinsured by the Corporation under the Act has been terminated because 
of violation of the terms of the contract is not eligible to obtain 
multiple peril crop insurance under the Act with the Corporation or with 
a company reinsured by the Corporation unless the insured can show that 
the default in the prior contract was cured prior to the sales closing 
date of the contract applied for or unless the insured can show that the 
termination was improper and should not result in subsequent 
ineligibility.

[[Page 337]]

    (h) All applicants for insurance under the Act must advise the 
agent, in writing, at the time of application, of any previous 
applications for insurance or policies of insurance under the Act and 
the present status of any such applications or insurance.

[56 FR 1351, Jan. 14, 1991, as amended at 58 FR 58262, Nov. 1, 1993]



Sec. 457.3  Premium rates, production guarantees or amounts of insurance, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production guarantees 
or amounts of insurance, coverage levels, and prices at which 
indemnities shall be computed for the insured crop which will be 
included in the actuarial table on file in the applicable agents' office 
for the county and which may be changed from year to year.
    (b) At the time the application for insurance is made, the applicant 
will elect an amount of insurance or a coverage level and price from 
among those contained in the actuarial table for the crop year.



Sec. 457.4  OMB control numbers.

    The information collection requirements contained in these 
regulations have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
assigned OMB numbers 0563-0003, 0563-0009, and 0563-0010.



Sec. 457.5  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to any benefit under the contract.



Sec. 457.6  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the crop insurance contract, 
whenever:
    (a) A person entering into a contract of crop insurance under these 
regulations who, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) The Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00, finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing. The Corporation reviewing 
officers must, upon application by the person claiming relief under this 
section, refer such application to the appropriate official of the 
Corporation for determination as to whether to grant relief under this 
section. Corporation reviewing officers do not have authority to grant 
relief under this section.
    (c) The reinsured companies may use arbitration panels established 
under contracts for reinsurance issued by them under the FCIC Act to 
grant relief under the same terms and conditions as contained in 
paragraphs (a) and (b) of this section or, may establish procedures to 
administratively handle relief in accordance with such terms and 
conditions.

[56 FR 1351, Jan. 14, 1991, as amended at 58 FR 58262, Nov. 1, 1993]



Sec. 457.7  The contract.

    The insurance contract shall become effective upon the acceptance by 
the Corporation or the reinsured company of a duly executed application 
for insurance on a form prescribed by the

[[Page 338]]

Corporation. The contract shall consist of the accepted Application, the 
Basic Provisions, the Crop Provisions, the Special Provisions, the 
county Actuarial Table, and any amendments or options thereto. Changes 
made in the contract shall not affect its continuity from year to year. 
No indemnity shall be paid unless the insured complies with all terms 
and conditions of the contract. The forms referred to in the contract 
are available at the offices of the crop insurance agent.



Sec. 457.8  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation, or approved by the Corporation, must be made by any person 
who wishes to participate in the program, to cover such person's share 
in the insured crop as landlord, owner-operator, crop ownership 
interest, or tenant. No other person's interest in the crop may be 
insured under an application unless that person's interest is clearly 
shown on the application and unless that other person's interest is 
insured in accordance with the procedures of the Corporation. The 
application must be submitted to the Corporation or the reinsured 
company through the crop insurance agent and must be submitted on or 
before the applicable sales closing date on file.
    (b) The Corporation or the reinsured company may reject or 
discontinue the acceptance of applications in any county or of any 
individual application upon the Corporation's or the reinsured company's 
determination that the insurance risk is excessive. If the reinsured 
company rejects any application and such rejection is not required by 
the Corporation, the applicant must be referred to an agent authorized 
to sell the Corporation's policies of insurance. The Manager of the 
Corporation is authorized in any crop year to extend the sales closing 
date for submitting applications in any county, by placing the extended 
date on file in the applicable agents office and publishing a notice in 
the Federal Register upon the Manager's determination that no adverse 
selectivity will result during the extended period or that such 
extension is required to comply with other programs of the United States 
Department of Agriculture. However, if adverse conditions should develop 
during such period, the Corporation will immediately discontinue the 
acceptance of applications and will require that the reinsured companies 
also immediately discontinue such acceptance.

[[Page 339]]

                        DEPARTMENT OF AGRICULTURE
                   Federal Crop Insurance Corporation

                      Common Crop Insurance Policy

           (This is a continuous policy. Refer to section 2.)

                                                                        
           FCIC policies                      Reinsured policies        
                                                                        
United States Department of          This policy is reinsured by the    
 Agriculture, Federal Crop            Federal Crop Insurance Corporation
 Insurance Corporation                (FCIC) under the provisions of the
This is an insurance policy issued    Federal Crop Insurance Act, as    
 by the Federal Crop Insurance        amended (7 U.S.C. 1501 et seq.).  
 Corporation, a United States         All provisions of the policy and  
 Government agency. The provisions    rights and responsibilities of the
 of the policy are published in the   parties are specifically subject  
 Federal Register and in the Code     to the Federal Crop Insurance Act.
 of Federal Regulations (CFR) under   The provisions of the policy are  
 the Federal Register Act (44         published in the Federal Register 
 U.S.C. 1501 et seq.) and may not     and in chapter IV of title 7 of   
 be waived or varied in any way by    the Code of Federal Regulations   
 the crop insurance agent or any      (CFR) under the Federal Register  
 other agent or employee of FCIC.     Act (44 U.S.C. 1501 et seq.), and 
Throughout this policy, ``you'' and   may not be waived or varied in any
 ``your'' refer to the named          way by the crop insurance agent,  
 insured shown on the accepted        or any other agent or employee of 
 application and ``we'', ``us'' and   the company. In the event we      
 ``our'' refer to the Federal Crop    cannot pay your loss, your claim  
 Insurance Corporation. Unless the    will be settled in accordance with
 context indicates otherwise, use     the provisions of this policy and 
 of the plural form of a word         paid by the FCIC. No state        
 includes the singular and use of     guaranty fund will be liable to   
 the singular form of the word        pay your loss.                    
 includes the plural.                Throughout this policy, ``you'' and
                                      ``your'' refer to the named       
                                      insured shown on the accepted     
                                      application and ``we'' ``us'' and 
                                      ``our'' refer to the company      
                                      providing the insurance. Unless   
                                      the context indicates otherwise,  
                                      use of the plural form of a word  
                                      includes the singular and use of  
                                      the singular form of the word     
                                      includes the plural.              
                                                                        

    Agreement to insure: In return for the payment of the premium, and 
subject to all of the provisions of this policy, we agree with you to 
provide the insurance as stated in this policy. If a conflict exists 
between the basic provisions contained herein and the specific crop 
provisions, the crop provisions will control.

                          Terms and Conditions

                            Basic Provisions

                             1. Definitions

    As used in this Policy these terms are defined as follows:
    (a) Abandon--Failure to continue providing sufficient care (For 
example, cultivation, irrigation, fertilization, application of 
chemicals, etc., consistent with good farming practices) for the insured 
crop to make normal progress toward harvest or maturity, or failure to 
harvest in a timely manner.
    (b) Acreage report--A report required by paragraph 6 of these basic 
provisions which contains, in addition to other required information, 
your report of your share of all acreage of an insured crop in the 
county whether insurable or not insurable. This report must be filed not 
later than the final acreage reporting date contained in the special 
provisions for the county for the insured crop.
    (c) Acreage reporting date--The date (contained in the special 
provisions) by which you are required to submit your acreage reports.
    (d) Actuarial table--The forms and related material for the crop 
year which are available for public inspection in your agent's office, 
and which show the amounts of insurance or production guarantees, 
coverage levels, premium rates, prices for computing indemnities, 
practices, insurable acreage, and other related information regarding 
crop insurance in the county.
    (e) Another use, notice of--The written notice required when you 
wish to put acreage to another use (see section 14).
    (f) Application--The form required to be completed by you and 
accepted by us before insurance coverage will commence. This form must 
be completed and filed in your agent's office not later than the sales 
closing date of the initial insurance year for each

[[Page 340]]

crop for which insurance coverage is requested. If a break in insurance 
coverage occurs, a new application must be filed.
    (g) ASCS--The Agricultural Stabilization and Conservation Service of 
the United States Department of Agriculture.
    (h) ASCS Farm Serial Number--The number assigned to the farm by the 
ASCS County Committee.
    (i) Assignment of indemnity--A transfer of policy rights, made on 
our form, and effective when approved by us. It is the arrangement 
whereby you assign your right to an indemnity payment to any party of 
your choice for the crop year.
    (j) Cancellation date--The calendar date specified in each crop 
provision on which that crop provision will automatically renew unless 
canceled in writing by either you or us.
    (k) Claim for indemnity--A claim made on our form by you for damage 
or loss to an insured crop and submitted to us not later than 60 days 
after the end of the insurance period (see section 14).
    (l) Consent--Approval in writing by us allowing you to take a 
specific action.
    (m) Contract--(also see ``Policy'') This policy is a contract 
between you and us consisting of the accepted Application, these Basic 
Provisions, the Crop Provisions, the Special Provisions, the Actuarial 
Table for the insured crops, and the applicable regulations as published 
at 7 CFR part 401.
    (n) Contract change date--The calendar date by which we make any 
contract (policy) changes available for inspection in the agent's office 
(see section 4).
    (o) County--The county or other political subdivision shown on your 
accepted application.
    (p) Coverage--The insurance provided by this policy, against insured 
loss of production or value, by unit as shown on your summary of 
coverage.
    (q) Coverage begins, date--The calendar date insurance begins on the 
insured crop, as contained in the crop provision, or the date after 
planting is started on the unit (see section 11).
    (r) Crop Provisions--The part of the policy that contains the 
specific provisions of insurance for each insured crop.
    (s) Crop year--The period within which the insured crop is normally 
grown and designated by the calendar year in which the insured crop is 
normally harvested.
    (t) Damage--Injury, deterioration, or loss of production of the 
insured crop due to insured or uninsured causes.
    (u) Damage, notice of--A written notice required to be filed in your 
agent's office whenever you initially discover the insured crop has been 
damaged to the extent that a loss is probable (see section 14).
    (v) Delinquent account--Any account you have with us in which 
premiums, or interest on those premiums is not paid by the termination 
date specified in the crop provisions, or any other amounts due us, such 
as indemnities found not to have been earned, which are not paid within 
30 days of our mailing or other delivery of notification to you of the 
amount due.
    (w) Earliest planting date--The earliest date established for 
planting the insured crop and qualifying for a replant payment if 
applicable (see special provisions and section 13).
    (x) End of insurance period, date of--The date upon which your crop 
insurance coverage ceases for the crop year. (See crop provisions and 
section 11).
    (y) Insured--The named person as shown on the application accepted 
by us. This term does not extend to any other person having a share or 
interest in the crop (for example, a partnership, landlord, or any other 
person) unless specifically indicated on the accepted application (see 
definition of ``Person'' paragraph 1.(dd)).
    (z) Insured crop--The crop defined under these basic provisions and 
the applicable crop provision as shown on the application accepted by 
us.
    (aa) Late Planting Agreement Option--Available on selected crops. An 
amendment to the insurance policy which, when planting has been delayed, 
provides insurance coverage for acreage of an insured crop planted after 
the final planting date shown on the special provisions in exchange for 
a reduction in coverage.
    (bb) Loss, notice of--The notice required to be given by you not 
later than 72 hours after certain occurrences or 15 days after the end 
of the insurance period (see section 14).
    (cc) Negligence--The failure to use such care as a reasonably 
prudent and careful person would use under similar circumstances.
    (dd) Person--An individual, partnership, association, corporation, 
estate, trust, or other legal entity, and wherever applicable, a State 
or a political subdivision or agency of a State.
    (ee) Policy--(also see ``Contract'') The basic provisions for 
insuring a specific crop. The ``Insurance Contract'' or ``Contract'' 
which is the insurance contract between you and us consisting of the 
accepted application, the basic provisions, the crop provisions, the 
special provisions, the actuarial table for the insured crop, and the 
applicable regulations as published at 7 CFR part 401.
    (ff) Practical to replant--Our determination, after loss or damage 
to the insured crop, based upon all factors, including, but not limited 
to moisture availability, condition of the field, time to crop maturity, 
etc., on the feasibility of replanting and harvesting the insured crop. 
It is not practical to replant after the final planting date (for crops 
without an offered Late Planting Agreement Option) or after 20 days 
after the final planting

[[Page 341]]

date (for crops with an offered Late Planting Agreement Option).
    (gg) Premium billing date--The earliest date upon which you will be 
billed for insurance coverage based on your acreage report and which 
generally falls at or near harvest time.
    (hh) Price election--The amounts determined by FCIC and contained in 
the actuarial table, to be used as a basis for computing the amount per 
unit of production which will be paid in the event of a loss under the 
policy.
    (ii) Production report--A written record showing your annual 
production and used by us to determine your yield for insurance purposes 
(see section 3). The report contains previous years yield information 
including planted acreage and harvested production. This report must be 
supported by written verifiable records from a warehouseman or buyer of 
the insured crop or by measurement of farm stored production, or by 
other records of production approved by us on an individual case basis.
    (jj) Reporting date--The acreage reporting date (contained in the 
special provisions) by which you are required to report all your 
insurable acreage in the county in which you have a share and your share 
at the time insurance attaches, and any acreage in which you have a 
share which is not insured (see section 9.).
    (kk) Representative sample--Portions of the insured crop or insured 
crop residue which are required to remain in the field for examination 
and review by our loss adjusters when making a crop appraisal if 
required by the crop provisions. The samples are further defined in the 
crop provisions.
    (ll) Sales closing date--The date contained in the special 
provisions which is the final date when an application may be filed. 
This is the last date for you to make changes in your crop insurance 
coverage for the crop year.
    (mm) Section (for the purposes of unit structure)--A unit of measure 
under a rectangular survey system describing a tract of land usually one 
mile square and usually containing approximately 640 acres.
    (nn) Share--Your percentage of interest in the insured crop as an 
owner, operator, or tenant at the time coverage begins. However, only 
for the purpose of determining the amount of indemnity, your share will 
not exceed your share at the earlier of the time of loss or the 
beginning of harvest. Unless the accepted application clearly indicates 
that insurance is requested for a partnership or joint venture, or is 
intended to cover the landlord's, or tenant's share of the crop (see 
section 10), insurance will only cover the crop share of the person 
completing the application. The share will not extend to any other 
person having an interest in the crop except as may otherwise be 
specifically allowed in this policy. We may consider any acreage or 
interest reported by or for your spouse, child or any member of your 
household to be your share. Leases containing provisions for both a cash 
or minimum payment and a crop share will be considered a crop share 
lease.
    (oo) Special provisions--The part of the policy that contains 
specific provisions of insurance for each insured crop that may vary by 
geographic area.
    (pp) State--The state shown on your accepted application.
    (qq) Summary of coverage--Our statement to you, based upon your 
acreage report, by unit, specifying the insured crop and the guarantee 
or amount of insurance coverage provided.
    (rr) Tenant--A person who rents land from another person for a share 
of the crop or a share of the proceeds of the crop (see the definition 
of ``share'' above).
    (ss) Termination date--The calendar date contained in the crop 
provisions upon which your policy ceases for nonpayment of premium or 
any other amount due us under the policy.
    (tt) Unit--All insurable acreage of the insured crop in the county 
on the date coverage begins for the crop year:
    (1) In which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another specific 
entity on a share basis.
(For example, if, in addition to the land you own, you rent land from 
five landlords, three on a crop share basis and two on a cash basis, you 
would be entitled to four units, one for each crop share lease and one 
for the two cash leases and the land you own). Land rented for cash, a 
fixed commodity payment, or a consideration other than a share in the 
insured crop on such land will be considered as owned by the lessee (see 
``Share'' above). Land which would otherwise be one unit may, in certain 
instances, be divided according to guidelines contained in the 
applicable crop provisions. Units will be determined when the acreage is 
reported but may be adjusted or combined to reflect the actual unit 
structure when adjusting a loss. However, no further division may be 
made after the acreage report date for any reason.

            2. Life of Policy, Cancellation, and Termination

    (a) This is a continuous policy and will remain in effect for each 
crop year following the acceptance of the original application. After 
acceptance of the application, you may not cancel this policy the 
initial crop year. Thereafter, the policy will continue in force for 
each succeeding crop year unless canceled or terminated as provided 
below.

[[Page 342]]

    (b) Either you or we may cancel this policy after the initial crop 
year by providing written notice to the other on or before the 
cancellation date shown in the crop provisions.
    (c) All policies issued by us under the authority of the Federal 
Crop Insurance Act will terminate as of the coincidental or next 
termination date contained in these policies if any amount due us is not 
paid on or before the termination date for the crop on which the amount 
is due. Such unpaid debts will also make you ineligible for any crop 
insurance provided under the Federal Crop Insurance Act until payment is 
made. If we deduct any amount due us from an indemnity, the date of 
payment for the purpose of this paragraph will be the date you sign the 
properly completed claim for indemnity.
    (d) If you die, disappear, or are judicially declared incompetent, 
or if you are an entity other than an individual and such entity is 
dissolved, the policy will terminate as of the date of death, judicial 
declaration, or dissolution. If such event occurs after coverage begins 
for any crop year, the policy will continue in force through the crop 
year and terminate at the end of the insurance period and any indemnity 
will be paid to the person or persons determined to be beneficially 
entitled to the indemnity. Death of a partner in a partnership will 
dissolve the partnership unless the partnership agreement provides 
otherwise. If two or more persons having a joint interest are insured 
jointly, death of one of the persons will dissolve the joint entity.
    (e) Your policy will terminate if no premium is earned for 3 
consecutive years.
    (f) The cancellation and termination dates are contained in the crop 
provisions.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) For each crop year the production guarantee or amount of 
insurance, coverage level, and price at which an indemnity will be 
determined for each unit will be those used to calculate your summary of 
coverage. The information necessary to determine those factors will be 
contained in the special provisions or in the actuarial table.
    (b) You may select only one coverage level offered by us for each 
insured crop. By written notice to us you may change the coverage level, 
price election, or amount of insurance for the following crop year not 
later than the sales closing date for the affected insured crop. If you 
do not elect a coverage level, we will assign the coverage level which 
is designated for that purpose in the special provisions. Since the 
price election or amount of insurance may change each year, if you do 
not select a new price election or amount of insurance before the next 
insurance year prior to the sales closing date, we will assign the price 
election or amount of insurance which bears the same relationship to the 
price election schedule as the price election or amount of insurance in 
effect for the preceding year.
    (c) You must report production to us for the previous crop year by 
the earlier of the acreage reporting date or 45 days after the 
cancellation date. If you do not provide the required production report, 
we will assign a yield for the previous crop year. The yield assigned by 
us will not be more than 75% of the yield used by us to determine your 
coverage for the previous crop year. The production report or assigned 
yield will be used to compute your production history for the purpose of 
determining your coverage for the current crop year. If you have filed a 
claim for any crop year, the production used to determine the indemnity 
payment will be the production report for that year.
    (d) We may revise your production guarantee for any farm unit, and 
revise any indemnity paid based on that production guarantee, if we find 
that your production report under paragraph (c) above:
    (1) Is not supported by written verifiable records (see paragraph 
1.(ii)); or
    (2) Fails to accurately report actual production.

                           4. Contract changes

    We may change the coverage under this policy from year to year. Your 
crop insurance agent will have changes in policy provisions, price 
elections, amounts of insurance, premium rates and program dates by the 
contract change date contained in the crop provisions. In addition, you 
will be notified, in writing, of these changes. Such notification will 
be made at least 30 days prior to the cancellation date of the insured 
crop.

                            5. Liberalization

    If we adopt any revisions which would broaden the coverage under 
this policy subsequent to the contract change date without additional 
premium, the broadened coverage will apply.

                          6. Report of Acreage

    (a) An annual acreage report must be submitted to us on our form for 
each insured crop in the county on or before the acreage reporting date 
shown in the special provisions. This report must include the following 
information, if applicable:
    (1) All acreage of the crop (insurable and not insured) in which you 
have a share;
    (2) Your share at the time coverage begins;
    (3) The practice;
    (4) The type; and
    (5) The date the insured crop was planted.
    (b) If you do not have a share in any insured crop in the county for 
the crop year, you must submit an acreage report so indicating.

[[Page 343]]

    (c) Because incorrect reporting on the acreage report may have the 
effect of changing your premium and any indemnity which may be due, you 
may not revise this report after the acreage reporting date without our 
consent.
    (d) We may elect to determine all premiums and indemnities based on 
the information you submit on the acreage report or upon the factual 
circumstances which we determine to have actually existed.
    (e) If you do not submit an acreage report by the acreage reporting 
date, or if you fail to report all units, we may elect to determine by 
unit the insurable crop acreage, share, type and practice or deny 
liability on any unit.
    (f) If the information reported by you on the acreage report for a 
unit results in a lower premium than the actual premium determined to be 
due on the basis of the share, acreage, practice, type or other material 
information determined to actually exist, the production guarantee or 
amount of insurance on the unit will be reduced proportionately. In the 
event that acreage is under-reported, all production or value from 
insurable acreage for the unit, whether or not reported as insurable, 
will be considered production or value to count in determining the 
indemnity.
    (g) Errors in reporting units may be corrected by us to reduce our 
liability and to conform to applicable unit division guidelines at the 
time of adjusting a loss.

                            7. Annual Premium

    (a) The annual premium is earned and payable at the time coverage 
begins. You will be billed for premium due not earlier than the billing 
date specified in the special provisions. The premium due, plus any 
accrued interest, will be considered delinquent if any amount due us is 
not paid on or before the termination date specified in the crop 
provisions.
    (b) Any amount due us will be deducted from any replant payment or 
indemnity due you under the provisions of this policy.
    (c) The annual premium amount is determined by either:
    (1) Multiplying the production guarantee per acre times the price 
election, times the premium rate, times the insured acreage, times your 
share at the time coverage begins, times any premium adjustment 
percentages that may apply; or
    (2) Multiplying the amount of insurance per acre times the premium 
rate, times the insured acreage, times your share at the time coverage 
begins, times any premium adjustment percentages that may apply.

                             8. Insured Crop

    (a) The insured crop will be that shown on your accepted application 
and as specified in the crop provisions and must be grown on insurable 
acreage.
    (b) A crop which will NOT be insured will include, but will not be 
limited to, any crop:
    (1) If the farming practices carried out are not in accordance with 
the farming practices for which the premium rates, production guarantees 
or amounts of insurance have been established;
    (2) Initially planted after the final planting date, unless we allow 
and you agree in writing on our form, to a coverage reduction (this Late 
Planting Agreement Option is available only on selected crops);
    (3) Of a type, class or variety established as not adapted to the 
area or excluded by the special provisions;
    (4) That is a volunteer crop;
    (5) That is a second crop following the same crop (insured or not 
insured) harvested in the same crop year unless specifically permitted 
by the crop provisions or the special provisions;
    (6) Which is planted for the development or production of hybrid 
seed or for experimental purposes, unless permitted by the crop 
provisions or unless we agree, in writing, to insure such crop; or
    (7) Used for wildlife protection or management.

                          9. Insurable Acreage

    (a) Acreage planted to the insured crop in which you have a share is 
insurable unless it is acreage:
    (1) On which a crop has not been planted or harvested in a least one 
of the three previous crop years, unless ASCS classifies such acreage as 
cropland;
    (2) Which has been strip-mined, unless we agree in writing to insure 
such acreage;
    (3) On which the insured crop is damaged and it is practical to 
replant the insured crop, but the insured crop is not replanted;
    (4) Which is planted with a crop other than the insured crop, unless 
allowed by the crop provisions; or
    (5) Which is otherwise restricted by the crop provisions of special 
provisions.
    (b) If insurance is provided for an irrigated practice, you must 
report as irrigated only that acreage for which you have adequate 
facilities and water, at the time coverage begins, to carry out a good 
irrigation practice.
    (c) If acreage is irrigated and we do not provide a premium rate for 
an irrigated practice, you may either report and insure the irrigated 
acreage as ``nonirrigated,'' or report the irrigated acreage as not 
insured.
    (d) We may restrict the amount of acreage which we will insure to 
the amount allowed under any acreage limitation program established by 
the United States Department of Agriculture if we notify you of that 
restriction prior to the sales closing date.

[[Page 344]]

                            10. Share Insured

    (a) You may only insure your share as defined in subparagraph 1(nn) 
above.
    (b) You as a landlord (or tenant) may insure your tenant's (or 
landlord's) share of the crop if evidence of the other party's approval 
of that insurance is demonstrated (Lease, Power of Attorney, etc.). The 
respective shares must be clearly set out on the Acreage Report and a 
copy of the other party's approval must be retained by us.

                          11. Insurance Period

    Coverage begins on each unit or part of a unit the later of the date 
you submit your application, when the insured crop is planted, or on the 
calendar date for the beginning of the insurance period if specified in 
the crop provisions, and ends at the earliest of:
    (a) Total destruction of the insured crop on the unit;
    (b) Harvest of the unit;
    (c) Final adjustment of a loss on a unit;
    (d) The calendar date for the end of the insurance period contained 
in the crop provisions;
    (e) Abandonment of the crop on the unit; or
    (f) As otherwise specified in the crop provisions.

                           12. Causes of Loss

    The insurance provided is against only unavoidable loss of 
production directly caused by specific causes of loss contained in the 
crop provisions. All other causes of loss, including but not limited to 
the following, are NOT covered:
    (a) Negligence, mismanagement, or wrongdoing by you, any member of 
your family or household, your tenants, or employees;
    (b) The failure to follow recognized good farming practices for the 
insured crop;
    (c) Water contained by any governmental, public, or private dam or 
reservoir project;
    (d) Failure or breakdown of irrigation equipment or facilities; or
    (e) Failure to carry out a good irrigation practice for the insured 
crop if applicable.


                         13. Replanting Payment

    (a) If allowed by the crop provisions, a replanting payment may be 
made on an insured crop replanted after we have given consent and the 
acreage replanted is at least the lesser of 20 acres or 20 percent of 
the insured acreage for the unit (as determined on the final planting 
date).
    (b) No replanting payment will be made on acreage:
    (1) On which our appraisal establishes that production will exceed 
the level set by the crop provisions;
    (2) Initially planted prior to the date established by the special 
provisions; or
    (3) On which one replanting payment has already been allowed for the 
crop year.
    (c) The replanting payment per acre will be your actual cost for 
replanting, but will not exceed the amount determined in accordance with 
the crop provisions.
    (d) If the information reported by you on the acreage report results 
in a lower premium than the actual premium determined to be due based on 
the acreage, share, practice, or type determined actually to have 
existed, the replanting payment will be reduced proportionately.
    (e) No replanting payment will be paid for replanting any crop if we 
determine it is not practical to replant (see subparagraph 1.(ff)).

                14. Duties in the Event of Damage or Loss

                              Your Duties--

    (a) In case of damage to any insured crop you must:
    (1) Protect the crop from further damage by providing sufficient 
care;
    (2) Give us notice within 72 hours of your initial discovery of 
damage (but not later than 15 days after the end of the insurance 
period), by unit, for each insured crop; and
    (3) Leave representative samples intact for each field of the 
damaged unit as may be required by the crop provisions.
    (b) You must obtain consent from us before, and notify us after you:
    (1) Destroy any of the insured crop which is not harvested;
    (2) Put the insured crop to an alternative use;
    (3) Put the acreage to another use; or
    (4) Abandon any portion of the insured crop. We will not give such 
consent if it is practical to replant the crop or until we have made an 
appraisal of the potential production of the crop.
    (c) In addition to complying with all other notice requirements, you 
must submit a claim for indemnity declaring the amount of your loss not 
later than 60 days after the end of the insurance period. This claim 
must include all the information we require to settle the claim.
    (d) Upon our request, you must:
    (1) Provide a complete harvesting and marketing record of each 
insured crop by unit including separate records showing the same 
information for production from any acreage not insured; and
    (2) Submit to examination under oath:
    (e) You must establish the total production or value received for 
the insured crop on the unit and that any loss of production or value 
has been directly caused by one or more of the insured causes (see crop 
provisions) during the insurance period.
    (f) All notices required in this paragraph that must be received by 
us within 72 hours may be made by telephone or in person to

[[Page 345]]

your crop insurance agent but must be confirmed in writing within 15 
days.

                              Our Duties--

    (a) If you have complied with all the policy provisions we will pay 
your loss within 30 days after:
    (1) We reach agreement with you; or
    (2) The entry of a final judgment by a court of competent 
jurisdiction.
    (b) In the event we are unable to pay your loss within 30 days, we 
will give you notice of our intentions within the 30 day period.
    (c) We may defer the adjustment of a loss until the amount of loss 
can be accurately determined. We will not pay for additional damage 
resulting from your failure to provide sufficient care for the crop 
during the deferral period.
    (d) We recognize and apply the loss adjustment procedures 
established or approved by the Federal Crop Insurance Corporation.

           15. Production Included in Determining Indemnities

    (a) The total production to be counted for a unit will include all 
production determined in accordance with the policy.
    (b) The amount of production of any unharvested insured crop may be 
determined on the basis of our field appraisals conducted after the end 
of the insurance period.
    (c) If you elect to exclude hail and fire as insured causes of loss 
and the insured crop is damaged by hail or fire, appraisals will be made 
in accordance with the applicable Form FCI-78 or FCI-78-A, ``Request To 
Exclude Hail and Fire'' or a form which contains the same terms.

                          16. Crops as Payment

    You must not abandon any crop to us. We will not accept any crop as 
compensation for payments due us.

------------------------------------------------------------------------
         For FCIC policies                  For reinsured policies      
17. Appeals                          17. Arbitration                    
All determinations required by the   If you and we fail to agree on any 
 policy will be made by us. If you    factual determination,            
 disagree with our determinations,    disagreement will be resolved, in 
 you may obtain reconsideration of    accordance with the rules of the  
 or appeal those determinations in    American Arbitration Association. 
 accordance with Appeal Regulations   Failure to agree with any factual 
 (7 CFR part 400, subpart J).         determination made by the Federal 
                                      Crop Insurance Corporation (FCIC) 
                                      must be resolved through the FCIC 
                                      appeal regulation at 7 CFR part   
                                      400, subpart J.                   
                                                                        
------------------------------------------------------------------------

             18. Access to Insured Crop and Record Retention

    (a) We reserve the right to examine the insured crop as often as we 
reasonably require.
    (b) For three years after the end of the crop year, you must retain, 
and provide upon our request, complete records of the harvesting, 
storage, shipment, sale, or other disposition of all the insured crop 
produced on each unit. This requirement also applies to the records used 
to establish the basis for the production report for each unit. You must 
also upon our request, provide separate records showing the same 
information for production from any acreage not insured. We may extend 
the record retention period beyond three years by notifying you of such 
extension in writing. Your failure to keep and maintain such records 
may, at our option, result in:
    (1) Cancellation of the policy;
    (2) Assignment of production to units by us; or
    (3) A determination that no indemnity is due.
    (c) Any person designated by us will, at any time during the record 
retention period, have access:
    (1) To any records relating to this insurance at any location where 
such records may be found or maintained; and
    (2) To the farm.
    (d) By applying for insurance under the Act or by continuing 
insurance previously applied for, you authorize us, or any person acting 
for us, to obtain records relating to the insured crop from any person 
who may have custody of those records including, but not limited to, 
county ASCS offices, banks, warehouses, gins, cooperatives, marketing 
associations, accountants, etc. You must assist us in obtaining all 
records which we request from third parties.

                           19. Other Insurance

    (a) Other Like Insurance. You must not obtain any other crop 
insurance issued under the authority of the Federal Crop Insurance Act 
on your share of the insured crop. If we determine that more than one 
policy on your share is intentional, you may be subject to the fraud 
provisions under this policy. If we

[[Page 346]]

determine that the violation was not intentional, the policy with the 
earliest date of application will be in force and all other policies 
will be void. Nothing in this paragraph prevents you from obtaining 
other insurance not issued under the Act.
    (b) Other Insurance Against Fire. If you have other insurance, 
whether valid or not, against damage to the insured crop by fire during 
the insurance period, and you have not excluded coverage for fire from 
this policy, we will be liable for loss due to fire only for the smaller 
of:
    (1) The amount of indemnity determined pursuant to this policy 
without regard to any other insurance; or
    (2) The amount by which the loss from fire is determined to exceed 
the indemnity paid or payable under such other insurance.
    For the purpose of this paragraph, the amount of loss from fire will 
be the difference between the fair market value of the production of the 
insured crop on the unit involved before the fire and after the fire, as 
determined from appraisals made by us.

                   20. Conformity to Food Security Act

    Although your violation of a number of federal statutes, including 
the Federal Crop Insurance Act, may cause cancellation, termination, or 
voidance of your insurance contract, you should be aware that your 
policy will be cancelled if you are determined to be ineligible to 
receive benefits under the Federal Crop Insurance Act due to violation 
of the Conservation Provision (title XII) or the Controlled Substance 
Provision (title XVII) of the Food Security Act of 1985 (Pub. L. 99-198) 
and the regulations promulgated under the Act by the United States 
Department of Agriculture (USDA). Your insurance policy will be 
cancelled if you are determined, by the appropriate United States 
Government (USDA) Agency, to be in violation of these provisions. We 
will recover any and all monies paid to you or received by you and your 
premium will be refunded.

------------------------------------------------------------------------
                                                                        
21. Amounts Due Us                   21. Amounts Due Us                 

[[Page 347]]

                                                                        
(a) Any delinquent amount due us     (a) Interest will accrue at the    
 may be deducted from any loan or     rate of one and one-fourth percent
 payment due you under any Act of     (1\1/4\%) simple interest per     
 Congress or program administered     calendar month, or any part       
 by the United States Department of   thereof, on any unpaid amount due 
 Agriculture or its Agencies or       us. For the purpose of premium    
 from any amount due you from any     amounts due us, the interest will 
 other United States Government       start on the first day of the     
 Agency.                              month following the premium       
(b) Interest will accrue at the       billing date specified in the     
 rate of one and one-fourth percent   special provisions.               
 (1\1/4\%) simple interest per       (b) For the purpose of any other   
 calendar month, or any part          amounts due us, such as repayment 
 thereof, on any unpaid amount due    of indemnities found not to have  
 us. For the purpose of premium       been earned, interest will start  
 amounts due us, interest will        on the date that notice is issued 
 start on the first day of the        to you for the collection of the  
 month following the premium          unearned amount. Amounts found due
 billing date specified in the        under this paragraph will not be  
 special provisions.                  charged interest if payment is    
(c) For the purpose of any other      made within 30 days of issuance of
 amounts due us, such as repayment    the notice by us. The amount will 
 of indemnities found not to have     be considered delinquent if not   
 been earned, interest will start     paid within 30 days of the date   
 on the date that notice is issued    the notice is issued by us.       
 to you for the collection of the    (c) All amounts paid will be       
 unearned amount. Amounts found due   applied first to expenses of      
 under this paragraph (c) will not    collection (see (d) below) if any,
 be charged interest if payment is    second, to the reduction of       
 made within 30 days of issuance of   accrued interest, and then to the 
 the notice by us. The amount will    principal balance.                
 be considered delinquent if not     (d) If we determine that it is     
 paid within 30 days of the date      necessary to contract with a      
 the notice is issued by us.          collection agency or to employ an 
(d) Penalties and interest will be    attorney to assist in collection, 
 charged in accordance with 31        you agree to pay all of the       
 U.S.C. 3717 and 4 CFR 102.13. The    expenses of collection. Those     
 penalty for accounts more than 90    expenses will be paid before the  
 days delinquent (31 U.S.C.           application of any amounts to     
 3717(e)(2) and 4 CFR 102.13(e) is    interest or principal.            
 six percent (6%) per annum.                                            
(e) Interest on any amount due us                                       
 found to have been received by you                                     
 because of fraud,                                                      
 misrepresentation or presentation                                      
 by you of a false claim will start                                     
 on the date you received the                                           
 amount with the 6% penalty                                             
 beginning on the 31st day after                                        
 the notice of amount due is issued                                     
 to you. This interest is in                                            
 addition to any other amount found                                     
 to be due under any other Federal                                      
 criminal or civil statute.                                             
(f) If we determine that it is                                          
 necessary to contract with a                                           
 collection agency or to employ an                                      
 attorney to assist in collection,                                      
 you agree to pay all of the                                            
 expenses of collection.                                                
(g) All amounts paid will be                                            
 applied first to the payment of                                        
 the expenses of collection                                             
 accounts, second to the reduction                                      
 of any penalties which may have                                        
 been assessed, then to reduction                                       
 of accrued interest, then to                                           
 reduction of the principal                                             
 balance.                                                               
                                                                        
------------------------------------------------------------------------

                       22. Legal Action Against Us

    (a) You may not bring legal action against us unless you have 
complied with all of the policy provisions.
    (b) If you do take legal action against us you must do so within 12 
months of the date of denial of the claim. Suit must be brought in 
accordance with the provisions of 7 U.S.C. 1508(c).
    (c) Your right to recover damages (compensatory, punitive, or 
other), attorney's fees, or other charges is limited or excluded by this 
contract or by Federal Regulations.

                  23. Payment and Interest Limitations

    (a) Under no circumstances will we be liable for the payment of 
damages (compensatory, punitive, or other), attorney's fees,

[[Page 348]]

or other charges in connection with any claim for indemnity, whether we 
approve or disapprove such claim.
    (b) We will pay simple interest computed on the net indemnity 
ultimately found to be due by us or by a final judgment of a court of 
competent jurisdiction, from and including the 61st day after the date 
you sign, date, and submit to us the properly completed claim on our 
form. Interest will be paid only if the reason for our failure to timely 
pay is NOT due to your failure to provide information or other material 
necessary for the computation or payment of the indemnity. The interest 
rate will be that established by the Secretary of the Treasury under 
section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), and 
published in the Federal Register semiannually on or about January 1 and 
July 1 of each year and may vary with each publication.

               24. Concealment, Misrepresentation or Fraud

    This policy will be void in the event you have falsely or 
fraudulently concealed either the fact that you are restricted from 
receiving benefits under the Federal Crop Insurance Act or that action 
is pending which may restrict your eligibility to receive such benefits. 
We will also void this policy if you or anyone assisting you has 
intentionally concealed or misrepresented any material fact relating to 
this or any other FCIC or FCIC reinsured policy. This voidance will not 
affect your obligation to pay premiums or waive any of our rights under 
this policy, including the right to collect any amount due us. The 
voidance will be effective as of the time coverage began for the crop 
year within which such act occurred.

             25. Transfer of Coverage and Right to Indemnity

    If you transfer any part of your share during the crop year, you may 
transfer your coverage rights. The transfer must be on our form and 
approved by us. Both you and the person to whom you transfer your 
interest are jointly and severally liable for the payment of the 
premium. The transferee has all rights and responsibilities under this 
policy consistent with the transferee's interest.

                       26. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year. The assignment must be on our form and will not be effective 
until approved in writing by us. The assignee will have the right to 
submit all loss notices and forms as required by the policy.

          27. Subrogation (Recovery of loss from a third party)

    Because you may be able to recover all or a part of your loss from 
someone other than us, you must do all you can to preserve this right. 
If we pay you for your loss, your right to recovery will, at our option, 
belong to us. If we recover more than we paid you plus our expenses, the 
excess will be paid to you.

              28. Applicability of State and Local Statutes

    If the provisions of this policy conflict with statutes of the State 
in which this policy is issued, the policy provisions will prevail. 
State and local laws and regulations in conflict with federal statutes, 
this contract, and the applicable regulations do not apply to this 
policy.

                        29. Descriptive Headings

    The descriptive headings of the various policy provisions are 
formulated for convenience only and are not intended to affect the 
construction or meaning of any of the policy provisions.

                               30. Notices

    All notices required to be given by you must be in writing and 
received by your crop insurance agent within the designated time unless 
otherwise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice. If the date by which you are required to 
submit a report or notice falls on Saturday, Sunday, or Federal holiday, 
or, if your agent's office is, for any reason, not open for business on 
the date you are required to submit such notice or report, such notice 
or report must be submitted on the next business day. All notices and 
communications required to be sent by us to you will be mailed to the 
address contained in your records located with your Crop Insurance 
Agent. You should advise us immediately of any change of address.

[56 FR 1351, Jan. 14, 1991, as amended at 58 FR 58262, 58263, Nov. 1, 
1993; 59 FR 42751, Aug. 19, 1994]



Sec. 457.9  Appropriation contingency.

    Notwithstanding the cancellation date stated in the policy, if there 
are insufficient funds appropriated by the Congress to deliver the crop 
insurance program, the policy will automatically terminate without 
liability.

[59 FR 45972, Sept. 6, 1994]
Sec. 457.10-457.100  [Reserved]



Sec. 457.101  Small Grains Crop Insurance.

    The Small Grains Crop Insurance provisions for the 1995 and 
succeeding crop years are as follows:

[[Page 349]]

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                      Small Grains Crop Provisions

    If a conflict exists between the Common Crop Insurance Policy 
(Sec. 457.8) and the Special Provisions, the Special Provisions will 
control. If a conflict exists between these Crop Provisions and the 
Special Provisions, the Special Provisions will control.

                             1. Definitions

    (a) Adequate stand--A population of live plants per unit of acreage 
which will produce at least the yield used to establish your production 
guarantee.
    (b) Days--Calendar days.
    (c) Final planting date--The date contained in the Special 
Provisions by which the insured crop must initially be planted in order 
to be insured for the full production guarantee.
    (d) Good farming practices--The cultural practices necessary for the 
insured crop to make usual and normal progress toward maturity and which 
can be expected to produce at least the yield used to determine the 
production guarantee. Good farming practices are generally those in use 
in the county for production of the insured crop and are recognized by 
the Cooperative Extension Service as compatible with agronomic and 
weather conditions in the area.
    (e) Harvest--Combining or threshing the insured crop for grain or 
cutting for hay or silage on any acreage. A crop which is swathed prior 
to combining is not considered harvested.
    (f) Initially planted--The first occurrence of planting the insured 
crop on insurable acreage for the crop year.
    (g) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the production guarantee on the irrigated acreage planted to the insured 
crop.
    (i) Late planted--Acreage planted during the late planting period.
    (j) Late planting period--(not applicable for fall-planted wheat)--
The period that begins the day after the final planting date for the 
insured crop and ends twenty-five (25) days after the final planting 
date.
    (k) Latest final planting date--
    (1) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate a final planting 
date for spring-planted acreage only;
    (2) The final planting date for fall-planted acreage in all counties 
for which the Special Provisions designate a final planting date for 
fall-planted acreage only; or
    (3) The final planting date for spring-planted acreage in all 
counties for which the Special Provisions designate final planting dates 
for both spring-planted and fall-planted acreage.
    (l) Local market price--The cash grain price per bushel for the U.S. 
No. 2 grade of the insured crop offered by buyers in the area in which 
you normally market the insured crop. The local market price will 
reflect the maximum limits of quality deficiencies allowable for the 
U.S. No. 2 grade of the insured crop. Factors not associated with 
grading under the Official United States Standards for Grain, including 
but not limited to protein, oil or moisture content, or milling quality 
will not be considered.
    (m) Nurse crop (companion crop)--A crop planted into the same 
acreage as another crop, that is intended to be harvested separately, 
and which is planted to improve growing conditions for the crop with 
which it is grown.
    (n) Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed which has been properly prepared for the planting 
method and production practice. Except for flax, land on which seed is 
initially spread onto the soil surface by any method and subsequently is 
mechanically incorporated into the soil in a timely manner and at the 
proper depth will be considered planted. Flax seed must initially be 
placed in rows to be considered planted.
    (o) Practical to replant--(subsection 1.(ff) of the Common Crop 
Insurance Policy (Sec. 457.8) does not apply to small grains.) Our 
determination, after loss or damage to the insured crop, based on 
factors, including but not limited to moisture availability, condition 
of the field, time to crop maturity, etc., that a replanting of the 
insured crop will attain maturity in the remainder of the crop year. It 
will not be considered practical to replant after the end of the late 
planting period or the final planting date if a late planting period is 
not applicable (see section 7) except that it may be determined 
practical to replant after the end of the late planting period or the 
final plant date if such procedure is generally occurring in the area.
    (p) Prevented planting--Inability to plant the insured crop with 
proper equipment by the latest final planting date designated in the 
Special Provisions for the insured crop in the county or the end of the 
late planting period. You must have been unable to plant the insured 
crop due to an insured cause of loss that has prevented the majority of 
producers in the surrounding area from planting the same crop.

[[Page 350]]

    (q) Production guarantee--The number of bushels determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (r) Replanting--Performing the cultural practices necessary to 
replace seed for the insured crop, and replacing the seed in the insured 
acreage with the expectation of growing a successful crop.
    (s) Small grains--Wheat, barley, oats, rye, and flax.
    (t) Swathed--Severance of the stem and grain head from the ground 
without removal of the seed from the head and placing into a windrow.
    (u) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Common Crop Insurance policy (Sec. 457.8) may 
be divided into optional units if, for each optional unit you claim, all 
the conditions of subsections 2.(a), (b), and (c), and the conditions of 
paragraph 2.(d)(1), (d)(2 , or (d)(3) are met, or if we agree to such 
division in writing. Optional units must be established at the time you 
file your report of acreage for each crop year.
    (a) You must have verifiable records of planted acreage and 
production for each optional unit for at least the last crop year used 
to determine your production guarantee.
    (b) You must plant the crop in a manner which results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have measurements of stored production or market 
production from each optional unit in a manner that permits us to verify 
the production from the optional unit.
    (d) Each optional unit must meet one or more of the following:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate section. In the absence of sections, we may 
consider parcels of land legally identified by other methods of measure 
including, but not limited to: Spanish grants, railroad surveys, 
leagues, labors, or Virginia Military Lands. In areas which have not 
been surveyed using the systems identified above or another system 
approved by us, and in areas where boundaries are not readily 
discernable, each optional unit must be located in separate ASCS Farm 
Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing optional 
units by section, section equivalent, or ASCS Farm Serial Number, 
optional units may be established if each optional unit contains only 
irrigated acreage or only non-irrigated acreage. The irrigated acreage 
may not extend beyond the point at which your irrigation system can 
deliver the quantity of water needed to produce the yield on which your 
guarantee is based. You must plant, cultivate, fertilize, or otherwise 
care for the irrigated acreage and the non-irrigated acreage in an 
appropriate manner.
    (3) Optional Units by Initially Planted Winter Wheat or Initially 
Planted Spring Wheat: For wheat only, in addition to or instead of 
establishing optional units by section, section equivalent, or ASCS Farm 
Serial Number as described in paragraph 2.(d)(1) or by irrigated and 
non-irrigated practices as described in paragraph 2.(d)(2), optional 
units maybe established if each optional unit contains only initially 
planted winter wheat or only initially planted spring wheat. Optional 
units may be established in this manner only in counties having both 
fall and spring final planting dates as designated by the Special 
Provisions.
    Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other than 
as described under this section. If you do not comply fully with these 
conditions, we will combine all optional units which are not established 
in compliance with these provisions into the basic unit from which they 
were formed. We may do this at any time we discover that you have failed 
to comply with these conditions. If failure to comply with these 
provisions is determined to be inadvertent, and if the optional units 
are combined, the premium paid for electing optional units will be 
refunded to you.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements under section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for determining Indemnities) of 
the Common Crop Insurance Policy (Sec. 457.8) you may select only one 
price election for each crop insured under this policy in the county.

                           4. Contract Changes

    The contract change date is December 31 preceding the cancellation 
date for counties with an April 15 cancellation date and June 30 
preceding the cancellation date for all other counties (see the 
provisions under section 4. (Contract changes) in the Common Crop 
Insurance Policy Sec. 457.8).

                  5. Cancellation and Termination Dates

    The cancellation and termination dates are:

[[Page 351]]



------------------------------------------------------------------------
   Crop, state and county       Cancellation date     Termination date  
------------------------------------------------------------------------
Wheat:                                                                  
    All Colorado counties     September 30          September 30.       
     except Alamosa,                                                    
     Archuleta, Conejos,                                                
     Costilla, Custer,                                                  
     Delta, Dolores, Eagle,                                             
     Garfield, Grand, La                                                
     Plata, Mesa, Moffat,                                               
     Montezuma, Montrose,                                               
     Ouray, Pitkin, Rio                                                 
     Blanco, Rio Grande,                                                
     Routt, Saguache, and                                               
     San Miguel Counties;                                               
     all Iowa Counties                                                  
     except Plymouth,                                                   
     Cherokee, Buena Vista,                                             
     Pocahontas, Humbolt,                                               
     Wright, Franklin,                                                  
     Butler, Black Hawk,                                                
     Buchanan, Delaware, and                                            
     Dubuque Counties and                                               
     all Iowa counties north                                            
     thereof; all Wisconsin                                             
     Counties except                                                    
     Trempealeau, Jackson,                                              
     Wood, Portage, Waupaca,                                            
     Outagamie, Brown, and                                              
     Kewaunee Counties and                                              
     all Wisconsin counties                                             
     north and west thereof;                                            
     and all other states                                               
     except Alaska, Arizona,                                            
     California,                                                        
     Connecticut, Idaho,                                                
     Maine, Massachusetts,                                              
     Minnesota, Montana,                                                
     Nevada, New Hampshire,                                             
     New York, North Dakota,                                            
     Oregon, Rhode Island,                                              
     South Dakota, Utah,                                                
     Vermont, Washington,                                               
     and Wyoming.                                                       
    Archuleta, Custer,        September 30          November 30.        
     Delta, Dolores, Eagle,                                             
     Garfield, Grand, La                                                
     Plata, Mesa, Moffat,                                               
     Montezuma, Montrose,                                               
     Ouray, Pitkin, Rio                                                 
     Blanco, Routt, and San                                             
     Miguel Counties,                                                   
     Colorado; Connecticut;                                             
     Idaho; Plymouth,                                                   
     Cherokee, Buena Vista,                                             
     Pocahontas, Humboldt,                                              
     Wright, Franklin,                                                  
     Butler, Black Hawk,                                                
     Buchanan, Delaware, and                                            
     Dubuque Counties, Iowa,                                            
     and all Iowa counties                                              
     north thereof;                                                     
     Massachusetts; all                                                 
     Montana counties except                                            
     Daniels, Roosevelt,                                                
     Sheridan, and Valley                                               
     Counties; New York;                                                
     Oregon; Rhode Island;                                              
     all South Dakota                                                   
     counties except                                                    
     Harding, Perkins,                                                  
     Corson, Walworth,                                                  
     Edmonds, Faulk, Spink,                                             
     Beadle, Jerauld,                                                   
     Aurora, Douglas, and                                               
     Bon Homme Counties and                                             
     all South Dakota                                                   
     counties north and east                                            
     thereof; Washington;                                               
     and all Wyoming                                                    
     counties except Big                                                
     Horn, Fremont, Hot                                                 
     Springs, Park, and                                                 
     Washakie Counties.                                                 
    Matanuska-Susitna         October 31            November 30.        
     County, Alaska;                                                    
     Arizona; California;                                               
     Nevada; and Utah.                                                  
    All Alaska Counties       April 15              April 15.           
     except Matanuska-                                                  
     Susitna County;                                                    
     Alamosa, Conejos,                                                  
     Costilla, Rio Grande,                                              
     and Saguache Counties,                                             
     Colorado; Maine;                                                   
     Minnesota; Daniels,                                                
     Roosevelt, Sheridan,                                               
     and Valley Counties,                                               
     Montana; New Hampshire;                                            
     North Dakota; Harding,                                             
     Perkins, Corson,                                                   
     Walworth, Edmunds,                                                 
     Faulk, Spink, Beadle,                                              
     Jerauld, Aurora,                                                   
     Douglas, and Bon Homme                                             
     Counties, South Dakota,                                            
     and all South Dakota                                               
     counties north and east                                            
     thereof; Vermont;                                                  
     Trempealeau, Jackson,                                              
     Wood, Portage, Waupaca,                                            
     Outagamie, Brown, and                                              
     Kewaunee Counties,                                                 
     Wisconsin, and all                                                 
     Wisconsin counties                                                 
     north and west thereof;                                            
     Big Horn, Fremont, Hot                                             
     Springs, Park, and                                                 
     Washakie Counties,                                                 
     Wyoming.                                                           
Barley:                                                                 
    All New Mexico counties   September 30          September 30.       
     except Taos County;                                                
     Oklahoma, Missouri,                                                
     Illinois, Indiana,                                                 
     Ohio, Pennsylvania, New                                            
     Jersey, and all states                                             
     south and east thereof.                                            
    Kit Carson, Lincoln,      September 30          November 30.        
     Elbert, El Paso,                                                   
     Pueblo, Las Animas                                                 
     Counties, Colorado and                                             
     all Colorado Counties                                              
     south and east thereof;                                            
     Connecticut; Kansas;                                               
     Massachusetts; and New                                             
     York.                                                              
    Arizona; California; and  October 31            November 30.        
     Clark and Nye Counties,                                            
     Nevada.                                                            
    All Colorado counties     April 15              April 15.           
     except Kit Carson,                                                 
     Lincoln, Elbert, El                                                
     Paso, Pueblo, and Las                                              
     Animas Counties and all                                            
     Colorado counties south                                            
     and east thereof; all                                              
     Nevada counties except                                             
     Clark and Nye Counties;                                            
     Taos County, New                                                   
     Mexico; and all other                                              
     states except: Arizona,                                            
     California,                                                        
     Connecticut, Kansas,                                               
     Massachusetts, New                                                 
     York; and (except)                                                 
     Oklahoma, Missouri,                                                
     Illinois, Indiana,                                                 
     Ohio, Pennsylvania, and                                            
     New Jersey and all                                                 
     states south and east                                              
     thereof.                                                           
Oats:                                                                   
    Alabama; Arkansas;        September 30          September 30.       
     Florida; Georgia;                                                  
     Louisiana; Mississippi;                                            
     All New Mexico counties                                            
     except Taos County;                                                
     North Carolina;                                                    
     Oklahoma; South                                                    
     Carolina; Tennessee;                                               
     Texas; and Patrick,                                                
     Franklin, Pittsylvania,                                            
     Campbell, Appomattox,                                              
     Fluvanna, Buckingham,                                              
     Louisa, Spotsylvania,                                              
     Caroline, Essex, and                                               
     Westmoreland Counties,                                             
     Virginia, and all                                                  
     Virginia counties east                                             
     thereof.                                                           
    Arizona; All California   October 31            October 31.         
     counties except Del                                                
     Norte, Humboldt,                                                   
     Lassen, Modoc, Plumas,                                             
     Shasta, Siskiyou and                                               
     Trinity Counties.                                                  
    Del Norte, Humbolt,       April 15              April 15.           
     Lassen, Modoc, Plumas,                                             
     Shasta, Siskiyou, and                                              
     Trinity Counties,                                                  
     California; Taos                                                   
     County, New Mexico; all                                            
     Virginia counties                                                  
     except Patrick,                                                    
     Franklin, Pittsylvania,                                            
     Campbell, Attomattox,                                              
     Fluvanna, Buckingham,                                              
     Louisa, Spotsylvania,                                              
     Caroline, Essex, and                                               
     Westmoreland Counties                                              
     and all Virginia                                                   
     counties east thereof;                                             
     and all other except                                               
     Alabama, Arizona,                                                  
     Arkansas, Florida,                                                 
     Georgia, Louisiana,                                                
     Mississippi, North                                                 
     Carolina, Oklahoma,                                                
     South Carolina,                                                    
     Tennessee, and Texas.                                              
Rye:                                                                    
    All states..............  September 30          September 30.       
Flax:                                                                   
    All states..............  April 15              April 15.           
------------------------------------------------------------------------


[[Page 352]]

                             6. Insured Crop

    (a) The crop insured will be each small grain you elect to insure, 
that is grown in the county on insurable acreage, and for which premium 
rates are provided by the actuarial table:
    (1) In which you have a share;
    (2) That is planted for harvest as grain (a grain mixture in which 
barley or oats is the predominate grain may also be insured if allowed 
by the Barley or Oat Special Provisions, or if we agree in writing to 
insure such mixture. The crop insured will be the grain which is 
predominate in the mixture. The production from such mixture will be 
considered as the predominate grain on a weight basis);
    (3) That is not:
    (i) Interplanted with another crop except as allowed in paragraph 
6.(a)(2);
    (ii) Planted into an established grass or legume; or
    (iii) Planted as a nurse crop, unless planted as a nurse crop for 
new forage seeding, but only if seeded at a normal rate and intended for 
harvest as grain.
    (4) We may agree, in writing, to insure a crop prohibited under 
paragraph 6.(a)(3) if you so request. Your request to insure such crop 
must be in writing, and submitted to your agent not later than 15 days 
after the acreage reporting date.
    (b) If you anticipate destroying any acreage prior to harvest you:
    (1) May report all planted acreage when you report your acreage for 
the crop year and specify any acreage to be destroyed as uninsurable 
acreage. (By doing so, no coverage will be considered to have attached 
on the specified acreage and no premium will be due for such acreage. If 
you do not destroy such acreage, you will be subject to the under-
reporting provisions contained in subsection 6.(f) of the Common Crop 
Insurance Policy (Sec. 457.8)); or
    (2) If the actuarial table provides a reduced premium rate for 
acreage destroyed by a date designated in the Special Provisions, you 
may report all planted acreage as insurable when you report your acreage 
for the crop year. Premium will be due on all the acreage. Your premium 
amount will be reduced by the amount shown on the Actuarial Table for 
any acreage you destroy prior to a date designated in the Special 
Provisions if you do not claim an indemnity on such acreage. In 
accordance with subsection 14.(b) of the Common Crop Insurance Policy 
(Sec. 457.8), you must obtain our consent before and give us notice 
after you destroy any of the insured crop so your acreage report can be 
revised to make you eligible for this reduction in premium.
    (c) In counties for which the Wheat Special Provisions designate 
both fall and spring final planting dates, you may elect a winter 
coverage endorsement for wheat. This endorsement provides two options 
for alternative coverage for wheat that is damaged between the fall 
final planting date and the spring final planting date. Coverage under 
the endorsement will be effective only if you designate the coverage 
option you elect by executing the endorsement by the sales closing date 
for winter wheat in the county.

                           7. Insurance Period

    In lieu of the requirements under section 11 (Insurance Period) of 
the Common Crop Insurance Policy (Sec. 457.8), and subject to any 
provisions provided by the Wheat crop insurance winter coverage 
endorsement (Sec. 457.102) if you have elected such endorsement, the 
insurance period is as follows:
    (a) Insurance attaches on each unit or part thereof on the later of 
the date we accept your application or the date the insured crop is 
planted.
    (1) For oats, rye and flax, the following limitations apply:
    (i) The acreage must be planted on or before the final planting date 
designated in the Special Provisions for the insured crop except as 
allowed in subsection 12.(c).
    (ii) Any acreage of the insured crop damaged before the final 
planting date, to the extent that growers in the area would normally not 
further care for the crop, must be replanted unless we agree that 
replanting is not practical (see subsection 1.(o)).
    (2) For barley and wheat, the following limitations apply:
    (i) The acreage must be planted on or before the final planting date 
designated in the Special Provisions for the type (winter or spring) 
except as allowed in subsection 12.(c).
    (ii) Whenever the Special Provisions designate only a fall final 
planting date, any acreage of winter barley or wheat damaged before such 
final planting date, to the extent that growers in the area would 
normally not further care for the crop, must be replanted to a winter 
type of the insured crop unless we agree that replanting is not 
practical.
    (iii) Whenever the Special Provisions designate both fall and spring 
final planting dates, winter barley or wheat planted on or before the 
final planting date which is damaged:
    (A) Before the fall planting final planting date, to the extent that 
growers in the area would normally not further care for the crop, must 
be replanted to a winter type of the insured crop unless we agree that 
replanting is not practical.
    (B) On or after the fall final planting date, but before the spring 
final planting date, to the extent that growers in the area would 
normally not further care for the crop, must be replanted to an 
appropriate variety of the insured crop unless we agree that replanting 
is not practical.

[[Page 353]]

    If you have elected coverage under one of the available wheat winter 
coverage options available in the county, the insurance period for wheat 
will be in accordance with the selected options.
    (iv) Whenever the Special Provisions designate a spring final 
planting date, any acreage of spring barley or wheat damaged before such 
final planting date, to the extent that growers in the area would 
normally not further care for the crop, must be replanted to a spring 
type of the insured crop unless we agree that replanting is not 
practical.
    (v) Whenever the Special Provisions designate only a spring final 
planting date, any acreage of fall planted barley or wheat is not 
insured unless you request such coverage and we agree in writing that 
the acreage has an adequate stand in the spring to produce the yield 
used to determine your production guarantee. Insurance will then attach 
to acreage having an adequate stand on the earlier of the spring final 
planting date or the date we agree to accept the acreage for insurance. 
If such fall planted acreage is not to be insured it must be recorded on 
the acreage report as an uninsured fall planted crop.
    (b) Insurance ends on each unit at the earliest of:
    (1) Total destruction of the insured crop on the unit;
    (2) Harvest of the unit;
    (3) Final adjustment of a loss on the unit;
    (4) September 25 following planting in Alaska, or October 31 of the 
calendar year in which the crop is normally harvested in all other 
states; or
    (5) Abandonment of the crop on the unit.

                            8. Causes of Loss

    In addition to the provisions under section 12 (Causes of Loss) of 
the Common Crop Insurance Policy, any loss covered by this policy must 
occur within the insurance period.
    The specific causes of loss for small grains are:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage allowed because of insufficient or 
improper application of pest control measures;
    (d) Plant disease, but not damage allowed because of insufficient or 
improper application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply.

                         9. Replanting Payments

    (a) A replant payment for wheat only is allowed as follows:
    (1) You comply with all requirements regarding replanting payments 
contained under section 13 (Replanting Payment) of the Common Crop 
Insurance Policy and in any winter coverage endorsement for which you 
are eligible and which you have elected;
    (2) The wheat must be damaged by an insurable cause of loss to the 
extent that the remaining stand will not produce at least 90 percent of 
the production guarantee for the acreage;
    (3) The acreage must have been initially planted to spring wheat in 
those counties with only a spring final planting date;
    (4) The damage must occur after the fall final planting date in 
those counties where both a fall and spring final planting date are 
designated;
    (5) Replanting must take place not later than 25 days after the 
spring final planting date; and
    (6) The replant wheat must be seeded at a rate that is normal for 
initially planted wheat (if new seed is planted at a reduced seeding 
rate into a partially damaged stand of wheat, the acreage will not be 
eligible for a replanting payment).
    (b) No replanting payment will be made for acreage initially planted 
to winter wheat in any county for which the Special Provisions contain 
only a fall final planting date.
    (c) In accordance with subsection 13.(c) of the Common Crop 
Insurance Policy (Sec. 457.8), the maximum amount of the replanting 
payment per acre will be the lesser of 20 percent (20%) of the 
production guarantee or 3 bushels, multiplied by your price election 
multiplied by your share.
    (d) When wheat is replanted using a practice that is uninsurable for 
an original planting, the liability for the unit will be reduced by the 
amount of the replanting payment. The premium amount will not be 
reduced.

                10. Duties in the Event of Damage or Loss

    In addition to your duties under section 14 of the Common Crop 
Insurance Policy (Sec. 457.8), if you initially discover damage to any 
insured crop within 15 days of, or during harvest, you must leave 
representative samples of the unharvested crop for our inspection. The 
samples must be at least 10 feet wide and the entire length of each 
field in the unit, and must not be harvested or destroyed until the 
earlier of our inspection or 15 days after harvest of the balance of the 
unit is completed.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production that are acceptable to us 
for any:
    (1) Optional unit, we will combine all optional units for which 
acceptable records of production were not provided; or for any
    (2) Basic unit, we will allocate any commingled production to such 
units in proportion to our liability on the harvested acreage for each 
unit.

[[Page 354]]

    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this the total production to count;
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    (c) The total production (bushels) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) Which is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance with 
subsection 11.(d));
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement, the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If:
    (A) Agreement on the appraised amount of production is not reached, 
you may elect to continue to care for the crop, or we will give you 
consent to put the acreage to another use if you agree to leave intact, 
and provide sufficient care for, representative samples of the crop in 
locations acceptable to us. The amount of production to count for such 
acreage will be based on the harvested production or appraisals from the 
samples at the time harvest should have occurred. If you do not leave 
the required samples intact, or you fail to provide sufficient care for 
the samples, our appraisal made prior to giving you consent to put the 
acreage to another use will be used to determine the amount of 
production to count.
    (B) You elect to continue to care for the crop, we will determine 
the amount of production to count for the acreage using the harvested 
production, or our reappraisal if additional damage occurs and the crop 
is not harvested.
    (2) All harvested production from the insurable acreage.
    (d) Mature wheat, barley, oat, and rye production may be adjusted 
for excess moisture and quality deficiencies. Flax production may be 
adjusted for quality deficiencies only.
    (1) Production will be reduced by .12 percent for each .1 percentage 
point of moisture in excess of:
    (i) 13.5 percent for wheat;
    (ii) 14.5 percent for barley;
    (iii) 14.0 percent for oats; and
    (iv) 16.0 for rye.
    We may obtain samples of the production to determine the moisture 
content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain, result in:
    (A) Wheat not meeting the grade requirements for U.S. No. 4 (grades 
U.S. No. 5 or worse) because of test weight, total damaged kernels 
(excluding heat damage), shrunken or broken kernels, or defects 
(excluding foreign material and heat damage), or grading garlicky, light 
smutty, smutty or ergoty;
    (B) Barley not meeting the grade requirements for U.S. No. 4 (grades 
U.S. No. 5 or worse) because of test weight, percentage of sound barley, 
damaged kernels, thin barley, or black barley, or grading smutty, 
garlicky, or ergoty;
    (C) Oats not meeting the grade requirements for U.S. No. 4 (grade 
U.S. sample grade) because of test weight or percentage of sound oats, 
or grading smutty, garlicky, or ergoty;
    (D) Rye not meeting the grade requirements for U.S. No. 3 (grades 
U.S. No. 4 or worse) because of test weight, percent damaged kernels or 
thin rye, or grading smutty, garlicky, or ergoty;
    (E) Flaxseed not meeting the grade requirements for U.S. No. 2 
(grades U.S. sample grade) due to damaged kernels; or
    (ii) Substances or conditions are present, including mycotoxins, 
that are identified by the Food and Drug Administration or other public 
health organizations of the United States as being injurious to human or 
animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions;
    (ii) The deficiencies, substances, or conditions result in a net 
price for the damaged grain that is less than the local market price of 
U.S. No. 2 production;
    (iii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or by 
a disinterested third party approved by us; and
    (iv) The samples are analyzed by a grain grader licensed under the 
authority of the United States Grain Standards Act or the United States 
Warehouse Act with regard to deficiencies in quality, or by a laboratory 
approved by us with regard to substances or

[[Page 355]]

conditions injurious to human or animal health. Test weight for quality 
adjustment purposes may be determined by one loss adjustor.
    (4) Production of small grains that is eligible for quality 
adjustment, as specified in paragraphs 11.(d) (2) and (3), will be 
reduced as follows:
    (i) The market price of the qualifying damaged production and the 
local market price will be the prices on the earlier of the date such 
quality adjusted production is sold or the date of final inspection for 
the unit. The price for the qualifying damaged production will be the 
market price for the local area to the extent feasible. Discounts used 
to establish the net price of the damaged production will be limited to 
those which are usual, customary, and reasonable. Any reduction in price 
due to the following factors will not be accepted:
    (A) Moisture content;
    (B) Damage due to uninsured causes; or
    (C) Drying, handling, processing, or any other costs associated with 
normal harvesting, handling, and marketing of the grain; except, if the 
price of the damaged production can be increased by conditioning, we may 
reduce the price of the production after it has been conditioned by the 
cost of conditioning but not lower than the value of the production 
before conditioning. We may obtain prices from any buyer of our choice. 
If we obtain prices from one or more buyers located outside your local 
market area, we will reduce such prices by the additional costs required 
to deliver the production to those buyers.
    (ii) The value of the damaged or conditioned production will be 
divided by the local market price to determine the quality adjustment 
factor.
    (iii) The number of bushels remaining after any reduction due to 
excessive moisture (the moisture-adjusted gross bushels (if 
appropriate)) of the damaged or conditioned production will then be 
multiplied by the quality adjustment factor to determine the net 
production to count.
    (e) Any production harvested from plants growing in the insured crop 
may be counted as production of the insured crop on a weight basis.

                12. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be provided 
for acreage planted to the insured crop during the late planting period 
(see subsection (c)), and acreage you were prevented from planting (see 
subsection (d)). These coverages provide reduced production guarantees. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planting acreage. If the amount of premium you are 
required to pay (gross premium less our subsidy) for late planting 
acreage or prevented planting acreage exceeds the liability on such 
acreage, coverage for those acres will not be provided (no premium will 
be due and no indemnity will be paid for such acreage). For example, 
assume you insure one unit in which you have a 100 percent share. The 
unit consists of 150 acres, of which 50 acres were planted timely, 50 
acres were planted 7 days after the final planting date (late planted), 
and 50 acres are unplanted and eligible for prevented planting coverage. 
To calculate the amount of any indemnity which may be due to you, the 
production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by 93 percent (0.93) and multiply 
the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the latest final planting date 
for the insured crop. (This subparagraph (ii) is not applicable, and 
prevented planting coverage is not available hereunder, if you elected 
the Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subparagraph 12(d)(1)(iii))).
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting:
    (1) For spring-planted wheat acreage in counties for which the 
Special Provisions designate a spring final planting date, and

[[Page 356]]

all barley, flax, oat, and rye acreage which is planted after the final 
planting date but on or before 25 days after the final planting date, 
the production guarantee for each acre will be reduced for each day 
planted after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of Acreage) 
of the Common Crop Insurance Policy (Sec. 457.8), you must report the 
dates the acreage is planted within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting date, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions; 
or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 1(p)), you may elect:
    (i) To plant the insured crop during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be 50 percent (50%) of the production guarantee for timely 
planted acres. In counties for which the Special Provisions designate a 
spring final planting date, the prevented planting guarantee will be 
based on your approved yield for spring-planted acreage of the insured 
crop. For example, if your production guarantee for timely planted 
acreage is 30 bushels per acre, your prevented planting production 
guarantee would be 15 bushels per acre (30 bushels multiplied by 0.50). 
If you elect to plant the insured crop after the late planting period, 
production to count for such acreage will be determined in accordance 
with subsections 11(c) through (e); or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the latest final planting date for the insured crop; or
    (B) A production guarantee equal to twenty-five percent (25%) of the 
production guarantee for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the latest final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your production guarantee for timely planted 
acreage is 30 bushels per acre, your prevented planting production 
guarantee would be 7.5 bushels per acre (30 bushels multiplied by 0.25). 
You may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate, on or before the sales closing date, on your application or on 
a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Common Crop Insurance Policy (Sec. 457.8), the insurance period 
for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase insurance for wheat for the 1996 crop 
year, prevented planting coverage will begin on the 1996 sales closing 
date for the insured crop in the county. If the wheat coverage remains 
in effect for the 1997 crop year (is not terminated or cancelled during 
or after the 1996 crop year, except the policy may have been cancelled 
to transfer the policy to a different insurance provider, if there is no 
lapse in coverage), prevented planting coverage for the 1997 crop year 
began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting

[[Page 357]]

coverage will not exceed the total acreage permitted to be planted to 
the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop on the FSA Farm 
Serial Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to the insured crop during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which prevented 
you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of acres of the insured crop that are timely planted and 
late planted, if the late planting period is applicable. For example, 
assume you have 100 acres eligible for prevented planting coverage in 
which you have a 100 percent (100%) share. The acreage is located in a 
single FSA Farm Serial Number which you insure as two separate optional 
units consisting of 50 acres each. If you planted 60 acres of the 
insured crop on one optional unit and 40 acres of the insured crop on 
the second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date for spring-planted acreage of the insured crop in 
counties for which the Special Provisions designates a spring final 
planting date, or the acreage reporting date for fall-planted acreage of 
the insured crop in counties for which the Special Provisions designates 
a fall final planting date only. For the purpose of determining acreage 
eligible for a prevented planting production guarantee the total amount 
of prevented planting and planted acres cannot exceed the maximum number 
of acres eligible for prevented planting coverage. Any acreage you 
report in excess of the number of acres eligible for prevented planting 
coverage, or that exceeds the number of eligible acres physically 
located in a unit, will be deleted from your acreage report.

[59 FR 9391, Feb. 28, 1994, as amended at 60 FR 62723, Dec. 7, 1995]

[[Page 358]]



Sec. 457.102  Wheat crop insurance winter coverage endorsement.

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

            Wheat Crop Insurance Winter Coverage Endorsement

                   (This is a Continuous Endorsement)

    (a) In return for payment of the additional premium designated in 
the Actuarial Table, this endorsement is attached to and made part of 
your Small Grains Crop Provisions subject to the terms and conditions 
described herein.
    (b) This endorsement is available only in counties for which the 
Special Provisions designate both a fall final planting date and a 
spring final planting date.
    (c) This endorsement modifies the provisions of sections 7 and 11 of 
the Small Grains Crop Insurance policy (Sec. 457.101).
    (1) You must have a Small Grains Crop Insurance policy in force and 
elect to insure wheat under that policy.
    (2) You may select either Option A or Option B. Failure to select 
either Option A or Option B means that you have rejected both Options 
and this endorsement would be void.
    (3) Insurance Period. Coverage under this endorsement begins on the 
later of the date we accept your application for coverage or on the fall 
final planting date designated in the Special Provisions. Coverage ends 
on the spring final planting date designated in the Special Provisions.
    (4) The provisions under section 14 of the Common Crop Insurance 
Policy (Sec. 457.8) are amended to require that all notices of damage 
must be provided to us by the spring final planting date designated in 
the Special Provisions.

           Option A (30 Percent Coverage and Acreage Release)

    Whenever any winter wheat is damaged during the insurance period 
(see section 3, above), and at least 20 acres or 20 percent of the 
acreage in the unit, whichever is less, does not have an adequate stand 
to produce at least 90 percent of the production guarantee for the 
acreage, you may take any one of the following actions:
    (a) Destroy the remaining crop on such acreage. By doing so, you 
agree to accept an amount of production to count against the unit 
production guarantee equal to 70 percent of the production guarantee for 
the damaged acreage, or an appraisal determined in accordance with 
paragraph 11.(c)(1) of the Small Grains Crop Insurance Provisions 
(Sec. 457.101) if such an appraisal results in a greater amount of 
production. This amount will be considered production to count in 
determining any final indemnity on the unit and will be used to settle 
your claim as described in the provisions under section 11. (Settlement 
of Claim) of the Small Grains Crop Insurance Provisions (Sec. 457.101). 
You may use such acreage for any purpose, including planting and 
separately insuring any other crop. If you elect to utilize such acreage 
for the production of spring wheat, you must:
    (1) Plant the spring wheat in a manner which results in a clear and 
discernible break in the planting pattern at the boundary between it and 
any remaining winter wheat; and
    (2) Store or market the production from such acreage in a manner 
which permits us to verify the amount of spring wheat production 
separately from any winter wheat production.
    In the event you are unable to provide records of production that 
are acceptable to us, the spring wheat acreage will be considered to be 
a part of the original winter wheat unit. If you elected to insure the 
spring wheat acreage as a separate optional unit, any premium amount for 
such acreage will be considered earned and payable to us.
    (b) Continue to care for the damaged crop. By doing so, coverage 
will continue under the terms of the Common Crop Insurance Policy 
(Sec. 457.8), the Small Grains Crop Insurance Provisions (Sec. 457.101), 
and this Option.
    (c) Replant the acreage to an appropriate variety of wheat, if it is 
practical, and receive a replanting payment in accordance with the terms 
of section 9. (Replanting Payments) of the Small Grains Crop Provisions 
(Sec. 457.101). By doing so, coverage will continue under the terms of 
the Common Crop Insurance Policy (Sec. 457.8), the Small Grains Crop 
Insurance Provisions (Sec. 457.101), and this Option, and the production 
guarantee for winter wheat will remain in effect.

               Option B (With Full Winter Damage Coverage)

    Whenever any winter wheat is damaged during the insurance period and 
at least 20 acres or 20 percent of the acreage in the unit, whichever is 
less, does not have an adequate stand to produce at least 90 percent of 
the production guarantee for the acreage, you may, at your option, take 
one of the following actions:
    (a) Continue to care for the damaged crop. By doing so, coverage 
will continue under the terms of the Common Crop Insurance Policy 
(Sec. 457.8), the Small Grains Crop Insurance Provisions (Sec. 457.101), 
and this Option.
    (b) Replant the acreage to an appropriate variety of wheat, if it is 
practical, and receive a replanting payment in accordance with the terms 
of section 9. (Replanting Payments) of the Small Grains Crop Provisions 
(Sec. 457.101). By doing so, coverage will continue under the terms of 
the Common Crop Insurance Policy (Sec. 457.8), the Small Grains

[[Page 359]]

Crop Insurance Provisions (Sec. 457.101), and this Option, and the 
production guarantee for winter wheat will remain in effect.
    (c) Accept our appraisal of the crop on the damaged acreage as 
production to count against the production guarantee for the damaged 
acreage, destroy the remaining crop on such acreage, and be eligible for 
any indemnity due under the terms of the Common Crop Insurance Policy 
(Sec. 457.8) and the Small Grains Crop Provisions (Sec. 457.101). The 
appraisal will be considered production to count in determining any 
final indemnity on the unit and will be used to settle your claim as 
described in the provisions of section 11. (Settlement of Claim) of the 
Small Grains Crop Insurance Provisions (Sec. 457.101). You may use such 
acreage for any purpose, including planting and separately insuring any 
other crop. If you elect to utilize such acreage for the production of 
spring wheat, you must:
    (1) Plant the spring wheat in a manner which results in a clear and 
discernable break in the planting pattern at the boundary between it and 
any remaining winter wheat; and
    (2) Store or market the production from such acreage in a manner 
which permits us to verify the amount of spring wheat production 
separately from any winter wheat production.
    In the event you are unable to provide records of production that 
are acceptable to us, the spring wheat acreage will be considered to be 
a part of the original winter wheat unit. If you elected to insure the 
spring wheat acreage as a separate optional unit, any premium amount for 
such acreage will be considered earned and payable to us.

[59 FR 9397, Feb. 28, 1994]



Sec. 457.103  Malting barley option.

    The Malting Barley Option Provisions for the 1995 and succeeding 
crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

         Small Grains Crop Insurance Malting Barley Endorsement

(This is a continuous Endorsement. Refer to section 2 of the Common Crop 
                            Insurance Policy)

    In return for payment of the additional premium designated in the 
actuarial table, it is hereby agreed that the Common Crop Insurance 
Policy (Sec. 457.8) and Small Grains Crop Provisions (Sec. 457.101) are 
amended to incorporate the following terms and conditions:
    (a) This Endorsement must be submitted to us on or before the final 
date for accepting applications for the initial crop year in which you 
wish to insure your malting barley acreage under this Option.
    (b) You must have a Common Crop Insurance Policy (Sec. 457.8) and a 
Small Grains Crop Insurance policy (Sec. 457.101) in force and elect to 
insure barley under those policies.
    (c) You must provide:
    (1) Acceptable records of the sale of malting barley for malting 
purposes for three of the previous five crop years by the production 
reporting date; and
    (2) Before the acreage reporting date, written contract with a 
brewery or business that makes or sells malt or processed mash to a 
brewery, which states the quantity contracted and purchase price or 
method for determining such price by the acreage reporting date. Our 
liability under this Option will be limited to the lesser of the number 
of contracted bushels or your production guarantee.
    (d) All barley acreage in the county planted to an approved malting 
variety in which you have a share will be insured under this 
Endorsement. All barley acreage of any non-malting variety will be 
insured under the terms of the Small Grains Endorsement. Malting barley 
and basic barley acreage will be separate basic units. Further unit 
division may be allowed in accordance with the Common Crop Insurance 
Policy.
    (e) Your price election will be provided by the actuarial table.
    (f) In lieu of subparagraphs 11.(d)(2)(i)(B) and 11.(d)(1)(ii) of 
the Small Grains Crop Provisions:
    (1) Mature malting barley production will be reduced .12 percent for 
each one tenth (.1) percentage point of moisture in excess of 13.0 
percent; and
    (2) Mature malting barley production, which due to insurable causes, 
is not accepted by a buyer of malting barley and will not meet the 
applicable standards for two-rowed or six-rowed malting barley will be 
adjusted by:
    (i) Dividing the value per bushel for the insured malting barley by 
the price election for malting barley; and
    (ii) Multiplying the result not to exceed one (1.0) by the number of 
bushels of such barley.
    (3) All grade determination must be made by a grader licensed to 
inspect barley under the United States Grain Standards Act using samples 
obtained by a licensed sampler or our loss adjuster. Any production 
which is not sampled and graded as provided by this section will be 
considered as malting barley meeting the applicable standards.
    (g) As used in the Endorsement:
    (1) Applicable standards--For two-rowed and six-rowed malting barley 
are defined in the Official United States Standards for barley.

[[Page 360]]

    (2) Approved malting variety--The varieties specified in the Special 
Provisions.
    (3) Brewery--A facility where malt liquors are commercially produced 
for human consumption.
    (4) Value per bushel means:
    (i) The local market price of U.S. No. 2 barley (basic barley) if 
the insure mature malting barley production, due to insurable causes, 
grades U.S. No. 4 or better and does not grade smutty, garlicky, or 
ergoty; or
    (ii) The local market price of basic barley of the same quality as 
the insured malting barley, if the malting barley does not grade better 
than U.S. No. 5.
    The prices used for this adjustment will be the prices on the 
earlier of the date such quality-adjusted barley is sold or the date of 
final inspection for the unit.

[59 FR 9397, Feb. 28, 1994]



Sec. 457.104  Cotton crop insurance provisions.

    The cotton crop insurance provisions for the 1995 and succeeding 
crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                         Cotton Crop Provisions

    If a conflict exists among the Common Crop Insurance Policy 
(Sec. 457.8), these crop provisions, and the Special Provisions, the 
Special Provisions will control these crop provisions and the common 
policy and these crop provisions will control the common policy.

                             1. Definitions

    (a) Cotton--Varieties identified as American Upland Cotton.
    (b) Days--Calendar days.
    (c) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (d) Good farming practices--The cultural practices generally in use 
in the county for the insured crop to make normal progress toward 
maturity and produce at least the yield used to determine the production 
guarantee and are those recognized by Cooperative Extension Service as 
compatible with agronomic and weather conditions in the area.
    (e) Growth area--A geographic area designated by the Secretary of 
Agriculture for the purpose of reporting cotton prices.
    (f) Harvest--The removal of the seed cotton from the open cotton 
boll, or the severance of the open cotton boll from the stalk by either 
manual or mechanical means.
    (g) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated acreage planted to 
the insured crop.
    (i) Late planted--Acreage planted to cotton during the late planting 
period.
    (j) Late planting period--The period that begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (k) Mature cotton--Cotton that can be harvested either manually or 
mechanically.
    (l) Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed which has been properly prepared for the planting 
method and production practice. Cotton must be planted in rows to be 
considered planted. Planting in any other manner will be considered as a 
failure to follow recognized good farming practices and any loss of 
production will not be insured unless otherwise provided by the special 
provisions or by written agreement to insure such crop. The yield 
conversion factor normally applied to non-irrigated skip-row cotton 
acreage will not be used if the land between the rows of cotton is 
planted to any crop.
    (m) Practical to replant--In lieu of subsection 1.(ff) of the Common 
Crop Insurance Policy (Sec. 457.8) practical to replant is defined as 
our determination, after loss or damage to the insured crop, based on 
factors including, but not limited to moisture availability, condition 
of the field, and time to crop maturity, that replanting to the insured 
crop will allow the crop to attain maturity prior to the calendar date 
for the end of the insurance period. It will not be considered practical 
to replant after the end of the late planting period unless replanting 
is generally occurring in the area.
    (n) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (o) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for non-irrigated skip-row planting patterns, and 
multiplying the result by the coverage level percentage you elect.

[[Page 361]]

    (p) Replanting--Performing the cultural practices necessary to 
replace the cotton seed, and replacing the seed in the insured acreage 
with the expectation of growing a successful crop.
    (q) Skip-row--A planting pattern that:
    (1) Consists of alternating rows of cotton and fallow land or land 
planted to another crop the previous fall; and
    (2) Qualifies as a skip-row planting pattern as defined by the ASCS 
or successor agency.
    (r) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the county.
    (s) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing no later than the sales closing date and is valid for 
one year only. If not specifically renewed the following year, 
continuous insurance will be in accordance with the printed policy. All 
variable terms including, but not limited to, crop variety, guarantee, 
premium rate and price election must be set out in the written 
agreement. In specific instances a written agreement may be applied for 
after the sales closing date and approved if, after a physical 
inspection of the acreage, there is a determination that the crop has 
the expectancy of making at least the guaranteed yield. However, no 
prevented planting liability will be established as a result of any 
request submitted after the sales closing date. All applications for 
written agreements as submitted by the insured must contain all variable 
terms of the contract between the company and the insured that will be 
in effect if the written agreement is disapproved.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8), may 
be divided into optional units if, for each optional unit you meet all 
the conditions of this section or if a written agreement to such 
division exists. All optional units must be reflected on the acreage 
report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee.
    (b) You must plan the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that we 
can verify the production from each optional unit or the production from 
each optional unit must be kept separate until after loss adjustment 
under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable;
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate legally identified Section. In the absence of 
Sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to: Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands an 
equivalent of Sections for unit purposes. In areas which have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single ASCS Farm Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to or instead of establishing optional 
units by Section, section equivalent, or ASCS Farm Serial Number, 
optional units may be based or irrigated acreage or non-irrigated 
acreage if both are located in the same Section, section equivalent, or 
ASCS Farm Serial Number. The irrigated acreage may not extend beyond the 
point at which your irrigation system can deliver the quantity of water 
needed to produce the yield on which your guarantee is based and you may 
not continue into non-irrigated acreage in the same rows or planting 
pattern. You must plant, cultivate, fertilize, or otherwise care for the 
irrigated acreage in accordance with recognized good irrigated farming 
practices.
    Basic units may not be divided into optional units on any basis 
including, but not limited to: Production practice, type, variety, or 
planting period, other than as described above. If you do not comply 
fully with these provisions, we will combine all optional units which 
are not in compliance with these provisions into the unit from which 
they were formed. We may combine the optional units at any time we 
discover that you have failed to comply with these provisions. If 
failure to comply with these provisions on all optional units is 
determined to be inadvertent, and the optional units are combined, 
premium paid for the purpose of electing optional units will be refunded 
to you.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements of section 3 (Insurance Guarantees, 
Coverage Levels, and Prices for Determining Indemnities) of the Common 
Crop Insurance Policy (Sec. 457.8), you may select only one price 
election for all cotton in the county insured under this policy.

[[Page 362]]

                           4. Contract Changes

    The contract change date is November 30 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Common 
Crop Insurance Policy (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with subsection 2. (f) of the Common Crop Insurance 
Policy (Sec. 457.8), the cancellation and termination dates are:

------------------------------------------------------------------------
                                                     Cancellation and   
                State and county                    termination dates   
------------------------------------------------------------------------
Val Verde, Edwards, Kerr, Kendall, Bexar,        February 15            
 Wilson, Karnes, Goliad, Victoria, and Jackson                          
 Counties, Texas, and all Texas counties lying                          
 south thereof.                                                         
Alabama; Arizona; Arkansas; California;          February 28            
 Florida; Georgia; Louisiana; Mississippi;                              
 Nevada; North Carolina; South Carolina; El                             
 Paso, Hudspeth, Culberson, Reeves, Loving,                             
 Winkler, Ector, Upton, Reagon, Sterling, Coke,                         
 Tom Green, Concho, McCulloch, San Saba, Mills,                         
 Hamilton, Bosque, Johnson, Tarrant, Wise, and                          
 Cooke Counties, Texas, and all Texas counties                          
 lying south and east thereof to and including                          
 Terrell, Crocket, Sutton, Kimble, Gillespie,                           
 Blanco, Comal, Guadalupe, Gonzales, De Witt,                           
 Lavaca, Colorado, Wharton, and Matagorda                               
 Counties, Texas.                                                       
All other Texas counties and all other states..  March 15               
------------------------------------------------------------------------

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Common Crop 
Insurance Policy (Sec. 457.8), the crop insured will be all the cotton 
lint, in the county for which premium rates are provided by the 
actuarial table:
    (a) In which you have a share; and
    (b) That is not (unless allowed by the Special Provisions or by 
written agreement):
    (1) Colored cotton lint;
    (2) Planted into an established grass or legume;
    (3) Interplanted with another spring planted crop;
    (4) Grown on acreage from which a hay crop was harvested in the same 
calendar year unless the acreage is irrigated; or
    (5) Grown on acreage on which a small grain crop reached the heading 
stage in the same calendar year unless the acreage is irrigated or 
adequate measures are taken to terminate the small grain crop prior to 
heading and less than fifty percent (50%) of the small grain plants 
reach the heading stage.

                          7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) of 
the Common Crop Insurance Policy (Sec. 457.8):
    (a) The acreage insured will be only the land occupied by the rows 
of cotton when a skip row planting pattern is utilized; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not produce 
at least ninety percent (90%) of the production guarantee, must be 
replanted unless we agree that replanting is not practical (see 
subsection 1.(m)).

                           8. Insurance Period

    (a) In lieu of subsection 11.(b) of the Common Crop Insurance Policy 
(Sec. 457.8) (Harvest of the unit), insurance will end upon the removal 
of the cotton from the field.
    (b) In accordance with the provisions under section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the calendar 
date for the end of the insurance period is the date immediately 
following planting as follows:
    (1) September 30 in Val Verde, Edwards, Kerr, Kendall, Bexar, 
Wilson, Karnes, Goliad, Victoria, and Jackson Counties, Texas, and all 
Texas counties lying south thereof;
    (2) January 31 in Arizona, California, New Mexico, Oklahoma, and all 
other Texas counties; and
    (3) December 31 in all other states.

                            9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Common Crop Insurance Policy (Sec. 457.8), insurance is provided 
only against the following causes of loss which occur within the 
insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control meaures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if applicable, due to an 
unavoidable cause of loss occurring within the insurance period.

                10. Duties in the Event of Damage or Loss

    (a) In addition to your duties under section 14 (Duties in the Event 
of Damage or Loss) of the Common Crop Insurance Policy (Sec. 457.8), in 
the event of damage or loss:
    (1) The cotton stalks must remain intact for our inspection; and
    (2) If you initially discover damage to the insured crop within 15 
days of harvest, or during harvest, you must leave representative 
samples of the unharvested crop in the

[[Page 363]]

field for our inspection. The samples must be at least 10 feet wide and 
extend the entire length of each field in the unit.
    (b) The stalks must not be destroyed, and required samples must not 
be harvested, until the earlier of our inspection or 15 days after 
harvest of the balance of the unit is completed and written notice of 
probable loss given to us.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this the total production to count;
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage;
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes;
    (D) For which you fail to provide records of production that are 
acceptable to us; or
    (E) On which the cotton stalks are destroyed, in violation of 
section 10;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production of white 
cotton may be adjusted for quality deficiencies in accordance with 
subsection 11.(d)); and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon or no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement, the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop we may give 
you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us (The amount of production to count 
for such acreage will be based on the harvested production of appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provide sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage, including 
any mature cotton retrieved from the ground.
    (d) Mature white cotton may be adjusted for quality when production 
has been damaged by insured causes. Such production to count will be 
reduced if the price quotation for cotton of like quality (price 
quotation ``A'') for the applicable growth area is less than seventy-
five percent (75%) of price quotation ``B.'' Price quotation ``B'' is 
defined as the price quotation for the applicable growth area for cotton 
of the color and leaf grade, staple length, and micronaire reading 
designated in the Special Provisions for this purpose. Price quotations 
``A'' and ``B'' will be the price quotations contained in the Daily Spot 
Cotton Quotations published by the USDA Agricultural Marketing Service 
on the date the last bale from the unit is classed. If the date the last 
bale classed is not available, the price quotations will be determined 
on the date the last bale from the unit is delivered to the warehouse, 
as shown on the producer's account summary obtained from the gin. If 
eligible for adjustment, the amount of production to be counted will be 
determined by multiplying the number of pounds of such production by the 
factor derived from dividing price quotation ``A'' by seventy-five 
percent (75%) of price quotation ``B.''
    (e) Colored cotton lint will not be eligible for quality adjustment.

                12. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be provided 
for acreage planted to the insured crop during the late planting period 
(see subsection (c)), and acreage you were prevented from planting (see 
subsection (d)). These coverages provide reduced production guarantees. 
The reduced guarantees will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. If the amount of premium you are 
required to pay (gross premium less our subsidy) for late

[[Page 364]]

planted acreage or prevented planting acreage exceeds the liability on 
such acreage, coverage for those acres will not be provided (no premium 
will be due and no indemnity will be paid for such acreage). (For 
example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 150 acres, of which 50 acres were 
planted timely, 50 acres were planted 7 days after the final planting 
date (late planted), and 50 acres are unplanted and eligible for 
prevented planting coverage. To calculate the amount of any indemnity 
which may be due to you, the production guarantee for the unit will be 
computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the acreage 
is eligible for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the 10th day following the final 
planting date for the insured crop. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available hereunder, 
if you elected the Catastrophic Risk Protection Endorsement or you 
elected to exclude prevented planting coverage when a substitute crop is 
planted (see subparagraph 12(d)(1)(iii))).
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For cotton acreage planted after the final planting date but on 
or before 25 days after the final planting date, the production 
guarantee for each acre will be reduced for each day planted after the 
final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of Acreage) 
of the Common Crop Insurance Policy (Sec. 457.8), you must report the 
dates the acreage is planted within the late planting period.
    (3) If planting of cotton continues after the final planting date, 
or you are prevented from planting during the late planting period, the 
acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions; 
or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting cotton (see subsection 
1(n)), you may elect:
    (i) To plant cotton during the late planting period. The production 
guarantee for such acreage will be determined in accordance with 
paragraph 12(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be thirty-five percent (35%) of the production guarantee 
for timely planted acres. For example, if your production guarantee for 
timely planted acreage is 700 pounds per acre, your prevented planting 
production guarantee would be 245 pounds per acre (700 pounds multiplied 
by 0.35). If you elect to plant the insured crop after the late planting 
period, production to count for such acreage will be determined in 
accordance with subsections 11 (c) and (d); or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to seventeen and five tenths 
percent (17.5%) of the production guarantee for timely planted acres 
will be provided for such acreage, if the substitute crop is planted 
after the tenth day following the final planting date for the insured 
crop. If you elected the Catastrophic Risk Protection Endorsement or 
excluded this coverage, and plant a substitute crop, no prevented 
planting coverage will be provided. For example, if your production 
guarantee for timely planted acreage is 700 pounds per acre, your 
prevented planting production guarantee would be 122.5 pounds per acre 
(700 pounds multiplied by 0.175). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for

[[Page 365]]

harvest and receive a reduction in the applicable premium rate. If you 
wish to exclude this coverage, you must so indicate, on or before the 
sales closing date, on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from year 
to year unless you notify us in writing on our form by the applicable 
sales closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Common Crop Insurance Policy (Sec. 457.8), the insurance period 
for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a cotton crop insurance policy for the 
1996 crop year, prevented planting coverage will begin on the 1996 sales 
closing date for the cotton crop in the county. If the cotton coverage 
remains in effect for the 1997 crop year (is not terminated or cancelled 
during or after the 1996 crop year, except the policy may have been 
cancelled to transfer the policy to a different insurance provider, if 
there is no lapse in coverage), prevented planting coverage for the 1997 
crop year began on the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to cotton on the FSA Farm Serial 
Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to cotton during the crop years that you certified to 
determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which prevented 
you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section) unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the

[[Page 366]]

crop on which the prevented planting indemnity, guarantee, or amount of 
insurance is received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of cotton acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of cotton on one optional unit and 40 acres of cotton on the 
second optional unit, your prevented planting eligible acreage would be 
reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. For the purpose of determining acreage eligible for a 
prevented planting production guarantee the total amount of prevented 
planting and planted acres cannot exceed the maximum number of acres 
eligible for prevented planting coverage. Any acreage you report in 
excess of the number of acres eligible for prevented planting coverage, 
or that exceeds the number of eligible acres physically located in a 
unit, will be deleted from your acreage report.

[59 FR 49154, Sept. 27, 1994, as amended at 60 FR 62725, Dec. 7, 1995]



Sec. 457.105  Extra long staple cotton crop insurance provisions.

    The Extra Long Staple Cotton Crop Insurance Provisions for the 1995 
and succeeding crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                       ELS Cotton Crop Provisions

    If a conflict exists between the Common Crop Insurance Policy 
(Sec. 457.8) and the Special Provisions, the Special Provisions will 
control. If a conflict exists between these Crop Provisions and the 
Special Provisions, the Special Provisions will control.

                             1. Definitions

    (a) Cotton--Varieties identified as Extra Long Staple (ELS) cotton 
and American Upland (AUP) cotton if ELS cotton is destroyed by an 
insured cause and acreage is replanted to AUP cotton.
    (b) Days--Calendar Days.
    (c) ELS cotton--Extra Long Staple cotton (also called Pima cotton, 
American-Egyptian cotton, and American Pima cotton).
    (d) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (e) Good farming practices--The cultural practices generally in use 
in the county for the insured crop to make normal progress toward 
maturity and produce at least the yield used to determine the production 
guarantee and are those recognized by the Cooperative Extension Service 
as compatible with agronomic and weather conditions in the area.
    (f) Harvest--The removal of the seed cotton from the open cotton 
boll, or the severance of the open cotton boll from the stalk by either 
manual or mechanical means.
    (g) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated acreage planted to 
the insured crop.
    (i) Mature ELS cotton--ELS cotton that can be harvested either 
manually or mechanically.
    (j) Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed which has been properly prepared for the planting 
method and production practice. Cotton must be planted in rows to be 
considered planted. Planting in any other manner will be considered as a 
failure to follow recognized good farming practices and any loss of 
production will not be insured unless otherwise provided by the Special 
Provisions or by written agreement to insure such crop. The yield 
conversion factor normally applied to non-irrigated skip-row cotton 
acreage will not be used if the land between the rows of cotton is 
planted to any crop.
    (k) Practical to replant--(In lieu of subsection 1.(ff) of the 
Common Crop Insurance Policy (Sec. 457.8) practical to replant is 
defined as our determination, after loss or damage to the insured crop, 
based on factors including, but not limited to moisture availability, 
condition of the field, and time to crop maturity, that replanting the 
insured crop will allow the crop to attain maturity prior to

[[Page 367]]

the calendar date for the end of the insurance period. It will not be 
considered practical to replant after the final planting date unless 
replanting is generally occurring in the area.
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county. You must have been unable 
to plant the insured crop due to an insured cause of loss that has 
prevented the majority of producers in the surrounding area from 
planting the same crop.
    (m) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by any applicable yield 
conversion factor for non-irrigated skip-row planting patterns, and 
multiplying the result by the coverage level percentage you elect.
    (n) Replanting--Performing the cultural practices necessary to 
replace the ELS cotton seed, and replacing the seed with either ELS or 
AUP cotton seed in the insured acreage with the expectation of growing a 
successful crop.
    (o) Skip-row--A planting pattern that:
    (1) Consists of alternating rows of cotton and fallow land or land 
planted to another crop the previous fall; and
    (2) Qualifies as a skip-row planting pattern as defined by the 
Agricultural Stabilization and Conservation Service or successor agency.
    (p) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions.
    (q) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing prior to the sales closing date and is valid for one 
year only. If not specifically renewed the following year, continuous 
insurance will be in accordance with the printed policy. All variable 
terms including, but not limited to, crop variety, guarantee, premium 
rate and price election must be set out in the written agreement. In 
specific instances a written agreement may be applied for after the 
sales closing date and approved if, after a physical inspection of the 
acreage, there is a determination that the crop has the expectancy of 
making at least the guaranteed yield. However, no prevented planting 
liability will be established as a result of any request submitted after 
the sales closing date. All applications for written agreements as 
submitted by the insured must contain all variable terms of the contract 
between the company and the insured that will be in effect if the 
written agreement is disapproved.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8), may 
be divided into optional units if, for each optional unit you meet all 
the conditions of this section or if a written agreement to such 
division exists. All optional units must be reflected on the acreage 
report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee.
    (b) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that we 
can verify the production from each optional unit or the production from 
each optional unit must be kept separate until after loss adjustment 
under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate legally identified Section. In the absence of 
Sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to: Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands as 
equivalent of Sections for unit purposes. In areas which have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single ASCS Farm Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
irrigated Practices: In addition to or instead of establishing optional 
units by Section, section equivalent, or ASCS Farm Serial Number, 
optional units may be based on irrigated acreage or non-irrigated 
acreage if both are located in the same Section, section equivalent, or 
ASCS Farm Serial Number. The irrigated acreage may not extend beyond the 
point at which your irrigation system can deliver the quantity of water 
needed to produce the yield on which your guarantee is based and you may 
not continue into non-irrigated acreage in the same rows or planting 
pattern. You must plant, cultivate, fertilize, or otherwise care for the 
irrigated acreage in accordance with recognized good irrigated farming 
practices.
    Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other than 
as described under this section. If you do not comply fully with these 
provisions, we will combine all optional units

[[Page 368]]

which are not in compliance with these provisions into the basic unit 
from which they were formed. We may combine the optional units at any 
time we discover that you have failed to comply with these provisions. 
If failure to comply with these provisions on all optional units is 
determined to be inadvertent, and the optional units are combined, 
premium paid for the purpose of electing optional units will be refunded 
to you.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements of section 3 (Insurance Guarantees, 
Coverage Levels, and Prices for Determining Indemnities) of the Common 
Crop Insurance Policy (Sec. 457.8) you may select only one price 
election for all the cotton in the county insured under this policy.

                           4. Contract Changes

    The contract change date is November 30 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Common 
Crop Insurance Policy (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Common Crop Insurance 
Policy (Sec. 457.8) the cancellation and termination dates are March 15.

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Common Crop 
Insurance Policy (Sec. 457.8), the crop insured will be all the cotton 
lint in the county for which premium rates are provided by the actuarial 
table:
    (a) In which you have a share; and
    (b) That is not (unless allowed by the Special Provisions or by a 
written agreement):
    (1) Planted into an established grass or legume;
    (2) Interplanted with another spring planted crop;
    (3) Grown on acreage from which a hay crop was harvested in the same 
calendar year unless the acreage is irrigated; or
    (4) Grown on acreage on which a small grain crop reached the heading 
stage in the same calendar year unless the acreage is irrigated or 
adequate measures are taken to terminate the small grain crop prior to 
heading and less than fifty percent (50%) of the small grain plants 
reach the heading stage.

                          7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) of 
the Common Crop Insurance Policy (Sec. 457.8):
    (a) The acreage insured will be only the land occupied by the rows 
of cotton when a skip row planting pattern is utilized; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not produce 
at least ninety percent (90%) of the production guarantee, must be 
replanted unless we agree that replanting is not practical (see 
subsection 1.(k)).

                           8. Insurance Period

    (a) In lieu of subsection 11.(b) of the Common Crop Insurance Policy 
(Sec. 457.8) (Harvest of the unit), insurance will end upon the removal 
of the cotton from the field.
    (b) In accordance with the provisions of section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the calendar 
date for the end of the insurance period is January 31 immediately 
following planting.

                            9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Common Crop Insurance Policy (Sec. 457.8), insurance is provided 
only against the following causes of loss which occur within the 
insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of irrigation water supply, if applicable, due to an 
unavoidable cause of loss occurring within the insurance period.

                10. Duties in the Event of Damage or Loss

    (a) In addition to your duties under section 14 (Duties in the Event 
of Damage or Loss) of the Common Crop Insurance Policy (Sec. 457.8), in 
the event of damage or loss:
    (1) You must give us notice if you intend to replant any acreage 
originally planted to ELS cotton to AUP cotton;
    (2) The cotton stalks must remain intact for our inspection; and
    (3) If you initially discover damage to any insured crop within 15 
days of harvest, or during harvest, you must leave representative 
samples of the unharvested crop for our inspection. The samples must be 
at least 10 feet wide and extend the entire length of the field in the 
unit.
    (b) The stalks must not be destroyed, and required samples must not 
be harvested, until the earlier of our inspection or 15 days after 
harvest of the balance of the unit is completed and written notice of 
probable loss is given to us.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:

[[Page 369]]

    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this the total production to count;
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes;
    (D) For which you fail to provide records of production that are 
acceptable to us; or
    (E) On which the cotton stalks are destroyed in violation of section 
10;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies in accordance with subsection:
    (A) 11.(d) and (e) if it is mature ELS cotton; or
    (B) 11.(f) if it is AUP cotton insured under these crop provisions); 
and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon or no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us (The amount of production to count 
for such acreage will be based on the harvested production or appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provided sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count.); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage, including 
any mature cotton retrieved from the ground.
    (d) Mature ELS cotton production may be adjusted for quality when 
production has been damaged by insured causes. Such production to count 
will be reduced if the price quotation for ELS cotton of like quality 
(price quotation ``A'') is less than seventy-five percent (75%) of price 
quotation ``B.'' Price quotation ``B'' will be the price quotation for 
ELS cotton of the grade, staple length, and micronaire reading 
designated in the Special Provisions for this purpose. The price 
quotations for prices ``A'' and ``B'' will be the price quotations 
contained in the Weekly Cotton Market Review published by the USDA 
Agricultural Marketing Service the week the last bale from the unit is 
classed. If the date the last bale is classed is not available, the 
price quotations will be determined the week the last bale from the unit 
is delivered to the warehouse as shown on the producer's account summary 
obtained from the gin. In the absence of either price quotation for the 
applicable week, the price quotations for the nearest prior week for 
which an ELS cotton price quotation was listed for both prices will be 
used. If eligible for adjustment, the amount of production to be counted 
will be determined by multiplying the number of pounds of such 
production by the factor derived from dividing price quotation ``A'' by 
seventy-five percent (75%) of price quotation ``B.''
    (e) For ELS cotton to be eligible for quality adjustment as shown in 
subsection 11.(d), ginning must have been completed at a gin using 
roller equipment.
    (f) Any AUP cotton harvested or appraised from acreage originally 
planted to ELS cotton in the same growing season will be reduced by the 
factor obtained by dividing the price per pound of the AUP cotton by the 
price quotation for ELS cotton of the grade, staple length, and 
micronaire reading designated in the Special Provisions for this 
purpose. The price used for the ELS cotton will be the price contained 
in the Weekly Cotton Market Review published by the USDA Agricultural 
Marketing Service the week the last bale from the unit is classed. The 
price used for the AUP cotton will be the price contained in the Daily 
Spot Cotton Quotations published by the USDA Agricultural Marketing 
Service the day the last bale from the unit is classed. If the date the 
last bale is classed is not available, the price quotations will be 
determined when the last bale from the unit is delivered to the 
warehouse, as shown on the producers account summary obtained from the 
gin. If either

[[Page 370]]

price quotation is unavailable for the dates stated above, the price 
quotations for the nearest prior date for which price quotations for 
both the AUP and ELS cotton are available will be used. If prices are 
not yet available for the insured crop year, the previous season's 
average prices will be used.

                         12. Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be provided 
for acreage you were prevented from planting (see subsections 12.(b) 
through (g)). This coverage provides a reduced production guarantee.
    The reduced guarantee will be combined with the production guarantee 
for timely planted acreage for each unit. The premium amount for 
eligible prevented planting acreage will be the same as that for timely 
planted acreage. If the amount of premium you are required to pay (gross 
premium less our subsidy) for prevented planting acreage exceeds the 
liability on such acreage, coverage for those acres will not be provided 
(no premium will be due and no indemnity will be paid for such acreage). 
(For example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 100 acres, of which 50 acres were 
planted by the final planting date and 50 acres are unplanted and 
eligible for prevented planting coverage. To calculate the amount of any 
indemnity which may be due to you, the production guarantee for the unit 
will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted; and
    (2) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Thirty-five percent (0.35) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if the acreage is left idle for the 
crop year, or if a cover crop is planted not for harvest. Prevented 
planting compensation hereunder will not be denied because the cover 
crop is hayed or grazed; or
    (ii) Seventeen and five tenths percent (0.175) and multiply the 
result by the 50 acres you were prevented from planting, if the acreage 
is eligible for prevented planting coverage, and if you elect to plant a 
substitute crop for harvest after the 10th day following the final 
planting date for the insured crop. (This subparagraph (ii) is not 
applicable, and prevented planting coverage is not available hereunder, 
if you elected the Catastrophic Risk Protection Endorsement or you 
elected to exclude prevented planting coverage when a substitute crop is 
planted (see subsection 12(b)(2))).
    The total of the two calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 100 
acres in the unit.
    (b) If you were prevented from planting ELS cotton (see subsection 
1(l)), you may elect:
    (1) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the 
final planting date. In either case, the production guarantee for such 
acreage will be thirty-five percent (35%) of the production guarantee 
for timely planted acres. For example, if your production guarantee for 
timely planted acreage is 600 pounds per acre, your prevented planting 
production guarantee would be 210 pounds per acre (600 pounds multiplied 
by 0.35). If you elect to plant the insured crop after the final 
planting date, production to count for such acreage will be determined 
in accordance with subsections 11(c) through (f); or
    (2) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to seventeen and five tenths 
percent (17.5%) of the production guarantee for timely planted acres 
will be provided for such acreage, if the substitute crop is planted 
after the tenth day following the final planting date for the insured 
crop. If you elected the Catastrophic Risk Protection Endorsement or 
excluded this coverage, and plant a substitute crop, no prevented 
planting coverage will be provided. For example, if your production 
guarantee for timely planted acreage is 700 pounds per acre, your 
prevented planting production guarantee would be 122.5 pounds per acre 
(700 pounds multiplied by 0.175). You may elect to exclude prevented 
planting coverage when a substitute crop is planted for harvest and 
receive a reduction in the applicable premium rate. If you wish to 
exclude this coverage, you must so indicate, on or before the sales 
closing date, on your application or on a form approved by us. Your 
election to exclude this coverage will remain in effect from year to 
year unless you notify us in writing on our form by the applicable sales 
closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (c) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (d) In addition to the provisions of section 11 (Insurance Period) 
of the Common Crop

[[Page 371]]

Insurance Policy (Sec. 457.8), the insurance period for prevented 
planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase an ELS cotton crop insurance policy 
for the 1996 crop year, prevented planting coverage will begin on the 
1996 sales closing date for the insured crop in the county. If the ELS 
cotton coverage remains in effect for the 1997 crop year (is not 
terminated or cancelled during or after the 1996 crop year, except the 
policy may have been cancelled to transfer the policy to a different 
insurance provider, if there is no lapse in coverage), prevented 
planting coverage for the 1997 crop year began on the 1996 sales closing 
date.
    (e) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (f) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (1) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (2) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (i) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (ii) The number of acres planted to ELS cotton on the FSA Farm 
Serial Number during the previous crop year; or
    (iii) One hundred percent (100%) of the simple average of the number 
of acres planted to ELS cotton during the crop years that you certified 
to determine your yield.
    (3) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres for which you had adequate irrigation 
facilities prior to the insured cause of loss which prevented you from 
planting.
    (4) Prevented planting coverage will not be provided for any 
acreage:
    (i) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (ii) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (iii) Used for conservation purposes or intended to be left 
unplanted under any program administered by the United States Department 
of Agriculture;
    (iv) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year;
    (v) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(2)(i) of this section, or a 
substitute crop allowed in paragraph (a)(2)(ii) of this section);
    (vi) When coverage is provided under the Catastrophic Risk 
Protection Endorsement if you plant another crop for harvest on any 
acreage you were prevented from planting in the same crop year. If you 
have a Catastrophic Risk Protection Endorsement and receive a prevented 
planting indemnity, guarantee, or amount of insurance for a crop and are 
prevented from planting another crop on the same acreage, you may only 
receive the prevented planting indemnity, guarantee, or amount of 
insurance for the crop on which the prevented planting indemnity, 
guarantee, or amount of insurance is received; or
    (vii) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (5) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of ELS cotton acres timely planted. For example, assume 
you have 100 acres eligible for prevented planting coverage in which you 
have a 100 percent (100%) share. The acreage is located in a single FSA 
Farm Serial Number which you insure as two separate optional units 
consisting of 50 acres each. If you planted 60 acres of ELS cotton on 
one optional unit and 40 acres of ELS cotton on the second optional 
unit, your prevented planting eligible acreage would be reduced to zero. 
(i.e., 100 acres eligible for prevented planting coverage minus 100 
acres planted equals zero).

[[Page 372]]

    (g) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. For the purpose of determining acreage eligible for a 
prevented planting production guarantee the total amount of prevented 
planting and planted acres cannot exceed the maximum number of acres 
eligible for prevented planting coverage. Any acreage you report in 
excess of the number of acres eligible for prevented planting coverage, 
or that exceeds the number of eligible acres physically located in a 
unit, will be deleted from your acreage report.
    (h) Late planting provisions are not available under these crop 
provisions.

[59 FR 49169, Sept. 27, 1994, as amended at 60 FR 62726, Dec. 7, 1995]



Sec. 457.107  Florida citrus fruit crop insurance provisions.

    The Florida Citrus Fruit Crop Insurance Provisions for the 1998 and 
succeeding crop years are as follows:

                        Department of Agriculture

                   Federal Crop Insurance Corporation

                  Florida Citrus Fruit Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
Crop Provisions, and the Special Provisions; the Special Provisions will 
control these Crop Provisions and the Basic Provisions; and these Crop 
Provisions will control the Basic Provisions.

                             1. Definitions

    Amount of insurance (acre).The dollar amount determined by 
multiplying the Reference Maximum Dollar Amount shown on the Actuarial 
Table for the citrus fruit times the coverage level you elect, times 
your share.
    Box.A standard field box as prescribed in the State of Florida 
Citrus Fruit Laws.
    Citrus fruit type.Any of the following:
    (1) Type I--Early and mid-season oranges;
    (2) Type II--Late oranges juice;
    (3) Type III--Grapefruit for which freeze damage will be adjusted on 
a juice basis;
    (4) Type IV--Navel Oranges, Tangelos and Tangerines;
    (5) Type V--Murcott Honey Oranges (also known as Honey Tangerines) 
and Temple Oranges;
    (6) Type VI--Lemons and Limes; and
    (7) Type VII--Grapefruit for which freeze damage will be adjusted on 
a fresh fruit basis, and late oranges fresh.
    Days.Calendar days.
    FSA.Farm Service Agency, an agency of the United States Department 
of Agriculture or a successor agency.
    Freeze.The formation of ice in the cells of the fruit caused by low 
air temperatures.
    Good farming practices.The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity and 
produce the expected yield for the type and age of citrus fruit, and are 
those recognized by the Cooperative State Research, Education, and 
Extension Service as compatible with agronomic and weather conditions in 
the county.
    Harvest.The severance of mature citrus fruit from the tree by 
pulling, picking, or any other means, or collecting the marketable fruit 
from the ground.
    Hurricane.A windstorm classified by the U.S. Weather Service as a 
hurricane.
    Interplanted.Acreage on which two or more crops are planted in any 
form of alternating or mixed pattern.
    Non-contiguous land.Any two or more tracts of land whose boundaries 
do not touch at any point, except that land separated only by a public 
or private right-of-way, waterway, or an irrigation canal, will be 
considered as contiguous.
    Potential production.Citrus fruit that would have been produced had 
damage not occurred, including citrus fruit that:
    (1) Was harvested before damage occurred;
    (2) Remained on the tree after damage occurred; and
    (3) Was lost from either an insured or uninsured cause;
    But not including citrus fruit that:
    (1) Was lost before insurance attached for any crop year;
    (2) Was lost by normal dropping; or
    (3) Any tangerines that normally would not meet the 210 pack size (2 
and 4/16 inch minimum diameter) under United States Standards by the end 
of the insurance period for tangerines.
    Written agreement.A written document that alters designated terms of 
this policy in accordance with section 11.

                            2. Unit Division

    (a) A unit as defined in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8), (basic unit) will be divided into basic units 
by each citrus fruit type shown in section 1 of these crop provisions or 
designated in the Special Provisions.
    (b) Unless limited by the Special Provisions, these basic units may 
be divided into optional units if, for each optional unit you meet all 
the conditions of this section or if a written agreement to such 
division exists.
    (c) Basic units may not be divided into optional units on any basis 
other than as described in this section.
    (d) If you do not comply fully with these provisions, we will 
combine all optional

[[Page 373]]

units that are not in compliance with these provisions into the basic 
unit from which they were formed. We will combine the optional units at 
any time we discover that you have failed to comply with these 
provisions. If failure to comply with these provisions is determined to 
be inadvertent, and the optional units are combined into a basic unit, 
that portion of the additional premium paid for the optional units that 
have been combined will be refunded to you for the units combined.
    (e) All optional units you selected for the crop year must be 
identified on the acreage report for that crop year.
    (f) Each optional unit must meet one of the following criteria, as 
applicable:
    (1) Optional Units by Section, Section Equivalent, or Farm Service 
Agency (FSA) Farm Serial Number: Optional units may be established if 
each optional unit is located in a separate legally identified section. 
In the absence of sections, we may consider parcels of land legally 
identified by other methods of measure including, but not limited to 
Spanish grants, railroad surveys, leagues, labors, or Virginia Military 
Lands, as the equivalent of sections for unit purposes. In areas that 
have not been surveyed using the systems identified above, or another 
system approved by us, or in areas where such systems exist but 
boundaries are not readily discernable, each optional unit must be 
located in a separate farm identified by a single FSA Farm Serial 
Number; or
    (2) Optional Units on Acreage Located on Non-Contiguous Land: 
Optional units may be established if each optional unit is located on 
non-contiguous land.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements of section 3 (Insurance Guarantees, 
Coverage Levels, and Prices for Determining Indemnities) of the Basic 
Provisions (Sec. 457.8):
    (a) You may select only one coverage level for each Florida citrus 
fruit type shown in section 1 of these crop provisions or designated in 
the Special Provisions, that you elect to insure. If different amounts 
of insurance are available for citrus fruit within a type, you must 
select the same coverage level for each citrus fruit. For example, if 
you choose the 75 percent coverage level for a specific citrus fruit 
within a type, you must also choose the 75 percent coverage level for 
all other citrus fruit within that type.
    (b) In lieu of the production reporting date contained in section 3 
(Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities) of the Basic Provisions (Sec. 457.8), potential production 
for each unit will be determined during loss adjustment.
    (c) By the sales closing date contained in the Special Provisions, 
for the first year of insurance for acreage interplanted with another 
citrus fruit crop, and anytime the planting pattern of such acreage is 
changed, you must report the following:
    (1) The age of the interplanted trees and type if applicable;
    (2) The planting pattern; and
    (3) Any other information we request in order to establish your 
amount of insurance.
    (d) We will reduce acreage or the amount of insurance or both, as 
necessary, based on our estimate of the effect of the interplanted 
citrus fruit trees on the insured citrus fruit crop. If you fail to 
notify us of any circumstance that may reduce the acreage or amount of 
insurance, we will reduce the acreage or amount of insurance or both as 
necessary any time we become aware of the circumstance.

                           4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is March 15 preceding 
the cancellation date.

                  5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation date 
is April 30 preceding the crop year. The termination date is April 30 of 
the crop year.

                             6. Insured Crop

    (a) In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all acreage of each 
citrus fruit type that you elect to insure, in which you have a share, 
that is grown in the county shown on the application, and for which a 
premium rate is quoted in the actuarial table.
    (b) In addition to the citrus fruit not insurable in section 8 
(Insured Crop) of the Basic Provisions (Sec. 457.8), we do not insure 
any citrus fruit:
    (1) That cannot be expected to mature each crop year within the 
normal maturity period for the type;
    (2) Produced by trees that have not reached the fifth growing season 
after being set out, unless otherwise provided in the Special Provisions 
or by a written agreement to insure such citrus fruit;
    (3) Of ``Meyer Lemons'' and oranges commonly known as ``Sour 
Oranges'' or ``Clementines''; or
    (4) Of the Robinson tangerine variety, for any crop year in which 
you have elected to exclude such tangerines from insurance. (You must 
elect this exclusion prior to the crop year for which the exclusion is 
to be effective, except that for the first crop year you must elect this 
exclusion by the later of April 30 or the time you submit the 
application for insurance.)

[[Page 374]]

    (c) Upon our approval, prior to the date insurance attaches, you may 
elect to insure or exclude from insurance any insurable acreage that has 
a potential production of less than 100 boxes per acre. If you:
    (1) Elect to insure such acreage, we will consider the potential 
production to be 100 boxes per acre when determining the amount of loss; 
or
    (2) Elect to exclude such acreage, we will disregard the acreage for 
all purposes related to this contract.
    (d) In addition to the provisions in Section 6(f) (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), if you fail to notify us 
of your election to insure or exclude acreage, and the potential 
production from such acreage is 100 or more boxes per acre, we will 
determine the percent of damage on all of the insurable acreage for the 
unit, but will not allow the percent of damage for the unit to be 
increased by including such acreage.

                          7. Insurable Acreage

    In lieu of the provisions in section 9 (Insurable Acreage) of the 
Basic Provisions (Sec. 457.8), that prohibit insurance attaching to a 
crop planted with another crop, citrus fruit interplanted with another 
citrus fruit crop is insurable unless we inspect the acreage and 
determine that it does not meet the requirements contained in your 
policy.

                           8. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins on May 1 of each crop year, except that for the 
year of application if your application is received by us after April 
21, but prior to May 1, insurance will attach on the 10th day after your 
properly completed application, acreage, and production reports are 
received in our local office, unless we inspect the acreage during the 
10 day period and determine that it does not meet the requirements for 
insurability contained in your policy. You must provide any information 
that we require for the crop to determine the condition of the grove to 
be insured.
    (2) The calendar date for the end of the insurance period for each 
crop year is:
    (i) January 31 for tangerines and navel oranges;
    (ii) April 30 for lemons, limes, tangelos, early and mid-season 
oranges; and
    (iii) June 30 for late oranges, grapefruit, Temple, and Murcott 
Honey Oranges.
    (b) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8):
    (1) If you acquire an insurable share in any insurable acreage after 
coverage begins, but on or before the acreage reporting date of any crop 
year, and if after inspection we consider the acreage acceptable, then 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period.
    (2) If you relinquish your insurable share on any insurable acreage 
of citrus fruit on or before the acreage reporting date of any crop 
year, insurance will not be considered to have attached to, no premium 
will be due and no indemnity paid for, such acreage for that crop year 
unless:
    (i) A transfer of coverage and right to an indemnity, or a similar 
form approved by us, is completed by all affected parties;
    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

                            9. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur within the insurance period:
    (1) Fire, unless weeds and other forms of undergrowth have not been 
controlled or pruning debris has not been removed from the grove;
    (2) Freeze;
    (3) Hail;
    (4) Hurricane; or
    (5) Tornado.
    (b) In addition to the causes of loss excluded in section 12 (Causes 
of Loss) of the Basic Provisions (Sec. 457.8), we will not insure 
against damage or loss of production due to:
    (1) Any damage to the blossoms or trees; or
    (2) Inability to market the citrus fruit for any reason other than 
actual physical damage from an insurable cause specified in this 
section. For example, we will not pay you an indemnity if you are unable 
to market due to quarantine, boycott, or refusal of any person to accept 
production.

                         10. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional units, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic units, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for the units.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Calculating the amount of insurance for the unit by multiplying 
the number of acres by the respective dollar amount of insurance per 
acre for the citrus fruit and multiplying that result by your share;

[[Page 375]]

    (2) Calculating the average percent of damage to the respective 
citrus fruit, rounded to the nearest tenth of a percent (0.1%). The 
percent of damage will be the ratio of the number of boxes of citrus 
fruit considered damaged from an insured cause divided by the undamaged 
potential production. Citrus fruit will be considered undamaged 
potential production if it is:
    (i) Marketed or could be marketed as fresh fruit;
    (ii) Harvested prior to inspection by us; or
    (iii) Harvested within 7 days after a freeze;
    (3) Subtracting the coverage level percentage from 100 percent;
    (i) Subtracting this result from the result of section (10)(b)(2); 
and
    (ii) If the result section (10)(b)(3)(i) is positive, dividing this 
result by the coverage level percentage;
    (4) Multiplying the result of section (10)(b)(3)(ii) by the amount 
of insurance for the unit for the respective citrus fruit.
    (For example, if the average percent of damage is 70 percent and the 
coverage level is 75 percent (the deductible is 25 percent), the amount 
payable is 60 percent times the amount of insurance (70% damage - 25 % 
level deductible)=45% (45%  75%) 60% adjusted damage times the 
amount of insurance); and
    (5) Totaling all such results of section (10)(b)(4) to determine the 
amount payable for the unit.
    (c) Citrus fruit of Types IV, V, and VII that are seriously damaged 
by freeze, as determined by a fresh-fruit cut of a representative sample 
of fruit in the unit in accordance with the applicable provisions of the 
State of Florida Citrus Fruit laws, and that are not or could not be 
marketed as fresh fruit, will be considered damaged to the following 
extent:
    (1) If less than 16 percent of the fruit in a sample shows serious 
freeze damage, the fruit will be considered undamaged; or
    (2) If 16 percent or more of the fruit in a sample shows serious 
freeze damage, the fruit will be considered 50 percent damaged, except 
that:
    (i) For tangerines of Type IV, damage in excess of 50 percent will 
be the actual percent of damaged fruit; and
    (ii) Citrus of Types IV (except tangerines), V, and VII, if it is 
determined that the juice loss in the fruit exceeds 50 percent, such 
percent will be considered the percent of damage.
    (d) Notwithstanding the provisions of section 10(c) of these crop 
provisions as to citrus fruit of Types IV, V, and VII, in any unit that 
is mechanically separated using the specific-gravity (floatation) method 
into undamaged and freeze-damaged fruit, the amount of damage will be 
the actual percent of freeze-damaged fruit not to exceed 50 percent and 
will not be affected by subsequent fresh-fruit marketing. However, the 
50 percent limitation on mechanically-separated, freeze-damaged fruit 
will not apply to tangerines of citrus fruit Type IV.
    (e) Any citrus fruit of Types I, II, III, and VI damaged by freeze, 
but that can be processed into products for human consumption, will be 
considered as marketable for juice. The percent of damage will be 
determined by relating the juice content of the damaged fruit to:
    (1) The average juice content of the fruit produced on the unit for 
the three previous crop years based on your records, if they are 
acceptable to us; or
    (2) The following juice content, if acceptable records are not 
furnished:

(i) Type I--52 pounds of juice per box
(ii) Type II--54 pounds of juice per box
(iii) Type III--45 pounds of juice per box
(iv) Type VI--43 pounds of juice per box

    (f) Any citrus fruit on the ground that is not collected and 
marketed will be considered as 100 percent damaged if the damage was due 
to an insured cause.
    (g) Any citrus fruit that is unmarketable either as fresh fruit or 
as juice because it is immature, unwholesome, decomposed, adulterated, 
or otherwise unfit for human consumption due to an insured cause will be 
considered as 100 percent damaged.
    (h) Citrus fruit of Types IV, V, and VII that are unmarketable as 
fresh fruit due to serious damage from hail as defined in the applicable 
United States Standards for Grades of Florida fruit will be considered 
totally lost.

                         11. Written Agreements

    Designated terms of this policy may be altered by written agreement 
in accordance with the following:
    (a) You must apply to us in writing for each written agreement no 
later than the sales closing date, except as provided in section 11(e);
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in effect 
if the written agreement is not approved;
    (c) If approved by us, the written agreement will include all 
variable terms of the contract, including, but not limited to, crop type 
and variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will be valid for one year (if the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy); and
    (e) An application for a written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has

[[Page 376]]

occurred and the crop is insurable in accordance with the policy and 
written agreement provisions.

[61 FR 69002, Dec. 31, 1996]

    Effective Date Note: At 61 FR 69002, Dec. 31, 1996, Sec. 457.107 was 
added, effective Jan. 30, 1997.



Sec. 457.108  Sunflower seed crop insurance provisions.

    The Sunflower Seed Crop Insurance Provisions for the 1995 and 
succeeding crop years are as follows:

                        Department of Agriculture

                   Federal Crop Insurance Corporation

                     Sunflower Seed Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions, the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    (a) Days--Calendar days.
    (b) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (c) Good farming practices--The cultural practices generally in use 
in the county for the crop to make normal progress toward maturity and 
produce at least the yield used to determine the production guarantee 
and are those recognized by the Cooperative Extension Service as 
compatible with agronomic and weather conditions in the area.
    (d) Harvest--Combining or threshing the sunflowers for seed.
    (e) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (f) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.
    (g) Late planted--Acreage planted to the insured crop during the 
late planting period.
    (h) Late planting period--The period that begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (i) Local market price--The cash seed price per pound for oil type 
sunflower seed grading U.S. No. 2, or non-oil type sunflower seed with a 
test weight of at least 22 pounds per bushel and less than five percent 
(5%) kernel damage, offered by buyers in the area in which you normally 
market the sunflower seed. The local market price for oil type sunflower 
seed will reflect the maximum limits of quality deficiencies allowable 
for the U.S. No. 2 grade of sunflower seed. Factors not associated with 
grading of sunflower seed under the Official United States Standards for 
Grain including, but not limited to, oil or moisture content will not be 
considered.
    (j) Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed which has been properly prepared for the planting 
method and production practice. Sunflower seed must initially be planted 
in rows far enough apart to permit cultivation to be considered planted. 
Acreage planted in any other manner will not be insurable unless 
otherwise provided by the Special Provisions or by written agreement.
    (k) Practical to replant--In lieu of subsection 1.(ff) of the Basic 
Provisions (Sec. 457.8), practical to replant is defined as our 
determination, after loss or damage to the insured crop, based on 
factors, including but not limited to moisture availability, condition 
of the field, and time to crop maturity, that replanting to the insured 
crop will allow the crop to attain maturity prior to the calendar date 
for the end of the insurance period. It will not be considered practical 
to replant after the end of the late planting period unless replanting 
is generally occurring in the area.
    (l) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (m) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (n) Replanting--Performing the cultural practices necessary to 
replace the sunflower seed and then replacing the sunflower seed in the 
insured acreage with the expectation of growing a successful crop.
    (o) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the county.
    (p) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing no later than the sales closing date and is valid for 
one

[[Page 377]]

year only. If not specifically renewed the following year, continuous 
insurance will be in accordance with the printed policy. All variable 
terms including, but not limited to, crop variety, guarantee, premium 
rate, and price election must be contained in the written agreement. 
Notwithstanding the sales closing date restriction contained herein, in 
specific instances a written agreement may be applied for after the 
sales closing date, and approved if, after physical inspection of the 
acreage, there is a determination that the crop has the expectancy of 
making at least the guaranteed yield. However, no prevented planting 
liability will be established as a result of any request submitted after 
the sales closing date. All applications for written agreements as 
submitted by the insured must contain all variable terms of the contract 
between the company and the insured that will be in effect if the 
written agreement is disapproved.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Basic Provisions (Sec. 457.8), may be divided 
into optional units if, for each optional unit you meet all the 
conditions of this section or if a written agreement to such division 
exists. Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, variety, and 
planting period other than as described under this section. If you do 
not comply fully with these provisions, we will combine all optional 
units which are not in compliance with these provisions into the basic 
unit from which they were formed. We may combine the optional units at 
any time we discover that you have failed to comply with these 
provisions. If failure to comply with these provisions is determined to 
be inadvertent, and the optional units are combined, that portion of the 
premium paid for the purpose of electing optional units will be refunded 
to you pro rata for the units combined. All optional units must be 
reflected on the acreage report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee.
    (b) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that 
permits us to verify the production from each optional unit or the 
production from each unit must be kept separate until after loss 
adjustment under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or Consolidated 
Farm Service Agency (CFSA) Farm Serial Number: Optional units may be 
established if each optional unit is located in a separate, legally 
identified Section. In the absence of Sections, we may consider parcels 
of land legally identified by other methods of measure including, but 
not limited to: Spanish grants, railroad surveys, leagues, labors, or 
Virginia Military Lands as the equivalent of Sections for unit purposes. 
In areas which have not been surveyed using the systems identified 
above, or another system approved by us, or in areas where such systems 
exist but boundaries are not readily discernable, each optional unit 
must be located in a separate farm identified by a single CFSA Farm 
Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing optional 
units by Section, section equivalent or CFSA Farm Serial Number, 
optional units may be based on irrigated acreage or non-irrigated 
acreage if both are located in the same Section, section equivalent or 
CFSA Farm Serial Number. The irrigated acreage may not extend beyond the 
point at which your irrigation system can deliver the quantity of water 
needed to produce the yield on which your guarantee is based and you may 
not continue into non-irrigated acreage in the same rows or planting 
pattern. You must plant, cultivate, fertilize, or otherwise care for the 
irrigated acreage in accordance with recognized good irrigated farming 
practices.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements of section 3 (Insurance Guarantees, 
Coverage Levels, and Prices for Determining Indemnities) of the Basic 
Provisions (Sec. 457.8), you may select only one price election for all 
the sunflower seed in the county insured under this policy. 
Notwithstanding the preceding sentence, if the Special Provisions 
provide different price elections by type, you may select one price 
election for each sunflower seed type designated in the Special 
Provisions.

                           4. Contract Changes

    The contract change date is November 30 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Basic Provisions 
(Sec. 457.8), the cancellation and termination dates are March 15.

[[Page 378]]

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic Provisions 
(Sec. 457.8), the crop insured will be all the oil and non-oil type 
sunflower seed in the county for which a premium rate is provided by the 
actuarial table:
    (a) In which you have a share;
    (b) That is planted for harvest as sunflower seed; and
    (c) That is not (unless a written agreement allows otherwise):
    (1) Interplanted with another crop; or
    (2) Planted into an established grass or legume.

                          7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) of 
the Basic Provisions (Sec. 457.8):
    (a) We will not insure any acreage which does not meet the rotation 
requirements shown in the Special Provisions; and
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that the remaining stand will not produce 
at least ninety percent (90%) of the production guarantee, must be 
replanted unless we agree that replanting is not practical (see 
subsection 1.(k)).

                           8. Insurance Period

    In accordance with the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8), the calendar date for the end of 
the insurance period is November 30, immediately following planting.

                            9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss which occur within the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) If applicable, failure of the irrigation water supply due to an 
unavoidable cause of loss occurring after the beginning of planting.

                         10. Replanting Payments

    (a) In accordance with section 13 (Replanting Payment) of the Basic 
Provisions (Sec. 457.8), a replanting payment for sunflower seed is 
allowed if the sunflowers are damaged by an insurable cause of loss to 
the extent that the remaining stand will not produce at least ninety 
percent (90%) of the production guarantee for the acreage and it is 
practical to replant (see subsection 1.(k)).
    (b) The maximum amount of the replanting payment per acre will be 
the lesser of twenty percent (20%) of the production guarantee or 175 
(pounds of seed), multiplied by your price election, multiplied by your 
insured share or the share determined in accordance with subsection 
10.(c), if applicable.
    (c) When more than one person insures the same crop on a share 
basis, a replanting payment based on the total shares insured by us may 
be made to the insured person who incurs the total cost of replanting. 
Payment will be made in this manner only if an agreement exists between 
the insured persons which:
    (1) Requires one person to incur the entire cost of replanting; or
    (2) Gives the right to all replanting payments to one person.
    (d) When sunflower seed is replanted using a practice that is 
uninsurable as an original planting, the liability for the unit will be 
reduced by the amount of the replanting payment which is attributable to 
your share. The premium amount will not be reduced.

                11. Duties in the Event of Damage or Loss

    In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), the 
representative samples of the unharvested crop must be at least 10 feet 
wide and extend the entire length of each field in the unit. The samples 
must not be harvested or destroyed until the earlier of our inspection 
or 15 days after harvest of the balance of the unit is completed.

                         12. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage of each type of sunflower seed 
by the production guarantee for the applicable type;
    (2) Multiplying each result by the price election for the applicable 
type;
    (3) Adding these values;
    (4) Multiplying the production to count of each type of sunflower 
seed by the price election for that type;
    (5) Adding these dollar values;

[[Page 379]]

    (6) Subtracting the result of step (5) from the result of step (3); 
and
    (7) Multiplying the result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance with 
subsection 12.(d)); and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement, the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us, (The amount of production to count 
for such acreage will be based on the harvested production or appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provide sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count.); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Mature sunflower seed production may be adjusted for excess 
moisture and quality deficiencies. If moisture adjustment is applicable, 
it will be made prior to any adjustment for quality.
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of ten percent (10%). We may 
obtain samples of the production to determine the moisture content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality result in:
    (A) Oil type sunflower seed not meeting the grade requirements for 
U.S. No. 2 (grades U.S. sample grade) because of test weight, kernel 
damage (excluding heat damage), or a musty, sour or commercially 
objectionable foreign odor; or
    (B) Non-oil type sunflower seed having a test weight below 22 pounds 
per bushel or kernel damage (excluding heat damage) in excess of five 
percent (5%) or a musty, sour or commercially objectionable foreign 
odor; or
    (ii) Substances or conditions are present that are identified by the 
Food and Drug Administration or other public health organizations of the 
United States as being injurious to human or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions, resulted from a 
cause of loss against which insurance is provided under these crop 
provisions and within the insurance period ;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or by 
a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grader licensed to grade 
sunflower seed under the authority of the United States Grain Standards 
Act or the United States Warehouse Act with regard to deficiencies in 
quality, or by a laboratory approved by us with regard to substances or 
conditions injurious to human or animal health. (Test weight for quality 
adjustment purposes may also be determined by our loss adjuster.)
    (4) Sunflower seed production that is eligible for quality 
adjustment, as specified in paragraphs 12.(d)(2) and (3), will be 
reduced:
    (i) In accordance with quality adjustment factor provisions 
contained in the Special Provisions; or
    (ii) As follows, if quality adjustment factor provisions are not 
contained in the Special Provisions:
    (A) The market price of the qualifying damaged production and the 
local market price will be determined on the earlier of the date such 
quality adjusted production is sold or the date of final inspection for 
the unit. The price for the qualifying damaged production will be the 
market price for the local area to the extent feasible. Discounts used 
to establish the net price of the damaged production will be limited to 
those which are usual, customary, and reasonable. The price will not be 
reduced for:
    (1) Moisture content;
    (2) Damage due to uninsured causes; or

[[Page 380]]

    (3) Drying, handling, processing, or any other costs associated with 
normal harvesting, handling, and marketing of the sunflower seed; 
except, if the price of the damaged production can be increased by 
conditioning, we may reduce the price of the production after it has 
been conditioned by the cost of conditioning but not lower than the 
value of the production before conditioning. (We may obtain prices from 
any buyer of our choice. If we obtain prices from one or more buyers 
located outside your local market area, we will reduce such prices by 
the additional costs required to deliver the sunflower seed to those 
buyers.);
    (B) The value of the damaged or conditioned production will be 
divided by the local market price to determine the quality adjustment 
factor; and
    (C) The number of pounds remaining after any reduction due to 
excessive moisture (the moisture-adjusted gross pounds (if appropriate)) 
of the damaged or conditioned production will then be multiplied by the 
quality adjustment factor to determine the net production to count.
    (e) Any production harvested from plants growing in the insured crop 
may be counted as production of the insured crop on a weight basis.

                13. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the Basic 
Provisions (Sec. 457.8), insurance will be provided for acreage planted 
to the insured crop during the late planting period (see subsection 
13.(c)), and acreage you were prevented from planting (see subsection 
13.(d)). These coverages provide reduced production guarantees. The 
reduced guarantees will be combined with the production guarantee for 
timely planted acreage for each unit. The premium amount for late 
planted acreage and eligible prevented planting acreage will be the same 
as that for timely planted acreage. If the amount of premium you are 
required to pay (gross premium less our subsidy) for late planted 
acreage or prevented planting acreage exceeds the liability on such 
acreage, coverage for those acres will not be provided (no premium will 
be due and no indemnity will be paid for such acreage), (For example, 
assume you insure one unit in which you have a 100 percent (100%) share. 
The unit consists of 150 acres, of which 50 acres were planted timely, 
50 acres were planted seven (7) days after the final planting date (late 
planted), and 50 acres are unplanted and eligible for prevented planting 
coverage. To calculate the amount of any indemnity which may be due to 
you, the production guarantee for the unit will be computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by ninety-three percent (0.93) and 
multiply the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (ii) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subsection 13(d)(1)(iii))).
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date .
    (c) Late Planting
    (1) For sunflower acreage planted after the final planting date but 
on or before 25 days after the final planting date, the production 
guarantee for each acre will be reduced for each day planted after the 
final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of Acreage) 
of the Basic Provisions (Sec. 457.8), you must report the dates the 
acreage is planted within the late planting period.
    (3) If planting of sunflower seed continues after the final planting 
date, or you are prevented from planting during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions 
for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period)

[[Page 381]]

    (1) If you were prevented from planting sunflowers (see subsection 
1(l)), you may elect:
    (i) To plant sunflower seed during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with paragraph 13(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be fifty percent (50%) of the production guarantee for 
timely planted acres. For example, if your production guarantee for 
timely planted acreage is 900 pounds per acre, your prevented planting 
production guarantee would be 450 pounds per acre (900 pounds multiplied 
by 0.50). If you elect to plant the insured crop after the late planting 
period, production to count for such acreage will be determined in 
accordance with subsections 12 (c) through (e); or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to twenty-five percent (25%) of the 
production guarantee for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your production guarantee for timely planted 
acreage is 900 pounds per acre, your prevented planting production 
guarantee would be 225 pounds per acre (900 pounds multiplied by 0.25). 
You may elect to exclude prevented planting coverage when a substitute 
crop is planted for harvest and receive a reduction in the applicable 
premium rate. If you wish to exclude this coverage, you must so 
indicate, on or before the sales closing date, on your application or on 
a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8), the insurance period for prevented 
planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase a sunflower seed crop insurance policy 
for the 1996 crop year, prevented planting coverage will begin on the 
1996 sales closing date for the insured crop in the county. If the 
sunflower seed coverage remains in effect for the 1997 crop year (is not 
terminated or cancelled during or after the 1996 crop year, except the 
policy may have been cancelled to transfer the policy to a different 
insurance provider, if there is no lapse in coverage), prevented 
planting coverage for the 1997 crop year began on the 1996 sales closing 
date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to sunflower seed on the FSA Farm 
Serial Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to sunflower seed during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which prevented 
you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in

[[Page 382]]

the unit, whichever is less (Acreage that is less than 20 acres or 20 
percent of the acreage in the unit will be presumed to have been 
intended to be planted to the insured crop planted in the unit, unless 
you can show that you had the inputs available before the final planting 
date to plant and produce another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section), unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of sunflower acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of sunflower seed on one optional unit and 40 acres of sunflower 
seed on the second optional unit, your prevented planting eligible 
acreage would be reduced to zero (i.e.,100 acres eligible for prevented 
planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), you must report by unit 
any insurable acreage that you were prevented from planting. This report 
must be submitted on or before the acreage reporting date. For the 
purpose of determining acreage eligible for a prevented planting 
production guarantee the total amount of prevented planting and planted 
acres cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.

[59 FR 67136, Dec. 29, 1994, as amended at 60 FR 62727, Dec. 7, 1995]



Sec. 457.109  Sugar Beet Crop Insurance Provisions.

    The Sugar Beet Crop Insurance Provisions for the 1997 and succeeding 
crop years are as follows:
    FCIC Policies

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                           Reinsured policies

(Appropriate title for insurance provider)
    Both FCIC and Reinsured Policies

                       Sugar Beet Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
Crop Provisions, and the Special Provisions; the Special Provisions will 
control these Crop Provisions and the Basic Provisions; and these Crop 
Provisions will control the Basic Provisions.

                             1. Definitions

    Crop year. In Imperial, Lassen, Modoc, Shasta and Siskiyou counties, 
California and all other States, the period within which the sugar beets 
are normally grown, which is designated by the calendar year in which 
the sugar beets are normally harvested. In all other California 
counties, the period from planting until the applicable date for the end 
of the insurance period which is designated by:
    (a) The calendar year in which planted if planted on or before July 
15; or
    (b) The following calendar year if planted after July 15.

[[Page 383]]

    Days. Calendar days.
    FSA. Farm Service Agency of the United States Department of 
Agriculture, or a successor agency.
    Final planting date. The date contained in the Special Provisions 
for the insured crop by which the crop must initially be planted in 
order to be insured for the full production guarantee.
    Good farming practices. The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity and 
produce at least the yield used to determine the production guarantee 
and are those recognized by the Cooperative State Research, Education, 
and Extension Service as compatible with agronomic and weather 
conditions in the county.
    Harvest. Topping and lifting of sugar beets in the field.
    Initially planted. The first occurrence that land is considered as 
planted acreage for the crop year.
    Interplanted. Acreage on which two or more crops are planted in a 
manner that does not permit separate agronomic maintenance or harvest of 
the insured crop.
    Irrigated practice. A method of producing a crop by which water is 
artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.
    Late planted. Acreage planted to the insured crop during the late 
planting period.
    Late planting period. The period that begins the day after the final 
planting date for the insured crop and ends twenty-five (25) days after 
the final planting date.
    Local market price. The price per pound for raw sugar offered by 
buyers in the area in which you normally market the sugar beets.
    Planted acreage. Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed that has been properly prepared for the planting 
method and production practice. Sugar beets must initially be planted in 
rows to be considered planted. Acreage planted in any other manner will 
not be insurable unless otherwise provided by the Special Provisions or 
by written agreement.
    Practical to replant. In lieu of the definition of ``Practical to 
replant'' contained in section 1 of the Basic Provisions (Sec. 457.8), 
practical to replant is defined as our determination, after loss or 
damage to the insured crop, based on factors, including but not limited 
to moisture availability, condition of the field, time to crop maturity, 
and marketing window, that replanting the insured crop will allow the 
crop to attain maturity prior to the calendar date for the end of the 
insurance period. It will not be considered practical to replant if 
production from the replanted acreage cannot be delivered under the 
terms of the processor contract, or 30 days after the initial planting 
date for all counties where a late planting period is not applicable, 
unless replanting is generally occurring in the area.
    Prevented planting. Inability to plant the insured crop with proper 
equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    Processor. Any business enterprise regularly engaged in processing 
sugar beets for sugar that possesses all licenses and permits for 
processing sugar beets required by the State in which it operates, and 
that possesses facilities, or has contractual access to such facilities, 
with enough equipment to accept and process the contracted sugar beets 
within a reasonable amount of time after harvest.
    Production guarantee (per acre):
    (a) First stage production guarantee--The final stage production 
guarantee multiplied by 60 percent.
    (b) Final stage production guarantee--The number of tons determined 
by multiplying the approved yield per acre by the coverage level 
percentage you elect.
    Raw sugar. Sugar that has not been extracted from the sugar beet.
    Replanting. Performing the cultural practices necessary to replace 
the sugar beet seed and then replacing the sugar beet seed in the 
insured acreage with the expectation of growing a successful crop.
    Standardized ton. A ton of sugar beets containing the percentage of 
raw sugar specified in the Special Provisions.
    Sugar beet processor contract. A written contract between the 
producer and the processor, containing at a minimum:
    (1) The producer's commitment to plant and grow sugar beets, and to 
deliver the sugar beet production to the processor;
    (2) The processor's commitment to purchase the production stated in 
the contract; and
    (3) A price or formula for a price based on third party data that 
will be paid to the producer for the production stated in the contract.
    Thinning. The process of removing, either by machine or hand, a 
portion of the sugar beet plants to attain a desired plant population.
    Timely planted. Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the county.

[[Page 384]]

    Ton. Two thousand (2,000) pounds avoirdupois.
    Written agreement. A written document that alters designated terms 
of this policy in accordance with section 15.

                            2. Unit Division

    (a) Unless limited by the Special Provisions, a unit as defined in 
section 1 (Definitions) of the Basic Provisions (Sec. 457.8), a basic 
unit may be divided into optional units if, for each optional unit, you 
meet all the conditions of this section or if a written agreement to 
such division exists.
    (b) Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, variety, and 
planting period other than as described in this section.
    (c) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have failed 
to comply with these provisions. If failure to comply with these 
provisions is determined to be inadvertent, and the optional units are 
combined into a basic unit, that portion of the additional premium paid 
for the optional units that have been combined will be refunded to you.
    (d) All optional units you selected for the crop year must be 
identified on the acreage report for that crop year.
    (e) The following requirements must be met for each optional unit:
    (1) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee;
    (2) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit;
    (3) You must have records of marketed production or measurement of 
stored production from each optional unit maintained in such a manner 
that permits us to verify the production from each optional unit, or the 
production from each unit must be kept separate until loss adjustment is 
completed by us;
    (4) The sugar beet processor contract provides that the processor 
will accept all the production from the number of acres designated in 
the contract (Acreage insured under a sugar beet processor contract 
which provides that the processor will accept a designated amount of 
production will not be eligible for optional units).
    (5) Each optional unit must meet one or more of the following 
criteria, as applicable:
    (i) Optional Units by Section, Section Equivalent, or FSA Farm 
Serial Number. Optional units may be established if each optional unit 
is located in a separate legally identified Section. In the absence of 
Sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands, as the 
equivalent of Sections for unit purposes. In areas that have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single FSA Farm Serial Number.
    (ii) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices. In addition to, or instead of, establishing 
optional units by Section, section equivalent, or FSA Farm Serial 
Number, optional units may be based on irrigated acreage or non-
irrigated acreage if both are located in the same Section, section 
equivalent, or FSA Farm Serial Number. To qualify as separate irrigated 
and non-irrigated optional units, the non-irrigated acreage may not 
continue into the irrigated acreage in the same rows or planting 
pattern. The irrigated acreage may not extend beyond the point at which 
the irrigation system can deliver the quantity of water needed to 
produce the yield on which the guarantee is based. However, the corners 
of a field in which a center-pivot irrigation system is used will be 
considered as irrigated acreage if separate acceptable records of 
production from the corners are not provided. If the corners of a field 
in which a center-pivot irrigation system is used do not qualify as a 
separate non-irrigated optional unit, they will be a part of the unit 
containing the irrigated acreage. However, non-irrigated acreage that is 
not a part of a field in which a center-pivot irrigation system is used 
may qualify as a separate optional unit provided that all requirements 
of this section are met.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Basic Provisions (Sec. 457.8), you may select only one price 
election for all the sugar beets in the county insured under this 
policy.
    (b) The production guarantees are progressive by stages, and 
increase at specified intervals to the final stage. The stages are:
    (1) First stage, with a guarantee of 60 percent (60%) of the final 
stage production guarantee, extends from planting until:
    (i) July 1 in Lassen, Modoc, Shasta and Siskiyou counties, 
California and all other States except Arizona; and
    (ii) The earlier of thinning or 90 days after planting in Arizona 
and all other California counties.

[[Page 385]]

    (2) Final stage, with a guarantee of 100 percent (100%) of the final 
stage production guarantee, applies to all insured sugar beets that 
complete the first stage.
    (c) The production guarantee will be expressed in standardized tons.
    (d) Any acreage of sugar beets damaged in the first stage to the 
extent that growers in the area would not normally further care for the 
sugar beets will be deemed to have been destroyed, even though you may 
continue to care for it. The production guarantee for such acreage will 
not exceed the first stage production guarantee.

                           4. Contract Changes

    In accordance with the provisions of section 4 (Contract Changes) of 
the Basic Provisions (Sec. 457.8), the contract change date is April 30 
preceding the cancellation date for counties with a July 15 or August 31 
cancellation date and November 30 preceding the cancellation date for 
all other counties.

                  5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation and 
termination dates are:

                                                                        
------------------------------------------------------------------------
        State and County          Cancellation date    Termination date 
------------------------------------------------------------------------
Arizona; and Imperial County,    August 31..........  August 31.        
 California.                                                            
All California counties, except  July 15............  November 30.      
 Imperial, Lassen, Modoc,                                               
 Shasta and Siskiyou.                                                   
All Other States, and Lassen,    March 15...........  March 15.         
 Modoc, Shasta and Siskiyou                                             
 Counties, California.                                                  
------------------------------------------------------------------------

                            6. Annual Premium

    In lieu of the premium computation method contained in section 7 
(Annual Premium) of the Basic Provisions (Sec. 457.8), the annual 
premium amount is computed by multiplying the final stage production 
guarantee by the price election, the premium rate, the insured acreage, 
your share at the time of planting, and any applicable premium 
adjustment factors contained in the Actuarial Table.

                             7. Insured Crop

    (a) In accordance with section 8 (Insured Crop) of the Basic 
Provisions (Sec. 457.8), the crop insured will be all the sugar beets in 
the county for which a premium rate is provided by the Actuarial Table:
    (1) In which you have a share;
    (2) That are planted for harvest as sugar beets;
    (3) That are grown under a sugar beet processor contract executed 
before the acreage reporting date and are not excluded from the 
processor contract at any time during the crop year; and
    (4) That are not (unless allowed by the Special Provisions or by 
written agreement):
    (i) Interplanted with another crop;
    (ii) Planted into an established grass or legume; or
    (iii) Planted prior to submitting a properly completed application.
    (b) Sugar beet growers who are also processors may establish an 
insurable interest if they meet the following requirements:
    (1) The processor must meet the definition of a ``processor'' in 
section 1 of these crop provisions and have a valid insurable interest 
in the sugar beet crop;
    (2) The Board of Directors or officers of the processor must have 
duly promulgated a resolution that sets forth essentially the same terms 
as a sugar beet processor contract. Such resolution will be considered a 
sugar beet processing contract under the terms of the sugar beet crop 
insurance policy;
    (3) The sales records of the processor showing the amount of sugar 
produced the previous year must be supplied to us to confirm the 
processor has produced and sold sugar in the past; and
    (4) Our inspection of the processing facilities determines that they 
conform to the definition of processor contained in section 1 of these 
crop provisions.

                          8. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) of 
the Basic Provisions (Sec. 457.8):
    (a) We will not insure any acreage planted to sugar beets:
    (1) The preceding crop year, unless otherwise specified in the 
Special Provisions for the county;
    (2) In any crop year following the discovery of rhizomania on the 
acreage, unless allowed by the Special Provisions or by written 
agreement; or
    (3) That does not meet the rotation requirements shown in the 
Special Provisions;
    (b) Any acreage of the insured crop damaged before the final 
planting date, (or within 30 days of initial planting for those counties 
without a final planting date) to the extent that growers in the area 
would normally not further care for the crop, must be replanted unless 
we agree that replanting is not practical.

                           9. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic

[[Page 386]]

Provisions (Sec. 457.8), the calendar date for the end of the insurance 
period is:
    (1) July 15 in Arizona and in Imperial County, California;
    (2) The last day of the 12th month after the insured crop was 
initially planted in all California counties except Imperial, Lassen, 
Modoc, Shasta and Siskiyou;
    (3) October 31 in Lassen, Modoc, Shasta and Siskiyou Counties, 
California, and in Klamath County, Oregon;
    (4) November 25 in Ohio;
    (5) December 31 in New Mexico and Texas; and
    (6) November 15 in all other States and counties.
    (b) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8), regarding the end of the insurance 
period, the insurance period ends for all units when the production 
delivered to the processor equals the amount of production stated in the 
sugar beet processor contract.

                           10. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur within the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if caused by an insured 
peril that occurs during the insurance period.

                         11. Replanting Payments

    (a) In accordance with section 13 (Replanting Payment) of the Basic 
Provisions (Sec. 457.8), a replanting payment is allowed if the crop is 
damaged by an insurable cause of loss to the extent that the remaining 
stand will not produce at least 90 percent (90%) of the final stage 
production guarantee for the acreage and it is practical to replant.
    (b) The maximum amount of the replanting payment per acre will be 
the lesser of 10 percent (10%) of the final stage production guarantee 
or one ton, multiplied by your price election, multiplied by your 
insured share.
    (c) When sugar beets are replanted using a practice that is 
uninsurable for an original planting, our liability on the unit will be 
reduced by the amount of the replanting payment. The premium amount will 
not be reduced.

                12. Duties In The Event of Damage or Loss

    In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8):
    (a) Representative samples of the unharvested crop must be at least 
10 feet wide and extend the entire length of each field in the unit. The 
samples must not be harvested or destroyed until the earlier of our 
inspection or 15 days after harvest of the balance of the unit is 
completed; and
    (b) You must provide a copy of your sugar beet processor contract or 
corporate resolution if you are the processor.

                         13. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate acceptable production records:
    (1) For any optional unit, we will combine all optional units for 
which acceptable production records were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage by its respective production 
guarantee;
    (2) Subtracting the total production to count from the result in 
paragraph (b)(1);
    (3) Multiplying the result of paragraph (b)(2) by your price 
election; and
    (4) Multiplying the result of paragraph (b)(3) by your share.
    (c) The total production to count (in standardized tons) from all 
insurable acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) That is damaged solely by uninsured causes; or
    (D) For which you fail to provide acceptable production records that 
are acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (unharvested production that is 
appraised prior to the earliest delivery date that the processor accepts 
harvested production will not be eligible for a conversion to 
standardized tons in accordance with section 13 (d) and (e));
    (iv) Only appraised production in excess of the difference between 
the first and final stage production guarantee for acreage that does not 
qualify for the final stage guarantee will be counted, except that all 
production from acreage subject to section 13(c)(1) (i) and (ii) will be 
counted; and

[[Page 387]]

    (v) Potential production on insured acreage that you intend to put 
to another use or abandon, if you and we agree on the appraised amount 
of production. Upon such agreement, the insurance period for that 
acreage will end if you put the acreage to another use or abandon the 
crop. If agreement on the appraised amount of production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us (The amount of production to count 
for such acreage will be based on the harvested production or appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provide sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from the insurable acreage.
    (d) Harvested production or unharvested production that is appraised 
after the earliest delivery date that the processor accepts harvested 
production and that meets the minimum acceptable standards contained in 
the sugar beet processor contract or corporate resolution will be 
converted to standardized tons by:
    (1) Dividing the average percentage of raw sugar in such sugar beets 
by the raw sugar content percentage shown in the Special Provisions; and
    (2) Multiplying the result (rounded to three places) by the number 
of tons of such sugar beets.
    The average percentage of raw sugar will be determined from tests 
performed by the processor at the time of delivery. If individual tests 
of raw sugar content are not made at the time of delivery, the average 
percent of raw sugar may be based on the results of previous tests 
performed by the processor during the crop year if it is determined that 
such results are representative of the total production. If not 
representative, the average percent of raw sugar will equal the raw 
sugar content percent shown in the Special Provisions.
    (e) Harvested production or unharvested production that is appraised 
after the earliest delivery date that the processor accepts harvested 
production and that does not meet the minimum acceptable standards 
contained in the sugar beet processor contract due to an insured peril 
will be converted to standardized tons by:
    (1) Dividing the gross dollar value of all of the damaged sugar 
beets on the unit (including the value of cooperative stock, patronage 
refunds, etc.) by the local market price per pound on the earlier of the 
date such production is sold or the date of final inspection for the 
unit;
    (2) Dividing that result by 2,000; and
    (3) Dividing that result by the county average raw sugar factor 
contained in the Special Provisions for this purpose.
    For example, assume that the total dollar value of the damaged sugar 
beets is $6,000.00; the local market price is $0.10; and the county 
average raw sugar factor is 0.15. The amount of production to count 
would be calculated as follows: 
(($6,000.00$0.10)2,000)0.15=200 tons.

                     14. Late and Prevented Planting

    (a) In lieu of provisions contained in the Basic Provisions 
(Sec. 457.8) regarding acreage initially planted after the final 
planting date and the applicability of a Late Planting Agreement Option, 
insurance will be provided for acreage planted to the insured crop 
during the late planting period (see section 14(c)), and acreage you 
were prevented from planting (see section 14(d)). These coverages 
provide reduced production guarantees and are applicable in all counties 
except California counties with a July 15 cancellation date. The premium 
amount for late planted acreage and eligible prevented planting acreage 
will be the same as that for timely planted acreage. If the amount of 
premium you are required to pay (gross premium less our subsidy) for 
late planted acreage or prevented planting acreage exceeds the liability 
on such acreage: coverage for those acres will not be provided; no 
premium will be due; and no indemnity will be paid for such acreage.
    (b) You must provide written notice to us not later than the acreage 
reporting date if you were prevented from planting.
    (c) Late planting.
    (1) For sugar beet acreage planted during the late planting period, 
the production guarantee for the applicable stage for each acre will be 
reduced for each day planted after the final planting date by:
    (i) One percent (1%) for the 1st through the 10th day; and
    (ii) Two percent (2%) for the 11th through the 25th day.
    (2) In addition to the requirements of section 6 (Report of Acreage) 
of the Basic Provisions (Sec. 457.8), you must report the dates the 
acreage is planted within the late planting period.

[[Page 388]]

    (3) If planting of sugar beets continues after the final planting 
date, or you are prevented from planting during the late planting 
period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions 
for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period)
    (1) If you were prevented from timely planting sugar beets, you may 
elect:
     (i) To plant sugar beets during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with section 14(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be 35 percent of the final stage production guarantee for 
timely planted acres. For example, if your final stage production 
guarantee for timely planted acreage is 20.0 tons per acre, your 
prevented planting production guarantee would be 7.0 tons per acre (20.0 
tons multiplied by 0.35). If you elect to plant the insured crop after 
the late planting period, production to count for such acreage will be 
determined in accordance with section 13; or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the 10th day 
following the final planting date for the insured crop; or
    (B) A production guarantee equal to 17.5 percent of the final stage 
production guarantee for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the 10th day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your final stage production guarantee for 
timely planted acreage is 20.0 tons per acre, your prevented planting 
production guarantee would be 3.5 tons per acre (20.0 ton multiplied by 
0.175). You may elect to exclude prevented planting coverage when a 
substitute crop is planted for harvest and receive a reduction in the 
applicable premium rate. If you wish to exclude this coverage, you must 
so indicate, on or before the sales closing date, on your application or 
on a form approved by us. Your election to exclude this coverage will 
remain in effect from year to year unless you notify us in writing on 
our form by the applicable sales closing date for the crop year for 
which you wish to include this coverage. All acreage of the crop insured 
under this policy will be subject to this exclusion.
    (2) Production guarantees for timely, late, and prevented planting 
acreage within a unit will be combined to determine the production 
guarantee for the unit. For example, assume you insure 1 unit in which 
you have a 100 percent share. The unit consists of 150 acres, of which 
50 acres were planted timely, 50 acres were planted 7 days after the 
final planting date (late planted), and 50 acres were not planted but 
are eligible for a prevented planting production guarantee. The 
production guarantee for the unit will be computed as follows:
    (i) For the timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (ii) For the late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by 93 percent and multiply the 
result by the 50 acres planted late; and
    (iii) For prevented planting acreage, multiply the final stage per 
acre production guarantee for timely planted acreage by:
    (A) Thirty five percent and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (B) Seventeen and one-half percent and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (B) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
section 14(d)(1)(iii)).)
    Your premium will be based on the result of multiplying the per acre 
production guarantee for timely planted acreage by the 150 acres in the 
unit.
    (3) You must have the inputs available to plant and produce the 
intended crop with the expectation of at least producing the production 
guarantee. Proof that these inputs were available may be required.
    (4) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8), the insurance period for prevented 
planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or

[[Page 389]]

    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase insurance for sugar beets for the 1997 
crop year, prevented planting coverage will begin on the 1997 sales 
closing date for sugar beets in the county. If the sugar beet coverage 
remains in effect for the 1998 crop year (is not terminated or canceled 
during or after the 1997 crop year), prevented planting coverage for the 
1998 crop year began on the 1997 sales closing date. Cancellation for 
the purpose of transferring the policy to a different insurance provider 
when there is no lapse in coverage will not be considered terminated or 
canceled coverage for the purpose of the preceding sentence.
    (5) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all FSA Farm Serial Numbers in 
which you have a share, adjusted for any reconstitution that may have 
occurred on or before the sales closing date. Eligible acreage for each 
FSA Farm Serial Number is determined as follows:
    (i) Eligible acreage will not exceed the number of acres required to 
be grown in the current crop year under a contract executed with a 
processor prior to the acreage reporting date or the number of acres 
needed to produce the amount of contracted production based on the APH 
yield for the acreage.
    (ii) Acreage intended to be planted under an irrigated practice will 
be limited to the number of acres for which you had adequate irrigation 
facilities prior to the insured cause of loss which prevented you from 
planting.
    (iii) A prevented planting production guarantee will not be provided 
for any acreage:
    (A) That does not constitute at least 20 acres or 20 percent of the 
acreage in the unit, whichever is less (Acreage that is less than 20 
acres or 20 percent of the acreage in the unit will be presumed to have 
been intended to be planted to the insured crop planted in the unit, 
unless you can show that you had the inputs available before the final 
planting date to plant and produce another insured crop on the acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage was double-cropped in each of the last 4 years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in section 14(d)(2)(iii)(A), or a substitute crop 
allowed in section 14 (d)(2)(iii)(B), unless you provide adequate 
records of acreage and production showing that the acreage was double-
cropped in each of the last 4 years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double-cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another 
crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (iv) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of sugar beet acres timely planted and late planted. For 
example, assume you have 100 acres eligible for prevented planting 
coverage in which you have a 100 percent (100%) share. The acreage is 
located in a single FSA Farm Serial Number which you insure as two 
separate optional units consisting of 50 acres each. If you planted 60 
acres of sugar beets on one optional unit and 40 acres of sugar beets on 
the second optional unit, your prevented planting eligible acreage would 
be reduced to zero (i.e., 100 acres eligible for prevented planting 
coverage minus 100 acres planted equals zero).
    (6) In accordance with the provisions of section 6 (Report of 
Acreage) of the Basic Provisions (Sec. 457.8), you must report by unit 
any insurable acreage that you were prevented from planting. This report 
must be submitted on or before the acreage reporting date. For the 
purpose of determining acreage eligible for a prevented planting 
production guarantee, the total amount of prevented planting and planted 
acres cannot exceed the maximum number of acres eligible for prevented 
planting coverage. Any acreage you report in excess of the number of 
acres eligible for prevented planting coverage, or that exceeds the 
number of eligible acres physically located in a unit, will be deleted 
from your acreage report.

[[Page 390]]

                         15. Written Agreements

    Designated terms of this policy may be altered by written agreement. 
The following conditions will apply:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date, except as provided in section 15(e).
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in effect 
if the written agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election.
    (d) Each written agreement will only be valid for one year. If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy.
    (e) An application for a written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has occurred and the crop is 
insurable in accordance with the policy and written agreement 
provisions.

[61 FR 58775, Nov. 19, 1996]



Sec. 457.110  Fig crop insurance provisions.

    The Fig Crop Insurance Provisions for the 1994 and subsequent crop 
years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                           Fig Crop Provisions

    If a conflict exists between the Common Crop Insurance Policy 
(Sec. 457.8) and the Special Provisions, the Special Provisions will 
control. If a conflict exists between these Crop Provisions and the 
Special Provisions, the Special Provisions will control.

                             1. Definitions

    (a) Good farming practices--The cultural practices necessary for the 
insured crop to make usual and normal progress toward maturity and which 
can be expected to produce at least the yield used to determine the 
production guarantee. Good farming practices are generally those in use 
in the county for production of the insured crop and are recognized by 
the Cooperative Extension Service as compatible with agronomic and 
weather conditions in the area.
    (b) Harvest--The picking of the figs from the trees or ground by 
hand or machine for the purpose of removal from the orchard.
    (c) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated acreage for the 
insured crop.
    (d) Manufacturing grade production--Production that meets the 
minimum grade standards and is defined as ``manufacturing grade'' by the 
Marketing Order for Dried Figs, as amended, which is in effect on the 
date insurance attaches.
    (e) Marketable figs--Figs that grade manufacturing grade or better 
in accordance with the Marketing Order for Dried Figs, as amended, which 
is in effect on the date insurance attaches.
    (f) Noncontiguous land--Land which is not touching at any point, 
except that land which is separated by only a public or private right-
of-way will be considered contiguous.
    (g) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (h) Substandard production--Production that does not meet minimum 
grade standards and is defined as ``substandard'' by the Marketing Order 
for Dried Figs, as amended, which is in effect on the date insurance 
attaches.

                            2. Unit Division

    In addition to the provisions of subsection 1.(tt) of the Common 
Crop Insurance Policy (Sec. 457.8), a unit will consist of all the 
insurable acreage of an insurable type of fig in the county. Unless 
limited by the Special Provisions, these units may be further divided 
into optional units if, for each optional unit you claim, all the 
conditions of subsections 2.(a), and (b) are met, or if we agree in 
writing. Optional units must be established at the time you file your 
report of acreage for each crop year.
    (a) You must have verifiable records of acreage and production for 
each optional unit for at least the last crop year used to determine 
your production guarantee.
    (b) The acreage of insured figs must be located on noncontiguous 
land. Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other than 
as described under this section. If you do not comply fully with these 
conditions, we will combine all optional units which are not established 
in compliance with these provisions into the basic unit from which they 
were formed. We may do this at any time we discover that

[[Page 391]]

you have failed to comply with these conditions. If failure to comply 
with these provisions is determined to be inadvertent, and if the 
optional units are recombined, the premium paid for electing optional 
units will be refunded to you.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements under section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Common Crop Insurance Policy (Sec. 457.8), you may select only one 
price election for each fig type designated in the Special Provisions, 
and insured in the county under this policy.

                           4. Contract Changes

    The contract change date is October 31 preceding the cancellation 
date (see the provisions under section 4 (Contract Changes) of the 
Common Crop Insurance Policy (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    The cancellation and termination dates are February 28.

                          6. Report of Acreage

    By applying for fig crop insurance, you authorize us to have access 
to and to determine or verify your production and acreage from records 
maintained by the California Fig Advisory Board and the fig packer.

                             7. Insured Crop

    The crop insured will be all the commercially grown dried figs that 
are grown in the county on insurable acreage, and for which a premium 
rate is provided by the actuarial table:
    (a) In which you have a share;
    (b) That are grown for harvest as dried figs;
    (c) That are irrigated;
    (d) That have reached the seventh growing season after being set 
out; and
    (e) For which acceptable production records for at least the 
previous crop year are provided;
    (f) That are not figs:
    (1) Grown on acreage with less than 90 percent of a stand based on 
the original planting pattern unless we agree, in writing, to insure 
such figs;
    (2) Which we inspect and consider not acceptable;
    (3) Grown for the crop year the application is filed unless 
inspected and accepted by us; or
    (4) Grown on acreage acquired for the crop year unless such acreage 
has been inspected and accepted by us.

                           8. Insurance Period

    In lieu of the provisions of section 11 (Insurance Period) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance attaches on each 
unit the later of the date you submit your application or March 1 of the 
crop year and ends at the earliest of:
    (a) Total destruction of the fig crop;
    (b) The date harvest of the figs (by type) should have started on 
any acreage that will not be harvested;
    (c) Harvest of the figs;
    (d) Final adjustment of a loss;
    (e) Abandonment of the crop; or
    (f) October 31 of the crop year.

                            9. Causes of Loss

    (a) In addition to the provisions under section 12 (Causes of Loss) 
of the Common Crop Insurance Policy (Sec. 457.8), any loss covered by 
this policy must occur within the insurance period. The specific causes 
of loss for figs are:
    (1) Adverse weather conditions;
    (2) Earthquake;
    (3) Fire;
    (4) Volcanic eruption;
    (5) Wildlife; or
    (6) Failure of the irrigation water supply.
    (b) In addition to the causes of loss not insured against contained 
in section 12 (Causes of Loss) of the Common Crop Insurance Policy 
(Sec. 457.8), we will not insure against:
    (1) Any loss of production due to fire, where weeds and other forms 
of undergrowth have not been controlled or tree pruning debris has not 
been removed from the grove; or
    (2) The inability to market the fruit as a direct result of 
quarantine, boycott, or refusal of any entity to accept production.

                         10. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production that are acceptable to us 
for any:
    (1) Optional unit, we will combine all optional units for which 
acceptable records of production were not provided; or
    (2) Basic unit, we will allocate any commingled production to such 
units in proportion to our liability on the harvested acreage for each 
unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this the total production to count;
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.
    (c) The total production (pounds) to count from all insurable 
acreage on the unit will include all harvested and appraised marketable 
figs.

[[Page 392]]

    (1) Figs, which due to insurable causes, grade manufacturing grade 
will be adjusted by:
    (i) Dividing the value per pound of the manufacturing grade 
production by the highest price election available for the insured type; 
and
    (ii) Multiplying the result (not to exceed 1) by the number of 
pounds of such manufacturing grade production.
    (2) Figs, which due to insurable causes, grade substandard and are 
delivered to the substandard pool will not be considered production to 
count, provided all the insured's substandard production is inspected by 
us and we give written consent to such delivery prior to delivery. If we 
do not give written consent prior to the delivery to the substandard 
pool, all production will be counted as undamaged marketable production. 
Substandard production for which we give written consent to you prior to 
delivery to the substandard pool, which is not delivered to the 
substandard pool, and is sold by you, will be considered production to 
count and adjusted as follows:
    (i) Dividing the value per pound received for such substandard 
production by the highest price election available for the insured type; 
and
    (ii) Multiplying the result (not to exceed 1) by the number of 
pounds of such substandard production.
    (3) Appraised production to be counted will include:
    (i) Potential production lost due to uninsured causes and failure to 
follow recognized good fig farming practices;
    (ii) Not less than the production guarantee for the figs on any 
acreage:
    (A) That is abandoned without our consent;
    (B) Damaged solely by uninsured causes;
    (c) If the figs are destroyed by you without our consent; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (iii) Unharvested production which would be marketable if harvested; 
and
    (iv) Potential production on insured acreage that you want to 
abandon and no longer care for if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for that 
acreage will end if you abandon the crop. If agreement on the appraised 
amount of production is not reached:
    (A) We may require you to continue to care for the crop so that a 
subsequent appraisal may be made or the crop harvested to determine 
actual production. You must notify us within three days of the date 
harvest should have started if the crop is not harvested; or
    (B) You may elect to continue to care for the crop. We will 
determine the amount of production to count for the acreage using the 
harvested production or our reappraisal if the crop is not harvested.

[59 FR 9615, Mar. 1, 1994]



Sec. 457.111  Pear crop insurance provisions.

    The Pear Crop Insurance Provisions for the 1998 and succeeding crop 
years are as follows:

    FCIC Policies:

                        Department of Agriculture

                   Federal Crop Insurance Corporation

                           Reinsured Policies

(Appropriate title for insurance provider)
    Both FCIC and Reinsured Policies:

                          Pear Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions; the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    Days. Calendar days.
    Direct marketing. Sale of the insured crop directly to consumers 
without the intervention of an intermediary such as a wholesaler, 
retailer, packer, processor, shipper, or buyer. Examples of direct 
marketing include selling through an on-farm or roadside stand, farmer's 
market, and permitting the general public to enter the field for the 
purpose of picking all or a portion of the crop.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture, or a successor agency.
    Good farming practices. The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity and 
produce at least the yield used to determine the production guarantee, 
and generally recognized by the Cooperative State Research, Education, 
and Extension Service as compatible with agronomic and weather 
conditions in the county.
    Harvest. The picking of mature pears from the trees or the 
collecting of marketable pears from the ground.
    Interplanted. Acreage on which two or more crops are planted in any 
form of alternating or mixed pattern.
    Irrigated practice. A method of producing a crop by which water is 
artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.

[[Page 393]]

    Marketable. Pear production acceptable for processing or other human 
consumption even if failing to meet any U.S. or applicable state grading 
standard.
    Non-contiguous. Any two or more tracts of land whose boundaries do 
not touch at any point, except that land separated only by a public or 
private right-of-way, waterway, or an irrigation canal will be 
considered as contiguous.
    Production guarantee (per acre). The quantity of pears (in tons) 
determined by multiplying the approved APH yield per acre by the 
coverage level percentage you elect, and multiplying the result by any 
applicable adjustment factor provided in section 6(f) of the Basic 
Provisions (Sec. 457.8).
    Ton. Two thousand (2,000) pounds avoirdupois.
    Varietal group. Types of pears with similar characteristics that are 
grouped for insurance purposes as specified in the Special Provisions.
    Written agreement. A written document that alters designated terms 
of this policy in accordance with section 12.

                            2. Unit Division

    (a) Unless limited by the Special Provisions, a unit as defined in 
section 1 (Definitions) of the Basic Provisions (Sec. 457.8), a basic 
unit, may be divided into optional units if, for each optional unit you 
meet all the conditions of this section or if a written agreement to 
such division exists.
    (b) Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, and variety, 
other than as described in this section.
    (c) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have failed 
to comply with these provisions. If failure to comply with these 
provisions is determined to be inadvertent, and the optional units are 
combined into a basic unit, that portion of the premium paid for the 
purpose of electing optional units will be refunded to you for the units 
combined.
    (d) All optional units established for a crop year must be 
identified on the acreage report for that crop year.
    (e) The following requirements must be met for each optional unit:
    (1) You must have records, which can be independently verified, of 
acreage and production for each optional unit for at least the last crop 
year used to determine your production guarantee; and
    (2) You must have records of marketed production or measurement of 
stored production from each optional unit maintained in such a manner 
that permits us to verify the production from each optional unit, or the 
production from each unit must be kept separate until loss adjustment is 
completed by us.
    (3) Each optional unit must meet one or more of the following 
criteria as applicable:
    (i) Optional Units by Section, Section Equivalent, or FSA Farm 
Serial Number. Optional units may be established if each optional unit 
is located in a separate legally identified section. In the absence of 
sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands, as the 
equivalent of sections for unit purposes. In areas that have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single FSA Farm Serial Number; or
    (ii) Optional Units on Acreage Located on Non-Contiguous Land. In 
lieu of establishing optional units by section, section equivalent or 
FSA Farm Serial Number, optional units may be established if each 
optional unit is located on non-contiguous land.
    (iii) Optional Units on Acreage by Varietal Group. In addition to, 
or instead of, establishing optional units by section, section 
equivalent, FSA Farm Serial Number, or on non-contiguous land, optional 
units may be established by varietal group when provided for in the 
Special Provisions.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    In addition to the requirements of section 3 (Insurance Guarantees, 
Coverage Levels, and Prices for Determining Indemnities) of the Basic 
Provisions (Sec. 457.8):
    (a) You may select only one price election for all the pears in the 
county insured under this policy unless the Special Provisions provide 
different price elections by varietal group, in which case you may 
select one price election for each varietal group designated in the 
Special Provisions. The price elections you choose for each varietal 
group must have the same percentage relationship to the maximum price 
offered by us for each varietal group. For example, if you choose one 
hundred percent (100%) of the maximum price election for one varietal 
group, you must also choose one hundred percent (100%) of the maximum 
price election for all other varietal groups.
    (b) You must report, by the production reporting date designated in 
section 3 (Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities) of the Basic Provisions (Sec. 457.8), by 
varietal group:
    (1) Any damage, removal of trees, change in practices or any other 
circumstance that may reduce the expected yield below the

[[Page 394]]

yield upon which the insurance guarantee is based, and the number of 
affected acres;
    (2) The number of bearing trees on insurable and uninsurable 
acreage;
    (3) The age of the trees and the planting pattern; and
    (4) For the first year of insurance for acreage interplanted with 
another perennial crop, and any time the planting pattern of such 
acreage is changed:
    (i) The age of the interplanted crop, and type if applicable;
    (ii) The planting pattern; and
    (iii) Any other information that we request in order to establish 
your approved yield. We will reduce the yield used to establish your 
production guarantee as necessary, based on our estimate of the effect 
of the following: interplanted perennial crop; removal of trees; damage; 
change in practices or any other circumstance on the yield potential of 
the insured crop. If you fail to notify us of any circumstance that may 
reduce your yields from previous levels, we will reduce your production 
guarantee as necessary at any time that we become aware of the 
circumstance.

                           4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is October 31 
preceding the cancellation date for states with a January 31 
cancellation date and August 31 preceding the cancellation date for all 
other states.

                  5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation and 
termination dates are:

------------------------------------------------------------------------
                                           Cancellation and termination 
                 States                               dates             
------------------------------------------------------------------------
California.............................  January 31.                    
All other states.......................  November 20.                   
------------------------------------------------------------------------

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic Provisions 
(Sec. 457.8), the crop insured will be all the pears in the county for 
which a premium rate is provided by the actuarial table:
    (a) In which you have a share;
    (b) That are of varieties adapted to the area;
    (c) That are grown on trees that have produced an average of at 
least five (5) tons of pears per acre in at least one of the four 
previous crop years unless the Special Provisions or a written agreement 
establishes a lower production level; and
    (d) That are grown in an orchard that, if inspected, is considered 
acceptable by us.

                          7. Insurable Acreage

    In lieu of the provisions in section 9 (Insurable Acreage) of the 
Basic Provisions (Sec. 457.8), that prohibit insurance attaching to a 
crop planted with another crop, pears interplanted with another 
perennial crop are insurable unless we inspect the acreage and determine 
that it does not meet the requirements contained in your policy.

                           8. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins:
    (i) In California, on February 1 of each crop year, except that for 
the year of application, if your application is received after January 
22 but prior to February 1, insurance will attach on the 10th day after 
your properly completed application is received in our local office, 
unless we inspect the acreage during the 10 day period and determine 
that it does not meet insurability requirements. You must provide any 
information that we require for the crop or to determine the condition 
of the orchard; or
    (ii) In all other states, on November 21 of each crop year, except 
that for the year of application, if your application is received after 
November 11 but prior to November 21, insurance will attach on the 10th 
day after your properly completed application is received in our local 
office, unless we inspect the acreage during the 10 day period and 
determine that it does not meet insurability requirements. You must 
provide any information that we require for the crop or to determine the 
condition of the orchard.
    (2) The calendar date for the end of the insurance period for each 
crop year is:
    (i) September 15 for Bartlett (green and red) and Star Crimson 
(Crimson Red) varietal groups; or
    (ii) October 15 for all other varietal groups.
    (b) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8):
    (1) If you acquire an insurable share in any insurable acreage after 
coverage begins but on or before the acreage reporting date for the crop 
year, and after an inspection we consider the acreage acceptable, 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period.
    (2) If you relinquish your insurable interest on any insurable 
acreage of pears on or before the acreage reporting date of any crop 
year, insurance will not be considered to have attached to, and no 
premium will be due, and no indemnity paid, for such acreage for that 
crop year unless:
    (i) A transfer of coverage and right to an indemnity, or a similar 
form approved by us, is completed by all affected parties;

[[Page 395]]

    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

                            9. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire, unless weeds and other forms of undergrowth have not been 
controlled or pruning debris has not been removed from the orchard;
    (3) Earthquake;
    (4) Volcanic eruption; or
    (5) Failure of the irrigation water supply, if caused by an insured 
peril that occurs during the insurance period.
    (b) In addition to the causes of loss excluded in section 12 (Causes 
of Loss) of the Basic Provisions (Sec. 457.8), we will not insure 
against damage or loss of production due to:
    (1) Disease or insect infestation, unless adverse weather:
    (i) Prevents the proper application of control measures or causes 
properly applied control measures to be ineffective; or
    (ii) Causes disease or insect infestation for which no effective 
control mechanism is available.
    (2) Failure of the fruit to color properly; or
    (3) Inability to market the pears for any reason other than actual 
physical damage from an insurable cause specified in this section. For 
example, we will not pay you an indemnity if you are unable to market 
due to quarantine, boycott, or refusal of any person to accept 
production.

                10. Duties in the Event of Damage or Loss

    In addition to the requirements of section 14 (Duties in the Event 
of Damage or Loss) of the Basic Provisions (Sec. 457.8), the following 
will apply:
    (a) You must notify us within 3 days of the date harvest should have 
started if the crop will not be harvested.
    (b) You must notify us at least 15 days before any production from 
any unit will be sold by direct marketing. We will conduct an appraisal 
that will be used to determine your production to count for production 
that is sold by direct marketing. If damage occurs after this appraisal, 
we will conduct an additional appraisal. These appraisals, and any 
acceptable records provided by you, will be used to determine your 
production to count. Failure to give timely notice that production will 
be sold by direct marketing will result in an appraised amount of 
production to count of not less than the production guarantee per acre 
if such failure results in our inability to make the required appraisal.
    (c) If you intend to claim an indemnity on any unit, you must notify 
us at least 15 days prior to the beginning of harvest if you previously 
gave notice in accordance with section 14 of the Basic Provisions 
(Sec. 457.8), so that we may inspect the damaged production. You must 
not sell or dispose of the damaged crop until after we have given you 
written consent to do so. If you fail to meet the requirements of this 
section, and such failure results in our inability to inspect the 
damaged production, all such production will be considered undamaged and 
included as production to count.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide separate, acceptable production records:
    (1) For any optional unit, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the insured acreage for each varietal group if 
applicable, by its respective production guarantee;
    (2) Multiplying the results of section 11(b)(1) by the respective 
price election for each varietal group, if applicable;
    (3) Totaling the results of section 11(b)(2);
    (4) Multiplying the total production to be counted of each varietal 
group, if applicable, by the respective price election;
    (5) Totaling the results of section 11(b)(4);
    (6) Subtracting this result of section 11(b)(5) from the result of 
section 11(b)(3); and
    (7) Multiplying the result of section 11(b)(6) by your share.
    (c) The total production to count (in tons) from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee per acre for acreage:
    (A) That is abandoned;
    (B) That is sold by direct marketing if you fail to meet the 
requirements contained in section 10;
    (C) That is damaged solely by uninsured causes; or
    (D) For which you fail to provide production records that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production; and
    (iv) Potential production on insured acreage that you intend to 
abandon or no longer care for, if you and we agree on the appraised 
amount of production. Upon such agreement,

[[Page 396]]

the insurance period for that acreage will end. If you do not agree with 
our appraisal, we may defer the claim only if you agree to continue to 
care for the crop. We will then make another appraisal when you notify 
us of further damage or that harvest is general in the area unless you 
harvested the crop, in which case we will use the harvested production. 
If you do not continue to care for the crop, our appraisal made prior to 
deferring the claim will be used to determine the production to count; 
and
    (2) For all states except California, all harvested and appraised 
marketable pear production from the insurable acreage.
    (3) For California, all harvested and appraised production that:
    (i) Meets the standards for first grade canning as defined by the 
California Pear Advisory Board or for U.S. Number 1 as defined by the 
United States Standards for Grades of Summer and Fall Pears, or Pears 
for Processing, or for U.S. Extra Number 1 or U.S. Number 1 as defined 
by the United States Standards for Grades of Winter Pears;
    (ii) Is accepted by a processor for canning or packing; or
    (iii) Is marketable for any purpose. However, if the pears are 
damaged by an insured cause, the production to count will be reduced by 
the greater of the following amounts:
    (A) The excess over ten percent (10%) of pears that are size 180 or 
smaller for varieties other than Forelle, Seckel or Winter Nelis; or
    (B) The result of dividing the value per ton of such pears by the 
highest price election for the insured varietal group, subtracting this 
result from 1.000, and multiplying this difference (if positive) by the 
number of tons of such pears.

                         12. Written Agreements

    Designated terms of this policy may be altered by written agreement 
in accordance with the following:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date, except as provided in section 12(e);
    (b) The application for a written agreement must contain all 
variable terms of the contract between you and us that will be in effect 
if the written agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy); and
    (e) An application for a written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has occurred and the crop is 
insurable in accordance with the policy and written agreement 
provisions.

                 13. Pear Quality Adjustment Endorsement

    (a) This endorsement applies to any crop year: Provided,
    (1) The insured pears are located in a State other than California 
and the actuarial table designates a premium rate for this endorsement;
    (2) You have not elected to insure your pears under the Catastrophic 
Risk Protection (CAT) Endorsement;
    (3) You elected it on your application or other form approved by us, 
and did so on or before the sales closing date for the initial crop year 
for which you wish it to be effective. By doing so, you agreed to pay 
the additional premium designated in the actuarial table for this 
optional coverage; and
    (4) You or we did not cancel it in writing on or before the 
cancellation date. Your election of CAT coverage for any crop year after 
this endorsement is effective will be considered as notice of 
cancellation by you.
    (b) If the pear production is damaged by hail and if eleven percent 
(11%) or more of the harvested and appraised production does not grade 
at least U.S. No. 2 in accordance with applicable United States 
Standards for Grades of Summer and Fall Pears, United States Standards 
for Grades of Winter Pears, or United States Standards for Grades of 
Pears for Processing, as applicable, due solely to hail, the amount of 
production to count will be reduced as follows:
    (i) By two percent (2%) for each full one percent (1%) in excess of 
ten percent (10%), when eleven percent (11%) through sixty percent (60%) 
of the pears fail the grade standard; or
    (ii) By one hundred percent (100%) when more than sixty percent 
(60%) of the pears fail the grade standard.
    The difference between the reduced production determined in section 
13(b) and the total production will be considered as cull production.
    (c) Pears that are knocked to the ground by wind or that are frozen 
and cannot be packed or marketed as fresh pears will be considered one 
hundred percent (100%) cull production.
    (d) Marketable production that grades less than U.S. No. 2 due to 
causes not covered by this endorsement will not be reduced.
    (e) Fifteen percent (15%) of all production considered as cull 
production in accordance with section 13 (b) and (c) will be production 
to count.

[61 FR 57580, Nov. 7, 1996]

[[Page 397]]



Sec. 457.113  Coarse grains crop insurance provisions.

    The coarse grains crop insurance provisions for the 1995 and 
succeeding crop year are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                      Coarse Grains Crop Provisions

    If a conflict exists among the Common Crop Insurance Policy 
(Sec. 457.8), these crop provisions, and the Special Provisions, the 
Special Provisions will control these crop provisions and the common 
policy and these crop provisions will control the common policy.

                             1. Definitions

    (a) Coarse grains--Corn, grain sorghum, and soybeans.
    (b) Days--Calendar days.
    (c) Final planting date--The date contained in the Special 
Provisions for the insured crop by which the crop must initially be 
planted in order to be insured for the full production guarantee.
    (d) Good farming practices--Good farming practices are the cultural 
practices generally in use in the county for the insured crop to make 
normal progress toward maturity and produce at least the yield used to 
determine the production guarantee and are those recognized by the 
Cooperative Extensive Service as compatible with agronomic and weather 
conditions in the area.
    (e) Grain sorghum--The crop defined as sorghum under the United 
States Grain Standards Act.
    (f) Harvest--Combining, threshing, or picking the insured crop for 
grain, or cutting for hay, silage, or fodder.
    (g) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (h) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate 
systems, and at the proper times, with the intention of providing the 
quantity of water needed to produce at least the yield used to establish 
the irrigated production guarantee on the irrigated acreage planted to 
the insured crop.
    (i) Late planted--Acreage planted to the insured crop during the 
late planting period.
    (j) Late planting period--The period that begins the day after the 
final planting date for the insured crop and ends twenty-five (25) days 
after the final planting date.
    (k) Local market price--The cash grain price per bushel for the U.S. 
No. 2 yellow corn, U.S. No. 2 grain sorghum, or U.S. No. 1 soybeans, 
offered by buyers in the area in which you normally market the insured 
crop. The local market price will reflect the maximum limits of quality 
deficiencies allowable for the U.S. No. 2 grade for yellow corn and 
grain sorghum, or U.S. No. 1 grade for soybeans. Factors not associated 
with grading under the Official United States Standards for Grain, 
including but not limited to protein and oil, will not be considered.
    (l) Planted acreage--Land in which seed has been placed by a machine 
appropriate for the insured crop and planting method, at the correct 
depth, into a seedbed which as been properly prepared for the planting 
method and production practice. Coarse grains must initially be planted 
in rows to be considered planted. Corn must be planted in rows far 
enough apart to permit mechanical cultivation. Planting in any other 
manner will be considered as a failure to follow recognized good farming 
practices and any loss of production will not be insured unless 
otherwise provided by the Special Provisions or by written agreement to 
insure such crop.
    (m) Practical to replant--In lieu of subsection 1.(ff) of the Common 
Crop Insurance Policy (Sec. 457.8) practical to replant is defined as 
our determination, after loss or damage to the insured crop, based on 
factors including, but not limited to moisture availability, condition 
of the field, and time to crop maturity that replanting to the insured 
crop will allow the crop to attain maturity prior to the calendar date 
for the end of the insurance period. It will not be considered practical 
to replant after the end of the late planting period unless replanting 
is generally occurring in the area.
    (n) Prevented planting--Inability to plant the insured crop with 
proper equipment by the final planting date designated in the Special 
Provisions for the insured crop in the county or the end of the late 
planting period. You must have been unable to plant the insured crop due 
to an insured cause of loss that has prevented the majority of producers 
in the surrounding area from planting the same crop.
    (o) Production guarantee--The number of bushels (tons for corn 
insured as silage) determined by multiplying the approved yield per acre 
by the coverage level percentage you elect.
    (p) Replanting--Performing the cultural practices necessary to 
replace the seed of the same insured crop, and replacing the seed for 
the same crop in the insured acreage with the expectation of growing a 
successful crop.
    (q) Silage--A product that results from severing the plant from the 
land and chopping it for the purpose of livestock feed.
    (r) Timely planted--Planted on or before the final planting date 
designated in the Special Provisions for the insured crop in the county.
    (s) Ton--Two thousand (2000) pounds avoirdupois.

[[Page 398]]

    (t) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing no later than the sales closing date and is valid for 
one year only. If not specifically renewed the following year, 
continuous insurance will be in accordance with the printed policy. All 
variable terms including, but not limited to, crop variety, guarantee, 
premium rate and price election must be set out in the written 
agreement. In specific instances, a written agreement may be applied for 
after the sales closing date and approved if, after a physical 
inspection of the acreage, there is a determination that the crop has 
the expectance of making at least the guaranteed yield. However, no 
prevented planting liability will be established as a result of any 
request submitted after the closing date. All applications for written 
agreements as submitted by the insured must contain all variable terms 
of the contract between the company and the insured that will be in 
effect if the written agreement is disapproved.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Common Crop Insurance Policy (Sec. 457.8), may 
be divided into optional units if, for each optional unit you meet all 
the conditions of this section or if a written agreement to such 
division exists. All optional units must be reflected on the acreage 
report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee.
    (b) You must plant the crop in a manner that results in a clear and 
discernable break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that we 
can verify the production from each optional unit or the production from 
each unit must be kept separate until after loss adjustment under the 
policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or ASCS Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate legally identified Section. In the absence of 
Sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to: Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands as the 
equivalent of Sections for unit purposes. In areas which have not been 
surveyed using the systems identified above or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernable, each optional unit must be located in a separate 
farm identified by a single ASCS Farm Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing optional 
units by Section, section equivalent, or ASCS Farm Serial Number, 
optional units may be established based on irrigated acreage or non-
irrigated acreage if both are located in the same Section, section 
equivalent, or ASCS Farm Serial Number.
    The irrigated acreage may not extend beyond the point at which your 
irrigation system can deliver the quantity of water needed to produce 
the yield on which your guarantee is based and you may not continue into 
non-irrigated acreage in the same rows or planting pattern. You must 
plant, cultivate, fertilize, or otherwise care for the irrigated acreage 
in accordance with recognized good irrigated farming practices.
    Basic units may not be divided into optional units on any basis 
(production practice, type, variety, planting period, etc.) other than 
as described under this section. If you do not comply fully with these 
provisions, we will combine all optional units which are not in 
compliance with these provisions into the basic unit from which they 
were formed. We may combine the optional units at any time we discover 
that you have failed to comply with these provisions. If failure to 
comply with these provisions is determined to be inadvertent, and all 
the optional units are combined, the premium paid for the purpose of 
electing optional units will be refunded to you.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Common Crop Insurance Policy (Sec. 457.8) you may select:
    (1) For grain sorghum and soybeans, only one price election for each 
crop in the county insured under this policy; and
    (2) For corn, only one price election for all the corn in the county 
insured as grain under this policy, and only one price election for all 
the corn in the county insured as silage under this policy. The price 
elections you choose for grain and silage must have the same percentage 
relationship to the maximum price election offered by us for grain and 
silage. For example, if you choose one hundred percent (100%) of the 
maximum grain price election and you also insure corn on a silage basis, 
you must choose one hundred percent (100%) of the maximum silage price 
election.
    (b) For corn only, if you harvest the crop in a manner other than 
the manner you reported (for example, you reported grain but

[[Page 399]]

harvested as silage) and you did not select a price election for the 
type harvested, we will assign a price election for the type harvested 
that bears the same percentage relationship to the maximum price 
election you selected for the type reported (for example, if you 
selected a grain price election in the amount of eighty percent (80%) of 
the maximum price election for grain and you did not select a silage 
price election, we will assign a silage price election in the amount of 
eighty percent (80%) of the maximum price election for silage specified 
in the Special Provisions if you harvest for silage). This assigned 
price election will be used only to determine the dollar value of 
production to count for indemnity purposes and will not be used to 
determine the amount of insurance or premium.

                           4. Contract Changes

    The contract change date is November 30 preceding the cancellation 
date (see the provisions of section 4 (Contract Changes) of the Common 
Crop Insurance Policy (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Common Crop Insurance 
Policy (Sec. 457.8), the cancellation and termination dates are:

------------------------------------------------------------------------
                                                    Cancellation and    
               State and county                     termination dates   
------------------------------------------------------------------------
(a) For corn and grain sorghum:                                         
  Val Verde, Edwards, Kerr, Kendall, Bexar,     January 15.             
   Wilson, Karnes, Goliad, Victoria, and                                
   Jackson Counties, Texas, and all Texas                               
   counties lying south thereof.                                        
  El Paso, Hudspeth, Culberson, Reeves,         February 15.            
   Loving, Winkler, Ector, Upton, Reagan,                               
   Sterling, Coke, Tom Green, Concho,                                   
   McCulloch, San Saba, Mills, Hamilton,                                
   Bosque, Johnson, Tarrant, Wise, Cooke                                
   Counties, Texas, and all Texas counties                              
   lying south and east thereof to and                                  
   including Terrell, Crockett, Sutton,                                 
   Kimble, Gillespie, Blanco, Comal,                                    
   Guadalupe, Gonzales, De Witt, Lavaca,                                
   Colorado, Wharton, and Matagorda Counties,                           
   Texas.                                                               
  Alabama; Arizona; Arkansas; California;       February 28.            
   Florida; Georgia; Louisiana; Mississippi;                            
   Nevada; North Carolina; and South Carolina.                          
  All other Texas counties and all other        March 15.               
   states.                                                              
(b) For soybeans:                                                       
  Jackson, Victoria, Goliad, Bee, Live Oak,     February 15.            
   McMullen, LaSalle, and Dimmit Counties,                              
   Texas and all Texas counties lying south                             
   thereof.                                                             
  Alabama; Arizona; Arkansas; California;       February 28.            
   Florida; Georgia; Louisiana; Mississippi;                            
   Nevada; North Carolina; and South Carolina;                          
   and El Paso, Hudspeth, Culberson, Reeves,                            
   Loving, Winkler, Ector, Upton, Reagan,                               
   Sterling, Coke, Tom Green, Concho,                                   
   McCulloch, San Saba, Mills, Hamilton,                                
   Bosque, Johnson, Tarrant, Wise, Cooke                                
   Counties, Texas, and all Texas counties                              
   lying south and east thereof to and                                  
   including Maverick, Zavala, Frio, Atascosa,                          
   Karnes, De Witt, Lavaca, Colorado, Wharton,                          
   and Matagorda Counties, Texas.                                       
  All other Texas counties and all other        March 15.               
   states.                                                              
------------------------------------------------------------------------

                             6. Insured Crop

    (a) In accordance with section 8 (Insured Crop) of the Common Crop 
Insurance Policy (Sec. 457.8), the crop insured will be each coarse 
grain crop you elect to insure for which premium rates are provided by 
the actuarial table:
    (1) In which you have a share;
    (2) That is adapted to the area based on days to maturity and is 
compatible with agronomic and weather conditions in the area; and
    (3) That is not (unless allowed by the Special Provisions or by 
written agreement):
    (i) Interplanted with another crop except as allowed in paragraph 
6.(b)(1); or
    (ii) Planted into an established grass or legume.
    (b) For corn only, in addition to the provisions of subsection 
6.(a), the corn crop insured will be all corn that is:
    (1) Planted for harvest either as grain or as silage (see subsection 
6.(c)). A mixture of corn and sorghum (grain or forage-type) will be 
insured as corn silage if the sorghum does not constitute more than 
twenty percent (20%) of the plants;
    (2) Yellow dent or white corn, including mixed yellow and white, 
waxy or high-lysine corn, and excluding:
    (i) High-amylose, high-oil, high-protein, flint, flour, Indian, or 
blue corn, or a variety genetically adapted to provide forage for 
wildlife or any other open pollinated corn, unless a written agreement 
allows insurance of such excluded crops.
    (ii) A variety of corn adapted for silage use only when the corn is 
reported for insurance as grain.
    (c) For corn only, if the actuarial table for the county provides a 
premium rate for:
    (1) Both grain and silage, all insurable acreage will be insured as 
the type or types reported by you on or before the acreage reporting 
date;
    (2) Grain but not silage, all insurable acreage will be insured as 
grain unless a written agreement allows insurance on all or a portion of 
the insurable acreage as silage; or
    (3) Silage but not grain, all insurable corn acreage will be insured 
as silage unless a

[[Page 400]]

written agreement allows insurance on all or a portion of the insurable 
acreage as grain.
    (d) For grain sorghum only, in addition to the provisions of 
subsection 6.(a), the grain sorghum crop insured will be all of the 
grain sorghum in the county:
    (1) That is planted for harvest as grain;
    (2) That is a combine-type hybrid grain sorghum (grown from hybrid 
seed); and
    (3) That is not a dual-purpose type of grain sorghum (a type used 
for both grain and forage), unless a written agreement allows insurance 
of such grain sorghum.
    (e) For soybeans only, in addition to the provisions of subsection 
6.(a), the soybean crop insured will be all of the soybeans in the 
county that are planted for harvest as beans.

                          7. Insurable Acreage

    In addition to the provisions of section 9 (Insurable Acreage) of 
the Common Crop Insurance Policy (Sec. 457.8), any acreage of the 
insured crop damaged before the final planting date, to the extent that 
the remaining stand will not produce at least ninety percent (90%) of 
the production guarantee, must be replanted unless we agree that 
replanting is not practical (see subsection 1.(m)).

                           8. Insurance Period

    In accordance with the provisions under section 11 (Insurance 
Period) of the Common Crop Insurance Policy (Sec. 457.8), the calendar 
date for the end of the insurance period is the date immediately 
following planting as follows:

(a) For corn insured as grain:                                          
  (1) Val Verde, Edwards, Kerr, Kendall,        September 30.           
   Bexar, Wilson, Karnes, Goliad, Victoria,                             
   and Jackson Counties, Texas, and all Texas                           
   counties lying south thereof.                                        
  (2) Clark, Cowlitz, Grays Harbor, Island,     October 31.             
   Jefferson, King, Kitsap, Lewis, Pierce,                              
   Skagit, Snohomish, Thurston, Wahkiakum, and                          
   Whatcom Counties, Washington.                                        
  (3) All other counties and states...........  December 10.            
(b) For corn insured as silage:                                         
  All states..................................  September 30.           
(c) For grain sorghum:                                                  
  (1) Val Verde, Edwards, Kerr, Kendall,        September 30.           
   Bexar, Wilson, Karnes, Goliad, Victoria,                             
   and Jackson Counties, Texas, and all Texas                           
   counties lying south thereof.                                        
  (2) All other Texas counties and all other    December 10.            
   states.                                                              
(d) For soybeans: All states..................  December 10.            
                                                                        

                            9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Common Crop Insurance Policy (Sec. 457.8), insurance is provided 
only against the following causes of loss which occur within the 
insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if applicable, due to an 
unavoidable cause of loss occurring within the insurance period.

                         10. Replanting Payments

    (a) In accordance with section 13 (Replanting Payment) of the Common 
Crop Insurance Policy (Sec. 457.8), replanting payments for coarse 
grains are allowed if the coarse grains are damaged by an insurable 
cause of loss to the extent that the remaining stand will not produce at 
least ninety percent (90%) of the production guarantee for the acreage 
and it is practical to replant (see subsection 1.(m)).
    (b) The maximum amount of the replanting payment per acre will be 
the lesser of twenty percent (20%) of the production guarantee or the 
number of bushels (tons for corn insured as silage) set out herein, 
multiplied by your price election multiplied by your insured share or 
the share determined under 10.(c), if applicable. The number of bushels 
or tons are 8 bushels for corn grain; 1 ton for corn silage; 7 bushels 
for grain sorghum; and 3 bushels for soybeans.
    (c) When more than one person insures the same crop on a share 
basis, a replanting payment based on the total shares insured by us may 
be made to the insured person who incurs the total cost of replanting. 
Payment will be made in this manner only if an agreement exists between 
the insured persons which:
    (1) Requires one person to incur the entire cost of replanting; or
    (2) Gives the right to all replanting payments to one person.
    (d) When the insured crop is replanted using a practice that is 
uninsurable as an original planting, the liability for the unit will be 
reduced by the amount of the replanting payment which is attributable to 
your share. The premium amount will not be reduced.

[[Page 401]]

                11. Duties in the Event of Damage or Loss

    (a) In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Common Crop Insurance Policy 
(Sec. 457.8), if you initially discover damage to any insured crop 
within 15 days of or during harvest, you must leave representative 
samples of the unharvested crop for our inspection. The samples must be 
at least 10 feet wide and extend the entire length of each field in the 
unit, and must not be harvested or destroyed until the earlier of our 
inspection or 15 days after harvest of the balance of the unit is 
completed.
    (b) For any corn unit that has separate dates for the end of the 
insurance period (grain and silage):
    (1) In lieu of paragraph 14.(a)(2) of the Common Crop Insurance 
Policy (Sec. 457.8), if damage occurs:
    (i) Before the earliest end of insurance period date (grain or 
silage), you must give us notice within 72 hours of your initial 
discovery of damage (but not later than 15 days after that earliest end 
of insurance period date); or
    (ii) If damage does not occur before the earliest end of insurance 
period date (grain or silage), but occurs before the latest end of 
insurance period date (grain or silage), you must give notice within 72 
hours of your initial discovery of damage (but not later than 15 days 
after that latest end of insurance period date).
    (2) In lieu of subsection 14.(c) of the Common Crop Insurance Policy 
(Sec. 457.8), in addition to complying with all other notice 
requirements, you must submit a claim for indemnity declaring the amount 
of your loss not later than 60 days after the latest date for the end of 
insurance period for the unit. This claim must include all the 
information we require to settle the claim.

                         12. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit:
    (1) For grain sorghum and soybeans by:
    (i) Multiplying the insured acreage by the production guarantee;
    (ii) Subtracting from this the total production to count;
    (iii) Multiplying the remainder by your price election; and
    (iv) Multiplying this result by your share.
    (2) For corn by:
    (i) Multiplying the insured acreage of each type (grain/silage) by 
the production guarantee for the applicable type;
    (ii) Multiplying each result by the price election for the 
applicable type;
    (iii) Adding these values;
    (iv) Multiplying the production to count of each type (see 
subsection 12.(d)) by the price election for that type (see the 
provisions under section 3 (Insurance Guarantees, Coverage Levels, and 
Prices for Determining Indemnities));
    (v) Adding these dollar values;
    (vi) Subtracting the result of step (v) from the result of step 
(iii); and
    (vii) Multiplying the result by your share.
    (c) The total production in bushels (tons for corn silage) (see 
subsection 12.(d)) to count from all insurable acreage on the unit will 
include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes; or
    (D) For which you fail to provide records of production that are 
acceptable to us;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production (mature unharvested production may be 
adjusted for quality deficiencies and excess moisture in accordance with 
subsection 12.(e)); and
    (iv) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop we may give 
you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us (The amount of production to count 
for such acreage will be based on the harvested production or appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provide sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and

[[Page 402]]

    (2) All harvested production from the insurable acreage.
    (d) The production to count for corn will be in bushels for grain 
and in tons for silage as follows:
    (1) For harvested acreage, according to the method of harvest; and
    (2) For unharvested acreage, according to the information contained 
on your acreage report;

except as otherwise provided in paragraph 12.(c)(1).
    (e) Mature coarse grain production (excluding corn insured or 
harvested as silage) may be adjusted for excess moisture and quality 
deficiencies. If moisture adjustment is applicable it will be made prior 
to any adjustment for quality. Corn insured or harvested as silage will 
be adjusted for excess moisture and quality only as specified in 
subsection 12.(f).
    (1) Production will be reduced by 0.12 percent for each 0.1 
percentage point of moisture in excess of:
    (i) Fifteen percent (15%) for corn (If moisture exceeds 30 percent 
(30%), production will be reduced 0.2 percent for each 0.1 percentage 
point above 30 percent (30%));
    (ii) Fourteen percent (14%) for grain sorghum; and
    (iii) Thirteen percent (13%) for soybeans.
    We may obtain samples of the production to determine the moisture 
content.
    (2) Production will be eligible for quality adjustment if:
    (i) Deficiencies in quality, in accordance with the Official United 
States Standards for Grain, result in:
    (A) Corn not meeting the grade requirements for U.S. No. 4 (grades 
U.S. No. 5 or worse) because of test weight or kernel damage (excluding 
heat damage) or having a musty, sour, or commercially objectionable 
foreign odor;
    (B) Grain sorghum not meeting the grade requirements for U.S. No. 4 
(grades U.S. Sample grade) because of test weight or kernel damage 
(excluding heat damage) or having a musty, sour, or commercially 
objectionable foreign odor (except smut odor), or meets the special 
grade requirements for smutty grain sorghum; or
    (C) Soybeans not meeting the grade requirements for U.S. No. 4 
(grades U.S. Sample grade) because of test weight or kernel damage 
(excluding heat damage) or having a musty, sour, or commercially 
objectionable foreign odor (except garlic odor), or which meet the 
special grade requirements for garlicky soybeans; or
    (ii) Substances or conditions are present that are identified by the 
Food and Drug Administration or other public health organizations of the 
United States as being injurious to human or animal health.
    (3) Quality will be a factor in determining your loss only if:
    (i) The deficiencies, substances, or conditions resulted from a 
cause of loss against which insurance is provided under these crop 
provisions;
    (ii) All determinations of these deficiencies, substances, or 
conditions are made using samples of the production obtained by us or by 
a disinterested third party approved by us; and
    (iii) The samples are analyzed by a grader licensed under the 
authority of the United States Grain Standards Act or the United States 
Warehouse Act with regard to deficiencies in quality, or by a laboratory 
approved by us with regard to substances or conditions injurious to 
human or animal health. (Test weight for quality adjustment purposes may 
be determined by our loss adjuster.)
    (4) Coarse grain production that is eligible for quality adjustment, 
as specified in paragraphs 12.(e) (2) and (3), will be reduced by the 
quality adjustment factor contained in the Special Provisions.
    (f) For corn insured or harvested as silage:
    (1) Whenever our appraisal of grain content is less than 4.5 bushels 
of grain per ton of silage, the silage production will be reduced by 1 
percentage point for each 0.1(1/10) of a bushel less than 4.5 bushels 
per ton (If we cannot make a grain appraisal before harvest and you do 
not leave a representative unharvested sample, in accordance with the 
policy no reduction for grain-deficient silage will be made.); and
    (2) If the normal silage harvesting period has ended, or for any 
acreage harvested as silage or appraised as silage after September 30 of 
the crop year we may increase the silage production to count to 65 
percent (65%) moisture equivalent to reflect the normal moisture content 
of silage harvested during the normal silage harvesting period.
    (g) Any production harvested from plants growing in the insured crop 
may be counted as production of the insured crop on a weight basis.

                13. Late Planting and Prevented Planting

    (a) In lieu of paragraph 8.(b)(2) and subsection 1.(aa) of the 
Common Crop Insurance Policy (Sec. 457.8), insurance will be provided 
for acreage planted to the insured crop during the late planting period 
(see subsection 13.(c)), and acreage you were prevented from planting 
(see subsection 13.(d)). These coverages provide reduced production 
guarantees. The reduced guarantees will be combined with the production 
guarantee for timely planted acreage for each unit. The premium amount 
for late planted acreage and eligible prevented planting acreage will be 
the same as that for timely planted acreage. If the amount of premium 
you are required to pay (gross premium less our subsidy) for late 
planted acreage or prevented planting acreage exceeds the liability on

[[Page 403]]

such acreage, coverage for those acres will not be provided (no premium 
will be due and no indemnity will be be paid for such acreage). (For 
example, assume you insure one unit in which you have a 100 percent 
(100%) share. The unit consists of 150 acres, of which 50 acres were 
planted timely, 50 acres were planted 7 days after the final planting 
date (late planted), and 50 acres are unplanted and eligible for 
prevented planting coverage. To calculate the amount of any indemnity 
which may be due to you, the production guarantee for the unit will be 
computed as follows:
    (1) For timely planted acreage, multiply the per acre production 
guarantee for timely planted acreage by the 50 acres planted timely;
    (2) For late planted acreage, multiply the per acre production 
guarantee for timely planted acreage by 93 percent (0.93) and multiply 
the result by the 50 acres planted late; and
    (3) For prevented planting acreage, multiply the per acre production 
guarantee for timely planted acreage by:
    (i) Fifty percent (0.50) and multiply the result by the 50 acres you 
were prevented from planting, if the acreage is eligible for prevented 
planting coverage, and if the acreage is left idle for the crop year, or 
if a cover crop is planted not for harvest. Prevented planting 
compensation hereunder will not be denied because the cover crop is 
hayed or grazed; or
    (ii) Twenty-five percent (0.25) and multiply the result by the 50 
acres you were prevented from planting, if the acreage is eligible for 
prevented planting coverage, and if you elect to plant a substitute crop 
for harvest after the 10th day following the final planting date for the 
insured crop. (This subparagraph (ii) is not applicable, and prevented 
planting coverage is not available hereunder, if you elected the 
Catastrophic Risk Protection Endorsement or you elected to exclude 
prevented planting coverage when a substitute crop is planted (see 
subsection 13(d)(1)(iii)).)
    The total of the three calculations will be the production guarantee 
for the unit. Your premium will be based on the result of multiplying 
the per acre production guarantee for timely planted acreage by the 150 
acres in the unit.
    (b) If you were prevented from planting, you must provide written 
notice to us not later than the acreage reporting date.
    (c) Late Planting
    (1) For acreage planted to the insured crop after the final planting 
date but on or before 25 days after the final planting date, the 
production guarantee for each acre will be reduced for each day planted 
after the final planting date by:
    (i) One percent (.01) for the first through the tenth day; and
    (ii) Two percent (.02) for the eleventh through the twenty-fifth 
day.
    (2) In addition to the requirements of section 6 (Report of Acreage) 
of the Common Crop Insurance Policy (Sec. 457.8), you must report the 
dates the acreage is planted within the late planting period.
    (3) If planting of the insured crop continues after the final 
planting data, or you are prevented from planting during the late 
planting period, the acreage reporting date will be the later of:
    (i) The acreage reporting date contained in the Special Provisions 
for the insured crop; or
    (ii) Five (5) days after the end of the late planting period.
    (d) Prevented Planting (Including Planting After the Late Planting 
Period).
    (1) If you were prevented from planting the insured crop (see 
subsection 1(n)), you may elect:
    (i) To plant the insured crop during the late planting period. The 
production guarantee for such acreage will be determined in accordance 
with paragraph 13(c)(1);
    (ii) Not to plant this acreage to any crop except a cover crop not 
for harvest. You may also elect to plant the insured crop after the late 
planting period. In either case, the production guarantee for such 
acreage will be fifty percent (50%) of the production guarantee for 
timely planted acres. For example, if your production guarantee for 
timely planted acreage is 30 bushels per acre, your prevented planting 
production guarantee would be 15 bushels per acre (30 bushels multiplied 
by 0.50). If you elect to plant the insured crop after the late planting 
period, production to count for such acreage will be determined in 
accordance with subsections 12(c) through (g); or
    (iii) Not to plant the intended crop but plant a substitute crop for 
harvest, in which case:
    (A) No prevented planting production guarantee will be provided for 
such acreage if the substitute crop is planted on or before the tenth 
day following the final planting date for the insured crop; or
    (B) A production guarantee equal to twenty-five percent (25%) of the 
production guarantee for timely planted acres will be provided for such 
acreage, if the substitute crop is planted after the tenth day following 
the final planting date for the insured crop. If you elected the 
Catastrophic Risk Protection Endorsement or excluded this coverage, and 
plant a substitute crop, no prevented planting coverage will be 
provided. For example, if your production guarantee for timely planted 
acreage is 30 bushels per acre, your prevented planting production 
guarantee would be 7.5 bushels per acre (30 bushels multiplied by 0.25). 
You may elect to exclude

[[Page 404]]

prevented planting coverage when a substitute crop is planted for 
harvest and receive a reduction in the applicable premium rate. If you 
wish to exclude this coverage, you must so indicate, on or before the 
sales closing date, on your application or on a form approved by us. 
Your election to exclude this coverage will remain in effect from year 
to year unless you notify us in writing on our form by the applicable 
sales closing date for the crop year for which you wish to include this 
coverage. All acreage of the crop insured under this policy will be 
subject to this exclusion.
    (2) Proof may be required that you had the inputs available to plant 
and produce the intended crop with the expectation of at least producing 
the production guarantee.
    (3) In addition to the provisions of section 11 (Insurance Period) 
of the Common Crop Insurance Policy (Sec. 457.8), the insurance period 
for prevented planting coverage begins:
    (i) On the sales closing date contained in the Special Provisions 
for the insured crop in the county for the crop year the application for 
insurance is accepted; or
    (ii) For any subsequent crop year, on the sales closing date for the 
insured crop in the county for the previous crop year, provided 
continuous coverage has been in effect since that date. For example: If 
you make application and purchase insurance for corn for the 1996 crop 
year, prevented planting coverage will begin on the 1996 sales closing 
date for corn in the county. If the corn coverage remains in effect for 
the 1997 crop year (is not terminated or canceled during or after the 
1996 crop year, except the policy may have been canceled to transfer the 
policy to a different insurance provider, if there is no lapse in 
coverage), prevented planting coverage for the 1997 crop year began on 
the 1996 sales closing date.
    (4) The acreage to which prevented planting coverage applies will 
not exceed the total eligible acreage on all Farm Service Agency (FSA) 
Farm Serial Numbers in which you have a share, adjusted for any 
reconstitution that may have occurred on or before the sales closing 
date. Eligible acreage for each FSA Farm Serial Number is determined as 
follows:
    (i) If you participate in any program administered by the United 
States Department of Agriculture that limits the number of acres that 
may be planted for the crop year, the acreage eligible for prevented 
planting coverage will not exceed the total acreage permitted to be 
planted to the insured crop.
    (ii) If you do not participate in any program administered by the 
United States Department of Agriculture that limits the number of acres 
that may be planted, and unless we agree in writing on or before the 
sales closing date, eligible acreage will not exceed the greater of:
    (A) The FSA base acreage for the insured crop, including acres that 
could be flexed from another crop, if applicable;
    (B) The number of acres planted to the insured crop on the FSA Farm 
Serial Number during the previous crop year; or
    (C) One hundred percent (100%) of the simple average of the number 
of acres planted to the insured crop during the crop years that you 
certified to determine your yield.
    (iii) Acreage intended to be planted under an irrigated practice 
will be limited to the number of acres for which you had adequate 
irrigation facilities prior to the insured cause of loss which prevented 
you from planting.
    (iv) Prevented planting coverage will not be provided for any 
acreage:
    (A) That does not constitute at least 20 acres or 20 percent (20%) 
of the acreage in the unit, whichever is less (Acreage that is less than 
20 acres or 20 percent of the acreage in the unit will be presumed to 
have been intended to be planted to the insured crop planted in the 
unit, unless you can show that you had the inputs available before the 
final planting date to plant and produce another insured crop on the 
acreage);
    (B) For which the actuarial table does not designate a premium rate 
unless a written agreement designates such premium rate;
    (C) Used for conservation purposes or intended to be left unplanted 
under any program administered by the United States Department of 
Agriculture;
    (D) On which another crop is prevented from being planted, if you 
have already received a prevented planting indemnity, guarantee or 
amount of insurance for the same acreage in the same crop year, unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (E) On which the insured crop is prevented from being planted, if 
any other crop is planted and fails, or is planted and harvested, hayed 
or grazed on the same acreage in the same crop year, (other than a cover 
crop as specified in paragraph (a)(3)(i) of this section, or a 
substitute crop allowed in paragraph (a)(3)(ii) of this section), unless 
you provide adequate records of acreage and production showing that the 
acreage has a history of double-cropping in each of the last four years;
    (F) When coverage is provided under the Catastrophic Risk Protection 
Endorsement if you plant another crop for harvest on any acreage you 
were prevented from planting in the same crop year, even if you have a 
history of double cropping. If you have a Catastrophic Risk Protection 
Endorsement and receive a prevented planting indemnity, guarantee, or 
amount of insurance for a crop and are prevented from planting another

[[Page 405]]

crop on the same acreage, you may only receive the prevented planting 
indemnity, guarantee, or amount of insurance for the crop on which the 
prevented planting indemnity, guarantee, or amount of insurance is 
received; or
    (G) For which planting history or conservation plans indicate that 
the acreage would have remained fallow for crop rotation purposes.
    (v) For the purpose of determining eligible acreage for prevented 
planting coverage, acreage for all units will be combined and be reduced 
by the number of acres of the insured crop timely planted and late 
planted. For example, assume you have 100 acres eligible for prevented 
planting coverage in which you have a 100 percent (100%) share. The 
acreage is located in a single FSA Farm Serial Number which you insure 
as two separate optional units consisting of 50 acres each. If you 
planted 60 acres of the insured crop on one optional unit and 40 acres 
of the insured crop on the second optional unit, your prevented planting 
eligible acreage would be reduced to zero (i.e.,100 acres eligible for 
prevented planting coverage minus 100 acres planted equals zero).
    (5) In accordance with the provisions of section 6 (Report of 
Acreage) of the Common Crop Insurance Policy (Sec. 457.8), you must 
report by unit any insurable acreage that you were prevented from 
planting. This report must be submitted on or before the acreage 
reporting date. For the purpose of determining acreage eligible for a 
prevented planting production guarantee the total amount of prevented 
planting and planted acres cannot exceed the maximum number of acres 
eligible for prevented planting coverage. Any acreage you report in 
excess of the number of acres eligible for prevented planting coverage, 
or that exceeds the number of eligible acres physically located in a 
unit, will be deleted from your acreage report.

[59 FR 49161, Sept. 27, 1994; 59 FR 60063, Nov. 22, 1994, as amended at 
60 FR 62728, 62729, Dec. 7, 1995]



Sec. 457.114  Nursery crop insurance provisions.

    The Nursery Crop Insurance Provisions for the 1996 and succeeding 
crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                         Nursery Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions, the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    (a) Amount of insurance--The result of multiplying the highest 
monthly market value reported on the nursery plant inventory summary 
(including inventory reported by you and accepted by us on a revised 
nursery plant inventory summary) by .9, multiplied by the percentage for 
the coverage level you elect.
    (b) Brownout--A reduction in electric power that affects the unit.
    (c) Crop year--The 12 month period beginning October 1 and extending 
through September 30 of the next calendar year, designated by the year 
in which it ends. (The 1996 crop year begins October 1, 1995, and ends 
September 30, 1996).
    (d) Crop year loss deductible--The value calculated by multiplying 
the highest monthly market value reported on the nursery plant inventory 
summary by .9 and subtracting from this product the amount of insurance.
    (e) Field market value A--Ninety percent (90%) of the wholesale 
market value for the insured plants in the unit immediately prior to the 
occurrence of the loss.
    (f) Field market value B--Ninety percent (90%) of the wholesale 
market value remaining for the insurable plants in the unit immediately 
following the occurrence of the loss as determined by our appraisal 
conducted as soon as reasonably possible after the loss is reported.
    (g) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to maintain the amount of insurance on the nursery plant 
inventory.
    (h) Largest dimension--The distance measured at the top of the 
standard nursery container from one side directly across to the opposite 
at the widest point.
    (i) Monthly loss deductible--The smaller of: (1) The highest monthly 
market value reported on the nursery plant inventory summary multiplied 
by .9; or (2) field market value A; multiplied by the number derived by 
subtracting the coverage level percent from one hundred percent (100%), 
not to exceed the crop year loss deductible.
    (j) Monthly market value--The dollar amount determined by 
multiplying the quantity of each insurable plant by its wholesale market 
value for that month, less the maximum discount (stated in dollar terms) 
granted to any buyer, and totalling the resulting values for all 
insurable plants in the unit.
    (k) Nursery--A business enterprise that produces ornamental plants 
in standard nursery containers for the wholesale market.
    (l) Nursery eligible plant listing--A listing contained in the 
Actuarial Table that specifies the plants eligible for insurance and any 
mandatory or recommended storage required

[[Page 406]]

for such plants in each hardiness zone defined by the United States 
Department of Agriculture.
    (m) Nursery plant inventory summary--A report that specifies the 
numbers, growing locations, and wholesale prices of plants included in 
the nursery inventory.
    (n) Standard nursery containers--Rigid containers not less than 
three (3) inches across the largest dimension at the top of the 
container, and which are appropriate in size and with proper drainage 
holes for the plant contained. Grow bags, trays, cellpacks, and burlap 
are not standard nursery containers under these crop provisions.
    (o) Stock plants--Plants used for reproduction, for growing 
cuttings, for air layering or for propagating.
    (p) Wholesale market value--The total dollar valuation of the 
insurable plants actually contained within the unit at any time. The 
values used will be based on your wholesale price list if properly 
supported by your records, less the maximum discount (stated in dollar 
terms) granted to any buyer.
    (q) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing no later than the sales closing date and is valid for 
one year only. If not specifically renewed the following year, 
continuous insurance will be in accordance with the printed policy. All 
variable terms including, but not limited to, plant type and premium 
rate must be contained in the written agreement. Notwithstanding the 
sales closing date restriction contained herein, in specific instances, 
a written agreement may be applied for after the sales closing date and 
approved if, after a physical inspection of the nursery plant inventory, 
there is a determination that the inventory has the expectancy of 
meeting the amount of insurance. All applications for written agreements 
as submitted by the insured must contain all variable terms of the 
contract between the company and the insured that will be in effect if 
the written agreement is disapproved. A written agreement will not be 
approved for other than standard nursery containers.

                            2. Unit Division

    In lieu of the definition of ``unit'' contained in section 1 
(Definitions) of the Basic Provisions (Sec. 457.8), a unit consists of 
all growing locations in the county within a five mile radius of the 
named insured locations designated on your nursery plant inventory 
summary. Any growing location more than five miles from any other 
growing location, but within the county, may be designated as a separate 
basic unit or be included in the closest unit listed on your nursery 
plant inventory summary.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    The production reporting requirements contained in section 3 
(Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities) of the Basic Provisions (Sec. 457.8) are not applicable to 
the Nursery Crop Provisions.

                           4. Contract Changes

    The contract change date is June 30 preceding the crop year (see the 
provisions of section 4 (Contract Changes) of the Basic Provisions 
(Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with section 2 ( Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation and 
termination dates are September 30 preceding the crop year.

                   6. Nursery Plant Inventory Summary

    (a) Section 6 (Report of Acreage) of the Basic Provisions 
(Sec. 457.8) is not applicable to the Nursery Crop Provisions.
    (b) You must submit a nursery plant inventory summary to us on or 
before September 30 preceding the crop year.
    (c) The nursery plant inventory summary is a projection of the 
expected inventory for the following 12 months. This summary must 
include, by unit and by month for each type of plant in the inventory, 
the:
    (1) Container sizes, as measured at the largest dimension at the top 
of the container;
    (2) Number of plants;
    (3) Wholesale price for each month of the crop year; and
    (4) Your share.
    If your inventory usually changes within a specific month, report 
the largest inventory that you expect to have for that month.
    (d) Your annual nursery plant inventory summary will be used to 
determine your premium and the amount of insurance for each unit. If you 
do not submit the summary by the reporting date, we may elect to 
determine the nursery plant inventory for each unit or we may deny 
liability on any unit. Errors in reporting units may be corrected by us 
at the time of loss adjustment.
    (e) Your wholesale price list may be examined to determine whether 
the prices listed are reasonable. If the prices are determined to be 
unreasonable, the previous acceptable wholesale price list will be used 
or we may establish the wholesale price for each type of plant.
    (f) With our consent, you may revise your reported nursery plant 
inventory summary to correct or change the value of the insurable 
inventory if the amount of the revision is at least ten percent (10%) of 
the highest

[[Page 407]]

monthly market value reported on the nursery plant inventory summary or 
$25,000, whichever is smaller, or if a new plant species is being added 
that was not originally reported on your nursery plant inventory summary 
or was approved by written agreement. If you wish to revise the nursery 
plant inventory summary, you must notify us in writing at least 14 days 
before a change in inventory value. We must inspect and accept the 
nursery before insurance attaches on any proposed increase in inventory 
if:
    (1) The storage facilities have changed in any way since our 
previous inspection; or
    (2) The revision includes plants that have specific over-wintering 
storage requirements and that were not previously reported on your 
nursery plant inventory summary.
    (g) You may not revise your nursery plant inventory summary after 
the sales closing date to add plants not listed on the Nursery Eligible 
Plant Listing unless a request for a written agreement to add such 
plants has been submitted by the sales closing date.
    (h) Insurable plants that are not reported on your nursery plant 
inventory summary will not be insured, but the value of such plants 
after a loss will be included as production to count. Such unreported 
inventory may reduce the amount of any indemnity payable to you.
    (i) You must designate separately any plant inventory that is not 
insurable.

                            7. Annual Premium

    We will determine your premium as follows:
    (a) The annual premium for each unit will be calculated by:
    (1) Determing the total value of each plant type and container size 
designated on your nursery plant inventory summary for each month by 
multiplying the number of plants by the price for that type and 
container size shown on your accepted wholesale price list for that 
month, less the maximum discount (stated in dollar terms) granted to any 
buyer, and totalling the resulting values for each separate 
classification shown on the actuarial table;
    (2) Adding the total values of all plant types and container sizes 
(determined in (1) above) for each month separately to determine the 
monthly market values. Then compare the resulting twelve (12) monthly 
market values to determine the highest monthly market value for the crop 
year;
    (3) Taking the total value of each plant type and container size 
obtained in (1) above for the month having the highest monthly market 
value for the crop year (determined in (2) above) for each 
classification specified in the actuarial table and multiplying these 
values by .9, then multiplying the results by the percentage coverage 
level you have elected;
    (4) Multiplying each product obtained in (3) above by the 
appropriate premium rate listed on the actuarial table;
    (5) Adding the products obtained in (4) above; and
    (6) Multiplying the total obtained in (5) above by your share.
    (b) The annual premium will be earned in full when insurance 
attaches. It is due and payable as follows:
    (1) Forty percent (40%) on the later of September 30 preceding each 
crop year or the date we accept the inventory for insurance;
    (2) Thirty percent (30%) on January 1 of the crop year; and
    (3) Thirty percent (30%) on April 1 of the crop year.
    (c) Additional premium earned from an increase in the nursery plant 
inventory summary is due and payable when the revised nursery plant 
inventory summary is approved by us.
    (d) Premium will not be reduced due to a decrease in the nursery 
plant inventory summary, unless such decrease results from the deletion 
of uninsurable inventory from the summary that was erroneously reported 
as insurable.

                            8. Insured Plants

    In lieu of the provisions of section 8 (Insured Crop) and section 9 
(Insurable Acreage) of the Basic Provisions (Sec. 457.8), the insured 
nursery plant inventory will be all nursery plants in the county 
reported by you or determined by us for which an application is 
accepted, a premium rate is provided by the actuarial table, and that:
    (a) Are grown under an irrigated practice for which you have 
adequate facilities and water at the time coverage begins in order to 
carry out a good irrigation practice;
    (b) Are classified as woody, herbaceous, or foliage landscape 
plants;
    (c) Do not include plants that produce edible berries, fruits, or 
nuts;
    (d) Are grown in standard nursery containers;
    (e) Are grown in an appropriate growing medium;
    (f) Are inspected by us and determined to be acceptable;
    (g) Are listed on the Nursery Eligible Plant Listing unless a 
written agreement provides otherwise;
    (h) Are not stock plants;
    (i) Are grown in accordance with the production practices for which 
premium rates have been established; and
    (j) Meet the ``mandatory'' or ``recommended'' storage requirements, 
unless you have applied for and received the Frost/ Freeze, and Cold 
Damage Exclusion Option for those nursery plants.

[[Page 408]]

                           9. Insurance Period

    In lieu of the provisions of section 11 (Insurance Period) of the 
Basic Provisions (Sec. 457.8), coverage begins on each unit or part of a 
unit the later of October 1 or the date we accept the inventory for 
insurance, provided you have complied with the terms of paragraph 
7.(b)(1). Coverage will not attach for plant inventory added due to a 
revised nursery plant inventory summary until any additional premium is 
paid in full. Insurance ends for each unit at the earliest of:
    (a) The date all plant inventory within the unit is sold or 
otherwise removed unless that inventory is replaced and additional 
earned premium is paid (If a portion of the plants are sold or otherwise 
removed from inventory, and are not replaced, insurance only ends on 
that part of the unit.);
    (b) The date of final adjustment of a loss on the unit when the 
total indemnities paid for the unit equal the amount of insurance for 
that unit; or
    (c) September 30 of the crop year.

                           10. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided for 
unavoidable damage caused only by the following causes of loss which 
occur within the insurance period:
    (1) Adverse weather conditions;
    (2) Fire, except as specified in (b)(4);
    (3) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (4) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (5) Wildlife;
    (6) Earthquake;
    (7) Volcanic eruption;
    (8) Failure of the irrigation water supply, due to an unavoidable 
cause of loss occurring within the insurance period; or
    (9) Frost or freeze if there is a failure or breakdown of frost/
freeze protection equipment or facilities and the failure or breakdown 
is directly caused by an insurable cause of loss, provided the insured 
nursery plants are damaged by freezing temperatures within 72 hours 
after the failure of such equipment or facilities and you establish that 
repair or replacement was not possible between the time of failure or 
breakdown and the time the freezing temperatures occurred.
    (b) In addition to the causes of loss excluded in section 12 (Causes 
of Loss) of the Basic Provisions (Sec. 457.8), we do not insure against 
any loss caused by:
    (1) Brownout;
    (2) Failure of the power supply unless such failure is due to an 
insurable cause of loss;
    (3) The inability to market the nursery plants as a direct result of 
quarantine, boycott, or refusal of a buyer to accept production;
    (4) Fire, where weeds and other forms of undergrowth in the vicinity 
of the building and on your property have not been controlled; or
    (5) Collapse or failure of buildings or structures.

                11. Duties in the Event of Damage or Loss

    In addition to your duties contained under section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), you must:
    (a) Obtain our written consent prior to:
    (1) Destroying, selling or otherwise disposing of any plant 
inventory that is damaged; or
    (2) Changing or discontinuing your normal growing practices with 
respect to care and maintenance of the insured plant inventory.
    (b) Upon our request, provide complete copies of your nursery plant 
inventory wholesale price list for the 12 month period immediately 
preceding the loss and your marketing records including plant shipping 
invoices for the same period.
    (c) Submit a claim for indemnity to us on our form, not later than 
60 days after the earliest of:
    (1) The date of your loss; or
    (2) The end of the insurance period.

                         12. Settlement of Claim

    (a) The indemnity will be the amount calculated by us for each unit 
as follows:
    (1) Subtracting field market value B from the lesser of:
    (i) Field market value A; or
    (ii) The highest monthly market value for the unit reported on the 
nursery plant inventory summary multiplied by .9;
    (2) Subtracting the monthly loss deductible (not to exceed the 
remaining crop year loss deductible) from the product obtained in (1) 
above; and
    (3) Multiplying the result by your share.
    (b) Individual insured losses occurring on the same unit during the 
crop year may be accumulated if each loss is reported and valued by us 
to satisfy the crop year loss deductible. Paragraph 12.(a)(2) will not 
apply to any subsequent individual loss determinations when the total 
amount of accumulated monthly loss deductibles is equal to or greater 
than the crop year loss deductible. Total indemnities for a unit will 
not exceed the amount of insurance for the unit.
    (c) The value of any insured plant inventory may be determined on 
the basis of our appraisals conducted after the end of the insurance 
period.

[60 FR 31378, June 15, 1995]

[[Page 409]]



Sec. 457.115  Nursery frost, freeze, and cold damage exclusion option.

    This is not a continuous option. Application for this option must be 
made on or before the sales closing date for each crop year this Option 
is to be in effect (see exception in item 2 below).

Insured's Name__________________________________________________________

Address_________________________________________________________________

Contract Number_________________________________________________________

Identification Number___________________________________________________

SSN/EIN_________________________________________________________________

Tax I.D.________________________________________________________________

Crop Year_______________________________________________________________

Unit Number_____________________________________________________________

Hardiness Zone__________________________________________________________

    For the crop year designated above, the Nursery Crop Provisions 
(Sec. 457.114) are amended in accordance with the following terms and 
conditions:
    1. You must have the Common Crop Insurance Policy Basic Provisions 
and Nursery Crop Provisions in force.
    2. This option must be submitted to us on or before the final date 
for accepting applications for the crop year in which you wish to insure 
your nursery plant inventory under this option. If the provisions of 
paragraph 6.(f)(2) of the Nursery Crop Provisions apply, we may accept 
this option after the sales closing date, or we may allow additional 
plants to be added to this option after such date.
    3. Executing this option does not reduce the premium rate for 
nursery crop insurance.
    4. All provisions of the Basic Provisions (Sec. 457.8) and Nursery 
Crop Provisions (Sec. 457.114) not in conflict with this option are 
applicable.
    5. Upon execution of this option, the following plant varieties will 
not have frost, freeze, or cold damage coverage on this unit because the 
mandatory (Risk Group A) or recommended (Risk Group B) over-wintering 
requirements will not be met.

------------------------------------------------------------------------
                                                        Over-wintering  
          Scientific name              Common name    requirements to be
                                                           excluded     
------------------------------------------------------------------------
                                     ...............  ..................
                                     ...............  ..................
                                     ...............  ..................
                                     ...............  ..................
                                     ...............  ..................
------------------------------------------------------------------------

Insured's Signature

_______________________________________________________________________

Date____________________________________________________________________

Insurance Company Representative's Signature and Code Number

_______________________________________________________________________

Date____________________________________________________________________


[60 FR 31380, June 15, 1995]



Sec. 457.116  Sugarcane crop insurance provisions.

    The Sugarcane Crop Insurance Provisions for the 1996 and succeeding 
crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                        Sugarcane Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions, the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    (a) Crop year--The period within which the insured sugarcane is 
normally grown and designated by the calendar year in which the harvest 
of sugarcane normally begins in the county.
    (b) CFSA--Consolidated Farm Service Agency (previously the 
Agricultural Stabilization and Conservation Service).
    (c) Good farming practices--The cultural practices generally in use 
in the county for the insured crop to make normal progress toward 
maturity and produce at least the yield used to determine the production 
guarantee and are those recognized by the Cooperative Extension Service 
as compatible with agronomic and weather conditions in the area.
    (d) Harvest--Cutting and removing the mature sugarcane from the 
field.
    (e) Interplanted--Acreage on which two or more crops are planted in 
a manner that does not permit separate agronomic maintenance or harvest 
of the insured crop.
    (f) Irrigated practice--A method of producing a crop by which water 
is artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.
    (g) Local market price--The price per pound for raw sugar offered by 
buyers in the area in which you normally market the sugarcane.
    (h) Plant cane--The insured crop which grows from seed planted for 
the crop year.
    (i) Production guarantee--The number of pounds determined by 
multiplying the approved yield per acre by the coverage level percentage 
you elect.
    (j) Stubble cane--The insured crop which grows from the stubble of 
sugarcane that was harvested the previous crop year.

[[Page 410]]

    (k) Sugarcane--means either plant cane or stubble cane.
    (l) Written agreement--Designated terms of this policy may be 
altered by written agreement. Each agreement must be applied for by the 
insured in writing no later than the sales closing date and is valid for 
one year only. If not specifically renewed the following year, 
continuous insurance will be in accordance with the printed policy. All 
variable terms including, but not limited to, crop variety, guarantee, 
premium rate and price election must be contained in the written 
agreement. Notwithstanding the sales closing date restrictions contained 
herein, in specific instances a written agreement may be applied for 
after the sales closing date, and approved if, after physical inspection 
of the acreage, it is determined that the crop has the expectancy of 
making at least the guaranteed yield. All applications for written 
agreements as submitted by the insured must contain all variable terms 
of the contract between the company and the insured that will be in 
effect if the written agreement is disapproved.

                            2. Unit Division

    Unless limited by the Special Provisions, a unit as defined in 
subsection 1.(tt) of the Basic Provisions (Sec. 457.8), may be divided 
into optional units if, for each optional unit you meet all the 
conditions of this section or if a written agreement to such division 
exists. Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, variety, and 
planting period other than as described under this section. If you do 
not comply fully with these provisions, we will combine all optional 
units which are not in compliance with these provisions into the basic 
unit from which they were formed. We may combine the optional units at 
any time we discover that you have failed to comply with these 
provisions. If failure to comply with these provisions is determined to 
be inadvertent, and the optional units are combined, that portion of the 
premium paid for the purpose of electing optional units will be refunded 
to you pro rata for the units combined. All optional units must be 
reflected on the acreage report for each crop year.
    (a) You must have records, which can be independently verified, of 
planted acreage and production for each optional unit for at least the 
last crop year used to determine your production guarantee.
    (b) You must plant the crop in a manner that results in a clear and 
discernible break in the planting pattern at the boundaries of each 
optional unit.
    (c) You must have records of measurement of stored or marketed 
production from each optional unit maintained in such a manner that 
permits us to verify the production from each optional unit or the 
production from each unit must be kept separate until after loss 
adjustment under the policy is completed.
    (d) Each optional unit must meet one or more of the following 
criteria as applicable:
    (1) Optional Units by Section, Section Equivalent, or Consolidated 
Farm Service Agency (``CFSA'') Farm Serial Number: Optional units may be 
established if each optional unit is located in a separate legally 
identified Section. In the absence of Sections, we may consider parcels 
of land legally identified by other methods of measure including, but 
not limited to: Spanish grants, railroad surveys, leagues, labors, or 
Virginia Military Lands as the equivalent of Sections for unit purposes. 
In areas which have not been surveyed using the systems identified 
above, or another system approved by us, or in areas where such systems 
exist but boundaries are not readily discernible, each optional unit 
must be located in a separate farm identified by a single CFSA Farm 
Serial Number.
    (2) Optional Units on Acreage Including Both Irrigated and Non-
Irrigated Practices: In addition to or instead of establishing optional 
units by Section, section equivalent or CFSA Farm Serial Number, 
optional units may be based on irrigated acreage or non-irrigated 
acreage if both are located in the same Section, section equivalent or 
CFSA Farm Serial Number. The irrigated acreage may not extend beyond the 
point at which your irrigation system can deliver the quantity of water 
needed to produce the yield on which your guarantee is based and may not 
continue into non-irrigated acreage in the same rows or planting 
pattern. Non-irrigated corners of a field in which a center-pivot 
irrigation system exists that do not qualify as a separate optional unit 
will be a part of the irrigated unit; however, other non-irrigated 
acreage within the unit being divided may qualify as a separate optional 
unit provided all requirements of this section are met.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Basic Provisions (Sec. 457.8), you may select only one price 
election for all the sugarcane in the county insured under this policy.
    (b) Instead of reporting your sugarcane production for the previous 
crop year as required by subsection 3.(c) of the Basic Provisions 
(Sec. 457.8), there is a lag period of one year and you are required to 
report production from two crop years previously, e.g., 1994 crop year 
production must be reported by the required date for the 1996 crop year.

[[Page 411]]

                           4. Contract Changes

    The contract change date is June 30 preceding the cancellation date 
(see the provisions of section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8)).

                  5. Cancellation and Termination Dates

    In accordance with subsection 2.(f) of the Basic Provisions 
(Sec. 457.8), the cancellation and termination dates are September 30.

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic Provisions 
(Sec. 457.8), the crop insured will be all the sugarcane in the county 
for which a premium rate is provided by the actuarial table:
    (a) In which you have a share;
    (b) That is grown for processing for sugar or for seed; and
    (c) That is not interplanted with another crop, unless a written 
agreement allows otherwise.

                          7. Insurable Acreage

    Paragraph 9.(a)(3) of the Basic Provisions (Sec. 457.8) is not 
applicable to the Sugarcane Crop Provisions.

                           8. Insurance Period

    (a) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8), insurance attaches:
    (1) At the time of planting for plant cane unless we agree in 
writing to a later date;
    (2) On the first day following harvest of the previous crop for 
stubble cane except as set out in paragraph 8.(a)(3);
    (3) On the later of April 15 or 30 days following harvest of the 
previous crop for stubble cane:
    (i) Damaged during the previous crop year in all states (includes 
Louisiana); and
    (ii) In Louisiana, after the second harvest from stubble cane.
    (b) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8) the calendar date for the 
end of the insurance period is:
    (1) January 31 in Louisiana; and
    (2) April 30 in all other states.

                            9. Causes of Loss

    In accordance with the provisions of section 12 (Causes of Loss) of 
the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur within the insurance period:
    (a) Adverse weather conditions;
    (b) Fire;
    (c) Insects, but not damage due to insufficient or improper 
application of pest control measures;
    (d) Plant disease, but not damage due to insufficient or improper 
application of disease control measures;
    (e) Wildlife;
    (f) Earthquake;
    (g) Volcanic eruption; or
    (h) Failure of the irrigation water supply, if applicable, due to an 
unavoidable cause of loss occurring within the insurance period.

 10. Duties in the Event of Damage or Loss or Cutting the Sugarcane for 
                                  Seed

    (a) In addition to your duties under section 14 (Duties in the Event 
of Damage or Loss) of the Basic Provisions (Sec. 457.8), in the event of 
damage or loss:
    (1) All sugarcane stubble must remain intact for our inspection; and
    (2) You must give us notice at least 15 days before you begin 
cutting any sugarcane for seed. Your notice must include the unit number 
and the number of acres you intend to harvest as seed. After we receive 
such notice we will appraise the sugarcane for its sugar potential. If 
you do not give us this notice, the production to count for such acreage 
will be your approved yield.
    (b) In accordance with the requirements of section 14 (Duties in the 
Event of Damage or Loss) of the Basic Provisions (Sec. 457.8), if you 
initially discover damage to any insured crop within 15 days of, or 
during harvest, you must leave representative samples of the unharvested 
crop for our inspection. The representative samples of the unharvested 
crop must be at least 10 feet wide and extend the entire length of each 
field in the unit. The stubble must not be destroyed and the required 
samples must not be harvested until the earlier of our inspection or 15 
days after harvest of the balance of the unit is completed.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide records of production:
    (1) For any optional unit, we will combine all optional units for 
which acceptable records of production were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on any unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting from this the total production to count;
    (3) Multiplying the remainder by your price election; and
    (4) Multiplying this result by your share.

[[Page 412]]

    (c) The total production (pounds of sugar) to count from all 
insurable acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee for acreage:
    (A) That is abandoned;
    (B) Put to another use without our consent;
    (C) Damaged solely by uninsured causes;
    (D) For which you fail to provide records of production that are 
acceptable to us; or
    (E) On which the sugarcane stubble is destroyed within 15 days after 
harvest is completed without our consent;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production;
    (iv) The difference between the production guarantee and the 
appraised production for acreage that has an inadequate stand. An 
appraisal for an inadequate stand will be made if the product of the 
number of stalks per acre multiplied by two and further multiplied by 
the percentage of sugar contained in the Special Provisions for this 
purpose does not equal the per-acre production guarantee; and
    (v) Potential production on insured acreage harvested for seed (see 
paragraph 10.(a)(2));
    (vi) Potential production on insured acreage you want to put to 
another use or you wish to abandon and no longer care for, if you and we 
agree on the appraised amount of production. Upon such agreement, the 
insurance period for that acreage will end if you put the acreage to 
another use or abandon the crop. If agreement on the appraised amount of 
production is not reached:
    (A) If you do not elect to continue to care for the crop, we may 
give you consent to put the acreage to another use if you agree to leave 
intact, and provide sufficient care for, representative samples of the 
crop in locations acceptable to us. (The amount of production to count 
for such acreage will be based on the harvested production or appraisals 
from the samples at the time harvest should have occurred. If you do not 
leave the required samples intact, or you fail to provide sufficient 
care for the samples, our appraisal made prior to giving you consent to 
put the acreage to another use will be used to determine the amount of 
production to count.); or
    (B) If you elect to continue to care for the crop, the amount of 
production to count for the acreage will be the harvested production, or 
our reappraisal if additional damage occurs and the crop is not 
harvested; and
    (2) All harvested production from insurable acreage. Final records 
of sugar production will be used to determine the amount of production 
to count. Preliminary mill estimates will not be used.
    (d) Harvested sugarcane may be adjusted for low quality if it is 
damaged by one or more freezes occurring within the insurance period to 
the extent that it cannot be processed for sugar by the boiling house 
operation. The amount of production to count for such sugarcane will be 
determined by dividing the dollar value of the damaged production by the 
local market price per pound for raw sugar. The prices used for this 
adjustment will be determined on the earlier of the date such quality-
adjusted production is sold or the date of final inspection for the 
unit.

[60 FR 25602, May 12, 1995]
Sec. 457.117  [Reserved]



Sec. 457.118  Malting barley crop insurance.

    The malting barley crop insurance provisions for the 1996 and 
succeeding crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

Small Grains Crop Insurance Malting Barley Price and Quality Endorsement

(This is a continuous endorsement. Refer to section 2 of the Common Crop 
Insurance Policy.)
    In return for your payment of premium for the coverage contained 
herein, this endorsement will be attached to and made part of the Common 
Crop Insurance Policy (Sec. 457.8) and Small Grains Crop Provisions 
(Sec. 457.101), subject to the terms and conditions described herein.
    1. You must have the Common Crop Insurance Policy (Sec. 457.8) and 
the Small Grains Crop Insurance Provisions (Sec. 457.101) in force to 
elect to insure malting barley under this endorsement.
    2. You must select either Option A or Option B on or before the 
sales closing date. Failure to select either Option A or Option B, or if 
you elect Option B but fail to have a malting barley contract in effect 
by the acreage reporting date, will result in no coverage under this 
endorsement for the applicable crop year. If you elect coverage under 
Option A, and subsequently enter into a malting barley contract, your 
coverage will continue under the terms of Option A. Your selection 
(Option A or B) will continue from year to year unless you cancel or 
change your selection on or before the sales closing date.
    3. You must select either an additional value price election or a 
percentage of the maximum additional value price election on or before 
the sales closing date. The percentage of the maximum additional value 
price election you select does not have to be the same as that selected 
under the Small

[[Page 413]]

Grains Crop Provisions for feed barley. In the event that you choose a 
percentage of the maximum additional value price election, we will 
multiply that percentage by the maximum additional value price election 
specified in Option A or B to determine the additional value price 
election that pertains to your contract.
    4. The additional premium amount for this coverage will be 
determined by multiplying your malting barley production guarantee per 
acre by your selected additional value price election, times the premium 
rate stated in the Actuarial Table, times the acreage planted to 
approved malting barley varieties, times your share at the time coverage 
begins.
    5. In addition to the reporting requirements contained in section 6 
of the Common Crop Insurance Policy (Sec. 457.8), you must provide the 
information required by the Option you select.
    6. In lieu of the provisions regarding units and unit division in 
the Common Crop Insurance Policy (Sec. 457.8) and the Small Grains Crop 
Provisions (Sec. 457.101), all barley acreage in the county that is 
planted to malting varieties that is insurable under the Small Grains 
Crop Provisions for feed barley and your selected Option must be insured 
under this endorsement and will be considered as one unit regardless of 
whether such acreage is owned, rented for cash, or rented for a share of 
the crop. The producer's shares in the malting barley acreage to be 
insured under this endorsement must be designated on the acreage report.
    7. In lieu of the provisions in the Common Crop Insurance Policy 
(Sec. 457.8) that requires us to pay your loss within 30 days after we 
reach agreement with you, whenever any production fails one or more of 
the quality criteria specified herein, the claim may not be settled 
until the earlier of:
    (a) The date you sell, feed, donate, or otherwise utilize such 
production for any purpose; or
    (b) May 31 of the calendar year immediately following the calendar 
year in which the insured malting barley is normally harvested.
    If the production meets all quality criteria contained herein or 
grades U.S. No. 4 or lower in accordance with the grades and grade 
requirements for the subclasses Six-rowed and Two-rowed barley, and for 
the class Barley in accordance with the Official United States Standards 
for Grain, the claim will be settled within 30 days in accordance with 
the Common Crop Insurance Policy (Sec. 457.8).
    8. This endorsement does not provide additional prevented planting 
coverage. Such coverage is only provided in accordance with the 
provisions of the Small Grain Crop Provisions for feed barley.
    9. Production from all acreage insured under this endorsement and 
any production of feed barley varieties must not be commingled prior to 
our making all determinations necessary for the purposes of this 
insurance. Failure to keep production separate may result in denial of 
your claim for indemnity.
    10. Definitions:
    (a) APH. Actual production history as determined in accordance with 
7 CFR part 400, subpart G.
    (b) Approved malting variety. A variety of barley specified as such 
in the Special Provisions.
    (c) Brewery. A facility where malt beverages are commercially 
produced for human consumption.
    (d) Contracted production. A quantity of barley the producer agrees 
to grow and deliver, and the buyer agrees to accept, under the terms of 
the malting barley contract.
    (e) Licensed grain grader. A person authorized by the U.S. 
Department of Agriculture to inspect and grade barley under the U.S. 
Standards for malt barley.
    (f) Malting barley contract. An agreement in writing between the 
producer and a brewery or a business enterprise that produces or sells 
malt or processed mash to a brewery, or a business enterprise owned by 
such brewery or business, that contains the amount of contracted 
production, the purchase price, or a method to determine such price, and 
other such terms that establish the obligations of each party to the 
agreement.
    (g) Objective test. A determination made by a qualified person using 
standardized equipment that is widely used in the malting industry, and 
following a procedure approved by the American Society of Brewing 
Chemists when determining percent germination or protein content; 
grading performed by following a procedure approved by the Federal Grain 
Inspection Service when determining quality factors other than percent 
germination or protein content; or by the Food and Drug Administration 
when determining concentrations of mycotoxins or other substances or 
conditions that are identified as being injurious to human or animal 
health.
    (h) Subjective test. A determination made by a person using 
olfactory, visual, touch or feel, masticatory, or other senses unless 
performed by a licensed grain grader; or that uses non-standardized 
equipment; or that does not follow a procedure approved by the American 
Society of Brewing Chemists, the Federal Grain Inspection Service, or 
the Food and Drug Administration.
    (i) Unit. All insurable acreage of approved malting varieties in the 
county on the date coverage begins for the crop year.

[[Page 414]]

 Option A--(Available for Producers of Production Contracted After the 
   Sales Closing Date, Non-Contracted Production, or a Combination of 
                Contracted and Non-Contracted Production)

    This option provides coverage for malting barley production and 
quality losses at a price per bushel greater than that offered under the 
Small Grains Crop Provisions.
    1. To be eligible for coverage under this option, you must provide 
us acceptable records of your sales of malting barley and the number of 
acres planted to malting varieties for at least the four crop years in 
your APH database prior to the crop year immediately preceding the 
current crop year. For example, to determine your production guarantee 
for the 1996 crop year, records must be provided for the 1991 through 
the 1994 crop years, if malting barley varieties were planted in each of 
those crop years. Failure to provide acceptable records or reports as 
required herein will make you ineligible for coverage under this 
endorsement. You must provide these records to us no later than the 
production reporting date specified in the Common Crop Insurance Policy 
(Sec. 457.8).
    2. Your malting barley production guarantee per acre will be the 
lesser of:
    (a) The production guarantee for feed barley for acreage planted to 
approved malting varieties calculated in accordance with the Small 
Grains Crop Provisions and APH regulations; or
    (b) A production guarantee calculated in accordance with APH 
procedures using the malting barley sales and acreage records provided 
by you.
    3. The additional value price per bushel elected cannot exceed the 
maximum price designated in the Special Provisions.
    4. The amount of production to count against your malting barley 
production guarantee will be determined as follows:
    (a) Production to count will include all:
    (1) Appraised production determined in accordance with sections 
11(c)(1) (i) and (ii) of the Small Grains Crop Provisions;
    (2) Harvested production and potential unharvested production that 
meets, or would meet if properly handled;
    (i) Tolerances established by the Food and Drug Administration or 
other public health organization of the United States for substances or 
conditions, including mycotoxins, that are identified as being injurious 
to human health; and
    (ii) The following quality standards, as applicable:

------------------------------------------------------------------------
                                   Six-rowed malting   Two-rowed malting
                                   barley (percent)    barley (percent) 
------------------------------------------------------------------------
Protein (dry basis).............  14.0 maximum......  14.0 maximum      
Plump kernels...................  65.0 minimum......  75.0 minimum      
Thin kernels....................  10.0 maximum......  10.0 maximum      
Germination.....................  95.0 minimum......  95.0 minimum      
Blight damaged..................  4.0 maximum.......  4.0 maximum       
Injured by mold.................  5.0 maximum.......  5.0 maximum       
Mold damaged....................  0.4 maximum.......  0.4 maximum       
Sprout damaged..................  1.0 maximum.......  1.0 maximum       
Injured by frost................  5.0 maximum.......  5.0 maximum       
Frost damaged...................  0.4 maximum.......  0.4 maximum       
------------------------------------------------------------------------

    (3) Harvested production that does not meet the quality standards 
contained in section 4(a)(2) of this Option, but is accepted by a buyer 
for malting purposes. For such production, the production to count may 
be reduced or the price used to settle the claim may be adjusted in 
accordance with sections 4 (b), (c), and (d) of this Option.
    (b) The quantity of production that initially fails any quality 
standard contained in section 4(a)(2), but is sold as malting barley 
(except production included in section 4(c)), may be reduced as 
described in this subsection, provided the failure of such production to 
meet these standards is due to insurable causes. The production to count 
of production sold under section 4(a)(3) will be determined by:
    (1) Adding the maximum barley price election under the Small Grains 
Crop Provisions and the maximum additional value price;
    (2) Dividing the price per bushel received for the damaged 
production by the result of paragraph (1); and
    (3) Multiplying the result of paragraph (2) (not to exceed 1.000) by 
the number of bushels of damaged production.
    (c) The production to count for production that initially fails any 
quality standard contained in section 4 (a)(2), sold as malting barley, 
but is conditioned before the sale will not be reduced under section 
4(b). Such production will be considered separately from all other 
production to count. (See section 5(d).)
    (d) The additional value price election per bushel used to determine 
the value of the production to count for production that initially fails 
any quality standard contained in section 4(a)(2), but is sold as 
malting barley, may be reduced by the cost incurred for any conditioning 
required to improve the quality of production so that it is marketable 
as malting barley, provided the failure of such production to meet these 
standards is due to insurable causes.
    (e) No reduction in the production to count or the additional value 
price election will be allowed for moisture content, damage due to 
uninsured causes; costs or reduced value associated with drying, 
handling, processing, or quality factors other than those contained in 
section 4(a)(2) of this Option; or any other costs associated with 
normal handling and marketing of malting barely.
    (f) All grade and quality determinations must be based on the 
results of objective tests. No indemnity will be paid for any loss

[[Page 415]]

established by subjective tests. We may obtain one or more samples of 
the insured crop and have tests performed at an official grain 
inspection location established under the U.S. Grain Standards Act or 
laboratory of our choice to verify the results of any test. In the event 
of a conflict in the test results, our results will determine the amount 
of production to count.
    5. In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (a) Multiplying the insured acreage times your malting barley 
production guarantee per acre;
    (b) Multiplying the result in subsection (a) of this section times 
your additional value price election per bushel;
    (c) Multiplying the number of bushels of production to count 
determined in accordance with sections 4(a) and (b) of this Option times 
your elected additional value price per bushel;
    (d) Multiplying the production to count determined under section 
4(c) of this Option times the additional value price per bushel 
determined in section 4(d) of the Option;
    (e) Adding the results of subsections (c) and (d) of this section;
    (f) Subtracting the result of subsection (e) of this section from 
the result in subsection (b); and
    (g) Multiplying the result of subsection (f) of this section times 
your share.
    6. For example, assume you insure two units of barley under the 
Small Grains Crop Provisions in which you have a 100% share and that are 
planted to approved malting varieties. Assume the following:
    (a) Each unit contains 40 acres;
    (b) You have sold an average of 20 bushels per acre of malting 
barley for each of the last 6 years;
    (c) You have selected the 70 percent coverage level;
    (d) Your production guarantee under the Small Grains Crop Provisions 
and the APH regulations for feed barley is 30 bushels per acre;
    (e) Your total production from all units under the Small Grains Crop 
Provisions is 1,000 bushels, all of which fails to meet the quality 
standards specified by this Option. Two hundred bushels are sold for 
malting purposes after conditioning. Conditioning costs are $0.05 per 
bushel; and
    (f) Your additional value price election is $0.40 per bushel.
    Your malting barley production guarantee is 1120.0 bushels (the 
lesser of 20 or 30 x 70 percent coverage level  x 80 acres). The value 
of your production guarantee is $448.00 (1120 bushels  x $0.40 per 
bushel). Your production to count is 200 bushels. The value of your 
production to count is $70.00 (200 bushels  x $0.35 ($0.40--$0.05)). 
Your indemnity for the malting barley unit is $378.00 (($448.00--$70.00) 
 x 100 percent share). Any remaining loss is paid under the Small Grains 
Crop Provisions for feed barley.

    Option B--(Available for Producers of Contracted Production Only)

    This option provides coverage for malting barley production and 
quality losses at a price per bushel greater than that offered under the 
Small Grains Crop Provisions provided you have a malting barley 
contract.
    1. If you elect this option you must provide us a copy of your 
malting barley contract on or before the acreage reporting date. All 
terms and conditions of the contract, including the contract price or 
futures contract premium price, must be specified in the contract and be 
effective on or before the acreage reporting date. If you fail to timely 
provide the contract, or any terms are omitted, we may elect to 
determine the relevant information necessary for insurance under this 
Option (B), or deny liability. Only contracted production or acreage is 
covered by this Option (B).
    2. Your malting barley guarantee per acre will be the lesser of:
    (a) The production guarantee for feed barley for acreage planted to 
approved malting barley varieties calculated in accordance with the 
Small Grains Crop Provisions and APH regulations; or
    (b) The number of bushels obtained by:
    (1) Dividing the number of bushels of contracted production by the 
number of acres planted to approved malting varieties in the current 
crop year; and
    (2) Multiplying the result by the percentage for the coverage level 
you elected under the Small Grains Crop Provisions.
    3. The additional value price election per bushel will be the lesser 
of, as applicable:
    (a) The guaranteed sale price per bushel established in the malting 
barley contract (without regard to discounts or incentives that may 
apply) minus the maximum price election for feed barley; or
    (b) The premium price per bushel (without regard to discounts or 
incentives) if the sale price is based on a future market price as 
specified in the malting barley contract.
    Under no circumstances will the additional value price election per 
bushel exceed $2.00 per bushel.
    4. The amount of production to count against your malting barley 
production guarantee will be determined as follows:
    (a) Production to count will include all:
    (1) Appraised production determined in accordance with sections 
11(c)(1) (i) and (ii) of the Small Grains Crop Provisions;
    (2) Harvested production and potential unharvested production that 
meets, or would meet if properly handled, the minimum acceptance 
standards contained in the malting barley contract for protein, plump 
kernels, thin kernels, germination, blight damage, mold injury or 
damage, sprout damage, frost

[[Page 416]]

injury or damage, and mycotoxins or other substances or conditions 
identified by the Food and Drug Administration or other public health 
organization of the United States as being injurious to human health, or 
the following quality standards as applicable:

------------------------------------------------------------------------
                                   Six-rowed malting   Two-rowed malting
                                        barley              barley      
                                 ---------------------------------------
                                       (percent)           (percent)    
------------------------------------------------------------------------
Protein (dry basis).............  14.0 maximum......  14.0 maximum      
Plump kernels...................  65.0 minimum......  75.0 minimum      
Thin kernels....................  10.0 maximum......  10.0 maximum      
Germination.....................  95.0 minimum......  95.0 minimum      
Blight damaged..................  4.0 maximum.......  4.0 maximum       
Injured by mold.................  5.0 maximum.......  5.0 maximum       
Mold damaged....................  0.4 maximum.......  0.4 maximum       
Sprout damaged..................  1.0 maximum.......  1.0 maximum       
Injured by frost................  5.0 maximum.......  5.0 maximum       
Frost damaged...................  0.4 maximum.......  0.4 maximum       
------------------------------------------------------------------------

    (3) Harvested production that does not meet the quality standards 
contained in section 4(a)(2) of this Option, but is accepted by a buyer 
for malting purposes. For such production, the production to count may 
be reduced or the price used to settle the claim may be adjusted in 
accordance with sections 4 (b), (c), and (d) of this Option.
    (b) The quantity of production that initially fails any quality 
standard contained in section 4(a)(2), but is sold as malting barley 
(except production included in section 4(c)), may be reduced as 
described in this subsection, provided the failure of such production to 
meet these standards is due to insurable causes. The production to count 
of production sold under section 4(a)(3) will be determined by:
    (1) Adding the maximum barley price election under the Small Grains 
Crop Provisions and the maximum additional value price;
    (2) Dividing the price per bushel received for the damaged 
production by the result of paragraph (1); and
    (3i) Multiplying the result of paragraph (2) (not to exceed 1.000) 
by the number of bushels of damaged production.
    (c) The production to count for production that initially fails any 
quality standard contained in section 4(a)(2), sold as malting barley, 
but is conditioned before the sale will not be reduced under section 
4(b). Such production will be considered separately from all other 
production to count. (See section 5(d).)
    (d) The additional value price election per bushel used to determine 
the value of the production to count for production that initially fails 
any quality standard contained in section 4(a)(2), but is sold as 
malting barley, may be reduced by the cost incurred for any conditioning 
required to improve the quality of production so that it is marketable 
as malting barley, provided the failure of such production to meet these 
standards is due to insurable causes.
    (e) No reduction in the production to count or the additional value 
price election will be allowed for moisture content, damage due to 
uninsured causes; costs or reduced value associated with drying, 
handling, processing, or quality factors other than those contained in 
section 4(a)(2) of this Option; or any other costs associated with 
normal handling and marketing of malting barely.
    (f) All grade and quality determinations must be based on the 
results of objective tests. No indemnity will be paid for any loss 
established by subjective tests. We may obtain one or more samples of 
the insured crop and have tests performed at an official grain 
inspection location established under the U.S. Grain Standards Act or 
laboratory of our choice to verify the results of any test. In the event 
of a conflict in the test results, our results will determine the amount 
of production to count.
    5. In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (a) Multiplying the insured acreage times your malting barley 
production guarantee per acre;
    (b) Multiplying the result in subsection (a) of this section times 
your additional value price election per bushel;
    (c) Multiplying the number of bushels of production to count 
determined in accordance with sections 4 (a) and (b) of this Option 
times your elected additional value price per bushel;
    (d) Multiplying the production to count determined under section 
4(c) of this Option times the additional value price per bushel 
determined in section 4(d) of the Option;
    (e) Adding the results of subsections (c) and (d) of this section;
    (f) Subtracting the result of subsection (e) of this section from 
the result in subsection (b); and
    (g) Multiplying the result of subsection (f) of this section times 
your share.
    6. For example, assume you insure two units of barley under the 
Small Grains Crop Provisions in which you have a 100% share and that are 
planted to approved malting varieties. Assume the following:
    (a) Each unit contains 40 acres;
    (b) You have a contract for the sale of 2500 bushels of malting 
barley;
    (c) You have selected the 70 percent coverage level;
    (d) Your production guarantee under the Small Grains Crop Provisions 
and the APH regulations for feed barley is 35 bushels per acre;
    (e) Your total production from all units under the Small Grains Crop 
Provisions is 1,000 bushels, all of which fails to meet the quality 
standards specified by this Option. Two hundred bushels are sold for 
malting purposes after conditioning. Conditioning cost $0.05 per bushel; 
and

[[Page 417]]

    (f) Your additional value price election is $0.60 per bushel.
    Your malting barley production guarantee is 1750.0 bushels (the 
lesser of 35 or 21.875 (2500 contracted bushels 80 acres x 70 
percent coverage) x 80 acres). The value of your production guarantee is 
$1050.00 (1750 bushels x $0.60 per bushel). Your production to count is 
200 bushels. The value of your production to count is $110.00 (200 
bushels x $0.55 ($0.60--$0.05)). Your indemnity for the malting barley 
unit is $940.00 (($1050.00--$110.00) x 100 percent share). Any remaining 
loss is paid under the Small Grains Crop Provisions for feed barley.

[61 FR 8855, Mar. 6, 1996; 61 FR 27245, May 31, 1996]



Sec. 457.119  Texas citrus fruit crop insurance provisions.

    The Texas Citrus Fruit Crop Insurance Provisions for the 1998 and 
succeeding crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                   Texas Citrus Fruit Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions; the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    Crop. Specific groups of citrus fruit as listed in the Special 
Provisions.
    Crop year. The period beginning with the date insurance attaches to 
the citrus crop and extending through the normal harvest time. It is 
designated by the calendar year following the year in which the bloom is 
normally set.
    Days. Calendar days.
    Direct marketing. Sale of the insured crop directly to consumers 
without the intervention of an intermediary such as a wholesaler, 
retailer, packer, processor, shipper, or buyer. Examples of direct 
marketing include selling through an on-farm or roadside stand, farmer's 
market, and permitting the general public to enter the field for the 
purpose of picking all or a portion of the crop.
    Excess rain. An amount of precipitation that damages the crop.
    Excess wind. A natural movement of air that has sustained speeds 
exceeding 58 miles per hour recorded at the U. S. Weather Service 
reporting station operating nearest to the grove at the time of damage.
    Freeze. The formation of ice in the cells of the tree, its blossoms, 
or its fruit caused by low air temperatures.
    FSA. The Farm Service Agency, an agency of the United States 
Department of Agriculture, or any successor agency.
    Good farming practices. The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity and 
produce at least the yield used to determine the production guarantee, 
and generally recognized by the Cooperative Extension Service as 
compatible with agronomic and weather conditions in the county.
    Harvest. The severance of mature citrus fruit from the tree by 
pulling, picking, or any other means, or by collecting marketable fruit 
from the ground.
    Hedged. A process of trimming the sides of the citrus trees for 
better or more fruitful growth of the citrus fruit.
    Interplanted. Acreage on which two or more crops are planted in any 
form of alternating or mixed pattern.
    Irrigated practice. A method of producing a crop by which water is 
artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.
    Local market price. The applicable citrus price per ton offered by 
buyers in the area in which you normally market the insured crop.
    Non-contiguous land. Any two or more tracts of land whose boundaries 
do not touch at any point, except that land separated only by a public 
or private right-of way, waterway, or an irrigation canal will be 
considered as contiguous.
    Production guarantee (per acre):
    (a) First stage production guarantee. The second stage production 
guarantee multiplied by forty percent (40%).
    (b) Second stage production guarantee. The quantity of citrus (in 
tons) determined by multiplying the yield determined in accordance with 
section 3 by the coverage level percentage you elect.
    Ton. Two thousand (2,000) pounds avoirdupois.
    Topped. A process of trimming the uppermost portion of the citrus 
trees for better and more fruitful growth of the citrus fruit.
    Varieties. Subclasses of crops as listed in the Special Provisions.
    Written agreement. A written document that alters designated terms 
of a policy in accordance with section 13.

                            2. Unit Division

    (a) A unit as defined in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8), will be divided into basic units by each citrus 
crop designated in the Special Provisions.
    (b) Unless limited by the Special Provisions, these basic units may 
be divided into

[[Page 418]]

optional units if, for each optional unit you meet all the conditions of 
this section or if a written agreement to such division exists.
    (c) Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, and variety, 
other than as described in this section.
    (d) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have failed 
to comply with these provisions. If failure to comply with these 
provisions is determined to be inadvertent, and the optional units are 
combined into a basic unit, that portion of the premium paid for the 
purpose of electing optional units will be refunded to you for the units 
combined.
    (e) All optional units established for a crop year must be 
identified on the acreage report for that crop year.
    (f) The following requirements must be met for each optional unit:
    (1) You must have records, which can be independently verified, of 
acreage and production for each optional unit for at least the last crop 
year used to determine your production guarantee; and
    (2) You must have records of marketed production or measurement of 
stored production from each optional unit maintained in such a manner 
that permits us to verify the production from each optional unit, or the 
production from each unit must be kept separate until loss adjustment is 
completed by us.
    (3) Each optional unit must meet one of the following criteria, as 
applicable:
    (i) Optional Units by Section, Section Equivalent, or FSA Farm 
Serial Number: Optional units may be established if each optional unit 
is located in a separate legally identified section. In the absence of 
sections, we may consider parcels of land legally identified by other 
methods of measure including, but not limited to Spanish grants, 
railroad surveys, leagues, labors, or Virginia Military Lands, as the 
equivalent of sections for unit purposes. In areas that have not been 
surveyed using the systems identified above, or another system approved 
by us, or in areas where such systems exist but boundaries are not 
readily discernible, each optional unit must be located in a separate 
farm identified by a single FSA Farm Serial Number; or
    (ii) Optional Units on Acreage Located on Non-Contiguous Land: In 
lieu of establishing optional units by section, section equivalent or 
FSA Farm Serial Number, optional units may be established if each 
optional unit is located on non-contiguous land.
    3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
Indemnities In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Basic Provisions (Sec. 457.8):
    (a) You may select only one price election and coverage level for 
each citrus fruit crop designated in the Special Provisions that you 
elect to insure. The price election you choose for each crop need not 
bear the same percentage relationship to the maximum price offered by us 
for each crop. For example, if you choose one hundred percent (100%) of 
the maximum price election for early oranges, you may choose seventy-
five percent (75%) of the maximum price election for late oranges. 
However, if separate price elections are available by variety within 
each crop, the price elections you choose within the crop must have the 
same percentage relationship to the maximum price offered by us for each 
variety within the crop.
    (b) The production guarantee per acre is progressive by stage and 
increases at specific intervals to the final stage production guarantee. 
The stages and production guarantees per acre are:
    (1) The first stage extends from the date insurance attaches through 
April 30 of the calendar year of normal bloom. The production guarantee 
will be forty percent (40%) of the yield calculated in section 3(e) 
multiplied by your coverage level.
    (2) The second or final stage extends from May 1 of the calendar 
year of normal bloom until the end of the insurance period. The 
production guarantee will be the yield calculated in section 3(e) 
multiplied by your coverage level.
    (c) Any acreage of citrus damaged in the first stage to the extent 
that the majority of producers in the area would not further maintain it 
will be limited to the first stage production guarantee even though you 
may continue to maintain it.
    (d) In addition to the reported production, each crop year you must 
report by type:
    (1) The number of trees damaged, topped, hedged, pruned or removed; 
any change in practices or any other circumstance that may reduce the 
expected yield below the yield upon which the insurance guarantee is 
based; and the number of affected acres;
    (2) The number of bearing trees on insurable and uninsurable 
acreage;
    (3) The age of the trees and the planting pattern; and
    (4) For the first year of insurance for acreage interplanted with 
another perennial crop, and anytime the planting pattern of such acreage 
is changed:
    (i) The age of the interplanted crop, and type if applicable;
    (ii) The planting pattern; and
    (iii) Any other information that we request in order to establish 
your approved yield.
    We will reduce the yield used to establish your production guarantee 
as necessary,

[[Page 419]]

based on our estimate of the effect of the following: interplanted 
perennial crop; removal, topping, hedging, or pruning of trees; damage; 
change in practices and any other circumstance on the yield potential of 
the insured crop. If you fail to notify us of any circumstance that may 
reduce your yields from previous levels, we will reduce your production 
guarantee as necessary at any time we become aware of the circumstance.
    (e) The yield used to compute your production guarantee will be 
determined in accordance with Actual Production History (APH) 
regulations, 7 CFR part 400, subpart G, and applicable policy provisions 
unless damage or changes to the grove or trees, require establishment of 
the yield by another method. In the event of such damage or changes, the 
yield will be based on our appraisal of the potential of the insured 
acreage for the crop year.
    (f) Instead of reporting your citrus production for the previous 
crop year, as required by section 3 of the Basic Provisions 
(Sec. 457.8), there is a one year lag period. Each crop year you must 
report your production from two crop years ago, e.g., on the 1998 crop 
year production report, you will provide your 1996 crop year production.

                           4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is August 31 preceding 
the cancellation date.

                  5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation and 
termination dates are November 20.

                            6. Annual Premium

    In lieu of the premium computation method in section 7 (Annual 
Premium) of the Basic Provisions (Sec. 457.8), the annual premium amount 
is computed by multiplying the second stage production guarantee per 
acre by the price election, the premium rate, the insured acreage, your 
share at the time coverage begins, and by any applicable premium 
adjustment percentages contained in the Special Provisions.

                             7. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic Provisions 
(Sec. 457.8), the crop insured will be all the acreage in the county of 
each citrus crop designated in the Special Provisions that you elect to 
insure and for which a premium rate is provided by the actuarial table:
    (a) In which you have a share;
    (b) That are adapted to the area;
    (c) That are irrigated;
    (d) That has produced an average yield of at least three tons per 
acre the previous year, or we have appraised the yield potential of at 
least three tons per acre;
    (e) That is grown in a grove that, if inspected, is considered 
acceptable by us; and
    (f) That is not sold by direct marketing, unless allowed by the 
Special Provisions or by written agreement.

                          8. Insurable Acreage

    In lieu of the provisions in section 9 (Insurable Acreage) of the 
Basic Provisions (Sec. 457.8), that prohibit insurance attaching to a 
crop planted with another crop, citrus interplanted with another 
perennial crop is insurable unless we inspect the acreage and determine 
it does not meet the requirements contained in your policy.

                           9. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins on November 21 of each crop year, except that 
for the year of application, if your application is received after 
November 11 but prior to November 21, insurance will attach on the 10th 
day after your properly completed application is received in our local 
office, unless we inspect the acreage during the 10 day period and 
determine that it does not meet insurability requirements. You must 
provide any information that we require for the crop or to determine the 
condition of the grove.
    (2) The calendar date for the end of the insurance period for each 
crop year is the second May 31st of the crop year.
    (b) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8):
    (1) If you acquire an insurable share in any insurable acreage after 
coverage begins, but on or before the acreage reporting date for the 
crop year, and after an inspection we consider the acreage acceptable, 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period.
    (2) If you relinquish your insurable share on any insurable acreage 
of citrus on or before the acreage reporting date for the crop year, 
insurance will not be considered to have attached to, and no premium 
will be due, and no indemnity paid for such acreage for that crop year 
unless:
    (i) A transfer of coverage and right to an indemnity, or a similar 
form approved by us, is completed by all affected parties;
    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

[[Page 420]]

                           10. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur within the insurance period:
    (1) Excess rain;
    (2) Excess wind;
    (3) Fire, unless weeds and other forms of undergrowth have not been 
controlled or pruning debris has not been removed from the grove;
    (4) Freeze;
    (5) Hail;
    (6) Tornado;
    (7) Wildlife; or
    (8) Failure of the irrigation water supply if caused by an insured 
peril or drought that occurs during the insurance period.
    (b) In addition to the causes of loss excluded in section 12 (Causes 
of Loss) of the Basic Provisions (Sec. 457.8), we will not insure 
against damage or loss of production due to:
    (1) Disease or insect infestation, unless a cause of loss specified 
in section 10(a):
    (i) Prevents the proper application of control measures or causes 
properly applied control measures to be ineffective; or
    (ii) Causes disease or insect infestation for which no effective 
control mechanism is available;
    (2) Inability to market the citrus for any reason other than actual 
physical damage from an insurable cause specified in this section. For 
example, we will not pay you an indemnity if you are unable to market 
due to quarantine, boycott, or refusal of any person to accept 
production.

                11. Duties in the Event of Damage or Loss

    In addition to the requirements of section 14 (Duties in the Event 
of Damage or Loss) of the Basic Provisions (Sec. 457.8), the following 
will apply:
    (a) If the Special Provisions permit or a written agreement 
authorizing direct marketing exists, you must notify us at least 15 days 
before any production from any unit will be sold by direct marketing. We 
will conduct an appraisal that will be used to determine your production 
to count for production that is sold by direct marketing. If damage 
occurs after this appraisal, we will conduct an additional appraisal. 
These appraisals, and any acceptable records provided by you, will be 
used to determine your production to count. Failure to give timely 
notice that production will be sold by direct marketing will result in 
an appraised amount of production to count of not less than the 
production guarantee per acre if such failure results in our inability 
to make the required appraisal.
    (b) If you intend to claim an indemnity on any unit, you must notify 
us before beginning to harvest any damaged production so we may have an 
opportunity to inspect it. You must not sell or dispose of the damaged 
crop until after we have given you written consent to do so. If you fail 
to meet the requirements of this section all such production will be 
considered undamaged and included as production to count.

                         12. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide acceptable production records:
    (1) For any optional unit, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim on a unit basis by:
    (1) Multiplying the insured acreage for each crop, or variety if 
applicable, by its respective production guarantee (see sections 1 and 
3);
    (2) Multiplying the results of section 12(b)(1) by the respective 
price election for each crop or variety, if applicable;
    (3) Totaling the results of section 12(b)(2);
    (4) Multiplying the total production to count of each variety, if 
applicable (see section 12(c)) by the respective price election;
    (5) Totaling the results of section 12(b)(4);
    (6) Subtracting this result of section 12(b)(5) from the result of 
section 12(b)(3); and
    (7) Multiplying the result of section 12(b)(6) by your share.
    (c) The total production to count (in tons) from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee per acre for acreage:
    (A) That is abandoned;
    (B) For which you fail to provide acceptable production records;
    (C) That is damaged solely by uninsured causes; or
    (D) From which production is sold by direct marketing, if direct 
marketing is specifically permitted by the Special Provisions or a 
written agreement, and you fail to meet the requirements contained in 
section 11;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production; and
    (iv) Potential production on insured acreage you intend to abandon 
or no longer care for, if you and we agree on the appraised amount of 
production. Upon such agreement, the insurance period for that acreage 
will end. If you do not agree with our appraisal, we may defer the claim 
only if you agree to continue to care for the crop. We will then make 
another appraisal when you notify us

[[Page 421]]

of further damage or that harvest is general in the area unless you 
harvested the crop, in which case we will use the harvested production. 
If you do not continue to care for the crop, our appraisal made prior to 
deferring the claim will be used to determine the production to count; 
and
    (2) All harvested production from the insurable acreage.
    (d) Any citrus fruit that is not marketed as fresh fruit and, due to 
insurable causes, does not contain 120 or more gallons of juice per ton, 
will be adjusted by:
    (1) Dividing the gallons of juice per ton obtained from the damaged 
citrus by 120; and
    (2) Multiplying the result by the number of tons of such citrus.
    If individual records of juice content are not available, an average 
juice content from the nearest juice plant will be used, if available. 
If not available, a field appraisal will be made to determine the 
average juice content.
    (e) Where the actuarial table provides, and you elect, the fresh 
fruit option, citrus fruit that is not marketable as fresh fruit due to 
insurable causes will be adjusted by:
    (1) Dividing the value per ton of the damaged citrus by the price of 
undamaged citrus fruit; and
    (2) Multiplying the result by the number of tons of such citrus 
fruit. The applicable price for undamaged citrus fruit will be the local 
market price the week before damage occurred.
    (f) Any production will be considered marketed or marketable as 
fresh fruit unless, due solely to insured causes, such production was 
not marketed as fresh fruit.
    (g) In the absence of acceptable records of disposition of harvested 
citrus fruit, the disposition and amount of production to count for the 
unit will be the guarantee on the unit.
    (h) Any citrus fruit on the ground that is not harvested will be 
considered totally lost if damaged by an insured cause.

                         13. Written Agreements

    Designated terms of this policy may be altered by written agreement 
in accordance with the following:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date, except as provided in section (13)(e);
    (b) The application for written agreement must contain all terms of 
the contract between you and us that will be in effect if the written 
agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy); and
    (e) An application for written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has occurred and the crop is 
insurable in accordance with the policy and written agreement 
provisions.

[61 FR 41300, Aug. 8, 1996; 61 FR 57583, Nov. 7, 1996]
Sec. 457.120  [Reserved]



Sec. 457.121  Arizona-California citrus crop insurance provisions.

    The Arizona-California Citrus Crop Insurance Provisions for the 1998 
and succeeding crop years are as follows:

                 United States Department of Agriculture

                   Federal Crop Insurance Corporation

                Arizona-California Citrus Crop Provisions

    If a conflict exists among the Basic Provisions (Sec. 457.8), these 
crop provisions, and the Special Provisions; the Special Provisions will 
control these crop provisions and the Basic Provisions; and these crop 
provisions will control the Basic Provisions.

                             1. Definitions

    Carton. The standard container for marketing the fresh packed citrus 
fruit crop as shown below. In the absence of marketing records on a 
carton basis, production will be converted to cartons on the basis of 
the following average net pounds of packed fruit in a standard packed 
carton.

------------------------------------------------------------------------
            Container size                    Fruit crop         Pounds 
------------------------------------------------------------------------
Container #58........................  Navel oranges, Valencia        38
                                        oranges & Sweet                 
                                        oranges.                        
Container #58........................  Lemons.................        40
Container #59........................  Grapefruit.............        32
Container #63........................  Tangerines (including          25
                                        Tangelos) & Mandarin            
                                        oranges.                        
------------------------------------------------------------------------

    Crop. Citrus fruit as listed in the Special Provisions.
    Crop year. The period beginning with the date insurance attaches to 
the citrus crop and extending through normal harvest time. It is 
designated by the calendar year following the year in which the bloom is 
normally set.
    Days. Calendar days.
    Dehorning. Cutting of any scaffold limb to a length that is not 
greater than one-fourth (\1/4\) the height of the tree before cutting.

[[Page 422]]

    Direct marketing. Sale of the insured crop directly to consumers 
without the intervention of an intermediary such as a wholesaler, 
retailer, packer, processor, shipper or buyer. Examples of direct 
marketing include selling through an on-farm or roadside stand, farmer's 
market, and permitting the general public to enter the field for the 
purpose of picking all or a portion of the crop.
    Good farming practices. The cultural practices generally in use in 
the county for the crop to make normal progress toward maturity and 
produce at least the yield used to determine the production guarantee, 
and generally recognized by the Cooperative Extension Service as 
compatible with agronomic and weather conditions in the county.
    Harvest. The severance of mature citrus from the tree by pulling, 
picking, or any other means, or by collecting marketable fruit from the 
ground.
    Interplanted. Acreage on which two or more crops are planted in any 
form of alternating or mixed pattern.
    Irrigated practice. A method of producing a crop by which water is 
artificially applied during the growing season by appropriate systems 
and at the proper times, with the intention of providing the quantity of 
water needed to produce at least the yield used to establish the 
irrigated production guarantee on the irrigated acreage planted to the 
insured crop.
    Non-contiguous land. Any two or more tracts of land whose boundaries 
do not touch at any point, except that land separated only by a public 
or private right-of-way, waterway or an irrigation canal will be 
considered as contiguous.
    Production guarantee (per acre). The number of citrus (cartons) 
determined by multiplying the approved APH yield per acre by the 
coverage level percentage you elect.
    Scaffold limb. A major limb attached directly to the trunk.
    Set out. Transplanting a tree into the grove.
    Variety. Subclass of crop as listed in the Special Provisions.
    Written agreement--A written document that alters designated terms 
of a policy in accordance with section 12.

                            2. Unit Division

    (a) A unit as defined in section 1 (Definitions) of the Basic 
Provisions (Sec. 457.8), will be divided into basic units by each citrus 
crop designated in the Special Provisions.
    (b) Unless limited by the Special Provisions, these basic units may 
be divided into optional units if, for each optional unit you meet all 
the conditions of this section or if a written agreement to such 
division exists.
    (c) Basic units may not be divided into optional units on any basis 
including, but not limited to, production practice, type, and variety, 
other than as described in this section.
    (d) If you do not comply fully with these provisions, we will 
combine all optional units that are not in compliance with these 
provisions into the basic unit from which they were formed. We will 
combine the optional units at any time we discover that you have failed 
to comply with these provisions. If failure to comply with these 
provisions is determined to be inadvertent, and the optional units are 
combined into a basic unit, that portion of the premium paid for the 
purpose of electing optional units will be refunded to you for the units 
combined.
    (e) All optional units established for a crop year must be 
identified on the acreage report for that crop year.
    (f) The following requirements must be met for each optional unit:
    (1) You must have records, which can be independently verified, of 
acreage and production for each optional unit for at least the last crop 
year used to determine your production guarantee; and
    (2) You must have records of marketed production or stored 
production from each optional unit maintained in such a manner that 
permits us to verify the production from each optional unit, or the 
production from each unit must be kept separate until loss adjustment is 
completed by us; and
    (3) Each optional unit must be located on non-contiguous land.

  3. Insurance Guarantees, Coverage Levels, and Prices for Determining 
                               Indemnities

    (a) In addition to the requirements of section 3 (Insurance 
Guarantees, Coverage Levels, and Prices for Determining Indemnities) of 
the Basic Provisions (Sec. 457.8), you may select only one price 
election and coverage level for each citrus fruit crop designated in the 
Special Provisions that you elect to insure. The price election you 
choose for each crop need not bear the same percentage relationship to 
the maximum price offered by us for each crop. For example, if you 
choose one hundred percent (100%) of the maximum price election for 
sweet oranges, you may choose seventy-five percent (75%) of the maximum 
price election for grapefruit. However, if separate price elections are 
available by variety within each crop, the price elections you choose 
for each variety must have the same percentage relationship to the 
maximum price offered by us for each variety within the crop.
    (b) In lieu of reporting your citrus production of marketable fresh 
fruit for the previous crop year, as required by section 3 of the Basic 
Provisions (Sec. 457.8), there is a lag period of one year. Each crop 
year, you must report your production from two crop years ago, e.g., on 
the 1998 crop year production report, you will provide your 1996 crop 
year production.

[[Page 423]]

    (c) In addition, you must report, by the production reporting date 
designated in section 3 (Insurance Guarantees, Coverage Levels, and 
Prices for Determining Indemnities) of the Basic Provisions 
(Sec. 457.8), by type, if applicable:
    (1) The number of trees damaged, dehorned or removed; any change in 
practices or any other circumstance that may reduce the expected yield 
below the yield upon which the insurance guarantee is based; and the 
number of affected acres;
    (2) The number of bearing trees on insurable and uninsurable 
acreage;
    (3) The age of the trees and the planting pattern; and
    (4) For the first year of insurance for acreage interplanted with 
another perennial crop, and anytime the planting pattern of such acreage 
is changed:
    (i) The age of the interplanted crop, and type, if applicable;
    (ii) The planting pattern; and
    (iii) Any other information that we request in order to establish 
your approved yield.
    We will reduce the yield used to establish your production guarantee 
as necessary, based on our estimate of the effect of the following: 
interplanted perennial crop; damage; dehorning; removal of trees; change 
in practices and any other circumstance on the yield potential of the 
insured crop. If you fail to notify us of any circumstance that may 
reduce your yields from previous levels, we will reduce your production 
guarantee as necessary at any time we become aware of the circumstance.

                           4. Contract Changes

    In accordance with section 4 (Contract Changes) of the Basic 
Provisions (Sec. 457.8), the contract change date is August 31 preceding 
the cancellation date.

                  5. Cancellation and Termination Dates

    In accordance with section 2 (Life of Policy, Cancellation, and 
Termination) of the Basic Provisions (Sec. 457.8), the cancellation and 
termination dates are November 20.

                             6. Insured Crop

    In accordance with section 8 (Insured Crop) of the Basic Provisions 
(Sec. 457.8), the crop insured will be all the acreage in the county of 
each citrus crop designated in the Special Provisions that you elect to 
insure and for which a premium rate is provided by the actuarial table:
    (a) In which you have a share;
    (b) That is adapted to the area;
    (c) That is irrigated;
    (d) That is grown in a grove that, if inspected, is considered 
acceptable by us;
    (e) That is not sold by direct marketing, unless allowed by the 
Special Provisions or by written agreement; and
    (f) That has reached at least the sixth growing season after being 
set out. However, we may agree to insure acreage that has not reached 
this age if we inspect and approve a written agreement to insure such 
acreage.

                          7. Insurable Acreage

    In lieu of the provisions in section 9 (Insurable Acreage) of the 
Basic Provisions (Sec. 457.8), that prohibit insurance attaching to a 
crop planted with another crop, citrus interplanted with another 
perennial crop is insurable unless we inspect the acreage and determine 
it does not meet the requirements contained in your policy.

                           8. Insurance Period

    (a) In accordance with the provisions of section 11 (Insurance 
Period) of the Basic Provisions (Sec. 457.8):
    (1) Coverage begins on November 21 of each crop year, except that 
for the year of application, if your application is received after 
November 11 but prior to November 21, insurance will attach on the 10th 
day after your properly completed application is received in our local 
office unless we inspect the acreage during the 10 day period and 
determine that it does not meet insurability requirements. You must 
provide any information that we require for the crop or to determine the 
condition of the grove.
    (2) The calendar date for the end of the insurance period for each 
crop year is:
    (i) August 31 for Navel oranges and Southern California lemons;
    (ii) November 20 for Valencia oranges; and
    (iii) July 31 for all other citrus crops.
    (b) In addition to the provisions of section 11 (Insurance Period) 
of the Basic Provisions (Sec. 457.8):
    (1) If you acquire an insurable share in any insurable acreage after 
coverage begins, but on or before the acreage reporting date for the 
crop year, and after an inspection we consider the acreage acceptable, 
insurance will be considered to have attached to such acreage on the 
calendar date for the beginning of the insurance period.
    (2) If you relinquish your insurable share on any insurable acreage 
of citrus on or before the acreage reporting date for the crop year, 
insurance will not be considered to have attached to and no premium will 
be due, and no indemnity paid, for such acreage for that crop year 
unless:
    (i) A transfer of coverage and right to an indemnity, or a similar 
form approved by us, is completed by all affected parties;
    (ii) We are notified by you or the transferee in writing of such 
transfer on or before the acreage reporting date; and
    (iii) The transferee is eligible for crop insurance.

[[Page 424]]

                            9. Causes of Loss

    (a) In accordance with the provisions of section 12 (Causes of Loss) 
of the Basic Provisions (Sec. 457.8), insurance is provided only against 
the following causes of loss that occur during the insurance period:
    (1) Adverse weather conditions;
    (2) Fire, unless weeds and other forms of undergrowth have not been 
controlled or pruning debris has not been removed from the grove;
    (3) Wildlife;
    (4) Earthquake;
    (5) Volcanic eruption; or
    (6) Failure of irrigation water supply, if caused by an insured 
peril that occurs during the insurance period.
    (b) In addition to the causes of loss excluded in section 12 (Causes 
of Loss) of the Basic Provisions (Sec. 457.8), we will not insure 
against damage or loss of production due to:
    (1) Disease or insect infestation, unless adverse weather 
conditions:
    (i) Prevents the proper application of control measures or causes 
properly applied control measures to be ineffective; or
    (ii) Causes disease or insect infestation for which no effective 
control mechanism is available;
    (2) Inability to market the citrus for any reason other than actual 
physical damage from an insurable cause specified in this section. For 
example, we will not pay you an indemnity if you are unable to market 
due to quarantine, boycott, or refusal of any person to accept 
production.

                10. Duties in the Event of Damage or Loss

    In addition to the requirements of section 14 (Duties in the Event 
of Damage or Loss) of the Basic Provisions (Sec. 457.8), the following 
will apply:
    (a) If the Special Provisions permit or a written agreement 
authorizing direct marketing exists, you must notify us at least 15 days 
before any production from any unit will be sold by direct marketing. We 
will conduct an appraisal that will be used to determine your production 
to count for production that is sold by direct marketing. If damage 
occurs after this appraisal, we will conduct an additional appraisal. 
These appraisals, and any acceptable records provided by you, will be 
used to determine your production to count. Failure to give timely 
notice that production will be sold by direct marketing will result in 
an appraised amount of production to count of not less than the 
production guarantee per acre if such failure results in our inability 
to make the required appraisal.
    (b) If you intend to claim an indemnity on any unit, you must notify 
us before beginning to harvest any damaged production so that we may 
have an opportunity to inspect it. You must not sell or dispose of the 
damaged crop until after we have given you written consent to do so. If 
you fail to meet the requirements of this section, all such production 
will be considered undamaged and included as production to count.

                         11. Settlement of Claim

    (a) We will determine your loss on a unit basis. In the event you 
are unable to provide acceptable production records:
    (1) For any optional unit, we will combine all optional units for 
which such production records were not provided; or
    (2) For any basic unit, we will allocate any commingled production 
to such units in proportion to our liability on the harvested acreage 
for each unit.
    (b) In the event of loss or damage covered by this policy, we will 
settle your claim by:
    (1) Multiplying the insured acreage for each crop, or variety if 
applicable, by its respective production guarantee;
    (2) Multiplying the results of section 11(b)(1) by the respective 
price election for each crop, or variety, if applicable;
    (3) Totaling the results of section 11(b)(2);
    (4) Multiplying the total production to be counted of each variety, 
if applicable (see section 11(c)), by the respective price election;
    (5) Totaling the results of section 11(b)(4);
    (6) Subtracting this result of section 11(b)(5) from the result of 
section 11(b)(3); and
    (7) Multiplying the result of section 11(b)(6) by your share;
    (c) The total production to count (in cartons) from all insurable 
acreage on the unit will include:
    (1) All appraised production as follows:
    (i) Not less than the production guarantee per acre for acreage:
    (A) That is abandoned;
    (B) For which you fail to provide acceptable production records;
    (C) That is damaged solely by uninsured causes; or
    (D) From which production is sold by direct marketing, if direct 
marketing is specifically permitted by the Special Provisions or a 
written agreement, and you fail to meet the requirements contained in 
section 10;
    (ii) Production lost due to uninsured causes;
    (iii) Unharvested production determined to be marketable as fresh 
packed fruit; and
    (iv) Potential production on insured acreage that you intend to 
abandon or no longer care for, if you and we agree on the appraised 
amount of production. Upon such agreement, the insurance period for that 
acreage will end. If you do not agree with our appraisal, we may defer 
the claim only if you agree to continue to care for the crop. We will 
then make another appraisal when you notify us of further damage or that 
harvest is general in the area unless you harvested the crop, in

[[Page 425]]

which case we will use the harvested production. If you do not continue 
to care for the crop, our appraisal made prior to deferring the claim 
will be used to determine the production to count;
    (2) All harvested production marketed as fresh packed fruit from the 
insurable acreage; and
    (3) All citrus that was disposed of or sold without an inspection or 
written consent.
    (d) Any production will be considered marketed or marketable as 
fresh packed fruit unless, due solely to insured causes, such production 
was not marketed or marketable as fresh packed fruit.
    (e) Citrus that cannot be marketed as fresh packed fruit due to 
insurable causes will not be considered production to count.
    (f) If we determine that frost protection equipment was not properly 
utilized or not properly reported, the indemnity for the unit will be 
reduced by the percentage of premium reduction allowed for frost 
protection equipment. You must, at our request, provide us records 
showing the start-stop times by date for each period the frost 
protection equipment was used.

                          12. Written Agreement

    Designated terms of this policy may be altered by written agreement 
in accordance with the following:
    (a) You must apply in writing for each written agreement no later 
than the sales closing date, except as provided in section 12(e);
    (b) The application for written agreement must contain all terms of 
the contract between you and us that will be in effect if the written 
agreement is not approved;
    (c) If approved, the written agreement will include all variable 
terms of the contract, including, but not limited to, crop type or 
variety, the guarantee, premium rate, and price election;
    (d) Each written agreement will only be valid for one year (If the 
written agreement is not specifically renewed the following year, 
insurance coverage for subsequent crop years will be in accordance with 
the printed policy); and
    (e) An application for written agreement submitted after the sales 
closing date may be approved if, after a physical inspection of the 
acreage, it is determined that no loss has occurred and the crop is 
insurable in accordance with the policy and written agreement 
provisions.

[61 FR 44147, Aug. 28, 1996]



PART 458--SPECIAL CALIFORNIA CROP INSURANCE REGULATIONS--Table of Contents






        Subpart--Regulations for the 1992 through 1994 Crop Years

Sec.
458.1  Availability of Special California citrus crop insurance.
458.2  Premium rates, production guarantees, coverage levels, and prices 
          at which indemnities shall be computed.
458.3  OMB control numbers.
458.4  Creditors.
458.5  Good faith reliance on misrepresentation.
458.6  The contract.
458.7  The application and policy.

    Authority: 7 U.S.C. 1506, 1516.

    Source: 56 FR 30490, July 3, 1991, unless otherwise noted.



Sec. 458.1  Availability of Special California citrus crop insurance.

    Insurance shall be offered under the provisions of this subpart on 
citrus in California counties within limits prescribed by and in 
accordance with the provisions of the Federal Crop Insurance Act, as 
amended. The counties shall be designated by the Manager of the 
Corporation from those approved by the Board of Directors of the 
Corporation.



Sec. 458.2  Premium rates, production guarantees, coverage levels, and prices at which indemnities shall be computed.

    (a) The Manager shall establish premium rates, production 
guarantees, coverage levels, and prices at which indemnities shall be 
computed for California citrus which will be included in the actuarial 
table on file in the applicable service offices for the county.
    (b) At the time of application, the applicant will select the 
coverage level (50%, 65%, or 75%) for the 1993 and 1994 crop years. The 
coverage level for the 1992 crop year will be level 1 (50%). The price 
selection for the 1992 crop year will be established by the actuarial 
tables for the applicable type for the crop year.

[[Page 426]]



Sec. 458.3  OMB control numbers.

    The OMB control numbers are contained in subpart H of part 400, 
Title 7 CFR.



Sec. 458.4  Creditors.

    An interest of a person in an insured crop existing by virtue of a 
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary 
transfer or other similar interest shall not entitle the holder of the 
interest to my benefit under the contract.



Sec. 458.5  Good faith reliance on misrepresentation.

    Notwithstanding any other provision of the Special California citrus 
insurance contract, whenever:
    (a) An insured under a contract of crop insurance entered into under 
these regulations, as a result of a misrepresentation or other erroneous 
action or advice by an agent or employee of the Corporation:
    (1) Is indebted to the Corporation for additional premiums; or
    (2) Has suffered a loss to a crop which is not insured or for which 
the insured is not entitled to an indemnity because of failure to comply 
with the terms of the insurance contract, but which the insured believed 
to be insured, or believed the terms of the insurance contract to have 
been complied with or waived; and
    (b) the Board of Directors of the Corporation, or the Manager in 
cases involving not more than $100,000.00 finds that:
    (1) An agent or employee of the Corporation did in fact make such 
misrepresentation or take other erroneous action or give erroneous 
advice;
    (2) Said insured relied thereon in good faith; and
    (3) To require the payment of the additional premiums or to deny 
such insured's entitlement to the indemnity would not be fair and 
equitable, such insured shall be granted relief the same as if otherwise 
entitled thereto. Requests for relief under this section must be 
submitted to the Corporation in writing.



Sec. 458.6  The contract.

    The insurance contract shall become effective upon the written 
acceptance on the Corporation's form by the insured of the Corporation's 
insurance offer. Said offer will be extended only after receipt by the 
corporation of an application for insurance on a form prescribed by the 
Corporation and inspection of the grove by the Corporation. The 
applicant will have 15 calendar days from the date the insurance offer 
is tendered to accept such offer. The offer will be withdrawn thereafter 
if not accepted. The contract shall cover the citrus crop as provided in 
the policy. The contract shall consist of the application, the insurance 
offer, the acceptance, the policy, an annual field inspection report, 
and the county actuarial table. Any changes made in the contract shall 
not affect its continuity from year to year. The forms referred to in 
the contract are available at the applicable services offices.



Sec. 458.7  The application and policy.

    (a) Application for insurance on a form prescribed by the 
Corporation may be made by any person to cover such person's share in 
the citrus crop as landlord, owner-operator, or tenant. The application 
shall be submitted to the Corporation at any designated service office 
on or before the applicable sales closing date.
    (b) The Corporation may discontinue the acceptance of applications 
in any county upon its determination that the insurance risk is 
excessive, and also, for the same reason, may reject any individual 
application. The Manager of the Corporation is authorized in any crop 
year to extend the closing date for submitting applications in any 
county, by placing the extended date on file in the applicable service 
offices and publishing a notice in the Federal Register upon the 
Manager's determination that no adverse selectivity will result during 
the extended period.
    However, if adverse conditions should develop during such period, 
the Corporation may discontinue the acceptance of applications.
    The provision of the Special California Insurance Policy for the 
1992 through 1994 crop years are as follows:

             Special California Citrus Crop Insurance Policy

    (This is a three (3) year term contract. Refer to Section 15.)

[[Page 427]]

    Agreement to Insure: We will provide the insurance described in this 
policy in return for the premium and your compliance with all applicable 
provisions.
    Throughout this policy, ``you'' and ``your'' refer to the insured 
shown on the accepted Application and ``we,'' ``us,'' ``our'' refer to 
the Federal Crop Insurance Corporation.

    Note: This is a three year policy of insurance. The Corporation, 
after inspection of the grove, will extend to the applicant, an offer of 
insurance. Upon acceptance of that offer a contract of insurance will be 
in existence. The first year's premium and the estimated premium for the 
remaining two years are due and payable to the Corporation within 45 
days of acceptance of the insurance offer. The amount of production used 
to compute the insurance offer each year will be determined only after 
the Corporation's annual inspection of the insured's grove. The amount 
of premium for each of the remaining two years will be determined as a 
result of the corporation's inspection.

                          Terms and Conditions

                            1. Causes of Loss

    (a) For the 1992 crop year the insurance provided is against 
unavoidable loss of production resulting from the following causes 
occurring within the insurance period:
    (1) Frost;
    (2) Freeze;
    (3) Excess moisture; and
    (4) Hail.
    (b) For the 1993 and 1994 crop years the insurance provided is 
against those causes listed in subsection 1.(a) above, and the following 
causes occurring within the insurance period:
    (1) Fire;
    (2) Wildlife;
    (3) Excess heat;
    (4) Excess wind;
    (5) Tornado;
    (6) Earthquake;
    (7) Volcanic eruption;
    (8) Failure of the irrigation water supply due to an unavoidable 
cause occurring after insurance attaches; or
    (9) Direct Mediterranean Fruit Fly damage; unless those causes are 
expected, excluded, or limited by the actuarial table or subsection 
9.(f)(7).
    (c) We will not insure against any loss of production due to:
    (1) Fire, where weeds and other forms of undergrowth have not been 
controlled or tree-pruning debris has not been removed from the grove;
    (2) The neglect, mismanagement, abandonment, or wrongdoing of you, 
any member of your household, your tenants, or employees;
    (3) The failure to follow recognized good citrus grove practices;
    (4) The failure or breakdown of irrigation equipment or facilities;
    (5) The failure to carry out a good citrus irrigation practice;
    (6) The impoundment of water by any governmental, public, or private 
dam or reservoir project; or
    (7) Any cause not specified in section 1.(a) or 1.(b), as 
applicable, as an insured loss.

                   2. Crop, Acreage, and Share Insured

    (a) The crop insured will be all of the following citrus types you 
elect, which are grown in the country on insured acreage and for which a 
premium rate is provided by the actuarial table:
    Type I--Navel oranges;
    Type II--Sweet oranges;
    Type III--Valencia oranges;
    Type IV--Grapefruit;
    Type V--Lemons;
    Type VI--Kinnow mandarins;
    Type VII--Minneola tangelos; or
    Type VIII--Orlando tangelos.
    (b) The acreage insured for each crop year will include all acreage 
of citrus of the type(s) elected pursuant to section 2.(a), located on 
insurable acreage as designated by the actuarial table and in which you 
have a share at the time insurance attaches for the 1992 crop year.
    (c) The insured share is your share as landlord, owner-operator, or 
tenant in the insured citrus on the date insurance attaches.
    (d) We do not insure any acreage:
    (1) Which is not irrigated; and
    (2) On which the trees have not reached the sixth growing season 
after being set out.
    (e) Insurance will not attach or be considered to have attached to 
any acreage of the crop, for each crop year, until the acreage has been 
inspected and accepted by us. Tree damage occurring prior to the insured 
crop year will result in a commensurate reduction in yield guarantee for 
a subsequent years insurance coverage.
    (f) We may limit the insured acreage to any acreage limitation 
established under any Act of Congress if we advise you of the limit 
prior to the date insurance attaches.

       3. Report of Acreage, Share, Number of Trees, and Practice

    You must report on our form:
    (a) All of the acreage of citrus in the county in which you have a 
share;
    (b) The practice;
    (c) Your share on the date insurance attaches; and
    (d) The number of bearing trees.
    You must designate separately any acreage in which you have an 
interest that is not insurable. The 1992 crop year acreage report must 
accompany your application for insurance coverage under this contract.
    For the 1993 and 1994 crop years, the designated acreage will remain 
the same as that

[[Page 428]]

noted for 1992 unless, as a result of a subsequent field inspection, we 
determine that some covered acreage has suffered structural damage 
sufficient to make it uninsurable. This report must be submitted 
annually thereafter on or before January 10.

  4. Production Guarantees, Coverage Levels, and Prices for Computing 
                               Indemnities

    (a) The coverage levels and prices for computing indemnities are 
contained in the actuarial table.
    (b) Coverage level 1 will apply for the 1992 crop year.
    (c) You may select any coverage level for the 1993 and 1994 crop 
years at the time of application.
    (d) The price election for the 1992 crop year will be the maximum 
available for the 1992 crop year as shown on the actuarial table. The 
price election for the 1993 and 1994 crop years will be the maximum 
available as shown on the 1993 crop year actuarial table.
    (e) You must report production and acreage to us for at least the 
four-year period 1987 through 1990 when the application is submitted. 
However, if the trees had not reached the sixth growing season in 1987, 
only those years in which the trees were six years or older must be 
reported. Your guarantee for each crop year will be based on your 
production history and our appraisal of current crop potential.
    In no case will the insurance yield on which the guarantee is based 
be greater than can be supported by the production history.

                               5. Premium

    (a) The premium amount for each crop year is computed by multiplying 
the applicable production guarantee as determined in section 4.(e) times 
the price election, times the premium rate, times the insured acreage, 
times your share at the time insurance attaches for the 1992 crop year.
    (b)(1) The premium for the 1992 crop year is earned at the time the 
insurance attaches and must be paid within 45 days of acceptance of the 
Corporation's insurance offer by the applicant. The insurance will be 
considered accepted when you agree, in writing, to the insurance offer. 
In addition, a premium deposit for the 1993 and 1994 crop years, 
calculated as in subsection 5.(a) above, must be submitted within 45 
days of the acceptance of the insurance offer. The premium deposit 
amount will be calculated based on the factors selected for the 1993 and 
1994 crop years.
    (2) Failure to pay the premium within 45 days of the acceptance of 
the insurance offer will result in:
    (i) The insured being charged interest at a rate of fifteen (15%) 
percent annum, from the due date of the premium payment to the date 
actually paid;
    (ii) The elimination of the discount permitted under subsection (c) 
below;
    (iii) The withholding of any indemnities payable under the policy 
until payment is made in full; and
    (iv) Legal action to collect the required premium payment.
    (c) The 1993 and 1994 crop year premium deposits will be adjusted as 
follows to reflect the present value of the premium (based on an average 
annual interest rate of seven percent (7%):
    (1) The premium deposit amount for the 1993 crop year will be 
multiplied by 0.935; and
    (2) The premium deposit amount for the 1994 crop year will be 
multiplied by 0.873.
    (d) A portion of the premium deposit may be refunded if, upon 
subsequent annual field inspections, it is determined that the trees on 
insured acreage have been damaged in a manner that will result in 
subsequent production losses. Adjustments will be made to eliminate that 
portion of guaranteed production relating to tree damage and a pro-rata 
portion of the premium deposit will be returned to you.

                         6. Deductions for Debt

    Any unpaid amount due us may be deducted from any indemnity payable 
to you, or from any loan or payment due you under any Act of Congress or 
program administered by the United States Department of Agriculture or 
its Agencies.

                           7. Insurance Period

    For the 1992 crop year, insurance attaches at the time the 
Corporation's insurance offer is accepted by the insured. For the 1993 
and 1994 crop years, insurance attaches on the December 1 prior to the 
calendar year of normal bloom, and ends at the earliest of:
    (a) Total destruction of the citrus;
    (b) Harvest of the citrus;
    (c) Final adjustment of a loss; or
    (d) The date following the year in which the bloom is normally set 
as follows:
    (1) August 31 for Navel oranges and Southern California lemons;
    (2) November 30 for Valencia oranges; or
    (3) July 31 for all other types of citrus.

                       8. Notice of Damage or Loss

    (a) In case of damage or probable loss:
    (1) You must give us prompt written notice:
    (i) After insured damage to the citrus becomes apparent, giving the 
dates and causes of such damage; or
    (ii) If you decide not to further care for or harvest any part of 
the insured citrus crop.
    (2) You must give us notice of probable loss at least 15 days before 
the beginning of harvest if you anticipate a loss on any unit.
    (3) If probable loss is later determined, immediate notice must be 
given. If harvest will

[[Page 429]]

begin after the end of the insurance period, notice must be given on or 
before the calendar date for the end of the insurance period.
    (b) You must obtain written consent from us before you destroy any 
of the citrus which is not to be harvested.
    (c) We may reject any claim for indemnity if any of the requirements 
of this section or section 9 are not complied with.

                         9. Claim for Indemnity

    (a) Any claim for indemnity on a unit must be submitted to us on our 
form not later than 60 days after the earliest of:
    (1) Total destruction of the citrus on the unit:
    (2) Harvest of the unit; or
    (3) The calendar date for the end of the insurance period.
    (b) We will not pay any indemnity unless you:
    (1) Establish the total production of citrus on the unit and that 
any loss of production has been directly caused by one or more of the 
insured causes during the insurance period; and
    (2) Furnish all information we require concerning the loss.
    (c) The indemnity will be determined on each unit by:
    (1) Multiplying the insured acreage by the production guarantee;
    (2) Subtracting therefrom the total production of citrus to be 
counted (see section 9.(f));
    (3) Multiplying the remainder by the price election; and
    (4) Multiplying this result by your share.
    (d) If the information reported by you under section 3 of the policy 
results in a lower premium than the actual premium determined to be due, 
the production guarantee on the unit will be computed on the information 
reported, but all the production from insurable acreage, whether or not 
reported as insurable, will count against the production guarantee.
    (e) If a determination is made that frost protection equipment was 
not properly utilized or not properly reported, the indemnity for the 
unit will be reduced by the percentage of premium reduction allowed for 
frost protection equipment. You must, at our request, provide us records 
showing the start-stop times by date for each period the equipment was 
used.
    (f) The total production (cartons) to be counted for each unit will 
include all harvested production marketed as fresh packed fruit and all 
appraised production determined to be marketable as fresh packed fruit.
    (1) Any production will be considered marketed or marketable as 
fresh packed fruit unless, due to insurable causes, such production was 
not marketed or marketable as fresh packed fruit.
    (2) In the absence of acceptable records to determine the 
disposition of harvested citrus, an amount of citrus equal to the 
guarantee will be treated as production to count.
    (3) Appraised production to be counted will include:
    (i) Unharvested production, and potential production lost due to 
uninsured causes and failure to follow recognized good citrus grove 
practices;
    (ii) Not less than the guarantee for any acreage which is abandoned, 
damaged solely by an uninsured cause or destroyed by you without our 
consent.
    (4) Any appraisal we have made on insured acreage will be considered 
production to count unless such appraised production is:
    (i) Harvested; or
    (ii) Further damaged by an insured cause and reappraised by us.
    (5) Citrus which cannot be marketed due to insurable causes will not 
be considered production.
    (6) The amount of production of any unharvested citrus may be 
determined on the basis of field appraisals conducted after the end of 
the insurance period.
    (7) If you elect to exclude hail and fire as insured causes of loss 
and the citrus is damaged by hail or fire, appraisals will be made in 
accordance with Form FCI-78, ``Request to Exclude Hail and Fire.''
    (g) You must not abandon any acreage to us.
    (h) You may not sue us unless you have complied with all policy 
provisions. If a claim is denied, you may sue us in the United States 
District Court under the provisions of 7 U.S.C. 1508(c). You must bring 
suit within 12 months of the date notice of denial is received by you.
    (i) We have a policy for paying your indemnity within 30 days of our 
approval of your claim, or entry of a final judgment against us. We 
will, in no instance, be liable for the payment of damages, attorney's 
fees, or other charges in connection with any claim for indemnity, 
whether we approve or disapprove such claim. We will, however, pay 
simple interest computed on the net indemnity ultimately found to be due 
by us or by a final judgment from and including the 61st day after the 
date you sign, date, and submit to us the properly completed claim for 
indemnity form, if the reason for our failure to timely pay is not due 
to your failure to provide information or other material necessary for 
the computation or payment of the indemnity.
    The interest rate will be that established by the Secretary of the 
Treasury under Section 12 of the Contract Disputes Act of 1978 (41 
U.S.C. 611), and published in the Federal Register semiannually on or 
about January 1 and July 1. The interest rate to be paid on any 
indemnity will vary with the rate announced by the Secretary of the 
Treasury.

[[Page 430]]

    (j) If you die, disappear, or are judicially declared incompetent, 
or if you are an entity other than an individual and such entity is 
dissolved after the date insurance attaches for any crop year, any 
indemnity will be paid to the person determined to be beneficially 
entitled thereto.
    (k) If you have other fire insurance, fire damage occurs during the 
insurance period, and you have not elected to exclude fire insurance 
from this policy, we will be liable for loss due to fire only for the 
smaller of the amount:
    (1) Of indemnity determined pursuant to this contract without regard 
to any other insurance; or
    (2) By which the loss from fire exceeds the indemnity paid or 
payable under such other insurance.
    For the purpose of this section, the amount of loss from fire will 
be the difference between the fair market value of the production on the 
unit before the fire and after the fire.

                        10. Concealment or Fraud

    We may void the contract on all crops insured without affecting your 
liability for premiums or waiving any right, including the right to 
collect any amount due us if, at any time, you have concealed or 
misrepresented any material fact or committed any fraud relating to the 
contract. Such voidance will be effective as of the beginning of the 
crop year with respect to which such act or omission occurred.

           11. Transfer of Right to Indemnity on Insured Share

    If you transfer any part of your share during the crop year, you may 
transfer your right to an indemnity. The transfer must be on our form 
and approved by us. We may collect the premium from either you or your 
transferee or both. The transferee will have all rights and 
responsibilities under the contract.

                       12. Assignment of Indemnity

    You may assign to another party your right to an indemnity for the 
crop year, only on our form and with our approval. The assignee will 
have the right to submit the loss notices and forms required by the 
contract.

         13. Subrogation. (Recovery of Loss From a Third Party)

    Because you may be able to recover all or part of your loss from 
someone other than us, you must do all you can to preserve any such 
right. If we pay you for your loss, then your right of recovery will at 
our option belong to us. If we recover more than we paid you plus our 
expenses, the excess will be paid to you.

                     14. Records and Access To Grove

    You must keep, for 3 years after the time of loss, records of the 
harvesting, storage, shipment, sale, or other disposition of all citrus 
produced on each unit including separate records showing the same 
information for production from any uninsured acreage. Failure to keep 
and maintain such records may, at our option, result in cancellation of 
the contract prior to the crop year to which the records apply, 
assignment of production to units by us, or a determination that no 
indemnity is due. Any person designated by us will have access to such 
records and the grove for purposes related to the contract.

                   15. Life of Contract: Cancellation

    (a) This contract will be in effect for the crop years 1992, 1993 
and 1994, and may not be canceled by you.
    (b) If you die or are judicially declared incompetent, or if you are 
an entity other than an individual and such entity is dissolved, the 
contract will continue in force through the end of the insurance period 
(1994 crop year).

                          16. Meaning of Terms

    For the purposes of California citrus crop insurance:
    (a) Actuarial table--means the forms and related material for the 
crop year approved by us and which show the coverage levels, premium 
rates, prices for computing indemnities, practices, insurable and 
uninsurable acreage, and related information regarding citrus insurance 
in the county.
    (b) Carton--as to each insured citrus type, means the standard 
container for marketing fresh packed fruit as shown below by citrus 
type. In the absence of marketing records on such a carton basis, 
production will be converted to cartons on the basis of the following 
average net pounds of packed fruit in a standard packed carton:

------------------------------------------------------------------------
        Container Size                 Types of Fruit            Pounds 
------------------------------------------------------------------------
Container 58................  Navel oranges, Valencia                38
                                oranges & Sweet oranges.                
Container 58................  Lemons........................         40
Container 59................  Grapefruit....................         32
Container 63................  Tangerines (including                  25
                                Tangelos) & Mandarin oranges.           
------------------------------------------------------------------------


[[Page 431]]

    (c) Contiguous land--means land which is touching at any point, 
except that land which is separated by only a public or private right-
of-way will be considered contiguous.
    (d) County--means the county shown on the application and any 
additional land located in a local producing area bordering on the 
county as shown by the actuarial table.
    (e) Crop year--means the period beginning with the date insurance 
attaches to the citrus crop and extending through normal harvest time, 
and will be designated by the calendar year following the year in which 
the bloom is normally set.
    (f) Direct Mediterranean fruit fly damage--means the actual physical 
damage to the citrus on the unit which causes such citrus to be 
unmarketable and will not include unmarketability of such citrus as a 
direct result of a quarantine, boycott, or refusal to accept the citrus 
by any entity without regard to actual physical damage to such citrus.
    (g) Harvest--means the severance of mature citrus from the tree 
either by pulling, picking, or by mechanical or chemical means.
    (h) Insurable acreage--means the land classified as insurable by us 
and shown as such by the actuarial table.
    (i) Insured--means the person who submitted the application accepted 
by us.
    (j) Person--means an individual, partnership, association, 
corporation, estate, trust, or other business enterprise or legal 
entity, and wherever applicable, a State, a political subdivision of a 
State, or any agency thereof.
    (k) Service office--means the office servicing your contract as 
shown on the application for insurance or such other approved office as 
may be selected by you or designated by us.
    (l) Tenant--means a person who rents land from another person for a 
share of the citrus or a share of the proceeds therefrom.
    (m) Unit--means all insurable acreage in the county of any one of 
the citrus types referred to in section 2 of this policy, located on 
contiguous land on the date insurance attaches for the crop year: (1) In 
which you have a 100 percent share; or
    (2) Which is owned by one entity and operated by another entity on a 
share basis.
    Land rented for cash, a fixed commodity payment, or any 
consideration other than a share in the citrus on such land will be 
considered as owned by the lessee. Land which would otherwise be one 
unit may be divided according to applicable guidelines on file in your 
service office. Units will be determined when the acreage is reported. 
Errors in reporting units may be corrected by us to conform to 
applicable guidelines when adjusting a loss. We may consider any acreage 
and share thereof reported by or for your spouse or child or any member 
of your household to be your bona fide share or the bona fide share of 
any other person having an interest therein.

                        17. Descriptive Headings

    The descriptive headings of the various policy terms and conditions 
are formulated for convenience only and are not intended to affect the 
construction or meaning of any of the provisions of the contract.

                           18. Determinations

    All determinations required by the policy will be made by us. If you 
disagree with our determinations, you may obtain reconsideration of or 
appeal those determinations in accordance with Appeal Regulations (7 CFR 
400, Subpart J).

                               19. Notices

    All notices required to be given by you must be in writing and 
received by your service office within the designated time unless 
othewise provided by the notice requirement. Notices required to be 
given immediately may be by telephone or in person and confirmed in 
writing. Time of the notice will be determined by the time of our 
receipt of the written notice.

[[Page 433]]



   CHAPTER V--AGRICULTURAL RESEARCH SERVICE, DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
Part                                                                Page
500             Conduct on U.S. National Arboretum property.         434
501             Conduct on U.S. Meat Animal Research Center, 
                    Clay Center, Nebraska...................         435
502             Conduct on Beltsville Agriculture Research 
                    Center Property, Beltsville, Maryland...         438
503             Conduct on Plum Island Animal Disease Center         440
504             User fees...................................         442
510             Public information..........................         443
520             Procedures for implementing National 
                    Environmental Policy Act................         443

[[Page 434]]



PART 500--CONDUCT ON U.S. NATIONAL ARBORETUM PROPERTY--Table of Contents




Sec.
500.1  General.
500.2  Recording presence.
500.3  Preservation of property.
500.4  Conformity with signs and emergency directions.
500.5  Nuisances.
500.6  Gambling.
500.7  Intoxicating beverages and narcotics.
500.8  Soliciting, vending, debt collection, and distribution of 
          handbills.
500.9  Photographs for news, advertising, or commercial purposes.
500.10  Pets.
500.11  Vehicular and pedestrian traffic.
500.12  Weapons and explosives.
500.13  Nondiscrimination.
500.14  Exceptions.
500.15  Penalties and other law.

    Authority: Secs. 2, 4, 62 Stat. 281; sec. 103, 63 Stat. 380; sec. 
205(d), 63 Stat. 389; 40 U.S.C. 318a, 318c, 486(d), 753, 34 FR 6406; 34 
FR 7389.

    Source: 34 FR 12939, Aug. 9, 1969, unless otherwise noted. 
Redesignated at 36 FR 22807, Dec. 1, 1971.



Sec. 500.1  General.

    The rules and regulations in this part apply to the buildings and 
grounds of the U.S. National Arboretum, Washington, D.C., and to all 
persons entering in or on such property. The Administrator, General 
Services Administration, has delegated to the Secretary of Agriculture, 
with authority to redelegate, the authority to make all the needful 
rules and regulations for the protection of the buildings and grounds of 
the U.S. National Arboretum (34 FR 6406). The Secretary of Agriculture 
has in turn delegated such authority to the Administrator, Agricultural 
Research Service (34 FR 7389). The rules and regulations in this part 
are issued pursuant to such delegations.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.2  Recording presence.

    Admission to the U.S. National Arboretum during periods when it is 
closed to the public will be limited to authorized individuals who may 
be required to sign the register and/or display identification documents 
when requested by the Security Staff, or other authorized individuals.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.3   Preservation of property.

    It is unlawful to willfully destroy, damage, or remove property or 
any part thereof.



Sec. 500.4  Conformity with signs and emergency directions.

    Persons in and on property of the U.S. National Arboretum shall 
comply with official signs of prohibitory or director nature and with 
the directions of authorized individuals.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.5   Nuisances.

    The use of loud, abusive, or otherwise improper language, 
unwarranted loitering, sleeping, or assembly, the creation of any hazard 
to persons or things, improper disposal of rubbish, spitting, prurient 
prying, the commission of any obscene or indecent act, or any other 
unseemly or disorderly conduct, throwing articles of any kind from a 
building, and climbing upon any part of a building, is prohibited.



Sec. 500.6  Gambling.

    Participating in games for money or other personal property, or the 
operation of gambling devices, the conduct of a lottery or pool, or the 
selling or purchasing of numbers tickets, in or on U.S. National 
Arboretum property, is prohibited.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.7  Intoxicating beverages and narcotics.

    Entering U.S. National Arboretum property or the operation of a 
motor vehicle thereon, by a person under the influence of intoxicating 
beverages or narcotic drug, or the consumption of such beverages or the 
use of such drug in or on U.S. National Arboretum property, is 
prohibited.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.8  Soliciting, vending, debt collection, and distribution of handbills.

    The soliciting of contributions, display or distribution of 
commercial advertising and the collection of private debts, is 
prohibited. This section does not apply to national or local drives for 
funds for welfare, health, and other

[[Page 435]]

purposes sponsored or approved by the Agricultural Research Service, 
concessions, or personal notices posted by employees on authorized 
bulletin boards. Distribution of material such as pamphlets, handbills, 
and flyers is prohibited without prior approval of the Director, U.S. 
National Arboretum.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.9  Photographs for news, advertising, or commercial purposes.

    Photographs for news purposes may be taken at the U.S. National 
Arboretum without prior permission. Photographs for advertising and 
commercial purposes may be taken, but only with the prior approval of 
the Director, U.S. National Arboretum and fees may be charged.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.10  Pets.

    Pets, except assistance trained animals, brought upon U.S. National 
Arboretum property must be kept on leash and have proper vaccinations. 
The abandonment of unwanted animals on USNA grounds is prohibited.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.11  Vehicular and pedestrian traffic.

    (a) Drivers of all vehicles in or on U.S. National Arboretum 
property shall drive in a careful and safe manner at all times and shall 
comply with the signals and directions of the Security Staff and all 
posted traffic signs;
    (b) The blocking of entrances, driveways, walks, loading platforms, 
or fire hydrants in or on U.S. National Arboretum property is 
prohibited;
    (c) Except in emergencies, parking in or on U.S. National Arboretum 
property in other than designated areas is not allowed without a permit. 
Parking without authority, parking in unauthorized locations or in 
locations reserved for other persons, or contrary to the direction of 
posted signs is prohibited. This section may be supplemented from time 
to time, by the issuance and posting of specific traffic directives as 
may be required, and when so issued and posted such directives shall 
have the same force and effect as if incorporated in this part.

[61 FR 65302, Dec. 11, 1996]



Sec. 500.12  Weapons and explosives.

    No person while in or on U.S. National Arboretum property shall 
carry firearms, other dangerous or deadly weapons, or explosives, either 
openly or concealed, except for official purposes.

[61 FR 65303, Dec. 11, 1996]



Sec. 500.13  Nondiscrimination.

    There shall be no discrimination by segregation or otherwise against 
any person or persons because of race, religion, color, age, sex, 
disability or national origin, in furnishing, or by refusing to furnish 
to such person or persons the use of any facility of a public nature, 
including all services, privileges, accommodations, and activities 
provided thereby on U.S. National Arboretum property.

[61 FR 65303, Dec. 11, 1996]



Sec. 500.14   Exceptions.

    The Administrator, Agricultural Research Service, may in individual 
cases make prior, written exceptions to the rules and regulations in 
this part if he determines it to be not adverse to the public interest.



Sec. 500.15   Penalties and other law.

    Whoever shall be found guilty of violating the rules and regulations 
in this part is subject to fine of not more than $50 or imprisonment of 
not more than 30 days, or both (see 40 U.S.C. 318c). Nothing contained 
in the rules and regulations in this part shall be construed as 
abrogating or authorizing the abrogation of any other regulations or any 
Federal law or any laws and regulations of the District of Columbia 
which may be applicable.



PART 501--CONDUCT ON U.S. MEAT ANIMAL RESEARCH CENTER, CLAY CENTER, NEBRASKA--Table of Contents




Sec.
501.1  General.
501.2  Admission.
501.3  Preservation of property.

[[Page 436]]

501.4  Conformity with signs and emergency directions.
501.5  Nuisances.
501.6  Gambling.
501.7  Intoxicating beverages and narcotics.
501.8  Soliciting, vending, debt collection, and distribution of 
          handbills.
501.9  Photographs for news, advertising, or commercial purposes.
501.10  Pets.
501.11  Mobile equipment and pedestrian traffic.
501.12  Weapons and explosives.
501.13  Nondiscrimination.
501.14  Non-Federal law enforcement.
501.15  Exceptions.
501.16  Penalties and other law.

    Authority: Secs. 2, 4, 62 Stat. 281; 40 U.S.C. 318(a), (c); sec. 
103, 63 Stat. 380; 40 U.S.C. 753; sec. 205(d), 63 Stat. 389; 40 U.S.C. 
486(d); 36 FR 1293 and 36 FR 21706.

    Source: 37 FR 2423, Feb. 1, 1972, unless otherwise noted.



Sec. 501.1   General.

    The rules and regulations in this part apply to all property of or 
under the charge or control of the U.S. Meat Animal Research Center, 
Clay Center, Nebr. (hereinafter referred to as the Research Center), and 
to all persons entering in or on such property. The Administrator, 
General Services Administration, has delegated to the Secretary of 
Agriculture, with authority to redelegate, the authority to make all the 
needful rules and regulations for the protection of the Research Center 
(36 FR 1293). The Secretary of Agriculture has delegated this authority 
to the Director of Science and Education (36 FR 21706) who in turn has 
delegated such authority to the Administrator, Agricultural Research 
Service (36 FR 21706). The rules and regulations in this part are issued 
pursuant to such delegations. It is the responsibility of occupant or 
cooperating agency to require observance of these rules and regulations.



Sec. 501.2   Admission.

    Admission to the Research Center during ``off duty'' hours shall be 
restricted to the main arteries and any deviation therefrom by 
individuals shall be limited to authorized individuals who may be 
required to sign a register and display identification documents when 
requested by a guard or other authorized individuals. ``Off duty'' hours 
will be posted at the Research Center. Admission during ``duty'' hours 
when the Center is closed to the public in emergency situations will be 
limited to authorized individuals who may be required to sign a register 
and display identification documents when requested by a guard or other 
authorized individual.



Sec. 501.3   Preservation of property.

    It is unlawful to willfully destroy, damage, or remove property or 
any part thereof. Hunting, fishing, motorcycling, using snowmobiles, and 
other disturbances or encroachment activities are prohibited except for 
official purposes.



Sec. 501.4   Conformity with signs and emergency directions.

    Persons in and on property of the Research Center shall comply with 
official signs of a prohibitory or directory nature, and with the 
directions of authorized individuals.



Sec. 501.5   Nuisances.

    The use of loud, abusive, or otherwise improper language, 
unwarranted loitering, sleeping, or assembly, the creation of any hazard 
to persons or things, improper disposal of rubbish, spitting, prurient 
prying, the commission of any obscene or indecent act, or any other 
unseemly or disorderly conduct, throwing articles of any kind from a 
building, or climbing upon any part of a building is prohibited. 
Further, conduct which obstructs the usual use of entrances, foyers, 
corridors, offices, elevators, stairways and parking lots, or which 
otherwise tends to impede or disturb Center employees in the performance 
of their duties or which otherwise impedes the general public from 
obtaining the administrative services provided by the Research Center is 
prohibited.



Sec. 501.6   Gambling.

    Participating in games for money or other personal property, or the 
operation of gambling devices, the conduct of a lottery or pool, or the 
selling or purchasing of numbers tickets, in or on Research Center 
property, is prohibited.

[[Page 437]]



Sec. 501.7   Intoxicating beverages and narcotics.

    Entering Research Center property or the operating of a motor 
vehicle thereon, by a person under the influence of intoxicating 
beverages or narcotic drug, hallucinogen, marijuana, barbiturate, or 
amphetamine (unless prescribed by a physician) or the consumption of 
such beverages, or the use of any such drug or substance in or on the 
Research Center property, is prohibited.



Sec. 501.8   Soliciting, vending, debt collection, and distribution of handbills.

    The soliciting of alms and contributions, commercial soliciting and 
vending of all kinds, the display or distribution of commercial 
advertising, or the collecting of private debts, in or on Research 
Center property, is prohibited. This section does not apply to national 
or local drives for funds for welfare, health, and other purposes 
sponsored or approved by the Agricultural Research Service, concessions, 
or personal notices posted by employees on authorized bulletin boards. 
Distribution of material such as pamphlets, handbills, and flyers or the 
posting of mateirals on bulletin boards or elsewhere, is prohibited 
without prior approval of authorized individuals.



Sec. 501.9   Photographs for news, advertising, or commercial purposes.

    Except where security regulations apply, or a Federal court order or 
rules prohibit it, photographs for news purposes may be taken in 
entrances, lobbies, foyers or auditoriums when used for public meetings 
without prior permission. Photographs for advertising and commercial 
purposes may be taken only with the prior written permission of the 
Director, Research Center. Photographs for news, advertising, or 
commercial purposes may be taken in space or areas occupied by a 
cooperator only with the consent of the cooperator concerned and the 
Director, Research Center.



Sec. 501.10   Pets.

    Animals shall be brought or allowed, as applicable, upon the 
Research Center only with the prior written approval of the Director, 
Research Center, except seeing eye dogs may be brought to the reception 
area serving the offices of the Director, Research Center, without prior 
approval.



Sec. 501.11   Mobile equipment and pedestrian traffic.

    (a) Drivers, operators, or pilots of all equipment whether or not 
motorized in or on Research Center property, or within the scope of 
Research Center activity, shall operate in a careful and safe manner at 
all times and shall comply with the signals and directions of guards, 
special policemen, or other authorized individuals, and all posted 
traffic signs;
    (b) The blocking of entrances, driveways, walks, railways, runways, 
loading platforms, or fire hydrants in or on Research Center property is 
prohibited;
    (c) Except in emergencies, parking or landing in or on Research 
Center property in other than designated areas is not allowed without a 
permit. Parking without authority, parking in unauthorized locations or 
in locations reserved for other persons, or parking continuously in 
excess of ten hours without permission, or contrary to the direction of 
posted signs is prohibited. This section may be supplemented from time 
to time by the issuance and posting of specific traffic directives as 
may be required, and when so issued and posted such directives shall 
have the same force and effect as if made a part hereof;
    (d) The operation of unlicensed gasoline powered vehicles is 
prohibited.



Sec. 501.12   Weapons and explosives.

    No person while in or on Research Center property shall carry 
firearms, bows and arrows, darts, other dangerous or deadly weapons, or 
explosives, either openly or concealed, except as officially authorized, 
for official purposes.



Sec. 501.13   Nondiscrimination.

    There shall be no discrimination by segregation or otherwise against 
any person or persons because of race, sex, religion, color, or national 
origin, in furnishing, or by refusing to furnish to such person or 
persons the use of any facility of a public nature, including

[[Page 438]]

all service, privileges, accommodations, and activities provided thereby 
on Research Center property.



Sec. 501.14   Non-Federal law enforcement.

    Research Center special policemen may be deputized by State or local 
law enforcement agencies to exercise police power on property outside 
the Research Center. With the consent of any State or local law 
enforcement agency, the facilities or services of such State or local 
law enforcement agency may be utilized by the Research Center.



Sec. 501.15   Exceptions.

    The Administrator, Agricultural Research Service, may in individual 
cases make prior, written exceptions to the rules and regulations in 
this part if he determines it to be not adverse to the public interest.



Sec. 501.16   Penalties and other law.

    Whoever shall be found guilty of violating the rules and regulations 
in this part where the United States has and exercises exclusive or 
concurrent legislative jurisdiction, is subject to fine of not more than 
$50 or imprisonment or not more than 30 days, or both (see 40 U.S.C. 
318c). Nothing contained in the rules, regulations, or penalties in this 
part shall be construed as abrogating or authorizing the abrogation of 
any other rules, regulations, penalties, or any Federal law, or any 
State and local laws and regulations which may be applicable.



PART 502--CONDUCT ON BELTSVILLE AGRICULTURE RESEARCH CENTER PROPERTY, BELTSVILLE, MARYLAND--Table of Contents




Sec.
502.1  General.
502.2  Admission.
502.3  Preservation of property.
502.4  Conformity with signs and emergency directions.
502.5  Nuisances.
502.6  Hunting, fishing, camping, horseback riding.
502.7  Gambling.
502.8  Intoxicating beverages and narcotics.
502.9  Soliciting, vending, debt collection, and distribution of 
          handbills.
502.10  Photographs by visitors or for news, advertising, or commercial 
          purposes.
502.11  Pets.
502.12  Vehicular and pedestrian traffic.
502.13  Weapons and explosives.
502.14  Nondiscrimination.
502.15  Exceptions.
502.16  Penalties and other law.

    Authority: Secs. 2, 4, 62 Stat. 281; 40 U.S.C. 318 (a), (c); sec. 
103, 63 Stat. 380; 40 U.S.C. 753; sec. 205(d), 63 Stat. 389; 40 U.S.C. 
486(d); 36 FR 18440 and 60 FR 56392.

    Source: 37 FR 2424, Feb. 1, 1972, unless otherwise noted.



Sec. 502.1  General.

    The rules and regulations in this part apply to the buildings and 
grounds of the Beltsville Agricultural Research Center (BARC), 
Beltsville, MD, and to any persons entering in or on such property. The 
Administrator, General Services Administration, has delegated to the 
Secretary of Agriculture, with authority to redelegate, the authority to 
make all the needful rules and regulations for the protection of the 
buildings, grounds, equipment, and experimental plants and animals of 
BARC (36 FR 18440). The Secretary of Agriculture has delegated this 
authority to the Under Secretary for Research, Education, and Economics 
(60 FR 56392) who in turn has delegated such authority to the 
Administrator, Agricultural Research Service (60 FR 56392). The rules 
and regulations in this part are issued pursuant to such delegations.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.2  Admission.

    Admission to BARC during ``off duty'' hours shall be restricted to 
the main arteries and any deviation therefrom by individuals shall be 
limited to authorized individuals who may be required to sign a register 
and display identification documents when requested by BARC Security or 
other authorized individual. ``Off duty'' hours will be posted at BARC. 
Admission during ``duty'' hours when BARC is closed to the public in 
emergency situations will be limited to authorized individuals who may 
be required to sign a register and display identification documents when 
requested by BARC Security or other authorized individual.

[61 FR 51211, Oct. 1, 1996]

[[Page 439]]



Sec. 502.3   Preservation of property.

    It is unlawful to willfully destroy, damage, or remove property or 
any part thereof.



Sec. 502.4  Conformity with signs and emergency directions.

    Persons in and on property of BARC shall comply with official signs 
of a prohibitory or directory nature, and with the directions of 
authorized individuals.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.5  Nuisances.

    The use of loud, abusive or otherwise improper language, unwarranted 
loitering, sleeping, or assembly, the creating of any hazard to persons 
or things, improper disposal of rubbish, spitting, prurient prying, the 
commission of any obscene or indecent act, or any other unseemly or 
disorderly conduct, throwing articles of any kind from a building, or 
climbing upon any part of a building is prohibited. Further, conduct 
which obstructs the usual use of entrances, foyers, corridors, office 
elevators, stairways and parking lots, or which otherwise tends to 
impede or disturb BARC employees in the performance of their duties or 
which otherwise impedes the general public from obtaining the 
administrative services provided by BARC is prohibited.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.6  Hunting, fishing, camping, horseback riding.

    The use of BARC grounds for any form of hunting, fishing, camping, 
or horseback riding is prohibited. Further, the use of these grounds for 
unauthorized picnicking is also prohibited.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.7  Gambling.

    Participating in games for money or other personal property, or the 
operation of gambling devices, the conduct of a lottery or pool, or the 
selling or purchasing of numbers tickets, in or on BARC property, is 
prohibited.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.8  Intoxicating beverages and narcotics.

    Entering BARC property or the operation of a motor vehicle thereon, 
by a person under the influence of intoxicating beverages or narcotic 
drug, hallucinogen, marihuana, barbiturate, or amphetamine (unless 
prescribed by a physician) or the consumption of such beverages, or the 
use of any such drug or substance in or on BARC property, is prohibited.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.9  Soliciting, vending, debt collection, and distribution of handbills.

    The soliciting of alms and contributions, commercial soliciting and 
vending of all kinds or the display or distribution of commercial 
advertising, or the collecting of private debts, in or on BARC property, 
is prohibited. This section does not apply to national or local drives 
for funds for welfare, health, and other purposes sponsored or approved 
by the Agricultural Research Service, concessions, or personal notices 
posted by employees on authorized bulletin boards. Distribution of 
material such as pamphlets, handbills, and flyers or the posting of 
materials on bulletin boards or elsewhere is prohibited without prior 
approval of the Director, Beltsville Area.

[61 FR 51211, Oct. 1, 1996]



Sec. 502.10  Photographs by visitors or for news, advertising, or commercial purposes.

    Photographs may be taken by visitors or for news purposes without 
prior permission. Photographs for advertising and commercial purposes 
may be taken at BARC only with the prior written approval of the 
Director, Beltsville Area.

[61 FR 51212, Oct. 1, 1996]



Sec. 502.11  Pets.

    Pets, except assistance trained animals, brought upon BARC property 
must be kept on a leash and have proper vaccinations. Pets that are the 
property of employees residing on BARC must be up to date on their 
vaccinations, in accordance with State or local laws, and be kept on a 
leash or similarly restrained. The abandonment of

[[Page 440]]

unwanted animals on BARC grounds is prohibited.

[61 FR 51212, Oct. 1, 1996]



Sec. 502.12  Vehicular and pedestrian traffic.

    (a) Drivers of all vehicles whether or not motorized in or on BARC 
property shall drive in a careful and safe manner at all times and shall 
comply with the signals and directions of the security staff and all 
posted traffic signs;
    (b) The blocking of entrances, driveways, walks, loading platforms, 
or fire hydrants in or on BARC property is prohibited;
    (c) Except in emergencies, parking in or on BARC property in other 
than designated areas is not allowed without a permit. Parking without 
authority, parking in unauthorized locations or in locations reserved 
for other persons, or contrary to the direction of posted signs is 
prohibited. This section may be supplemented from time to time, by the 
issuance and posting of specific traffic directives as may be required, 
and when so issued and posted such directives shall have the same force 
and effect as if made a part hereof.
    (d) The operation of unlicensed gasoline powered vehicles is 
prohibited.

[37 FR 2424, Feb. 1, 1972, as amended at 61 FR 51212, Oct. 1, 1996]



Sec. 502.13  Weapons and explosives.

    No person while in or on BARC property shall carry firearms, other 
dangerous or deadly weapons, or explosives, either openly or concealed, 
except as officially authorized for official purposes.

[61 FR 51212, Oct. 1, 1996]



Sec. 502.14  Nondiscrimination.

    There shall be no discrimination by segregation or otherwise against 
any person or persons because of race, religion, color, sex, age, 
disability or national origin, in furnishing, or by refusing to furnish 
to such person or persons the use of any facility of a public nature, 
including all services, privileges, accommodations, and activities 
provided thereby on BARC property.

[61 FR 51212, Oct. 1, 1996]



Sec. 502.15  Exceptions.

    The Administrator, Agricultural Research Service, may in individual 
cases, make prior, written exceptions to the rules and regulations in 
this part, if a determination is made that the exception is not adverse 
to the public interest.

[61 FR 51212, Oct. 1, 1996]



Sec. 502.16   Penalties and other law.

    Whoever shall be found guilty of violating the rules and regulations 
in this part is subject to fine of not more than $50 or imprisonment of 
not more than 30 days, or both (see 40 U.S.C. 318c). Nothing contained 
in the rules and regulations in this part shall be construed as 
abrogating or authorizing the abrogation of any other regulations or any 
Federal law or any laws and regulations of the State of Maryland.

[37 FR 2424, Feb. 1, 1972. Redesignated at 61 FR 51212, Oct. 1, 1996]



PART 503--CONDUCT ON PLUM ISLAND ANIMAL DISEASE CENTER--Table of Contents




Sec.
503.1  General.
503.2  Admission.
503.3  Preservation of property.
503.4  Conformity with Plum Island regulations.
503.5  Nuisances.
503.6  Camping, boating, and fishing.
503.7  Gambling.
503.8  Intoxicating beverages and narcotics.
503.9  Soliciting, vending, debt collection, and distribution of 
          handbills.
503.10  Photographs for news, advertising, commercial purposes or for 
          personal use.
503.11  Pets.
503.12  Vehicular and pedestrian traffic.
503.13  Weapons and explosives.
503.14  Nondiscrimination.
503.15  Exceptions.
503.16  Penalties and other law.

    Authority: Secs. 2, 4, 62 Stat. 281; 40 U.S.C. 318(a), (c); sec. 
103, 63 Stat. 380; 40 U.S.C. 486(d); 38 FR 31165 and 38 FR 31166.

    Source: 39 FR 36563, Oct. 11, 1974, unless otherwise noted.



Sec. 503.1   General.

    The rules and regulations in this part cover the buildings, grounds, 
and vessels of the Plum Island Animal Disease

[[Page 441]]

Center (PIADC), United States Department of Agriculture, Orient Point, 
New York, and apply to all persons entering in or on such properties 
both on the mainland, Orient Point, New York, and on Plum Island. The 
Administrator, General Services Administration, has delegated to the 
Secretary of Agriculture authority to make all needful rules and 
regulations, and to annex to such rules and regulations such reasonable 
penalties (not to exceed those prescribed in 40 U.S.C. 318c) as will 
ensure their enforcement for the protection of persons and property at 
Plum Island, New York. The Secretary of Agriculture has redelegated this 
authority to the Assistant Secretary for Conservation, Research, and 
Education, who in turn has delegated it to the Administrator, 
Agricultural Research Service (38 FR 31166).



Sec. 503.2   Admission.

    No person will be admitted to PIADC, into animal holding areas, 
specified restricted areas, laboratory compounds, or into laboratories 
without having in his or her possession a specific approved pass or 
permit authorized by the Director, PIADC, to enter such areas. The pass 
must be presented at the request of the guard or other authorized PIADC 
safety representative.



Sec. 503.3   Preservation of property.

    The willful destruction, damage to or removal of property or any 
part thereof from the Government-owned buildings, grounds, and vessels 
in or on the PIADC is prohibited.



Sec. 503.4   Conformity with Plum Island regulations.

    Persons in and on PIADC shall at all times comply with official 
signs of a prohibitory or directory nature and with the directions of 
law enforcement or other authorized officials.



Sec. 503.5   Nuisances.

    The use of loud, abusive or otherwise improper language, unwarranted 
loitering, sleeping or assembly, the creation of any hazard to persons 
or things, improper disposal of rubbish, spitting, prurient prying, or 
the commission of any obscene or indecent act in or on the PIADC is 
prohibited.



Sec. 503.6   Camping, boating, and fishing.

    The use of PIADC as a recreational area for camping, boating, 
fishing, and picnicking is prohibited. The use of Plum Island beaches 
for unauthorized landings and sightseeing is prohibited.



Sec. 503.7   Gambling.

    Participating in games for money or other personal property, or the 
operation of gambling devices, the conduct of a lottery or pool, or the 
selling or purchasing of numbers tickets in or on the PIADC is 
prohibited.



Sec. 503.8   Intoxicating beverages and narcotics.

    Entering the PIADC or operating a motor vehicle thereon by a person 
under the influence of intoxicating beverages or narcotic drugs, or the 
consumption of such beverages or the use of such drugs in or on the 
PIADC, is prohibited.



Sec. 503.9   Soliciting, vending, debt collection, and distribution of handbills.

    The soliciting of alms and contributions, commercial soliciting and 
vending of all kinds, the display or distribution of commercial 
advertising, or the collecting of private debts, in or on PIADC is 
prohibited. This section does not apply to national or local drives for 
funds for welfare, health, and other purposes, sponsored or approved by 
the PIADC, or concessions or personal notices posted by employees on 
authorized bulletin boards. Unauthorized distribution of materials such 
as pamphlets, handbills, and flyers is prohibited.



Sec. 503.10   Photographs for news, advertising, commercial purposes or for personal use.

    Photographs on the PIADC for news, advertising, commercial purposes, 
or personal use may be taken only with prior written permission of 
Director, PIADC.



Sec. 503.11   Pets.

    No pets or animals of any kind may be brought to the PIADC.

[[Page 442]]



Sec. 503.12   Vehicular and pedestrian traffic.

    Drivers of all vehicles on the PIADC Government-owned parking areas 
in PIADC shall drive in a careful and safe manner at all times and shall 
comply with the signals and directions of guards and all posted traffic 
signs. Pedestrians will also observe specific safety directives as may 
be issued and posted from time to time by the Director, PIADC, or his 
authorized representative.



Sec. 503.13   Weapons and explosives.

    No person while in or on the PIADC shall carry firearms or other 
dangerous or deadly weapons or explosives either openly or concealed, 
except when authorized to do so for official purposes by the Director, 
PIADC, or his authorized representative.



Sec. 503.14   Nondiscrimination.

    There shall be no discrimination by segregation or otherwise against 
any person or persons because of race, religion, sex, color, or national 
origin in furnishing or refusing to furnish to such person or persons 
the use of any facility of a public nature, including all services, 
privileges, accommodations and activities provided by the PIADC.



Sec. 503.15   Exceptions.

    The Director, PIADC, may, in specific cases, make prior written 
exceptions to the rules and regulations in this part if he determines it 
to be in the best interest of the Government.



Sec. 503.16   Penalties and other law.

    Whoever shall be found guilty of violating any rule or regulation in 
this part while in or on the PIADC is subject to a fine of not more than 
$50 or imprisonment of not more than 30 days, or both. (See 40 U.S.C. 
318c.) Nothing contained in these rules and regulations shall be 
construed to abrogate any other Federal laws or regulations, or any 
State and local laws and regulations, applicable to the PIADC.



PART 504--USER FEES--Table of Contents




Sec.
504.1  General statement.
504.2  Fees for deposit and requisition of microbial cultures.
504.3  Payment of fees.
504.4  Exemptions from user fee charges.
504.5  Address.

    Authority: 31 U.S.C. 9701.

    Source: 50 FR 5365, Feb. 8, 1985, unless otherwise noted.



Sec. 504.1  General statement.

    This part sets forth fees to be charged for the deposit and 
distribution of microbial patent cultures. The fees set forth in this 
part are applicable to the Agricultural Research Service (ARS) Patent 
Culture Collection, Northern Regional Research Center, Peoria, Illinois.



Sec. 504.2  Fees for deposit and requisition of microbial cultures.

    (a) Depositors of microbial cultures must pay a one-time $500 user 
fee for each culture deposited on or after November 1, 1983.
    (b) For cultures deposited on or after November 1, 1983, requesters 
must pay a $20 user fee for each culture distributed. Cultures which 
were deposited on or after November 1, 1983 have an identification 
number greater than 15,722.



Sec. 504.3  Payment of fees.

    (a) Payment of user fees must accompany a culture deposit or 
request.
    (b) Payment shall be made by check, draft, or money order payable to 
USDA, National Finance Center.



Sec. 504.4  Exemptions from user fee charges.

    (a) USDA laboratories and ARS cooperators designated by the Curator 
of the ARS Patent Culture Collection are exempt from fee assessments.
    (b) The Curator of the ARS Patent Culture Collection is delegated 
the authority to approve and revoke exemptions from fee assessments.



Sec. 504.5  Address.

    Deposits of and requests for microbial patent cultures should be 
directed to the Curator, ARS Patent Culture Collection, Northern 
Regional Research Center, USDA-ARS, 1815 N. University St., Peoria, 
Illinois 61604; (309) 685-4011.

[[Page 443]]



PART 510--PUBLIC INFORMATION--Table of Contents




Sec.
510.1  General statement.
510.2  Public inspection, copying, and indexing.
510.3  Requests for records.
510.4  Denials.
510.5  Appeals.

    Authority: 5 U.S.C. 301, 552; 7 CFR Part 1, Subpart A and Appendix A 
thereto.

    Source: 60 FR 66062, Dec. 21, 1995, unless otherwise noted.



Sec. 510.1  General statement.

    This part is issued in accordance with the regulations of the 
Secretary of Agriculture in Part 1, Subpart A of this title and Appendix 
A thereto, implementing the Freedom of Information Act (FOIA) (5 U.S.C. 
552). The Secretary's regulations, as implemented by the regulations in 
this part, govern the availability of records of the Agricultural 
Research Service (ARS) to the public.



Sec. 510.2  Public inspection, copying, and indexing.

    5 U.S.C. 552(a)(2) requires that certain materials be made available 
for public inspection and copying and that a current index of these 
materials be published quarterly or otherwise be made available. Members 
of the public may request access to such materials maintained by ARS at 
the following office: Information Staff, ARS, USDA, 6303 Ivy Lane, Room 
456, Greenbelt, MD 20770; Telephone (301) 344-2207. Office hours are 
8:00 a.m. to 4:30 p.m.



Sec. 510.3  Requests for records.

    Requests for records of ARS under 5 U.S.C. 552(a)(3) shall be made 
in accordance with Sec. 1.6 of this title and submitted to the FOIA 
Coordinator, Agricultural Research Service, USDA, 6303 Ivy Lane, Room 
456, Greenbelt, MD 20770; Telephone (301) 344-2207; Facsimile (301) 344-
2325; TDD (301) 344-2435. The FOIA Coordinator is delegated authority to 
make determinations regarding such requests in accordance with 
Sec. 1.3(a)(3) of this title.



Sec. 510.4  Denials.

    If the FOIA Coordinator determines that a requested record is exempt 
from mandatory disclosure and that discretionary release would be 
improper, the FOIA Coordinator shall give written notice of denial in 
accordance with Sec. 1.8(a) of this title.



Sec. 510.5  Appeals.

    Any person whose request is denied shall have the right to appeal 
such denial. Appeals shall be made in accordance with Sec. 1.6(e) of 
this title and should be addressed as follows: Administrator, 
Agricultural Research Service, U.S. Department of Agriculture, 
Washington, DC 20250.



PART 520--PROCEDURES FOR IMPLEMENTING NATIONAL ENVIRONMENTAL POLICY ACT--Table of Contents




Sec.
520.1  General statement.
520.2  Definition.
520.3  Policy.
520.4  Responsibilities.
520.5  Categorical exclusions.
520.6  Preparation of an Environmental Assessment (EA).
520.7  Preparation of an Environmental Impact Statement (EIS).

    Authority: National Environmental Policy Act (NEPA) as amended, 42 
U.S.C. 4321 et seq.; E.O. 11514, 34 FR 4247, as amended by E.O. 11991, 
42 FR 26927; E.O. 12144, 44 FR 11957; 5 U.S.C. 301; 40 CFR 1500-1508.

    Source: 51 FR 34191, Sept. 25, 1986, unless otherwise noted.



Sec. 520.1  General statement.

    These procedures assure that research and other activities of the 
Agricultural Research Service (ARS) comply with the intent of the 
National Environmental Policy Act of 1969 (NEPA) and appropriate 
regulations implementing this Act. These procedures incorporate and 
supplement, and are not a substitute for, CEQ regulations under 40 CFR 
parts 1500-1508, and Department of Agriculture NEPA Policies and 
Procedures under 7 CFR part 1b. ARS conducts and supports research as 
authorized by legislation to support one of the USDA goals of assuring 
adequate supplies of high quality food and fiber. Information generated 
through such research often forms the basic data needed to assess the 
impact of a new technology upon the environment.

[[Page 444]]

Large scale projects simulating commercial practices are normally 
implemented in cooperation with other agencies of the Federal or State 
Governments.



Sec. 520.2  Definition.

    Control Agents mean biological material or chemicals which are 
intended to enhance the production efficiency of an agricultural crop or 
animal such as through elimination of a pest.



Sec. 520.3  Policy.

    (a) It is ARS policy to comply with the provisions of NEPA and 
related laws and policies.
    (b) Environmental documents should be concise, written in plain 
language, and address the issues pertinent to the decision being made.
    (c) Environmental documents may be substituted or combined with 
other reports which serve to facilitate decisionmaking.
    (d) Costs of analyses and environmental documents are to be planned 
for during the budgetary process for the plan, program, or project. 
Special provisions for financing NEPA process activities which are 
unanticipated and extraordinary may be made in the Office of the 
Administrator of ARS.
    (e) ARS personnel will cooperate with other agencies, States, 
contractors, or other entities proposing to undertake activities 
involving the ARS to assure that NEPA considerations are addressed early 
in the planning process to avoid delays and conflicts as required by 40 
CFR 1501.2.
    (f) For some activities, project participants outside ARS may be 
required to provide data and documentation. When an applicant or 
contractor prepares an environmental assessment (EA) or a contractor 
prepares an environmental impact statement (EIS), the activities shall 
be carried out according to 40 CFR 1506.5.
    (g) Environmental documents, decision notices, and records of 
decision must be made available for review by the public. There shall be 
an early and open process for determining the scope of issues to be 
addressed in the environmental analysis process (40 CFR 1501.7).
    (h) The concepts of tiering to eliminate repetitive discussions 
applicable to EIS's (40 CFR Part 1502) are also applicable to EA's.
    (i) ARS personnel may adopt an existing EA or EIS when a proposed 
action is substantially the same as the action for which the existing EA 
or EIS was prepared (40 CFR 1506.3 (b)).
    (j) ARS personnel may incorporate by reference any existing 
documents in order to reduce the bulk of an EA or EIS (40 CFR 1502.21).
    (k) After prior consultation with the Council on Environmental 
Quality, ARS personnel may forego preparation of an EA or EIS in 
emergency situations (40 CFR 1506.11).



Sec. 520.4  Responsibilities.

    (a) Administrator. The Administrator is responsible for 
environmental analysis and documentation required for compliance with 
the provisions of NEPA and related laws, policies, plans, programs, and 
projects. The ARS Assistant Administrator for Cooperative Interactions 
has been delegated responsibility for the establishment of procedures 
and coordination necessary to carry out the policies and provisions of 
NEPA.
    (b) Deputy Administrators and Area Directors. The Deputy 
Administrators and Area Directors are responsible to the Administrator 
for assuring that ARS programs are in compliance with the policies and 
procedures of NEPA.



Sec. 520.5  Categorical exclusions.

    For the following categories of actions, the preparation of an EA or 
EIS is not required:
    (a) Department of Agriculture categorical exclusions (7 CFR 1b.3).
    (1) Policy development, planning and implementation which are 
related to routine activities such as personnel, organizational changes 
or similar administrative functions;
    (2) Activities which deal solely with the functions of programs, 
such as program budget proposals, disbursement, transfer or 
reprogramming of funds;
    (3) Inventories, research activities and studies, such as resource 
inventories and routine data collection when such actions are clearly 
limited in context and intensity;

[[Page 445]]

    (4) Educational and information programs and activities;
    (5) Activities which are advisory and consultative to other 
agencies, public and private entities, and
    (6) Activities related to trade representation and market 
development activities overseas.
    (b) ARS categorical exclusions. ARS actions which, based on previous 
experience, have been found to have limited scope and intensity and 
produce little or no individual or cumulative impacts to the human 
environment. Some examples are:
    (1) Repair, replacement of structural components or equipment, or 
other routine maintenance of facilities controlled in whole or in part 
by ARS;
    (2) Research programs or projects of limited size and magnitude or 
with only short-term effects on the environment. Examples are:
    (i) Research operations conducted within any laboratory, greenhouse 
or other contained facility where research practices and safeguards 
prevent environment impacts such as the release of hazardous materials 
into the environment;
    (ii) Inventories, studies or other such activities that have limited 
context and minimal intensity in terms of changes in the environment;
    (iii) Testing outside of the laboratory, such as in small isolated 
field plots, which does not involve the use of control agents requiring 
containment or a special license or a permit from a regulatory agency.
    (c) Exceptions to categorical exclusions. An environmental 
assessment shall be prepared for an activity which is normally within 
the purview of categorical exclusion if there are extraordinary 
circumstances which may cause such activity to have a significant 
environmental effect.



Sec. 520.6  Preparation of an Environmental Assessment (EA).

    (a) Actions requiring EA. The following actions would normally 
require an EA:
    (1) Programs, supported in the majority by ARS, which may assist in 
the transition of a particular technology from field evaluation stage to 
large-scale demonstration or simulated commercial phase;
    (2) Field work having an impact on the local environment such as 
earth excavation, explosives, weather modifications, or other such 
techniques; and
    (3) The testing outside the laboratory, such as small isolated field 
plots, of control agents which require containment precautions or either 
a special license or a permit from a regulatory agency.
    (b) Multiple agencies actions. If more than one Federal agency 
participates in a program activity, the EA shall be prepared by the lead 
agency as provided in 40 CFR 1501.5.
    (c) Format and conclusion. An EA can be in any format provided it 
covers in a logical and succinct fashion the information necessary for 
determining whether a proposed Federal action may have a significant 
environmental impact and thus warrant preparation of an EIS. The EA will 
contain the information required by 40 CFR 1508.9. This information will 
include brief discussions of the need for the project or other proposal, 
alternatives, environmental impacts of the proposed action and 
alternatives and a listing of agencies and persons consulted.
    (d) Decision notice. Upon completion of an EA, the responsible 
official will consider the information it contains, decide whether an 
EIS is required or that no significant environmental impact will occur, 
and will document the decision and the reasons for it. The decision and 
the EA shall be available to the public in a manner appropriate to the 
situation. If there is a finding of no significant impact, the EA may be 
combined with the decision notice.



Sec. 520.7  Preparation of an Environmental Impact Statement (EIS).

    (a) Actions requiring EIS. An EIS will normally be prepared for:
    (1) Proposals for legislation which are determined to be a major 
Federal action significantly affecting the quality of the human 
environment; or,
    (2) Other major Federal actions significantly affecting the quality 
of the human environment. In the experience of ARS, an environmental 
impact statement shall normally be required in situations when a 
research project

[[Page 446]]

has advanced beyond the laboratory and small plot testing to full scale 
field testing over a very large area and involving the introduction of 
control agents.
    (b) Notice of intent. If the responsible official recommends the 
preparation of an EIS, then the public shall be apprised of the 
decision. This notice shall be prepared according to 40 CFR 1508.22.
    (c) Draft and final EIS. The process of preparing the draft and 
final EIS, as well as the format, shall be according to 40 CFR parts 
1502-1506.
    (d) Decisionmaking and implementation. The responsible official may 
make a decision no sooner than thirty days after the notice of 
availability of the final EIS has been published in the Federal Register 
by the Environmental Protection Agency (40 CFR 1506.10). The decision 
will be documented in a Record of Decision required by 40 CFR 1502.2, 
and monitoring and mitigation activities will be implemented as required 
by 40 CFR 1505.3.

[[Page 447]]



CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF AGRICULTURE




  --------------------------------------------------------------------
  Editorial Note: Nomenclature changes to Chapter VI appear at 60 FR 
  28514, June 1, 1995.

                          SUBCHAPTER A--GENERAL
Part                                                                Page
600             Organization................................         449
601             Functions...................................         450
                  SUBCHAPTER B--CONSERVATION OPERATIONS
610             Technical assistance........................         454
611             Soil surveys................................         457
612             Snow surveys and water supply forecasts.....         459
613             Plant materials centers.....................         461
614             Appeal procedures...........................         463
                      SUBCHAPTER C--WATER RESOURCES
621             River basin investigations and surveys......         468
622             Watershed projects..........................         472
623             Emergency wetlands reserve program..........         475
624             Emergency watershed protection..............         483
                   SUBCHAPTER D--LONG TERM CONTRACTING
630             Long term contracting.......................         488
631             Great Plains Conservation Program...........         488
632             Rural Abandoned Mine Program................         492
633       [Reserved]
634             Rural Clean Water Program...................         504
                        SUBCHAPTER E--[RESERVED]
                    SUBCHAPTER F--SUPPORT ACTIVITIES
650             Compliance with NEPA........................         525
651-652   [Reserved]
653             Technical standards.........................         549
654             Operation and maintenance...................         550

[[Page 448]]

655       [Reserved]
656             Procedures for the protection of 
                    archeological and historical properties 
                    encountered in NRCS-assisted programs...         554
657             Prime and unique farmlands..................         555
658             Farmland Protection Policy Act..............         558
                       SUBCHAPTER G--MISCELLANEOUS
660       [Reserved]
661             Public information and right to privacy.....         566
662-699   [Reserved]

[[Page 449]]



                          SUBCHAPTER A--GENERAL





PART 600--ORGANIZATION--Table of Contents




Sec.
600.1  General.
600.2  National headquarters.
600.3  National technical centers.
600.4  State offices.
600.5  Area offices.
600.6  Field offices.
600.7  Other field offices.
600.8  Plant materials centers.

    Authority: 5 U.S.C. 552.

    Source: 47 FR 14683, Apr. 6, 1982, unless otherwise noted.



Sec. 600.1  General.

    (a) The Natural Resources Conservation Service (NRCS) was 
established by the Soil Conservation Act of 1935 (Pub. L. 74-46, 49 
Stat. 163 (16 U.S.C. 590 (a-f))) to provide for the protection of land 
resources against soil erosion and for other related purposes. 
Subsequent legislation has increased and broadened the NRCS mission. The 
NRCS organization consists of a National Headquarters located in 
Washington, D.C., 4 national technical centers, 50 state offices and an 
equivalent office in the Caribbean Area, approximately 3300 area and 
field offices, approximately 285 specialized other offices, and 20 plant 
materials centers. Area and field offices provide assistance to soil and 
water and other types of conservation districts. Most counties in the 
states, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands are 
served by a soil and water or other type of conservation district. Other 
specialized offices serve local public sponsored projects and certain 
NRCS soil survey operations.
    (b) NRCS is responsible for developing and carrying out a national 
program of conservation of soil, water, and related resources. Programs 
administered by NRCS include basic soil and water conservation, 
watershed protection, flood prevention, cooperative river basin surveys 
and investigations, Great Plains conservation, resource conservation and 
development, and others as assigned by the Secretary of Agriculture.



Sec. 600.2  National headquarters.

    (a) Chief. The Chief, with the assistance of the Associate Chief, is 
responsible for the development of rules, policies, and procedures and 
the general direction and supervision of the programs assigned to NRCS.
    (b) Deputy Chiefs. Four deputy chiefs assist the Chief as follows:
    (1) Deputy Chief for Administration. The Deputy Chief for 
Administration, with the assistance of an Associate Deputy Chief, is 
responsible for activities in administrative services, personnel, 
financial management, information resources management, and equal 
opportunity.
    (2) Deputy Chief for Programs. The Deputy Chief for Programs, with 
the assistance of an Associate Deputy Chief, is responsible for 
activities in basin and area planning, conservation planning and 
application, land treatment, land use and rural development, operations 
management, and project development and maintenance.
    (3) Deputy Chief for Technology. The Deputy Chief for Technology, 
with the assistance of an Associate Deputy Chief, is responsible for 
activities in ecological sciences, economics and social sciences, 
engineering, and international activities.
    (4) Deputy Chief for Assessment and Planning. The Deputy Chief for 
Assessment and Planning, with the assistance of an Associate Deputy 
Chief, is responsible for activities in appraisal and program 
development, budget planning and analysis, cartography and geographic 
information systems, evaluation and analysis, resources inventory, and 
soil survey.
    (c) Assistant Chiefs. Each assistant chief represents the Chief in 
designated areas of the United States in coordinating and integrating 
all aspects of NRCS programs and activities. They provide leadership and 
guidance to state conservationists and national technical center 
directors.
    (d) Administrative Support Staff. The administrative support staff 
provides

[[Page 450]]

for a coordinated administrative management program for national 
headquarters activities.
    (e) Legislative Affairs Staff. The legislative affairs staff 
provides coordination and assistance to the Chief in the conduct of 
legislative affairs.
    (f) Public Information Staff. The public information staff directs a 
program of information support and public affairs activities.

[49 FR 44743, Nov. 9, 1984]



Sec. 600.3  National technical centers.

    National technical centers are located at Chester, Pennsylvania; 
Fort Worth, Texas; Lincoln, Nebraska; and Portland, Oregon. Each 
national technical center provides specialized technical assistance and 
services to an assigned group of states.

[49 FR 44744, Nov. 9, 1984]



Sec. 600.4  State offices.

    Each office is under the direction and supervision of a state 
conservationist. Each state conservationist is responsible to the Chief 
for NRCS programs in a state. The Caribbean Area Office, under the 
direction and supervision of a director, serves the Commonwealth of 
Puerto Rico and the U.S. Virgin Islands. The Director of the Caribbean 
Area has the same responsibility and authority as a state 
conservationist. All references to state conservationists in this 
chapter include the Director of the Caribbean Area.



Sec. 600.5  Area offices.

    Except for some states and the Caribbean Area, states have area 
offices which serve as a supervisory level between the state and field 
offices. Each area office is under the direction and supervision of an 
area conservationist who is responsible for NRCS activities in the area.



Sec. 600.6  Field offices.

    Each field office is under the direction and supervision of a 
district conservationist who is responsible for NRCS activities in the 
geographical area served by the field office. Usually, the geographical 
area of a field office includes one or more conservation districts and 
one or more counties.



Sec. 600.7  Other field offices.

    Other field offices serve specialized activities, such as watershed 
protection and flood prevention projects, resource conservation and 
development areas, and NRCS soil survey activities. Direction and 
supervision of these offices are designated by the state 
conservationist.



Sec. 600.8  Plant materials centers.

    Plant materials centers assemble and test plant species for 
conservation uses. Usually, a center serves two or more states, and is 
under the jurisdiction of the state conservationist of the state in 
which located. Centers are directed and supervised by a manager who is 
responsible to an area or the state office as designated by the state 
conservationist.



PART 601--FUNCTIONS--Table of Contents




Sec.
601.1  Functions assigned.
601.2  Function reserved to the Secretary of Agriculture.
601.3  Functions reserved to the Assistant Secretary for Natural 
          Resources and Environment.
601.4  Natural disaster assistance.
601.5  Defense responsibilities.

    Authority: 37 FR 28463, 38 FR 14945, 7 CFR 2.7-2.12; 38 FR 14945-
14948, 7 CFR 2.19-2.20; 38 FR 14951-14952, 7 CFR 2.62.

    Source: 38 FR 34642, Dec. 17, 1973, unless otherwise noted.



Sec. 601.1   Functions assigned.

    The above authorities assign the following functions to the Natural 
Resources Conservation Service:
    (a) Provide national leadership in the conservation, development, 
and productive use of the Nation's soil, water, and related resources. 
Such leadership encompasses soil, water, plant, and wildlife 
conservation; small watershed protection and flood prevention; and 
resource conservation and development. Integrated in these programs are 
erosion control, sediment reduction, pollution abatement, land use 
planning, multiple use, improvement of water quality, and several 
surveying and monitoring activities related to environmental 
improvement. All are designed to assure (1) quality in the

[[Page 451]]

natural resource base for sustained use; (2) quality in the environment 
to provide attractive, convenient, and satisfying places to live, work, 
and play; and (3) quality in the standard of living based on community 
improvement and adequate income.
    (b) Participate in evaluating and coordinating land use policy.
    (c) Administer the basic program of soil and water conservation 
under Pub. L. 46, 74th Congress, as amended, and related laws (16 U.S.C. 
590 a-f, i-l, q, q-1; 42 U.S.C. 3271-3274; 7 U.S.C. 2201), including:
    (1) Technical assistance to land users in carrying out locally 
adopted soil and water conservation programs primarily through the 
conservation districts in the 50 States, Puerto Rico, and Virgin 
Islands, but also to communities, watershed groups, Federal and State 
agencies and other cooperators including such assistance as:
    (i) Comprehensive planning assistance in nonmetropolitan districts.
    (ii) Assistance in the field of income producing recreation on rural 
non-Federal lands.
    (iii) Forestry assistance, as a part of total technical assistance 
to private land owners and land users when such services are an integral 
part of land management and such services are not available from a State 
agency; and forestry services in connection with windbreaks and shelter 
belts to prevent wind and water erosion of lands.
    (iv) Assistance in developing programs relating to natural beauty.
    (v) Assistance to other Department agencies in connection with the 
administration of their program, as follows:
    (A) Agricultural Stabilization and Conservation Service in the 
development and technical servicing of certain programs, such as the 
rural environmental assistance program, water bank program, Appalachian 
regional development program and other such similar conservation 
programs.
    (B) Farmers Home Administration in connection with their loan 
programs.
    (2) Soil surveys, including:
    (i) Providing leadership for the Federal part of the National 
Cooperative Soil Survey which includes conducting and publishing of soil 
surveys.
    (ii) Conducting soil surveys for resource planning and development.
    (iii) Performing the cartographic services essential to carrying out 
the functions of the Natural Resources Conservation Service, including 
furnishing photographs, mosaics, and maps.
    (3) Conducting and coordinating snow surveys and making water supply 
forecasts pursuant to Reorganization Plan No. 4 of 1940 (5 U.S.C. App.).
    (4) Operating plant materials centers for the assembly and testing 
of plant species in conservation programs, including the use, 
administration, and disposition of lands under the administration of the 
Natural Resources Conservation Service for such purposes under title III 
of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 1010-1011).
    (5) Providing leadership in the inventorying and monitoring of soil, 
water, land, and related resources of the Nation.
    (d) Administer the watershed protection and flood prevention 
programs, including:
    (1) The 11 authorized watershed projects under Pub. L. 534, 78th 
Congress, 33 U.S.C. 701b-1, except for responsibilities assigned to the 
Forest Service.
    (2) The emergency flood control work under section 216 of Pub. L. 
516, 81st Congress, 33 U.S.C. 701b-1, except for responsibilities 
assigned to the Forest Service.
    (3) The cooperative river basin surveys and investigations programs 
under section 6 of Pub. L. 566, 83rd Congress, 16 U.S.C. 1006, except 
for responsibilities assigned to the Forest Service. Representation on 
the Water Resources Council and river basin commissions created by Pub. 
L. 89-80, 42 U.S.C. 1962, and on river basin interagency committees.
    (4) The pilot watershed projects under Pub. L. 46, 74th Congress, 16 
U.S.C. 590a-f, and Pub. L. 156, 83rd Congress, except for 
responsibilities assigned to the Forest Service.
    (5) The watershed protection and flood prevention program under Pub. 
L. 566, 83rd Congress, as amended, 16 U.S.C. 1001-1009, except for 
responsibilities assigned to the Farmers Home Administration and the 
Forest Service.

[[Page 452]]

    (6) The joint investigations and surveys with the Department of the 
Army under Pub. L. 87-639, 16 U.S.C. 1009.
    (e) Administer the Great Plains Conservation program under Pub. L. 
1021, 84th Congress, as amended 16 U.S.C. 590p(b).
    (f) Administer the Resource Conservation and Development Program 
under Pub. L. 46, 74th Congress, 16 U.S.C. 590a-f; Pub. L. 87-703, as 
amended, 7 U.S.C. 1010-1011; and Pub. L. 97-98, 16 U.S.C. 3451-3461; 
except for responsibilities assigned to the Farmers Home Administration.
    (g) Responsibility for entering into long-term contracts for 
carrying out conservation and environmental measures in watershed areas.
    (h) Assistance to qualifying states and local governments in the 
development and implementation of coastal management plans or programs 
prepared under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451, 
et seq.) consistent with section 303(d) of that act.
    (i) Administer abandoned Mine Reclamation Program for Rural Lands 
and other responsibilities assigned under the Surface Mining Control and 
Reclamation Act of 1977 (Pub. L. 95-87) 91 Stat. 445 et seq., except 
where it relates to responsibilities assigned to the Forest Service and 
Agricultural Research Service.

[38 FR 34642, Dec. 17, 1973, as amended at 42 FR 59955, Nov. 23, 1977; 
48 FR 19356, Apr. 29, 1983; 50 FR 7906, Feb. 27, 1985]



Sec. 601.2   Function reserved to the Secretary of Agriculture.

    Designation of new project areas in which the resource conservation 
and development program assistance will be provided.



Sec. 601.3  Functions reserved to the Assistant Secretary for Natural Resources and Environment.

    (a) Executing cooperative agreements and memoranda of understanding 
containing representations in the name of the Secretary of the 
Department of Agriculture as a whole, including the cooperation of the 
Department with conservation districts and other districts organized for 
soil and water conservation within the States, territories, and 
possessions.
    (b) Giving final approval and transmitting to the Congress watershed 
work plans that require congressional approval; and approving and 
transmitting to the Congress comprehensive river basin reports.
    (c) Approving additions to authorized Resource Conservation and 
Development Projects.
    (d) Land use policy evaluation and coordination.

[38 FR 34642, Dec. 17, 1973, as amended at 48 FR 19356, Apr. 29, 1983]



Sec. 601.4   Natural disaster assistance.

    (a) To assist in emergencies caused by natural disasters, the NRCS 
may:
    (1) Provide technical and financial assistance under authority of 
section 216 of the Flood Control Act of 1950 (Pub. L. 81-516, 64 Stat. 
184, 33 U.S.C. 701b) as set forth in Part 624 of this chapter.
    (2) Provide technical assistance for rehabilitation of land and 
conservation systems for which other U.S. Department of Agriculture 
agencies provide cost sharing.
    (3) Provide technical assistance on rehabilitation of rural lands 
damaged by natural disaster.
    (4) Provide assistance in evaluating the severity of the disaster, 
assessing problems created, and determining the amount and kind of 
emergency work needed for restoration.
    (5) Provide available information, maps, and reports on projects 
described in Parts 621, 622, 623, and 640 of this chapter.
    (6) Provide assistance in locating heavy earthmoving equipment.
    (7) Make light trucks and other types of NRCS transportation 
equipment available for emergency use.
    (8) Provide technical assistance in locating alternate routes when 
existing roads and highways cannot be used.
    (b) It is the responsibility of the state conservationist in a major 
disaster, or the head of area and field offices in a local emergency, to 
determine the extent of NRCS assistance necessary and available.

[[Page 453]]



Sec. 601.5   Defense responsibilities.

    In the event of a nuclear attack NRCS is responsible for providing:
    (a) Technical guidance, based upon results of radiological 
monitoring and the extent of radiological contamination, to farmers, 
ranchers, and others relating to:
    (1) The selection and use of land for agricultural production.
    (2) The harvesting of crops.
    (3) The use of crops stored on the farm.
    (4) The use, conservation, disposal, and control of water to insure 
adequate usable water for agricultural purposes and to prevent floods.
    (5) The safety of livestock.
    (b) Basic soil information, land use guides, and on-site technical 
assistance in selecting land for production and in applying practices to 
increase production of food and fiber with maximum efficiency.

[[Page 454]]



                  SUBCHAPTER B--CONSERVATION OPERATIONS





PART 610--TECHNICAL ASSISTANCE--Table of Contents




                   Subpart A--Conservation Operations

Sec.
610.1  Purpose.
610.2  Scope.
610.3  Assistance through conservation districts.
610.4  Technical assistance furnished.
610.5  Interdisciplinary assistance.

              Subpart B--Soil Erosion Prediction Equations

610.11  Purpose and scope.
610.12  Equations for predicting soil loss due to water erosion.
610.13  Equations for predicting soil loss due to wind erosion.
610.14  Use of USLE, RUSLE, and WEQ.

    Authority: 16 U.S.C. 590a-590f, 590q, 3801(a)(9).

    Source: 42 FR 38169, July 27, 1977, unless otherwise noted.



                   Subpart A--Conservation Operations



Sec. 610.1  Purpose.

    This subpart sets forth Natural Resource Conservation Service (NRCS) 
policies and procedures for furnishing technical assistance in 
conservation operations.

[61 FR 27999, June 4, 1996]



Sec. 610.2  Scope.

    Conservation operations, including technical assistance, is the 
basic soil and water conservation program of NRCS. This program is 
designed to provide assistance to (a) reduce soil losses from erosion; 
(b) help solve soil, water, and agricultural waste management problems; 
(c) bring about adjustments in land use as needed; and (d) reduce damage 
caused by excess water and sedimentation. The Natural Resources 
Conservation Service is the technical agency of the U.S. Department of 
Agriculture for providing assistance to conservation districts and other 
organizations in planning and carrying out their conservation programs. 
NRCS works with individuals, groups, and units of government to help 
them plan and carry out conservation decisions to meet their objectives.



Sec. 610.3  Assistance through conservation districts.

    (a) Technical assistance is provided through and in cooperation with 
conservation districts in the 50 States, the Commonwealth of Puerto 
Rico, and the U.S. Virgin Islands. These districts, formed under 
authority of State laws, are operated and controlled by local citizens. 
They provide the leadership and the program needed to meet the 
conservation objectives of the district.
    (b) NRCS furnishes technical assistance to conservation districts as 
specified in memorandums of understanding. Soil conservationists 
assigned to conservation districts work directly with land users and 
others according to the program needs and the priorities established by 
the conservation districts.
    (c) The practical experience of land users is combined with the 
scientific knowledge and skills of professional conservationists to plan 
and carry out locally formulated conservation programs.
    (d) When requested, technical assistance may be provided to owners, 
operators, or groups using land that is under the jurisdiction of the 
United States Department of the Interior if such land is included in a 
conservation district or if assistance is in accordance with memorandums 
of understanding identifying the coordination of agency activities.



Sec. 610.4  Technical assistance furnished.

    The Natural Resources Conservation Service provides technical 
assistance to land users and others who are responsible for making 
decisions and setting policies that influence land use, conservation 
treatment, and resource management. Technical assistance furnished by 
NRCS consists of program assistance, planning assistance, application of 
conservation practices, and assistance in the technical phases of USDA 
cost-share programs.

[[Page 455]]

    (a) Program assistance is provided to conservation districts and 
other organizations concerned with the conservation of soil, water, 
plant, and wildlife resources. This assistance includes providing 
resource inventory data and identifying conservation problems and needs 
in order for districts to develop long-range soil and water conservation 
programs. Individuals, groups, and organizations requesting NRCS 
assistance through conservation districts include:
    (1) Farmers, ranchers, and other land users concerned with the 
conservation of land and water resources.
    (2) County and other local government units such as park 
authorities, departments of public works, planning, zoning (rural, 
urban, and flood plain), school, and institution boards, highway 
departments, and tax assessors.
    (3) Citizen groups, youth groups, recreation groups, and garden 
clubs.
    (4) State and local units of government (highway, health, 
recreation, water resources, and regional planning) involved in 
establishing public policy regarding the use of resources.
    (5) Federal departments and agencies such as Defense, Housing and 
Urban Development, Public Roads, Health and Human Services; and 
Interior.
    (6) Professional consultants who provide services such as 
engineering, planning, environmental assessment, tax assessment, and 
forest management.
    (b) Planning assistance includes evaluation of soil, water, 
vegetation, and other resource data needed for making land use, 
environmental and conservation treatment decisions. NRCS helps land 
users make conservation plans for farms, ranches, and other land units. 
This help includes onsite planning assistance in making conservation 
plans. The plans are based on a soil survey and interpretations for the 
intended land uses and conservation treatment. Plans may also include 
other inventories of soil, water, plant, and related resources needed in 
the planning process. Information about the responses of each kind of 
soil and the conservation practices and resource management needed for 
different land uses is provided. The land user's decisions recorded in 
the plan are based on his conservation objectives. Conservation plans 
provide for the orderly installation of conservation practices. 
Conservation plans reflect changing conditions.
    (c) Application assistance is provided to help land users apply and 
maintain planned conservation work. NRCS assistance for applying the 
conservation practices in the plan may include:
    (1) Designing, constructing, and maintaining conservation practices;
    (2) Selecting management alternatives and cultural practices needed 
to establish and maintain vegetation; and
    (3) Other conservation practices needed to protect land and water 
resources.
    (d) The Natural Resources Conservation Service assists in carrying 
out certain phases of USDA soil and water conservation cost-share 
programs. NRCS assists individual program participants with conservation 
plans needed for long-term cost-share agreements. NRCS is assigned 
responsibility by the Secretary of Agriculture for technical phases of 
applying conservation practices on the land. This assignment includes:
    (1) Determining what practices are needed and feasible to install, 
(2) selecting sites and planning and designing practices, (3) providing 
assistance for installing practices, and (4) certifying that the work 
done is in accordance with NRCS standards and specifications.

[42 FR 38169, July 27, 1977, as amended at 47 FR 56473, Dec. 17, 1982]



Sec. 610.5  Interdisciplinary assistance.

    Technical assistance is based on the principle that soil, water, 
plant, and related resources are interdependent and must be managed 
accordingly. Soil conservationists integrate the various technical 
fields in providing for the conservation of land and water resources. 
Staff scientists and specialists develop conservation standards, prepare 
necessary specifications, provide training, and review work performance, 
NRCS uses consultants for conservation problems that require special 
expertise.

[[Page 456]]



              Subpart B--Soil Erosion Prediction Equations

    Source: 61 FR 27999, June 4, 1996, unless otherwise noted.



Sec. 610.11  Purpose and scope.

    This subpart sets forth the equations and rules for utilizing the 
equations that are used by the Natural Resources Conservation Service 
(NRCS) to predict soil erosion due to water and wind. Section 301 of the 
Federal Agriculture Improvement and Reform Act of 1996 (FAIRA) and the 
Food Security Act, as amended, 16 U.S.C. 3801-3813 specified that the 
Secretary would publish the universal soil loss equation (USLE) and wind 
erosion equation (WEQ) used by the Department within 60 days of the 
enactment of FAIRA. This subpart sets forth the equations, definition of 
factors, and provides the rules under which NRCS will utilize the USLE, 
the revised universal soil loss equation (RUSLE), and the WEQ.



Sec. 610.12  Equations for predicting soil loss due to water erosion.

    (a) The equation for predicting soil loss due to erosion for both 
the USLE and the RUSLE is A=R x K x LS x C x P. (For further information 
about USLE see the U.S. Department of Agriculture Handbook 537, 
``Predicting Rainfall Erosion Losses--A Guide to Conservation 
Planning,'' dated 1978. Copies of this document are available from the 
Natural Resources Conservation Service, P.O. Box 2890, Washington, DC 
20013. For further information about RUSLE see the U.S. Department of 
Agriculture Handbook 703, ``Predicting Soil Erosion by Water: A Guide to 
Conservation Planning with the Revised Universal Soil Loss Equation 
(RUSLE).'' Copies may be purchased from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.)
    (b) The factors in the USLE equation are:
    (1) A is the estimation of average annual soil loss in tons per acre 
caused by sheet and rill erosion.
    (2) R is the rainfall erosivity factor. Accounts for the energy and 
intensity of rainstorms.
    (3) K is the soil erodibility factor. Measures the susceptibility of 
a soil to erode under a standard condition.
    (4) LS is the slope length and steepness factor. Accounts for the 
effect of length and steepness of slope on erosion.
    (5) C is the cover and management factor. Estimates the soil loss 
ratio for each of 4 or 5 crop stage periods throughout the year, 
accounting for the combined effect of all the interrelated cover and 
management variables.
    (6) P is the support practice factor. Accounts for the effect of 
conservation support practices, such as contouring, contour 
stripcropping, and terraces on soil erosion.
    (c) The factors in the RUSLE equation are defined as follows:
    (1) A is the estimation of average annual soil loss in tons per acre 
caused by sheet and rill erosion.
    (2) R is the rainfall erosivity factor. Accounts for the energy and 
intensity of rainstorms.
    (3) K is the soil erodibility factor. Measures the susceptibility of 
a soil to erode under a standard condition and adjusts it bi-monthly for 
the effects of freezing and thawing, and soil moisture.
    (4) LS is the slope length and steepness factor. Accounts for the 
effect of length and steepness of slope on erosion based on 4 tables 
reflecting the relationship of rill to interrill erosion.
    (5) C is the cover and management factor. Estimates the soil loss 
ratio at one-half month intervals throughout the year, accounting for 
the individual effects of prior land use, crop canopy, surface cover, 
surface roughness, and soil moisture.
    (6) P is the support practice factor. Accounts for the effect of 
conservation support practices, such as cross-slope farming, 
stripcropping, buffer strips, and terraces on soil erosion.



Sec. 610.13  Equations For Predicting Soil Loss Due To Wind Erosion.

    (a) The equation for predicting soil loss due to wind in the Wind 
Erosion Equation (WEQ) is E=f(IKCLV). (For further information on WEQ 
see the paper by N.P. Woodruff and F.H.

[[Page 457]]

Siddaway, 1965. ``A Wind Erosion Equation,'' Soil Science Society of 
America Proceedings, Vol. 29, No. 5, pages 602-608, which is available 
from the American Society of Agronomy, Madison, Wisconsin. In addition, 
the use of the WEQ in NRCS is explained in the Natural Resources 
Conservation Service (NRCS) National Agronomy Manual, 190-V-NAM, second 
ed., Part 502, March, 1988, which is available from the NRCS, P.O. Box 
2890, Washington, DC 20013.)
    (b) [Reserved]
    (c) The factors in the WEQ equation are defined as follows:
    (1) E is the estimation of the average annual soil loss in tons per 
acre.
    (2) f indicates the equation includes functional relationships that 
are not straight-line mathematical calculations.
    (3) I is the soil erodibility index. It is the potential for soil 
loss from a wide, level, unsheltered, isolated field with a bare, 
smooth, loose and uncrusted surface. Soil erodibility is based on soil 
surface texture, calcium carbonate content, and percent day.
    (4) K is the ridge roughness factor. It is a measure of the effect 
of ridges formed by tillage and planting implements on wind erosion. The 
ridge roughness is based on ridge spacing, height, and erosive wind 
directions in relation to the ridge direction
    (5) C is the climatic factor. It is a measure of the erosive 
potential of the wind speed and surface moisture at a given location 
compared with the same factors at Garden City, Kansas. The annual 
climatic factor at Garden City is arbitrarily set at 100. All climatic 
factor values are expressed as a percentage of that at Garden City.
    (6) L is the unsheltered distance. It is the unsheltered distance 
across an erodible field, measured along the prevailing wind erosion 
direction. This distance is measured beginning at a stable border on the 
upwind side and continuing downward to the nonerodible or stable area, 
or to the downwind edge of the area being evaluated.
    (7) V is the vegetative cover factor. It accounts for the kind, 
amount, and orientation of growing plants or plant residue on the soil 
surface.



Sec. 610.14  Use of USLE, RUSLE, and WEQ.

    (a) All Highly Erodible Land (HEL) determinations are based on the 
formulas set forth in 7 CFR Sec. 12.21 using some of the factors from 
the USLE and WEQ and the factor values that were contained in the local 
Field Office Technical Guide (FOTG) as of January 1, 1990. In addition, 
this includes the soil loss tolerance values used in those formulas for 
determining HEL. The soil loss tolerance value is used as one of the 
criteria for planning soil conservation systems. These values are 
available in the FOTG in the local field office of the Natural Resources 
Conservation Service.
    (b) RUSLE will be used to:
    (1)(i) Evaluate the soil loss estimates of conservation systems 
contained in the FOTG.
    (ii) Evaluate the soil loss estimates of systems actually applied, 
where those systems were applied differently than specified in the 
conservation plan adopted by the producer or where a conservation plan 
was not developed, in determining whether a producer has complied with 
the HEL conservation provisions of the Food Security Act of 1985, as 
amended, 16 U.S.C. Sec. 3801 et seq., set forth in 7 CFR Part 12; and
    (2) Develop new or revised conservation plans.



PART 611--SOIL SURVEYS--Table of Contents




                           Subpart A--General

Sec.
611.1  Purpose and scope.
611.2  Cooperative relationships.

                    Subpart B--Soil Survey Operations

611.10  Standards, guidelines, and plans.
611.11  Reproduction and distribution of soil survey information.

                   Subpart C--Cartographic Operations

611.20  Function.
611.21  Availability of aerial photography.
611.22  Availability of satellite imagery.

    Authority: Pub. L. 74-46, 49 Stat. 163 (16 U.S.C. 590(a-f); Pub. L. 
89-560, 80 Stat. 706 (42 U.S.C. 3271-3274).

    Source: 39 FR 7415, Feb. 26, 1974, unless otherwise noted.

[[Page 458]]



                           Subpart A--General



Sec. 611.1  Purpose and scope.

    (a) This part sets forth policy on soil survey operations of the 
Natural Resources Conservation Service (NRCS).
    (b) NRCS is responsible for soil survey activities of the U.S. 
Department of Agriculture (USDA). A soil survey provides (1) an orderly, 
on-the-ground, scientific inventory of soil resources according to their 
potentialities and problems of use, and (2) information about each kind 
of soil in sufficient detail to meet all reasonable needs of farmers, 
agricultural technicians, community planners, engineers, and scientists 
in planning and transferring the findings of research and experience to 
specific land areas.



Sec. 611.2   Cooperative relationships.

    (a) Soil surveys on nonfederal lands are carried out cooperatively 
with state agricultural experiment stations and other state agencies. 
The cooperative effort is evidenced in a memorandum of understanding 
setting forth guidelines for actions to be taken by each cooperating 
party in the performance of soil surveys. Similar cooperative 
arrangements exist between NRCS and other federal agencies for soil 
surveys on federal lands.
    (b) Arrangements for nonfederal financial participation in the cost 
of soil surveys may be made with states, counties, soil conservation 
districts, planning agencies, and other local groups.



                    Subpart B--Soil Survey Operations



Sec. 611.10   Standards, guidelines, and plans.

    (a) NRCS conducts soil surveys under national standards and 
guidelines for naming, classifying, and interpreting soils and for 
publishing soil surveys in the USDA series.
    (b) A soil survey work plan of a county or area of similar size that 
is to be completed for publication is prepared prior to the start of 
each soil survey. The work plan provides information relevant to the 
conduct and publication of the soil survey. The plan is signed by 
representatives of NRCS, land grant universities, and in some states 
representatives of other state agencies. Federal land administering 
agencies also sign the work plan if federal lands are included in the 
survey.



Sec. 611.11   Reproduction and distribution of soil survey information.

    (a) Published soil surveys. (1) When soil survey field work is 
completed on a designated area, NRCS publishes the soil survey as soon 
as possible so that the information will be available to the public The 
published soil survey includes soil maps, soil descriptions, and soil 
interpretations for appropriate uses such as farming, engineering, 
range, woodland, recreation, and wildlife.
    (2) Each party cooperating with NRCS in a soil survey will receive 
without cost 50 copies of the published soil survey. Prior to 
publication each may order additional copies at printing cost by 
preparing a special amendment to the soil survey work plan.
    (3) The number of copies to be published and the distribution of a 
published soil survey are coordinated by NRCS with those cooperating in 
the survey and with the U.S. Senators from the state and the U.S. 
Representative from the congressional district in which the survey was 
made.
    (4) Copies of published soil surveys are sent by the Superintendent 
of Documents, U.S. Government Printing Office, to depository libraries 
that have requested them. Copies also are sent to interested agencies 
that have requested them.
    (5) Published soil surveys may be obtained without charge if 
available, from NRCS field and state offices, and from respective 
members of the United States Senate and House of Representatives. Land 
grant universities also may have copies. When the supply is exhausted, 
reference copies generally are available from libraries or on inter-
library loan.
    (b) Interim soil reports. (1) State and local units of government 
and others may need soil survey information for subdivision, town, or 
county planning, tax assessment, and other uses prior to the time a soil 
survey is published. NRCS may prepare interim reports to provide soil 
survey information to meet these needs.

[[Page 459]]

    (2) Interim soil reports may include copies of soil survey field 
sheets, soil descriptions, and soil interpretive maps and tables showing 
the general rating of each kind of soil for various uses such as 
farming, range, woodland, engineering, recreation, and wildlife.
    (c) Resource conservation plan data. Information prepared 
specifically for use in developing resource conservation plans for soil 
conservation district cooperators is considered confidential. Soil maps 
and interpretations prepared for this use will not be made available to 
others without the consent of the landowner as well as the district 
governing body. However, copies of soil survey field sheets and related 
data from which the conservation plan was developed may be purchased 
from the local NRCS field office with prior approval from the NRCS state 
office. The purchase is subject to the fee schedule cited in Sec. 1.2(b) 
of this title.
    (d) Identity of advance reproductions. Advance reproductions of 
individual soil survey field sheets include the name of the soil survey 
area, the state, the names of the parties cooperating in the survey, 
date of survey, map scale, and necessary precautionary notes.

[39 FR 7415, Feb. 26, 1974, as amended at 39 FR 27553, July 29, 1974]



                   Subpart C--Cartographic Operations



Sec. 611.20   Function.

    The NRCS Cartographic Division provides cartographic services needed 
to carry out NRCS functions. Cartographic services include general 
cartography, photogrammetry, aerial photography, planimetric and 
topographic mapping, drafting, and specialized types of reproduction.



Sec. 611.21   Availability of aerial photography.

    The Cartographic Division obtains necessary clearnace for all aerial 
photography for NRCS. New aerial photography of designated areas in the 
United States is obtained yearly by NRCS through competitive 
contracting. This photography is obtained only after it is determined 
that imagery of these areas available from other sources does not meet 
NRCS scale and quality requirements. Orders for reproductions of NRCS 
aerial photography are subject to the fee schedule cited in Sec. 1.2(b) 
of this title. Order reproductions from the Cartographic Division, 
USDA--Natural Resources Conservation Service, Federal Center Building, 
No. 1, Hyattsville, Maryland 20782.



Sec. 611.22   Availability of satellite imagery.

    Cloud-free maps of the United States based on imagery received from 
a satellite are prepared and released to the public by NRCS. The maps 
offer the first image of the United States not obscured by clouds or 
distortions. Orders or requests for information should be directed to 
the Cartographic Division, USDA--Natural Resources Conservation Service, 
Federal Center Buildings, No. 1, Hyattsville, Maryland 20782. Orders are 
subject to the fee schedule cited in Sec. 1.2(b) of this title.



PART 612--SNOW SURVEYS AND WATER SUPPLY FORECASTS--Table of Contents




Sec.
612.1  Purpose and scope.
612.2  Snow survey and water supply forecast activities.
612.3  Data collected and forecasts.
612.4  Eligible individuals or groups.
612.5  Dissemination of water supply forecasts and basic data.
612.6  Application for water supply forecast service.
612.7  Forecast user responsibility.

     Authority: 26 Stat. 653; Sec. 8, Reorg. Plan No. IV of 1940, 54 
Stat. 1234 (5 U.S.C. App. II); 5 FR 2421, 3 CFR 1938-1943 Comp. P. 1288.

    Source: 40 FR 12067, Mar. 17, 1975, unless otherwise noted.



Sec. 612.1  Purpose and scope.

    This part sets forth Natural Resources Conservation Service (NRCS) 
policy and procedure for the administration of a cooperative snow survey 
and water supply forecast program. The program provides agricultural 
water users and other water management groups in the western states area 
with water supply forecasts to enable them to plan for efficient water 
management. The program also provides the public and the scientific 
community with a data base that can be used

[[Page 460]]

to accurately determine the extent of the now resource. The western 
states area comprises Alaska, Arizona, California (east side of the 
Sierra Nevada mountain range only), Colorado, Idaho, Montana, Nevada, 
New Mexico, Oregon, Utah, Washington, and Wyoming.



Sec. 612.2  Snow survey and water supply forecast activities.

    To carry out the cooperative snow survey and water supply forecast 
program, NRCS:
    (a) Establishes, maintains, and operates manual and automated snow 
course and related hydro meteorological networks. Planning for such 
networks is carried out in accordance with OMB Circular A-62.
    (b) Determines and provides information on the expected water 
supply, including seasonal streamflow data. If pertinent and appropriate 
to the needs of cooperators and not otherwise available to them, may 
provide necessary interpretative analyses and forecasts required for 
operation of water-control structures and/or agricultural operations.
    (c) On request and to the extent NRCS resources and any required 
cooperator contributions are available, establishes hydrometeorological 
stations to cllect and provide data and necessary interpretive analyses 
to the requesting party. By written agreement NRCS may accept 
cooperators' funds, materials, equipment, and services for this purpose.
    (d) Develops and encourages use of new techniques and improving data 
collection and processing.
    (e) Cooperates with other federal, state, and local agencies, 
organizations, and Canadian provinces and agencies.



Sec. 612.3  Data collected and forecasts.

    (a) Basic data are currently collected at numerous sites in the 
western states area. Data sites generally include a snow course where 
both snow depth and water equivalent of snow are measured. However, 
special sites may measure only snow depth or water equivalent. Many of 
these sites also provide related drometeorological data, such as 
precipitation, temperature, humidity, solar tradiation, and wind.
    (b) Water supply forecasts in the western states area are generally 
made monthly from January through June. Forecasts may be made more 
frequently for an established need when data are available to NRCS.



Sec. 612.4  Eligible individuals or groups.

    (a) Any individual or group who is a significant water user and who 
would benefit from a water supply forecast may obtain forecasts from 
NRCS on a regular basis provided data are available to NRCS to develop a 
forecast at the desired location.
    (b) The program collects and interprets data as a service and an aid 
to agricultural interests, particularly those served by or affiliated 
with soil, water, and other conservation districts. Information 
collected by NRCS for these agricutural users is also made available to 
other Federal, State, and private agencies and to the general public 
without charge. Cooperator financial contribution is usually required 
for special measurements or interpretations beyond the scope of the 
regular program.



Sec. 612.5   Dissemination of water supply forecasts and basic data.

    Water supply outlook reports prepared by NRCS and its cooperators 
containing water supply forecasts and basic data are usually issued 
monthly by each NRCS state office in the western states area for the 
months of January through June. Other reports jointly issued by NRCS and 
its cooperators include a fall water supply summary, annual and 
accumulative summaries of data, and a western states area report 
covering water supply outlook.



Sec. 612.6   Application for water supply forecast service.

    Requests for obtaining water supply forecasts or related assistance 
may be directed to any NRCS office in the western states areas. NRCS 
offices are described in part 600 of this chapter.



Sec. 612.7   Forecast user responsibility.

    The forecast user's obligation to the federal government is to give 
appropriate credit and recognition to NRCS for information furnished. 
The Federal

[[Page 461]]

Government does not assume any responsibility for management decisions 
the user makes which may be based in whole or part on information 
provided by NRCS.



PART 613--PLANT MATERIALS CENTERS--Table of Contents




Sec.
613.1  Purpose.
613.2  Policy and objectives.
613.3  NRCS responsibilities in plant materials.
613.4  Special production of plant materials.
613.5  Plant materials centers.

    Authority: Pub. L. 74-46, 49 Stat. 163 (16 U.S.C. 590a-f); Pub. L. 
74-210, 50 Stat. 525 (7 U.S.C. 1010-1011)

    Source: 49 FR 12188, Mar. 29, 1984, unless otherwise noted.



Sec. 613.1  Purpose.

    This part provides Natural Resources Conservation Service (NRCS) 
policy on the operations of plant materials centers. The centers have 
responsibilities for assembling, testing, releasing, and providing for 
the commercial production and use of plant materials for programs of 
soil, water, and related resource conservation and development.



Sec. 613.2  Policy and objectives.

    (a) It is NRCS policy to assemble, comparatively evaluate, release, 
and distribute for commercial increase new or improved plant materials 
needed for broad programs of resource conservation and development for 
agriculture, wildlife, urban, recreation, and other land uses and 
environmental needs. It is NRCS policy to conduct plant materials work 
in cooperation with other agencies of the U.S. Department of 
Agriculture, such as the Agricultural Research Service, and with other 
federal and state research agencies including state agricultural 
experiment stations. The emphasis of the NRCS plant materials work is to 
find suitable plants for erosion control adapted to soil and site 
conditions where vegetation is difficult to establish. In contrast, the 
emphasis of research agencies and organizations in plant development is 
to improve economically important crops. The NRCS program of testing and 
releasing new seed-propagated plant materials follows the guidelines in 
``Statement of Responsibilities and Policies Relating to the 
Development, Release, and Multiplication of Publicly Developed Varieties 
of Seed-Propagated Crops,'' which was adopted in June 1972 by land grant 
colleges and interested federal agencies. NRCS releases improved 
conservation plant materials requiring vegetative multiplication in ways 
appropriate for particular states and particular species by working with 
experiment stations, crop improvement associations, and other state and 
federal agencies.
    (b) The objective of the plant materials activity is to select or 
develop special and improved plants, and techniques for their successful 
establishment and maintenance to solve conservation problems and needs 
related to:
    (1) Controlling soil erosion on all lands.
    (2) Conserving water.
    (3) Protecting upstream watersheds.
    (4) Reducing sediment movement into waterways and reservoirs through 
the stabilization of critical sediment sources such as surface mined 
lands, highway slopes, recreation sites, and urban and industrial 
development areas.
    (5) Stabilizing disposal areas for liquid and solid wastes.
    (6) Improving plant diversity and lengthening grazing season on 
dryland pastures and rangelands.
    (7) Replacing brush on mountain slopes with fire-retarding plant 
cover to reduce the possibility of fires that threaten life and property 
or result in serious sediment sources.
    (8) Improving the effectiveness of windbreaks and shelterbelts for 
reducing airborne sediment, controlling snow drifting, and preventing 
crop damage from wind erosion.
    (9) Protecting streambank, pond, and lake waterlines from erosion by 
scouring and wave action.
    (10) Improving wildlife food and cover.
    (11) Selecting special-purpose plants to meet specific needs for 
environment protection and enhancement.
    (12) Selecting plants that tolerate air pollution agents and toxic 
soil chemicals.

[[Page 462]]



Sec. 613.3  NRCS responsibilities in plant materials.

    NRCS operates or enters into agreements with state universities or 
other state organizations to operate plant materials centers. NRCS 
employs specialists for selecting and using plant materials. NRCS 
responsibilities are to:
    (a) Identify the need for suitable plant materials and cultural and 
management methods in resource conservation and for environmental 
protection and enhancement.
    (b) Assemble and comparatively evaluate plant materials at the plant 
materials centers and on sites where soil, climate, or other conditions 
differ significantly from those at the centers.
    (c) Make comparative field plantings for final testing of promising 
plants and techniques in cooperation with conservation districts and 
other interested cooperators.
    (d) Release cooperatively improved conservation plants and maintain 
the breeder or foundation stocks in ways appropriate for particular 
state and plant species by working with experiment stations, crop 
improvement associations, and other state and federal agencies.
    (e) Produce limited amounts of foundation or foundation-quality seed 
and plants available by grant to or by exchange with conservation 
districts, experiment stations, other federal and state research 
agencies, and state seed certifying organizations that will use the 
material to establish seed fields, seed orchards or plantings for 
vegetative increase.
    (f) Encourage conservation districts, commercial seed producers, and 
commercial and state nurseries to produce needed plant materials for 
conservation uses and to assist them in this production.
    (g) Encourage the use of improved plant materials in resource 
conservation and environmental improvement programs.



Sec. 613.4  Special production of plant materials.

    NRCS can produce plant materials in the quantity required to do a 
specific conservation job if this production will serve the public 
welfare and only if the plant materials are not available commercially. 
This function will be performed only until the plant materials are 
available commercially. Specific production of plant materials by NRCS 
requires the approval of the Chief.



Sec. 613.5  Plant materials centers.

    (a) The National Plant Materials Center. The National Plant 
Materials Center at Beltsville, Maryland, serves as the central facility 
for assembling, increasing, and determining the characteristics of plant 
materials from foreign and domestic sources. Plant materials with 
potential value for conservation and related uses are distributed to 
other plant materials centers.
    (b) Other Plant Materials Centers. There are 23 other plant 
materials centers. Each serves several major land resource areas. 
Seventeen of these other centers are operated by NRCS, and six by 
cooperating agencies, as follows:
    (1) Operated by NRCS:

Tucson, Arizona
Lockeford, California
Brooksville, Florida
Americus, Georgia
Molokai, Hawaii
Aberdeen, Idaho
Manhattan, Kansas
Quicksand, Kentucky
East Lansing, Michigan
Coffeeville, Mississippi
Elsberry, Missouri
Bridger, Montana
Cape May Courthouse, New Jersey
Big Flats, New York
Corvallis, Oregon
Knox City, Texas
Pullman, Washington

    (2) Operated by cooperating agencies with financial and technical 
assistance from NRCS:

Los Lunas, New Mexico (New Mexico State University)
Bismarck, North Dakota (North Dakota Association of Soil Conservation 
Districts)
Meeker, Colorado (White River and Douglas Creek Soil Conservation 
Districts with partial funding from NRCS)

    (3) Operated by cooperating agencies with technical assistance from 
NRCS:

Palmer, Alaska (State of Alaska)
Kingsville, Texas (Caesar Kleberg Wildlife Research Institute, Texas 
Agricultural and Industrial University, and South Texas Association of 
Conservation Districts)

[[Page 463]]

Nacogdoches, Texas (Stephen F. Austin University and the East Texas 
Association of Conservation Districts)



PART 614--APPEAL PROCEDURES--Table of Contents




                      Subpart A--General Provisions

Sec.
614.1  Purpose and scope.
614.2  Definitions.
614.3  Applicability.
614.4  Reservation of authority.
614.5  Decisions not subject to appeal.

     Subpart B--Appeals of Technical Determinations Related to the 
  Conservation Title (Title XII) of the Food Security Act of 1985, as 
                                 Amended

614.100  Applicability.
614.101  Notice of preliminary technical determinations.
614.102  Mediation of preliminary technical determinations.
614.103  Final determinations.
614.104  Appeals of technical determinations.

  Subpart C--Appeals of Decision Related to Conservation Programs (non-
                               Title XII)

614.200  Applicability.
614.201  Notice of final decisions.
614.202  Time frames for filing requests for informal hearings.
614.203  Mediation of adverse final decisions.
614.204  Appeals of adverse final decisions.

    Authority: 5 U.S.C. 301, sections 226 and 275 of Pub. L. 103-354 (7 
U.S.C. 6932 and 6995); 16 U.S.C. 3843(a).

    Source: 60 FR 67313, Dec. 29, 1995, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 614.1  Purpose and scope.

    This part sets forth the informal procedures under which a landowner 
or program participant may appeal adverse technical determinations or 
decisions made by officials of the Natural Resources Conservation 
Service (NRCS) or its successor agency.



Sec. 614.2  Definitions.

    Adverse technical determination or decision includes, in addition to 
the definition of adverse decision in 7 CFR part 11, an NRCS technical 
determination or decision that affects the legal substantive status of 
the land, though it may not necessarily be adverse.
    Chief means the Chief of NRCS. For the purposes of this part, the 
term ``Chief'' includes an official of NRCS national headquarters 
designated by the Chief to act for the Chief in making decisions under 
this part.
    Conservation district means any district or unit of State or local 
government formed under State law or territorial law for the express 
purpose of developing and carrying out a local soil and water 
conservation program. Such district or unit of government may be 
referred to as a conservation district, soil conservation district, soil 
and water conservation district, natural resource district, land 
conservation committee, or a similar name.
    County committee means a Farm Service Agency (FSA) county or area 
committee established in accordance with section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)).
    Decision means a conclusion reached by an NRCS official based on 
applicable regulations and program instructions which relates to 
eligibility for program benefits, including a technical determination 
used as a basis for the decision.
    Designated conservationist means the NRCS official, usually the 
district conservationist, whom the State Conservationist designates to 
be responsible for the program or compliance requirement to which this 
part is applicable.
    Mediation means a process in which a neutral third party, the 
mediator, meets with the disputing parties (e.g., the landowner or 
program participant and the agency), facilitates discussions, and works 
with the parties to resolve their disputes, narrow areas of 
disagreement, and improve communications and relationships. A mediator 
has no authority to render a decision or determination.
    Preliminary technical determination means the initial written 
technical determination provided to a client which will become final 
after 30 days unless the client takes action in accordance with 
Sec. 614.101 to stay the preliminary technical determination from 
becoming final.
    State Conservationist means the NRCS official in charge of NRCS 
operations

[[Page 464]]

within a State, as set forth in part 600 of this chapter.
    Technical determination means a conclusion concerning the status and 
condition of the natural resources and cultural practices based on 
science and best professional judgment of natural resource professionals 
concerning the soils, water, air, plants, and animals.
    Refer to 7 CFR 11.1 for other definitions applicable to appeals of 
adverse technical determinations and decisions covered by this part.



Sec. 614.3  Applicability.

    (a) Appeals of adverse technical determinations and adverse 
decisions covered by this part are also governed by National Appeals 
Division (NAD) regulations at 7 CFR part 11.
    (b) Decisions which are subject to this part include any decision 
under one or more NRCS programs; and technical determinations or 
decisions that affect the status of the land even though they may not 
affect the landowner's or program participant's eligibility for USDA 
program benefits.
    (c) The failure of an official of NRCS to issue a technical 
determination or decision is subject to this part.
    (d) Complaints involving discrimination in program delivery will be 
handled under the existing USDA civil rights rules and regulations.
    (e) Appeals on contractual issues that are subject to the 
jurisdiction of the Agriculture Board of Contract Appeals are not 
appealable under the procedures within this part.



Sec. 614.4  Reservation of authority.

    Nothing contained in the regulations of this part shall preclude the 
Secretary of Agriculture or the Chief from determining at any time any 
question arising under the programs to which the regulations of this 
part apply, or from reversing or modifying in writing, with sufficient 
reason given therefore, any technical determination or decision made by 
an NRCS official.



Sec. 614.5  Decisions not subject to appeal.

    The following are examples of decisions which are not appealable:
    (a) General program requirements that apply to all participants;
    (b) Science-based formulas and criteria;
    (c) Procedural decisions relating to administration of the programs; 
and
    (d) Denials of assistance due to lack of funds or authority.



     Subpart B--Appeals of Technical Determinations Related to the 
  Conservation Title (Title XII) of the Food Security Act of 1985, as 
                                 Amended



Sec. 614.100  Applicability.

    The provisions of this subpart set forth the procedures under which 
a landowner or program participant may seek mediation of a preliminary 
technical determination or appeal from technical determinations made by 
NRCS officials on or after January 16, 1996 regarding technical 
determinations within the following programs:
    (1) Highly Erodible Land Conservation;
    (2) Wetland Conservation, including wetland technical determinations 
made by NRCS officials not related to a request for USDA program 
benefits;
    (3) Conservation Reserve Program;
    (4) Wetlands Reserve Program;
    (5) Agricultural Water Quality Incentives Program; and
    (6) Environmental Easement Program.



Sec. 614.101  Notice of preliminary technical determinations.

    (a) All preliminary technical determinations related to programs 
provided for in Sec. 614.100 shall be in writing and shall inform the 
landowner or program participant of the following:
    (1) The preliminary technical determination will become final after 
30 days if the landowner or program participant does not arrange with 
the designated conservationist for either or both of the following 
options:
    (i) A field visit to the site to gather additional information and 
to discuss the facts concerning the preliminary technical determination, 
together with, at the option of the conservation district, a district 
representative; and
    (ii) Mediation.

[[Page 465]]

    (2) Once the technical determination is final, the landowner or 
program participant may appeal the technical determination to the FSA 
county or area committee pursuant to 7 CFR part 780. Landowners or 
program participants wishing to appeal must exhaust any available appeal 
procedures through the FSA county committee prior to appealing to NAD. 
Judicial review is available only as specified in 7 CFR part 11.
    (b) The document containing the preliminary technical determination 
shall be mailed or hand delivered to the landowner or program 
participant.



Sec. 614.102  Mediation of preliminary technical determinations.

    (a)(1) Any dispute with respect to a preliminary technical 
determination related to the programs provided in Sec. 614.100 shall, at 
the request of the landowner or program participant, be mediated:
    (i) Through certified individuals in those States where a State 
mediation program certified by the United States Department of 
Agriculture (USDA) has been established. Conservation district officials 
in certified State Mediation Program States may become certified by the 
State and utilized for mediation, if they choose to participate.
    (ii) In States with no certified mediation program in effect, 
through mediation by a qualified representative of a local conservation 
district, if a local conservation district chooses to participate. Upon 
mutual agreement of the parties, other individuals may serve as 
mediators.
    (2) Upon receiving a request for mediation, NRCS shall notify other 
USDA and Federal agencies, as appropriate.
    (b) The parties shall have not more than 30 days to reach an 
agreement following a mediation session. The mediator shall notify the 
designated conservationist in writing at the end of this period whether 
the parties reached an agreement. Any agreement reached during, or as a 
result of, the mediation process shall conform to the statutory, 
regulatory, and manual provisions governing the program.



Sec. 614.103  Final determinations.

    (a) Preliminary technical determinations shall become final:
    (1) 30 days after receipt by the landowner or program participant of 
the notice of a preliminary technical determination issued pursuant to 
Sec. 614.101, unless a field visit or mediation is requested;
    (2) After the earlier of 30 days after the field visit provided for 
under Sec. 614.101(a) or receipt by the landowner or program participant 
of a final determination from the designated conservationist; or
    (3) 30 days after a mediation session if a mutual agreement has not 
been reached by the parties.
    (b) The final technical determination shall set forth the decision, 
the basis for the decision, including all factors, technical criteria, 
and facts relied upon in making the decision, and shall inform the 
landowner or program participant of the procedure for requesting and 
pursuing further review.



Sec. 614.104  Appeals of technical determinations.

    (a) Technical determinations related to the programs in Sec. 614.100 
may only be appealed, pursuant to the provisions of 7 CFR part 780, to 
the FSA county committee with jurisdiction.
    (b) In cases where a field visit has not already been completed in 
accordance with Sec. 614.101(a), a field visit shall be completed by the 
designated conservationist before the FSA county committee considers the 
appeal.
    (c) If the FSA county committee hearing the appeal requests review 
of the technical determination by the applicable State Conservationist 
prior to issuing their decision, the State Conservationist may:
    (1) Designate an appropriate NRCS official to gather any additional 
information necessary for review of the technical determination;
    (2) Obtain additional oral and documentary evidence from any party 
with personal or expert knowledge about the facts under review; and
    (3) Conduct a field visit to review and obtain additional 
information and to

[[Page 466]]

discuss the facts concerning the technical determination. The State 
Conservationist shall provide the applicable FSA county committee with a 
written technical determination, including all factors, technical 
criteria, and facts relied upon in making the technical determination.
    (d) Any landowner or program participant who is adversely affected 
by a decision of the FSA county committee may appeal to NAD in 
accordance with 7 CFR part 11.



 Subpart C--Appeals of Decisions Related to Conservation Programs (non-
                               Title XII)



Sec. 614.200  Applicability.

    The provisions of this subpart set forth the procedures under which 
a landowner or program participant may seek an informal hearing on 
adverse decisions made by NRCS officials (exclusive of those decisions 
that are appealable to the USDA Board of Contract Appeals) after January 
16, 1996 in the following program areas:
    (1) Great Plains Conservation Program;
    (2) Rural Abandoned Mine Program;
    (3) Emergency Watershed Projects;
    (4) Rural Clean Water Program;
    (5) Colorado River Basin Salinity Control Program;
    (6) Forestry Incentive Program;
    (7) Water Bank Program;
    (8) Flood Prevention and Watershed Protection Programs;
    (9) Any other program which subsequently incorporates these 
procedures through reference to this subpart within the program 
regulations.



Sec. 614.201  Notice of final decisions.

    (a) All final decisions related to programs provided for in 
Sec. 614.200 that are made by the designated conservationist shall be in 
writing and shall inform the landowner or program participant of their 
right to request any or all of the following:
    (1) An informal hearing before NRCS;
    (2) Mediation; or
    (3) A hearing before NAD in accordance with 7 CFR part 11.
    (b) The document containing the decision shall be mailed or hand 
delivered to the landowner or program participant.



Sec. 614.202  Time frames for filing requests for informal hearings.

    (a) A request for an informal hearing before NRCS shall be filed 
within 30 days after written notice of the final decision, which is the 
subject of the request, is mailed or otherwise made available to the 
landowner or program participant. A request for an informal hearing 
shall be considered ``filed'' when personally delivered in writing to 
the appropriate reviewing authority or when the properly addressed 
request, postage paid, is postmarked.
    (b) A request for appeal may be accepted and acted upon even though 
it is not filed within the time prescribed in paragraph (a) of this 
section if, in the judgment of the reviewing authority with whom such 
request is filed, the circumstances warrant such action.



Sec. 614.203  Mediation of adverse final decisions.

    (a) Any dispute with respect to an adverse final decision related to 
the programs provided in Sec. 614.200 shall, at the request of the 
landowner or program, be mediated:
    (1) Through certified individual in those States where a State 
Mediation Program has been established. Conservation district officials 
in certified State Mediation Program States may become certified by the 
State and utilized for mediation, if they choose to participate.
    (2) In States where no certified mediation program is in effect, 
through mediation by a qualified representative of a local conservation 
district, if a local conservation district chooses to participate. Upon 
mutual agreement of the parties, other individuals may serve as 
mediators.
    (b)(1) The parties shall have not more than 30 days to reach an 
agreement following a mediation session. The mediator shall notify the 
designated conservationist in writing at the end of this period whether 
the parties reached an agreement.
    (2) Any agreement reached during, or as a result of, the mediation 
process

[[Page 467]]

shall conform to the statutory, regulatory, and manual provisions 
governing the program.
    (3) If the parties fail to reach an agreement within the specified 
period, the designated conservationist shall have up to 30 days after 
the conclusion of mediation to issue a final decision.



Sec. 614.204  Appeals of adverse final decisions.

    (a) Any landowner or program participant, who is adversely affected 
by a decision made by a designated conservationist related to the 
programs in Sec. 614.200, may appeal the decision to the State 
Conservationist in the applicable State for an informal hearing or to 
NAD in accordance with 7 CFR part 11.
    (b) The State Conservationist may designate a NRCS official to 
gather information and conduct the informal hearing before making a 
decision.
    (c) Any landowner or program participant who is adversely affected 
by a decision of the State Conservationist may appeal to NAD in 
accordance with 7 CFR part 11.

[[Page 468]]



                      SUBCHAPTER C--WATER RESOURCES





PART 621--RIVER BASIN INVESTIGATIONS AND SURVEYS--Table of Contents




                           Subpart A--General

Sec.
621.1  Purpose.
621.2  Scope.

                   Subpart B--USDA Cooperative Studies

621.10  Description.
621.11  Who may obtain assistance.
621.12  How to request assistance.
621.13  Conditions for approval.
621.14  Recipient responsibility.

               Subpart C--Floodplain Management Assistance

621.20  Description.
621.21  Who may obtain assistance.
621.22  How to request assistance.
621.23  Conditions for approval.
621.24  NRCS responsibility.
621.25  Recipient responsibility.

 Subpart D--Joint Investigations and Reports With the Department of the 
                                  Army

621.30  Description.
621.31  Who may request assistance.
621.32  How to request assistance.
621.33  Conditions for approval.
621.34  Recipient responsibility.

                   Subpart E--Interagency Coordination

621.40  Participation in Federal interagency policy activities at the 
          national level.
621.41  Participation in Federal-State policy and planning activities at 
          the regional level.
621.42  Federal-State compacts.
621.43  Interstate compacts and commissions.
621.44  Special studies.
621.45  Flood insurance studies.

    Authority: Sec. 6 (Pub. L. 83-566) 68 Stat. 666 (16 U.S.C. 1006).

    Source: 48 FR 18788, Apr. 26, 1983, unless otherwise noted.



                           Subpart A--General



Sec. 621.1  Purpose.

    This part describes policies, requirements, and procedures governing 
the Department of Agriculture's (USDA's) investigations and surveys of 
watersheds of rivers and other waterways as a basis for developing 
coordinated programs. These activities are undertaken in cooperation 
with other Federal, State, and local agencies. The delegation of 
authority to the Natural Resources Conservation Service (NRCS) to 
provide national leadership for the conservation, development, and 
productive use of the Nation's soil, water, and related resources, 
including the activities treated in this part is found at Sec. 2.62 of 
this title.



Sec. 621.2  Scope.

    USDA river basin activities include:
    (a) Cooperative river basin surveys in coordination with Federal, 
State, and local agencies;
    (b) Floodplain management assistance in coordination with the 
responsible State agency and involved local governments;
    (c) Joint investigations and reports with the Department of the Army 
under Pub. L. 87-639, 76 Statute 438 (16 U.S.C. 1009); and
    (d) Interagency coordination of water resources activities.



                   Subpart B--USDA Cooperative Studies



Sec. 621.10  Description.

    Cooperative river basin studies provide USDA planning assistance to 
Federal, State, and local governments. The purpose of these studies is 
to assist in appraising water and related land resources; defining and 
determining the extent of the problems; and formulating alternative 
plans, including land treatment, nonstructural or structural measures, 
or combinations thereof, that would solve existing problems or meet 
existing and projected needs. These studies concentrate on specific 
objectives identified by the requesting agencies and citizen groups that 
are consistent with USDA authorities and responsibilities and current 
NRCS priorities. The objectives ordinarily include the formulation of a 
plan but may require only inventories of available resources and 
associated problems to be used by other agencies in plan

[[Page 469]]

formulation. USDA assistance is provided through field advisory 
committees composed of representatives of the Economic Research Service, 
Forest Service, and NRCS. The NRCS representative chairs the field 
advisory committee.



Sec. 621.11  Who may obtain assistance.

    Assistance is available to conservation districts, communities. 
county governments, regional planning boards, other planning groups, and 
State and Federal agencies. Local groups express their desires for a 
cooperative study to the governor or appropriate State agency.



Sec. 621.12  How to request assistance.

    For a cooperative study a governor, or a Federal, State, or local 
government agency must submit a written request and a Proposal to Study 
(PTS) through the NRCS State Conservationist to the Chief. Assistance in 
preparing the proposal may be obtained by contacting the State 
Conservationist. The State Conservationist sends the request and 
proposal with comments to the Chief for consideration. The proposal 
should:
    (a) Describe the basin or study area, including a map of the study 
area;
    (b) Explain the need for the study;
    (c) Explain the need for USDA participation;
    (d) State the responsibility and authority of the requesting agency 
in the study;
    (e) Estimate the extent of participation of other Federal and State 
agencies;
    (f) Discuss views and priorities of affected soil conservation 
districts regarding the proposed study;
    (g) Briefly describe the intended management organization of the 
study;
    (h) Specifically describe the expected results of the study;
    (i) Identify primary users of the study results and the manner in 
which the results will be used;
    (j) State the relationship of the study to ongoing and completed 
river basin studies;
    (k) State that procedures for informing clearinghouses and for 
eliciting public participation will be followed;
    (l) Estimate the duration and scope of the study; and
    (m) Estimate the study costs by year and agency.



Sec. 621.13  Conditions for approval.

    The Chief may authorize requested cooperative studies recommended by 
the State Conservationist. Priority for starting cooperative studies is 
based on the date of application, the readiness of the requesting agency 
to begin participation, the importance and significance of problems to 
be studied, the monetary or in-kind contributions toward the study, the 
sequence of ongoing and future studies, the type of study, the duration 
of study, the cost of study, the potential for implementation and other 
factors affecting the effectiveness and efficiency of the study. The 
number and location of cooperative studies started each year are 
governed by the availability of USDA funds and personnel.



Sec. 621.14  Recipient responsibility.

    Leadership in arrangements for other needed Federal, State, and 
local agency participation is responsibility of the requesting agency. 
Consistent with national objectives and NRCS policy and procedures, the 
requesting agency has leadership responsibility for developing specific 
study objectives, providing the necessary study organization, and 
ensuring public participation in the planning process.



               Subpart C--Floodplain Management Assistance



Sec. 621.20  Description.

    Floodplain management studies provide needed information and 
assistance to local and State entities so that they can implement 
programs for reducing existing and future flood damages in rural and 
urban communities. Assistance is targeted to communities where flood 
damage is a serious concern and local governments are sincerely 
interested in taking action to reduce damage.



Sec. 621.21  Who may obtain assistance.

    Assistance is available to conservation districts, communities, 
county

[[Page 470]]

governments, regional planning boards, other planning groups, and State 
and Federal agencies.



Sec. 621.22  How to request assistance.

    (a) A conservation district, local community or other jurisdiction 
may request floodplain management assistance for a local area for which 
they are responsible, by letter to the governor or the agency of State 
government responsible for floodplain management activities. Assistance 
in making application may be obtained by contacting any NRCS office.
    (b) The governor or his designee may request floodplain management 
assistance for the State by submitting a written request to the State 
Conservationist.



Sec. 621.23  Conditions for approval.

    (a) USDA floodplain management studies are authorized by the 
Director of the Basin and Area Planning Division. Priority for starting 
floodplain management studies is based on the same factors as for USDA 
Cooperative Studies as described in Sec. 621.13.
    (b) A study for an individual community may be started upon 
completion of a plan of work in which the Director of the Basin and Area 
Planning Division concurs and for which funds are available. Preparation 
of the plan of work is the responsibility of and must be approved by the 
applicant, the responsible State agency, and the State Conservationist. 
The plan sets forth the responsibilities of the applicant, the State, 
and USDA in carrying out the study and interpreting and using the data 
in a local floodplain management program. The State agency responsible 
for floodplain management activities may establish priorities on which 
to base the sequence of approval of floodplain management studies within 
its State. The number of studies started each Federal fiscal year is 
governed by the availability of funds and personnel and the amount of 
State and local assistance available.
    (c) States and communities are encouraged to make monetary or in-
kind contributions toward the floodplain management study. The State and 
local share may reflect in-kind contributions in lieu of fund transfers.



Sec. 621.24  NRCS responsibility.

    NRCS is responsible for providing leadership for scheduling and 
implementing the technical phases of the studies and preparing the 
reports. NRCS assists in interpreting the study results.



Sec. 621.25  Recipient responsibility.

    The State agency is responsible for developing State priorities for 
floodplain management studies and coordinating this work with related 
activities in the State. The cooperating local government entity is 
responsible for obtaining permission for carrying out field surveys. The 
State and local participants assist in distributing and interpreting the 
report and providing public information and educational services.



 Subpart D--Joint Investigations and Reports With the Department of the 
                                  Army



Sec. 621.30  Description.

    (a) As provided by Pub. L. 87-639, joint investigations and reports 
by USDA and the Department of the Army may be authorized by resolutions 
adopted by the Committee on Environment and Public Works of the U.S. 
Senate or the Committee on Public Works and Transportation of the U.S. 
House of Representatives for any watershed area in the 50 States, the 
Commonwealth of Puerto Rico, and the U.S. Virgin Islands if the nature 
of the watershed area problems dictates need for a joint effort by the 
two Departments.
    (b) Authorized joint investigations and reports are made to 
determine works of improvement needed in the study area for flood 
prevention; for the conservation, development, use, and disposal of 
water; for flood control; for the conservation and proper use of land; 
and for allied purposes. The joint report to Congress may include a 
water and related land resources plan recommended for implementation. 
Such an implementation plan must be accompanied by an environmental 
impact statement (EIS) and must be in sufficient detail to permit its 
implementation.

[[Page 471]]

    (c) As mutually agreed by USDA and the Department of the Army Corps 
of Engineers, the report and EIS are forwarded to Congress through 
appropriate channels after technical, public, and interagency reviews in 
accordance with NRCS policy as described in Sec. 622.34, or in 
accordance with the Corps of Engineers' policy concerning technical and 
public review. Implementation of these plans is contingent on 
congressional action.



Sec. 621.31  Who may request assistance.

    Any organization, group, or State or local government may request 
assistance.



Sec. 621.32  How to request assistance.

    Applicants for a joint investigation and report should request their 
congressional representative(s) to initiate appropriate action under 
Pub. L. 87-639.



Sec. 621.33  Conditions for approval.

    A joint investigation and report is authorized by a resolution of 
the Committee on Environment and Public Works of the U.S. Senate or the 
Committee on Public Works and Transportation of the U.S. House of 
Representatives. Studies are initiated when funds for them are 
appropriated by the Congress.



Sec. 621.34  Recipient responsibility.

    Participating local and State governments work with USDA and the 
Department of the Army representatives in developing objectives, 
collecting data, analyzing problems, planning and formulating proposals, 
and considering financial plans. Active public participation is 
solicited in the planning process through means such as questionnaires, 
public meetings, citizen advisory boards, and technical committees.



                   Subpart E--Interagency Coordination



Sec. 621.40  Participation in Federal interagency policy activities at the national level.

    (a) Policy development in water and related land resources is 
coordinated at the Federal level through the Cabinet Council on Natural 
Resources and Environment. NRCS provides staff support and 
representation in these activities as requested.
    (b) Within the Department, all interested USDA agencies participate 
in water policy development through the USDA Committee on Natural 
Resources and Environment and the Water Issues Work Group.
    (c) NRCS provides appropriate staff support when requested for 
committees, work groups, and task forces established for interagency 
coordination of water resources related activities of Federal agencies.



Sec. 621.41  Participation in Federal-State policy and planning activities at the regional level.

    (a) NRCS has a responsibility to represent the Department when 
needed to assist regional water planning entities and interagency 
committees which coordinate water resources planning activities.
    (b) For the Arkansas-White-Red Basin Interagency Committee (AWRBIAC) 
and the Pacific Southwest Interagency Committee (PSIAC), the USDA member 
periodically serves as chairperson and provides an executive secretary. 
For the Southeast Basin Interagency Committee (SEBIAC), NRCS 
periodically provides an executive secretary for the chairperson, who is 
a State government official.
    (c) Under the leadership of NRCS, other USDA agencies, principally 
the Forest Service and Economic Research Service, also participate.



Sec. 621.42  Federal-State compacts.

    NRCS is designated to represent USDA in assisting the U.S. 
Commissioners of the Delaware River Basin Commission and the Susquehanna 
River Basin Commission. In carrying out this responsibility, NRCS 
provides a liaison officer to work with the U.S. Commissioners on policy 
level matters, as well as providing the USDA representatives on the 
Federal field committees to assist the Commissioners.



Sec. 621.43  Interstate compacts and commissions.

    As assigned, an NRCS State Conservationist is the USDA point of 
contact for governing bodies of interstate compacts and commissions 
concerned

[[Page 472]]

with the conservation, development, and proper use of water, soil, and 
related resources.



Sec. 621.44  Special studies.

    As designated, NRCS represents USDA on special study groups such as 
for the Colorado River Basin Salinity Control Program Studies.



Sec. 621.45  Flood insurance studies.

    As requested by the Federal Emergency Management Agency (FEMA), and 
within the limits of available resources, NRCS carries out flood 
insurance studies of various types under the National Flood Insurance 
Program (Pub. L. 90-448, 82 Statute, 574 (42 U.S.C. 4012)), as amended. 
In this activity, NRCS performs detailed technical studies to determine 
the extent and frequency of flooding. The flood insurance program is 
administered by FEMA. NRCS is reimbursed by that agency for actual costs 
incurred in carrying out the studies. Local entities desiring flood 
insurance coverage should contact the responsible State agency or FEMA 
and apply in accordance with procedures of that agency.



PART 622--WATERSHED PROJECTS--Table of Contents




                           Subpart A--General

Sec.
622.1  Purpose.
622.2  Scope.
622.3  Relationship to the Pub. L. 78-534 Program.
622.4  Relationship to other agencies.
622.5  Guidelines.
622.6  Equal opportunity.
622.7  Notification under Executive Order 12372.

                        Subpart B--Qualifications

622.10  Sponsors.
622.11  Eligible watershed projects.

                    Subpart C--Application Procedure

622.20  Application.
622.21  State agency approval.

                           Subpart D--Planning

622.30  General.
622.31  Basic planning efforts.
622.32  Reviews and approvals.

    Authority: Pub. L. 83-566, 68 Stat. 666 as amended (16 U.S.C. 1001, 
et seq.); Pub. L. 78-534, 58 Stat. 889, 33 U.S.C. 701b-1.

    Source: 49 FR 6078, Feb. 17, 1984, unless otherwise noted.



                           Subpart A--General



Sec. 622.1  Purpose.

    This part sets forth the general policies for planning and carrying 
out watershed projects under Pub. L. 83-566, 68 Stat. 666 (16 U.S.C. 
1001 et seq.) and flood prevention projects under Pub. L. 78-534, 58 
Stat. 889 (33 U.S.C. 701b-1).



Sec. 622.2  Scope.

    (a) To assist sponsors in preparing and carrying out watershed 
plans, the Natural Resources Conservation Service (NRCS) shall conduct 
investigations and surveys, with the cooperation and assistance of other 
Federal agencies, to:
    (1) Determine the extent of watershed problems and needs, and
    (2) Set forth viable alternative solutions consistent with local, 
regional, and national objectives, including an alternative solution 
which makes the greatest net contribution to national economic 
development.
    (b) Alternatives will consist of either land treatment, 
nonstructural or structural measures, or combinations thereof that will 
help accomplish one or more of the authorized project purposes.
    (c) Authorized project purposes are watershed protection, 
conservation and proper utilization of land, flood prevention, 
agricultural water management including irrigation and drainage, public 
recreation, public fish and wildlife, municipal and industrial water 
supply, hydropower, water quality management, ground water supply, 
agricultural pollution control, and other water management.
    (d) After a final plan for works of improvement is agreed upon 
between NRCS and the sponsors and the approval processes are completed, 
NRCS will provide technical and financial assistance to install the 
project, subject to the availability of funds and the budgeting and 
fiscal policies of the President.

[[Page 473]]



Sec. 622.3  Relationship to the Pub. L. 78-534 Program.

    (a) General. The purposes and objectives of the programs under Pub. 
L. 83-566 and Pub. L. 78-534 are the same in most cases. Planning 
criteria, economic justification, local sponsorship, agency 
participation, financial assistance, eligible measures, operation and 
maintenance arrangements for the Pub. L. 78-534 program are consistent 
with those of the Pub. L. 83-566 program. The differences with the Pub. 
L. 78-534 program are outlined below.
    (b) Initiation. Flood prevention projects are individually 
authorized by Federal legislation. The state conservationist and the 
sponsors agree on a plan of action and notify interested parties to 
solicit their participation. The sponsors keep the public informed and 
solicit their views and comments.
    (c) Subwatershed plans. These plans are administratively approved by 
the state conservationist. If the plan involves purposes other than 
flood prevention, clearance must be obtained from the Office of 
Management and Budget before approval. Financial assistance available 
differs only in that program funds may be used for the purchase of land 
rights for single-purpose flood prevention structures and installing 
land treatment on Federal lands.
    (d) Installation. NRCS shall award and administer contracts for the 
installation of project measures unless the sponsors agree to perform 
the work. Project agreements between the sponsors and NRCS are not 
required if the work consists of flood prevention structures built and 
funded by NRCS.



Sec. 622.4  Relationship to other agencies.

    NRCS will coordinate responsibilities with other water and land 
resource development agencies on projects that may come under the 
jurisdictions of various authorities. This will include any land 
management agencies which may have land which would be affected by 
project measures. Coordination with the U.S. Department of the 
Interior's Fish and Wildlife Service will be in accordance with section 
12 of Pub. L. 83-566 (as amended).



Sec. 622.5  Guidelines.

    Guidelines for carrying out programs authorized under Pub. L. 83-566 
and Pub. L. 78-534 are contained in miscellaneous instructions, manuals, 
and handbooks issued by the Natural Resources Conservation Service, 
Regulations for Implementing NEPA (40 CFR Parts 1500-1508) issued by the 
Council on Environmental Quality, and in Economic and Environmental 
Principles and Guidelines for Water and Related Land Resources 
Implementation Studies issued by the Water Resources Council. Watershed 
projects are to be planned and carried out in a way that will conform to 
conditions mandated by the above and other applicable laws, Executive 
orders, and codified rules.



Sec. 622.6  Equal opportunity.

    The Pub. L. 83-566 and Pub. L. 78-534 programs will be conducted in 
compliance with all requirements respecting nondiscrimination as 
contained in the Civil Rights Act of 1964, as amended, and in the 
regulations of the Secretary of Agriculture (7 CFR Part 15), which 
provide that no person in the United States shall, on the grounds of 
race, color, national origin, sex, age, handicap, or religion be 
excluded from participation in, be denied the benefits of, or be 
otherwise subjected to discrimination under any program or activity 
conducted or assisted by the Department of Agriculture.



Sec. 622.7  Notification under Executive Order 12372.

    This program is covered under Executive Order 12372, 
``Intergovernmental Review of Federal Programs'' and 7 CFR Part 3015, 
Subpart V, ``Intergovernmental Review of the Department of Agriculture 
Programs and Activities.'' State processes or directly affected State, 
areawide, regional and local officials and entities have 60 days for 
comment starting from the date of submission of the application to the 
State Single Point of Contact.



                        Subpart B--Qualifications



Sec. 622.10  Sponsors.

    (a) Watershed projects are sponsored by one or more local 
organizations

[[Page 474]]

qualifying as sponsors. All watershed plans shall be sponsored by 
entities legally organized under State law or by any Indian tribe or 
tribal organization having the authority to carry out, operate and 
maintain works of improvement. Those plans that incorporate the use of 
nonstructural or structural measures shall be sponsored by organizations 
that, individually or collectively, have:
    (1) The power of eminent domain,
    (2) The authority to levy taxes or use other adequate funding 
sources, including state, regional, or local appropriations, to finance 
their share of the project cost and all operation and maintenance costs.
    (b) To receive Federal assistance for project installation, sponsors 
must commit themselves to use their powers and authority to carry out 
and maintain the project as planned.



Sec. 622.11  Eligible watershed projects.

    (a) To be eligible for Federal assistance, a watershed project must:
    (1) Meet the definition of a watershed area as defined in NRCS's 
National Watersheds Manual.
    (2) Not exceed 250,000 acres in size.
    (3) Not include any single structure that provides more than 12,500 
acre-feet of floodwater detention capacity nor more than 25,000 acre-
feet of total capacity.
    (4) Have significant land or water management problems that can be 
solved or alleviated by measures for watershed protection, flood 
prevention, drainage, irrigation, recreation, fish and wildlife, 
municipal or industrial water supply, or other water management.
    (5) Produce substantial benefits to the general public, to 
communities, and to groups of landowners.
    (6) Cannot be installed by individual or collective landowners under 
alternative cost-sharing assistance.
    (7) Have strong local citizen and sponsor support through agreement 
to obtain land rights, contribute the local cost of construction, and 
carry out operation and maintenance.
    (b) Works and improvement that may be included in a watershed 
project are those that:
    (1) Contribute to reducing floodwater, erosion, and sediment 
damages.
    (2) Further the conservation, development, utilization, and disposal 
of water and the conservation and proper utilization of land.
    (3) Have the greatest net national economic benefits consistent with 
protecting the Nation's environment (for structural water resource 
projects) relative to alternative works, unless an exception is granted 
by the Secretary.



                    Subpart C--Application Procedure



Sec. 622.20  Application.

    Sponsors shall follow State developed procedures (based on Executive 
Order 12372) for coordination of proposed Federal financial assistance 
and also USDA's 7 CFR part 3015 in applying for Pub. L. 83-566 
assistance. Standard forms for Federal assistance or other approved 
forms may be obtained from NRCS State, area, or field offices. These 
forms should be submitted to the Single Point of Contact in accordance 
with the State developed procedures.



Sec. 622.21  State agency approval.

    The governor or designated State agency will approve or disapprove 
the application. If disapproved, no further action is required of NRCS. 
If approved or not disapproved within 45 days, the application shall be 
sent to the NRCS state conservationist. After the state conservationist 
has determined that the application is legally valid, he will notify the 
sponsor of receipt of the application. If found not legally valid, the 
state conservationist will return it to the originator with an opinion.



                           Subpart D--Planning



Sec. 622.30  General.

    (a) Watershed projects are to be planned and carried out in a way 
that will (1) minimize all adverse impacts, and (2) mitigate unavoidable 
losses to the maximum practicable degree. Projects must comply with the 
requirements of the National Environmental Policy Act of 1969 (Pub. L. 
91-190, 83 Stat. 852) (42 U.S.C. 4321 et seq.).
    (b) Fish and Wildlife enhancement measures proposed by Federal or 
State

[[Page 475]]

fish and wildlife agencies will be included if they are technically and 
economically feasible and are acceptable to the sponsors and the NRCS. 
If additional sponsors are needed to carry out the recommended fish and 
wildlife measures, NRCS will assist fish and wildlife agencies in 
attempting to obtain such sponsors.
    (c) All planning efforts by NRCS and the sponsors must include well 
publicized public meetings to obtain public input and views on the 
project.



Sec. 622.31  Basic planning efforts.

    Upon receipt of an application, the NRCS will make any necessary 
field studies and develop a report to justify the need for planning 
effort. Once planning is authorized by the Chief of NRCS, a watershed 
plan-environmental impact statement (plan-EIS) or a watershed plan-
environmental assessment (plan-EA) will be prepared by NRCS to request 
funding. This effort must be coordinated with other State and Federal 
agencies.



Sec. 622.32  Reviews and approvals.

    (a) The watershed plan-environmental impact statement (or 
assessment) will be subject to internal technical reviews, sponsor and 
other local party review, interagency review by other Federal, state, 
and concerned groups, and a final review as stated in NRCS's National 
Watersheds Manual.
    (b) After thorough review by NRCS and other agencies, the NRCS and 
the sponsors shall accept the plan-EIS or plan-EA by signing the 
watershed agreement. The watershed plan must be approved by the 
Committees of Congress or the Chief of NRCS. Funding for installation 
can then be granted by the Chief of NRCS.



PART 623--EMERGENCY WETLANDS RESERVE PROGRAM--Table of Contents




Sec.
623.1  Purpose and scope.
623.2  Definitions.
623.3  Eligible person.
623.4  Eligible land.
623.5  Ineligible land.
623.6  Transfer of lands from the CRP to the EWRP.
623.7  Terms of the easement.
623.8  Easement value.
623.9  Easement priority.
623.10  Application to participate.
623.11  Obligations of the landowner.
623.12  Payments to landowners by NRCS.
623.13  Wetland Reserve Plan of Operations.
623.14  Easement modifications.
623.15  Transfer of land.
623.16  Monitoring and enforcement of easement terms and conditions.
623.17  Violations and Remedies.
623.18  Access to land.
623.19  Assignments.
623.20  Appeals.
623.21  Scheme and device.
623.22  Filing of false claims.


    Authority: 16 U.S.C. 3837-3837f; Pub. L. 103-75, Chapter 1, 107 
Stat. 739, 742.

    Source: 58 FR 62497, Nov. 29, 1993, unless otherwise noted.



Sec. 623.1  Purpose and scope.

    (a) The regulations in this part set forth the policies, procedures, 
and requirements for the Emergency Wetlands Reserve Program (EWRP). 
Under the EWRP, NRCS will make offers to purchase wetland conservation 
easements from persons owning croplands that were damaged by the 1993 
Midwest floods if those lands have the potential for restoration to 
wetland conditions and if the owner voluntarily agrees to restore and 
maintain those conditions. The easements are to be purchased to promote 
the restoration and maintenance of wetland characteristics, such as 
hydrologic conditions of inundation or saturation of the soil and 
hydrophytic vegetation. The functions and values of the wetlands for 
wildlife habitat, water quality improvement, flood water retention, 
floodway enhancement, ground water recharge, open space, aesthetic 
values, and environmental education will thus be promoted. The wetland 
conservation easements will permanently prohibit use of the affected 
land as cropland. Additionally, the easement shall require permanent 
maintenance of the wetland conditions, except in the case of natural 
disaster.
    (b) The EWRP is available only in the following States: Illinois, 
Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota, and 
Wisconsin. Certain cropland areas within these States have been 
determined to have been inundated by the Midwest floods of 1993. As more 
fully defined and described in

[[Page 476]]

this part, eligible land may include farmed wetlands or prior converted 
wetlands (wetlands converted prior to December 23, 1985), together with 
adjacent lands on which the wetlands are functionally dependent so long 
as the likelihood of successful restoration of such land and the 
potential wetland values merit inclusion in the program with reasonable 
costs.



Sec. 623.2  Definitions.

    The following definitions shall be applicable for the purposes of 
this part:
    (a) Agricultural commodity--means any crop planted and produced by 
annual tilling of the soil, or on an annual basis by one trip planters, 
or alfalfa and other multiyear grasses and legumes in rotation as 
approved by the Secretary. For purposes of determining crop history, as 
relevant to eligibility to enroll land in the program, land shall be 
``considered planted to an agricultural commodity'' during a crop year 
if, as determined by ASCS, as action of the Secretary prevented land 
from being planted to the commodity during the crop year.
    (b) Applicant--means a person who submits to NRCS an application to 
participate in the EWRP.
    (c) Commodity Credit Corporation--a wholly owned government 
corporation within the U.S. Department of Agriculture.
    (d) Conservation District (CD)--means a subdivision of a State or 
local government organized pursuant to applicable State law to promote 
soil and water conservation practices.
    (e) Conservation Reserve Program--means the program under which 
long-term payments and cost-share assistance is provided to individuals 
to establish permanent vegetative cover on cropland that is highly 
erodible or environmentally sensitive.
    (f) Prior converted wetland--means wetland that has been drained, 
dredged, filled, leveled, or otherwise manipulated (including any 
activity that results in impairing or reducing the flow, circulation, or 
reach of water) prior to December 23, 1985, for the purpose, or that has 
the effect, of making the production of agricultural commodities 
possible if such production would not have been possible but for such 
action.
    (g) Cost-share payment--means the payment made by NRCS to assist 
program participants in establishing the practices required in a WRPO.
    (h) Chief--means the Chief of the Natural Resources Conservation 
Service, or the Chief's designee.
    (i) Easement--means the real property interest acquired by NRCS 
under this part for wetland restoration and maintenance and which is 
properly filed with the appropriate local or State government official.
    (j) Easement area--means the land to which the approved wetland 
restoration practices and wetland conservation restrictions are to be 
applied.
    (k) Fair market value (FMV)--means the price that a willing seller 
would accept and a willing buyer would pay in an open, informed 
transaction.
    (l) Farmed wetland--means wetland that was drained, dredged, filled, 
or otherwise manipulated prior to December 23, 1985 to the extent that 
the production of agricultural commodities was made possible, but which 
continues to meet wetland criteria [refer to 7 CFR 12.32(a)(3) for 
descriptions of farmed wetlands].
    (m) Floodwater control systems--means dikes, levees, or other 
similar structural measures for the protection of cropland from 
flooding.
    (n) FWS--means the Fish and Wildlife Service of the United States 
Department of the Interior.
    (o) Local NRCS office--means the office of the Natural Resources 
Conservation Service serving the county or combination of counties in 
which the landowner's farm or ranch is located.
    (p) Participant--means a person(s) owning land subject to a 
perfected easement purchased by the Natural Resources Conservation 
Service under this part.
    (q) Offer--means the total payment NRCS will make to a landowner to 
purchase an easement.
    (r) Permanent easement--means an easement in perpetuity.
    (s) Substantially altered lands--means lands which have not been and 
are not now wetlands but could likely develop wetland characteristics in 
the future,

[[Page 477]]

as a result of the Midwest floods of 1993.
    (t) Practice--means the wetland and easement area development 
restoration measures agreed to in the WRPO to accomplish the desired 
program objectives.
    (u) Technical assistance--means the assistance provided to land 
owners to facilitate implementation of the WRPO.
    (v) Wetland--means land that (1) has a predominance of hydric soils; 
(2) is inundated or saturated by surface or groundwater at a frequency 
and duration sufficient to support a prevalence of hydrophytic 
vegetation typically adapted for life in saturated soil conditions; and 
(3) does support a prevalence of such vegetation under normal 
circumstances.



Sec. 623.3  Eligible person.

    To be eligible to participate in the EWRP, a person must be the 
owner of eligible land for which enrollment is sought and must have been 
the owner of such land for at least the preceding 12 months prior to the 
time the enrollment offer is declared by NRCS, as provided in this part. 
The person shall provide to NRCS adequate proof of ownership of the 
land. NRCS may waive the 12 month ownership requirement if:
    (a) The land was acquired by will or succession as a result of the 
death of the previous owner; or
    (b) Adequate assurances have been presented that the new owner of 
such land did not acquire such land for the purpose of placing it in the 
EWRP.



Sec. 623.4  Eligible land.

    (a) Except as otherwise provided in this section, land is eligible 
for enrollment in the EWRP only if NRCS determines that the land:
    (1) Was inundated by the Midwest floods of 1993;
    (2) If restored to productive condition, would have a fair market 
value that is less than the estimated costs of restoring the land to 
productive condition and repairing related floodwater control systems;
    (3) Is likely to have its wetland value restored with minimal costs; 
and
    (4) Is wetland farmed under natural conditions, a farmed wetland or 
prior converted wetland, or substantially altered lands which are 
cropland; or
    (5) Is wetland that has been restored on the land under a CRP 
contract, or under a Federal or State wetland restoration program with 
an easement for a period of less than 30 years.
    (b) To be eligible for enrollment in the EWRP, land must also:
    (1) Be determined by ASCS to have been annually planted or 
considered planted to an agricultural commodity in at least 1 of the 5 
previous crop years; or
    (2) Be land under a CRP contract, in which case, the land need only 
to have been planted to an agricultural commodity during 2 of the 1981 
through 1985 crop years.
    (c) Other lands may be considered eligible if the inclusion of such 
lands in the EWRP easement would significantly add to the functions and 
values of the wetlands to be restored under this part, as determined by 
NRCS.
    (d) The criteria and procedures contained in 7 CFR part 12 will be 
used to identify wetlands, converted wetlands, and farmed wetlands.



Sec. 623.5  Ineligible land.

    Notwithstanding any other provisions of this part, the following 
land is not eligible for enrollment in the EWRP:
    (a) Land that contains either timber stands or trees established in 
connection with a CRP contract;
    (b) Lands owned or acquired by an agency of the Federal Government;
    (c) Land already subject to a deed restriction prohibiting the 
production of agricultural commodities or the alternation of existing 
wetland hydrologic conditions;
    (d) Land located between the pre-flood mainstem levees and the 
river; or
    (e) Land that was restored to wetland conditions, as required under 
Part 12 of this title, to mitigate the conversion of wetland to cropland 
use.



Sec. 623.6  Transfer of lands from the CRP to the EWRP.

    Land that is subject to an existing CRP contract administered under 
7 CFR parts 704 and 1410 may be transferred into the EWRP only if:

[[Page 478]]

    (a) The land and landowner(s) meet the requirements of this part; 
and
    (b) The application for transfer into the EWRP is approved by 
Commodity Credit Corporation (CCC), if found to be in the interest of 
the program. If such transfer is requested by the owner and approved by 
CCC, the CRP contract for the property will be terminated or otherwise 
modified subject to such terms and conditions as are mutually agreed by 
the landowner, CCC, and NRCS.



Sec. 623.7  Terms of the easement.

    Landowners will grant to NRCS an easement which shall run with the 
land and be in favor of NRCS and its assigns or delegates. The easement 
shall require the land to be monitored as specified by the WRPO to 
promote the purposes of this part, including but not limited to 
maintenance of the restored wetland for entire length of the easement. 
Such easement shall: (a) be a permanent reserve interest easement; (b) 
require that the maintenance of the land be in accordance with the terms 
of the easement and with the terms of the WRPO and shall be the 
responsibility of the owners of the property and their successors of any 
kind, including, but not limited to, the owners' heirs and assigns; (c) 
grant to NRCS a right of access in favor of NRCS and its delegates, 
assigns and successors of any kind, to the portion of the property which 
is subject to the provisions of the easement. Maintenance of such access 
shall be the responsibility of the owner and their successors of any 
kind; (d) reserve to NRCS the right to permit such compatible uses of 
the easement area as may be identified in the WRPO; (e) reserve to the 
landowner those compatible uses identified in the WRPO that are 
permitted to be pursued by the landowner; (f) be signed by each person 
with an interest of any kind in the land covered by the easement; (g) 
permanently prohibit use of the easement area for cropland, except to 
harvest an agricultural commodity planted before the easement is 
perfected; and (h) require permanent maintenance of the wetland 
conditions, except in the case of natural disaster.



Sec. 623.8  Easement value.

    NRCS offers for easements will be based on the fair market value, as 
determined by the NRCS State Conservationist, of the land covered by the 
easements. Fair market value will be based on post-flood conditions as 
if reclaimed. Land easement values will be determined by the State 
Conservationist in consultation with a technical committee. A technical 
committee shall included representatives of: ASCS, Extension Service, 
and FWS. Additionally, the State Conservationist may collect information 
from other sources as he deems necessary. Coordination between States 
will be provided by the Chief, NRCS.



Sec. 623.9  Easement priority.

    The State Conservationist, in consultation with the FWS and with 
input from a technical committee and other interested Federal agencies, 
will establish a ranking process to establish the priority of parcels 
offered into the EWRP. This process will rank the floodway enhancement 
and environmental benefits per dollar of government expenditure on 
restoration and easement purchase. The factors for determining the 
priority for selection will consider the following:
    (a) Protection and enhancement of habitat for migratory birds and 
wildlife, including the contribution the restoration may make to the 
recovery of threatened and endangered species,
    (b) Floodway expansion,
    (c) Proximity to other protected wetlands,
    (d) Level of hydrology restored,
    (e) Wetland function or values,
    (f) Likelihood of successful restoration of wetland values,
    (g) Cost of restoration and easement purchase, and
    (h) Other factors as determined appropriate by NRCS.



Sec. 623.10  Application to participate.

    (a) A person seeking to enroll land in the EWRP must apply for 
enrollment on an approved NRCS form. The application to participate must 
be filed with the local NRCS field office during an announced period for 
such submissions.

[[Page 479]]

    (b) A person submitting an application to participate shall not be 
obligated to accept an NRCS offer to purchase an easement if one is 
forthcoming.
    (c) An application to participate must be signed by all owners of 
the property or their duly authorized representative(s).



Sec. 623.11  Obligations of the landowner.

    (a) All owners of land who accept an EWRP offer from NRCS shall:
    (1) Comply with the terms of the easement.
    (2) Comply with all terms and conditions of the WRPO for the full 
life of the easement.
    (3) Ensure that the easement granted to NRCS is superior to the 
interest of all other parties who may have an interest in the easement 
area, except as authorized by NRCS. Such action shall include, but not 
be limited to, obtaining a written statement of consent to such a 
superior easement from those holding a security interest or any other 
encumbrance or the land covered by the easement. Additionally, the 
landowner shall perfect the easement with superior NRCS interest in 
accordance with State law.
    (4) Agree to the permanent retirement of the aggregate total of crop 
acreage bases, and allotment and mandatory quota on the farm or ranch in 
order to maintain the base allotment on quota acres at or below the 
number of acres of cropland after the easement has been perfected.
    (5) Not allow grazing or commercial use of the land covered by an 
easement except as provided for in the WRPO, or harvesting of any 
agricultural commodity produced on the land subject to the EWRP 
easement.
    (6) Comply with Federal or State noxious week laws in the manner 
specified in the WRPO.
    (7) Control other identified weed and pest species, in the manner 
specified in the WRPO.
    (8) Be responsible for repairs, improvements, and inspections of the 
WRPO practices as necessary to maintain existing public drainage systems 
when the land is restored to the condition required by the terms of the 
easement, the contract, and the easement.
    (9) Be permitted to control public access, in accordance with the 
WRPO, on the land enrolled in the program.
    (10) Implement any additional provisions that are required by NRCS 
in consultation with FWS in the contract, WRPO, or easement, in order 
to, as determined by NRCS, facilitate the administration of the EWRP.
    (11) Not alter the vegetation, except to harvest already planted 
crops or forage, or hydrology on such acres subsequent to perfection of 
the easement by the landowner, except as provided for in the easement or 
WRPO.
    (12) Be responsible for the long-term management of the easement in 
accordance with the terms of the easement and related agreements 
including the WRPO. Owners may enter into agreements with Federal or 
State agencies or private organizations to assist in the management of 
the easement area. No NRCS funds will be provided to these agencies or 
organizations for management expenses. Responsibility for management of 
the easement shall in all cases remain with the owner and the owner's 
successors of any kind regardless of whether arrangements are made for 
third-party management.
    (13) Agree that each person with an interest in the land covered by 
an easement under EWRP shall be jointly and severally responsible for 
compliance with the WRPO, the easement, the provisions of this part, and 
for any refunds or payment adjustment which may be required for 
violation of any terms or conditions of the WRPO, the easement, or 
provisions of this part.
    (14) Refrain from taking any action on the easement area unless 
specifically authorized in the reserve interest easement or the WRPO; 
and
    (15) Secure any necessary local, State and Federal permits prior to 
commencing restoration of the designated area.
    (b) In addition, program participants and their successors of any 
kind may:
    (1) Not alter wildlife habitat and other natural land features of 
the enrolled land unless authorized by the WRPO.
    (2) Apply pesticides or fertilizers on enrolled land or mow such 
land, only as provided for in the WRPO.

[[Page 480]]

    (3) Not engage in any activities on other land on the farm on which 
the easement exists that will, as determined by NRCS; (i) alter the flow 
of surface or subsurface water into or out of the easement area except 
as specified in the WRPO; or (ii) be otherwise inconsistent with the 
terms of the easement.
    (c) The activities of any person on the property shall be considered 
for purposes of this section to be the actions of the program 
participant. However, if the NRCS determines that the activities of the 
person were beyond the control of the program participants, NRCS may 
adjust the remedies provided for in this part to the extent determined 
consistent with program goals. Obligations created by the easement shall 
run with the land and shall bind all persons having an interest in the 
property at any time whether such interest is created by death of the 
owner, sale, assignment, or otherwise.



Sec. 623.12  Payments to landowners by NRCS.

    (a) NRCS will share the cost with landowners of rehabilitating the 
enrolled land in the EWRP as provided in the WRPO. The amount of the 
cost-share assistance shall be specified in the contract. Eligible costs 
for such cost-share assistance by NRCS shall only include those costs 
which NRCS determines are appropriate and shall be subject to the 
following restrictions:
    (1) The State Conservationist will establish cost-share rates of 
between 75 to 100 percent of the historical cost of establishing or 
installing the practices specified in the WRPO; or pay the average cost 
of establishing the practices specified in the WRPO, based on the 
historical cost of establishing the practices in the State;
    (2) Cost-share payments may be made only upon a determination that 
an approved practice or an identifiable unit of the practice has been 
completed in compliance with NRCS approved standards and specifications; 
and
    (3) Cost-share payments may not be made for the maintenance of the 
practice except as specifically permitted in writing by the State 
Conservationist.
    (b) Notwithstanding paragraph (a)(3) of this section, cost share 
payments may be authorized for the replacement or restoration of 
practices for which cost share assistance has been previously allowed 
under the EWRP, but only if:
    (1) Replacement or restoration of the practice is needed to meet the 
objectives for which the easement was established; and
    (2) The failure of the original practice was due to reasons beyond 
the control of the participant.
    (c)(1) NRCS shall pay the amount agreed upon by NRCS and the 
landowner for the purchase of the easement in a lump-sum amount after 
the easement is perfected in compliance with State law, except in the 
case of paragraph (c)(2) of this section.
    (2) For all easements, NRCS shall pay no more than 75 percent of the 
total easement price pending completion of the practices to restore the 
wetlands as provided under the WRPO. The remaining amount shall be paid 
when NRCS determines the restoration is complete.
    (d) After an easement is perfected, NRCS will reimburse landowners 
for fair and reasonable expenses incurred for title searches, filing 
expenses, and related costs, as determined by NRCS.



Sec. 623.13  Wetlands reserve plan of operations.

    (a) After NRCS has accepted the applicant for enrollment in the 
program, a WRPO will be developed by the landowner and NRCS, in 
consultation with FWS.
    (b) The WRPO shall:
    (1) Include an aerial photo displaying the land offered for 
enrollment;
    (2) Specify the manner in which the eligible land shall be restored, 
operated, and maintained to accomplish the goal of the program, 
including, but not limited to: (i) measures to control noxious weeds and 
insect pests in order to comply with applicable Federal, or State 
noxious weed and pest control laws; and (ii) measures to control other 
specified species of weeds, insects or pests;
    (3) Specify compatible land uses for personal enjoyment for which 
the landowner may be compensated. These compatible land uses shall be 
reserved to the landowner in the easement. Such uses may include, among 
others:

[[Page 481]]

(1) recreational use, hunting and fishing; (ii) manage timber production 
including harvesting; and (iii) managed haying or grazing consistent 
with the goals of the program;
    (4) Set out cost estimates of the practices required by the WRPO, 
the offer for the easement, and other reimbursement costs;
    (5) Identify access routes to be maintained for wetland restoration 
activities and future management and easement monitoring in connection 
with the land to be enrolled;
    (6) Make provisions deemed necessary for maintaining public drainage 
systems if present on lands subject to the WRPO;
    (7) Contain scheduled implementation dates for restoration 
practices;
    (8) Contain other provisions or limitations as NRCS, in consultation 
with the FWS, determines to be necessary.
    (c) NRCS in consultation with FWS will collect from State or Federal 
agencies whatever additional information is deemed necessary for the 
development of the WRPO with the landowner.
    (d) The WRPO must be signed by NRCS, FWS, Conservation District 
(CD), and the landowner(s). However, if agreement between NRCS and FWS, 
or CD at the local level is not reached within 20 calendar days, the 
WRPO shall be developed by the State Conservationist of NRCS in 
consultation with FWS or CD.
    (e) The WRPO may require that a temporary vegetative or water cover 
be established on the property if immediate establishment of a permanent 
cover is not practicable or otherwise desirable.
    (f) The terms of an approved WRPO shall not relieve the program 
participant of any obligation or term imposed or provided for in the 
contract, the easement, or this part.
    (g) WRPO, where appropriate, will provide for the development of a 
tree planting plan with the assistance of the FS or State forestry 
agency.
    (h) The WRPO, where appropriate, will provide for the development by 
NRCS of detailed plans for weed control, structural measures and their 
operation, vegetation establishment and management, and other measures 
as needed.
    (i) Revisions of the WRPO to enhance or protect the value for which 
the easement was established may be made at any time at the request of 
either NRCS, FWS, the owner and upon the concurrence of all three 
parties.



Sec. 623.14  Easement modifications.

    After the easement has been perfected, no change will be made in the 
easement without a written request by the participant and the written 
consent of the Chief. Approval may be granted to achieve the goals of 
EWRP or facilitate the practical administration and management of the 
easement area or the program and the approval will not adversely affect 
the functions and values for which the easement was established. A 
modified easement shall be perfected in accordance with State law and 
NRCS superior interest shall be reserved by the landowner in accordance 
with Secs. 623.7 and 623.11(a)(3).



Sec. 623.15  Transfer of land.

    (a) If a new owner purchases or obtains the right and interest in, 
or right to occupancy of, the land subject to a EWRP easement, such new 
owner shall be subject to the terms and conditions of the easement. The 
participant who is the signatory to the easement shall be entitled to 
receive all remaining payments, if any, for the purchase of the 
easement. Eligible cost-share payments shall be made to the 
participants. with respect to costs actually incurred.
    (b) Upon the transfer of the property subject to an EWRP easement, 
any remaining cost-share payments shall be paid to the new owner or 
purchaser only if the new owner or purchaser becomes a party to the WRPO 
within 60 days of the perfection of the deed transferring title to the 
new owner. Such payments shall be paid in the manner agreed to by the 
participant and the buyer. The new owner or purchaser shall be 
responsible for assuring completion of all measures and practices 
required by the contract and the WRPO.
    (c) Any transfer of the property prior to the perfection of the 
easement shall void any NRCS offer or WRPO unless

[[Page 482]]

the new owner agrees to accept the offer within 60 days of the 
perfection of the deed transferring the land to the new owner.



Sec. 623.16  Monitoring and enforcement of easement terms and conditions.

    (a) NRCS or its representative shall be permitted to inspect each 
easement area at any and all times determined necessary by NRCS to 
ensure that:
    (1) Structural and vegetative restoration work are properly 
maintained;
    (2) The wetlands and adjacent upland habitat of the easement area is 
being managed as required in the WRPO and the terms of the easement; and
    (3) Uses of the area are consistent with the terms and conditions of 
the easement and the WRPO.
    (b) If an owner or other interested party is unwilling to 
voluntarily correct, in a timely manner, deficiencies in compliance with 
the terms of the WRPO, the EWRP easement, or any related agreements, 
NRCS may at the expense of any person who is subject to the EWRP 
easement correct such deficiency. Such NRCS action shall be in addition 
to other remedies available to NRCS.
    (c) Monitoring and enforcement responsibilities may be delegated by 
NRCS at any time to other Federal or State agencies. Landowners may 
transfer management responsibilities only to Federal, State, or local 
agencies or private organizations that have been approved by NRCS in 
advance as having the appropriate authority, expertise, and resources 
necessary to carry out such delegated responsibilities.



Sec. 623.17  Violations and remedies.

    (a) If a violation of the terms and conditions of the contract, the 
WRPO, or the recorded EWRP easement occurs, the easement shall remain in 
force and NRCS may:
    (1) Require the owner to fully restore the easement area to fulfill 
the terms and conditions of the easement and WRPO; and
    (2) Require the owner, who received payments from NRCS for any 
purpose under this part, to refund all or part of such payments received 
together with interest, as determined appropriate by NRCS.
    (b) If an owner fails to carry out the terms and conditions of an 
easement, appropriate legal action may be initiated. The owner of the 
property shall reimburse NRCS for all costs incurred including, but not 
limited to, legal fees.



Sec. 623.18  Access to land.

    In order to determine eligibility and compliance with respect to 
this part, representatives of the Department, or designee thereof, shall 
have the right of access to:
    (a) Land which is the subject of an application made in accordance 
with this part,
    (b) Land which is subject to an easement made in accordance with 
this part, and
    (c) Records of the participant showing status of all ownership 
interest in lands subject to this part.



Sec. 623.19  Assignments.

    Any participant entitled to any cash payment under this program may 
assign the right to receive such cash payments, in whole or in part.



Sec. 623.20  Appeals.

    A participant in the EWRP may obtain a review of any administrative 
determination concerning land eligibility, development of a WRPO, or any 
adverse determination under this part in accordance with the 
administrative appeal regulations provided in part 614 of this title.

[60 FR 67316, Dec. 29, 1995]



Sec. 623.21  Scheme and device.

    (a) If it is determined by NRCS that a landowner has employed a 
scheme or device to defeat the purposes of this part, any part of any 
program payment otherwise due or paid such landowner during the 
applicable period may be withheld or be required to be refunded with 
interest thereon, as determined appropriate by NRCS, and the contract 
with the landowner may be terminated. In such a case, NRCS may also 
continue to hold the easement interest acquired under this part.
    (b) A scheme or device includes, but is not limited to, coercion, 
fraud, misrepresentation, depriving any other

[[Page 483]]

person of payments for cost-share practices or easements for the purpose 
of obtaining a payment to which a person would otherwise not be 
entitled.
    (c) An owner of land subject to this part who succeeds to the 
responsibilities under this part shall report in writing to NRCS any 
interest of any kind in the land subject to this part that is retained 
by a previous participant. Such interest includes a present, future or 
conditional interest, reversionary interest or any option, future or 
present, with respect to such land and any interest of any lender in 
such land where the lender has, will, or can obtain, a right of 
occupancy to such land or an interest in the equity in such land other 
than an interest in the appreciation in the value of such land occurring 
after the loan was made. A failure of full disclosure will be considered 
a scheme or device under this section.



Sec. 623.22  Filing of false claims.

    If it is determined by NRCS that any participant has knowingly 
supplied false information or has knowingly filed a false claim, such 
participant shall be ineligible for any payment under this part. False 
information or false claims include claims for payment for practices 
which do not meet the specifications of the applicable WRPO. Any amounts 
paid under these circumstances shall be refunded, together with interest 
as determined by NRCS, and any amounts otherwise due such participant 
shall be withheld.



PART 624--EMERGENCY WATERSHED PROTECTION--Table of Contents




Sec.
624.1  Purpose.
624.2  Objective.
624.3  Scope.
624.4  Administration.
624.5  Eligible emergencies, recipients, and assistance.
624.6  Eligible measures.
624.7  Limitations on use of emergency funds.
624.8  Environment.
624.9  Application.
624.10  Investigation and request for funds.

    Authority: Sec. 216, Pub. L. 81-516, 33 U.S.C. 701b-1; and sec. 403, 
Pub. L. 95-334, 16 U.S.C. 2203, 5 U.S.C. 301.

    Source: 46 FR 56577, Nov. 17, 1981, unless otherwise noted.



Sec. 624.1  Purpose.

    This part sets forth the requirements and procedures for Federal 
assistance administered by the Natural Resources Conservation Service 
(NRCS) under section 216, Pub. L. 81-516 and section 403 of Title IV of 
the Agricultural Credit Act of 1978, Pub. L. 95-334.



Sec. 624.2  Objective.

    The objective of the Emergency Watershed Protection (EWP) program is 
to assist in relieving imminent hazards to life and property from floods 
and the products of erosion created by natural disasters that cause a 
sudden impairment of a watershed.



Sec. 624.3  Scope.

    (a) Authorized EWP technical and financial assistance may be made 
available when an emergency exists. Emergency water shed protection 
consists of emergency measures for runoff retardation and soil erosion 
prevention as needed to reduce hazards to life and property from floods, 
drought, and the products of erosion on any watershed imparied by a 
natural disaster.
    (b) Technical assistance includes engineering and other technical 
expertise necessary for planning and installing emergency measures. 
Emergency watershed protection is authorized in the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, and the U.S. 
Virgin Islands.



Sec. 624.4  Administration.

    NRCS shall provide overall administrative directive and guidance for 
EWP. NRCS will transfer funds to the Forest Service (FS) of the U.S. 
Department of Agriculture (USDA) at the national level for work to be 
installed by FS or its cooperators. Under general program criteria and 
procedures established by NRCS, FS is responsible for administering EWP 
measures on National Forests and National Grasslands. FS is also 
responsible for emergency measures on all forested lands or rangelands 
within the National Forests, on adjacent rangelands that are 
administered under formal agreement with FS, and on other forest lands. 
On

[[Page 484]]

these lands, emergency work is done by either NRCS or FS as mutually 
agreed. In carrying out their responsibilities, FS and NRCS work 
cooperatively with other Federal, State, and local government agencies.



Sec. 624.5  Eligible emergencies, recipients, and assistance.

    (a) Conditions of eligibility. Emergency watershed protection 
assistance is made available when the following conditions of 
eligibility are determined to exist by the state conservationist. 
Procedures for providing emergency assistance vary according to whether 
the watershed emergency constitutes an exigency or a nonexigency 
situation. Emergency measures for both types of situations are those 
undertaken to remove or reduce hazards created by the disaster to 
safeguard life and property from flooding, drought, or the products of 
erosion.
    (1) Watershed emergency. A watershed emergency exists when a natural 
occurrence causes a sudden impairment of a watershed that creates an 
imminent threat to life or property. To be eligible for assistance, the 
imminent threat to life or property must significantly exceed that which 
existed before the impairment.
    (i) Natural occurrence includes but is not limited to floods, fires, 
windstorms, earthquakes, volcanic actions, and drought.
    (ii) A watershed impairment exists when the ability of a watershed 
to carry out its natural functions is reduced to the extent of creating 
an imminent threat to life or property.
    (iii) A sudden watershed impairment results from a single natural 
occurrence or a short-term combination of occurrences. Watershed 
impairments resulting from long-term combinations or series of natural 
or other occurrences are not considered sudden watershed impairments.
    (iv) Exigency and nonexigency situations. Watershed emergencies are 
classified as either exigency or nonexigency situations.
    (A) An exigency exists when the near-term probability of damage to 
life or property is high enough to demand immediate Federal action. An 
exigency continues to exist as long as the probability of damage 
continues at a high enough level.
    (B) A nonexigency situation exists when the near-term probability of 
damage to life or property is high enought to constitute an emergency 
but not sufficiently high to be considered an exigency. A nonexigency 
situation continues to exist as long as the probability of damage 
remains high enough to be considered an emergency.
    (v) Changes in emergency situations. Changes in the near-term 
probability of threat to life or property will be reflected by changes 
in the classification of emergencies. As the near-term probability that 
the threats will be realized is reduced because of emergency assistance 
or other factors, exigency and nonexigency situations will be 
appropriately reclassified. Similarly, as occurrences increase the 
probability of threats to life or property, situations previously 
considered nonemergencies will be appropriately reclassified as 
nonexigencies and previous nonexigency emergency situations will be 
appropriately reclassified as exigencies.
    (vi) Drought emergencies. Assistance is available in drought 
emergencies when the eligibility criteria specified in this rule are met 
and the Agricultural Stabilization and Conservation Service (ASCS) 
determines that a drought emergency exists under regulations promulgated 
to carry out sections 401 and 402 of the Agriculture Credit Act of 1978 
(Pub. L. 95-334).
    (b) Eligible recipients. Include those public or private landowners, 
land managers, land users, or others who--
    (1) Have a legal interest in or responsibility for the values 
threatened by a watershed emergency; and
    (2) Have exhausted or have insufficient funds or other resources 
available to provide adequate relief from the applicable hazards. 
Interested persons other than Federal agencies must be represented by a 
project sponsor. Project sponsors must:
    (i) Be a State or political subdivision of a State or a qualified 
Indian tribe or tribal organization;
    (ii) Have legal authority and agree to use such authority to obtain 
needed landrights, water rights, and permits; and

[[Page 485]]

    (iii) Agree to provide for the operation and maintenance of 
completed emergency measures.
    (c) Eligible assistance. (1) In an exigency--
    (i) Federal emergency funds may bear up to 100 percent of the 
construction costs of emergency measures.
    (ii) Funds must be obligated within 10 days after receipt of the 
emergency funds or after the date of the disaster event when conditions 
permit beginning construction activities, whichever is later.
    (iii) Emergency work must be completed within 30 days after funds 
are obligated.

The NRCS Chief retains discretion to grant extensions for good cause. 
Documentation must support requests for extensions. Extensions may 
extend an additional 10 days for the obligation of funds and an 
additional 30 days for the completion of work.
    (2) In a nonexigency--
    (i) Federal emergency funds may bear up to 80 percent of the 
construction costs for emergency measures.
    (ii) Funds must be obligated and construction completed within 220 
consecutive calendar days after the date of receipt of funds. Extensions 
are permitted at the discretion of the NRCS Chief if unforeseen or 
uncontrollable events cause delays. A request for such an extension must 
be documented.
    (3) Sponsors may provide their share of construction costs in the 
form of cash; inkind services such as labor, equipment, etc.; or a 
combination of cash and inkind services. Cost sharing is waived for 
measures to be installed on Federal lands such as national forests or 
national grasslands.

[46 FR 56577, Nov. 17, 1981, as amended at 48 FR 4448, Feb. 1, 1983]



Sec. 624.6  Eligible measures.

    (a) Eligibility. To be eligible for assistance a measure must--
    (1) Retard runoff, prevent flooding, or prevent soil erosion;
    (2) Reduce threats to life or property resulting from a watershed 
emergency;
    (3) Be economically and environmentally defensible and sound from an 
engineering standpoint;
    (4) Be limited to the minimum that will reduce applicable threats to 
a level not to exceed that which existed before the impairment of the 
watershed;
    (5) Yield beneficial effects to more than one individual except in 
an exigency; and
    (6) Conform to rules and regulations published by NRCS for complying 
with Executive Order 11990, Protection of Wetlands, and Executive Order 
11988, Floodplain Management.
    (b) Documentation. (1) When an exigency does not exist, the economic 
rationale of proposed measures must be submitted in appropriate detail 
with the request for funds. Generally, the expected value of imminent 
damages (amount of damages multiplied by the near-term probability of 
their occurrence) must exceed the cost of emergency measures. 
Information provided in the request for emergency funds to support 
economic defensibility of the measures must include but is not limited 
to--
    (i) Number and extent of values at risk because of the watershed 
impairment;
    (ii) Estimated damages to the values at risk if the threat is 
realized;
    (iii) Events that must occur for the threat to be realized and the 
estimated probability of their occurrence both individually and 
collectively; and
    (iv) Estimates of the nature, extent, and cost of emergency measures 
to be constructed to relieve the threat.
    (2) In nonexigency situations, the state conservationist shall also 
submit adequate information to substantiate the environmental 
defensibility the emergency measures proposed for installation. This 
must include but is not limited to--
    (i) Thorough descriptions of beneficial and adverse effects on 
environmental resources including fish and wildlife habitat;
    (ii) Descriptions of water quality and water conservation impacts as 
appropriate; and
    (iii) Analysis of effects on downstream water rights.

The Chief shall issue instructions as are necessary to determine the 
economic and environmental defensibility of measures proposed for 
installation consistent with this rule.
    (c) Implementation. (1) When planning emergency measures, emphasis 
should

[[Page 486]]

be placed on measures that are the least expensive and most 
environmentally sound. The measures are to be accomplished by using the 
least damaging construction techniques and equipment that will retain as 
much of the existing characteristics of the channel and riparian habitat 
as possible. Emergency measure construction practices may include but 
are not limited to such things as seasonal construction, minimum 
clearing, reshaping soil, limiting excavation to one bank (on 
alternating sides where appropriate), and prompt revegetation of 
disturbed areas.
    (2) Measures needed to offset adverse impacts should be planned for 
installation concurrent with installation of the emergency measures. If 
they cannot be installed then, plans should be included to ensure their 
installation within 30 days. Cost sharing for these measures is at the 
same rate as for the original emergency construction.
    (3) An EWP team consisting of NRCS personnel from the National 
Office and the technical service center shall determine the eligibility 
of all permanent, enduring, or long-life measures or practices proposed 
for construction. The team shall determine the need for funds before any 
commitments are made.
    (4) Where lands under jurisdiction of FS are involved, the team will 
be assisted by FS representatives of the National Office and area or 
regional offices. The team shall also be available, at the request of 
the state conservationists, regional foresters, and area directors, to 
help determine the eligibility of other EWP measures or practices and to 
assist with administrative details.

[46 FR 56577, Nov. 17, 1981, as amended at 48 FR 4448, Feb. 1, 1983]



Sec. 624.7  Limitations on use of emergency funds.

    Emergency watershed protection funds may not be used to:
    (a) Perform operation or maintenance (periodic work that is 
necessary to maintain the efficiency and effectiveness of a measure to 
perform as originally designed and installed).
    (b) Solve watershed problems that existed before the disaster.
    (c) Repair, rebuild, or maintain private or public transportation 
facilities, public utilities, or similar facilities.
    (d) Perform work on features of projects installed under the 
authority of Pub. L. 83-566, Pub. L. 78-534, Resource Conservation and 
Development, or measures installed by other Federal agencies. Exceptions 
may be made at the discretion of the Chief of NRCS.
    (e) Construct works that would adversely affect downstream water 
rights.
    (f) Make improvements to public or private property not essential to 
the reduction of threats caused by watershed improvement.
    (g) Perform any work not determined to be economically and 
environmentally defensible under the provisions of this rule.

[46 FR 56577, Nov. 17, 1981, as amended at 48 FR 4448, Feb. 1, 1983]



Sec. 624.8  Environment.

    Environmental aspects of emergency work are to be given careful 
consideration. A program environmental impact statement (EIS) for EWP 
work has been developed in compliance with section 102(2)(C) of the 
National Environmental Policy Act of 1969 (Pub. L. 91-190, 83 Stat. 852 
(42 U.S.C. 4321 et seq.)). An environmental evaluation is to be prepared 
for all nonexigency situations. State conservationists shall notify 
concerned area and field offices of the Fish and Wildlife Service, the 
Environmental Protection Agency, and, through existing coordination 
mechanisms of State clearinghouses, the State fish and game and other 
appropriate agencies of anticipated EWP work. They shall invite the 
assistance of these agencies in preparing the environmental evaluation 
and in planning and implementing the emergency work. Archeological, 
historical, or other special expertise needed is to be solicited from 
appropriate agencies and groups. Environmental and other considerations 
are to be integrated into emergency work by using an interagency and 
interdisciplinary planning approach.

[48 FR 4448, Feb. 1, 1983]

[[Page 487]]



Sec. 624.9  Application.

    Sponsors may apply to any NRCS office for EWP assistance. NRCS shall 
help sponsors prepare their applications. The NRCS offices are defined 
in part 600 of this chapter. Information supplied should include the 
nature, location, and scope of the problems and the assistance needed.



Sec. 624.10  Investigation and request for funds.

    (a) On receipt of an application for EWP, the State conservationist 
and regional forester or area director, where appropriate, shall 
immediately investigate the emergency situation to determine if EWP is 
applicable. In carrying out EWP work, State conservationists shall take 
into consideration two broad types or degrees of emergency situations:
    (1) An imminent situation of unusual urgency--and exigency--and (2) 
an emergency requiring action but of less urgency than an imminent 
situation. (See Sec. 624.5)
    (b) Prompt remedial action to eliminate an imminent threat to loss 
of life is to be provided when an exigency exists. The State 
conservationist shall notify Project Development and Maintenance and 
indicate the nature of the emergency and the estimated amount of funds 
needed. If funds are made available, the state conservationist may 
authorize actions necessary to remedy the emergency. The state 
conservationist shall confirm the situation in a memorandum to the Chief 
that explains the nature of the emergency, the location of the 
emergency, the kind of remedial work and funds needed, sponsors, 
description of potential damage, etc. In these situations, the 
memorandum from the State conservationist with its brief information 
constitutes the request for funds.
    (c) If an exigency does not exist but the impairment justifies 
emergency assistance, the state conservationist shall submit a request 
for funds to the Chief within 60 days after the disaster event. Neither 
NRCS nor FS may commit funds until notified by the National Office of 
the availability of funds.

[[Page 488]]



                   SUBCHAPTER D--LONG TERM CONTRACTING





PART 630--LONG TERM CONTRACTING--Table of Contents




    Authority: Pub. L. 75-430, 49 Stat. 1151 (16 U.S.C. 590d); Pub. L. 
84-1021, 70 Stat. 1115 (16 U.S.C. 590p(b); Pub. L. 91-118, 83 Stat. 194 
(16 U.S.C. 590d).



Sec. 630.1   Purpose.

    The purpose of this subchapter is to provide for programs to extend 
cost sharing and technical assistance through long term contracts to 
landowners and others for making land use changes and to install 
measures to conserve, develop, and utilize the soil, water, and related 
natural resources on their lands.

[40 FR 53370, Nov. 18, 1975]



PART 631--GREAT PLAINS CONSERVATION PROGRAM--Table of Contents




                      Subpart A--General Provisions

Sec.
631.1  Purpose.
631.2  Definitions.
631.3  Administration.
631.4  Program applicability.
631.5  Land user eligibility.
631.6  Land eligible for the program.
631.7  Conservation treatment eligible for cost sharing.
631.8  Cost-share rates.
631.9  Conservation plan.

                          Subpart B--Contracts

631.10  Contracts.
631.11  Conservation practice maintenance.
631.12  Cost-share payments.
631.13  Disputes and appeals for matters other than contract violations.
631.14  Contract violations.

                        Subpart C--Miscellaneous

631.20  Setoffs.
631.21  Compliance with regulatory measures.
631.22  Access to operating unit.
631.23  State conservationist's authority.

    Authority: 16 U.S.C. 590p(b).

    Source: 49 FR 11142, Mar. 27, 1984, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 631.1  Purpose.

    (a) The Great Plains Conservation Program (GPCP) is a special 
program targeted to the total conservation treatment of farm or ranch 
units with the most severe soil and water resources problems. The 
purpose of the program is to assist farm, ranch and other land users to 
make changes in their cropping systems and land uses which are needed to 
conserve, develop, protect, and utilize the soil and water resources of 
their lands. This purpose is achieved by controlling erosion, conserving 
water, and adjusting land use to mitigate climatic, soil, topographic, 
flood, saline and other natural hazards.
    (b) Program participation is voluntary and is carried out by 
applying a conservation plan encompassing an entire operating unit. A 
conservation plan is developed with the land user in consultation with 
the local conservation district and is used to establish a GPCP 
contract. This contract provides for cost sharing between the land user 
and the Secretary of Agriculture for applying needed land use 
adjustments and conservation treatment within a specified time schedule. 
The program is supplemental to, not a substitution for, other programs 
in the Great Plains area.



Sec. 631.2  Definitions.

    The terms defined shall have the following meaning in this part and 
in all contracts, forms, documents, instructions, and procedures in 
connection therewith, unless the contract or subject matter requires 
otherwise.
    Applicant. A land user who has requested in writing to participate 
in the GPCP.
    Area conservationist. The NRCS employee who is the supervisor with 
primary responsibility for quality control. This person serves as 
contracting officer if designated by the state conservationist.
    Chief. The Chief of the Natural Resources Conservation Service 
(NRCS), USDA.

[[Page 489]]

    Conservation district (CD). A conservation district, soil 
conservation district, soil and water conservation district, natural 
resource district, or similar legally constituted body with which the 
Secretary of Agriculture cooperates pursuant to the Soil Conservation 
and Domestic Allotment Act. The members of governing bodies of these 
organizations may be known as supervisors, directors, or commissioners.
    Conservation plan. A written record of the land user's decisions 
regarding planned land use and treatment, including estimates of extent 
and cost. The timing of applications for each practice and/or 
identifiable unit is scheduled in the conservation plan.
    Conservation practice. A specific treatment which is planned and 
applied according to NRCS standards and specifications as a part of a 
resource management system for land, water, and related resources.
    Contract. A legal document that binds both the participants and the 
federal government to carry out the terms and conditions of the 
conservation plan. The contract forms the basis for GPCP sharing the 
costs of implementing the conservation plan.
    Contracting officer. The NRCS employee authorized to sign GPCP 
contracts on behalf of NRCS.
    County program committee. A group of Federal, State, and local 
officials selected by the designated conservationist. The committee 
provides ideas to the designated conservationist regarding program 
development and interagency program coordination.
    Designated county. A county within a Great Plains state that the 
Chief has designated for participation.
    Designated conservationist. A district conservationist or other NRCS 
employee who the state conservationist has designated to be responsible 
for administration of the GPCP in a designated county.
    District conservationist. The NRCS employee assigned to direct and 
supervise NRCS activities in one or more conservation districts.
    Great Plains area. The area comprising those counties within the 
Great Plains states designated for GPCP participation.
    Great Plains states. Colorado, Kansas, Montana, Nebraska, New 
Mexico, North Dakota, Oklahoma, South Dakota, Texas, and Wyoming.
    Identifiable unit. A discernibly distinct component of a 
conservation practice.
    Land user. An individual, partnership, firm, joint-stock company, 
corporation, association, trust, estate, or other nonpublic legal entity 
having control of a unit of land. This definition includes two or more 
persons having a joint or common interest.
    Life span. The period of time specified in the contract and/or 
operation and maintenance agreement during which the resource management 
systems of component practices are to be maintained and used for the 
intended purpose. Most practices will have a useful life beyond the 
specified life span.
    Operation and maintenance agreement. A document signed by both the 
participant and the contracting officer outlining the operation and 
maintenance requirements for applied conservation treatment.
    Operating unit. A parcel or parcels of land, whether contiguous or 
noncontiguous, constituting a single management unit for agricultural 
purposes.
    Other land. Nonagricultural land on which erosion must be controlled 
to protect agricultural land and which can be covered by contract.
    Participant. A land user who is a party to a GPCP contract.
    Resource management system. A combination of conservation practices 
identified by the land or water use that, if installed, will protect or 
improve the soil or water resource base.
    Specifications. Minimum guantity or quality requirements established 
by NRCS to meet the standard for a specific conservation practice.
    State conservationist. The NRCS employee authorized to direct and 
supervise NRCS activities within the state.
    State program committee. A group of Federal, state, and local 
officials selected by the state conservationist. The committee provides 
ideas to the state conservationist regarding program development, 
coordination, general policies, and operating procedures of GPCP in the 
state.

[[Page 490]]

    Technical assistance. Guidance provided to land users regarding the 
use and treatment of soil, water, plant, animal, and related resources. 
This assistance may include conservation plan formulation, application, 
and maintenance and is usually confined to those activities which the 
recipient could not reasonably be expected to do without specialized 
assistance.
    Technical guide. A document containing detailed information on the 
conservation of soil, water, plant, animal, and related resources 
applicable specifically to the area for which it is prepared.



Sec. 631.3  Administration.

    (a) NRCS is responsible for the administration of the Great Plains 
Conservation Program (GPCP).
    (b) The program shall be carried out in close cooperation with 
interested Federal, state, and local government units and organizations. 
The program in designated counties shall be coordinated with the long-
range program of conservation districts operating in such counties and 
with other USDA activities.
    (c) Applicants who have USDA-Farmers Home Administration (FmHA) 
loans must furnish to NRCS satisfactory evidence that the conservation 
plan used as a basis for the GPCP contract is compatible with assistance 
provided by FmHA. Such evidence may consist of written acknowledgement 
by the authorized FmHA official that the GPCP conservation plan is 
compatible with the farm management plan prepared for FmHA program 
purposes.



Sec. 631.4  Program applicability.

    The program is applicable only to designated counties within the 
Great Plains states. County designation is a responsibility of the NRCS 
Chief.



Sec. 631.5  Land user eligibility.

    Any land user in a designated county may file an application for 
participation in the GPCP with the NRCS field office. A land user who 
develops an acceptable conservation plan in cooperation with NRCS and 
the conservation district that is in compliance with the terms and 
conditions of the program is eligible to sign a contract.



Sec. 631.6  Land eligible for the program.

    The program is applicable to: (a) Privately owned land, (b) 
nonfederally owned public land under private control for the contract 
period and included in the participant's operating unit, and (c) 
federally owned land, if installation of conservation practices would 
directly benefit nearby or adjoining privately owned land of persons who 
maintain and use the Federal land.



Sec. 631.7  Conservation treatment eligible for cost sharing.

    (a) The state conservationist, in consultation with the state 
program committee, shall select the resource management systems, 
conservation practices, or identifiable units eligible for GPCP cost 
sharing in the state.
    (b) The designated conservationist, in consultation with the county 
program committee, shall select from the state list the eligible 
conservation systems, practices, or identifiable units eligible for GPCP 
cost sharing in the county.



Sec. 631.8  Cost-share rates.

    (a) The Federal rate may not exceed 80 percent.
    (b) The maximum Federal rate (percentage) within each state for each 
practice or identifiable unit shall be established by the state 
conservationist.
    (c) The maximum rate (percentage) for each county is established by 
the designated conservationist not to exceed the state rate 
(percentage).
    (d) The rate (percentage) established by a state conservationist or 
a designated conservationist shall not exceed the amount necessary and 
appropriate to apply conservation treatment.



Sec. 631.9  Conservation plan.

    (a) An applicant is responsible for developing a conservation plan, 
in cooperation with the conservation district, that protects the 
resource base in a manner acceptable to NRCS. This plan will be used as 
a basis for developing a contract. Conservation treatment is to be 
planned and implemented as a resource management system.
    (b) The applicant decides how the land will be used and selects the 
resource management systems that will achieve the applicant's objectives 
and

[[Page 491]]

provide protection of soil, water, and related resources acceptable to 
NRCS. Eligible practices may be included in the conservation plan to 
enhance fish and wildlife and recreation resources, promote the economic 
use of land, and reduce or control agriculture-related pollution.
    (c) Technical assistance will be provided by NRCS, as needed by the 
land user. NRCS may utilize the services of private, local, state, and 
other Federal agencies in discharging its responsibilities for technical 
assistance.
    (d) Participants are responsible for accomplishing the conservation 
plan and may use all available sources of assistance, including other 
USDA programs that are consistent with the conservation plan.
    (e) All conservation practices scheduled in the conservation plan 
are to be carried out in accordance with the applicable NRCS technical 
guide.



                          Subpart B--Contracts



Sec. 631.10  Contracts.

    (a) To participate in the program, an applicant must enter into a 
contract agreeing to implement a conservation plan. All persons who 
control or share control of the operating unit for the proposed contract 
period must sign the contract or one person with power-of-attorney may 
sign the contract for all persons. The applicant must provide the 
contracting officer with satisfactory evidence of control of the 
operating unit for the life of the proposed contract.
    (b) Contracts may be entered into not later than September 30, 1991. 
The contract shall be for a period needed to establish the conservation 
treatment scheduled in the conservation plan and must extend at least 3 
years but not more than 10 years.
    (c) Contracts may be transferred or modified by mutual consent. The 
transferee assumes full responsibility for the contract including 
operation and maintenance of all land treatment installed under the 
contract. Also included are payments made under the contract to the 
participant or preceding participants before and after the transfer.
    (d) Contracts may be terminated by mutual consent or by NRCS for 
cause.



Sec. 631.11  Conservation practice maintenance.

    (a) Each participant is obligated to maintain the resource 
management systems or conservation practices applied under the contract 
for the duration of the contract. Practices installed before execution 
of the contract are to be maintained as specified in the contract.
    (b) If the life span of the practices or resource management systems 
extends beyond the period of the contract, state conservationists may 
make the operation and maintenance of those practices or systems a 
condition of the contract. The length of such operation and maintenance 
shall extend for the expected life span.



Sec. 631.12  Cost-share payments.

    (a) Federal cost sharing shall be adjusted so that the combined cost 
share by Federal and state government or subdivision of a state shall 
not exceed 100 percent of the cost.
    (b) Cost-share payments for completing resource management systems 
or a practice or an identifiable unit according to specifications will 
be made by NRCS as specified in the contract or as adjusted according to 
Sec. 631.12(a).



Sec. 631.13  Disputes and appeals for matters other than contract violations.

    Applicants or participants may appeal decisions regarding matters 
other than contract disputes under this part in accordance with part 614 
of this title.

[60 FR 67316, Dec. 29, 1995]



Sec. 631.14  Contract violations.

    Contract violations, determinations and appeals will be handled in 
accordance with the terms of the contract and attachments thereto. 
Violations involving fraud are to be handled in accordance with current 
USDA regulations.

[[Page 492]]



                        Subpart C--Miscellaneous



Sec. 631.20  Setoffs.

    (a) If any participant to whom compensation is payable under the 
program is indebted to U.S. Department of Agriculture (USDA), or any 
agency thereof, or is indebted to any other agency of the United States, 
and such indebtedness is listed on the county claim control record 
maintained in the office of the county ASC committee, the compensation 
due the participant shall be set off against the indebtedness. 
Indebtedness owing to USDA, or any agency thereof, shall be given first 
consideration. Setoffs made pursuant to this section shall not deprive 
the participant of any right to contest the justness of the indebtedness 
involved either by administrative appeal or by legal action.
    (b) Participants who are indebted to this program for any reason 
will be placed on the USDA claim control record promptly by the state 
conservationist after the participant has been given opportunity to pay 
the debt.



Sec. 631.21  Compliance with regulatory measures.

    Participants who carry out conservation practices shall be 
responsible for obtaining the authorities, rights, easements, or other 
approvals necessary for the implementation and maintenance of the 
conservation practices in keeping with applicable laws and regulations. 
Participants shall save the United States harmless from any 
infringements upon the rights of others or from any failure to comply 
with applicable laws or regulations.



Sec. 631.22  Access to operating unit.

    Any authorized NRCS representative shall have the right to enter an 
operating unit for the purpose of ascertaining the accuracy of any 
representations made in a contract or leading up to a contract, and as 
to the performance of the terms and conditions of the contract. Access 
shall include the right to measure acreages, render technical 
assistance, and inspect any work undertaken under the contract.



Sec. 631.23  State conservationist's authority.

    The state conservationist may take the initiative to revise or 
require revision of any determination made by the contracting officer or 
the district conservationist in connection with the program, except that 
the state conservationist may not revise any executed contract other 
than as may specifically be authorized herein.



PART 632--RURAL ABANDONED MINE PROGRAM--Table of Contents




                           Subpart A--General

Sec.
632.1  Purpose and scope.
632.2  Objectives.
632.3  Responsibilities.
632.4  Definitions.

                        Subpart B--Qualifications

632.10  Applicability.
632.11  Availability of funds.
632.12  Funding priorities.
632.13  Eligible lands and water.
632.14  Eligible land users.
632.15  Eligible uses and treatment of reclaimed lands.
632.16  Methods of applying planned land use and treatment.
632.17  Cost-share rates.
632.18  Special projects.
632.19  Crop history and allotments.

                        Subpart C--Participation

632.20  Application for assistance.
632.21  Reclamation plan.
632.22  Contracts.
632.23  Access to land unit and records.

                    Subpart D--Cost-Share Procedures

632.30  Applicability.
632.31  Cost-share payment.

                    Subpart E--Appeals and Violations

632.40  Appeals.
632.41  Violations.
632.42  Violation procedures.

                         Subpart F--Environment

632.50  Environmental evaluation.
632.51  Accord with environmental laws and orders.
632.52  Identifying typical classes of action.

    Authority: Sec. 406, Pub. L. 95-87; 91 Stat. 460 (30 U.S.C. 1236).


[[Page 493]]


    Source: 43 FR 44749, Sept. 28, 1978, unless otherwise noted.



                           Subpart A--General



Sec. 632.1  Purpose and scope.

    (a) The purpose of this part is to set forth the Natural Resources 
Conservation Service (NRCS) rules and regulations to carry out the Rural 
Abandoned Mine Program under section 406, Pub. L. 95-87; 91 Stat. 460 
(30 U.S.C. 1236).
    (b) The Rural Abandoned Mine Program:
    (1) Through the NRCS delivery system, assists land users to 
voluntarily develop reclamation plans and apply conservation treatment 
for the reclamation, conservation, and development of eligible coal-
mined lands and water, and
    (2) Provides cost sharing through long-term contracts according to 
an approved reclamation plan, to land users for establishing land use 
and conservation treatment on these lands.



Sec. 632.2  Objectives.

    (a) The objectives of the program are to protect people and the 
environment from the adverse effects of past coal-mining practices and 
to promote the development of the soil and water resources of 
unreclaimed mined lands by:
    (1) Stabilizing mined lands.
    (2) Controlling erosion and sediment on mined areas and areas 
affected by mining.
    (3) Reclaiming lands and water for useful purposes.
    (4) Enhancing water quality or quantity where it has been disturbed 
by past coal-mining practices.



Sec. 632.3  Responsibilities.

    (a) The Rural Abandoned Mine Program is administered by the U.S. 
Department of Agriculture (USDA) through NRCS in accordance with the 
delegation of responsibility contained in Sec. 601.1(h) of this chapter.
    (1) The Chief of NRCS is responsible for national program management 
and administration and for coordinating program operations with the 
Office of Surface Mining (OSM), U.S. Department of the Interior.
    (2) State conservationists (Responsible Federal Officials) are 
responsible for program operations within a State including program 
coordination with the State reclamation agency and the representatives 
of OSM.
    (b) The primary public contacts for program assistance are the 
district conservationists located in local NRCS field offices.
    (c) NRCS is assisted by other USDA agencies in accordance with 
existing authorities and agreements in carrying out the program.
    (d) NRCS is to coordinate Rural Abandoned Mine Program activities 
with NRCS programs and the other reclamation programs authorized by Pub. 
L. 95-87 that are carried out by the Office of Surface Mining of the 
U.S. Department of the Interior, State reclamation agencies, and Indian 
tribes. Coordination includes program development, development of 
reclamation standards, preparation of special reports, requests for 
funding, and related actions required to achieve coordination between 
programs.
    (e) NRCS is to consult with State and local reclamation committees 
to obtain recommendations on program operation, evaluation of 
applications for reclamation assistance, and public participation. The 
NRCS State Conservationist is to use existing reclamation committees or 
encourage the organization of a new State committee for this purpose. 
The State Conservationist is to serve as a member when the committee is 
functioning for the purposes of this program. Representatives of the 
Office of Surface Mining, State reclamation agency, State water quality 
agency, State conservation agency, and other agencies or groups are to 
be invited to participate as members. Individual citizens may 
participate through the State committee. Local committees, if needed, 
are to be organized on a multicounty, county, conservation district, or 
other appropriate area with a local membership structure similar to the 
State committee. The district conservationist is to be a member of a 
local reclamation committee organized to provide program guidance.

[43 FR 44749, Sept. 28, 1978, as amended at 45 FR 65181, Oct. 2, 1980]

[[Page 494]]



Sec. 632.4  Definitions.

    Abandoned mined lands. Unreclaimed coal-mined lands that existed 
before August 3, 1977, and for which there is no continuing reclamation 
responsibility on the part of a mine operator, permittee, or agent under 
State or Federal law or on the part of the State as a result of a bond 
forfeiture. See Sec. 632.13.
    Average costs. The calculated cost, determined by recent actual 
costs and current cost estimates, considered necessary for a land user 
to carry out a conservation practice or an identifiable unit of a 
conservation practice.
    Conservation district. A legal subdivision of State government 
responsible for developing and carrying out programs of soil and water 
conservation with which the Secretary of Agriculture cooperates under 
the Soil Conservation and Domestic Allotment Act of 1935.
    Conservation treatment. Specific conservation or reclamation 
practices applied to the land according to current standards and 
specifications in NRCS technical guides.
    Contract. A binding agreement between NRCS and the land user that 
includes the reclamation plan and provides for cost sharing the 
conservation treatment.
    Contracting officer. The NRCS official authorized to enter into and 
administer contracts for the Rural Abandoned Mine Program.
    Cost. The monetary amount actually paid or obligated to be paid by 
the land user for equipment use, materials, and services for carrying 
out a conservation practice or identifiable unit. If the land user uses 
his own resources, it includes the computed value of his labor, 
equipment use, and materials.
    Cost-share payments. Payments made to or on behalf of land users at 
established rates as specified in contracts for carrying out a 
conservation practice or an identifiable unit of such practices 
according to the contract.
    Financial burden. The land user's cost of reclamation that cannot be 
expected to be recovered within the contract period and that would 
probably prevent participation in the program. The land user must sign a 
statement to substantiate financial burden.
    Identifiable unit. A component of a conservation practice that can 
be clearly identified as a step in carrying out the conservation 
practice.
    Inadequately reclaimed. Lands or water that are mined for coal or 
are affected by mining conducted before August 3, 1977, which continue 
in their present condition to substantially degrade the quality of the 
environment, prevent or damage beneficial use of land or water 
resources, or endanger the health or safety of the public.
    Landrights. An interest acquired by fee simple title, easements, and 
rights-of-way to occupy or use land, buildings, structures, or other 
improvements.
    Land user. Any person, partnership, firm, company, corporation, 
association, trust, estate, other entity, or agent that owns or has 
management control of the surface rights of the land during the contract 
period or owns water rights on eligible lands. Also included are State 
or local public entities that own or control eligible land and water.
    Main benefits. The principal values or benefits that can be 
identified and/or quantified as a result of reclamation. Main offsite 
benefits are those values that accrue to surrounding land users or the 
public in general as a result of the reclamation. Main onsite benefits 
are those that accrue to the participant. Examples of principal values 
or benefits include but are not limited to human lives and property 
protected, reduction of erosion or sediment damage, elimination of 
public safety or health hazards, improvement of water quality, improved 
visual quality, improved fish or wildlife habitat, or restoration of 
beneficial uses of reclaimed areas.
    Reclamation committee. A committee on a local or State level 
consisting of representatives of Federal and State agencies and other 
organizations or individuals that have responsibilities or interest in 
abandoned mine reclamation. The committee provides guidance to NRCS on 
the operation of the Rural Abandoned Mine Program.
    Reclamation plan. A conservation and development plan as referred to 
in Pub. L. 95-87, consisting of a written record of land user decisions 
on proposed use,

[[Page 495]]

conservation treatment, and maintenance of eligible lands and water that 
will protect, enhance, and maintain the resource base. A reclamation 
plan contains pertinent soils data, a planned land use map or drawing, a 
record of use and treatment decisions including a schedule of 
conservation treatment, and other resource data as appropriate.
    Specified maximum costs. The maximum amount of cost-share money that 
is to be paid to a land user for carrying out a conservation practice or 
an identifiable unit of a conservation practice.
    Standards and specifications. Requirements that establish the 
acceptable quality level for planning, designing, and installing a 
conservation practice so it achieves its intended purpose. NRCS 
standards and specifications are contained in the NRCS field office 
technical guides and are designed to be sound and practicable under 
local conditions. Technical guides are on file in local NRCS field 
offices.
    Water rights. Any interest acquired in, priority established for, or 
permission obtained for the use of water.

[43 FR 44749, Sept. 28, 1978; 45 FR 65181, Oct. 2, 1980]



                        Subpart B--Qualifications



Sec. 632.10  Applicability.

    This program applies to any county or other designated area within a 
State that had abandoned or inadequately reclaimed coal-mined lands 
within its borders before August 3, 1977.



Sec. 632.11  Availability of funds.

    (a) The provisions of the program are subject to the annual 
appropriation by Congress of funds from the Abandoned Mine Reclamation 
Fund and the transfer of as much as 20 percent of these funds from the 
Office to Surface Mining to NRCS for program operation.
    (b) Allotments of Rural Abandoned Mine Program funds to state 
conservationists are to reflect the national program needs, the 
geographic areas from which the funds were derived, the funding priority 
assigned to applications for program assistance, including benefits 
expected to be derived, and the practicability and feasibility of the 
reclamation work proposed.



Sec. 632.12  Funding priorities.

    (a) All eligible applications within a State are to be assigned a 
funding priority and subpriority. Assignment of a priority and 
subpriority establishes the order in which the proposed reclamation work 
will be selected and evaluated for funding. (See Sec. 632.20(b) for 
additional selection criteria.) Applications for individual, joint, or 
special projects (See Sec. 632.18) for areas of different priorities or 
subpriorities are to be assigned the highest applicable priority or 
subpriority. The funding priorities are as follows:
    (1) Priority 1. Protection of public health, safety, general 
welfare, and property from extreme danger of adverse effects of coal-
mining practices. Extreme danger means a condition that could be 
expected to cause substantial physical harm to persons, property, or the 
environment and to which persons or improvements on real property are 
exposed.
    (2) Priority 2. Protection of public health, safety, and general 
welfare from the adverse effects of coal-mining practices that do not 
constitute an extreme danger.
    (3) Priority 3. Restoration of the land and water resources and the 
environment where previously degraded by the adverse effects of coal-
mining practices, including measures for the conservation and 
development of soil, water (excluding channelization), woodland, fish 
and wildlife, recreation resources, and agricultural productivity. First 
consideration in this priority is to be the reduction of offsite damage 
affecting the public. Second consideration is to be given to restoring 
to beneficial uses for the main benefit of the land user.
    (b) Eligible and feasible applications for program assistance within 
each priority category (Sec. 632.12(a)) are to be funded in the 
following order:
    (1) Individual persons or public entities who owned the eligible 
area before May 2, 1977, and who neither consented to nor exercised 
control over the mining operation.
    (2) Individual persons who would actively use the area, if 
reclaimed, for agricultural or silvicultural purposes.

[[Page 496]]

    (3) All other participants.

[43 FR 44749, Sept. 28, 1978; 45 FR 65181, Oct. 2, 1980]



Sec. 632.13  Eligible lands and water.

    Lands and water eligible for reclamation are those that were mined 
for coal or were affected by coal-mining processes and were abandoned or 
inadequately reclaimed before August 3, 1977. These lands and water are 
not eligible if:
    (a) There is continuing reclamation responsibility on the part of a 
mine operator, permittee, or agent under State or Federal law or on the 
part of the State as a result of bond forfeiture. However, if the amount 
of the bond forfeiture was insufficient to reclaim the area covered by 
the bond, the area will be considered eligible.
    (b) They are under Federal ownership and control.
    (c) The surface rights are under easement or lease to be remined for 
coal or other minerals.



Sec. 632.14  Eligible land users.

    Landowners holding surface land and water rights, residents, 
tenants, or their agents who own or have management control of eligible 
land and/or water are eligible to participate in the program. Residents 
or tenants who do not own the land must have control of the land for the 
period of the proposed contract and have the written consent of the 
landowner. Land users may participate by operating as persons, 
partnerships, associations, corporations, estates, trusts, or non-
Federal public entities, and by acting individually or jointly with 
other eligible land users. However, joint participation with other 
eligible land users is required if the primary purpose of reclamation is 
enhancement of water quality or quantity.



Sec. 632.15  Eligible uses and treatment of reclaimed lands.

    (a) Reclaimed lands and water may be used for cropland, hayland, 
pasture land, rangeland, woodland, wildlife land, natural areas, 
noncommercial recreation land, and the supporting uses associated with 
these land uses. Other land uses proposed by public entities for public 
use and benefit such as open space, conservation uses, natural areas, 
and recreation sites may be approved by the NRCS State conservationist 
in accordance with the priorities stated in Sec. 632.12. However, 
development of public sites, such as the installation of recreation 
facilities, is not eligible for cost sharing.
    (b) Reclaimed land use is determined by the objectives of the land 
user, compatibility of the land use with surrounding land use, and the 
practicability and feasibility of restoring the soil and water resources 
to support the use selected.
    (c) The maximum acreage of eligible lands and water that may be 
offered for contract under one ownership is 320 acres for the life of 
the program.
    (d) Conservation treatment eligible for Federal cost sharing 
includes the combination of practices needed and feasible to achieve:
    (1) Protection of life, property, and elimination of public health 
and safety hazards, including land stabilization.
    (2) Restoration of the environment where degraded by past mining, 
including water quality, visual quality, recreation resources, fish and 
wildlife habitat, and erosion and sediment control.
    (3) A site that can be developed for a beneficial use as specified 
in Sec. 632.15(a). Examples of eligible treatment that may be cost 
shared include but are not limited to: Land shaping and grading, 
critical area planting or other plantings for stabilization, improving 
visual quality, wildlife food and cover, diversions or terraces, 
waterways or lined ditches, grade stabilization structures, sediment 
basins, and special practices for sealing shafts and tunnels, correcting 
subsidence problems, or other unusual situations. Practices not eligible 
for cost sharing are those that are solely applied to develop a 
reclamation site (including sites developed by public entities for 
public use), increase the production of crops, or for the recurring 
maintenance of applied reclamation.
    (e) Applied conservation treatment is to meet the applicable Federal 
and State standards for the reclamation and conservation treatment of 
abandoned or inadequately reclaimed coal-mined lands and water. Where 
needed, these standards are incorporated in local NRCS technical guides 
as the

[[Page 497]]

NRCS standards and specifications applicable to the program. Special 
practices as specified in Sec. 632.15(d) are to be developed in 
cooperation with appropriate State or Federal agencies having the 
expertise or responsibility for the practices.
    (f) NRCS State conservationists, in consultation with the State 
reclamation committee, are to:
    (1) Develop a list of practices that are eligible for cost sharing, 
and
    (2) Maintain, as applicable, lists of average costs of applying 
conservation treatment to eligible lands and waters.



Sec. 632.16  Methods of applying planned land use and treatment.

    (a) Land users may arrange to apply the planned land uses and 
conservation treatment specified in the contract by one or more of the 
following methods:
    (1) By performing the required treatment with his own labor and 
equipment.
    (2) By hiring a qualified contractor to install the required 
treatment.
    (3) By requesting NRCS to award and administer a contract to perform 
the required treatment in accordance with 41 CFR chapters I and IV.
    (b) State conservationists are to develop criteria specifying the 
conditions for which NRCS will award and administer a contract. Criteria 
will consider: Type of equipment required, type and amount of 
conservation treatment required, costs of the required reclamation, 
needs of the land user, and the applicable cost-share rate. If the 
Federal share is less than 100 percent, a land user must put up his 
estimated share of the cost before NRCS awards the contract.



Sec. 632.17  Cost-share rates.

    (a) Cost-share rates paid by the Federal Government are to be 
established and issued as instructions by the NRCS Administrator in 
accordance with the following criteria:
    (1) For 120 acres or less, the cost-share rate is to provide up to 
80 percent of the costs of land use and conservation treatment depending 
on the income-producing potential of the land after reclamation. 
However, this rate may be increased to a level required to obtain 
participation if the main benefits of reclamation are offsite (in the 
public interest) and there is a declaration of financial burden by the 
participant.
    (2) The rate on acreage in excess of 120 acres up to 320 acres 
maximum is to be reduced by up to 0.5 percent per acre. This reduced 
rate applies to the entire acreage offered for contract.



Sec. 632.18  Special projects.

    (a) The NRCS State conservationist may approve the following types 
of special projects subject to the eligibility requirements, funding 
priorities, and cost-share rates as stated in Secs. 632.12, 632.13, 
632.14, 632.15, and 632.17:
    (1)  Field  trials  or  demonstration projects recommended by the 
State reclamation committee.
    (2) Projects to enhance water quality and quantity where past coal-
mining practices disturbed local water supplies and where joint action 
by a group of eligible land users in cooperation with Federal and State 
agencies is needed to restore the water resource.



Sec. 632.19  Crop history and allotments.

    (a) Most crop history and allotments on eligible lands were 
discontinued at the time of mining. However, if eligible lands are 
classified as cropland at the time the contract is signed, the cropland 
crop history and allotment, if any, may be:
    (1) Preserved for a period not to exceed twice the length of the 
contract as provided in 7 CFR part 719, or
    (2) Voluntarily surrendered by the land user.



                        Subpart C--Participation



Sec. 632.20  Application for assistance.

    (a) Land users must submit an application for program assistance 
through the local conservation district or NRCS field office. NRCS is to 
announce dates for receiving applications through local media. 
Applications are to be reviewed by the conservation district and/or 
local reclamation committee, which is to verify eligibility and 
recommend funding priorities to the NRCS district conservationist. The 
NRCS district conservationist is to assign funding priorities according 
to the recommendations unless he determines

[[Page 498]]

that applications are incomplete, ineligible, or unfeasible. Low 
priority applications that cannot be serviced within specific time 
periods established by the State conservationist are to be returned to 
the applicant with an appropriate explanation. These applicants may 
reapply at a later date if they are still interested.
    (b) Eligible applicants are serviced within each subpriority 
according to the following criteria:
    (1) The specific type, amount, and relative importance of benefits 
to be derived. (Public benefits and offsite environmental improvement 
will take precedence over onsite benefits.)
    (2) Feasibility and practicability of reclaiming for the proposed 
uses.
    (3) Land user's ability to proceed.
    (4) Date of the application.



Sec. 632.21  Reclamation plan.

    (a) Responsibility. Land users are responsible for developing a 
reclamation plan that will serve as a basis for a contract. Normally, a 
land user will need the technical services of NRCS and the conservation 
district or another professional to develop an acceptable plan.
    (b) Objectives and priorities. The reclamation plan is to provide 
for the appropriate program objectives and priorities as stated in 
Secs. 632.2 and 632.12 and meet the definition of a reclamation plan as 
defined in Sec. 632.4.
    (c) Review. (1) In areas served by conservation districts, 
reclamation plans are to be reviewed and signed by the district board to 
insure that planned land use and treatment is compatible with 
surrounding land uses and that proposed assistance is consistent with 
the district plan of work and priorities. In areas not served by 
conservation districts, the land use compatibility review may be 
performed by the local reclamation committee.
    (2) If reclamation plans include lands within or adjacent to Federal 
lands, the plan is to be reviewed with the appropriate Federal land 
management agency to insure that the planned land use is compatible with 
that of the surrounding area.
    (3) Land users are responsible for insuring that the proposed land 
use and treatment is compatible with local land use ordinances.
    (d) Approval. Proposed land use, conservation treatment, and 
sequence of application contained in the plan are to be agreed to by 
both NRCS and the land user. The district conservationist is to sign the 
reclamation plan to indicate technical approval.



Sec. 632.22  Contracts.

    (a) Cost-sharing contracts. A land user who has an approved 
reclamation plan may enter into a contract with NRCS to receive Federal 
cost-share assistance. All land users are to sign the contract. A land 
user is required to furnish evidence of management control, such as a 
long-term lease, recorded deed, or land contract, and must have the 
written consent of the landowner. The NRCS contracting officer is to 
sign the contract after determining that all documents meet program 
requirements.
    (b) Effect of contract. A land user who signs a contract is 
obligated to apply or arrange for the application of the land use and 
conservation treatment as scheduled in the reclamation plan according to 
approved standards and specifications. A land user may request NRCS to 
award and administer a contract to apply the conservation treatment as 
scheduled in the reclamation plan in accordance with Sec. 632.16(a)(3).
    (c) Permits, landrights, and water rights. The land user is 
responsible for obtaining the permits, surface land- rights, and water 
rights that may be required to perform the planned work. NRCS is to 
assist land users in identifying the specific permit, landright, or 
water right required.
    (d) Operation and maintenance. During the contract period the land 
user is responsible for the operation and maintenance of applied 
conservation treatment. Operation and maintenance requirements are to be 
included in the contract.
    (e) Period of contract. The contract period is to be no less than 5 
nor more than 10 years. A contract is to extend for at least 3 years 
after the application of the last cost-shared conservation treatment to 
insure adequate establishment of vegetation and other treatment. 
Exceptions to the 3-year

[[Page 499]]

provision may be granted by the state conservationist for unusual 
circumstances.
    (f) Transfer of contract. (1) If during the contract period all or 
part of the right and interest in the land is transferred by sale or 
other action, the contract is terminated on the land unit that was 
transferred and the land user:
    (i) Forfeits all right to any future cost-share payments on the 
transferred land unit, and
    (ii) Must refund cost-share payments that have been made on the 
transferred land unit not to exceed the difference between the estimated 
value of the land at the time of entering into the contract and at the 
time of transfer, unless the new land user becomes a party to the 
contract as provided in paragraph (f)(2) of this section.
    (2) If the new land user becomes a party to the contract:
    (i) He is to assume all obligations of the previous land user on the 
transferred land unit.
    (ii) The contract with the new land user is to remain in effect with 
the original terms and conditions.
    (iii) The contract is to be modified in writing to show the changes 
caused by the transfer. If the modification is not acceptable to the 
contracting officer, the provisions of paragraphs (f)(1) (i) and (ii) of 
this section apply.
    (3) The transfer of all or part of a land unit by a land user does 
not affect the rights and obligations of other land users who have 
signed the contract.
    (g) Modification of contract. (1) A contract previously entered into 
with a land user may be modified only with the approval of the State 
conservationist or as authorized under established policies. No contract 
may be modified unless it is determined that the modification is 
desirable to carry out the program.
    (2) Contracts may be modified to add, delete, substitute, or reapply 
conservation treatment if:
    (i) Applied conservation treatment failed to achieve the desired 
results through no fault of the land user,
    (ii) Applied treatment deteriorated because of conditions beyond the 
control of the land user, or
    (iii) Other treatment is substituted that will achieve the desired 
results.
    (h) Joint contract. A land user may enter a contract jointly with 
other land users subject to the 320 acres maximum limitation per 
landowner. However, joint participation is permitted only if it will 
result in better land use and treatment than individual participation or 
if it is required by Secs. 632.14 and 632.18(a)(2).
    (i) Termination of contract. Contracts may be terminated by mutual 
consent of the signatories only if the State conservationist determines 
that the termination is authorized under established policies and is in 
the public interest. In this case, the State conservationist is to 
determine the amount of refund.



Sec. 632.23  Access to land unit and records.

    Any authorized NRCS employee or agent is to have the right of access 
to land under application or contract and the right to examine any 
program records to ascertain the accuracy of any representations made in 
the application or contract. This includes the right to furnish 
technical assistance and to inspect work done under the contract.



                    Subpart D--Cost-Share Procedures



Sec. 632.30  Applicability.

    This subpart contains procedures for making cost-share payments to a 
land user when land use and conservation treatment is applied as 
specified in Sec. 632.16(a)(1) or (2).



Sec. 632.31  Cost-share payment.

    (a) Amount of cost-share payment. Cost-share payments are to be made 
at rates specified in the contract. The cost-share payment is to be 
determined by one of the following methods:
    (1) Average cost.
    (2) Actual cost but not more than the average cost.
    (3) Specified maximum cost. If the average cost or the specified 
maximum cost at the time of starting the installation of a conservation 
practice or identifiable unit is less than the cost specified in the 
contract, payment is to be made at the lower rate. If the cost at the 
start of installation is higher, payment may be made at the higher

[[Page 500]]

rate. A contract modification is necessary if NRCS determines that the 
higher cost is a significant increase in the total cost-share 
obligation. If costs are significant, cost-share payment is not to be 
made until the modification reflecting the increase is approved. If the 
higher costs are not significant, cost-share payments may be made if 
funds are available.
    (b) Time of payment. Cost-share payments are to be made to the land 
user after a practice or an identifiable unit has been satisfactorily 
applied. The land user is to submit claims for payment to the district 
conservationist no later than September 30 of the year after 
application. Late claims require approval of the State conservationist 
before payment can be made. A claim is to show the proportion of each 
land user's contribution to the applied practice or identifiable unit.
    (c) Approval. The district conservationist must certify that a 
practice or identifiable unit has been satisfactorily applied before 
NRCS can make cost-share payments.
    (d) Ineligible claim. A land user is not eligible to receive cost-
share payments for a practice or an identifiable unit that was not 
carried out under program requirements.
    (e) Authorization for payment. (1) Materials or services needed to 
carry out contracts are to be obtained by land users. Contracts may 
provide for part or all of the cost-share payment for a practice or 
identifiable unit to be made directly to suppliers of materials or 
services. The materials or services must be delivered or performed 
before payment is made.
    (2) The contracting officer is to authorize payment for materials or 
services not exceeding:
    (i) The cost share of the material or service used, or
    (ii) The total cost share of the practices or identifiable unit if 
requested by the land user.
    (3) The land user who purchases materials or services to carry out a 
contract is responsible for them until the district conservationist 
determines that the material or service was used for the intended 
purpose. If a material or service cost-shared by NRCS is used for a 
purpose other than to carry out the contract, the land user is indebted 
to the United States for the cost of the misused material or service. 
This indebtedness is to be repaid to NRCS as a refund or withheld from 
cost-share payments otherwise due the land user under the contract.
    (4) NRCS has the right to inspect materials or services and to take 
samples for testing. Inspections by NRCS will not be necessary if NRCS 
considers State inspection regulations adequate.
    (5) Materials or services must meet the quality standards as 
specified. NRCS may make exceptions for materials or services that do 
not meet the standards only if they will satisfactorily serve the 
intended purpose. NRCS is to deduct from the cost-share payment the 
difference between the price of the materials or services specified and 
the actual value of the different materials or services.
    (f) Division of cost-share payments. Federal cost-share payments 
made directly to suppliers of materials or services are credited to the 
land user who was issued the authorization. The remainder of the cost 
share is credited to the land user who carried out the remainder of the 
practice or identifiable unit. If more than one land user contributed to 
carrying out a practice or identifiable unit, the cost-share payment is 
to be divided proportionately according to the contribution made by each 
of the land users. Furnishing a landright or water right is not a 
contribution for cost-share payment purposes.
    (g) Other aid. Non-Federal public entities may furnish all or part 
of the land user's portion of the cost of applying a practice or 
identifiable unit with no reduction in the Federal cost share.
    (h) Assignments and claims. Land users may not assign cost-share 
payments except as provided under the authority of 31 U.S.C. 203, as 
amended by 41 U.S.C. 15. Federal cost-share payments due any land user 
are not subject to claims for advances except as provided in this 
section.

[[Page 501]]



                    Subpart E--Appeals and Violations



Sec. 632.40  Appeals.

    Land users may appeal decisions under this part in accordance with 
part 614 of this title.

[60 FR 67316, Dec. 29, 1995]



Sec. 632.41  Violations.

    (a) Actions causing violation. The following actions constitute 
violation of a contract by a land user:
    (1) Knowingly or negligently damaging or causing conservation 
treatment to be impaired.
    (2) Adopting land use or treatment that tends to defeat the program 
purposes during the period of the contract.
    (3) Failing to comply with the terms of the contract.
    (4) Filing a false claim.
    (5) Misusing an authorization.
    (b) Effect of violation--(1) Contract to be terminated. (i) By 
signing a contract, the land user agrees to forfeit all rights to 
further cost-share payments under a contract and to refund cost-share 
payments received not to exceed the difference between the estimated 
value of the land at time of entering into the contract and the value at 
time of termination, if the contracting officer, with approval of the 
State conservationist, determines that:
    (A) There was a violation of the contract during the time the land 
user had control of the land, and
    (B) The violation was of a nature as to warrant termination of the 
contract.
    (ii) The land user is to be obligated to refund cost-share payments 
and cost shares paid under authorizations not to exceed the difference 
between the estimated value of the land at time of entering into the 
contract and the value at time of termination.
    (2) Contract not terminated. (i) By signing a contract, the land 
user agrees to refund cost-share payments received under the contract or 
to accept payment adjustment if the contracting officer, with the 
approval of the State conservationist, determines that:
    (A) There was a violation of the contract during the time the land 
user had control of the land, and
    (B) The nature of the violation does not warrant termination of the 
contract.
    (ii) Payment adjustments may include decreasing the rate of a cost 
share, deleting a cost-share commitment from the contract, or 
withholding cost-share payments earned but not paid. The land user who 
signs the contract may be obligated to refund cost-share payments and 
cost shares paid under authorizations.



Sec. 632.42  Violation procedures.

    (a) Scope. This section prescribes the regulations dealing with 
contract violations. The Chief reserves the right to revise or 
supplement any of the provisions of this section at any time if the 
action does not adversely affect the land user, or if the land user has 
been officially notified before this action is taken. No cost-share 
payment shall be made pending the decision on whether a contract 
violation has occurred.
    (b) Determination by contracting officer. On notification that a 
contract violation may have occurred, the contracting officer is to:
    (1) Determine, with the approval of the State conservationist, that 
a violation did not occur or that the violation was of such a nature 
that no penalty of forfeiture, refund, or payment adjustment is 
necessary. No notice is issued to the land user, and no further action 
is to be taken; or
    (2) Determine that a violation did occur, but the land user agrees 
to accept the penalty. If the land user agrees in writing to accept a 
penalty of forfeiture, refund, payment adjustment or termination, no 
further action is to be taken. The land user's agreement to accept the 
penalty must be approved by the contracting officer and State 
conservationist.
    (c) Notice of possible violation. (1) When the State conservationist 
is notified that a contract violation may have occurred that may warrant 
a penalty of forfeiture, refund, payment adjustment, or termination, he 
is to notify, in writing, each land user who signed the agreement of the 
alleged violation. This notice may be personally delivered or sent by 
certified or registered mail. A land user is considered to have

[[Page 502]]

received the notice at the time of personal receipt acknowledged in 
writing, at the time of the delivery of a certified or registered 
letter, or at the time of the return of a certified or registered letter 
where delivery was refused.
    (2) The notice setting forth the nature of the alleged violation is 
to give the land user an opportunity to appear at a hearing before a 
hearing officer designated by the State conservationist. The land user's 
request for a hearing is to be submitted in writing and must be received 
in the NRCS field office within 30 days after receipt of the notice. The 
land user is to be notified in writing by the hearing officer of the 
time, date, and place for the hearing. The land user is to have no right 
to a hearing if he does not file a written request for a hearing, or if 
he or his representative does not appear at the appointed time, unless 
the hearing officer, at his discretion, permits an appearance. A request 
for a hearing filed by a land user is considered to be a request by all 
land users who signed the contract.
    (d) Hearing. A public hearing is to be conducted to obtain the facts 
about the alleged violation. The hearing officer is to limit the hearing 
to relevant facts and evidence and is not to be bound by the strict 
rules of evidence as required in courts of law. Witnesses may be sworn 
in at the discretion of the hearing officer.
    (1) The land user or his representative is to be given full 
opportunity to present oral or documentary evidence about the alleged 
violation. Likewise, the United States may submit statements and 
evidence. Individuals not otherwise represented at the hearing may be 
permitted, at the discretion of the hearing officer, to give information 
of evidence. The hearing officer, at his discretion, may permit 
witnesses to be cross-examined.
    (2) The hearing officer is to make a record of the hearing so that 
the testimony can be summarized. A summary of the testimony may be made 
if both the land user and the State conservationist agree. A transcript 
of the hearing is to be made if requested by either the State 
conservationist or the land user within 10 days of the hearing. If a 
transcript is requested by the land user, the land user may be assessed 
the cost of a copy of the transcript.
    (3) The hearing officer is to close the hearing after a reasonable 
period of time if the land user or his representative is not present at 
the scheduled time. The hearing officer may, at his discretion, accept 
information and evidence submitted by others present for the hearing.
    (4) The hearing officer is to furnish the State conservationist with 
a written report setting forth his findings, conclusions, and 
recommendations. The report is to include the summary of testimony or 
transcript made of the hearing and any other information that would aid 
the State conservationist in reaching his decision.
    (e) Decision by State conservationist. The State conservationist is 
to make a decision after considering the hearing officer's report, 
including recommendations of the conservation district board if any, and 
any other information available to him, including, if applicable, the 
amount of the forfeiture, refund, or payment adjustment. The decision is 
to state whether the violation is of such a nature as to warrant 
termination of the contract. The State conservationist is to notify, in 
writing, each land user who signed the contract of his decision. The 
State conservationist may authorize or require the reopening of any 
hearing before a hearing officer for any reason at any time before his 
decision.
    (f) Appeal to Chief. Any land user affected by a decision of the 
State conservationist has the right of appeal to the Chief. The appeal 
and any briefs or statements must be received in the Office of the Chief 
within 30 days after the land user has received notice of the State 
conservationist's decision. The State conservationist is to file a brief 
or statement in the Office of the Chief within 20 days after the land 
user's brief or statement is received there. The appeal is to be limited 
to the records and the issues made before the State conservationist. The 
Chief's decision is final. The decision is to be determined by the 
record before him and the issues presented in the appeal, and the land 
user is to be notified in writing.

[[Page 503]]

    (1) If the decision provides for termination of the contract, it is 
to state that the contract is terminated, that all rights to further 
cost-share payments under the contract are forfeited, and that cost-
share payments received under the contract are to be refunded, but the 
refund is not to exceed the difference between the estimated value of 
the land at time of entering into the contract and the value at time of 
termination. The decision is to state the amount of refund and method of 
payment.
    (2) If the decision does not provide for termination of the 
contract, the land user may be required to make a refund of cost-share 
payments or to accept payment adjustments. The decision is to state the 
amount of refunds of cost-share payments or payment adjustments. In 
determining amounts of refund or payment adjustments, the following are 
to be considered:
    (i) The extent of the violation.
    (ii) Whether the violation was deliberate or the result of 
negligence or was caused by circumstances beyond the control of the land 
user.
    (iii) The effect on the program if no refund or payment adjustment 
is required.
    (iv) The extent to which the land user benefited by the violation.
    (v) The effect of the violation on the contract as a whole.
    (vi) Other considerations including the appropriateness and 
reasonableness of the refund or payment adjustment.

[43 FR 44749, Sept. 28, 1978; 45 FR 65181, Oct. 2, 1980]



                         Subpart F--Environment



Sec. 632.50  Environmental evaluation.

    (a) Environmental evaluation is an integral part of planning used by 
NRCS in developing each reclamation plan under this program. Planning 
includes site inventory and analysis, evaluation of reasonable 
alternatives, and identification of significant environmental impacts. 
Major points in planning when NRCS or the land user can make decisions 
concerning further action are:
    (1) After an evaluation of the application for program assistance to 
verify eligibility, land user objectives, and priorities for funding.
    (2) After a site-specific inventory and analysis to evaluate 
feasible treatment alternatives, costs, and environmental impacts.
    (3) After development of an acceptable reclamation plan as a basis 
for contract.
    (4) Before the signing of a mutually acceptable contract for 
financial cost-share assistance.
    (b) The scope and complexity of the assessment is to be consistent 
with the scope and complexity of the proposed reclamation.
    (c) An interdisciplinary team, consisting of NRCS and/or other 
cooperating agency personnel as needed, is used in making the 
assessment.
    (d) The Responsible Federal Official (RFO) is to use the 
environmental evaluation to make a decision concerning the need to 
prepare an environmental impact statement (EIS) in accordance with 
Sec. 632.52.

[43 FR 44749, Sept. 28, 1978; 45 FR 65181, Oct. 2, 1980]



Sec. 632.51  Accord with environmental laws and orders.

    (a) A final program EIS is available in compliance with section 
102(2)(c) of the National Environmental Policy Act of 1969 (NEPA). This 
statement discloses the cumulative program impacts that significantly 
affect the quality of the human environment.
    (b) The program is to be conducted in accordance with other laws and 
Executive orders concerning environmental protection.
    (c) Channelization of streams is prohibited under this program. 
Channelization as used herein means the overall widening, deepening, 
realining, or constructing a nonvegetative protective lining over all or 
part of the perimeter of a perennial stream channel as described in NRCS 
Channel Modification Guidelines, Part B, Items 4, 5, 6, and 7, as 
published in the Federal Register on March 1, 1978 (43 FR 8278).

[[Page 504]]



Sec. 632.52  Identifying typical classes of action.

    (a) The RFO will analyze the environmental assessment of the 
proposed action to determine which of the following classes of action 
applies. This determination will be recorded and will be available to 
the public on request.
    (1) Actions not requiring a site-specific EIS. All proposed actions 
and their impacts that are determined to be adequately discussed in the 
program EIS or determined not to be major Federal actions will not 
require a site-specific EIS. However, if the assessment reveals that 
these proposed actions will have significant adverse effects on the 
quality of the human environment, the RFO will:
    (i) Modify the action to eliminate or mitigate the significant 
adverse impacts, or
    (ii) Withdraw further Federal assistance if significant adverse 
impacts cannot be eliminated or mitigated.
    (2) Actions requiring a site-specific EIS. A site-specific EIS is 
required for proposed actions if their impacts are not adequately 
discussed in the program EIS, and the proposal is determined to be a 
major Federal action significantly affecting the quality of the human 
environment in accordance with Sec. 650.7(b) of this chapter. When a 
decision is made to prepare an EIS, a Notice of Intent will be published 
in the Federal Register. The content and format of the EIS is to be 
consistent with the format of the program EIS and use scoping and 
tiering techniques to focus on the significant environmental issues.
    (3) Actions excluded from the EIS requirements. Those actions taken 
to prevent loss of life or property under the extreme danger provisions 
of priority 1 as described in Sec. 632.12. These actions are determined 
by a limited environmental assessment that reasonably identifies the 
possible loss of life or property.



PART 633--[RESERVED]






PART 634--RURAL CLEAN WATER PROGRAM--Table of Contents




                           Subpart A--General

Sec.
634.1  Purpose and scope.
634.2  Objective.
634.3  Administration.
634.4  Responsibilities.
634.5  Definitions.

              Subpart B--Project Authorization and Funding

634.10  Applicability.
634.11  Availability of funds.
634.12  Eligible project areas.
634.13  Project applications.
634.14  Review and approval of project applications.
634.15  Agreements.
634.16  Suspension of grants.
634.17  Termination of grant agreement.
634.18  Termination of project.
634.19  Project completion and closeout.

                  Subpart C--Participant RCWP Contracts


634.20  Eligible land.
634.21  Eligible participants.
634.22  Application for assistance.
634.23  Water quality plan.
634.24  Cost sharing.
634.25  Contracting.
634.26  Contract modifications.
634.27  Cost-share payment.
634.28  Appeals not related to contract violations.
634.29  Violations.
634.30  Appeals in USDA administered proj- ects.
634.31  Appeals of contract violations.

                     Subpart D--Financial Management

634.40  Financial management.

                  Subpart E--Monitoring and Evaluation

634.50  Program and project monitoring and evaluation.

    Authority: Sec. 35, Pub. L. 95-217, 91 Stat. 1579 (33 U.S.C. 1288).

    Source: 43 FR 50855, Nov. 1, 1978, unless otherwise noted.

[[Page 505]]



                           Subpart A--General



Sec. 634.1  Purpose and scope.

    (a) The purpose of this part is for the U.S. Department of 
Agriculture (USDA), with the concurrence of the U.S. Environmental 
Protection Agency (EPA), to set forth regulations to carry out a Rural 
Clean Water Program (RCWP) under section 35, Pub. L. 95-217; 91 Stat. 
1579; 33 U.S.C. 1288.
    (b) The Rural Clean Water Program provides financial and technical 
assistance to private landowners and operators (participants) having 
control of rural land. The assistance is provided through long-term 
contracts (5 to 10 years) to install best management practices (BMP's) 
in project areas which have critical water quality problems resulting 
from agricultural activities. The proposed project area must be within a 
high priority area in an approved agricultural portion of a 208 water 
quality management plan. Participation in RCWP is voluntary.
    (c) The program is a new USDA program and an extension of existing 
water-quality management programs of EPA.



Sec. 634.2  Objective.

    The RCWP is designed to reduce agricultural nonpoint source 
pollutants to improve water quality in rural areas to meet water quality 
standards or water quality goals. The objective is to be achieved in the 
most cost-effective manner possible in keeping with the provision of 
adequate supplies of food and fiber and a quality environment.



Sec. 634.3  Administration.

    At the national level, the Secretary of Agriculture, with the 
concurrence of the Administrator, EPA, administers RCWP. The Secretary 
of Agiculture has delegated responsibility for administration of the 
program (43 FR 8252) to the Administrator, Natural Resources 
Conservation Service (NRCS). NRCS will be assisted by other USDA 
agencies in accordance with existing authorities.
    (a) A National Rural Clean Water Coordinating Committee (NRCWCC), 
chaired by the Administrator, NRCS, is to assist in carrying out the 
Rural Clean Water Program.
    (b) At the State level, a State Rural Clean Water Coordinating 
Committee (SRCWCC) is to assist the State Conservationist, NRCS, in 
administering the program. The State Conservationist will chair the 
SRCWCC.
    (c) To assure coordination at the project level, a local Rural Clean 
Water Coordinating Committee is to be established at the time the 
application is developed. An existing local committee may be used, where 
practicable, to perform the functions of this committee.
    (d) The Administrator, NRCS, through the State Conservationists, 
NRCS, is to enter into agreements, where practicable, with soil 
conservation districts, State soil and water conservation agencies, or 
State water quality agencies to administer all or part of the program 
for a project area. That portion of program administration to be 
conducted by these agencies will be defined in the project application 
and grant agreement. Where this is not practicable, USDA will administer 
the program in a project area. In those instances where USDA retains 
administration of the program in a project area, NRCS will enter into 
agreements for the transfer of funds to the Agricultural Stabilization 
and Conservation Service (ASCS) for the administration of part of the 
program.



Sec. 634.4  Responsibilities.

    (a) Environmental Protection Agency (EPA) will--
    (1) Approve 208 water quality management plans,
    (2) Participate in the National and State Rural Clean Water 
Coordinating Committees,
    (3) Review and concur in project applications approved for funding 
in accordance with Sec. 634.14,
    (4) Advise the Secretary of Agriculture of practices which tend to 
defeat the purposes of contracts with rural landowners or operators in 
accordance with section 208(j)(1)(iv) of the act,
    (5) Assist USDA in evaluating the effectiveness of the program in 
improving water quality, and
    (6) Concur in the selection of project areas and the criteria for 
comprehensive, joint USDA-EPA water quality

[[Page 506]]

monitoring, evaluation, and analysis in accordance with Sec. 634.50.
    (b) U.S. Department of Agriculture (USDA) will--
    (1) With the concurrence of EPA, administer a program to enter into 
contracts to install and maintain best management practices to control 
agricultural nonpoint source pollution for improved water quality,
    (2) Act through NRCS and such other USDA agencies as the Secretary 
may designate,
    (3) Provide technical assistance and share the cost of carrying out 
best management practices that are set forth in the contracts,
    (4) Where practicable, enter into agreements with soil conservation 
districts, State soil and water conservation agencies, or State water 
quality agencies to administer all or part of the program for a project 
area,
    (5) Administer the program where it is not practicable for soil 
conservation districts, State soil and water conservation agencies, or 
State water quality agencies to administer all or part of the program 
for a project area,
    (6) Together with local soil conservation districts, determine the 
priorities for assistance to individual participants to assure that the 
most critical water quality problems are addressed,
    (7) Assist in evaluating the overall effectiveness of the program in 
improving water quality, and
    (8) Within the framework of the 208 planning process, make 
additional investigations or plans, where necessary, to supplement 
information contained in the approved agricultural portion of 208 water 
quality management plans for the purpose of selecting among projects to 
be funded.
    (c) Natural Resources Conservation Service (NRCS) will--
    (1) Provide RCWP leadership,
    (2) Retain major technical responsibility for RCWP, and provide 
leadership to assure the adequacy of standards and specifications for 
use by all administering agencies,
    (3) Manage budgeting, accounting, and reporting,
    (4) Chair NRCWCC and assure that RCWP applications are distributed 
to the NRCWCC, including EPA, for review,
    (5) For the Secretary of Agriculture, with the concurrence of the 
Administrator, EPA, approve RCWP projects for funding,
    (6) For the Secretary of Agriculture, select and enter into 
agreements with either soil conservation districts, State soil and water 
conservation agencies, or State water quality agencies, where 
practicable, to adminster all or part of the program,
    (7) Enter into fund transfer agreements to transfer funds to ASCS in 
those instances where the administration of contracts is retained by 
USDA,
    (8) Enter into agreements with other USDA agencies, as appropriate, 
for support which they are to provide,
    (9) Chair SRCWCC,
    (10) For the Secretary of Agriculture, in coordination with NRCWCC, 
determine the maximum Federal contribution to the total cost of the 
project,
    (11) Provide technical assistance through soil conservation 
districts or arrange for other Federal, State, local agencies, or 
private individuals or firms to provide technical assistance as 
appropriate,
    (12) Provide technical assistance to soil conservation districts and 
County Agricultural Stabilization and Conservation (ASC) Committees to 
assist them in determining priorities of assistance among individual 
participants,
    (13) Develop appropriate technical and administrative training 
programs,
    (14) Provide leadership for USDA for comprehensive joint USDA-EPA 
water quality monitoring, evaluation, and analysis in selected project 
areas,
    (15) Provide leadership for USDA in evaluating the effectiveness of 
the program in improving water quality,
    (16) Carry out the function of soil conservation districts for 
approving water quality plans where no soil conservation district 
exists, and
    (17) Through the State Conservationist, after considering 
recommendations of the SRCWCC, reach agreement with the Governor on the 
recommended administering agency to be included in the project 
application.
    (d) The Agricultural Stabilization and Conservation Service (ASCS) 
will-- 

[[Page 507]]

    (1) Participate on the National, State, and local coordinating 
committees.
    (2) Provide guidance to State and County ASC Committees and 
coordinate the Agricultural Conservation Program (ACP) and the Forestry 
Incentives Program (FIP) with RCWP,
    (3) Where the administration of contracts is retained by USDA, enter 
into agreements with NRCS for the transfer of funds to be allocated to 
County ASC Committees,
    (4) Consolidate reports of the annual cost-share disbursements made 
by the State ASC Committee, and report these disbursements to NRCS,
    (5) Furnish data on land use, crop history, and cost-shared 
conservation measures,
    (6) Review plans and contracts to assure coordination with other 
farm programs, and
    (e) The Forest Service (FS) will--
    (1) Retain technical responsibility for forestry,
    (2) Provide technical assistance through the State forestry agency 
(State Forester as appropriate) for planning, applying, and maintaining 
forestry best management practices, and
    (3) Participate on the National, and as appropriate, State, and 
local coordinating committees.
    (f) The Science and Education Administration (SEA) will--
    (1) Develop, implement, and coordinate educational programs for 
agricultural nonpoint source water pollution control,
    (2) Participate on the National, and as appropriate, State, and 
local coordinating committees, and
    (3) Provide technical assistance for appropriate BMP's.
    (g) The Economics, Statistics, and Cooperatives Service (ESCS) will: 
(1) Participate on the National coordinating committee and, as 
appropriate, particpate in State, and local coordinating committee 
activities,
    (2) Assist in the economic evaluation of best management practices 
and RCWP projects,
    (3) Make data available from existing and planned ESCS surveys 
relating to water quality and related matters,
    (4) Assist in RCWP evaluation by making available the ESCS land and 
water resource economic modeling systems, and
    (5) Conduct socioeconomic research, within ESCS authorities and 
funds, on relevant policy and program issues pertinent to RCWP.
    (h) The Farmers Home Administration (FmHA) will--
    (1) Participate on the National, and as appropriate, State and local 
coordinating committees, and
    (2) Provide assistance and coordinate their farm loan and grant 
programs with RCWP.
    (i) The NRCWCC is chaired by the Administrator, NRCS. Other members 
of the National Committee are the Administrators of ASCS, FmHA, and 
ESCS; the Chief of FS; the Director of SEA; and the Assistant 
Administrator for Water and Waste Management, EPA. Non-Federal agencies 
such as conservation districts, State soil and water conservation 
agencies, State water quality agencies, and other organizations are 
invited to attend as observers. The duties of the Committee are to:
    (1) Coordinate individual agency programs with the Rural Clean Water 
Program,
    (2) Recommend to the Administrator, NRCS, the project applications 
to be funded,
    (3) Advise the Administrator, NRCS, on the maximum Federal 
contribution to the total cost of the project,
    (4) Assist the Administrator, NRCS, in mediating agency differences 
at the State level,
    (5) Periodically advise the Secretary and Assistant Secretary for 
Conservation, Research and Education of program and policy issues, and
    (6) Recommend project areas and criteria for comprehensive, joint 
USDA/EPA water quality monitoring, evaluation, and analyses.
    (j) The SRCWCC is chaired by the State Conservationist, NRCS. Other 
members of the State committee are the State 208 water quality agency, a 
designated representative of the areawide agencies, the State soil and 
water conservation agency, a designated representative of soil and water 
conservation districts, other

[[Page 508]]

State and local agencies or individuals as the Governor deems 
appropriate, and representatives of the agency members of the NRCWCC. 
The duties of the committee are to insure that a process exists:
     (1) To consult with the Governor or his designee on the Governor's 
determination of priority project areas,
    (2) To assure coordination of activities at the project level by 
assisting in determining the composition and responsibilities of the 
local rural clean water coordinating committee,
    (3) To prepare the RCWP applications for the Governor to submit to 
the State Conservationist, NRCS, based on priorities established by the 
Governor,
    (4) To incorporate adequate public participation, including public 
meeting(s), and appropriate environmental assessment in the preparation 
of RCWP applications,
    (5) To monitor and evaluate the RCWP in the State and to assist USDA 
and EPA in their comprehensive, joint water quality monitoring and 
evaluation of selected project areas in accordance with Sec. 634.50,
    (6) To develop procedures for coordination between conservation 
districts and county ASC committees and between RCWP and other water 
quality programs at the local level,
    (7) To assist the State Conservationist, NRCS, in mediating agency 
differences at the local level,
    (8) To initiate a written agreement setting forth any or all of the 
above activities when the Governor and the Secretary of Agriculture or 
his designee deem it appropriate, and
    (9) To make recommendations to the State Conservationist, NRCS, 
concerning the selection of the administering agency to be included in 
the project application.
    (k) The State soil and water conservation agency will, as 
appropriate:
    (1) Assist in preparing and submitting applications for RCWP,
    (2) Administer all or part of the RCWP for a project area,
    (3) Carry out the responsibilities of soil conservation districts 
for determining priority for assistance among individual participants 
where no soil conservation district exists, and
    (4) Participate on the State and local coordinating committees.
    (l) The State 208 water quality agency will, as appropriate:
    (1) Assist in preparing and submitting applications for rural clean 
water projects,
    (2) Administer all or part of the RCWP for a project area,
    (3) Participate on the State and local coordinating committees, and
    (4) Assist in monitoring and evaluating the water quality 
effectiveness of projects.
    (m) The soil conservation district will:
    (1) As appropriate, assist in the preparation and submission of 
applications for rural clean water projects,
    (2) As appropriate, administer all or part of the RCWP in a project 
area.
    (3) As appropriate, participate on the local coordinating 
committees,
    (4) Approve participants' water quality plans, and
    (5) Together with the county ASC Committee, determine the priority 
for assistance among individual participants to assure that the most 
critical water quality problems are addressed.
    (n) The county ASC committee will:
    (1) Together with the soil conservation district, determine the 
priorty for assistance among individual participants to assure that the 
most critical water quality problems are addressed,
    (2) Receive applications for assistance for individual participants 
where USDA retains administration of the program,
    (3) Make cost-share payments to individual participants where USDA 
retains administration of the program, and
    (4) As appropriate, participate on the local coordinating 
committees.
    (o) The designated management agency(s) for the agricultural portion 
of a 208 plan for the project area will:
    (1) Assist in preparing and submitting an application for a rural 
clean water project in an area for which they were designated,
    (2) Submit a letter, as part of the project application, certifying 
that the BMP's proposed for cost sharing are consistent with the BMP's 
in the approved 208 plan,

[[Page 509]]

    (3) Submit a letter, including a schedule, giving assurance that an 
adequate level of participation in the project will be achieved within 5 
years, and
    (4) As appropriate, serve as the administering agency.
    (p) The administering agency will:
    (1) As appropriate, enter into a grant agreement or fund transfer 
agreement with the Natural Resources Conservation Service for:
    (i) Receiving funds from the Natural Resources Conservation Service 
for administrative costs, cost sharing, and technical assistance, as 
appropriate, associated with carrying out the project,
    (ii) Establishing detailed work schedules in accordance with the 
approved project application,
    (iii) Establishing the maximum amount of administrative costs 
chargeable to the grant,
    (iv) Establishing an adequate financial management system,
    (v) Preparing a cost allocation plan,
    (vi) Monitoring and reporting performance,
    (vii) Reviewing applications for assistance from landowners or 
operators,
    (viii) Certifying availability of funds, and
    (ix) Complying with OMB Circular A-102 and other appropriate 
regulations,
    (2) Enter into contracts with participants for the installation and 
maintenance of BMP's based on water quality plans developed by 
participants,
    (3) Make cost-share payments to participants upon receipt of 
certification by NRCS,
    (4) Issue modifications to participant RCWP contracts,
    (5) Develop average cost rates for each practice applicable in the 
project area.
    (6) Sample and inspect materials used in the installation of BMP's,
    (7) Establish a contract violations and appeals and collections 
process,
    (8) Provide for public involvement in the implementation of RCWP in 
a project area, and maintain a mailing list of interested individuals 
and organizations for informing the public about the activities 
contemplated and carried out in the project area, and
    (9) Maintain records, provide necessary facilities, personnel, and 
legal counsel for carrying out these responsibilities.
    (q) The Governor of each State will:
    (1) In order to qualify for assistance under RCWP:
    (i) Establish priorities for RCWP project areas in the State,
    (ii) Coordinate the development of RCWP project applications with 
the SRCWCC and local agencies,
    (iii) Submit, in order of priority, RCWP project applications to the 
Administrator, NRCS, through the State Conservationist, NRCS, and
    (iv) Recommend an eligible State or local agency to serve as the 
administering agency of the project, or request USDA to be the 
administering agency.
    (2) Where appropriate, with the State Conservationist, NRCS, set 
forth the activities of the SRCWCC in a written agreement,
    (3) Assign additional State and local agencies or individuals to 
membership on the SRCWCC, as appropriate, and
    (4) Reach agreement with the State Conservationist, NRCS, in 
selecting the administering agency.



Sec. 634.5  Definitions.

    (a) Adequate level of participation. An adequate level of 
participation is reached when participants, having control of 75 percent 
of the identified critical area or source of the pollution problem in 
the project area, are under contract. Exceptions may be made where the 
approved agricultural portion of the 208 plan provides data and analyses 
which indicate that a greater or lesser percentage of the critical area 
or source treated is needed to attain water quality standards or water 
quality goals. Fifty (50) percent of the adequate level of participation 
is to be achieved within 3 years; the remainder within 5 years.
    (b) Administering agency. A soil conservation district, State soil 
and water conservation agency, or State water quality agency that enters 
into an agreement with the State Conservationist, NRCS, to administer 
assigned responsibilities for RCWP projects; or ASCS, when USDA retains 
contract administration.

[[Page 510]]

    (c) Administrative cost. Grant and fund transfer costs, including 
allowable costs incurred by the Administering agency in contract 
administration. These costs, indirect and direct, include charges for 
personnel, travel, materials, and supplies. The costs are limited to a 
maximum of 5 percent of the Federal share for BMP cost.
    (d) Agreement. A legal instrument reflecting the relationship 
between NRCS and the administering agency for performance of RCWP 
activities.
    (e) Agricultural nonpoint source pollution. Pollution originating 
from existing nonpoint sources that are (a) agriculturally related, 
including runoff from animal waste disposal areas and from land used for 
livestock and crop production, or (b) silviculturally related pollution.
    (f) Agricultural portion of a 208 plan. That portion of the 208 plan 
that deals with agriculture and those silvicultural activities related 
to farming and ranching enterprises.
    (g) Appeals board. A group of three or more individuals, including a 
hearing officer, established by the administering agency with the 
concurrence of the State conservationist, NRCS, to review asserted 
contract violations, hear associated appeals, and report its findings, 
conclusions, decisions, and recommendations in State or locally 
administered projects.
    (h) Average cost. The calculated cost, determined by recent actual 
local costs and current cost estimates, considered necessary for 
carrying out BMP's or an identifiable unit thereof.
    (i) Best Management Practice (BMP). A single practice or a system of 
practices included in the approved RCWP application that reduces or 
prevents agricultural nonpoint source pollution to improve water 
quality.
    (j) BMP cost. The amount of money actually paid or obligated to be 
paid by the participant for equipment use, materials, and services for 
carrying out BMP's or an identifiable unit of a BMP. If the participant 
uses his or her own resources, the cost includes the computed value of 
his or her own labor, equipment use, and materials.
    (k) Contract. The legal document, that includes the water-quality 
plan and is executed by the participant and the administering agency. It 
details the agreement between parties for carrying out BMP's on the 
participant's land.
    (l) Cost-share level. The percentage of the total cost of installing 
BMP's included in the participant's contract that is paid by the 
administering agency.
    (m) Critical areas or sources. Those finite areas or sources of 
agricultural nonpoint source pollutants identified as having the most 
significant impact on the quality of the receiving waters.
    (n) Federal Management Circular FMC 74-4. ``Cost Principles 
Applicable to Grants and Contracts with State and Local Governments.''
    (o) Financal burden. The participant's contribution to the total 
cost of BMP's that would be inequitable or probably prevent 
participation in RCWP.
    (p) Identifiable unit. A component of a BMP that can be clearly 
identified in carrying out BMP's in the water quality plan.
    (q) Letter of Credit--Treasury Regional Disbursing Officer System. 
The system whereby the letters of credit are maintained and serviced by 
Treasury disbursing centers and Treasury regional disbursing officers.
    (r) Management agency. The Federal, State, interstate, regional, or 
local agency designated by the Governor to carry out the approved 
agricultural portion of the 208 water-quality management plan.
    (s) OMB Circular A-34. ``Instructions on Budget Execution.''
    (t) OMB Circular A-102 (Rev.) Office of Management and Budget 
Uniform Administrative Requirements for Grants-in-Aid to State and local 
governments.
    (u) Offsite benefits. Those favorable effects of BMP's that occur 
away from the land of the participant receiving RCWP assistance and 
accrue to the public as a result of improved water quality.
    (v) Participant. A landowner or operator who applies for and 
receives assistance under RCWP.
    (w) Participants water quality plan. The plan which identifies 
critical agricultural nonpoint source(s) of water quality problems and 
sets forth BMP's which contribute to meeting the water quality 
objectives of the project.

[[Page 511]]

    (x) Privately owned rural land. Those lands not held by Federal, 
State, or local governments which include cropland, pastureland, forest 
land, rangeland, and other associated lands.
    (y) RCWP projects. The total system of BMP's, institutional 
arrangements, and technical, cost-sharing, and administrative assistance 
activities that are authorized in a RCWP project area.
    (z) Standards and specifications. Requirements that establish the 
minimum acceptable quality level for planning, designing, installing, 
and maintaining BMP's.
    (aa) State. Any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin 
Islands, Guam, American Samoa, the Commonwealth of the Northern 
Marianas, and the Trust Territory of the Pacific Islands.
    (bb) Technical assistance cost. Those direct and indirect costs 
associated with the preparation and review of participant water quality 
plans; design, layout and application of BMP's; and investigations 
associated with monitoring and evaluating progress toward meeting 
project objectives.
    (cc) Treasury Circular 1075 (Rev.). Uniform Administrative 
Requirements for Grants-in-Aid to State and local governments.



              Subpart B--Project Authorization and Funding



Sec. 634.10  Applicability.

    RCWP is applicable in project areas that meet the criteria for 
eligibility contained in Sec. 634.12 and are authorized for funding by 
the Administrator, NRCS.



Sec. 634.11  Availability of funds.

    (a) The provisions of the program are subject to the appropriation 
of funds by Congress to the U.S. Department of Agriculture.
    (b) The allocation of funds to the administering agencies is to be 
made on the basis of the total funds needed to carry out the project.
    (c) The obligation of Federal funds for RCWP contracts with 
participants is to be made on the basis of the total contract costs.



Sec. 634.12  Eligible project areas.

    (a) Only those project areas which are included in an approved 
agricultural portion of a 208 water quality management plan, or revised 
portions thereof, and have identified agricultural nonpoint source water 
quality problems are eligible for authorization under RCWP. Those 
critical areas or sources of pollutants significantly contributing to 
the water quality problems are eligible for financial and technical 
assistance.
    (b) The management agency designated by the Governor under section 
208(c)(1) of the Act to implement the agricultural portion of the 208 
plan must assure in writing in the project application that there will 
be an adequate level of participation by land owners or operators with 
critical areas or sources in a project area.
    (c) An RCWP project area is a hydrologically related land area. 
Exceptions may be made for ease of administration, or to focus on 
concentrated critical areas. To be designated as an RCWP project area 
eligible for authorization, the area's water quality problems must be 
related to agricultural nonpoint source pollutants, including sediment 
animal waste, irrigation return flows, runoff, or leachate that contain 
high concentrations of nitrogen, phosphorus, dissolved solids, toxics 
(pesticides and heavy metals), or high pathogen levels. Generally, the 
project areas will be less than 200,000 acres.



Sec. 634.13  Project applications.

    (a) The SRCWCC is to assure that a process exists to prepare the 
RCWP project applications for submission by the Governor in order of 
priority to the Administrator, NRCS, through the State Conservationst, 
NRCS. This process must include the opportunity for public 
participation, especially participation by potential RCWP participants. 
Applications will be submitted in conformance with OMB Circular A-95.
    (b) The preparation and submission of applications are to be based 
on the priorities established by the Governor and data and information 
in the approved agricultural portion of the

[[Page 512]]

State or areawide 208 water quality management plan.
    (c) Applications shall contain the following components. Additional 
material may be added when, in the judgment of the applicant, it is 
needed to fully support the application and/or would enhance the 
probability of project authorization. Information provided under each 
component shall be in sufficient detail to permit the NRCWCC to evaluate 
the application using priority criteria in Sec. 634.14.
    (1) Description of the project area, 
    (2) Severity of the water quality problem, 
    (3) Objectives and planned action, 
    (4) Schedule for carrying out the plan, and 
    (5) Estimated cost. This component is to identify and show the basis 
for those costs associated with completing the project. The project 
application shall include an estimate of the total cost of the project, 
the Federal contribution, and the non-Federal contribution. The Federal 
contribution shall not exceed 50 percent unless the application, based 
on offsite benefits and financial burden, show that a higher level is 
appropriate.
    (6) Estimated water quality benefits and effects. 
    (7) Arrangements for project administration. This component is to 
set out the applicant's plan for carrying out the program in the project 
area. The plan should:
    (i) Identify the administering agency and document the capability of 
the agency to carry out the responsibilities described in Sec. 634.4(p). 
In addition, information should be included to describe the 
administering agency staff, the location of that staff relative to the 
project area, and the experience of the agency in administering 
comparable grant programs.
    (ii) Where appropriate, describe the specific arrangements that have 
been made, or that are anticipated, for local, State, and Federal agency 
participation such as technical assistance and other cost-sharing 
programs.
    (8) Attachments. The following attachments are the minimum required 
with each application:
    (i) A letter from the water-quality management agency designated by 
the Governor to carry out the approved agricultural portion of the 208 
water quality management plan for the area or source certifying that the 
BMPs to be cost shared are consistent with the BMP's in the 208 plan,
    (ii) A letter from the designated management agency which assures 
and sets out a strategy for reaching an adequate level of participation 
(Sec. 634.5(a)).
    (iii) As appropriate, the preapplication for Federal assistance (OMB 
Circular A-102) from the identified administering agency, and
    (iv) A listing of the prevailing cost-share levels of other programs 
in the project area.



Sec. 634.14  Review and approval of project applications.

    (a) In reviewing applications and recommending priorities, the 
NRCWCC will consider the following:
    (1) Severity of the water quality problem caused by agricultural and 
silvicultural related pollutants, including:
    (i) State designated uses of the water affected,
    (ii) Kinds, sources, and effects of pollutants, and
    (iii) Miles of stream or acres of water bodies affected,
    (2) Demonstration of public benefits from the project, including:
    (i) Effects on human health,
    (ii) Population benefited by improved water quality,
    (iii) Effects on the natural environment, and
    (iv) Additional beneficial uses of the waters that result from 
improvement of the water quality,
    (3) Economic, and technical feasibility to control water quality 
problems within the life of the project, including:
    (i) Cost effectiveness of BMP's,
    (ii) Size of the area and BMP's needed, and
    (iii) Cost per participant and cost per acre for solution of 
problem,
    (4) State and local input in the project area, including:
    (i) Funds for cost-sharing, technical, and administrative costs. 
States or local governments with their own cost-share programs may 
receive greater

[[Page 513]]

consideration for the funding of RCWP projects,
    (ii) Commitment of local leadership to promote the program, and
    (5) The project area's contribution to meeting the national water 
quality goals.
    (b) Based on the project applications, the NRCWCC is to recommend an 
upper limit of the Federal contribution to the total cost of the 
project.
    (c) All project applications will be reviewed by EPA. Project 
applications approval for funding require written EPA concurrence, 
except that the Administrator, NRCS, may assume EPA's concurrence if EPA 
does not act within 45 days following receipt of the project 
application. EPA review of project applications will occur concurrently 
with review by the NRCWCC.
    (d) The Administrator, NRCS, will approve projects for funding. The 
NRCWCC acting through the Chairman will announce the approval of the 
project. The State Conservationist, NRCS, through the SRCWCC, will also 
inform the other involved Federal, State, and local agencies of the 
approval.



Sec. 634.15  Agreements.

    The State Conservationist, NRCS, upon receiving notice of an 
approved project, is to enter into a grant agreement with the 
administering agency, except in those cases where USDA is to administer 
the program. When USDA retains administration, the State 
Conservationist, NRCS, is to enter into a fund transfer agreement with 
the State Executive Director, ASCS.
    (a) Grant agreements. Grant agreements detail the working 
arrangements and applicable operating regulations between NRCS and the 
administering agency. A written grant agreement identifying the parties 
involved, their responsibilities for carrying out the program, and the 
amount of program funds to be encumbered by NRCS is to be executed by 
the parties. This agreement is the fund obligating document. It also 
sets out the necessary working arrangements between parties for 
determining and allocating the administering agency's costs. All grants 
to administering agencies are to be in accordance with OMB Circular No. 
A-102, Department of the Treasury Circular No. 1075, and Federal 
Management Circular No. 74-4. State or local administering agency grants 
will be funded under Letter-of-Credit serviced by the U.S. Treasury 
Regional Disbursing Office, or by NRCS approved advance/reimbursement 
financing arrangements subject to the terms and conditions of the grant 
agreement.
    (1) The grant agreement will provide for payment of cost-sharing for 
BMP (Sec. 634.5(j)) and administrative costs (Sec. 634.5(c)).
    (2) The grant agreement may provide for payment of technical 
assistance costs when the administering agency has the capability, and 
the NRCS designates that agency to provide this assistance to RCWP 
participants.
    (3) The administering agency is to monitor the performance of 
activities supported by RCWP grant funds to assure that time schedules 
and participant RCWP contract requirements are being met. Performance 
goals are to be measured against the terms of the grant agreement and 
program directives. When NRCS determines that onsite technical 
inspections, certified completion data, and financial status reports do 
not provide adequate grant evaluation data, the following information 
may be requested:
    (i) A comparison of actual accomplishments with the objectives 
established for the plan,
    (ii) Reasons why established objectives were not met, and
    (iii) Objectives established for the next reporting period.
    (4) Grant agreements may be amended by mutural agreement of the 
parties to the agreement. NRCS may unilaterally amend agreements when 
the sole consideration is a change in the cost and the Administrator, 
NRCS, based on NRCWCC recommendations, determines that such an 
adjustment is necessary to carry out the program efficiently and 
effectively.
    (b) Fund transfer agreements. When it is impractical for NRCS to 
enter into agreements with local soil conservation districts, State soil 
and water conservation agencies, or State water quality agencies to 
administer the program in a project area, USDA will retain program 
administration. In this

[[Page 514]]

case, the State Executive Director, ASCS, and the State Conservationist, 
NRCS, are to enter into an agreement for the transfer of funds to ASCS 
through county ASC committees for activities included in administrative 
cost (Sec. 634.5(c)) and BMP cost (Sec. 634.5(j)). The following general 
working arrangements are to apply:
    (1) Administering contracts, making cost-share payment, and program 
reporting are to be provided by ASCS as the administering agency.
    (2) NRCS, or its designee, with appropriate Federal or State agency 
support, will provide technical assistance to participants in preparing 
RCWP contracts and in carrying out their water-quality plans.
    (c) Agreements for services. NRCS may enter into an agreement for 
services with a State or local agency. The designee must meet the 
requirements of OMB Circular No. A-102.
    (d) Contracts for services. NRCS may enter into contracts for 
services with individuals or firms for providing technical assistance.



Sec. 634.16  Suspension of grants.

    (a) Suspension orders. Work on a project or on a portion or phase of 
a project for which a grant has been awarded, may be suspended by order 
of the State Conservationist, NRCS. Suspension does not affect RCWP 
contracts existing at the time the suspension order is issued, or the 
administering agency's responsibility to make payments under such 
contracts unless specifically provided for in the suspend order. In no 
event will the participant's right to cost-share payment be diminished 
by action taken under this section.
    (b) Use of suspension orders. Suspension may be required for good 
cause, such as default by the administering agency, failure to comply 
with the terms and conditions of the grant, realignment of programs, or 
advancements in the state of the art.
    (c) Contents of suspension orders. Prior to issuance, suspension 
orders will be discussed with the administering agency and may be 
appropriately modified, in the light of such discussions. Suspension 
orders are to include:
    (1) A clear description of the work to be suspended,
    (2) Instructions as to the issuance of further orders by the 
administering agency for materials or services,
    (3) Instructions as to the administering agency entering into new 
RCWP contracts in the project area,
    (4) Instructions as to the administering agency servicing existing 
RCWP contracts in the project area, and
    (5) Other instructions to the administering agency for minimizing 
Federal costs.
    (d) Issuance of suspension order. Suspension orders are issued by 
the State Conservationist, NRCS, by letter to the administering agency 
(certified mail, return receipt requested). A suspension order may not 
exceed forty-five (45) calendar days.
    (e) Effect of suspension order. (1) Upon receipt of a suspension 
order, the administering agency shall promptly comply with its terms and 
take all reasonable steps to minimize costs allocable to the work 
covered by the order during the period of work suspension. During the 
suspension period, NRCS shall either:
    (i) Cancel the suspension order, in full or in part, and authorize 
resumption of work, or
    (ii) Take action to terminate the work covered by such order as 
provided by Sec. 634.17.
    (2) If a suspension order is canceled, or the period of the order 
expires, the administering agency shall promptly resume the suspended 
work. An equitable adjustment shall be made in the grant period, the 
project period, or grant amount, or all of these, and the grant 
agreement may be amended:
    (i) The suspension order results in an increase in the time, or cost 
properly allocable to, the performance of any part of the project; and
    (ii) The administering agency asserts a written claim for such 
adjustment within thirty (30) days after the end of the period of work 
suspension. If no written claim is made, NRCS may unilaterally make such 
adjustments.
    (iii) Reasonable costs resulting from the suspension order shall be 
allowed in arriving at any terminations settlement.

[[Page 515]]

    (3) Costs incurred by the administering agency after a suspension 
order is delivered that are not authorized by this section or 
specifically authorized in writing by the State Conservationist, NRCS, 
shall not be allowable costs.



Sec. 634.17  Termination of grant agreement.

    (a) Termination agreement or notice. (1) The State Conservationist, 
NRCS, may, based on evidence of failure to comply with the terms of the 
grant agreement, issue a notice of intent to terminate the grant 
agreement. The notice of intent to terminate has the force and effect of 
extending or modifying the conditions of the suspend order. Any 
modification of the conditions of the suspend order shall be shown in 
the notice and discussed with the administering agency. The State 
Conservationist shall give not less than ten (10) days written notice to 
the administering agency (certified mail, return receipt requested) of 
intent to terminate the grant in whole or in part.
    (2) After the administering agency has been afforded an opportunity 
for consultation, the State Conservationist, NRCS, may request 
authorization from the Administrator, NRCS, to terminate the grant in 
whole or in part. If the Administrator, NRCS, concurs in the termination 
action, the proposed termination notice will be forwarded to the 
Administrator, EPA, for concurrence.
    (3) After the Administrators, NRCS and EPA, have been informed of 
any expressed views of the administering agency and concurred in the 
proposed termination, the State Conservationist, NRCS, may, in writing 
(certified mail, return receipt requested), terminate the grant in whole 
or in part.
    (4) Termination of all or part of the grant agreement may be carried 
out by either execution of a termination agreement by the State 
Conservationist, NRCS, or issuance of a grant termination notice by the 
State Conservationist, NRCS. The agreement or notice shall establish the 
effective date of termination of the grant, the basis for settlement of 
grant termination costs, and the amount and date of payment of any sums 
due either party.
    (b) Basis for termination. A grant may be terminated by NRCS for 
good cause subject to negotiation and payment of appropriate termination 
settlement costs. Cause for termination by NRCS includes:
    (1) Failure by the administering agency to make satisfactory 
progress toward achieving an adequate level of participation; or other 
evidence satisfactory to the NRCWCC, Administrator, EPA, and the 
Administrator, NRCS, that the administering agency has failed or is 
unable to perform in accordance with the provisions of the grant 
agreement; or
    (2) Failure through no fault of the administering agency to achieve 
an adequate level of participation; or other evidence satisfactory to 
the NRCWCC, Administrator, EPA, and the Administrator, NRCS, that the 
planned actions approved in the project application cannot be achieved.
    (c) Effect of grant termination. (1)(i) In those cases where cause 
for grant termination is based on the administering agency's failure or 
inability to perform (Sec. 634.17(b)(1)), upon termination, the 
administering agency must refund or credit to the United States that 
portion of the grant funds paid or owed to the administering agency and 
allocable to the terminated project work. Funds needed to meet 
unavoidable commitments may be retained. All other funds, including 
unexpended cost-sharing monies for existing RCWP contracts executed 
prior to the termination date, shall be refunded to the United States. 
The administering agency shall not make any new commitments or enter 
into any new RCWP contracts. The administering agency shall reduce the 
amount of other outstanding commitments insofar as possible and report 
to the State Conservationist, NRCS, the uncommitted balance of funds 
awarded under the grant. The allowability of termination costs will be 
determined in conformance with applicable Federal cost principles.
    (ii) Upon termination of a grant agreement, existing RCWP contracts 
and their related obligations will immediately, and in no case later 
than 5 calendar days be transferred to the ASCS county office to assure 
continuity in payments to participants. The

[[Page 516]]

State Conservationist, NRCS, will immediately initiate action under 
Sec. 634.15 to establish a new administering agency for completion of 
the project.
    (2) In those cases where cause for grant termination is based on 
failure to achieve the planned actions through no fault of the 
administering agency, the termination agreement and amended grant 
agreement are to permit the administering agency to fulfill the 
obligations of its existing RCWP contracts. The administering agency 
shall not make any new commitments or enter into any new RCWP contracts 
without NRCS approval.



Sec. 634.18  Termination of project.

    (a) An RCWP project is terminated by the State Conservationist 
because an adequate level of participation cannot be achieved. Upon this 
determination, the State Conservationist shall publish in a newspaper of 
public record in the project area a notice of intent to terminate all or 
part of the grant agreement and the project (Sec. 634.7(c)), and an 
announcement of the time and place of a public hearing.
    (b) No sooner than 15 days from the publication of the notice of 
intent to terminate all or part of the project and grant agreement, the 
State Conservationist will conduct a public hearing in the project area.
    (c) If, based on the hearing record, the performance record of the 
administering agency, and the recommendations of the SRCWCC, the State 
Conservationist determines that the project will be terminated pursuant 
to Sec. 634.17(c), the State Conservationist will enter into a grant 
termination agreement or issue a grant termination notice.
    (d) The existing RCWP contracts will be transferred to the ASCS 
county office pursuant to Sec. 634.17(c)(1)(ii).
    (e) The State Conservationist will prepare a project close-out 
report summarizing the actions accomplished.



Sec. 634.19  Project completion and closeout.

    (a) The maximum total life of a project shall be fifteen (15) years 
or less.
    (b) The allowable contracting period may be increased if an adequate 
level of participation has been achieved and the designated management 
agency assures a significant increase in participation can be reached in 
a reasonable time.
    (c) The grant or fund transfer agreement with an administering 
agency shall expire when the administering agency has fulfilled all of 
its obligations in the long-term RCWP contracts.
    (d) When a project is completed, the administering agency is to 
provide the State Conservationist, NRCS, a closeout report which 
summarizes the actions accomplished.



                  Subpart C--Participant RCWP Contracts



Sec. 634.20  Eligible land.

    RCWP is only applicable to privately owned land. Land owned by 
corporations whose ownership is public (i.e., their stock is publicly 
traded over the market) is eligible for program assistance only if the 
corporation can document that the installation of BMP's places an 
inappropriate financial burden on the corporation.



Sec. 634.21  Eligible participants.

    (a) Any landowner or operator whose land or activities in a project 
area is contributing to the area's agricultural nonpoint source water 
quality problems and who has an approved water quality plan is eligible 
to enter into an RCWP contract.
    (b) This program will be conducted in compliance with all 
nondiscrimination requirements as contained in the Civil Rights Act of 
1964 and amendments thereto and the Regulations of the Secretary of 
Agriculture (7 CFR 15.1 through 15.12).



Sec. 634.22  Application for assistance.

    (a) Landowners or operators must apply for RCWP assistance through 
the office of the administering agency or its designee(s) by completing 
the prescribed application form.
    (b) The priority for assistance among landowners and operators in 
developing water quality plans is to be determined jointly, through an 
agreed-to process, by the county ASC committee and the

[[Page 517]]

soil conservation district, with technical assistance from NRCS.
    (c) Applications that are ineligible or technically infeasible are 
to be returned to the applicant with a letter stating the reasons for 
disapproval. Applications that are of a low priority will be retained 
and the applicant will be sent a notice that the application is being 
held for a period to be determined locally for future consideration.



Sec. 634.23  Water quality plan.

    (a) The participant's water quality plan, developed with technical 
assistance by the NRCS or its designee, is to include appropriate BMP's 
identified in the approved agricultural portion of the 208 water quality 
management plan. Such BMP's must reduce the amount of pollutants that 
enter a stream or lake by:
    (1) Methods, such as reducing the application rates or changing the 
application methods of potential pollutants, and
    (2) Methods, such as practices or combinations of practices which 
prevent potential pollutants from leaving source areas or reduce the 
amount of potential pollutants that reach a stream or lake after leaving 
a source area.
    (b) Participant's water quality plans shall as a minimum include 
BMP's for all critical areas or sources. The plans will include BMP's 
which are required but not cost-shared. Non-cost-shared BMP's, essential 
for the performance and maintenance of cost-shared BMP's shall be 
required as a condition of the RCWP contract.
    (c) The participant is responsible for compliance with all other 
applicable Federal, State, and local laws that deal with the 
participant's nonpoint source water quality problems, such as the 
treatment, storage, and disposal of hazardous waste. BMP's required for 
compliance may be cost shared.
    (d) It is recognized that the participants' water-quality plans upon 
which the RCWP contracts are to be based may include conservation 
measures other than those related to water quality improvement. These 
measures are not eligible for cost sharing under this program. The 
installation of such conservation measures will not be required as a 
condition of the RCWP contract and will not be shown in the time 
schedules for implementing BMP's.
    (e) Time schedules for implementing BMP's are to be provided in the 
participant's water quality plan. The time schedule is to establish the 
length of the contract within the 5 to 10 year period established by 
law.
    (f) The Natural Resources Conservation Service will certify as to 
the technical adequacy of the water-quality plan.
    (g) The soil conservation districts are to review and approve all 
water-quality plans and modifications.



Sec. 634.24  Cost sharing.

    (a) The portion of BMP cost (including labor) to be cost shared 
shall be that part which the Secretary determines is necessary and 
appropriate. The value of land upon which BMP's are applied, or the 
participant's water rights, cannot be considered a part of the 
participant's share of the cost.
    (b) The administering agency, in consultation with the county ASC 
committee(s), soil conservation district(s), and designated management 
agency will annually set maximum individual BMP cost-share levels for 
the project area. However, the Federal share of the cost of the contract 
cannot exceed 50 percent unless a variance has been granted.
    (c) Recommended variances exceeding the 50 percent level must be in 
the public interest and based on the following criteria:
    (1) The main benefits to be derived from measures are related to 
improving offsite water quality, and
    (2) The matching share requirements would place a burden on the 
landowner or operator which would probably prevent him or her from 
participating in the program.
    (d) BMP's to be cost shared must have a positive effect on water 
quality by reducing the amount of agricultural nonpoint source 
pollutants that enter a stream or lake.
    (e) Cost sharing is not to be made available for:
    (1) Measures installed primarily for bringing additional land into 
crop production, including but not limited to land clearing and brush 
removal;

[[Page 518]]

    (2) Measures installed primarily for increasing production on 
existing cropland, including but not limited to bedding, field ditches, 
open drains, and tile drains;
    (3) Measures having flood protection as the primary purpose, 
including but not limited to open channels, clearing and snagging, and 
obstruction removal;
    (4) Structural measures authorized for installation under Pub. L. 
83-566.
    (f) The Federal cost-share level is not to be reduced by the 
contribution of a State or subdivision thereof. Total payments from 
Federal, State, and local sources for a BMP may not exceed the total 
cost of that BMP.



Sec. 634.25  Contracting.

    (a) To participate in RCWP, a landowner or operator must enter into 
a contract in which he or she agrees to apply his or her water-quality 
plan. Any person who controls, or shares control, of the farm, ranch, or 
other land for the proposed contract period (5 to 10 years) must sign 
the contract.
    (b) Cost-sharing payments cannot be provided for any measure that is 
initiated before the contract is approved by the administering agency.
    (c) The participant must furnish satisfactory evidence of his or her 
control of the farm, ranch, or other land. The administering agency is 
to determine the acceptability of the evidence and maintain current 
ownership evidence in the contract file.
    (d) RCWP contracts shall include the basic contract document, 
special provisions as needed, the participant's water-quality plan, 
schedule of operations, and any other data necessary.
    (e) NRCS or its designee shall approve the technical adequacy of the 
RCWP contract and obtain the required signature of the participants. The 
NRCS or its designee will provide the contract to the administering 
agency for certification of fund availability and for execution.
    (f) Participants shall install best management practices according 
to the specifications that are applicable at the time measures are 
installed.
    (g) NRCS will provide technical assistance to participants for 
installing BMPs. The State Conservationist, NRCS, or its designee may 
enter into contracts with qualified soil conservation districts or 
others to provide technical assistance.
    (h) The RCWP contract is to require BMPs to be operated and 
maintained by the participant at no cost to that administering agency.
    (i) The contract period is to be not less than 5 and not more than 
10 years. A contract is to extend for at least 1 year after the 
application of the last cost-shared BMPs. All contract items are to be 
accomplished prior to contract expiration.
    (j) A land owner or operator may enter into a contract jointly 
(pooling ageement) with other land owners or operators to solve mutual 
water quality problems. Each participant must enter into an RCWP 
contract to treat water quality problems not covered by the joint 
arrangement.
    (k) Participants may use all available sources of assistance to 
accomplish their water-quality objectives. They are responsible for:
    (1) Accomplishing the water-quality plan;
    (2) Keeping the administering agency informed of their current 
mailing address;
    (3) Obtaining, having in hand, and maintaining any required permits 
and landrights necessary to perform the planned work;
    (4) Applying or arranging for the application of BMPs, as scheduled 
in the plan, according to approved standards and specifications;
    (5) The operation and maintenance of BMPs installed during the 
contract period; and
    (6) Obtaining the authorities, rights, easements, or other approvals 
necessary to maintain BMPs in keeping with applicable laws and 
regulations.
    (l) Unless otherwise approved by the Administrator, NRCS, and 
Administrator, EPA, the administering agency shall not enter into any 
new RCWP contracts after five (5) years of elapsed time from the date 
when RCWP funds are first made available to begin the project.
    (m) Contracts may be terminated due to hardship by mutual agreement 
if the administering agency and the State Conservationist, NRCS, 
determine that

[[Page 519]]

such action would be in the public interest.



Sec. 634.26  Contract modifications.

    (a) The administering agency may modify contracts previously entered 
into if it is determined to be desirable to carry out the purposes of 
the program, facilitate the practical administration thereof, or to 
accomplish equitable treatment with respect to other conservation, land-
use, or water-quality programs.
    (b) Requirements of active contracts may be waived or modified by 
the administering agency only if such waiver or modification is 
specifically provided for in these regulations. NRCS concurrence in 
modifications is necessary when modifications involve a technical aspect 
of the participant's water-quality plan. A contract may be modified only 
if it is determined that such modifications are desirable to carry out 
purposes of the program or to facilitate the program's practical 
administration.
    (c) Contracts may be modified to add, delete, substitute, or 
reinstall best management practices when:
    (1) The installed measure failed to achieve the desired results 
through no fault of the participant,
    (2) The installed measure deteriorated because of conditions beyond 
the control of the participant, or
    (3) Another BMP is substituted that will achieve the desired 
results.
    (d) Contract modifications are not required when items of work are 
accomplished prior to scheduled completion or within 1 year following 
the year of scheduled completion.
    (e) If, during the contract period, all or part of the right and 
interest in the land is transferred by sale or other transfer action, 
the contract is terminated on the land unit that was transferred and the 
participant having control over such land:
    (1) Forfeits all right to any future cost-share payments on the 
transferred land unit, and
    (2) Must refund with interest all cost-share payments that have been 
made on the transferred land unit unless the new land owner or operator 
becomes a party to the contract, except that where it is determined by 
the administering agency, with the approval of the State 
conservationist, NRCS, that the established BMPs will provide water 
quality benefits for the design life of the BMP, the payment may be 
retained.
    (f) If the new land owner or operator becomes a party to the 
contract:
    (1) Payment which has been earned, but not made to the participant 
who applied the BMPs and had control prior to the transfer, can be made,
    (2) Such land owner or operator is to assume all obligations of the 
previous participant on the transferred land unit,
    (3) The contract with the new participant is to remain in effect 
with the original terms and conditions, and
    (4) The contract is to be modified in writing to show the changes 
caused by the transfer. If the modification is not acceptable to the 
administering agency, the provisions of paragraphs (e) (1) and (2) of 
this section apply.
    (g) The transfer of all or part of a land unit by a participant does 
not affect the rights and obligations of other participants who have 
signed the contract.



Sec. 634.27  Cost-share payment.

    (a) General. Participants are to obtain or contract for materials or 
services as needed to install BMPs. Federal Cost-share payments are to 
be made by the administering agency upon certification by the District 
Conservationist, NRCS, or its designee, that the BMPs, or an 
identifiable unit thereof, have been properly carried out and meet the 
appropriate standards and specifications.
    (b) Payment maximum. The maximum total Federal cost-share payment to 
a participant shall be limited to $50,000. Exceptions to this limit may 
be made by the administering agency with concurrence of the 
Administrator, NRCS, upon recommedation of the NRCWCC, where it 
determines that the main benefits to be derived are essential for 
meeting the water quality objectives in the project area.
    (c) Basis for cost-share payment. (1) Cost-share payments are to be 
made by the administering agency at the cost- 

[[Page 520]]

share percentage and by one of the following methods designated by the 
administering agency and set out in the contract:
    (i) Average cost, or
    (ii) Actual cost not to exceed average cost.
    (2) If the average cost at the time of starting the installation of 
a BMP or identifiable unit is less than the costs specified in the 
contract, payment is to be at the lower rate. If the costs at the start 
of installation are higher, payment may be made at the higher rate. A 
modification will be necessary if the higher cost results in a 
significant increase in the total cost-share obligation. Cost-share 
payment is not to be made until the modification reflecting the increase 
is approved.
    (d) Average cost development. Average costs are to be developed by 
the administering agency for each project using cost data from the local 
area. These costs should be reviewed by the SRCWCC for consistency with 
average costs in other USDA programs. The average cost list is to be 
updated annually by the administering agency.
    (e) Application for payment. Cost-share payments can be made by the 
administering agency after a participant has carried out a BMP or an 
identifiable unit of a BMP. Application for payment must be submitted to 
the administering agency, be certified by the NRCS or its designee, and 
be supported by such cost receipts as are required by the administering 
agency. It is the participant's responsibility to apply for payments.
    (f) Authorizations for payments to suppliers. (1) The contract may 
authorize that part or all of the Federal cost share for a BMP or an 
identifiable unit be made directly to suppliers of materials or 
services. The materials or services must be delivered or performed 
before payment is made.
    (2) Federal cost shares will not be in excess of the cost share 
attributable to the material or service used or not in excess of the 
cost share for all identifiable units as may be requested by the 
participant.
    (g) Material inspection and analysis. When authorizations for 
payments to suppliers are specified, the administering agency, its 
representatives, or the Government reserve the right to inspect, sample, 
and analyze materials or services prior to their use.
    (h) Assignments, set-offs, and claims. (1) A State or local 
administering agency may allow the assignment of payments to the extent 
provided by State law. When ASCS is designated as the administering 
agency, assignments by any participant who may be entitled to cost-share 
payment under the program are prohibited unless they are made in 
accordance with the provisions of section 203, Title 31, U.S.C., as 
amended, and section 15, Title 41, U.S.C., as amended.
    (2) If any participant to whom compensation is payable under RCWP is 
indebted to the United States and such indebtedness is listed on the 
county register of indebtedness maintained by the County ASC committee, 
the compensation due the participant must be used (set-off) to reduce 
that idebtedness. Indebtedness to USDA is to be given first 
consideration. Deductions for setoffs involving a nonresident alien 
shall be made as provided by 26 U.S.C. 871. Setoffs made pursuant to 
this section are not to deprive the participant of any right to contest 
the justness of the indebtedness involved, either by administrative 
appeal or by legal action.
    (3) Any cost-share payment due any participant shall be allowed 
without deduction of claims for advances except as provided for above 
and without regard to any claim or lien against any crop, or proceeds 
thereof, in favor of the participant or any other creditor.
    (i) Access to land unit and records. Any authorized administering 
agency, or NRCS employees or agents, shall have the right of access at 
reasonable times to land under application or contract, and the right to 
examine any program records to ascertain the accuracy of any 
representations made in the application or contract. This is limited to 
the right to furnish technical assistance and to inspect work performed 
under the contract.
    (j) Suspension of payments. No cost-share payments will be made 
pending a decision on whether or not a contract violation has occurred.
    (k) Ineligible payments. The filing of requests for payment for 
BMP's not

[[Page 521]]

carried out, or for BMP's carried out in such a manner that they do not 
meet contract specifications, constitutes a violation of the contract.



Sec. 634.28  Appeals not related to contract violations.

    (a) The participant may, prior to execution of the contract, request 
that the administering agency review or reconsider criteria being used 
in developing his or her contract. Such review or reconsideration may 
include the eligibility of BMP's which had not been approved for 
application in the project area, cost-sharing levels for BMP's, 
priorities for developing water quality plans, and standards and 
specifications.
    (1) If verbal agreement is not reached, the participant may make a 
written request within 30 days after receiving notice of the decision of 
his or her verbal request.
    (2) The administering agency shall have 30 days in which to make a 
decision and notify the participant in writing.
    (3) The decision of the administering agency shall be final.
    (b) If, after the contract has been executed, the participant and 
the administering agency are unable to reach written agreement relative 
on matters which are not related to contract violations, the participant 
may request and receive a review by the appeals board. The administering 
agency will:
    (1) Notify the participant, in writing, of the date the appeals 
board will consider the appeal.
    (2) Within 30 days after receiving the administering agency's 
notice, the participant may file a request to appear and present oral 
and other evidence. If the participant does not request an appearance, 
the administering agency appeals board will decide the dispute on the 
evidence available to them, including statements or briefs of the 
authorized representatives of the soil conservation district and NRCS. 
The administering agency shall notify the participants of the appeals 
board's decision in writing. There shall be no further administrative 
appeal of this decision.
    (c) Filing of documents. A document is considered filed when it is 
received in the office of the person or agency concerned.



Sec. 634.29  Violations.

    (a) Actions causing violations. The following actions constitute 
violation of a contract by a participant:
    (1) Knowingly or negligently damaging or causing BMP's to become 
impaired.
    (2) Adopting a land use or practice during the contract period which 
tends to defeat the purposes of the program.
    (3) Failing to comply with the terms of the contract.
    (4) Filing a false claim.
    (5) Misusing authorizations for payment.
    (b) Contract termination as a result of violations. (1) By signing a 
contract, the participant agrees to forfeit all rights to further cost-
sharing payments under a contract and to refund all cost-share payments 
received, with interest, if the administering agency, with the 
concurrence of the State Conservationist, NRCS, determines that:
    (i) There was a violation of the contract during the time the 
participant had control of the land; and
    (ii) The violation was of such a nature as to warrant termination of 
the contract.
    (2) The participant shall be obligated to refund all cost-share 
payments and all cost shares paid under authorizations, with interest, 
at the rates established by the Secretary of the Treasury pursuant to 
Pub. L. 92-41, 85 Stat. 97.
    (c) Payment adjustments and refunds resulting from violations. (1) 
By signing a contract, the participant agrees to refund cost-share 
payments received under the contract or to accept payment adjustments if 
the administering agency determines and the State Conservationist, NRCS, 
concurs that:
    (i) There was a violation of the contract during the time the 
participant had control of the land; and
    (ii) The nature of the violation does not warrant termination of the 
contract.
    (2) Payment adjustments may include decreasing the rate of cost 
share, or deleting from the contract a cost-share commitment, or 
withholding cost-share payments earned but not paid. The participant who 
signs the

[[Page 522]]

contract may be obligated to refund cost-share payments.



Sec. 634.30  Appeals in USDA administered projects.

    The participant in a USDA-administered RCWP project may appeal 
decisions of the administering agency in accordance with part 614 of 
this title.

[60 FR 67316, Dec. 29, 1995]



Sec. 634.31  Appeals of contract violations.

    (a) Scope. This section prescribes the regulations dealing with 
contract violations. The Administrator, NRCS, reserves the right to 
revise or supplement any of the provisions of this section at any time 
if the action does not adversely affect the participant, or if the 
participant has been officially notified before this action is taken.
    (b) Determination by administering agency. Upon notification that a 
contract violation may have occurred, the administering agency:
    (1) Determines that a violation did not occur or that the violation 
was of such a nature that no further action is to be taken; or
    (2) Determines that a violation did occur and the participant agrees 
to accept a written penalty of forfeiture, refund, payment adjustment, 
or termination. If no agreement is reached, further action is to be 
taken.
    (c) Notice of possible violation. (1) When the administering agency 
is notified that a contract violation may have occurred and the matter 
is not resolved under Sec. 634.31(b)(1) it shall notify, in writing, 
each participant who signed the contract of the alleged violation. This 
notice setting forth the alleged violation may be personally delivered 
or sent by certified or registered mail. A participant is considered to 
have received the notice at the time of personal receipt acknowledged in 
writing, at the time of delivery of a certified or registered letter, or 
at the time of the return of a refused certified or registered letter.
    (2) The notice shall give the participant an opportunity to appear 
at a hearing before an appeals board. The participant's request for a 
hearing shall be submitted in writing, and must be received by the 
appeals board within 30 days after receipt of the notice. The 
participant shall be notified in writing by the appeals board of the 
time, date, and place for the hearing. The participant shall have no 
right to a hearing if he does not file a written request for a hearing, 
or if he or his representative does not appear at the appointed time, 
unless the appeals board, at its discretion, permits an appearance. A 
request for a hearing filed by a participant shall be considered to be a 
request by all participants who signed the contract.
    (d) Hearing. The appeals board shall conduct an open hearing to 
obtain the facts about the alleged violation. The appeals board shall 
limit the hearing to relevant facts and evidence, and shall not be bound 
by the strict rules of evidence. Witnesses may be sworn in at the 
discretion of the appeals board.
    (1) The participant or his or her representative shall be given full 
opportunity to present oral or documentary evidence about the alleged 
violation. Likewise, the administering agency may submit statements and 
evidence. Individuals not otherwise represented at the hearing may, at 
the discretion of the appeals board, be permitted to give information or 
evidence. The appeals board, at its discretion, may permit witnesses to 
be cross-examined.
    (2) The appeals board shall make a record of the hearing. A summary 
of the testimony may be made if both the participant and the appeals 
board agree. A transcript of the hearing shall be made if requested by 
either the appeals board or the participant within 10 days prior to the 
hearing. If a transcript is requested by the participant, the 
participant may be assessed the cost of a copy of the transcript.
    (3) The appeals board shall, after a reasonable period of time, 
close the hearing if the participant or his or her representative is not 
present at the scheduled time. The appeals board may, at its discretion, 
accept information and evidence submitted by others present for the 
hearing.
    (4) The appeals board shall furnish the administering agency and the 
State Conservationist, NRCS, with a written report setting forth their 
findings, conclusions, and recommendations. The report shall include the 
summary of testimony or transcript

[[Page 523]]

made of the hearing and any other information which would aid the 
administering agency in reaching a decision.
    (e) Decision by the administering agency. The administering agency 
shall make a decision within 30 days on the basis of the appeals board 
report, recommendations of soil conservation district board, if any, and 
any other information available, including if applicable, the amount of 
the forfeiture, refund, or payment adjustment. The decision shall state 
whether the violation is of such a nature as to warrant termination of 
the contract. The administering agency shall notify, in writing, each 
participant who signed the contract of its decision. The administering 
agency may authorize or require the reopening of any hearing before the 
appeals board for any reason at any time before their decision. The 
administering agency's decision shall be final.
    (1) If the decision provides for termination of the contract, it 
shall state that the contract is terminated and that all rights to 
further cost-share payments under the contract are forfeited and that 
all cost-share payments received under the contract shall be refunded 
with interest. The decision is to state the amount of refund and method 
of payment.
    (2) If the decision does not provide for termination of the 
contract, the participant may be required to make a refund of cost-share 
payments or to accept payment adjustments. The decision shall state the 
amount and justification for refunds of cost-share payments or payment 
adjustments.



                     Subpart D--Financial Management



Sec. 634.40  Financial management.

    (a)(1) Finance and accounting will be in conformance with Office of 
Management & Budget Circular A-102, (Rev.); U.S. Department of Health, 
Education & Welfare Brochure OASC-10, Federal Management Circular FMC 
74-4, ``Cost Principles Applicable to Grants and Contracts with State 
and Local Government''; Department of the Treasury, Department Circular 
No. 1075 (4th Rev.), ``Withdrawal of Cash from the Treasury for Advances 
under Federal Grant and other Programs''; Office of Management & Budget 
Circular No. A-34, ``Instruction on Budget Execution''; U.S. Treasury 
Requirements Manual for Guidance of Departments and Agencies; and 
General Accounting Office Policy & Procedures Manual for Guidance of 
Federal Agencies.
    (2) Administering agency RCWP grants will be funded under Letter-of-
Credit serviced by the U.S. Treasury Regional Disbursing Office (RCO), 
subject to the terms and conditions of the grant agreement or by NRCS 
approved advance/reimbursement financing agreements.
    (3) The State of local administering agency shall maintain a 
financial management system which provides accurate and complete 
disclosure of the financial status of the RCWP grant in accordance with 
prescribed reporting requirements.
    (4) The State or local administering agency shall upon request make 
its financial management system records available to NRCS, USDA Office 
of Inspector General, and the General Accounting Office.
    (5) Participation in comprehensive USDA/EPA joint water quality 
monitoring, evaluating, and analysis will be funded according to the 
plan approved in Sec. 634.50(a)(3).
    (b)(1) The carrying out of RCWP will require both financial and 
performance reporting to the Natural Resources Conservation Service by 
participating USDA and State or local agencies.
    (2) USDA participating agencies shall furnish NRCS with reports 
prescribed by the U.S. Treasury Department; Office of Management and 
Budget; Administrative Regulations of the U.S. Department of 
Agriculture; and other reports required by law, regulation, or 
agreement.
    (3) State or local administering agencies shall furnish financial 
status reports to NRCS on a quarterly basis as required by the grant 
agreement. The administering agency is also to provide an audit report 
upon request. The audit report is to be prepared in sufficient detail to 
allow NRCS to determine that funds have been used in compliance with 
applicable laws, regulations, and the grant agreement.

[[Page 524]]



                  Subpart E--Monitoring and Evaluation



Sec. 634.50  Program and project monitoring and evaluation.

    (a) Comprehensive USDA/EPA joint water quality monitoring, 
evaluation, and analysis. (1) Representative RCWP project areas will be 
selected to evaluate the improvement in water quality in the project 
area and to make projections on a nationwide basis. Water-quality 
monitoring, evaluation, and analysis will be conducted to evaluate the 
overall cost and effectiveness of projects and BMPs to provide 
information on the impact of the program on improved water quality and 
for general RCWP program management.
    (2) Monitoring, evaluation, and analysis is a joint USDA/EPA 
responsibility. Subject to appropriation of funds, the Administrator, 
NRCS, and EPA are jointly to select the project areas to be monitored 
and evaluated based on a list of project areas recommended by the 
NRCWCC.
    (3) The Administrator, NRCS, and Administrator, EPA, are jointly to 
determine the criteria to be used for comprehensive water-quality 
monitoring, evaluation, and analysis in the selected project areas. A 
monitoring and evaluation plan is to be developed and agreed to by NRCS 
and EPA prior to initiating a project selected for monitoring and 
evaluation. The State water-quality agency and other Federal, State, and 
local agencies will be involved in the development of the plan for 
water-quality evaluation. The involvement of concerned agencies in 
implementing the plan will be determined at the time the plan is 
prepared.
    (4) The project areas selected for detailed analysis are to be 
representative of agricultural and silvicultural nonpoint source 
pollution problems, categories of agriculture and silvicutural nonpoint 
source pollutants, agricultural enterprises, and BMPs used in the RCWP.
    (5) Preference in the selection of project areas for comprehensive 
evaluation is to be given to those project areas for which long-term 
baseline information exists on land use, hydrologic data, and water 
quality.
    (6) Monitoring and evaluation of selected project areas is to begin 
sufficiently in advance of the installation of BMPs to document, in a 
statistically satisfactory manner, existing land-use practices and 
baseline water-quality problems.
    (7) The water quality monitoring and evaluation plan will provide 
sufficient basic information to adequately describe the land use, 
hydrologic water quality relationship. As a minimum, the plan will 
contain the following components:
    (i) Chemical and physical water quality monitoring,
    (ii) Biological monitoring,
    (iii) Appropriate hydrologic data,
    (iv) Soils properties and characteristics, topographic information,
    (v) Land use and farm inventory.
    (b) Program and project evaluation.
    (1) There will be a continuing evaluation of the Rural Clean Water 
Program to measure its effectiveness and for each project for which 
cost-sharing funds are provided.
    (2) Program and project evaluations will be conducted under the 
direction of the Assistant Secretary for Conservation, Research and 
Education, USDA, the Director of Economics, Policy Analysis, and Budget, 
USDA; and the Assistant Administrator for Water and Waste Management, 
EPA; or their representatives working through NRCWCC.
    (3) Evaluative reports for the program and each project area will be 
submitted annually to the Secretary of Agriculture and the 
Administrator, EPA.
    (c) Funding. (1) Research oriented activities will be from sources 
other than RCWP.
    (2) Funding for program and project monitoring and evaluation will 
be provided through RCWP and other authorizations.

[[Page 525]]



                        SUBCHAPTER E--[RESERVED]



                    SUBCHAPTER F--SUPPORT ACTIVITIES



PART 650--COMPLIANCE WITH NEPA--Table of Contents




            Subpart A--Procedures for NRCS-Assisted Programs

Sec.
650.1  Purpose.
650.2  Applicability.
650.3  Policy.
650.4  Definition of terms.
650.5  Environmental evaluation in planning.
650.6  Categorical exclusions.
650.7  When to prepare an EIS.
650.8  When to prepare an environmental assessment (EA).
650.9  NEPA and interagency planning.
650.10  Adoption of an EIS prepared by a cooperating agency.
650.11  Environmental documents.
650.12  NRCS decisionmaking.
650.13  Review and comment.

                Subpart B--Related Environmental Concerns

650.20  Reviewing and commenting on EIS's prepared by other agencies.
650.21  Working relations with the U.S. Environmental Protection Agency 
          (EPA) and related state environmental agencies.
650.22  Rare, threatened, and endangered species of plants and animals.
650.23  Natural areas.
650.24  Scenic beauty (visual resource).
650.25  Flood-plain management.
650.26  Protection of wetlands.



            Subpart A--Procedures for NRCS-Assisted Programs

    Authority: 42 U.S.C. 4321 et seq.; Executive Order 11514 (Rev.); 16 
U.S.C. 1001-1008; 7 U.S.C. 1010-1011; 16 U.S.C. 590 a-f, q.; 7 CFR 2.62, 
unless otherwise noted.

    Source: 44 FR 50579, Aug. 29, 1979, unless otherwise noted.



Sec. 650.1  Purpose.

    (a) This rule prescribes procedures by which NRCS is to implement 
the provisions of NEPA. The Natural Resources Conservation Service 
recognizes NEPA as the national charter for protection, restoration, and 
enhancement of the human environment. NEPA establishes policy, sets 
goals (Section 101), and provides means (Section 102) for carrying out 
this policy.
    (b) The procedures included in this rule supplement CEQ's NEPA 
regulations, 40 CFR parts 1500-1508. CEQ regulations that need no 
additional elaboration to address NRCS-assisted actions are not repeated 
in this rule, although the regulations are cited as references. The 
procedures include some overlap with CEQ regulations. This is done to 
highlight items of importance for NRCS. This does not supersede the 
existing body of NEPA regulations.
    (c) These procedures provide that--
    (1) Environmental information is to be available to citizens before 
decisions are made about actions that significantly affect the human 
environment;
    (2) NRCS-assisted actions are to be supported to the extent possible 
by accurate scientific analyses that are technically acceptable to NRCS;
    (3) NRCS-prepared NEPA documents are to be available for public 
scrutiny; and
    (4) Documents are to concentrate on the issues that are timely and 
significant to the action in question rather than amassing needless 
detail.
    (d) Procedures for implementing NEPA are designed to ensure that 
environmental consequences are considered in decisionmaking. They allow 
NRCS to assist individuals and nonfederal public entities to take 
actions that protect, enhance, and restore environmental quality.
    (e) These procedures make possible the early identification of 
actions that have significant effects on the human environment to avoid 
delays in decisionmaking.



Sec. 650.2  Applicability.

    This rule applies to all NRCS-assisted programs including the 
uninstalled parts of approved projects that are not covered by 
environmental documents prepared under previous rules for compliance 
with NEPA. It is effective on the date of publication of the final rule. 
NRCS is to consult with

[[Page 526]]

CEQ in the manner prescribed by 40 CFR 1506.11 if it is necessary to 
take emergency actions.



Sec. 650.3  Policy.

    (a) NRCS mission. The NRCS mission is to provide assistance that 
will allow use and management of ecological, cultural, natural, 
physical, social, and economic resources by striving for a balance 
between use, management, conservation, and preservation of the Nation's 
natural resource base. The NRCS mission is reemphasized and expanded to 
carry out the mandate of section 101(b) of NEPA, within other 
legislative constraints, in all its programs of Federal assistance. NRCS 
will continue to improve and coordinate its plans, functions, programs, 
and recommendations on resource use so that Americans, as stewards of 
the environment for succeeding generations--
    (1) Can maintain safe, healthful, productive, and esthetically and 
culturally pleasing surroundings that support diversity of individual 
choices; and
    (2) Are encouraged to attain the widest range of beneficial uses of 
soil, water, and related resources without degradation to the 
environment, risk to health or safety, or other undesirable and 
unintended consequences.
    (b) NRCS environmental policy. NRCS is to administer Federal 
assistance within the following overall environmental policies:
    (1) Provide assistance to Americans that will motivate them to 
maintain equilibrium among their ecological, cultural, natural, 
physical, social, and economic resources by striving for a balance 
between conserving and preserving the Nation's natural resource base.
    (2) Provide technical and financial assistance through a systematic 
interdisciplinary approach to planning and decisionmaking to insure a 
balance between the natural, physical, and social sciences.
    (3) Consider environmental quality equal to economic, social, and 
other factors in decisionmaking.
    (4) Insure that plans satisfy identified needs and at the same time 
minimize adverse effects of planned actions on the human environment 
through interdisciplinary planning before providing technical and 
financial assistance.
    (5) Counsel with highly qualified and experienced specialists from 
within and outside NRCS in many technical fields as needed.
    (6) Encourage broad public participation in defining environmental 
quality objectives and needs.
    (7) Identify and make provisions for detailed survey, recovery, 
protection, or preservation of unique cultural resources that otherwise 
may be irrevocably lost or destroyed by NRCS-assisted project actions, 
as required by Historic Preservation legislation and/or Executive Order.
    (8) Encourage local sponsors to review with interested publics the 
operation and maintenance programs of completed projects to insure that 
environmental quality is not degraded.
    (9) Advocate the retention of important farmlands and forestlands, 
prime rangeland, wetlands, or other lands designated by State or local 
governments. Whenever proposed conversions are caused or encouraged by 
actions or programs of a Federal agency, licensed by or require approval 
by a Federal agency, or are inconsistent with local or State government 
plans, provisions are to be sought to insure that such lands are not 
irreversibly converted to other uses unless other national interests 
override the importance of preservation or otherwise outweigh the 
environmental benefits derived from their protection. In addition, the 
preservation of farmland in general provides the benefits of open space, 
protection of scenery, wildlife habitat, and in some cases, recreation 
opportunities and controls on urban sprawl.
    (10) Advocate actions that reduce the risk of flood loss; minimize 
effects of floods on human safety, health, and welfare; and restore and 
preserve the natural and beneficial functions and values of flood 
plains.
    (11) Advocate and assist in the reclamation of abandoned surface-
mined lands and in planning for the extraction of coal and other 
nonrenewable resources to facilitate restoration of the land to its 
prior productivity as mining is completed.

[[Page 527]]

    (12) Advocate the protection of valuable wetlands, threatened and 
endangered animal and plant species and their habitats, and designated 
ecosystems.
    (13) Advocate the conservation of natural and manmade scenic 
resources to insure that NRCS-assisted programs or activities protect 
and enhance the visual quality of the landscape.
    (14) Advocate and assist in actions to preserve and enhance the 
quality of the Nation's waters.

[44 FR 50579, Aug. 20, 1979; 44 FR 54981, Sept. 24, 1979]



Sec. 650.4  Definition of terms.

    Definitions of the following terms or phrases appear in 40 CFR part 
1508, CEQ regulations. These terms are important in the understanding 
and implementation of this rule. These definitions are not repeated in 
the interest of reducing duplication:

    Categorical exclusion. (40 CFR 1508.4)
    Cooperating agency. (40 CFR 1508.5)
    Cumulative impact. (40 CFR 1508.7)
    Environmental impact statement (EIS). (40 CFR 1508.11)
    Human environment. (40 CFR 1508.14)
    Lead agency. (40 CFR 1508.16)
    Major Federal action. (40 CFR 1508.18)
    Mitigation. (40 CFR 1508.20)
    NEPA process. (40 CFR 1508.21)
    Scope. (40 CFR 1508.25)
    Scoping. (40 CFR 1501.7)
    Tiering. (40 CFR 1508.28)

    (a) Channel realignment. Channel realignment includes the 
construction of a new channel or a new alignment and may include the 
clearing, snagging, widening, and/or deepening of the existing channel. 
(Channel Modification Guidelines, 43 FR 8276).
    (b) Environmental assessment (EA). (40 CFR 1508.9)
    (1) An environmental assessment is a concise public document for 
which a Federal agency is responsible that--
    (i) Briefly provides sufficient evidence and analysis for 
determining whether to prepare an environmental impact statement or a 
finding of no significant impact.
    (ii) Aids an agency's compliance with the Act when no environmental 
impact statement is necessary.
    (iii) Facilitates preparation of an environmental impact statement 
when one is necessary.
    (2) An environmental assessment includes brief discussions of the 
need for the proposal, alternatives as required by section of the 
environmental impacts of the proposed action and alternatives, and a 
list of agencies and persons consulted.
    (c) Environmental evaluation. The environmental evaluation (EE) 
(formerly referred to by NRCS as an environmental assessment) is the 
part of planning that inventories and estimates the potential effects on 
the human environment of alternative solutions to resource problems. A 
wide range of environmental data together with social and economic 
information is considered in determining whether a proposed action is a 
major Federal action significantly affecting the human environment. The 
environmental evaluation for a program, regulation, or individual action 
is used to determine the need for an environmental assessment or an 
environmental impact statement. It also aids in the consideration of 
alternatives and in the identification of available resources.
    (d) Federally-assisted actions. These actions are planned and 
carried out by individuals, groups, or local units of government largely 
on nonfederal land with technical and/or financial assistance provided 
by NRCS.
    (e) Interdisciplinary planning. NRCS uses an interdisciplinary 
environmental evaluation and planning approach in which specialists and 
groups having different technical expertise act as a team to jointly 
evaluate existing and future environmental quality. The 
interdisciplinary group considers structure and function of natural 
resource systems, complexity of problems, and the economic, social, and 
environmental effects of alternative actions. Public participation is an 
essential part of effective interdisciplinary planning. Even if an NRCS 
employee provides direct assistance to an individual land user, the 
basic data used is a result of interdisciplinary development of guide 
and planning criteria.

[[Page 528]]

    (f) Nonproject actions. Nonproject actions consist of technical and/
or financial assistance provided to an individual, group, or local unit 
of government by NRCS primarily through a cooperative agreement with a 
local conservation district, such as land treatment recommended in the 
Conservation Operations, Great Plains Conservation, Rural Abandoned 
Mine, and Rural Clean Water Programs. These actions may include 
consultations, advice, engineering, and other technical assistance that 
land users usually cannot accomplish by themselves. Nonproject technical 
and/or financial assistance may result in the land user installing field 
terraces, waterways, field leveling, onfarm drainage systems, farm 
ponds, pasture management, conservation tillage, critical area 
stablization and other conservation practices.
    (g) Notice of intent (NOI) (40 CFR 1508.22). A notice of intent is a 
brief statement inviting public reaction to the decision by the 
responsible Federal official to prepare an EIS for a major Federal 
action. The notice of intent is to be published in the Federal Register, 
circulated to interested agencies, groups, individuals, and published in 
one or more newspapers serving the area of the proposed action.
    (h) Project actions. A project action is a formally planned 
undertaking that is carried out within a specified area by sponsors for 
the benefit of the general public. Project sponsors are units of 
government having the legal authority and resources to install, operate, 
and/or maintain works of improvement.
    (i) Record of Decision. (ROD) (40 CFR 1505.2). A record of decision 
is a concise written rationale by the RFO regarding implementation of a 
proposed action requiring an environmental impact statement. This was 
previously defined by NRCS as a Statement of Findings (SOF).
    (j) Responsible Federal official (RFO). The NRCS Administrator is 
the responsible Federal official (RFO) for compliance with NEPA 
regarding proposed legislation, programs, legislative reports, 
regulations, and program EIS's. NRCS state conservationists (STC's) are 
the RFO's for compliance with the provisions of NEPA in other NRCS-
assisted actions.
    (k) Significantly. (40 CFR 1508.27) ``Significantly'' as used in 
NEPA requires considerations of both context and intensity:
    (1) Context. This means that the significance of an action must be 
analyzed in several contexts such as society as a whole (human, 
national), the affected region, the affected interests, and the 
locality. Significance varies with the setting of the proposed action. 
For instance, for a site-specific action, significance usually depends 
on the effects in the locale rather than in the world as a whole. Both 
short- and long-term effects are relevant.
    (2) Intensity. This refers to the severity of impact. Responsible 
officials must bear in mind that more than one agency may make decisions 
about partial aspects of a major action.

The following should be considered in evaluating intensity:
    (i) Impacts that may be both beneficial and adverse. A significant 
effect may exist even if the Federal agency believes that on balance the 
effect will be beneficial.
    (ii) The degree to which the proposed action affects public health 
or safety.
    (iii) Unique characteristics of the geographic area such as 
proximity to historic or cultural resources, park lands, prime 
farmlands, wetlands, wild and scenic rivers, or ecologically critical 
areas.
    (iv) The degree to which the effects on the quality of the human 
environment are likely to be highly controversial.
    (v) The degree to which the possible effects on the human 
environment are highly uncertain or involve unique or unknown risks.
    (vi) The degree to which the action may establish a precedent for 
future actions with significant effects or represents a decision in 
principle about a future consideration.
    (vii) Whether the action is related to other actions with 
individually insignificant but cumulatively significant impacts. 
Significance exists if it is reasonable to anticipate a cumulatively 
significant impact on the environment. Significance cannot be avoided by 
terming an action temporary or by breaking it down into small component 
parts.

[[Page 529]]

    (viii) The degree to which the action may adversely affect 
districts, sites, highways, structures, or objects listed in or eligible 
for listing in the National Register of Historic Places or may cause 
loss or destruction of significant scientific, cultural, or historical 
resources.
    (ix) The degree to which the action may adversely affect an 
endangered or threatened species or its habitat that has been determined 
to be critical under the Endangered Species Act of 1973 as amended.
    (x) Whether the action threatens a violation of Federal, State, or 
local law or requirements imposed for the protection of the environment.
    (l) Finding of no significant impact (FNSI). (40 CFR 1508.13) 
``Finding of No Significant Impact'' means a document by a Federal 
agency briefly presenting the reasons why an action not otherwise 
excluded (Sec. 1508.4) will not have a significant effect on the human 
environment, and an environmental impact statement therefore will not be 
prepared. It shall include the environmental assessment or a summary of 
it and shall note any other environmental documents related to it 
(Sec. 1501.7(a)(5)). If the assessment is included, the finding need not 
repeat any of the discussion in the assessment but may incorporate it by 
reference.

[44 FR 50579, Aug. 29, 1979; 44 FR 54981, Sept. 24, 1979]



Sec. 650.5  Environmental evaluation in planning.

    (a) General. Environmental evaluation (EE) integrates environmental 
concerns throughout the planning, installation, and operation of NRCS-
assisted projects. The EE applies to all assistance provided by NRCS, 
but planning intensity, public involvement, and documentation of actions 
vary according to the scope of the action. NRCS begins consideration of 
environmental concerns when information gathered during the 
environmental evaluation is used:
    (1) To identify environmental concerns that may be affected, gather 
baseline data, and predict effects of alternative courses of actions;
    (2) To provide data to applicants for use in establishing objectives 
commensurate with the scope and complexity of the proposed action;
    (3) To assist in the development of alternative courses of action; 
(40 CFR 1502.14). In NRCS-assisted project actions, nonstructural, water 
conservation, and other alternatives that are in keeping with the Water 
Resources Council's Principles and Standards are considered, if 
appropriate.
    (4) To perform other related investigations and analyses as needed, 
including economic evaluation, engineering investigations, etc.
    (5) To assist in the development of detailed plans for 
implementation and operation and maintenance.
    (b) Procedures. NRCS's Guide for Environmental Assessment issued in 
March 1977 and published in the Federal Register on August 8, 1977, 
provides guidance for conducting an environmental evaluation. (42 FR 
40123-40167).
    (c) Decision points. Figure 1 illustrates the decision points for 
compliance with NEPA in NRCS decisionmaking.

[[Page 530]]

[GRAPHIC] [TIFF OMITTED] TC03SE91.000



[[Page 531]]



Sec. 650.6  Categorical exclusions.

    (a) Some NRCS programs or parts of programs do not normally create 
significant individual or cumulative impacts on the human environment. 
Therefore, an EA or EIS is not needed. These are data gathering and 
interpretation programs and include:
    (1) Soil Survey--7 CFR part 611;
    (2) Snow Survey and Water Supply Forecasts--7 CFR part 612;
    (3) Plant Materials for Conservation--7 CFR part 613;
    (4) Inventory and Monitoring--Catalog of Federal Domestic 
Assistance--10.908; and
    (5) River Basin Studies under section 6 of Pub. L. 83-566 as 
amended--7 CFR part 621.
    (b) The environmental evaluation performed by the RFO when any new 
action under these programs is planned is to identify extraordinary 
circumstances that might lead to significant individual or cumulative 
impacts. Actions that have potential for significant impacts on the 
human environment are not categorically excluded.



Sec. 650.7  When to prepare an EIS.

    The following are categories of NRCS action used to determine 
whether or not an EIS is to be prepared.
    (a) An EIS is required for:
    (1) Projects that include stream channel realignment or work to 
modify channel capacity by deepening or widening where significant 
aquatic or wildlife habitat exists. The EE will determine if the channel 
supports significant aquatic or wildlife habitat;
    (2) Projects requiring Congressional action;
    (3) Broad Federal assistance programs administered by NRCS when the 
environmental evaluation indicates there may be significant cumulative 
impacts on the human environment (Sec. 650.7(e)); and
    (4) Other major Federal actions that are determined after 
environmental evaluation to affect significantly the quality of the 
human environment (Sec. 650.7(b)). If it is difficult to determine 
whether there is a significant impact on the human environment, it may 
be necessary to complete the EE and prepare an EA in order to decide if 
an EIS is required.
    (b) The RFO is to determine the need for an EIS for each action, 
program, or regulation. An environmental evaluation, using a systematic 
interdisciplinary analysis and evaluation of data and information 
responding to the five provisions of Section 102(2)(C) of NEPA, will 
assist the RFO in deciding if the action requires the preparation of an 
EIS. In analyzing and evaluating environmental concerns, the RFO will 
answer the following questions:
    (1) Environmental impact. Will the proposed action significantly 
affect the quality of the human environment (40 CFR 1508.14)? For 
example, will it significantly alter or destroy valuable wetlands, 
important farmlands, cultural resources, or threatened and endangered 
species? Will it affect social values, water quality, fish and wildlife 
habitats, or wilderness and scenic areas?
    (2) Adverse environmental effects that cannot be avoided. What are 
the important environmental amenities that would be lost if the proposed 
action were implemented?
    (3) Alternatives. Are there alternatives that would achieve the 
planning objectives but avoid adverse environmental effects?
    (4) Short-term uses versus long-term productivity. Will the proposed 
actions, in combination with other actions, sacrifice the enhancement of 
significant long-term productivity as a tradeoff for short-term uses?
    (5) Commitment of resources. Will the proposed action irreversibly 
and irretrievably commit the use of resources such as important 
farmlands, wetlands, and fish and wildlife habitat?
    (c) Criteria for determining the need for a program EIS:
    (1) A program EIS is required if the environmental evaluation 
reveals that actions carried out under the program have individually 
insignificant but cumulatively significant environmental impacts.
    (2) A project EIS, in lieu of a program EIS, is required if the 
environmental evaluation reveals that actions carried out under the 
program will have both individually and cumulatively significant 
environmental impacts. (7 CFR Parts 620 through 623 and 640 through 
643).

[[Page 532]]

    (d) The RFO, through the process of tiering, is to determine if a 
site-specific EA or EIS is required for an individually significant 
action that is included in a program EIS.



Sec. 650.8  When to prepare an environmental assessment (EA).

    An environmental assessment (EA) is to be prepared for:
    (a) Land and water resource projects that are not included in 
Sec. 650.7(a) (1) through (4) for which State and local units of 
government receive Federal technical and financial assistance from NRCS 
(7 CFR parts 620 through 623; and 640 through 643); and
    (b) Other actions not included in a program EIS nor categorically 
excluded that the EE reveals may be a major Federal action significantly 
affecting the quality of the human environment.



Sec. 650.9  NEPA and interagency planning.

    (a) Lead agency. (1) NRCS is to be the lead agency for actions under 
programs it administers. If the actions affect more than one State, the 
NRCS Administrator is to designate one NRCS state conservationist as the 
RFO.
    (2) NRCS normally takes the role of lead agency in actions that 
share program responsibilities among USDA agencies if NRCS provides the 
majority of funds for the actions. If the lead agency role is in 
question, the role of NRCS and other USDA agencies is to be determined 
by the USDA Environmental Coordinator, Office of Environmental Quality 
Activities.
    (3) If NRCS and Federal agencies outside USDA cannot agree on which 
will be the lead agency and which will be the cooperating agencies, the 
procedures in 40 CFR 1501.5(e) are to be followed.
    (4) NRCS, as lead agency, is to coordinate the participation of all 
concerned agencies in developing the EIS according to the provisions of 
40 CFR 1501.6(a).
    (b) Cooperating agencies. (1) NRCS is to request, as appropriate, 
the assistance of cooperating agencies in preparing the environmental 
evaluation. This assistance will broaden the expertise in the planning 
and help to avoid future conflict. NRCS is to request assistance in 
determining the scope of issues to be addressed and identifying the 
significant issues related to a proposed action from Federal agencies 
that have jurisdiction by law or special expertise.
    (2) NRCS is to act as a cooperating agency if requested. NRCS may 
request to be designated as a cooperating agency if proposed actions may 
affect areas of NRCS expertise, such as prime farmlands, soils, erosion 
control, and agricultural sources of nonpoint pollution. NRCS, as a 
cooperating agency, is to comply with the requirements of 40 CFR 
1501.6(b) to the extent possible depending on funds, personnel, and 
priority. If insufficient funds or other resources prevent NRCS from 
participating fully as a cooperating agency, NRCS is to request the lead 
agency to provide funds or other resources which will allow full 
participation.
    (c) Scoping. See 40 CFR 1501.7 for a definition of scoping.
    (1) NRCS is to use scoping to identify and categorize significant 
environmental issues in its environmental evaluation. Formalized scoping 
is used to insure that an analytical EIS can be prepared that will 
reduce paperwork and avoid delay. Scoping allows NRCS to obtain the 
assistance and consultation of affected agencies that have special 
expertise or legal jurisdiction in the proposed action. If early 
environmental evaluation identifies a need for an EIS, NRCS is to 
publish a notice of intent (NOI) to prepare an EIS. The NOI is to 
request the assistance of all interested agencies, groups, and persons 
in determining the scope of the evaluation of the proposed action.
    (2) Normally a scoping meeting is held and Federal, State, or local 
agencies that have special expertise or legal jurisdiction in resource 
values that may be significantly affected are requested to participate. 
The scoping meeting will identify agencies that may become cooperating 
agencies.
    (3) In the scoping meeting, the range of actions, alternatives, and 
impacts to be evaluated and included in the EIS as defined in (40 CFR 
1508.25) are to be determined. Tiering (40 CFR 1508.28) may be used to 
define the relation of the proposed statement to other statements.

[[Page 533]]

    (4) Periodic meetings of the cooperating agencies are to be held at 
important decisionmaking points to provide timely interagency, 
interdisciplinary participation.
    (5) Scoping is to include the items listed in 40 CFR 1501.7(a) and 
may also include any of the activities in 40 CFR 1501.7(b). Appropriate, 
timely requests and notification are to be made to promote public 
participation in scoping in accordance with paragraph (d) of this 
section.
    (6) The RFO through the scoping process will set time and page 
limits as prescribed in 40 CFR 1501.8. Time and page limits are 
established by NRCS in consultation with sponsors and others according 
to the projected availability of resources. The RFO is to make the 
applicant aware of the possible need for revising time and page limits 
because of changes in resources.
    (d) Public participation. (1) General. Public participation 
activities begin early in the EE and are to be appropriate to the 
proposed action. For example, extensive public participation activities 
are required in the implementation of new programs and project actions, 
but limited public participation is appropriate for nonproject technical 
and financial assistance programs on nonfederal land.
    (2) Early public involvement. The public is to be invited and 
encouraged to participate in the early stages of planning, including the 
consideration of the potential effects of NRCS-assisted actions on 
significant environmental resources such as wetlands, flood plains, 
cultural values, endangered species, important farmland.
    (3) Project activities. The following are general considerations for 
providing opportunities for public participation:
    (i) Identification of interested public. The interested public 
consisting of but not limited to individuals, groups, organizations, and 
government agencies are to be identified, sought out, and encouraged to 
participate in and contribute to interdisciplinary planning and 
environmental evaluation.
    (ii) Public notices. (40 CFR 1506.6) If the effects of an action are 
primarily of local concern, notice of each public meeting or hearing 
should be: Submitted to State and areawide clearinghouses pursuant to 
OMB Circular A-95 (revised); submitted to Indian tribes if they are 
interested; published in local newspapers; distributed through other 
local media; provided to potentially interested community organizations 
including small business associations; published in newsletters that may 
be expected to reach potentially interested persons; mailed directly to 
owners and occupants of nearby or affected property; and posted onsite 
and offsite in the area where the action is to be located.
    (iii) State statutes. If official action by the local units of 
government cooperating in the proposal is governed by State statute, the 
public notice and mailing requirement of the statute is to be followed. 
If the effects of an action are of national concern, notice is to be 
published in the Federal Register and mailed to national organizations 
reasonably expected to be interested.
    (iv) Public meetings. The RFO, after consultation with the sponsors, 
is to determine when public meetings or hearings are to be held. Public 
meetings may be in the form of a workshop, tour, open house, etc. Public 
involvement will include early discussion of flood-plain management and 
protection of wetlands, where appropriate. Environmental information is 
to be presented and discussed along with other appropriate information. 
To the extent practical, pertinent information should be made available 
before the meetings.
    (v) Documentation. The RFO is to maintain a reviewable record of 
public participation in the environmental evaluation process.
    (4) Nonproject activities. Public participation in the planning and 
application of conservation practices with individual land users is 
accomplished primarily through conservation districts. These districts 
are governed by boards of supervisors directors, commissioners, etc., 
who are elected and/or appointed to insure that soil, water, related 
resources, and environmental qualities in the district are maintained 
and improved. The public is to be encouraged to participate in the 
development of long-range district programs and district annual plans. 
The district

[[Page 534]]

keeps the public informed through public meetings, district newsletters, 
news stories, radio and television programs, and annual reports.



Sec. 650.10  Adoption of an EIS prepared by a cooperating agency.

    (a) If NRCS adopts an EIS prepared by another Federal or State 
agency, the RFO is to review the document to insure that it meets the 
requirements of the CEQ regulations and NRCS-NEPA procedures.
    (b) If the actions included in the EIS are substantially the same as 
those proposed by NRCS, the RFO is to recirculate the EIS as ``final.'' 
The final EIS is to include an appropriate explanation of the action. If 
these actions are not substantially the same, the EIS is to be 
supplemented and recirculated as a draft EIS. The RFO is to inform the 
preparing agency of the proposed action.
    (c) If the adopted EIS is not final, if it is the subject of a 
referral under 40 CFR part 1504, or if the statement's adequacy is in 
litigation, the RFO is to include an appropriate explanation in the EIS.
    (d) The RFO is to take appropriate action to inform the public and 
appropriate agencies of the proposed action.



Sec. 650.11  Environmental documents.

    (a) NRCS is to use the following documents in compliance with NEPA 
(see Sec. 650.4):
    (1) Environmental assessments (EA)
    (2) Environmental impact statements (EIS)
    (3) Notice of intent (NOI)
    (4) Finding of no significant impact (FNSI)
    (5) Record of decision (ROD)
    (b) The format and content of each document is to be appropriate to 
the action being considered and consistent with the CEQ regulations.
    (1) To reduce duplication, NRCS may combine environmental documents 
with other planning documents of the same proposal, as appropriate. For 
example, NRCS, in consultation with CEQ and the office of the Secretary 
of Agriculture, has determined that each EIS is to satisfy the 
requirements for a regulatory impact analysis as required by Executive 
Order 12044. This may necessitate modifying the recommended CEQ format. 
If documents are combined, the RFO is to include the information and 
sections required by the CEQ regulations (40 CFR 1502.10). The 
environmental impact statement should indicate those considerations, 
including factors not related to environmental quality, that are likely 
to be relevant to a decision.
    (2) The RFO is to establish the format and content of each document 
giving full consideration to the guidance and requirements of the CEQ 
regulations. The NRCS technical service center director is to provide 
guidance and concurrence on the format and content if the NRCS state 
conservationist is the RFO. The results of scoping are to determine the 
content of the EA or the EIS and the amount of detail needed to analyze 
the impacts.
    (3) In addition to the minimum requirements of the CEQ regulations 
(40 CFR 1502.10), environmental assessments and environmental impact 
statements are to include--
    (i) A brief description of public participation activities of 
agencies, groups, and individuals during the environmental evaluation;
    (ii) A description of the hazard potential of each alternative, 
including an explanation of the rationale for dam classification and the 
risk of dam failure from overtopping for other causes;
    (iii) Information identifying any approved regional plans for water 
resource management in the study area (40 CFR 1506.2(d)) and a statement 
on whether the proposed project is consistent with such plans;
    (iv) All Federal permits, licenses, and other entitlements that must 
be obtained (40 CFR 1502.25(b)); and
    (v) A brief description of major environmental problems, conflicts, 
and disagreements among groups and agencies and how they were resolved. 
Unresolved conflicts and the NRCS's proposal for resolving the 
disagreements before the project is implemented are to be summarized.
    (4) Letters of comment and responses. (40 CFR 1503.4, 1502.9(b)) 
Letters of comment that were received and the responses to these 
comments are to appended to the final EIS. Opposing views and other 
substantive comments that

[[Page 535]]

were not adequately discussed in the draft EIS are to be incorporated in 
the final EIS.
    (5) Appendix. The RFO may use an appendix to an EA or EIS. If an 
appendix is too voluminous to be circulated with the EIS, the RFO is to 
make it available on request. If an appendix is included it is to--
    (i) Meet the requirements of 40 CFR 1502.18;
    (ii) Identify any methodologies used (40 CFR 1502.24) and make 
explicit reference to other sources relied on for conclusions; and
    (iii) Briefly describe the relationship between the benefit-cost 
analysis and any analyses of unquantified environmental impacts, values, 
and amenities. ``For purposes of complying with the Act, the weighing of 
the merits or drawbacks of the various alternatives need not be 
displayed in a monetary cost benefit and should not be when these are 
important qualitative considerations.'' (40 CFR 1502.23).



Sec. 650.12  NRCS decisionmaking.

    (a) General. The purpose of these procedures is to insure that 
environmental information is provided to decision makers in a timely 
manner. The NEPA process is a part of NRCS decisionmaking. The RFO is to 
insure that the policies and purposes of NEPA and CEQ regulations are 
complied with in NRCS decisionmaking by:
    (1) Including in all decision documents and supporting environmental 
documents a discussion of all alternatives considered in the decision. 
Alternatives to be considered in reaching a decision will be available 
to the public.
    (2) Submitting relevant environmental documents, comments, and 
responses with other decision documents through the review process.
    (3) Including in the record of formal rulemaking or adjudicatory 
proceedings relevent environmental documents, comments and responses.
    (4) Providing for pre- and post-project monitoring (40 CFR 
1505.2(c), 1505.3) and evaluation in representative projects to insure 
that planning and evaluation procedures are performed according to sound 
criteria.
    (b) Decision points in NRCS-assisted projects. NRCS administers 
programs that may have a significant effect on the human environment. 
Program procedures incorporate provisions for compliance with NEPA and 
for providing environmental information to the public, other agencies, 
and decision makers in a timely manner. NRCS provides technical and 
financial assistance for projects under the Watershed Protection and 
Flood Prevention and the Resource Conservation and Development (RC&D) 
programs. These usually require the preparation of project EA's or 
EIS's. The major decisionmaking points and their relation to NEPA 
compliance are as follows:
    (1) For Watershed Protection and Flood Prevention projects:
    (i) Application for assistance by the sponsoring local organization 
(SLO).
    (ii) A preauthorization report identifying goals, alternatives, and 
effects of alternatives (including environmental impacts) prepared by 
the RFO and submitted to the applicant for decision. It is circulated to 
local, State, and Federal agencies and public comment is solicited. A 
decision is made to stop planning assistance or to develop a watershed 
plan.
    (iii) Granting of planning authorization by the Administrator. The 
RFO must provide an evaluation of the potential environmental impacts to 
obtain the authorization.
    (iv) A watershed agreement between the SLO and NRCS. The agreement 
is based on a completed watershed plan and associated environmental 
documents, which have been adequately reviewed within NRCS.
    (v) A project agreement between the SLO and the RFO executed after 
the NEPA process is complete and the watershed plan has been approved 
and final plans and specifications have been developed.
    (2) For RC&D measure plans:
    (i) A request for assistance (measure proposal) is reviewed by the 
RC&D council to insure that the proposal is in accordance with the RC&D 
area plan. The proposal is then referred to NRCS.

[[Page 536]]

    (ii) A preliminary report is prepared by the RFO to identify goals, 
alternatives, and effects (including environmental impacts). The report 
is submitted to the sponsor for review. The sponsor may then apply to 
NRCS for planning assistance for measures considered in the preliminary 
report.
    (iii) An authorization for planning assistance is granted by the 
RFO.
    (iv) The RC&D measure plan is signed by the applicant and the RFO 
after the preparation and review of the measure plan and environmental 
documents.
    (v) A project agreement is signed between the applicant and the RFO 
after the NEPA process is complete, the measure plan has been approved, 
and final plans and specifications have been prepared.
    (c) Record of decision--(1) EIS's. The RFO is to prepare a concise 
record of decision (ROD) for actions requiring an EIS. The record of 
decision is to be prepared and signed by the RFO following the 30-day 
administrative action period initiated by the EPA's publication of the 
notice of availability of the final EIS in the Federal Register. It is 
to serve as the public record of decision as described in 40 CFR 1505.2 
of the CEQ regulations. The ROD is to be distributed to all who provided 
substantive comments on the draft EIS and all others who request it. A 
notice of availability of the ROD will be published in the Federal 
Register and local newspaper(s) serving the project area. The RFO may 
choose to publish the entire ROD.
    (2) Environmental Assessments (EA). If the EA indicates that the 
proposed action is not a major Federal action significantly affecting 
the quality of the human environment, the RFO is to prepare a finding of 
no significant impact (FNSI).
    (3) Distribution and publication of the FNSI (Sec. 1506.6(b)). The 
RFO is to distribute the FNSI to interested agencies and individuals. 
Notice of its availability is to be published in the Federal Register 
and in one or more newspapers serving the area of the proposed action. 
Single copy requests for the document are to be filed without charge. A 
charge may be made for multiple copies. Implementing action is not to be 
initiated for 30 days after the notice of availability of the FNSI has 
been published in the Federal Register.
    (d) Changes in actions. When it appears that a project or other 
action needs to be changed, the RFO will perform an environmental 
evaluation of the authorized action before making a change.



Sec. 650.13  Review and comment.

    In addition to the requirements of 40 CFR 1503, 1506.10 and 1506.11, 
NRCS will take the following steps in distributing EIS's for review and 
comment:
    (a) Draft EIS's. Five copies of the draft EIS are to be filed by the 
RFO with the Office of Environmental Review, A-104, Environmental 
Protection Agency (EPA), Washington, D.C. At the same time, the RFO is 
to send copies of the draft EIS to the following:
    (1) Other Federal agencies. The regional office of EPA and other 
agencies that have jurisdiction by law or special expertise with respect 
to any environmental effect, other Federal agencies (including 
appropriate field and regional offices), and affected Indian tribes.
    (2) State and local agencies. OMB Circular No. A-95 (Revised), 
through its system of State and areawide clearinghouses, provides a 
means for obtaining the views of State and local environmental agencies 
that can assist in the preparation and review of EIS's
    (3) Organizations, groups, and individuals. A copy of the draft EIS 
is to be sent to the appropriate official of each organization or group 
and each individual of the interested public (Sec. 650.9(d)(3)(i)) and 
to others as requested. A charge may be made for multiple copy requests.
    (b) Time period for comment. The time period for review ends 45 days 
after the date EPA publishes the notice of public availability of the 
draft in the Federal Register. A 15-day-extension of time for review and 
comment is to be considered by the RFO when such requests are submitted 
in writing. If neither comments nor a request for an extension is 
received at the end of the 45-day period, it is to be presumed that the 
agency or party from whom comments were requested has no comments to 
make.

[[Page 537]]

    (c) News releases. In addition to the notice of availability 
published in the Federal Register by EPA, the RFO is to announce the 
availability of the draft EIS in one or more newspapers serving the 
area.
    (d) Revising a draft EIS. If significant changes in the proposed 
action are made as a result of comments on the draft EIS, a revised 
draft EIS may be necessary. The revised draft EIS is to be recirculated 
for comment in the same manner as a draft EIS.
    (e) Final EIS's. After the review period for the draft EIS, the RFO 
is to prepare a final EIS, making adjustments where necessary by taking 
into consideration and responding to significant comments and opposing 
viewpoints received on the draft EIS. The following steps are to be 
taken in filing and distributing the final EIS:
    (1) Letters of comment are to be appended to the final EIS. If 
numerous repetitive responses are received, summaries of the repetitive 
comments and a list of the groups or individuals who commented may be 
appended in lieu of the actual letter.
    (2) The RFO is to send five copies of the final EIS to EPA's Office 
of Environmental Review, and a copy of the final EIS to each State and 
Federal agency, organization, group, and individual who commented on the 
draft EIS. Single copy requests for copies of the final EIS will be 
provided without charge. A charge may be made for multiple copy 
requests.
    (3) During the 30-day administrative action period noted in 
Sec. 650.12(c), NRCS will make its final EIS available to the public (40 
CFR 1506.10).
    (f) Supplements to EIS's. (1) If NRCS determines that it is 
necessary to clarify or amplify a point of concern raised after the 
final EIS is filed, appropriate clarification or amplification is to be 
sent to EPA with information copies furnished to those who received 
copies of the final EIS. The waiting periods do not apply.
    (2) If the RFO determines that the final EIS or supplement to the 
original EIS previously filed becomes inadequate because of a major 
change in the plan for the proposed action that significantly affects 
the quality of the human environment, a new EIS is to be prepared, 
filed, and distributed as described in this section.



                Subpart B--Related Environmental Concerns

    Authority: Pub. L. 86-523, 74 Stat. 220 as amended, Pub. L. 93-291, 
88 Stat. 174 (16 U.S.C. 469); Pub. L. 89-665, 80 Stat. 915 (16 U.S.C. 
470); Pub. L. 93-205, 87 Stat. 884 (16 U.S.C. 1531 et seq.); Secretary 
of Agriculture Memorandum 1695, May 28, 1970; 42 U.S.C. 4332(2)(C); E.O. 
11514, 16 U.S.C. 1001-1008; 7 U.S.C. 1010-1011; 16 U.S.C. 590 a-f, q; 7 
CFR 2.62.

    Source: 39 FR 43993, Dec. 20, 1974, unless otherwise noted.



Sec. 650.20  Reviewing and commenting on EIS's prepared by other agencies.

    (a) NRCS employees assigned to review and comment on EIS's prepared 
by other agencies are to be familiar with NRCS policies and guidelines 
contained in this part, and NEPA.
    (b) EIS's received for review by NRCS for which NRCS has expertise 
or interest shall be responded to promptly. Comments are to be objective 
with the intent to offer suggestions to help minimize adverse impacts of 
the proposed action to ensure the health and welfare of the agricultural 
community. Comments are to be based on knowledge readily available. 
Field office technical guides, soil surveys, field investigation 
reports, and other resource data and reference materials developed by 
NRCS and other agencies should be used and cited. It is not intended 
that special surveys or investigations be conducted to acquire 
additional information for use in preparing comments.
    (c) The NRCS reviewer should consider the following kinds of 
concerns--(1) The suitability or limitations of the soils for the 
proposed action. Would an alternative route, location, or layout 
minimize land use problems and adverse environmental impacts?
    (2) Provisions for control of erosion and management of water during 
construction. Are there resources downstream that would be affected by 
sediment from the construction area, and does the statement provide for 
adequate control measures? Will lack of erosion control cause air 
pollution? Is the

[[Page 538]]

stockpiling of topsoil for future use considered in the EIS?
    (3) Provisions for soil and water conservation managment measures on 
project lands, rights-of-way, access roads, and borrow areas. Does the 
statement indicate that enduring soil and water practices are to be 
installed and maintained?
    (4) The effect of water discharges from project lands or rights-of-
way onto other properties. Will discharges cause erosion or flooding on 
other lands? Will discharges affect water quality?
    (5) The effects of disruption of the natural drainage patterns and 
severance of private land units. Does the statement indicate that 
natural drainage patterns will be maintained? Will bridges, culverts, 
and other water control structures be located to ensure that adjacent 
lands are not flooded or otherwise restricted in use? Does the EIS 
describe the effects of severance on private land ownerships?
    (6) The impact on existing soil and water conservation management 
systems. To what extent will conservation systems be altered, severed, 
or suffer blocked outlets? Will land use or cover be affected?
    (7) Impacts on prime and unique farmland. Would an alternative 
location or route require less prime farmland? Does the EIS consider 
secondary effects on prime farmland? What benefits are foregone if prime 
farmland is taken?
    (8) Impacts on ecosystems. Does the EIS describe impacts on major 
plant communities, and terrestrial and aquatic ecosystems?
    (9) Impacts on NRCS-assisted projects. Does the statement reflect 
the effect of the proposed action on present or planned NRCS assisted 
projects?
    (d) EIS's referred to NRCS for departmental comments. EIS's referred 
by the USDA Coordinator for Environmental Quality Activities to the NRCS 
national office may designate NRCS as the lead agency for preparing 
comments for USDA. In this case, the NRCS national office determines 
whether inputs from STC's and other USDA agencies are needed. If so, 
STC's and other USDA agencies are requested to forward comments to the 
Environmental Services Division fo use in preparing the USDA response.
    (e) EIS's referred to NRCS for agency comments. EIS's received by 
the NRCS national office are screeened by the Director, Environmental 
Services Division to determine which office within NRCS will prepare 
comments. If the proposed action is within one State, the draft EIS will 
be forwarded to the appropriate STC and he will reply directly to the 
agency requesting the comments. If the proposed action involves more 
than one State, one STC will be designated to forward NRCS comments 
directly to the agency requesting the comments. In some cases, the 
action may be national or regional in scope, and require inputs from 
several offices within NRCS. In this instance, comments will be 
assembled in the Environmental Services Division for preparation of a 
response to the agency requesting comments. A copy of each response 
prepared by a STC should be sent to the Director, Environmental Services 
Division.
    (f) EIS's sent to NRCS offices other than the national office. If a 
STC receives an EIS from another agency, he is to respond to the 
initiating agency. A copy of his comments should be sent to the 
Director, Environmental Services Division.
    (1) EIS's addressed to NRCS area or field offices. If an EIS is 
received by a field or area office of NRCS, the STC will coordinate the 
response.
    (2) EIS's submitted to conservation districts. NRCS may furnish 
needed soil, water, and related resource information to the district for 
their use in preparing comments.
    (g) Distribution of NRCS comments on other agencies' draft EIS's. 
Five copies of review comments made by NRCS on draft EIS's prepared by 
other Federal agencies are to be sent to CEQ.
    (h) Third party requests for a copy of NRCS comments on another 
agency's EIS will be filled after NRCS has forwarded copies of its 
letter of comments to CEQ.

[42 FR 40118, Aug. 8, 1977]

[[Page 539]]



Sec. 650.21   Working relations with the U.S. Environmental Protection Agency (EPA) and related state environmental agencies.

    (a) Background. The authorities and missions of NRCS, EPA, and state 
environmental agencies make it imperative that an effective cooperative 
and coordinative working relationship be developed and maintained in 
areas of mutual concern. These common areas include air quality, water 
quality, pesticides, waste recycling and disposal, environmental 
considerations in land use, Environmental Impact Statements (EIS's) and 
environmental considerations in the conservation and development of 
natural resources.
    (b) Policy. NRCS will work closely with EPA in accordance with the 
provisions of the EPA-USDA Memorandum of Understanding July 31, 1974, at 
all administrative levels and with related state agencies to meet 
statutory requirements and to achieve harmonious implementation of all 
actions of mutual concern directed to improving or maintaining the 
quality of the environment.
    (c) Responsibility--(1) NRCS national office. The Deputy 
Administrator for Field Services is responsible for overall coordination 
with EPA at the national office level. The Deputy Administrator for 
Water Resources is responsible for contacts with EPA in relation to 
activities of the Water Resources Council on water and related land 
resource planning and for coordinating work with EPA on EIS development.
    (2) Technical service center. The TSC director is responsible for 
contacts and coordination with EPA regional offices within the group of 
states served by the TSC.
    (3) NRCS state office. The state conservationist is responsible for 
contacts and coordination with regional representatives of EPA and state 
environmental agencies in matters of mutual concern within his state.
    (d) Coordination and implementation. (1) The NRCS national office 
will:
    (i) Within the framework of USDA agreements and guidelines, develop 
agreements for undertaking specific activities or projects of national 
significance and mutual advantage.
    (ii) Assist EPA as requested in developing EPA policy, guidelines, 
and standards.
    (iii) Consider EPA needs in soil survey and land, inventory, and 
monitoring activities.
    (iv) Maintain needed liaison and develop mutual guidelines with EPA 
on water resources work and in coordinating EIS's.
    (v) Advise EPA regarding soils, plant materials, and soil and water 
conservation techniques.
    (vi) Establish procedures for periodic review of NRCS national 
standards for treatment systems and practices for agricultural pollution 
abatement, including wind and water erosion and sediment control, 
transport of pesticides, organic matter and fertilizers, and burning of 
residues or clearing debris.
    (2) The TSC director will:
    (i) Within the framework of NRCS memorandums and guidelines 
coordinate with the EPA regional administrator(s) the development of 
needed agreements for undertaking specific activities or projects of 
multistate significance and mutual advantage.
    (3) The state conservationist will:
    (i) Obtain early input of EPA and interested state and local 
environmental agencies in the planning process for projects or measures 
within the state impacting on the environment.
    (ii) Coordinate preparations of NRCS practice standards and 
procedures for agricultural pollution abatement within the state with 
EPA and related state agencies.
    (iii) Encourage the development of a coordinated review and approval 
process within the state with EPA and appropriate state and local 
agencies including conservation districts for actions of mutual concern.
    (iv) Attempt to resolve all EPA areas of concern on NRCS assisted 
project-type actions within the state before a final EIS is prepared.



Sec. 650.22   Rare, threatened, and endangered species of plants and animals.

    (a) Background. (1) A variety of plant and animal species of the 
United States are so reduced in numbers that they are threatened with 
extinction. The disappearance of any of these would be

[[Page 540]]

a biological, cultural, and in some instances an economic loss. Their 
existence contributes to scientific knowledge and understanding, and 
their presence adds interest and variety to life.
    (2) The principal hazard to threatened and endangered species is the 
destruction or deterioration of their habitats by human activities such 
as industrialization, urbanization, agriculture, lumbering, recreation, 
and transportation. These activities of man will continue but the 
necessity of recognizing their adverse impacts and selecting 
alternatives that minimize or eliminate such impacts on threatened and 
endangered species is imperative.
    (3) The Endangered Species Act of 1973 (Pub. L. 93-205, 87 Stat. 884 
(16 U.S.C. 1531 et seq.)) provides a means whereby the ecosystems upon 
which endangered and threatened species depend may be maintained and a 
program for the conservation of such species. The Act also provides 
that, in addition to the Department of the Interior, ``All other federal 
departments and agencies shall, in consultation with and with the 
assistance of the Secretary (of Interior), utilize their authorities for 
the conservation of endangered species and threatened species listed 
pursuant to section 4 of this Act and by taking such action necessary to 
insure that actions authorized, funded, or carried out by them do not 
jeopardize the continued existence of such endangered species and 
threatened species or result in the destruction or modification of 
habitat of such species which is determined by the Secretary, after 
consultation as appropriate with the affected states, to be critical.'' 
The Act also:
    (i) Defines endangered species as any species in danger of 
extinction throughout all or a significant portion of its range and 
threatened species as any species likely to become an endangered species 
within the foreseeable future throughout all or a significant portion of 
its range. The Act uses the category ``threatened.'' The term ``rare'' 
is not used.
    (ii) Further defines species as including any subspecies of fish or 
wildlife or plants and any other group of fish and wildlife of the same 
species or smaller taxa in common spatial arrangements that interbreed 
when mature.
    (iii) Provides for the Secretary of the Interior to enter into 
cooperative agreements with states for the purpose of implementing state 
programs for the conservation of endangered and threatened fish and 
wildlife. This assistance may include financial grants.
    (iv) Provides national lists of endangered and threatened animal and 
plant species to be maintained by the Secretary of the Interior and 
published in the Federal Register. When resident fish and wildlife are 
added to the list, the affected states are to be consulted by the 
Secretary. The Secretary of the Smithsonian Institution is preparing a 
list of endangered or threatened plant species.
    (b) Policy. The Act gives NRCS additional direction for 
participation in the conservation and protection of endangered and 
threatened species. As the principal federal agency concerned with land 
use planning of privately owned rural land and with professional 
conservation employees headquartered in almost every county, NRCS is 
uniquely capable of playing a vital role. Additional training will be 
provided as needed to meet NRCS responsibilities. NRCS will assist in 
the conservation of threatened and endangered species and consistent 
with legal requirements avoid or prevent activities detrimental to such 
species. NRCS concern for these species will not be limited to those 
listed by the Secretary of the Interior and published in the Federal 
Register, but will include species designated by state agencies as rare, 
threatened, endangered, etc.
    (c) Responsibility--(1) NRCS national office. The Administrator will 
arrange for consultation and coordination of NRCS national office 
activities with the U.S. Fish and Wildlife Service, other federal 
agencies, and national organizations.
    (2) Technical service center. The TSC director will, within the 
group of states served by the TSC arrange for consultation and 
coordination with regional representatives of the U.S. Fish and Wildlife 
Service, other Federal agencies, and national and regional 
organizations.
    (3) NRCS state office. The state conservationist will arrange for 
consultation and coordination with the state

[[Page 541]]

fish and game or conservation agency, other state agencies, state 
organizations and foundations, conservation districts, and state 
representatives of federal agencies and national organizations.
    (d) Coordination and implementation. (1) The NRCS national office 
will:
    (i) Within the framework of national legislation, USDA agreements, 
and NRCS objectives, develop NRCS policies and directives for guiding 
agency efforts that will protect threatened and endangered species and 
for avoiding actions that jeopardize the continued existence of such 
species and their critical habitats.
    (ii) Maintain needed liaison and develop mutual understanding with 
the U.S. Fish and Wildlife Service and other concerned federal agencies.
    (iii) Establish procedures for periodic review of NRCS participation 
in the national effort to conserve these species.
    (2) The TSC director will: (i) Within the framework of NRCS policies 
and guidelines, arrange for needed liaison and understanding with 
regional counterparts of other federal agencies within the group of 
states served by the TSC and keep state conservationists informed of 
developments within such states.
    (ii) Provide guidance and assistance to state conservationists in 
carrying out NRCS policies and guidelines.
    (3) The state conservationist will develop procedures to establish 
working relationships with other concerned federal agencies, state fish 
and wildlife or conservation agencies, conservation districts, concerned 
scientists in state university systems and natural history museums, and 
other informed persons and organizations to offer assistance in:
    (i) Preparing or maintaining lists of the state's threatened and 
endangered species.
    (ii) Determining the geographic occurrence of endangered and 
threatened species, the nature of their habitat, and that portion of the 
habitat that is critical to the survival, maintenance, or increase of 
these species.
    (iii) Discussing the kinds of measures important to preserve their 
habitat.
    (iv) A monitoring program that would obtain advanced warning of 
actions or conditions that could further endanger these species, thereby 
enabling NRCS and others to take appropriate protective action.
    (v) Assisting recovery teams, as appropriate, in preparing species 
recovery plans of those endangered and threatened species included in 
Federal lists.
    (4) The state conservationist will also:
    (i) Keep NRCS area and field offices informed of species listed as 
being threatened or endangered, geographic area in which they are found, 
and information such as their numbers, preferred habitat, and critical 
factors.
    (ii) Review the status of threatened and endangered species each 
December and send a report of the review to the Administrator.
    (5) NRCS district conservationists within the geographic range of 
threatened and endangered species will examine conservation district 
programs and NRCS operations to evaluate their effects on these species, 
and recommend to district officials and the state conservationist any 
action needed for their protection.
    (6) NRCS field employees within the geographic range of threatened 
and endangered species will be continually alert to conditions, actions, 
or trends that may adversely affect the welfare of these species and 
report adverse situations to the state conservationist.



Sec. 650.23   Natural areas.

    (a) Background. (1) Natural areas are defined as land or water units 
where natural conditions are maintained insofar as possible. Natural 
conditions usually result from allowing ordinary physical and biological 
processes to operate with a minimum of human intervention. Manipulations 
may be required on natural areas to maintain or restore features that 
the areas were established to protect.
    (2) Natural areas may be designated areas of Federal, non-Federal 
government, or privately controlled land. Designation may be formal as 
provided for under federal regulations for areas of federal land to be 
administered as

[[Page 542]]

natural areas or by foundations or conservation organizations 
specifically created to acquire and maintain natural areas. Designation 
may be informal in the case of private landowners who designate a 
specific area as a natural area and manage it accordingly. Several 
professional societies concerned with renewable natural resources 
encourage establishment of natural areas withdrawn from economic uses 
and recognition of natural areas maintained and managed in economic 
enterprises.
    (3) Natural areas are established and maintained for a variety of 
purposes including:
    (i) Furthering science and education. Natural areas provide sites 
for research and outdoor classrooms for study of plant and animal 
communities in environments with particular ecological conditions.
    (ii) Monitoring the surrounding environment. Natural areas serve as 
gauges against which to evaluate changes in land use, vegetation, animal 
life, air quality, or other environmental values.
    (iii) Providing recreation attractions. Natural areas are valued by 
many people for their scenic, wild, and undisturbed character but must 
be protected, as needed, to prevent disturbance or alteration of the 
resources.
    (iv) Preserving unique values. Natural areas may be established to 
protect scenic, biologic, geologic, or paleontologic features.
    (v) Serving as a genetic base for native plants and animals. Natural 
areas may be established to preserve examples of land and water 
ecosystems with their full range of genetic diversity of native plants 
and animals including threatened and endangered species.
    (b) Policy. NRCS will recognize natural areas, if so dedicated, as a 
land use, and will support the designation of appropriate natural areas.
    (c) Responsibility--(1) NRCS national office. The Administrator will 
designate a member of the national office staff to act as NRCS 
representative on the Federal Committee for Ecological Preserves and to 
provide appropriate liaison with other federal agencies and non-Federal 
groups concerned with natural areas.
    (2) Technical service center. The TSC director will designate a TSC 
plant sciences discipline leader to provide leadership, appropriate 
liaison, and assistance on natural areas to NRCS state offices.
    (3) NRCS state office. The state conservationist will designate an 
appropriate NRCS representative to work with other agencies and groups, 
and will coordinate assistance on natural areas needed by area and field 
offices.
    (d) Coordination and implementation. (1) NRCS technical assistance 
will be furnished to representatives of administering agencies, 
foundations, groups, and individuals when requested through conservation 
districts. Conservation district officers will be encouraged to 
recognize appropriate natural areas concepts and programs and to 
participate in them.
    (2) NRCS employees will report to state conservationists abuses and 
potential or actual damages to natural areas that may be found in the 
course of ordinary business.
    (3) NRCS will cooperate with professional societies, groups, and 
individuals in locating areas suitable for and needed as natural areas.
    (4) NRCS employees providing technical assistance to land users must 
inform them about the impact their decisions may have on adjacent or 
nearby natural areas. Land users will be encouraged to consult with 
concerned agencies, societies, and individuals to arrive at mutually 
satisfactory land use and treatment.
    (5) Recommended classification systems for characterizing areas 
designated as ecological preserves or as natural areas are contained in 
the following publications:

Soil Taxonomy, a Basic System of Soil Classification for Making and 
Interpreting Soil Surveys, USDA-NRCS Agricultural Handbook 436.
Forest Cover Types of North America Exclusive of Mexico, Report of the 
Committee on Forest Cover Types, Society of American Foresters, 1964.
Potential Natural Vegetation of Conterminous United States. A. W. 
Kuchler, American Geographical Society Special Publication 36, 1964.
Wetlands classification described by the U.S. Fish and Wildlife Service 
in its Circular 39.

NRCS will, to the extent feasible, use these classification systems when 
providing technical assistance on public

[[Page 543]]

and private natural areas and ecological preserves.
    (6) The NRCS published National List of Scientific Plant Names will 
be used when scientific names or name symbols are needed for automatic 
data processing.



Sec. 650.24   Scenic beauty (visual resource).

    (a) Background. Contributions to scenic beauty are a normal product 
of NRCS work. Strip-cropping, field borders, field windbreaks, and ponds 
are examples. Emphasis is given to those soil and water conservation 
measures that contribute to a productive and efficient agriculture and 
increase the attractiveness of rural America and are in line with goals 
and objectives of conservation districts. This is best accomplished by 
considering the landscape visual resource when providing planning 
assistance to individual landowners, groups, units of government, and 
watershed and resource conservation development project sponsors. NRCS 
responsibilities in recreation also offer opportunities to develop the 
scenic beauty of the rural landscape. Department of Agriculture 
Secretary's Memorandum 1695, May 28, 1970, ``Protecting and Improving 
The Quality of the Environment,'' includes scenic beauty as an objective 
of the Department's programs.
    (b) Policy. NRCS will: (1) Provide technical assistance with full 
consideration of alternative management and development systems that 
preserve scenic beauty or improve the visual resource; (2) emphasize the 
application of conservation practices having scenic beauty or visual 
resource values particularly in waste management systems; field borders, 
field windbreaks, wetland management, access roads, critical area 
treatment; design and management of ponds, stream margins, odd areas, 
and farmsteads; siting or positioning of structures and buildings to be 
in harmony with the landscape while reducing the potential for erosion; 
using native and other adaptable plants for conservation which enhance 
scenic beauty and create variety while linking beauty with utility; (3) 
promote personal pride in landowners in the installation, maintenance, 
and appearance of conservation practices and their properties; (4) 
select suitable areas for waste products and use of screens to hide 
``eyesore'' areas, and (5) encourage conservation districts to include 
practices which promote scenic beauty in their annual and long-range 
programs.
    (c) Responsibility. The Natural Resources Conservation Service will 
provide technical assistance through conservation districts to 
landowners, operators, communities, and state and local governments in 
developing programs relating to scenic beauty.
    (1) NRCS national office. The Administrator will:
    (i) Assign appropriate NRCS national office leadership to insure 
that enhancement of scenic beauty is included in national information, 
policy, guidelines, standards, guides to specifications for conservation 
practices without impairing basic soil and water conservation functions.
    (ii) Emphasize in plant material center management and in plant 
materials functions that locating and evaluating plants for forage, 
erosion control, and recreation or wildlife uses be carried out with 
full attention to visual resource value.
    (2) NRCS state office. The state conservationist will:
    (i) Assign appropriate staff member(s) to provide leadership in 
carrying out scenic beauty policy and procedure within the state.
    (ii) Develop and keep current a landscape management plan to improve 
and maintain the appearance of all real properties under NRCS control, 
and provide appropriate assistance to owners and managers of properties 
leased or rented by NRCS.
    (iii) Give emphasis to preserving scenic beauty and contributing to 
the visual resource in the NRCS information program whenever 
opportunities exist.
    (d) Coordination and implementation. (1) The governing body of each 
conservation district will be encouraged to revise or update its 
district program to appropriately provide for beautification of the 
countryside through applicable land use changes and effective soil and 
water conservation treatment.

[[Page 544]]

    (2) In providing assistance to watershed and resource conservation 
and development project sponsors and other resource planning groups for 
soil, water, and related resources, emphasis will be given to measures 
that preserve natural beauty or contribute to the quality of the visual 
resource.
    (3) Local organizations and groups interested in scenic beauty will 
be contacted and consulted for cooperation in and coordination with NRCS 
and conservation district efforts.



Sec. 650.25  Flood-plain management.

    Through proper planning, flood plains can be managed to reduce the 
threat to human life, health, and property in ways that are 
environmentally sensitive. Most flood plains are valuable for 
maintaining agricultural and forest products for food and fiber, fish 
and wildlife habitat, temporary floodwater storage, park and recreation 
areas, and for maintaining and improving environmental values. NRCS 
technical and financial assistance is provided to land users primarily 
on non-Federal land through local conservation districts and other State 
and local agencies. Through its programs, NRCS encourages sound flood-
plain management decisions by land users.
    (a) Policy--(1) General. NRCS provides leadership and takes action, 
where practicable, to conserve, preserve, and restore existing natural 
and beneficial values in base (100-year) flood plains as part of 
technical and financial assistance in the programs it administers. In 
addition, 500-year flood plains are taken into account where there are 
``critical actions'' such as schools, hospitals, nursing homes, 
utilities, and facilities producing or storing volatile, toxic, or 
water-reactive materials.
    (2) Technical assistance. NRCS provides leadership, through 
consultation and advice to conservation districts and land users, in the 
wise use, conservation, and preservation of all land, including flood 
plains. Handbooks, manuals, and internal memoranda set forth specific 
planning criteria for addressing flood-plain management in NRCS-assisted 
programs. The general procedures and guidelines in this part comply with 
Executive Order (E.O.) 11988, Floodplain Management, dated May 24, 1977, 
and are consistent with the Water Resources Council's Unified National 
Program for Floodplain Management.
    (3) Compatible land uses. The NRCS Administrator has determined that 
providing technical and financial assistance for the following land uses 
is compatible with E.O. 11988:
    (i) Agricultural flood plains that have been used for producing 
food, feed, forage, fiber, or oilseed for at least 3 of the 5 years 
before the request for assistance; and
    (ii) Agricultural production in accordance with official State or 
designated area water-quality plans.
    (4) Nonproject technical and financial assistance programs. The NRCS 
Administrator has determined that NRCS may not provide technical and 
financial assistance to land users if the results of such assisted 
actions are likely to have significant adverse effects on existing 
natural and beneficial values in the base flood plain and if NRCS 
determines that there are practicable alternatives outside the base 
flood plain. NRCS will make a case-by-case decision on whether to limit 
assistance whenever a land user proposes converting existing 
agricultural land to a significantly more intensive agricultural use 
that could have significant adverse effects on the natural and 
beneficial values or increase flood risk in the base flood plain. NRCS 
will carefully evaluate the potential extent of the adverse effects and 
any increased flood risk.
    (5) Project technical and financial assistance programs. In planning 
and installing land and water resource conservation projects, NRCS will 
avoid to the extent possible the long and short-term adverse effects of 
the occupancy and modification of base flood plains. In addition, NRCS 
also will avoid direct or indirect support of development in the base 
flood plain wherever there is a practicable alternative. As such, the 
environmental evaluation required for each project action (Sec. 650.5 of 
this part) will include alternatives to avoid adverse effects and 
incompatible development in base flood plains. Public participation in 
planning is described in Sec. 650.6 of this part and will comply with 
section 2(a)(4) of E.O. 11988. Flood-

[[Page 545]]

plain management requires the integration of these concerns into NRCS's 
National Environmental Policy Act (NEPA) process for project assistance 
programs as described in Section 650 of this part.
    (6) Real property and facilities under NRCS ownership or control. 
NRCS owns or controls about 30 properties that are used primarily for 
the evaluation and development of plant materials for erosion control 
and fish and wildlife habitat plantings (7 CFR Part 613, Plant Materials 
Centers, 16 U.S.C. 590 a-e, f, and 7 U.S.C. 1010-1011). If NRCS real 
properties or facilities are located in the base flood plain, NRCS will 
require an environmental evaluation when new structures and facilities 
or major modifications are proposed. If it is determined that the only 
practicable alternative for siting the proposed action may adversely 
affect the base flood plain, NRCS will design or modify its action to 
minimize potential harm to or within the flood plain and will prepare 
and circulate a notice explaining why the action is proposed to be 
located in the base flood plain. Department of Housing and Urban 
Development (HUD) flood insurance maps, other available maps, 
information, or an onsite analysis will be used to determine whether the 
proposed NRCS action is in the base flood plain. Public participation in 
the action will be the same as described in Sec. 650.6 of this part.
    (b) Responsibility. NRCS provides technical and financial assistance 
to land users primarily through conservation districts, special purpose 
districts, and other State or local subdivisions of State government. 
Acceptance of this assistance is voluntary on the part of the land user. 
NRCS does not have authority to make land use decisions on non-Federal 
land. NRCS provides the land user with technical flood hazard data and 
information on flood-plain natural values. NRCS informs the land user 
how alternative land use decisions may affect the aquatic and terrestial 
ecosystems, human safety, property, and public welfare. Alternatives to 
flood-plain occupancy, modification, and development are discussed 
onsite with the land user by NRCS.
    (1) NRCS National Office. (Sec. 600.2 of this part). The NRCS 
Administrator, state conservationist, and district conservationist are 
the responsible Federal officials in NRCS for implementing the policies 
expressed in these rules. Any deviation from these rules must be 
approved by the Administrator. The Deputy Administrator for Programs has 
authority to oversee the application of policy in NRCS programs. 
Oversight assistance to state conservationists for flood-plain 
management will be provided by the NRCS technical service centers 
(Sec. 600.3 of this part).
    (2) NRCS state offices. (Sec. 600.4 of this part). Each state 
conservationist is the responsible Federal official in all NRCS-assisted 
programs administered within the State. He or she is also responsible 
for administering the plant materials centers within the State. The 
state conservationist will assign a staff person who has basic knowledge 
of landforms, soils, water, and related plant and animal ecosystems to 
provide technical oversight to ensure that assistance to land users and 
project sponsors on the wise use, conservation, and preservation of 
flood plains is compatible with national policy. For NRCS-assisted 
project actions, the staff person assigned by the state conservationist 
will consult with the local jurisdictions, sponsoring local 
organizations, and land users, on the basis of an environmental 
evaluation, to determine what constitutes significant adverse effects or 
incompatible development in the base flood plain. The state 
conservationist is to prepare and circulate a written notice for NRCS-
assisted actions for which the only practicable alternative requires 
siting in a base flood plain and may result in adverse effects or 
incompatible development. The NRCS NEPA process will be used to 
integrate flood-plain management into project planning and consultations 
on land use decisions by land users and project sponsors.
    (3) NRCS field offices. The district conservationist (Sec. 600.6 of 
this part) is delegated the responsibility for providing technical 
assistance and approving financial assistance to land users in 
nonproject actions, where applicable, and for deciding what constitutes 
an

[[Page 546]]

adverse effect or incompatible development of a base flood plain. This 
assistance will be based on official NRCS policy, rules, guidelines, and 
procedures in NRCS handbooks, manuals, memoranda, etc. For NRCS-assisted 
nonproject actions, the district conservationist, on the basis of the 
environmental evaluation, will advise recipients of technical and 
financial assistance about what constitutes a significant adverse effect 
or incompatible development in the base flood plain.
    (c) Coordination and implementation. All planning by NRCS staffs is 
interdisciplinary and encompasses the six NEPA policy statements, the 
WRC Principles and Standards, and an equivalent of the eight-step 
decisionmaking process in the WRC's February 1978 Floodplain Management 
Guidelines. NRCS internal handbooks, manuals, and memoranda provide 
detailed information and guidance for NRCS planning and environmental 
evaluation.
    (1) Steps for nonproject technical and financial assistance 
programs. (i) NRCS assistance programs are voluntary and are carried out 
through local conservation districts (State entities) primarily on non-
Federal, privately owned lands.
    (ii) After the land user decides the type, extent, and location of 
the intended action for which assistance is sought, the district 
conservationist will determine if the intended action is in the base 
flood plain by using HUD flood insurance maps, and other available maps 
and information or by making an onsite determination of the approximate 
level of the 100-year flood if maps or other usable information are 
lacking.
    (iii) If the district conservationist determines that the land 
user's proposed location is outside the base flood plain, and would not 
cause potential harm within the base flood plain, NRCS will continue to 
provide assistance, as needed.
    (iv) If the district conservationist determines that the land user's 
proposed action is within the base flood plain and would likely result 
in adverse effects, incompatible development, or an increased flood 
hazard, it is the responsibility of the district conservationist to 
determine and point out to the land user alternative methods of 
achieving the objective, as well as alternative locations outside the 
base flood plain. If the alternative locations are determined to be 
impractical, the district conservationist will decide whether to 
continue providing assistance. If the decision is to terminate 
assistance for the proposed action, the land user and the local 
conservation district, if one exists, will be notified in writing about 
the decision.
    (v) If the district conservationist decides to continue providing 
technical and financial assistance for a proposed action in the base 
flood plain, which is the only practicable alternative, NRCS may require 
that the proposed action be designed or modified so as to minimize 
potential harm to or within the flood plain. The district 
conservationist will prepare and circulate locally a written notice 
explaining why the action is proposed to be located in the base flood 
plain.
    (2) Steps for project assistance programs. (i) NRCS project 
assistance to local sponsoring organizations (conservation districts and 
other legal entities of State government) and land users is carried out 
primarily on non-Federal land in response to requests for assistance. 
NRCS helps the local sponsoring organizations prepare a plan for 
implementing the needed resource measures.
    (ii) NRCS uses an interdisciplinary environmental evaluation 
(Sec. 650.6 of this part) as a basis for providing recommendations and 
alternatives to project sponsors. Flood-plain management is an integral 
part of every NRCS environmental evaluation. NRCS delineates the base 
flood plain by using detailed HUD flood insurance maps and other 
available data, as appropriate, and provides recommendations to sponsors 
on alternatives to avoid adverse effects and incompatible development in 
base flood plains. NRCS will develop, as needed, detailed 100-year and 
500-year flood-plain maps where there are none.
    (iii) NRCS's NEPA process (part 650 of this chapter) is used to 
integrate the spirit and intent of E.O. 11988 Sections 2(a) and 2(c) 
into agency planning and recommendations for land and water

[[Page 547]]

use decisions by local sponsoring organizations and land users.
    (iv) NRCS will terminate assistance to a local sponsoring 
organization in project programs if it becomes apparent that decisions 
by land users and local jurisdictions concerning flood-plain management 
would likely result in adverse effects or incompatible development and 
the environmental evaluation reveals that there are practicable 
alternatives to the proposed project that would not cause adverse 
effects on the base flood plain.
    (v) In carrying out the planning and installation of land and water 
resource conservation projects, NRCS will avoid, to the extent possible, 
the long-term and short-term adverse effects associated with the 
occupancy and modification of base flood plains. In addition, NRCS will 
also avoid direct or indirect support of development in the base flood 
plain wherever there is a practicable alternative. Where appropriate, 
NRCS will require design modifications to minimize harm to or within the 
base flood plain. NRCS will provide appropriate public notice and public 
participation in the continuing planning process in accordance with NRCS 
NEPA process.
    (vi) NRCS may require the local government to adopt and enforce 
appropriate flood plain regulations as a condition to receiving project 
financial assistance.
    (3) Actions on property and facilities under NRCS ownership or 
control. For real property and facilities owned by or under the control 
of NRCS, the following actions will be taken:
    (i) Locate new structures, facilities, etc., outside the base flood 
plain if there is a practicable alternate site.
    (ii) Require public participation in decisions to construct 
structures, facilities, etc., in flood plains that might result in 
adverse effects and incompatible development in such areas if no 
practicable alternatives exist.
    (iii) New construction or rehabilitation will be in accordance with 
the standards and criteria of the National Flood Insurance Program and 
will include floodproofing and other flood protection measures as 
appropriate.

[44 FR 44462, July 30, 1979]



Sec. 650.26  Protection of wetlands.

    (a) Purpose. This rule prescribes procedures by which NRCS will 
implement the President's Executive order on Protection of Wetlands 
(E.O. 11990).
    (b) Applicability. This policy applies to NRCS technical and 
financial assistance that will result in new construction (which 
includes draining, dredging, channelizing, filling, diking, impounding, 
and related activities, and any structures or facilities) in wetland 
types 1 through 20 as described in Circular 39, published by the U.S. 
Department of the Interior, Fish and Wildlife Service, in 1956 and 
reprinted in 1971. This policy applies to all activities for which 
planning is initiated after these rules are issued. Planning activities 
initiated before that date will use rules in effect at that time. These 
rules do not apply to wetlands with the following conditions or in the 
following categories:
    (1) Lands that were artificially diked and flooded to produce, and 
have a cropping history of producing crops such as fish, crayfish, 
domestic rice, wild rice, or cranberries.
    (2) Projects or actions to reclaim rural abandoned mines (section 
406, Surface Mining Control and Reclamation Act of 1977) when the 
primary purpose of the action is to protect public health, safety and 
welfare, and when no practical alternative exists for mitigation of 
wetland habitat values lost.
    (3) Construction in wetland that is primarily for managing the area 
for wetland wildlife habitat.
    (4) Projects or actions that were under construction before May 24, 
1977.
    (5) Projects or actions for which all funds have been appropriated 
through fiscal year 1977.
    (6) Projects or programs for which a draft or final environmental 
impact statement was filed before October 1, 1977.
    (c) General policy. It is the policy of NRCS to aid in protecting, 
maintaining, managing, and restoring wetlands to ensure continued 
realization of their beneficial values while protecting the soil and 
water resource base for a viable economic agricultural enterprise. As a 
means of recognizing this balance between resource uses, NRCS uses an 
environmental evaluation (Sec. 650.5 of

[[Page 548]]

this part). This evaluation, initiated in the early stages of planning, 
includes identification and study of practicable alternatives to actions 
that may destroy or degrade wetlands as well as consideration of actions 
that may preserve and enhance natural beneficial values of wetlands. 
Factors considered in the environmental evaluation are:
    (1) Public health, safety, and welfare, including water supply, 
quality, recharge, and discharge; pollution; flood and storm hazards; 
and sedimentation and erosion;
    (2) Maintenance of natural systems, including conservation and long-
term productivity of existing flora and fauna, species and habitat 
diversity and stability, hydrological utility, and fish, wildlife, 
timber, and food and fiber resources; and
    (3) Other uses in the public interest, including recreation and 
scientific and cultural uses.
    (d) Specific policy. Within the above general policy and on the 
basis of an environmental evaluation, the following specific policy 
applies:
    (1) NRCS will not provide assistance for new construction in wetland 
types 3 through 20 except as outlined in Secs. 650.26(d)(4), 
650.26(d)(5), and 650.26(e).
    (2) A decision to provide NRCS assistance for new construction in 
wetland types 1 and 2 must be based on a documented environmental 
evaluation indicating that there is no practicable alternative to the 
proposed construction and that the proposed action includes all 
practicable measures to minimize harm to wetlands which may result from 
such action. A practicable alternative is one that can be carried out 
under all present constraints. The test of what is practicable varies in 
each situation, but includes consideration of the following factors:
    (i) Environmental--fish and wetland wildlife habitat, soil erosion, 
water quantity and quality, flooding, groundwater recharge, and 
recreation;
    (ii) Economics--cost effectiveness, including changes in farm 
operating cost attributed to labor, equipment, timeliness, and 
convenience of farm operation;
    (iii) Resource suitability--ability of soil, water, and related 
resources to support the intended use;
    (iv) Technology--availability of technology to reasonably accomplish 
the objectives;
    (v) Other pertinent factors.
    (3) Besides the lack of a practicable alternative, the decision to 
provide assistance for new construction in wetland types 1 and 2 must be 
based on a documented environmental evaluation which indicates:
    (i) The land has been cultivated to produce food, feed, fiber, and/
or oilseed for at least 3 of the 5 years before the request for 
assistance (cultivated is defined as any cropping system that depends on 
soil tillage, planting of seed, and appropriate care of the crop. Such 
cropping systems may consist of row crops and crop rotations that 
include hay and pasture seedings, even though such hay or pasture crops 
may be maintained in the crop rotation for 3 or more years without 
tillage. Native pastures, native prairie types, forestlands, and 
rangelands are not included); or
    (ii) All necessary local, State, and Federal permits have been 
obtained, or the land user has been assured by appropriate agencies that 
a permit is not needed; and where:
    (A) Environmental factors such as topography, soils, and climate, 
when evaluated in light of the proposed action, demonstrate the need to 
install a conservation system that will minimize future adverse effects 
on the soil resource base or offsite receiving waters; and
    (B) The land user agrees, in those instances where he enters into a 
contract with USDA, to implement and maintain a comprehensive soil and 
water conservation plan that includes essential treatment to minimize 
adverse consequences to the soil resource base and offsite receiving 
waters, to provide management of wildlife habitat compatible with the 
new or existing land use, and to preserve or improve wetland types 3 
through 20. Where contracts with the land user do not exist, NRCS will 
actively work with the land user to implement and maintain a voluntary 
conservation plan.
    (4) In wetland types 1 through 20, assistance may be provided in 
making minor alterations if the environmental evaluation demonstrates 
that the net result of alteration and accompanying

[[Page 549]]

management of the area will provide wetland habitat values equal to or 
greater than those present before the alteration.
    (5) If wetland types 1 through 20 would be drained or otherwise 
altered because of structural measures designed for other purposes, land 
users and project sponsors will be advised of alternatives that will 
avoid or mitigate the incidental loss of these wetlands. Alternative 
treatments and/or mitigation measures, insofar as practicable, will 
ensure that wetland habitat values obtained are equivalent to those 
lost. NRCS will provide assistance only if one of the alternatives is 
selected for installation or adequate mitigation is agreed to. 
Provisions are to be made for managing these established wetlands to 
ensure that wetland habitat values obtained remain equal to or greater 
than those lost, insofar as practicable. Persons, organizations, or 
agencies other than the land user or project sponsors may assume these 
management responsibilities.
    (6) NRCS will encourage land users and project sponsors to consider 
and use programs of other Federal, State, and local agencies and private 
organizations that may help to preserve wetlands.
    (7) Besides complying with this rule and Executive Order 11990, in 
Minnesota, North Dakota, and South Dakota, NRCS will follow the 
provisions of Section 16A of the Soil Conservation and Domestic 
Allotment Act; Pub. L. 87-732, 16 U.S.C. 590 P-1, October 2, 1962.
    (e) Exceptions. (1) State conservationists may grant written 
exceptions to these rules only:
    (i) On a farm-by-farm basis for installing irrigation water 
management, water conservation, water quality, or erosion control 
systems, or where small, low-value wetlands occur as inclusions within 
cropland, hayland, or pastureland fields; or
    (ii) For drainage or flood control measures in small rural 
communities where the purpose of the action is solely for protection of 
public health and safety.
    (2) Upon application from a state conservationist, the NRCS Chief 
may grant a written exception to this rule taking into account economic, 
environmental, and other pertinent factors in such proposed actions.
    (3) The above exceptions shall be based on a documented finding 
that:
    (i) There is no practicable alternative to the proposed activity, 
and
    (ii) The proposed action includes all practicable measures to 
minimize any resulting loss to wetlands.
    (f) Public review. NRCS will provide an opportunity for early public 
review of any project plans or proposals for new construction in 
wetlands, as described in Sec. 650.9(d) of this part.

(7 CFR 2.62: E.O. 11990)

[47 FR 34114, Aug. 6, 1982]



PARTS 651-652  [RESERVED]






PART 653--TECHNICAL STANDARDS--Table of Contents




Sec.
653.1  General.
653.2  Technical standards and criteria.
653.3  Adaptation of technical standards.
653.4  Availability of technical standards.

    Authority: 7 CFR 2.62.

    Source: 43 FR 58079, Dec. 12, 1978, unless otherwise noted.



Sec. 653.1  General.

    The Natural Resources Conservation Service (NRCS) is responsible for 
the technical adequacy of conservation practices installed under all 
NRCS programs, and those practices applied under programs administered 
by the Agricultural Stabilization and Conservation Service (ASCS) where 
NRCS has the technical responsibility. NRCS technical or financial 
assistance will be provided when the practices are applied according to 
established technical standards.



Sec. 653.2  Technical standards and criteria.

    Technical standards and criteria have been established for all 
conservation practices. They provide the guidance and direction needed 
to assure that the practices meet the intended purpose and are of the 
quality needed to assure lasting for the design life. Standards and 
criteria are developed in

[[Page 550]]

consultation with universities, research institutions, and individual 
industrial and private firms and individuals. Research information and 
practical experience are used in setting standards. Changes and new 
technical standards and criteria are prepared in the same manner as set 
out above.



Sec. 653.3  Adaptation of technical standards.

    Technical standards and criteria developed on a national basis may 
require special adaptation to meet local needs. These adaptations must 
be approved by the Administrator of the Natural Resources Conservation 
Service or his designee.



Sec. 653.4  Availability of technical standards.

    Information on technical standards used by NRCS is available at 
field, area, or State offices of NRCS.



PART 654--OPERATION AND MAINTENANCE--Table of Contents




                           Subpart A--General

Sec.
654.1  Purpose and scope.
654.2  Definitions.

            Subpart B--Federal Financially-Assisted Projects

654.10  Operation and maintenance agreement.
654.11  Sponsor(s)' responsibility.
654.12  Financing operations and maintenance.
654.13  Designating responsibility for operation and maintenance.
654.14  Duration of sponsor(s)' responsibility.
654.15  Operation and maintenance.
654.16  Property management.
654.17  Inspection.
654.18  Natural Resources Conservation Service responsibility.
654.19  Plan of operation and maintenance.
654.20  Violations of operation and maintenance agreement.

                   Subpart C--Conservation Operations

654.30  Responsibility for operation and maintenance.
654.31  Performing operation and maintenance.

                Subpart D--Emergency Watershed Protection

654.40  Responsibility for operation and maintenance.
654.41  Performance of operation and maintenance.

              Subpart E--Great Plains Conservation Program

654.50  Responsibility for operation and maintenance.

    Authority: Pub. L. 83-566, 68 Stat. 666, as amended (16 U.S.C. 1001-
1008). Sec. 1, Pub. L. 86-468, 74 Stat. 131, as amended (16 U.S.C. 
1006a); sec. 2, Pub. L. 78-534, 58 Stat. 889 (33 U.S.C. 701a-1); sec. 
13, Pub. L. 78-534, 58 Stat. 905; sec. 5, Pub. L. 93-251, 88 Stat. 15; 
Pub. L. 87-703, 76 Stat. 607 (7 U.S.C. 1010-1011); Pub. L. 74-46, 49 
Stat. 163 (16 U.S.C. 590a-f, q); Pub. L. 84-1021, 70 Stat. 1115, as 
amended (16 U.S.C. 590p(b)); sec. 216, Pub. L. 81-516, 64 Stat. 184 (33 
U.S.C. 701b-1); 7 CFR 2.62.

    Source: 42 FR 58159, Nov. 8, 1977, unless otherwise noted.



                           Subpart A--General



Sec. 654.1  Purpose and scope.

    (a) This part sets forth the operation and maintenance requirements 
pertaining to measures installed with Natural Resources Conservation 
Service (NRCS) assistance. This includes measures installed under the 
following programs:
    (1) Federal financially-assisted projects.
    (i) Watershed Protection and Flood Prevention (WP&FP). See part 622 
of this title.
    (ii) Flood Prevention (FP). See part 623 of this title.
    (iii) Specifically authorized projects.
    (iv) Resource Conservation and Development (RC&D).
    (2) Conservation Operations (CO).
    (3) Emergency Watershed Protection (EWP). See part 624 of this 
title.
    (4) Great Plains Conservation Program (GP). See part 631 of this 
title.
    (b) These regulations shall apply to all Federal financially-
assisted projects as set forth in subpart B for the duration of their 
respective operation and maintenance agreements. However, this does not 
relieve the sponsor(s) of any liability which may continue beyond the 
evaluated life of the measure under Federal, State, and

[[Page 551]]

local laws. Operation and maintenance agreements in effect prior to the 
effective date of these regulations are not affected by these 
regulations.



Sec. 654.2  Definitions.

    Evaluated life. The time period for which project or measure 
benefits and costs have been evaluated. The evaluated life starts after 
the last project measure of the evaluation unit has been completed.
    Landuser. Those who individually or collectively use land as owner, 
lessee, occupier, or by other arrangements which give them conservation 
planning or implementation concern and responsibility for the land 
involved.
    Maintenance. The work and actions required to keep works of 
improvement in a condition to function for their intended purpose and 
the replacement of portions of project measures as specified in the O&M 
agreement.
    Operation. The administration, management, and performance of 
services needed to insure the continued proper functioning of completed 
project measures.
    Operation and maintenance agreement. A written agreement between the 
sponsor(s) and NRCS or other recipient(s) in which responsibilities and 
actions are established for the operation, maintenance, replacement, and 
inspection of project measures.
    Plan of operation and maintenance. A detailed program of action to 
provide for performing the operation and maintenance of a specific 
project measure.
    Project measures. An undertaking for watershed protection; flood 
prevention; the conservation, development, utilization, and disposal of 
water; the conservation and proper utilization of land; or a combination 
thereof. The undertaking may consist of vegetative, structural, or 
management measures or a combination thereof. Vegetative measures are 
those measures involving only seedbed preparation and/or the planting of 
vegetative material.
    Public recreation and/or fish and wildlife facility. A project 
measure or part thereof which (a) creates or improves the potential for 
public recreational use and enjoyment, or (b) materially contributes to 
the preservation, production, or harvest of fish and wildlife.
    Sponsor. An agency or organization with authority to provide local 
responsibility for a Federal financially-assisted local project under a 
program administered by NRCS.
    State Conservationist. The NRCS officer responsible for NRCS 
activities within a particular State, the Commonwealth of Puerto Rico, 
or the U.S. Virgin Islands.
    Structural measures. Structural measures are those measures that are 
excavated or constructed with concrete, earth, masonry, metal, rock, or 
other materials, and associated vegetation.



            Subpart B--Federal Financially-Assisted Projects



Sec. 654.10  Operation and maintenance agreement.

    A duly authorized official of the sponsor(s) must execute an O&M 
agreement with NRCS prior to NRCS furnishing financial assistance.



Sec. 654.11  Sponsor(s)' responsibility.

    (a) On non-Federal land, sponsor(s) are responsible for financing 
and performing without cost to the Federal Government, needed operation 
and maintenance (O&M) of project measures installed with Federal 
financial assistance.
    (b) The Federal agency administering Federal land involving project 
measures is responsible either for performing or requiring the 
performance of O&M on land administered by that agency. If project 
measures benefit both Federal and non-Federal land or interests, the O&M 
may be performed by the Federal agency, the sponsor(s), or both as 
mutually agreed by the Federal agency, sponsor(s), and NRCS. If O&M of 
project measures is performed by mutual agreement, the cost of O&M may 
be shared by the Federal agency and sponsor(s) as agreed.
    (c) The sponsor(s) shall obtain NRCS approval before modifying a 
project measure of changing land use to fulfill a different purpose.



Sec. 654.12  Financing operations and maintenance.

    Sources of funds needed to operate and maintain project measures for 
the duration of the O&M agreement shall

[[Page 552]]

be identified in the watershed or RC&D measure plan.



Sec. 654.13  Designating responsibility for operation and maintenance.

    Those organizations or agencies responsible for the O&M of each 
project measure shall be identified in the watershed or RC&D measure 
plan.



Sec. 654.14  Duration of sponsor(s)' responsibility.

    (a) Sponsor(s)' responsibility for O&M of a completed project 
measure begins when a part of all of the contract installing such 
measure is completed and accepted from the contractor. If the 
installation of the project measure is performed by force account, 
division of work, or performance of work methods, the sponsor(s)' O&M 
responsibilities begin on the date the work or portion thereof is 
completed as determined by NRCS, except for completed work located on 
Federal lands which are subject to special-use permits. The O&M 
agreement shall specify that O&M will continue through: (1) The 
evaluated life of the project, or (2) the evaluated life of measures 
that are economically evaluated as a unit, or (3) the useful life of 
cost-shared measures that are for land conservation or land utilization. 
The sponsor(s)' duties and liabilities for the measures under other 
Federal and State laws are not affected by the expiration of the O&M 
agreement.
    (b) For project measures being installed in segments, the sponsor(s) 
shall be responsible for O&M of completed and accepted segments. 
However, the NRCS may share in the cost of repairing damages to a 
completed segment when the damage is attributed to the continuation of 
work on uncompleted segments of the measure or when due to the fact that 
the measure was only partially completed.



Sec. 654.15  Operation and maintenance.

    Sponsor(s) are to operate and maintain completed project measures 
in:
    (a) Compliance with applicable Federal, State, and local laws, 
regulations, and ordinances.
    (b) Compliance with any applicable conditions set forth in the 
instruments by which the landrights were acquired for installing, 
operating, and maintaining the project measures.
    (c) A manner that will not significantly degrade the environment and 
will permit project measures to serve the purpose for which they were 
installed as set forth in the watershed or RC&D measure plan.
    (d) Compliance with the time frames and O&M work items established 
in the plan of O&M and inspection reports.
    (e) Accordance with agreements with NRCS on admission charges and 
user fees for public recreation and/or fish and wildlife facility. 
Admission or user fees shall be charged only as necessary to produce 
revenues required to amortize the sponsor(s)' share of installation 
costs and to provide adequate O&M for that portion of the project 
measures pertaining to public recreation and/or fish and wildlife 
facility. Sponsor(s)' admission or user fee charges require prior NRCS 
approval throughout the life of the O&M agreement.
    (f) Accordance with the schedule for withdrawal of water in water 
impounding structures as specified in the watershed or RC&D measure plan 
or other legal documents.
    (g) A manner consistent with the project objectives.



Sec. 654.16  Property management.

    Sponsor(s) are to:
    (a) Use real property acquired in whole or in part with Federal 
funds as long as needed for the purpose for which it was acquired and in 
accordance with the O&M agreement. If real property acquired in whole or 
in part with Federal funds is no longer needed for the purpose for which 
it was acquired, the sponsor(s) shall obtain NRCS approval for future 
use or disposition.
    (b) Use nonexpendable personal property acquired in whole or in part 
with Federal funds as long as needed for the purpose for which it was 
acquired in accordance with the rules governing Federal grant property 
(34 CFR part 256).
    (c) Establish, adopt, and comply with a property management system 
which meets the standards governing Federal grant property.

[[Page 553]]



Sec. 654.17  Inspection.

    (a) Sponsor(s) are to make periodic and special inspections of 
installed project measures as provided in the plan of O&M. For 
structural measures, inspections are to be made at least annually and 
after each major storm or occurrence of any unusual condition that might 
adversely affect the project measures. At the discretion of the State 
Conservationist, NRCS may assist sponsor(s) with their inspections. NRCS 
or land-administering agencies may make independent inspections at any 
time during the period covered by the O&M agreement.
    (b) Sponsor(s) are to maintain a written record of each inspection 
and furnish NRCS and land-administering agencies a copy of that record. 
The record should indentify items inspected, O&M work that may be 
needed, a time frame to do the work, and the date of the inspection. The 
NRCS and land-administering agencies will provide the sponsor(s) a copy 
of a similar record of independent inspections.
    (c) The sponsor(s) shall perform the O&M work listed as needed in 
the inspection reports within the time frame established for each item 
of work. Failure to perform O&M work will be considered a violation of 
the O&M agreement and will be handled in accordance with Sec. 654.20.
    (d) Sponsor(s) are to maintain a written record of work performed 
which is listed in the inspection report and a record of other 
significant O&M activity. The record will identify the measure, item of 
work, cost of performance, and date completed.
    (e) Sponsor(s)' records relative to the project shall be made 
available to NRCS for examination.



Sec. 654.18  Natural Resources Conservation Service responsibility.

    The Natural Resources Conservation Service will assist the 
sponsor(s) in developing a watershed or RC&D measure plan which includes 
a description of O&M work and estimated cost, assist in the preparation 
of O&M agreements and plans of O&M, enter into O&M agreements with the 
sponsor(s), and notify the sponsor(s) of observed failures to comply 
with the O&M agreement.



Sec. 654.19  Plan of operation and maintenance.

    (a) The plan for O&M shall be incorporated into and made a part of 
the O&M agreement. A separate plan of O&M shall be prepared for each 
project measure that is expected to a have a unique O&M need. Two or 
more measures with similar O&M needs may be included in a single plan 
for O&M.
    (b) The plan of O&M shall include the known and anticipated items of 
O&M, an explanation of how the O&M activities may be carried out, a 
general time frame for making O&M inspections and for completing the 
needed O&M work, and the records and reports deemed appropriate by the 
sponsor(s) and NRCS.



Sec. 654.20  Violations of operation and maintenance agreement.

    (a) The State Conservationist shall investigate alleged sponsor 
violations of the O&M agreement. If the State Conservationist determines 
that a violation has occurred that may prevent the project measure from 
functioning as intended, create a health or safety hazard, or prevent 
the accrual of project benefits, he shall provide sponsor(s) written 
notification.
    (b) If the sponsor(s) fail to comply with the O&M agreement or fail 
to take corrective action, NRCS may notify authorities having 
appropriate jurisdiction, withhold further assistance to the project, 
require the sponsor(s) to reimburse the government for the NRCS share of 
the cost of the project, and/or pursue other action authorized by the 
O&M agreement or law.



                   Subpart C--Conservation Operations



Sec. 654.30  Responsibility for operation and maintenance.

    The land user is responsible for O&M of soil and water conservation 
measures installed with NRCS assistance provided through soil, water, 
and other conservation districts.



Sec. 654.31  Performing operation and maintenance.

    The method of performing O&M is to be at the option of the land 
user. The NRCS, working through districts, will

[[Page 554]]

furnish information and technical assistance as needed and requested to 
the extent NRCS resources permit.



                Subpart D--Emergency Watershed Protection



Sec. 654.40  Responsibility for operation and maintenance.

    (a) Non-Federal lands. The need for an O&M agreement will be 
determined by the State Conservationist. Where an O&M agreement is 
necessary, the sponsor(s) will provide the O&M and adopt standards for 
Federal grant property (34 CFR part 256). Where no O&M agreement is 
necessary, other arrangements will be made for complying with Federal 
property management.
    (b) Federal lands. The Federal agency administering the Federal land 
is responsible for operating and maintaining emergency measures 
installed on Federal land.



Sec. 654.41  Performance of operation and maintenance.

    (a) Arrangement. O&M is a prerequisite for approval of Federal 
emergency assistance when:
    (1) The emergency measure needs to be operated and maintained in 
order to serve its intended purpose, or
    (2) The emergency measure needs to be operated and maintained to 
insure that it will not become hazardous.
    (b) Time of operation and maintenance. The sponsor(s)' obligations 
for O&M begin when the measure is installed and extend for the duration 
of the time required for the emergency measure to serve the purpose for 
which it is installed.
    (c) Performance. Operation and maintenance is to be performed in a 
manner that will protect the environment and otherwise comply with NRCS, 
State, and local requirements. The method of performing O&M is at the 
option of the sponsor(s).



              Subpart E--Great Plains Conservation Program



Sec. 654.50  Responsibility for operation and maintenance.

    Responsibility for practices under the Great Plains Conservation 
Program are contained in Sec. 631.10 of this chapter.



PART 655  [RESERVED]






PART 656--PROCEDURES FOR THE PROTECTION OF ARCHEOLOGICAL AND HISTORICAL PROPERTIES ENCOUNTERED IN NRCS-ASSISTED PROGRAMS--Table of Contents




Sec.
656.1  Purpose.
656.2  Archeological and historical laws and Executive orders applicable 
          to NRCS-assisted programs.
656.3  Policy.
656.4--656.9  [Reserved]

    Authority: Pub. L. 86-523, 74 Stat. 220, as amended (16 U.S.C. 469 
et seq.); Pub. L. 89-665, 80 Stat. 915, as amended (16 U.S.C. 470 et 
seq.); 7 CFR 2.62.

    Source: 42 FR 36804, July 18, 1977, unless otherwise noted.



Sec. 656.1   Purpose.

    This part prescribes Natural Resources Conservation Service (NRCS) 
policy, procedures, and guidelines for the implementation of 
archeological and historical laws and appropriate executive orders for 
administering NRCS programs.



Sec. 656.2   Archeological and historical laws and Executive orders applicable to NRCS-assisted programs.

    (a) The Act of June 27, 1960, relating to the preservation of 
historical and archeological data, Pub. L. 86-523, 74 Stat. 220, as 
amended May 24, 1974; Pub. L. 93-291, 88 Stat. 174 (16 U.S.C. 469 et 
seq.), provides for the preservation of historical and archeological 
materials or data, including relics and specimens, that might otherwise 
be lost or destroyed as a result of any Federal or federally-assisted or 
licensed project, activity, or program.
    (b) The National Historic Preservation Act, Pub. L. 89-665, 80 Stat. 
915, as amended, (16 U.S.C. 470 et seq.), authorizes the Secretary of 
the Interior to maintain and expand a National Register of Historic 
Places (NRHP), including historic districts, sites, buildings, 
structures, and objects that are significant in American history, 
architecture, archeology, and culture. This law also

[[Page 555]]

establishes the Advisory Council on Historic Preservation (ACHP), to be 
appointed by the President. Section 106 of this Act (16 U.S.C. 470f), 
requires that prior to the approval of any Federal or federally-assisted 
or licensed undertaking, the Federal agency shall afford the ACHP a 
reasonable opportunity to comment, if properties listed in or eligible 
for listing in NRHP are affected.
    (c) Executive Order 11593 (36 FR 8921, 3 CFR 1971 Comp. P. 154), 
Protection and Enhancement of the Cultural Environment, provides that 
the Federal government shall furnish leadership in preserving, 
restoring, and maintaining the historical and cultural environment of 
the nation, and that Federal agencies shall administer the cultural 
properties under their control in a spirit of stewardship and 
trusteeship for future generations; initiate measures necessary to 
direct their policies, plans, and programs in such a way that federally 
owned sites, structures, and objects of historical, architectural, or 
archeological significance are preserved, restored, and maintained. 
Section 1(3) directs that agencies institute procedures to assure that 
Federal plans and programs contribute to the preservation and 
enhancement of non-federally owned sites, structures, and objects of 
historical, architectural, or archeological significance in consultation 
with the ACHP.



Sec. 656.3   Policy.

    (a) NRCS recognizes that significant historical, archeological, and 
architectural resources are an important part of our national heritage, 
the protection of which requires careful consideration in this agency's 
project planning and implementation process.
    (b) NRCS will take reasonable precautions to avoid damaging any 
significant historic, cultural, or natural aspects of our national 
heritage and will work with the National Park Service (NPS) and the 
Advisory Council on Historic Preservation (ACHP) in identifying and 
seeking to avoid or mitigate adverse effects of NRCS-assisted projects 
on the Nation's significant cultural resources. The procedures contained 
in this part have been developed to comply with sections 1(3) and 2(c) 
of Executive Order 11593.
Secs. 656.4--656.9  [Reserved]



PART 657--PRIME AND UNIQUE FARMLANDS--Table of Contents




                Subpart A--Important Farmlands Inventory

Sec.
657.1  Purpose.
657.2  Policy.
657.3  Applicability.
657.4  NRCS responsibilities.
657.5  Identification of important farmlands.

    Authority: 16 U.S.C. 590a-f, q; 7 CFR 2.62; Pub. L. 95-87; 42 U.S.C. 
4321 et seq.

    Source: 43 FR 4031, Jan. 31, 1978, unless otherwise noted.



                Subpart A--Important Farmlands Inventory



Sec. 657.1  Purpose.

    NRCS is concerned about any action that tends to impair the 
productive capacity of American agriculture. The Nation needs to know 
the extent and location of the best land for producing food, feed, fiber 
forage, and oilseed crops. In addition to prime and unique farmlands, 
farmlands that are of statewide and local importance for producing these 
crops also need to be identified.



Sec. 657.2  Policy.

    It is NRCS policy to make and keep current an inventory of the prime 
farmland and unique farmland of the Nation. This inventory is to be 
carried out in cooperation with other interested agencies at the 
National, State, and local levels of government. The objective of the 
inventory is to identify the extent and location of important rural 
lands needed to produce food, feed, fiber, forage, and oilseed crops.



Sec. 657.3  Applicability.

    Inventories made under this memorandum do not constitute a 
designation of any land area to a specific land use. Such designations 
are the responsibility of appropriate local and State officials.



Sec. 657.4  NRCS responsibilities.

    (a) State Conservationist. Each NRCS State Conservationist is to:

[[Page 556]]

    (1) Provide leadership for inventories of important farmlands for 
the State, county, or other subdivision of the State. Each is to work 
with appropriate agencies of State government and others to establish 
priorities for making these inventories.
    (2) Identify the soil mapping units within the State that qualify as 
prime. In doing this, State Conservationists, in consultation with the 
cooperators of the National Cooperative Soil Survey, have the 
flexibility to make local deviation from the permeability criterion or 
to be more restrictive for other specific criteria in order to assure 
the most accurate identification of prime farmlands for a State. Each is 
to invite representatives of the Governor's office, agencies of the 
State government, and others to identify farmlands of statewide 
importance and unique farmlands that are to be inventoried within the 
framework of this memorandum.
    (3) Prepare a statewide list of:
    (i) Soil mapping units that meet the criteria for prime farmland;
    (ii) Soil mapping units that are farmlands of statewide importance 
if the criteria used were based on soil information; and
    (iii) Specific high-value food and fiber crops that are grown and, 
when combined with other favorable factors, qualify lands to meet the 
criteria for unique farmlands. Copies are to be furnished to NRCS Field 
Offices and to NRCS Technical Service Centers (TSC's). (See 7 CFR 600.3, 
600.6.)
    (4) Coordinate soil mapping units that qualify as prime farmlands 
with adjacent States, including the States responsible for the soil 
series. Since farmlands of statewide importance and unique farmlands are 
designated by others at the State level, the soil mapping units and 
areas identified need not be coordinated among States.
    (5) Instruct NRCS District Conservationists to arrange local review 
of lands identified as prime, unique, and additional farmlands of 
statewide importance by Conservation Districts and representatives of 
local agencies. This review is to determine if additional farmland 
should be identified to meet local decisionmaking needs.
    (6) Make and publish each important farmland inventory on a base map 
of national map accuracy at an intermediate scale of 1:50,000 or 
1:100,000. State Conservationists who need base maps of other scales are 
to submit their requests with justification to the Administrator for 
consideration.
    (b) Technical Service Centers. Field representatives are to provide 
requested technical assistance to State Conservationists in inventorying 
prime and unique farmlands (see 7 CFR 600.2). This includes reviewing 
statewide lists of soil mapping units that meet the criteria for prime 
farmlands and resolving coordination problems that may occur among 
States for specific soil series or soil mapping units.
    (c) National Office. The Assistant Administrator for Field Services 
(see 7 CFR 600.2) is to provide national leadership in preparing 
guidelines for inventorying prime farmlands and for national statistics 
and reports of prime farmlands.



Sec. 657.5  Identification of important farmlands.

    (a) Prime farmlands--(1) General. Prime farmland is land that has 
the best combination of physical and chemical characteristics for 
producing food, feed, forage, fiber, and oilseed crops, and is also 
available for these uses (the land could be cropland, pastureland, 
rangeland, forest land, or other land, but not urban built-up land or 
water). It has the soil quality, growing season, and moisture supply 
needed to economically produce sustained high yields of crops when 
treated and managed, including water management, according to acceptable 
farming methods. In general, prime farmlands have an adequate and 
dependable water supply from precipitation or irrigation, a favorable 
temperature and growing season, acceptable acidity or alkalinity, 
acceptable salt and sodium content, and few or no rocks. They are 
permeable to water and air. Prime farmlands are not excessively erodible 
or saturated with water for a long period of time, and they either do 
not flood frequently or are protected from flooding. Examples of soils 
that qualify as prime farmland are Palouse silt loam, 0 to 7 percent 
slopes; Brookston silty clay loam, drained; and Tama silty clay loam, 0 
to 5 percent slopes.

[[Page 557]]

    (2) Specific criteria. Prime farmlands meet all the following 
criteria: Terms used in this section are defined in USDA publications: 
``Soil Taxonomy, Agriculture Handbook 436''; ``Soil Survey Manual, 
Agriculture Handbook 18''; ``Rainfall-erosion Losses From Cropland, 
Agriculture Handbook 282''; ``Wind Erosion Forces in the United States 
and Their Use in Predicting Soil Loss, Agriculture Handbook 346''; and 
``Saline and Alkali Soils, Agriculture Handbook 60.''
    (i) The soils have:
    (A) Aquic, udic, ustic, or xeric moisture regimes and sufficient 
available water capacity within a depth of 40 inches (1 meter), or in 
the root zone (root zone is the part of the soil that is penetrated or 
can be penetrated by plant roots) if the root zone is less than 40 
inches deep, to produce the commonly grown cultivated crops (cultivated 
crops include, but are not limited to, grain, forage, fiber, oilseed, 
sugar beets, sugarcane, vegetables, tobacco, orchard, vineyard, and bush 
fruit crops) adapted to the region in 7 or more years out of 10; or
    (B) Xeric or ustic moisture regimes in which the available water 
capacity is limited, but the area has a developed irrigation water 
supply that is dependable (a dependable water supply is one in which 
enough water is available for irrigation in 8 out of 10 years for the 
crops commonly grown) and of adequate quality; or,
    (C) Aridic or torric moisture regimes and the area has a developed 
irrigation water supply that is dependable and of adequate quality; and,
    (ii) The soils have a temperature regime that is frigid, mesic, 
thermic, or hyperthermic (pergelic and cryic regimes are excluded). 
These are soils that, at a depth of 20 inches (50 cm), have a mean 
annual temperature higher than 32 deg. F (0 deg. C). In addition, the 
mean summer temperature at this depth in soils with an O horizon is 
higher than 47 deg. F (8 deg. C); in soils that have no O horizon, the 
mean summer temperature is higher than 59 deg. F (15 deg. C); and,
    (iii) The soils have a pH between 4.5 and 8.4 in all horizons within 
a depth of 40 inches (1 meter) or in the root zone if the root zone is 
less than 40 inches deep; and,
    (iv) The soils either have no water table or have a water table that 
is maintained at a sufficient depth during the cropping season to allow 
cultivated crops common to the area to be grown; and,
    (v) The soils can be managed so that, in all horizons within a depth 
of 40 inches (1 meter) or in the root zone if the root zone is less than 
40 inches deep, during part of each year the conductivity of the 
saturation extract is less than 4 mmhos/cm and the exchangeable sodium 
percentage (ESP) is less than 15; and,
    (vi) The soils are not flooded frequently during the growing season 
(less often than once in 2 years); and,
    (vii) The product of K (erodibility factor) x percent slope is less 
than 2.0, and the product of I (soils erodibility)  x  C (climatic 
factor) does not exceed 60; and
    (viii) The soils have a permeability rate of at least 0.06 inch 
(0.15 cm) per hour in the upper 20 inches (50 cm) and the mean annual 
soil temperature at a depth of 20 inches (50 cm) is less than 59 deg. F 
(15 deg. C); the permeability rate is not a limiting factor if the mean 
annual soil temperature is 59 deg. F (15 deg. C) or higher; and,
    (ix) Less than 10 percent of the surface layer (upper 6 inches) in 
these soils consists of rock fragments coarser than 3 inches (7.6 cm).
    (b) Unique farmland--(1) General. Unique farmland is land other than 
prime farmland that is used for the production of specific high value 
food and fiber crops. It has the special combination of soil quality, 
location, growing season, and moisture supply needed to economically 
produce sustained high quality and/or high yields of a specific crop 
when treated and managed according to acceptable farming methods. 
Examples of such crops are citrus, tree nuts, olives, cranberries, 
fruit, and vegetables.
    (2) Specific characteristics of unique farmland. (i) Is used for a 
specific high-value food or fiber crop; (ii) Has a moisture supply that 
is adequate for the specific crop; the supply is from

[[Page 558]]

stored moisture, precipitation, or a developed-irrigation system; (iii) 
Combines favorable factors of soil quality, growing season, temperature, 
humidity, air drainage, elevation, aspect, or other conditions, such a 
nearness to market, that favor the growth of a specific food or fiber 
crop.
    (c) Additional farmland of statewide importance. This is land, in 
addition to prime and unique farmlands, that is of statewide importance 
for the production of food, feed, fiber, forage, and oil seed crops. 
Criteria for defining and delineating this land are to be determined by 
the appropriate State agency or agencies. Generally, additional 
farmlands of statewide importance include those that are nearly prime 
farmland and that economically produce high yields of crops when treated 
and managed according to acceptable farming methods. Some may produce as 
high a yield as prime farmlands if conditions are favorable. In some 
States, additonal farmlands of statewide importance may include tracts 
of land that have been designated for agriculture by State law.
    (d) Additional farmland of local importance. In some local areas 
there is concern for certain additional farmlands for the production of 
food, feed, fiber, forage, and oilseed crops, even though these lands 
are not identified as having national or statewide importance. Where 
appropriate, these lands are to be identified by the local agency or 
agencies concerned. In places, additional farmlands of local importance 
may include tracts of land that have been designated for agriculture by 
local ordinance.



PART 658--FARMLAND PROTECTION POLICY ACT--Table of Contents




Sec.
658.1  Purpose.
658.2  Definitions.
658.3  Applicability and exemptions.
658.4  Guidelines for use of criteria.
658.5  Criteria.
658.6  Technical assistance.
658.7  USDA assistance with Federal agencies' reviews of policies and 
          procedures.

    Authority: 7 U.S.C. 4201-4209.

    Source: 49 FR 27724, July 5, 1984, unless otherwise noted.



Sec. 658.1  Purpose.

    This part sets out the criteria developed by the Secretary of 
Agriculture, in cooperation with other Federal agencies, pursuant to 
section 1541(a) of the Farmland Protection Policy Act (FPPA or the Act) 
7 U.S.C. 4202(a). As required by section 1541(b) of the Act, 7 U.S.C. 
4202(b), Federal agencies are (a) to use the criteria to identify and 
take into account the adverse effects of their programs on the 
preservation of farmland, (b) to consider alternative actions, as 
appropriate, that could lessen adverse effects, and (c) to ensure that 
their programs, to the extent practicable, are compatible with State and 
units of local government and private programs and policies to protect 
farmland. Guidelines to assist agencies in using the criteria are 
included in this part. The Department of Agriculture (hereinafter USDA) 
may make available to States, units of local government, individuals, 
organizations, and other units of the Federal Government, information 
useful in restoring, maintaining, and improving the quantity and quality 
of farmland.



Sec. 658.2  Definitions.

    (a) Farmland means prime or unique farmlands as defined in section 
1540(c)(1) of the Act or farmland that is determined by the appropriate 
state or unit of local government agency or agencies with concurrence of 
the Secretary to be farmland of statewide of local importance. 
``Farmland'' does not include land already in or committed to urban 
development or water storage. Farmland ``already in'' urban development 
or water storage includes all such land with a density of 30 structures 
per 40-acre area. Farmland already in urban development also includes 
lands identified as ``urbanized area'' (UA) on the Census Bureau Map, or 
as urban area mapped with a ``tint overprint'' on the USGS topographical 
maps, or as ``urban-built-up'' on the USDA Important Farmland Maps. 
Areas shown as white on the USDA Important Farmland Maps are not 
``farmland'' and, therefore, are not subject to the Act. Farmland 
``committed to urban development or water storage'' includes all such 
land that receives a combined score of 160 points or less from the land

[[Page 559]]

evaluation and site assessment criteria.
    (b) Federal agency means a department, agency, independent 
commission, or other unit of the Federal Government.
    (c) Federal program means those activities or responsibilities of a 
Federal agency that involve undertaking, financing, or assisting 
construction or improvement projects or acquiring, managing, or 
disposing of Federal lands and facilities.
    (1) The term ``Federal program'' does not include:
    (i) Federal permitting, licensing, or rate approval programs for 
activities on private or non-Federal lands; and
    (ii) Construction or improvement projects that were beyond the 
planning stage and were in either the active design or construction 
state on August 4, 1984.
    (2) For the purposes of this section, a project is considered to be 
``beyond the planning stage and in either the active design or 
construction state on August 4, 1984'' if, on or before that date, 
actual construction of the project had commenced or:
    (i) Acquisition of land or easements for the project had occurred or 
all required Federal agency planning documents and steps were completed 
and accepted, endorsed, or approved by the appropriate agency;
    (ii) A final environmental impact statement was filed with the 
Environmental Protection Agency or an environmental assessment was 
completed and a finding of no significant impact was executed by the 
appropriate agency official; and
    (iii) The engineering or architectural design had begun or such 
services had been secured by contract. The phrase ``undertaking, 
financing, or assisting construction or improvement projects'' includes 
providing loan guarantees or loan insurance for such projects and 
includes the acquisition, management and disposal of land or facilities 
that a Federal agency obtains as the result of foreclosure or other 
actions taken under a loan or other financial assistance provided by the 
agency directly and specifically for that property. For the purposes of 
this section, the phrase ``acquiring, managing, or disposing of Federal 
lands and facilities'' refers to lands and facilities that are acquired, 
managed, or used by a Federal agency specifically in support of a 
Federal activity or program, such as national parks, national forests, 
or military bases, and does not refer to lands and facilities that are 
acquired by a Federal agency as the incidental result of actions by the 
agency that give the agency temporary custody or ownership of the lands 
or facilities, such as acquisition pursuant to a lien for delinquent 
taxes, the exercise of conservatorship or receivership authority, or the 
exercise of civil or criminal law enforcement forfeiture or seizure 
authority.
    (d) State or local government policies or programs to protect 
farmland include: Zoning to protect farmland; agricultural land 
protection provisions of a comprehensive land use plan which has been 
adopted or reviewed in its entirety by the unit of local government in 
whose jurisdiction it is operative within 10 years preceding proposed 
implementation of the particular Federal program; completed purchase or 
acquisition of development rights; completed purchase or acquisition of 
conservation easements; prescribed procedures for assessing agricultural 
viability of sites proposed for conversion; completed agricultural 
districting and capital investments to protect farmland.
    (e) Private programs to protect farmland means programs for the 
protection of farmland which are pursuant to and consistent with State 
and local government policies or programs to protect farmland of the 
affected State and unit of local government, but which are operated by a 
nonprofit corporation, foundation, association, conservancy, district, 
or other not-for-profit organization existing under State or Federal 
laws. Private programs to protect farmland may include: (1) Acquiring 
and holding development rights in farmland and (2) facilitating the 
transfer of development rights of farmland.
    (f) Site means the location(s) that would be converted by the 
proposed action(s).
    (g) Unit of local government means the government of a county, 
municipality, town, township, village, or other unit

[[Page 560]]

of general government below the State level, or a combination of units 
of local government acting through an areawide agency under a State law 
or an agreement for the formulation of regional development policies and 
plans.

[49 FR 27724, July 5, 1984, as amended at 59 FR 31117, June 17, 1994]



Sec. 658.3  Applicability and exemptions.

    (a) Section 1540(b) of the Act, 7 U.S.C. 4201(b), states that the 
purpose of the Act is to minimize the extent to which Federal programs 
contribute to the unnecessary and irreversible conversion of farmland to 
nonagricultural uses. Conversion of farmland to nonagricultural uses 
does not include the construction of on-farm structures necessary for 
farm operations. Federal agencies can obtain assistance from USDA in 
determining whether a proposed location or site meets the Act's 
definition of farmland. The USDA Natural Resources Conservation Service 
(NRCS) field office serving the area will provide the assistance. Many 
State or local government planning offices can also provide this 
assistance.
    (b) Acquisition or use of farmland by a Federal agency for national 
defense purposes is exempted by section 1547(b) of the Act, 7 U.S.C. 
4208(b).
    (c) The Act and these regulations do not authorize the Federal 
Government in any way to regulate the use of private or non-Federal 
land, or in any way affect the property rights of owners of such land. 
In cases where either a private party or a non-Federal unit of 
government applies for Federal assistance to convert farmland to a 
nonagricultural use, the Federal agency should use the criteria set 
forth in this part to identify and take into account any adverse effects 
on farmland of the assistance requested and develop alternative actions 
that would avoid or mitigate such adverse effects. If, after 
consideration of the adverse effects and suggested alternatives, the 
landowners want to proceed with conversion, the Federal agency, on the 
basis of the analysis set forth in Sec. 658.4 and any agency policies or 
procedures for implementing the Act, may provide or deny the requested 
assistance. Only assistance and actions that would convert farmland to 
nonagricultural uses are subject to this Act. Assistance and actions 
related to the purchase, maintenance, renovation, or replacement of 
existing structures and sites converted prior to the time of an 
application for assistance from a Federal agency, including assistance 
and actions related to the construction of minor new ancillary 
structures (such as garages or sheds), are not subject to the Act.
    (d) Section 1548 of the Act, as amended, 7 U.S.C. 4209, states that 
the Act shall not be deemed to provide a basis for any action, either 
legal or equitable, by any person or class of persons challenging a 
Federal project, program, or other activity that may affect farmland. 
Neither the Act nor this rule, therefore, shall afford any basis for 
such an action. However, as further provided in section 1548, the 
governor of an affected state, where a state policy or program exists to 
protect farmland, may bring an action in the Federal district court of 
the district where a Federal program is proposed to enforce the 
requirements of section 1541 of the Act, 7 U.S.C. 4202, and regulations 
issued pursuant to that section.

[49 FR 27724, July 5, 1984, as amended at 59 FR 31117, June 17, 1994]



Sec. 658.4  Guidelines for use of criteria.

    As stated above and as provided in the Act, each Federal agency 
shall use the criteria provided in Sec. 658.5 to identify and take into 
account the adverse effects of Federal programs on the protection of 
farmland. The agencies are to consider alternative actions, as 
appropriate, that could lessen such adverse effects, and assure that 
such Federal programs, to the extent practicable, are compatible with 
State, unit of local government and private programs and policies to 
protect farmland. The following are guidelines to assist the agencies in 
these tasks:
    (a) An agency may determine whether or not a site is farmland as 
defined in Sec. 658.2(a) or the agency may request that NRCS make such a 
determination. If an agency elects not to make its own determination, it 
should make a request to NRCS on Form AD-1006, the Farmland Conversion 
Impact Rating Form, available at NRCS offices, for determination of 
whether the site is farmland subject to the Act. If neither

[[Page 561]]

the entire site nor any part of it are subject to the Act, then the Act 
will not apply and NRCS will so notify the agency. If the site is 
determined by NRCS to be subject to the Act, then NRCS will measure the 
relative value of the site as farmland on a scale of 0 to 100 according 
to the information sources listed in Sec. 658.5(a). NRCS will respond to 
these requests within 10 working days of their receipt except that in 
cases where a site visit or land evaluation system design is needed, 
NRCS will respond in 30 working days. In the event that NRCS fails to 
complete its response within the required period, if further delay would 
interfere with construction activities, the agency should proceed as 
though the site were not farmland.
    (b) The Form AD 1006, returned to the agency by NRCS will also 
include the following incidental information: The total amount of 
farmable land (the land in the unit of local government's jurisdiction 
that is capable of producing the commonly grown crop); the percentage of 
the jurisdiction that is farmland covered by the Act; the percentage of 
farmland in the jurisdiction that the project would convert; and the 
percentage of farmland in the local government's jurisdiction with the 
same or higher relative value than the land that the project would 
convert. These statistics will not be part of the criteria scoring 
process, but are intended simply to furnish additional background 
information to Federal agencies to aid them in considering the effects 
of their projects on farmland.
    (c) After the agency receives from NRCS the score of a site's 
relative value as described in Sec. 658.4(a) and then applies the site 
assessment criteria which are set forth in Sec. 658.5 (b) and (c), the 
agency will assign to the site a combined score of up to 260 points, 
composed of up to 100 points for relative value and up to 160 points for 
the site assessment. With this score the agency will be able to identify 
the effect of its programs on farmland, and make a determination as to 
the suitability of the site for protection as farmland. Once this score 
is computed, USDA recommends:
    (1) Sites with the highest combined scores be regarded as most 
suitable for protection under these criteria and sites with the lowest 
scores, as least suitable.
    (2) Sites receiving a total score of less than 160 need not be given 
further consideration for protection and no additional sites need to be 
evaluated.
    (3) Sites receiving scores totaling 160 or more be given 
increasingly higher levels of consideration for protection.
    (4) When making decisions on proposed actions for sites receiving 
scores totaling 160 or more, agency personnel consider:
    (i) Use of land that is not farmland or use of existing structures;
    (ii) Alternative sites, locations and designs that would serve the 
proposed purpose but convert either fewer acres of farmland or other 
farmland that has a lower relative value;
    (iii) Special siting requirements of the proposed project and the 
extent to which an alternative site fails to satisfy the special siting 
requirements as well as the originally selected site.
    (d) Federal agencies may elect to assign the site assessment 
criteria relative weightings other than those shown in Sec. 658.5 (b) 
and (c). If an agency elects to do so, USDA recommends that the agency 
adopt its alternative weighting system (1) through rulemaking in 
consultation with USDA, and (2) as a system to be used uniformly 
throughout the agency. USDA recommends that the weightings stated in 
Sec. 658.5 (b) and (c) be used until an agency issues a final rule to 
change the weightings.
    (e) It is advisable that evaluations and analyses of prospective 
farmland conversion impacts be made early in the planning process before 
a site or design is selected, and that, where possible, agencies make 
the FPPA evaluations part of the National Environmental Policy Act 
(NEPA) process. Under the agency's own NEPA regulations, some categories 
of projects may be excluded from NEPA which may still be covered under 
the FPPA. Section 1540(c)(4) of the Act exempts projects that were 
beyond the planning stage and were in either the active design or 
construction state on the effective date of the Act. Section 1547(b) 
exempts acquisition or use of farmland for national defense purposes. 
There

[[Page 562]]

are no other exemptions of projects by category in the Act.
    (f) Numerous States and units of local government are developing and 
adopting Land Evaluation and Site Assessment (LESA) systems to evaluate 
the productivity of agricultural land and its suitability for conversion 
to nonagricultural use. Therefore, States and units of local government 
may have already performed an evaluation using criteria similar to those 
contained in this rule applicable to Federal agencies. USDA recommends 
that where sites are to be evaluated within a jurisdiction having a 
State or local LESA system that has been approved by the governing body 
of such jurisdiction and has been placed on the NRCS State 
conservationist's list as one which meets the purpose of the FPPA in 
balance with other public policy objectives, Federal agencies use that 
system to make the evaluation.
    (g) To meet reporting requirements of section 1546 of the Act, 7 
U.S.C. 4207, and for data collection purposes, after the agency has made 
a final decision on a project in which one or more of the alternative 
sites contain farmland subject to the FPPA, the agency is requested to 
return a copy of the Form AD-1006, which indicates the final decision of 
the agency, to the NRCS field office.
    (h) Once a Federal agency has performed an analysis under the FPPA 
for the conversion of a site, that agency's, or a second Federal 
agency's determination with regard to additional assistance or actions 
on the same site do not require additional redundant FPPA analysis.

[49 FR 27724, July 5, 1984, as amended at 59 FR 31118, June 17, 1994]



Sec. 658.5  Criteria.

    This section states the criteria required by section 1541(a) of the 
Act, 7 U.S.C. 4202(a). The criteria were developed by the Secretary of 
Agriculture in cooperation with other Federal agencies. They are in two 
parts, (1) the land evaluation criterion, relative value, for which NRCS 
will provide the rating or score, and (2) the site assessment criteria, 
for which each Federal agency must develop its own ratings or scores. 
The criteria are as follows:
    (a) Land Evaluation Criterion--Relative Value. The land evaluation 
criterion is based on information from several sources including 
national cooperative soil surveys or other acceptable soil surveys, NRCS 
field office technical guides, soil potential ratings or soil 
productivity ratings, land capability classifications, and important 
farmland determinations. Based on this information, groups of soils 
within a local government's jurisdiction will be evaluated and assigned 
a score between 0 to 100, representing the relative value, for 
agricultural production, of the farmland to be converted by the project 
compared to other farmland in the same local government jurisdiction, 
This score will be the Relative Value Rating on Form AD 1006.
    (b) Site Assessment Criteria. Federal agencies are to use the 
following criteria to assess the suitability of each proposed site or 
design alternative for protection as farmland along with the score from 
the land evaluation criterion described in Sec. 658.5(a). Each criterion 
will be given a score on a scale of 0 to the maximum points shown. 
Conditions suggesting top, intermediate and bottom scores are indicated 
for each criterion. The agency would make scoring decisions in the 
context of each proposed site or alternative action by examining the 
site, the surrounding area, and the programs and policies of the State 
or local unit of government in which the site is located. Where one 
given location has more than one design alternative, each design should 
be considered as an alternative site. The site assessment criteria are:
    (1) How much land is in nonurban use within a radius of 1.0 mile 
from where the project is intended?

More than 90 percent--15 points
90 to 20 percent--14 to 1 point(s)
Less than 20 percent--0 points

    (2) How much of the perimeter of the site borders on land in 
nonurban use?

More than 90 percent--10 points
90 to 20 percent--9 to 1 point(s)
Less than 20 percent--0 points

    (3) How much of the site has been farmed (managed for a scheduled 
harvest or timber activity) more than 5 of the last 10 years?


[[Page 563]]


More than 90 percent--20 points
90 to 20 percent--19 to 1 points(s)
Less than 20 percent--0 points

    (4) Is the site subject to State or unit of local government 
policies or programs to protect farmland or covered by private programs 
to protect farmland?

Site is protected--20 points
Site is not protected--0 points

    (5) How close is the site to an urban built-up area?

The site is 2 miles or more from an urban built-up area--15 points
The site is more than 1 mile but less than 2 miles from an urban built-
up area--10 points
The site is less than 1 mile from, but is not adjacent to an urban 
built-up area--5 points
The site is adjacent to an urban built-up area--0 points

    (6) How close is the site to water lines, sewer lines and/or other 
local facilities and services whose capacities and design would promote 
nonagricultural use?

None of the services exist nearer than 3 miles from the site--15 points
Some of the services exist more than 1 but less than 3 miles from the 
site--10 points
All of the services exist within \1/2\ mile of the site--0 points

    (7) Is the farm unit(s) containing the site (before the project) as 
large as the average-size farming unit in the county? (Average farm 
sizes in each county are available from the NRCS field offices in each 
State. Data are from the latest available Census of Agriculture, Acreage 
of Farm Units in Operation with $1,000 or more in sales.)

As large or larger--10 points
Below average--deduct 1 point for each 5 percent below the average, down 
to 0 points if 50 percent or more below average--9 to 0 points

    (8) If this site is chosen for the project, how much of the 
remaining land on the farm will become non-farmable because of 
interference with land patterns?

Acreage equal to more than 25 percent of acres directly converted by the 
project--10 points
Acreage equal to between 25 and 5 percent of the acres directly 
converted by the project--9 to 1 point(s)
Acreage equal to less than 5 percent of the acres directly converted by 
the project--0 points

    (9) Does the site have available adequate supply of farm support 
services and markets, i.e., farm suppliers, equipment dealers, 
processing and storage facilities and farmer's markets?

All required services are available--5 points
Some required services are available--4 to 1 point(s)
No required services are available--0 points

    (10) Does the site have substantial and well-maintained on-farm 
investments such as barns, other storage buildings, fruit trees and 
vines, field terraces, drainage, irrigation, waterways, or other soil 
and water conservation measures?

High amount of on-farm investment--20 points
Moderate amount of on-farm investment--19 to 1 point(s)
No on-farm investment--0 points

    (11) Would the project at this site, by converting farmland to 
nonagricultural use, reduce the demand for farm support services so as 
to jeopardize the continued existence of these support services and 
thus, the viability of the farms remaining in the area?

Substantial reduction in demand for support services if the site is 
converted--10 points
Some reduction in demand for support services if the site is converted--
9 to 1 point(s)
No significant reduction in demand for support services if the site is 
converted--0 points

    (12) Is the kind and intensity of the proposed use of the site 
sufficiently incompatible with agriculture that it is likely to 
contribute to the eventual conversion of surrounding farmland to 
nonagricultural use?

Proposed project is incompatible with existing agricultural use of 
surrounding farmland--10 points
Proposed project is tolerable to existing agricultural use of 
surrounding farmland--9 to 1 point(s)
Proposed project is fully compatible with existing agricultural use of 
surrounding farmland--0 points

    (c) Corridor-type Site Assessment Criteria. The following criteria 
are to be used for projects that have a linear or

[[Page 564]]

corridor-type site configuration connecting two distant points, and 
crossing several different tracts of land. These include utility lines, 
highways, railroads, stream improvements, and flood control systems. 
Federal agencies are to assess the suitability of each corridor-type 
site or design alternative for protection as farmland along with the 
land evaluation information described in Sec. 658.4(a). All criteria for 
corridor-type sites will be scored as shown in Sec. 658.5(b) for other 
sites, except as noted below:
    (1) Criteria 5 and 6 will not be considered.
    (2) Criterion 8 will be scored on a scale of 0 to 25 points, and 
criterion 11 will be scored on a scale of 0 to 25 points.



Sec. 658.6  Technical assistance.

    (a) Section 1543 of the Act, 7 U.S.C. 4204 states, ``The Secretary 
is encouraged to provide technical assistance to any State or unit of 
local government, or any nonprofit organization, as determined by the 
Secretary, that desires to develop programs or policies to limit the 
conversion of productive farmland to nonagricultural uses.'' In 
Sec. 2.62, of 7 CFR part 2, subtitle A, NRCS is delegated leadership 
responsibility within USDA for the activities treated in this part.
    (b) In providing assistance to States, local units of government, 
and nonprofit organizations, USDA will make available maps and other 
soils information from the national cooperative soil survey through NRCS 
field offices.
    (c) Additional assistance, within available resources, may be 
obtained from local offices of other USDA agencies. The Agricultural 
Stabilization and Conservation Service and the Forest Service can 
provide aerial photographs, crop history data, and related information. 
A reasonable fee may be charged. In many States, the Cooperative 
Extension Service can provide help in understanding and identifying 
farmland protection issues and problems, resolving conflicts, developing 
alternatives, deciding on appropriate actions, and implementing those 
decisions.
    (d) Officials of State agencies, local units of government, 
nonprofit organizations, or regional, area, State-level, or field 
offices of Federal agencies may obtain assistance by contacting the 
office of the NRCS State conservationist. A list of Natural Resources 
Conservation Service State office locations appears in Appendix A, 
Sec. 661.6 of this title. If further assistance is needed, requests 
should be made to the Assistant Secretary for Natural Resources and 
Environment, Office of the Secretary, Department of Agriculture, 
Washington, DC 20250.



Sec. 658.7  USDA assistance with Federal agencies' reviews of policies and procedures.

    (a) Section 1542(a) of the Act, 7 U.S.C. 4203, states, ``Each 
department, agency, independent commission or other unit of the Federal 
Government, with the assistance of the Department of Agriculture, shall 
review current provisions of law, administrative rules and regulations, 
and policies and procedures applicable to it to determine whether any 
provision thereof will prevent such unit of the Federal Government from 
taking appropriate action to comply fully with the provisions of this 
subtitle.''
    (b) Section 1542(b) of the Act, 7 U.S.C. 4203, requires, as 
appropriate, each department, agency, independent commission, or other 
unit of the Federal Government, with the assistance of the Department of 
Agriculture, to develop proposals for action to bring its programs, 
authorities, and administrative activities into conformity with the 
purpose and policy of the Act.
    (c) USDA will provide certain assistance to other Federal agencies 
for the purposes specified in section 1542 of the Act, 7 U.S.C. 4203. If 
a Federal agency identifies or suggests changes in laws, administrative 
rules and regulations, policies, or procedures that may affect the 
agency's compliance with the Act, USDA can advise the agency of the 
probable effects of the changes on the protection of farmland. To 
request this assistance, officials of Federal agencies should correspond 
with the Chief, Natural Resources Conservation Service, P.O. Box 2890, 
Washington, DC 20013.
    (d) To meet the reporting requirements of section 1546 of the Act, 7

[[Page 565]]

U.S.C. 4207, and for data collection purposes, each Federal agency is 
requested to report to the Chief of the Natural Resources Conservation 
Service by November 15th of each year on progress made during the prior 
fiscal year to implement sections 1542 (a) and (b) of the Act, 7 U.S.C. 
4203 (a) and (b). Until an agency fully implements those sections, the 
agency should continue to make the annual report, but may omit the 
report upon full implementation. However, an agency is requested to file 
an annual report for any future year in which the agency has 
substantially changed its process for compliance with the Act.

[49 FR 27724, July 5, 1984, as amended at 59 FR 31118, June 17, 1994]

[[Page 566]]



                       SUBCHAPTER G--MISCELLANEOUS





PART 660  [RESERVED]






PART 661--PUBLIC INFORMATION AND RIGHT TO PRIVACY--Table of Contents




            Subpart A--Availability of Records and Materials

Sec.
661.1  General.
661.2  Public access and copying.
661.3  Requests for records.
661.4  Appeals.
661.5  Exempt records.

                       Subpart B--Right to Privacy

661.6  General.

Appendix A--Availability of Information

    Authority: 5 U.S.C. 552, 552a; 7 CFR 1.1-1.16, 1.110-1.123.

    Source: 43 FR 34756, Aug. 7, 1978, unless otherwise noted.



            Subpart A--Availability of Records and Materials



Sec. 661.1  General.

    This part is issued in accordance with the regulations of the 
Secretary of Agriculture at 7 CFR 1.1 through 1.16 implementing the 
Freedom of Information Act, 5 U.S.C. 552. The Secretary's regulations, 
as implemented by the regulations in this part, govern the availability 
to the public of records of the Natural Resources Conservation Service 
and the records for which the Natural Resources Conservation Service has 
custodial responsibility.



Sec. 661.2  Public access and copying.

    Natural Resources Conservation Service will make available for 
public inspection and copying those materials covered by 5 U.S.C. 
552(a)(2) as set out in the Secretary's regulations.



Sec. 661.3  Requests for records.

    Requests for records under 5 U.S.C. 552(a)(3) will be made in 
accordance with 7 CFR 1.3(a). The titles and mailing addresses of the 
officials in Natural Resources Conservation Service authorized to 
receive requests for records are shown in Appendix A of this subpart. 
Authority is hereby delegated to these officials to make determinations 
regarding such requests in accordance with 7 CFR 1.4(c).



Sec. 661.4  Appeals.

    Any person whose request for records above is denied shall have the 
right to appeal that denial in accordance with 7 CFR 1.3(e). All appeals 
shall be addressed to: Administrator, Natural Resources Conservation 
Service, U.S. Department of Agriculture, P.O. Box 2890, Washington, DC 
20013.



Sec. 661.5  Exempt records.

    Records exempt under 5 U.S.C. 552(b) may be withheld in accordance 
with 7 CFR 1.11.



                       Subpart B--Right to Privacy



Sec. 661.6  General.

    Natural Resources Conservation Service implementation of the Privacy 
Act of 1974, 5 U.S.C. 552a is contained in the regulations of the 
Secretary, 7 CFR 1.110 through 1.123.

                 Appendix A--Availability of Information

    The following list pertaining to the availability of information are 
published in accordance with the requirement and pursuant to the 
authority of sections 552, 559 of Title 5, United States Code.

               request for examination or copy of records

                                 General

    Request for examination and copying of a record or for copies of 
records shall be made to the Deputy Administrator for Administration, 
Natural Resources Conservation Service, U.S. Department of Agriculture, 
P.O. Box 2890, Washington, DC 20013, or to the State Conservationist in 
any of the listed State offices.

      natural resources conservation service, state office location

State Conservationist, Wright Building, 138 South Gay St., P.O. Box 311, 
Auburn, Ala. 36830.
State Conservationist, Suite 129, Professional Bldg., 2221 East Northern 
Lights Blvd., Anchorage, Alaska 99504.

[[Page 567]]

State Conservationist, 230 North 1st Ave., Federal Bldg., Phoenix, Ariz. 
85025.
State Conservationist, Federal Bldg., Room 5029, 700 West Capitol St., 
P.O. Box 2323, Little Rock, Ark. 72203.
State Conservationist, 2828 Chiles Rd., Davis, Calif. 95616.
State Conservationist, Mansfield Professional Park, Route 44A, Storrs, 
Conn. 06268.
State Conservationist, Treadway Towers, Suite 2-4, 9 East Loockerman 
St., Dover, Del. 19901.
State Conservationist, Federal Bldg., P.O. Box 1208, Gainesville, Fla., 
32602.
State Conservationist, Federal Bldg., 355 East Hancock Ave., P.O. Box 
832, Athens, Ga. 30603.
 State Conservationist, 300 Moana Blvd., Ala., Room 4316, P.O. Box 
50004, Honolulu, Hawaii 96850.
State Conservationist, Room 313, 2490 West 26th Ave., P.O. Box 17107, 
Denver, Colo. 80217.
State Conservationist, Federal Bldg., 200 West Church St., P.O. Box 678, 
Champaign, Ill. 61820.
State Conservationist, Atkinson Square-West, Suite 220, 5610 
Crawfordsville Rd., Indianapolis, Ind. 46224.
State Conservationist, 823 Federal Bldg., 210 Walnut St., Des Moines, 
Iowa 50309.
State Conservationist, 760 South Broadway, P.O. Box 600, Salina, Kans. 
67401.
State Conservationist, 333 Waller Ave., Lexington, Ky. 40504.
State Conservationist, 3737 Government St., P.O. Box 1630, Alexandria, 
La. 71301.
State Conservationist, USDA Bldg., University of Maine, Orono, Maine 
04473.
State Conservationist, Hartwick Bldg., Room 522, 4321 Hartwick Rd., 
College Park, Md. 20740.
State Conservationist, 29 Cottage St., Amherst, Mass. 01002.
State Conservationist, Room 345, 304 North 8th St., Boise, Idaho 83702.
Staten Conservationist, Milner Bldg., Room 590, 210 South Lamar St., 
P.O. Box 610, Jackson, Miss. 39205.
State Conservationist, 555 Vandiver Dr., Columbia, Mo. 65201.
State Conservationist, Federal Bldg., P.O. Box 970, Bozeman, Mont. 
59715.
State Conservationist, Federal Bldg.,-U.S. Courthouse, Room 345, 
Lincoln, Nebr. 68508.
State Conservationist, U.S. Post Office Bldg., P.O. Box 4850, Reno, Nev. 
89505.
State Conservationist, Federal Bldg., Durham, N.H. 03824.
State Conservationist, 1370 Hamilton St., P.O. Box 219, Somerset, N.J. 
08873.
State Conservationist, 517 Gold Ave., SW., P.O. Box 2007, Albuquerque, 
N. Mex. 87103.
State Conservationist, U.S. Courthouse and Federal Bldg., 100 South 
Clinton St., Room 771, Syracuse, N.Y. 13260.
State Conservationist, 1405 South Harrison Rd., East Lansing, Mich. 
48823.
State Conservationist, 200 Federal Bldg. and U.S. Courthouse, 316 North 
Robert St., St. Paul, Minn. 55101.
State Conservationist, 200 North High St., Room 522, Columbus, Ohio 
43215.
State Conservationist, Agriculture Center Bldg., Farm Rd. and Brumley 
St., Stillwater, Okla. 74074.
State Conservationist, Federal Bldg., 1220 Southwest 3d Ave., Portland, 
Oreg. 97204.
State Conservationist, Federal Bldg., and Courthouse, Box 985 Federal 
Square Station, Harrisburg, Pa. 17108.
State Conservationist, Caribbean Area, Room 633 Federal Bldg., Chardon 
Ave., G.P.O. Box 4868, Hato Rey, P.R. 00936.
State Conservationist, 222 Quaker Lane, West Warwick, R.I. 02893.
State Conservationist, 240 Stoneridge Dr., Columbia, S.C. 29210.
State Conservationist, 200 4th St., SW., P.O. Box 1357, Huron, S. Dak. 
57350.
State Conservationist, Federal Office Bldg., 310 New Bern Ave., Fifth 
Floor-P.O. Box 27307, Raleigh, N.C. 27611.
State Conservationist, Federal Bldg., P.O. Box 1458, Bismarck, N. Dak. 
58501.
State Conservationist, Federal Bldg., 101 South Main St., P.O. Box 648, 
Temple, Tex. 76501.
State Conservationist, 4012 Federal Bldg., 125 South State St., Salt 
Lake City, Utah 84138.
State Conservationist, Burlington Square, Suite 205, Burlington, Vt. 
05401.
State Conservationist, Federal Bldg., Room 9201, 400 North 8th St., P.O. 
Box 10026, Richmond, Va. 23240.
State Conservationist, 360 U.S. Courthouse, West 920 Riverside Ave., 
Spokane, Wash. 99201.
State Conservationist, 75 High St., P.O. Box 865, Morgantown, W. Va. 
26505.
State Conservationist, 4601 Hammersley Rd., Madison, Wis. 53711.
State Conservationist, Federal Office Bldg., P.O. Box 2440, Casper, Wyo. 
82601.
State Conservationist, 675 U.S. Courthouse, Nashville, Tenn. 37203.

    Only those matters pertaining to the particular State and matters of 
general application will be available in each State office.



PARTS 662-699  [RESERVED]



[[Page 569]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected


                                                                    Chap.

[[Page 571]]



                    Table of CFR Titles and Chapters



                     (Revised as of January 1, 1997)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 572]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)

[[Page 573]]

        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)

[[Page 574]]

    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)

[[Page 575]]

        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements

[[Page 576]]

        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)

[[Page 577]]

        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

[[Page 578]]

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

[[Page 579]]

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)

[[Page 580]]

       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)

[[Page 581]]

        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)

[[Page 582]]

        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

[[Page 583]]

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)

[[Page 584]]

       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)

[[Page 585]]

        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)

[[Page 586]]

         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 587]]





           Alphabetical List of Agencies Appearing in the CFR



                     (Revised as of January 1, 1997)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I

[[Page 588]]

Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I

[[Page 589]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I

[[Page 590]]

  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 591]]

  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI

[[Page 592]]

  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II

[[Page 593]]

Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 594]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X

[[Page 595]]

Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 597]]



List of CFR Sections Affected


All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

7 CFR
                                                                   51 FR
                                                                    Page
Chapter IV
400.1--400.5 (Subpart A)  Revised..................................20246
400.27--400.34 (Subpart C)  Revised..................................879
400.27--400.36 (Subpart C)  Revised................................33238
400.28  (d), (e), (f), and (g) correctly redesignated as (c), (d), 
        (e), and (f)...............................................11704
400.33  Corrected..................................................11704
400.45--400.49 (Subpart F)  Added; interim.........................29203
400.66  (b) amended (OMB numbers)....................12307, 15463, 37890
400.90--400.101 (Subpart J)  Added..................................5147
400.92  Revised....................................................44589
400.115--400.127 (Subpart K)  Added................................17316
402.7  (d) amended.................................................29205
403.7  (d) amendment confirmed......................................5309
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
404.7  (d) amendment confirmed......................................5309
405.7  (d) amended; interim.................................29206, 29207
    Confirmed......................................................45296
408.7  (d) amendment confirmed......................................5309
409.7  (d) amendment confirmed......................................5309
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
410.7  (d) amended.................................................29205
411.7  (d) amendment confirmed......................................5309
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
412  Revised.......................................................35204
413.7  (d) amendment confirmed......................................5309
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
414.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
415.7  (d) amended.................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
416.7  (d) amendment confirmed................................7546, 7547
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
417  Revised.......................................................15872
417.7  (d) corrected...............................................20247
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
418  Sales closing date extended...................................11285
418.7  (d) amendment confirmed......................................7546

[[Page 598]]

    (d) amended; interim.............................21730, 29206, 29207
    (d) amended....................................................29205
    (d) amendment confirmed........................................36683
    Confirmed......................................................45296
418.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
419.7  (d) amendment confirmed......................................7546
    (d) amended; interim.............................21730, 29206, 29207
    (d) amended....................................................29205
    (d) amendment confirmed........................................36683
    Confirmed......................................................45296
419.8  Correctly added..............................................6216
419.9  Added; interim...............................................7046
    Addition confirmed.............................................29207
420  Sales closing date extended....................................4131
420.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
420.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
421  Sales closing date extended....................................4131
421.7  (d) amendment confirmed................................6897, 7546
    (d) amended.............................................29205, 37891
    (d) amended; interim....................................29206, 29207
    (d) corrected..................................................40963
    Confirmed......................................................45296
421.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
422  Revised........................................................5690
    Sales closing date extended..............................8789, 10535
422.7  (d) amendment confirmed......................................6898
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
423.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
424  Sales closing date extended....................................4131
424.7  (d) amendment confirmed................................6897, 7546
    (d) amended.............................................29205, 37892
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
424.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
425  Sales closing date extended....................................4131
425.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
426.7  (d) amendment confirmed......................................7546
    (b) amended....................................................29205
    (b) correctly designated.......................................32903
427.7  (d) amendment confirmed......................................7546
    (d) amended; interim.............................21730, 29206, 29207
    (d) amended....................................................29205
    (d) amendment confirmed........................................36683
    Confirmed......................................................45296
427.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
428.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
429.7  (d) amended; interim..........................21730, 29206, 29207
    (d) amended....................................................29205
    (d) amendment confirmed........................................36683
    Confirmed......................................................45296
430  Revised........................................................5150
430.7  (d) amendment confirmed......................................6898
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
431  Sales closing date extended....................................4131
431.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
432  Sales closing date extended....................................4131
432.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
432.8  Added; interim...............................................7046
    Addition confirmed.............................................29207

[[Page 599]]

433.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
434.1--434.7 (Subpart)  Heading revised.............................5155
434.7  (d) amendment confirmed......................................6898
435.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
436  Sales closing date extended...................................11285
    Revised........................................................47199
436.7  (d) revised..................................................5156
    (d) amendment confirmed; (d) corrected..........................6898
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
437.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
438.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim...........................................29207
    Confirmed......................................................45296
439.7  (d) amendment confirmed......................................5309
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
440  Revised........................................................6900
440.7  (d) amended.................................................29205
441  Revised.......................................................37893
441.7  (d) amended.................................................29205
    (d) corrected..................................................41757
442.7  (d) amended.................................................29205
    (c) correctly designated.......................................32903
443  Revised........................................................5697
443.7  (d) amendment confirmed......................................6898
    (d) corrected...................................................8183
    (d) amended....................................................29205
444  Revised.......................................................11288
444.7  (d) amended.................................................29205
445  Revised.......................................................11293
445.7  (d) amended.................................................29205
446.7  (d) amended.................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
447  Revised.......................................................37897
447.7  (d) amendment confirmed......................................7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
448.7  (d) amendment confirmed................................6897, 7546
    (d) amended....................................................29205
    (d) amended; interim....................................29206, 29207
    Confirmed......................................................45296
448.8  Added; interim...............................................7046
    Addition confirmed.............................................29207
449  Revised.......................................................11896
449.7  (d) corrected...............................................17611
    (d) amended....................................................29205
450.7  (d) amended.................................................29205
    (d) amended; interim...........................................29207
    Confirmed......................................................45296
451  Added..........................................................1241
451.7  (d) amended.................................................29205
    (d) amended; interim...........................................29207
    Confirmed......................................................45296
Chapter V
520  Added.........................................................34191
Chapter VI
614  Added; interim................................................12827
    Revised........................................................26536
652  Removed.......................................................29208

                                  1987

7 CFR
                                                                   52 FR
                                                                    Page
Chapter IV
400.4  Revised.....................................................24979
400.5  Amended.....................................................24979
400.40--400.42 (Subpart E)  Added...................................4592
400.45--400.49 (Subpart F)  Revised................................19128
400.50--400.56 (Subpart G)  Removed................................17543
400.75--400.81 (Subpart I)  Removed................................17543
400.92  (g) added..................................................24278
400.141--400.157 (Subpart L)  Added................................17543
401  Added.........................................................28447
401.8  (d) amended; interim........................................36401
401.111  Added.....................................................45143
401.112  Added.....................................................45146
401.113  Added.....................................................45151

[[Page 600]]

401.114  Added.....................................................45599
401.117  Added.....................................................45153
401.119  Added.....................................................45603
401.120  Added.....................................................45605
401.121  Added.....................................................45148
401.123  Added.....................................................45159
401.124  Added.....................................................45155
401.135  Added; interim............................................45158
402.7  (d) amended..................................................3214
403.7  (d) amended..................................................3214
    (d) corrected...................................................6775
405  Sales closing date extended...................................45443
405.7  (d) amended..................................................3214
409.7  (d) amended..................................................3214
410.7  (d) amended..................................................3214
411.7  (d) amended..................................................3214
413.1--413.7 (Subpart)  Heading revised............................47375
413.7  (d) amended..................................................3214
    (d) corrected...................................................6775
    (d) amended; interim...........................................27782
414.7  (d) amended..................................................3214
415.7  (d) amended..................................................3214
416.7  (d) amended..................................................3214
417.7  (d) amended..................................................3214
418  Sales closing date extended....................................7818
418.1--418.8 (Subpart)  Heading revised............................34627
418.7  (d) amended..................................................3214
    (d) amended; interim...........................................23424
    (d) corrected..................................................25585
418.8  Revised.....................................................24279
419  Sales closing date extended....................................7818
419.1--419.9 (Subpart)  Heading revised............................34628
419.7  (d) amended..................................................3214
    (d) amended; interim...........................................23424
    (d) corrected..................................................25585
419.8  (b) amended..................................................9286
419.9  Revised.....................................................24279
420  Sales closing date extended....................................7818
420.7  (d) amended..................................................3214
    (d) amended.............................................17547, 17548
420.8  Revised.....................................................24279
421  Sales closing date extended....................................7818
421.7  (d) amended..................................................3214
    (d) corrected...................................................6775
421.8  Revised.....................................................24279
422  Sales closing date extended...................................48183
422.7  (d) amended...........................................3214, 23425
423.1--423.7 (Subpart)  Heading revised.....................45806, 47376
423.7  (d) amended..................................................3214
424  Sales closing date extended....................................7818
424.7  (d) amended....................................3214, 17547, 17548
424.8  Revised.....................................................24279
425.7  (d) amended....................................3214, 17547, 17548
    (d) corrected...................................................6775
427  Sales closing date extended....................................7818
427.1--427.8 (Subpart)  Heading revised............................34629
427.7  (d) amended..................................................3214
    (d) amended; interim...........................................23424
    (d) corrected..................................................25585
427.8  Revised.....................................................24279
428.7  (d) amended....................................3214, 17547, 17548
429.1--429.7 (Subpart)  Heading revised............................34630
429.7  (d) amended..................................................3214
    (d) amended; interim...........................................23424
    (d) corrected..................................................25585
430.7  (d) amended....................................3214, 17547, 17548
    (d) corrected...................................................6775
431.1--431.7 (Subpart)  Heading revised............................47377
431.7  (d) amended....................................3214, 17547, 17548
432  Sales closing date extended....................................7818
432.1--432.8 (Subpart)  Heading revised............................47378
432.7  (d) amended....................................3214, 17547, 17548
432.8  Revised.....................................................24279
433.7  (d) amended....................................3214, 17547, 17548
435.7  (d) amended..................................................3214
    (d) corrected...................................................6775
436.7  (d) amended..................................................3214
    (d) corrected...................................................6775
437.7  (d) amended..................................................3214
438.7  (d) amended..................................................3214
    (d) corrected...................................................6775
439.1--439.7 (Subpart)  Heading revised............................34630
439.7  (d) amended..................................................3214
440.7  (d) amended..................................................3214
441.7  (d) amended..................................................3214
442.7  (d) amended..................................................3214
443.7  (d) amended..................................................3214
444.7  (d) amended.................................................3214,
17547, 17548, 17549
445.7  (d) amended.................................................3214,
17547, 17548, 17549
446.7  (d) amended..................................................3214

[[Page 601]]

    (d) corrected...................................................6775
447.7  (d) amended....................................3214, 17547, 17548
448  Sales closing date extended....................................7818
448.7  (d) amended..................................................3214
    (d) corrected...................................................6775
448.8  Revised.....................................................24279
449.7  (d) amended.................................................3214,
17547, 17548, 17549
450.7  (d) amended..................................................3214
451.7  (d) amended...........................................3214, 41692
452  Added..........................................................9288
453  Added.........................................................25349
454  Added..........................................................4593

                                  1988

7 CFR
                                                                   53 FR
                                                                    Page
Chapter IV
400.27--400.36 (Subpart C)  Removed................................24015
400.141--400.157 (Subpart L)  Redesignated as 400.161--400.177 
        (Subpart L); interim...........................................3
    Redesignation as 400.161--400.177 (Subpart L) confirmed........10527
400.128  Added; interim................................................3
    Addition confirmed.............................................10527
400.129  Added; interim................................................3
    Addition confirmed.............................................10527
400.130  Added; interim................................................4
    Addition confirmed.............................................10527
400.131  Added; interim................................................4
    Addition confirmed.............................................10527
400.132--400.141  Added; interim.......................................5
    Addition confirmed.............................................10527
400.142  Added; interim................................................6
    Addition confirmed.............................................10527
400.169  Revised...................................................31826
400.161--400.177 (Subpart L)  Redesignated from 400.141--400.157 
        (Subpart L); interim...........................................3
    Redesignation from 400.141--400.157 (Subpart L) confirmed......10527
400.201--400.210 (Subpart M)  Added................................24015
401  Sales closing date extended............................15016, 38707
    Authority citation revised.....................................40718
401.8  (d) amendment confirmed......................................9099
    (d) amended; interim...........................................16540
401.101  Amended...................................................36781
401.111  Corrected............................................4006, 4589
401.115  Added......................................................6966
401.116  Added......................................................4379
401.117  Corrected..................................................1001
401.118  Added......................................................6560
    Corrected.................................................7878, 9100
401.122  Added......................................................6561
401.124  Amended...................................................40718
401.125  Added.....................................................15015
401.126  Added.....................................................19217
401.134  Added......................................................9101
401.135  Addition confirmed........................................15014
    Revised........................................................27664
    Amended........................................................34022
405  Earlier sales closing date....................................24249
    Authority citation revised.....................................46846
405.8  Heading and (c) revised.....................................46846
405.9  Added; interim...............................................1467
    Addition confirmed.............................................20279
    Revised........................................................46846
411  Earlier sales closing date....................................24249
413.7  (d) amendment confirmed......................................9103
418.7  (d) amendment confirmed.....................................36782
419.7  (d) amendment confirmed.....................................36782
420.1--420.8 (Subpart)  Heading revised.............................9104
421.1--421.8 (Subpart)  Heading revised.............................6564
422  Sales closing date extended....................................4380
422.7  (d) corrected................................................6115
424.1--424.8 (Subpart)  Heading revised.............................6565
426.1--426.7 (Subpart)  Heading revised............................12760
427.7  (d) amendment confirmed.....................................36782
428.1--428.7 (Subpart)  Heading revised.............................6565
429.7  (d) amendment confirmed.....................................36782
437  Sales closing date extended...................................15016
438.1--438.7 (Subpart)  Heading revised.............................6566
440.1--440.7 (Subpart)  Heading revised............................20280
440.7  (d) amended; interim.........................................9104
    (d) amendment confirmed........................................46847
441.7  (d) amended.................................................46848
448.1--448.8 (Subpart)  Heading revised.............................6567

[[Page 602]]

451.1--451.7 (Subpart)  Heading revised............................46849
452.1--452.7 (Subpart)  Heading revised.............................6568
451.7  (d) amendment at 52 FR 41692 confirmed......................46850
454.7  (d) amended.................................................46850
455  Added....................................................6116, 6569
456  Added.........................................................31827
Chapter V
510  Revised.......................................................17685
Chapter VI
614  Authority citation revised.....................................1605
614.2  Amended......................................................1605
614.5  (e) revised..................................................1605
656  Authority citation revised.....................................4007
656.4--656.9  Removed...............................................4007

                                  1989

7 CFR
                                                                   54 FR
                                                                    Page
Chapter IV
400.172  (b) amended...............................................28411
400.250--400.252 (Subpart N)  Added................................24318
401  Sales closing date extended.............................7391, 38961
    Sales period clarification.....................................10621
    Sales period clarification corrected...........................11935
401.8  Regulation at 53 FR 16539 confirmed..........................9766
    (d) amended....................................................20370
401.101  Amended...................................................20504
401.103  Amended...................................................20504
401.105  Amended...................................................20504
401.106  Amended...................................................20504
401.107  (e) revised...............................................21196
401.110  Amended...................................................20504
401.111  Amended...................................................20504
401.113  Amended...................................................20504
401.114  Amended...................................................20504
401.116  Amended...................................................20504
401.117  Amended............................................20504, 48072
401.118  Amended...................................................20503
401.119  Revised...................................................48074
401.120  Amended...................................................48076
401.121  Revised...................................................48068
401.123  Amended...................................................28795
401.124  Amended; interim..........................................20369
    Amended........................................................20504
    Regulation at 54 FR 20369 confirmed............................33493
401.127  Added.....................................................20501
401.129  Added.....................................................48070
401.130  Added.....................................................43270
401.131  Added.....................................................43273
401.137  Added.....................................................48073
401.140  Added......................................................7527
401.142  Added.....................................................43275
401.143  Added.....................................................14203
402  Authority citation revised....................................20505
402.7  (d) amended.................................................20505
403  Authority citation revised....................................24320
403.7  (d) amended.................................................24320
405.8  Technical correction.........................................6381
405.9  Corrected...................................................11935
406  Added..........................................................3412
    Authority citation revised.....................................33494
406.5  Amended.....................................................33494
406.7  (d) corrected...............................................14206
409  Authority citation revised....................................38962
409.7  (d) amended; interim........................................38962
411  Sales closing date extended....................................2991
    Authority citation revised.....................................20506
411.7  (d) amended.................................................20506
416  Authority citation revised....................................20507
416.7  (d) amended.................................................20507
422  Authority citation revised.............................20508, 43277
    Technical correction...........................................50607
422.7  (d) amended.................................................20508
    (d) amended; interim...........................................43277
422.9  Revised......................................................3417
422.10  Added.......................................................3418
422.11  Added.......................................................3419
425.7  (d) amended.................................................20371
426  Removed.......................................................20508
430  Authority citation revised....................................20509
430.7  (d) amended.................................................20509
433  Authority citation revised....................................20510
433.7  (d) amended.................................................20510
435.7  (d) amended.................................................20372
436  Authority citation revised....................................20511
436.7  (d) amended.................................................20511
437  Authority citation revised....................................20512
437.7  (d) amended.................................................20512

[[Page 603]]

443.7  (d) amended.................................................20373
454  Authority citation revised....................................48077
454.7  (d) amended.................................................48077
455  Authority citation revised....................................30007
455.5  Amended.....................................................30007

                                  1990

7 CFR
                                                                   55 FR
                                                                    Page
Chapter IV
400.41  Revised....................................................18097
    Correctly revised..............................................27182
400.301--400.309 (Subpart O)  Added................................32595
400.351--400.352 (Subpart P)  Added................................23069
401  Sales closing date extended....................................5436
401.8  (e) added; interim...........................................6972
    Regulation at 55 FR 6972 confirmed.............................40787
    (b) revised; (d) amended; eff. 1-10-91.........................50812
401.117  Amended; interim..........................................42552
    Amended; interim...............................................50813
401.118  Amended....................................................1785
401.123  Amended...................................................40788
401.133  Added.....................................................25955
401.138  Added.....................................................21739
401.139  Added......................................................1783
401.146  Added......................................................4395
403.7  (d) amended; interim........................................35888
405.7  (d) amended.................................................35555
    (d) amended; interim...........................................35888
406.7  (d) amended; interim........................................35888
409.7  (d) amended; interim........................................35888
    Regulation at 54 FR 38962 confirmed............................35888
414  Authority citation revised....................................50814
    Effective date corrected to 1-10-91............................53100
414.7  (d) amended.................................................50814
    Effective date corrected to 1-10-91............................53100
415  Authority citation revised....................................40789
415.7  (d) amended.................................................40789
416.7  (d) amended; interim........................................35888
422.7  (d) amended; interim........................................35888
    Regulation at 54 FR 43277 confirmed............................35889
425  Authority citation revised....................................49871
425.7  (d) amended; interim........................................35888
    (d) amended; interim...........................................49872
430.7  (d) amended; interim........................................35888
    (d) amended....................................................50815
    Effective date corrected to 1-10-91............................53235
433  Authority citation revised....................................50816
433.7  (d) amended.................................................50816
    Effective date corrected.......................................52130
435.7  (d) amended; interim........................................35888
437.7  (d) amended; interim........................................35888
441.7  (d) amended; interim........................................35888
443.7  (d) amended; interim........................................35888
445.7  (d) amended; interim........................................35888
446.7  (d) amended; interim........................................35888
447.7  (d) amended; interim........................................35888
450.7  (d) amended; interim........................................35888
451.7  (d) amended; interim........................................35888
454.7  (d) amended; interim........................................35888
455.7  (d) amended; interim........................................35887
456.7  Amended......................................................1786
    (d) amended; interim...........................................35887

                                  1991

7 CFR
                                                                   56 FR
                                                                    Page
Chapter IV
400.65--400.66 (Subpart H)  Revised................................49390
401.8  (d) amended; interim........................................13577
401.111  Amended; interim..........................................58302
401.113  Amended; interim..........................................58302
401.117  Regulation at 55 FR 42552 confirmed........................3005
    Regulation at 55 FR 50813 confirmed............................36725
    Amended; interim...............................................58302
402  Removed.......................................................64940
404  Removed.......................................................64940
408  Removed.......................................................64940
410  Removed.......................................................64940
411  Removed.......................................................64940
413  Removed.......................................................64940
417  Removed.......................................................64940
418  Removed.......................................................64940
419  Removed.......................................................64940
420  Removed.......................................................64940
421  Removed.......................................................64940
423  Removed.......................................................64940
424  Removed.......................................................64940
427  Removed.......................................................64940
428  Removed.......................................................64940

[[Page 604]]

429  Removed.......................................................64940
431  Removed.......................................................64940
432  Removed.......................................................64940
434  Removed.......................................................64940
436  Removed.......................................................64940
438  Removed.......................................................64940
439  Removed.......................................................64940
440  Removed.......................................................64940
442  Removed.......................................................64940
444  Removed.......................................................64940
448  Removed.......................................................64940
449  Removed.......................................................64940
452  Removed.......................................................64940
453  Removed.......................................................64940
434  Sunset review date extended...................................56569
435  Sunset review date extended...................................56569
441  Sunset review date extended...................................57231
445  Sunset review date extended...................................57971
446  Sunset review date extended...................................57971
447  Sunset review date extended...................................56569
451  Sunset review date extended...................................56569
457  Added..........................................................1351
458  Added; interim................................................30490

                                  1992

7 CFR
                                                                   57 FR
                                                                    Page
Chapter IV
400.27--400.29 (Subpart C)  Added; interim.........................56438
400.161  (i) revised...............................................34666
400.170  (c) revised...............................................34666
400.401--400.412 (Subpart Q)  Added................................46297
401  Sunset review date extended....................................2007
    Extension of sales closing date.........................44967, 44968
401.111  Amended; interim...........................................2008
401.113  Amended; interim...........................................2008
401.117  Amended; interim...........................................2008
401.120  Amended...................................................54682
406  Extension of sales closing date........................44968, 53211
406.7  Amended; interim............................................54683
422  Extension of sales closing date...............................44969
425  Revised.......................................................52585
425.7  Corrected...................................................56963
458  Regulation at 56 FR 30490 confirmed.............................173

                                  1993

7 CFR
                                                                   58 FR
                                                                    Page
Chapter IV
400.4  Revised.....................................................64873
400.27--400.29 (Subpart C)  Authority citation added...............67303
400.27  Revised....................................................67304
400.28  (a) introductory text and (c) revised......................67304
400.37--400.38 (Subpart D)  Heading revised........................17943
400.38  Amended....................................................17943
400.40--400.42 (Subpart E)  Removed................................53110
400.47  (a) revised; (d) and (e) removed; (f) through (i) 
        redesignated as (d) through (g)............................17945
400.49  Revised....................................................17945
400.50  Added......................................................17945
400.66  (b) table revised..........................................13531
400.250  Revised; interim..........................................36593
400.251  (a) and (b) amended; interim..............................36593
400.252  Nomenclature change; (a) and (b) amended; interim.........36593
400.402  (e) and (k) revised; interim..............................47204
400.406  Revised; interim..........................................47204
400.451--400.500 (Subpart R)  Added................................53110
401  Extensions of sales closing date.......................21241, 53393
401.101  Amended; interim...................................33508, 67631
401.103  Amended; interim...................................33508, 67633
401.105  Amended; interim...................................33508, 67634
401.106  Amended; interim..........................................33508
401.107  (e) revised...............................................64874
401.108  (b) amended...............................................64874
401.109  Amended; interim..........................................67635
401.111  Amended;...................................................3205
    Amended; interim...............................................67637
401.113  Amended;...................................................3207
    Amended; interim...............................................67638
401.117  Amended;...................................................3209
    Amended; interim...............................................67639
401.119  Amended; interim..........................................67641
401.120  Amended; interim..........................................33507
    Amended; interim...............................................67642
401.121  Amended; interim..........................................67643
401.133  Amended; interim..........................................33509

[[Page 605]]

406.7  Amended; interim.....................................33508, 46074
415.7  Amended; interim............................................33509
422  Exclusion of certified seed potato option.........................1
422.7  Amended; interim............................................33508
430.7  Amended;....................................................66250
443.7  Amended; interim............................................67645
457.2  (g) corrected...............................................58262
457.6  (a) corrected...............................................58262
457.8  Corrected............................................58262, 58263
Chapter VI
623  Added; interim................................................62497

                                  1994

7 CFR
                                                                   59 FR
                                                                    Page
Chapter IV
Chapter  IV Policy statement.......................................42487
400.51--400.57 (Subpart  G) Added..................................47787
400.402  (v) revised...............................................52408
400.411  Revised...................................................52408
406.7  Amended..............................................35614, 39414
457  Heading revised.........................................9391, 49154
    Authority  citation revised....................................67136
457.8  Amended.....................................................42751
457.9  Added; interim..............................................45972
457.101  Added......................................................9391
457.102  Added......................................................9397
457.103  Added......................................................9397
457.104  Added.....................................................49154
457.105  Added.....................................................49169
457.108  Added.....................................................67136
457.110  Added; interim.............................................9615
457.113  Added.....................................................49161
    Corrected......................................................60063
Chapter  VI
658  Authority citation revised....................................31117
658.2  (a) and (c) revised.........................................31117
658.3  (c) and (d) revised.........................................31117
658.4  (a) and (c)(2) revised; (g) and (h) added...................31118
658.7  (b) redesignated as (c); new (b) and (d) added..............31118

                                  1995

7 CFR
                                                                   60 FR
                                                                    Page
Chapter IV
400  Comment period reopening and extension........................40055
400.1--400.5 (Subpart A)  Authority citation revised...............40055
400.4  Amended.....................................................40055
400.90 (Subpart J)  Revised; interim; eff. 1-16-96.................67313
400.161--400.177 (Subpart L)  Authority citation revised....21036, 57903
    Heading revised................................................57903
400.161  (c), (d) and (j) removed; (a), (b), (e) through (i), (k), 
        (l) and (m) through (o) redesignated as (b), (c), (d) 
        through (h), (i), (j) and (l) through (n); new (a) and new 
        (k) added; new (e) revised.................................57903
400.162  Revised...................................................57903
400.163  Revised...................................................57903
400.169  Revised; interim..........................................21036
400.170  Revised...................................................57903
400.171  Revised...................................................57904
400.172  Revised...................................................57904
400.173  Removed...................................................57904
400.174  Amended...................................................57904
400.175  (a) amended...............................................57904
400.177  Removed...................................................57904
400.451--400.500 (Subpart R)  Authority citation revised...........37323
400.454  (a) revised...............................................37323
400.458  Added.....................................................37324
400.459  Added.....................................................37324
    Correctly revised..............................................51321
400.650--400.658 (Subpart T)  Added; interim........................1997
401  Authority citation revised...............29749, 29960, 56934, 62720
401.101  Regulation at 58 FR 67631 confirmed.......................37934
    Introductory text revised......................................56934
401.102  Amended; introductory text revised........................56934
401.103  Regulation at 58 FR 67633 confirmed.......................37934
    Introductory text revised......................................56934
401.104  Amended...................................................56934
401.105  Regulation at 58 FR 67634 confirmed.......................37934
    Introductory text revised......................................56934
401.106  Introductory text revised.................................56934
401.107  (e) revised...............................................40056
401.109  Amended.....................................29960, 62720, 62721
    Regulation at 58 FR 67635 confirmed............................37934
401.111  Regulation at 58 FR 67637 confirmed.......................37934

[[Page 606]]

    Introductory text revised......................................56934
401.112  Amended; introductory text revised........................56934
401.113  Regulation at 58 FR 67638 confirmed.......................37934
    Introductory text revised......................................56934
401.116  Introductory text revised.................................56934
401.117  Regulation at 58 FR 67639 confirmed.......................37934
    Introductory text revised......................................56934
401.119  Regulation at 58 FR 67641 confirmed.......................37934
    Introductory text revised......................................56934
401.120  Amended.....................................29960, 62721, 62722
    Regulation at 58 FR 67642 confirmed............................37934
    Corrected; CFR correction......................................62321
401.121  Regulation at 58 FR 67643 confirmed.......................37934
    Introductory text revised......................................56934
401.124  Introductory text revised.................................56934
401.125  Introductory text revised.................................56934
401.133  Introductory text revised.................................56934
401.135  Introductory text revised.................................56935
401.143  Amended; interim..........................................29750
    Regulation at 60 FR 29750 confirmed............................62190
402  Added; interim.................................................2002
    Comment period reopening and extension.........................40055
404  Added; interim................................................26671
    Comment period reopening and extension.........................40055
406  Authority citation revised....................................56935
406.7  (d) introductory text revised...............................56935
443  Authority citation revised.............................29960, 62722
443.7  (d) amended...................................29960, 62722, 62723
    Regulation at 58 FR 67645 confirmed............................55781
457  Authority citation revised....................................62723
457.9  Regulation at 59 FR 45972 confirmed.........................16765
457.101  Amended............................................35834, 62723
457.104  Amended............................................35834, 62725
457.105  Amended............................................35834, 62726
457.108  Amended............................................29960, 62727
457.110  Regulation at 59 FR 9615 confirmed........................37934
457.113  Amended.....................................35834, 62728, 62729
457.114  Added.....................................................31378
457.115  Added.....................................................31380
457.116  Added.....................................................25602
Chapter V
510  Revised.......................................................66062
Chapter VI
Chapter  VI Heading revised; nomenclature change; interim..........28514
614  Revised; interim; eff. 1-16-96................................67313
620  Added; interim................................................28514
620.2  (1) corrected...............................................33034
620.4  (d)(3), (3)(iv) and (f) corrected...........................33034
620.12  (a)(1) corrected...........................................33034
620.14  (d) corrected..............................................33034
620.17  (a) revised; interim; eff. 1-16-96.........................67316
623.20  Revised; interim; eff. 1-16-96.............................67316
631.13  Revised; interim; eff. 1-16-96.............................67316
632.40  Revised; interim; eff. 1-16-96.............................67316
634.30  Revised; interim; eff. 1-16-96.............................67316
663.17  Revised; interim; eff. 1-16-96.............................67316

                                  1996

7 CFR
                                                                   61 FR
                                                                    Page
Chapter IV
400.47  (b), (c) and (e) removed; (d), (f) and (g) redesignated as 
        (b), (c) and (d); interim..................................38058
400.48  (b) removed; (c) redesignated as (b); interim..............38058
400.49  Removed; interim...........................................38058
400.50  Removed; interim...........................................38058
400.161--400.177 (Subpart L)  Authority citation revised...........34368
400.168  (b) and (c) revised.......................................34368
    (c) corrected..................................................65153
400.169  Regulation at 60 FR 21036 confirmed.......................39269
    Regulation at 60 FR 21035 confirmed............................40954

[[Page 607]]

400.650--400.659 (Subpart T)  Regulation at 60 FR 1997 confirmed; 
        revised....................................................42975
401.8  Amended; interim............................................39050
401.143  Introductory text revised; eff. 1-30-97...................69001
402  Revised.......................................................42985
404  Revised........................................................7200
    Removed........................................................69011
433  Authority citation revised....................................68543
433.7  Amended; interim............................................68543
457.107  Added; eff. 1-30-97.......................................69002
457.109  Added.....................................................58775
457.111  Added.....................................................57580
457.118  Added......................................................8855
    Corrected......................................................27245
457.119  Added.....................................................41300
    Corrected......................................................57583
457.121  Added.....................................................44147
Chapter V
500  Heading revised...............................................65302
    Authority citation revised.....................................65302
500.1  Revised.....................................................65302
500.2  Revised.....................................................65302
500.4  Revised.....................................................65302
500.6  Revised.....................................................65302
500.7  Revised.....................................................65302
500.8  Revised.....................................................65302
500.9  Revised.....................................................65302
500.10  Revised....................................................65302
500.11  Revised....................................................65302
500.12  Revised....................................................65303
500.13  Revised....................................................65303
502  Heading revised...............................................51211
    Authority citation revised.....................................51211
502.1  Revised.....................................................51211
502.2  Revised.....................................................51211
502.4  Revised.....................................................51211
502.5  Revised.....................................................51211
502.6  Revised.....................................................51211
502.7  Revised.....................................................51211
502.8  Revised.....................................................51211
502.9  Revised.....................................................51211
502.10  Revised....................................................51212
502.11  Revised....................................................51212
502.12  (a), (b) and (c) revised...................................51212
502.13  Removed; new 502.13 redesignated from 502.14 and revised 
                                                                   51212
502.14  Redesignated as 502.13; new 502.14 redesignated from 
        502.15 and revised.........................................51212
502.15  Redesignated as 502.14; new 502.15 redesignated from 
        502.16 and revised.........................................51212
502.16  Redesignated as 502.15; new 502.16 redesignated from 
        502.17.....................................................51212
502.17  Redesignated as 502.16.....................................51212
Chapter VI
Chapter  VI Regulation at 60 FR 28514 confirmed....................42141
    Forums.........................................................52671
610  Authority citation revised....................................27999
610.1--610.5 (Subpart A)  Subpart designation added................27999
610.1  Revised.....................................................27999
610.11--610.14 (Subpart B)  Added..................................27999
620  Regulation at 60 FR 28514 confirmed; redesignated as Part 
        1467.......................................................42141
651  Removed.......................................................66867
663  Removed.......................................................41949